III. Issues to be addressed (

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1 Fostering Multi-stakeholder Partnerships to Achieve MDGs in the Western CIS and Caucasus in the Framework of the Global Compact PROGRESS REPORT July-August, Georgia To: Cc: From: Janka Geckova, Karolina Mzyk, GC brokers Robert Watkins, Peter Van Ruyssveldt, Sophie Kemkhadze Tavadze, Chkonia Date: September 7, 2007 Main outcomes/achievements: I. Global Compact promoted and GC network expanded and strengthened Teliani Valley a wine company signed a letter to join Global Compact. The company has been listed under GC members due to expressed interest; however, the letter was signed after top executive was hired in the company. Global Compact Georgia website template has been created. The website is user friendly and enables searching all relevant information that includes current activities, archive, automatic newsletters for the subscribers, interactive mode of communication and links and download options. Some texts have already been entered. It is expected that the website will be ready by the end of September (after members will also review it and make suggestions/comments) CSR study perception of Tbilisi residents Analysis of focus group discussions and quantitative data of surveys has been submitted by subcontracted partner ACT Research group. The analysis is in preparation for publishing (expected by the end of September). Representatives of the Georgian Business Consulting and Financial have attended a CSR Media Forum in Keyiv Ukraine on July 5-6, The participants will share their experiences with other journalists in Georgia in September. II. Partnership projects - Title of the project: Sourcing Local Products Import Substitution - Main partners: Marriott, Elkana - Main objective (2-3 sentences: to get large companies engaged in sourcing local products as an import substitute. Entry-point for such model is 2 Marriott hotels in Georgia; 1

2 - Status: At this moment, Elkana is looking for appropriate packing solutions for organic honey; By the end of September/Mid October, in case such packing is not found, Marriott will sign MoU with Elkana/Begeli to buy local products for Courtyard Marriott. This will be a model for sourcing local products for local economic development; further steps will be sought to expand the model to other companies (hotels mainly); - Title of the project: Buffallo Milk supply chain - Main partners: CHF, Opto International, Local farmers, large company (to be identified) - Main objective (2-3 sentences): to build a supply chain of buffalo milk and introduce a new product on market; generate income for local farmers; - Status: in the phase of development; some data have been obtained regarding buffalo population in Kakheti region, cost accounting for collection centers and production costs; next steps will involve confirmation from Opto International about their involvement and approaching large companies for identifying interests. - Title of the project: Marriot Supply Chain: Manpower - Main partners: Marriott hotels in Georgia (2 hotels); company jobs.ge (although the project implies setting up a new company by the same group; Multi-Sectoral College for Tourism the major VET institution for hospitality industries; Department of Tourism, Ministry of Economic Development. - Main objective (2-3 sentences): There is a deficit in qualified services personnel for booming international hotel chain development as well as Human Resources Management companies that would provide such personnel to the hotels respectively, the hotels tend to think of importing foreign low skill and low cost workforce and working with foreign Human Resources Management companies, thus the job opportunities may be largely denied to the local population. The Project implies an expandable and precedent-setting partnership between Marriott, local HR company, Multi-Sectoral College for Tourism welcomed and supported by the Department of Tourism. The project results in Marriott Georgia to work with the local supply chain of services and hire local workers, that is, to hire all personal via the local HR company and Multi-Sectoral College for Tourism. - Status: Partnership between Marriot and jobs.ge group is agreed and the business model developed by the companies (technical details are being fine-tuned by the company experts). The same is true for the partnership between the Multi-Sectoral College for Tourism and Marriott. Department of Tourism has good understanding of the significance and precedent-setting and replicable character of the project and is eager to provide any relevant support including meeting vocational training needs (Multi-Sectoral College for Tourism is a state-owned institution). Technicalities regarding the involvement of the Multi-Sectoral College for Tourism will be clarified after Sep. 25. It is expected that once the current technical work is over, the involved partners will sign the agreement by mid-october and HR company start provision of workforce to Marriott in November. 2

