Reconstruction efforts after the 2008 South Ossetia war
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The 2008 South Ossetia war
caused major infrastructural and economical damage in Georgian, South Ossetian and Abkhazian territory. Many countries promised reconstruction aid to the affected regions.
Additionally, the Brussels
conference raised more than a sum total of $4 billion in loans and grants for the Tbilisi government by 67 states, international financial institutions and private-sector donors. The amount, which would be paid over a three year period, far exceeded the $3.2 billion the World Bank had estimated Georgia would need to rebuild its infrastructure. Of the total, $2 billion would be on grants, with the remaining in low-interest loans covering the 2008-10 period. Most of the money would be put into the public sector, while some $850 million dollars would be invested directly in private companies.
Outgoing Georgian Prime Minister Lado Gurgenidze said, "We are deeply moved and humbled by the demonstration of solidarity and support that we have received," additionally noting the pledges were made despite the ongoing effects of a global financial crisis. He then added that "Every single, euro, dollar and pound will make Georgia stronger, more prosperous, freer, more democratic and more genuinely and thoroughly European. (It) will alleviate, to a significant degree, the human suffering that has resulted in the aftermath of the Aug. 7 conflict." Joint summit host, EU External Affairs Commissioner Benita Ferrero-Waldner, said of the occasion and its outcome that "This is a day of joy." This came after growth projections for Georgia's economy were cut from 9 percent to 3.5 percent with the resulting 127,000 new internally displaced people in and around the new separatist enclaves.
per family). However, there has been serious concerns about the effectiveness of the distribution of Russian aid by South Ossetian authorities.
By March 2009, Russia allocated 2.8 billion rubles
from the Russian federal budget, as part of agreements between the Russian Ministry of Finance and its South Ossetian counterpart, which were based on the treaty signed in September 2008. Russia also allocated an additional 8.5 billion rubles to South Ossetia in order to assist in rebuilding housing, healthcare amenities, chools and communication structure destroyed or damaged during the 2008 war. According to Eduard Kokoity, seventy percent of residential housing and eighty percent of administrative buildings in Tskhinval were destroyed in the Georgian shelling of the city in 2008
.
The Dzuarikau–Tskhinvali gas pipeline
from North Ossetia to Tskhinvali was launched in 26 August, 2009. The pipeline was said to be important to South Ossetia in allowing it to lessen its dependency on gas supplies through the Georgian pipeline network. Georgia had many times cut off supplies to South Ossetia and did so again after the 2008 war. The new pipeline was reported to have cost 15 billion rubles (US$476 million).
2008 South Ossetia war
The 2008 South Ossetia War or Russo-Georgian War was an armed conflict in August 2008 between Georgia on one side, and Russia and separatist governments of South Ossetia and Abkhazia on the other....
caused major infrastructural and economical damage in Georgian, South Ossetian and Abkhazian territory. Many countries promised reconstruction aid to the affected regions.
Georgia
On the sidelines of an International High Level Conference in Belgium on "The Future of Parliamentary Involvement in Global Health and Development," a donors' conference for Georgia on October 21 produced billions of dollars in aid for the country. The United States pledged $1 billion to support economic recovery. This came in addition to nonmilitary aid of nearly $40 million in emergency humanitarian assistance delivered by USAID and the U.S. Defense Department during the crisis. The European Commission added another "up to" €500 million. While others did not disclose their actual pledges, diplomats said Germany had pledged €33.7 million to add to their pre-war offer of €35 million. Sweden also ranked high on the list of most generous donors with €40 million while France pledged €7 million. Japan pledged $200 million in recovery aid over three years, primarily for rebuilding roads and rail systems, but they also joined delegates to urge Georgia to continue progress on democratic and economic reforms. The IMF offered a $750 million loan package, while the EU’s European Investment Bank has offered €200 million in loans to rebuild infrastructure damaged or destroyed.Additionally, the Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
conference raised more than a sum total of $4 billion in loans and grants for the Tbilisi government by 67 states, international financial institutions and private-sector donors. The amount, which would be paid over a three year period, far exceeded the $3.2 billion the World Bank had estimated Georgia would need to rebuild its infrastructure. Of the total, $2 billion would be on grants, with the remaining in low-interest loans covering the 2008-10 period. Most of the money would be put into the public sector, while some $850 million dollars would be invested directly in private companies.
