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Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA ______________________________________________________________________________ Donor Mapping Per Programs Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Assessment of Donor Coordination programmes in operation in Ukraine Country strategies and concrete projects of most donors increasingly complement "technological" support to Ukraine's government with activities related to long-term knowledge transfer for policy implementation. This corresponds with the general trend in improving aid effectiveness through support to country systems and ownership, and building more effective partnerships for development. In the decentralization area, such plans of key international players are listed below. The following Annex includes a list of donors and applicable projects relevant to the broad area of Regional and Local Development, Decentralisation and the promotion of Local Self Government. The listed donors include: • World Bank • Council of Europe • European Commission • USAID – Assistance of the Government of the United States of America • United Nations Programmes • Swiss Development Cooperation and SECO and SOFI • Swedish International Development Cooperation Agency (SIDA) • Government of Norway • Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ) • Danish Official Development Assistance and DANIDA • United Kingdom of Britain and Northern Ireland and DFID • Canadian International Development Agency (CIDA) • European Bank for Reconstruction and Development (EBRD) • European Investment Bank (EIB) • Japan Overseas Development Assistance (ODA) Other Donors and Relevant organizations (need to be added or completed) • International Financial Corporation (IFC) • Turkish Development Assistance • Polish Assistance • Other United Nations Structures • East West Institute • KFW • IBRD The World Bank (WB) operates an extensive programme in Ukraine in the wider area of regional development. Although, many projects have been implemented and many cross sectoral interventions (in supporting or constuent sectors). The World Bank has been active in Ukraine and assisted in its transition to a market economy since the country joined the institution in 1992. It helped monetize public budget transactions, eliminate barter payments, and improve overall financial and payment discipline. It also helped the country phase out collective farms, eliminate state ownership of land, and legally protect property rights. The Bank played an important role in advancing banking and financial sector reform and improving the business environment. Donor Mapping Per Programs 2 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Project / Programme Title Value (US$) Start Date End Date Peoples Voice 11/2004 10/2008 Rural Land Titling and Cadastre 195.13M 06/24/2003 06/30/2012 Social Assistance System Modernisation 99.40M 11/17/2005 05/30/2010 Project Devstat Project 32.00M 03/25/2004 12/31/2009 Access to Financial Services Project 150.00M 06/22/2006 06/30/2010 Export Development Project 154.50M 07/27/2006 12/31/2011 Urban Infrastructure Project 140.00M 08/28/2007 12/31/2012 Municipal Credit Market Development 180M ? ? 1. Peoples Voice Project: Project from November 2004 to October 2008, with the overall objective being the implementation of a framework and procedures directed towards increasing the public role in the construction of efficient, responsible and open government at the local level in Ukraine, primarily in providing support to non-state organizations in the realization of local initiatives and in monitoring services in Alchevsk, Makiivka, Komsomolsk, Chernigiv, Lutsk, and Kolomyya. Project activities consisted of activities in three key areas: • Support for local non-state organizations in monitoring services provided at the municipal level in establishing measures to involve the public (public hearings, research, etc.); • Provision of comprehensive training for representatives of local power bodies with the purpose of implementing innovative managerial methods based on taking public opinion into consideration, through express-polls, public hearings and public advisory committees. • Monitoring and researching local self-government problems. Although the project is completed, the project web site still is maintained with extensive information on municipal services and other important information. The web site can be found at: http://www.pvp.org.ua 2. Rural Land Titling & Cadastre: The project seeks to establish a national cadastre and title registry system, allocate land parcels to individuals in rural areas on an equitable basis, establish their property rights by issuing state deeds for land, and encourage the restructuring of farms into more efficient units, with due consideration for environmental and social safeguards. 3. Social Assistance System Modernisation: The project objective is to modernize the social assistance system in Ukraine to enable better targeting of cash benefits. 4. Devstat: The objective is to build a sustainable state statistical system which efficiently provides timely and accurate data for policy evaluation and decision making. The project is demonstrating success in increased efficiency of the data collection system though reductions in the number of Rayon statistical offices and reductions in the number of statistical forms of around 15%. Non-government experts and users are more involved in the governance of the statistical system. The use of the website of the State Statistical Committee of Ukraine has increased four-fold between 2005 and 2007, to over 110,000. All regional offices now publish their statistical data using the web. Donor Mapping Per Programs 3 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA 5. Access to Financial Services: The objective is to increase access to financial services in rural areas, specifically for rural small and medium-sized enterprises. The project implementation is still not fully underway as only a handful of sub-loan applications were approved under component A (Access to Finance) which explains the current low disbursement rate of 3.84%. Progress with Component B (TA component) so far has been limited to preparation of draft TOR by beneficiaries. If credit line utilization does not pick up in FY09, the Bank will discuss with the Borrower various options for restructuring the Project. 6. Export Development Project: The objective is to provide medium and long-term working capital and investment finance to private exporters and deepen and broaden financial intermediation. The Ukrainian Export-Import Bank (UEB) has signed subsidiary loan agreements (SLAs) with five banks that meet the eligibility criteria. Total disbursement as of June 27, 2008 stands at USD 27 million. Thirteen sub-loans to eligible beneficiary enterprises have been approved, totaling US$50 million (one- third of the total Project amount). 7. Urban Infrastructure Project: The objective is to assist participating utilities in moving towards higher quality and reliability of services and reducing the costs of service through a series of institutional improvements and selective investments in rehabilitation and replacement of deteriorated water supply, wastewater and solid waste systems. The project will fund the replacement of pumps and related infrastructure in municipal water utilities in selected cities with more efficient and energy saving equipment to reduce costs and improve energy efficiency. The project will also fund rehabilitation of water supply and wastewater systems, and help municipal utilities improve their operational efficiency. Specific investments have been indentified in Chernihiv, Ivano-Frankivsk and Odessa, while investments in other cities throughout the country are being selected under a competitive process. • Institutional Strengthening: This component will help utilities to adopt commercially oriented business-type practices and work towards achieving financial viability through the preparation of annual Business Plans. • Rehabilitation Investments: This component will fund rehabilitation investments in the water, wastewater and solid waste sectors in the cities of Chernihiv, Ivano- Frankivsk and Odessa to help improve the quality and reliability of municipal services. • Energy Efficiency: This component will replace old electromechanical equipment in municipal utilities by energy-efficient equipment thereby reducing operating costs and environmental pollution. The component will provide financing to selected municipal utilities based on a competitive selection process. Municipal utilities that are able to provide economic and technical analysis confirming potential energy savings of a minimum of 15% through the proposed investments and confirmed by the Ministry of Finance of Ukraine are allowed to access these funds. 8. Municipal Credit Market Development Programme: The Programme's development objective is to support the initiation and development of a market for municipal credit in Ukraine. If successful, such a market would be comprised of voluntary private lenders who understand and are prepared to manage the risks of this new line of business and an ever-growing number of creditworthy municipalities who can better serve their citizens through increased investment in services and infrastructure. There are at least four themes that describe how the Program will achieve its objective. First, the policy Donor Mapping Per Programs 4 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA and regulatory framework for intergovernmental fiscal relations, in general, and sub- national borrowing in particular, will be strengthened and sustained. Second, municipalities and their utilities will be given the opportunity and the incentive to better manage their financial affairs so as to be viewed as creditworthy by potential lenders. Third, those same entities will be given assistance to develop, prioritize and select better investment projects so as to yield maximum returns and address the needs of their communities. Fourth, private financial institutions including commercial banks will be assisted and invited to consider these borrowers and these projects for investment where the risks of such lending can be minimized and managed effectively. Sector: Capital Market Development (30%); Municipal services and infrastructure (30%);; sub- national government administration (30%); central government policy development (10%) Council of Europe (CoE) has been stakeholder in the wider process of regional and local development, especially in the areas of local self government and decentralization from 09 November 1995 when Ukraine joined the Council of Europe. The main programming document in Ukraine is the CoE Action Plan for Ukraine 2008-2011 which covers a number of core issues in the wider area of regional and sustainable decentralization. These interventions include: Project / Programme Title Value (US$) Start Date End Date Local and regional democracy; Developing local government legislation and balanced distribution of powers; Strengthening the capacity of local authorities (proposed for 36 months,); Sustainable spatial development and regional planning" which will be jointly financed by Ukrainian and international resources. European Commission (EC). The EC is one of the largest donors in the regional/local development in Ukraine. EC initiatives focus on the progressive implementation of sector orientated programmes and a gradual transfer of its programme to incorporate Sector Policy Support Programmes (SPSP) and operating modalities such as budget support and pooled funding, to supplement traditional project modalities, according to the ENPI priorities. The programme of the EC is delivered based on a country strategy paper which is operational for a seven year period. The current period runs from 2007 to 2013. The National Indicative Programme (NIP) is based on the CSP, but operates on a 3 or 4 year period, with the current period operating from 2007 to 2010. The next NIP period will operated from 2011 to 2013. Annual Action Programmes are elaborated on an annual basis in discussions with the Ukrainian government and define a specific programme of actions to confront specific challenges which have been outlined in the National Indicative Programme. The EC has just recently undertaken a mid-term review (MTR) of its programmes. The MTR programming mission concluded that the following general priorities and sub-priorities should be included under the new Indicative Programme for 2011-2013: • Priority area 1: Support for Democratic Development, the Rule of Law and Good Governance Donor Mapping Per Programs 5 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Sub-priority 1: Justice, freedom and security notably reform in the justice sector Sub-priority.2: Migration and international trade through strengthened border management • Priority area 2: Support for Regulatory Reform and Administrative Capacity Building Sub-priority 1: Public administration reform and public finance management Sub-priority 2: Support to the establishment of a deep and comprehensive free trade area Sub-priority 3: Support to the implementation of the New Practical Instrument through capacity and institutional development • Priority area 3: Support for Economic and Social Development Sub-priority 1: Sectoral policy support (energy/energy efficiency, environment/climate change, agriculture/trade aspects, transport) Sub-priority 2: Human capital development Sub-priority 3: Regional Development While many of the priority areas will have both direct and in-direct impact on Regional and Local development (primarily as this relates to Priority Area 3), sub-priority 3 is directly related to the wider area of regional and local development. The EC also operates a number of programmes, including the National Programme, the Regional Programme, four Cross Border Cooperation programmes, and a number of specific thematic programmes which are applicable to Ukraine. Current/Past and Projected EU Financed Projects include: Project / Programme Title Start Value End Date (Euro) Date 1 Assistance to Regional Development in Ukraine 07/04 07/06 2 Support to Sustainable Local Development €13 M 2007 2011 3 Support to Sustainable Regional Development €6 M TA + 07/2008 12/2011 €9 M Works 4 Ukraine: SME Support Services in Priority 2005 2007 Regions 5 Support to the Development of Business € 2.07 M 2008 2009 Capacity of Ukrainian SMEs – International Dimension 6 PCA Support Project (Ukraine) € 1.88 M 12/2007 12/2009 7 Ukrainian-European Policy and Legal Advise 07/2009 Centre (Phase IV and V) (Phase IV) 8 Regional Capacity Building Initiative II 2007 12/2009 9 Poland-Belarus-Ukraine CBC Programme: €186.2 M 01/2007 12/2013 10 Hungary-Romania-Slovakia-Ukraine CBC €68.6 M 01/2007 12/2013 Programme 11 Romania-Moldova-Ukraine CBC Programme €126.7 M 01/2007 12/2013 12 Black Sea Basin CBC Programme €17.3 M Jan 2007 Dec 2013 13 Development of a strategic programme for the €1 M End 2008 2010 Donor Mapping Per Programs 6 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA socio-economic development of the Chernobyl (18 region in the immediate vicinity of the Chernobyl Months) exclusion zone 14 Municipal Services Support Project ? 2004 End 2006 15 EU Contribution to EBRD Ukraine Micro Lending €1.5 M 2008 2009 Programme Regional Expansion 16 EU Contribution to the EBRD SME Finance €1.0 M Support to Regional Banks and Banks with Large Regional Branch Network 17 Protecting Historical Cultural Landscapes to strengthen regional identities and local economies 18 Transfrontier Tourism Development and € 216,000 Promotion Network in Ivano-Frankivsk, Ukraine and Maramuresh, Romania 19 Reggio Terzo Mondo for the Promotion of Civil € 98,991 ? ? Society Dialogue in Transcarpathia 20 Implementation of Ukraine's Commitments 2008 12/2011 under WTO and ENP Frameworks in the Rural Sector 21 Environmental Collaboration for the Black Sea €2.2 M 04/2007 09/2009 (Georgia, Moldova, Russia, Ukraine) 1. Assistance to Regional Development in Ukraine Project implemented between July 2004 – December 2006 was designed to support the implementation of regional development in Ukraine, and worked directly with the Ministry of Economy in the implementation of capacity development measures and the provision of concrete advice and support. The projects objectives were specifically to: • increase the ability of the national, regional and local power bodies to formulate and realize regional development policies; • increase the economic competitive advantage of the selected pilot regions; • improve cooperation in the regional development sphere between interested parties, including the national and local power bodies, self-government bodies, the private sector and civil society; • modify the general regional development structure in Ukraine so it adheres to advanced European practices. 