Subject: AW: 202068443: Soziale Sicherung in der COVID-19 Pandemie | No-objection request for hiring staff at PIU
From: "[email-masked]" <[email-masked]>
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Fri, 11 Dec 2020 11:25:46 +0000

Dear Ms. Barkalaia,

attached please find KfW´s No Objection to the draft contracts for the abovementioned project.

Kind regards,

Gabriela Huskic

Procurement Manager

KfW Development Bank

Lee3

Palmengartenstr. 5-9

60325 Frankfurt am Main

Phone: 0049 69 7431 1408

[email-masked]

www.kfw.de

Von: Nino Kvernadze

Gesendet: Dienstag, 1. Dezember 2020 15:00

An: Calanduccia, Salvatore ; Kvantaliani, Tamar (Büro Tiflis)

Cc: Tamar Barkalaia ; Natalie Godziashvili ; Beka Jakeli

Betreff: RE: No-objection request for hiring staff at PIU

Dear Salvatore,

Thank you for your email.

Please find enclosed amended draft contracts in which we have inserted in Ad 5.1Remuneration section, the total amount in USD. Hope this is fine.

Regarding the contract currency, this was an issue in our contracts as well. It turned out, that due to the currency fluctuation, foreign currency causes big
differences in future reimbursement procedures, which is problematic in accounting for the MoILHSA.

Hence the best way to solve this, is to have fixed salary in GEL.

Hope this explanation is helpful and we can proceed with the No-objection procedures.

Best,

Nino

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

Sent: 30 November, 2020 19:39

To: Nino Kvernadze <[email-masked]>;
[email-masked]

Cc: Tamar Barkalaia <[email-masked]>; Natalie Godziashvili <[email-masked]>; Beka Jakeli <[email-masked]>

Subject: RE: No-objection request for hiring KfW staff at PIU

Dear Nino,

Thank you for the submission of the draft contracts.

Before forwarding the contract to Procurement Department kindly allow me to ask for two minor clarifications.

1. In the logic of this contract template the total order value should be included (so twelve times 1500 USD, which we assume to be the monthly compensation).
Could you replace 1500 USD with the total amount? You can specify in the lines thereunder that the salary will be paid in twelve months / installments.

2. We recall to have discussed that the currency in the contract was planned to be EUR. Is there an administrative limitation which hinders the adoption of
EUR in the contracts?

All the best,

Salvatore

Von:
Nino Kvernadze <[email-masked]>

Datum
Montag, 30. Nov. 2020, 4:20 PM

An:
Calanduccia, Salvatore <[email-masked]>, Kvantaliani, Tamar (Büro Tiflis) <[email-masked]>

Cc:
Tamar Barkalaia <[email-masked]>, Natalie Godziashvili <[email-masked]>,
Beka Jakeli <[email-masked]>

Betreff:
RE: No-objection request for hiring KfW staff at PIU

Dear Salvatore,

As agreed, please find contract drafts for your review and no-objection. There is minors issue, on currency which will be changed in GEL on the contract signature date.

We have almost finalized internal procedures, and looking forward for your immediate attention to this matter.

In addition, since the social benefits will be continued from January on, please be noted that PIU, is considering to ask retroactive financing for September and October,
with the total amount of GEL 4,984,700.

We would need two more days for the finalization of the documentation.

All the best,

Nino Kvernadze

ნინო
კვერნაძე

პროექტის
მენეჯერი,

მსოფლიო
ბანკის COVID-19-ის
წინააღმდეგ
სწრაფი
რეაგირების

პროექტის
განმახორციელებელი
ჯგუფი (PIU),

საქართველოს
ოკუპირებული
ტერიტორიებიდან
დევნილთა,
შრომის,
ჯანმრთელობისა
და
სოციალური
დაცვის
სამინისტრო

www.moh.gov.ge

Nino Kvernadze

Project Manager, PIU – World Bank

Emergency COVID-19 Response Project Implementation Unit

Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia

www.moh.gov.ge

Email:
[email-masked]

Cell: +995 599 18 46 44

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

Sent: 27 November, 2020 11:55

To: Nino Kvernadze <[email-masked]>;
[email-masked]

Cc: Tamar Barkalaia <[email-masked]>; Natalie Godziashvili <[email-masked]>

Subject: AW: No-objection request for hiring KfW staff at PIU

Dear Nino,

Thank you for your message. We are happy to hear that the interviews were successful.

