Subject: Re: Conditions for EU macro-financial assistance
From: Lika Klimiashvili <[email-masked]>
To: Tamar Barkalaia <[email-masked]>
Date: Sun, 07 Jul 2019 07:06:02 +0000

ოკეი. რაისას ველაპარაკე წინა კვირასაც, შაკო როგორც აღმოჩნდა არაა საქართველოში და შეიძლება არც ეს კვირა იყოს, ამიტომ ლაშასაც გადავუგზავნე.

სამოქმედო გეგმაც ხო არ გავუშვათ სტრატეგიასთან ერთად? თუ არადა ამათ მივწეროთ რომ სტრატეგიის დამტკიცებას ველოდებით :)

ლიკა

Sent from my iPhone

On Jul 5, 2019, at 18:48, Tamar Barkalaia <[email-masked]> wrote:

ლიკა,

ამათთვის პასუხია მოსამზადებელი სტრატეგიაზე და სამოქმედო გეგმაზე.  ასევე რაისა და შაკოს დაუკავშირდი ორშაბათს, თავისი კომენტარების რომ გამოგვიგზავნონ.

From: [email-masked] [mailto:[email-masked]]

Sent: Friday, July 05, 2019 3:43 PM

To: [email-masked]

Cc: [email-masked]; [email-masked]; [email-masked]; [email-masked]; [email-masked]; [email-masked]; [email-masked]; [email-masked]; Ketevan Goginashvili; Tamar Barkalaia; [email-masked]

Subject: RE: Conditions for EU macro-financial assistance

Dear Tamar,

Thank you for this information.

We note your explanations about the
PPP Agency and would appreciate a similar update on the fiscal risk unit (e.g. in terms of staff).

Could you please send us the current draft (or, if already available, the adopted version) of the
strategic purchasing strategy in healthcare?

Regarding the labour market strategy, could you please confirm
whether, since our review mission in mid-May, the social partners have been consulted on the draft strategy? You may recall that we discussed the consultation aspect during our mission. In addition, the draft strategy refers to an action plan in section
4.3 and lists several key elements of it. While we note a “log frame” with a list of indicators and the implementation timeframe (2023),
we would also need to see an action plan with the pacing and costing of actions – either as a standalone document or as part of the strategy.

Regarding land registration, the document you sent is identical to the one we received from the NAPR in May. While the document is a useful overview of progress so far and planned next steps,
the “action plan” part of it (page 24 of the existing document) would need to be more detailed. This can be done either as part of the existing document or as part of the national land registration strategy (which is itself mentioned in the list on page 24).
In this context, could you please update us on the status of that strategy and share a draft with us?

We confirm that we have received sufficient information on the
judiciary from the HCoJ. We will be waiting for information on other outstanding conditions (PIM, public procurement, and MTPL and company laws).

The clarification relating to the
grant element of the first instalment is for our understanding only. We noted that the loan element was budgeted much quicker than the grant element and could not find an immediate explanation. Hence, we would appreciate if you could briefly explain
your internal procedures, which had this effect.

We would propose to schedule a phone call next week, to briefly discuss these issues. For us, 11 July (Thursday) afternoon or 12 July (Friday) afternoon would be preferable. Could you please confirm
your availability and the preferred time?

Thank you again!

Martynas

From: Tamar Avalishvili <[email-masked]>

Sent: Monday, July 1, 2019 4:05 PM

To: BACIULIS Martynas (ECFIN) <[email-masked]>

Cc: Nikoloz Gagua <[email-masked]>; Salome Chakvetadze <[email-masked]>; GRIESSE Joern (ECFIN) <[email-masked]>; HUITFELDT Henrik (ECFIN) <[email-masked]>; REY Vincent (EEAS-TBILISI) <[email-masked]>; GHERMAN
Catalin (EEAS-TBILISI) <[email-masked]>; Davit Shoshitashvili <[email-masked]>; Aleksandre Revia <[email-masked]>; Ketevan Goginashvili <[email-masked]>; Tamar Barkalaia <[email-masked]>; Teimuraz Gabriadze <[email-masked]>

Subject: RE: Conditions for EU macro-financial assistance

Dear Martynas,

Please see the answers of your questions below. Some issues are still outstanding, so we will get back to you as soon as we have feedback on them.

Best Regards,

Tamar

From:
[email-masked] <[email-masked]>

Sent: Monday, June 17, 2019 5:03 PM

To: Davit Shoshitashvili <[email-masked]>

Cc: Nikoloz Gagua <[email-masked]>; Salome Chakvetadze <[email-masked]>; Tamar Avalishvili <[email-masked]>;
[email-masked];
[email-masked]; [email-masked];
[email-masked]

Subject: Conditions for EU macro-financial assistance

Dear David,

Thank you again for your help during the meetings in Tbilisi last month.

