Serbia Sustainable Local Development Project Final Report [PDF]

SUSTAINABLE LOCAL DEVELOPMENT PROJECT IN SERBIA

FINAL REPORT SEPTEMBER 21, 2016

This publication was produced for review by the United States Agency for International Development by Chemonics International Inc.

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

CONTENTS 1.INTRODUCTION........................................................................................................................................1 2.ABOUTTHEPROJECT................................................................................................................................2

2.1TheOriginalApproach.................................................................................................................2 2.2Change............................................................................................................................... ...........3 2.3NewPlansandPrinciples.............................................................................................................5 3.PROJECTACTIVITIES.................................................................................................................................8

3.1INTERͲMUNICIPALCOOPERATIONSUPPORT..............................................................................8 3.2SECTORSUPPORTFORSMALLANDMEDIUMͲSIZEDENTERPRISEDEVELOPMENT.................15 3.2.1Textile–DenimProduction................................................................................................15 3.2.2FootwearSector..................................................................................................................17 3.2.3Wood/FurnitureSector.......................................................................................................19 3.2.4MetalProcessingSector......................................................................................................23 3.3AGRICULTUREENHANCEMENT..................................................................................................24 3.3.1HorticultureIncubatorProgram.........................................................................................24 3.3.2ProducttestinglaboratoryservicesintheRegionalCenterforAgriculturalDevelopment (RCAD)inSjenica.......................................................................................................................... 25 3.3.3CenterforCollectionandProcessingofNonͲTimberForestProducts(NTFP)inTutin....26 3.3.4FoodͲtestingequipmentforSuboticaLaboratorytoenableincreasedexport...............27 3.3.5SomborAgricultureEducationCenter................................................................................27 3.3.6The‘MountainBreakfast’brand.........................................................................................29 3.4INNOVATION.............................................................................................................................. 30 3.4.1ICTAcademies..................................................................................................................... 30 3.4.23DImPulsCenterinKraljevo..............................................................................................31 3.4.3TechnologyandFoodͲProcessingParkinLeskovac...........................................................32 3.5FOREIGNDIRECTINVESTMENT(FDI)ATTRACTIONACTIVITIES................................................35 3.6STRENGTHENINGPUBLICADMINISTRATIONTOENABLEINTERͲMUNICIPALBUSINESS GROWTHANDINVESTMENTS..........................................................................................................38 3.7INTEGRATINGYOUTHEQUITABLYINTOLOCALECONOMIES...................................................43 4.LESSONSANDCONCLUSIONS………………………………………………………………………………………………………………….46

AnnexA: AnnexB: AnnexC: AnnexD: AnnexE:

EightIMCAreasͲNewCriteriaPrograms FinancialReport    PerformanceMonitoringReport  IndexofReportsandProducts   TableofCooperatingNGOs  

 



    

    

    

    

50 66 67 94 96 

SUSTAINABLELOCALDEVELOPMENTPROJECT



 



FINALREPORT 







SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

ACRONYMS AYES  B2B  BEE  BFC  CB  CIP  CMS  CSO  EU  EUPROGRES FDI  FTP  GDS  GIZ  GoS  Ha  IMC  IMCA  IZ  LED  LG  MAPs  MoU  NALED  NAPOR  NARD  NiCAT  NCP  NES  NFE  NGO  NTFP  PGI  PMP  PPP  Project  PUC  RCAD  RDA  SCC  SCTM  SDA/RAS SEDA  SIEPA  SK  SLAP  SME  STTA  TA  VET  WG  WP 

AssociationofYoungEntrepreneursofSerbia Businesstobusiness Businessenablingenvironment BusinessFriendlyCertification Capacitybuilding CapitalInvestmentPlanning CustomerManagementSoftware Civilsocietyorganization EuropeanUnion EuropeanPartnershipwithMunicipalities Foreigndirectinvestment FoodTechnologyParkinLeskovac GlobalDestinationforShoesandAccessoriesTradeFair DeutscheGesellschaftfürInternationaleZusammenarbeit GovernmentofSerbia Hectares InterͲmunicipalcooperation InterͲmunicipalcooperationarea IndustrialZone Localeconomicdevelopment LocalGovernment(appliestoacityoramunicipality) MedicinalandAromaticPlants MemorandumofUnderstanding NationalAllianceforLocalEconomicDevelopment NationalAssociationofYouthWorkers NationalAgencyforRegionalDevelopment NisClusterofAdvancedTechnologies NewCriteriaProgram NationalEmploymentService NonͲformaleducation NonͲgovernmentalOrganization NonͲtimberforestproducts ProtectedGeographicalIndication Performancemonitoringplan PublicͲprivatepartnership USAIDSustainableLocalDevelopmentProject PublicUtilityCompany RegionalCenterforAgriculturalDevelopmentinSjenica RegionalDevelopmentAgency SerbianChamberofCommerce StandingConferenceofTownsandMunicipalities SerbianDevelopmentAgency SandzakEconomicDevelopmentAgency SerbianInvestmentandExportPromotionAgency SmartKolektiv SystemofLongͲlistedAdvancedInfrastructureProjects SmallͲandmediumͲsizedenterprise ShortͲtermtechnicalassistance Technicalassistance Vocationaleducationandtraining WorkingGroup Workplan

 





SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 



1. INTRODUCTION ChemonicsInternationalInc.isproudtopresentthisFinalReportonUSAID'sSustainableLocal DevelopmentProject(SLDP),whichChemonicsimplementedfromDecember22,2010toAugust21, 2016.SLDPwasaprojectrichininnovationandlearning.Asdescribedbelow,theproject,a beneficiaryofUSAID'spatience,flexibility,andcreativity,changeditsmanagementmethodologyand approachinitsthirdyeartorealizeitsoriginalgoalsofcreatingeconomicgrowthinlocalregions.In thisway,SLDPwasanunusualproject,fortunateintheallowanceitwasgiventolearnlessonsand adoptnewsolutionsasitevolved.AtrueproductofUSAID/implementercollaborationand partnership,SLDPbeganasaprojectemphasizinggovernanceandprocessandendedasaproject focusedonprivatesectordevelopmentandconcreteeconomicimpact.Alongtheway,italways soughttoharmonizegovernanceprioritieswitheconomicimperativesandresults,andascanbe seeninthesummaryboxthatfollows,itssuccessfulactivitiesaremanifold. SummaryofAccomplishments: x

SLDPexpertsworkedwith69individualcompaniesandninesectorclusters/associations ofproducers,assistingthemtoimprovetheirproduction,expandtheirproductofferings, modernizepromotionalactivitiesandmaterials,andestablishcontactwithpotential buyersabroad.

x

WithSLDPassistance,6,958newjobswerecreatedinpartnerinterͲmunicipal Cooperation(IMC)areas.

x

657youthswhoparticipatedintheSLDPͲsponsoredactivitiesfoundnewemployment.

x

From2013Ͳ2015,businessrevenuesofSLDPpartnercompaniesincreasedby$25million, adding529newjobs.

x

Atotalof782youthsparticipatedSLDP'seducationalprograms,andtheprojectorganized 452internships,enabling657youthstofindemployment.

x

Foreigndirectinvestmentattractioncoaching,businessretentionandexpansiontraining, brownfieldredevelopmentandassetmanagementguidancehelpedpartnerIMCareasto attract$211.8millionininvestmentfrom2013to2016.

x

2,877locallyelectedandappointedofficials,membersofCSOs,media,andbusiness peopleparticipatedinprojectͲsponsoredtrainingandexperiencedsystemimprovement throughSLDPtechnicalassistance.

x

70eventsandinitiativesorganizedthatpromoteddialoguebetweentheprivate,public andcivilsectors.

x

9municipalandinterͲmunicipalinfrastructuredevelopmentprojectssupportedin differentstagesofdevelopment.

x

7publicͲprivatepartnershipssupported.





SLDPFINALREPORT





Page|1

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

2. ABOUTTHEPROJECT 2.1TheOriginalApproach SLDPbeganasaprojectmeanttoimprovelocaleconomicdevelopmentbyemployingasetoftools, includinginterͲmunicipalcooperation("IMC"),tostrengthenrelevanteconomicͲorientedlocal administrativeprocessesandencouragepublicandyouthparticipationindecidinglocaleconomic issues.SLDPwasexpectedtoidentifyeightIMCareas,consistingofthreeormorecitiesortowns, and,ineachIMCarea,tomanagethecreationofajointworkingplatformoflocalgovernment, business,andcivilsocietyfromeachmemberͲcommunity.ThisplatformofInterͲmunicipal cooperationwoulddecideon,andimplement,mutuallybeneficialeconomicdevelopmentprojects fortheentireIMCarea,andeachcommunitywouldcontributeresourcestothateffort.The objectivesofSLDP,asdraftedbyUSAID,wereasfollows: ...toassisttheGovernmentofSerbiaandrelevantministriestoenhancethecapacitiesofits localgovernmentstoprovideservicesandfacilitateeconomicdevelopmentinatransparent andparticipatorymannertoreduceopportunitiesforcorruptionwithinthepublicsector. ThelongͲtermobjectiveoftheProjectistocreateasustainablelocalenvironmentfor businesstogrowandprosperthroughimprovedlocalgovernmentcapacities,business advocacyandincreasedpublicparticipationintheareaͲbasedeconomicdevelopment. Initsfirsttwoyears,SLDPconcentratedonthethreetoolsfordevelopmentthatwereoutlinedinits StatementofWork:i.e.,IMCprogramming,publicadministrationreform,andyouthdevelopment andparticipatorymechanism.Ofthesedevelopmenttools,IMCprogrammingpresentedthemost difficultmanagementchallengebecauseitwascompletelynewtoSerbia.BoththeIMCconceptand theinstitutionalmechanismsformanagingIMCprogrammingwerealienandwithoutlegalor administrativeprecedent.TheeightIMCareasapprovedbyUSAIDincludedmultiplecitieswhose mayorswereofdivergentparties,whosebudgetswereoperatedcompletelyindependentlyofany otherIMCcommunity,andwhosebusinessprofilesandeconomicneedsandprioritiesvariedfrom communitytocommunity.ThoughSLDPattemptedtowrestleagreementforjointprojectsfromthe variousIMCplatformsofadministrative,business,andcivilsocietyleadersthattheprojectmanaged tocreate,theresultsweredisappointing:itwasnotreadilyapparenthowtheidentifiedprojects wouldproducepalpableeconomicgrowthordevelopment.Theproject'sfundswereinsufficientto implementthekindoflargeinfrastructuralprojectsthatarethenaturalfruitofIMCprogramming andweresuggestedbymostIMCcommittees,sowehadtocompromiseondoingfeasibilitystudies forprojectsthat,perhaps,wouldbedoneinthefuture,oncefundsmaterializedfromsomewhere. Othersuggestedprojectsconstitutedflightsoffancy,unmooredbyeconomicanalysisorbusiness logic,suchasaLeskovac"greenagriͲzone"oraGISmappingofKrajlevoagricultureland.Stillother projectsgrewfrompoliticalagendasandcompromisesunrelatedtoneed,suchasanairport developmentplaninUzice.BytheendofYear2,SLDPanditsbeneficiarieshadtochooseamong suchprojects.Theirmeritwasthattheyhadbeendevelopedinatransparentandparticipatory mannerbythevariousIMCcommitteemembers;theirdeficiencywasthattheycouldnotpromise economicimpact,evenif“successful.”Theprojectwasfacedwithafamiliarconundrum:Is developmentfundingtogotocultivationofprocessesortoaquestforimpact?

SLDPFINALREPORT



Page|2

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

TheothertoolsemphasizedbytheStatementofWork,administrativereformandyouth development/participatorymechanism,wereimplementedwithgreaterease.Bytheirnature,these toolsweremeasuredinoutputs,suchaspeopletrainedandeventsheld.Aftertwoyears,successful activitieshadbeenregisteredintheseareas,buttherewasnowaytoknowwhethertheworkwould culminateina"sustainablelocalenvironmentforbusinesstogrowandprosper." Component2:LocalGovernmentAdministrationandComponent3:YouthDevelopmentand ParticipatoryMechanism–attheendofFY2012 9 Ninepublicservicesinsupportofbusinessdevelopment;fourLGsimprovedtheirasset managementcapacities,threeimprovedPUCmonitoring;32LGsreceivingUSGassistance thatimprovestheirperformancerelatedtoIMCmechanismsforsustainabledevelopment; eightassistedinachievingBFCstandards;Projectexpertsassistedkeypartnersindeveloping sixadvocacyinitiatives. 9 TwentyͲthreeprojectͲassistedmunicipalities,whereatleastoneprojectistakingintoaccount orsupportingparticipationofunderrepresentedgroups:sevenmunicipalitieswhereethnic minoritiesbenefitfromIMCprojects(4inSouthSerbiaand3inSandzak);and16 municipalitieswhereyouthdevelopmentprojectsaresupportedbyNAPORactivities(NAPOR isaprojectgrantee). 9 ThirtyͲone(31)youthsbeganinternshipsintwelveprivatecompanieswiththeprospectof futureemployment. 9 TheprojectsupportedimplementationoftheNationalCareerGuidanceStrategy,in cooperationwiththeMinistryofYouthandSportsandwithpartnersonsubͲnationallevel, anddeliveredsixtrainingsessionsincareerguidanceanddevelopmentto65representatives ofIMC,andsupported10mobilecareerguidanceteamstodelivercareercounselingservices toyouthinruralIMCareas.ThroughagranttoKOMS(SerbianYouthUmbrellaOrganization), 194youngpeoplewereenrolledinSLDPͲsponsorededucationalprograms. 9 SupportedtheNationalEmploymentService(NES)tocompletealaborforcegapanalysisand employerneedsforecast. 9 InFY2012,SLDPissuedgrantstoleadingCSOsinsevenIMCareastointegratepublic participationandcitizens’voicesintoIMCgovernancemechanismsandensurelocal developmentplanningismoreinclusiveandsustainable. 9 BytheendofFY2012,101institutionsandorganizationshadparticipatedinSLDPͲsponsored activities.Inadditiontothestrategicpartnershipstheprojectmaintainedwithkeypartners, suchasthenewlyestablishedMinistryofRegionalDevelopmentandLocalSelfͲGovernment, theNationalAgencyforRegionalDevelopment,theStandingConferenceofTownsand Municipalities,theNationalAllianceforLocalEconomicDevelopment,KOMSandNAPOR,the NationalEmploymentService,andregionaldevelopmentagencies,morethan90other institutionsandorganizationsreceiveddifferenttypesofassistanceandassumedmore substantiverolesinregionaldevelopmentprocesses. 9 TwentyͲoneinitiativeswereundertakenbyorwithsupportofofficials,toengageindialogue withthepublic. 9 Theprojectprovidedtrainingto955participants(47.5percentofwhomwerefemale)from localgovernments,publicutilitycompanies(PUCs),CSOs,andbusinesses. 

2.2Change AttheendofYear2,USAIDtoldprojectmanagementthatitwasnotclearwhetherSLDPwashaving anyimpactontheeconomiclivesofcitizensintheplaceswhereitwasworking.Whenproject managementcitedmeetingsheld,trainingcourseslaunched,projectsproposed(andevenpartially

SLDPFINALREPORT



Page|3

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

implemented),USAIDrightfullyasked"sowhat?"WereSLDP'sendeavorsaddingupto improvementsthatcouldbeseenontheground?Didtheprojecthaveaconcretegoal,orsetof goals,thatitwasheadingtowardandwouldachieve?ThesepenetratingquestionscompelledSLDP totakestockandreͲthinkitscharacter.WithUSAID'spermissionandencouragement,theprojectreͲ organizeditsstaffandreͲenvisioneditsmission.Internally,SLDP'sstaffdeterminedthatUSAID's concernscouldbemetonlyiftheprojectswitchedfrompursuingprocesschangestohuntingfor opportunitiestocatalyzerealeconomicimpact. Thisdeterminationbroughtaboutarapidchangeinprojectmethodologyandmanagementculture. First,wenolongerhadthetimerelyonotherstosuggesteffectivegoalsorprojects;rather,we decidedthatasconsultants,wewouldguideeconomicresearchandanalysisandonthatbasis, wouldsuggestprojectstoourIMCpartnersthatwebelievedhadrealpotentialforeconomicimpact. Second,weneededtofindauniversaltargetthatallofourmayorsandcommunitiescouldagreeis important,sothatwewouldnotbesprinklingprojectresourcesinpursuitofdiffuseresults idiosyncratictoeachoftheregionsandcommunitieswherewewereworking.Third,wedecided thateveryprojectcomponent,andeverytoolandresourceitused,wouldbededicatedtoachieving thisuniversaltarget.Noadministrativereformoryouthactivitiesoractivitiesinparticipatory decisionͲmakingwouldoperateindependentlyofSLDP'sotheractivitiesandmaintarget.If municipalutilitycompanieswereinconsequentialtothemainobjective,orifaPPPpossibility engagedapurelyinsularobjective,theprojectwouldnotdealwithit;ifyouthofficesbrought nothingofvaluetothemainprojectactivity,they wouldnolongerbeasubjectofSLDP'sconcern. SLDPmanagementthenwentbacktoits The unemployment rate in beneficiariesinfaceͲtoͲfacemeetingstoreͲexamine Serbia in April 2012 was theeconomiccharacteristicsofthecommunities 25.5%. The most affected age whereitwasworking.Repeatedly,itbecameclear groups were young people thateachofthevariouscommunitieswas between 25 and 39 years old preoccupiedwithdifferentagendas,whichthey (source: National Employment wishedtoaddresswithdonorsupport.Auniversal Bureau and Republic Statistical targetforanIMCarea,letaloneforalloftheIMC Office of Serbia. areas,wouldbedifficulttocomeupwithifthe focusstayedanchoredtotheadministrativeand civilsocietyagendasthatoccupiedeach community'sattention.Beyondtheseagendas, however,loomedasingularpainfulfactonwhichallcommunityleaders,anywhere,couldfocus— thelackofjobsandhighunemploymentintheircommunities.InSLDP'spartners,thepernicious symptomsofjoblessnessandunemploymentwereuniversallypresentandacknowledgedasaroot causeofeconomicpain.Butnoonewasattackingitinadirectandsystematicway.ForSLDP,this meantthatwehadfoundouruniversaltarget—chronicunemployment. NomayororNGOinSLDP’spartnercommunitieshadamarketͲbasedunderstandingofhowtodeal withthisissue.Certaincitieswereusingpartsoftheirfederalsubventionstocreatenewcity governmentjobs.Otherswerepayingprivateemployersthesalariesrequiredforafewworkersfora singleyear.YouthswerelearninghowtoprepareresumesandbusinessplansfordreamedͲofstartͲ ups.Buttheobviousandmostdirectsolutionforbattlingunemploymentistoincreasethebusiness

SLDPFINALREPORT



Page|4

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

successoftheprivatesector.Yeteventhoughthisistheonlywaytoaddjobsinamarketeconomy whereprivatesectortaxesarethebasisforpublicbudgetingandspending,nodonor,national governmententity,orlocalleadershipwasfocuseddirectlyonprivatesectorgrowth.Inour meetings,mayorsaskedushowtheprivatesectorgrows,andweansweredinoneoftwoways:by addingnewinvestorstoacommunity'sprivatesectorroster,orbymakingexistingbusinessesmore competitivesothattheycanpenetratenewmarketsandgrow.Localleaders,however,didnotknow howtoaddresseitherofthesesolutions.SLDPofferedtohelp,conditionalonUSAIDapproval.

2.3NewPlansandPrinciples TherigorsofreducingunemploymentbyenlargingtheprivatesectorrequiredthatSLDPembrace theguidanceofmarketprinciples.Firstandforemost,projectactivitieswouldallbedemandͲdriven; iftherewerenomarketdemandforanideaaboutgrowingtheprivatesector,theprojectwouldnot pursueit.AlthoughthiswouldseemtobeaselfͲevidentmanagementprinciple,economic developmentworkoftenconcentratesonthecapacityofafirmorgovernmentorstatetoproduce goods,withoutattentiontowhetherthosegoodsaredemandedbyanyonewhowillpayforthem. SLDPwouldnotdothat.DemandstudiesshowingpositivemarketandrevenueͲgeneratingdemand wouldprecedeallfutureprojectactivities. Second,becausewewereconcentratedonenlargingtheprivatesector,sustainableandrobust businessgrowthhadtobethetargetofourprivatesectorwork.Inacompetitivemarketplace,such robustandsustainablegrowthdependsontheprivatesector’sabilitytoproduceandmarketeverͲ moreefficientlyandwithhighervalueproductsresponsivetoeverͲgrowingdemand.Therefore,we adjustedour"client"base.Wewouldworkonlywithelements(orsectors)oftheprivatesectorthat couldpenetratenewmarketsbecausetheyhadalreadyshownthepromiseofbecomingsufficiently competitiveinqualityandefficiencytomeetidentifiableandgrowingdemandinthosemarkets.In otherwords,howeversternitsounds,SLDPwouldworkonlywithconcretemarketpotentialtoadd amagnitudeofsustainablejobsintheforeseeablefuture,andwouldnotengageinpovertyrelief, startͲupwork,orsocialentrepreneurialwork. ArmedwiththesetwoprinciplesandUSAID’sgoodwill,theprojectsettoworkidentifyingthe programsbestsuitedtoaddjobstoeachIMCarea.First,SLDPdistinguishedthisnewinitiativefrom precedingeffortsbylabelingtheactivitiesitwouldchooseasNewCriteriaPrograms(NCP).To incorporatetheprinciplesstatedaboveandrealizerealresultsoverthethreeyearslefttoSLDP,the projectresolvedtoselectNCPactivitiesaccordingtoasetofcriteriaapprovedbyUSAIDinadvance. USAID'sapprovalofthesecriteria,whichcamewithmuchbackͲandͲforthdiscussionandsuggestion atthehighestMissionlevel,wascritical.Thecriteriacreatedayes/noframeworkforwhatthe Projectcouldconsiderwhenourcounterpartsadvocatedideasthatmaynothavemetthefullintent oftheNCPinitiative.Weweredeterminednottoallowthe“freeͲforͲall”decisionͲmakingprocess thatIMCCommitteeshademployedinSLDP'sfirstgoͲaroundofchoosingIMCprojects.Now,we werelookingforeconomicimpactthroughconsensualdecisionͲmakingonstrict,evidenceͲbased, analyticalstandards.  

SLDPFINALREPORT



Page|5

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

TheapprovedcriteriagoverningtheNCPinitiativespeakforthemselvesandareasfollows: CriteriaforselectingNewCriteriaProgramsinpartnerIMCs: 1.Proximaterelationtojobcreation 2.Plausibility(fitswithincultural,economic,andpoliticalconstructs) 3.Feasibility(expectedbenefitwouldexceedcost,andbenefitsovercostsaretestable) 4.Implementablebypartnersandproject 5.Originalandinnovative(dependingonextentofinnovativeproductsandservicesemployedin NCPrealization) 6.SLDPcomponentsinvolved(youthwork,competitivenessandmarketingconsulting,andFDI attractionwork) 7.Leveragingbyotherdonors 8.DoesnotalienateanyIMCentity 9.BenefitmorethanoneIMCentity 10.Localgovernmentstrategicplansorrecognizedbusinessneeds  TheprojectnotifiedourpartnersofitsdecisiontopursueanewNCPinitiative,usingthese underlyingcriteria.Wethentook10weekstocanvassourIMCpartnerswithmeetingsofall participantsheretoforeinvolvedwithSLDP(Committeesandstakeholders),businessleadersbyopen invitation,andschoolsanduniversities.Wewantedourpartnerstothinkabouteconomic developmentprojectsandideasinlightofthecriteriaandnewgoalofprivatesectorgrowth.The project'sstaffandconsultantssimultaneouslyperformeddeskanalysisofthemostfundamental economicandbusinessaspectsofeachIMCarea,alongwithascanofthebestsectorsandeconomic assetspresentineachIMCarea.Agreatdealofthisinternalworkdrewonstudiesdoneinthe project’sfirsttwoyears,butfresheyesandapproacheswereapplied. FourweeksafterthenotificationsweregiventoourIMCpartners,SLDPheldanEconomic DevelopmentForumineachIMCarea,inwhichwediscussedproposalsandideasabouteconomic developmentactivitiesthatmettheNCPcriteria.IdeasattheForumcamefromourlocalpartners, butouroutsideprojectspecialistsandinternalstaffalsoofferedprogramsuggestionsforeachofthe eightIMCareas,whichhadbeencirculatedinadvanceoftheForums.Theforums,attendedby USAIDandmayorsandtheirteamsfromeachIMCcommunityandbyallpublicstakeholders, producedlivelydialogue.Participantsheldthecriteriaascentraltothediscussions,andideaswere vettedintermsoftheiradherencetothecriteria.Theprojecttookcarefulnoteofthecommentsand reactionstoeachproposal,includingtheonesadvancedbyourownteam. ThreeweeksfollowingtheEconomicForums,theprojectpublishedwhatitconsideredthe conclusionsreachedbyeachIMCForumandvettedtheseconclusionswiththeIMCleaders.From thatexercise,projectstaffseteachIMCarea’soveralljobͲproducinggoalandthespecificunderlying activitiesthatwouldrealisticallyachieveit.Together,thesegoalsandactivitiesconstitutedtheNew CriteriaProgramineachIMCarea.Inpresentationsto,anddiscussionswith,USAIDMission managementandspecialists,theseprogramswereconsideredandapprovedbyUSAIDinlightof theirmeetingthecriteria.TheNCPprogramforeachIMCareaisincludedinAttachmentAtothis report. Tworemarksneedtobemadeatthisjuncture,becauseitisimportanttorememberhowUSAIDand SLDPagreedtoviewtheseNCPprograms.Theseremarksillustratetheclosecooperation,

SLDPFINALREPORT



Page|6

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

reasonabilityandflexibilitywithwhichUSAIDapproachedthisprojectreͲdo;USAIDwasatrue partnerhere,notasimplemanagercheckingoffdeliverables.Wearegratefulandinspiredbyhow constructivelytheMissionaddressedprojectmanagement,andhownonuancesofthenecessary changeswerelostontheMissionprofessionals. First,thegoalsofeachNCPprogram,suchas"increaseby20percent"werenormative,not contractual.Theywereusedasstrongmotivationforprojectstaffandbeneficiariestoexecutethe underlyingactivitiesoftheNCPprogram.Second,becauseofthefocusonenlargingtheprivate sectorasaprimarygoal,projectdeliverablesthatdealtexclusivelywithprocessoutputgoalshadto bemodifiedoreliminated.USAIDandtheprojectworkedtochangeourMEPtobetterreflectwhat SLDPwasgoingtodointhenextthreeyears.ThesechangesaredescribedinAnnexAtothis Report.Whenreadcarefully,theydemonstratethemagnitudeofqualitativeadjustmentsthat weremadetoswitchtheproject’sfocusfrominstitutionalprocesstoeconomicimpact. OncetheNCPprogramswereapprovedbyUSAIDandbyourpartners,theproject'sworkforthe nextthreeyearswasset.AsstatedinourFY2014WorkPlan,weproceededasfollows: x

x

Tomaximizechancesofsuccess,eachNCPismatchedtotheeconomicassets,business strengthsandprivatesectorneedsofeachindividualIMC.InIMCareaswherethereisa significant,butstatic,SMEmanufacturingsector,enhancingthecompetitivenessofkeysectors toexpandtheirmarketsisthefulcrumoftheProject'swork.InIMCareaswhereeconomic activityistiedtolowͲvaluebusinessactivity,suchascommodityfarming,theprojectisworking tomovethebusinessprofiletohighervalueendeavors,suchashorticulturalfarmingandfood processing.IntheIMCareaswheretherearekernelsofneweconomicactivityinICTand innovativemanufacturing,theprojectwillworktoturnthoseinchoateeffortsintosuccessful demonstrationmodelswithmoreuniversalandsystemicindustrialapplication.InseveralIMC areas,wherethelocation,economiclogic,andinfrastructureareappropriate,theProjectis guidinginflowinginvestmentpromotiontoaddjobstotheregionaleconomy. NCPprimarilydescribeswhattheproject'sScopeofWorkidentifiesasComponent1work; however,wehavemoldedComponents2and3tosupporttheNCPssothatallprojectactivities fullysynchronize.Component2activities,whichdealprimarilywithmunicipalities’capacityto carryoutlocaleconomicdevelopment,areeitherdirectlysupportiveofparticularelementsof theNCPsordesignedtobuildtheknowledgeandskillsnecessarytoexecuteactivitiessimilarto thoseoftheNCPactivities.Component3activities[youthandparticipatorymechanism]are concernedwithdevelopingaworkforcethatmatchestheprivatesectorneedsintheproject's IMCareas.



SLDPFINALREPORT





Page|7

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

3. PROJECTACTIVITIES SLDPwasessentiallyrunningeightNCPprogramssimultaneouslyingeographicallydistantpartsof thecountry,soboththeexecutionofandreportingabouttheactivitieswasmanageriallydiffuse. However,becauseinallIMCareas,wewereconcentratedonthegoalofexpandingtheprivate sector,wewereabletouseacoregroupofforeignanddomesticexpertsinmultipleIMCareas, therebysavingresourcesandincreasinglearnedexperienceacrossthevariousIMCs.Becausewe hopethatthisFinalReportmaybereadnotonlyasachronicleofourworkbutalsoasageneralized manualforprivatesectorcompetitivenessworkinmultipleregions,wewillpresentouractivities andtheirresultsthematically,ratherthanregionbyregion.

3.1INTERͲMUNICIPALCOOPERATIONSUPPORT In2011,theprojectformedeightinterͲmunicipalcooperation(IMC)areas,whichsoughttoenable localgovernmentstocollaborateandpartnerwiththeprivatesectorandcivilsocietytooptimize availablemunicipalresourcesandservicesandbuildcapacitiestoidentify,leverage,andabsorb public,private,anddonorinvestmentfunds.ThecontractscopeofworkidentifiedNisandNoviSad asleadcities,andaddedVranjeandNoviPazar,asdirectedbyUSAID,basedonMissionprioritiesfor assistingthesetwounderdeveloped,ethnicallydiverseregions.Selectionofthenextfourleadcities andassociatedclustersproceededthroughatwoͲphasedcompetitiveprocess.First,theproject invitedlocalgovernmentstofilloutadetailedquestionnairetoconfirmtheirinterestinproject participationandtoscoreallthelargerlocalgovernmentsontheircapacitytoserveasleadcities.A shortlistofcitieswastheninvitedtosubmitapplications,inwhichtheyproposedpartnercluster localgovernmentsandpriorityIMCprojectideas.TheprojectrecommendedtoUSAIDthehighest rankedcitiesasprojectleadcitypartners,basedonboththescoredquestionnaireresponseandthe application.Inthisway,SLDPidentifiedUzice,Kraljevo,Zrenjanin,andSuboticaasthefinalfourIMC areas. ToensurefunctioningIMCareastructures,theprojectinstitutedIMCforumsandcoordinationand workinggroupsthatenabledpartnersineachIMCareatoengageinmeaningfulandinclusive decisionͲmaking,projectͲplanningandexecution.SLDPassessedIMCbusinessopportunities, focusingonthecapacityamongexistingbusinessleadersandtheirsupportofinnovationasadded valuetodevelopmentofnewproductsandchanceforeconomicgrowth.Allactivitiesimplemented inIMCswereinterrelatedanddividedintothreeobjectives: 1.1.Improveintermunicipaleconomicdevelopmentbyguidingworkonspecificprojectsthatwill addjobstotheterritory 1.2.SustainIMCcapacitytosucceedininvestmentattractionandbusinessgrowthnecessaryto enhanceregionaleconomiccompetitiveness 1.3.SpreadandimbuetheinstitutionalandtechnicalknowledgegainedthroughsuccessesofinterͲ municipaleconomicdevelopment Inaddition,withproject’ssupport,eachIMCdevelopedthenewcriteriaprojectsmatchedtothe economicassets,businessstrengthsandprivatesectorneedsofeachindividualIMC.Thetable belowrepresentstheNCPsimplementedbyparticipatingIMCs.

