Private sector and human-resource development in Georgia (стр. 23 из 26)

- ensure sustainability of stabilization;

- increase tax revenue to 6.7 percent of GDP in 1996;

- reach a revenue to expenditure ration of 70 percent in 1996 and maintain budget deficit at 3-4 percent of GDP in 1996.

3. Streamlining of the Government Sector and Improving the Efficiency of Public Spending:

- to maintain critical public function within the framework of a tight expenditure program (expenditure maintained at about 13 percent of GDP in 1996);

- reforming government pay and employment;

- reforming the provision and financing of social services reforming social insurance and social protection;

- eliminating energy subsidies;

4. Fostering Adjustment of the Productive Sector:

- accelerating privatization;

- restructuring the financial sector;

- fostering export growth.

Disbursement: US$ 29.88 million

The disbursement of the loan is linked to agreed targets specified for each tranche release – to be met by the Georgian Government in implementing its structural reform program.

SECOND STRUCRUTAL ADJUSTMENT TECHNICAL ASSISTANCE CREDIT (SATAC II)

Project Description: The Government’s structural reform program outline in the Letter of development Policy was presented with the Second Adjustment Credit (SACII), $60 million (which closed in December 1998). To facilitate the timely implementation of structural reforms, the Government requested a program of technical assistance to support the design and implementation of reform measures in the key areas. The institutional capacity of the Government to implement structural reform measures has been successfully strengthened under the Institutional Building Credit (IBC) and the Structural Adjustment Technical Assistance Credit (SATAC). Lessons learned from these two technical assistance projects were incorporated in the design of SATAC II.

The Core objective of SATAC II is to enhance the capacity of the Georgian Government to implement the structural reform program supported by SAC II.

The technical assistance is divided into seven broad categories:

· judicial reform and anti-corruption initiative;

· financial sector;

· energy sector reforms;

· social protection

· health

· resource mobilization

· public information

5.1.4 The World Bank and IMF Cooperation in Georgia

The World Bank and IMF Partnership in Georgia’s Development Strategy

1. The IMF has taken the lead in assisting Georgia in enhancing macroeconomic stability. In this regard, the Fund has encouraged the authorities to pursue a prudent fiscal policy, including by increasing tax revenues and reducing domestic expenditure arrears. The IMF Board approved a new three-year program under the Fund’s Poverty Reduction and Growth Facility (PRGF) in January 2001. The first and the second reviews under the PRGF were completed in October 2001 and July 2002, respectively. Implementation of the 2002 macroeconomic program was broadly on track. Quantitative criteria and indicative targets were met, except for those on domestic arrears, fuel and excise tax collection and reserve money. At 2 percent of GDP, the fiscal deficit was slightly higher than programmed because of shortfalls in external financing, and revenue collection improved only slightly from 14.3 percent of GDP to 14.4 percent over the period. An IMF mission which visited Georgia in July 2003 to discuss completion of the postponed third review found that the fiscal pressures that emerged in early 2003 had continued, with tax revenue falling short of budget targets, and an accumulation of substantial new budget arrears. The IMF thus saw the need inter alia to introduce some tax reform measures, adjust electricity tariffs and revise the 2003 budget to close the fiscal gap. The authorities achieved the first two but were unable to secure parliamentary approval of a revised budget. The current PRGF will expire in the next several months and the IMF will soon be initiating discussions to assess prospects for a possible new three-year program to support Georgia’s EDPRP.

2. The World Bank has taken the lead in the policy dialogue on structural issues, focusing on: (i) strengthening public expenditure management; (ii) deepening and diversifying sources of growth, (iii) protecting the environment; and (iv) reducing poverty. The table on page 53 summarizes the division of responsibility between the two institutions. In a number of areas – for example the social sectors, rural development, environment, and infrastructure – the Bank takes the lead in the dialogue and there is no cross conditionality with the IMF-supported program. The Bank is also leading the dialogue on private sector reform, and Bank analysis serves as inputs into the Fund program. In other areas – energy, the financial sector, public expenditure management, and revenue and customs – both institutions work together. Finally, in areas like monetary policy the IMF takes the lead with little Bank involvement.

Areas in which the World Bank leads and there is no direct IMF involvement

3. Areas in which the Bank leads and there is no direct IMF involvement include the social sectors, infrastructure and environment.

