UPP Municipal Finance Self-Assessment Workshop in Sarajevo, Bosnia and Herzegovina

Categories: Events, Workshops | Author: Maja | Posted: 9/27/2017 | Views: 3112

MFSA workshop Sarajevo


On September 12th, 2017, Urban Partnership Program (UPP) gathered representatives from Bosnia and Herzegovina (BiH) cities and municipalities (municipalities of Novo Sarajevo, Odžak, Orašje, Žepče, and cities of Tuzla and Zenica) in Sarajevo, Bosnia and Herzegovina, to discuss municipal finances and share experiences, challenges and best practices with their peers from other cities and municipalities.


Focus of the workshop was to present the Municipal Finance Self-Assessment (MFSA) tool to new participating municipalities. Two cities that joined MFSA family in July 2017- Tuzla and Zenica (two of the largest cities from BiH) expressed their interest to critically analyze their own financial performance with support of the UPP and by using MFSA tool. During the workshop, it was identified that one of the biggest obstacles and issues for the participating municipalities is data collection and reliability of data sources needed to carry out MFSA. Also, lack of disaggregated socio-economic data for municipal finance assessments and reviews represents significant concern for the municipalities. There are several available sources that publish consolidated data for local governments, such as Central bank of BiH, and Ministry of Finance FBiH. It was mutually agreed by all participants to use most reliable socio-economic disaggregated data published by the Federal Institute for Development Programming in order to have unified MFSA data for all local governments. With sufficient data, cities and municipalities will be able to determine the level of efficiency and effectiveness of their spending of public funds, determine priority of public investments, and be prepared for dialogue with higher level of governments (i.e. Cantons or Federation), citizens, donors, investors in public private partnership schemes (PPPs), creditors.

Second part of the Workshop was dedicated to public expenditure and financial accountability of local governments (PEFA) tool for assessing the status of public financial management (PFM) and thorough, consistent and evidence-based analysis of PFM performance. Participants expressed their interest to prepare Action Plans on how to improve their financial condition and appreciate UPP technical and capacity support to perform ratio analysis and to draft the Plans.

The cities and municipalities were very satisfied with the outcomes of this workshop and valued the opportunity to share and discuss important issues of joint interest as well as receive strategic and technical support from UPP team.


Bookmark and Share

Return to previous page




"The MFSA tool is very useful and can help LGs assess their financial performance and look for additional financing. On the other hand, it is a huge responsibility to translate the budget into strategies that will drive LG's development",
Reisa Duraj, Head of Finance and Treasure Relations Sector of the Shkoder Municipality, Albania

"This capacity building program will enhance knowledge and skills of local governments, particularly of medium and large cities."

 All testemonials >>>

Innovative Solutions for Sustainable Cities

Worldwide, local governments face an increasing demand from the growing urban population to provide basic infrastructure and services, promote more inclusive growth, adapt to climate change, and mitigate risks from disasters. Although development pathways differ because of regional and local variations, one consistent pattern has emerged: economic prosperity most often occurs in cities.

Cities can reduce poverty and expand individual and national prosperity. The bulk of economic activities take place in cities; urban centers attract business, trade and other service industries, and offer dense labor markets with the ability to move products over smaller distances, shortening the supply chain. However, cities in South-East Europe (SEE) do not yet harvest their full potential to contribute to economic prosperity and deliver better quality of life for their citizens. They face a number of challenges such as climate change, natural disasters, increasing global competition and financial instability. At the same time, cities have room for improvement: they can use their own resources more efficiently and also possess a huge potential for energy efficiency.

In order to address these challenges the World Bank and Government of Austria have partnered to launch the Urban Partnership Program (UPP) aimed to strengthen the capacity of local governments in South-East Europe, to promote city to city exchange and peer learning within and beyond Europe and to equip local elected officials, city administrators and technical staff with practical tools for decision-making, to effectively manage urban development for inclusive and sustainable growth. While global in scope, this Program is targeted at South-East Europe, including Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro and Serbia. 

The Program is structured into three product lines to reflect the demand: E-learning & Knowledge products: Global curriculum through World Bank Open Learning Campus and Regional/local Partners: NALAS (E-Academy), LGAs; Connectivity through City to City Dialogues on Municipal Finance, Urban Planning & Land Management; and Sustainability through In depth city engagement, including self-assessment tools (Municipal Finance Self-Assessment and Urban Audit) and participatory methodologies (Integrity Building and Social Sustainability & Citizen Engagement). 

Where We Work in South-East Europe (Phase II)