SLDPFINALREPORT



Page|8

SUSTAINABLELOCALDEVELOPMENTPROJECT

InterͲMunicipalCooperation(IMC)Area A.UziceͲledIMC x UZICECITY x CAJETINAMUNICIPALITY x NOVAVAROSMUNICIPALITY x PRIJEPOLJEMUNICIPALITY x PRIBOJMUNICIPALITY B.NoviPazarͲledIMC x NOVIPAZARCITY x TUTINMUNICIPALITY x SJENICAMUNICIPALITY C.NisͲledIMC x NISCITY x LESKOVACCITY x MEROSINAMUNICIPALITY x GADZINHANMUNICIPALITY x DOLJEVACMUNICIPALITY D.VranjeͲledIMC x VRANJECITY x BUJANOVACMUNICIPALITY x PRESEVOMUNICIPALITY x VLADICINHANMUNICIPALITY E.KraljevoͲledIMC x KRALJEVOCITY x CACAKCITY x GORNJIMILANOVACMUNICIPALITY x VRNJACKABANJAMUNICIPALITY x RASKAMUNICIPALITY Zrenjanin–ledIMC x ZRENJANINCITY x KIKINDAMUNICIPALITY x NOVIBECEJMUNICIPALITY Subotica–ledIMC x SUBOTICACITY x SOMBORCITY x KANJIZAMUNICIPALITY NoviSadͲledIMC x NOVISADCITY x SREMSKIKARLOVCIMUNICIPALITY x BEOCINMUNICIPALITY x TEMERINMUNICIPALITY



FINALREPORT 

NewCriteriaProgram UziceIMCRegionalValueChain

NoviPazarͲEntrepreneurshipthatSells

GrowSouth

InvestonCorridor10

KraljevoIMCCompetitivenessthrough Innovation

DiversificationofAgricultureͲͲNewJobsfor RuralYouth

SuboticaIMCAgribusinessExpansion

MetroNoviSad:FirstPlaceforBusiness

A.UziceIMC:TheUziceIMCRegionalValueChain TheIMCareawasformedinDecember2011.In2013,theIMCandtheprojectlaunchedthe economicprogram“UziceIMCRegionalValueChain.”  ProjectactivitiesinthisIMCareafocusedonsupportingthelocaltourismindustryinreachinga10 percentincreaseofpurchasesfromlocalvendors.TheUziceIMCincludesthelargecityofUziceand

SLDPFINALREPORT



Page|9

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

thepopularresorttownsofZlatibor,Zlatar,andTara,alongwitheconomicallyhardͲhit municipalitiesinthewest.Recognizingthepotentialoftheseresorttowns,theprojectworkedto engageothermunicipalitiesintheIMCinthetourismvaluechain.In2013,SLDPinitiated cooperationwiththeZlatiborRegionalDevelopmentAgency(RDAZlatibor)todevelopandanalyze thetourismsupplychainofthedestinationsofTara,Zlatibor,andZlatar.Then,in2014,theRDA producedanalysesofasupplychainfromtheregion’stourismindustry,listinglocalproductsthat couldmeethighhotel,recreation,andcateringdemandwithadditionaltargetedsupport.In2015, theprojectawardedRDAZlatiboragranttocreateandmarketalocalgastronomicalbrandand promoteitthroughregionaltourismagencies,hotels,andrestaurants.Thegrantalsoaimedto consolidatelocalbusinesslinkagesandconnectthetourismindustrywithspecific vendors/producersoflocalfoodproductsandhandicrafts.Theactivitygatheredrepresentativesof theRegionalChamberofCommerce,associationsofhotelsandrestaurants,regionaltourist organizations,andtravelagenciestojointlycreateuniqueculinarychoicesspecifictotheregional mountainresortsofZlatibor,Zlatar,andTara.Theseeffortsculminatedinthedevelopmentofthe MountainBreakfastRegionalGastronomicBrand,whichconsistedofspecificfooditemsindigenous toeachresort.TheprojectandRDAZlatiborcreatedanewregionalvaluechainconnectingtourist representativesandfoodproducersthroughabusinessͲtoͲbusinessmeetingthatallowedproducers tonegotiatedirectlywithtourismindustryrepresentatives.Theprojectsupportedtheopeningofa localtraditionalproductsshopthatserveslocalproducers,enablingthemtopresentandselltheir products.Theshop,openedintheZlatarResort,willpromoteandsell25productsthatarecertified elementsoftheMountainBreakfast. DetailsonIMCsupportactivitiesandkeyresultsarepresentedinAnnexA,subsectionA. B.NoviPazarIMC:NoviPazarͲEntrepreneurshipthatSells ThisIMCareawasformedinJuly2011.In2013,theIMCandtheprojectlaunchedtheeconomic program“NoviPazar:EntrepreneurshipthatSells.” ThisconceptaimedatincreasingtotalexportsofprojectͲassistedsectorsby10percent,in partnershipwiththeSandzakEconomicDevelopmentAgency.ThecityofNoviPazarandsmaller partneringmunicipalitiesofTutinandSjenicaaretraditionallyknownfortheircommercialand entrepreneurialspirit.Today,however,theyconstituteoneofSerbia’spoorestregions.Theactive sectorswithintheIMCregionaretextiles,footwear,furniture,andhusbandry(dairy,meat), consistingofentrepreneurialsmallͲandmediumͲsizedfirmsandfarms.Eachofthekeysectors experiencedclusterdevelopmentworkandidentifiedparticularconstraintsandgaps.Asastarting pointofprojectintervention,toincreasespecificsectorcompetitiveness,SLDPengaged internationalshortͲtermexpertisetoassessfirmͲlevelcapacitiesandtoprovidesetsof recommendationsforimplementationinfoursectors:(1)fashiontextiles(jeans);(2)furniture;(3) footwear;and(4)agriculture/herbs. ThemaingoalofallactivitiesimplementedinthisIMCareawastostrengthenthecompetitiveness oftheprivatefirmsintheabovesectorsbyidentifyingspecificbuyersandspecificmarketsthat theseproducerscouldpenetrate.Theproject’sinternationalexpertssupportedclustermembersto increasetheirsalesandexpandtheiroperations.Theprojectsecuredthefullparticipationof relevantsectorfirms,publicadministrators,andotherlocalstakeholdersinimplementingthe

SLDPFINALREPORT



Page|10

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

recommendationsandactivitieslaunchedundertheadviceofthesectorSTTAs.Allsectorexperts wereaskedtofindsalesarrangementsthatfirmscouldusetoengagetocontinueinternationalsales whentheprojectended.Inadditiontotradefairs,theProject`sfootwear,furniture,anddenim expertsbegannegotiatingtobringforeignbuyerstoSerbiaandlookingtoforgelinksbetweenthe mostsuccessfullocalcompaniesandtheseforeignfirms.Buyersthussawtheproductstheywere interestedinandwereabletovisitproductionfacilities,thusshorteningthetimeofnegotiation.The projectteamalsocooperatedwithotherdonorstosecureadditionalsupporttotheNoviPazar businesscommunity.Sucheffortsfocusedonresolvingsuchmattersasthechallengeofwastewater treatmentinthedenimsectorbyencouragingacquisitionofozoneͲbaseddryfinishingequipment, improvingthequalityofworkforceinallsectors,andencouragingtherationalusageoftheformer RaskatextilebrownfieldsitebylocalSMEs. DetailsonIMCsupportactivitiesandkeyresultsarepresentedinAnnexA,subsectionB. C.NisIMC:GrowSouth TheIMCareawasformedinJuly2011.In2013,theIMCandtheprojectlaunchedtheeconomic program“GrowSouth.”  ThegoalofthisconceptwastoincreasethedollarvalueofsalesoftheIMC’sprocessedfood productsbyatleast15percentbyNovember2015.SLDP’skeypartnerinthisendeavorwasthecity ofNis,primarilyitsAgricultureDepartmentandLEDoffice.Theproject’sactivitiescenteredon expandingtheIMC’sfoodprocessingsectorbyexpandingthemarketsandcapacitiesofexisting processors,attractingnewprocessorstothearea,andhelpingproducersorganizethemselvesinto efficientvaluechainvendorstotheregion’sprocessors.SLDPengagedinternationalandlocalshortͲ termtechnicalassistance(STTA)toanalyzethedemandforIMCprocessedfoods.TheBermanGroup undertookananalysisoftheinvestmentpotentialoftargetedsites,asthelackofmarketͲready propertywasidentifiedasoneofthebiggestobstaclesinattractinginvestmenttoNis. TheprojectinitiatedthedevelopmentoftheregionalFoodProcessingSupportCenterinNis(the Center)andestablishmentoftheProductDevelopmentResearchPilotPlantattheFoodTechnology Park(“FTP”)inLeskovac.SLDP’sinternationalfoodprocessingconsultantfinalizedtheconceptand organizationalmodeloftheCenter,developeditsstrategy,actionplan,andtherangeofservicesto beprovidedtofoodprocessingclientsandproducers,andoutlinedthetrainingneedsofthestaff involvedinitswork.Theexpertalsoprovidedtrainingonhowtoorganizeservicedelivery,promote theCenter,andbetterunderstandfoodvaluechainsystemsandfoodprocessingoperationsinthe IMCregion.TheCenterishousedonthepremisesoftheDepartmentofAgricultureandRural Development(DARD)inthecityofNis,andeachIMCareapartnermunicipalityhasitsownlocal coordinator.Theprojectalsoapproveda$90,000granttotheLeskovacFTPtosupportthe establishmentoftheProductDevelopmentResearchPilotPlant,includingequipmentpurchaseand installation.Thenewfacilitywillsupportallstagesofproductdevelopment,fromideageneration throughconceptdevelopmenttotheproductionofsmalltrialsamples.Anaddedbenefitwillbein thedevelopmentofayouthworkforce,asstudentsandpostgraduatesfromtheFacultyofFood TechnologyinLeskovacwillusethepilotplantforinstructionalactivities. DetailsonIMCsupportactivitiesandkeyresultsarepresentedinAnnexA,subsectionC.

SLDPFINALREPORT



Page|11

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

D.VranjeIMC:InvestonCorridor10 TheIMCareawasformedinJune2011.In2013,theIMCandtheprojectlaunchedtheeconomic program“InvestonCorridor10.”  Thegoalofthisconceptwastoattractatlastfivenewinvestmentsingreenfieldorbrownfieldsites thatwould,inturn,createnewjobs.ThekeypartnersinthisendeavorweremunicipalLEDofficesof Vranje(astheIMCleader),Bujanovac,Presevo,VladicinHan,andConfindustria,anItalianͲSerbian businessassociation.Thiswasaninvestmentattractionprogram,andtheprojectsuppliedafull rangeofnecessarytechnicalassistance,includingconsultingoninvestmentpromotion,targeting investorsthatfittheIMC’sprofileofassets,traininglocalbusinessesandlocalgovernmentsto presentthebestsalespackagefortheIMCarea,andworkingtofillinvestorneeds,suchasfor adequatetrainedlaborandpreparedinvestmentsites.BermanGroupexpertsinitiatedanFDI coachingprogram,topresentthebestsalespackagefortheIMCarea.SLDPalsocooperatedwith ConfindustriaͲSerbiatodevelopatrainingneedsassessmentandstudyforthetrainingcenterin Vranjetofillinvestorneedgaps.VranjeIMCmunicipalitieswereactiveparticipantsintheProject’s FDIcoachingprogram.ThecityofVranjetookpartinaninvestmentroadshowinItaly,organizedin cooperationwithConfindustria.FDIcoachingactivitiesweresupportedwithdevelopmentof documentationforinvestmentlandinthePresevoindustrialzones.Theprojectalsofundeda demandstudyforestablishmentoftheworkforcedevelopmentcenterbasedontheneedsofthe existingbusinesssectorsandsupportedtheIMCinensuringavailabilityoflandforindustrialuseand thepresenceofqualifiedandavailablelaborthatmatchedinvestors’needs. SLDPalsoassistedthefootwearandfurnituresectorsintheVranjeͲledIMCarea.AsintheNovi PazarͲledIMCarea,tohelpexpandthefootwearsector,theprojectcontinuedworkingwithan internationalfootwearsectorexpertwhoorganizedseveralvisitstoSerbianshoemanufacturersby internationalbuyers.Inpreparationfortheinwardbuyingmissionwhichbroughtforeignbuyersto Serbia,thefootwearsectorexpertvisitedSerbianshoemakerstopreparethemforthesevisits.The VranjeIMCalsobenefitedfromSLDP’stechnicalassistanceinthefurnituresector,includingto preparelocalproducersforinwardbuyervisits. DetailsonIMCsupportactivitiesandkeyresultsarepresentedinAnnexA,subsectionD. E.KraljevoIMC:CompetitivenessthroughInnovation TheIMCareawasformedinDecember2011.In2013,theprojectlaunchedtheeconomicprogram “KraljevoIMCCompetitivenessthroughInnovation.” Thisconceptfocusedonhelpinglocalinnovationcenterscreate50innovationsthatwouldleadto newSMEsalesinthemarketplace.TheKraljevoIMCarea'seconomicprofilerevealedagreatdealof manufacturingindiversesectors,mostlybySMEremnantsoflargestateͲownedenterprises,with pocketsofmoresophisticatedexportͲorientedcompanies.TospurinnovationandincreaseSME sales,theprojectworkedwiththeImPulsBusinessInnovationCenter,apartoftheFacultyof MechanicalEngineeringinKraljevo,toassistSMEsintheregioninapplyinginnovativesolutionsand becomingmorecompetitive.TheCenterprovided3Dscanningandprintingservicesusingadvanced designtechnologiesforawiderangeofmanufacturersofmetalandplasticproducts,fromfactories andindustrialdesignerstoscientificinstitutions.Withprojectassistance,theCentermorethan

SLDPFINALREPORT



Page|12

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

doubledthenumberofcompetedorders.SLDPorganizedworkshopsthatbroughtscientific institutionsandbusinessestogether,whichledtheIMPulsCentertojointheVojdovinaMetal Cluster(VMC),expandingitsclientlistbytheVMC’smorethan100members. DetailsonIMCsupportactivitiesandkeyresultsarepresentedinAnnexA,subsectionE. F.ZrenjaninIMC:DiversificationofAgricultureͲNewJobsforRuralYouth TheIMCareawasformedinDecember2011.In2013theProjectlaunchedtheeconomicprogram “DiversificationofAgriculture–NewJobsforRuralYouth.” ThegoalofthisconceptwastoincreaseIMCproductionofvegetablesultimatelymarketedto processorsby20percent.KeypartnersinthisactivityincludelocalgovernmentsofZrenjanin, KikindaandNoviBecej,twoassociationsofagriculturalproducers(BanatskaLenijaandCarskaBasta) andtheextensionserviceoftheMinistryofAgriculture.Thisconceptdealtprimarilywiththe diversificationofagriculturalproductionthroughcropintensificationbyaddingnew,highͲvalue crops.Addingvegetablestoexistingcroppingsystems,forexample,improvedtheoverall productivityoffarmsandpromotedthecreationofnewfarms.Tocomplementthiseffort,the projectalsoassistedinthepromotionandstrengtheningofvegetableproductionandfood processinginruralareastoprovideemploymentopportunitiesforyouth.Tosynchronizeactivities, theprojectheldadditionalmeetingswiththeProvincialSecretariatforAgricultureandidentifiedthe potentialofexistingfoodprocessingcompaniesthroughademandanalysisandassessed opportunitiestointroducenewproducts. In2014,SLDPenabledtheestablishmentofhorticultureincubatorsineachIMCmunicipalityby providingtechnicalassistancetolocalgovernmentsandunemployedruralyouthandpurchasing educationalgreenhousesforthebenefitoftenantsofincubators.Theactivitypromotedthe diversificationofagriculturalproductionandenhancedtheentrepreneurialandpracticalskillsof newyoungfarmersbyallowingthemtorunsmallfarmbusinessesandgrowvegetablesin greenhousesandopenfields,withreducedtimeandatalowercost.Thefarmincubatorprogram consistedoftwomainelements:aneducationalcomponentthatprovidedtrainingandmentorship infarmmanagementandvegetablecultivation,andaresourceͲbasedcomponentthatprovided land,infrastructure,equipment,andgreenhousesforqualifiedyoungpeoplewantingtostart farmingbusinesses.TheMinistryofYouthandSportsparticipatedinincubatorprogrambyproviding trainersinfarmmanagement. DetailsonIMCsupportactivitiesandkeyresultsarepresentedinAnnexA,subsectionF. G.SuboticaIMC:SuboticaIMCAgribusinessExpansion TheIMCareawasformedinNovember2011.In2013,theIMCandtheprojectlaunchedthe economicprogram“SuboticaIMCAgribusinessExpansion.” Thegoalofthisconceptwastoincreasedomesticandexportsalesofagriculturalproductsby10 percent.ThisconceptengagedtheLEDofficesofthreeIMClocalgovernmentsonthreespecific projects:(1)alaboratoryforagricultureproductsinSubotica;(2)alogistics/distributioncenterfor agriculturalgoodsinKanjiza;and(3)anagriculturaltrainingcenterinSombor.WithSLDP’s

SLDPFINALREPORT



Page|13

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

assistance,theSuboticaIMCidentifiedtheneedtoincreaseagribusinessoperationstocreatejobs. TheprojectprovidednewequipmenttoexpandthelaboratoryinSubotica,togivetheregionthe capacitytotestformorevarietiesofpesticidespresentinfoodandcertifythatlocalagricultural productsmeetstrictexportmarketrequirements.Inaddition,theSuboticaPublicHealthInstitute laboratorynowhastheequipmentandcapacitiestotestforthepresenceofpesticidesand pollutantsinlinewithEUandothermarketregulations.Theprojectalsoequippedanagricultural trainingcenterinSombor,implementinganannualcurriculumaimedatenhancingtheknowledge andskillsoffarmersandagribusinessestoincreaseproductionefficiencyandproductquality, introducenewcropvarieties,andapplyinnovativecultivationtechnologies. InApril2015,theSerbianunitofItalianconfectionerymakerFerreroGroup,Agriser,acquiredthe agriculturalassetsofSomborͲbasedfarmingcompany“AleksaSantic.”Theassetsinclude700 hectaresofagriculturallandwithfacilities.Ferreroinvestedinhazelnutproductionbysettingupa productioncenter,whileestablishingcooperationwithlocalproducers.DuringU.S.Ambassador MichaelD.Kirby’s2014visittoSombor,localofficialsemphasizedthatFerrero’sinteresttoinvestin theareawasboostedbytheexistenceoftheprojectestablishedAgricultureEducationCenter. BecausehazelnutcultivationisnotcommoninSerbia,Ferrero’sinvestmentwillrequiresignificant educationalsupporttolocalfarmersonnewtechnologiesandmethodsofgrowinghazelnut varieties. DetailsonIMCsupportactivitiesandkeyresultsarepresentedinAnnexA,subsectionG. H.NoviSadIMC:MetroNoviSad:FirstPlaceforBusiness TheIMCareawasformedinJuly2011.In2013,theIMCandtheprojectlaunchedtheeconomic program“MetroNoviSad:FirstPlaceforBusiness.”  ThegoalofthisIMCconceptwastoadd1,500newjobstotheIMCareaincollaborationwithkey partners,includingtheICTCluster,MetalCluster,LEDOfficeBeocin,andLEDofficesinNoviSad, TemerinandSremskiKarlovci.TheNoviSadIMCterritoryiseconomicallyvibrantwithgood infrastructure,aqualityuniversity,ahighͲtechculture,strongbusinesses,andphysicalbeauty.The projectcooperatedwiththeVojvodinaMetalCluster(VMC),agroupofmorethan116smalland mediumͲsizedmetalproducerswithaccesstoforeignandlocalmarkets.Theprojecthelpedthe Clusterprocurecustomerrelationshipmanagement(CRM)softwarethatallowedVMCmembersto connectwithpotentialforeignbuyersandtoinnovateanddiscovermorehighͲvalueproductsto offerthemarket.Asaresult,VMCmemberscouldconnectwithpotentialclientsmoreefficiently, cuttingthecurrentaverageof100daysresponsetimeforcustomerinquiriestonomorethan10 days.Inaddition,SLDPawardedagrantofapproximately$70,000totheVMCtoincreasethe competitivenessofitsmembersbyinvolvingthemintheproductionofaninnovative,clusterͲwide producttoincreasetheirsalesandexportsandtocreatenewjobs.Theresultingdeviceprovided computerͲcontrolledguidanceforplasmaweldingandcuttingmetalintocomplex,nonͲlinear shapes,enablingrepeated,exact,cutsatamuchfasterratethanhumanͲcontrolleddevices.The VMCestimatedthatwiththenewhardware,thenumberofcompaniesusingClusterserviceswould triple,whileproductioncostswoulddrop,makingVMCservicescheaperandmorecompetitive. TofurthersupporttheexpansionofVMCmembersinfindingnewmarkets,theprojectcooperated withtheSwissexportpromotionagency,SIPPO,toassistinimplementingalargebusinessͲtoͲ

SLDPFINALREPORT



Page|14

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

businessprogram.(SIPPOassistsSwissSMEsintheirinternationalbusinessventures.)Withthehelp ofSLDPshortͲtermtechnicalassistance,theprojectencouragedVMCmemberstoengagein collectiveprocurementtoachievemorefavorabletermsformembersthanwouldbepossiblefora singlecompany,developcollectiveoffers(thuscurbingcosts),andcreateinnovativeproductsthus increasingtheVMC’scompetitivenessonthemarket. DetailsonIMCsupportactivitiesandkeyresultsarepresentedinAnnexA,subsectionH. 

3.2SECTORSUPPORTFORSMALLANDMEDIUMͲSIZEDENTERPRISE DEVELOPMENT(ProjectComponent1) 3.2.1Textile–DenimProduction (NoviPazarͲledIMC) FollowingananalysisofsectorsacrossprojectͲsupportedInterͲMunicipalCooperation(IMC)areas, SLDPfoundthatthetextile(denim)sector,whichconsistedofentrepreneurialsmallandmediumͲ sizedfirms,wasoneofthemostactivesectors.Theassessment,conductedoverathreeͲweek, multiͲvisitinternationalSTTAassignment,foundthatsupporttobusinessesandclustersinthis sectorcouldleadtoanincreaseinemployment,export,andrevenue.Themostcompetitivefirmsin thesesectors,withthemostpotentialforexpansionandsuccessonforeignmarkets,werefoundin theNoviPazarͲledIMCarea,consistingofthecityofNoviPazarandTutinandSjenicamunicipalities. Aftertheinitialassessment,theprojectsupportedalaborgapanalysis,whichalsofoundthatnew skilledworkerswereneededinthedenimsector.Asaresult,SLDPactivitiesfocusednotonlyon expandingtherevenueof,andinvestments,inthesebusinessesbutalsoonbuildingtheskillsof futureworkerstoenablenewemployment.Inaddition,fromworkdoneinpreviousUSAIDprojects, SLDPnotedthatthedenimsectorinNoviPazarfacedseriousenvironmentalchallengesassociated withemittingunsafewaterintotheNoviPazarRiverasabyͲproductofwashingandfinishingits denimjeans.Finally,theNoviPazarjeanmanufacturers,owingtotheirlimitedsize,wereunableto competeinternationallywithinternationaljeansmanufacturersandneededtofindamarketniche forincreasedexportsbasedoncompetitiveadvantagesthathadtobediagnosedanddeveloped. TheNPCadoptedforNoviPazarcalledforexpansionofexportstoWesternEuropeanmarkets. ProjectspecialistsdevelopedamarketͲdrivenplanthatinvolvedalterationstofirms’theproduction proceduresandaddressedtheenvironmentalchallengeofeliminatingharmfuleffluentsduringthe jeansfinishingprocess.TheexpertsguidedkeymanufacturerstouseanewozoneͲfinishing technology,whichwouldallowthemtotargetanecologicallyconsciousmarketnichethatismore forgivingonpriceandwillingtobuyinmorelimited,boutiquequantities.Theentireprocessof consultingandassistancecanbesummarizedasfollows: TECHNICALASSISTANCE: x x x

Assessmentoftargetedinternationalmarketsanddemandanalysis Recommendationsonhowtodrawattentionandmeetthedemandofinternationalbuyers OneͲonͲoneconsultingonhowtoimprovekeyproductionandmarketingaspects

SLDPFINALREPORT



Page|15

SUSTAINABLELOCALDEVELOPMENTPROJECT

x x x x x



FINALREPORT 

Preparationofindividualmarketingplans,includingsocialmediapromotion Thewebsitewww.fashionserbia.com,whichpresentssixlocaldenimmanufacturerstothe RussianͲlanguagemarket. Trainingsonbusinesscommunicationandnegotiationsatinternationaltradefairs QualityͲcontroltraining(enablingtheintroductionofuniformqualityproceduresand standardizedproducts) Linkingjeansproducerswithprospectiveinternationalbuyers

ASSISTANCEFORPARTICIPATIONATTRADEFAIRS: x

“BreadandButter”TradeFairinBerlin,Germany

Participatingcompanies:Maxers,Mikan,Denis,Exelit,SKKRHisExactJeans,Join,BigBoys,Classic Jeans,Zemax–allfromtheNoviPazarͲledIMC ACCOMPLISHMENTS: x

x

x

SLDPsupportedtheeffortsofsixNoviPazardenimproducers,whichemploymorethan400 workersandexporttointernationalmarkets,toestablishanassociationcalledPROͲDENIM, andjointlyusetheozoneͲbasedtechnologyforjeansfinishing.Theprojectprocuredozone equipmentworth$280,650togiveNoviPazardenimmanufacturersacompetitive advantageandenablethemtoattracttheattentionofecologicallyconsciousbuyerswilling topaymoreforanecoͲfriendlyproduct.Thismodernequipmentbenefitstheenvironment, asitsignificantlyreducestheuseofwaterandenergy,andeliminatesharmfulbleaching agentsinthefinalstagesoftheprocessofjeansmanufacturing. TheprojectalsosupportedthreeNoviPazar–ledIMCAreadenimcompanies,Brug,Classix, andExactJeans,toopenajointretailstore,“JeansFactory,”inBelgrade’s“Stadion” ShoppingMall,andcontributedtotheselectionofasuitablevenue,helpedestablishthe jointbrandcalledJeansFactory,andhelpedfurnishthestore,whichreflectsthenewbrand. In2015,JeansFactoryreportedatotalsalesof$155,000,whileinthefirstthreemonthsof 2016,thestoremademonthlysalesof$41,000onaverage,a25percentincreasecompared withthesamequarterin2015.Duringthelastthreemonths,thestoreserved1,340 customerseverymonth,eachspendingapproximately$30. SLDPalsoworkedwiththeNoviPazarLeatherandTextileVocationalSchooltosharenew designandproductionconceptswithstudentswhowouldlaterjointhelocaljeanssector. Themanufacturerssupporteddevelopmentofnewcurriculumandinternshipprogramsto elevatethereadinessofstudentstocontributeeffectivelytotheindustryafterͲgraduation.

SLDPFINALREPORT



Page|16

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 





NoviPazarDesignandTextileVocationalSchool  studentstakepartinajeanfinishingtechniques trainingorganizedbytheProject’sexpert

 TheozoneͲfinishingfacilityatProDenim AssociationinNoviPazar



3.2.2FootwearSector (VranjeandNoviPazarͲledIMCs) Followingabroadassessmentofthefootwearsectorliketheoneperformedforthejeansindustry, ourinternationalfootwearconsultantusedhisknowledgeoftheglobalmarkettoassisteighthighͲ qualitySerbianshoemakersinapproachinginternationalbuyers.WorkingwithSLDPfieldstaffin VranjeandNoviPazarIMCareas,theteamsetaboutimplementingacocktailofdeeperfirm capacityassessmentandanalysisleadingtoadviceaimedatparticipatingintargetedtradefairs,and B2Bcontactsandnegotiations,supportedbymanagerialassistanceonsampling,orderscheduling anddelivery.Inadditiontofirmsthatourteamdiscovered,thefirmswithwhichweworkedwere partsofaclusterorwerefirmsthatformerUSAIDprojectsassisted;theoneimportantcriterionwas thateachofthefirmsmetstandardsthat,toourexpert,suggestedthattheyhadpotentialfor growthandpenetrationintoEuropeanmarkets. TheparticipatingcompaniesfromVranjewereStefiͲKomercandMinex;thecompaniesfromNovi Pazarwere4BrTref,Florida1994,Boša,Antilop,EuroScarpa,CecoLine Becausetheneedsandcapacitiesoffirmsandbuyersdiffered,wehavechosentoprovidethis generalmenuofservicesprovidedratherthanspecificdescriptionsinthisfinalreport.Thefollowing isalistofactivitiesimplementedoverthecourseofSLDP’sassistancetothefootwearsector. TECHNICALASSISTANCE: x x x x x x

AnalysisoftheshoesectorintheVranjeandNoviPazarIMCareas Assessmentoflocalproducers’productioncapacities,productquality,andexportpotential OneͲonͲoneconsultingandrecommendationsonhowtoimproveproduction,selectproduct assortment,andmeetthedemandofinternationalbuyers Selectionofproductportfolioandpreparationofcompaniesforinternationaltradefairs Linkingshoeproducerswithprospectiveinternationalbuyers Facilitating meetingswithbuyersabroad,organizingpresentationof samplesandinitiating negotiations

SLDPFINALREPORT



Page|17

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

ASSISTANCEFORPARTICIPATIONATTRADEFAIRS: x x

“GDS”InternationalTradeFairinDusseldorf,Germany “Tagit”byGDSTradeFairinDusseldorf,Germany

ASSISTANCEINMARKETINGANDPROMOTION: x

CreationofSerbianShoesumbrellabrand,websitewww.serbian.shoes.comandmarketing materials

ACCOMPLISHMENTS: x

x

x x

Conductedademandassessmentandidentifiedpossibleworkforcetrainingcentermodels bestsuitedtothelabormarketneedsofpresentandpotentialinvestorsintheVranjeregion throughagranttotheNGOConfIndustria,anItalianͲSerbiantradeintermediarywhoseclient was GEOX and other Italian investors interested in developing workforce potential in and aroundVranje. EnabledanagreementbetweentheinternationalshoemakerGeox,whichopenedafootwear factoryinVranjeatanindustrialparkdevelopmenttothedevelopmentofwhichtheProject also contributed, andthe localVocational Education and TrainingSchool ofChemistry and Technology(SCT)tojointlydefinecurriculathatwouldleadtomoreskilledandlabormarketͲ readystudents Facilitated an agreement between Geox and the SCT to organize onͲtheͲjob trainings for studentsoftheschool,andteachthemhowtoworkwithleather TheprojecthashelpedaVranjeͲbasedfootwearmanufacturerStefiKomerctopresentsample productstotheFrenchSoleCompany,alarge,UKͲbased,producerofballerinaͲflatshoesfor women, and to discuss the sale of several models. Representatives of the Vranje shoe producermetwiththeBritishcompany’sexecutivesattheirpremisesinBerkshire,London, presentedthemwithsamplesandagreedtoadvancenegotiations. 

