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 Project
SEIO Aid coordination sector: Local Government and Local Infrastructure informal groups
Budget and
Duration
Total Life of Project funding: $21.7 million
December 2010 – December 2015
Implementing
Partner
Chemonics International
Chief 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 Participation
Youth Development
Business Enabling Environment
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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
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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.
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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.
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INDICATORS
Indicator
Baseline
2011
2011
2012
Target Actual 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
0
0
7
N/a
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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
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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).
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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.
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DISCUSSION
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