· In the social sectors the Bank conducts annual updates of Georgia’s Poverty Assessment based on household data collected on a quarterly basis. The Bank’s focus has been to improve the budget execution of expenditures for health, education and poverty benefits and to raise the efficiency in the use of scarce public resources. Through the Social Investment Fund Credits IDA is focusing in particular on areas with high poverty levels to provide basic infrastructure to the poorest communities. A recently approved Self-reliance Fund Grant will help authorities address the complex issues related to internally displaced people. IDA is also supporting a dialogue with the Government on social protection reform that may lead to an IDA-supported project.

· In education the Education Adaptable Program Credit aims at improving the learning outcomes of primary and secondary students, through curriculum reform, development of an examination system, training of teachers, provision of learning materials, and development of capacity to make better use of Georgia’s physical, financial and human resources. While the investment needs of school buildings are substantially higher than is currently affordable for Georgia, the Social Investment Fund projects continue to assist in financing urgent repairs to school facilities in many communities.

· In health IDA Credits to support the Government in improving the health care financing system, exploring risk-pooling options, introducing a new system of primary health care and improving the focus of services funded through public funds on the poor and on priority public health interventions. In addition hospital restructuring has been supported by SAC 3 and the Structural Reform Support Credit.

· In infrastructure support is being provided through the Municipal Development and Decentralization Credit and the Social Investment Fund Credit. These projects are providing financing at the community level for critical infrastructure needs, primarily for school and health facilities heating and repair, small hydropower schemes to provide electricity, drinking water and sanitation rehabilitation, as well as transportation infrastructure rehabilitation.

· In rural development IDA credits have supported the development of private sector farming and agro-processing improvements, agricultural credit, irrigation and drainage, and agriculture research and extension. IDA has also been supporting the creation of local institutions such as rural credit unions and water users associations through its Credits.

Areas in which the World Bank leads and its analysis serves as input into the IMF program

4. The Bank has been leading the dialogue on structural reforms through SAC 3, approved by the Bank’s Board of Executive Directors in June, 1999, and closed in October, 2002. Despite considerable delays, the core conditions of SAC 3 were met, but their impact was reduced by poor governance. Institution building and technical assistance has been supported through the Structural Reform Support Credit, also approved by the Bank’s Board of Executive Directors on June 29, 1999. The Bank also leads in the areas of:

· Private sector development. SAC 3 supported improvements in the environment for private sector development, focusing on: (i) simpler licensing regulations; (ii) more transparent government procurement; (iii) reduced cost of entry for businesses; and (iv) privatization of state-owned commercial assets. IDA has also been supporting private sector participation in other areas such as energy, telecommunications, urban services and agriculture. The IMF has worked with the authorities to initiate audits of the 2002 accounts of three major state owned enterprises.

· Energy. The energy system is in poor condition, with unreliable supply, massive non-payment and mounting debts. IDA has been working with other donors, including the IMF, to encourage more private management and ownership, and to implement a series of short-term action plans to improve the overall functioning of the sector. The IMF has also been focusing on improved payments for electricity.

· Public Sector Management. The Bank is supporting the development of a civil service reform program, while the Fund is providing technical assistance in support of tax and customs administration reform.

Areas of shared responsibility of the World Bank and IMF

5. The Bank and the Fund have been working jointly in the following main areas (supported by the Bank’s SAC 3 and Structural Reform Support Credit, several investment operations and the Fund’s PRGF):

· Poverty Reduction Strategy. Both institutions have been working closely with the Government to provide support to the development of the PRSP, through seminars and workshops, direct staff input, and a multi-donor Trust Fund to support the work of the PRSP secretariat..

· Budget Planning and Execution. The annual process-based Public Expenditure Reviews will provide the underpinnings for systemic changes in expenditure management, with the immediate aim being improved budget formulation in 2004. The IMF is focusing on Treasury reform within the Ministry of Finance.

· Financial Sector Reforms. The joint Financial Sector Assessment Program has supported: (i) strengthened banking and non-banking supervision; (ii) introduction of international accounting standards; (iii) and consolidation of banks through higher capital requirement ratios; and (iv) anti money-laundering legislation. The IMF has focused in particular on banking supervision.

· Debt Sustainability Analysis (DSA). Given Georgia’s heavy external debt burden, the Bank and the Fund conduct joint Debt Sustainability Analysis on a regular basis.

Areas in which the IMF leads and its analysis serves as input into the World Bank program

· Fiscal Framework. The IMF’s focus on prudent fiscal policy has served as an important framework for IDA’s work on public expenditure management.

