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DONORSIN THE REPUBLIC OF MACEDONIA

December 2005

Book title Donors in the Republic of Macedonia

Author Government of the Republic of Macedonia

Publisher Secretariat for European Affairs,Government of the Republic of Macedonia

Circulation 1.000

Pre-press & design Jordan Girov

The preparation and printing of this publication was supported by UNDP and the Government of the Kingdom of Norway within the project Aid Coordination, phase 2

341,232(100:497.7)

Government of the Republic of Macedonia DONORS IN THE REPUBLIC OF MACEDONIA / A [author Government of the Republic of Macedo-nia]. - Skopje : Secretariat for European Affairs, Government of the Republic of Macedonia, 2006.

ISBN 9989-2238-9-01. Gl. stv. nasl.

COBISS.MK-ID 64286474

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CONTENT

PREFACE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

BILATERAL DONORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

AUSTRIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

GERMANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

JAPAN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

ITALY .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

NETHERLANDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

NORWAY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

SWEDEN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

SWITZERLAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

UNITED KINGDOM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

UNITED STATES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

OTHER BILATERAL DONORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

MULTILATERAL DONORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

EUROPEAN UNION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP). . . . . . . . . . . . . . . . 61

OTHER MULTILATERAL DONORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

INTERNATIONAL FINANCE INSTITUTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

COUNCIL OF EUROPE DEVELOPMENT BANK (CEB) . . . . . . . . . . . . . . . . . . . . 75

EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT(EBRD) . . 78

EUROPEAN INVESTMENT BANK (EIB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

WORLD BANK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

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PREFACEFACE

Foreign assistance coordination is a complex, time, efforts and skills consumingfunction that almost every country undertakes, in one form or another. From a recipi-ent country perspective, either the government takes an active or semi-active role in coordination or, by default, leaves such coordination to the donor community itself.Nevertheless, from whatever perspective, a certain degree of coordination is required.This ‘degree’ of coordination depends on many factors such as: the country’s interest

interest in co-operation and facilitative relationship with donors, as well as the interestand capacity of donors to respond to the country’s needs.

Government of the Republic of MacedoniaPrime - Minister

Ministry of Finance

Ministries Other stateinstitutions

Localself-government

Other aid benificaries

NGOs

Co-ordinative technical group of CMFAC- representatives of the Ministers Central Donor

Assistance Database of the RoM

CDADSecretariat for European Affairs- Aid Coordination Sector

Deputy Prime Ministerin charge of European Integration

- National Aid Coordinator Committee of Ministers for Coordination

of Foreign Assistance (CMCFA)- National Aid Coordinator (Chair-person)

- Deputy Prime-Minister in charge of Implementation of Framework Agreement

- Minister of Foreign Affairs- Minister of Interior- Minister of Finance

- Minister of Economy- Minister of Education and Science

has established the National System for Coordination of Foreign Assistance, having oneof the Deputy Prime Ministers as National Aid Coordinator, but also supporting structurein a form of Committee of Ministers for Coordination of Foreign Assistance (CMCFA) ,FF

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Coordinative Technical Group of the CMCFA and Aid Coordination Sector (ACS) within the Secretariat for European Affairs (SEA).

While the Government of the Republic of Macedonia determines the strategies, creates the policies, sets and gives directions through different sector documents and decides on questions of national interest, the main mandate of the National Aid Coordinator and the Committee of Ministers for Coordination of Foreign Assistance is to secure the political and strategic directions of foreign assistance in accordance with the government priori-ties and to strengthen its effectiveness trough inter-sector co-ordination.

Coordinative Technical Group of CMCFA, supported by the Secretariat for European Affairs, is responsible for smooth functioning of the National System for Coordination of

service of the National Aid Coordinator and permanent Secretariat of the CMCFA, as well as the link for transfer of data, information and proposals through day-to-day con-tacts with the donors. The SEA/ACS manages the Central Donor Assistance Database (CDAD) and has direct connection with the Ministry of Finance, responsible for ensuring that the projects are complementary with the Budget of the Republic of Macedonia and settling the procedures concerning the import, customs, VAT, etc. Ministry of Finance also monitors and controls the use of funds provided as aid for the Republic of Macedonia and provides the realisation of the procurement procedures set by law.

co-ordinate the implementation of projects of their competence. Maximum possible active coordination undertaken by the Government is clearly the

best way to optimise the effects through an adequate allocation of both foreign and na-tional resources and to achieve the expected results in the given time period. Enhancing the possibilities of the established system and recognising the weaknesses that occur in practice, Government of Republic Macedonia, in co-operation with the international community, is putting serious and continuous efforts to improve and strengthen its role in the coordination of the foreign assistance.