Please note that the no-objection will come from our Procurement Department and for them to be able to issue no-objection they would also need the final drafted consulting
contract (following the template we sent you; re-attached for your convenience).

As soon as we receive the draft consulting contract, we will forward the package to Procurement Department and they will directly issue no-objection to you.

Best regards,

Salvatore

Von: Nino Kvernadze <[email-masked]>

Gesendet: Donnerstag, 26. November 2020 19:09

An: Calanduccia, Salvatore <[email-masked]>; Kvantaliani, Tamar (Büro Tiflis) <[email-masked]>

Cc: Tamar Barkalaia <[email-masked]>; Natalie Godziashvili <[email-masked]>

Betreff: No-objection request for hiring KfW staff at PIU

Dear Salvatore,

Dear Tamar,

We are very glad to inform you that job interviews were successful and following candidates were selected:

Ms. Salome Chakvetadze – Project’s Financial Assistance, part time

Mr. Otar Antia – Project’s coordinator, full time.

Please find their resumes, along with the TORs.

We hereby request KfW’s no-objection to continue contract signatures as per your guidelines.

Thank you for your cooperation!

All the best,

Nino Kvernadze

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

Sent: 19 November, 2020 21:03

To: Nino Kvernadze <[email-masked]>

Cc: Tamar Barkalaia <[email-masked]>;
[email-masked]; Natalie Godziashvili <[email-masked]>;
[email-masked]

Subject: FC with Georgia | Social Protection Programme KfW | here: Retroactive Financing

Importance: High

Dear Deputy Minister Barkalaia,

dear Nino,

Thank you for the submission of the ToR.

We do not have any further comments to them in their version, as attached.

Concerning the disbursement flows, today we learned - with regret - that there is the consideration to
not make use of the retroactive reimbursement portion (up to 30%).

As retroactive reimbursement is a rare exceptional case in German Financial Cooperation, we put a high level of effort into asking the German Federal Ministry (BMZ) for approval
and to include the retroactive reimbursement portion into the grant and loan agreements.

We gladly did this to
accommodate the suggestion expressed by the Government of Georgia in the preparation phase with the idea to support our partners in the best way possible in these times of crises.

Hence, we would highly appreciate it, if you
still saw a possibility to make use of the retroactive reimbursement portion.

As we said, the portion can amount to up to 30% of the Grant amount - which would be EUR 1,743,612.74.

These additional (retroactive)
grant funds could be of tremendous financial support for the TSA program, especially in this year of unprecedented challenges.

We, furthermore, learned that you intend to withdraw roughly EUR 2.3 million from the Grant for TSA expenditures that arose in November.

If it helps to reduce the administrative burden, we are very happy to receive
one combined withdrawal application (retroactive financing + November expenditures).

We would need to receive the final, duly signed withdrawal application(s) as soon as convenient, ideally by December 1st.

In case of questions we stand ready to assist.

All the best,

Salvatore

Salvatore Calanduccia

Portfolio Manager

Sustainable Economic Development and Education

Southeast Europe and Turkey

Eastern Europe, Caucasus, Central Asia

KfW Group

KfW Development Bank

Palmengartenstrasse 5-9

60325 Frankfurt

Germany

(
+49 69 7431 1157 / +49 173 3260987 (mobile)

+
[email-masked]

8
www.kfw.de

Von: Nino Kvernadze <[email-masked]>

Gesendet: Donnerstag, 19. November 2020 16:29

An: Calanduccia, Salvatore <[email-masked]>

Cc: Tamar Barkalaia <[email-masked]>; Kvantaliani, Tamar (Büro Tiflis) <[email-masked]>; Natalie Godziashvili <[email-masked]>

Betreff: RE: FC with Georgia | Social Protection Programme KfW | here: Preparation of Disbursement Request

Priorität: Hoch

Dear Salvatore,

Thank you very much for the detailed clarification and the contract template.

In addition, please find the terms of references of the Project Coordinator and the Financial Manager (both clean and tracked for the comments). Please review
and send back to us.

For tomorrow, we can share with you the exact amount of the
retroactive financing, and since there has been no payment since 29th of October yet, for the
proactive, we will have exact amount of payments, by next week.

