Transparent Foreign Aid to Georgia

Project title: "Transparent Foreign Aid to Georgia"
Year: 2008 - 2010
Budget in USD: 93 610

Project Coordinator: Irina Lashkhi

Project is operated by the OSGF Human Rights and Good Governance Program. The project is carried out within the framework of NGO Coalition "Transparent Foreign Aid to Georgia" (TFAG) - - with close cooperation with members of the TFAG Coalition and independent experts.

Project description:

Project goal is to promote transparency and effectiveness of international financial aid pledged to Georgia following the 2008 August war.

Following the August war in 2008 donor countries and international financial institutions pledged to Georgia financial aid for the post-war recovery of circa 4,5 bln. USD. Accordingly, it is highly important to spur NGOs' activity in the promotion of transparent spending and effective management of the funds. Namely, this is a principal goal of the present in-house project. The following activities were carried out within the scope of the project:
- The NGO Coalition "Transparent Foreign Aid to Georgia" (TFAG) was established by the initiative and financial support of OSGF in December 2008 (
- The mission of the "Transparent Foreign Aid to Georgia" (TFAG) Coalition is to promote transparency of the foreign financial aid pledged to Georgia by donor countries and international organizations to assist Georgia in overcoming the crisis following the August 2008 armed conflict, increase government accountability and promote the participation of civil society in the aid management.
- Ten monitoring reports were published by the Coalition by now, there were revealed a number of violations and elaborated recommendations for government on more effective spending of funds, proper planning of projects and other significant issues.

Activities and achievements of the Coalition
Activities carried out within the framework of TFAG Coalition brought the following outcomes, e.g.:

- Facts, revealed in the process of carrying out the activities within the Coalition, created a feasible background for the prevention of further violations: a study of IDPs' settlements elicited the practice of inadequate increase of the agreement values due to the frequent changes made in the ones (therefore initial value of 85 agreements was increased by 26,6% in total, amounted to circa 18 mln. GEL). In 1,5 month after presentation of the study report there was made an amendment to the regulation on Public Procurements banning increase of public procurement agreement value more than by 10%.
Likewise, there were made changes in the Samtskhe-Javakheti Road Rehabilitation project of MCG when an agreement with one of the party was rescinded due to the breach of its provisions by the one.
- There were revealed significant violations concerning lack of transparency in the decision-making process: incomplete tender procedures, incomplete preliminary study of the projects, insufficient level of monitoring the completed works, violations of work schedules/term. Undue regard is given to the fulfillment of environmental management plans. It's worth particular emphasizing the fact of unfair compensation of citizens impacted by one or another project. Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees of Georgia is supposed to conduct better coordination with civil society, donors and other state agencies.
- Positively changed the Black Sea Transmission Line project: finally the alternative ecologically-friendly route was opted out for its construction. Hereby, should be stressed the constructive cooperation of donors and especially, the role of EU that assigned additional funds to compensate a surplus difference between the damageable route and the alternative one, which is the best option in the ecological and economic context finally chosen by the government. The Ministry of Energy of Georgia was also very cooperative on the matter of reaching this decision.
Resultant to the cooperation of the TFAG Coalition with the World Bank it became possible to change the design of "Vaziani-Gombori-Telavi" project what mitigated its environmental and social influence and decrease budget by 30 mln. USD compared to the initial calculations.
- Following cooperation between the Coalition, government and donors the route of Ajara Bypass Road was changed as well and now it is alienated at a safe distance from the Kobuleti unique national park.
- Monitoring of MCG carried out by the Economic Policy Research Center, member of the TFAG Coalition, prevented violation of property rights (expropriation) of 3 Georgian citizens and ensured adequate compensation for these persons.
- Identification of problems regarding "Ashtrom" Company and recommendations made by Economic Policy Research Center incited review of the matter by the Steering Committee of MCG what resulted in taking adequate steps towards the "Ashtrom" and finally - rescinded the agreement with them.

Reports, released within the framework of Coalition:

1) "Reflection of Donors' Financial Aid within the Framework of Brussels Conference Decisions in the 2008 and 2009 State Budgets";
2) "Environmental Impact of the Projects, Implemented with Financial Aid";
3) "Accountability to Beneficiaries";
4) "Cottage Settlement for Georgia's New IDPs: Accountability in Aid and Construction"
5) "The Loan Component of the Post-War Pledge: An Evaluation";
6) "Aid to Georgia: Empowering Georgians via the World Wide Web";
7) "Implementation of Economic Program under the IMF-Supported Stand-by Agreement";
8) "Accounting, Disposal and Control of the International Aid in Georgia";
9) "Analysis and Recommendations of Economic Challenges of Georgia and Governmental Strategy against Crisis";
10) "Monitoring the Millennium Challenge Program, 4th and 5th Stages".




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