Reconstruction efforts after the Russo-Georgian war
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 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 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. 
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 rubles 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).
- "Parliament of Georgia". Parliament.ge. Retrieved 2012-09-22.
- "Georgia donors' conference set for October 21 in Belgium < Belgian news | Expatica Belgium". Expatica.com. Retrieved 2012-09-22.
- "United States Leads Surge of Donors Rebuilding Georgia". America.gov. 2008-10-22. Retrieved 2012-09-22.
- "Surprisingly large financial aid package pledged to Georgia < European News | Expatica Belgium". Expatica.com. Retrieved 2012-09-22.
- [dead link]
- Russia sends cash, builders to S. Ossetia
- South Ossetia Becomes Thorn in Russia's Side
- 19:02 / 5.9.2008. "ДНИ.РУ ИНТЕРНЕТ-ГАЗЕТА ВЕРСИЯ 5.0 / Россия отправила деньги пенсионерам Осетии". Dni.ru. Retrieved 2012-09-22.
- "Russian government will conclude an agreement on financial aid with Abkhazia and South Ossetia". REGNUM News Agency. 2 March 2009. Retrieved 2009-08-05.
- "Russia signs financial aid deals with Abkhazia, South Ossetia-2". Moscow: RIA Novosti. 17 March 2009. Retrieved 2009-08-04.
- "Eduard Kokoity: I rule out a new Georgian aggression". RIA Novosti. 3 August 2009. Retrieved 2009-08-05.
- "New gas pipeline for S.Ossetia costs $476 mln - Gazprom". RIA Novosti. 2009-08-26. Retrieved 2009-08-28.