1. MINISTRY OF REGIONAL DEVELOPMENT AND INFRASTRUCTURE OF GEORGIA Regional Development in Georgia Open Days, Brussels October 11, 2011

2. Georgia at a Glance 2 Area69 700 sq km Population 20094,4 million Life expectancy74 years Official languageGeorgian Literacy100% CapitalTbilisi Currency (code)Lari (GEL) GDP 10 (estimate)US$ 11.0 billion GDP - real growth rate 2010 (e)5.5% GDP - Per Capita 2010 (PPP)US$ 5 057 Inflation rate (e-o-p) 20108% External Public debt to GDP 201037.2%

3. Georgia at a Glance 2/16/2014Georgian Roads 3 11 (2010) 112 (2005) DoingBusiness 26 (2010) 99 (2005) Economic Freedom Index 7 (2010) CorruptionReduction

4. Administrative-Territorial Map of Georgia 4 (2005) )

5. Ministry of Regional Development and Infrastructure of Georgia 5 Main functions: Elaboration of regional development policy framework Coordination of local self-government reform Development of road, water supply & sewage infrastructure Coordination of Village Support Program Institutional refinement of water supply & sewage systems Coordination of the military mobilization Coordination of Governors activities

6. Ministry of Regional Development and Infrastructure of Georgia 6 Coordination of Governors activities Coordination of Village Support Program Coordination of Governors activities Coordination of Village Support Program Regional development policy Local self-government reform Infrastructure : Roads ; Water supply Sewage systems ; Other. Coordination of the military mobilization

7. Local Self-Government and Regional Development Policy Reform Main directions of the reform: – Decentralization of governance – Ratification of the European Charter on Local Self-Governance – New legislation on local self-governance Number of self-governing units was reduced from 1000 to 69: – 5 self-governing cities – 64 municipalities 7

8. Local Self-Government and Regional Development Policy Reform Institutionalization of Regional Policy 8 2010 (1) Diagnostic Report (2) Strategic Recommendations 2009 (1) Ministry of Regional Development and Infrastructure of Georgia (2) Task Force and 7 Working Groups 2008 D Draft Local Self-Government Reform Strategy

9. ga Partner International Organizations

10. Political Documents 10 State Strategy for Regional Development of Georgia for 2010-2017 Regional Development SPSP Matrix Medium-term Action Plan for 2011-2014

11. State Strategy for Regional Development of Georgia for 2010-2017 Main directions: Effective governance for sustainable regional development Development of municipal services and infrastructure Supporting development of innovations, new technologies and entrepreneurship Development of agriculture and tourism Ensuring environmental protection 11

12. Regional Development SPSP Matrix Aims of the EU Sector Policy Support Program on Regional Devel opment: Supporting sustainable regional development in Georgia Development of human resources through training of public bodies Increasing citizens participation in regional development Spending funds according to the Regional Development State Strategy priorities Improvement of regional statistics and information systems 12 Tranches in stages I – 5 mln EUR II – 6 mln EUR III – 6 mln EUR I tranche – 5 mln EUR II tranche – 6 mln EUR III tranche – 6 mln EUR

13. Action Plan for 2011-2014 Main directions: Effective governance for sustainable regional development Development of municipal services and infrastructure Supporting development of innovations, new technologies and entrepreneurship Development of agriculture, tourism and ensuring environmental protection Improvement of medical service for citizens, supporting healthcare 13 Direction Project/ Program Activity Source of Funding, Timeline, Institution, Indicators

14. Expected Results EU - 17+ 2 mln EUR Creation of effective mechanisms for regional development Annual monitoring & evaluation format Result-oriented instrument for cooperation between state institutions and civil/private/donor sectors 14

15. Pilot Regional Development Program Identification of region – the whole country can be considered as one region (NUTS 3 level) Identification of possible institutions – MRDI, Inter-Ministry Working Group at MRDI, Regional Development Councils Regional Development Councils – for elaboration of RDS, created by Governors Decree and consist of representatives from: regional administrations, municipalities, NGO and private sectors. 15

16. Pilot Regional Development Program Identification of Sectors: Infrastructure Development Renovation of roads Renovation of water and sewage systems Waste management Tourism Citizens Service Bureaus Human Resources Development Support to local administrations through institutional capacity building Training of public servants Improvement of municipal services for citizens Setting up regional development statistics data bases Innovations for Regional Development Elaboration of Innovation Concept Identification of funding mechanisms for scientific research 16

17. 2/16/2014Georgian Roads 17 Thank You For Your Attention! Contact: Ms. Nino Danibegashvili Head of International Relations Service Tel: (995 577) 112 127 E-mail: danibegashvili@mrdi.gov.gedanibegashvili@mrdi.gov.ge Thank You For Your Attention! Contact: Ms. Nino Danibegashvili Head of International Relations Service Tel: (995 577) 112 127 E-mail: danibegashvili@mrdi.gov.gedanibegashvili@mrdi.gov.ge