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BTC/SCP and WREP Community Development Initiative
Report for January – March, 2014 ,
GEORGIA
BP’s business activities in Georgia
BP has been in Georgia since 1996. Our main business is all about the safe transportation and
delivery of energy through our pipeline operations, where we are the lead investor and operator
in three major oil and gas projects:
Baku-Tbilisi-Ceyhan (BTC) pipeline
The Baku-Tbilisi-Ceyhan (BTC) pipeline began operating in June 2006. With a total
construction cost of circa $4 billion, the BTC pipeline is the first direct transportation link
between the Caspian and the Mediterranean seas. At full capacity, it can deliver one million
barrels of oil per day to market, generating important revenues for the Georgian government for
decades to come.
South Caucasus gas pipeline (SCP)
The South Caucasus gas pipeline (SCP) started delivering gas from the Shah Deniz field in the
Caspian to markets in Azerbaijan and Georgia from December 2006, and in Turkey from July
2007, representing an important new source of gas supply for the region.
Western Route Export Pipeline (WREP)
The Western Route Export Pipeline (WREP), also known as the Baku-Supsa pipeline, was our
first investment in Georgia. This 830 km pipeline transports oil from the Chirag field in the
Caspian Sea, via the Sangachal terminal in Azerbaijan, to the Supsa terminal in western
Georgia, with just under half of the pipeline located in Georgia. WREP, which became fully
operational in 1999, is capable of transporting up to 100,000 barrels of oil a day.
BP Georgia Community Development Initiative (CDI) overview
Community development along BTC/SCP pipelines
CDI in Georgia was initiated in early 2003 in 77 communities along the SCP and BTC
Pipeline route. Initially the program started with the title of Community Investment Program 1
(CIP 1). Later, in 2010 the title of the program changed into the Community Development
Initiative (CDI).
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CDI 1
The goal of CDI 1 during the construction phase was to enhance positive relations between BP
and communities along the pipeline route through sustainable socio-economic development.
The overall program budget during pipeline construction phase was $8 million over a three-
year period (2003-2006). Similar program were created for Azerbaijan and Turkey.
After the completion of construction of BTC/SCP pipelines and moving into the operations
phase (2006), BP as operator of BTC and SCP, continued financing of the phase II of the
CDI for additional 3 years (2006-2009) with the aim to strengthen/solidify positive
relationships with communities along the route of the BTC/SCP pipelines .
CDI 2
The overall goal for Phase II of the CDI (CDI 2) was to enhance positive relations between
BP and communities along the BTC/SCP pipelines route by investing in communities that
demonstrate a commitment to become models for sustainable community development. The
aim is to support communities to become increasingly able to implement and sustain self–help
projects with minimal external support, and to thereby improve the livelihoods and
opportunities for the pipeline affected communities through a partnership relationship with BP.
In the beginning of 2008 implementation of the marketing component of the CDI 2 -“Farmers
to Markets” project (FtM) has started in addition to on-going activities. The initiative to start
the project was prompted by the need to address and fill in a significant gap by assisting small
farmers in getting their goods to market. For this reason the project was named as Farmers to
Markets.
Implementation of project activities was scheduled for three year period (2008-2011) with the
total budget 520,000US$. Due to the saving in the project budget at the beginning of 2011,
No- cost extension of the project was approved. FtM project was prolonged by four months
until the end of July, 2011 to fulfill the planned activities with the funds remaining in the
project budget.
Recognizing commitment of BP and its co-venturers to support enhancement of the quality of
life of the communities in the countries of the three pipeline projects (BTC/SCP/WREP), and
based on the company stakeholder development strategy the decision was made to continue
supporting Community Development Initiative along the BTC/SCP and WREP pipelines in
Georgia beyond Y2009.
CDI 3
Third phase of the Community Development Initiative on BTC/SCP pipeline (CDI 3) started in
May 2010 with CARE international as the lead partner. Smooth transition between the CDI 2
and CDI 3 was achieved through extending some of the activities of CDI 2 until
commencement of the new phase.
The proposal submitted by CARE international for the CDI3 was reviewed both internally by
BTC/SCP team and externally by an Advisory Board made up of representatives of key donor
organizations active in the country - United Nations Development Program (UNDP), US
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Agency for International Development (USAID), the European Union (EU) and Swiss
Cooperation Office for the South Caucasus (SDC)
In May, 2010 formal agreement was signed with CARE international in the Caucasus to lead
the program implementation together with two local organizations: Center for training and
Consultancy (CTC) and Constanta Bank (micro loans). Program duration was planned till the
end of January 2012 with the total budget of US$ 1.865,081 million.