Areas in which the IMF leads and there is no direct World Bank involvement

· Monetary Framework. The IMF closely collaborates with the NBG in the design and implementation of a monetary program that aims at remonetization of the economy, while keeping inflation low and the exchange rate of the Lari stable

· Economic Statistics. IMF technical assistance has been conducive to improvements in national accounts, price, monetary and government financial statistics.

5.1.5 The World Bank Country Assistance Strategy for Georgia

Activities (as identified in the EDPRP)	Responsible Agencies	Focus of Bank Actions	Expected Results FY04-06	Bank Group Program	Part-ners	WB Performance Indicators for End FY06
Improvement of Governance
· Development of a comprehensive, long-term concept and action plan of executive government reforms, and of a program to improve structure and number of employees in organizations under budgetary financing	State Chancellery, Ministry of Justice, Ministry of Finance relevant executive government bodies	Assistance to the State Chancellery in carrying out a functional analysis of the central government agencies and assessment of budgetary employment, remuneration, and training policy; on the basis of the above studies, develop recommendations	Widely owned program to improve functioning of government administration and agencies; remuneration and retrenchment policy for core civil service introduced, and plans for civil service training developed	Public Sector Management Project	DFID, USAID, UNDP	Initiation of reform and restructuring of civil service
· Inventory of normative acts defining the competence of government agencies to avoid duplication of local government functions	State Chancellery of Georgia, Ministry of Justice	Review of the existing legal framework	Initiation of legislative change and amendments	Public Sector Management Project; Public Expenditure Reviews	DFID EU USAID UNDP	Duplications and overlap among the central state agencies reduced, mandates more clearly defined
· Distinction of municipal property from central government and private property	State Chancellery, Ministry of Economy, Industry and Trade, Agency of State Property Management, Ministry of Justice, Ministry of Finance	Advice on financing mechanism for transfer of road and transport properties and legal mechanisms for owning and managing very low volume farm access roads	Revised functional/administration classification of roads; sound allocation formula for dividing Road Fund revenues between road owners	Secondary Roads Project; Trade and Transport Facilitation Project; Rural Infrastructure Study	Kuwait Fund for Economic Development	New road classification; new procedures for managing the road fund, including allocation of funds between road owners
Macroeconomic Stability
· Preparation of indicative plans of development for the economy for 2004 and 2005	Ministry of Economy, Industry and Trade	Improvement of linkage between policy, resource constraints and budgets	Develop a more realistic medium-term budget framework	Public Expenditure Reviews, PRSC in High Case	IMF DFID	Budget execution closer to planned
· Initiate the process to convert a portion of government debt liabilities into long-term debt instruments	National Bank	Assistance to the MoF develop long-term debt instruments, e.g. government bond market	MoF starts to use medium to long-term government bonds to replace the rolling of short-term debt instruments	Financial Sector Advisory Program	IMF	1-10 year government bond market in place
· Improvement of the management of international reserves of the NBG	National Bank	Advise to National Bank on management of reserves	Increased import coverage	Financial Sector Advisory Program	IMF	Gross foreign reserves to reach over 2 months of imports
· Completion of tax and customs administration reform	Ministry of Finance, State Tax and Customs Departments	Development of a business-friendly tax environment	Increased collection of excise taxes and improved VAT administration	Public Expenditure Reviews, Business Environment Study, PRSC in High Case	IMF USAID EU	Collection of excise taxes to reach over 2 percent of GDP
· Implementation of treasury reform, centralization of treasury service; development and introduction of commitment accounting and control system; development and introduction of expenditure control system	Ministry of Finance	Assistance to the MOF to improve its cash and debt management capacity and skills	Consolidation of effective control system, and adoption of a single treasury account	CPAR Updates, Public Expenditure Reviews, PRSC in High Case	IMF	Improved cash management and debt management capacity
· Improve government procurement system and expand scope of its coverage	State Procurement Department, Ministry of Economy, Industry and Trade	Establishment of a transparent state procurement system; decentralization of State procurement functions to line agencies	Greater efficiency and competition within the system; reduced delays and corruption in procurement process	CPAR, Public Expenditure Reviews, PRSC, project lending (e.g. Secondary Roads and Trade and Transport Facilitation)	Recommendations of Country Portfolio Assessment Report implemented
· Gradual increase of the share of targeted programs in the state budget	Ministry of Finance, Ministry of Economy, Industry and Trade	Develop program-based budgeting	Improve consistency between medium-term indicative plan and the budget	Public Expenditure Reviews, Public Sector Management Credit, PRSC in High Case	DFID	Public Expenditure Reviews assessment of better targeting of programs in the budget
· Inventory of budgetary arrears	Ministry of Finance	Establish accurate estimates of past government liabilities	Better information on, and reduction in, arrears	CFAA Updates, Public Expenditure Reviews	IMF	Reduced arrears
· Increase the number of participants in treasury bill market and improve bidding mechanisms to increase maturity and reduce the discount rate through market	Ministry of Finance, National Bank, National Commission of Securities	More competitive and efficient T-bill market	Short term: more participants for competitive bidding, and for non-competitive quota; medium term: cash management, coordination between MOF & NBG on T-bills/open market operations; long term: independent debt management office	Financial Sector Advisory Program, PRSC in High Case	USAID FIRST	Lower T-bill yield
· Develop legislation promoting the activities of investment funds in order to introduce best corporate management practice in enterprises and develop stock market	Ministry of Finance, National Commission of Securities	Help build legal environment for investment funds; provide information/advice	Establishment of legal environment for investment funds	Financial Sector Advisory Program	Regulation of investment funds in place; NCS has capacity to supervise those funds
· Prepare and adopt bill “on Personification and Registration of Insurance Contributions to Social Insurance System” required for regularizing first (distributive) pillar of pension system and development of pensioners’ personified registration system	Ministry of Labor, Health and Social Protection	Support to Ministry of Labor, Health and Social Protection on legal reforms and their implementation	Law adopted successfully	Social Protection Reform Project	Regularization of 1st pillar of pension system; better links between pensions and contributions
· For private pension funds, adopt statutory normative acts in accordance with the laws “on Non-Government Pension Funds” and “on Securities Market”	National Securities Commission, Ministry of Labor, Health and Social Protection	Support to National Securities Commission and Ministry of Labor, Health and Social Protection on legal reforms and their implementation	Normative acts developed and adopted	Social Protection Reform Project	Improved regulatory environment in the area of private pensions
· Prepare amendments to the Tax Code and investment rules of pension assets to promote the development of non-banking financial sector, including nongovernmental voluntary insurance system	Ministry of Finance, State Service of Insurance Supervision, National Commission of Securities	Support to relevant agencies on amendments to tax code and investment rules	Improved functioning of non-banking financial sector, including insurance companies/private pension funds	Social Protection Reform Project	Greater and more effective role for non-banking financial sector, including insurance companies and private pension funds

