Netherlands

Georgia is a member of the Netherlands’ constituency group at both the World Bank and the IMF and a partner country for Development Cooperation for the Netherlands Government. The Netherlands Government provides assistance to Georgia via central budget lines within the Ministry of Foreign Affairs and delegated funds at Embassy level.

The overall objective of the (delegated) development cooperation programme in Georgia is poverty reduction. In 2006, delegated funds amounted to EUR 6 mln. The focus of the Netherlands interventions, given its specific constituency relationship, are on good economic governance; i.e. strengthening the public sector, stimulate the transition towards a democratic form of government with a particular focus on the rule of law, human rights and peace building efforts and strengthen the creation of a sound macro-economic climate and promotion of a further transition towards a functioning market economy. Under the budgetline for small projects aimed to strengthen civil society initiatives, the Embassy has allocated EUR 70.000. 

Support to Georgia via central budget lines in 2005 was, among others, given to the EBRD (Trade Facilitation programme and the Early Transition Countries fund), ODIHR (regional activities in the area of election technical assistance, increased participation of women in democratic processes, etc), HALO Trustfund for demining activities, Center for International Legal Cooperation (rule of law), the Avalon Foundation to support the development of organic agriculture and to Milieukontakt, a Dutch NGO working in the area of elimination of obsolete pesticides in the region / solid waste management. NL support in the area of environment is increasing with funds and/or support via the NL Ministry of Environment and Dutch environmental institutions. 

Since June 2004, Georgia is eligible for funds aimed to stimulate sustainable economic development in emerging markets (PSOM and ORET) financed by the Dutch Government. ORET financing has been given to the Poti Breakwater Project and the transport sector in cooperation with EBRD financing. On-going consultations are taking place for further investments of PSOM/ORET/FMO Finance into the financial sector –water supply & sanitation and other potential areas.

In 2006, the Netherlands will co-finance the Poverty Reduction Support Operation (PRSO-II) of the World Bank with an amount of  € 5.000.000. This programme is geared towards the improvement of 1) the financial accountability and effectiveness of the public sector; 2) electricity and gas supplies; 3) the enabling environment to further develop the private sector and 4) social services with a particular emphasis on health and education.

As of January 1 2006, Georgia is eligible for the MATRA support programme – a NON ODA instrument to stimulate societal transformation via non-state actors.