Due to the saving in the program budget, the program was prolonged within the no-cost
extension procedure by two months until the end of March’2012 to fulfill the planned activities
with the funds remaining in the project budget.
The goal of the third phase of the Community Program was to enhance and strengthen positive
and harmonious relationships with communities along the pipelines route through sustainable
social and economic development. Two main areas - agriculture and civil society capacity
building - have been identified as the most suitable areas for further intervention taking into
consideration country specifics and the results already achieved through the 1st and 2nd phases
of the Community Development Initiative.
During the first months of the project, CARE investigated alternative options for a local NGO
to pick up responsibility for significant components of the project during the second year of the
project implementation, in particular, rural infrastructure rehabilitation support, the agricultural
advisory services and small business development. CARE international announced tender for
selecting local NGOs to implement the field activities under the CARE supervision.
Regional Development Association was selected in the West section communities, Center for
Training and Consultancy was selected to implement activities in the East section communities.
After the 8 months of the start-up of CDI phase three, CARE started handover process to the
mentioned organizations, although CARE retained the oversight and guidance throughout the 2
year lifespan of the program.
To maintain the existing level of relationship and impact on the communities affected by the
business, as well as to ensure the business continuity and managing the reputation in the
country, the 4th phase of CDI implementation was initiated.
The Final External Evaluation of CDI 3, done by BP at the end of CDI 3, considered
nationalization strategy process as correct step for further operation, considered local NGOs
CTC and RDA capable to manage implementation of the next phase of the project and
recommended to request the proposals from them via tender for CDI4 implementation.
Community Development Initiative – phase 4 (CDI 4)
In March, 2012, BP Georgia announced Request for Proposals from CTC and RDA for the
three - year CDI implementation (CDI 4).
The proposals submitted for the CDI4 were reviewed both internally by BTC/SCP team and
externally by an Advisory Board made up of representatives of key donor organizations active
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in the country - the European Union (EU) and Swiss Cooperation Office for the South
Caucasus (SDC)
Both proposals were considered relevant to handle the implementation of CDI 4, CTC in the
Eastern part and RDA in the Western part communities. Program duration is May, 2012 – May
2015 with total budget of the program 3,318, 975 US$
The main goal of the 4th
phase of the project is to deepen the positive relations between BP
communities along the BTC/SCP pipelines route, by investing in communities to provide
positive contribution for sustainable improvement in communities and maintain and enhance
sustainability of social-economic development. Main areas of the program include agricultural
support, business development as well as community development through capacity building
and sustainable activities, such as rehabilitation of rural infrastructure as well as Social
enterprise establishment by Community Based Organizations.
The specific objectives of the CDI 4 are to promote sustainable forms of social cooperation
and initiatives for community sustainable development and to enable economic opportunities
for the pipeline communities to develop regional agro-business and provide public goods and
services through established small and medium scale businesses.
In December, 2013 it was decided to extend the CDI agricultural component scale and start
piloting agricultural cooperative establishment.
Community Development Initiative for the South Caucasus Pipeline Expansion (CDI
SCPX)
The South Caucasus Pipeline expansion (SCPX) is being proposed by BP, on behalf of a
consortium of partners, as BP is the operator of the South Caucuses Pipeline (SCP). Project is
developed to expand the capacity of the existing SCP system to allow additional gas throughout
from the Shah Deniz Full Field Development in the Caspian Sea.
BP, on behalf of a consortium of partners, engaged with communities along SCPX construction
areas and started implementation of Community Development Initiative (CDI SCPX) in the
new communities, affected by SCPX project.
CDI SCPX program resembles the model of earlier phases of CDI with main strategy of the
program to provide the area with a powerful social and economic platform and give
opportunity for gradual development into strong independent communities as well as
promoting BP Georgia public image in the affected areas.
CDI SCPX started in May, 2013 and is due to end in May, 2015. East Section of project
interaction includes Gardabani, Tetritskaro, Tsalka districts, covering twelve (12) new villages.
West section includes Akhaltikhe, Adigeni districts covering five (5) villages, and Rustavi
town 18, 19 Districts are CDI SCPX target area as well. Implementing partner of CDI SCPX
is Center for Training and Consultancy in the East section, Regional Development
Association in the West section and Georgian Organization of the Scouts Movement in Rustavi
micro Districts. Total budget of CDI SCPX for new communities is 687,000 US$
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Community Development Initiative Management and Coordination
The CDI programs are managed by the Social Responsibility team in BP Georgia Tbilisi
office.
