Subject: RE: AFD Grant Request - Health and Social Welfare
From: JOZAN Raphaël <[email-masked]>
To: "natia mshvidobadze ([email-masked])" <[email-masked]>
Cc: "[email-masked]" <[email-masked]>, Tamar Gabunia <[email-masked]>, "[email-masked]" <[email-masked]>, CALLAMAND Bérengère <[email-masked]>
Date: Tue, 01 Dec 2020 15:57:57 +0000

Dear Natia,

Thank you for the call tonight, and for the discussions during the day.

I have well noted that the economic and financial situation can allow the MoF to take any options in terms of borrowing today, for the coming year and beyond, taking the lack of visibility in terms
of public debt (today above the 60% ceiling). It is well noted that the MoF is not able to give any guarantees on PBL associated to social welfare, and does not want to commit in anyways to additional borrowing. Situation will be clarified, according to the
evolution of the overall worldwide crisis.

AFD has built a strong partnership with Mohlsa in the last 4 years, involving a strong team of experts. AFD is willing to continue the Technical Assistance, in particular in this period where some
addition reforms and policy adjustment will be needed, with more impacts and efficiency of the public spending. We strongly believe that the assistance will be useful for the Government, and that the trust and working relationship will be a useful asset for
the upcoming months and years. The TA will be immediately put in action.

AFD and Mohlsa have been enlarging the scope of action of the Technical Assistance to issues related to access to resources and services (in particular on Energy). It is believed to be critical in
this environment. TA will benefit not only Mohlsa, but also MoESD, with strong articulation with the assistance brought on the Energy Sector. It is in line with the Strategy of AFD and France, to broaden the scope to issues related to resources and services
(in line with the Climate agenda of AFD).

An Aide Memoire has been sent with a draft program of TA. We are at the preliminary stage of scoping the Technical Assistance, and we will have additional meetings with the GoG. The meeting of the
Working Group on the 16/12 on Social Welfare, and the discussion engaged on Human Capical Development, will be extremely useful for clarifying the gaps and needs.

Considering the critical situation in terms of Borrowing, AFD is ready to use the grant, with the risk that there would not be a dedicated lending program, which would be the case if there are no
borrowing needs of the GoG, and no associated PBL confirmed in the future. AFD will support the needed reforms, in the continuity of the operations broadly implemented so far in Georgia (social welfare, health, access to resources and services).

AFD urgently needs the letter of request for financing.

Best regards

Raphael.

De : JOZAN Raphaël

Envoyé : lundi 30 novembre 2020 16:30

À : natia mshvidobadze ([email-masked])

Cc : [email-masked]' ; 'Tamar Gabunia' ; [email-masked]' ; CALLAMAND Bérengère

Objet : RE: AFD Grant Request - Health and Social Welfare

Here is the letter drafted in attachment.

As a safety net, the “fair access to natural resources and services” is included in the scope, as it is already areas where AFD is operating in Georgia. The TA must indeed be connected to some operations,
hopefully a dedicated PBL on Health, Social Welfare and Human Capital Development if confirmed later with the GoG.

Best regards,

De : JOZAN Raphaël

Envoyé : lundi 30 novembre 2020 16:18

À : natia mshvidobadze ([email-masked]) <[email-masked]>

Cc : [email-masked]; Tamar Gabunia <[email-masked]>;
[email-masked]; CALLAMAND Bérengère <[email-masked]>

Objet : RE: AFD Grant Request - Health and Social Welfare

Dear Natia

I could receive a message from Mr. Nikolos Gagua, he underlined that the Government of Georgia is still in the discussion process regarding the request for grant, with concern regarding the policy
loan associated to the grant, questioning the timing for the technical assistance.

It is understood that the scope of a PBL and the opportunity of such PBL dedicated to Health / Social Welfare / Human Capital, will require additional discussion, in 2021.

AFD has an opportunity for approving a Grant in 2020. This Grant would be used starting from 2021. It is believed that the Grant (financing studies and TA) will be interesting to assist the government
in building the long term policies in 2021, based on gaps / needs analysis. AFD hope that it could lead to an operation in the future, but AFD is of course not requesting a confirmation of Loan, taking into account that it is not the right the timing for confirming
such a loan.

I have redrafted the letter, taking this into account the comment received. I am ready for discussing with MoF, Mohlsa and other relevant ministries.

Best regards,

Raphael.

De : CALLAMAND Bérengère <[email-masked]>

Envoyé : vendredi 20 novembre 2020 19:49

À : Tamar Gabunia <[email-masked]>;
[email-masked]

Cc : [email-masked]; Salome Chakvetadze <[email-masked]>; JOZAN Raphaël <[email-masked]>

Objet : AFD Grant Request - Health and Social Welfare

Dear Ms Gabunia, dear Ms Barkalaia,

With reference to our today’s discussions with you and with M. Nikoloz Gagua, we would like to share with you a draft of the request letter related to the allocation of an AFD grant. We highly appreciate your assistance
and we are awaiting for the signed request.

We would like to thank you in advance for your availability and your understanding.

We remain at your disposal should you need further information.

Sincerely,

Bérengère CALLAMAND

Chargée de mission Sud Caucase

Project officer for the South Caucasus

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