2. Support to Sustainable Local Development The overall objective of this project is to improve quality, access and sustainability ofessential services in selected municipalities and to pave the way for sustainable local development in Ukraine. The project is implemented from November 2006 to November 2010. The following results are expected to be achieved by in four selected medium-sized cities and territories: Izyum (Kharkiv oblast), Romny (Sumy oblast), Sverdlovsk (Lugansk oblast) and Pryluky (Chernihiv oblast): • A significant part of essential municipal services infrastructure (such as water supply and wastewater networks) will be renovated. Donor Mapping Per Programs 7 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA • Sustainable local development initiatives will be launched in coordination with other projects in areas such as education and training, SME development, local financing, energy, public health and social sector. • Management tools for efficient municipal services delivery and socio-economic development will be operational. • A model for the sustainable local development in Ukraine will be developed. 3. Support to Sustainable Regional Development The Support to Sustainable Regional Development Project, financed by the European Union, started with its implementation in July 2008. The Project intends to in conjunction with its main partners, realise three main components: Component A: focused on the provision of assistance to the Government of Ukraine to strengthen capacities for the effective management of regional development and the creation of an adequate policy, legal and institutional framework and coordination schemes and mechanisms. The project provides analytical and regional development management tools, through such mechanisms as a Sector Wide Approach as well as framework for implementation of National Strategy for Regional Development; Component B: targeted to providing support to Ukrainian authorities to design a key regional development instrument, a Fund for Regional Development and modalities for the mobilisation of internal and external resources, investment planning and coordination; Component C: involves two scopes of implementation of first two components: • Capacity building for the effective management of regional development on both the national and regional level, management of resources for sustainable development and strengthening the absorption capacities of structures for effective implementation of development plans, particularly an Action Plan of National Strategy for Regional Development. • Through operating a learning by doing approach which is targeted at the multi- faceted aspects of RD (selection procedures, design, application and contracting of sustainable regional development project applying the rules and procedures of National Fund) the project provides the necessary tools and builds the capacities for sustainable regional development. The main functional aspects are: development of a baseline with policy, legal and planning framework; and the mo- bilisation of financial resources and capacity building. 4. Ukraine: SME Support Services in Priority Regions 5. Support to the Development of Business Capacity of Ukrainian SMEs International Dimension: The purpose of the project is to develop the competitiveness of small and medium enterprises (SMEs). The project will assist to the improvement of the government policy in the sphere of SME support and provide assistance to SMEs in design and implementation of optimal schemes and mechanisms to establish commercial links with EU companies and other foreign enterprises. 6. PCA Support Project will examine monitoring the implementation of the EU – Ukraine Action Plans and can be important in the context of RD implementation. The overall objective of the project is to assist the Ukrainian authorities to achieve the implementation of the Partnership and Co-operation Agreement (PCA) and the European Neighborhood Action Plan (ENAP). The specific objective is to monitor Donor Mapping Per Programs 8 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA progress made in approximation of Ukrainian legislation to that of the EU in all the areas foreseen by the PCA and the ENAP. 7. UEPLAC, the Ukrainian-European Policy and Legal Advise Centre, is currently in its 4th phase of operation, and has the overall objective to strengthen understanding, implementation and ownership by the Ukrainian authorities of the whole process of legal approximation to the EU acquis in all the areas foreseen in the Partnership and Cooperation Agreement (PCA) and in the European Neighbourhood Policy Action Plan (ENP-AP) 8. Regional Capacity Building Initiative II, is the follow-on from the RCBI project that was focused on supporting the New Neighbourhood Programme (NNP) in the Tacis region, and was completed at the end of 2006. The project is directed at supporting the preparation and implementation of Cross Border Cooperation capacity in the context of the ENPI. Funded by the European Union, RCBI supports the partner countries to participate in the European Neighbourhood and Partnership Instrument Cross Border Cooperation Programmes 2007-2013. Implemented by a consortium led by MWH, RCBI will run until December 2009. Originally set up to assist four partner countries in the East, the project now supports the 15 partner countries in the South and the East currently participating in cross border cooperation under the new ENPI CBC programmes for 2007-2013. Web Link: www.rcbi.info. This web link has significant info on ENPI CBC programmes 9. Poland-Belarus-Ukraine CBC Programme: This Programme continues and broadens the cooperation in the border areas of the three countries which so far has been developed within the framework of the Neighbourhood Programme Poland- Belarus-Ukraine CBC 2004–2006. This Programme has the biggest budget – 186.2 MEURO for 2007-2013, from the number of CBC Programmes where Ukraine participates. The Programme concentrates at the following priorities: Priority 1: Increasing competitiveness of border areas Priority 2: Improving the quality of life Priority 3: Networking and people-to-people cooperation 10. Hungary-Romania-Slovakia-Ukraine CBC Programme The programme involves 68.6 MEURO for the period 2007-2013. Its management and secretariat structures are based in Budapest. The Programme's identified the priorities: Priority 1: Promote economic and social development - Increase knowledge transfer and practice-sharing between and promote joint developments of businesses, local governments and the civil society Priority 2: Enhance environment - Enhance the quality of air, waters, soil and forestry resources and reduce risks of damages on natural environment Priority 3: Increase border efficiency - Increase efficiency of border management on the Ukrainian border Donor Mapping Per Programs 9 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA 11. Romania-Moldova-Ukraine CBC Programme Compared to the Neighbourhood Programmes 2004-2006 the bilateral programmes between Romania and Ukraine, and between Romania and Moldova, respectively have been re-grouped in new programme - Romania-Ukraine-Moldova (with budget 126.7 MEURO for 2007-2013). The programme made a focus at the following priorities: Priority 1: Towards a more competitive border economy Priority 2: Environmental Challenges and Emergency Preparedness Priority 3: People to People Co-operation 12. Black Sea Basin Programme The Black Sea Basin Programme is one of the most complex, although it has a limited financial allocation (only 17.3 MEURO for the period 2007-2013). The Black Sea Basin eligible area occupies a territory about of 800 sq. km. and includes a population of 74.2 million people. It involves ten countries, some of which include the whole of their national territory (Armenia, Azerbaijan, Moldova and Georgia), while for some others those regions closest to the Basin (Bulgaria, Greece, Romania, Russia, Turkey and Ukraine). The Programme priorities are: Priority 1: Supporting cross border partnerships for economic and social development based on common resources Priority 2: Sharing resources and competencies for environmental protection and conservation Priority 3: Supporting cultural and educational networks for the establishment of a common cultural environment in the Basin In addition to the afore mentioned ENPI-CBC programmes, Ukraine participates in the Black Sea Synergies programme which is designed to be a complementary initiative to further extend and bind other initiatives currently under implementation, which will effect the basin as a whole and the individual countries which participate in the region, namely: the New EU Member states of Bulgaria and Romania, Turkey, Ukraine, Armenia, Georgia, Azerbaijan and Moldova, in cooperation with Russia. 13. Development of a strategic programme for the socio-economic development of the Chernobyl region in the immediate vicinity of the Chernobyl exclusion zone 14. Municipal Services Support Project 15. EU Contribution to EBRD Ukraine Micro Lending Programme Regional Expansion 2008-2009: Technical Co-operation (TC) Programme to assist establishing and building up micro business lending departments in financial intermediaries and to advise on credit decisions. Implemented through Ukrainian Commercial banks (Forum, Kreditprombank, Kredobank, Nadra, PrivatBank, ProcCreditBank). Donor Mapping Per Programs 10 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA 16. EU Contribution to the EBRD SME Finance Support to Regional Banks and Banks with Large Regional Branch Network: Contribution to institution building of Ukrainian banks by providing training and technical co-operation which will develop the long-term capability to provide SMEs with formal project finance. Implemented through the Commercial banks of Ukraine. 17. Protecting Historical Cultural Landscapes to stregthen regional identities and local economies: The aim of the action is the exploration of successful approaches to valorise European cultural landscapes and to integrate landscape protection and the upgrading of development of deprived rural areas; to give an overview of innovative survey methods and planning tools. 18. Transfrontier tourism development and promotion network in Ivano-Frankivsk, Ukraine, and Maramuresh, Romania in the broad area of Tourism policy and administrative management EU contribution: € 468,000 Implementing organisation: Turistichna Asociacija Ivano-frankivstini Duration: 20 months 19. Reggio Terzo Mondo for the Promotion of Civil Society Dialogue in Transcarpathia 20. Implementation of Ukraine's Commitments under WTO and ENP Frameworks in the Rural Sector: The purpose of the project is to support the application of a Sector Wide Approach (SWAP) within the context of WTO accession and greater EU integration through implementation of the following components: a) institutional development of the Ministry of Agrarian Policy of Ukraine; b) food safety; c) market infrastructure; d) rural development. In the context of Crimea, work will be undertaken in the context of Agricultural Market development and as such will impact wider regional development implementation. 21. Environmental Collaboration for the Black Sea (Georgia, Moldova, Russia, Ukraine). The Project's overall objective is to contribute to the sustainable development of the Black Sea Basin by: • prevention and reduction of pollution to the Black Sea (from river discharges or direct discharges) • sustainable management of natural resources and protection of biodiversity of the Black Sea basin. The Project aims to improve: • regional cooperation for protection of the Black Sea; • national capacities to implement and enforce existing environmental legislation, secondary laws and regulations to implement the Bucharest Convention; • national legislations, secondary laws and regulations to implement the Bucharest Convention at national level, taking into account convergence to EU water related legislation, in particular the Water Framework Directive (WFD) and the forthcoming EU Marine Strategy (see also the page on International and EU legislation); • biological water quality monitoring of pollution; • integrated coastal zone management; • protection of marine biodiversity through the establishment of Marine Reserves; Donor Mapping Per Programs 11 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA • public participation and awareness raising. ENPI Regional Envelope The EC-ENPI Eastern Regional Strategy Paper (RSP) 2007-2013 was formally adopted by the Commission on 7 March 2007. The principal objectives of EC regional assistance to the ENPI Eastern region (which includes Ukraine) are: • To facilitate and advance cooperation in areas of mutual interest and benefit between the partner countries themselves and between the EC and the partner countries. This complements the objectives of respective national strategies for developing increasingly close relationships with ENP partner countries, going beyond past levels of cooperation, towards gradual economic integration and a deepening of political cooperation, and also complements the objectives of the Four Common Spaces with Russia; • To provide assistance towards the common ENP and Common Space objectives where there is a clear advantage in such regional-level assistance. This advantage can take the form of being better able to meet outcome objectives, including fostering greater cooperation within the region, achieving economies of scale and/or avoiding duplication of effort. During the period covered by this ENPI Eastern Regional Indicative Programme (2007-2010), a total EC grant of € 223.5 million will be made available. It should be noted that these indicative allocations apply to the entire 4-year period of this indicative programme as a whole, and it is therefore likely that individual Annual Action Programmes will contain differing allocations in each given year. The main priority areas for the ENPI-Regional envelope (with planned percentage breakdown of the allocations pursuant to each priority area) will be: o Priority area 1: Networks (25-35%) Sub-priority 1: Transport Sub-priority 2: Energy Sub-priority 3: SME Regional Cooperation o Priority area 2: Environment protection and forestry (25-35%) o Priority area 3: Border and Migration Management, the Fight against Transnational Organised Crime, and Customs (20-30%) o Priority area 4: People-to-people Activities, Information and Support (10-15%) o Priority area 5: Landmines, Explosive Remnants of War, Small Arms and Light Weapons (5-10%) While it is clear that the programme is focused on the countries of Europe's Eastern Border (Ukraine, Moldova, Belarus, Azerbaijan, Armenia, and Georgia), a provision is made in the Indicative programme for the participation of other countries, particularly the Central Asian republics in the programme, albeit in a conditional manner, and with the participation of the relevant instrument (Development Cooperation Instrument or DCI). In addition to the above mentioned projects or specific interventions, the EC operates a number of programmes which have been, and will continue to be, directly supportive of the implementation of Regional Development in the coming years. These include: Donor Mapping Per Programs 12 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Twinning is an initiative of the European Commission (EC) that was launched in 1998 in the context of the preparation for enlargement of the European Union (EU). It was conceived as an instrument for targeted administrative co-operation to assist candidate countries in strengthening their administrative and judicial capacity to implement Community legislation as future Member States (MS) of the EU. Twinning has the opportunity to play a vital role in the context of Institution Building in Ukraine. Before Twinning, the Institutions Building Partnership Program for Civil Society and Local Initiatives (IBPP) fulfilled many of the functions currently fulfilled by Twinning. The main focus of IBPP was to support institutional development at the local level through the establishment of cooperative partnerships between non-governmental professional organizations and local and regional structures. This programme finished in 2005-6 and was replaced by the twinning programme. TAIEX is the Technical Assistance and Information Exchange Instrument of the Institution Building unit of Directorate-General Enlargement of the European Commission. In operation since 1996, TAIEX provides centrally managed short-term technical assistance in the field of approximation, application and enforcement of legislation. Its services are complementary to the several alternative assistance programmes