Community Development Initiative Adviser is dedicated full time to monitoring and
evaluating the work of the NGOs through regular participation in field activities and review
of monthly, quarterly, annual and final reports, tracing the expenditure of the projects
contracts’ budget and other social sub-contracts through the recording of corresponding
invoices, ensuring, that implementing partners’ practices and procedures are aligned with
those of BP, that, those partners adhere to the principles of company Code of Conduct,
including a contractual requirement to act consistently with the code when working on
company behalf.
The CDI Adviser reports to Social Responsibility Manager
The NGOs that implement programs send monthly reports to BP, which provide a brief
summary of activities for the month and outlines any issues or actions. Quarterly reports that
are provided each calendar quarter, go into more depth focusing on outcomes, on summary of
activities, progress to date, challenges and the ways they are addressed. Quarterly financial
reports contain financial expenditure against the approved budget. An annual report focuses
on results, monitoring and evaluation, programmatic changes, etc. Final report describes
achievement and their resulting impacts, program overview and impact assessment, strength
and weaknesses, lessons learned.
Community Development Initiative for BTC/SCP – 4th
phase
Objectives and key components
Social / Institutional Objective and its components complementing the overall
goal
Sustainable forms of social cooperation and initiatives for sustainable community
development are promoted
31 community infrastructure projects are implemented
11 Community Based Organizations (CBO’s) establish Social enterprises to generate
income to deliver services to their communities
More than 25,000 residents benefit from improved infrastructure and social
enterprises
Economic Objective and its components complementing the overall goal
Enabled economic opportunities for development of agro businesses in the
communities and public goods and services are provided through established of small
and medium scale businesses
105 small and medium scale business are established with participation of at least
40% of women
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70% of funded start-up businesses achieve the profitability in 12 month from the
start
3 Financial and legal Service Groups are established in Adigeni , Akhaltsikhe and
Borjomi districts
36 services are rendered by each Financial and Legal Service Group to project
beneficiaries
100 on farm demonstration are established
At least 150 farmers /producers ( 30% of women) linked to the urban channels to sell
their products
1800 farming households achieved higher production margins as a result of use of
modern technologies
Project target community members and 6 target municipalities rise awareness about law on cooperation and its advantages for farmers unions
6 Agricultural Cooperatives established Agricultural Cooperative component delivers benefit to 155 pipeline households 470 Subsidized agro loans are provided to the pipeline farmers
20% increase is achieved in target household income
Project Specific examples of summarized outcomes include:
External evaluation of the project
At the end of 2013 company invited three international independent evaluators via tender,
to conduct CDI 4 midterm evaluation with the aim to assess the effectiveness of the whole
CDI 4 , provide critical review of the project achievements and make recommendations for
activities , approach and strategies for the remaining period.
Main findings of the evaluation are following:
There have been multiple increases in productivity and rates of return for the
initiatives in the communities, while significant forms of social networking have been
created. The nationalization policy for the programme partners has been a success.
There is a strong potential in scaling up some of the investments.
The modalities for the management of the programme are optimal, creating a good
balance between on-the-ground expertise, and coordination with the authorities and
international organizations. There is a strong grasp and commonality of strategy and
of relevant techniques amongst all partners.
Continuity and focus within the programme has created a high degree of value for
money. There are easy gains available to BP in show-casing the programme, in terms
of the constraints it has overcome, but especially in the profound shifts achieved in
public perception over the years, and the rural development models it has launched.
Main challenges during the reporting quarter
The reporting month was quite busy for the project due to grants competition in infrastructure
rehabilitation and small start-up business components. The main activities of the project were
to continue with informational campaign in the target villages spreading application forms
and arranging consultation meetings with population.
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During the reporting month the project conducted informational visits to new appointed local
government representatives in the villages. The project management introduced CDI
activities in the target villages describing all the components and upcoming activities.
Strategic Management
In the beginning of the reporting quarter, project Implementing partners conducted internal
audit, sue to the budget saving, they made budget reallocation and provided revised proposal.
Based on leassons learned and external evaluation finding some components are proposed be
scaled up, more rehabilitation projects will be implemented and more small businesses will
be established, than it was envisaged in the initial proposal.