In the meantime, we have received additional information from the Georgian authorities on some of the MFA conditions and would like to use this opportunity to touch base on all outstanding issues:

-
On public investment management (condition 1), we refer to our email to you (Niko) of 29/05/2019. Could you please respond on the issues raised in that email (the institutional setup of the PIM system, as well as the timeline
and the scope of project evaluation), also in view of a recent mission by a World Bank expert to Tbilisi?

Waiting for the feedback

-
On PPPs (condition 2), could you please provide an update on the establishment of the independent PPP unit/agency and the fiscal risk unit at the Ministry of Finance (at the time of our mission, the hiring of staff of both units
was ongoing), as well as on the start of their operations?

• The PPP Agency became operational in Feb 2019

• Currently, the Agency is staffed with the following four core employees: head, deputy head, senior advisor and project manager. Additionally, we have hired a part-time accountant.
We are in the process of hiring one more core staff member.

• Together with the international partners (ADB and USAID) and the MoF the Agency have finalized the draft of the technical requirements of the new PPP framework, including the
updated PCN, the assessment methodology as well as relevant guidelines. Using the latest methods, the Agency has already received, reviewed and communicated back the information regarding two projects received from the Ministry of Economic and Sustainable
Development.

• The Agency is incorporating the UNECE’s People first approach (PfPPP) into the PPP framework of Georgia.

• Recently the Agency organized a two-day, high-level event: an inaugural conference and a workshop. About two hundred delegates attended the event. During the workshop, we have
invited government officials from the ministries, other central bodies as well as from the municipalities and regions of Georgia. In total, we have shared information on new methodology and procedures and provided hands-on training and exercises for
up to 80 professionals - the people who will be identifying and initiating potential PPP projects.

-
On public procurement (condition 3), we refer to our email to the SPA of today, 17/06/2019 (copied to you), which covers two specific exceptions allowing direct procurement and the review body.
Waiting for the feedback

-
Have there been any new developments relating to the
MTPL law (condition 4) and company law (Law on Entrepreneurs; condition 10)? In particular, could you please reconfirm your plans to submit the company law to the Parliament by end-July?
Waiting for the feedback

-
On healthcare (condition 6), could you please provide an update on the progress with the adoption of the strategy for strategic purchasing?
Before adoption of the Strategic purchasing implementation strategy by the Government of Georgia, strategy will be discussed at the Health care and Social Issue Committee of the Parliament of Georgia on June 27, 15.00.
Strategy will be adopted in July by GoG.

We also have a specific question to the relevant authorities on section 3.4 of the draft strategy, which refers to selective contracting as part of the improvement of payment and contracting
mechanisms. Do we understand correctly that the increase of inpatient specialised care services purchased through selective contracting, as a share of total expenditure, from 4% in 2017 to 7% in 2019 is mainly explained by the extension of selective contracting
to emergency services in January 2018 and congenital heart diseases in March 2018?
In new version of SP strategy inpatient specialized care services purchased through selective contracting, as a share of total expenditure in 2019 is planed 15%. Selective contracting is implemented into 3 large cities Tbilisi,
Batumi and Kutaisi.  Total amount of inpatient specialized care services purchased through selective contracting was 12% in 2018. After adoption of Strategic purchasing implementation strategy, share will be increase dramatically.

-
Could you please provide an update on the additional stakeholder consultation relating the
labour market strategy (condition 7), which we understand is ongoing, as well as on the timeline for the adoption of the strategy and a more detailed action plan?
Labor Market Strategy has been elaborated and its final version is sent to Delegation for review.  Once we get confirmation from the Delegation, we will upload it for approval.

-
On land registration (condition 9), we have received the attached data from the NAPR on 12/06/2019. Could you please provide an update on the adoption of the action plan for systematic registration?
Please see attached required documentation.

-
On the judiciary (condition 11), we are waiting for additional information from the High Council of Justice on the allocation of cases and the publication of rulings, in response to our email of 18/05/2019 (attached).
You have got the feedback from Ms. Shorena Mezurnishvili

We would also appreciate if you could clarify a couple of procedural issues relating to the grant element of the first instalment, in response to our email to you (Tamar) of 06/06/2019.

Regarding the grant conversation, it is proceeded according to our internal procedures; could you please clarify your interest in this particular issue.

Thank you in advance.

Martynas