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UPP Technical Workshop on Municipal Finance

Categories: Events, Workshops, News | Author: Maja | Posted: 10/11/2018 | Views: 7535
Sarajevo, 25-26. 9. 2018

On September 25-26, 2018 in Sarajevo, Bosnia and Herzegovina, the Urban Partnership Program gathered around 50 participants from cities and municipalities from Bosnia and Herzegovina, Montenegro and Serbia, as well as representatives from the Ministry of Finance and Ministry of Sustainable Development and Tourism from Montenegro, and Local Government Associations from these countries to exchange best practices and discuss solutions regarding the most important issues concerning local finances and development, in a trusting and familiar context.

The UPP has been strengthening financial management and supporting capacity building with a network of local experts in the region through the Municipal Finance Self-Assessment and related tools. In the latest UPP survey, conducted in June 2018, 67% of respondents confirmed that the MFSA helped improve the financial management of municipalities and 73% that the UPP helped access funding to finance local, national or regional urban projects. The success of the program, which has involved more than 80 municipalities and 500 practitioners and decision makers, is mainly due to regular interactive technical workshops and learning events where participants have the opportunity to discuss municipal finances and share experiences with their peers from neighboring countries and beyond.

The main focus of the workshop was the presentation of the new MFSA V2.0 application to participants after the testing phase and before its official launch. All finance experts pointed out that the tool supports local government’s decision-making process considerably, through readily visible financial management trends, possible interventions, and benchmarking. This tool can also be used for capital investment planning, debt management and presenting results to potential donors, but it also provides arguments for discussions with the ministries of finance on issues of fiscal decentralization. The MFSA V2.0 application is currently being tested with users, revised and customized, and it will soon be fully released and disseminated.

During the first day of the workshop, participants had a chance to exchange experiences on common challenges related to a number of topics, including how to design capital investment plans; citizen engagement in decision making (with special focus on participatory budgeting) which focused on showing the advantages and methods of citizen involvement for improved development results and the PEFA (Public Expenditure and Financial Accountability) methodology on which the MFSA was partly based. Finance experts led a group exercise were participants were asked to create an implementation plan for 6 selected capital projects for designated municipalities. All groups successfully completed the exercise demonstrating a different level of readiness to diversify external sources of funding for capital projects. For more information please see the full summary report.

The second day of the workshop started with sharing experiences from outside of the Western Balkans region and showcasing the model of Iller Bank in Turkey, a development bank, and its Sustainable Cities Project. Ilbank has been very successful in supporting municipalities with funding and technical assistance and the team aims to encourage municipalities in Turkey to use the MFSA for capital investment plans and to improve analysis, decision making and overall financial management. During the course of the day, participants had the opportunity to discuss systems of debt management related to fiscal decentralization (% of VAT received by municipalities), legalization processes for objects and properties, and how to establish successful models of Public Private Partnerships. Great example was given by the Mayor of City of Koprivnica, from Croatia, where the main factor of success was the excellent quality of the consultants and the precisely detailed maintenance clauses in the 25-year lease contract. The cities and municipalities appreciated the opportunity to share and discuss important issues of joint interest, compare laws and regulations, provide suggestions and support to one another, and to pose questions to the Ministries and LGA representatives in a safe environment.




PHOTO GALLERY


Documents:


DAY 1
Banja Luka PKI.pdf
CIP Funding Lj. Brdarevic.pdf
Citizen Engagement - S. Kdolsky.pdf
GRAD PANCEVO-UCESCE GRADJANA U PROCESU BUDZETIRANJA.pdf
GRAĐANSKI VODIC KROZ BUDZET 2017 GODINE.pdf
GRAĐANSKI VODIC KROZ BUDZET 2018 GODINE.pdf
MFSA-PEFA.pdf
SUBOTICA_PKI D. Rodic.pdf
UPP Survey overview.pdf

DAY 2
BEOGRAD_Upravljanje dugom R.Peric.pdf
Debt management BiH _ RS and FBIH.pdf
Ilbank PMU Presentation 26.09.2018.pdf
Ilbank Presentation 26.09.2018.pdf
JPP Gimnazija Grad Koprivnica.pdf
Legalizacija bespravnih objekata - M.Čanović.pdf
Legalizacija u Baru - D.Raicevic.pdf
Osnove javno-privatnog partnerstva - A.Bajo.pdf
PPPs in Serbia Lj. Brdarevic.pdf


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"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",
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PHILOSOPHY

ABOUT THE PROGRAM

The role of local governments has been evolving with increasing responsibilities and capacity gaps remain and need to be addressed. Local governments in South-East Europe (SEE) are particularly challenged by the status of decentralization, mismatch of revenue and expenditure management, absence of infrastructure investments, weak local institutions, weak mechanisms of social accountability, increased need to combat corruption, frequent shifts in political structures, and low speed of institutional reforms.

The World Bank –Austria Urban Partnership Program (UPP) was designed to strengthen capacities of local governments in South-East Europe (SEE), and to promote city to city exchange and peer learning within and beyond Europe. The Program aims 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, the Program is targeted at the Western Balkan countries, including Albania, Bosnia and Herzegovina, Croatia, Kosovo, North Macedonia, Montenegro and Serbia.

UPP Phase I (2011-2014): demand-led support of municipalities (municipal finance, urban planning and land management, urban governance/anti-corruption, and social accountability); analytical reports published to support decision making at the local to the national level (Municipal Finance Review in 2013, Municipal Finance: Handbook for Local Governments in 2014),

UPP Phase II (2015- 2018): scaling-up the use of self-assessment tools (reaching 80 cities/municipalities); creation of a knowledge base for benchmarking to achieve EU performance standards, particularly on fiscal decentralization and the topics mentioned above,

UPP Phase III (2018-2020): development of web-based applications (MFSA 2.0); focus on assessing further urban development needs, support of the implementation of action plans at the local to regional level; stronger collaboration with other World Bank projects; focus on specific cities while expanding the network; promotion of participatory processes such as Urban Lab and Placemaking and mainstreaming citizen engagement in decision making; strengthened the analytical component (Western Balkans and Croatia Urbanization and Territorial Review and the handbook for Local Governments: Better Cities, Better World: A Handbook on Local Government Self-Assessments, both to be published in 2019).