Outgoing Georgian Prime Minister Lado Gurgenidze said, "We are deeply moved and humbled by the demonstration of solidarity and support that we have received," additionally noting the pledges were made despite the ongoing effects of a global financial crisis. He then added that "Every single, euro, dollar and pound will make Georgia stronger, more prosperous, freer, more democratic and more genuinely and thoroughly European. (It) will alleviate, to a significant degree, the human suffering that has resulted in the aftermath of the Aug. 7 conflict." Joint summit host, EU External Affairs Commissioner Benita Ferrero-Waldner, said of the occasion and its outcome that "This is a day of joy." This came after growth projections for Georgia's economy were cut from 9 percent to 3.5 percent with the resulting 127,000 new internally displaced people in and around the new separatist enclaves.
South Ossetia
Russia sent hundreds of workers to rebuild Tskhinvali just weeks after its military routed Georgian forces here, and has promised cash payments for every South Ossetian. South Ossetian Prime Minister Boris Chochiyev said that Russia has promised to pay South Ossetians up to $2,000 each in compensation for war damage. Russia promised to give €350 million reconstruction aid for South Ossetia. In 2008 Russia financed payment of pensions for South Ossetian pensioneers and subsidised families that lost their houses during the Georgian offensive (50 000 rublesRussian ruble
The ruble or rouble is the currency of the Russian Federation and the two partially recognized republics of Abkhazia and South Ossetia. Formerly, the ruble was also the currency of the Russian Empire and the Soviet Union prior to their breakups. Belarus and Transnistria also use currencies with...
per family). However, there has been serious concerns about the effectiveness of the distribution of Russian aid by South Ossetian authorities.
By March 2009, Russia allocated 2.8 billion rubles
Russian ruble
The ruble or rouble is the currency of the Russian Federation and the two partially recognized republics of Abkhazia and South Ossetia. Formerly, the ruble was also the currency of the Russian Empire and the Soviet Union prior to their breakups. Belarus and Transnistria also use currencies with...
from the Russian federal budget, as part of agreements between the Russian Ministry of Finance and its South Ossetian counterpart, which were based on the treaty signed in September 2008. Russia also allocated an additional 8.5 billion rubles to South Ossetia in order to assist in rebuilding housing, healthcare amenities, chools and communication structure destroyed or damaged during the 2008 war. According to Eduard Kokoity, seventy percent of residential housing and eighty percent of administrative buildings in Tskhinval were destroyed in the Georgian shelling of the city in 2008
Battle of Tskhinvali
The Battle of Tskhinvali was a fight for the city of Tskhinvali, capital of South Ossetia. It was the only major battle in the 2008 South Ossetia War. Georgian ground troops entered the city on early 8 August 2008, after an extensive artillery barrage. Their advance was stopped by South Ossetian...
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The Dzuarikau–Tskhinvali gas pipeline
Dzuarikau–Tskhinvali pipeline
The Dzuarikau–Tskhinvali pipeline is a natural gas pipeline running from the village of Dzuarikau in North Ossetia to Tskhinvali, South Ossetia. Construction started in 2006, and gas supplies are expected to start in September, 2009.-History:...
from North Ossetia to Tskhinvali was launched in 26 August, 2009. The pipeline was said to be important to South Ossetia in allowing it to lessen its dependency on gas supplies through the Georgian pipeline network. Georgia had many times cut off supplies to South Ossetia and did so again after the 2008 war. The new pipeline was reported to have cost 15 billion rubles (US$476 million).