  SLDPassistedcompanieswhichattended  theGDSTradeFairincreatingaShoes fromSerbiabrandandacatalogueof theirfootwearproducts

DuringSeptember2015,theprojectassistedtheSerbian footwearproducerStefiKomerctopresentsampleproductsto representativesoftheFrenchSoleshoecompanyinLondonand discussthesaleofseveralmodels

 SLDPFINALREPORT



Page|18

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

3.2.3Wood/FurnitureSector (Uzice,Nis,Kraljevo,andNoviPazarͲledIMCs;countryͲwide) FollowinganassessmentandanalysisofsectorsacrossSLDPͲsupportedIMCAreas,SLDP's internationalexpertandlocalteamfoundthatoneofthemostactivesectorsthatconsistedof entrepreneurialsmallandmediumͲsizedfirmswasthefurnituresector.Theassessmentconcluded thatowingtoChina’swithdrawalfromtheinternationalfurnitureexportsector,therewasa promisingopportunitytoexportSerbianͲsourcedfurnituretoEurope.Therealquestioniswhether furnitureproducedinSerbiaisofthequalitythatglobalbuyersdemand,andbecauseSLDPwasa regionalproject,thisquestionwasnecessarilyoneformanufacturersinourIMCareas.Ourinitial assessmentconcludedthatformanyreasons,itwillbehardforSerbianfurnituremanufacturersto achieveexportquality.Thisassessmentledtheprojecttoconcludethatitwouldbeharderto increaseexportsinthefurnituresectorthanineitherthejeansorfootwearsectors;however,two factorsjustifiedcontinuedeffort.First,IKEAwasbringingitsretailbusinesstoSerbia,andour expert'sconnectionswithIKEAledustobelievethatIKEAwashungrytosourcefromSerbian producers.Second,Serbiahasuntappedforestresourcesandtheglobalmarkethasanunlimited appetiteforwoodenfurnitureproducedinEurope.Theprojectdecidedtogoaheadandconcentrate onbothofthesefactors,owingtotheemploymentintensityandbenefitstopoorerregionsoffered byincreasedfurnituremanufacturing. WithrespecttosupplyingIKEAandlikeͲmindedEuropeanbuyerseagertosourceinEuropeand Serbia,ourconsultantandourlocalregionalteamtraveledfarandwidetofindqualityproducers interestedinmeetingIKEA'shighstandardsandtransactingbusinesswithEuropeanbuyers.Starting inNoviPazarandVranje,theteamexpandedtosearchforsuppliersinNis,partsofVojvoidinawhere theprojectworked,andUziceandKrajlevo.Arosterofmanagerial,operational,andmarketing advicewasofferedincollectivetrainingandsingleͲfirmmeetings,andourexpertconsistentlysought tofindwilling,hardͲworking,andcapablefirms.Amongthefirmswithwhichourexpertworked continuouslywereAtlas,TamiͲTrade,GIR,Dallas,DasaNameštaj,Hersa,AvisExportͲImport,andStilͲ Jasen.Thegoalwastoconnectthesefirmswithrealbuyersandtoguidetheminnegotiations; despitesomewarmconnectionsandspecificationsampling,however,thesemanufacturerswere abletoclosenoharddealswithEuropeanbuyers. AsasupplementtofirmͲlevelassistance,SLDPalsoworkedtomakeSerbiaasourceofEuropeanͲ sourcedgeneralfurniture.OurexpertledSerbianmanufacturerstointernationaltoursandfairs,for whichotherspaid,sothattheycoulddiscoverwhattheysimplydidnotyetknowaboutinternational standardsanddesign.Perhapsofgreatestlastingvaluewasproject'scontributiontotheBelgrade FurnitureFair,wherefortwoyears,ourconsultantworkedwiththefair'sleadershiptomakethefair moreofabuyerͲtoͲbuyerfair,whereattendancebyEuropeanbuyers,treatedcorrectly,waspivotal toenhancingtheinternationalreputationofSerbianofferings. InthefinalyearͲandͲaͲhalfoftheproject,ourteamaddressedtheissueofSerbia’sopportunityto becomeasourceofwoodfurniturewithrenewedforce.Thisisacomplexidearequiringintense workatalllevels,butitisjustified,becausethedemandofglobalfurniturebuyersforwooden furnituremanufacturedinEuropeisdeepandexpanding,Serbia’sforestresourcesprovidea competitivecostadvantageunavailableinmostothernationsofEurope,andtheforestsare underutilizedfortheproductionofthetypeofhighͲvalue,exportablewoodproductsdemandedby

SLDPFINALREPORT



Page|19

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

globalbuyers.Over10months,aftertestingtheideainseveralmeetingswithindustryandlocaland nationalgovernment,SLDPinitiatedseveralnationwideinitiativesforpositioningSerbiaasawood furnituresourcingcountry.Althoughthecoreofinterestintheseinitiativesisinterritoriesofour IMCactivities,forthisinitiative,wealsoincludedforestedcommunitiesoutsideourassigned geographicalreach.Thisisbecausetheopportunityisripewherevertherearehardwoodforestsin Serbia. Below,wesummarizeourvariedactivitiesdesignedtoexpandtheexportsofthefurnituresectorin ourregionsandinSerbia. TECHNICALASSISTANCE: x x x x x x x x

AnalysisofthefurnitureindustryintheVranjeandNoviPazarIMCareas Assessmentoflocalproducers’productioncapacities,productquality,andexportpotential OneͲonͲoneconsultingandrecommendationsonhowtoimproveproduction,selectproduct assortment,andmeetthedemandofinternationalbuyers Selectionofproductportfolioandpreparationofcompaniesforinternationaltradefairs TrainingsandorganizationofbusinessͲtoͲbusiness(B2B)meetingswithpotentialbuyersat theBelgradeFurnitureFair Linkingfurnitureproducerswithprospectiveinternationalbuyersandchains,includingIKEA RecommendationsonproductͲandbusinessprocessimprovementsneededforacompany tofulfillthequalitystandardsandbecomeanIKEAsupplier OrganizingbestͲpracticestudytoBosniancompanyNovaDIPO,alargemanufacturerofsolid woodchairsexclusivelyforIKEA

ASSISTANCEFORPARTICIPATIONATTRADEFAIRS: x x

“InternationaleMöbelMesse”TradeFairinCologne,Germany AssistingtheBelgradeFurnitureFairtoattractforeignbuyersandincludeaB2Bsegmentas partoftheFair

ACCOMPLISHMENTS: WoodFurnitureInitiative:WiththesupportofUSAIDSustainableLocalDevelopmentProjectand EuropeanPROGRESProgram,representativesof46localgovernments*fromsoutheastand southwestSerbiaparticipatedintheactivitiesaimedtorevivetheproductionofsolidwood furniture.TheSerbianChamberofCommerce(PKS)andtheDevelopmentAgencyofSerbia(RAS) werepartnersineffortstorestartthewoodprocessingindustry. Bytheproject'send,SLDPandtheEuropeanPROGRESprojecthadhelpedlocalauthoritiesand furnituresectorbusinessestodevelopanationalActionPlantoencompassshortͲtermandlongͲ termmeasuresneededtobuildawoodfurnitureproductionpowerhouseinSerbiabyimproving woodͲprocessingutilizationandproduction,increasingexportsofwoodfurniture,andcreatinga workforcetopopulatethenewjobsprofilesthatwillemerge.ActionPlanmeasuresinclude: x x

allocatingforestresourcestosupporttheirhighestvalueͲaddedutilizationbywoodfurniture manufacturersthatexport stimulatinginvestmentintowoodfurnituremanufacturingcapacity

SLDPFINALREPORT



Page|20

SUSTAINABLELOCALDEVELOPMENTPROJECT

x x x x



FINALREPORT 

improvingvocationaltrainingtobringadditionalskilledworkersintotheexpandingindustry improvingthecompetitivenessandefficiencyofwoodfurnitureproductiontoworld standards upgradingthedesigncapabilitiesofwoodfurnitureproducers strengtheningcooperationamongpublicauthorities,forestmanagers,furnitureproducers, andothervalueͲchainactorsthroughappropriateforestindustrypolicyandregulatory reform.

ThisActionPlanwaspresentedbylocalgovernments*tothedirectoroftheSerbianDevelopment Agency(RAS),whocommittedtheGOStogoforwardandseetoitsimplementationwiththe assistanceofdonorsandallrelevantagencies.RepresentativesfromtheMinistryofEconomyand SrbijaSuma,thestewardagencyfornationalforestresources,alsomadeapubliccommitmentto pursuingimplementationoftheActionPlan.Regrettably,SLDPterminatedshortlyaftertheAction Planwaspresented,buttheprojecthashopethatallstakeholderswillmoveforwardwith implementationinadetermined,efficientway.  *LocalselfͲgovernmentsignatoriesoftheLetterofIntentcommissioningtheActionPlanand committingresourcestoitscreationandonwhosebehalfthePlanwaspresentedformallytothe GOSwere:Arilje,BajinaBašta,BelaPalanka,Boljevac,Bor,Brus,aēak,ajetina,iđevac,CrnaTrava, Despotovac,Dimitrovgrad,GadžinHan,Ivanjica,Knjaževac,Kosjeriđ,Kraljevo,Krupanj,Kruševac, Kuēevo,Kuršumlija,Leskovac,Ljubovija,Loznica,Majdanpek,MaliZvornik,Niš,NovaVaroš,Novi Pazar,Pirot,Priboj,Prijepolje,Raška,Ražanj,Sjenica,Surdulica,Svrljig,Trgovište,Trstenik,Tutin, Užice,VladiēinHan,Vranje,VrnjaēkaBanja,Žagubica,Zajeēar. 

StudyvisittotheNovaDipoCompanyinBosniaandHerzegovinaͲ alargemanufacturerofsolidwoodchairsexclusively forIKEA

SLDPFINALREPORT



Page|21

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

LetterofIntent,supportedby46localgovernments,SDA(RAS),ChamberofCommerce,USAID/SLDP,EUPROGRES presentedattheForum:“PositioningSerbiaasawoodfurnituresourcingcountry”,March2016.Thisledtothecreation andformalpresentationofanationalActionPlantomakeSerbiaaEuropeanmanufacuturingsourceofwoodfurniture.

 

SLDPFINALREPORT





Page|22

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

3.2.4MetalProcessingSector (NoviSadͲledIMCandProvinceofVojvodina) Theactivity’sobjectivewastoincreasecompetitivenessoftheVojvodinaMetalCluster(VMC) membersbyinvolvingthemintheproductionofthefirstinnovative,clusterͲwideproductto increasetheirsales,exports,preservetheexistingandcreatenewjobs.Theactivityalsocontributed toincreasedcapacityofVMCtoprovidetrainingandservicestoitsmembersandincreasing internationalvisibilityoftheclusterandenablebetterpositioningontheglobalmarket. Inthisactivity,theprojectusedaninternationalmetalconsultantandaninternationalbusiness consultant.Thebusinessconsultantwasbyfarthemoreproductiveandimaginativewithregardto whatneededtobedonewithintheprescribedworkparameters.Becausetheprojectstartedwith theIMC,anentitywhosestartͲupwasfundedbyagenerousEUgrant,andbecausewepartnered withaSwissprojectthatwasobligatedtoworkwithclustersandorganizationalstrengthening,SLDP spentmostofitsallottedefforttryingtomaketheVMCanentitythatofferedrealservicestoits members.Thiswasanalternativeapproachtoothersectorworkontheproject,wherewewere focusedonthepenetrationbymultiplefirmsintonewmarkets.OurworkwithVMCrequiredour businessconsultant’sskillsinorganizationalchangemanagementandhelpingtoredirectVMC's missioninawaythatwouldincreaseefficiencyandrelevancy. Inthisregard,theprojecthelpedtheClusterprocureCustomerRelationshipManagement(CRM) softwarethatallowsVMCmemberstoconnectwithpotentialforeignbuyersandtoinnovateand discovermorehighͲvalueproductstoofferthemarket.CRMelectronicallyfacilitateslinkages betweenprospectiveinternationalbuyersandtheVMCbyannouncingprocurementopportunities toClustermembersandfollowingupwithmemberswhoneedmoredetails.Theprojectalsofunded developmentofaninteractivemapofVMCmembers,procurementofaComputerNumerical Control(CNC)cuttingtable,anddevelopmentofanewClusterͲwideproduct. Beyondthesespecificinterventions,theProjectalsoconvincedVMCtobeginformingadomestic supplychainnetworkthatwouldlinkdomesticanchorfirmsthatalreadyexportsophisticated productswithsmallerSerbianmetalfirmscapableoffabricatingcomponentsfortheexportchain. TheprojectcoachedVMCtoexpanditsmembershipbyaddinglargeproducersfromCacakandto initiateseveralactivitiesconcentratedonsupplychaindevelopment.Inallcandor,moremonitoring oftheseactivitiesandmoreassistancemaybenecessarytoensureprogress,andourmetal consultant,wholivesinSerbia,isactivelylookingforwaystosupportsuchadditionalconsulting.

InApril2015,theprojectdeliveredaCNCcutting tabletotheVojvodinaMetalCluster,enabling clustermemberstobecomemorecompetitive

 Aspartofaprojectgrant,theVMCbegantesting prototypeundergroundwastecontainers.Once installedthecontainerscanbeusedhandsͲfreeand servicedbyexistinggarbagetrucks

 SLDPFINALREPORT



Page|23

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

3.3AGRIBUSINESSENHANCEMENT(ProjectComponent1) 3.3.1HorticultureIncubatorProgram (ZrenjaninͲledIMC) TheprojectassistedtheZrenjaninͲledIMCAreatodevelopandimplementahorticultureincubator programtoexpandtheproductionofhighlyprofitablevegetablesintheregionandtoreducethe timeandcostofestablishingfarmstartͲuphorticulturalbusinesses.ThoughVojvodinahasgood potentialforsupplyinglargermarketsinEuropewithvegetables,itsagronomycentersonwheatand grains,andoneofthegoalsoftheregionalgovernmentistoencouragethediversificationof regionalproduce.Withprojectsupportandthestrongadvocacyoflocaladministrations, greenhouseswereinstalledatthreeIMClocations—Kikinda(12greenhouses),NoviBecej(4 greenhouses)andZrenjanin(15greenhouses)forusebyacompetitivelyselectedgroupofyoung farmers,whoattendedtrainingandperformancecoursesinadvanceoftheirselection.The municipalities,acknowledgingtheneedtotrainyoungfarmersinallͲseasonhorticulture,provided thelandplotsandassumedresponsibilityformaintainingthestructures.Fromtheverybeginning, ourlocalconsultantsconductedperiodicfieldvisitstoZrenjanin,NoviBecej,andKikindatoinspect theincubators,monitortheworkoftheincubatortenants,andadvisemunicipalofficialsand tenantsonhowtokeepincubatoroperationsrunningsmoothly.Theconsultantsalsoprovided recommendationsonthepotentialmarketsandsalesoffreshvegetableproducts. Theinitiativecanbesummarizedasfollows. TECHNICALASSISTANCE x

x

Aninternationalconsultantpreparedademandanalysiswithrecommendationsonhowto developpotentialbuyersandbuyernetworksforhorticulturalproductsgrowninVojvodina, andontheproductandserviceimprovementsnecessarytomeetthatdemand,including trainingfornewfarmersinnewtechniques. Alocallyhiredconsultantguidedtheestablishmentoftheincubators,oncetheIMC's municipalleadershipagreedonthedesirabilityofdoingso.

MATERIALASSISTANCE x

TheProjectprocuredandinstalledtheequipmentfortheHorticultureIncubatorProgram, whilethemunicipalitiesprovidedtheground,utilityinstallations,andmaintenanceservices forthegreenhouses.

ACCOMPLISHMENTS: x

x

Morethan60unemployedyouthweretrainedinfarmmanagement,and31ofthese trainees,whodidthebestinthetraining,beganvegetableproductioningreenhouses themselves. Thefirstseasoninthegreenhousesresultedin45tonsofproducesoldonthelocalmarket orexported,generating$40,000inincomeforyoungfarmers.LongͲtermrelationshipswere

SLDPFINALREPORT



Page|24

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

formedwithanumberoflocalprocessors,ensuringthecontinuedsuccessfulutilizationof thegreenhouses.

InNoviBecej,oneoftheHorticultureIncubatorProgram participantscheckshiscrops



TheProject’sHorticultureIncubatorProgramreceived positivemediaattentionandwashighlightedasabestͲ practiceexampleforemployingruralyouth



 3.3.2ProducttestinglaboratoryservicesintheRegionalCenterforAgricultural Development(RCAD)inSjenica (NoviPazarͲledIMC) TheRegionalCenterforAgriculturalDevelopment(RCAD)inSjenicawasestablishedin2011to provideconsultingservicestofarmersfromtheNoviPazarͲledIMCarea.Thecenterwasexpanded whenalaboratoryfortestinglocalfoodproductswasbuiltandequippedin2013and2014,with contributionsfromtheEUPROGRESProgramandtheCzechDevelopmentAgency.SLDPprovided technicalconsultingtothelaboratorystaffasitrampedupforcertificationandforprovisionof servicestolocalgrowers. TECHNICALASSISTANCE x

x x

WithUSAIDsupportandincooperationwithalocalpartnerTaurusAgroConsulting,the RCAD’sstaffwastrainedtointroduceandimplementISOstandards,toproperlysamplemilk andmeatproductsatlocalfarms,tocalibratelaboratoryequipment,andtoadvisefarmers onimprovingthesafetyandqualityoftheirproducts. Theprojectalsotrained30dairyandlivestockfarmersandprocessorsonhowtoimprove productionpracticesandmeetlaboratorystandards. Theprojectengagedalocalbackstoppingexperttoassistthelaboratorystaffduringcritical phasesoftheaccreditationprocess,includinginadjustingtestingproceduresinaccordance toISOstandards,basedonrecommendationsfromtheAccreditationBodyofSerbia(ATS).

ACCOMPLISHMENTS: TheaccreditationprocessisitsfinalstageandisexpectedtobecompletedinAugust2016,when testingservicesforfarmersandprocessorswillalsobegin.Morethan10,000agriculturalhouseholds

SLDPFINALREPORT



Page|25

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

anddozensoffoodprocessorsfromSjenica,Tutin,andNoviPazar,aswellasneighboring municipalities,willbenefitfromthelaboratoryservices.

3.3.3CenterforCollectionandProcessingofNonͲTimberForestProducts(NTFP)inTutin (NoviPazarͲledIMC) Withprojectsupport,themunicipalityofTutin,amemberoftheNoviPazarIMC,developedaPPP conceptforpotentialinvestorstoestablishacenterforcollectionandprocessingofnonͲtimber forestproducts(NTFP),suchasforestfruits,mushrooms,andmedicinalandaromaticplants.The conceptambitiouslyenvisagedproductionofafinishedspecialtyfoodproduct–retailpackaged teabags.Themunicipalityplannedtoofferapotentialforeigninvestorlandandalocationpermitfor aprocessingfacility,thefirstofitskindintheregion.ThisPPPwasconceivedandpresentedunder theauspicesofagrantgiventoNALED,aUSAIDlegacyNGOlocatedinBelgrade,andwasoneofa numberofPPPconceptsthroughoutSLDP'spartnerterritoriesthatNALEDfacilitatedintofixed proposals. TECHNICALASSISTANCE: x

x

ToassistTutinindefiningaproposedPPPconceptinregardtoitsrawmaterialsupply capacitiesandmarketdemandforNTFPproducts,theprojectbroughtinaninternational expertwithmorethan35yearsofexperienceinthisfield.Severalproductsshowedgreat potentialforcollectionandprocessingbothfromthesupplysideandmarketdemandside. TheprojectprovidedadditionalguidanceintheprocessofestablishingthePPP,suchas preparingthedryingfacilityandassistingpartnersinaccessingadditionalfundsfromtheEU PROGRESprogram’sgrantscheme. Tocreateconditionsforinvestmentattraction,abusinessdevelopmentplanwasmade,with recommendationsforTutintoestablishadryingprocessingfacilitywithinthemunicipally ownedAgroͲTutinenterprise.

ASSISTANCEFORPARTICIPATIONATTRADEFAIRS: x

TheprojectintroducedTutinofficialsandotherstotheBiofachOrganicFoodFairin Nuremberg,Germany,heldinFebruary2015.

ACCOMPLISHMENTS: x

x

Tutinidentifiedavailablelandandallocated$62,000initsmunicipalbudgetforthe installationofafacilitythatwillaccommodatetheplannedprocessinganddrying operations.Themunicipalityissuedacompetitivetenderandselectedafirmtoclearand preparethesiteforthecenter’sbuilding.Italsoauthorizedandexecutedanaccelerated processtoissuethenecessarypermitsforthedryingfacility. Oncethedryingcenterisupandrunning,threelocalentrepreneurswillstarttheirown processingbusinessandaddvaluetocollectedwildNTFPsbydrying,cleaning,andbundling. ThepickingseasonstartsinAugust,andsome100pickersfromtheregionalruralareaswill benefitfromthecenter,astheywillbeorganizedandcontractedfortheirservicesat definedamountsofcollectedmaterialsandmoreprofitableprices.Inthelongterm,the centerwillserveasadrivingforceforthedevelopmentofanentiresupplychainofskilled

SLDPFINALREPORT



Page|26

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

collectorsandincreasedcollection,processing,andsalesofNTFPsfromtheIMCArea. Consequently,dozensofsmallfamilybusinessesareexpectedtoinvestinprimary processing.

3.3.4FoodͲtestingequipmentforSuboticaLaboratorytoenableincreasedexport (SuboticaͲledIMC) InMay2014,theprojectdeliveredequipmenttotheSuboticaPublicHealthInstitutelaboratory, upgradingtheInstitute’scapacityandmakingitpossibleforthelaboratorytoanalyzeregionalfood products.Thelaboratorynowhastheequipmentandcapacitiestotestforpesticidesandpollutants, inamannercompliantwithEUandothermarketregulations.Localfarmersandfoodprocessors throughouttheIMCareanolongerhavetotraveltootherregionsforpropertestingoftheircrops, whichsignificantlyreducesthecostofanalyzingandcertifyingtheirfoodforexport.InJune2015, thelaboratoryreceivedfullaccreditationfollowingarigorousevaluationprocessandseveralcontrol auditsconductedbytheAccreditationBodyofSerbia. ASSISTANCE: TheprojectprovidedthelaboratoryequipmentandhelpedtraintheInstitute’sstaffinhowtouseit effectively. ACCOMPLISHMENTS: FromOctober2015toMarch2016,theLaboratoryconducted82pesticideresidueanalyses.The Institutetestedproductsof18exportͲorientedagribusinessandfoodͲprocessingfirmsfromthe Suboticaregionandnearbydistricts.Theproductstestedwereprimarilyfromproducersoffrozen, dried,andcannedfruitandvegetables.TheInstitutehasalsobeenprovidingtestingservicesto importersofrawmaterialsandingredientsforfurtherprocessingintheIMCArea,suchasvarious cerealmashesmadeofrice,oats,corn,wheat,andbarley.Inaddition,thecertificationbodyfor organicproductionfromSubotica,"OrganicControlSystem,”usedtheInstitute’slaboratoryservices totestitsclients’productsandenablethesalesandexportoforganiccrops. 3.3.5SomborAgricultureEducationCenter (SuboticaͲledIMC) TheProjectworkedwithSomborandneighboringSuboticaandKanjizamunicipalitiestoincreasethe region'scapacitytoassistitsfarmersonmattersofcommercialagriculture.InAugust2014,theCity ofSombor,theregionalAgricultureExtensionServiceandtheprojectjointlyestablishedan AgricultureEducationCentertohelpfarmersacquirenewskillsandknowledgenecessarytoincrease productivityandproductquality.TheinclusionoftheAgriculturalExtensionServiceinthiseffort provedinvaluable.Perhapspredictably,theAgriculturalExtensionService'scapacitiesareuneven throughoutthenation;however,theService’sdirectorinSomborisanactiveandintelligentperson whoguidedthecreationoftheEducationCenterfromstarttofinish,andremainsinvolvedinits programmingandactivities.TheAgriculturalExtensionService'sadjoiningfieldscomplementthe center'sworkbyprovidingcapacityforpracticalfieldexperimentationandinnovativepilotprojects. 

SLDPFINALREPORT



Page|27

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

ASSISTANCE: Theprojectdeliveredthedesignforthereconstruction,purchasedthenecessaryteaching equipment,andfurnishedthecenter.Thismoderneducationfacilityincludesanamphitheater,two classroomsandexperimentalfieldsfortestingnewcropsandpesticides.Morethan24,000 agriculturalhouseholdsfromtheIMCmunicipalitiesofSombor,Subotica,andKanjiza,aswellas neighboringmunicipalitiesinotherterritoriesbenefitfromthecenter’sservices.Agricultural producersarenowlearninghowtointroducenewcropvarietiesandapplymodernfarming technology. ACCOMPLISHMENTS: x x

In2014and2015,theAgricultureEducationCenterinSombordelivered115trainingevents andpresentations,attendedbyanestimated8,700persons,mostlyfarmers. AtthetimeoftheAgricultureEducationCenter'sopening,Somborwasinnegotiatingwith theFerreroGroup,oneoftheglobalmarketleadersoftheconfectioneryindustry.TheItalyͲ basedcompanywaslookingtostrengthenitspresenceinthehazelnutmarket,toguarantee andfurtherimprovethequality oftherawmaterialthatgivesa uniquetastetoitspopular “Ferrero decided to invest in Sombor products,suchasNutella, because of the climate, land quality and FerreroRocher,andKinder location, but also the Agriculture Bueno.InApril2015,Ferrero Groupdecidedtomakean$8.8 Education Center and our determination millioninvestmentinthe to support farmer education,” said Mayor territoryandpurchased Sasa Todorovic. When the deal was approximately700hectaresin announced to the public, in addition to SombortoestablishahazelnutͲ initial 50 new jobs, Ferrero presented its growingoperation.Hazelnuts long-term plan to engage, educate and, havealonginvestmentcycle financially assist local farmers to start andneedseveralyearstobear growing this crop. fruit.TheEducationCenter, whichdemonstratesthe region'spubliccommitmentto agriculturalqualityandeducationplayedapartinFerrero'sdecisiontoinvest.



SLDPFINALREPORT



Page|28

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

3.3.6The‘MountainBreakfast’Brand (UziceͲledIMC) TheUziceIMCareaconsistsoftherelativelylargeand prosperouscityofUzice,asuccessfultouristresortin Zlatiborandseveralsmaller,moreeconomicallyhardͲ hitmunicipalitiesonthewesternsideofthePeshtar mountainridge.Consciousofthedisparityinwealthin theregionandthediversityofterritorialpotential,the projectandtheleadersofallthemunicipalitiesagreed thataprogramneededtobefoundtohelpallIMC townsincreasejobsandrevenues.Theideathat emergedrecognizedthepotentialofthealready successfulZlatibortourismdestination,whichwas alreadyreceivingsupportfromEuropeandonors,to pullitsregionalneighborsintoitsvaluechain.The The‘MountainBreakfast’brand,createdby mostdirectwaytodosowastocreatesupplychains RDAZlatibor,throughaProjectgrant,was fromregionalvendorstotheultimatebuyersinthe presentedattheBelgradeTourismFairin Zlatibortourismcluster.AstheZlatibortourism February2015. destinationwasalreadytryingtocreatearegionalbrandtodifferentiateitselffromother destinations,theuseoflocalproductswasseenasanenhancementofthiseffort. SLDPgaveagranttotheZlatiborRegionalDevelopmentAgency(RDAZlatibor),oneofthebestRDAs inthecountry,tocreateasupplychainforthetourismsectorinZlatibor.TheRDAwastaskedwith surveyingtheZlatiborhotelsandrestaurantsandshopstodeterminewhattheypurchasedandfrom where.ThegrantthencalledfortheRDAtoscantheIMCregionanddeterminetheofferingsfor goodsandservicesthatcouldbemadeavailabletofillZlatibortourismproviders’purchasingneeds. TheRDAwasthenrequiredtochooseamongapaletteofproductsandvendorsandpicktheone thatofferedthebestpotentialfordevelopingsupplyrelationshipsquicklyandinawaythat facilitatedtransactionswithanIMCͲwidearrayofvendors.Ultimately,theRDAdecidedtocreate andmarketalocalgastronomicalbrandandtopromoteitthroughregionaltourismagencies,hotels, andrestaurantsbyidentifyingregionalvendorsandproducersoflocalfoodproductsandhandicrafts toparticipateaspreferredproviders.TheactivitygatheredrepresentativesoftheRegionalChamber ofCommerce,associationsofhotelsandrestaurants,regionaltouristorganizations,andtravel agenciestojointlycreateuniqueculinarychoicesspecifictotheregionalmountainresortsof Zlatibor,Zlatar,andTara.Thebrand,called"MountainBreakfast"wascreated,buyersandsellers werelinked,andacateringproductwasofferedbyparticipatinghotelsandrestaurants.Inaddition, alocalshopinNovaVarosandanonlinemerchandisingplatformwereinaugurated,wherevendors couldpresentandsellfoodandhandicraftproductsundertheMountainBreakfastbrand.

SLDPFINALREPORT



Page|29

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

Ascanbeseenfromthephotosbelow,theprojectwonaprestigiousnationalawardforregional tourisminnovationandqualityandthestoreinNovaVarosisthrivingandhasbegunitssecond season.

InSeptember2015,theNationalTourism OrganizationofSerbiaawardedtheMountain BreakfastbrandwiththeTourismFlower award,thehighestnationalawardinthefield oftourism

Topromoteanewregionalgastronomicbrand,a shopsellingtraditionalproducewasopenedin May2015,attheZlatarresort







3.4INNOVATION(ProjectComponent1) 3.4.1ICTAcademies (NoviSadandNis–ledIMCs) InApril2014,tohelpyoungpeoplefind employmentquicklyandtohelp Speaking at the Academy launch companiesfindaqualifiedworkforce, ceremony, Nis Mayor Zoran Perisic said: USAIDandSLDPsupportedthe “We are glad to partner with USAID and establishmentoftwoICTCluster NiCAT on this initiative. The city of Nis Academies,oneinSouthSerbia,inNis, supports the opening of this Academy, andtheotherinVojvodinaProvince,in because the IT sector has been selected NoviSad.Tocreateanadequate as one of four pillars of the country’s curriculum,theprojectpartneredwiththe economic development in the forthcoming NisClusterofAdvancedTechnologies period.” (NiCAT)andtheVojvodinaICTCluster, bothNGOs.Thegrantswereawarded afterextensiveonͲgroundresearchabout thenatureoftheICTindustriesinbothNISandNoviSad.ThoughtheICTindustryinbothcitiesis thrivingwitheverͲincreasinginternationalanddomesticdemand,businessesperceivealackofwork forcesufficientlyqualifiedtogoimmediatelyintoproductivepositionsatfirms.Basiccomputerskills arehighamongpersonsseekingemploymentinthesector,butmorerefinedandnuancedskillsare simplynotavailableamongthepoolofcandidatesneededtoworkinthehighͲendICTsector.The curriculadevelopedandtaughtcollaborativelywiththeprivatesectorattheseAcademieswas gearedtothemoresophisticatedneedsofsuccessful,growingfirmsintheindustry.

SLDPFINALREPORT



Page|30

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

TheAcademies’accomplishmentsintheirinitialyearsaresummarizedbelow: ACCOMPLISHMENTS: x

x

DuringasixͲmonthtrainingprogram,65unemployedyoungpeopleacquiredskillsin demandinthelabormarketpreparingthemforjobsintheITindustry.Theprogramalso includedintensivepracticalworkwithNiCATandVojvodinaICTClustermembercompanies. 41trainingparticipantsfoundnewemploymentaftercompletingtheICTAcademyprogram.

ThesetwopilotprogramsinthenorthandsouthofSerbianowserveasbestpracticemodelsfor otherindustriesandregionstofollow.

(NiCAT)NisICTClusterAcademystudentsreceiveddiplomasataNovember25,2014graduationceremony 



3.4.23DImPulsCenterinKraljevo (KraljevoͲledIMC) TheProjectworkedwiththeImPulsCenter,apartoftheFacultyofMechanicalEngineeringin Kraljevo,toassistSMEsintheregiontouse3ͲDprintingfordesignandreverseͲengineering solutions.Thecenter,formedfromanEUgrantthatpaidfortheacquisitionofalargeItalian3ͲD printer,lackedcustomersandimpactwhenSLDPfirstinvestigateditspotentialasaforceof innovationcompetitivenessintheregion.Thatwasparticularlypainfulreality,becausetheregion, whichincludesthemunicipalitiesofCacak,NoviMladenivac,andKraljevo,withproximityto KragujevacandKrusevac,hostsseveralsmallandlargeindustrialproducersofmetalandplastic products,whichcouldbenefitfromusingtoolsforgreaterproductivity,suchas3ͲDprinting.A challengefortheCenterwastoswitchitscharacterfromanacademicnaturetoacommercially orientedonetoensureitssustainabilityasacommunityasset. ThefollowingmenuofactivitiesandaccomplishmentsreflectourworkwiththeImPulsCenterasa contributiontothisIMCarea. 

SLDPFINALREPORT



Page|31

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

ASSISTANCE: x

x

x x

x

TheProjectfurnishedamultimedialaboratorytotheImPulsCenter.Thelaboratoryisused tohelpregionalfirmslearnabout3ͲDtechnology,improveproductandtechnicalknowledge andreduceproductioncosts. AspartofamultiͲIMCactivitywiththeNišandNoviSadterritories,theprojectsponsoredan innovationstudytourtotheUKincooperationwiththeBritishCouncil.Thetourwas designedtoshoweducators,businessrepresentatives,scientists,andbusinessassociations howuniversitiespartnerwithbusinessinothercountriestofosterandpromotecommercial innovation.RepresentativesfromtheImPulsCenterwereactiveleadersinthisstudytour,as oneofSerbia'sbestexamplesofuniversityͲbusinesscooperationonpromotingandusing innovationforcommercialcompetitiveness. Websitedevelopment. TheProjectorganizedastudytourtotheCzechRepublictointroduceImPulsCenterstaffto Czechexperiencesinusing3ͲDprintingasatoolforinnovationandbusinessgrowth.This tourandrelatedconsultingwascoͲsponsoredbytheCzechInvestandtheCzech government. ToimprovethecompetitivenessofSMEsintheIMCArea,theprojectengagedapartͲtime businessdevelopertosupportwideningthecustomerbasethatusesthe3Dprintingservices availableattheCenter.

ACCOMPLISHMENTS: x

x

SinceSLDPbeganworkingwiththeCenterin2013,thenumberofcommercialorders completedhasincreasedfrom25in2013to63in2014.In2015,theImPulsCenterhas garnered$62,000inbusinesstransactions,evenwiththecenterbeingclosedformostof 2015,whilethe3Dprinterunderwentmaintenance. FollowingthethreeprojectͲorganizedworkshops(inNis,NoviSad,andKragujevac)thathave broughtscientificinstitutionsandbusinessestogether,theImPulsCenterbecameamember oftheVojvodinaMetalClusteraspartofprojecteffortstoexpandtheCenter’sclientlist. 

3.4.3TechnologyandFoodͲProcessingParkinLeskovac (NisͲledIMC) TheProject’sgoalintheNisͲledIMCAreawastoachievea15percentincreaseinsalesofprocessed foodproducts.ProcessedfoodproductionisahighervaluestageofagribusinessandisafullͲseason employerofsemiͲskilledlabor.Topursuethisgoal,SLDPandmunicipalleaderssupportedthe establishmentofaProductDevelopmentPlantattheTechnologyandFoodͲProcessingPark(TFP)in Leskovac.TFPwasanoldfoodprocessingparkthatwasconvertedbyprivateownersintoatypeof agribusinesscooperative,inwhichthevariousmemberssharedexpensesformanagement,grounds maintenance,andbrandpromotion.TFPwasformallyestablishedin2013asapublicͲprivate partnershipbetweensevenfoodprocessingcompanies,theCityofLeskovac,andtheLeskovac FacultyofTechnology.FoodprocessorsfromtheTFPhavecreatedacommonbrand,named“Top Food,”underwhichtheyjointlymarketproducts,primarilytobuyersinthecountriesoftheformer Yugoslavia.Inanefforttocreatenewflagshipproductsforthebrand,theTFPappliedforand

SLDPFINALREPORT



Page|32

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

receivedagrantfromSLDPtoestablishthenewproductdevelopmentplant,whichallowslimitedͲ scaleexperimentationonnewrecipes.Theplant'sservicesandequipmentareopentootherfood processorsonacommercialbasis.StudentsandpostͲgraduatesfromLeskovac’sFacultyof Technologyalsohaveaccesstothefacilityfortraining,demonstration,andcreationofnew products.Throughaninternshipprogram,studentsareabletopracticewhattheyhavelearnedin theclassroomandtesttheirideaswiththeTFPmembercompanies. ThesummaryofSLDP'sworkisasfollows. ASSISTANCE: InApril2015,theprojectfurnished equipmentfortheNewProduct DevelopmentPlant.Thisfacility supportsallstagesofproduct development,fromideageneration throughconceptdevelopmenttothe productionoftrialsamplesinsmall quantities. ACCOMPLISHMENTS: x

x

x x

“The innovations coming out of this research and development facility will increase the food processing sector's competitiveness and boost sales,” said USAID/Serbia Mission Director Azza El Abd at the pilot plant opening. Only six months later, 20 new and 5 improved food products came out of the new facility. “Since opening in April, our member companies have signed five new sales contracts with buyers from Serbia, Bosnia and Herzegovina, Macedonia, and Iraq, with a total value of $110,000 worth in monthly deliveries”, said TFP Director Vladimir Kostic. The new products are also included in the deliveries to existing customers from Montenegro, Croatia, and Serbia.

