From: Kim Matthis [mailto:Kim.MATTHIS@EUMM.EU]
Sent: 10 September, 2020 08:47
To: Ketevan Goginashvili <kgoginashvili@moh.gov.ge>
Cc: ketibakaradze <ketibakaradze@gmail.com>
Subject: RE: EUMM grant-related issues

From: Ketevan Goginashvili <kgoginashvili@moh.gov.ge>
Sent: 09 September 2020 18:59
To: Kim Matthis <Kim.MATTHIS@EUMM.EU>
Cc: ketibakaradze <ketibakaradze@gmail.com>
Subject: RE: EUMM grant-related issues

Dear Kim,

 

We are sending you a letter from the Ministry of Health of Abkhazia on grant-related issues.

 

1) The legislation in force in the country on public procurement contradicts the implementation of an electronic tender for the joint procurement of items specified in the grant agreement under the terms of partial transfer of funds.

As stipulated in the contract (special conditions), and in article 15.1 in General Conditions of the PRAG (annex II to the contract), there is a pre-financing of 80% of the grant, and the balance is transferred subsequent approved reporting of the project. The normal way for grantees in this situation is to borrow the additional 20 % from other internal budget lines until after the project is implemented and reported. The Ministry of Internally Displaced Persons from Occupied Territories, Labour Health and Social Affairs of Georgia (GEO MoH) is the lead applicant (and coordinator of the grant), so I kindly urge you to discuss in between yourselves and see if you can find a solution. Other solution is that you stipulate in the contract with the supplier of the equipment that 80 % of the amount will be paid immediately upon the delivery, and final portion will be paid within XX number of days after the delivery of goods. In between you will submit the financial and narrative report of the project, showing costs actually incurred with this procurement (with proof of payments), and enclose the invoice of the balance as a pending cost. That together with the contract with the supplier, showing total value of the purchased goods, will be enough for us to make the second transaction with the condition that you provide proofs of payment of this final part to their supplier, within two weeks after the transaction is conducted. I would be happy to discuss further over phone.

 

2)The price investigation showed that in the last three months the prices for both tests and personal protective equipment have increased significantly and the purchase of the quantity specified in the contract can no longer be carried out with the amount received from the grant.

This is unfortunate but nothing we can do about. You will have to adjust the purchase (amount of equipment) to these new prices. Please see attached the approved budget format. Could you please fill in the new prices/number of items and resend to me?  I am happy to support, just let me know.      

 

3) Ministry of health of Abkhazia received part of EUMM grant (142 440.35 GEL) on August 21. The grant agreement stipulates that the payment must be made in GEL, in accordance with the exchange rate of the commercial bank serving EUMM Georgia (see Article 3, paragraph 3.2). The exchange rate of the Euro set by the National Bank against the national currency on August 21, 2020 was 3.6352 GEL. Accordingly, 41,955.92 Euros for that day was 152,518.16 GEL, compared to which the transferred amount is about 10,000 GEL less, which threatens to purchase the amount of medical supplies and items stipulated in the contract, especially if the full amount is increased.

As stipulated in the contract, the Ministry of Internally Displaced Persons from Occupied Territories, Labour Health and Social Affairs of Georgia (Geo MoH) is defined as the lead applicant, while the Ministry of Health and Social Affairs of Autonomous Republic of Abkhazia is defined as co-applicant. Lead applicants are responsible as coordinators of the grant, recipient of funding and of the reporting of the grant; they can choose to distribute the funding on to the co-applicant or to cover their invoices (for this procurement process for instance.). However, that is an internal transfer between you two applicants. The conversion rate mentioned in article 3, paragraph 3.2 of the contract, is related to when EUMM transferred the funding to the GEO MoH. That transfer occurred on 10 July 2020.

 

Based on all of the above, If it is possible:

- Adjust the quantity to be purchased indicated in the grant

Yes. Please see attached the approved budget. Could you please fill in the new prices/number according to the new information of items and resend to me? As mentioned, I am happy to support.

- Lump sum transfer and after that start announcement of the tender

Please see above.

- Extending the validity period of the grant.

Yes. We can extend the implementation period of the grant. How long do you want it to be extended? Once I have received your updated budget and I will draft an addendum to the contract. 

 

Thank you in advance,

 

Sincerely, Keti

 

From: Manona Gejua [mailto:manongejua@gmail.com]
Sent: 3 September, 2020 12:21
To: Ketevan Goginashvili <kgoginashvili@moh.gov.ge>
Subject:

 

 

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