CDI-government relations entered into new phase for CDI West. In response active
facilitation by RDA and through CBOs, the local governments of Borjomi and Akhaltsikhe
created additional line in municipality budget for implementing mutual Infrastructure
Rehabilitation projects with donor organizations. This is a significant achievement of
cooperation among local government, communities and donors, which will enable more
organized approach to mutual activities, better planning by all sides and most importantly the
efficiency in terms of time and finances.
As for the relations with central government, RDA and CTC in close coordination with BP,
prepared and signed Memorandum of Cooperation (MOC) with Ministry for Regional
Development and Infrastructure in April. The MOC envisages exchange of information with
the purpose of better coordination and avoidance of work duplication during implementation
of infrastructure projects.
Strengthen institutional capacity in the community, CBO activities
Community infrastructure projects
During the reporting quarter the project has announced the third round of community
infrastructure rehabilitation grants competition among the target communities. The
community mobilization staff members have assisted CBOs to conduct community meetings
in order to inform about the upcoming projects. Besides, the project has conducted
consultation meetings with interested CBOs giving technical recommendations on proposal
writing.
Total of 30 proposals were submitted from the target villages.
The project had conducted first stage review of the technical proposals and preliminary
selected 20 projects. Consequently engineers started on-site monitoring visits to ensure the
project implementation feasibility. After the monitoring visits are completed, the project
selection committee will conduct final selection of proposals by the selection committee.
As of the reporting period 30 infrastructure rehabilitation projects are implemented. All of
them are operational delivering benefits to more than 7,000 families.
Social Enterprise (SE)
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12 social enterprises, established within the project, are operational. In total more than 500
different type of services are provided by SEs to the communities, particularly, assistance for
land cultivation, or providing support during the harvest. During the reporting quarter all SEs
managed to provide 30 services about to 50 households. In total more than 300 servisces are
provided to 335 Households.
Agricultural support, new business start-up activities and subsidized agricultural loans
will support the communities to improve their livelihoods
Agriculture
In the east the main activities of the project agricultural extensionists were monitoring visits
to demo farmers, conducting group trainings and individual consultations, assisting farmers
in purchasing agricultural inputs. January-February was busy with monitoring of stored
agricultural goods to ensure proper temperature and ventilation in warehouses. In March,
farmers seeded carrot, beet, and onion rush in lower zone villages, while mountainous areas
have still been covered by snow.
Total of 47 group trainings were conducted for 49 demo and 188 other farmers in the target
communities.
Total of 508 individual consultations were given to farmers on various issues.
Cross visits represent another important part of successful demonstration through which
farmers are given opportunity to learn and share experience with others as well as visit
agricultural input supplier's to get introduced to preparations and methods of safe usage.
Case study
A greenhouse in Minadze village established initially to farm vegetables for demonstration
and sale, followed advice of project agricultural experts to convert into a local nursery, due to
high demand for quality seedlings in the area.
Gia Zedginidze, the demo farmer running the nursery greenhouse says he started greenhouse
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farming 15 years ago, but was able to commercialize production only after participation in
CDI4 On-Farm Demonstration program. “The value of information and advice I received
from project exceeds by thousand times the monetary value of equipment and inputs I was
granted. Now I can switch on the drip irrigation system that does job itself, unattended,
allowing me to do other important things in the same time”, says the farmer, joking, that he
even learned how to set alarm on his mobile phone to time irrigation periods.
Development of Agricultural cooperatives
In January the project had arranged informational meeting with Head of the Agricultural
Cooperatives Development Agency, which operates under the Ministry of Agriculture of
Georgia.
The parties agreed on the approximate schedule of joint meetings with interested groups.
public awareness raising workshop together with the head of Agency, was conducted with
several village representatives on essence of cooperatives, its benefits, legislation issues and
support from Georgian Government.
Announcement for cooperation grant was launched by the project during the reporting
quarter. 86 applications were submitted from the east villages
Most applications received were about cattle farming and machinery services.
Grant evaluation committee assessed all applications by criteria indicated in the application
form. Short listed projects were inspected on site and applicants were allowed for trainings.
The groups were trained in fundraising (grant proposal writing and grant project
management) by end of March and encouraged to resubmit full applications in April.
Farmers Association "Samtskhe"
During the reporting period, Association “Samtskhe” prepared soil for spring seeding of
stored inputs. In total 20 t. (10t Elite class, 20 t A class) of potato seed were prepared for
seeding on 9ha, which will ensure average of 280 tons of yield in autumn. This is 12% more
than production of the last year. Increase of production is largely stimulated by the
Association’s sales contract with urban suppliers arranged with help of RDA.