20newproductswere developedandfiveexisting oneswereimproved.Salesof thenewlydeveloped productsreached$94,000 permonth.Therevenuesof sixTFPSMEsincreasedby8 percentandemploymentby 23percentfrom2013 through2015. Developmentofnew productshasbeenconstant sincetheProductDevelopmentResearchPlantwasestablished,andfivenewworkershave beenemployedbythepilotplant.Mostoftheworkhasfocusedoncreatingthebestrecipes andformulationsfordifferenttypesofhoneycakes(lowfat,glazed,vitaminrich, chokeberry,andcranberryflavored),icecreamcones,andvariousbakeryproducts(mixed grains,oat,rye,toastbread,Americanbread,baguettes,pastry). TFPcontractedthefoodprocessingfirmPertufromPozarevactoprovideconsultingservices fornewproductdevelopment,mainlyforproductpackagingandexperimentalproduction. TFPhasalsopartneredwiththeTechnologyFacultyfromLeskovacandtheSMEAgencyfrom Sofia,Bulgaria,todevelopaprojectproposalfortheEUBulgaria–SerbiaIPACrossͲBorder CooperationProgram.

SLDPFINALREPORT



Page|33

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 



 USAID/SerbiaMissionDirectorAzzaElͲAbd meetsstaffattheopeningofthePilotplantfor newproductdevelopmentattheTechnology andFoodͲprocessingParkinLeskovac.

Duringthesummerof2015,thankstoaprojectgrant, TFPLeskovacdeveloped20newfoodproducts, improvedfive,andsignednewcontractswithbuyers

 

SLDPFINALREPORT





Page|34

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

3.5FOREIGNDIRECTINVESTMENT(FDI)ATTRACTIONACTIVITIES(Project Component1) Thenationalgovernmentandlocaladministrationshavebecomeconvincedthat,incertain circumstances,inflowinginvestmentcanspurlocaleconomicgrowth.Regrettably,nationalpractices toattractforeigninvestmenthaveoftenbeenpoliticallymotivatedinSerbia,withverylittleanalysis giventothecostandbenefitsofaspecificinvestmentproject.Forlocalcommunities,similar practicescouldhavedireconsequences,asthecommunitycanbeleftwiththephysicalremainsand socialconsequencesofaninflowinginvestmentgonebad.Withtherightkindofinflowing investment,ontheotherhand,thatisinharmonywiththeresources,assets,culture,andvisionof thecommunity,localeconomicdevelopmentcanflourish.Recognizingthebenefitsandcautiousof thedownside,SLDPprovidedanintensivepackageofassistancetoall32participatingmunicipalities ontheproperwaytoattractanduseinflowinginvestmentasatoolofpositivedevelopment.The packageofassistanceconsistedofthefollowing: a) DeliveryofamultiͲcyclecoachingprogramforFDIattraction. b) Assistedsitedevelopment,focusingononeofthefoundationalneedsofforeigninvestors— availableandsuitablelandplots.Projectspecialistsconsultedwithpartnermunicipalitiesto developpreͲfeasibilitystudiesandinfrastructureandguidanceplansforindustrialzone development. c) FacilitationoftheStandingConferenceofTownsandMunicipalities’eͲlearningplatformfor localeconomicdevelopmentprofessionals,whichincludedFDItrainingandotherconcrete toolsforlocaleconomicdevelopmentandgrowth. d) Technicalassistancetomunicipalitiesstrivingtoobtainbusinessfriendlycertification standards.Theproject'sassistancewascomposedofconsultingandtrainingonpractices vitaltolocaleconomicdevelopment,includingassetmanagementandcapitalinvestment planning,PPPusagesandmethodologies,andpublicservices.  HighlightsamongthesegeneralFDIActivities werethefollowing: x SLDPsponsoredan“FDIInvestment Tour”ofmunicipalityleaderstoItaly, organizedbytheprojectand ConfindustriaSerbiainlateAugust2015. x AttheendofMay2015,theproject,in cooperationwiththeCzechandSerbian ChambersofCommerce,organizeda B2BForuminPraguefortheagro/food LEDOfficestafftakepartinthefinalFDItraining processing,textileandmetalprocessing workshop,heldonFebruary2015 sectors.

x

InDecember2014,theprojectsupported20LEDpractitionersandagriculturespecialists from11partnermunicipalitiestogoonastudytourtotheCzechRepublic,tolearnbestͲ practiceapproachesinattractingforeigninvestment.Theprojectsponsoredasimilartourto theCzechRepublicinOctober2013for24localeconomicdevelopment(LED)practitioners from13partnerlocalgovernments.

SLDPFINALREPORT



Page|35

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

x

AspartoftheFDIcoachingprogram,theprojectsupportedtheparticipationofseven municipalitiesattheGlobalConnectForuminStuttgart,GermanyinNovember2014.

x

InNovember2015,theProjectpublishedacatalogueofSerbianinvestmentsuccessstories forfivefastͲgrowingsectors:metal/electronics,agriculture/food,construction,information technologyandtextile/leather.Thestoriesserveasexamplesofbestpracticesforinvesting inSerbiaandpromotebenefitssuchas:customsfreeaccesstomarketswithover800 millioncustomers,askilledworkforce,wellͲdevelopednetworkofsuppliers,andideal locationforjustͲinͲtimeproductionduetotheproximityofEUmarket.Thecataloguewas distributedtovariousSerbianconsulatesandpartnersthatpromoteSerbiaasaninvestment location,suchastheSerbianDevelopmentAgency(SDA),VojvodinaInvestmentPromotion Fund(VIP)andNationalAllianceforLocalEconomicDevelopment(NALED).



Sitedevelopment WithintheFDICoachingProgramand thoughassistanceofSLDP’sComponent2 –PublicAdministrationReform,the followingactivitiescontributedto developmentoftheinvestmentsites: Sitedevelopment:Inearly2015,aspartof thecoachingprogram,theprojectͲassisted selectmunicipalitiesmovedforwardwith plansforthedevelopmentofindustrial zones.BermanGroupexpertsassessed proposedsitesinKraljevo,NoviBecejand KanjizaanddevelopedpreͲfeasibility studiesincollaborationwithLEDoffices. x

x

x

x

InNovember2014,theprojectsupportedtheparticipation ofsevenmunicipalitiesandtheVojvodinaInvestment Promotion(VIP)FundattheGlobalConnectForumin Stuttgart,Germany.

March2015:SLDPandDevelopmentConsultingGrouplaunchedaninternet platformtopromotebrownfieldlocationsinall32projectpartnermunicipalities. Theportal(http://www.brownfieldserbia.com)containsallrelevantfinancialand businessdataabouttargetedcompanies,helpingpotentialinvestorsdecidewhere toinvesttheircapital. August2014:IncooperationwithLEDofficesandstaffofbankruptcompanies,an inventoryofbrownfieldinvestmentsforatleast15ofthemostattractivebrownfield projectswascompletedintheNisͲandKraljevoͲledIMCAreas,andbrochures published. May2014:SLDPdelivereddetailedinfrastructuredevelopmentdesignsforanew industrialzonetotheVranjelocalgovernment.Thesedocumentswillenablethe futuredevelopmentoftheBunusevacindustrialzoneandwillhelpinattractingnew foreigninvestors. April2014:BermanGrouppresentedlocalstakeholdersanalysesofinvestment locationsinPresevo,Merosina,andNis.Thereportsanalyzethefeasibilityof

SLDPFINALREPORT



Page|36

SUSTAINABLELOCALDEVELOPMENTPROJECT

x



FINALREPORT 

developingindustrialzonesineachofthesemunicipalitiesandlistpotential investorsforthezones. January2014:SLDPsupporteddevelopmentofanindustrialzoneinBeocinby providingageotechnicalreportandtechnicalanalysiswithpreliminarycost estimatesforroads,watersupplyandsewagesystems,raindrainage,lowpressure gasdistributionnetworkandtelecommunication.

 ACCOMPLISHMENTS: DirectprivateandpublicsectorinvestmentsintotheProjectͲsupportedIMCareasareestimatedat $520,534,313,including$211,849,532ofrealizedprivateandpublicinvestments($192,779,212 fromprivateand$19,070,320frompublicsector)and$308,684,782ofcommittedinvestments, basedonnewcontractssignedbetweenprojectpartnermunicipalitiesandinvestors.(Seethe investmenttableattheendoftheannex).SLDPcontributedtotheseinvestmentsthroughsupport associatedwithinterͲmunicipaleconomicdevelopmentprojectsandimprovedlocaleconomic developmentcapacities.Theinvestmentsarebasedonsignedcontractsbetweenlocalgovernments andinvestors.

SLDPFINALREPORT



Page|37

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

3.6STRENGTHENINGPUBLICADMINISTRATIONTOENABLEINTERͲ MUNICIPALBUSINESSGROWTHANDINVESTMENTS(ProjectComponent2)  SLDP’sComponent2,PublicAdministrationReform,workedonimprovingthecapacityof municipalitiestoeffectivelymanageservicesandcapitalinvestmentprojectsofinterͲmunicipal significance.Asmentionedabove,Component2activitieswereultimatelyharnessedtotheNCP approachandconcentratedonspecificissuesblockingNCPimplementation.BeforetheNCP adjustments,however,Component2focusedonincreasinggeneralIMCcompetitivenessthrough effectiveassetmanagement,useofacquiredlocaleconomicdevelopmentmechanismsandtools, andimprovementofthelocallegalframeworkthataffectsinterͲmunicipalcooperationandlocal economicgrowth. Component2operatedatthenationallevelmorethanotherprojectcomponentsandactivities. Throughthiscomponent,SLDPwasanactiveparticipantandcontributortonationalpolicy, providingtechnicalassistancetonationalͲlevelcounterpartsincreatingandmodifyingmajorlaws, policies,orregulationsrelatedtointerͲmunicipaleconomicdevelopment. Finally,Component2hadspecificresponsibilityforidentifyingandacceleratinginfrastructure projectsofeconomicsignificancetoIMCsandseeingthatthoseprojectswereregisteredonthe nationalfundinglistforinfrastructureimprovement. 1.ElevationofIMCCapacities. TheprojectconductedthefollowingactivitiestoincreaseIMCcapacities: YearofImplementation   CAPACITY IMCpartnershiphasbeenformed CapacitiesoflocalselfͲgovernmentsformedintheareaof: AssetManagement PublicUtilityCompanyManagement Bettermanagedinventory,prioritization,and commercializationofbrownfieldinvestments SupportprovidedtoIMCswhereLGsparticipateinBFC certification Established/supportedbusinessͲrelatedservices/procedures (includingagribusiness)  Infrastructureprojectsdeveloped: Participatoryinitiativesandeventsthatinvolvedialogue betweenthepublic,private,andcivilsectorsorganized Activitiesthatincreasethelevelofyouthemployability implemented NewCriteriaPrograminitiatedtosupportprioritybusiness sectors NCPactivitiesincreasedcapacityandcompetitivenessoflocal privatesector NCPimplementationhasmeasurableresultsintermsofnew employment PublicͲprivatepartnershipsestablished

SLDPFINALREPORT



FY 2011 #of IMCs 4   

FY 2012 #of IMCs 8  2 1 

FY 2013 #of IMCs 8  6 3

FY 2014 #of IMCs 8  8 7

FY 2015 #of IMCs 8  8 7

FY 2016 #of IMCs 8  8 7

3

7

7

7

7

5

8

8

8

8

8

8

8

8

8

8

8

1

5

5

6

6

5

8

8

8

8

8

7

8

8







8

8

8

8

8

8

8

8

8

1

8

8

8

2

3

3

3



  











 1

Total #ofIMCs 8  8 7



Page|38

SUSTAINABLELOCALDEVELOPMENTPROJECT



FDIattractioncapacitiesareimproved Newdirectinvestmentsimplemented  Businesssectorinnovationsweresupportedbytheprojectand improvedsectorcompetitiveness

FINALREPORT 



8 4

8 6

8 7

8 7

8 7



5

7

7

7

 Asecondkeyapproachtoincreasinglocalgovernments’capacitytopromoteeconomicgrowthwas thedevelopment,togetherwithourpartner,theStandingConferenceofTownsandMunicipalities (SCTM),ofadistanceͲeducationplatformforstrengtheningknowledgeaboutlocaleconomic development.InJanuary2014,SCTMcompleteditswebͲbaseddistanceͲlearningplatformand courseonlocaleconomicdevelopment(fundedthroughprojectassistance)andmadeitavailableto LEDpractitionersinlocaladministrations.Localgovernmentrepresentativeslearnedaboutthelegal andinstitutionalframeworkforLED,investmentattraction,privatesectordevelopment,publicͲ privatepartnershipsandothertopics.DistanceoreͲlearningisstillarelativelynewmethodofstudy forlocalgovernmentsinSerbia,butithasproventobeanefficientwaytoshareknowledge,making itpossibleforparticipantstostudyontheirowntime,whilehavingcontinuousmentorsupportand interactionwithotherstudygroupmembersthroughonlineforums.Theprogramconsistedofa combinationoftrainingsessions,coaching,andinternetͲbaseddistanceͲlearning.Participants learnedaboutthelegalandinstitutionalcontextoflocalgovernmenteconomicresponsibility, instrumentsformanagingLED,privatesectordevelopment,investmentattractionandpublicͲprivate partnerships. 

LocalGovernmentOfficialsafterreceivingtheirdiplomasfor successfullycompletingtheSCTM’sDistanceLearningeconomic developmentcourseattheendofJune2014  StandingConferenceofTownsand Municipalities’eͲlearningplatformfor localeconomicdevelopment professionalswentonlineinJanuary 2014

SLDPFINALREPORT





Page|39

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

2.ImprovementofNationalPolicyandLegislation. Component2supportedthefollowingnationalpolicyactivitiesbyparticipatinginworkinggroups and/orwritingmemosandanalysestogetherwithourpartners: x x x x x x x x x x x x x x x x x x x x

LawonInvestments DecreeonCriteriaandConditionsforSupporttoInvestments DecreeonAmendingDecreeonLocationConditions RulebookonClassificationofObjects RulebookonOneͲStopͲShops RulebookonExchangeoftheDocumentsinOneͲStopͲShopProcedure RulebookonTechnicalSurveillance LawonPublicCompanies DraftLawonPublicUtilityCompanies LawonSpatialPlanningandConstruction RestitutionLaw LaborLaw LawonLocalSelfGovernment LawonUtilityServices LawonPPPsandConcessions LawonPublicProperty LawonAmendingtheLawonLocalGovernmentFinances DraftLawonLaborRelationsinLGAdministration DraftLawonSalariesinPublicAdministration NALED’s“OutͲofͲtheͲMaze”campaign(NisandVranje–ledIMCs)  Inaddition,aspartofComponent2'spolicywork,SLDPsponsoredthefirstdataͲbasedreportin SerbiaonSMEcompetitivenessintherealeconomy.Theprojectcommissionedthecenterfor AdvancedEconomicStudies(CEVES)towritearealcompetitivenessanalysisofvariousSMEsectors acrosstheproject'sIMCterritoriesandthenationasawhole.Thereport,whichhasbeenpresented anddiscussedatGOSpolicyforums,highlightsthecurrentstateofSerbia’sSMEperformanceacross almostalltradablesectorsoftheSerbianeconomyanddiscussestheprospectsofprivatesector competitiveperformanceintheyearstocome.Thereportalsoexaminesseveralkeyeconomic vectorssuchasmarketconcentrationandmarketdynamicstodeterminethegrowthpotentialof differentsectorsandthelikelyperformanceofSerbianfirms.Suchdataandanalysisallows policymakerstomakeinformeddecisionsaboutwhichsectorsinSerbiatosupportwithspecific interventionsandwhichtoabandontotheirowndevices.Intheyearsincethereportwaspublished, theSerbianChamberofCommerceandtheMinistryofEconomyhaveretainedCEVEStoassemble morerefinedandricherdataͲbasedanalysesinsupportofdataͲbasedeconomicpolicyͲmaking.SLDP isproudtohavesetCEVESonitswayandtohavecontributedtoamorelogicalfoundationfor nationaleconomicdecisionͲmaking.AnaddedbonuswasthattheCEVESanalyticalresultssupport thewisdomofSLDP'soriginaldecisionstoworkinthesectorsithelpedstrengthen.   

SLDPFINALREPORT



Page|40

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

3.SupporttoInfrastructureDevelopment ThefollowingSLDPͲassistedinfrastructureprojectsreceivedfinancingorweresuccessfullyentered intotheSystemofLongͲListedAdvancedInfrastructureProjects(SLAP)database,asthecontract requires: IntheVranjeͲledIMCArea: 1. EnvironmentalprotectionoftheSouthMoravaRiver.Basedontechnicaldocumentation developedbytheproject,theEU/PROGRESprogrampurchasedeffluentmeters.Vranjebuilt awatereffluentsmeasurementstationandhasbegunusingthemetersinVranjskaBanja, butPresevo,Bujanovac,andVladicinHanhavenotyetbuiltmeasurementstations.Vranje hassignedacontractinNovember2013withKfWfor€15.2milliontobuildaWasteWater Facility.ThatprojecthasbeenenteredintotheSLAPdatabase. 2. “Meteris”regionallandfillwithrecyclingfacilities.Withtheassistanceofprojectexpertsand theEUPROGRESprogram,municipalauthoritiesdevelopedaregionalsolidwaste managementplan,whichwasapprovedbytheMinistryofEnvironmentalProtection. BujanovacaddedthetransferstationprojecttotheSLAPdatabaseinMarch2015aspartof thisregionalsolidwastemanagementproject. 3. BunusevacIndustrialZonebypassroad.Theprojectfundeddevelopmentofatopographic planforabypassroad,whichhasbeenenteredontotheSLAPdatabase.TheEUPROGRES programfundedthemajorconstructionplan.Atthetimeofreporting,Vranjecityofficials areworkingoncompletingthedocumentation.Constructionworkhasnotyetstarted. 4. BunusevacIndustrialZone.Theprojectfundedseveraldetailedinfrastructuredesignsforthis industrialzone.Designsofroads,watersupplyandfireprotectionsystems,sewerage,rain drainage,electricitysupply,andtelecommunicationsweredeveloped.Project documentationfortheindustrialzonewasdeliveredtoVranjeinJune2014,andtheproject hasbeenenteredintotheSLAPdatabase.Thisdocumentservedasablueprintforthe developmentofthecompleteinfrastructureonthis32hasite,whereGEOXbuiltitsfactory andanothertwoinvestorsstartedtheirinvestments. 5. CukarkaIndustrialZone.InPresevo,theprojectcompletedapreͲfeasibilitystudyforan industrialzone.WhiledevelopingthepreͲfeasibilitystudy,theprojectdiscoveredthatan unresolvedlandpropertyissuethreatensthewholeactivity.TheMinistryofEconomyhas appropriatedapproximately$95,000totheMunicipalityofPresevofortheconstructionofa powernetworktoCukarkaindustrialzone.TheprojecthadpreviouslyprovidedPresevowith legaladviceandonͲtheͲjobassistanceonresolvingtheseproprietaryhurdlesrelatedto transferoftheownershiponlandfromthe“mesnazajednica”(submunicipallevelof government)totheMunicipalityofPresevo. IntheNisͲledIMCArea: 6. WaterSupplySystem“Pustareka.”AfeasibilitystudywascompletedtohelptheDoljevac Municipalityplanasecureandcontinuoussupplyofpotablewaterfortheentirepopulation intheprescribedquantityandquality.Basedonthestudy,themunicipalitywillsubmita projectproposaltotheSerbianGovernmenttoreconstructtheregionalwatersupply system.TheprojecthasbeenenteredintotheSLAPdatabase.

SLDPFINALREPORT



Page|41

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

IntheSuboticaͲledIMCArea: 7. AgriculturalEducationalCenterinSombor.Theproject’sinvestmentinthedevelopmentand reconstructionofthecenterwascompletedinFebruary2014.Thetechnicalcontrol assessmentofprojectdocumentationwascompletedinMarch2014.TheAgricultural TrainingCenterreconstructionwascompletedinAugust2014,andthecenterhasbeen completelyfurnishedandequipped.Intheperiod2014Ͳ2015,thecenterorganized115 trainingcoursesandpresentations,inwhich8,700peopleparticipated,mainlylocalfarmers. TheNoviSadͲledIMCAreahastwoindustrialzonesonwhichSLDPworked: 8. BeocinBusinessPark.Theprojectsupportedthedevelopmentofanewindustrialzonein Beocin.Thegeotechnicalreportandtechnicalanalysiswithpreliminarycostestimatewere completedinJanuary2014,anddetaileddesignsweredevelopedforallproject components:roads,watersupplysystem,sewagesystem,raindrainage,lowpressuregas distributionnetwork,andtelecommunication.Constructionworkintheindustrialzoneis eligibleforsupportbyProvinceofVojvodinaorGoSstatefunds,andthecityisactively engagedinsolicitingthissupport.ThisprojectwasenteredintotheSLAPdatabasein October2014.ThankstothedocumentationandthepublicͲprivatepartnershipagreement betweentheLaFargecementfactory,thelocalselfͲgovernmentofBeocin,andtheproject, twonewinvestorscametothebusinesspark:MarsGroup(metalprocessing)andAgrogrnja (agribusiness).  9. TemerinIndustrialZone.Alocationpermithasbeenissuedforanaccessroadtothissite. Theprojectfinanceddevelopmentofafeasibilitystudyandpreliminarydesign,whichwas formallysubmittedtotheTemerinadministrationinDecember2014andadopted,together withamaindesignanddesignoftemporarytrafficsignalsattheendofMarch2015.The projectwasdulyenteredintotheSLAPdatabase. 

InJune2014,theprojecthandedoverdetailedinfrastructuredevelopmentdesignsforthisnewindustrial zonetotheVranjelocalgovernment.

  

SLDPFINALREPORT



Page|42

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

ACCOMPLISHMENTS: x

2,877locallyelectedandappointedofficials,membersofCSOs,media,andthebusiness communityparticipatedinprojectͲfundedtraining.

x

70eventsandinitiativesorganizedtopromotedialoguebetweentheprivate,public,and civilsectors.

x

9municipalandinterͲmunicipalinfrastructuredevelopmentprojectssupportedindifferent stagesofdevelopment.

x

7publicͲprivatepartnershipssupported.

x

InMarch2015,theMinistryofEconomyappropriatedapproximately$1.3millionto18cities andmunicipalitiesforinfrastructuralprojectsdesignedtoattractFDI.Outofthese18local governments,sevencitiesandmunicipalitiesbelongtoSLDP’sIMCAreas.Thoseseven governmentshavereceivedmorethan$500,000formassiveinfrastructureprojectslikethe constructionoftwopowertransformerstationsinthe“South”industrialzoneinVladicin Han,constructionofthesewagecollectorintheDonjeMedjurovoindustrialzoneinNis,and constructionofanelectricalpowernetworkintheCukarkindustrialzoneinPresevo.Similar projectswillbefinancedinVranje,NoviSad,Subotica,andNoviBecej.

 3.7INTEGRATINGYOUTHEQUITABLYINTOLOCALECONOMIES(Component 3) Bytheproject'send,Component3concentratedonworkforcedevelopmentforprivatesector employmentandhadtwomajorobjectives: 1.FosterentrepreneurshipamongyouthandcreatelongͲtermemploymentforyoung innovators,firstͲtimejobseekers,adolescents,andyoungadultswhohaveacquiredlabor marketskills. 2.Provideschoolsandvocationaleducationtrainingcenterswithaccreditedcurricula tailoredtothelocalresourcesandneeds,sothatthestrengthenedrelationshipbetween localgovernments,schools,andbusinessesreducestheoutͲmigrationofyoungpeople. Asstatedinthebeginningofthisreport,however,Component3activitieswereultimatelyswitched tosupporttheNCPs.Atthebeginningoftheproject,youthactivitiesweremoregeneralizedand involvedworkwithmunicipalityyouthofficestoempoweryouthtobecomeactiveparticipantsin thelifeoftheircommunities.Youthactivitiesintheearlydaysoftheprojectalsoaddressedwork forcedevelopment,butaimsweremoregeneralizedanddidnotsingleoutkeysectorstopopulate orspecificskillstonurturesothattheindustryneedswouldbefilled.Rather,thefocuswason preparingyouthforwork.Theactivitieswerenotableandbenefitedtheyouthwhoparticipated.But thistypeofdiffuseassistancecouldnotadvanceeconomicgrowthinlocalcommunities.

SLDPFINALREPORT



Page|43

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

OurlistofactivitiesbelowalsoindicateswhethertheworkwasguidedbytheNCPapproachtogrow sectorsorbytheinitialefforttoempoweryouth.Inourachievementssectorbelow,however,we havecombinedtheresultsofbothphasesofourapproachtoyouthparticipationintheworkforce, asthatiswhatiscalledforinourcontractualdeliverables.Itwouldbeveryinterestingtoperforma longitudinalanalysisofyouthemploymentandeconomicimpacttoseewhichapproachtoassisting youthtoentertheworkforce,i.e.,sectorͲspecificorgeneralempowerment,hasgreaterimpacton economicgrowthandsocialstability.

ACTIVITIES x

x

x

x x x

x

x

x

x

DevelopmentofCareerGuidanceandCounselingStructureandServicesthroughtheInter MunicipalCooperationinSerbia—NoviPazar,Vranje,Zrenjanin(withBelgradeOpen School)—EmpowermentofYouth Internshipprogram—Nis,NoviPazar,Kraljevo,NoviSad,SuboticaandUziceIMCs(with SmartKolektiv).Theactivitysupportedyouthtoacquireskillsandgainworkexperience throughinternshipandentrepreneurshipdevelopment.—EmpowermentofYouth TechnicalguidanceinestablishingAssociationofYoungEntrepreneursofSerbia(AYES),an associationthatthrivestodayandcontinuestogrowowingtheservicesitofferstonew members.Severalofitsmembershavewoninnovationcompetitions.—NCP Laborskillsgapassessment,withtheNationalEmploymentServiceofSerbia.— EmpowermentofYouth Developingacompetitiveyoungworkforcethroughcooperationwiththeprofessional diaspora—Uzice,NoviPazar,NisIMCs(withGroup484)—EmpowermentofYouth NAPOR—NationalAssociationofNonͲformaleducationpractitioners—Thepurposeofthe grantactivitywastoreducethegapbetweenyoungpeoples'existingcompetenciesand labormarketneedsbydevelopingandboostingnonͲformaleducationservicesforyouth employabilitythatareinlinewithemployers’needs.Thegrantbuiltthecapacityof35youth officecoordinatorsandCSOrepresentativesfrom20municipalitiestoprovidenonͲformal educationservicesforyouthemployment,throughwhich270youngpeoplelearned employableskillsinlinewithUSAIDͲSLDPNewCriteriaProjects.—EmpowermentofYouth OnͲtheͲJobtraining,withCromerGroup,wasaprogrambasedonmatchingyoungjob seekerswiththeopenedpositions,toovercomethemismatchbetweenworkforcedemand andsupply.ͲͲNCP Supportingvocationaleducationandtraining(VET)schoolstobecomeleadersoflocal economicdevelopment—Uzice,Vranje,SuboticaIMCs,withtheBelgradeOpenSchool.The aimoftheactivitywastoincreasethedialoguebetweenbusinessesfromthewood processing,furniture,textiles,footwear,andagribusinessindustrieswithVETschoolsto bettermatchworkforcesupplyanddemandandtobuildthecapacityofVETschoolsto attractmorestudentsandofferbettereducationalcontent.—NCP ThetextilesectorinNoviPazarworkedcloselywiththeLeatherandTextileVocational SchoolundertheguidanceofSLDP'sdenimteam.Inadditiontoaddingnewcurriculaand equipmenttotheschool,thiscooperationhasresultedinarobustinternshipprogramand practicalclasseswithlocalfirms. ICTClusterAcademiesinNisandNoviSadͲledIMCs.—NCP

SLDPFINALREPORT



Page|44

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

ACCOMPLISHMENTS: x x

x

Sincethebeginningoftheproject,782youthshaveparticipatedinSLDPͲsupported educationalprograms,and452internshipswereimplementedwiththeProjectsupport. ThemostsuccessfulYouthDevelopmentcomponentactivitieswereimplementedthrough grantassistancetotheSmartKolektivCSO,wheretheprojectcreatedinternshipand entrepreneurshipopportunitiesforyoungpeopleacrosstheNis,NoviSad,Kraljevo,and SuboticaͲledIMCareas(covering17municipalities);theGroup484CSO,totrainandhelp youthfindemploymentandstarttheirownbusinessesin12municipalitiesintheNoviPazar, Vranje,andUziceͲledIMCareas;onͲtheͲjobtrainingimplementedwithCromerGroup, duringwhich166internswereplacedin36companiesacross14municipalities;andICT ClusterAcademiesinNisandNoviSad,whereoverasixͲmonthtrainingprogram,65 unemployedyoungpeopleacquiredskillstopreparethemforjobsintheITindustryand41 participantsfoundnewemploymentaftercompletingtheICTAcademyprogram. Intotal,657youthsparticipatingintheseprojectͲfundedactivitiesfoundnewemployment.

OneoftheonͲtheͲjobtrainees,whoworkedina clothingfactoryinsouthernSerbia,poseswith hermentor.In2014,internswereplacedin33 companiesfromIT,foodprocessingand

clothesproduction(fashion)sectors.



SLDPFINALREPORT



OnSeptember25,2014,31youthofficeandyouthcivilsociety representativeswereaccreditedaftercompletingaprogram conductedbytheNationalAssociationofYouthWorkPractitioners (NAPOR)andsupportedbytheproject.ThenineͲmonthprogram coveredtopicssuchasyouthwork,leadership,volunteerism,and projectmanagement.



