Second Municipal Services Improvement Project

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The development objective of the Second Municipal Services Improvement Project for Macedonia, former Yugoslav Republic of is to improve transparency, financial sustainability, and inclusive delivery of targeted municipal services in the participating municipalities. The project comprises of three components. The first component, municipal investment sub-loans will provide sub-loans to municipalities for investments in municipal infrastructure, including revenue-generating and cost-saving municipal infrastructure investments and other projects of high priority for the municipalities. The second component, poverty and social inclusion investment grants will provide investment grants to municipalities as an incentive for them to invest in infrastructure improvements in poorer and marginalized communities within their jurisdictions. The third component, project management, monitoring and evaluation, and capacity building supports operational costs of the project management unit (PMU), assists with project implementation and monitoring, and supports the relevant ministries and other agencies both at the national and municipal levels to strengthen institutional and financial systems and practices for sustainable municipal service delivery.