From: Maddalena Honorati
Sent: Thursday, July 30, 2020 9:48 AM
To: Nino Kvernadze ; Volkan Cetinkaya
Cc: Tamar Gabunia ; Tamar Barkalaia ; Mehek Marwaha ; Nino V. Moroshkina ; Natalie Godziashvili ; Djamshid Iriskulov ; Lia Tavadze ; Nino Gvenetadze
Subject: RE: POM and related questions

From: Nino Kvernadze <ninokvernadze@moh.gov.ge>
Sent: Wednesday, July 29, 2020 10:15 PM
To: Maddalena Honorati <mhonorati@worldbank.org>; Volkan Cetinkaya <vcetinkaya@worldbank.org>
Cc: Tamar Gabunia <tgabunia@moh.gov.ge>; Tamar Barkalaia <tbarkalaia@moh.gov.ge>; Mehek Marwaha <mehek.marwaha@aiib.org>; Nino V. Moroshkina <nmoroshkina@worldbank.org>; Natalie Godziashvili <ngodziashvili@moh.gov.ge>; Djamshid Iriskulov <diriskulov@worldbank.org>; Lia Tavadze <ltavadze@moh.gov.ge>; Nino Gvenetadze <ngvenetadze@moh.gov.ge>
Subject: POM and related questions

Dear Maddalena,

I understand your concerns. The problem is that the group which was working on data covenants in SESA and SSA is the same group who should send us the description of the FM structure in POM. It has been a tough week for all of us, documents and questions, and indications back and forth. Plus the project procurement  and  FM. Unbelievable number of information and documents was shared and processed.  I have just received the first draft of the WP on data covenant. Will review and send it for translation, just to make sure you receive it on Monday. As for the POM, we of course can send you it tomorrow, but from my point of view, if we give them this weekend, together with Nata, they will  analyze the FM process well, and I am sure we  will have better document on Monday.

In addition I have received  ESMF + LMP as well. SEP is under review. We have tried to involve everyone who should be reviewing these documents.  Both deputy ministers are assisting us in the project implementation and I believe we will finalize all the documents really soon and move to the next step.

Give me tomorrow and will inform you during a day on POM and the questions you have raised in your previous email.

Best regards,

Nino

Dear Nino,

Just a quick check in as we are unclear on several aspects of the design and verification processes of benefits under the SP components (some questions in the email below, others in the last version of the POM sent). We understand you are working hard to clarify those in the POM, and look forward to the revised draft tomorrow.

We may need to raise these questions with Tamila and Tamar if we do not get answers by tomorrow.

Looking forward to hearing from you,

Maddalena

Dear Nino,

Many thanks. These are excellent news. We look forward to both revised POM and first draft of the Action Plan.

We had reviewed the documents Nino M. sent and we have still some clarification questions ( some  of the questions are included in the draft POM also and we hope are addressed in the revised POM you are working on).  I copy DM Barkalaia for her information and inputs.

• One-off benefit / informal workers and self-employed:

• Please clarify what it means for a self-employed to “registered with Revenue Service”: does it people registered for corporate/business taxes ? does it mean individuals being in the taxpayer database.
• We understand there are two cases identified in the online registration system, self employed who are registered and the others (informal selfemployed or informal workers). We saw indeed separate data monitoring provided in SSA administrative database (downloaded from the ministry website). However it seems that the transfer has been made only to self-employed registered. Why? When are the unregistered selfemployed receive the transfer?
• We understand that registration for the one-off benefit was only allowed up to July 1^st . Please confirm if this is the case and whether there are plans to extend the window for application.
• Grateful if you could please provide information on the registration process for self-employed (in particular whether help was provided for opening bank accounts to those who do not have one, and whether the information campaign made it clear that informal workers should not be worried to register).
• It remains unclear how the final status of “specified status” people (self employed who provided documents, but the documents are not clear enough to decide whether they are eligible or not) is decided.
• In case the applicant is not in the taxpayers database and bank account info is correct –  is he required to register and pay taxes? The question relates to what was written on the registration process in one of the manuals you sent us  “ii. If the bank account is correct, a message will be issued, please register the type of economic activity for registration and upload the documents proving self-employment. Then click the Finish button”.

• Temporary benefit for vulnerable households (with score between 65,000 and 100,000)

• Please confirm  whether the temporary benefits is only for households with score between the 65,001 and 100,000 who were in the SSA database before May 1^st or it is also for  households  that have registered in the database after May 1^st  and are assessed with score in that range (we understand it takes a month to compute and verify the score).
• If hh who register after May 1^st are eligible to the temporary benefit, please clearly define the eligibility window: for example, as for the one-off benefit, would families who register before July 1^st and are subsequently assessed with eligible score be eligible to the temporary benefit?

• Unemployment benefit

o   We noted from the data monitoring table in SSA administrative database (downloaded from the ministry’s website) that about 150,000 forma employees have been laid off in May and June. This is a pretty high number corresponding to about 9% of the labor force in Georgia. Are these numbers confirmed by Revenue Service? Do you have more information on the sector of the employer and size of employer/firm.

o   As above, please clarify/confirm the eligibility criteria: are only workers laid off between May 4^th and July 1, 2020 eligible to the benefits?

o   Is yes, is there a plan to extend the window of eligibility?

Looking forward to hearing from you,

Maddalena

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