Page|45

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

4.LESSONSANDCONCLUSIONS SLDPwasathinkingperson'sproject.Owingtooriginaldesignassumptionsthatprovedunrealisticor unmanageableorsimplylesssignificanttotheactualitiesofthepoliticaleconomy,USAIDand projectmanagementcollaboratedaspartnersintheexcitingchallengesofreͲtargetingandreͲ invention.Naturally,muchlearningwasinvolved,andthefollowingisourlistofimportanttakeͲ awaymessagestoinformfuturedecentralizeddevelopmentinSerbiaand,possibly,inmanyother locales. 1. InterͲmunicipalcooperation(IMC)isausefulandsophisticatedtoolforlocaleconomic development,butforittowork,circumstancesonthegroundmustapproximatethe conditionsnecessarytoIMCsuccess.InSerbia,IMCis,atbest,anadhocsolution,useful forcollectiveprojectsthatmakesenseandpossesseconomiclogic,butnotasasteady, continuousplatformtowhichmunicipalitiesmustcontributeforthesakeofmaintaining theIMCconstruct.SLDPsufferedfromhavingtoidentifyfixedIMCareasanddelivera fixedrosterofresults,regardlessofwhethertheinhabitantsoftheIMCwereatall interestedinsuchresults.IMCissimplyoneofmanylocaleconomicdevelopmenttools. Whenitisthebesttool,itshouldbeusedflexibly,andnotwhenothertools,suchas sectorcompetitivenessdevelopment,betterfittheneedsofcommunitieswithsharp, immediateeconomicproblemslikechronicunemployment.Thewoodfurnitureinitiative isaterrificexampleofhowtheIMCtoolcanbeused,incombinationwithasector competitivenesstool,among47municipalitiesandthenationalgovernment.Inthe future,thesemunicipalitiesmaynothingtodowithoneanotherinanyotherchallenge; butforthemoment,theyconstituteanIMCandmustcoordinatetheiractivitieswiththe nationalgovernmenttobuildanindustrythatwilladdjobstomostoftheireconomies. TheMountainBreakfastbrandisanotherexamplewheremanymunicipalitieshadto contributetomakethebrandwork.ManyofSLDP'sotherinitiatives,however,were singleͲmunicipalityprojectsthatcouldandwillbenefittheentireregion.Regional impact,suchasthatofagribusinesslaboratoriesandtraininginitiatives,isextremely valuable,buttheconstructofIMCisnotnecessarywhereonlyonelocalityinvestsand encouragesdevelopmentthatwillrewardnotonlytheparticipationofitsownpopulace, butalsothepopulationsofneighboringcommunities.TheIMCtoolisnottheonlyway tobringabouteffectiveregionaldevelopment.Ultimately,SLDPwasaregional developmentprojectthatconcentratedoncompetitivenessasatooltobuildprivate sectorgrowthtoaddjobs.WeusedtheIMCtoolwhenitwasuseful.  2. Institutionalstrengtheningindecentralizeddevelopmentworkiscertainlyimportant, butinacountrylikeSerbia,whichhasbeeninatransitionperiodformorethanadecade andwherecommunitiesandpeoplearehurtingfromeconomicdegradation,itmaynot bethemostusefulwaytospendscarcedonorresources.SLDP,whichwasasuccessor to12yearsoflargeUSAIDdecentralizationprojects,incorporatedtwoinstitutionalͲ strengtheningcomponentsatthebehestofUSAID'sRFP:publicadministrationreformto encourageeconomicgrowth(Component2)andcreationofmechanismsforyouth developmentandparticipationineconomicgrowthandpolicyͲmaking(Component3). Initsinitialyears,SLDPproceededtostrengtheninstitutionsinwaysexplicitlycalledfor

SLDPFINALREPORT



Page|46

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

inUSAID'sworkorder.Manypeopleweretrained,manypracticeswerealteredforthe better,butlocalcitizens,localleaders,andUSAIDitselfperceivedlittleevidenceofreal changeoreconomicgrowth.Thetrainings,thoughexcellent,weretoodiffuseand scattershottoproduceeconomicchange,andtheveryideathatinstitutional strengtheningcanhealtheimmediate(orevenmidͲterm)economicneedsofan impatientcitizenryremainsunproven.SLDP'ssolutionwastocontinuetouse institutionalstrengtheningasadiscretetoolforthegreater,moreimmediategoalof expandingprivatesectorgrowth.Aswesaidatthebeginningofthisreport,thatmeant channelingallofourinstitutionalstrengtheningworktowardimpactgoals,ratherthan continuingtopursueitasanendinitself.Theactoftrainingbecamelessimportantthan theresultthetrainingwasdesignedtoachieve.Peoplewilldisagreeoverthisapproach toinstitutionalstrengthening,butwherethepoliticaleconomyiserodingyearly,visible impactismorevaluablethanabstractcapacitybuilding,whereresultsaredistantand notcertain.Thisisparticularlytrueindecentralizedcommunitiesfilledwithhuman beingsstrugglingtofindrealͲlifestrategiesforanextremelyuncertainfuture.We believethatinstitutionalstrengtheningforitsownsakeisineffectiveasaninstrumentof concreteeconomicchange,unlessitiscloselyrelatedtoahardandimmediateimpact goalincommunitiesthathavingbeenwaitingyearsforanimprovedeconomy,asthey haveinSerbia.  3. Businessesmustbethekeypartnerforprojectsthatwishtodeliverpalpableeconomic growthimpactinadecentralizedproject.Initsinitialyears,SLDPattemptedtocreate economicprojectsthroughtheIMCtoolbypartneringwithlocaladministrations,civil society,NGOs,andbusinessassociations.Itwasaformulaforbusinessenvironment improvementcommoninmanyUSAIDcontractsnominallyintendedtobolster decentralizedeconomicgrowth.Theproject'smanagementfelleasilyintothe managerialpitfallstheformulaimplies.Havingnopartnersorconnectionsamongreal businessfirms,whentheprojectwascalledontoshoweconomicimpact,itcouldnot.It wasadoublypainfullessonforSLDP'smanagement:USAIDwillalwaysaskforeconomic impactineconomicprojects,regardlessofthewhetherthattheyarewrittenasprocess andbusinessenvironment(orevendialogue)programs;iffirmsarenotatthecenterof aproject'swork,itwillbeimpossibletodeliverconcreteeconomicimpactthatis attributabletotheproject'sactivities.Thereasonforthisisdeceptivelysimple—a marketeconomysucceedsandgrowsonlyifthefirmsinthateconomymakeproducts thatbuyersdesiremorethantheydesiresomeoneelse'sproducts.SLDPdiscovered almosttoolatethatitcanbefataltorunaneconomicprojectwhosegoalisimpact withoutworkingintensivelywithbusinessesthemselves.Industryassociations,NGOs, civilsociety,andgovernmentadministrationsmaydomanythings,buttheydonotmake productsofacostandqualitythatthefreemarketwillbuy.Andwithoutsuchproducts, marketeconomiesdonotgrowinasustainableway.  4. TomakeworldͲclass,competitiveproducts,firmsmusthaveworldͲclassmanagerialand operationalknowledge.Initsinitialyears,SLDPshiedawayfrominterventionsthat calledontheskillsofinternationalconsultants.Therewereseveralreasonsforthis reluctance,buttheyallstemmedfromtheideathatlocaltalentandlocalknowledge

SLDPFINALREPORT



Page|47

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

wassufficientlyskilledandmorecostͲeffectivethanforeignconsultantsindoingthe thingsnecessarytohelpSerbiansbuildaneconomy.Whenanewchiefofpartycameon boardtointroducetheideaofNCPprograms,heruffledfeathersbothinsideSLDPand atlowerlevelsofUSAIDbyadvocatingforforeignexpertise.Localconsultingtalent,no matterhowhardprecedingdonorprojectstriedtodevelopit,wassimplyinadequateto growbusinesssuccessinkeysectorsofSDLP'srosterofcommunities.TrainͲtheͲtrainer programs,usingfacultymemberstoteachbusinessmen,andestablishingbusinessand clusterassociationswereinterventionsthatsimplydidnotproduceworldͲclass consultantswhocouldhelprealSerbianbusinessesproduceworldͲclassproductsinthe manufacturingsectorscriticaltojobͲgrowthandeconomicdynamisminour communities.Fortunately,USAID'stopmanagementagreedtoallowustoreprisethe oldͲtimedevelopmentmodelofbringinginworldͲclassforeignconsultantstohelp businessesinselectedsectorselevatetheircompetitivegamebyintroducingdifficult managerialandoperationalchangesinthefundamentalsofbusinesscompetitiveness— productionefficiency,productionquality,targetedmarketing,andsalesapproachesto meetandsatisfydiscerningmarketdemand.SLDPcouldandshouldhaveuseditsforeign specialistsinaslightlybetterway,andwediscussthatbelow,butthereisnoquestion thattheintroductionofforeignconsultantswhoweresectorexpertsexposed,andin somecases,corrected,problemsthatimpededtheabilityofourpartnerbusinessfirms toexpandandpenetratenewmarkets.Theseproblemswereendemictofirm operationsandmanagement,andnoamountofgovernmentsubsidiesornew equipmentcouldhavemadethesefirmscompetitive.Basicskillsandknowledge fundamentaltomakingandsellingacompetitiveproductweremissing,andonly experiencedconsultants,withyearsofhandsͲonworkinthesectors,couldcapably assistinfillingthegapsthatcrippledsustainablegrowthinoursectors.  5. Foreignconsultantsneedclearmarchingorders.SLDP'ssectorworkbegantwoyears intotheprojectandcarriedanurgencytoshowsalesresults.Thisurgencyskewedour consultants’workmoretowardcreatingsalesthantoimprovingoperationalefficiencies inoursectors.Sustainabilityoffirmgrowth,however,dependsonafirm’sabilityto buildacompetitiveproductintermsofqualityandprice.Weshouldhavecontributed moreconsultantresourcestofirmͲlevelproductivityenhancementandfocusedlesson doingdeals.Thechiefofpartyshouldhaveresolutelyinstructedtheinternational consultantstodevoteseriousefforttolegitimatelyincreasingthefactoryͲlevel productivityoftheplayersinourvarioussectors,ratherthantomarketinglessͲthanͲ competitiveproductsthat,withconsultantadvice,ourfirmscouldtweaktolookmore worthy.Marketingandsalesareimportant,particularlyforfirmsinSerbiathatare completelyoffbuyers’radar,buttheremustbeagenuinelygoodproducttosellif successistocontinueandsectorsaretogrow.Thatsaid,resourcesmustalsobe allocatedtomarketingandsalesefforts.  6. Competitivenessactivitiesandgrantmechanismslackharmony.SLDPinitiallyhadalarge grantcomponentthatfollowedUSAID'segalitariangrantproceduresforitsyouth activities.Thisworkedwell,becauseyouthworkiswellͲknowninSerbiaandthereare severalorganizationsthat,applyingdifferentkindsofmethodologies,canperform

SLDPFINALREPORT



Page|48

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

usefullyandadmirably.Astheprojectbecamemorefinelyhonedtoprivatesector expansionprojectsundertheNCPs,however,webegantogivesoleͲsourcegrantsto provenandrarecandidates,justifyingtheselectionthroughevidenceofpast competenceandachievement.Thereasonforthisisthatweneededtomakesurethat theimplementergaveusanswersandsolutionsthatfitaccuratelyintootherpiecesof ourwork.Then,asworkbecamemoreparticularizedtotheexigenciesofsectorsand business,itwasclearthatthegrantprocess,evensoleͲsourced,wascumbersomeand inefficientcomparedwithcontractmechanisms.Asaconsequence,USAIDagreedto decreaseSLDP'sgrantcomponentandshiftthemoniesintoacontractcategory.The realityofcompetitivenessworkfavoredthisswitch,becausewewerelookingfor implementerstogiveuscertaintypesofdeliverablesusingcertaintypesof methodologies.Forinstance,ahighlysuccessfulsoleͲsourcegrant,whichcouldaseasily havebeenaservicecontract,wasissuedforarealcompetitivenessanalysisofthe Serbianeconomy,undertakenbyCEVES,athinktank.Ateverystepinthecreationof thisreport,projectstaffandCEVESprofessionalsmettoagreeonmethods,purposeand meaningofthedatauncovered.Theproject'sinputwasmorestringentandconstant thanwhatoccurswithmostgrants,evensoleͲsourced,andCEVESwasgracefultoaccept it.Butourcontrolwasstillsubjecttothegoodwillofthegrantee.Insimilarcasesof assistingwiththetargetingandimplementationofcompetitivenessactivities,wealso usedgrants,thoughcontractswouldhavebeenamoresuitablewaytosuperviseour partner'swork.Grantsareusefulinsomeareas,butbythetimeourNCPͲbasedwork began,wehadalreadylearnedthatthegrantmechanism,withitsproceduresandits monitoringapproaches,wasaninefficientandburdensomewaytoensureperformance ofwhattheprojectreallyneededfromitslocalpartners.             

SLDPFINALREPORT



Page|49

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

ANNEXA.INTERͲMUNICIPALCOOPERATIONAREASUPPORT 

A.UziceͲledInterͲMunicipalCooperation(IMC)Area  TheIMCareawasformedinDecember2011.SinceMarch Inter-Municipal Cooperation 2013,theIMCandtheProjectimplementedthe”UziceIMC Partners RegionalValueChain”newcriteriaprogram.  UZICE CITY IMCAreaActivities: Population: 78,018  Unemployment: 21% x Stimulatedemandforlocalfoodproductsandhandicrafts Economic Base: metal and machine ofthedestinationsofTara,Zlatibor,andZlatarby industry, textile and wood processin connectingthehotelindustryandothertourismͲrelated industry businesseswithspecificvendorsinatleastthree categoriesofproducts. x Furnituresectorassistance. x AssessmentofFDIlocationpotential. CAJETINA MUNICIPALITY x BusinessͲFriendlyCertification. Population: 14,726 Unemployment: 16% x SupporttoplannedPonikveAirport. x Developmentofademandassessmentonestablishment Economic Base: tourism, agriculture, ofanintegrateduniversityinUzice. craftsmanship x OnͲtheͲjobtrainingprogramforyouths. x PublicUtilityCompany(PUC)monitoringactivity.  Results: NOVA VAROS MUNICIPALITY  Population: 16,758 • RepresentativesoffurniturecompaniesintheIMCarea Unemployment: 47% learnedaboutefficientmarketingstrategies,latestsales Economic Base: tourism, agriculture trends,andbestpracticesintheinternationalfurniture sectorandparticipatedattheIMMfurniturefairin Cologne. • LocalEconomicDevelopment(LED)practitionersandthe ZlatiborRegionalDevelopmentAgency(RDA) PRIJEPOLJE MUNICIPALITY representativeslearnedhowtopresentlocalpotential Population: 36,713 andattractinvestments,retainandgrowexisting Unemployment: 51% businesses,manageLED,evaluatethepotentialof Economic Base: textile and wood brownfields,andtoprioritizeandredevelopthesesites. processing industry, agriculture • WithSLDPsupport,theZlatiborRDAdevelopedand launchedalocalgastronomicbrand,“Mountain Breakfast,“toexpandthelocal,tourismͲbased,economy andhelplocalproducerssustainablyconnectwiththe PRIBOJ MUNICIPALITY regionaltourismindustry.Aspecializedlocalstorefor Population: 27,127 homeͲmadefoodproductswasopenedinZlatarandan Unemployment: 50% onlineplatformcreatedtopromotethe“Mountain Economic Base: automotive industry Breakfast“conceptandproducts.TheSerbianTourism agriculture, tourism Organizationawardedthe“Mountainbreakfast“concept withtheTourismFlower,thenation’shighestawardin thefieldoftourism. • Tohelpequiplocalyouthwithskillsthatregional employersdemand,astudywasdevelopedtoguidetheestablishmentofaUniversityinUzice.

SLDPFINALREPORT



Page|50

SUSTAINABLELOCALDEVELOPMENTPROJECT

•

• • • •



FINALREPORT 

PrijepoljeandNovaVaroswereassistedtodevelopandpresenttoinvestorsapublicͲprivate partnership(PPP)actionplantobuildaregionalcoldstorageandcogenerationbiomassheating facility,respectively.PPPtoolkitsforlocalinfrastructuredevelopment,energyefficiencyand parkingservicesweredeveloped,andaGuidefordevelopmentofsuccessfulPPPswas published. Aguideforbuildingpermittingwascreated,andtheinvestordatabaseinNovaVaros municipalitywasupdated,aspartoftheefforttoachieveBusinessͲFriendlyCertification. EightyouthteamswereawardedbusinessstartͲupgrants(€1,200each)aspartofprojectͲ supportedCSO“Group484”activities. Publishedguidetoimprovecooperationbetweenvocationalschoolsandprivatesector;it examineslabormarketsupplyanddemandandlaborneedsofkeysectors. Afterparticipationintheproject'stwoͲmonthonͲtheͲjobtrainingprogram,sixyouthshave foundjobs.

                  SLDPFINALREPORT



Page|51

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

B.NoviPazarͲledInterͲMunicipalCooperation(IMC)Area  TheIMCareawasformedinJuly2011.SinceMarch2013,the IMCandtheProjectimplementedthe“NoviPazar: Inter-Municipal Cooperation EntrepreneurshipthatSells”newcriteriaprogram.  Area Partners IMCAreaActivities:  • DenimSectorassistance. • AgricultureSectorassistance. • FurnitureSectorassistance. NOVI PAZAR CITY • FootwearSectorassistance. Population: 117,084 • AssisttheRegionalCenterforAgriculturalDevelopment Unemployment: 53% (RCDA)inSjenicatoestablishaproducttestinglaboratory. • RegionalAgriculturalCompetitivenessAnalysisas Economic Base: textile, road PreconditionandToolforFDIAttractionͲTutin,Sjenica, construction, trade NoviPazar. • Providetechnicalassistancetoagribusiness(herbssector) • BuildingSMEcompetitivenessinSandzak. TUTIN MUNICIPALITY • PublicUtilityCompany(PUC)monitoringactivity. Population: 36,054 • AssetManagementandBrownfieldReͲDevelopment. Unemployment: 59% • StudyonRegionalBiomassUtilization. • Youthdevelopmentactivities. Economic Base: furniture  production, trade, agriculture, forestry Results:  • Ozonejeansfinishingequipmentpurchasedtogivelocal denimmanufacturersacompetitiveadvantageandenable SJENICA MUNICIPALITY themtoattractecologicallyͲconsciousbuyerswillingtopay Population: 27,970 moreforanecoͲfriendlyproduct.Thismodernequipment Unemployment: 47% significantlyreducestheuseofwaterandenergyand Economic Base: agriculture, eliminatesharmfulbleachingagentsinthefinalstagesof textile, food industry jeansmanufacturing. • ProDenimassociationofproducersestablished. • Providedrecommendationsforexpandingthedenimsector andattractinginvestors;trainedlocalproducersontopics rangingfromtheuseofsocialmediainmarketingtojean finishingtechniquesandenvironmentallyfriendly technologies.Denimandshoeproducersimprovedtheirproduction,assortment,andmarketing andparticipatedininternationalshoeanddenimtradefairs.Denimqualitycontroltrainingheld andmanualpublished.Assistedinopeningofaretailstore“Jeansfactory”inBelgrade,asajoint ventureofthreeNoviPazarͲbasedcompanies.In2015,JeansFactoryreportedatotalsalesof $155,000,whileinthefirstthreemonthsof2016,thestoremademonthlysalesof$41,000on average,a25percentincreaseoverthesamequarterin2015.Duringthelastthreemonths,the storeserved1,340customerseverymonth,eachspendingapproximately$30. • Tentextileproducersparticipatedat“BreadandButter”TradeFairinBerlin,Germany. • ProjectexpertstrainedtheRegionalCenterforAgriculturalDevelopment(RCAD)staffon developmentandapplicationoflaboratoryprotocolsforfieldsamplingofmilkandmeat accordingtointernationalfoodsafetyandqualitystandards.RCADstaffalsolearnedhowto

SLDPFINALREPORT



Page|52

SUSTAINABLELOCALDEVELOPMENTPROJECT

•

• • •

• • •



FINALREPORT 

interprettestresultsandprovidecustomerswithrecommendationstoimprovemilkandmeat quality. LocalEconomicDevelopment(LED)practitionerslearnedhowtopresentlocalpotentialand attractforeigndirectinvestments,retainandexpandexistingbusinesses,manageLED,evaluate potentialsofbrownfields,andtoprioritizeandredevelopthesesites. ProjectassistedTutinandalocalagribusinessdevelopmentcompanyinestablishinglinkswith investorsandbuyersattheBiofachOrganicFoodFair. AvaluechainAnalysisandamarketingplanwasdevelopedwithrecommendationsonhowto improvedairyproductionandincreaseregionalcompetitiveness. TutinwasassistedtodevelopandpresenttoinvestorsapublicͲprivatepartnership(PPP)action planfortheconstructionofacenterforthecollection,processing,andsaleofforestfruitand medicinalherbs.AguidefordevelopmentofsuccessfulPPPswaspublished. InpartnershipwithSEDA,sectorbrochurespublishedtopromotelocalcompaniesandattract investorsinthetextile,furniture,footwear,andfoodindustries. Tosupportworkforcedevelopment,purchased3DmodelingsoftwareandplotterfortheNovi PazarDesignandTextileVocationalSchool. FouryouthteamswereawardedbusinessstartͲupgrants(€1,200each)aspartofprojectͲ supportedCSO“Group484”activities.

              

SLDPFINALREPORT



Page|53

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

C.NisͲledInterͲMunicipalCooperation(IMC)Area  TheIMCareawasformedinJuly2011.SinceMarch2013,the Inter-Municipal Cooperation IMCandtheprojectimplementedthe“GrowSouth”new Partners criteriaprogram.  NIS CITY IMCAreaActivities: Population: 255,479  Unemployment: 36% • Establishaproductdevelopmentresearchlaboratoryatthe Economic Base: Electronic FoodTechnologyParkinLeskovac. industry, machine industry, • TechnicalassistancetotheFoodProcessingSupportCenterin textile, agriculture, transport thecityofNis. • Investmentpromotion–comprehensiveFDIcoaching program;businessmissions/studytourstoItalyandthe CzechRepublic. LESKOVAC CITY • DevelopmentofpreͲfeasibilitystudiesforselectedindustrial Population: 156,252 Unemployment: 43% zonesinNisandMerosina. • FacilitationofSerbianFDIMissiontoGlobalConnect Economic Base: Chemical ConferenceinStuttgartonpresentinginvestment industry, agriculture, food industry, textile, wood opportunitiesandattractinginvestments. processing industry • OrganizationofthestudyvisittotheIMMFairinCologne. • RegionalAgriculturalCompetitivenessAnalysisas PreconditionandToolforFDIAttractionͲNis,Doljevac, GadzinHan,Leskovac,Merosina. MEROSINA • ICTClusterAcademy. MUNICIPALITY • SME/InnovationͲdevelopingtiesbetweenthescienceand Population: 14,812 Unemployment: 55% businesscommunities. • InnovationStudyTourtotheUKͲDevelopinginnovationand Economic Base: Agriculture knowledgebasedeconomythroughpartnershipbetween education,business,civilsocietyandgovernmentsectorͲin cooperationwiththeBritishCouncil(partofamultiͲIMCarea GADZIN HAN activitywithKraljevoandNoviSad). MUNICIPALITY • AssetmanagementandbrownfieldreͲdevelopment. Population: 10,464 • EstablishmentofFoodProcessingSupportCenter(FPSC) Unemployment: 43% (BuildingaSustainableModelofManagementandOperation Economic Base: Agriculture, ofFoodProcessingSupportCenter). food industry • Agriculturaldemandanalysis. • Technicaldocumentationforwatersupplysystem. • Agriculturalsupplyanalysis. DOLJEVAC • AssessmentofFDIlocationpotentials. MUNICIPALITY • BankruptcyandLiquidationͲSupportingthecityofNisto Population: 19,561 shapeitsrole,asamaincreditor,inthebankruptcycaseof Unemployment: 59% theNisBrewery. Economic Base: Agriculture,  food processing industry Results:  x LocalEconomicDevelopment(LED)practitionerslearned howtopresentlocalpotentialsandattractforeigndirectinvestment,retainandexpandexisting businesses,manageLED,evaluatethepotentialofbrownfields,andtoprioritizeandredevelop thesesites.

SLDPFINALREPORT



Page|54

SUSTAINABLELOCALDEVELOPMENTPROJECT

x

x x x x

x x x x

x



FINALREPORT 

ThisIMCareaisbyfartheleadingIMCregioninattractingnewinvestmentsinthelastthree years.Atotalof$64.4millionofforeignanddomesticinvestmentswerecompletedinMerosina, Leskovac,andNis,andadditional$116millionisexpectedinthenextonetothreeyears,based oncontractssignedbetweeninvestorsandlocalgovernmentsofNis,Leskovac,andDoljevac. RegulatoryandadministrativebarrierstobusinessgrowthintheIMCareaanalyzedbyNALED and21recommendationsadvancedforimprovement.ExpertassistanceprovidedtoMerosinato implementrecommendations. ICTClusterAcademywaslaunchedinNis,toequipyoungandunemployedpeoplewiththe knowledgeandskillsrequiredbyITsectoremployers.24graduatescompletedthefirstyear,and morethan50percentofthemhavealreadyfoundjobs. ProjectassistedintheestablishmentoftheFoodProcessingSupportCenter.AnewwebͲportal “GrowSouth”waslaunchedtohelpgrowtheregionalagribusinesssector. ApilotplanfornewproductdevelopmentwasopenedattheFoodTechnologyParkinLeskovac, toenablefoodprocessorstodevelopnewandimprovedproductsinacostͲefficientway,andto increasetheircompetitivenessandboostsales.20newproductsweredevelopedandfive existingonesimproved.Salesofnewlydevelopedproductsreached$94,000permonth. RevenuesofsixTFPSMEswereincreasedby8percent,andemployment,by23percentfrom 2013through2015. Investorteaserspreparedtoassistthepublicsaleoftheremainingsocialenterprises. RepresentativesoffurniturecompaniesfromtheIMCarealearnedaboutefficientmarketing strategies,latestsalestrends,internationalfurnituresectorbestpractices,andparticipatedin theIMMinternationalfurniturefairinCologne. NisandDoljevacwereassistedtodevelopandpresentpublicͲprivatepartnership(PPP)action planstoinvestors;AguidewaspublishedfordevelopmentofsuccessfulPPPs,andPPPtoolkits (localinfrastructuredevelopment,energyefficiency,parkingservices)werecompleted. ThreePublicUtilityCompanies(PUC)institutedastandardizedfinancialandtechnical performancereportingtomunicipalities,withthegoaltoimprovePUCefficiency,thusenabling localgovernmentstofocusmoreonoveralleconomicdevelopmentandjobcreation. TwelveyounginternsemployedontheProjectͲsupportedYouthBusinessSerbiaprogram;three businessstartͲupideasreceivedfavorablecredit;16youthsfoundjobsafterparticipatinginthe project'stwoͲmonthonͲtheͲjobtrainingprogram.

         SLDPFINALREPORT



Page|55

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

D.VranjeͲledInterͲMunicipalCooperation(IMC)Area  TheIMCareawasformedinJune2011.SinceMarch2013,theIMCandtheprojectimplementedthe “InvestonCorridor10”newcriteriaprogram.  IMCAreaActivities:  x Furnituresectorassistance Inter-Municipal Cooperation x Footwearsectorassistance Area Partners x Investmentpromotion–comprehensiveFDIcoaching program;businessmissions/studytourstoItalyandtheCzech VRANJE CITY RepublicandFDIMissiontoGlobalConnectConferencein Population: 87,228 Stuttgartinpresentinginvestmentopportunities. Unemployment: 29% x DevelopmentofpreͲfeasibilitystudiesforselectedindustrial Economic Base: Textile, zones. furniture producing, leather and x RegionalIndustrialWorkforceContinuousDevelopment shoe industry, machine industry CenterVranjeOperationalModelStudy. x PreparationofthemaindesignforinfrastructureintheVranje IndustrialZone"Bunuševac". BUJANOVAC x Preparationoftechnicaldocumentationforinteriortraffic MUNICIPALITY roadintheIndustrialZone. Population: 43,302 Unemployment: 36% x AssetmanagementandbrownfieldreͲDevelopment. x AssistingcityofVranjeandMunicipalityofBujanovacin Economic Base: Agriculture, reviewingBFCstandards. food processing, wood x DevelopmentoftheRegionalWasteManagementPlanfor processing PēinjaRegion x Creationoftechnicaldocumentationforinstallmentof effluentmetersincityofVranjeandthemunicipalitiesof Presevo,Bujanovac,andVladicinHan. PRESEVO x Tailoredtechnicalassistanceprovided,allowingBujanovacto MUNICIPALITY Population: 34,904 obtainlandforaplannedeconomicfaculty Unemployment: 47% x ExpertassistanceandonͲtheͲjobtrainingprovidedfor Economic Base: Wood preparationofcrossͲbordercooperation(CBC)projects processing industry (BulgariaͲSerbia). x Regulatoryandadministrativebarrierstobusinessgrowthin theIMCareaanalyzedbyNALEDand21recommendations advancedforimprovement.Expertassistanceprovidedto VladicinHantoimplementrecommendations. VLADICIN HAN MUNICIPALITY x Youthdevelopmentactivities. Population: 23,703  Unemployment: 52% Results:  Economic Base: Fruit processing, wood processing, x Tailoredtechnicalassistanceprovided,allowingBujanovacto production of paper packaging obtainlandforaplannedeconomicfaculty. x Shoeproducersimprovedtheirproduction,assortment,and marketingandparticipatedat"GDS”and“TagIt!” internationalshoetradefairs. x Detailedinfrastructuredevelopmentdesignsandacadaster topographicplanforanewregionalindustrialzone

SLDPFINALREPORT



Page|56

SUSTAINABLELOCALDEVELOPMENTPROJECT

x x x x x x

x x x



FINALREPORT 

“Bunusevac”delivered,enablingfurtherdevelopmentoftheIZandattractingnewinvestors. 10ͲyearRegionalWasteManagementPlan(RWMP)forPcinjaregiondeveloped($40,000grant); theplananticipatesthedevelopmentoftransferstationsinBujanovacandPresevoand expandingtheexistinglandfill“Meteris,”locatedinVranje. ExpertassistanceandonͲtheͲjobtrainingprovidedforpreparationofcrossͲbordercooperation (CBC)projects(BulgariaͲSerbia).$235.000ofEUCBCfundswasawardedforimprovementof competitivenessofregionalfurnituremanufacturers. RegulatoryandadministrativebarrierstobusinessgrowthintheIMCareaanalyzedbyNALED and21recommendationsadvancedforimprovement.ExpertassistanceprovidedtoVladicin Hantoimplementrecommendations. LocalEconomicDevelopment(LED)practitionerslearnedhowtopresentlocalpotentialand attractforeigndirectinvestments,retainandgrowexistingbusinesses,manageLED,evaluate thepotentialofbrownfields,andtoprioritizeandredevelopthesesites. Investorteaserspreparedtoassistthepublicsaleoftheremainingsocialenterprises. RegionalWastewaterTreatmentSystemalongtheSouthMoravaRiver:Theprojectdeveloped technicaldocumentationfortheconstructionofwasteͲwatermeasuringpointsatseweroutfalls andinstallmentofeffluentmetersineachIMCmunicipality.10ͲyearRegionalWaste ManagementPlanforthePcinjaregionwasalsodeveloped. CompletedandpresentedpublicͲprivatepartnerships(PPP)toolkitsforlocalinfrastructure development,energyefficiencyandparkingservices.InpartnershipwithNALED,publisheda GuidefordevelopmentofsuccessfulPPPs. ItalianshoemakerGEOXandlocalvocationalschoolsignMoUaligningschoolcurriculumwith privatesectorneedsthusimprovingstudents’skillsforthelabormarket.Publishedguideto improvecooperationbetweenvocationalschoolsandprivatesector. ThreeyouthteamsawardedbusinessstartͲupgrants(€1,200each)aspartofprojectͲsupported CSO“Group484”activities.

            SLDPFINALREPORT



Page|57

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

E.KraljevoͲledInterͲMunicipalCooperation(IMC)Area  TheIMCareawasformedinDecember2011.SinceMarch Inter-Municipal Cooperation 2013,theIMCandtheprojectimplementedthe“Kraljevo Area Partners IMCCompetitivenessthroughInnovation”newcriteria program. KRALJEVO CITY  Population: 124,554 IMCAreaActivities: Unemployment : 34%  Economic Base: agriculture, trade, x IncreasethebusinessͲorientedfocusofthe3DImPuls processing industry CentertoensuretheCenter’ssustainabilityand increaseinnovationthroughwiderexploitationofthis uniqueresourcebySMEsbymakingthebusiness communitymoreawareoftheCenter’sresourcesand CACAK CITY establishingcontactswithnewcustomers.The Population: 114,809 assistanceincludedtwostudytours(totheCzech Unemployment: 28% RepublicandtheU.K.),websitedevelopment,and Economic Base: agriculture, industry, procurementofequipment. trade, tertiary sector of the economy x Technicalassistanceforalargefurnitureproducerin Kraljevo. x Investmentpromotion–FDImissiontotheCzech RepublicandacomprehensiveFDIcoachingprogram. GORNJI MILANOVAC x FacilitationoftheSerbianFDIMissiontotheGlobal MUNICIPALITY ConnectConferenceinStuttgarttopresentinvestment Population: 44,438 opportunitiesandattractinvestments. Unemployment: 23% x DevelopmentofpreͲfeasibilitystudiesforselected Economic Base: industry, mining, industrialzones. manufacturing x DevelopmentofabusinessplanTechnologyParkin Cacak–“CompetitivenessthroughInnovation”Ͳwhich includesanactionplanforthefirstyearofoperation VRNJACKA BANJA andorganizationalmodelforthePark. MUNICIPALITY x AssistancetotheCityofKraljevoandtheMunicipality Population: 27,332 ofVrnjackaBanjatocomplywithbusinessͲfriendly Unemployment: 36% certificationrequirements. Economic Base: tourism x RegionalAgriculturalCompetitivenessAnalysisas PreconditionandToolforFDIAttractionͲRaska. x InnovationinagriculturalproductionͲpossibilitiesfor introducingnontraditionalcropsthathavemarket potentialinRaskaandVrnjackaBanja. RASKA MUNICIPALITY Population: 24,680 x AssetManagementandBrownfieldReͲDevelopment– Unemployment: 42% assessment,gapanalysis,studyvisittoUziceasa mentorcityforassetmanagement,TAtoselectedlocal Economic Base: agriculture, tourism governmentstoresolvekeyproprietarychallenges neededforimplementationoftheactivitiesthathaveaspatialcomponent.  Results:  x MultimedialaboratorywithinKraljevo’sImPuls3Dprintingandinnovationcenterfurnishedto helpentrepreneursacquirenewskills,improveknowledge,reduceproductioncosts,andapply innovation.WithbusinessdevelopmentassistancefromSLDP,thenumberofclientorders increasedfrom25in2013to63in2014.

SLDPFINALREPORT



Page|58

SUSTAINABLELOCALDEVELOPMENTPROJECT

x x x x

x x

x x x



FINALREPORT 

RepresentativesoffurniturecompaniesfromtheIMCarealearnedaboutefficientmarketing strategies,latestsalestrends,andinternationalfurnituresectorbestpracticesandparticipated atinternationalIMMColognefurniturefair. LocalEconomicDevelopment(LED)practitionerslearnedhowtopresentlocalpotentialand attractforeigndirectinvestment,retainandgrowexistingbusinesses,manageLED,andevaluate thepotentialofbrownfields,andtoprioritizeandredevelopthesesites. TohelpKraljevoattractinvestors,apreͲfeasibilitystudyincludingdetailedconceptualdesign waspreparedforthelocalindustrialzone(IZ);thestudyindicateswhatthecityhastodoto maketheIZinvestorͲready. Aninnovationstudytourwasorganizedforbusinessclustersandscience/technologycenters. Participantslearnedofbestpracticesinconnectingacademicandbusinesscommunitiesto enhancebusinessinnovationandexpandtheprivatesector;completedanalysisofopportunities forlinkingR&DinstitutionswithSMEsector. Investorteaserspreparedtoassistthepublicsaleoftheremainingsocialenterprises. RaskawasassistedtodevelopandpresenttoinvestorsapublicͲprivatepartnership(PPP)action planforconstructionofarecyclingyard;PPPtoolkitsforlocalinfrastructuredevelopment, energyefficiencyandparkingserviceswerecreated;aGuidefordevelopmentofsuccessfulPPPs waspublished. CreateddatabaseofinvestorsandbrownfieldlocationsinKraljevoandVrnjackaBanjato advancestepstoBFCachievement. EightyounginternswereemployedwithintheProjectͲsupported“YouthBusinessSerbia” Program;twobusinessstartͲupideasreceivedfavorablecredittermsfromErsteBank(lower interestrateandnocollateral). Afterparticipatingintheproject’stwoͲmonthonͲtheͲjobtrainingprogram,30youthshave foundjobs.

