The Perennial Crop Establishment Subcomponent provides co-financing for the following activities:

• establishment of perennial orchards;
• installation of anti-hail systems;
• construction of a well/borehole;
• installation of anti-frost systems.

The Subcomponent is available to a registered entrepreneurial natural person (individual entrepreneur) or an entrepreneurial legal entity in which the State holds no ownership interest, participation interest, or shares.

In addition, the potential beneficiary must be registered in:

• the Registry of Farms and Rural Enterprises
• the Registry of Economic Activities of the Legal Entity under Public Law - National Agency of Public Registry

Agency co-financing: up to 50% of the total project cost, but not more than GEL 2,000,000.

In the case of cooperatives holding agricultural status, villages adjacent to the dividing line, and high-mountain settlements - up to 55%, but not more than GEL 2,000,000.

The total project cost must be at least GEL 100,000.

For the establishment costs of activities under the Subcomponent and the specifications of certified planting material, see Annex No. 1.

Certified planting material means seedlings that have undergone certification procedures and are labeled in accordance with the legislation in force in Georgia, or that have a conformity assessment document (certificate) and marking (label) issued in a Member State of the European Union, the United Kingdom, Canada, or the United States of America and recognized under the legislation of Georgia.

Only the costs specified in Annex No. 2 shall be financed under the Subcomponent.

Geographic Coverage

The geographic coverage of the Subcomponent includes all municipalities of Georgia.

Project Implementation Period

The Agency shall determine the project implementation period for the beneficiary.

The project implementation period shall not exceed 18 months from the date of execution of the agreement.

If the project is not completed within the prescribed period, the Agency shall terminate the agreement executed with the beneficiary.

Criteria and Obligations

For the types of perennial crops that may be cultivated in various regions of Georgia, see Annex No. 3.

The following is mandatory:

• planting certified planting material and installing a drip irrigation system;
  
  For the required specifications of certified nursery stock, see Annex No. 1.
  
  
• Only certified planting material may be purchased under the Subcomponent - a seedling that has undergone certification procedures and is labeled in accordance with the legislation in force in Georgia, or that has a conformity assessment document (certificate) and marking (label) issued in another country (a Member State of the European Union, the United Kingdom, Canada, or the United States of America) and recognized under the legislation of Georgia.
• the orchard must be established on an area of at least 1 ha;
• the land plot must have access to water, or a permanent water source - a lake, river, or canal - must be located no more than 500 meters from the outer perimeter of the land plot, or there must be a well or borehole on the land plot (except where the project provides for construction of a well/borehole);
  
  Criteria and methodology for ensuring water availability to the land plot.
  
  
• the submitted project must provide for the minimum quantity of certified planting material of the relevant crops to be planted per 1 ha. See Annex No. 4;
• For the land plots on which project implementation is planned, a certificate issued by the Legal Entity under Public Law - Scientific-Research Center of Agriculture must be submitted confirming the suitability and compliance of the soil of the plot for all crops contemplated by the project; such certificate shall be issued on the basis of a laboratory report (except for blueberries to be grown in pots);
• List of analyses required to determine soil suitability and compliance.
  Soil analyses must be performed by a person having active status in the Registry of Bodies Accredited by the Legal Entity under Public Law - Unified National Accreditation Body - Accreditation Center, whose scope of accreditation includes laboratory analysis of water and/or soil.
• Before co-financing is disbursed, the beneficiary must ensure a survival rate of at least 90% for the relevant seedlings.

The land plots on which the project is to be implemented may be registered under different cadastral codes if their consolidation is not possible due to geographic location and/or another factor.

A unified irrigation system must be installed on the land plots and must serve a perennial orchard established on one or more land plots.

The irrigation system package must consist of one pump and one water storage tank, as well as other components.

Installation of anti-hail systems, wells/boreholes, and anti-frost systems in existing perennial orchards

To receive co-financing for the foregoing activities, the perennial orchard must have been established in accordance with the criteria applicable to the Perennial Orchard Co-Financing activity and must be equipped with a drip irrigation system.

Under the co-financing activity for construction of a well/borehole:

One well/borehole shall be financed per project.

Co-financing for construction of a well/borehole shall be disbursed only after the beneficiary submits a report issued by the Legal Entity under Public Law - Levan Samkharauli National Forensics Bureau or an audit report confirming:

• completion of the well/borehole construction for its intended purpose;
• the existence of a sufficient water yield from the well/borehole;
• as well as a certificate issued by the Legal Entity under Public Law - Scientific-Research Center of Agriculture, on the basis of a laboratory report, confirming the suitability of the water for irrigation purposes.
  
  

Specifications for the required yield of water to be obtained from the well/borehole and for assessing irrigation-water quality.

Co-financing for construction of a well/borehole shall be disbursed after submission of the license/permit for extraction of mineral resources required under the legislation of Georgia.