In support of those efforts, the UNDP and the Norwegian Government provided funds and technical support, including through recruitment of national professionals engaged in the SEA and 7 line ministries, for realization of the Aid Coordination, Phase 2 project. The general objective of the project is to strengthen the coordinative planning among the ministries, as well as between the Government and the donors, with a view of more effective coordination of foreign assistance. The services and the products of the project are consisting of collecting and analyzing data on foreign assistance for the purposes of improving and updating the Central Donor Assistance Data-base, and preparation of various thematic reports and brochures.

In that respect, the objective of this brochure is to provide standardized and accurate information on the general institutional set-up and policy approach of the donor institutions,

The brochure is prepared by the Secretariat for European Affairs in co-operation with the line ministries and the donors, and it should serve as an addition to the detailed info that could be obtained within the Central Donor Assistance Database.

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BILATERAL DONORS

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FEDERAL REPUBLIC OF AUSTRIA

Institutional Set-up

The Austrian Development Cooperation is an integral part of Austria’s foreign policy, which aims at promoting balanced social and economical development as well as to reducing poverty and promoting stability of its partner countries.

- Department for Development Cooperation of the Federal Ministry for Foreign Affairs of Austria is responsible for the formulation and steering of the development policy position and its strategic frameworks (www.bmaa.gv.at

- Austrian Development Agency (ADA) is the operational unit of the Austrian Development Cooperation and Cooperation with Eastern Europe (ADC). As of its estab-lishment, in 2004, it is responsible for the implementation and administration of the total budget earmarked for bilateral ADC programmes (www.ada.gv.at).

Policy Approach

The framework priorities of the Austrian Development Cooperation (ADC) are en-

the Federal Ministry for Foreign Affairs in Three-Year Programmes.

the following sectoral focuses and themes derived from the Millennium Development Goals:

• Productive Sectors - Rural Development, MSMEs, Energy, and

Governance and Rule of Law, Development of Democratic Structures, Decentralization,

The document also determines the core programme of the Austrian Development with Eastern Europe setting the South-Eastern Europe (SEE) as a focus of the Austrian Development Cooperation. Thematic priorities determined on a regional level are:

• Education• Environment, water and energy• Strengthening the rule of law and civil society• Private sector development and improvement of institutional framework.

dialogue in all the partner countries of SEE, that form the basis for elaboration and

focuses in each case. The budget of the Austrian Cooperation with the Eastern Europe

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BILATERAL DONORS

to South-Eastern Europe.

Federal Republic of Austria in the Republic of Macedonia

Since 1998, the Republic of Macedonia is a priority country of the ADC. In the period -

ects in Macedonia. The guiding document that outlines the programme objective, strate-

is to contribute to a balanced social-economic development of Macedonia by contribut-ing to structural and institutional changes. The programme objectives will be achieved through a well-developed strategy based on the following components: Limitation of the regional differences in order to contribute to the stabilization, prevention and economic

thematic areas as well as cooperation with the relevant stakeholders.The Austrian Development Cooperation with Macedonia, in the period 2005-2007

rests on the following thematic priorities:

Environment, water and energy

Water and Waste Water The majority of the Austrian assistance is directed to the improvement of water supply

and wastewater systems, which are considered as basic conditions for development of economic activities. Special attention is given to the strengthening of institutional ca-pacities of the municipal enterprises in order to improve their economical and technical performances.

in 2006, aimed at improving the water and wastewater infrastructure in the municipalities of Krivogastani, Vrapciste, Cucer Sandevo and Caska.

