Organic Agriculture and Rural Tourism Development in Mtskheta-Mtianeti region

Contract partner: Biological Farming Association „Elkana“Country: Georgien Funding amount: € 897.500,00Project start: 01.10.2019End: 30.09.2023

Short Description:

Overall goal

The intended impact of the project is: Poverty reduction through sustainable local economic development in Mtskheta-Mtianeti region.

The project's expected outcome is: Sustainable local development opportunities created in the areas of organic agriculture and rural tourism in Mtskheta-Mtianeti region.

Expected results

The project's expected outputs are:

Output 1: Rural households in Mtskheta-Mtianeti apply improved agricultural practices and implement sustainable local development initiatives

Output 2: Georgian national and local authorities’ capacities are strengthened to create an enabling environment for sustainable development in the Mtskheta-Mtianeti region


Target group / Beneficiaries

The project will reach a total of 2,020 direct beneficiaries in two areas: Tianeti municipality and Lower Pshavi area (located in Dusheti municipality) in Mtskheta-Mtianeti region. 2,000 people (30% women) will benefit from capacity development tailored to the specific value chains under Output 1. This will include the farmers selected to implement small projects for production and business / service development. Under Output 2 the project will target 20 representatives of national, regional and/or local authorities, including Tianeti municipality, the Information-Consultation Centers, the Agency of Protected Areas, the Georgian National Tourism Administration, etc.


Under Output 1, rural households in Mtskheta-Mtianeti will receive support to improve their agricultural practices and start sustainable local development initiatives. The project will develop the capacities of the beneficiaries through training, consultations and study visits for farmers and businesses on organic agriculture and rural tourism development. Obstacles to the development of priority agricultural sectors will be addressed through a business competition open for farmers and businesses. Farmers will be supported to switch from conventional to organic farming. In addition, beneficiaries will be helped in establishing links with market players through attending exhibitions/fairs and workshops.

Under Output 2, authorities’ capacity development needs will be identified and trainings will be held; stakeholders will be brought together for the analysis of the development potential of Tianeti municipality and to contribute to the implementation of some of the priority interventions.


Both target areas experience high levels of rural poverty and unemployment. Women and young people are affected disproportionately. The two sectors with the most significant employment opportunities in the area are agriculture and tourism. However, local households find it difficult to make their living. Small size and fragmentation of land, restricted access to irrigation, inputs and services, lack of agricultural equipment, low quality of seeds and fertilizers as well as limited knowledge lead to low productivity of agriculture and thus low income. Notwithstanding its potential, the scarcity and low standards of services as well as the limited knowledge of entrepreneurs significantly slow down development of the tourism sector and limit the region’s attractiveness. By generating economic opportunities in these two sectors, the project aims to reduce poverty through sustainable local economic development in the region.

project number8366-00/2019
source of fundingOEZA
sector Landwirtschaft
modalityProject-type interventions
marker Environment: 1, Climate change adaptation: 1, Biodiversity: 1, Gender: 1, Poverty: 2
  • Policy marker: are used to identify, assess and facilitate the monitoring of activities in support of policy objectives concerning gender equality, aid to environment, participatory development/good governance, trade development and reproductive, maternal, newborn and child health. Activities targeting the objectives of the Rio Conventions include the identification of biodiversity, climate change mitigation, climate change adaptation, and desertification.
    • 1= policy is a significant objective of the activity
    • 2= policy is the principal objective of the activity
  • Donor/ source of funding: The ADA is not only implementing projects and programmes of the Austrian Development Cooperation , but also projects funded from other sources and donors such as
    • AKF - Foreign Disaster Fund of the Austrian federal government
    • BMLFUW - Federal Ministry for Agriculture, Forestry, Environment and Water
    • EU - Funds of the European Commission
    • Others - various other donors are listed in ADA’s annual business report.
  • Type of Aid – Aid modalities: classifies transfers from the donor to the first recipient of funds such as budget support, core contributions and pooled programmes and funds to CSOs and multilateral organisations, project-type interventions, experts and other technical assistance, scholarships and student costs in donor countries, debt relief, administrative costs and other in-donor expenditures.
  • Purpose/ sector code: classifies the specific area of the recipient’s economic or social structure, funded by a bilateral contribution.
  • Tied/Untied: Untied aid is defined as loans and grants whose proceeds are fully and freely available to finance procurement from all OECD countries and substantially all developing countries. Transactions are considered tied unless the donor has, at the time of the aid offer, clearly specified a range of countries eligible for procurement which meets the tests for “untied” aid.