Municipal Services Improvement

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The development objective of the Municipal Services Improvement Project for Macedonia is to improve transparency, financial sustainability, and delivery of targeted municipal services in the participating municipalities. The project aims to achieve this objective through a focus on infrastructure and services under the responsibility of participating municipalities and their communal service enterprises, such as water supply, sanitation, and solid waste management, but may also include support for other functions such as energy efficiency, urban transport, and other services under municipal provision. There are four components to the project. The first component of the project is municipal investments. This component will provide sub-loans to municipalities for investments in: (i) revenue-generating public services; and (ii) other investment projects of high priority to municipalities and with cost saving potential. The second component of the project is capacity building and institutional strengthening. This component finances technical assistance grants for: (i) sub-project preparation; (ii) local capacity building for municipalities and Communal Service Enterprises (CSEs) to improve performance in service provision; and (iii) national level institutional strengthening. The third component of the project is performance-based investment grants. This component will provides investment grants to municipalities as an incentive and reward for implementation of reform initiatives aimed at performance improvements in service delivery. The fourth component of the project is project management, monitoring, and evaluation. This component will support operation of a project management unit and assist with project implementation and monitoring.