the European Commission offers to new Member States, candidates for accession to the European Union, and the countries of the Western Balkans. USAID – Assistance of the Government of the United States The U.S. Mission to Ukraine Strategic Plan does not focuse on regional development as a separate area of assistance. Instead it focuses on providing assistance to promoting good governance at all levels and in all branches of government. The main priorities are: • advancing Ukraine's capability for Governing Justly and Democratically • working with executive branch to strengthen the professional capacity to promote economic and political reform and to increase citizens involvement in public affairs • working with local governments to enhance their effectiveness, financial independence, and responsiveness to citizens' needs Project / Programme Title Value Start Date End Date 1 Communal Services Support Roll- US$1,999,988 September September Out 2005 2007 2 Municipal Budget Reform US$14,467,518 February September 2005 2008 3 Local Economic Development $13,424,274.00 20 August 15 April 2009 (LED) 2004 4 Expanding Training and Advocacy US$2,220,735.89 08 31 July 2009 Services of the Association of September Ukrainian Cities 2005 5 DCA Municipal Credit (Guarantee US$155,700 24 24 September Agreement) (Mission subsidy September 2009 cost) for 2004 US$3,000,000 loans facility 6 Efficient Water Supply in Alchevsk US$ 130,000 20 19 December December/2010 2007 7 Municipal Finance Strengthening US$ 2,100,000 01 October 30 September Donor Mapping Per Programs 13 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Initiative (MFSI) Project for 2008 2011 Ukraine 8 Local Investment and National US$19,000,000 16 March 15 March 2012 Competitiveness (LINC) 2009 9 Advocacy for Local Government TBD TBD TBD Agenda (ALGA) United Nations' Programme of Assistance to Ukraine (September 2001) determined that contributing to management reforms was one of the priorities of the UN system agencies. Specifically, they would focus on the formulation of policies for involving citizens – increasing the possibilities for establishing partnership relations between the government and civil society organizations to contribute to citizen participation in managerial decision making and civil policy formulation) – World Bank, UN Development Programs; and the decentralization and strengthening of management at the local level – contributing to the formulation and realization of public sector policies, transparency, the subordination of state administration bodies, decentralization, and strengthened local management) United Nations Development Programme (UNDP) operates a number of programmes in Ukraine which directly and indirectly impact on regional development. These include: Project / Programme Title Value Start Date End Date 1 Community-based approach (CBA) to Local 13.3M Euro 03/09/2007 30/06/2011 Development 2 Chernobyl Recovery and Development 4.0 M US$ 2004 2007 Programme (CRDP) 3 Municipal Governance and Sustainable 856,400 01/04/2004 31/12/2008 Development Programme US$ 4 UNDP Crimea Integration and Development 2.8M 01/01/1995 31/12/2010 Programme (2006) US$ 5 Conserving globally significant biodiversity ? 01/04/2005 30/09/2005 and mitigation/reducing environmental risk in Ukraine's Carpathian region 6 Millennium Development Goals Project US$ 16/02/2004 28/12/2008 100,000 – UK contribution 7 Integrity in Action: Government Program 8 Sustainable Development Programme of ? 2006 2010 Lugansk Region 9 UNDP/GEF Strengthening governance and ? 01/01/2008 31/12/2011 financial sustainability of the national protected area system in Ukraine 1. The Community-based approach (CBA) to Local Development Project, which will provide a significant impact on regional development aspiration of the Ukrainian Government. This intervention is in the wider context of the 2006-2010 country programme for Ukraine and aims at increasing self-consciousness and creating self- sustainability of communities by promoting dialogue among it members, facilitating Donor Mapping Per Programs 14 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA social activity and shaping a shared vision of the future. The project supports communities in all regions of Ukraine in covering the most urgent developmental needs through self-organization, capacity building, and implementation of small-scale community initiatives (mini-projects) in: Health (local health posts network); Environment (utilization of wastes, pesticide inactivation etc.); Energy (energy saving measures, promotion of the use of renewable energy sources etc.); 2. CRDP's activities is to support the efforts of the Government of Ukraine to mitigate long-term social, economic and ecological consequences of the Chornobyl catastrophe, to create more favorable living conditions and promote sustainable human development in Chornobyl affected regions. • Rendering assistance for the improvement of state policy - supporting legislation changes and innovative strategies towards mitigation of the consequences of the Chornobyl catastrophe, which, in turn, are focused on providing sustainable development in the affected regions, secure living and distribution of comprehensive information to the population. • Self-governance and community development - rendering assistance to community organizations in self-organization and self- governance, increasing their potential for implementing their own priority programmes of social, economic, and ecological recovery and development • Institutional support - enhancement and development of the institutional support system, which foresees the expansion of institutional opportunities, strengthening the potential of organizations and institutions that promote socio-economic development and ecological recovery of the Chornobyl affected regions 3. Municipal Governance and Sustainable Development Project, formerly known as Municipal Sustainable Development Programme or MSDP, carries out activities to strengthen the institutional capacity of local partners from public-private sectors enabling them to make practical local sustainable development plans; take a participatory approach to the realization of such plans; raise public awareness on the agenda of sustainable development and integrate the principles of sustainable development in the local/national policy/legal framework based on experience from the ground. Each partner municipality establishes a Municipal Support Unit (MSU) to implement local level activities. MSU mobilizes men, women, and youth in the neighbourhoods, NGO, academia and business communities to create support structures founded on elements of good governance and sustainable development. These support structures prepare local specific sustainable development plans, prioritise them and generate resources to implement them. The Programme provides training and seed capital to implement plans under a partnership arrangement. The partners such as the municipality, the beneficiaries themselves, or other private and public sectors also contribute resources as a back up to the seed capital. The plans are implemented by the partner on a self-help basis. Donor Mapping Per Programs 15 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Implementation work and quality is monitored through a participatory monitoring system. Geographic Area: Ivano-Frankivsk, Rivne, Zhytomyr, Mykolayiv, Halych, Novohrad- Volynskyy 4. UNDP - Crimea Integrated Development Project - The main goal of the Programme is to assist and strengthen domestic structures and processes able to develop and implement long-term solutions in order to secure peace and stability in Crimea, as well as to promote integrated regional development involving both people and authorities. In order to achieve its goals, the Programme focuses on the following areas: • Democratic governance: strengthen Crimean citizen engagement in political and socio-economic development activities, increase Government capacity to deliver public goods and services, and provide coherent and satisfying alternatives for social change through enhanced State-Citizen relations; • Economic development: promote the development of a market-driven agricultural cooperative sector and small- and medium enterprise development; • Human security: strengthen the Human Security Council as a platform for high- level inter-ethnic consensus building and evidence-based policy-making based on an enhanced human security monitoring system; • Tolerance and social cohesion: increase tolerance and social cohesion through the education system. 5. Conserving globally significant biodiversity and mitigation/reducing environmental risk in Ukraine's Carpathian region 6. The Ukrainian Millennium Development Goals Project (MDGP) aims to support the process of elaborating, implementing and monitoring economic and social policies to contribute to the achievement of the Millennium Development Goals (MDGs) in Ukraine. The main objectives of the project were: • Strengthening capacity building for policy development with the aim to provide substantive support to the Ministry of Economy of Ukraine and develop recommendations for sharing best national and foreign experience with the Government as well as other stakeholders enabling them to elaborate sound, economic and social policies based on the principles of transparency accountability • Improving strategic planning and forecasting system to enhance the quality of long-, medium-, and short-term strategic planning and forecasting documents by taking into consideration expert and public opinion and disseminating good practices in the field of growth-oriented economic policies • Reinforcing MDGs policy analysis and monitoring to support the Government in achieving the MDG targets and indicators into strategic planning and forecasting system at national and regional levels, develop UMDGs monitoring system and prepare Annual MDGs Monitoring Reports, develop localization methodology through piloting MDGs localization process in regions of Ukraine • Raising public awareness of the MDGs in Ukraine, which involves conducting seminars, road shows, press clubs and other advocacy activities related to the UMDGs with active participation of mass media and general public in the open discussion of the UMDGs agenda Donor Mapping Per Programs 16 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA 7. Integrity in Action: Government Program, support activities at both the national and local levels. Specifically, they support: the formulation of efficient legislation that provides for the further delegation of authorities to the regional and local levels and the strengthening of the abilities of state administration bodies; pilot projects in terms of the best practices of local government and the stimulation of partnerships at the local level between managerial bodies, private sector and civil society organizations. 8. Sustainable Development Programme of Lugansk Region: Mission is to render support to the Government in efficient application of the sustainable development principles and practices at the regional level in order to improve socio-economic and ecological situation in one of the country's most vulnerable regions • Support to development of transport infrastructure in Lugansk Region (oblast) including city and inter-city service. Activity 1. Support to development of the Lugansk oblast transport infrastructure network Development Plan including city and inter-city service. Activity 2. Attraction of investors to realisation of the Development Plan through Public- Private Partnership (PPP) mechanism. Activity 3. Implementation of the Demonstration Project of transport infrastructure network development through PPP mechanisms • Removing barriers for coal bed methane utilization in Lugansk oblast through the Joint Implementation Mechanism (JI) of the Kyoto Protocol. Activity 4. Selection of the project sites and development of the technical and technological solutions for the utilization of the coal mine methane in Lugansk oblast. Activity 5. Development of the Project Idea Note (PIN) in accordance with the requirement for JI projects Activity 6. Implementation of the preliminary financial analysis of the planned technical and environment protection activities. Activity 7. Search for a potential investor for JI project and approval of the conditions of joint activities between JI project owner and potential investor. Activity 8. Development of Project Development Document (PDD) for the key project. Activity 9. Arrangement and development of the contractual documents to sign and Agreement on the conditions of the joint project activities between the project owner and investor. The contract shall obligatorily reflect the conditions for the sale of Emission Reduction Units (ERUs) derived by the Project and specify the recipient of these ERUs. Activity 10. Support to implementation of the demonstration JI project on coal bed methane utilisation in Lugansk oblast • Removing barriers for urban landfills recovery and landfill methane utilisation through the Joint Implementation Mechanism (JI) of the Kyoto Protocol. Activity 11. Selection of the project sites and development of the strategy for urban landfills recovery and landfill methane utilisation including technical and technological solutions. Activity 12. Development of the Project Idea Note (PIN) in accordance with the requirement for JI projects. Activity 13. Implementation of the preliminary financial analysis of the planned technical and environment protection activities. Donor Mapping Per Programs 17 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Activity 14. Search for a potential investor for JI project and approval of the conditions of joint activities between JI project owner and potential investor. Activity 15. Development of Project Development Document (PDD) for the key project. Activity 16. Arrangement and development of the contractual documents to sign and Agreement on the conditions of the joint project activities between the project owner and investor. The contract shall obligatorily reflect the conditions for the sale of Emission Reduction Units (ERUs) derived by the Project and specify the recipient of these ERUs. Activity 17. Support to implementation of the demonstration JI project on landfill methane utilisation. Activity 18. Effective project management and advisory support services Swiss Development Cooperation has been working for many years in social mobilisation together with UNDP (in three different projects, Crimea Integration and Development Programme - CIDP, Chernobyl Recovery and Development Programme – CRDP and Municipal Governance Sustainable Development Programme - MGSDP) and with the Christian Children Fund (decentralised social services). The Swiss Cooperation Office (SCO) efforts in the area of regional development focuses on the multi-annaul Despro project (2007-2015) formally entitled "Support to Decentralization in Ukraine". This project primarily focuses on three main objectives: improving communal services through greater integration of community groups and associations; streamlining and improving the integration process of the community based services into the local government system; integrating the lessons- learnt and best practises developed in the pilot areas into the "national agenda" on decentralisation. Project / Programme Title Value Start End Date Date 1 Crimea Integration and Development Programme US$ 2.8 M - - – CIDP (Implemented by UNDP see UNDP section) 2 Chernobyl Recovery and Development - - - Programme – CRDP (Implemented by UNDP see UNDP section) 3 Municipal Governance Sustainable Development - - - Programme – MGSDP (Implemented by UNDP – see UNDP section) 4 Support to Decentralization in Ukraine (DESPRO) CHF 3.085 12/2006 12/2009 – Phase One M 5 Community-based Governance, Infrastructure CHF 2004 2007 and Social Development in Crimea (contribution 600.000 to UNDP Crimean Integration and Development Programme - CIDP) 6 Supporting Small and Medium-Sized Enterprises CHF 2002 On- (SME) Development - Credit guarantees 30 M going 7 Swiss Organisation for Facilitating Investments CHF 4.5M 1997 On- (SOFI) per year - going noncountry specific 8 SECO Start-up Fund CHF 15M 1997 On- Revolving going Fund – non- Donor Mapping Per Programs 18 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA country specific 9 Ukraine Corporate Development Project (UCDP) US$ 1.9M 04/2002 06/2007 10 Swiss-Ukrainian Forest Development Project in CHF 1.775 10/2003 12/2005 Zakarpattya (FORZA) – 1st Phase M 11 Swiss-Ukrainian Forest Development Project in CHF 2.0 M 01/2006 12/2008 Zakarpattya (FORZA) – 2nd Phase 12 Access to Rural Financial Services in the CHF 07/2006 06/2008 Vinnytsya Region of Ukraine 500,000 1. Crimea Integrated Development Project (implemented by UNDP) - The main goal of the Programme is to assist and strengthen domestic structures and processes able to develop and implement long-term solutions in order to secure peace and stability in Crimea, as well as to promote integrated regional development involving both people and authorities. In order to achieve its goals, the Programme focuses on the following areas: • Democratic governance: strengthen Crimean citizen engagement in political and socio-economic development activities, increase Government capacity to deliver public goods and services, and provide coherent and satisfying alternatives for social change through enhanced State-Citizen relations; • Economic development: promote the development of a market-driven agricultural cooperative sector and small- and medium enterprise development; • Human security: strengthen the Human Security Council as a platform for high- level inter-ethnic consensus building and evidence-based policy-making based on an enhanced human security monitoring system; • Tolerance and social cohesion: increase tolerance and social cohesion through the education system. 