Subject: RE: component 2
From: Salome Chakvetadze <[email-masked]>
To: Maddalena Honorati <[email-masked]>
Cc: Tamar Barkalaia <[email-masked]>, Ekaterine Guntsadze <[email-masked]>, Tamar Gabunia <[email-masked]>, "Alicia C. Marguerie" <[email-masked]>, Roberto Claudio Sormani <[email-masked]>, Volkan Cetinkaya <[email-masked]>, Prachi Shrikant Tadsare <[email-masked]>, Nikoloz Gagua <[email-masked]>, Ioseb Skhirtladze <[email-masked]>, natia mshvidobadze <[email-masked]>
Date: Mon, 27 Apr 2020 13:01:56 +0000

Dear Maddalena,

Please find attached the draft loan agreement with comments from the Ministry of Justice and MoF. These are preliminary comments.

Kind regards,

Salome

From: Maddalena Honorati <[email-masked]>

Sent: Sunday, April 26, 2020 8:38 PM

To: Salome Chakvetadze <[email-masked]>

Cc: Tamar Barkalaia <[email-masked]>; Ekaterine Guntsadze <[email-masked]>; Tamar Gabunia <[email-masked]>; Alicia C. Marguerie <[email-masked]>; Roberto Claudio Sormani <[email-masked]>; Volkan Cetinkaya <[email-masked]>;
Prachi Shrikant Tadsare <[email-masked]>; Nikoloz Gagua <[email-masked]>; Ioseb Skhirtladze <[email-masked]>; natia mshvidobadze <[email-masked]>

Subject: RE: component 2

Dear Salome,

Many thanks for sharing the website, the revised LCW and your proposed edits which were duly taken into consideration (except the component 2 part which was then subsequently revised as in the PAD April 25 version shared by Volkan subsequently).

Warm regards,

Maddalena

From: Salome Chakvetadze <[email-masked]>

Sent: Sunday, April 26, 2020 4:42 PM

To: Maddalena Honorati <[email-masked]>

Cc: Tamar Barkalaia <[email-masked]>; Ekaterine Guntsadze <[email-masked]>; Tamar Gabunia <[email-masked]>; Alicia
C. Marguerie <[email-masked]>; Roberto Claudio Sormani <[email-masked]>; Volkan Cetinkaya <[email-masked]>;
Prachi Shrikant Tadsare <[email-masked]>;
[email-masked];
[email-masked]; natia mshvidobadze <[email-masked]>

Subject: RE: component 2

[External]

Dear Maddalena,

To avoid misunderstandings, please consider from my last email (PAD with MoLISHA comments) all comments except the component part which was split in the last version provided by Volkan.

Kind regards,

Salome

From: Salome Chakvetadze

Sent: Sunday, April 26, 2020 5:46 PM

To: 'Maddalena Honorati' <[email-masked]>

Cc: Tamar Barkalaia <[email-masked]>; Ekaterine Guntsadze <[email-masked]>; Tamar Gabunia <[email-masked]>; Alicia
C. Marguerie <[email-masked]>; Roberto Claudio Sormani <[email-masked]>; Volkan Cetinkaya <[email-masked]>;
Prachi Shrikant Tadsare <[email-masked]>; Nikoloz Gagua <[email-masked]>; Ioseb Skhirtladze <[email-masked]>; natia mshvidobadze
<[email-masked]>

Subject: RE: component 2

Dear Maddalena,

Please find attached the new LCW with changed amount and PAD with MoILSHA comments.

Also here are the links for SEP and ESCP published on MoF web-site:
https://mof.ge/5305

https://mof.ge/en/5306.

Kind regards,

Salome

From: Maddalena Honorati <[email-masked]>

Sent: Friday, April 24, 2020 11:41 PM

To: Ekaterine Guntsadze <[email-masked]>

Cc: Tamar Barkalaia <[email-masked]>; Tamar Gabunia <[email-masked]>; Salome Chakvetadze <[email-masked]>;
Alicia C. Marguerie <[email-masked]>; Roberto Claudio Sormani <[email-masked]>; Volkan Cetinkaya <[email-masked]>;
Prachi Shrikant Tadsare <[email-masked]>

Subject: RE: component 2

Dear Eka,

Many thanks, noted.

Maddalena

From: Ekaterine Guntsadze <[email-masked]>

Sent: Friday, April 24, 2020 9:35 PM

To: Maddalena Honorati <[email-masked]>

Cc: Tamar Barkalaia <[email-masked]>; Tamar Gabunia <[email-masked]>; Salome Chakvetadze <[email-masked]>;
Alicia C. Marguerie <[email-masked]>; Roberto Claudio Sormani <[email-masked]>; Volkan Cetinkaya <[email-masked]>;
Prachi Shrikant Tadsare <[email-masked]>

Subject: Re: component 2

[External]

Dear Maddalena,

We confirm from MOF, having two sub-components under social, first sub-component with total amount of USD20 million and 2nd with sub-components with USD 88 million.

Best,

Eka

On Apr 24, 2020, at 21:55, Maddalena Honorati <[email-masked]> wrote:

Dear Tamila,

Many thanks. It is good to know that there will be one single package/government decree on all the measures.

We saw the changes you proposed in the SEP received yesterday, which came after our internal quality control meeting. While we do not object the disability benefit measure as part of the package, we had not assessed the corresponding implementation
arrangements and risks, and had not discussed the technical aspects with you before.

At the current stage of the project preparation (we had internal clearance by our vice president on the project design yesterday), we are not in the position to make this change, as it is quite a substantial change in the project scope
and design.

We can accommodate the top up benefit for families with more than 3 children and the 300 GEL one off benefit for informal workers (which will replace the temporary 200 GEL benefit for 6 months we have been discussing).