           

SLDPFINALREPORT



Page|59

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

F.Zrenjanin–ledInterͲMunicipalCooperation(IMC)Area  TheIMCareawasformedinDecember2011.SinceMarch2013, theIMCandtheProjectimplementedthe“Diversificationof Inter-Municipal Cooperation Agriculture–NewJobsforRuralYouth”newcriteriaprogram.  Area Partners IMCAreaActivities: x TheHorticultureIncubatorPrograminallthree municipalities. x RegionalAgriculturalCompetitivenessAnalysisas PreconditionandToolforFDIAttractionͲKikinda,Novi ZRENJANIN CITY Beē ej,Zrenjanin Population: 122,714 x DevelopmentofpreͲfeasibilitystudiesforselected Unemployment: 22% industrialzones. x AssistanceinBusinessͲFriendlyCertification. Economic Base: agriculture, food processing, textile, metal and x AgriculturalDemandAnalysis. chemical industry x AssetManagementActivityͲRulebookonAdministration forAssetInventoryingandManagementandaRulebookon DisposalofMunicipalProperty;organizedstudyvisitto UziceasaMentorCityforassetmanagement;TAto KIKINDA MUNICIPALITY selectedlocalgovernmentstoresolvekeyproperty Population: 59,329 challenges. Unemployment: 27% x PromotionofinterͲmunicipalcooperation(IMC)and Economic Base: agriculture, food initiativesinBanatRegion. processing, metal and chemical x AssistancetoRDABanatinprojectpreparationforEU industry funds.  Results: NOVI BECEJ MUNICIPALITY  Population: 23,847 x Morethan60unemployedyouthtrainedinfarm Unemployment: 40% management,while31beganvegetableproductionin greenhousesprovidedforbesttrainingparticipants;thus Economic Base: agriculture, far,morethan45tonsofproducehavebeensoldonthe tourism localmarketorexported,generating$40,000foryoung farmers. x AssistancetoRDABanatinprojectpreparationforEUfundsresultedinfundingof225,000euros approvedforthe“EducationtoEasierEmployment(E3)“project. x LocalEconomicDevelopment(LED)practitionerslearnedhowtopresentlocalpotentialand attractforeigndirectinvestment;retainandexpandexistingbusinesses;manageLED;evaluate potentialsofbrownfields,andprioritizeandredevelopthesesites;trainingandprojectͲ organizedparticipationatGlobalConnectinvestmentfairhelpedZrenjaninattractItalianand Russianinvestmentstoitsindustrialzone. x ZrenjaninwasalsoassistedtodevelopandpresenttoinvestorsapublicͲprivatepartnership (PPP)actionplanforthemodernizationoftheRusandaspacenter;aGuidefordevelopmentof successfulPPPswaspublished;PPPtoolkitsforlocalinfrastructuredevelopment,energy efficiencyandparkingserviceswerecreated. x DatabaseofinvestorsandbrownfieldlocationswascreatedinKikindaandNoviBecej,assteps towardachievingBusinessͲFriendlyCertification. x TohelpNoviBecejattractinvestors,apreͲfeasibilitystudyincludingdetailedconceptualdesign waspreparedforthelocalindustrialzone(IZ);thestudyindicateswhatthemunicipalityhasto dotomaketheIZinvestorͲready.

SLDPFINALREPORT



Page|60

SUSTAINABLELOCALDEVELOPMENTPROJECT

x x x



FINALREPORT 

10municipalrepresentativesweretrainedtopreparetermsofreferenceforinfrastructure projects. 18youthserviceprovidersweretrainedincareerguidanceandcounselingandstartedproviding servicestoyouthintheZrenjaninͲledIMCarea. Tocurbunemployment,theZrenjaninYouthOfficewasassistedtopublisha“GuideforFuture Students.”

                     SLDPFINALREPORT



Page|61

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

G.SuboticaͲledInterͲMunicipalCooperation(IMC)Area TheIMCareawasformedinNovember2011.SinceMarch Inter-Municipal Cooperation 2013,theIMCandtheprojectimplementedthe“Subotica Partners IMCAgribusinessExpansion”newcriteriaprogram.  SUBOTICA CITY IMCAreaActivities: Population: 140,358 x ExpandingtheservicesoftheLaboratoryforTesting Unemployment: 23.53% QualityofAgricultureProductsandExportCertification. x InterͲmunicipalAgriculturalEducationalCenterinSombor Economic Base: agriculture, food –designandequipment. processing industry, tertiary sector x RegionalAgriculturalCompetitivenessAnalysisasa of the economy, tourism PreconditionandToolforFDIAttractionͲSubotica, Sombor,KanjižaͲanalyzedthreeindicatorsthathavethe mostinfluenceonthelevelofcompetitivenessand SOMBOR CITY attractivenessforinvestors:existingresources,sector Population: 85,569 competitivenessandothercomparativeadvantages. Unemployment: 26.88% x SupporttoestablishmentoftheKanjizalogisticscenterͲ KanjizawasassistedtodevelopapublicͲprivate Economic Base: agriculture, food partnership(PPP)actionplan. processing industry, tourism x Investmentpromotion–TheprojectorganizedaSerbian BusinessMissiontoCzechRepublicandacomprehensive FDIcoachingprogram. KANJIZA MUNICIPALITY x ParticipatedintheSerbianFDIMissiontotheGlobal Population: 24,995 ConnectConference. Unemployment: 30.50% x DevelopmentofpreͲfeasibilitystudiesfortheindustrial zoneinKanjiza. Economic Base: agriculture x AssistanceinBusinessFriendlyCertification. x AgriculturalDemandAnalysis,withrecommendationsfor accessingnewmarkets. x AgriculturalSupplyAnalysis–mappingtheneedsoffoodprocessorsinSubotica,Sombor,and Kanjiža. x ProtectionofGeographicIndicationͲStudyonprotectedproductsinaccordancewiththe regulationoftheInstituteforIntellectualPropertyandMinistryofAgriculture,Water ManagementandWatery–AppleproducedonSubotickoͲHorgoskasand. x DatabaseofinvestorsandbrownfieldlocationswascreatedinSomborasasteptoward achievingBusinessͲFriendlyCertification;SomborwasawardedtheBFCcertificateonDecember 4,2012. x ThreepublicͲprivatepartnershipstoolkits(forlocalinfrastructuredevelopment,energy efficiencyandparkingservices)werepresentedataregional“PublicPrivatePartnerships” ConferenceinNoviSad x “BusinessEnablingEnvironment–Brownfield“trainingconductedonevaluatingthepotentialof brownfieldlocations,theirprioritizationandredevelopment x RegionalDevelopmentAgencyforEasternSerbia(RARIS)conducted($39,000nationalͲlevel grant)ananalysisofavailablenonͲfinancialservicesforsmallandmediumsizedenterprisesand maderecommendationsonhowtheycouldbestandardizedandimproved x InpartnershipwiththeSerbianIntellectualPropertyOfficeandtheMinistryofAgriculture,a workshopwasorganizedtoexplainandpromotegeographicbrandingtoregionalagricultural producersandprocessors

SLDPFINALREPORT



Page|62

SUSTAINABLELOCALDEVELOPMENTPROJECT

x x x x x



FINALREPORT 

Thestudy„Diversificationoftheagriculturalproduction”anditsrecommendationswere presentedtorepresentativesofIMCagricultureandruraldevelopmentworkinggroupmembers, producerassociations,regionaleducationalandhealthinstitutions,andlocalgovernments Topromoteregionalcompetitivenessandinnovationthroughimprovedbroadband infrastructure,aconferencewasheldwithhighofficialsfromtherelevantMinistry,Provincial andlocalgovernments NationalAssociationofYouthWorkers(NAPOR)heldfivetrainingsforLocalYouthOffice workersfromSombortostrengthentheirrole,servicesandcapacities 4youngentrepreneursselectedforbusinessmentorship;4companiesappliedtoreceive8 interns,withpossibilityforemployment;inthesecondround9internswereengagedby5 companies WithintheYouthBusinessSerbiaprogram,fourbusinessstartͲupideaswereselectedand recommendedtoreceivefavorablecredittermsfromErsteBank(lowerinterestrateandno collateral)

 Results:  x Tofacilitateexportofregionalfoodproducts,$95,000worthoflaboratoryequipmentwas purchasedfortheSuboticaPublicHealthInstitute,andstaffweretrainedtoperformcomplex analysisofpesticideresidue,foodsafetyandquality;theInstitutewasassistedtoreceiveofficial governmentaccreditationforitsnewfoodtestingservices.IntheperiodOctober2015–March 2016,82pesticideresidueanalyseshavebeenconducted. x Detaileddesignsdelivered,reconstructioncompletedandIMCAreaAgricultureEducation CenterinSomboropened.Thishelpedmunicipalityattract$8.5millionininvestmentfrom FerreroGroup,anItalianconfectioner.In2014and2015,theAgricultureEducationCenterin Sombordelivered115trainingeventsandpresentations,withanestimatedparticipationof 8,700persons,mostlyfarmers. x KanjizawasassistedtodevelopapublicͲprivatepartnership(PPP)actionplanforsettingupa logisticsanddistributioncenterforagriculturalgoodsandpresentittoinvestors;PPPtoolkits (forlocalinfrastructuredevelopment,energyefficiencyandparkingservices)werepreparedand aguidefordevelopmentofsuccessfulPPPswaspublished. x LocalEconomicDevelopment(LED)practitionerslearnedhowtopresentlocalpotentialand attractforeigndirectinvestment;retainandgrowexistingbusinesses;manageLED;evaluate potentialsofbrownfields;andprioritizeandredevelopthesesites. x TohelpKanjizaattractinvestors,apreͲfeasibilitystudy,includingdetailedconceptualdesign, waspreparedforthelocalindustrialzone(IZ);thestudyindicatedwhatthemunicipalityneeded todotomaketheIZinvestorͲready. x AdatabaseofinvestorsandbrownfieldlocationswascreatedinSombortoadvancesteps towardBusinessͲFriendlyCertification;Somborwasawardedthiscertificationin2012. x Publishedguidetoimprovecooperationbetweenvocationalschoolsandprivatesectorthat examineslabormarketsupplyandthedemandandlaborneedsofkeysectors. x ElevenyounginternsemployedontheProjectͲsupportedYouthBusinessSerbiaProgram;two businessstartͲupideasreceivedfavorablecreditfromErsteBank(lowerinterestrateandno collateral).

   

SLDPFINALREPORT



Page|63

SUSTAINABLELOCALDEVELOPMENTPROJECT



H.NoviSadͲledInterͲMunicipalCooperation (IMC)Area

FINALREPORT 

Inter-Municipal Cooperation Area Partners

TheIMCareawasformedinJuly2011.SinceMarch2013,the IMCandtheProjectimplementedthe“MetroNoviSad:First PlaceforBusiness”newcriteriaprogram. NOVI SAD CITY  Population: 381,388 IMCAreaActivities: Unemployment: 18.90% x DevelopmentofanInnovativeClusterͲWideProductto increasecompetitivenessoftheVojvodinaMetalCluster Economic Base: tertiary sector (VMC)membersbyinvolvingthemintheproductionofthe of the economy, processing industry firstinnovative,clusterͲwideproducttoincreasetheirsales, exports,preserveexistingjobs,andcreatenewones. x VMCInnovationandBusinessDevelopmentCenter– InnoBuddy. SREMSKI KARLOVCI x Investmentpromotion–FDIcoachingprogramandBusiness MUNICIPALITY MissiontoItalytargetedatpresentinginvestment Population: 8,839 opportunitiesandattractinginvestments(with Unemployment: 46.14% Confindustria). Economic Base: agriculture, x FacilitationofSerbianFDIMissiontoGlobalConnect tertiary sector of the economy ConferenceinStuttgartinpresentinginvestment opportunitiesandattackinginvestments x ICTClusterAcademy. x InnovationStudyTourtotheUKͲDevelopinginnovation BEOCIN MUNICIPALITY andknowledgebasedeconomythroughpartnership Population: 16,086 betweeneducation,business,civilsocietyandgovernment Unemployment: 34.29% sectorͲincooperationwithBritishCouncil(partofmultiͲ Economic Base: industry, IMCareaactivitywithNisandKraljevo) tourism, mining x Metalsectorvaluechaindevelopment–recommendations onhowtobuildtheVMCintoanorganizationthatwould provideservicestoanetworkofmetalcompaniesin northernSerbia,helpingthembecomemorecompetitive TEMERIN andeventually,abletooperateintheinternationalmarket MUNICIPALITY formetalfabrication. Population: 28,275 x Preparationofthetechnicaldocumentationforthenew Unemployment: 30.80% industrialzoneinBeocin. Economic Base: industry, x Preparationofthetechnicaldocumentationforthenew craftsmanship, agriculture industrialzoneinTemerin. x PreparationofFeasibilityStudyforRegionalFiberOptic Network. x TechnicalassistanceforreachingBusinessFriendlyCertificationstandards. x CareerGuidanceͲtechnicalsupportforeducationalinstitutionsandyouthofficesfortheirrole oftheimplementationofCareerGuidanceStrategy. x DevelopmentofYouthBusinessSerbiaProgram  Results:  x TheprojectprovidedtechnicaldocumentationfortheBeocinIndustrialZone,legaladviceand supportforestablishmentofpartnershipbetweenLafargeandBeocin,tocreateanewbusiness parkonlandownedbythemunicipality,tomeetthedemandofnewinvestorsforadequate

SLDPFINALREPORT



Page|64

SUSTAINABLELOCALDEVELOPMENTPROJECT

x

x x

x x x x



FINALREPORT 

businessspaceandgeneratenewjobsintheregion.Thankstothedocumentationandthe publicͲprivatepartnershipagreementbetweenLaFarge(acementfactory),thelocalselfͲ governmentofBeocinandtheproject,twonewinvestorscametothebusinesspark:Mars Group(metalprocessing)andAgrogrnja(agribusiness). A“BusinessEnablingEnvironment–Brownfield“trainingwasconductedonevaluatingthe potentialofbrownfieldlocationsandtheirprioritizationandredevelopment.Theprojectcreated adatabaseofinvestorsandbrownfieldlocationsinBeocinandNoviSadaspartoftheprocessof BusinessFriendlyCertification–NALED;NoviSadwasawardedthiscertificationinJune2012 andenteredintothereͲcertificationprocessinthesummerof2016. LocalEconomicDevelopment(LED)practitionerslearnedhowtopresentlocalpotentialsand attractforeigndirectinvestments,retainandgrowexistingbusinesses,manageLED,evaluate potentialsofbrownfields,andprioritizeandredevelopthesesites. TheprojectenabledVojvodinaMetalCluster(VMC)memberstobecomemorecompetitiveby providingtheClusterwithcustomerrelationshipmanagementsoftwareandmodernequipment (aCNCplasmacuttingtable).VMCmemberscannowlowertheirproductioncosts,connect moreefficientlywithpotentialforeignbuyers,andquicklyprocessinquiriesfromnewclients. From2013through2015,28VMCmembersincreasedtheirrevenueby11.6percent($9million) andhired3.2percentmoreemployees(63employees). AnICTClusterAcademywaslaunchedinNoviSadtoequipyoungandunemployedpeoplewith theknowledgeandskillsrequiredbyITsectoremployers;45graduatescompletedthefirstyear, andmorethan25percentofthemhavealreadyfoundjobs. ArchitecturaldesignpreparedfortheregionalEducationalTrainingCenterforProfessionaland WorkingSkillsinNoviSad,totraingraduatesinskillsinhighbusinessdemand. 25younginternsemployedwithintheProjectͲsupportedYouthBusinessSerbiaProgram;two businessstartͲupideasreceivedfavorablecredittermsfromErsteBank(lowerinterestrateand nocollateral) Afterparticipatingintheproject'stwoͲmonthonͲtheͲjobtrainingprogram,15youthshave foundjobs.



SLDPFINALREPORT



Page|65

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

ANNEXC–FINALPERFORMANCEMONITORINGREPORT  ThisAnnexprovidesstatusoftheproject’sperformanceindicatorsasofJuly31,2016.Itcoversthe projectimplementationfortheperiodDecember22,2011–July31,2016.ThestructureofthePMP fortheSustainableLocalDevelopmentProjectandthecurrentstatusoftheindicatorsarepresented inthetablebelow:  Table1.StatusofSLDPIndicators  # Indicator target actual 1 NumberofbusinessͲsectorjobscreatedinparticipating Y1 Ͳ Ͳ Y2 Ͳ Ͳ municipalitiesasaresultofProject’sIMCactivities Y3 Y4 Y5 Y6 LOP

ImpactLevel

2

Dollarvalueofdirectinvestment,bothrealizedandthosethat arecommitted

Y1 Y2 Y3 Y4 Y5 Y6

 (M=million) 3 Dollarvalueofincreasedrevenuesofcompaniesinsectors supportedbytheproject

LOP Y1 Y2 Y3 Y4 Y5 Y6



Outcome/OutputLevel

(M=million) 4

NumberofinterͲmunicipaleconomicdevelopmentprojects implemented,whichmeetthecriticalpathmilestones

LOP

Y1 Y2 Y3 Y4 Y5 Y6 LOP

5

NumberofbusinessͲfriendlymunicipalities

Y1 Y2 Y3 Y4 Y5 Y6 LOP

300 700 1,000 Ͳ 2,000 Ͳ Ͳ $40M $80M $118M $30M

479 3,975 928 1,576 6,958 Ͳ Ͳ $0.00M $218M $241M $60.9M

$268M

$520M

Ͳ Ͳ Ͳ $1.3M $21.1 Ͳ1

Ͳ Ͳ $0.00M $1.3M $21.1M $2.9M

Ͳ

$25.3M

Ͳ Ͳ 8 8 4 (7)2 20 2 Ͳ 10 5 0 Ͳ

Ͳ Ͳ 12 20 21 13 26 0 8 11 6 Ͳ Ͳ

17

25

 1

Targets for increased business revenues are not set for FY 2016. In previous years, business revenues were counted as part of the overall economic impact of the project, together with investments. 2 Indicator #4 counts active IMC projects in a year. By the end of FY2015, SLDP supported 21 IMC projects. The target set for FY 2016 includes 7 projects that were already started in previous years. In addition, SLDP initiated 5 new projects in FY 2016, related to wood processing sector. The list of active IMC projects in FY 2016 is available below, under section on Indicator #4.

SLDPFINALREPORT



Page|67

SUSTAINABLELOCALDEVELOPMENTPROJECT



# 6



Indicator Numberofmunicipalitiesthathaveestablishedorimproved managementpractices.

FINALREPORT 

target Y1 Y2 Y3 Y4 Y5 Y6 LOP

7

NumberofpublicͲprivatePartnershipsestablishedwith projectsupport

Y1 Y2 Y3 Y4 Y5 Y6 LOP

8

Numberofyouthwithincreasedcompetitivenessinthelabor market      9 NumberofmajorinfrastructureinterͲmunicipalprojects assistedinapplyingfortheEUandGOSfinancing

Y1 Y2 Y3 Y4 Y5 Y6 LOP Y1 Y2 Y3 Y4 Y5 Y6 LOP

10

Numberoflocallyelectedandappointedofficials,CSO members,media,andthebusinesscommunitytrained

Y1 Y2 Y3 Y4 Y5 Y6 LOP

11

Corporatesocialresponsibilityinitiativessupported

Y1 Y2 Y3 Y4 Y5 Y6 LOP

12

Numberofinitiativesinvolvingdialoguebetweenthepublic, privateandcivilsectors

Y1 Y2 Y3 Y4 Y5 Y6 LOP

actual

Ͳ 9 8 8 7 (16) 32 Ͳ 1 2 2 2 Ͳ 7 Ͳ 130 320 330 270 Ͳ 1,050

Ͳ 7 6 15 3 19 31 Ͳ Ͳ 3 2 2 Ͳ 7 Ͳ 225 702 307 Ͳ Ͳ 1,234

Ͳ 1 1 1 2 Ͳ 5 Ͳ 955 250 300 250 Ͳ 1,750 Ͳ Ͳ Ͳ 2 2 Ͳ 4 0 21 10 14 13 3 61

Ͳ Ͳ 2 4 3 Ͳ 9 Ͳ 955 655 857 341 69 2,877 Ͳ Ͳ 2 Ͳ 2 Ͳ 4 Ͳ 21 12 13 18 6 70



SLDPFINALREPORT



Page|68

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

DetailedReportontheStatusofIndicators  Indicator 1.NumberofbusinessͲsectorjobscreatedinparticipating municipalitiesasaresultoftheProject’sIMCactivities

EndofProject target

EndofProject status

2,000

6,958

 Definition:Businesssectorjobscreatedinpartnercities/municipalitiesasaresultofprojectefforts todevelopandimplementbusinessopportunitiesandtoengageprivateandpublicsectors.The indicatorwillcapturethefollowing: (a)Jobscreatedasaresultoftheprivatesectorinvestmentsandjobscreatedasaresultof increasedrevenuesoftheprivatesector,duetoprojectassistance. (b)Jobsfoundbyyoungpeopleassistedbytheproject.Theprojectwillprovideintensive assistancetoapproximately1,050youngpeople,anditisexpectedthat450ofthemwillbe hiredbytheendofprojectimplementation.  Status:Atotalof6,958newjobswerecreatedsincethebeginningoftheproject,whichfallintothe followingsubcategories:  x 5,772newjobswerecreatedbynewinvestmentsattractedandimplementedinthe projectpartnermunicipalitiesintheperiod2013Ͳ2016.  x 529newjobswererecordedin69projectpartnercompaniesintheperiod2013Ͳ2016.  x 657youthswhoparticipatedintheprojectͲsponsoredactivitiesfoundnewemployment intheperiod2012Ͳ2016.   CommentsandProject’scontribution: Ͳ Foreigndirectinvestmentattractioncoaching,businessretentionandexpansiontraining, brownfieldredevelopment,andassetmanagementguidancehelpedpartnerIMCareasto attractandimplement$211.8millionofinvestmentsfrom2013to2016andcreate5,772 newjobs.Another$308.7millionofdirectinvestmentprojectsareinvariousstagesof preparationand,oncefinalized,theywillbringapproximately14,000newjobsintheyears tocome. Ͳ Anincreaseinemploymentof529wasrecordedin69Serbiancompanies.Theproject’s assistancewastailoredtotheirneedsofpartnercompaniesforimprovingproductionand marketingcapacities. Ͳ Theprojectwasalsofocusedonincreasingemployabilityofyoungpeopleand,though provisionoftrainingandinternshipprograms,contributedtotheemploymentof657 youths.   EndofProject EndofProjectstatus Indicator target 2.DirectprivateandpublicsectorinvestmentsintoprojectͲ supportedIMCareas

$268million

$520.5million

 Definition:Theindicatormeasuresallinvestmentsundertakenwiththeproject’ssupportassociated withinterͲmunicipaleconomicdevelopmentprojectsandimprovedlocaleconomicdevelopment capacities.Theinvestmentsarebasedonsignedcontractsbetweenlocalgovernmentsandinvestors.

SLDPFINALREPORT



Page|69

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

Greenfieldandbrownfieldinvestment,andinvestmentsintoexpansionofcapacitiesofanypartsin valuechainssupportedbytheprojectwillbecounted.Bothinvestmentsfromtheprivateandpublic sectorswillbecounted.  Statusofnewinvestments:SincethebeginningoftheProject:$520,534,313,including $211,849,532ofrealizedprivateandpublicinvestments($192,779,212fromprivateand $19,070,320frompublicsector),and$308,684,782ofcommittedinvestments,basedonnew contractssignedbetweentheprojectpartnermunicipalitiesandinvestors.  CommentsandProject’scontributiontoinvestments: Toestimatethelevelofprojectcontributiontoinvestmentsinpartnercitiesandmunicipalities,the projectmadethreecategories,eachwithaproposedpercentageofattribution:  Ͳ 20percentattributabletotheproject,forinvestmentsthattookplacebeforetheFDI coaching;wheremunicipalLEDofficesplayedsignificantroleandwheretheproject workedonbuildingmunicipalcapacityforLED. Ͳ 50percent,forinvestmentsthattookplaceinthepreviousthreeͲyearperiod,orfor whichtheinvestorsmadecommitmentsbysigninglandleaseorlandpurchase contracts,wheretheprojectcontributedbyprovidingnecessarytechnical documentationforindustrialzones,whereLEDofficestaffattendedFDIcoaching,or whereotherindirectsupportwasprovidedtothesectorsofeconomywherethe investmentstookplace. Ͳ 100percent,forinvestmentsthatarecommittedandrealizedduringandafterthe project’sdirectassistanceforincreasingmunicipalFDIcapacities(FDIcoaching)and targetedsectors,andwheretheproject’scontributionandqualityofassistancehas beenhighlyvaluedbymunicipalLEDoffices.  Detailsaboutinvestmentsareavailableinthetableattheendoftheannex.   Indicator 3.Volumeofrevenuesofcompaniesinsectors supportedbytheproject.

EndofProject target

EndofProjectstatus

$Ͳ3

$25.3million

 Definition:TheindicatormeasuresthechangeinannualrevenueofbusinessesinIMCareas,sectors andsubͲsectorsofeconomythatparticipateinandbenefitfromtheProjectͲsupportedactivities. BusinessesarelegalentitiesregisteredintheRepublicofSerbia.Theycanbelongtocategoriesof entrepreneurs,agricultureproducers,smallandmediumenterprises,orlargeenterprises,asdefined bylocalcategorization.  Increaseofbusinessrevenues:$25,325,000sincethebeginningofprojectimplementation.  AsoftheendoftheProjectimplementation(August2016),theofficialstatisticaldataon2015 businessrevenuesarenotyetavailableonthewebsiteoftheAgencyforBusinessRegistries (Agencijazaprivredneregistre–APR).Datapresentedinthisreportarebasedoninputscollected fromSLDPpartnerfirmsandassociations,suchastheVojvodinaMetalClusterandtheTechnology  3

Targets for increased business revenues are not set for the FY2016. In previous years, business revenues were counted as part of the overall economic impact of the Project, together with investments.

SLDPFINALREPORT



Page|70

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

andFoodͲProcessingParkinLeskovac.Atotalof45companiesprovideddataandreportedatotalof growthofrevenuesby$2.9millioninthecalendaryearof2015.Thecollecteddataareavailableat theendofthisannex.  CommentsandProject’scontribution: Projectexpertsworkedwith69individualcompaniesandwithninesectorclustersorassociationsof producers,assistingtheminimprovingtheirproduction,expandingtheirproductoffer,modernizing promotionalactivitiesandmaterials,andestablishingcontactwithpotentialbuyersabroad. Targetedsectorswere:textileͲdenim(9companiesinNoviPazarandtheProDenimandASSTEX associations),metalprocessing(28companies,membersoftheVojvodinaMetalCluster),ICT(9 companies,NiCATͲNisClusterofAdvancedTechnologiesandtheVojvodinaICTCluster),furniture(8 companies),footwear(8companies),foodͲprocessing(7companiesandTechnologyandFoodͲ processingParkinLeskovac).   Indicator 4.NumberofinterͲmunicipaleconomicdevelopmentprojects implementedthatmeetthecriticalpathmilestones

EndofProject target

EndofProject status

20

26

 Definition:AninterͲmunicipaleconomicdevelopmentprojectisdefinedasabusinessopportunity identifiedandimplementedinprojectͲsupportedIMCareasthatengagetheprivate,public,andcivil sectorstocreatejobs.(FormoreontheindicatordefinitionseeRevisedPMP,datedApril15,2013)  Status:WithineightNewCriteriaPrograms,thereare21IMCeconomicdevelopmentprojectsin differentstagesofimplementation.  Comments:ThelistofIMCeconomicdevelopmentprojectsisasfollows:  VranjeͲledIMC: Project1. Investmentattraction Project2. IncreasingsalesandexportsoffootwearsectorSMEs Project3. ActionplanningforpositioningSerbiaasasolidwoodfurnitureͲexportingcountry  NisͲledIMC: Project4. BuildingcapacityoftheNisFoodProcessingSupportCenter Project5. LeskovacTechnologyandFoodProcessingCenter Project6. InvestmentattractioninNisͲledIMCarea Project7. ICTAcademy Project8. ActionplanningforpositioningSerbiaassolidwoodfurnitureexportingcountry  UziceͲledIMC: Project9. Valuechaindevelopmentbetweentourismindustrybuyersandpotentialvendorsin theIMCarea Project10. InvestmentattractionintheIMCarea Project11. ActionplanningforpositioningSerbiaassolidwoodfurnitureͲexportingcountry  SuboticaͲledIMC: Project12. AlaboratoryforagricultureproductsinSubotica Project13. AnagriculturaltrainingcenterinSombor Project14. Investmentattraction(FY2014) 

SLDPFINALREPORT



Page|71

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

ZrenjaninͲledIMC: Project15. EstablishingAgricultureBusinessIncubator Project16. Investmentattraction(FY2014)  NoviPazarͲledIMC: Project17. IncreasingsalesandexportsofdenimsectorSMEs Project18. IncreasingsalesandexportsoffurnituresectorSMEs Project19. IncreasingsalesandexportsoffootwearsectorSMEs Project20. Acollectioncenterforherbsandforestfruitproducts Project21. ActionplanningforpositioningSerbiaassolidwoodfurnitureexportingcountry  NoviSadͲledIMC: Project22. MarketexpansionofVojvodinaMetalCluster Project23. Investmentattraction Project24. ICTAcademy  KraljevoͲledIMC: Project25: SupporttoImpulsCenterKraljevoandTechnologyParkCacak Project26. ActionplanningforpositioningSerbiaassolidwoodfurnitureexportingcountry   Indicator–completedinFY2015 5.NumberofbusinessͲfriendlymunicipalities

Endof Project target

EndofProject status

17

25

 Definition:NumberofmunicipalitieswithNALED’sbusinessfriendlycertificateattheendofthe projectimplementation,includingthefollowing: (a) Atleast17participatinglocalgovernmentsassistedinachievingbusinessͲfriendlystandards bytheproject.ThismeansthattheprojectprovidedtechnicalassistanceandtheLG successfullyrespondedtoatleastoneNALED’srecommendation,resultinginmeetingat leastoneadditionalBFCcriterion. (b) Atleast17localgovernmentsinSerbiaarecertifiedand/orreͲcertifiedafterproject completion.CertificationandreͲcertificationattainedthroughNALED'sBusinessͲFriendly Certificationprogram.  Status:CompletedinFY2015.25municipalitieswereassistedbytheProjectinBFCprocesssincethe beginningoftheProjectimplementation.  CommentsandProject’scontribution TheProjectprovideddirecttechnicalassistanceforachievingBFCstandardsandFDIcoachingto25 partnermunicipalities.   Indicator 6.Numberofmunicipalitiesthathaveestablishedorimproved managementpractices.

EndofProject target

EndofProject status

32

31

 Definition:Thenumberoflocalgovernmentsthatmanageassetsmoresustainably,practicegood governancetechniques,andhaveintegratedbusinessͲrelatedserviceinitiativesintoIMC developmentplansandprojects.