Structural Reforms
· Assess magnitude and share smuggled goods and those manufactured in informal sector of the economy by various commodity groups	Ministry of Economy, Industry and Trade; State Department of Statistics	Support for initiatives to reduce smuggling and the shadow economy	Reduction in smuggling and in the shadow economy	Trade Facilitation Project; Private Sector Development Project; Public Sector Reform Project; PRSC in High Case	USAID	Increase in tax revenues, including increase in revenues from petroleum products and cigarettes to over 2.5% of GDP
· Develop proposals to encourage investment	Ministry of Economy, Industry and Trade; Ministry of Finance; Ministry of Justice	Intensified dialogue with Government on reform of the banking system as a means of improving the investment climate	Increase in banks’ capitalization; better corporate governance principles and internal control systems; expansion of banking networks; real time banking settlement; anti-money-laundering legislation; deposit insurance introduced	Private Sector Development Project; Financial Sector Advisory Program; Business Environment Study	USAID IMF FIRST	Minimum capital raised to €3.5m; improved confidence in banking system; better access to finance; anti money laundering regulations in compliance with FATF requirements
· Implement export promotion measures	Ministry of Economy, Industry and Trade; Ministry of Finance	Support for removal of institutional (governance) obstacles to fulfilling Georgia’s Export Potential	Progress in implementing recommendations of Trade Study/Workshop	Trade and Transport Facilitation Project; Private Sector Development Project; Business Environment Study; Rural Development Project	USAID	Improved perception of environment for exporters in business surveys
Human Capital Development
Improvement of Health
· Revise government commitments in healthcare sector to ensure full financing	Ministry of Labor, Healthcare and Social Protection; Ministry of finance	Assist government to define health financing strategy focusing on improvements in mobilization, allocation and management of public and private resources, help build government capacity in evidence based policy-making, planning, monitoring and evaluation, as well as regulation	Definition of basic benefit package, financing methodology and co-payments, as well as recurrent costs; improved resource mobilization and allocation, including introduction of incentive-compatible provider payment systems	Health Sector Note, JSDF Grant on community health insurance	JSDF SIDA DFID WHO	Definition of basic benefit package, financing methodology, co-payments, and recurrent costs; better resource mobilization and allocation, including introduction of incentive-compatible provider payment systems
Improvement of Education
· Develop programs for basic education	Ministry of Education, Ministry of Culture	Improving quality of education and access of the poor	Stakeholders actively engaged in improving education quality and outcomes	Education Project	SOROS	97 percent enrollment in basic education for the poorest quintile; 60% of consolidated education expenditures continue to be allocated to primary/secondary education
Improvement of Social Risks Management
· Definition of nature and periodicity of government commitments in the social sector to ensure full financing	Ministry of Labor, Healthcare and Social Protection; State Social Security Fund; Ministry of Finance	Timely execution of Government obligations in the social sectors; fiscal affordability and sustainability	No-arrears in social transfers, increased poverty alleviation impact	Public Expenditure Reviews, PRSC in High Case	No new arrears; poverty incidence decreased by 6 percentage points
· Enforce package of draft bills on compulsory social insurance	Ministry of Labor, Healthcare and Social Protection, State Social Security Fund	Support to implementation of social insurance system	Better performance of the pension system	Social Protection Reform Project	No pension arrears; financing of social insurance/assistance benefits separated
· Phased increase of pensions	Ministry of Labor, Healthcare and Social Protection, State Social Security Fund	Dialogue on pension policies	Increase in pensions	Public Expenditure Reviews; Social Protection Reform Project	Average real pension increased by 20%; extreme poverty among elderly reduced
· Fiscal sustainability of pension system based on compulsory social insurance	Ministry of Labor, Healthcare and Social Protection, State Social Security Fund	Dialogue on pension policies	Satisfactory performance of the pension system	Public Expenditure Reviews; Social Protection Reform Project	Improved fiscal sustainability of pension system
Development of Priority Branches of the Economy
Energy and Infrastructure
· Reorganize electricity wholesale market to resume the functions of financial and technical operator	Ministry of Fuel and Energy	Support for direct contracts between generators and large end consumers, subject to transparent terms and implementation	Direct contracts between generators and large end consumers	EMSP	EBRD KfW USAID	Electricity market successfully reorganized
