Main emphasis of Exchange 4 programme, €5.8 million worth, aiming at contributing to reforms at local level, is on things that will be challenge for local self-governments in the EU accession process, it was said at the contract signing ceremony.

Exchange 4 programme provides support to local self-governments in the Serbia`s accession process to the European Union, Secretary General of the Standing Conference of Towns and Municipalities Djordje Stanicic stated today on the occasion of formal contract signing on grants under that programme, funded by the European Union.

Main emphasis of Exchange 4 programme, €5.8 million worth, aiming at contributing to reforms at local level, is on things that will be challenge for local self-governments in the EU accession process, he said.

Key significance of reforms

EU strategy for Serbia 2014-2020 will put a strong accent on issues important for local self-governments and we are here to help, but it is up to you to lead that process forward, head of the EU Delegation to Serbia Michael Davenport said at the ceremony.

He underlined that Serbia has made significant progress, but it will have to continue to invest great efforts in demanding process of reforms that will last several years and added that involvement of local self-governments in this process is crucial.

Minister of Regional Development and Local Self-Government Igor Mirovic assessed that there are many challenges ahead of Serbia in the EU accession process and that the country is expected to do a lot after the beginning of accession negotiations.

Changing the law

He said that it is necessary to change the Law on Regional Development and adopt national regional development plan, which would include special development programme for underdeveloped municipalities

Mirovic advised local self-governments to seek for partners and to associate and he expressed conviction that the Standing Conference of Towns and Municipalities will be a good mediator between EU institutions and local self-governments.

Local self-governments that today have signed contracts on grants, now have access to EU IPA funds, said Minister in charge of European integration Branko Ruzic.

Seventy percent of reforms that have to be carried out are related to the functioning of local self-governments, and the greatest number of regulations that need to be harmonised with the EU legislation is carried out at the local level, emphasised Ruzic.

Result of this project should be better services and better money management in local self-governments, said Ruzic and assessed that the SKGO plays important role in that.

GENERAL INFORMATION ON EU EXCHANGE 4 PROGRAM

EU Exchange 4 Program is an inseparable part of the ongoing process in which the European Union is making efforts to improve the management of local self government units in the Republic of Serbia, and to improve the level of services in the cities and municipalities in order to encourage local development. From 2004, there have been three phases of the Exchange program, and two of them (Exchange 1 and 3) included the grant scheme component intended for cities and municipalities in Serbia.

The overall objective of the program is to contribute to the process of strategic changes at the local level through improvement of administrative capacities and efficiency of service delivery in local governments in Serbia, in accordance with the principles of public administration, in particular with national sector policies and practices of the European Union.

The total value of EU Exchange 4 Programme is 5.8 million Euros, of which 4.5 million is a fund for the implementation of 27 city ​​/ municipal projects, and 1.3 million Euros are earmarked for the implementation of all the three program components.

The program is aimed at strengthening of local self governments in the field of municipal planning, finance and services provision through three components:

Component 1: MUNICIPAL PLANNING AND SLAP IS SUPPORT – Development of municipal plans that are aligned with national priorities and establishment a coherent mechanism for harmonization of local, regional and national strategies and policies, with the support of SLAP IS as quality list of projects (project pipeline).

Supported cities / municipalities under Component 1 (20 LSG supported):

Type of support:

Strategic planning – Local / regional waste management plans

  • Ivanjica 
  • Niš 
  • Negotin 

Strategic planning – Local environment protection programs 

  • Kruševac
  • Novi Sad
  • Novi Bečej

Strategic planning – Local Energy Plans

  • Ćuprija
  • Nova Varoš
  • Paraćin
  • Pirot

Strategic planning – Action plans

  • Rača
  • Krupanj
  • Bogatić
  • Leskovac
  • Čoka
  • Žagubica
  • Bela Palanka

Action planning, Program budgeting (based on the guidelines, outlined municipalities will be supported in developing action plans and program budgets in parallel) 

  • Trstenik
  • Lučani
  • Bačka
  • Topola

Component 2: Support to Municipal Finance – Support to the effective and coordinated implementation of new financial regulations at the local level; use of alternative sources of funding; improvement of financial autonomy and provision of effective mechanisms for dialogue between central and local government levels relating to public finance.

Supported cities / municipalities within Component 2 (11 LSG supported):

Type of support:

Program/ Capital budgeting 

  • Knić
  • Trgovište
  • Gornji Milanovac
  • Kovin
  • Novi Pazar
  • Valjevo
  • Zrenjenin

Municipal bonds For support in municipal bonds issuing process of selection was determinate by adoption of Local decision on borrowing in December 2013 or March 2014. Those LSG which adopt Decision on borrowing first will be supported through the programme. In the case that there are several LSGs that have adopted the decision in the same period, those with better scores will be supported.

  • Šabac

Component 3: EU EXCHANGE 4 GRANT SCHEME*  – Support to municipal projects under the grant scheme aiming at three areas: environment, local economic development and social policy, in accordance with national priorities in these areas, and based on the capacities developed through previous program phases with a strong focus on information and experience sharing – horizontal and vertical level.

For the implementation of local projects, 32 municipal projects have been approved in which realization 77 cities/municipalities in total equally participate.   

Supported cities / municipalities under Component 3:

Environment – Waste management (15 LGS)

  •  Čačak, Ivanjica, Lučani
  • Bogatić, Vladimirci
  • Bajina Bašta, Sjenica
  • Užice, Čajetina
  • Surdulica, Vladičin Han
  • Babušnica, Dimitrovgrad
  • Sremska Mitrovica, Šabac

Local Economic Development – Property management and agricultural cooperatives (35 LSG)

  •  Kovačica, Alibunar
  • Kragujevac, Topola, Batočina, Knić, Rekovac
  • Beočin, Sremski Karlovci, Šid, Čajetina
  • Negotin, Kladovo
  • Pančevo, Zrenjanin
  • Stara Pazova, Inđija
  • Požarevac, Petrovac na Mlavi, Kučevo, Velika Plana, Veliko Gradište, Golubac, Žagubica
  • Lučani, Arilje, Gornji Milanovac
  • Novi Sad, Apatin
  • Voždovac, Rakovica
  • Aleksinac, Ražanj
  • Bačka Palanka, Bački Petrovac

Local Economic Development – Agricultural business cooperation (12 LSG)

  • Lebane, Bojnik
  • Merošina, Blace
  • Svrljig, Niška Banja- Niš, Crveni Krst – Niš
  • Lazarevac, Lajkovac, Ljig
  • Bač, Bački Petrovac

Social protection – social services for the elderly (20 LSG)

  • Veliko Gradište, Požarevac, Golubac, Malo Crniće
  • Alibunar, Kovačica
  • Priboj, Prijepolje
  • Zaječar, Negotin, Majdanpek
  • Topola, Aranđelovac, Smederevska Palanka
  • Žabari, Žagubica
  • Sjenica, Bajina Bašta
  • Rača, Batočina

PROGRAM DURATION

 Program lasts for two years, from May 2013 to May 2015.

Program beneficiaries

Direct beneficiary of the EU 4 Exchange Programme is the Standing Conference of Towns and Municipalities – Association of Towns and Municipalities of Serbia (SCTM).

End users are the cities and municipalities in Serbia and its citizens, who will benefit from improved planning processes and financial management and services provided by local authorities.

The program is funded by the European Union, managed by the European Union Delegation to the Republic of Serbia, and implemented by the Standing Conference of Towns and Municipalities – Association of Towns and Municipalities of Serbia (SCTM).

* The on-going evaluation process will assign to a certain number of cities / municipalities funds for projects under Component 3

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