SLDPFINALREPORT



Page|72

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

Inpractice,anymunicipalitythatmadeatleastthreeofthefollowingimprovementswillbecounted: 1) improvedassetmanagement(ifalocalgovernmentreplicatedUzicebestpracticesthrough mentoring) 2) improvedmanagementandmonitoringofpublicutilitycompanies 3) inventory,prioritization,andcommercializationofbrownfieldinvestments 4) improvementsmadebymunicipalitiesinaccordancewiththeBFCstandards(ifthereisatleast oneimprovedcapacity,measuredbytheBFCcriteria) 5) established/supportedbusinessrelatedservices/procedures(includingagribusiness)(ifalocal governmentsupportedtheestablishmentofamechanismthathelpsbusinesssectortogrow).  Status:Atotalof31localgovernmentswereassistedintheireffortstoimproveatleastthreeofthe abovelistedmanagementpractices.GornjiMilanovacistheonlymunicipalitythathasconsistently beenuninterestedinparticipatinginprojectactivitiesdesignedtoimprovemanagementpractices. ThemunicipalityparticipatedonlyinoneTAactivity,whichfocusedonstrengtheningcapacitiesof theLEDOandmunicipalofficialsininvestmentattractionandretentionthroughSCTMtrainingand distancelearningtraining.  CommentsandProject’sContribution: Theprojectteamworkedonimprovingcapacityofmunicipalitiestoeffectivelymanageservicesand capitalinvestmentprojectsofinterͲmunicipalsignificance.MainfocuswasonincreasingIMC competitivenessthrougheffectiveassetmanagement,utilizinglocaleconomicdevelopment mechanismsandtoolsandadvancinglegalframeworkthatspursinterͲmunicipalcooperation.The progressofIMCcapacitiesduringtheprojectimplementationispresentedinthetablebelow: YearofImplementation   CAPACITY IMCpartnershiphasbeenformed CapacitiesoflocalselfͲgovernmentsformedintheareaof: AssetManagement PublicUtilityCompanyManagement Bettermanagedinventory,prioritization,and commercializationofbrownfieldinvestments SupportprovidedtoIMCswhereLGsparticipateinBFC certification Established/supportedbusinessͲrelatedservices/procedures (includingagribusiness)  Infrastructureprojectsdeveloped: Participatoryinitiativesandeventsthatinvolvedialogue betweenthepublic,private,andcivilsectorsorganized Activitiesthatincreasethelevelofyouthemployability implemented NewCriteriaPrograminitiatedtosupportprioritybusiness sectors NCPactivitiesincreasedcapacityandcompetitivenessoflocal privatesector NCPimplementationhasmeasurableresultsintermsofnew employment PublicͲprivatepartnershipsestablished FDIattractioncapacitiesareimproved Newdirectinvestmentsimplemented Businesssectorinnovationsweresupportedbytheprojectand improvedsectorcompetitiveness

FY 2011 #of IMCs 4   

 

FY 2012 #of IMCs 8  2 1 

FY 2013 #of IMCs 8  6 3

FY 2014 #of IMCs 8  8 7

FY 2015 #of IMCs 8  8 7

FY 2016 #of IMCs 8  8 7

3

7

7

7

7

5

8

8

8

8

8

8

8

8

8

8

8

 









Total #ofIMCs 8  8 7



1

5

5

6

6

5

8

8

8

8

8

7

8

8







8

8

8

8

8

8

8

8

8

1

8

8

8

1 8 4

2 8 6

3 8 7

3 8 7

3 8 7



5

7

7

7





















 

 



SLDPFINALREPORT



Page|73

SUSTAINABLELOCALDEVELOPMENTPROJECT



Indicator–CompletedinFY2015

FINALREPORT 

EndofProject target

7.NumberofPPPscreatedinthedeliveryofpublicservices

7

EndofProject status 7

 Definition:APublicͲPrivatePartnership(PPP)isacooperativeventurebetweenthepublicand privatesectorsthatmeetsclearlydefinedpublicneedsthroughanappropriateallocationof responsibilities,resources,risksandrewardsamongthepartners.APPPmustinvolvesome measurableprivatepartnercontributiontothecooperativeventureintermsofcashcontributions, monetizedinͲkindcontributions,and/ornonͲcashleverage.  Status:CompletedinFY2015.SevenPPPswereinitiatedsincethebeginningoftheproject.  CommentsandProject’sContribution: SevenPPPswerereported:APPPmodelofProDenimassociationinNoviPazartojointlyutilize ozonejeanͲfinishingequipment;PPPbetweentheMunicipalityofBeocinandLaFargecompany, aimedatinfrastructuredevelopmentandexpandingoftheBeocinindustrialzone;twoPPPswere establishedwithinYouthDevelopmentcomponentthroughpartnershipswithbanksforsubsidized startͲuploans;threePPPswithintheYouthHorticultureIncubatorProgramsinZrenjaninͲledIMC.   IndicatorCompletedinFY2015 8.Numberofyouthwithincreasedcompetitivenessinthelabor market

EndofProject target

EndofProject status

1,050

1,234

 Definition:Youngmenandwomen,age15to30,participatinginoneofthetwoprojectͲsupported activities,aimedatincreasingtheircompetitivenessonthelabormarket: (a) Atleast250youthinternshipspilotedandsuccessfullyimplemented,whereat least30percentoftargetedinternsareinvolvedintheIMCnewcriteriaprograms. (b) Atleast800youthprogramparticipantsinprojectͲsupportededucational programs.  Status:Sincethebeginningoftheproject,atotalof782youthsparticipatedinprojectͲsupported educationalprograms,and452internshipswereimplementedwithprojectsupport.  CommentsandProject’sContribution ThemostsuccessfulYouthDevelopmentComponentactivitieswereasfollows: Ͳ GrantassistancetotheCSOSmartKolektivͲinternshipandentrepreneurship opportunitiesforyoungpeopleacrosstheNis,NoviSad,Kraljevo,andSuboticaͲledIMC areas(covering17municipalities). Ͳ CSOGroup484trainedyouthtofindemploymentandstarttheirownbusinessesin12 municipalitiesintheNoviPazar,Vranje,andUziceͲledIMCareas. Ͳ OnͲtheͲjobtraining(OJT)implementedwithCromerGroup,duringwhich166interns wereplacedin36companiesacross14municipalities. Ͳ ICTClusterAcademiesinNisandNoviSad,whereduringasixͲmonthtrainingprogram, 65unemployedyoungpeopleacquiredskillsindemandinthelabormarket,preparing themforjobsintheITindustry;41participantsfoundnewemploymentaftercompleting theICTAcademyprogram.

SLDPFINALREPORT



Page|74

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

  Indicator–CompletedinFY2015 9.NumberofmajorinfrastructureinterͲmunicipalprojectsassistedin theprocessofapplyingfortheEUandGOSfinancing.

EndofProject target

EndofProject status

5

9

 Definition:Amajorinfrastructureprojectisdefinedas"heavyinvestments,i.e.basicinfrastructure, waterandwastewatersystems,solidwastemanagement,orroadinfrastructure.”Italsoincludes businessenablinginfrastructure,suchasbrownfields,greenfields,powersupply,andgas infrastructure.TheprojectwillprovidetechnicalsupporttoatleastfivesuchprojectsoninterͲ municipallevel,inordertoimprovestatusoftheirtechnicalpreparednessandincreaseprobability oftheirfinancing.  Status:TheprojectassistednineinfrastructureinterͲmunicipalprojectsintheprocessofapplyingfor EUandGOSfinancing.  CommentsandProjectcontribution:  IntheVranjeͲledIMCArea: 1.EnvironmentalprotectionoftheSouthMoravaRiver.Basedontechnicaldocumentation developedbytheproject,theEU/Progresprogrampurchasedeffluentmeters.Vranjeconstructeda watereffluentsmeasurementstationandhasbegunusingthemetersinVranjskaBanja,while Presevo,Bujanovac,andVladicinHanhavenotyetconstructedmeasurementstations.However, VranjehassignedacontractwithKfWfor€15.2millionontheconstructionofawastewaterfacility; thecontractwassignedinNovember2013.TheprojecthasbeenenteredintotheSLAPdatabase.  2.“Meteris”regionallandfillwithrecyclingfacilities.Withtheassistanceofprojectexpertsandthe EUProgresprogram,aRegionalSolidWasteManagementPlanwasdevelopedandobtainedan approvalfromtheMinistryofEnvironmentalProtection.Bujanovicaddedthetransferstation projecttotheSLAPdatabaseinMarch2015aspartofthisRegionalSolidWasteManagement Project.  3.BunusevacIndustrialZonebypassroad.Theprojectfundedthedevelopmentofatopographic planforabypassroadthathasbeenenteredintotheSLAPdatabase.TheEUProgresprogram fundedthemajorconstructionplan.Atthetimeofreporting,thecityofficialsofVranjeworkon completingthedocumentation.Constructionworkshavenotstarted.  4.BunusevacIndustrialZone.Theprojectfundeddetailedinfrastructuredesigns.Designsofroads, watersupplyandfireprotectionsystem,sewerage,raindrainage,electricitysupply,and telecommunicationweredeveloped.ProjectdocumentationfortheIZwasdeliveredtoVranjein June2014,andtheprojecthasbeenenteredintotheSLAPdatabase.Thisdocumentpresenteda basisforthedevelopmentofthecompleteinfrastructureonthis32hasite,whereGEOXbuiltits factoryandanothertwoinvestorsstartedtheirinvestments.  5.CukarkaIndustrialZone.InPresevo,theprojectcompletedapreͲfeasibilitystudyforanindustrial zone.WhiledevelopingthepreͲfeasibilitystudy,theprojectdiscoveredthatanunsolvedland propertyissuethreatensthewholeactivity.TheMinistryofEconomyhasappropriated approximately$95,000totheMunicipalityofPresevofortheconstructionofapowernetworkto CukarkaIZ.TheprojecthadpreviouslyprovidedlegaladviceandonͲtheͲjobassistancetoPresevoon resolvingtheabovementionedproprietaryhurdlesrelatedtotransferoftheownershiponlandfrom the‘mesnazajednica’(submunicipallevelofgovernment)totheMunicipalityofPresevo.

SLDPFINALREPORT



Page|75

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

  IntheNisͲledIMCArea: 6.WaterSupplySystem“Pustareka.”AfeasibilitystudywascompletedtohelptheDoljevac Municipalityplanasecureandcontinuoussupplyofpotablewaterfortheentirepopulationinthe prescribedquantityandquality.Basedonthestudy,themunicipalitywillsubmitaprojectproposal totheSerbianGovernmenttoreconstructtheregionalwatersupplysystem.Theprojecthasbeen enteredontotheSLAPdatabase.  IntheSuboticaͲledIMCArea: 7.AgriculturalEducationalCenterinSombor.Theprojectsupportedthedevelopmentand reconstructionoftheCenter,whichwasdeliveredinFebruary2014.Thetechnicalcontrol assessmentofprojectdocumentationwascompletedinMarch2014.TheAgriculturalTraining CenterreconstructionwascompletedinAugust2014,andtheCenterhasbeencompletelyfurnished andequipped.Intheperiod2014Ͳ2015,theCenterorganized115trainingcoursesand presentations,withanestimatedparticipationof8,700people,mainlylocalfarmers.  TheNoviSadͲledIMCAreahastwoindustrialzonesassistedbytheproject: 8.BeocinBusinessPark.TheProjectsupportedthedevelopmentofanewindustrialzoneinBeocin. Thegeotechnicalreportandtechnicalanalysiswithpreliminarycostestimatewerecompletedin January2014,anddetaileddesignsweredevelopedforallprojectcomponents:roads,watersupply system,sewagesystem,raindrainage,lowpressuregasdistributionnetworkand telecommunication.Thetotalvalueofprojectdocumentationis$58,000;thisdocumentationwas developedbySAFEGEengineeringcompany.ConstructionworkontheIndustrialZoneiseligiblefor supportbyProvinceofVojvodinaorGoSstatefunds,andthecityisactivelyengagedinsolicitingthis support.ThisprojectwasenteredintotheSLAPdatabaseinOctober2014.Thankstothe documentationandthepublicͲprivatepartnershipagreementbetweenLaFarge(cementfactory), thelocalselfͲgovernmentofBeocinandtheproject,twonewinvestorscametothebusinesspark: MarsGroup(metalprocessing)andAgrogrnja(agribusiness).  9.TemerinIndustrialZone.Alocationpermithasbeenissuedforanaccessroad.AGeotechnical ReportandGeodeticSurveyweredeveloped,andapreliminarydesignandafeasibilitystudywas beencompletedandsubmittedtotheTechnicalRevisionCommitteeoftheVojvodinaProvince Government.Afterthreemonths,theSerbianMinistryofConstruction,TransportandInfrastructure providedcommentsandsuggestionsthatneedtobeadoptedandincludedinthepreliminarydesign andfeasibilitystudy.Anewversionofthestudyandpreliminarydesignwaspreparedandsubmitted inDecember2014.Afterfinaladoptionofthenewstudyandpreliminarydesigns,themaindesign anddesignoftemporarytrafficsignalswerecompletedattheendofMarch2015.Theprojectwas enteredintotheSLAPdatabaseinFebruary2015.   Indicator–CompletedinFY2015 10.Numberoflocallyelectedandappointedofficials,CSO members,mediaandthebusinesscommunitytrained

EndofProject target

EndofProject status

1,750

2,877

 Definition:Locallyelectedandappointedofficials,membersofCSOs,mediaandbusiness communityparticipateinanyprojectͲsponsoredtrainingand/orhavetheirskills/knowledge improvedthroughthetechnicalassistanceprovidedbytheproject.  Status:SincethebeginningofProjectimplementation,totalparticipationinProjectͲsponsored trainingshasbeen2,877.Outofthatnumber,1,258werefemaleparticipants(44percent).

SLDPFINALREPORT



Page|76

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

 Indicator–CompletedinFY2015 11.Numberofcorporatesocialresponsibilityinitiativessupported

EndofProject target 4

EndofProject status 4

 Definition:NumberofCSRinitiativessupported,demonstratingasustainablemechanism(s)to monitorandimprovelocalbusinessenvironment.  CorporateSocialResponsibility(CSR)isacompany’ssenseofresponsibilitytowardthecommunity andenvironment(bothecologicalandsocial)inwhichitoperates.ThegoalofCSRistoembrace responsibilityforthecompany'sactionsandencourageapositiveimpactthroughitsactivitiesonthe environment,consumers,employees,communities,stakeholders,andallothermembersofthe publicspherewhomayalsobeconsideredasstakeholders.Companiesexpressthiscitizenship through,forexample(1)theirwasteandpollutioneducationprocessesand(2)bycontributing educationalandsocialprograms.  Status:FourCSRinitiativescompletedsincethebeginningoftheproject’simplementation.  CommentsandProject’scontribution 1) ERSTEBankestablishedacreditlineforyouthentrepreneursanddistributedapproximately 100,000eurosunderspecialconditionsthatincludelowerinterestrateswithnocollateralor guaranteesneeded.Additionallywithinthisprogram,called“SuperStep,”thebankprovides adviceandmentorshipforbusinessplanning.  During2013,theprojectworkedtocreateinternshipandentrepreneurshipopportunitiesfor youngpeopleacrosstheNis,NoviSad,Kraljevo,andSuboticaͲledinterͲmunicipalcooperation areas(covering17municipalities).TogetherwithimplementingpartnerandSLDPgranteeSmart Kolektiv(SK),theprojectsupportedyouthtoacquirebusinessskillsandgaininternshipand entrepreneurshipexperiencethusenablingyoungpeopletosuccessfullyenterthelabormarket.  Thisinternshipandentrepreneurshipassistanceprogram,carriedoutinpartnershipbetween SmartKolektiv,ErsteBank,andtheNationalEmploymentService,withsupportfromthe MinistryofYouthandSports,demonstratesthatcooperationbetweenthepublicandtheprivate sectorsisawinningcombinationfortacklingyouthunemploymentinSerbia.  2) UnicreditBankprovidedfinancialassistanceandactivelyparticipatedintheactivities organizedbytheCSOGroup484andtheprojectin2012and2013.Thisinitiativeaimedat trainingandhelpingyouthsfindemploymentandestablishcompanieswithmentorship guidancebylocalandinternationalexpertswhotransferredknowͲhowacquiredintheforeign labormarket.Withintheprogram,Group484providedentrepreneurshipassistancefor19youth teamswhoworkedondevelopingbusinessideas,15ofwhichreceivedinͲkindstartͲupgrants. Theprogramcovered12municipalitiesintheNoviPazar,Vranje,andUziceͲledinterͲmunicipal cooperationareas.UnicreditBankawarded12grants,eachvaluedat1,200euros,andthe projectprovidedthreegrantsofthesamevalue.  3Ͳ4)TheconceptofICTAcademywassuccessfullypilotedinNisandNoviSadICTClusters, wheremembercompaniesinvestedresourcesintoaneducationalbaseforyounginternsand trainees,aswellastheircompanymembershipduesforthetwobusinessassociations,the VojvodinaICTClusterandtheNisClusterofAdvancedTechnologies(NiCAT).ThesetwoCSR initiativesresultedwith65studentssuccessfullygraduatedfromtheprogram,and41ofthem foundnewemployment.

SLDPFINALREPORT



Page|77

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

 Indicator 12.Numberofinitiativesinvolvingdialogue betweenthepublic, privateandcivilsectors

EndofProject target

EndofProject status

61

70

 Definition:Thisindicatormeasuresinitiativestodialoguewiththepublic,includingthosenot orientedtowardjobcreation.However,asthisisanimportantindicatorofLGtransparencyand accountability,theprojectwillcontinuetoreportandfollowsignificantattemptstodialoguewith thepublic(conferences,publichearings,etc.).Thereisachallengeincapturingallinitiativesto dialoguewiththepublic,forexample,inͲofficevisitsareveryhardtogatherduetolimitedproject andLGresources.  Status:70initiativessincethebeginningofprojectimplementation.  

SLDPFINALREPORT



Page|78



OverviewofInvestmentsintheProjectPartnerCitiesandMunicipalities (andLeveloftheProject’sattribution)  # City/ Municipality

Companyorproject name

 

 

 

   

Vranje   



Vranje





 

Vranje 

 

Vranje 



Beoēin

DitreItalia Orion ImmofinanzGroup SLDP'scontributionto Vranje: (FDIcoaching;technical documentationforIZ Bunusevac;TAto furnituresector;grant toConfindustria; supporttoworkforce developmentin accordancetothe needsoftheinvestor)  Landpreparationin IndustrialZone Bunusevac,forthe needsofGeox investment SLDP’slevelof attribution GEOX SLDP’slevelof attribution ORION SLDP’slevelof attribution J&J

SLDPFINALREPORT

Company’s countryof origin  

Company’stypeof activityortypeof project

Typeof Investment





Italy Russia Austria 100%

Furnitureproduction Mechanicalindustry Trade 

greenfield greenfield greenfield 

EU/GoS Ministryof Finance 

Infrastructurefor IndustrialZone

other

Investments(€)

Actual Private Public 

#JobsCreatedasResultofInvestment

Committed Private Public

Created Private Public

13,800,000







 

   

TBD 13,800,000

 

 

 



869,565









50%

Expected Private Public 410 200 TBD 610

 

434,783

Italy 50%

Shoeproduction 

greenfield 

Russia 50%

Metalsector

greenfield

France/Serbi a

Metalindustry

greenfield



 





15,000,000  7,500,000  

 









8,400,000 4,200,000







2,000,000 





1,250  625  200  100 

50



   











100

Page|79



 # City/ Municipality

Companyorproject name

 

 

 





 

Beoēin 

 

Beoēin 

 

Beoēin 





 

 

(TAforcreationof businessͲfriendly environment) PrimaEnergy SLDP'slevelof attribution: (FDIcoaching;technical documentationforNew industrialzone;TAfor creationofbusiness friendlyenvironment) Deltatehnik SLDP'slevelof attribution: (TAforcreationof businessfriendly environment) Hengert SLDP'slevelof attribution: (FDIcoaching;technical documentationforNew industrialzone;TAfor creationofbusiness friendlyenvironment) Technicalprojectfor industrialzone equipping InoBacka SLDP'slevelof attribution: (FDIcoaching;technical documentationforNew industrialzone;TAfor

SLDPFINALREPORT

Company’s countryof origin  

Company’stypeof activityortypeof project

Typeof Investment





20%





Slovakia 50%

Solarpowerplant

Serbia 20%

Serbia 50%

Actual Private Public

#JobsCreatedasResultofInvestment

Committed Private Public

Created Private Public

Expected Private Public

400,000 





10



20 

greenfield

1,800,000  900,000 





2 1



10  5 

Mechanicalindustry 

brownfield 

300,000  60,000 

 

 

30 6

 

5  1 

Agribusiness 

brownfield 

 

 

10  5 

USA

Serbia 50%

Investments(€)

 

 

50,000 25,000

other

Realestate 



 

50,000

greenfield 



 

 









2,000,000 1,000,000



















Page|80

10  5 

 # City/ Municipality  

 

 

Beoēin 

 

Doljevac 



Doljevac







NoviSad





Companyorproject name   creationofbusiness friendlyenvironment) DOOMars SLDP'slevelof attribution: (FDIcoaching;technical documentationforNew industrialzone;TAfor creationofbusiness friendlyenvironment; TAforbusiness retentionand expansion) Fenixsting SLDP'slevelof attribution: (LEDofficecapacity building) LEONIWiringSystems Southeast SLDP'slevelof attribution: (NisLEDOffice guidance,mentoring andpractical assistance,allthrough IMC;FDIcoaching; technical documentationfor regionalwaterworks) K314 SLDP'scontributionwas indirectandconsisted of:

SLDPFINALREPORT

Company’s countryof origin  

Company’stypeof activityortypeof project

Typeof Investment





Serbia 100%

Mechanicalindustry 

greenfield 



 

1,000,000 1,000,000







25  25 

Serbia 20%

Foodprocessing 

greenfield 



 

800,000 160,000







50  10 

Germany

Electriccable production 

greenfield





21,000,000







1,500 







21,000,000







1,500 

Electricequipment production 

brownfield









25



75 











13



37 

100%

Italy 50%



 

Investments(€)

Actual Private Public









#JobsCreatedasResultofInvestment

Committed Private Public







Created Private Public





Expected Private Public

Page|81

 # City/ Municipality  

 

Company’s countryof origin  



NoviSad

(LEDofficecapacity building;FDIcoaching; supporttoTraining Center;supporttoICT academy) CodeCentric

Germany







NoviSad







NoviSad





 

Companyorproject name

SLDP'scontributionwas indirectandconsisted of: (LEDofficecapacity building;FDIcoaching; supporttoTraining Center;supporttoICT academy) Danlaps

50%

SLDP'scontributionwas indirectandconsisted of: (LEDofficecapacity building;FDIcoaching; supporttoTraining Center;supporttoICT academy) TMNSEmpiry

50%

SLDP'scontributionwas indirectandconsisted of: (LEDofficecapacity building;FDIcoaching; supporttoTraining Center;supporttoICT academy)

50%

SLDPFINALREPORT

Germany

Netherlands

Company’stypeof activityortypeof project

Typeof Investment





Software development 

brownfield









8 















4 





brownfield









10 





Software development

Software development 



 

Investments(€)

Actual Private Public

brownfield 







Committed Private Public

Created Private Public

Expected Private Public



5





15







#JobsCreatedasResultofInvestment













7 







Page|82



 # City/ Municipality

Companyorproject name

Company’s countryof origin  

Company’stypeof activityortypeof project

Typeof Investment





Italy



greenfield

 

 

 



Subotica





 

Subotica 





Calcedonia,Gordon doo AssistancetoSubotica: LEDofficecapacity building;FDIcoaching; Brownfield developmenttraining; equippingagriculture laboratory;interͲ municipalcooperation withKanjizaand Sombor;eͲlearningon LEDwithSCTM; technicalguidancefor PPPs Lidl,Quontera TechnologyParkfor automotiveindustry, Dunkermotoren Swarovskid.o.o.

 

 Subotica

SLDPcontribution: Jovanovicandsons

50% Serbia

  

  NoviBeēej

ContitechFluidSerbia SLDPcontribution: AgroͲincubator

   

   





Omniapack BrodogradnjaMCI BiserKumaneDOO Industrijamesa Matijeviđdoo Knezpetrol

Germany 100% Local government, USAID Serbia Serbia Serbia Serbia

SLDPFINALREPORT

Investments(€)

Actual Private Public 

Created Private Public





Expected Private Public



1,000 

7,500,000 

Austria Germany

Trade Automotiveparts

greenfield greenfield

Austria

jewelry,home,and fashionaccessories  Poultry,food production Tireproduction  Agriculture

greenfield  greenfield

Plastic Nautical Chemical Foodproduction

brownfield brownfield privatization other

20,000 30,000 150,000 100,000

Oiltrade

other

150,000

Serbia

Committed Private Public

15,000,000 

50%

#JobsCreatedasResultofInvestment



 

 1,700,000 





 150 

greenfield

15,000,000 





 greenfield

8,350,000  

5,000,000 4,700,000



  10,000 

17,000,000 21,700,000

 





500

 





10,000,000





n/a  

600 





375 

 150

60,000

 



 

 

 

20 25 100 10

 

12

 

5















550 700 8

  

25 20 10 10

 

5

Page|83

 

  

 # City/ Municipality

Companyorproject name

 

 

 

  

  

NEXUSline Agroglobe Dijamantagrar





 

 Merošina













  

  

 

 

 

Zrenjanin 

PharmaceuticalBalkans DOONoviBeēej SLDPcontribution: MlinTimotijevicd.o.o.Ͳ Merošina JugotermͲproizvodna halazanovuliniju ēeliēnihpanelnih radijatoraͲ Aleksandrovo privrednodruštvoza transportrobeAS PREVOZͲTRANSPORT d.o.o.BuēiđMerošina DANITRANSPORTDOO Merošina Altinad.o.o. MesserTehnogas SUPERPELLETSDOO NIŠͲOGRANAKSUPER PELLETSDOO MEROŠINA STRBUCAIJOCA SLDPcontributionto Merosina:LEDoffice capacitybuilding;FDI coaching;asset management) Sitip Gomex

SLDPFINALREPORT

Company’s countryof origin  

Company’stypeof activityortypeof project

Typeof Investment





Serbia Serbia CroatiaͲ Serbia Ukraine

Textile Agribusiness Agribusiness

other brownfield other

Pharmaceuticals

100% Serbia

Investments(€)

Actual Private Public

#JobsCreatedasResultofInvestment

Committed Private Public

Created Private Public

250,000 10,000 200,000











other

7,000,000



 storage



7,920,000 70,000

Serbia

Metalprocessing



1,300,000

Serbia

Transport

Serbia

Transport



Serbia Serbia China

Production Production Woodprocessing

 

100,000 30,000 50,000

Serbia 100%

Foodprocessing 

 

Italy Serbia

Textile Trade

 



 





100 5 40



45 2 35

  





2



130









319 1



290

 











10



50,000 

1

41,000 





Expected Private Public







1



 

 

 

12 1 

50,000 1,691,000

 

 

 

 500,000

 

12,000,000 900,000

 

















 

 20

  

11 27

 

 32

 

 40

 

300 75

 



2

Page|84

 # City/ Municipality

Companyorproject name

 

 

 

Company’s countryof origin  

      

     , 

Jollytextil FulgarEast AvivArlon Rakicplast Kraun Technostrutture Triumpf

Turkey Italy Israel Serbia Russia Italy Serbia

  

  

Idea Jugodom Agrounija

Croatia Serbia Serbia

     

     

Serbia Sweden Serbia Serbia Slovenia 100%

   

Niš   

Aksa LKArmature ACE Levi9 PeritninaPtuj SLDPcontributionto Zrenjanin:LEDoffice capacitybuilding;FDI coaching;asset management;PPP concepts;agriculture development;BFC standards) JohnsonElectric Mikkelsenelectronics Nišekspres LIDL

  

  

DIS Teren/Cons LMBSOFTdoo

SLDPFINALREPORT

HongKong Denmark Serbia Germany/ Serbia Serbia Italy/Serbia Germany/ Serbia

Company’stypeof activityortypeof project

Typeof Investment





Textile Textile Retailpark Plasticbags Foodprocessing Mechanicalindustry Food processing/honey Trade Trade Agricultural equipment Trade Metalindustry Services Services Foodprocessing 



Investments(€)

Actual Private Public

 

 800,000 30,000,000   900,000 

 

  

 

Committed Private Public

Created Private Public







   

 200,000 1,200,000  300,000

 

Expected Private Public 

120

 

70 60 30 

 

 

160 

 

570 5 180  15

      

500,000 300,000 200,000

 

 

 

50 20 10

  











 

 

 

 

 



15,600,000



10 3 12 30 40 455



1,345

     



150,000 150,000 200,000 100,000 200,000 33,000,000

Production Production Logistics Trade

greenfield brownfield greenfield greenfield

15,000,000 1,000,000 500,000 1,000,000







500 22



550 78



9,000,000







100

Trade Energysector Electronics

brownfield other greenfield

5,000,000 2,000,000 1,000,000







100







500,000



100







 



#JobsCreatedasResultofInvestment

 



















Page|85

      

 # City/ Municipality

Companyorproject name

 

 

 

 

 





  

  

CleanEarthCapital (Vulkan)Krasnij treugoljnjik RobnakuđaBeograd (VeranoMotors/Marfin fond) VolvoServiceCenter StopShop/Immofinanz YuraCorporation

  

  

 

 

  

  

Kirey MeVCorporationHpm JohnsonElectric(2nd phase) Ladas Ergomade Astertextile TerenCons SLDPcontributionto Nis:FDIcoaching;study tourtoCzechRepublic; TAforremovalof administrativebarriers fordevelopmentof businesssector; trainingonbrownfield development;PPP concepts;asset management;interͲ municipalcooperation withLeskovac, Merošina,GadžinHani Doljevac;supportto regionalfood

SLDPFINALREPORT

Company’s countryof origin  

Company’stypeof activityortypeof project

Typeof Investment





Actual Private Public

USA Russia

Realestate Rubber

greenfield brownfield

 4,000,000



60,000,000 1,000,000



 280





 

Serbia

Trade

brownfield





10,000,000







200



Serbia Austria SouthKorea

Services Trade Electricalequipment production IT Mechanicalindustry Production

other greenfield other

  

 

1,000,000 10,000,000

 

 

 

15 150 400

  

 greenfield

100,000  

 

 50,000,000

 

 

 

 2,400

  

Foodprocessing Furniture

brownfield greenfield

1,500,000 



1,000,000 1,500,000







150 45

 

Textile Hydropowerplant

greenfield greenfield

  35,600,000

 

 

 

2,000  6,088

  

Italy Italy/Serbia HongKong Greece Denmark/ Serbia Turkey Italy 100%



 



Investments(€)





#JobsCreatedasResultofInvestment

Committed Private Public

Created Private Public

Expected Private Public

10

 





5,000,000 3,500,000 152,500,000



1,020







Page|86

 # City/ Municipality  

 

Companyorproject name  

  

Niš  Priboj







Leskovac

   

   

producers;Italian"road show"Ͳinvestment attractionmission. Benetton  Heatingplant,biomass (Austrianpartnerleft negotiations,andlocal governmentplansthe projectsolelyfrom publicresources) SLDPcontributionto Priboj:LEDoffice capacitybuilding;FDI coaching;asset management; InternationalSTTA providedin marketizationofthe largestbrownfield potentials) Elektrifikacijapolja– Rehabilitacijasistema zanavodnjavanjeI odvodnjavanje BimͲtex Falke 4Mdoo Jura

    

    

Jeanci Blanddoo SZTRMita Bebisnovi AutoStopInteriors

SLDPFINALREPORT

Company’s countryof origin  

Company’stypeof activityortypeof project

Typeof Investment





Italy/Serbia 20% Serbia

Production

brownfield

Energysector

brownfield

Investments(€)

Actual Private Public

Committed Private Public

35,000,000 7,000,000 

50%

#JobsCreatedasResultofInvestment

 

8,000,000 1,600,000 

Created Private Public

 2,500,000



1,700 340 

Expected Private Public



300 60 



1,250,000

  



Serbia

Infrastructure

greenfield



556,387



556,000









Serbia Germany Serbia SouthKorea

Manufacturing Manufacturing Furniture Electricalequipment production Textile Woodproduction Woodproduction Furniture Textile

brownfield greenfield other greenfield

1,774,646 9,207,770 117,030 3,000,000

 2,400,000  10,500,000







 

 

40 503 15 1,500

 

 110  1,000

   

brownfield other other other brownfield

3,000,000 56,896 106,034 212,703 1,000,000

65,000







1,000

 

  2,000,000

 

320 16 40 40 51

 

  100

    

Turkey Serbia Serbia Serbia Greece



 



















Page|87

 # City/ Municipality

Companyorproject name

Company’s countryof origin  

Company’stypeof activityortypeof project

Typeof Investment





 

 

 





100%







Leskovac March2015Ͳ March2016               

SLDPcontributionto Leskovac:FDIcoaching; Analysesofthe opportunitiesfornew investmentsonland lotsusedbythree companiesinfinancial difficulties;TAforBFC certification;assistance toFoodTechnology Park;interͲmunicipal cooperationwithNis, Merošina,GadžinHani Doljevac;supportto regionalfood producers. FungoJug

Serbia

Foodprocessing

other

DrvopreradaKociđ DrvoproduktPešiđ ZdravljeActavis MakiPlast Grafopen Jugotrans Orion Bavka BrađaApostoloviđ Bata Vin Mita Matex VuleKomerc IGMMladost

Serbia Serbia Serbia Serbia Serbia Serbia Serbia Serbia Serbia Serbia Serbia Serbia Serbia Serbia Serbia

Woodprocessing Woodprocessing Pharmaceuticals Construction Services Transport Trade Hotels Woodprocessing Woodprocessing Woodprocessing Woodprocessing Textile Agribusiness

other other other greenfield other other brownfield greenfield other other other other other greenfield brownfield

              

SLDPFINALREPORT



 

Investments(€)

Actual Private Public





#JobsCreatedasResultofInvestment

Committed Private Public

Created Private Public

Expected Private Public

18,535,079

13,521,387

2,000,000

556,000

2,525



2,210



10,000















500,000 8,000 3,000,000 550,000 25,000 50,000 558,490 200,000 18,650     380,000 660,000













 

 

 

 

 

 

 

 

 

 

 

 

6,000 6,000 6,000 5,000 5,000

 

 

 

 

 

 

6 6 6 5 5

 

 

              















Page|88

 # City/ Municipality

Companyorproject name

 

 

 

Company’s countryof origin  

     

     

MoravacZZ Enmondoo GrandeAdriaticFood BonesGroupDOO StatovackomercDOO GumaPrometDOO

Serbia Serbia Serbia Serbia Serbia Serbia





Serbia

   

   Kanjiza





MetalGalantGradnja DOO DOOPobedaPredejane StrelaKlajiđ SLDPcontribution: GenezaLtd.Ͳlogistic center KeramikaPlusKanjiža





50%

 

NoviPazar 

      