General Terms:

• Potential beneficiaries may participate if they have no ongoing contractual breach and/or litigation under projects/programs of the Rural Development Agency.
• The total cost of the submitted project must include the full amount of eligible costs under the Subcomponent.
• The cost of an audit report may be financed; co-financing shall not exceed 1% of the project cost and in any event shall not exceed GEL 20,000. The co-financing amount shall be included within the Agency co-financing limit applicable to the beneficiary.
• Any procurement contemplated by the project shall be carried out by the beneficiary only after execution of the agreement, from an entrepreneurial natural person and/or legal entity registered in accordance with the legislation of Georgia and/or through importation.
  In the case of procurement of services, procurement from a natural person shall also be permitted.
• Fixed assets to be purchased (plant/equipment/machinery/implements) must be new (not previously placed in service).
• Under the Subcomponent, participation with respect to a particular land plot and/or part thereof is permitted no more than twice.
  
  In both cases, all obligations under the agreement must have been fully performed, as confirmed by the Agency. A period of at least five years must elapse between instances of participation, calculated from the date on which performance of the obligations under the previous agreement was confirmed.
  
  The same condition applies to land plots created as a result of division and/or consolidation of the relevant plot, regardless of any subsequent division and/or consolidation thereof.
• A potential beneficiary may not participate in the Program, and co-financing shall not be disbursed to a beneficiary, if:
  • the potential beneficiary or existing beneficiary, or its founder, member, or shareholder, holds an ownership interest in a legal entity registered in accordance with the legislation of Georgia that supplies the relevant goods and/or services under the project;
  • the individual entrepreneur itself acts as the supplier of goods and/or services;
  • the potential beneficiary/beneficiary or its representative serves as a manager of the company supplying the goods and/or services.
  • Beneficiaries with whom a co-financing agreement is executed shall receive co-financing provided that, after this Resolution enters into force, they have no ongoing contractual breach and/or litigation under projects/programs of the Non-Entrepreneurial (Non-Commercial) Legal Entity - Rural Development Agency.
    
    

With respect to land plots and/or parts thereof previously financed under the State Program "Plant the Future", participation under the Subcomponent is permitted for such land plots and/or parts thereof, as well as land plots created from them as a result of division and/or consolidation, regardless of any subsequent division and/or consolidation, provided that five years have elapsed since confirmation of performance of the obligations under the agreements executed within the relevant component of the State Program "Plant the Future".

General Obligations

The beneficiary shall:

• for three years from the date of disbursement of co-financing, not alienate the property created and financed under the project, any part of such property or related assets, or the land plot on which the project was implemented.
  • In the event of a breach, the Agency shall terminate the agreement and the beneficiary shall be required to refund the co-financing amount received.
• for three years from the date of disbursement of co-financing, ensure that the project operates solely in accordance with the intended purpose and profile established by the Program and/or the agreement.
• submit information on project progress to the Agency at the intervals specified in the agreement.

In the event of a breach of the foregoing conditions, the Agency shall terminate the agreement and the beneficiary shall be required to refund the co-financing amount received, or the Agency may grant the beneficiary an additional period to perform the obligation.

Eligibility Criteria

The potential beneficiary must own, co-own, or lease the land plot on which implementation of the project is planned, and such land plot/lease must:

• be registered with the Legal Entity under Public Law - National Agency of Public Registry and/or have been obtained under a long-term lease from the State, a municipal authority, or the Autonomous Republic of Adjara.
• have a remaining lease term of at least 10 years;
• be free of attachment; in addition, if purchased from the State subject to privatization conditions, such privatization conditions must have been fully satisfied and the land plot must constitute the purchaser's unconditional property.

The potential beneficiary must have no outstanding tax liability to the State Budget. This requirement shall not apply where the amount of tax liability does not exceed GEL 1,000, collection of the tax liability has been deferred, or the obligation to pay it has been suspended by operation of law.

Steps Required to Receive Co-Financing

List of documents to be submitted for co-financing of perennial orchards

List of documents to be submitted for co-financing of anti-hail systems

List of documents to be submitted for co-financing of well/borehole construction

List of documents to be submitted for co-financing of anti-frost systems

Co-financing shall be disbursed after performance of the obligations within the period specified in the agreement is confirmed by the submitted audit report and by an on-site inspection conducted by the Agency.

If the project cost is at least GEL 500,000, before co-financing is disbursed the beneficiary shall, for the term of the agreement, mortgage in favor of the Agency, in accordance with the legislation of Georgia, the land plot on which the project was implemented.

The Agency's mortgage may rank second only where the first-ranking mortgagee is the lending bank.

This condition shall not apply in the case of a State lease.

During the term of the agreement, the Agency may conduct on-site inspections and documentary monitoring.

A completed application form and supporting documentation may be submitted in hard copy to the central office of the Rural Development Agency, its regional divisions, or information and consultation centers.

The foregoing documentation may also be submitted to the Agency by email at: document@rda.gov.ge .

The documentation must be accompanied by an application regarding submission of a new application.