Background: Upon the dissolution of the USSR, Georgia was
plunged into political chaos and civil war. One of the first areas of conflict was
Tskhinvali Region (South Ossetia), whose authorities issued a unilateral Declaration of
Sovereignty in August 1990.The conflict that continued from 1989 to 1992 has resulted in
the death of around one thousand people and refugees numbering tens of thousands. Formerly
a province where industrial production represented 35% of GDP, the Tskhinvali Region today
has virtually no industrial production and due to the isolation from other regions the
province suffers even worse. The disruption of existing legal structures has created
perfect grounds for criminal activities, such as drug smuggling, and the Tskhinvali Region
today serves as a major narcotic smuggling route connecting central Asia with the Northern
Caucasus and Russia. Objective: The objective of this programme is to assist the
Government of Georgia in its efforts to speed up the peaceful solution of the conflict by
supporting the normalisation of relations between the Tskhinvali Region Authorities and
the Georgian Government.
Activities
Establish a co-ordination mechanism for the rehabilitation of
activities to be conducted mainly on the territory of Tskhinvali Region as well as
selected areas on the bordering territories.
Establish project units on both sides of the conflict zones to provide supervision on
the implementation of project activities.
Assist families willing to move back to target villages.
Undertake top priority basic infrastructure repair in selected villages.
Reconnect telephone lines to Tskhinvali region.
Prepare a plan for the rehabilitation of roads and bridges in the region
Rehabilitate a TV and Radio station.
Promote investment services.
Establish a Start up Revolving Fund.
Support local farmer and families of returnees.
Expected outcome:
50 families returned to the two key villages in Tskhinvali Region in ethnic proportions
reflecting their communities' composition.
Housing and basic infrastructure repaired for 150 families
Production of television documentaries and 3 local radio shows reflecting a renewed
spirit of co-operation.
Major sections of the telephone links between Tskhinvali Region and the rest of Georgia
restored.
Inventory of road and bridge reconstruction.
The rehabilitation of at least two hospitals and one school on both sides of the
conflict zone.
Potato seed provided to the farmers in the Tskhinvali region to boost almost
non-existing agriculture.
Main obstacles to investment in employment generating enterprises.
Provide investment promotion services to key enterprises.