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Georgia

UN Georgia Information Bulletin for the period of 21-31 Mar 2000

An Agro-business Bank has been established in Georgia. This European Union Technical Assistance to the CIS (TACIS) funded project is the successor to the Regional Agricultural Reform Programme 1 (RARP1) credit component which on-loaned GEL 10.2m to the agricultural sector of Georgia, revolving it nearly 3.5 times (GEL 38m) in three years with a high level of repayment.
The Agro-business Bank opened its doors for business on 21 February 2000. It is dedicated to the provision of credit solely to the agricultural sector. The following important strategic points are worthy of note. The seed capital for the Bank is the counterpart fund which remains intact at GEL 9.9m following the operations of RARP1. The bank will direct the bulk of its lending to the agro-business and processing sub-sectors, addressing the requirements of the full range of agricultural activities. Processors will then "cascade" their investment into the production sub-sectors purchasing the appropriate commodities from farmers. The Bank will also however, on-lend to farmers and producers in line with viability reflected in their business plans.

It is proposed that 40% of the bank's lending portfolio will be directed through selected commercial banks which are then held responsible for recovery and repayment of their sub-loans. Interest will be charged by the Agro-business Bank to the banks at 12% per annum to which the banks add their margin of around 8/10% per annum. The remaining 60% of the Bank's lending portfolio will be on-loaned directly to customers. Interest, in this context, will be levied at 18/22% per annum.

At a info-sharing meeting hosted on 24 March, by the Ministry of Agriculture and Food, representatives of the Agro-business bank noted that on the subject of collateral, they hope to be flexible, provided an applicant can provide a viable business plan.

The Bank representatives also noted that there is scope for cooperation with humanitarian agencies. For example, it might be possible to lend to associations or co-operatives of farmers that NGOs helped to establish, provided a viable business plan permitted. In addition, if an NGO wished to obtain a loan for onlending to beneficiaries such as rural IDPs, this might also be possible provided the NGO demonstrates sufficient accountability for the loan.

For additional information please contact Mr. Peter Shaw, Project Team Leader, Agro-business Bank. Tel.: 32 93 62; 32 96 68; 25 08 20; or 25 13 62.

ICRC Provides Food Assistance in Abkhazia

In Abkhazia, the International Committee of the Red Cross (ICRC) ensures food security for a total of approximately 30,000 beneficiaries through different programmes. Half of the beneficiaries are assisted on a daily or quarterly basis. Agricultural products and seed kits are distributed annually to 7,600 households (c.a. 15,000 beneficiaries), helping people with access to land in rural areas with their food production. Dry food and non-food items are distributed on a three month basis to approximately 10,000 persons almost destitute, partially covering their caloric food requirement. Persons found destitute are provided with a full caloric food requirement through the canteen programme. 19 canteens run by the ICRC serve hot, varied and nutritionally high meals to 5,300 beneficiaries, primarily the elderly living alone and the disabled, of which some 900 home-bound receive their meals at home through the home assistance programme.

SECTORS

Demining

During February, HALO Trust deminers cleared 115 anti-personnel mines and 2 anti-tank mines, thereby clearing 7,541 square metres of mine contaminated land in Abkhazia. The organisation also destroyed two 250 kg. aircraft bombs in the vicinity of Kaman bridge and Akalsheni, in the hills north of Sukhumi.

HALO Trust also completed its survey of minefields in Abkhazia. During the course of the research 95 minefields covering 18,366,000 square metres of potentially mine threatened land were identified. The Abkhazia Minefield Survey Report, including a computer generated map of each and every minefield of Abkhazia, will be launched in Tbilisi on 10 April.

Mine awareness training was provided for 1,537 persons at thirteen sites including two schools in Sukhumi, two in the Gagra district, three in the Ochamchire district, and four in the Gali district. Mine awareness training was also provided for UN staff at Gali sector headquarters and to IDPs at the Zugdidi school #4.

Food

The World Food Programme (WFP) has launched a fourth food distribution within the framework of its institutional support programme. In addition to 85 institutions assisted since September 1999, WFP has taken over food assistance for several other institutions supported in the past by the International Federation of Red Cross and Red Crescent Societies. This programme will last to the end of June 2000, and will assist 11,500 children, elderly and disabled with wheat flour, vegetable oil, sugar, canned fish and dry skimmed milk (only for children) throughout Georgia (excluding Abkhazia).

Shelter

From 19 to 29 March, Counterpart International delivered folding beds to IDPs residing in Zugdidi. Vulnerable persons in Tkibuli, Kutaisi and Senaki were assisted with clothing. The Tsalenjikha boarding school received a refrigerator, a washing machine, and a dryer. Counterpart International also delivered teddy bears donated by World Vision to the Tbilisi children's TB centre.

ANNOUNCEMENTS

On 24 March, an inauguration of the NGO Resource Centre in Kutaisi took place. The event was attended by representatives from local government, international organisations, and international and local NGOs. The premises for the centre has been rented by the Danish Refugee Council (DRC) for a 3-year period. The centre contains facilities for seminars, trainings, internet connection, offices for newly started NGOs, and other activity rooms.

Agencies are reminded that they are welcome to include in OCHA's bulletins announcements of pending meetings.

Produced by OCHA Georgia. For more information, please contact Ms. Nino Zhvania, Information Officer
Tel/Fax: 995-32-959516; Tel: 995-32-943163; e-mail: unocha@unocha.org.ge
Contributions are welcome and should reach OCHA, 9 Eristavi St., Tbilisi by 12.00hrs. on 9th, 19th, and 29th of each month.

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