usaid sustainable local development project

USAID Sustainable Local Development Project

USAID-SEIO Consultative Monitoring under

USAID Assistance Agreements: 169-AA-10-EG/001 and 169-AA-10-DG/001

Susan Kutor, USAID/Serbia Economic Growth Office Director

February 28, 2012

USAID Sustainable Local Development ProjectSEIO Aid coordination sector: Local Government and Local Infrastructure informal groups

Budget and Duration

Total Life of Project funding: $21.7 millionDecember 2010 – December 2015

Implementing Partner

Chemonics InternationalChief of Party: Patrick O’Mahony

Objective A More Competitive Market Economy (EG)Government Operations Improved (DG)

Agreement 169-AA-10-EG/001 and 169-AA-10-DG/001

Components Inter-Municipal Cooperation Local-Government Administration Public ParticipationYouth Development Business Enabling Environment

USAID Sustainable Local Development Project 2

CONSULATIVE PROCESS TO DATE

• March 2011 - USAID consulted with GoS counterparts at the workshop which included representatives of 10 ministries and agencies, donors, and others in order to ensure coordination and cooperation from the very first initial stage of the project.

• Date of USAID-GoS work plan reviews:

Last review: September 2011

Next review: September 2012


STATE OF IMPLEMENTATION

• Eight Inter-Municipal Cooperation (IMC) partnerships have been formally established, with a total of 32 participating municipalities/cities.

• First formal inter-municipal cooperation agreements, which have been established pursuant to the Law on Local Self Government in Serbia.

• Priority projects identified by IMCs; IMC working groups are currently adopting action plans for inter-municipal project initiatives; USAID to support development of select projects.


STATE OF IMPLEMENTATION (continued)

• Niche support helped to leverage more substantial donor funding (Leskovac Green Zone; Novi Sad training center; Pester Agribusiness Center).

• USAID is helping municipalities to prepare cross-border cooperation project applications for EU funding.

• PPP: Manuals completed; Possible public-private partnerships identified.

• Training of trainers conducted for monitoring of Public Utility Companies.

• Youth entrepreneurship supported through mentoring program.


INDICATORS


Indicator Baseline2011 Target

2011 Actual

2012 Target

Number of business friendly municipalities 8 11 17 13

Number or inter-municipal projects in SLAP system rated as fully prepared

0 0 0 1

Number of public services in municipal clusters in support of business development

N/a 0 0 5

Number of PPPs in delivery of public services 0 0 0 1

Number of partner municipalities implementing mechanisms to improve management practices

N/a 0 0 7

KEY CONTRIBUTIONS FROM GOS PARTNERS FOR YEAR ONE

• Law on Concessions/PPPs adopted • Law on Public Property enacted • Law on Public Debt adopted, allowing public issuance of municipal bonds • MERD supported NALED Business Friendly Certification program• MoUs with MERD, Ministry of Youth and NES in development


OBSTACLES AND PROPOSED SOLUTIONS

• Issue: USAID had targeted an increase in local government own source revenues. Under the Law on Financing of the Local Governments (Oct 2011), more than two-thirds of the local governments have benefited from a budget increase for capital expenditures.

• Risk: Demotivation of the local self-governments to mobilize any efforts in the reform of the original source revenues (property tax).

• Solution: USAID + partners are exploring two possible activities: – Piloting program budgeting in the area of capital investments in order to assist

municipalities to efficiently plan and dispose of the new revenues; and – Assisting local self-governments to upgrade management of those revenues

that are directly linked to particular IMC initiatives (for example, sojourn tax – tourism projects).


OBSTACLES AND PROPOSED SOLUTIONS

• Issue: Establishment of an accredited distance learning program for public officials.

• Risk: Although there are positive elements, there is an issue of sustainability of the initiative.

• Solution: Map the obstacles and discuss with the GoS the possible way forward after the elections.


DISCUSSION


usaid sustainable local development project

Documents