2. CRDP's activities is to support the efforts of the Government of Ukraine to mitigate long-term social, economic and ecological consequences of the Chornobyl catastrophe, to create more favorable living conditions and promote sustainable human development in Chornobyl affected regions. • Rendering assistance for the improvement of state policy - supporting legislation changes and innovative strategies towards mitigation of the consequences of the Chornobyl catastrophe, which, in turn, are focused on providing sustainable development in the affected regions, secure living and distribution of comprehensive information to the population. • Self-governance and community development - rendering assistance to community organizations in self-organization and self- governance, increasing their potential for implementing their own priority programmes of social, economic, and ecological recovery and development • Institutional support - enhancement and development of theinstitutional support system, which foresees the expansion of institutional opportunities, strengthening the potential of organizations Donor Mapping Per Programs 19 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA and institutions that promote socio-economic development and ecological recovery of the Chornobyl affected regions 3. Municipal Governance and Sustainable Development Project, formerly known as Municipal Sustainable Development Programme or MSDP, carries out activities to strengthen the institutional capacity of local partners from public-private sectors enabling them to make practical local sustainable development plans; take a participatory approach to the realization of such plans; raise public awareness on the agenda of sustainable development and integrate the principles of sustainable development in the local/national policy/legal framework based on experience from the ground. Each partner municipality establishes a Municipal Support Unit (MSU) to implement local level activities. MSU mobilizes men, women, and youth in the neighbourhoods, NGO, academia and business communities to create support structures founded on elements of good governance and sustainable development. These support structures prepare local specific sustainable development plans, prioritise them and generate resources to implement them. The Programme provides training and seed capital to implement plans under a partnership arrangement. The partners such as the municipality, the beneficiaries themselves, or other private and public sectors also contribute resources as a back up to the seed capital. The plans are implemented by the partner on a self-help basis. Implementation work and quality is monitored through a participatory monitoring system. Geographic Area: Ivano-Frankivsk, Rivne, Zhytomyr, Mykolayiv, Halych, Novohrad- Volynskyy 4. Support to Decentralization in Ukraine (DESPRO): The project was initiated following a request from the President of Ukraine to the Foreign Minister of Switzerland. The project is based upon the experience gained from three projects supported by SDC that are centred on social mobilization and provision of communal services. The aim of the project is to improve the quality of communal and social services provided by local self-governments directly, or in cooperation with community and private sector initiatives. The efficient and effective delivery of water supplies and basic social services at an affordable cost through decentralized structures is the overall goal of the project. This requires a replicable model of decentralized services provision at village/municipal/rayon levels to be piloted in selected areas. In turn, this has to be accepted at the oblast/national levels. Three interrelated factors are addressed by the project: (i) improving communal/social services through the systematic use of social mobilization processes; (ii) integrating the social mobilisation and community service into the local government system; and (iii) promoting conducive framework conditions, both within the local government system and in the National Government, for effective decentralization and provision of communal services Activities Develop and implement a process for replicating community mobilization; Donor Mapping Per Programs 20 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Promote a system of community-based service provision; Improve the capacities and skills of local government officials at the village, municipal, rayon and oblast levels, within the framework of the present and emerging decentralization process; Improve the planning and management skills introduced at the various levels of local government; Disseminate and share experiences and lessons learnt through a common platform established at the national level; Promote national policy dialogue on different elements of decentralisation. 5. Community-based Governance, Infrastructure and Social Development in Crimea (contribution to UNDP Crimean Integration and Development Programme - CIDP): The project supports community-based preventive health and sanitation initiatives in multi-ethnic settlements in Crimea. Consequently, it promotes the integration and institutionalization of preventive health and sanitation practices in the health care system. The project also develops water supply systems on community bases and it organises intensive backstopping for both the health system and the water supply system. The project seeks to support citizens of various ethnic backgrounds in jointly undertaking initiatives to improve living conditions and establish partnerships with local authorities, thereby promoting decentralized and participatory good governance and peaceful integration of FDPs into society. Overall Goal and Project Objectives The overall goal reads: to foster sustainable human development and to promote peace and stability in Crimea by improving living conditions of local communities. To support a bottom-up, participatory decision- making framework for local development improvements across Crimea; To provide selected communities with the necessary resources to implement and manage an infrastructure of social service improvements. 6. Supporting Small and Medium-Sized Enterprises (SME) Development: SECO supports several initiatives in order to improve the investment enabling environment and the integration of Ukraine into the multilateral trading system: Credit guarantees Credit guarantees help finance supplies of goods and services by Swiss manufacturing companies and also infrastructure projects. Profits will be used to pay off both the interest and the principal of an export credit. This type of financing makes it possible for small and medium-sized enterprises (SME) to do business with companies in Ukraine, in ways that otherwise would not have been possible. The "Export Risk Guarantee" (ERG) is available for short-term guarantees in Ukraine, whereas credit guarantees cover the medium and the long term. The project commenced in 2002 and is currently operational with a budget of CHF 30 M. Link: http://www.swiss-erg.com FIRST initiative The Financial Sector Reform and Strengthening (FIRST) initiative is a significant USD 51 millions multi-donor initiative aimed at promoting robust and diverse Donor Mapping Per Programs 21 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA financial sectors in developing and transition countries. FIRST provides technical assistance, grants to recipients for capacity building and policy development in the areas of financial sector regulation, supervision and development. Link: www.firstinitiative.org International Purchasing & Supply Management (ITC) ITC's Programme on International Purchasing & Supply Management (IPSM) focuses on enhancing the competitiveness of the private sector, and in particular SME, through improvements in the efficiency and effectiveness of the supply chain and a reduction of unit input costs for the industry, benefiting both the private and public sectors. These projects should help to strengthen national training and consulting capacity in Purchasing & Supply Chain Management, and also develop networking and co-operation arrangements on a regional level (among them Ukraine). Link: http://www.intracen.org 7. Swiss Organisation for Facilitating Investments (SOFI): Ukraine is one of the 28 countries selected to benefit from SECO's investment promotion mandate to the Swiss Organisation for Facilitating Investments (SOFI). Apart from information dissemination (for example, through the Internet, conferences and missions) on investment conditions and opportunities, SOFI provides advice to enterprises in preparing and implementing their investment projects and supports entrepreneurs in finding partners in developed countries. Advisory services at a project level are generally paid for by the client. 8. SECO Start-up Fund: To encourage and facilitate the preparation and initial phases of new investment projects, SECO provides loans to Swiss entrepreneurs of up to 50% of the financing needs. A number of loans concern projects in Ukraine. Links: www.sofi.ch/global/seco/ 9. Ukraine Corporate Development Project (UCDP) The Swiss – IFC Eastern Europe Partnership has been established between SECO and the IFC Private Enterprise Partnership (PEP) to promote private sector development in Russia and Ukraine. In Ukraine, PEP has launched the "Ukraine Corporate Development Project" (UCDP) to create better conditions for investment and improve the investment climate in Ukraine. The mission of the UCDP is to promote the development of the private sector in Ukraine by introducing international best practices and advising enterprises, government agencies and educational institutions on corporate governance, financial management, and investment and financing strategies. The Project has four offices in Kyiv, Odessa, Dnipropetrovsk and Lviv, with teams of experienced Ukrainian experts on financial and legal matters. 10. and 11. Swiss-Ukrainian Forest Development Project in Zakarpattya (FORZA) – Phases one and two: The project attempts to improve forest management and reduce the poverty of local people by using forest resources in a sustainable way. FORZA combines the main directions in the development of the Transcarpathian forest sector. Through multi-purpose silviculture, the project shows ways in which even aged forests may be transformed into diversely-aged, and thus more naturally- shaped, forests. The project also supports new approaches in forest management planning, with the participation of both the forest technicians and the local population. FORZA also supports policy dialogue and shares its local experience with national and international partners working in the forestry sector (including the Ministry of Donor Mapping Per Programs 22 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Environment, the State Committee of Forestry, and some interested donors such as UNDP, FAO and the World Bank Four project components and appropriate objectives have been identified 1. Multi-functional Forest Management involves the further development and strengthening of multi- functional forest management, using means such as close- to- nature silviculture and low- impact harvesting to sustain forest functions and enhance production of forests goods and services; 2. Forest Economy and Market- orientation strengthens the viability of forest-based economic activities, by introducing market-oriented approaches and employing sound economic methodologies to forest management and landscape protection; 3. Livelihood of the Population improves the sustenance of local populations through better access to forest resources, collaboration between forest service and local communities, and involvement of the private sector 4. Forest Policy, Law Enforcement and Lessons Learnt facilitate and support the development of forest policies and law enforcement, by providing relevant findings and justifications to policy- makers at all levels Links: Intercooperation: www.intercooperation.ch , State Forestry Committee of Ukraine: www.dklg.kiev.ua , FORZA project: www.forza.org.ua 12. Access to Rural Financial Services in the Vinnytsya Region of Ukraine: The overall goal of the project fits into the mission of other Swiss projects in the region. This is to promote sustainable development in rural areas of Ukraine in order to preserve natural resources, to generate income and to reduce migration from the countryside. The purpose of the project is to grant access to financial services on a sustainable basis to small and medium size producers in rural areas in the Vinnitsa oblast. Overall Goal and Project Objectives • Establishing a procedure for providing medium and long term loans to private farms and small businesses through a selected commercial bank • Improving farmers' knowledge and skills in business planning and financial management, as well as their awareness of bank services and requirements The main activities of the project were to: • To develop a rural loan product in a selected bank convenient to private farmers; • To define procedures in order to calculate the risks on the basis of cash flow and not on pledges; • To train bank staff at various levels (management, credit committee, loan officers; • To develop training modules for farmers' training; • To conduct training courses for farmers (business planning, financial management and accounting, banking procedures); Donor Mapping Per Programs 23 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA • To launch a pilot rural loan project in a Vinnitsa branch of the selected bank. Swedish International Development Cooperation Agency (SIDA) began cooperation with Ukraine in 1995, since which time it has had a broad base that in recent years has been focused on combating poverty and supporting democracy to assist Ukraine in EU harmonisation. SIDA is at the start of extending support to decentralization and regional development, and is currently at the stage of diagnostics and planning (including inputs by international experts commissioned for this task). One of the concerns for SIDA is ensuring institutional sustainability of decentralization activities in Ukriane. A collaborative project involving industry, the Swedish Trade Union Confederation (LO) and the Confederation of Professional Employees (TCO) designed to introduce the Swedish cooperative model in Ukraine is expected to commence soon. SIDA also gives support to a project designed to bring attitudes towards innovation and enterprise closer to those of the rest of Europe, as a stronger entrepreneurial spirit can help boost economic growth. The project is a joint venture between Ukrainian universities and the Ukrainian Ministry of Education and Science, the Lithuanian Ministry of Education and Research and Sweden's Mälardalen University. The Swedish Federation of Trade is operating a project designed to train and strengthen the capacity of Ukrainian subcontractors in the wood sector so that they can commence exports to the west. Project / Programme Title Value Start End Date Date 1 Prospects, Benefits and Challenges for Ukraine 1M SEK 05/2007 05/2008 to Participate in Regional Trade Associations 2 Ukraine Public Dialogue, Phase 2 3.15M 04/2007 10/2008 SEK 3 Funding Channelled via Organisations 4 448 634 ? ? Associated with Swedish Political Parties. SEK 4 Sustainable Municipal Technical Cooperation 30 000 000 12/2006 12/2009 Funds with EBRD and NIB SEK (all ODA countries in CIS) 5 Demo Environment (inclusive CEE) 45 M SEK 2007 2008 6 Ukraine Urban Infrastructure (with World Bank) 45 M SEK 12/2007 12/2009 7 Vegetable Supply Chain Project in Mykolayiv 13.9 M 07/2004 12/2008 (with IFC) SEK 8 Vinnytsya Dairy Supply Chain Development 10.683 M 07/2004 12/2008 Project SEK 9 Business Enabling Environment (in cooperation 10 M SEK 12/2007 12/2009 with IFC) 10 Business Development Centres in Ukraine 2005- 15.3 M 06/2005 12/2009 2009 SEK Donor Mapping Per Programs 24 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA 11 Entrepreneur Training in Ukraine and Belarus 9.6 M SEK 01/2006 12/2009 12 Crimean Integration and Development 10 M SEK 04/2007 08/2009 Programme Phase IV: Promoting Integrated Regional Development in Crimea 1. Prospects, Benefits and Challenges for Ukraine to Participate in Regional Trade Associations: The aim of the project is to improve capacity and increase knowledge of decision makers at central and regional levels in order to enhance internal dialogue as to the conditions Ukraine will face on the world market and the need to understand and differentiate the role between the WTO and SES, emphasising the role of WTO and European integration. The project will comprise three components such as analysis of the global trade environment and Ukraine's place in global economic relations, identification of the prospects of Ukraine's separate regions (preliminary Kharkiv, Lviv, Kherson and Poltava) in the era of globalisation and a study tour to Sweden. 