European Union supports the economic growth of seven local communities in the Republic of Moldova with the financial assistance of 2,6 million EUR

The citizens from seven localities will benefit of economic, social and cultural development, community well-being and increased quality of life, with the EU support

The European Union to the Republic of Moldova, joined by representatives from the Government and UNDP, hosted today, 22 December, the grant-awarding ceremony for seven mayoralties from the Republic of Moldova within Mayors for Economic Growth (M4EG) Facility, funded by the EU. The grants represent considerable support for the economic growth of the municipalities and job creation at local level by implementing innovative approaches and tailor-made solutions.

The grants are awarded to seven localities as a result of a rigorous application and competitive selection process, organized among Eastern Partnership countries. The total support of the Mayors for Economic Growth Facility to seven local public authorities (LPAs) in the Republic of Moldova is 2,915,533.00 EUR, whereas 2,595,829.00 EUR is provided by the European Union and 319,719.00 EUR represents the contribution of local public authorities.

“Creating jobs at local level and generating economic opportunities across the regions of the Republic of Moldova is key to increasing the living standards of citizens. The European Union provided this 2,6 million EUR support for the benefit of seven regions from the Republic of Moldova. Through the M4EG Facility, the EU contributes to finding progressive and tailored solutions to respond to development challenges. These will ensure innovative approaches for inclusive and green economic recovery, as projects that will support the construction of an agricultural regional market in Soldanesti and an energy-efficient agri-hub in Causeni. Implementation of eco-friendly solutions for tourism promotion in Ungheni region and creation of a business support center in Carpineni village will also receive assistance, along with other similar initiatives,” mentioned Jānis Mažeiks, Ambassador of the European Union to the Republic of Moldova.

Four LPAs: Causeni, Carpineni, Soldanesti and Ungheni signed a contract for delivering tangible results for local citizens, as a result of the call for proposals “Pilot projects”  I of the program, launched in February 2021 which consisted of local authorities submitting a project proposal for funding. At the same time, three municipalities – Cahul, Calarasi and Ceadir Lunga received grant certificates, as a result of Portfolio and Innovation call for proposals launched in June 2021. These three municipalities will go through the process of municipal transformation, assisted along the way with financial support from EU.

The award of grant certificates allows the mayoralties to commence the work on identifying specific local needs and tailored solutions, aimed at economic growth, job creation through innovative approach and expertise, as well as achieving locality transformation and modernization. These new approaches will require embracing novelty and discovery, building partnerships based on trust, honesty and openness, learning and sharing best practices, regular reporting on the progress. The mayoralties will implement their project proposals and will benefit of implementation assistance during 2021 – 2024.

“Local development, along with economic growth and the creation of new jobs, the fight against corruption and the reform of the judiciary, are key priorities of the Government I lead. I am convinced that our country has enormous potential for economic and social development that we will try to make the most of,” highlighted Natalia Gavrilița, Prime Minister of the Republic of Moldova.

The M4EG Facility is designed for the mayoralties, which are committed to delivering on the undertaken obligations, complying with the requirements, and showing progress, all these – for the benefit of the inhabitants of these regions. The purpose of the Facility is, through close collaboration with the willing local administrations, to grow and develop local economic growth champions and share their experience.

“We hope that by the end of M4EG facility in 2024, our members will have established partnerships with other cities, will connect to relevant networks, and will actively engage in portfolio development for stimulating entrepreneurial ecosystem development, innovation development and the creation of vibrant communities, making use of the incentives, funding, and education opportunities to be offered by the Facility,” said Dima Al-Khatib, UNDP Resident Representative to the Republic of Moldova.

The Mayors for Economic Growth initiative proposes an approach to managing local economic development that over the past three decades has proven to be of great value around the world, particularly in the European Union.

Background information

The Mayors for Economic Growth Facility (2021 – 2024), phase II, is a follow up of the Mayors for Economic Growth (M4EG) initiative, launched and funded by the European Union in 2017 to support Mayors and municipalities of the Eastern Partnership (EaP) countries, including the Republic of Moldova. The main areas of assistance include support for Mayors and municipalities to become active facilitators for economic growth, as well as assistance to develop innovative and sustainable growth strategies, job creation and a new generation of local economic development plans.

In addition, the M4EG Facility aims to provide funding opportunities for local authorities, to create their tailor-made solutions and implement them in their localities, for the benefit of the citizens and local communities. Local authorities will also benefit from new capabilities and access to funding addressing issues related to green recovery after the pandemic crisis. 

Besides the investments, municipalities will benefit of complementary services such as e-learning opportunities online, networking with other donors, partners and potential investors, targeted capacity-building in the elaboration of local economic development plans, based on European best practices, participation in regional knowledge and information sharing activities, as well as eligibility for other EU funding opportunities within “Mayors for Economic Growth” Initiative that may arise in the future.

Under M4EG, municipalities and their private sector partners are encouraged to focus on key ‘building blocks’ of issues, which are the underlying local preconditions for private sector growth, including local cooperation and networking; business-friendly, transparent and corruption-free administration; access to finance; land and infrastructure; external positioning and marketing; regulatory and institutional framework; skills and human capital inclusiveness – all aimed at helping to improve the LPAs’ activities and hence producing tangible results and beneficial impact.

The M4EG Facility is being implemented by UNDP starting from 2021, in close cooperation with the EU, the local authorities, and a range of other partners.

The recording of the live event is available on the YouTube channel of the Delegation of the European Union to the Republic of Moldova.