Renewable EnergiesDevelopment of renewable energies is based on the development priorities of Mace-

donia, in line with the internationally set standards, the Kyoto Protocol, as well as an the Austrian know-how and experience in this sector. The focus remains on the area of geothermal energy. In the area of solar energy, ADC supports the development of na-tional production lines for solar water heaters. Future possible areas of cooperation are

Macedonia. So far, 4 projects have been implemented in the municipalities of Kocani and

Economy and Employment

Promotion of sustainable, socially balanced economic development is the core focus of ADC. The private sector and employment situation will be developed by strengthening the production capacities in the country. In addition, ADC provides support to improve

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BILATERAL DONORS

0.17 million. These projects are related to preparation of a Development strategy, Export Strategy and Debt Strategy of the Republic of Macedonia, as well as preparation of Study for Transformation of the Public Sector. Ongoing activities are the support of the Agency for Foreign Investments of the Republic of Macedonia with MIGA and the consultancy to the President of the Republic of Macedonia on an economic strategy through WIIWVienna Institute for International Economic Studies. In 2006, the installation of a Business

In addition, the possibility to establish public-private partnerships between the country partner, private investor and ADC will also be considered.

Regional Development

There is a great need for modernization of the physical infrastructure, strengthening of institutional capacities and improvement of education in all regions in Macedonia. ADC gives special emphasis to the support of poor regions with a potential for future devel-opment. By supporting the selected regions, ADC aims at contributing to the reduction of regional differences in Macedonia and hence to a the stabilization and prevention of

professional education are closely coordinated and implemented in the selected regions with local institutions and partners with additional activities for regional development.

activity.

Future Programmes

Education – Special emphasis is given to the improvement of the infrastructure and the increase of exchange opportunities at Macedonian universities, as well as to their institutional strengthening and the implementation of the Bologna process.

Regional Cooperationlines for South-Eastern Europe and therefore supports the economic strengthening and integration of the whole region in the European structures. Project examples: Investment Compact, ERISEE (Task Force Education and Youth) and the Balkan Case Challenge.

Know How Transfer Center – Supporting capacity building and trainings of public institution employees.

- Supporting the partnership between Austrian -

ment, education, democracy and human rights, public administration, social services and environment. 1

1

for European Affairs and the ministries, as well as the input provided by the donor

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BILATERAL DONORS

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FEDERAL REPUBLIC OF GERMANY


The bilateral and multilateral development cooperation of the Federal Republic of Germany is within the competence of the Federal Ministry for Economic Cooperation and Development - BMZ (www.bmz.de). The organisations commissioned by the Ministry for implementation of the development cooperation are the following:

- The KfW Entwicklungsbank (German Development Bank), is part of the

systems and environmental protection (www.kfw.de- The Deutsche Investitions und Entwicklungsgesellschaft mbH (DEG), the

German Investment and Development Company is part of the KfW group, with a task

and provides consultancy services and support for its clients across all sectors of the economy www.deginvest.de

- The Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) is an enterprise under private law that executes a wide spectrum of topics and tasks com-missioned by the German government within the framework of technical cooperation in a large number of developing countries (www.gtz.de

- The Deutscher Entwicklungsdienst (DED), the German Development Service

and promotes local organisations and self-help initiatives (www.ded.de- The Internationale Weiterbildung und Entwicklung gGmbH (InWent), the

Capacity Building International, Germany is an organisation for human resources devel-opment, that furthers training and dialog, addresses specialists, junior executives and decision-makers from the realms of the industry, politics, administration and civil society around the globe (www.inwent.org).

Furthermore, the Government funding supports another form of development coopera-tion, which comprises activities proposed by non-governmental organisations (NGO’s), these are carried out in the partner countries by political foundations, churches and a large number of other NGO’s. Despite the government grants they remain fully independent.

membership in many international organizations. Along these lines, one-third from the BMZ’s budget reaches the developing countries through multilateral channels.