2. Ukraine Public Dialogue, Phase 2: The project is a response to the request of the Cabinet of Ministers of Ukraine for the continuation of the first phase of the project Ukraine Public Dialogue implemented in 2006. The development objective of the project is to strengthen the reform process for democracy by improving public communications and the dialogue between the state and the public. The project includes three main components that are closely interrelated; they are planning and structuring public communications, capacity development for the primary target group and special catalytic actions. 3. Funding Channelled via Organisations Associated with Swedish Political Parties: Centre Party International Foundation (CPIF) established cooperation with Reform and Orders Party, Public Order Party, Yulia Tymoshenko Bloc and European party (conference in Kyiv); Swedish International Liberal Centre (SILC) cooperates with the liberal party Pariya Narodnyj Poryadok (Donetsk region), Swedish Social Democratic Party (Oskarshamn regional unit) with Socialist Party of Ukraine and Social Democratic Party of Ukraine (Kharkiv, Zhytomyr and Nizhyn), Olof Palme International Centre with Socialist Party of Ukraine and Social Democratic Party of Ukraine (central level); LO-trade union Arvika-Eda with the Socialist Party of Ukraine (in Odessa region); Olof Palme International Centre with the Socialist Party of Ukraine and its youth organizations, Swedish Social Democratic Party (Blekinge regional unit) with the Socialist Party of Ukraine (Donetsk), CEE Network for Gender Issues with East-European women's organizations, connected with social or social democratic parties; Jarl Hjalmarson Stiftelsen with Our Ukraine. The support to NGOs cooperation is channelled through Swedish framework organizations. 29 projects are run in Ukraine in cooperation with the Swedish organizations (4 448 634 SEK committed contribution) within such sectors as democracy development, education, environment. Please visit www.sida.se/ngodatabase for further information. 4. Sustainable Municipal Technical Cooperation Funds with EBRD and NIB The overall objective of the two funds with EBRD and with NIB is to promote design and implementation of investments for sustainable municipal Donor Mapping Per Programs 25 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA development, including water and sanitation, district heating and waste management, safeguarding sustainable use of natural resources and protection of the environment. Technical studies in conjunction with the preparation and implementation of municipal environmental infrastructure projects. The funds are drawn from a special allocation and are tied to the Swedish resource base. Sub-project 1: Odessa District Heating Study The study is to support the finalization of institutional, financial, least-cost, economic, technical and environmental aspects of a proposed district heating rehabilitation project in the city of Odessa, to enable appraisal by an investment bank for possible further financing. 5. Demo Environment: A grant facility for modern environmental technology solutions, administered by NUTEK. The purpose of this facility is to make it possible for authorities, municipalities, institutions and companies in some of Sida´s partner countries to test new technology within the areas of sustainable urban development and renewable energy. It will also enable setting up demonstration facilities based on new knowledge and technologies, from Sweden and other countries. Support for pilot studies on project development and identification is offered. Grants ranging between 5,000 - 30,000 euro, with some co-financing required. 6. Ukraine Urban Infrastructure: The World Bank is preparing the Ukraine Urban Infrastructure Project to be financed by a loan in the amount of MUSD 140 (2007-2012). The main part of the loan will finance investments in the water, wasterwater and solid waste sectors. About half of the loan will be transferred to four pre—selected cities/regional governments for financing of rehabilitation investments and the other half for an energy-efficiency credit-line open for all municipalities/Vodokanals that comply with certain criteria. Sida will co-finance Technical Assistance components necessary for the project. 7. IFC: Vegetable Supply Chain Project in Mykolayiv: The project aims to support the development of the agricultural sector in Southern Ukraine. IFC will work with vegetable supply chain development among selected processors, wholesale and retail outlets. The project includes training in farm management, product quality, modern sales and marketing techniques. 8. Vinnytsya Dairy Supply Chain Development Project: This project sets out to support milk producing farmers in the Vinnytsya region. The project will develop local milk producer's capacity to deliver larger quantities of quality milk, improve their access to finance and enable investments in modern production technology. 9. IFC: Business Enabling Environment: The project aims to develop an improved business environment in Ukraine. This will be achieved by addressing key regulatory barriers hindering Ukrainian SMEs and to support closer economic relations between Ukraine and the EU. 10. Business Development Centres in Ukraine 2005-2009: The project aims at establishing Business Development Centres in Ukraine through a tripartite cooperation between two universities and the Ministry of Education and Donor Mapping Per Programs 26 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Science on the Ukrainian side, the Ministry of Education and Science together with colleges on the Lithuanian side, and the University of Mälardalen in cooperation with Idelab and Munktell Science Park in Eskilstuna. 11. Entrepreneur Training in Ukraine and Belarus: The project intends to give SME's the opportunity to get high-quality training and increase their chances to expand which will increase employment and the functioning of the market economy. The immediate objective is to make three selected management institutes able to execute entrepreneur training without further Sida assistance. 12. Crimean Integration and Development Programme Phase IV: Promoting Integrated Regional Development in Crimea (SIDA Contribution): The programme is the fourth phase of the Crimea Integration and Development Programme (CIDP). Its development objective is to foster sustainable human development in a manner that contributes to the maintenance of peace and stability in Crimea through initiatives aimed at preventing interethnic violence and enhancing peaceful coexistence among ethnic groups. The three components of the programme are good governance, local economic development as well as human security monitoring and tolerance education. The programme is also meant to give a platform for a dialogue between the UN and the national and Crimean governments, thereby contributing to the development of a national policy with regard to Crimea. Government of Norway: The objective of Norway's development policy is to fight poverty and bring about social justice. In its budget for 2009, the Government achieved its target of allocating 1 percent of gross national income (GNI) to international development. This budget post has been increased by NOK 3.9 billion and totals NOK 26.2 billion for this year The Government will continue to focus its efforts on priority areas where Norway can make the greatest contribution: the environment and sustainable development; peacebuilding, human rights and humanitarian assistance; oil and clean energy; women and gender equality; good governance and the fight against corruption; and efforts to reach the health-related Millennium Development Goals. Norway places particular emphasis on efforts to fight climate change and deforestation. The Norwegian government supports cooperation with Ukraine bilaterally and through international organisations, such as the United Nations (and its specialised agencies), the Organisation for Security and Cooperation in Europe, the Council of Europe, the North Atlantic Treaty Organisation, the European Free Trade Association,etc. Project / Programme Title Value Start End Date Date 1 Energy planning in rural areas of the 900 000 Ivano-Frankivsk region in Ukraine NOK 2 Further education of energy and 850 000 environmental experts – an industrial NOK programme in the Ivano-Frankivsk region in Ukraine 3 Promoting the use of performance-based 390 536 contracts between water utilities and NOK municipalities in Ukraine (through OECD) Donor Mapping Per Programs 27 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA 4 Implementation of environmental 159 029 permitting reforms in Ukraine (Through OECD) NOK 5 Sustainable Capacity Building for 1750 000 Climate Change Mitigation projects in NOK Ukraine 6 Protection and sustainable use of natural 3 000 resources in the Ukrainian Carpathians (Through 000 the World Wide Fund for Nature – Norway) NOK 7 Cooperation within research and 800 000 business development (pre-project) NOK 8 Reform and development of local 1 800 democracy in Ukraine 000 + 159 000 NOK 9 The Small Project Fund, 2008 1 340 146 NOK 1. Energy planning in rural areas of the Ivano-Frankivsk region in Ukraine: The project aims to introduce modern technical and financial energy planning mechanisms in the Ivano-Frankivsk region, and thus help to ensure a more effective use of energy. 2. Further education of energy and environmental experts – an industrial programme in the Ivano-Frankivsk region in Ukraine: The aim is to establish a programme at the Ivano-Frankivsk National Technical University for Oil and Gas that covers organisation and leadership, financing, financial management, systems for renewable energy, and environmental issues in Ukrainian industry. 3. Promoting the use of performance-based contracts between water utilities and municipalities in Ukraine: The project aims to scale-up and disseminate good practices for managing water services at the municipal level in Ukraine. The project will be used as a pilot project for other countries in the CIS region. 4. Implementation of environmental permitting reforms in Ukraine: OECD will assist Ukraine in implementing environmental permitting reforms to comply with EU directives for large industry and in simplifying the permitting regime for small and medium-sized enterprises. 5. Sustainable Capacity Building for Climate Change Mitigation projects in Ukraine: Ukraine is one of the largest industrial countries in Europe and as such contributes substantially to greenhouse gas emissions. The Green Investment Scheme, which will supplement the Joint implementation mechanism under the Kyoto Protocol, is now being implemented. The legal framework is in place, but procedures for project evaluation and local capacity for identification and development of investment projects are needed. Norsk Energi will support Ukraine in improving project evaluation procedures and developing investment projects. 6. Protection and sustainable use of natural resources in the Ukrainian Carpathians: The project's aim is to promote sustainable management of the natural resources in the Ukrainian Carpathians by providing training for the forestry administration, tourism actors, local administration and NGOs. Donor Mapping Per Programs 28 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA 7. Cooperation within research and business development (pre-project) Sintef will look into the possibilities of cooperating with Kharkov in the fields of research and economic development. 8. Reform and development of local democracy in Ukraine: The objective of the project is to support the reform and further development of local governance in Ukraine. Project activities include a study trip to Norway by Ukrainian mayors and a trip to Ukraine by KS representatives. KS and the Ukrainian partner will devise a larger project based on the information gathered in these studies. 9. The Small Project Fund, 2008: The Embassy's Small Project Fund provides support for local initiatives in Ukraine and Belarus Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) has provided active support in the area of fiscal, administrative and territorial amalgamation at communal level since 2006. It worked with the CoM secretariat, MoRDC, the AUC, and selected think tanks (ICPS and CPLR) to fine-tune their reform initiatives, develop alternative models for administrative-territorial reform, issue related publications and articles. One of the lessons suggested by GTZ experience in the area is that reform designers strongly rely on the changes for political will to receive a green light for their initiatives. They also observe that perhaps the only current strategy within the ministries to increase sustainability of reforms is a "public presentation" of the recent reform concepts – which underlines the weakness of the government's communications and influencing skills, and lack of donor support to cover this gap. The priority areas of German–Ukrainian cooperation are sustainable economic development, energy efficiency and the fight against HIV/AIDS. The priority areas directly relevant to regional development include: • Sustainable economic development: The Ukrainian Government's paramount goal is to establish closer ties with the European Union (EU). Although Ukraine has witnessed substantial economic growth since 2000, rural areas are still severely disadvantaged and the inequality of living standards in the different cities, especially the disparity between Kiev and individual regions, continues to grow. Technical cooperation (TC) strives to raise the standard of living in rural and structurally weak areas and to contribute to poverty reduction. The fields of activity in the priority area are regional and local development, promotion of small and medium-sized enterprises, support of private sector structures, improvement of financial services, particularly in rural areas, and vocational training. • Energy efficiency: In comparison to other industrialised countries, the use of primary energy sources is highly inefficient in Ukraine. Outdated systems and heavy losses combined with careless commercial and private use (because tariffs are low) lead to high consumption. This practice is questionable not only in environmental terms (the need to reduce CO2 emissions) but also because it makes the Ukrainian economy highly dependent on external supplies of energy and therefore extremely vulnerable to price fluctuations and supply bottlenecks. This dependence poses a major impediment to economic development. As regards energy-efficient buildings, there is a pressing need to reduce the substantial loss of heat in commercial and private buildings and to make more Donor Mapping Per Programs 29 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA economical use of existing energy resources. It is also important to reduce transmission losses in the district heating grids and power supply systems, to use more efficient systems to produce heat and electricity, and to tap new, alternative sources of energy. Transferable solutions that have a direct impact and can result in more efficient use of scarce energy resources must be developed. Key requisites include raising awareness and improving the institutional, legal and administrative framework. Project / Programme Title Value Start End Date Date 1 Support of the Rural Financial System 12/2003 12/2009 2 Support of Private Sector Structures and 11/2003 12/2008 cooperation with the private sector 3 Reform of the national administration for the 12/2005 12/2009 support of decentralisation 4 Institutional reform of the Ukrainian Ministry of 11/2005 12/2009 Finance 5 Support of Economic Development and 2009 2011 Employment Programme 1. Support of the rural financial system: Regulatory conditions, financial regulatory services for the microfinance sector, and the range of appropriate financial services have improved in rural areas. The project advises the State Commission for Regulation of Financial Services Markets of Ukraine (SCRF) on modifying the legal framework and improving regulatory services, orienting them towards internationally recognised procedures. Information required for the advisory process will be collected using analyses and pilot measures at the regional level. The project focuses on bolstering the performance of the SCRF, which is the key actor as regards microfinance policy. Managers and divisions at the SCRF will acquire the know-how they need to regulate the microfinance sector efficiently. They will benefit from international microfinance experience through direct specialised advisory services, participation in working groups, committees and other bodies, and through study trips and seminars. This experience can then be used to officially develop improved financial regulatory services for the non-banking sector. Organising intensive dialogue with all relevant actors in the microfinance sector will help the SCRF take account of the need to develop savings and credit cooperatives and other non?bank financial institutions in the microfinance sector in Ukraine. Above all, associations at the national and regional levels and new protection schemes will be included in this dialogue. 