Fund Dates

• Start Date: 24 December 2018
• End Date: 31 January 2023

The economic and social development of Georgia is hampered by stubbornly low performance in innovation and sophistication. This is particularly problematic in light of Georgia’s ambition to expand its exports to the EU which is a highly sophisticated market requiring complex, consistent and high-quality products. To address this issue, the UN as developed the Joint Programme, ‘EU Innovative Action for Private Sector Competitiveness in Georgia to provide integrated support from different UN Agencies.

The objective of the JP is to enhance entrepreneurship and business sophistication by strengthening the capacities of government and local entities to develop and operate clusters and supporting companies directly with strategic investments and better connect to diaspora groups, while also demonstrating the effectiveness of these strategies to businesses.

The Joint Programme will be implemented by UNDP, UN FAO, UNIDO and IOM and include four specific outputs/results:

1.    Strengthened capacities of policy-makers and other stakeholders to identify and develop clusters (UNIDO)
2.    Development and functioning of the clustering approach in the packaging (UNDP) and seeds/seedlings sectors (FAO)
3.    Development and support of strategic investments in companies deemed necessary to improve the cluster (UNDP)
4.    Mainstreaming Migration in SME Development (IOM)

Assistance Strategy

The JP will provide policy support to entities to develop specific clusters for enhancing geographically constrained value chains for improving coordination, marketing, innovation, public private dialogue and more.

The JP will provide strategic investments in companies that are deemed necessary to facilitate improvements in the cluster.

This will be enhanced by a sustained effort to consolidate evidence-based, clustering-related policy and implementation capacities and connect local businesses to diaspora communities, for knowledge and technology transfer and financing.

The UNJP is aligned with national priorities in the area of SME development, the stated goals and priority areas of the UNPSD (2016-2020), as well as the targets of the EU programme to support Greater Business Sophistication. The project also aligns with the SME Development Strategy of Georgia.

The JP will achieve the following major results:

1. Identification and mapping of 10 clusters;
2. Increase output of packaging and seeds and seedlings clusters by 20% in 2 target regions;
3. Creation of 30 jobs, increase sales at least by 15% in 10 companies;
4. Diaspora mapping conducted, interests, and priorities for investment identified.

The economic and financial analysis of clusters, analysis of market and regulatory mechanisms, as well as relevant institutions’ capacity development will be applied to ensure sustainability of the clusters’ eco-systems components. Environmentally friendly approaches will be promoted by Extended Producers Responsibility mechanisms in the packaging sector, for promotion of good waste management practices.

Governance

The Steering Committee of the JP, co-chaired by the UN Resident Coordinator, the designated authorities from the EU delegation and the Ministry of Economy and Sustainable Development (MoESD), will oversee and guide the overall direction and policy of the programme. It will consist of the representatives of senior personnel of all signatories to the JP Document. The JPCoordination Team will be established with participation of the designated Programme Officers of the PUNOs tasked to coordinate the planning and implementation.. The Project Management Unit will be set up for successful implementation of the outputs and activities towards achievement of the outcomes.

The Participating UN Organizations will:

• Assume full programmatic and financial responsibility and accountability for the funds disbursed by the AA.
• Establish a separate ledger account for the receipt and administration of the funds disbursed to it by the AA.

Administrative Agent. Funding for the Joint Programme/Multi Donor Trust Fund utilizes a pass-through funding mechanism. Under this modality, Participating UN Organizations agree to channel funds for the JPthrough the AA. The (MPTF Office of the UNDP serves as the AA of the JP. The AA is responsible for concluding Memorandum of Understanding (MoU) with PUNOs and Standard Administrative Arrangements (SAAs) with donor(s), as well as for the receipt, administration, and management of contributions from donors; disbursement of funds to the PUNOs; and consolidation of financial reports produced by each of the PUNO and Participating Non-UN Organizations and provision of these reports to the Steering Committee for onward submission to the donor(s).

Decision-Making

The Steering Committee will provide strategic guidance for coherent and coordinated Project implementation, approve JP annual work plans and fund allocation, review progress against set targets, and review and approve the periodic progress reports. The JP Steering committee will meet at least twice a year and ensure a senior level oversight.   The Steering Committee will approve Project annual work plans and fund allocation. The Steering Committee decisions will be reached on consensus basis.