Official title of the project


Project information

Public Administration Reform – Local Self Government (LSG)
Region / City
Total budget of programme / project

6.415 M

5,95 M, EU contribution

0.465 M local government co-financing  contribution to grant scheme

Implementation period
2013. May - 2015. Apr
Expected results

Component 1

  1. Specific relevant sector strategic documents and/or action plans with project pipelines, linked to priority national policy requirements, developed in selected municipalities.
  2. Upgraded mechanism for harmonization of municipal strategic documents with regional and national strategies and policies
  3. SLAP IS is institutionalized and quality project pipeline of relevant municipal and inter-municipal infrastructure projects, in line with the national legislation and EU procedures
  4. SLAP IS is used as a transparent tool for operational planning (local, regional and national plans), budgeting, preparation and financing of infrastructure projects with the aim of  achieving the efficient development aid based on the sector approach

Component 2

  1. LSGs enabled to implement new financial regulations and related models for programme budgeting, linked with capital budgeting and use of alternative sources of capital investment finance.
  2. LSGs own source revenues increased through enhanced functioning of Local Tax Administrations (LTA) and the  institutional dialogue between local and central level strenghtened through support to representatives of LSGs in the Intergovernmental Finance Commission

Component 3

  1. Quality municipal projects in indicative areas (environment, social policy and LED), developed in line with established national priorities, selected for financing
  2. Municipal services and inter-municipal cooperation in specific national priority areas improved through implementation of municipal projects
  3. Lessons learned, innovative approaches, know-how and best practices deriving from municipal projects in specific sectors covered by the grant scheme projects shared and used for future planning.

Ministry for Regional Development and LSG; Standing Conference of Towns and Municipalities (SCTM); Ministry of Finance. Local Self Government and relevant line Ministries (Ministry in charge of Environment, Economy, Agriculture, Social Wellfare

Target Groups

Local Self Government of the Republic of Serbia

Summary of the project

EU Exchange 4 programme is an inseparable part of the on-going process of the EU efforts focusing on improving municipal management and service delivery by municipalities, aimed at fostering local development, together with strengthening the SCTM to provide services, information and tools to assist the municipalities in these efforts. The programme aims to enhance administrative capacities and effectiveness of LSG service provision in Serbia in line with the principles of Public Administration Reform Strategy, specific sector national, regional and local policies and EU practices.

Since 2004, there have been three municipal Exchange programmes. Two of them (Exchange 1 and 3) included a grant scheme targeting Serbian cities and municipalities. Although in the previous stages the Exchange has provided valuable contributions to the central government’s efforts by supporting strategic change at the local level, the new phase of the Programmes goes a step further and serves as a platform for further aligning and harmonization of priorities between the national and local level.

-Support to enforcement of national polices at the local level  across various identified areas importan t for local development

-Support to standardization of services at the local level in various areas of   waste management, property managament, agriculture cooperation and social services thorugh stronger intermunicipal cooperation and active involvment of central government in the process

-Dissemination of good practices, lessons learned on strategic changes at the local level horizontally (among LSGs) and vertically (between central and local level)

Programme/Project objectives

The purpose of the Programme is to strengthen LSG units in the areas of municipal planning, finance and service provision, building on the results of the previous phases of capacity building support to LSGs, through the following specific objectives:

Objective 1:

Support implementation of relevant national priorities through linking LSG sector strategies and action plans and development of pipeline of specific sectors municipal infrastructure projects

Objective 2 –

Support fiscal decentralization through facilitating implementation of new financial regulations in area of programme budgeting, tax administration and alternative sources of financing

Objective 3 –

Support implementation of priority national policies in local economic, social and environmental sectors at local level through EU EXCHANGE 4 Grant scheme projects.

More details on project
  1. direct grant contribution to the SCTM


Budget: 1.300.000 EUR

Brief summary of the project:

EU Exchange  programme will further support strategic planning, including sector strategic and action planning support (at least 10 LSGs in developing sector plans and at least 10 LSGs in developing action plans), as well as support harmonization of municipal strategic documents with national/regional strategies and policies. Also, EU Exchange 4 will directly address the issues of formal integration of SLAP IS into national procedures and consequently the use of SLAP IS as a project pipeline for identification of the municipal infrastructure projects for national and EU funding. Further, technical assistance wil be provided in programme and capital budgeting development, including alternative source of financing (at least 10 LSGs in developing programme budgets, at least 5 LSGs in capital budgets and at least 2 LSGs in municipal bonds process issuing) as well as  LTA support and institutionalization of dialogue between local and central level. Through implementation of grant scheme, the EU Exchange 4 will contribute to achievement of strategic national priorities in environment, local economic development and social welfare at local level.

  1. Grant scheme (EuropeAid/134435/L/ACT/RS)


Budget: 4,650 M (EU contribution)

Brief summary of the project:

Exchange 4 grant scheme objective is to contribute to achievement of strategic national priorities in environment, local economic development and social welfare at local level. Programme's focus is on the enforcement of the specific national sector policies. Following priorities and objectives were identified for support under Exchange 4 Grant scheme:

o     Priority 1 – ENVIRONMENT- Improvement of solid waste management at local level.

o     Priority 2 - LOCAL ECONOMIC DEVELOPMENT - Raising of competitiveness of local economy through improving property management and facilitating business cooperation

o     Priority 3 – SOCIAL WELFARE- Introduction and improvement of social protection services for elderly population at local level.

This Call, under Lot 2 also includes 600.000 EUR for supporting projects with cross-border impact with FYROM and will be exclusively opened for municipalities from Pcinja and Jablanica districts. 

Call for proposals was launched in May 2013 and is currently under evaluation. Selected grant projects are expected to start with implementation in January 2014 and to last 12 months.