Official title of the project

Municipal Support Programme IPA 2007“Good local governance, planning & service delivery”

Project information

Region / City
Total budget of programme / project


Implementation period
2010. Jan - 2013. Jan
Expected results

Component 1 – Municipal planning

  • Methodological framework for developing local sustainable development strategies (LSDS), to achieve integrated economic, social and environmental development, including consultations, adopted and applied by at least 15 cities, towns or municipalities
  • Action plans for implementing the LSDS strategies developed and agreed by at least 12 cities, towns or municipalities

Component 2 – Municipal finance

  • Programme budgeting successfully introduced to LSG and applied by local authorities
  • Local tax policies consolidated and simplified, where appropriate
  • Pilot initiative on municipal bonds successfully launched, with up to five municipalities placing bonds issues
  • Review of lessons learned from municipal bonds pilot initiative and ways forward prepared and presented to SCTM, MoF, MHMPALSG and municipalities
  • Capacity to administer local revenues, plan for capital investment

Standing Conference of Town and Municipalities (SCTM) and Ministry of Human and Minority Rights, Public Administration and Local Self-Government (MHMPALSG). Municipalities all over Serbia.


Consortium led by GIZ International Services and including VNG International, Project Management Group and Baines Babic Ltd.

Summary of the project

Due to its wide coverage of topics and volume the project has a key function in local self government development in Serbia. In several of its activities it is seen as a pilot to demonstrate feasibility, to draw lessons learned and to disseminate these to a wider target group. This applies especially to the introduction of Programme Budgeting and the Municipal Bonds. With the National Training Strategy for Municipal Servants the way shall be paved for setting up the necessary structures and systems to respond to the Human Resources Development needs in the municipalities by that enabling them to better fulfil their tasks given by the various laws. The Exchange3 grant scheme delivers direct support to municipalities in various forms of intervention on basis of the projects proposed and applied by them during an open process of selection through public tendering. The key role of this project is also reflected in its visibility strategy. The project also supports the communication activities, e. g. by editing the quarterly news of the MHMPALSG.

Programme/Project objectives

The main goals are:

  • To improve the level of Action Planning in the selected municipalities and to identify implementable projects
  • To improve the level of Sector Planning in the selected municipalities, and based on this experience to derive model approaches per sector in cooperation with the relevant stakeholders, e. g. other ministries
  • To support the introduction of new financial planning and budgeting methods in cooperation with the relevant stakeholders, e. g. MoF
  • To improve the level of property tax collection in selected municipalities
  • To develop a National Training Strategy for Municipal Servants
  • To develop and deliver “service packages” to selected municipalities in cooperation with SCTM
  • To improve the administrative efficiency of municipal operations based on

Specific objectives

The overall objective of the project is to contribute to improved governance and economic development in Serbia, through support to a broad range of aspects of the decentralisation of responsibilities and competences from central to local level. The specific objectives of this project are:

  • To improve the capacities for good governance and municipal management at the local level,
  • To improve local services to citizens and enhance local economic development,
  • To strengthen the Standing Conference of Towns and Municipalities, and
  • To enhance central-local government cooperation.