The Component provides co-financing for expansion/modernization of an existing slaughterhouse or establishment of a new slaughterhouse.

The Component 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

For a project co-financed under the Slaughterhouse Establishment Co-Financing Component, co-financing of the interest rate applicable to a loan approved under the Preferential Agrocredit for Fixed Assets Component may additionally be obtained.

Geographic Coverage

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

Agency co-financing:

for expansion/modernization of an existing slaughterhouse - up to 50% of the total amount of the submitted project, but not more than GEL 150,000;

for establishment of a new slaughterhouse - up to 50%, but not more than GEL 700,000.

In the case of cooperatives holding agricultural status, villages adjacent to the dividing line, or high-mountain settlements: for expansion/modernization of an existing slaughterhouse - up to 55%, but not more than GEL 150,000; and for establishment of a new slaughterhouse - up to 55%, but not more than GEL 700,000.

Total project amount:

for expansion/modernization of an existing slaughterhouse - at least GEL 50,000;

for establishment of a new slaughterhouse - at least GEL 300,000.

For the prescribed criteria and costs, see Annex No. 16.

Only establishment of a slaughterhouse in accordance with the criteria and costs specified in Annex No. 16 shall be financed.

Criteria and Obligations

When submitting an application under the Slaughterhouse Establishment Component (both for establishment of a new slaughterhouse and for expansion or modernization of an existing slaughterhouse), the applicant must submit the consent of the Legal Entity under Public Law - National Food Agency to the slaughterhouse design/layout.

The design/layout must comply with the food hygiene requirements and requirements relating to non-food products of animal origin established by Resolutions No. 173 of June 25, 2010 and No. 605 of December 29, 2017 of the Government of Georgia.

Before co-financing is disbursed, the beneficiary must submit a recognition or conditional recognition issued by the Legal Entity under Public Law - National Food Agency.

Before co-financing is disbursed, in the case of expansion/modernization of an existing slaughterhouse or establishment of a new slaughterhouse, the beneficiary must submit a document specified by the Agency containing information on the slaughterhouse's daily capacity:

• for cattle - at least 25 head
• for small ruminants - at least 100 head
• for pigs - at least 100 head
• for poultry - at least 600 birds
  
  

For three years after disbursement of co-financing, the beneficiary shall annually submit a document confirming recognition issued by the Legal Entity under Public Law - National Food Agency.

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 periods, the Agency shall terminate the agreement executed with the beneficiary.

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 Component.
• 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).
• 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.
    
    

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.
• in the case of construction, submit, within the period determined by the Agency, the commissioning/acceptance certificate for the building/structure created under the project.
• 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 for a Potential Beneficiary

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;
• the land plot must 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 under the Slaughterhouse Establishment Co-Financing Component

Co-financing shall be disbursed after performance of the obligations under the agreement is confirmed by an audit report evidencing performance of the obligations under the agreement and by an on-site inspection conducted by the Agency.

In the case of construction, a construction permit issued in accordance with the legislation of Georgia must be submitted.

For construction/repair/reconstruction works with a value of at least GEL 200,000, the value of the completed works must be confirmed by:

• a report issued by a person accredited by LEPL National Accreditation Body (Accreditation Center)
  or
• an expert report issued by the LEPL - Levan Samkharauli National Forensics Bureau
  
  

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.

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.