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Background:* 160+ local governments in Serbia* Changes since October 2000 (municipal role re: LED)Purpose:To develop the skills of local governments and local business groups to foster economic growth and job creation, assist them to put these concepts and skills into practice, and to create a business friendly environment where the private sector can flourish. The Urban Institute – a USAID Contractor
Duration: Funding: Municipalities: Grant fund: Leveraged resources: 60 months $24.5 million 24 (10 – Phase I + 14 – Phase II) $3 million ($1.5 – Phase I + $1.5 – Phase II) $3,000,000 Municipalities (Phase I) $200,000 (est) CRDA $150,000 (est) ENTRANSE/BIs $300,000 Policy Study Fund from OSI $150,000 (est) UNDP Training of LED Officials $100,000 (est) DAI through cost sharing $50,000 GDA Indjija WiFi Timeline and resources: The Urban Institute – a USAID Contractor
The goal of MEGA program is to help local governments to: • Create new jobs; • Establish new businesses; • Attract investments; • Establish Private-Public Partnerships. Targets: The Urban Institute – a USAID Contractor
Phase I MEGA Municipalities: Nis MEGA Office Locations The Urban Institute – a USAID Contractor
Provide support for the development and implementation of policies designed to enhance an enabling environment for LED. Component 1 main objectives are: Establish a National Alliance for Local Economic Development (NALED) Provide technical assistance in drafting of legislation by the Standing Conference and Government ministries, including legislation concerning property devolution, business improvement districts (BIDs), industrial parks, land reform, foreign investments (FDI), and intergovernmental finance reform. Component 1: National Level Policy Advocacy The Urban Institute – a USAID Contractor
Declaration of Support to Establishing NALEDhas been signed by more than 50 representatives of: • Government • Domestic and foreign companies • NGOs • International organizations The Urban Institute – a USAID Contractor
US Ambassador, USAID Mission Director and ten mayors of MEGA at Belgrade City Hall. NALED inaugurated at Belgrade City Hall on the 6th of March 2006, gathering more than 200 participants. The Urban Institute – a USAID Contractor
Miodrag Babic, President of Hemofarm - the biggest Serbian pharmaceutical company, is one of 50 signatories of the Declaration of Support to Establishing NALED. From left to right: the US Ambassador to Serbia and Montenegro, Michael C. Polt and Boris Tadic, President of Serbia, signing the Declaration of Support to Establishing NALED. The Urban Institute – a USAID Contractor
Provision of technical assistance, material support and training to each of the participating municipalities to enable them to support the economic development of the community. Component 2: Local Economic Development • Component 2 main objectives are: • Establish municipal LED offices with trained personnel • Formulate economic development strategic plans • Implement LED projects involving private and public sector The Urban Institute – a USAID Contractor
Zrenjanin – Local Economic Development Office (LEDO) Opening The US Ambassador to Serbia, Michael C. Polt, walking through the BID Zone in Krusevac The Urban Institute – a USAID Contractor
Component 3: Private Sector Development (scheduled to commence in June 2007) • Continuing the work of USAID CRDA (Community Revitalization through Democratic Action) • Provide technical assistance and training to business associations to enable them to meet the needs of their members • Build partnerships between municipalities and business associations The Urban Institute – a USAID Contractor
Component 4: Municipal Capacity Building • Provide technical assistance and training for municipal staff to enable the municipality to better support economic development. • Component 4 main objectives are: • Improve the provision of municipal services to businesses and investors • Enhance the capacity of local governments to finance the provision of infrastructure improvements needed to promote LED • Improve access of local firms to municipal procurement opportunities • Enhance the role of municipalities in privatization procedures • Streamline business permitting The Urban Institute – a USAID Contractor
Key Accomplishments to date: • Law on Local Government Finances adopted on July 14, 2006 • 7 out of 10 LED offices opened and functioning • LED Strategic Plans completed in 6 out of 10 municipalities • NALED officially registered and working groups initiated • The first Training Center for re-education and skill development opened in Indjija (50 jobs) • Deployment of Credit Analysis Tool (CAT) initiated • Capital Investment Planning (CIP) process initiated on a pilot basis in two municipalities The Urban Institute – a USAID Contractor
Loznica – One of the three municipalities selected at the “Invest in Serbia” competition The Urban Institute – a USAID Contractor
Indjija – One of the three municipalities selected at the “Invest in Serbia” competition The Urban Institute – a USAID Contractor
End of Presentation The Urban Institute – a USAID Contractor