2. Support of Private Sector Structures and cooperation with the private sector: Assist Ukraine to enhance the conditions for improvement to the private sector have and business enterprises are in a better position to exploit their economic potential. The programme has three components: • Consultancy for decision-makers at the central government level (policy and administration) on questions related to the direct and indirect promotion of the private sector Donor Mapping Per Programs 30 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA • Support for selected SME facilities and institutions for regional economic promotion, to expand or improve their service packages • Identification, planning and implementation of pilot support measures at the enterprise level, for example, development partnerships with the German business sector (public-private partnership or PPP) always in cooperation with a corresponding institution. 3. Reform of the national administration for the support of decentralization: The project undertakes advisory and training activities at the central, regional and municipal levels. The aim is to develop the capacity of public administration and regional self-government to design and implement reforms. At the central level (policy and administration), decision-makers are advised on the concept and implementation of administrative reform. Realistic and efficient concepts of administrative reform will be incorporated into the political reform process. The regional self-governments will receive supported for the design and implementation of the reforms. Municipalities and districts will also be assisted in their efforts to draw up and implement reform programmes. 4. Institutional reform of the Ukrainian Ministry of Finance: The key elements of the project are high-level sector advice (government consultancy) and training for decision-makers and experts. Decision-makers learn to draft a viable concept for the institutional reform of the Ministry of Finance and the subsidiary authorities, and they learn to support its implementation. Guidance is provided on issues such as organisation, procedures, new management concepts for public budgets, and budgetary policy. Danish Official Development Assistance Danish Development Assistance is targeted to increase its development assistance in 2009, in accordance with the Government Platform from November 2007. A global amount totaling DKK 15.3 billion will be set aside in 2009 to development assistance, equivalent to 0.82 per cent of GNI. The long-term initiatives are maintained as the core of development cooperation, based on a mutually binding cooperation with the programme countries and the most important multilateral organizations. The aim is to support the efforts of the developing countries to combat poverty, benefit from globalization and achieve a better future. At the same time, the government will organize the assistance to cater for current opportunities and challenges. Project / Programme Title Value Start End Date Date 1 Support to Rural Private Sector Development in ? ? ? Ukraine 1. A new Support To Rural Private Sector Development In Ukraine is under preparation, although it is not clear the exact make up or scope of the project at this time. Donor Mapping Per Programs 31 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA United Kingdom through DFID and other facilities. DFID closed its bilateral programme in Ukraine in 2008. One of the major conclusions of DFID support in decentralization was the need to work through partnerships, including expert networks and informal working groups. DFID SUFTAR project (Sustainable Finance for Territorial-Administrative Reform, 2005) is believed to be one of the most successful initiatives in this area, since it managed to combine fiscal and administrative aspects of decentralization, took the courage to look into weaknesses of proposed reforms (and therefore helped to strengthen the debate), and worked through a multiple partnership which included several ministries, the CoM, and regional authorities. The Largis projects in their various incarnations, was involved in Ukraine for a significant period of time. Project / Programme Title Value Start End Date Date 1 Local and Regional Government Institutional £ 1.5M 1999 2002 Strengthening Project (LARGIS) I 2 Local and Regional Government Institutional ? 06/2005 12/2005 Strengthening Project (LARGIS) II: Assistance to Regional Development Policy in Ukraine 3 Sustainable Finance for Territorial-Administrative ? 2005 Reform 4 Evaluation of DFID Support to Trade Related ? 2004 2004 Capacity Building 5 Economic and Social Regeneration in the £7.4 M 2003 2008 Ukrainian Donbass / Action Donbass 1 The Local and Regional Government Institutional Strengthening Project (LARGIS): The purpose of LARGIS is to support the process of territorial administrative reform in Ukraine, and thereby to increase the effectiveness of public services in Ukraine at local and regional levels. The purpose of territorial administrative reform should be to increase the benefits derived by citizens from an effective and accountable system of local and regional government. To achieve its broad purpose LARGIS has the following core objectives • To assist the Ukraine authorities to develop a stable and transparent system of intergovernmental finance. This should be a formula-based system whereby resources from national government are allocated according to normatives that reflect the cost of delivering services in each region or locality, enabling equalization both between and within regions. This system should be based on a clear separation between state, regional and local powers and responsibilities, and between 'own' functions and delegated functions at each level • To assist the Ukraine authorities to establish an effective regional development policy. This is aimed at creating the capacity for more integrated strategies for social and economic development at regional and local levels, either through improved co- operation between existing departments and organisations, or through specialist development agencies • To assist the Ukraine authorities to reach consensus on administrative reform of local and regional government. This aims to re-define the relations between national, regional and local tiers of government and strengthen the institution of locally Donor Mapping Per Programs 32 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA accountable self-government. Self-government denotes the right and ability of local authorities, within the limits of the law, to regulate and manage a substantial share of public affairs under their own responsibility and in the interests of the local population • To assist Ukraine regional and municipal authorities to develop strategic management of local public services, using the cities and oblasts of Lviv and Kharkiv as the main experimental bases. A series of demonstration projects are run in collaboration with Lviv and Kharkiv city and oblast administrations, with the active participation of civil society stakeholders. The choice of demonstration projects reflects the priorities of the city and oblast authorities • To assist the Ukraine authorities in the achievement of these objectives through staff training, capacity building and the dissemination of practical methodological support. The chief project instruments are consultancy, training programmes, methodological materials and study visits. The strategic use of these instruments, in consultation with project partners, forms the major part of LARGIS support for the implementation of reform. The results of demonstration projects in Lviv and Kharkiv will be disseminated as case studies and examples of good practice to other local authorities. The web site is: http://largis.ldp.lviv.ua/english/ind-engl.htm 2 Largis II: Funded by the UK Department for International Development (DFID) and Implemented by the School of Public Policy in the University of Birmingham, England, the Largis II project was a short-term programme of assistance in the field of regional development policy. The project was designed and implemented to provide assistance to the Government of Ukraine's in its drive for increasing harmonisation of state policy with the policy and practice of the European Union. Its chief Ukrainian expert partner was the Institute for Regional and Euro-Integration Studies "EuroRegio Ukraine" in Kyiv. "EuroRegio Ukraine" provided office accommodation and project co-ordination. LARGIS II assisted the Ministry of Economy to prepare: • A State Strategy for Regional Development of Ukraine till 2015, reflecting European standards and approaches and including recommendations for the necessary institutional changes to support implementation of the Strategy. • A revised statistical methodology for the measurement of levels of regional, rayon and urban social and economic development and for more precise identification of 'depressed territories'. • Targeted and transparent intergovernmental fiscal instruments to support depressed territories or to stimulate further growth in regions which are relatively stronger and may have strategic importance for the economy as a whole. • Selected institutional instruments widely used in the European Union to support regional development, including Contracts for Regional Development and Regional Development Agencies (RDAs) . LARGIS II will assist the Ministry to identify the necessary conditions for adapting EU experience to the circumstances of Ukraine and the practical procedures and legislative implications of doing so. • A best practice training manual advising regional authorities on practical methodologies of strategic planning and management , and on integration of strategy implementation with effective budget management. Donor Mapping Per Programs 33 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA A parallel and important objective of LARGIS II is to strengthen the capacity of the Ministry of Economy specialists in fields of policy analysis, policy development and consensus building with key stakeholders inside and outside government. Objectives 1-5 will all be the result of the work done by Ministry specialists, guided and supported as necessary by LARGIS II experts. The web site address is www.largis.org.ua 3. Sustainable Finance for Territorial-Administrative Reform: The DFID-sponsored project on 'Sustainable Financing of Territorial Administrative Reform' (SuFTAR) was established as a result of a request received from the Ministry of Finance of Ukraine in June 2005 and operated between September 2005 and February 2006. The overall purpose of SuFTAR was to promote the sustainability of territorial administrative reform by integrating it with budget/fiscal reform. The project would provide assistance to the Government of Ukraine in making the right policy decisions, by providing the Ministry of Finance with expert analysis of the financial implications of territorial reform and recommending the most appropriate budget and fiscal reform options for Ukraine to follow. The analysis would utilise the experience of similar reform programmes in Central and Eastern Europe, especially Poland, and on the lessons to be learned from these. The main planned outputs of the project were: Clear and realistic recommendations for budget and fiscal reform to support sustainable territorial administrative reform accepted by the Ministry of Finance and Cabinet of Ministers, including: • A 'road-map' for implementation of the measures recommended and approved; • Progress towards consensus on proposed budget/fiscal reforms, at national and regional level; • Improved capacity of Ministry of Finance specialists in policy analysis and in the development of policy options. 4. Evaluation of DFID Support to Trade Related Capacity Building: Completed by the North-South Institute in November 2004, this report provides interesting insights into the nature of programme and the challenges faced. The comments and issues are still quite relevant. 5. Economic Regeneration and Social Mitigation in Donbass, Ukraine: This project provided support to the Ukrainian efforts to improve the social and economic situation in the Donbass area by assisting in its economic regeneration and social mitigation programme. The project aimed at implementing major social, economic and institutional development in Donetsk and Lugansk Oblasts in the context industrial restructuring in the mining sector. Additional Available Programmes of the UK Government: 1. The Strategic Programme Fund (SPF) - formerly the Global Opportunities Fund - was established in 2003 to support the Government's international goals. Typical projects involve a range of stakeholders – from federal and state governments to civil society and NGOs – helping us reach out to new partners. In 2006-7, programme spending stood at £128 million. SPF spending accounted for 50 per cent of this.The programme focus on the UK's main policy goals, which are to: Donor Mapping Per Programs 34 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA • counter terrorism, weapons proliferation and their causes • promote a low carbon, high growth global economy • prevent and resolve conflict; and • develop effective international institutions, above all the UN and EU Donor Mapping Per Programs 35 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Canadian International Development Agency: CIDA has been involved in technical cooperation with Ukraine since 1991, primarily supporting the transition to democracy and a market economy, and enhancing nuclear safety. CIDA has been implementing several relevant programs in the broad area of institutional capacity development, local and regional development and policy advice in Ukraine for many years. Relevant projects (past or on- going) to support regional development include: Project / Programme Title Value Start Date End Date 1 Community Economic Development (CED) CDN$ 01/01/2004 31/12/2007 Project, 5,150,000 2 CDN$ Canadian Fund for Local Initiatives (CFLI) – 2008 2009 Ukraine 200,000 3 Ukraine Business Enabling Environment CDN$ 2008 2013 Project 2,200,000 4 Policy Reform and Implementation SupportCDN$ 2007 2012 Mechanism (PRISM) Project 9,500,000 5 SBEDIF - Regional Networks CDN$ 2002 2008 3,802,608 6 Small and Medium Sized Enterprises Line of CDN$ 1999 2009 Credit II 3,000,000 7 Crimean Integrated Development Programme CDN$ 2006 2007 (CIDP) – Implemented by UNDP - CIDA 1,000,000 Contribution 8 Horticulture Development Project CDN$ 2008 2013 8,250,000 9 Ukraine Credit Union Strengthening Project CDN$ 2004 2010 5,559,092 10 Regional Governance and Development CDN$ 2005 2010 Project 5,484,206 11 Regional Training and Consultancy Capacity CDN$ 2003 2008 Project 2,400,000 1. The Community Economic Development (CED) Project, a four-year project, started January 1, 2004, and ends December 31, 2007. It is financed by the Canadian International Development Agency (CIDA), Government of Canada and was managed by the Canadian Bureau for International Education (CBIE), a Canadian national non- governmental organization (NGO). The CED Project provided Canadian expertise in community economic development to partner organizations in Ukraine. It helped communities to mobilize their own resources, start community initiatives, and work together as a community with local authorities. CED worked in three regions of Ukraine, in sites in which local communities have already shown their will to improve their economy and living environment. The focus was to obtain Western expertise in CED, integrate it into their community economic activities, and help other Ukrainian communities to do the same. The three areas in Ukraine are Lviv Oblast, Cherkasy Oblast and Transcarpathia Oblast. The project web site is still operational and can be found at: http://www.ced.org.ua . An interesting project document was produced entitled: Communities of Ukraine: On the Way to Rebirth and is available on the web site. Donor Mapping Per Programs 36 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA 2. Canadian Fund for Local Initiatives (CFLI) – Ukraine 2008-2009: The Canada Fund for Local Initiatives (CFLI) is designed to support small projects proposed and implemented by local organizations in Ukraine. In providing funding for small projects that offer direct social, economic, or technical assistance to local populations, the CFLI contributes to the overall goal of reducing poverty. 