Business start-up
During the reporting quarter the project has announced the third round of small start-up
business grants competition.
Project had received 462 application forms from interested small entrepreneurs.
The selection committee had reviewed all the applications according to the preliminary set
criteria and selected 176 proposals as first round winners who will participate in the Business
Administration Training.
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As monitoring showed some businesses require extended consultations on food safety.
Consequently, project invited a specialist and conducted on-site consultations to grantees who
own markets or bakeries.
During the reporting quarter, 80 existed businesses provided service to more than 2000
beneficiaries, 86 existed businesses created 46 full time jobs. All existed businesses generated
31,134 GEL profit. In total within the whole timeframe of the project, cumulative profit
generated by the businesses is 223,891 GEL.
Service Group
Financial and legal Service Groups ( FLSG)
The reporting quarter turned out to be quite productive for all three FLSGs of Akhaltsikhe,
Adigeni and Borjomi. The groups rendered 35 services to external customers and 11 services
to CDI beneficiaries earning 3,760 GEL profit.
Borjomi FLSG conducted trainings in financial bookkeeping and audit for five trainees.
Adigeni FLSG participated in two tenders announced by local government and secured both
competitive biddings enabling 27,413 GEL revenue.
Next Quarter
CDI 4 East
The following activities are planned for the next quarter:
Selection of winners CBOs and Sign agreements to launch rehabilitation activities
Finance New Social enterprise and follow-up with activities
Conduct Business Administration trainings for small entrepreneurs
Sign agreements with new small entrepreneurs
Conduct Business Administration Training for agricultural Cooperatives to farmers
groups
CDI 4 West
Third round winner Infrastructure rehabilitation projects shall be funded and
implementations shall start;
Third round winner Small business projects shall be funded and implementations
shall start;
Agricultural cooperative winner projects shall be funded and implementations shall
start;
Professional consultations shall be provided for Start-up businesses and agri-
cooperatives.
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CBO capacity building, trainings shall be conducted;
All seeding procedures shall be finalized at all spring demos;
Community Development Initiative for SCPX (CDI SCPX)
CDI SCPX project envisages assistance to 18 communities located along the SCPX
construction sites.
The overall goal of the project is to create harmonious and secure environment for sustained
socio-economic development of target communities affected by SCPX activities and promoting
BP Georgia's public image in the affected areas.
In order to fulfil overall goal project focuses on two specific objectives reflecting social and
economic agenda of the community development.
Support gradual development of civil society institutions in target communities via
building the capacity of communities to implement and sustain self-help projects with
minimal external support
Strengthen livelihood security for the affected communities via enabling the
economic opportunities for rural development.
Objectives and key components:
Social / Institutional Objective and its components complementing the overall
goal
31 community infrastructure projects are implemented
17 Community Based Organizations (CBO’s) established to implement
infrastructure rehabilitation
More than 3,000 households benefit from the project interaction
40 youth participate in youth group and implement 4 environmental projects and 30
small scale environmental activities
40 youth take part in summer camp organized by the project
Economic Objective and its components complementing the overall goal
16 demonstration farms arranged and 40 combined fodder demonstration for 80 heads
of cattle established
2 service groups and 1 milk collecting center arranged
34 small businesses established
76 potential entrepreneurs improved skills
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Project Specific examples of summarized outcomes include:
Main challenges during the reporting quarter
Weather conditions prolonged rehabilitation and some other activities were postponed in the
communities.
Capacity building
All CBOs were trained, main topics of the training were: decision making, self-control in
critical situations, influence of information, initiative, self-positioning, personal and functional
competence, opinion settlement, and behavioral characteristics of adults. The participants were
introduced to essence of community based organizations, its development, and importance of
community contribution, CBO mission and vision.
Infrastructure rehabilitation
The reporting period was mainly dedicated to conducting informational meetings with the
community members and CBOs with regards to the announced second round of grants
competition of the community infrastructure rehabilitation.
8 CBOs submitted applications, which were reviewed and the project started on-site
monitoring visits to ensure the feasibility and relevance of the projects.
First round 10 rehabilitation projects are finalized bringing benefits to 3,057 HHs. 7 more
project are on-going and will be finalized as soon as weather conditions allow continuation of
the activities.
In general there is the big motivation from the community members to participate in
community rehabilitation project activities, which resulted in increased community
contribution, which is up to 36% instead of requested 25%.
