Conditions of financing:

Within the scope of this Program, the Agency shall provide co-financing of the rehabilitation works for the tea plantations owned by the Program beneficiary* and/or by the State but received on lease according to the terms of this Program under the following conditions:

• In the amount of 80% of the cost of the rehabilitation works* for tea plantation(s) owned by an agricultural cooperative;
• In the amount of 90% of the cost of the rehabilitation works* for state-owned tea plantation(s) received on lease by an agricultural cooperative.

 Beneficiary selection criteria:

• Tea plantation(s) owned by an agricultural cooperative or received on lease from the State within the scope of the Program, which is(are) subject to rehabilitation, shall not be less than 3 ha and more than 50 ha;
• No less than 75% (3/4) of agricultural cooperative members shall bring the tea plantations into the cooperative, each member bringing no less than 0.25 ha;
• An agricultural cooperative shall have enough funds (in the case of rehabilitation of own tea plantation – no less than 20% of the cost of the rehabilitation works; while in the case of state-owned tea plantation to be received on lease within the scope of the Program – no less than 10%) to provide own co-financing of the rehabilitation works, which shall be evidenced by the bank statement on availability of funds on the account;
• An agricultural cooperative shall not have any tax liability and shall not be recorded in the debtors’ registry;
• No mortgage, lien, usufruct, encumbrance or legal restriction shall be registered with regard to the tea plantation;
• When applying for co-financing, an agricultural cooperative shall submit a time schedule for the construction/purchase of the tea leaf processing plant building. The duration of construction/purchase shall not be more than 24 months from the effective date of the Agreement on Co-financing*. If an agricultural cooperative owns the building, its area shall be no less than 70 m², where the primary tea leaf processing plant shall be arranged.  

An agricultural cooperative shall be obliged to:

• ensure that the submitted agro-technological plan* is fulfilled within 36 months from the effective date of the Agreement on Co-financing*;
• ensure that the tea leaf processing plant is built and put into operation within 24 months from the effective date of the Agreement on Co-financing according to the following time schedule:

        - Submit the permit for tea leaf processing plant construction within no later than 12 months             from the effective date of the Agreement on Co-financing;

        - Submit the report on putting into operation the tea leaf processing plant building within no               later than 24 months from the effective date of the Agreement on Co-financing.

• Within 24 months after receiving the primary tea leaf processing machinery, equipment and inventory from the Agency, ensure that the presented production plan* is fulfilled every year.
• During the lease period of state-owned tea plantation* (if any), ensure that tea is grown every year, in confirmation of which it shall submit a relevant report issued by the LEPL "Levan Samkharauli National Forensic Bureau" to LEPL "National Agency of State Property" once every 5 years;
• Before receiving the primary tea leaf processing machinery, equipment and inventory from the Agency free of charge, to secure its own obligations, mortgage its own agricultural land, on which the building/facility is placed;  
• To secure the performance of its obligations, mortgage its own rehabilitating tea plantation within the scope of the Program, in favour of the Agency, before receiving co-financing. If the Program Beneficiary fails to allocate the rehabilitating area from its own tea plantations within the scope of the Program (assignment of new cadastral number), the entire area of the tea plantation owned by the Program beneficiary under one cadastral number shall be mortgaged.

       *Note - Defintion of Terms.