3. Ukraine Business Enabling Environment Project (2008 – 2013): Implemented through the IFC, the Business Enabling Environment Project (BEEP) aims to streamline and simplify three of Ukraine's most problematic administrative procedures related to the supervision and regulation of business operations: standardization and certification, inspections, and permits. The goal of the project is to improve the business enabling environment in Ukraine by addressing key regulatory barriers for SMEs. 4. Policy Reform and Implementation Support Mechanism (PRISM) Project is a five- year project (2007-2012) is managed by the Canadian Bureau for International Education (CBIE) and provides targeted support to strengthen the policy formulation, implementation and coordination capacities of Ukrainian government institutions in selected sectors. PRISM is also part of Canada's technical co-operation program with Ukraine that emphasizes capacity building at individual, institutional and enabling environment levels, the transfer of knowledge, partnerships, and the forging of direct links between Canadian and Ukrainian partners. The linkages forged under PRISM will provide the opportunity to share experiences, methodologies, and expertise related to policy development and implementation processes. PRISM is a project that funds individual initiatives (sub-projects). It limits its activities to those sectors in which the Government of Ukraine has asked CIDA to provide assistance, including Public Administration, Private Sector Development, Judicial Policy, and Gender Equality. 5. SBEDIF - Regional Networks (2002 – 2008): The SBEDIF-Regional Networks (RN) project worked to establish a major Internet Web Portal at the SBEDIF Business Centre in the city of Ivano-Frankivsk, and develop a network of five satellite business centres in selected regions around the district of Ivano-Frankivsk. The SBEDIF-RN was intended to serve as the hub of a linked network of business centres, each of which will be able to provide business and English-language training, business consulting services, access to the SBEDIF loan fund, and other services with the aid and support of the central office. 6. Small and Medium Sized Enterprises Line of Credit II: (1999 – 2009): The Ukraine Small- and Medium-Sized Enterprises Line-of-Credit Phase II (SME II) is a $150 million EBRD initiative building on the success of the Phase I initiative of the same name. The purpose of the overall project is to promote entrepreneurship in Ukraine by providing support to SMEs through improving the level of financial services provided, stimulating competition in the banking sector, and supporting local entrepreneurs and private enterprises through the provision of long-term funding. Canada, through CIDA, is providing $3 million for the provision of Canadian technical assistance services to selected partner banks. 7. Crimean Integrated Development Programme: This is the third phase of a multi- donor UNDP initiative in Crimea which aims to foster sustainable human development in a manner that contributes to the maintenance of peace and stability via initiatives aimed at preventing interethnic violence and enhancing peaceful coexistence among ethnic groups. There are 3 program components: Good Donor Mapping Per Programs 37 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA Governance, Local Economic Development and Human Security Monitoring and Tolerance Education. The project will continue to work on the already established components of the program and will complement these community level interventions with respective policy interventions: institutionalizing mechanisms into policy frameworks and practices, supporting additional elements of sustainable regional development, and replication in other districts. 8. Horticultural Development Project: This project aims to strengthen the capacity of 5,000 smallholder farmers in the regions of Crimea and Zaporizhzhia to engage profitably, competitively, and sustainably in the production, processing, and marketing of two to three high-value horticulture commodities. Farmers in these two regions are faced with a range of constraints that inhibit their access to markets and lead to a significant percentage of the population living in poverty. The project involves partnering with local farmer associations and agriculture extension services to deliver technical training and other agriculture support services designed to improve production and facilitate access to markets for smallholder farmers. The project also involves working with credit unions in both regions to guarantee rural lending to these horticultural producers. CIDA is providing CDN$ 8.25M to this project implemented by the Mennonite Economic Development Associates. 9. Ukraine Credit Union Strengthening Project: This project will build upon the work of previous credit union projects by creating a credit union association, which will help to support the development of future credit unions in Ukraine. The primary objective of this project is to create financial opportunities for the poor and underserved areas of Ukraine. It will promote Ukraine's transition to a market economy by providing financial services to small-scale rural businesses. It will also promote good governance, since credit unions are owned and operated by members, and are consequently an important institution in civil society. 10. Regional Governance and Development Project: This project will assist the government of Ukraine in its plan to decentralize policymaking and policy implementation to regional areas. The project will assist in the development of a pilot project for the decentralization process that will entail an integrated regional development process that involves civil society. This project will contribute to democratization and good governance in Ukraine by creating effective, open, and accountable regional self-governments that involve civil society. 11. Regional Capacity and Consultancy Capacity Project: The project will improve the institutional capacity of Kyiv National Economic University (KNEU) and its network of institutions to support the business community by offering management training. KNEU will be the main regional centre for management programs, transmitting the content of its programs to all its satellite universities through the long-distance education component of the project. In addition to delivering practical management training, the project will develop capacity in institutions to offer advisory services to enterprises. The electronic network expanded by the project will allow Ukrainian enterprises to market their products, develop alliances and to develop the abilities required to compete globally and partner with Canadian and other foreign firms. Donor Mapping Per Programs 38 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) The EBRD is the largest financial investor in Ukraine. The financing provided is very diverse, including credit lines for the financial sector and small and medium-sized businesses, long- term project finance, private equity investments, debt finance for modernisation and expansion projects, import and export finance, syndication. There is a focus on financial institutions, agribusiness, real estate, power generation and transmission projects, infrastructure, including transport and municipal services and the steel sector. The EBRD gives special attention to reforming the energy sector and introducing energy efficiency technologies. Nuclear safety is a key component of the EBRD's activities as is the EBRD managed Chernobyl Shelter Fund. Consistent with this strategy the EBRD directly supports the GoU's priorities and concentrates its efforts on: 1. Helping to improve the business climate and the competitiveness of private sector 2. Strengthening the institutional capacity of the financial sector and increasing the level of finance for micro enterprises and SMEs 3. Supporting the restructuring and modernisation of Ukraine's road, railway, harbour and airport infrastructure, power and oil & gas sectors Project / Programme Title Value Start End Date Date 1 Crimea Municipal Infrastructure Loan €8M 2008 ? 2 Noble – Ukraine (Agriculture Commodities) US$158M 2009 ? 3 Odessa Terminal Holdco Limited – Equity US$130M 2009 ? (Transport) 4 Energodar District Heating US$9.9M 2009 ? 5 Ruscam-Odessa (Private Sector Development) US$108M 2009 ? 6 Ukraine MSME Lending Framework US$200M 2004 ? 7 UKEEP - Energy Efficiency Programme for Banks US$100M 2006 ? in Ukraine 8 Turn Around Management Programme (TAM) / Multi- Ongoing ongoing Business Advisory Services (BAS): Country Programme 1. Crimea Municipal Infrastructure Loan: Financed by the EBRD, the project involves a loan to the municipal water and wastewater utility of the Communal Water and Wastewater Management Utility of the South Coast of the Crimea (the "Company"), owned by the Autonomous Republic of Crimea in Ukraine. The proceeds of the loan would be used to finance priority capital investments to improve the municipal water and wastewater infrastructure and services in the City of Yalta and a number of smaller municipalities along the south coast called "Great Yalta", the most famous resort area in the Crimea. The investments are expected to contribute significantly to decreasing the level of polluting discharges into the Black Sea. The project will have an impact on the transition process through: (i) corporatisation and commercialisation of the Company Donor Mapping Per Programs 39 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA (ii) billing according to actual consumption; (iii) transfer of skills during the implementation phase including the procurement, design, installation and contracts supervision in accordance to the best available international engineering practice. The main components of the project include: • Update of the Technical Feasibility Study, prepared by COWI in 2001. Funding has been approved by Denmark. • Financial Due Diligence and IFRS Audit of the Company. Funding to be identified. Environmental Management Plan (the "EMP") estimated at EUR 50,000 envisaged to be financed bilaterally by the EU DABLAS facility for the Black Sea area; • Municipal Development Programme (the "MDP") for the Republic and the City of Yalta to advise on tariff setting through regulatory advice to the Republic, where the options for non-sovereign lending to the Republic and the secondary cities of Simpheropol, Sebastopol, Eupatoria, Kerch and Theodosia will be further reviewed, estimated at EUR 300,000 2 Noble Resources Ukraine LLC ("Noble Ukraine") engages in the trading of agricultural commodities, originating grains and oilseeds in Ukraine for sale globally, as per Noble Group's Global Pipeline Strategy. The EBRD is considering financing business development of Noble Group Limited (the "Sponsor") in Ukraine, which is driven by the Noble Group's regional Pipeline Strategy, involving origination, storage, processing and trading of agricultural commodities. The Project's transition impact will have both up-stream and downstream effects: 1. Demonstration effect to optimise operational standards of silos: working together with Ukrainian silo operators to improve operational efficiency by introducing international standards, best practices, risk management, and modern techniques. 2. Market expansion - integration of Ukrainian agro-processors in the global markets: NRU plans to invest in an oilseed crushing plant and port facilities in the medium-term, as existing facilities in Ukraine do not have the required capacity or quality standards to meet global demand. Such investments will help address current logistics bottlenecks by which the country is constrained, while strengthening Ukraine's position as an agri-commodity exporter. 3 Odessa Terminal Holdco Limited – Equity: The EBRD will provide part of the financing for the construction and development costs of a new container terminal in the Port of Odessa in two stages. The new terminal will increase the Port's container handling capacity to meet future demand for container throughput and promote further containerisation and logistics development in Ukraine. The Project represents much needed private sector investment in developing the port infrastructure in Ukraine. The involvement of the EBRD will have significant demonstration impact by encouraging wider potential participation from the private sector which will foster efficiency and promote higher degree of competition. Donor Mapping Per Programs 40 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA 4 Energodar District Heating: The EBRD is considering providing a senior loan to Energodar TeploVodocanal, a combined water and district heating utility company wholly-owned by the city of Energodar, to finance priority capital expenditure programmes aimed at reducing costs and increasing the quality of energy supply for the population. The project will include the transfer of connection of an area presently served by a local thermal power plant to the nuclear power plant, which already serves the remainder of the city. 5 Ruscam-Odessa: The Project entails financing of Anadolu Cam's expansion in the Russian and Ukrainian glass beverage container sector. It will include the construction of one additional furnace (120 thousand tonnes) and the cold repair and expansion of the existing furnace in the plant in Kirishi (St Petersburg); and the construction of one furnace at a brownfield plant in Odessa, Ukraine, with a capacity of 85 thousand tonnes. 6 Ukraine Micro, Small and Medium Entreprise (MSME) Lending Framework: The proposed project is a US$ 200 million Framework Facility for on-lending to local banks for financing private sector micro, small and medium-size enterprises. Under the Framework EBRD will provide direct long-term credit lines to local participating banks (PBs) which will in turn lend the funds to micro and small enterprises (MSEs) and to private small and medium size enterprises (SMEs). The Framework objective is to improve access of creditworthy MSEs/SMEs to sources of reliable finance and to further strengthen the lending capacity and skills of participating banks. The Framework includes technical assistance for institutional building and increased lending capacity of the participating banks. The main goals of the MSE/SME Framework are to (i) provide access to medium-term credit to finance MSEs/SMEs (ii) support the development of the private sector and banking sector in Ukraine. Transition impact will be achieved by expanding commercially viable MSE/SME finance business in the participating financial institutions and increasing competition thereby demonstrating to other financial institutions that small and medium sized businesses can be a profitable and attractive customer segment 7 UKEEP - Energy Efficiency Programme for Banks in Ukraine: The project is EUR 100 million framework facility under which the EBRD would extend credit lines to Participating Banks (PB) for on-lending to private sector companies for industrial energy efficiency and renewable energy projects. Discussions are currently taking place with potential participating banks. These banks include: State Export Import Bank of Ukraine (UkrExim); Kreditprombank; Forum Bank; OTP Bank; and Ukrexim Bank. 8 The EBRD's TurnAround Management (TAM) and Business Advisory Services (BAS) Programme helps private enterprises to adapt to the demands of a market economy. These complementary programmes develop the micro, small and medium-sized enterprises (MSMEs) through a multi-tiered approach. TAM/BAS is fully integrated into the EBRD's activities, alongside banking and investment. TAM focuses on substantial managerial and structural changes within companies, providing the advisory services of experienced senior executives from economically developed countries. BAS supports short-term projects with narrowly Donor Mapping Per Programs 41 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA defined objectives and, at the same time, develops a sustainable infrastructure for business advisory services in the countries of operation. A significant number of Ukrainian enterprises have taken advantage of the programme(s) and they are available to private sector companies throughout Ukraine. The web site is: http://www.ebrd.com/apply/tambas/about/index.htm The European Investment Bank (EIB), primarily promotes wider EU objectives, supports investments furthering EU integration within the framework of six EU priorities: cohesion and convergence; support for SMEs; environmental sustainability; research, development and innovation; Trans-European Networks; and sustainable, competitive and secure energy. It also operates outside the EU within the framework of the EU's external policies for cooperation and development. Owned by EU's 27 Member States, the EIB raises its funds on the capital markets (AAA-rated issuer). In 2006, it borrowed EUR 48 billion and lent a total of EUR 45.8 billion. Project / Programme Title Value Start End Date Date 1 Rehabilitation of the M-06 road from Kiev to Chop € 200 M 2007 ? 