Best regards,

Nino Kvernadze

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

Sent: 17 November, 2020 20:30

To: Nino Kvernadze <[email-masked]>; Natalie Godziashvili <[email-masked]>

Cc: [email-masked]

Subject: AW: FC with Georgia | Social Protection Programme KfW | here: Preparation of Disbursement Request

Dear Nino,

It was great to talk to you.

We are glad that we could clarify the misunderstanding regarding the term “retroactive financing”.

We re-confirm that retroactive financing simply means that the expenditure that KfW reimburses occurred before entry into force of the contract (which is the signing of the Grant Agreement or the ratification in Georgian Parliament plus a legal opinion from
MinJustice for the Loan Agreement, respectively).

Furthermore, we confirm that the entire loan and grant amount will be transferred from KfW to Georgian Government via the reimbursement procedure (i.e. first Georgian Government
transfers social security funds to SSA à then later KfW reimburses expenditures to Georgian Government). This procedure is very
similar to the disbursement procedure of the World Bank portion.

As promised…

… we are attaching the contract template for the consultancy contracts.

You can easily fill it out and send it to us together with information about the chosen candidate (name, CV and a quick justification) in one e-mail in which you request
our “no-objection” to the Direct Award.

Please do not modify the General Conditions.

… we checked with Disbursement Management about the possibility to combine the reimbursement of October expenditures (“retroactive financing”;
max. 30%) with a reimbursement of November expenditures.

Disbursement Management confirmed that this is feasible. However, it has to be made very clear in the Withdrawal Application which amount is “retroactive” and which is for November in order for us to comply with documentary regulation by German Federal
Ministry. And the documentation attached to the Withdrawal Application should – of course – also provide evidence to both portions.

Concerning the amount for the November portion, I will check with my management and inform you accordingly.

All the best,

Salvatore

Von: Calanduccia, Salvatore

Gesendet: Montag, 16. November 2020 11:50

An: [email-masked]' <[email-masked]>; 'Nino Kvernadze' <[email-masked]>; Natalie Godziashvili <[email-masked]>

Cc: Kvantaliani, Tamar (Büro Tiflis) <[email-masked]>

Betreff: FC with Georgia | Social Protection Programme KfW | here: Preparation of Disbursement Request

Dear Deputy Minister Barkalaia,

Dear all,

We hope this e-mail finds you in good health.

As you know the Loan and the Grant Agreements have been signed on October 29, 2020.

To help prepare the operationalization of the Project, we discussed the next steps with the PIU nearly two weeks ago.

One of the upcoming steps was the submission of the Specimen Letter designating persons authorized to sign reimbursement applications to prepare the first reimbursement from
KfW.

In the Grant Agreement (as well as in the Loan Agreement), we included the possibility for
retroactive financing.

Retroactive financing means that KfW reimburses expenditures that were incurred by MoILHSA already
up to 4 months before the entry into force of the respective agreements with KfW.

The maximum share admissible for retroactive financing as per the regulations of German Federal Ministry for Economic Cooperation and Development (BMZ) is
30%.

This means that the reimbursement application for retroactive financing may comprise up to 30% of the Grant amount, which would be
EUR 1,743,612.74.

One of the conditions for eligibility of social expenditures under retroactive financing of the Grant is that the social expenditures must have been paid by MoILHSA to SSA
between June 30 and October 29.

Other conditions for eligibility are outlined in the Separate Agreement (e.g. correct program measures, certification from SSA Director, confirmation that the expenditures
have not yet been reimbursed by World Bank/AIIB, etc.).

A separate reimbursement application can -
in addition to the 30% ceiling for retroactive financing - also comprise payments from MoILHSA to SSA that were made
after the entry into force (=signing of the Grant Agreement).

We would be very delighted to have a call
tomorrow (Nov. 17) at 14:30 Tbilisi time with PIU to discuss more details of disbursement/reimbursement.

For this call, we would suggest Skype as video-conferencing platform.

Would this suit your schedules?

As we are approaching the end of the Fiscal Year of BMZ, a quick reimbursement would be very much encouraged from our side.

We wish you and your families all the best in these troublesome times.

