Millennium Challenge making progress despite obstacles

The Economic Policy Research Center (EPRC), with the support of Open Society Georgia Foundation (OSGF) presented the Report “Monitoring the Millennium Challenge Program 5th stage” at Hotel Radisson Blue Iveria on December 14. The program endowed to Georgia by the US Government in 2005 is a very important financial source for economic development of the country from which activities are planned to be carried out by the Millennium Challenge Georgia Fund (MCG).

The projects carried out in the frames of the Millennium Challenge Program include Samtskhe-Javakheti Road Rehabilitation, Energy Infrastructure Rehabilitation, Regional Infrastructure Development Project, Regional Development Fund and Agrobusiness Development Activity. The 5th monitoring reports have been elaborated by the EPRC on the activities of the MCG under the new management from 2009-2010 within the frameworks of Coalition “Transparent Foreign Aid to Georgia”.

Stressing the former MCG board had been reluctant to relevantly cooperate with EPRC, Keti Khutsishvili Executive Director of OSGF spoke of the lack of transparency between the sides. The energy infrastructure rehabilitation project had been unanimously announced to be the most successful project of the Millennium Challenge Program with its 100% accomplishments while the Samtskhe-Javakheti road rehabilitation project remained the main subject for controversy. The expenses for the final rehabilitation of the road increased to USD 212 million instead of the USD 100 million calculated initially while this money could have been used for promoting other projects. “Ashtrom International, responsible for the rehabilitation process, proved its incompetence. We had been criticizing the company from 2008 to make them leave the playground,” Khutsishvili said, complaining that it was not until August 2010 when the contract with Ashtrom had been annulled.

Nino Evgenidze, EPRC Director, who had been monitoring the whole program, spoke of the necessity for active cooperation among all the involved sides. Highlighting the importance of Samtskhe-Javakheti road for the integration of the regions in the rest of Georgia, Evgenidze hoped that the new board of MCG Chaired by Giorgi Abdushelishvili would fully consider their recommendations and ensure the best quality of road even in the force majeure situation. “Georgia may become eligible for the 2nd compact thus the Georgian Government should consider our recommendations for successful implementation of the new projects” Evgenidze said, stressing that EPRC would provide the society with the summary of the project in 4 months just after the exhaustion of the program deadline.

Talking on the progress of the MCG in various sectors, Giorgi Abdushelishvili, Executive Director of the fund confirmed the successful implementation of the ongoing projects. “Millennium Challenge Program was signed between the Governments of Georgia and US aimed at promoting the economical development of our country. The Success of the agricultural projects, introduction of Georgian products for local market and export, the creation of 3000 new jobs, rehabilitation of Samtskhe-Javakheti road as well as Poti-Kobuleti and Kutaisi-Borjomi-Bakuriani water supply projects have been the proof of Georgia’s success story and its tourist potential,” Abdushelishvili said, claiming that all the ongoing projects will be finished on time without any qualitative shortcomings.

Welcoming the progress of Georgia, Jim McNicholas Director of Millennium Challenge Corporation in Georgia (MCC) welcomed the execution of the five projects of the compact through the improved management in recent years. “The compact of MCC to the Georgian Government is closing out but we’ve been very optimistic that MCC will continue supporting the Samtskhe-Javakheti road, the agricultural program, agro business sector which will be quite substantial in regional Georgia. The Millennium Challenge Board chaired by Secretary of State Hillary Clinton will meet in January and will take Georgia into consideration for eligibility for the second compact. They will consider how Georgia’s compares with the countries with the similar economies GDP in areas such as good Governance, reduction of corruption, investing in people, and the economic environment for doing business in Georgia. Thus, Georgia will be invited to receive another compact proposal but that won’t be immediately translated into new reality,” McNicholas told The Messenger adding that the procedural activities may take around eight months for the final signature and starting of its implementation in case Georgia receives the second agreement.