0 Overall objective: To contribute to sustainable development of the South East and South West Serbia through improved coordination between national and local authorities, more favourable environment for employability, business and infrastructure growth, and enhanced good governance and social inclusion. Purpose: Enhanced local governance, improved conditions for infrastructure development, better planning and management capacities, advanced business enabling environment, as well as supporting the development of social inclusion and employment policies. Total budget: 24.46 million Euros - European Union provides 19.6 million Euros and the Government of Switzerland 4.86 million Euros 17.46 million Euros - implemented by the United Nations Office for Project Services – UNOPS Seven million Euros - implemented through the Ministry of Finance’s Department for Contracting and Financing of EU Funded Programmes Start date: 8 May 2014 End date: 30 March 2018 Programme coverage: Novi Pazar, Ivanjica, Nova Varoš, Priboj, Prijepolje, Raška, Sjenica and Tutin, in the South West Serbia Prokuplje, Blace, Žitorađa, Kuršumlija in Toplica District Leskovac, Bojnik, Vlasotince, Lebane, Medveđa and Crna Trava in Jablanica District Vranje, Bosilegrad, Bujanovac, Vladičin Han, Preševo, Surdulica and Trgovište in Pčinja District Brus in Rasinska District Aleksinac, Gadžin Han, Doljevac, Merošina and Svrljig in Niški District Babušnica, Bela Palanka in Pirotski District Knjaževac in Zaječarski District. Donors: The European Union The Government of Switzerland The Government of the Republic of Serbia Implementing partner: United Nations Office for Project Services (UNOPS) Report date: 28 September 2018 Period covered: 8 May 2014 – 30 March 2018 1 Table of Contents ACRONYMS .................................................................................................................................. 3 EXECUTIVE SUMMARY ................................................................................................................. 4 REVIEW OF PROGRESS AND PERFORMANCE ................................................................................. 6 POLICY AND PROGRAMME CONTEXT PROGRESS .................................................................................... 6 PROGRESS TOWARDS ACHIEVING OBJECTIVES ...................................................................................... 9 PROGRESS TOWARDS ACHIEVING RESULTS ........................................................................................ 12 Result 1 ......................................................................................................................................... 12 Result 1 – Activities ...................................................................................................................... 16 Result 2 ......................................................................................................................................... 21 Result 2 – Activities ...................................................................................................................... 25 Result 3 ......................................................................................................................................... 32 Result 3 – Activities ...................................................................................................................... 35 Result 4 ......................................................................................................................................... 40 Result 4 - Activities ....................................................................................................................... 41 MANAGEMENT AND COORDINATION ......................................................................................... 44 CONTRACTUAL ARRANGEMENTS .................................................................................................... 44 PROGRAMME STEERING COMMITTEE .............................................................................................. 44 FINANCE................................................................................................................................... 45 HUMAN RESOURCES ................................................................................................................... 45 PROCUREMENT AND GRANTS ........................................................................................................ 46 LOGISTICS ................................................................................................................................. 46 REPORTING ............................................................................................................................... 47 MONITORING ............................................................................................................................ 47 ASSUMPTIONS AND RISKS .......................................................................................................... 47 ASSUMPTIONS ........................................................................................................................... 47 RISKS AND ISSUES ....................................................................................................................... 48 QUALITY AND SUSTAINABILITY ................................................................................................... 49 QUALITY .................................................................................................................................. 49 SUSTAINABILITY ......................................................................................................................... 50 LESSONS LEARNED ..................................................................................................................... 53 LFM – PROGRESS AGAINST INDICATORS IN LOGICAL FRAMEWORK MATRIX ................................ 56 2 Acronyms ACES Association of Consulting Engineers of Serbia APG Agricultural Producer Group AoR Area of Responsibility CAS Citizens’ Advisory Services CB The Government of Serbia Coordination Body for Preševo, Bujanovac, and Medveđa CIP Capital Investment Plan CFCU Department for Contracting and Financing of EU Funded Programmes CFP Call for Proposal CIF Citizens’ Involvement Fund CSO Civil Society Organisation DEU Delegation of the European Union EU European Union FIDIC The International Federation of Consulting Engineers GEM Gender Equality Mechanism GG Good Governance GI Geographical Indication GoS Government of Serbia HR Human Rights LSG Local Self Government MESTD Ministry of Education, Science, and Technological Development MEI Ministry of European Integration MCTI Ministry of Construction, Transport, and Infrastructure MSE Micro and Small Enterprises MSP Managing Successful Programmes MTTT Ministry of Trade, Tourism and Telecommunications MPALSG Ministry of Public Administration and Local Self-government (MPALSG) NGO Non-governmental Organisation PPF5 Project Preparation Facility 5 PPP Public Private Partnership PRINCE 2 Projects in Controlled Environment PB Programme Budget PSC Programme Steering Committee RFP Request for Proposals RSOC UNOPS Serbia Operations Centre SCTM Standing Conference of Towns and Municipalities SME Small and Medium Size Enterprises SEIO European Integration Office of the Government of the Republic of Serbia SIPRU Social Inclusion and Poverty Reduction Unit SME Small and Medium Enterprise TA Technical Assistance ToR Terms of Reference UN Women United Nations Entity for Gender Equality and the Empowerment of Women USAID United States Agency for International Development 3 Executive summary Although the South East and South West Serbia remain less developed parts of the country, the development programme European PROGRES facilitated improvements and established solid foundation for accelerated economic growth of the area. With funding support of the European Union and the Government of Switzerland, while contributing to implementation of national policies at the local level, this Programme from May 2014 to March 2018 encompassed implementation of 254 projects that contributed to local governance, business enabling environment, infrastructure development, and social inclusion in 34 municipalities that were covered by the Action. Work on local governance produced tangible results: management of municipal finances has been enhanced through implementation of 16 grants for update of taxpayers’ registries that enabled beneficiary Local Self-governments (LSGs) to increase tax revenue by 1.35 million Euros; provision of technical assistance for programme budgeting and capital investment planning enabled 15 beneficiary LSGs to improve identification and development of capital projects, enhance access to donors’ funds, while ensuring stronger citizens’ participation in the budgeting process. LSGs’ good governance (GG) capacities have been strengthened: 23 municipalities established GG Competence Centres that will address GG issues in local policies and projects; 13 LSGs conducted reforms that included development and adoption of 21 regulations to strengthen internal planning, accountability mechanisms, public property and human resource management; 27 municipal representatives completed GG capacity building programmes; and, finally, two publications on GG, which provide insight into practices that may be useful for future GG work have been published. European PROGRES supported development of 36 detailed regulation plans (DRPs)