The Exchange 5 grant scheme in the area of property management

The ceremony marking the start of the implementation of the Exchange 5 Programme grant scheme was held on 22 January 2019 in Belgrade. The meeting organized by the Ministry of Public Administration and Local Self-Government (MPALSG), the Ministry of Finance - the Sector for Contracting and Financing Programmes from the EU funds, and the Standing Conference of Towns and Municipalities (SCTM) marked the beginning of implementation of 18 projects worth EUR 3.5 million. The project implementation will help 48 local self-governments to improve the process of managing public property. The programme is funded by the European Union from the allocation for IPA 2014, and implemented by MPALSG in cooperation with the Ministry of Finance - the Sector for Contracting and Financing Programmes from EU funds (contracting authority) and SCTM as an implementing partner.

On this occasion, Branko Ružić, Minister of Public Administration and Local Self-Government, said that municipalities, towns and their partner organisations successfully passed the selection for obtaining funds from the EU.

"Property management is an area that requires thorough regulation, because in order to enable local self-governments to own property, to gain income from it or put it in function of satisfying the needs of citizens, it is important to know what they have", said Ružić.

He reminded that a number of regulations were adopted last year that provide greater public participation in the work of local authorities, strengthening the capacities of employees in local self-governments and better regulating the procedure for registering real estate in public ownership and the procedure for municipal property management itself. The Minister is convinced that such legal bases and the support we receive through the Exchange programme will contribute to efficient property management, strategic planning, and programme budgeting at the local level.

Jadranka Joksimović, Minister for European Integration, stated that the Exchange 5 programme, as part of the EU's international development assistance, is preparation for Serbia's inclusion in European cohesion policy.

"We are in the process of learning how to apply the European principles of political solidarity in the country, and at that pre-accession moment, it is very important that there is good coordination between the Ministry of European Integration, the Ministry of Public Administration and Local Self-Government, and the Ministry of Finance," Joksimović said.

According to her, local self-governments in Serbia should strengthen their capacities for using EU structural funds, and in this process, SCTM plays a major role.

"It is important that all local self-government units are interested in these topics, because the good effect of EU programmes can only be achieved if there is cooperation at all levels of government", the minister said.

Sem Fabrizi, the head of the Delegation of the European Union to the Republic of Serbia, said that the role of local authorities in the process of Serbia's accession to the EU is significant because the main interaction of citizens and public administration takes place at the local level.

"The capacities of local self-governments in Serbia have to be strengthened, as more than 60% of EU regulations need to be implemented locally", Fabrizi said. He added that local self-government must be strengthened so that it could have direct benefits from the application of European acquis.

Slavica Savičić, State Secretary at the Ministry of Finance, reminded that in December last year amendments were made to the Law on Public Property, which, in her words, additionally contributed to the strengthening and improvement of the capacities of employees in local self-governments.

"These changes better regulate the procedure for registering real estate in the public ownership, as well as the procedure of municipal property management", said Savičić. She estimated that property management should be "rational, moderate and to have appropriate legal basis".

Marko Jovanović, Assistant Minister of Finance and Head of the Sector for Contracting and Financing Programmes from EU funds, said on this occasion that 48 local self-government units were included in projects under the Exchange 5 Programme grant scheme, of which 18 were grant coordinators, while the remaining 30 were partners. The aforementioned programme and grant scheme are part of the IPA 2014, the second programme that is implemented through a decentralized EU fund management system. He emphasized that the CFCU, in cooperation with the relevant ministries and institutions, has recently achieved great success in contracting the IPA 2014 programme with a contracting rate of over 90%, or more than EUR 59 million, which indicates the great commitment of all participants in the process of fund management and projects funded by the European Union.

Đorđe Staničić, Secretary General of the SCTM, said that the Standing Conference of Towns and Municipalities since 2004 is a partner of the EU in the projects of strengthening the capacities of local self-governments in Serbia.

"So far, more than 33 million euros have been invested in such projects. Local self-governments have invested around 550,000 euros in projects implemented under the Exchange 5 grant scheme, which is about 16% of the total funds", Staničić said.

Exchange 5 Programme is part of the ongoing processes in which the Republic of Serbia, with the support of the European Union, is making efforts to improve governance in the local self-government and to improve the level of services in towns and municipalities in order to encourage local development. Exchange 5 Programme topics are in the function of local reform processes and relate to: supporting efficient property management and support in strategic planning and programme budgeting.

The total value of the Exchange 5 Programme from the EU funds is 4.45 million Euros, of which € 3 million is a fund for the implementation of projects under the grant scheme for property management. Within the remaining donation funds, expert support to local self-governments has been provided both in the area of property management, as well as in the area of programme and capital budgeting, which is implemented in the coordination of line ministries, and through the SCTM.

More information on Exchange 5 Programme