Municipal Environmental and Economic Governance (MEG)

The Project will provide for better local services for the citizens, enhanced accountability and trust between local authorities, citizens and businesses, as well as support to capital investments to unlock sustainable economic growth and job creation. Particular attention will be paid to improving living conditions of vulnerable groups.

To support and sustain changes introduced at the local level, the MEG project will encourage improvements in the regulatory framework, aligned with relevant EU standards, and towards decentralized and improved service delivery.

Approximately 700,000 citizens, including 40,000 socially excluded, will benefit from the improved local services, employment opportunities or improved business environment.

Flagship results achieved thus far include: 

• Successfully introduced the performance management system (PMS) in 18 partner local governments where the municipal council, the mayor, and the administration jointly apply operational and accountable municipal performance management practices
• Methodology for awarding financial support based on results: Link between initial state of the results of partner LGs and progress made based on the agreed parameters. The funds are used exclusively for the realization of priority capital investments from Development Strategies, in the sectors of environment and economy.
• e-Citizen: Finalized online platform for cooperation and communication between local governments and citizens through a software solution (ask the mayor, ask councilors, public hearings, public consultations). The mobile application (Android / iOS) is actively used in 16 LGs to report utility problems.
• Detailed technical and practical assistance provided to public utility companies (PUCs) in 17 areas of performance improvement.
• Acquired over 500,000 BAM worth of necessary equipment and materials for measuring losses and reducing non-revenue water, detecting network failures and accounting software for more efficient bookkeeping.
• 16 municipal assemblies approved Public Service Agreements (PSA). Agreements officially signed between LGs and PUCs, which for the first time systematically regulated the rights, obligations and responsibilities of all parties. PSA allows the establishment of a special depreciation account for future system maintenance costs.
• PSA enabled the establishment of a system of subsidies for monthly water costs for the most vulnerable categories of the population, in cooperation with the Centers for Social Assistance. Subsidy of the monthly water bill in the amount of 3-5m3 per user. A total of 1740 users.
• Network of experts for local economic development established: All LGs form the MEG project are members. Presidency of the Network elected and rules of procedure adopted. 8 more LGs joined - Bijeljina, Ključ, Lukavac, Maglaj, Srebrenik, Travnik, Vitez and Živinice.
• Citizen satisfaction survey on the quality of services: 5 rounds of polls - MEG (2016) and all LGUs (since 2017). Almost 20,000 citizens were interviewed. Individual detailed reports prepared for management and municipal assemblies. Reports adopted as baseline indicators of citizens' satisfaction with the work of public administration. Questionnaires and Methodology forwarded to LGs, organized training on tools and methodology. MEG project prepared the Report on Citizen Satisfaction Trends, 2016-2020.
• Strategic infrastructure projects: The total expected amount of investments in two cycles of grants is 16,980,000 KM (LG: 9,686,000 (approx. 60%), MEG: 7,294,000 (approx. 40%)). 22 projects with a focus on water supply. 12 projects with a focus on sewage. 3 business zones. 2 streets reconstructed (water supply and sewerage).
• Results of financial support of the MEG project:
• Bosanska Krupa: Out of a total of 1,500m of internal road, 408m was built through the MEG project in PZ "Pilana", whose value is around 205,000 KM. Three new investors in the first half of 2019. Additional investments in PZ "Vatreni Mlin".
• Cazin: Joint investment in PZ "Ratkovac". 140 dunums offered in the first phase. Confirmed investment of a German company worth 4 million euros - a plant for the production of panel furniture and a job for 39 workers.
• Gradiška: Reconstruction of the water tower and upgrade of the water supply system at the water source "Žeravica". New pipelines, valves, bypasses around the water tower, and a system for telemetry and remote monitoring of all systems and control of losses in water supply. Sufficient water source capacity provided for the next 30 years. Project value 1,173,000 KM.
• Tešanj: A new water supply system was put into operation in MZ Raduša, for the construction of which funds were provided by the Municipality of Tešanj in the amount of 850,000 KM, MEG with 700,000 KM, the Ministry of Agriculture, Water Management and Forestry ZDK and the Government ZDK with 600,000 KM and JP RAD with 106,000 KM. Total investment 2,250,000 KM. One of the most complex projects in recent years in the municipality of Tešanj, Vodovod Raduša enables 1000 inhabitants of MZ to have clean and quality water. In total, about 35 kilometers of water supply network were built, one 300 m3 tank with five pumping stations.
• 82 km of newly built water supply network 
• 22 km of reconstructed water supply network
• 33 km of newly built sewerage network
• 3,481 connection to the water supply network
• 3,551 connection to the sewerage network
• 114,180 inhabitants have an improved water supply
• 22,620 households have improved sanitation
• 1740 beneficiaries of water supply subsidies
• 10,102 citizens from rural areas have access to secure water supply
• Finalized trainings and practical manuals for: (1) Program budgeting for LGs, (2) Management of large infrastructure projects, (3) Fight against corruption at the local level, (4) Best practices in water companies.
• Local economic development: 370 new jobs (127 women). 355 companies supported. 50 startups. 83 vlanice.
• Strengthening the capacity of business development service providers
• The City of Bihać and MEG initiated the implementation of the program of subsidies for tourist and catering services through a voucher, called "Holidays in BiH", which was implemented by the Tourist Board of the City of Bihać (www.visitbihac.ba). The City of Bihać and MEG set aside 100,000 KM each (for 700 vouchers). Vouchers in the amount of 200 KM for offer packages were offered via online platform.
• Provided technical assistance to cantonal and entity ministries in the process of adopting changes to the legal framework, and implementing regulations
• Necessary assistance was provided in the finalization of draft legal acts, the adoption of which is within the competence of various levels of government: (i) FMRPO - Law on Incentives for Small and Medium Enterprises, and the Law on Entrepreneurial Infrastructure, (ii) FMPVŠ - Decree on the methodology for determining the lowest basic price of water services, (iii) USC - Law on Construction and Physical Planning, (iv) ADOPTED (USC Government): Law on Public-Private Partnership (PPP) and Law on Tourism.
• Technical cooperation with AMC FBiH in educating PUCs on benchmarking

Website:
https://www.ba.undp.org/content/bosnia_and_herzegovina/en/home/development-impact/MEG.html

Contact:
Boško Kenjić, Senior Programme Officer, Embassy of Switzerland, bosko.kenjic@eda.admin.ch
Goran Štefatić, Project Manager, UNDP, goran.stefatic@undp.org