· Amend tariff policy in line with model of wholesale market and consider liberalization of prices	Ministry of Fuel and Energy; Energy Regulatory Commission; Ministry of Economy	Tariff policy; adequate appropriations to energy in state budgets	Lower commercial losses; state budgets fully cover energy costs; higher collections by state energy companies in distribution, transmission; improved financial viability	EMSP	EBRD IMF KfW USAID	Cash payment collections at the wholesale electricity market above 65%; dissemination to public of detailed sector performance indicators
· Approve strategy to manage energy sector debts	Ministry of Fuel and Energy, Ministry of Finance	Establishment of a professional Debt Restructuring Agency for the power sector	Legacy debt no longer a threat to the financial viability of the power sector	EMSP	EBRD IMF KfW USAID	Debt Restructuring Agency led by international experts in full operation; legacy debt issue resolved
· Transfer energy sector companies, including National Distribution Company, under management contract in accordance with existing strategy	Ministry of Fuel and Energy	Georgian Unified Distribution Company (GUDC) under long-term management contract	GUDC under long-term management contract	EMSP	EBRD KfW USAID	GUDC under long-term management contract; other management contracts fully operational
· Improve transport regulatory administration	Ministry of Transport and Communication	MOTC restructuring	Improved functioning of restructured MOTC	Secondary Roads Project; Transport Facilitation Project	SDRG restructured and road financing arranged to provide stable source for road funding to maintain and improve roads
· Technical monitoring of emergency conditions, restore status of premises and constructions of strategic importance and special complexity of the energy, transportation, communication and construction infrastructure as well as those damaged from earthquakes	Ministry of Economy, Industry and Trade, Ministry of Fuel-Energy, Ministry of Transportation and Communication, State Department of Highways	Development of road data bank for SDRG to take prompt, cost-effective action in emergencies	The data bank is used to prioritize annual road program	Secondary Roads Project; Transport Facilitation Project	Road data bank in use and SDRG expanded to cover local rural roads
· Improve implementation of road construction plan, identify strategic projects and sources of financing	State Department of Highways	Road construction plan, equipping SDRG with tools to develop and manage the plan	5 year rolling plan a standard procedure in SDRG	Secondary Roads Project; Transport Facilitation Project	EU, Kuwait Development Fund	Performance indicators to be developed in Secondary Roads project
· Form information network covering the entire country	State Department of Information	Improving rural access to telecommunications services	Better and more affordable access by the rural population to telecommunications	Rural Telecommunications Project	Higher proportion of the rural population having affordable access to telecommunications
Tourism
· Prepare special program to attract additional funding from international donor organizations to develop tourism	State Department of Tourism and Resorts	Development of community-based tourism	Realistic development strategy for tourism -- especially community-based tourism -- that promotes broad-based local development, reduces administrative barriers to tourism, and supports preservation	Community-based tourism	Realistic development strategy for community-based tourism, including reduced administrative barriers and more focus on preservation
Agriculture and Food
· Establish water consumer associations in rural areas	Ministry of Agriculture, Melioration System Management Department	Support to establishing new, and strengthening existing, water users associations to manage irrigation facilities	More and better functioning water user associations	Irrigation and Drainage Rehabilitation Project	EU TACIS	Legal framework for WUAs established; number of water user associations registered increased
· Develop unified geographic computer system of land cadastre and registration	Ministry of Agriculture and Food, State Department of Land Management	Support to strengthening capacity of State Department of Land Management to carry out land registration based on cadastre survey	Increased capacity of State Department of Land Management	Agriculture Development Project	IFAD, USAID KfW	Eleven land registration centers established; satellite imagery used for titling in mountainous regions
· Establish private veterinary services	Ministry of Agriculture and Food, Veterinary Department	Dialogue with Government on Veterinary reforms	Law to establish private veterinarians passed	ARET	USAID	Government starts veterinary reform process
· Structural reorganization of plants protection services	Ministry of Agriculture and Food, Plant Protection Service	Discussion with MAF on reform of plant protection services	Follow-up to merging of three agencies into a single plant protection agency	ADP	USAID	Reduced illegal trade of agro-chemicals; relevant laws passed

