To Promote and stimulate development of production-oriented industries in the country regions of Georgia.

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2 About Agency Agricultural Projects' Management Agency was established in 2012 in order to promote rural development in Georgia. Mission To Promote and stimulate development of production-oriented industries in the country regions of Georgia. United Agroproject Agricultural Projects Management Agency is implementing United Agroproject which is intended for longterm development. The goal of the project is to promote the growth of competitiveness of agricultural sector, high quality production and provide food safety. 1501

3 United Agroproject Plant The Future Preferential Agro Credit Project Co-financing of Agro Processing Enterprises and storage facilities Georgian Tea Rehabilitation Program Agro Insurance Small Farmers Support Program Seasonal Projects AMMAR

4 Preferential Agro Credit Program Short Overview Initiated by the Ministry of Agriculture, Preferential Agro credit program in partnership with banks and MFIs, was launched in March 2013 Managed by the Agricultural Projects Management Agency. The goal of the project is to increase access to long-term, preferential financial resources for farmers. 1501

5 Preferential Agro Credit Project - Components Fixed Assets Working Capital for specific and seasonal projects Produce in Georgia Preferential Agro Leasing Gel - $30,000 not more then 15% $30,001 - $100,000 not more then 14% $100,001 - $200,000 not more then 13% $200,001 - $600,000 not more then 12%. From 20,000 Gel. to 50,000 Gel Max interest rate 15% From 50,001 Gel. to 100,000 Gel Max interest rate 14% $600,000 - $1,000,000 - not more then 12% $1,000,000 - $2,000,000 - not more then 11% $12,000 - $600,000 - not more than 15% Co-finance - 11 % Co-finance - 8% Co-finance - 10 % Co-finance- 12 % 1501

6 Preferential Agro Credit Project Financial Institutions Involved in the project Beneficiary presents project to financial institution Agency co-finances the interest rate of the loan Bank of Georgia TBC Bank Basis Bank Bank Republic VTB Bank of Georgia Procredit Bank Tera Bank Cartu Bank Progress Bank Halyk Bank Liberty Bank International Bank of Azerbaijan Georgia Pasha Bank Georgian Leasing company TBC leasing Beneficiary Financial Institution Financial institution discusses the project and informs the agency about the final decision APMA 1501

7 Preferential Agro Credit Project Data as of 12/31/2016 Funded Established 138 new enterprises Expanded 700 enterprises Total Disbursements 27,573 loans, As of December 31, 2016 GEL GEL 25,315 Loans disbursed Total amount 760,758,314 Gel Dollar 2,258 Loans disbursed, Total amount 238,927,628 USD USD 1501

8 Co-financing of processing enterprises and storage facilities program Short Overview Initiated by the Ministry of Agriculture, Co-financing of processing enterprises and storage facilities program was launched in February Managed by the Agricultural Projects Management Agency. The project aims to increase the quality of integration of agricultural production, the expansion of primary production in rural areas and promoting the creation of added value. The project stimulates the creation of sectoral and geographically diversified agricultural processing enterprises and storage facilities. Within the program beneficiaries get financial and technical support. (ISO, HACCP and etc.) 1501

9 Co-financing of processing enterprises and storage facilities 10% Beneficiary participation Initial investment 50% Preferential Agro credit 40% Only 50% of the project cost may be financed within the Preferential Agro credit Project Total amount of loan is max. $500,000 Agency co-finances 11% Agency co-finances 40% of total project cost, 250,000 USD max. Total amount of project must be at least 100,000 USD. 1501

10 Co-financing of processing enterprises and storage facilities 10% Beneficiary participation Initial investment Preferential Agro credit 60% Low economic activity regions Total amount of loan is max. $ 500,000 Agency co-finances 11% Agency co-finances 350,000 USD max. Total amount of project must be at least 100,000 USD. 1501

11 Co-financing of processing enterprises and storage facilities Data as of 12/31/2016 Approved 34 projects Amount Total investment of approved projects - 21,624,815 USD, Where the state cofinancing amounts to 7,902,137 USD Financing 16 new enterprises already functioning. (4,084,518 USD has been provided as cofinance) 1501

12 Agro Insurance Short Overview Initiated by the Ministry of Agriculture Agro insurance pilot program was launched in September Managed by the Agriculture Projects Management Agency. Main goal is to raise the agro-insurance culture, to develop the market and establish long-term sustainable system. 1501

13 Agro Insurance Perils Terms Hail Max. Insurable land Subsidy share Additional benefit Excessive Precipitation Hurricanes 5 ha./30 ha. for cereals 50% Vine 70% other cultures In case of registered land- +10% subsidy Autumn Frost 1501

14 Agro Insurance Beneficiary submits the harvest data Project Participant Insurance Companies: Pays the part of the insurance premium Co-finances the insurance premium IC Group Aldagi GPI holding Ardi Beneficiary Insurance company APMA Unisoni Insures harvest Reflects the data in the program 1501

15 Agro Insurance Data as of 12/31/2016 FINANCED 22,051,912 Gel ISSUED 47,485 Police TOTAL AREA Total insured area 39,138 Ha. INSURED 326,842,630 Gel INSURED RISKS Storm, frost Hail, excessive rainfall 1501

16 Plant The future Short Overview Initiated by the Ministry of Agriculture, Plant the Future program was launched in march 2015 Managed by the Agriculture Projects Management Agency. Goal of the project is to decrease the volume of import and increase the usage of arable land, enabling farmers and businessmen to create higher quality products. The farmers will receive both financial and technical support from the government. 1501

17 Plant The future Plant the Future consists of two components: co-financing the seedling nurseries and the orchards. Co-finance Orchards;- 70% Dripping irrigation system- 50% Seedling nurseries- 50% 1501

18 Plant The future Data as of 27/01/2017 Approved 416 projects of garden component and 2 project of seedling nurseries component Cultivated 2,811 ha of intensive fruit orchards Co-Financing 13,684,326 GEL have been granted as co-financing 1501

19 Georgian Tea Rehabilitation program Short Overview The goal of the project is the rehabilitation of tea plantations existing in private Property or leased by the government as well as creation of modern tea primary processing enterprises. Co-financing For the land owner - 60 % of rehabilitation cost For the land lessor - 70 % of rehabilitation cost Co-financing for the cooperatives For the land owner - 80 % of rehabilitation cost For the land lessor - 90 % of rehabilitation cost 1501

20 Georgian Tea Rehabilitation program Data as of 07/02/2017 Projects - 12 APMA Co-financing 550,877 Beneficiaries - 10 Rehabilitation Area Ha. 1501

21 Agriculture Modernization, Market Access and Resilience (AMMAR) 40% Co-finance, 60% Beneficiary co-investment Program budget: 6,500,000 USD Primary production 15,000 USD for Farmers 150,000 USD for Agricultural Cooperatives Processing Industry 75,000 USD for Processing Enterprises 1501

22 Agriculture Modernization, Market Access and Resilience (AMMAR) Data as of 07/02/ Applications with total investment - 803,310 Co-finance: 308,904 Component of Primary Production 5 Applications with total investment - 198,510 Co-finance - 79,404 Component of Processing enterprises 2 Applications with total investment - 604,800 Co-finance - 229,

23 Program priorities Agricultural crops financed under the component of primary production and processing enterprises: The program will be implemented only for the following target areas: Persimmon Apple Peaches Kiwi Vegetables Laurel leaf Honey Shida Kartli Kakheti Samegrelo Adjara Note The program also finance honey production and processing 1501

24 For additional information please contact Agency Location Tbilisi, Digomi a, Akhmeteli street Tel: Web-page