3 - Title of the project: Micro-Insurance - Main partners: to be identified - Main objective (2-3 sentences): The objective of the project is to enable Georgian citizens, especially rural population, have affordable health insurance (for hospital an/ord primary health care); - Status: Broker has identified different stakeholders working on insurance issues, such as Oxfam, Welfare Foundation, Curatio Foundation (all of them working on community based insurance, but preliminary interest in micro-insurance has been expressed); Broker has set a meeting with GPI Holding and is waiting for confirmation from other companies; Research demonstrating demand on microinsurance in Georgia is in place for justifying the project; the project is in the phase of development; - Title of the project: Micro-credit scheme for Kakheti - Main partners: UNDP Kakheti Economic Development Project; People s Bank (PB); CHF International; Intermediate NGO (two potential candidates identified); Government of Kakheti Region - Main objective (2-3 sentences): To set up a pilot micro-credit scheme in Kakheti with the potential of replication next year and beyond. - Status: PB is interested in implementing a pilot project in Kakheti in order to deepen experience in micro-credit management and depending on the outcomes of the pilot replicate the project next year in Kakheti and beyond. CHF International actual partner of PB is likely to provide partial guarantee for the credit. An intermediate NGO shall ensurecommunity mobilization, training of applicants, and sorting of business plans, shall be identified through tender. UNDP Kakheti Economic Development Project previously confirmed its interest in funding the costs of an intermediate NGO, however, the interest should be reconfirmed as the Lalketi project framework is in the process of revision. Kakheti Government will provide support in community mobilization. Before the end of September, UNDP CO shall confirm whether the costs of an intermediate NGO will e funded by Kakheti project. Practical implementation of the project will start as soon as/if funding these costs is confirmed. - Title of the project: Affordable internet in Adjara - Main partners: Ozone Village, CIMSE, ITDC, Silk Road Group, Government of Adjara Autonomy, more partners to be explored - Main objective (2-3 sentences): The objective of the project is to introduce affordable and accessible broadband internet connection in the Autonomous Republic of Adjara (East Coastline of the Black Sea); - Status: GC team has met IT experts from ITDC and a senior level IT expert of Legman Brothers and explored different solutions for wireless internet connection in Adjara; GC conducted a research on internet providers in the region offering different packages of service at a higher price compared to Tbilisi-that confirms the argument for the need of affordable internet connection; more research needs to be done what is potential demand and who are potential consumers (Government agencies, corporate clients, individual consumers from home or internet café, libraries, resource centers, etc.); GC team has been in touch with Ozone Village and is expecting more information about technical specifications and pricing that will help in determining feasibility of the project the next meeting with Ozone Vollage representatives is 3

4 scheduled for Sep 13-14; Silk Road Group is interested in investing in this project given that in addition to having a profitable business as an internet provider in the region and having good impact on consumers, as well as building a network for its hotels in Adjara coastline. The company is also considering giving free access for several spots (may it be libraries, resource center, etc.). Other potential investors will be approached as well. - Title of the project: High Efficiency Stoves - Main partners: Qutaisi Truck Assembly Plant (the producer); Energy Efficiency Center (NGO); UNDP Renewable Energy Project (hosted by the Ministry of Environment); USAID/Winrock Renewable Energy Project (in the process of exploration); Ministry of Education; Ministry of Energy; Ministry of Environment. - Main objective (2-3 sentences): Enable multiple environmental, energy securityrelated and socio-economic benefits through introducing high efficiency stove and fuel production in Georgia. - Status: The producer proved that it can produce licensed quality stoves of different types and is willing to invest in the production of both stoves and fuel (brickets/pellets) after the Feasibility Study is completed. GC Project and UNDP Renewable Energy Project commissioned a Feasibility Study for production and relevant developmental benefits (the study is in the final phase of completion). USAID/Winrock Renewable Energy Project is eager to have the stoves produced locally for highly publicized demo pilot in 34 schools. Tbilisi Municipality requested installation of the high efficiency boilers in two kindergartens as a demo pilot. Ministries of Energy and Environment are interested in promoting and disseminating technology. It is planned to have a series of presentations of the findings of the study to multiple stakeholders and beneficiaries in October-November Title of the project: Production of Organic Fertilizers - Main partners: Elkana (NGO); David Chacahnidze ltd.; Partner Banks (People s Bank; Bank Republic; Pro-Credit Bank); Ministry of Agriculture - Main objective (2-3 sentences): To forge partnership between the main partners in order to: a) help set up a model organic fertilizer production in Georgia with the potential of expansion and replication; b) link producer of organic fertilizers with organic farmers; c) facilitate scale-up and replication through promoting the project as a model. - Status: the producer was linked to 23 organic farmers (certified by Elkana) who confirmed their strong interest in purchasing organic fertilizers and committed to providing the producer with the raw material (organic/clean biomass); At least one of the three partner banks (People s Bank) confirmed its interest to issue a credit line for the project to the producer. Ministry of Agriculture is strongly interested in obtaining and disseminating information on the model production enterprise. Desk research of the organic fertilizers market (to determine the potential of up-scaling) is in progress. The project will require a relatively short-term expert feasibility study ToR will be developed as soon as desk research is completed The study will be followed by the actual set up of production.. 4