5.1.6 The World Bank Partners in Georgia

SECTOR	LEAD NATIONAL AGENCY	PARTNERS
Agriculture	Ministry of Agriculture and Food	IFAD, FAO, DFID, UNDP, KFW
Culture	Ministry of Culture Fund for Cultural Heritage Protection	EU
Education	Ministry of Education	SOROS
Energy	Ministry of Fuel and Energy Georgian National Energy Regulatory Commission	USAID, KFW, EBRD
Financial Sector	Ministry of Finance and Tax Revenues National Bank of Georgia National Securities Commission Foreign Investment Advisory Council	IMF
Forestry	State Department of Forestry	FAO, WWF, CIDA
Governance	State Chancellery, Anti-corruption Policy Coordination Council	Netherlands, IMF, DFID, USAID, UNDP,
Health	Ministry of Labor, Health and Social Affairs	SIDA, DFID, WHO
Judicial	Ministry of Justice Supreme Court ALPE (Association of Legal Public Education)	EU, USAID, SOROS, ABA, DOJ
Municipal Development and Decentralization	Georgian Municipal Development Fund (MDF)
Poverty Reduction	Secretariat of Governmental Commission on PREGP (Poverty reduction and Economic Growth Program)	IMF, UNDP, DFID, USAID
Private Sector	Ministry of Economy, Industry and Trade	USAID, EBRD, BP
Protected Areas	State Department of Protected Territories, Preserves and Hunting Grounds	UNDP
Roads	Ministry of Transport, Telecommunications and Post State Department of Roads	Kuwait Fund for Economic Development
Social Infrastructure	Georgian Social Investment Fund (GSIF)	KFW
Transport and Communications	Ministry of Transport, Telecommunications and Post National Commission of Telecommunications and Transport

5.2 USAID

USAID assistance in the economic growth area focuses on strengthening agriculture sector, assisting the NBG to improve its supervision, inspection, and enforcement capacity, and furthering land market reform. The Georgian Enterprise Growth Initiative (GEGI) is a major new private sector development activity to be implemented in close coordination with the CAS programs. USAID has been actively involved in the energy and environmental sectors providing TA to regulatory bodies, supporting privatization of the energy sector and improvement of the international investment climate, assisting in elaboration of environmentally sound laws in the energy sector as well as policies in the sector oriented towards energy efficiency, conservation and water management. Through democracy and governance oriented projects USAID supports increased awareness of legal rights, judicial and BAR reform initiatives, strengthening local governments, building professionalism of independent mass media as well as capacity of civil society and NGOs. USAID initiatives in the social sectors include programs in the regions to support income generation and economic self-reliance activities among internally displaced persons, crisis assistance to the most vulnerable, health care partnership programs and reproductive health programs which promote improved maternal and perinatal services, safe motherhood, family planning, health information systems, and STI/HIV awareness and prevention.