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Ambassador Carl Hartzell highlights regional development projects in Kakheti

Manavi Fortress/მანავის ციხე

On 21 February, 2022 Carl Hartzell, Ambassador of the European Union to Georgia, and Mzia Giorgobiani, Deputy Minister of Regional Development and Infrastructure of Georgia visited Kakheti to see several projects within the joint regional development programme (PIRDP). Several reconstruction works and new initiatives were visited, which are being implemented within the programme to improve economic, social, cultural and environmental wellbeing of the region.

Ambassador Hartzell and Deputy Minister Giorgobani visited project sites in the municipality of Sagarejo, Gurjaani and Sighnaghi, also met with representatives of small businesses, farmers and exporters. Speaking at Gurjaani TechnoPark, the Ambassador highlighted the importance of integrated regional development approach focusing on sustainable development in Kakheti and the three other focal regions within the programme.

During the visit, Ambassador Hartzell and Deputy Minister Giorgobiani visited Manavi Fortress in Sagarejo municipality. Thanks to its historical importance, Manavi Fortress has touristic potential. The newly renovated road has made the fortress and surrounding areas more easily accessible for local and international tourists. This creates new opportunities for around 70 small businesses operating in the area, selling traditional Georgian food and wine.

Another stop took place at the cultural and recreational park in Tsnori, Sighnaghi municipality. Once construction works are completed, local residents will have a new and modern recreational area with over a hectare of space for children and cultural activities, an amphitheatre, a fountain and decorative lights to make use of. The project will also create additional opportunities for the development of local business.

As part of the joint regional development programme between the Government and the EU, a road connecting the two villages Chumlaki to Bakurtsikhe is under construction. This new road will shorten travel time, improve access to the Tbilisi market for the surrounding areas, optimising costs for local businesses and residents. After visiting the road construction works, Ambassador Hartzell met with fruit producers from Chumlaki village to hear about their perspective and to discuss the export potential of Georgian products as well as opportunities offered by the DCFTA.

At the end of the day, Ambassador Hartzell,  Deputy Minister Giorgobani and Kakheti Governor Irakli Shioshvili presented new opportunities for businesses in Kakheti within the EU’s and the Government’s joint regional development programme (PIRDP). Three separate grant programmes are now available through the Rural Development Agency, GITA, and Enterprise Georgia.

About Pilot Integrated Regional Development Programme (PIRDP)

The Pilot Integrated Regional Development Programme (PIRDP) for Georgia 2020-2022 is a government programme based on EU regional development policy. It aims to create a favourable environment for promoting balanced and sustainable socio-economic development through integrated territorial development initiatives in four pilot regions of Kakheti, Imereti, Guria and Racha-Lechkhumi-Kvemo Svaneti.  PIRDP has a budget of 220 million GEL, of which 186 million GEL will be provided by the EU.

The programme is implemented by the Ministry of Regional Development and Infrastructure of Georgia (MRDI). The first set of grants with a total financial envelope 5 million GEL were awarded to 11 projects in Vani, Sachkhere, Tkibuli, Samtredia, Baghdati, Tsageri, Sagarejo, Telavi, Akhmeta, Ozurgeti and Chokhatauri municipalities in July 2020. In 2021, 64 projects worth GEL 61 million have already been funded, and in 2022, projects worth more than GEL 100 million are planned to be funded. In addition, grants worth GEL 40 million are aimed to support micro, small and medium enterprises, as well as innovations.

PIRDP is based on bottom-up and decentralised approach. The relevant municipal council must approve the project ideas developed by the municipality before it is submitted to the regional administration. The funding allows winning municipalities to realise important projects covering support to SMEs, improvement of key infrastructure and municipal services, improvement of human capital, education and research institutions, increase the quality and effectiveness of institutions, etc. These initiatives, in line with ongoing sectoral EU-funded programmes and projects, will boost investment and employment in targeted regions.

Regional development in Georgia is an important policy area of the EU-Georgia cooperation under the Association Agreement. The Pilot Integrated Regional Development Programme 2020-2022, co-financed through the budget support scheme by the EU, was approved by the Government in December 2019.

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