 Sombor  VladicinHan   

SLDPcontributionto Leskovac:FDIcoaching; BusinessRetentionand Expansion;interͲ municipalcooperation withSuboticaand Somboronagriculture capacities. PanamaNuovo Reconstructionof districtheatingsystem SLDPcontribution: FerreroGroup SLDPcontribution: Teklasautomotive Nectar SLDPcontribution: 

SLDPFINALREPORT

Serbia Serbia 100% Serbia Serbia

Company’stypeof activityortypeof project

Typeof Investment





Actual Private Public

Agribusiness Trade Foodprocessing 

greenfield greenfield greenfield greenfield greenfield greenfield

850,000 2,000,000 192,300 91,090 140,500 734,600

other

Electricpower production Construction

Investments(€)

#JobsCreatedasResultofInvestment

Committed Private Public

Created Private Public

Expected Private Public













 

 

 

 

 

 













     

1,606,444



























28,000 

 

 

28 

 

 

   

Electric/solarplant

greenfield

 Trade/logistics

 brownfield

291,300 216,000 12,082,374 1,500,000

Production/ceramic tile

brownfield

1,000,000



1,250,000



Serbia Serbia

Shoeproduction Publicheating

brownfield other

150,000 

100% Italy 100% Turkey Serbia 100% 

 Foodprocessing  Automotiveparts Foodprocessing  

 greenfield  greenfield greenfield  

150,000 7,950,000 7,950,000  7,000,000 7,000,000 



 







12









380,000











380,000

12



 

 11,350,000

 

 

 

 50 50 400

 

11,350,000 

 

 

 

 









Page|89

        

 # City/ Municipality  

 

Companyorproject name  

  

Company’s countryof origin  

Company’stypeof activityortypeof project

Typeof Investment





Investments(€)

Actual Private Public

TOTAL:ALLINVESTMENTSTODATE(EUR) TOTALATTRIBUTABLETOTHEPROJECTTODATE(EUR) TOTALATTRIBUTABLETOTHEPROJECTTODATE(USD)

212,228,453 156,888,453 192,779,211

#JobsCreatedasResultofInvestment

Committed Private Public

14,468,952 14,034,170 19,070,320

268,200,000 250,935,000 305,725,341

Created Private Public

3,496,000 2,246,000 2,959,441

8,226 5,772 5,772

Expected Private Public  

15,010 13,993 13,993

 

SLDPFINALREPORT



 



















Page|90

  

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT

StatusofRevenueandEmploymentinBusinessesSupportedbytheProject  #

MB

PIB

Nameofthecompany IMC

1 20165260 104436502 PrimaNova 2 20274182 104953265 MoravkaPro 3 17017802 100412047 DCPHemigal 4 5 20408081 105535248 6

7968167 101909967

7 20414626 105597453

Arena TomacoLine Jugprom BontaItaliane

8 20338709 105197730 4BrTref 9 20788372 107367352 Florida1994 10 56273468 103175414 Boša 11 51484991 102166801 Antilop 12

6854834 100547808

StefiͲKomerc

13 20794089 107397833 EuroScarpa 14 17127829 100546908 Minex 15 20424168 105633379 CecoLine 16 N/A

N/A

17

7953712 101859133

18

7416601 102132199

19 N/A

101255820

20 20160942 104408450 21

6121543 101787466

22

6123694 100745603

23 17390112 101345500

Atlas TamiͲTrade Dallas GIR DasaNameštaj Hersa AvisExportͲImport StilͲJasen

City

Businessrevenues Growthofrevenues 2013Ͳbaseline 2013Ͳ2015 (000RSD) (000RSD)

Industry

NI Leskovac Food NI Leskovac Food NI Leskovac Food NI Leskovac Food NI Leskovac Food NI Leskovac Food NI Leskovac Food Subtotal,FTPLeskovacFoodSector: NP NoviPazar Footwear NP NoviPazar Footwear NP NoviPazar Footwear NP NoviPazar Footwear VR Vranje Footwear NP NoviPazar Footwear VR Vranje Footwear NP NoviPazar Footwear Subtotal,FootwearSector: UE Užice Furniture NI Niš Furniture NP NoviPazar Furniture KV Kraljevo Furniture NP NoviPazar Furniture NP NoviPazar Furniture NP NoviPazar Furniture NP NoviPazar Furniture Subtotal,FurnitureSector:

3,880,195 289,838 1,117,910 19,472 318,914 31,268 180,403 Ͳ10,261 135,336 5,573 1,143,862 369,001 50,663 34,702 6,827,283 739,593 100,744 Ͳ20,162 61,449 28,202 34,793 233 15,998 7,003 87,361 87,379 84,197 Ͳ29,295 68,402 1,623 35,048 Ͳ20,796 487,992 54,187 387,215 30,273 182,805 Ͳ16,431 138,717 Ͳ103,774 655,235 250,992 129,846 14,535 41,993 2,520 99,266 481 114,930 13,928 1,750,007 192,524



  SLDPFINALREPORT













Page|91

Growthof revenues  2013Ͳ2015 (%)

Employment Growthof 2013Ͳ Employment baseline 2013Ͳ2015

7.5% 1.7% 9.8% Ͳ5.7% 4.1% 32.3% 68.5% 10.8% Ͳ20.0% 45.9% 0.7% 43.8% 1.0 Ͳ0.3 0.0 Ͳ0.6 11.1% 7.8% Ͳ9.0% Ͳ74.8%

332 109 99 13 45 125 6 729 25 35 12 8 83 19 131 9 322 120 74 1

38.3% 11.2% 6.0% 0.5% 12.1% 11.0%

61 24 25 38 343

138 9 0 4 Ͳ4 0 24 171 17 5 1 Ͳ3 97 Ͳ4 1 16 130 47 Ͳ2 0 45 1 1 1 0 93

Growthof Empl oyment 2013Ͳ2015 (%) 41.6% 8.3% 0.0% 30.8% Ͳ8.9% 0.0% 400.0%

Datasource TFPLeskovac TFPLeskovac TFPLeskovac TFPLeskovac TFPLeskovac APR APR

23.5% 68.0% 14.3% 8.3% Ͳ37.5% 1.2 Ͳ0.2 0.0 1.8

APR APR company APR APR APR APR APR

40.4% 39.2% Ͳ2.7% 0.0% 1.6% 4.2% 4.0% 0.0% 27.1%

company APR APR APR APR APR APR APR



SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT

 #

MB

PIB

Nameofthecompany IMC

24 17343530 100616033 LmbSoft 25

7360746 100666575

26 20054751 103946100 27

6957749 101153402

28 17156748 100339185 29 20684585 106806493 30 20683309 106799256 31 20480424 105876353 32

7389965 100617132

33

8023646 101633239

34

8579954 100239404

35

8790523 102937888

36

8144249 102299763

37

8061840 101449599

38

8059098 101444473

39

8066205 101642135

40 20241039 104797507 41 20096152 104114596 42 20695455 106867044 43

8176094 100582258

44

8677590 101092034

45

8554129 101092987

46

8247978 101047429

47

8682445 101162202

48 20240989 104845575

HarderDigitalSova Fazi Proxima IrvasInternational PhotonOptronics AtesSoft EtonDigital FeniksBb

NI NI NI NI NI NI NI NI NI

Novkabel VMC Dip VMC Unimet VMC TermoventSc VMC TermoventScͲLivnicaVMC SilaAd VMC DesURestrukturiranju VMC VosͲSystem VMC Tehnolink VMC Agroferocoop VMC Sigma VMC Berko VMC Narcissus VMC UtvaMilanPremasunacVMC Tehnoradionica VMC Idas VMC

City

Businessrevenues Growthofrevenues 2013Ͳbaseline 2013Ͳ2015 (000RSD) (000RSD)

Industry

Niš ICT Niš ICT Niš ICT Niš ICT Niš ICT Niš ICT Niš ICT Niš ICT Niš ICT Subtotal,ICTSector(NiCAT): NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal

217,556 57,766 121,381 85,609 51,898 35,853 12,735 Ͳ432 7,782 4,370 22,569 Ͳ16,760 70,042 Ͳ18,046 53,934 13,292 84,724 15,920 642,621 177,572 3,231,910 22,097 994,789 3,061 611,399 313,613 615,674 204,651 628,701 75,188 529,400 33,959 282,299 219,442 226,824 71,698 251,163 61,058 211,844 Ͳ52,857 161,788 Ͳ7,684 162,109 25,376 104,731 Ͳ6,681 97,885 1,903 96,773 Ͳ2,295 90,370 34,471

 

SLDPFINALREPORT













Page|92

Growthof revenues  2013Ͳ2015 (%) 26.6% 70.5% 69.1% Ͳ3.4% 56.2% Ͳ74.3% Ͳ25.8% 24.6% 18.8% 27.6% 0.7% 0.3% 51.3% 33.2% 12.0% 6.4% 77.7% 31.6% 24.3% Ͳ25.0% Ͳ4.7% 15.7% Ͳ6.4% 1.9% Ͳ2.4% 38.1%

Growthof Employment Growthof Empl oyment 2013Ͳ Employment 2013Ͳ2015 baseline 2013Ͳ2015 (%)

71 63 18 3 8 32 33 46 31 305 588 39 248 136 201 186 192 25 23 15 30 18 17 64 45 37

11 8 0 0 Ͳ1 5 Ͳ22 2 3 6 4 2 7 7 14 6 3 4 1 0 11 Ͳ1 0 Ͳ4 Ͳ7 8

15.5% 12.7% 0.0% 0.0% Ͳ12.5% 15.6% Ͳ66.7% 4.3% 9.7%

Datasource APR NiCAT APR APR APR NiCAT APR APR APR

2.0% 0.7% 5.1% 2.8% 5.1% 7.0% 3.2% 1.6% 16.0% 4.3% 0.0% 36.7% Ͳ5.6% 0.0% Ͳ6.3% Ͳ15.6% 21.6%

APR APR APR APR APR APR APR APR APR APR APR APR APR APR APR APR



SUSTAINABLELOCALDEVELOPMENTPROJECT

#

MB

49

PIB

8291462 101800686

Nameofthecompany IMC MiniͲInženjering

50 20688521 106830765 FSD 51

8655146 100450341

ElmerProfesional

52 51937457 101418594 Dukareli 53

8290164 101438266

54 20241586 104813419 55 20211725 104685001 56 61587055 101417614 57

8433747 101100841

58

8359156 100263437

59

8160112 101454555

60

8270112 101424898

GumilKomerc Citronix CastingTrade Pyrotherm Diex&Val Terming Energomont Livprodukt

61 20558245 106222660 Maxers 62 17047574 101788602 Mikan 63 17101714 101788442 Denis 64 20167998 104526369 Exelit 65 N/A

N/A



SKKRHisExactJeans

66 17270290 100748226 Join 67 20714301 106960194 BigBoys 68 20482265 105897036 ClassicJeans 69 17005634 101788821 Zemax

City

FINALREPORT

Businessrevenues Growthofrevenues 2013Ͳ2015 2013Ͳbaseline (000RSD) (000RSD)

Industry

VMC VMC VMC VMC VMC VMC VMC VMC VMC VMC VMC VMC

NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal NoviSad Metal Subtotal,MetalSector(VMC): NP NoviPazar Textile NP NoviPazar Textile NP NoviPazar Textile NP NoviPazar Textile NP NoviPazar Textile NP NoviPazar Textile NP NoviPazar Textile NP NoviPazar Textile NP NoviPazar Textile Subtotal,TextileͲDenimSector: GRANDTOTAL(RSDcurrency,000): GRANDTOTAL(USDcurrency,000):

66,849 Ͳ5,591 40,169 1,981 24,494 506 41,721 16,177 26,682 330 27,052 Ͳ10,965 8,357 640 7,217 3,257 3,304 1,906 1,545 2,585 549 2,031 20,485 Ͳ19,444 8,566,083 990,413 272,900 Ͳ54,203 169,626 Ͳ18,758 79,933 Ͳ13,193 15,384 11,083 15,080 13,418 98,387 57,409 7,589 Ͳ4,407 74,714 45,779 49,566 6,989 783,179 44,117 19,057,165 2,198,406 212,218 24,035

Growthof revenues  2013Ͳ2015 (%)

Employment Growthof Employment 2013Ͳ 2013Ͳ2015 baseline

Ͳ8.4% 4.9% 2.1% 38.8% 1.2% Ͳ40.5% 7.7% 45.1% 57.7% 167.3%

16 7 3 36 17 3 2 4 3 0

1 8 Ͳ1 Ͳ1 2 1 0 0 0 2

5 1,960 93 49 83 9 28 37 5 43 26 373 4,032

Ͳ4 63 13 17 Ͳ6 8 0 18 Ͳ4 26 Ͳ6 66 529

Growthof Empl oyment 2013Ͳ2015 (%) 6.3% 114.3% Ͳ33.3% Ͳ2.8% 11.8% 33.3% 0.0% 0.0% 0.0%

Datasource APR APR APR APR APR APR APR APR APR APR

3.7 Ͳ0.9 11.6% Ͳ19.9% Ͳ11.1% Ͳ16.5% 72.0% 89.0% 58.4% Ͳ58.1% 61.3% 14.1% 5.6%

11.5%

Ͳ0.8

APR

3.2% 14.0% 34.7% Ͳ7.2% 88.9% 0.0% 48.6% Ͳ80.0% 60.5% Ͳ23.1%

APR APR APR APR company APR APR APR APR

17.7%

13.1%

 Note:ThebusinessrevenueoffourdenimproducersinNoviPazarwereincreasedby$1.29millionin2013andthatfigureisnotpresentedinthetable above.Withthisnumber,thetotalgrowthofrevenueinSLDPͲsupportedcompaniesis$25.3millionduringthelifeofproject.

SLDPFINALREPORT













Page|93



SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

ANNEXD.INDEXOFPROJECTREPORTSANDPRODUCTS ReportsandAssessments SerbiaSLDPAnnualDOIRReportNo.1– September2011 SerbiaSLDPAnnulalDOIRReportNo.2–September2012 SerbiaSLDPAnnulalDOIRReportNo.3–September2013 SerbiaSLDPAnnulalDOIRReportNo.4–September2014 SerbiaSLDPAnnulalDOIRReportNo.5– September2015 SerbiaSLDPSemiͲAnnualReportNo.1–October2011 SerbiaSLDPSemiͲAnnualReportNo.2–April2012 SerbiaSLDPSemiͲAnnualReportNo.3–October2012 SerbiaSLDPSemiͲAnnualReportNo.4– April2013 SerbiaSLDPSemiͲAnnualReportNo.5–October2013 SerbiaSLDPSemiͲAnnualReportNo.6–April2014 SerbiaSLDPSemiͲAnnualReportNo.7–October2014 SerbiaSLDPSemiͲAnnualReportNo.8– April2015 SerbiaSLDPSemiͲAnnualReportNo.9–October2015 SerbiaSLDPSemiͲAnnualReportNo.10–April2016 StudyoftheImpactofNFEinYouthWork– April2014 Privatization:FiveCaseStudiesandKeyConclusions–November2014 Privatization:CaseStudySummary–November2014 MappingStudyonEUPracticesinRecognitionofNFEforEmployability LocalProductsandRegionalTourismValueChain– February2014 AgricultureCompetitivenessAnalysis–February2015 Serbia’sRealSectorPerformanceReport–December2014 GuideforNetworkingofYoungPeopleatLocalandRegionalLevel–August2012 DemandStudyforSpaTourismImprovementProject – April2014 ProgramManualforICTAcademy–October2014 HowtoBuildaGoodPPPProject–February2014 BestPracticesinSectorSupportforSMEDevelopment–July2016 ActionPlanforSupportingExportofHighAddedValueProductsoftheSerbianWoodIndustry – July2016  FinalGranteeReports Grantee NAPOR NALED

Report BuildingSystemofNonͲFormalEducationServices EstablishingPublicͲPrivatePartnershipasaKeyPillartothe SustainableDevelopment TFPLeskovac EstablishmentofProductDevelopmentResearchCenter (PilotPlant)atTFPLeskovac AmberSoftware FeasibilityStudyforRegionalFiberOpticNetworkfor Temerin,BeocinandSremskiKarlovci SEDA FeasibilityStudyonBiomassUtilizationinSandzakRegion ICTCluster Vojvodina BermanGroup Vojvodina MetalCluster SLDPFINALREPORT



Date October2014 February2014 July2015 July2012

ICTClusterAcademySerbianCaseProjectGuideline

September 2012 October2014

IndustrialZoneConceptDevelopmentPlanforVranjeIMC InnovativeClusterͲWideProductGrantFinalReport

March2012 June2015











Page|94

SUSTAINABLELOCALDEVELOPMENTPROJECT

SCTM Centerfor Developmentof Jablanica& PcinjaDistrict Confindustria Serbia RDAS RDAS RDAS RDAS Group484 RDAZlatibor SCTM



FINALREPORT 

LEDERLocalEconomicDevelopmentEducationalResponseͲ GranteeFinalReport PcinjaDistrictRegionalWasteManagementPlan

FeasibilityStudyoftheRegionalIndustrialWorkforce ContinuousDevelopmentCenterVranje EconomicPotentialsofSandzakRegion–FoodIndustry EconomicPotentialsofSandzakRegion–FurnitureIndustry EconomicPotentialsofSandzakRegion– ShoeIndustry EconomicPotentialsofSandzakRegion–TextileIndustry TogetherforDomesticDevelopment–EvaluationReporton theProjectResultsandAchievements UziceIMCRegionalValueChainͲPHASE2 EͲlearningCourseonLocalEconomicDevelopmentͲSectoral ApprachtoIndustrialRecoveryandJobCreation

August2014 September 2012

May2014 June2014 June2014 June2014 June2014 July2013 July2015 June2016

 ToolkitofTechnicalAssistance MaterialsforeͲlearningcourseforlocalgovernmentofficialsandstaff,USAIDSLDPandSCTM (http://elearning.skgo.org) MethodandProcedureforManagementofthePublicAssetRegistration,USAIDSLDP,MarchͲJuly 2012 ImprovementofLocalPropertyTaxAdministrationinSouthEastEurope,GuidelinesonLocal PropertyTaxAdministration,NALAS,March2009 GuidelinesforLocalGovernmentFinancing,USAID,2003 HowtoPrepareaGoodQualityPublicͲPrivatePartnershipProject,USAIDSLDP/NALED2012 DevelopmentoftheLocalInfrastructurethroughPublicͲPrivatePartnershipProjects,USAIDSLDP 2012 DevelopmentoftheEnergyEfficiencyProjectsthroughPublicͲPrivatePartnerships,USAIDSLDP 2012 PPPsinParkingServices,USAIDSLDP2012 PreparationoftheInfrastructureProjectsinSerbia,GuideforLocalGovernments,MSPͲNE,2012 ToolkitforPreparationandFinancingoftheLocalProjects,2011 GuidelinesforLocalGovernmentBorrowing,NALAS,2011 ToolkitforLocalRevenueMobilization,RTIInternational TransformationofthePUCsintheRepublicofSerbia,StandingConferenceofCitiesand Municipalities,2007 StrategiesforReform,ToolkitforLocalWaterCompaniesinCentralandSoutheastEuropean Countries,July2009 CostEstimationofMunicipalServicesinSouthEastEurope,NALAS,July2009 Analysisofthefunctionalityoflocalgovernmentwebsites,USAIDSLDP,February2012 TrainingMaterials–TowardsImprovingPUCPerformance,USAIDSLDP,Kovilovo,2011 StrategyofHumanResourceDevelopment,CityofUzice,February2010 TrainingProgramfortheLocalGovernmentOfficials,MinistryforStateAdministrationandLocal SelfͲGovernment,CARDS,2009   SLDPFINALREPORT













Page|95

SUSTAINABLELOCALDEVELOPMENTPROJECT



FINALREPORT 

ANNEXE.TABLEOFCOOPERATINGNGOS NGO   NAPOR

Proactive

Sandzak Committeefor Protectionof HumanRights andFreedoms

SLDPFINALREPORT



NGODescription

RelatedProgram Components

Component3: Youth Developmentand Participatory Mechanism– GrantActivity: QualityYouth service–step toward sustainablelocal developmentͲ Component3: Establishedin Youth 2010inNis, Developmentand focusedon decentralisation, Participatory Mechanism– participationof GrantActivity:The citizens,youth capacitybuilding. PowerofCitizens, implementedin FY2013

Establishedin 2009andfocused onpromotionof youthrightsand profesionalisation ofyouthwork

Establishedin 1991inNovi Pazar,focusedon protectionof individualand collectivecivil rights

Component3: Youth Developmentand Participatory Mechanism– GrantActivity:The Roleand Importanceof CivilSocietyfor Developmentof Democracyatthe LocalLevel, implementedin FY2013 



Strengths

Areasfor Continued Cooperation Capacity buidlingof youth organizations

Gathersyouth organisationsin Serbia;leading organizationin professionalization ofyouthwork, settingstandards, developing programsforyouth work

SLDP’s cooperation withthe organization waslimitedonly toit’s participationin theCSO“sfocal pointsprogram thatwas implemented through9grants issuestoleading CSOsinSLDPͲ supportedIMC areas.The activitywasnot expandeddue toproject’s focusonjob creation. SLDP’s cooperation withthe organization waslimitedonly toit’s participationin theCSO“sfocal pointsprogram thatwas implemented through9grants issuestoleading CSOsinSLDPͲ

Experiencein implementing activitiesthat promotecitizens participation

Extensive experiencewith protectionof humanrightsin Sandzakregion







Page|96

SUSTAINABLELOCALDEVELOPMENTPROJECT

NGO  

FINALREPORT 

NGODescription

RelatedProgram Components

Strengths

European Movementin SerbiaͲ Kraljevo

Establishedin 1992,advocates forpeaceful, democraticand fullEuropean integrationof Serbia

Component3: Youth Developmentand Participatory Mechanism– GrantActivity: ICMResource Centerfor Developmentof Participatory Democracy, implementedin FY2013

Experiencein project managementand technicalexpertise withexperiencein implementationof development programs.

Initiativefor integrationsͲ Inicijativaza integracije



Component3: Youth Developmentand Participatory Mechanism– GrantActivity: Guideformore transparentLocal Selfgovernments, implementedin FY2013

SLDPFINALREPORT













Areasfor Continued Cooperation supportedIMC areas.The activitywasnot expandeddue toproject’s focusonjob creation. SLDP’s cooperation withthe organization waslimitedonly toit’s participationin theCSO“sfocal pointsprogram thatwas implemented through9grants issuestoleading CSOsinSLDPͲ supportedIMC areas.The activitywasnot expandeddue toproject’s focusonjob creation. SLDP’s cooperation withthe organization waslimitedonly toit’s participationin theCSO“sfocal pointsprogram thatwas implemented through9grants issuestoleading CSOsinSLDPͲ supportedIMC areas.The activitywasnot expandeddue toproject’s



Page|97

SUSTAINABLELOCALDEVELOPMENTPROJECT

NGO  

FINALREPORT 

NGODescription

RelatedProgram Components

PalgoCenter

Establishedin 1998,activein thefieldofpublic administration, localgovernment andpublic policies,a prominentcivil society organizationin thisfieldof expertactionin Serbia

Component3: Youth Developmentand Participatory Mechanism– GrantActivity: Introducingnew crossͲsector communication mechanismfor greater accountabilityof local governments, implementedin FY2013

BalkanFund forLocal Initiatives– nowTrag Foundation

Foundedin1999, alocal foundationthat promotesactive participationof citizensinsocial changesin Serbia.

Component3: Youth Developmentand Participatory Mechanism– GrantActivity: Coordinationand SupporttoFocal pointCSOsfor increasedpublic participationin policydecision makingprocesses atlocalandinterͲ municipallevels, implementedin FY2013

SmartKolektiv Establishedin 2004,the organizationis focusedon SLDPFINALREPORT





Component3: Youth Developmentand Participatory 



Strengths

Areasfor Continued Cooperation focusonjob creation. SLDP’s Aprominentthink tankexperiencedin cooperation withthe research, organization education, implementationof waslimitedonly toit’s interdisciplinary participationin studiesand theCSO“sfocal organizationof pointsprogram internationaland thatwas regional implemented conferencesand through9grants roundtables, issuestoleading CSOsinSLDPͲ supportedIMC areas.The activitywasnot expandeddue toproject’s focusonjob creation. SLDP’s Alocalfoundation cooperation workingonlocal withthe community organization development waslimitedonly toit’s participationin theCSO“sfocal pointsprogram thatwas implemented through9grants issuestoleading CSOsinSLDPͲ supportedIMC areas.The activitywasnot expandeddue toproject’s focusonjob creation. SLDP’s Extensive experienceinyouth cooperation withthe workand organization promotionof 





Page|98

SUSTAINABLELOCALDEVELOPMENTPROJECT

NGO  

Group484



FINALREPORT 

NGODescription

RelatedProgram Components

promotionofCSR conceptinSerbia. Itoperates throughfourkey programmes: corporatesocial responsibility, socialinnovation, youth entrepreneurship andsocial marketing.It administratesthe BusinessLeaders ForumSerbia.

Mechanism– GrantActivity: YouthInternship and Enterprenuership

entrepreneurship amongyoung people.

Foundedin1995 toprovide supportto immigrantsand othervulnerable groupsthrough selfͲemployment, social cooperativesand associations.

Component3: Youth Developmentand Participatory Mechanism– GrantActivity: Developing Competitive YoungWorkforce trhough Cooperationwith Professional Diaspora Component3: Youth Developmentand Participatory Mechanism– GrantActivity: Developmentof CareerGuidance andCounseling Structureand Servicesthrough theInter Municipal Cooperationin Serbia

Astrongnetwork accrossSerbiaand extensive experienceinwork withimmigrants andvulnurable groups.

BelgradeOpen Aneducationa School civilsociety organization foundedin1993. BOSstrengthens humanresources, improvesworkof publicinstitutions and organisations, developsand advocatespublic policiesinorder todevelopbetter societybasedon freedom, knowledgeand innovation. SLDPFINALREPORT







Strengths

Areasfor Continued Cooperation waslimitedonly toit’s participationin theCSO“sfocal pointsprogram thatwas implemented through9grants issuestoleading CSOsinSLDPͲ supportedIMC areas.The activitywasnot expandeddue toproject’s focusonjob creation. Improving opportunities forvulnerable groups

AleaderinnonͲ formaleducation, developmentof innovative educationprograms forstudents, professors,public servants,experts, etc.







Modernization ofeducation programs, fostering connections between business communityand education institutions

Page|99

SUSTAINABLELOCALDEVELOPMENTPROJECT

NGO NGODescription   SerbianUnity ASerbian CongresSerbia diaspora international organizationthat promotesSerbian andAmerican culture.Working onvariousissues inSerbiasuchas restitution, rehabilitation, antiͲcorruption. Establishedasan Sandzak AgencyforSME Regional Development Developmentin AgencyͲSEDA 2002and transformedinto RDAin2009. Workinginthe areaofregional economic developmentof NoviPazar, SjenicaandTutin.



FINALREPORT 

RelatedProgram Components Component1: InterͲMunicipal Cooperation Programming. GrantActivity: DemandStudyfor SpaTurism Improvement Project

Component1: InterͲMunicipal Cooperation Programming. GrantActivity:(1) StudyonRegional Biomass Utilization,(2) Analysisto increase competitiveness oftextile, footware, furnitureandfood production. Component1: RDABANAT Anorganization focusedonsocioͲ InterͲMunicipal Cooperation economic Programming, developmentin Grant Vojvodina Activity:Promotion ofInterͲMunicipal cooperation(IMC) andinitiativesin BanatRegion Foundedin2006 Component2: National Public asanasociation Alliancefor Administration ofbusinesses, Local Reform.In local Economic DevelopmentͲ governmentsand additiontoregular cooperationand civilsociety NALED coordinationof organizations workingtogether activities,grant activitiesincluded: onSerbia’s (1)Revamping economic PublicͲPrivate development.

SLDPFINALREPORT







Strengths

Areasfor Continued Cooperation





Experiencedinlocal economic developmentissues inSandzakregion andproviding servicestolocal SMEs.Substantial project management experienceand cooperationwith variousdonors.

Regional economic development andincreasing competitiveness ofSandzak region.

Whilethegrant activitywas successfully complatedinearly yearsofSLDP,the projecthadno additional cooperationwith thisorganization



Leaderin promotingdialogue betweenthepublic andprivatesectors; excellentcapacity toproducestudies andanalysisin supportofpolicy measures; extensive experiencein

Defining regulatory solutionsto reformpublic administration andpromote business activity, promoting dialoguewith the







Page|100

SUSTAINABLELOCALDEVELOPMENTPROJECT

NGO  

Vojvodina MetalCluster

NisClusterof Advanced Technologies

SLDPFINALREPORT





FINALREPORT 

NGODescription

RelatedProgram Components

Thelargestand amongmost influentalpublicͲ private associationand leaderin monitoring regulatory activityand measuring performanceof public administration. Establishedin 2011,with supportofEU’s RSEDP2project, asaclusterof companiesactive inVojvodina metalsector workingon increasing competitiveness andcreating innovation capacity. Functioning independently since2013.

Partnershipsasa KeyPillartothe Sustainable Development, (2)Effectsof Privatizationon Local Governments’ FiscalBalanceͲ CaseStudies.(3) Enhacementof BusinessFriendly CertificationBFC Component1: InterͲmunicipal programming. Technical assistance includeda combinationof international consultant’swork andgrantsto growinternal capacityof organizationto workon competitiveness ofthesector. Grantactivities: (1)VMC Innovationand Business Development Centre,(2) Innovative ClusterͲWide Product Component3: Youth Developmentand Participatory Mechanism– GrantActivity: ICTCluster Academy

Gathering29 successful companiesdoing businessinthe electricaland electroͲ mechanical industryaswell asintheICT industrywiththe





Strengths

Areasfor Continued Cooperation Government, assessmentof performanceof state administration, highͲlevel studiesand assessments, etc.

creatingvarious initiativesto increase competitiveness andreduce administrative burdento businesses.

InͲdepthknowledge ofthemetalsector inVojvodina, experiencein workingon innovative initiativestoboost competitiveness, experiencein obtainingdonors support

Workin increasing competitiveness ofthemetal sector.

Veryactiveand successfulcluster, excellentcapacity tocreateinitiatives andpromote internationalization, increase competence, encourage innovationandR&D

Localeconomic growthinthe areaof advanced technologies, stimulating dialogue betweenscience andbusinesses, harmonization







Page|101

SUSTAINABLELOCALDEVELOPMENTPROJECT

NGO  

Regional Develoment Agency Zlatibor

objectiveto increase opportunitiesfor theregioninthe areaofadvanced technologies Establishedin 2002asa RegionalCenter forSMESupport, thoughtEU technical assistance,and transformedinto RDAin2008.The missionisto support sustanablesocioͲ economicgrowth ofZlatiborregion

Standing Conferenceof Townsand Municipalities (SCTM)

Establishedin 1953,SCTMis focusedon discussing commonissues andformulating andrepresenting jointinterestsof municipalities, advocatingfor theinterestsof municipalities andrepresenting municipalitiesin theprocessof definingstrategic directionsand regulations, exchangingbest practicesamong municipalities 

Centerfor Advanced

Anindependent thinkͲtank

SLDPFINALREPORT



NGODescription



FINALREPORT 

RelatedProgram Components

Strengths

Areasfor Continued Cooperation ofeducation programswith needsof businesses

Component1: InterͲmunicipal programming. GrantActivity;(1) UziceIMCValue ChainPhaseI (analysisof prospects).(2) UziceIMC RegionalValue ChainͲIIphase

AmongRDAswith highestcapacityto designand implementprojects intheareaof economic development,inͲ depthknowledgeof theregion, extensive experiencein implementing successful development projects Stronginstitutional capacityto representinterests oflocal communities, providecapacity buildingservicesto municipalitiesand supportoverall developmentof localadministration

Localeconomic developmentof Zlatiborregion

Amongthemost important partnersofthe project. Cooperation mainlyconnected toComponent2– Public Administration Reformbutalso spreadtoother projectactivities. GrantActivitity: (1)LEDERͲLocal Econmic Development Educational Response,(2) eLearningCourse onLocalEconomic DevelopmentͲ SectoralApproach toIndustrial RecoveryandJob Creations Component1: AprominentthinkͲ InterͲmunicipal tankfor 







Allareasoflocal economic development

Advanced macroeconomic 

Page|102

SUSTAINABLELOCALDEVELOPMENTPROJECT

NGO   Economic StudiesͲ CEVES

3DImpulse Center

NGODescription



FINALREPORT 

RelatedProgram Components

Strengths

foundedin2004 andfocusedon advanced macroeconomic andpolicy analysisinSerbia andresearchof areasrelevantfor sustainableand inclusive economicgrowth

programming. GrantActivity: Serbia'sReal Sector Performance: Exhibited Competitiveness bySize,Industry andRegion

macroeconomic, socialinclusionand employment research

Ascientific researchunitof theFacultyof Mechanicaland CivilEngineering inKraljevo,which dealswiththe applicationof digital technologiesto developnew products.The laboratorywas establishedbyan EUprojectin 2011Ͳ2013

Component1: InterͲmunicipal programming. GrantActivity: Procurementof equipmentforthe Laband developmentof thewebsite 

Uniquetechnology andcapacityto stimulate innovationand competitivenessby applyingdigital technologiesfor newproduct development.

Areasfor Continued Cooperation analysisand research, identificationof economic development and employment opportunities, formulationof nationaland sectoral development strategies Promotionof innovationand useof innovative technologiesfor product development





SLDPFINALREPORT













Page|103