UN to allocate $1 mln to support COVID-19 response in Georgia
By Natalia Kochiashvili
Wednesday, May 20
The United Nations has allocated $ 1 million to help Georgia respond to the COVID-19 pandemic. According to the UN Office in Georgia, funding will help vulnerable communities deal with the pandemic.
Georgia is on the list of the top 46 countries that will benefit from funding and response from the United Nations COVID-19 Trust Fund to protect the most vulnerable groups from the socio-economic shock caused by the pandemic. The inter-agency finance mechanism was launched by the UN Secretary-General, Antonio Guterres on 31 March 2020, to help countries mitigate the emergency and bolster the post-crisis social and economic recovery.
Mid May the Trust Fund allocated $1 million to a group of UN agencies in Georgia to respond to the health crisis and deal with the negative socio-economic consequences of a pandemic of vulnerable groups.
The head of the Government Administration Natia Mezvrishvili thanked partners for assistance: “We appreciate all the support from international partners to ensure the smoother transition from the global pandemic to a post-crisis reality,” she said.
Sabine Machl, UN Resident Coordinator in Georgia thanked Governments of the Netherlands, Norway, Switzerland, and Denmark who have provided a first contribution to enable the work of the United Nations COVID-19 Response and Recovery Fund that helps support Georgia’s response to the pandemic and its impacts on human lives and livelihoods.
According to her, the UN is responding both to the immediate needs of the health system, in particular the front-line workers, as well as longer term needs of the most vulnerable and marginalised groups in society and in this programme with a specific focus on children and the older people.
The focus of this project is the provision of critical hygiene and medical supplies and equipment for healthcare and social and public-sector workers, and their beneficiaries. The support to vulnerable rural households and older people to withstand the shock is also an important component. The project also has a goal to improve access to water, sanitation and hygiene in conflict-affected areas, and provide vital support to municipalities and village representatives to deliver critical social services.
A key area of the UN team’s support will be also to address the specific vulnerabilities of older people and support children as well as pregnant and nursing women, providing them with essential health services, education and child protection services including prevention of violence against children as well as risk communication and community engagement.
This assistance is part of UN’s broader COVID-19 response in Georgia to help the authorities respond effectively to this unprecedented crisis. Since the first case of Covid-19 was detected in Georgia on 26 February, the UN country team has supported the Government to prepare and address immediate health needs as well as potential social and economic impacts with a focus on those furthest behind: women, children, older people, refugees, migrants and other vulnerable and marginalized groups.
UNDP Head in Georgia Louisa Vinton says Georgia’s response to the pandemic has undoubtedly saved lives and it will be studied in the future as a best practice.
“But here, as everywhere in the world, COVID-19 has also exposed social vulnerabilities and economic imbalances. The UNDP therefore welcomes the resolve of Georgia’s leaders to go beyond ‘business as usual’ to design a recovery plan that builds on the positives and neutralizes the negatives to map out a path to a green, fair and inclusive future”, said Vinton.
UNDP has adjusted its annual $20 million (about Euro18,482,528) programme for Georgia to assist in the pandemic response.
Support has been provided in informing vulnerable groups and remote communities about COVID-19 risks and prevention, supplying Russian-occupied Abkhazia and IDP (internally displaced persons) communities with protective gear, medical supplies, training and grants to protect rural livelihoods.
Besides that, on 1st of May, a loan agreement was signed between Georgia and the International Bank for Reconstruction and Development (IBRD) to implement a rapid response project against COVID 19. Within the framework of the loan agreement, the IBRD will allocate Euro73.1 million in loans.
Loan duration is 26 years (including preferential period 13 years); Interest rate type is Euribor-based fixed margin (as of April 30, 2020, Euribor is -0.170%, fixed interest rate is 1.25%, interest rate is automatically fixed after borrowing); Single administration fee as well as the loan liability tax will be both 0.25%, which were accrued on the outstanding loan amount.
According to the explanatory note, the aim of the project is to prevent, identify and respond to the threats posed by the COVID 19 pandemic in Georgia.
The project consists of 3 parts and includes support for Georgia's healthcare sector for rapid response to COVID 19, strengthening the epidemiological capacity of public health centers, increasing general testing and expanding access to critical medical devices and equipment; Also, directly or indirectly provides social and financial support to COVID 19 affected families and individuals through a targeted social assistance program and temporary financial assistance.
The project is implemented by the Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs. The project completion date is April 30, 2022.
Accordingly Euro29 million will be spent on healthcare, on measures against the spread of the coronavirus, as well as the costs associated with treating infected individuals and, if necessary, equipment needed for healthcare infrastructure. Meanwhile, Euro44 million will be allocated for social assistance.
Deputy Financial Minister Giorgi Kakauridze said that this amount of money is not enough to meet all the challenges caused by the coronavirus, but he announced that another loan agreement will be signed this week with the Asian Development Bank that will provide an additional Euro100 million.
In addition, a loan agreement was signed between Georgia and the IBRD on March 30, Euro 45 million (Euro 150 million) financial resource will be allocated to the country’s state budget. It will be a 25-year loan, with a 14-year ‘grace period’ and incorporates a 1.25% annual percentage rate (APR).
