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 60% of the cost of the rehabilitation works for tea plantation(s) owned by the Program beneficiary (except for agricultural cooperatives);
• In the amount of 70% of the cost of the rehabilitation works* for state-owned tea plantation(s)* received on lease by the Program beneficiary (except for agricultural cooperatives).

Beneficiary selection criteria:
• Tea plantation(s) owned by the Program beneficiary*(except for agricultural cooperatives) or selected by the Program beneficiary and to be received on lease from the State, which is(are) subject to rehabilitation, shall not be less than 3 ha and more than 300 ha;
• The Program beneficiary shall have enough funds (in the case of rehabilitation of own tea plantation – no less than 40% 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 30%) to provide own co-financing of the cost of rehabilitation works; a notice from the bank on the existence of appropriate amount of money on the beneficiary’s bank account;
• At the time of signing the Agreement on Co-financing, the Program beneficiary 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;
• The primary tea leaf processing plant of the capacity relevant to the rehabilitating tea plantation area/planned crops of green tea leaves shall be the ownership of the Program beneficiary. If the Program beneficiary does not have such plant in its ownership at the time of applying for co-financing, it shall submit a plan for building the plant at a stated time. The duration of building the plant shall not be more than 36 months from the effective date of the Agreement on Co-financing*. The plant capacity shall be defined as follows:
- the withering/fixation-withering machine performance of no less than 40 kg a day per ha of the rehabilitating area;
- the amount and productivity of tea leaf rollers – the productivity of tea leaf rollers shall match the withering/fixation-withering machine performance, and the productivity of each roller shall not be more than 50 kg/h;
- the drying machine performance relevant to the entire tea crops to be harvested from the rehabilitating tea plantation (calculated per ha).
 

The Program beneficiary (except for agricultural cooperatives) 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, put into operation and equipped (purchase and installation of devices) within 36 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;
- Ensure that the tea leaf processing plant is equipped (purchase and installation of devices) within no later than 36 months from the effective date of the Agreement on Co-financing.
• Ensure that the Hazard Analysis and Critical Control Point (HACCP) is implemented at the plant within no later than 42 months from the effective date of the Agreement on Co-financing, which shall be inspected by the LEPL "National Food Agency" (the NFA) or certified by the International Accredited Certifier with the selection of the Program beneficiary;
• If the Program beneficiary owns a tea leaf processing plant and it is not planned to build a new plant, a joint commission of the Agency and the LEPL "Agricultural Research Center" shall confirm that the existing tea leaf processing plant meets the criteria;
• During 2 years following the 36 month period from the effective date of the Agreement on Co-financing, ensure that the production plan is performed of no less than:
- 500 kg finished products per ha (bulk tea);
- 250 kg finished products per ha (bulk tea) if produced bio tea.
• 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;
• 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.