We will share the revised PAD, loan agreement and disbursement letter later today.

Please let us know if you have suggested amounts for the sub-components.

Warm regards,

Maddalena

From: Tamar Barkalaia <[email-masked]>

Sent: Friday, April 24, 2020 6:58 PM

To: Maddalena Honorati <[email-masked]>; Tamar Gabunia <[email-masked]>

Cc: Ekaterine Guntsadze <[email-masked]>; Salome Chakvetadze <[email-masked]>;
Alicia C. Marguerie <[email-masked]>; Roberto Claudio Sormani <[email-masked]>;
Volkan Cetinkaya <[email-masked]>

Subject: RE: component 2

[External]

Dear Maddalena,

Legal basis for all these components will be Government decree.  All will go under one package and will not take more that 3-5 days to be approved by government.

All of listed (except 300 GEL one-time benefit for informal workers)  benefits were included in the last version of SEP sent by Salome Chakvetadze on Thursday.  We apologize for belated
change but the decisions are made on the hourly basis due to know circumstances.

As for How will number 3 implemented? How will beneficiaries be selected?  SSA
is the implementing agency for the social benefits (pensions) for people with disabilities (including children with disabilities),  hence there is an available database (with bank account info) which is updated on monthly basis at SSA.

I hope this information is helpful.

Kind regards,

Tamila

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

Sent: Friday, April 24, 2020 8:46 PM

To: Tamar Barkalaia; Tamar Gabunia

Cc: Ekaterine Guntsadze; Salome Chakvetadze; Alicia C. Marguerie; Roberto Claudio Sormani; Volkan Cetinkaya

Subject: RE: component 2

Dear Tamila ,

Many thanks for your answers, I see there are more benefits you’d like to add which will need a legal basis:

1.
temporary cash transfers (GEL 100 per household) to vulnerable households (with score between 65,000 and 100,000) for 6 months,

2.
GEL 100 for families with three or more children (with score 100,000
and bellow) for up to 6 months

3.
direct transfer of GEL 100 to people with severe disabilities (including children with disabilities) for up to 6 months.

4.
One off benefit of 300 for informal workers

5.
Temporary benefit of 200 GEL per months for 6 months for formal workers

1-2- are all under the same SSA administration we discussed and 4 and 5 implemented by SESA with revenue service.

How will number 3 implemented? How will beneficiaries be selected? I am a bit hesitant to include this as we had never discussed before. Please let us know more details.

We will look forward to the proposed allocation .

Maddalena

From: Tamar Barkalaia <[email-masked]>

Sent: Friday, April 24, 2020 6:29 PM

To: Maddalena Honorati <[email-masked]>; Tamar Gabunia <[email-masked]>

Cc: Ekaterine Guntsadze <[email-masked]>; Salome Chakvetadze <[email-masked]>;
Alicia C. Marguerie <[email-masked]>; Roberto Claudio Sormani <[email-masked]>;
Volkan Cetinkaya <[email-masked]>

Subject: RE: component 2

[External]

Dear Maddalena,

Please see my reply below in red.

Kind regards,

Tamila

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

Sent: Friday, April 24, 2020 8:17 PM

To: Tamar Barkalaia; Tamar Gabunia

Cc: Ekaterine Guntsadze; Salome Chakvetadze; Alicia C. Marguerie; Roberto Claudio Sormani; Volkan Cetinkaya

Subject: component 2

Dear Tamila,

We checked internally and understand that funds across sub-components can be moved for an amount equal to maximum 15% of the sub-component amount.

To give you more flexibility in the use of the funds we propose to split component 2 in the following 2 subcomponents:

Component 2.  Enabling health measures to contain the COVID-19 outbreak through temporary income support for poor households and vulnerable individuals (US$ 107.85 million equivalent)

Subcomponent 2.1:  Cash transfers to poor and vulnerable households  [AMOUNT TBD]

This subcomponent will finance (i) the natural expansion of the TSA program to newly eligible households (with score < 65,000) and (ii) temporary cash transfers (GEL 100 per household)
to vulnerable households (with score between 65,000 and 100,000) for 6 months, (iii) GEL
100 for families with three or more children (with score 100,000
and bellow) for up to 6 months and (iv) direct transfer of GEL 100 to people with severe disabilities (including children with disabilities) for up to 6 months.

SSA key implementer

Subcomponent 2.2: Temporary unemployment assistance for individuals who lost their job because of the COVID-19 outbreak [AMOUNT
TBD]

This subcomponent will finance (i) a temporary cash unemployment benefit of 200 GEL per month per person for six months for formal private sector wage workers who lost their job since March 21 and (ii)

the temporary benefit of GEL 300 per person for informal workers who lost the job due to the negative impacts due to measures
adopted to contain the outbreak and the resulting economic downturn, for a period up to 6 months.

SESA key implementer,  with Revenue Service

We read now the PM announcement and learned about the one-time assistance of 300 GEL per person for
informal workers or the self-employed. Do you want to introduce this under subcomponent 2.2 instead of the temporary benefit of GEL 200 per
month per person for informal workers (up to six month)?  Yes, as per change in above.

Please kindly confirm :

Whether you agree on the component structure around 2 subcomponents (so you can use the money allocated to each in a more flexible way depending on demand)   - Yes

it whether you want to replace the temporary cash benefit for informal workers (up to six months) with the one-off transfer - Yes

amount allocated to the 2 components and possibly across the 4 measures so we can set up targets for the indicators. – My colleagues from
MoF will get back to you on the amounts shortly.

We can work on the PAD write up meanwhile upon your confirmation.

Looking forward to hearing from you

Maddalena

Maddalena Honorati

Senior Economist

Social Protection & Labor

T

+1 202 458 1878

E

[email-masked]