This assessment report presents the results of a study focused on the Sioni Reservoir watershed, which is subject to seasonal sediment loads affecting the sustainability of water for hydropower generation and irrigation. The study reveals the major causes of landscape degradation within target watershed and sediment loads to the Sioni Reservoir affecting the suitability of water for irrigation and the lifetime of the dam. The study also identifies the main interventions for landscape restoration and provides a brief analysis of the institutional and policy gaps and recommendations that are applicable for other watersheds in the region as well.