Sustainable Local Development Project Semi-Annual Progress Report #3

The project supports local government efforts to create sustainable inter-municipal cooperation (IMC) governance mechanisms that include the private sector and civil society to strengthen local economic development governance in accordance with EU standards. Project activities are implemented under five integrated components: Inter-Municipal Cooperation, Local Government Administration, Public Participation, Youth Development, and Business Enabling Environment. The project is implemented in thirty-two municipalities clustered around the lead cities and municipalities of Subotica, Zrenjanin, Novi Sad, Novi Pazar, Uzice, Kraljevo, Nis, and Vranje to form eight IMCAs. The project has achieved substantial progress towards meeting its FY 2012 work plan targets, with thirty-five out of forty-two targets met or exceeded. The project has also met or exceeded FY2012 annual targets for twenty-three performance indicators, out of which six are USAID Mission-level indicators. The project has established thirty-five IMC functions and mechanisms that enhance IMC sustainability. These functions and mechanisms include the establishment of IMC structures, institutionalization of IMC, and capacity building for IMC core competencies. The project has also strengthened IMC legislative and policy enabling environment to deliver public services more effectively and efficiently. The project has implemented various initiatives to support local governments, including the Solid Waste Management initiative in the Vranje-led IMCA, and various agriculture and tourism development activities. A total of forty-nine local governments have recognized the benefits of inter-municipal cooperation and have become involved in these IMC projects. Thirty-two local governments have signed IMC agreements, and an additional seventeen have become engaged through project initiatives. The project has also made progress in the area of public participation, with activities aimed at bolstering the skills and procedures needed to enable IMC area stakeholders and constituents to partner in development planning. The project has also addressed the problem of youth unemployment and marginalization by strengthening and integrating youth networks into IMC decision-making processes. The project's implementation challenges during the reporting period included presidential, parliamentary, provincial, and municipal elections, which preoccupied many IMC partners with campaigning and post-election government formation. However, the project has addressed these challenges through consultation with the USAID COR and postponement or temporary suspension of activities that relate to eight indicators. The project's detailed Annual AO and IR Report is available upon request, as it was submitted to USAID on October 10, 2012, and is currently under review. The report highlights the project's activities during the reporting period, achievements by component, and implementation challenges. The final portion of the report highlights activities planned for Q1 of FY 2013 and provides a summation of results achieved against the FY 2012 Work Plan.