2 Donbass CHP Plants (Development of Energy € 150M 2009? ? Efficient Electricity Generation) – Under consideration!!!! 3 Lviv Urban Transport (Under Consideration) €75M 2009? ? 4 Mykolayiv Vodokanal: Emergency and efficiency- €16M 2009? ? generating measures both for water supply as well as wastewater collection (Under Consideration) 1. Rehabilitation of the M-06 road from Kiev to Chop: The European Investment Bank (EIB) is lending EUR 200 million to Ukraine for the rehabilitation of the M-06 road, which is the major route between Ukraine and the European Union, linking the Ukrainian capital to the neighbouring EU Member States of Hungary, Slovakia and Poland. This was the first-ever operation of the EIB in Ukraine. The promoter of the project is Ukravtodor, the State Road Service of Ukraine. The project will contribute to eliminating bottlenecks on the M-06 road and improve the quality and security of the existing infrastructure. The M-06 road is part of the Pan-European Corridor III connecting Eastern European countries with the EU's TEN (Trans-European Network) whose completion is a priority objective of the European Union. 2. Donbas CHP Plants (Development of Energy Efficient Electricity Generation): Construction and operation of a Combined Cycle Gas Turbine power plant to produce electricity utilising coke-oven, converter and blast- furnace gases, which would otherwise be flared, thereby improving the environmental impact of the Promoter's operations by reducing CO2 emissions. The project will enable the production of electricity at a competitive cost and with an acceptable environmental impact caused by combustion of waste gases that otherwise would be flared. This will result in sound economic and financial profitability. Donor Mapping Per Programs 42 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA 3. Lviv Urban Transport: Priority investments for the modernisation of the urban transport system (roads, tramways, trolleybuses) of Lviv, one of the Ukrainian cities expected to host the EURO 2012 football championship. Improvements of the quality and capacity of urban roads are expected to engender congestion relief, implying a reduction in travel times and operating costs for private cars and public transport services. At the same time, improved road infrastructure will increase transport safety and will contribute to limiting environmental externalities from road traffic. Improvements in public transport services will increase the attractiveness of public transport compared to private cars and will allow for a reduction in car traffic, thus reducing the overall impact of transport on the environment. 4. Mykolayiv Vodokanal: The project includes emergency and efficiency- generating measures both for water supply as well as wastewater collection and treatment. The overall objective of the project is to improve water supply services and contribute to safeguarding the natural environment. Japan ODA: Japanese Grant for Municipal Development Loan Fund Project administrated by the International Bank for Reconstruction and Development (IBRD) Project / Programme Title Value Start End Date Date 1 Medical / Healthcare Sector Support (Hospital US$ 9 M 2008 2009 Support and Equipment provision to Hospitals in Lugansk, Dinipropetrovs'k, Kharkiv, Kivirograd, Donets'k) 2 Chernobyl Related Asstance US$100M 1991 2009 3 Infrastructure Loans: Borispyl Airport Renovation – US$189M 2008 ?? 50 Year Loan 4 Grassroots Grant Scheme: Under US$150,000 – 2002 On- 42 Projects Throughout Ukraine going Turkish Technical Assistance Programme: Project / Programme Title Value Start End Date Date Other EU Member States Project / Programme Title Value Start Date End Date 1 France: FEASIBILITY STUDY OF ? 2004 2007 INTRODUCTION OF CONCESSION FOR THE HEATING SYSTEM OF LVIV Donor Mapping Per Programs 43 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA 2 Netherlands: Ukraine: Technical assistance €349,234 ? 2007 for the road transport sector in Ukraine 3 Netherlands: Pilot Supply Chain for fruits and €600,000 2005 2006 vegetables in Kharkiv Oblast, Ukraine 4 Netherlands: Ukraine: Egg processing in €800,000 2006 2007 Ukraine 5 Netherlands: Production and service facility €636,402 2005 2006 for ventilation equipment (Crimea) 6 Netherlands: Reed processing and products €491,675 01/2005 12/2009 development in the Vilkovo Area, lower Danube, Ukraine 7 Netherlands: Improvement of production and €692,331 ? 04/2008 marketing of strawberry plants: 8 Netherlands: Establishment of a farmer- €850,000 2006 ? controlled market organisation for fruit, vegetables and potatoes in Kharkiv Oblast 9 Netherlands: Harmonisation of the rural €129,998 16/02/2009 16/08/2010 development policy in Ukraine with EU standards 10 Netherlands: Support the Ukrainian Ministry €130,000 01/03/2009 01/09/2010 of Agricultural Policy to implement the biomass action plan and to develop a sustainability certification system for biomass in Ukraine 5. FRANCE: FEASIBILITY STUDY OF INTRODUCTION OF CONCESSION FOR THE HEATING SYSTEM OF LVIV Need to Complete Information 6. Netherlands: Ukraine: Technical assistance for the road transport sector in Ukraine Need to complete information 3 Netherlands: Pilot Supply Chain for fruits and vegetables in Kharkiv Oblast, Ukraine: The Kharkiv market for vegetables is currently fragmented, unstable, unreliable, non-transparent and dominated by traders with very limited influence on the marketing process, from the producers point of view. The current market for the sale of fruit, vegetables and potatoes is a day-to-day cash market dominated by regional and interregional traders who set the prices. Producers have difficulty selling their produce for a reasonable price while, on the other side of the production chain, retailers have difficulty finding reliable suppliers that can supply a good quality product over a long period, preferably all year round. Part of the problem is also the low quality of the produce. This is due to the fact that producers have limited knowledge and experience in modern methods of growing fruit and vegetables. Improved product quality and increased yields are crucial for local producers to be able to better compete with imported products from southern regions. An important first step in this direction will be to train the producers in modern production methods and demonstrate this to them in the field. The main objective of Donor Mapping Per Programs 44 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA this project is to establish a marketing organisation for the sale of fruit and vegetables in Kharkiv oblast, to stimulate the development of the horticultural sector in Kharkiv oblast. Project Results • establishment of a producer-controlled market organisation, which proves to be sustainable by the end of the project; • realisation of fruit and vegetable cooling, packaging and distribution facilities; • development of new crop demonstration fields in cooperation with the participating farmers; • establishment of a market information collection system; • initiation and promotion of Dutch-Ukrainian business cooperation, investments and sales in the Kharkiv horticultural sector. 4. Netherlands: Production and service facility for ventilation equipment (Crimea): Hotraco Agri B.V. produces integrated climate-control equipment for poultry and piggery housing. Ukraine, with a large stock of poultry, is a promising market, but the financial capacity of potential clients is limited. By transferring the production of voluminous components – mainly large diameter shafts, vents and valves – to the Crimea, production costs can be reduced by 30 percent. This entails eliminating international transport of these large components and decreasing manual labour. The production unit will be a joint venture operation between Hotraco Agri B.V., Pticekompleks, a large poultry grower and retailer of poultry feed, and housing equipment, and JSC Svet, a metal workshop. As a consequence, products will be more competitive and the technological advantage of the products can be fully utilised. The second phase of the project consists of an installation and after-sales service. This service will enable quick and reliable service to the clients. Project Results • a moulding line for the manufacturing of large components of ventilation equipment. These components are vents, shafts and air-regulation valves with a diameter of up to 0.8 metres and a length of 1.0 metres; • an installation and after-sales service for integrated climate-control equipment 5. Netherlands: Reed processing and products development in the Vilkovo Area, lower Danube, Ukraine Bijkerk is a reed trading company, which has existed since 1946. Their clients are mainly roof thatchers. As the market demand in the Netherlands for reed is still growing and the harvesting of reed decreasing Bijkerk has orientated on importing reed from other countries as well. The recipient Ecoservice was established over a year ago with the aim to develop the harvesting of reed in the Danube delta in a more professional way. The founder of Ecoservice and Bijkerk have been conducting business since 2001. Ecoservice has a reed concession of the Danube Biosphere Reserve for the harvesting of reed. The aim of the project is to increase the harvesting yield of Ecoservice. However, due to the fairly short harvest season and their limited machinery capacity they are not able to harvest all the reed as permitted within their concession. Therefore, harvesting machinery will be supplied within the project. Most Donor Mapping Per Programs 45 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA of the reed is intended for export to the Netherlands. In addition, the project also aims to develop a market in Ukraine for thatched roofs. They will train local personnel in roof thatching and also recruit a sales and marketing person to develop that market. As the Danube Biosphere Reserve has virtually no experience with the harvesting of reed and the consequences of harvesting, part of the project will also be an environmental study for the reserve. The inferior quality reed will be used for the production of reed mats, which can be produced outside the harvesting season. 6. Netherlands: Improvement of production and marketing of strawberry plants: Goossens, one of the world's leading producers of strawberry plants, has so far had limited sales to Ukraine and Russia despite the fact that these countries are big markets for small fruits like strawberries. By co-operating with a small grower in Ukraine, these markets could be reached more effectively. Apart from the traditional plants, so called frigo plants will also be produced. These are plants that can be harvested in winter and early spring and can be stored up to several months at a temperature of just below 0°C. Also, besides growing existing Dutch and Ukrainian varieties, the co-operation offers the possibility to develop new varieties. It is anticipated that the production level will eventually reach 3.5 million plants, of which 3 million are to be sold to the Ukrainian and Russian markets and 0.5 million through the channels of Goossens to the Western European markets. 7. Netherlands: Establishment of a farmer-controlled market organisation for fruit, vegetables and potatoes in Kharkiv Oblast: Product quality is a key focal point required to improve the sales of fruit and vegetables in the Kharkiv region. Purchase managers from super market chains indicate they reject 30 to 50 percent of the produce offered to them, for not meeting visual quality requirements. This situation worsens during the period of winter and early spring. The general feeling is that produce from the Kharkiv region is of a lower quality than products imported from the southern regions of Ukraine. Improved product quality and increased yields are crucial for local producers to be able to better compete with imported products from the southern regions. An important first step in this direction will be to train the producers in modern production methods and demonstrate this to them in the field. Training should be practical and based on demonstration fields that will be set up during the project. Dutch vegetable and potato seed companies should be involved in setting up the demonstration fields. As the activities of Dutch vegetable and potato seed companies in the region are currently very limited, producers are not familiar with the potential of using quality seeds. There are no demonstration fields or open days to demonstrate the possibilities or the proper way of using the seeds or plant materials. Within the project a new legal entity will be set up in combination with a selected group of farmers. This new entity will provide post harvest handling, marketing and trading services on behalf of these farmers. The project will focus on the handling, storage and sales of traditional products as potatoes, onions, cabbages, carrots and beetroots. Results • establishment of a Farmers Market Organisation (FMO); • fruit and vegetable storage and distribution facilities realised and in operation; Donor Mapping Per Programs 46 Support to Sustainable Regional Development EuropeAid/125234/C/SER/UA • assistance for horticultural development; • the Farmers Market Organisation is commercial sustainable. 8. Netherlands: Harmonisation of the rural development policy in Ukraine with EU standards Ukraine has a large territory of rural areas. The rural areas are populated by 1/3 of the Ukraine people. Main problems of the rural areas are (cited from the document Ukrainian State Program of Development of Rural Areas until 2015): poverty, unemployment, low wages, lack of motivation, decline in agricultural production and lack of income generating activities, migration of people from rural areas to cities, deterioration of agricultural hardware. Since 2008 Ukraine has developed an inter-department programme on Rural development called State Programme of Development of Rural Areas. This programme will continue until 2015. The Ukraine government has committed itself to harmonise the Ukrainian policies and legislation with EU policies. In order to pick up this chance for this complex responsibility the Ukrainian Ministry of Agricultural Policy is seeking assistance in the field of rural development. • Concise description of Dutch policies and implementation programme regarding Rural Development; • Overview of Ukrainian current situation regarding Rural Development Programme; • Relevant materials on rural development available and disseminated; • Development of ideas for follow-up activities and future projects. 9. Netherlands: Implementation of biomass action plan in Ukraine Review of Ukrainian biomass and biofuels legislations. Training of Ukrainian civil servants in the Netherlands. Organisation of a training for key civil servants charged with the implementation of the action plan in Ukraine to the Netherlands. The activities include: • Workshop on biofuels legislations in the Netherlands; • Workshop on taxation legislation and subsidies legislations; • Workshop on stimulation of innovation (bio-based economy); • Workshop on sustainability certification of biomass and the current situation in Ukraine regarding GMO biomass. Donor Mapping Per Programs 47
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