Case Study
School teachers of Gantiadi Public School, located in Tsalka Municipality, along with students’
parents and with Educational Department Lead, unanimously decided to eliminate existing
unbearable and intolerable conditions, which damaged the health of students and administrative
staff of the school.
Some of them decided to give in their savings, some tried to sell their personal belongings in
order to pull enough funds together for the rehabilitation of classroom floors at school, which
were covered in 1982 and overtime became the big threat for student’s and teacher’s health.
“At that time, CTC representatives held meeting between the local population, where we
discovered, that BP would financially support the priority infrastructure project, which seemed
like a gift, sent from the God” – gratefully declares Educational Department Lead of Gantiadi
Public School, Mr. Alexander Markoidze.
The majority of gathered local population at the meeting, voted for the Gantiadi School Floor
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Rehabilitation project. As a result of great effort, put by Community Based Organization,
preferred project has been approved.
As a result of project implementation, 15 classrooms were rehabilitated in a comprehensive
way; new concrete pavement has been installed along with the latest laminate flooring.
Grateful and content with clean and healthy learning environment, the Educational Department
Lead says, that attitude of students towards the learning process has completely changed and
became more positive; they take care of rehabilitated classrooms and try to maintain the result
of common work,
Agriculture
Project continues working with 6 individual demo farmers and with 11 group demonstration
farms, which unites 47 farmers.
Reporting quarter was busy with visiting demonstration farmers and conducting
trainings/consultations about upcoming spring preparatory works
Seeding and planting season is approaching and all spring season demo farm owners are
preparing seed materials and other agricultural inputs. Agricultural experts conducted
individual sessions of emergency consultations to help farmers regulate temperature and
ventilation.
In the reporting period, 35 farmers purchased combined feed with subsidized rate. Total
number of beneficiary farmers as of the end of March is 49.
Service groups
The project announced grants competition to support the process for creation of service groups
in the target communities
At the end of the reporting quarter five potential service groups presented business plans for
reviewing. The selection was done according to the preliminary set criteria such as feasibility,
relevance, profitability, service volume, target beneficiaries and etc.
The selection committee has reviewed the applications and made decision of admitting all the
applicants to participate in the training on "Business Administration for Service Groups". Total
of 10 members participated in the training. After the training, applicants provided full scale
business proposals for farther revision. Four projects were selected by the selection committee
for farther on site monitoring to ensure proposed activity relevance to the demonstrated
business plan.
Milk collecting cooperative “Khareba" from the village Ude, Increased Milk collection and
already calculated its first revenues. Cooperative collected 38,289 l of milk from 44 farmers of
village Ude and Arali. Cumulative revenue for cooperative is 37,890Gel and profit is
2,696GEL.
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Each of the 44 milk suppliers, supplied 870 liters of milk during the reporting period. Total
amount of earned money for all suppliers is 31,601 GEL revenues on average.
Small business startup
During the reporting quarter the second round of small start-up business grants competition had
been announced in the East. Project had received 33 applications. The selection committee had
reviewed all the applications according to the preliminary set criteria and selected the first
round winners- 18 entrepreneurs, who will participate in the Business Administration Training.
The data with regards the financed start-up businesses is as follows: 17 businesses are financed.
There are total 18 grantees, which run all these businesses. Total of 10 people are employed
within the established businesses from which 3 are women. The businesses have generated
profit with total amount of 1,180 gel providing services to 133 community households.
All necessary consultations were provided to beneficiary entrepreneurs including financial
bookkeeping. Project agricultural specialist continues providing individual extension service
for agricultural businesses in all villages.
Case study
Ude Milk Collection Center Becomes Top Supplier for HACCP Certified Enterprise
Ude cooperative farm Khareba, established with help of SCPX intervention in 2014, became top
single supplier of Tsini dairy plant in three months after launching operations. The plant is ISO
and HACCP certified and is practicing highest international standards of food safety.
Milk collection started in January and by end of March, Khareba collected up to 40 tons of milk
from 44 local farmers who also received combined feed at subsidized rates, also covered by
CDI SCPX program. Each of these suppliers earned up to 300.00 GEL income per month
through sales of raw milk.
Cooperative Khareba collects milk daily from locals and returns them whey, remained after
cheese production, which is used to feed piglets. During the same shift, Khareba truck also
distributes combined feed subsidized under CDI SCPX program.