5 - Title of the project: Vocational Education in Qvemo Qartli Region. - Main partners: Madneuli Jsc; Quartzite Ltd.; Ministry of Education; Kazreti Vocational Training College. (Note; unfortunately there are no local NGOs - Main objective (2-3 sentences): To enable employment opportunities on continuous education options for the communities adjustment to mining operations of Madneuli JSC and Kazreti ltd. In the lond run (25-50 years) through making Kazreti Vocational Training College operational. - Status: As the result of a multi-stakeholder partnership brokered: Madneuli and Quartzite companies that employ aging professionals and need permanent supply of the personnel up to 12 different professionsfor the next years - agreed to fund rehabilitation of training premises in Kazreti Vocational Training College and providing student loans for the students of the VET institution. Ministry of Education expressed its support to the project and decided to grant/extend the permit to Kazreti Vocational Training College to provide training. Kazreti Vocational Training College is extremely interested in providing trained workforce of the level of qualification and professional profile requested by the mining companies and thus to have the representatives of the companies involved in decision-making regarding the curricula. During the recent site visit,it was agreed that a) in the second half of September, a meting is held between the representatives of the two mining companies and the ministry of education to have a final agreement on the curricula and the aspects of participation of the companies in the board of the college; b) as soon as the agreement is reached (probably during the meeting) the mining companies will make an appraisal of the renovation costs to start renovation works; c) in parallel, the Ministry, College and companies will work together in developing relevant curricula for training (GC Brokers may assist with providing international analogues). III. Issues to be addressed (if any) - GC team will need logistical support from CO, namely for: o Recruiting winner company for designing and printing CSR study o Recruiting winner company for hosting Business Forum o Developing Contract for international expert for conducting CoP training in Georgia 5

6 Main planned activities for September - December, 2007: Timeline Activity Responsible person September October November December OUTPUT 1 Communication Strategy Article about CSR/GC in IFC newsletter Article about CSR/GC in AMCHAM newsletter Writing CSR Study publication agreeing on final text with CO as well as with other partners involved (to be finished before Sep.) Managing publishing CSR Study (contracts for translating, editing, printing) CSR study findings for GC Quart. Ledger (tentative) Launch of Global Compact (two options) 1. Launch organized by GC team 2. Biz Forum on CSR organized with FINANCIAL Bimonthly meeting with media Meeting with journalists (sharing Keyiv media forum outcomes and upcomming events; disseminate materials for publishing) GC Network Governance Structure and WG meetings WG on Environment issues to meet (hosted by BP) Arrange meetings with companies and RR for identifying champions Recruit additional 3 members in GC Workshops on GC areas/principles Human rights, safety golden rules, code of conduc offered by BP (interest to be explored among members) TENTATIVE Regular GC Newsletter issued Sent through mailing list //CSRDG/ACT Group / / / / 6

7 Printed Summary newsletter GC 2007 GC Website designed, launched and maintained Website launched Website maintained Marriott Supply chain/import Substitute IT Adjara Micro Insurance (tentative) High Efficiency Stoves Micro Finance Organic Fertilizers Buffalo Mozzarella / OUTPUT 2 (PPP) / OUTPUT 3 (LOCAL CAP) 4 Thematic workshops per year (Also planned under OUTPUT 1) Biz forum on CSR for businesses Speaker from IBLF output 1 CoP Workshop for GC focal Points (contracts, logistics) presentation to relevant institutions Business Schools Government CoP Guide produced (Eng/Geo) Select a CoP guidebook from a pool of publications of GC that best fits local context Manage contract for translating the guidebook Manage contract for printing the guidebook / Final Wrap Up and report Arranging documents for archive and filing Writing Final report / / 7