Best regards,

Salvatore Calanduccia

Salvatore Calanduccia

Portfolio Manager

Sustainable Economic Development and Education

Southeast Europe and Turkey

Eastern Europe, Caucasus, Central Asia

KfW Group

KfW Development Bank

Palmengartenstrasse 5-9

60325 Frankfurt

Germany

(
+49 69 7431 1157 / +49 173 3260987 (mobile)

+
[email-masked]

8
www.kfw.de

Von: Nino Kvernadze <[email-masked]>

Gesendet: Donnerstag, 5. November 2020 20:19

An: Calanduccia, Salvatore <[email-masked]>; Natalie Godziashvili <[email-masked]>

Cc: Kvantaliani, Tamar (Büro Tiflis) <[email-masked]>; Veigel, Dr. Klaus (Büro Tiflis) <[email-masked]>

Betreff: RE: FC with Georgia | Social Protection Programme KfW

Dear Salvatore,

Hello again. The meeting was very productive indeed and many thanks for the summery of our discussion.

We will follow up all activities/issues and get back to you shortly.

Best regards,

Nino Kvernadze

ნინო
კვერნაძე

პროექტის
მენეჯერი,

მსოფლიო
ბანკის COVID-19-ის
წინააღმდეგ
სწრაფი
რეაგირების

პროექტის
განმახორციელებელი
ჯგუფი
(PIU),

საქართველოს
ოკუპირებული
ტერიტორიებიდან
დევნილთა,
შრომის,
ჯანმრთელობისა
და
სოციალური
დაცვის
სამინისტრო

www.moh.gov.ge

Nino Kvernadze

Project Manager, PIU – World Bank

Emergency COVID-19 Response Project Implementation Unit

Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia

www.moh.gov.ge

Email:
[email-masked]

Cell: +995 599 18 46 44

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

Sent: Thursday, November 5, 2020 7:05 PM

To: Natalie Godziashvili <[email-masked]>; Nino Kvernadze <[email-masked]>

Cc: [email-masked];
[email-masked]

Subject: FC with Georgia | Social Protection Programme KfW

Dear Nata and Nino,

Thank you for the productive and pleasant call today.

Please allow me to quickly sum up what we agreed upon today:

PIU/MoILHSA will send the specimen signatures to KfW (see attachment A-1 of Annex 4 of the Separate Agreement) soon.

PIU/MoILHSA will send the ToR of Financial Management Expert and Project Coordination Expert to KfW together with a proposal of individual experts
for direct award.

Both experts shall have a consultancy service contract following KfW’s standard contract.

Reimbursement procedure shall be applied for both small expert contracts, as the values are too small for KfW’s Direct Disbursement Procedure

As promised we herewith re-confirm that due to the high financial volumes we would kindly require the
mandatory assurance engagement (audit) to be conducted by a well reputed audit company, pertaining to an
international network of audit firms (e.g. the so-called “Big 4”) – as stipulated in the Separate Agreement.

To increase efficiency and decrease the administrative workload of busy PIU staff but
subject to KfW-internal approval, a top-up contract to the audit firm selected under the World Bank Project might be acceptable to KfW considering the requirement above (international network of audit firms, high reputation). However, in this case still
a separate contract would need to be concluded (no amendment/addendum).

After internal consultation with the responsible Disbursement Manager I, unfortunately, learned that KfW is obliged by the procedures of the Federal
Ministry of Germany to convert the requested amount at an exchange rate of the date of disbursement from KfW to the Project Partner. However, with a slightly depreciating Georgian Lari together with a quite short projected implementation period of less
than 1 year, the actual currency exchange risk is not considered to be too high.

Thank you again for the pleasant call. In case of questions, feel free to contact us anytime.

Kind regards,

Salvatore

Salvatore Calanduccia

Portfolio Manager

Sustainable Economic Development and Education

Southeast Europe and Turkey

Eastern Europe, Caucasus, Central Asia

KfW Group

KfW Development Bank

Palmengartenstrasse 5-9

60325 Frankfurt

Germany

(
+49 69 7431 1157 / +49 173 3260987 (mobile)

+
[email-masked]

8
www.kfw.de

--------------------------------------------

KfW / Sitz: Frankfurt am Main

Vorstand: Dr. Guenther Braeunig (Vorsitzender), Dr. Ingrid Hengster,

Melanie Kehr, Bernd Loewen, Dr. Stefan Peiss

Verwaltungsrat: Bundesminister Peter Altmaier (Vorsitzender)

Datenschutz

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