Pavle Merabishvili, Director of Khareba Cooperative, reports about high satisfaction of locals
with the service offered by collection centre. According to him, Ude is a large village, with one
of the highest per farmer count of cattle in the region, but locals never sold their milk. Instead,
they made cheese and sold on local farm markets, earning much less, than we offer.
“I am paid cash bi-monthly, on set dates, which means my family receives income at home,
without wasting time and energy on production and sales of dairy”, says Kulijanishvili Vano,
one of the suppliers of Ude milk collection center.
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Rustavi 18,19 district community continues co-operation with the project. Second business-
grant project competition has been announced in the target districts. Deadline for submitting
the business project proposals is April.
Youth groups activities started in Rustavi 19th district target schoolls, # 10 and # 28.
Micro grant competition launched for the school youth groups. Proposals were submitted.
Both groups managed to gain the grant and get funding to implement the projects: the school
#10 project is “Let’s give the school a new look” and is about creating recreational area
inside the school building. Project of the school #28 is called “Live in a better environment”
and is about creating recreational area around the school.
17 small scale environmental activities have been organized by the youth groups: "Nature
disaster stories", “My carbon footprint", "Creatures conference"; "What have I done today?",
"Which natural disaster am I?", "Life of a river" and "Quick energy debates".
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Next Quarter
CDI SCPX West
CBO capacity trainings shall be conducted;
All second round winner IR projects shall be funded;
All start up projects shall enter operations phase;
All spring demos shall be seeded;
Quarterly progress survey shall be conducted;
CDI SCPX East
Sign agreements with CBOs for implementing economic infrastructure rehabilitation
projects
Finalize on –going infrastructure rehabilitation project implementation
Sign agreement with selected service groups
Conduct Business Administration Training to winner entrepreneurs
CDI SCPX Rustavi
Second round of small business component, revision of the submitted proposals
Proposal writing training for the shortlisted applicants;
Implementation of environment programme activities;
Implementation of the micro-grant projects.
Community Development Initiative in the villages along WREP
In 2009 the decision was made to bring WREP Georgia community Development initiative
under the same management framework as for the BTC/SCP, which resulted in engaging local
NGO in project implementation through the Request for Proposal (RFP) process, with focus on
youth capacity building component defined as a target area for investment.
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“The Youth Capacity Building Project” was launched in May, 2010. Georgian Organization of
the Scout Movement (GOSM) was selected as the project implementing partner through the
tender process. Georgia organization of the Scouts Movement, co-operating with local NGO,
Center for Training and Consultancy within the project framework.
The project was due to May, 2012. Total budget was 482, 013 US$ out of which the amount
requested from BP for the implementation of the proposed project was 299,923 US$. 173, 490
US$ was contributed by GOSM and its partner NGO - Center for Training and Consultancy
(CTC) as well as by the project with the Swiss Guide and Scout Movement.
During the implementation of the project additional 55,500 US$ was allocated for the
additional activities, which included establishment of the second summer camp, and civic
education training course for the teachers in target schools. All mentioned activities were
included into the project scope based of the need assessment of the target schools and youth
group members. To fulfill the new activities, project was extended till the end of June 2012.
The project ended within the reporting period.
To continue the project interaction in the communities along WREP, company announced A
new RFP in the 3Q 2012 to identify the IP for the new CDI along the WREP.
Georgian organization of the Scout Movement was selected to implement the project – Small
Business development Project (SBDP) along the entire length of WREP. The project started in
October, 2012 and was due to end in December, 2015. During the implementation process, a
lot of issues turned out as challenging. Particularly: i) Some business started later, due to
seasonal character, which reduced one year monitoring period, necessary to observe, consult
and follow up their development to ensure sustainability of the interaction. ii) Vocational and
agricultural trainings/consultations, not planned, turned out obviously required for the success
of the supported businesses; Specific trainings and consultation were permanency in demand
from the beneficiaries. iii) High demand from the IDP population to support settlements’ youth
to participate at least one more summer camp to help them to strengthen their knowledge in
environmental disciplines and establish networks among each other
Total budget of the project is 1,538,008 US$ out of which the amount requested from BP is
1,448,473 US$. Leveraged amount from Scouts Movement is 89,535 US$.
The project is intended to implement small business start-up activities in the communities
along WREP pipeline located within 2 km corridor (1km from each side) also, in communities
located within 4 km corridor (2km from each side) along the Access Roads to the BP above
ground facilities as well as affected due to some increased company operational activities.
