Millennium Challenge Program narrowly escaped a failure
23 December, 2010
Millennium Challenge Program narrowly escaped a failure

The US supported Millennium Challenge Georgia Program narrowly escaped a failure due to unskillful management and faced USD 31 million of losses ultimately.
The USD 395.3 million worth five-year compact of Millennium Challenge Georgia Fund (MCG) supported by the Millennium Challenge Corporation (MCC) of the US started in 2006 is designed to reduce poverty and stimulate economic growth in region via five projects as following: energy infrastructure rehabilitation project, regional infrastructure development project, Samtskhe-Javakhseti road rehabilitation project, Agribusiness Development Activity

(ADA), and Georgia regional development fund project.
The compact is scheduled to be completed by April of 2011 and MCC CEO [visiting Georgia in October to assess whether or not the money of US tax-payers is spent effectively] as well as Georgian government have already given a positive assessment to the project dubbing it as one of the most successful  international projects ever implemented in Georgia.
Non-governmental Economic Policy Research Center (EPRC) having been monitoring the MCG compact since it took a start in 2006 fears however that fulfillment of the project in the negotiated terms is under threat [due to incompetent management of the now fired CEO of MCG.] EPRC presented its number fifth monitoring report on December 14, 2010 and stressed that due to postponed timetables the MCG project faced a USD 31 million loss ultimately. The MCG project had some transparency problems as well.
As Nino Evgenidze, a spokesperson of EPRC, told Georgian Journal, during the monitoring 5th stage EPRC faced a problem when requested protocols at MCG. In particular, EPRC managed to obtain the protocol ¹ 48 of the MCG Fund Steering Committee August 5th meeting and resolution only in October 2010 after a number of requests. Besides, the MCG Fund didn’t provide us with protocol ¹ 47 of the meeting held on July 6, 2010.  According to the explanation of MCG Fund PR Manager this protocol and resolution are not signed by the chairperson of the steering committee yet. Evgenidze doubts that during this period the MCG compact nearly failed as a result of mistakes made by previous management
“The incumbent management team somewhat saved the program but the timetables envisaged initially were broken and postponed that resulted in USD 31 million of extra financing. You can easily imagine the impact of the loss taking into account that USD 20 million was earmarked as a budget of the MCG’s agriculture project, that is one of the most successful  along with the energy project,” she said. 
The most troublesome project that was the key target of criticism and that led to financial losses in fact is the Samtskhe-Javakheti Road Rehabilitation project.  According to the EPRC findings every financial resource emerged in the project was mobilized   basically to eliminate problems that arose in the Samtskhe-Javakheti project. After the August war in 2008 amount of USD100 million allotted additionally was completely expended for Samtskhe-Javakheti road project. Besides, extra USD 10 million from other projects is entitled to it as well when only 60% of additional finances was supposed to be spent on this project.
During the monitoring period its cost raised from USD 203 515 million up to USD 212 615 million i.e. approximately by 9 million. Though, the initial length of the road to be rehabilitated decreased by about 22 km from 245 km to 222,72 km.
EPRC believes that the Samtskhe-Javakheti road project faced problems mainly due to inappropriate work process of the operator company. Ashtrom International identified even in the beginning of the reporting period leading to force majeure situation.
A contract with Company Ashtrom International was finally invalidated only in August 2010 and it was fined by USD 8.2 million in total while MCG disbursed to it USD 37 938 632 .
Giorgi Abdushelishvili, the CEO of MCG, acknowledged problems in Samtskhe-Javakheti project, although assured that increase of funding to the project was caused by improved quality of rehabilitation works that sets the new road in compliance with the best international standards as well as by rehabilitation of unforeseen passages [of the targeted road] affected by land-slides.
The 5-year MCG Program is in its final phase. The issue of concluding a new compact is under review. MCC has already announced two lists of potential country-beneficiaries in 2011: countries with low revenues and countries with average low revenues. Under the announced criteria Georgia has a good opportunity to become one of the financed by Millennium Challenge Program countries again. However, there is no precedent of authorizing the second compact for a country so far.

Print
Other Stories
The most wanted fruits from Georgia
The fruit exportation has decreased in Georgia. According to Geostat (National Statistics Office of Georgia), this year, up until May Georgia exported 25 939 300 USD worth of fruit – 6 771 300 USD less than in 2018.
Investment Plan for Europe – Additional EUR 800 million for SMEs as EIF and ProCredit double support for innovative companies
The European Investment Fund (EIF) and ProCredit Group are providing an additional EUR 800 million to innovative small and medium-sized companies (SMEs),
Everything of comfortable life in one space – Second part of construction of one of the largest apartment complexes finished in Tbilisi
Apartment in ecologically clean environment, thousands of square meters of green yard, swimming pools, places for various sports activities, treks for walking and running, commercial spaces – all these available in one space is not a fantasy.
Batumi awarded Europe's Leading Emerging Tourism Destination 2019
World Travel Awards Europe Gala Ceremony 2019 took place on the 8th of June in Madeira, Portugal.
Coca Cola to open new factory in Georgia, will hire female drivers
Coca Cola is opening new factory in Georgia in December.
World's best party supply company now on the Georgian market
The largest party supply store in Georgia - MyDay is launching as the official distributor of AMSCAN from 2019.
Live as a marketing tool and an unprecedented live stream launched by Livetag
Sharing information has become smoother and more versatile in today’s technological world. Recently, live streaming, an online streaming media has become especially popular.
Theme and program of Caspian Energy Forum Tbilisi – 2019 changed
“The 8th International Caspian Energy Forum Tbilisi – 2019, scheduled for June 21, will focus on the development of the Azerbaijan-Georgia relations in the field of economy and energy”,
Misunderstanding over Poti deep sea ports
There was misunderstanding around deep sea ports in Georgia – in Poti.
High demand for dollars or the investment decline – Why Georgian Lari depreciates
$1 equals GEL 2,7470 in the official rate set by the National Bank of Georgia (NBG).
PSP Group confirms negotiations regarding purchasing of GEO Hospitals
PSP Group confirms negotiations regarding purchasing of GEO Hospitals.
New life to be given to Dashbashi Canyon
Georgia’s Agency of Protected Areas is planning to give new life to Dashbashi Canyon in Tsalka (southeastern Georgia).
Who is constructing “Khadori 3” Hydropower Plant in Pankisi Gorge?
Clashes broke out in Pankisi Gorge, Georgia’s northeastern region between special forces and residents
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
20.07.2019
21.07.2019
USD
1
USD
2.8845
2.8845
EUR
1
EUR
3.2410
3.2410
GBP
1
GBP
3.6177
3.6177
RUB
100
RUB
4.5787
4.5787
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.8845
EUR
1
EUR
3.2410
GBP
1
GBP
3.6177
RUB
100
RUB
4.5787
July 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31