Program for development of municipalities in southwest Serbia (PRO) – multimillion investments in eight municipalities in that part of Serbia

(New multimedia center in Novi Pazar)

The editors of eKapija have recently had an opportunity to get familiar with what have been done and will be done within the scope of the very ambitious Program for development of municipalities in southwest Serbia (PRO).

We talked with Marko Vujačić about the projects and the most interesting details of that conversation are given below.

eKapija: Mr Vujačić, which investments have been realized in six municipalities of southwest Serbia through PRO program so far ?

Total of 24 infrastructural projects worth over 2m EUR were finished in the first phase of the Program for development of municipalities in southwest Serbia (PRO), of which realization started in July 2006. There was a wide variety of projects: we had one school built and another three partially refurbished, we had three kindergartens rehabilitated and new pediatric dispensary built and we had a bridge and local road reconstructed and municipal hot water pipeline built, etc.

(future regional dump Nova Varoš)

The aim all projects is the enhancement of living standard of the people who live in this area and what is very important is that their results are visible - the same moment. However, infrastructural projects are only one of numerous components of PRO program. With our support, Novi Pazar, Nova Varoš, Priboj, Prijepolje, Sjenica and Tutin have designed their strategies for sustainable development. We also backed development of modern municipal catering centers in Sjenica and Nova Varoš.

eKapija: Can you tell us something more about the projects you plan to realize in the following period?

In the second phase of PRO program, of which realization already started and should last prior to end of year 2009, the focus will be on intermunicipal projects, that is, on the financial support (of about 3m EUR) to the initiatives that are significant for broader territory. These funds will be primarily invested in supply of professional assistance in the design of project-technical documentation.

We are also going to realize 12 infrastructural projects in Ivanjica and Raška, which joined PRO program in its second phase. The value of these infrastructural projects will exceed the amount of 650,000 EUR because Ivanjica and Raška provided 40% of the funds instead of earlier defined 10%. The real partnership, isn't it?

eKapija : Why have you decided to assist in design of project-technical documentation ?

Our decision is not accidental. We want all municipalities to prepare the documentation that will make it possible for them to apply for significant grants of various national and international funds, especially pre-accession funds of European Union (EU). Design of quality documentation is absolutely necessary step in the process of attracting investments.

(reconstruction of facade in Raška's center)

eKapija : Which projects are you going to support in this way ?

Within the scope of broader project "Development of Golija“, which is significant for Ivanjica, Novi Pazar and Raška, we are going to back design of project documentation that concerns water supply systems, electricity, wastewater treatment and construction of tourist road. We will also support design of land-utilization plan for Golija mountain. Our estimates are that 500,000 EUR will be spent on these activities.

Also, we want to pay special attention to the projects for protection of valleys of the Lima and Ibar rivers by designing project documentation for wastewater collecting, draining and treatment. We will also work on the regulation of the riverbed of the Raška river and we will provide 300,000 EUR for that purpose.

eKapija : Will you provide more than just technical support in some case?

We plan to back completion of development of regional dump for Nova Varoš, Priboj and Prijepolje by financing design of the dump management study, as well as construction of access road and procurement of machines that are necessary for the work of the dump. About 500,000 EUR will be invested in this project through PRO program.

(Service center in Sjenica)

eKapija : Have you already selected contractors, subcontractors, suppliers of equipment, etc.?

The United Nations Development Program (UNDP) is the organization that is responsible for realization of PRO program, as well as for selection of contractors. All contractors are selected in a transparent way and in accordance with the highest international standards and local regulations.

eKapija : Which institutions have taken part in selection of projects?

The projects are selected in association with the municipalities and relevant local and national institutions. Realization of the projects is approved by the Administrative Board that consists of the representatives of the Ministry of Finance, the Ministry of Economy and Regional Development, donors, UNDP and eight municipalities that are included in PRO program. Finally, all projects are approved by town halls.

eKapija : Which funds will be used for financing of elaboration of projects?

PRO's donors are European Union (EU) and Swiss Development and Cooperation Agency (SDC). The municipalities also participate in realization of projects by providing minimum 10% of the project's value. This percentage amounted to about 25% in the first phase. Luckily, similar trend is present in the second phase as well.

(Kindergarten "Dečja radost")

eKapija : When do you expect the projects to be adopted?

The Administrative Board has already given consent for realization of aforementioned intermunicipal projects. What we need now is that the municipalities that are interested in realization of certain individual projects reach mutual agreement. Nova Varoš, Prijepolje and Priboj have already agreed on completion of the regional dump.

eKapija : Does PRO deal with development of industrial zones ?

The agreement has recently been signed with two consulting companies, one of which is renowned local company, while the other is exceptionally famous foreign consulting company. These companies will carry out analysis of the current situation, they will map earlier identified or suggested locations for industrial zones. They will also carry out comparative analyses and give recommendations about number, locations and profiles of industrial zones.

These consulting companies will also take forming of business incubator center for small and mid-sized enterprises into consideration. Concerning the fact that large number of municipalities already think about development of industrial zones on their territories, this study should provide clear recommendations based on expert analysis.

Irrational spending of funds can be avoided in that way because it is for certain that the majority of potential industrial zones would fail to attract the investors and operate successfully. This issue also requires joint approach of the municipaities.

(Pediatric Clinic in Priboj)

eKapija : Have you identified some joint development directions in eight municipalities that are included in PRO program?

PRO backed design of strategies for sustainable development in six municipalities and these strategies define priority development directions. There are differences between the priorities and they depend on the special characteristics of individual municipalities. However, we have also notices some joint development priorities: development of SME sector and employment, environment protection, enhancement of quality of public utility services and development of suitable infrastructure. Development of agricultural sector through promotion of production and healthy food processing is identified in several municipalities as a very important development priority. As we sometimes like to say, the municipalities are slowly discovering their future through strategic planning of sustainable development.

eKapija : At the end of our conversation, would you share some details related to PRO program that you are especially proud of ?

We take pride in the fact that PRO is the result of cooperation between European Union and Government of Switzerland, our donors, UNDP and the Government of Serbia whose efforts to reduce poverty and reform administration we support. In the end, the most important in this project are key partners, municipalities and their citizens: Novi Pazar, Ivanjica, Nova Varoš, Priboj, Prijepolje, Raška, Sjenica and Tutin.

We are proud of the fact that the team of PRO program primarily consists of local experts, mainly from the territory that we work on. With their professional know-how and experience, they give immeasurable contribution to PRO program.