In addition to the target villages, the project will be also implemented in 4 IDP camps, located
along WREP pipeline within 2 km corridor (1km from each side). The main initiatives
conducted at IDP camps should be focused only on empowering the youth at IDP camps.
Description of the Key objectives and main themes of Small Business Development Project
are represented in below paragraphs/chapters.
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“Small Business development Project (SBDP)” - Objectives and key
components:
Enable the opportunity-driven process for the pipeline communities to develop
small scale agro and off farm-businesses through equipping them with necessary
skills, knowledge and tools.
Support the environmental educational achievements of the secondary school
students only in 4 target IDP settlements by enabling life – long learning and
influence on behavior of youth towards natural environment.
Increase GOSM capacity to diversify the portfolio of quality service provision.
Some of the key achievements of the program will be:
Creating opportunities for 275 start-up businesses to emerge and at least
75% of them become financially sustainable, reinvesting the profits for
expansion and further development;
At least 275 new jobs created;
50% of the disbursed grants managed by women;
IDP settlements further prioritized and supported by working closely
with schools and introducing a World Environmental Programme.
Project Specific examples of summarized outcomes include:
Main challenges
It was impossible to reach some of the villages in Imereti and Shida Kartli because of the
heavy snow.
The following section provides detailed overview of the project activities and describes
major accomplishments, impact and outcomes:
260 startup businesses received the grants during the reporting quarter. The rest of the
businesses will be launched in the upcoming quarter.
According to the information taken from the account books kept by the beneficiaries, all
financed businesses have had about 6734 customers during the reporting period (locally as
well as from surrounding towns and villages).
52 new services are created in the villages that are deprived of basic social and economic
services. Shops, beauty salons, sewing workshops, bakeries, cafes, mills and veterinary
services will serve the village population on the spot at reasonable prices. Some of the
services are even attracting neighbor villages being the only option in the community.
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435 individuals have been employed by the beneficiaries during the reporting period: 336 out
of this are family members helping the beneficiaries to run the business, 99 are outsiders: 23
out of them are permanently employed, while 76 have been employed part time for the
seasonal works.
136 businesses are already profitable, totally about 77 000 GEL net profit has been generated
by the supported businesses during the reporting quarter.
2nd micro-grant competition has been announced in the youth groups in target IDPs. 4
project proposals have been submitted by the youth groups and all of them were selected by
the selection committee.
In total 4 micro-grant projects have been awarded to the IDP youth groups as a result of the
second micro-grant competition.
13 small scale environmental activities have been implemented by the youth groups. These
educational activities from the World Scout Environment Programme address key
environmental challenges facing the planet; encouraging the youth to connect with nature,
think about how we interact with the environment and take action to protect it. Some of them
are presented indoors and some in outdoors, allowing the youth to explore and discover the
natural world.
Case study
Family reunion thanks to the SBDP project
Khatuna Kverenchkhiladze, inhabitant of project target village Khajalia in Lanchkhuti
district, has started up a store business with the support of the SBDP small business grant
programme. Whole family worked a lot to build and equip very attractive small shop. This is
a first shop opened in the village and the inhabitants are very happy that they don’t walk long
distance any more to purchase convenience goods.
Before Khatuna started a business, her husband Ilia Tevzadze had to leave to Turkey as a
migrant laborer, thanks to this business, he has returned to his family and village. At present
he is actively helping his wife to run the business, makes provisions and serves the village
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population.
“We are both so occupied with this business; hopefully the store assortment and income will
increase with time. Our neighbors are also very happy that there is a store in the village and
what is the most important for me and my family, my husband is back home” – Khatuna
Kverenchkhiladze is telling when asked about her new business.
Next Quarter
Monitoring business implementation activities, consultancy;
Taxation trainings for the beneficiaries;
Implementation of the Environmental Programme Activities;
Implementation of the Micro-Grant Environmental Projects;
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List of acronyms
BTC/SCP
SCPX
Baku Tbilisi Ceyhan/South Caucasus Pipeline
South Caucasus Pipeline Expansion
WREP
Western Rout Export Pipeline
CDI
Community Development Initiative
CIP
Community Investment Program
FtM
YCBP
SBDP
Farmers to Market
Youth capacity Building Project
Small Business development project
NGO
Non-Governmental Organization
RDA
Regional Development Association
CTC
Center for Training and Consultancy
RFP
Request for Proposal
CBO
Community Based Organization
FLSG
Financial and Legal Service Group
IDP Internally Displaced Person
END