Policy Approach

The German development policy takes its cue from the shared goals of the inter-national community: the Millennium Declaration and the eight Millennium Development

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BILATERAL DONORS

Goals (MDGs), the Monterrey Consensus and the Johannesburg Plan of Implementation. Germany’s strategy paper for realising these development goals, in particular the MDGs, is the inter-ministerial Program of Action 2015, which was adopted by the German gov-

Regional strategies bridge the gap between the overarching principles and aims of the BMZ and the individual country strategies. The Ministry has grouped the cooperation

Region.Country strategies are the central management instrument used in the medium-term

planning and steering of the German development cooperation. They are agreed within the governmental negotiations that take place about every two years, after what all deci-sions are set down in an internationally binding treaties. The framework and guidelines for these negotiations are provided in most countries by the national Poverty Reduction Strategy Papers (PRSP), the partner country’s priorities, as well as the priority areas of the German development cooperation. The German development cooperation is

within the negotiations. - The Financial Cooperation (FC) is one of the most important instruments of the

measures that are important for development and accompanied by reform processes - for instance, investments in education or health system, in infrastructure, environmental

-tion is implemented by the KfW Development Bank, providing long-term capital for the partner countries.

- The Technical Cooperation (TC) transfers technical, economic and organisational knowledge and skills. It is provided free of charge to the partner countries, and includes services as: secondment of consultants, trainers and instructors, experts, appraisers and

-

as well as training and upgrading for local specialists and executives. The bulk of the

Zusammenarbeit (GTZ) The budget of the Federal Ministry for Economic Co-operation and Development in

-ment has signalled the importance Germany attaches to development cooperation by making an international commitment to devote 0.33 percent of its Gross National Income

Economic Cooperation between Germany and Macedonia

The guiding documents for the Development Cooperation between Macedonia and

cooperation, while the Protocol after negotiations between the two governments is signed

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BILATERAL DONORS

from Germany has focused on: environment (including water supply and waste disposal), social infrastructure (including municipalities, professional training, strengthening of civil society), development of market economy (including banking sector, SMEs, modernization of agriculture, EU approximation). Within the technical cooperation Germany has been providing support for a large spectrum of issues: basic health services, rehabilitation of

enterprises, improvement of food control system, new economic legislation, water sector, agriculture, consumer protection, vocational training and EU approximation.

-tion of the Federal Republic of Germany and the Republic of Macedonia in the period from 2005 to 2007, within the following thematic areas:

- Economic Reforms/ Building Market Economy.-

nical cooperation in the Republic of Macedonia. Additional funds in the frames of the

of the questions related with the Programme for Water Works and Sewerage.According to this Protocol, the envisaged cooperation within the following thematic

areas will comprise:

Water Supply, Waste Water Treatment and Environmental Protection

The development cooperation will be focused mainly on support of the Macedonian municipalities’ competencies trough the Programme for Water Works and Sewerage and the Irrigation Programme for the Southern Vardar Region. Within the technical support,

of the communal services, which is also related to the thematic area of economic re-forms and building market economy. Projects comprising investments in water supply systems, wastewater treatment plants, solid waste disposal, irrigation and protection of the valuable environment, will continue to be implemented in the upcoming period. These projects are aimed to protect the valuable environment of Lake Ohrid and LakePrespa, to rehabilitate the existing irrigation schemes in the southern Vardar Valley, and to develop the water infrastructure in Prilep. An important feature of the involvement in

by the involved municipal enterprises and its support to the process.

Economic Reforms/Building Market Economy

Promotion of small and medium enterprises is the focal area for performing economic

modernization of the agricultural sector, private sector promotion, regional promotion of the economy and the employment, investment promotion, support for EU harmonization and implementation of EU Directives into the Macedonian Law.

Furthermore, activities supporting economic and social reforms, approaching EU and building market economy will be implemented through the Capacity Building In-ternational (InWent). The Centrum für Internationale Migration und Entwicklung (CIM)

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BILATERAL DONORS

locally, in order to support the development and attain the priorities agreed under the development cooperation.

Democratization/Civil Society

The development cooperation with Germany will continue to support the process of decentralization and improvement of the infrastructure and services for the citizens.

Social Infrastructure Fund. The technical cooperation will provide support for consumer protection throughout the country.

Additionally, focus will be placed on professional education, and socio-political edu-cation with support to NGO activities, in particular through the Friedrich Ebert, Konrad Adenauer and Fridrich Nauman Foundations.1

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JAPAN


-dalities implemented by different agencies:

1. Japan Bank for International Cooperation (JBIC) is responsible for imple-

various ministries, mostly the Ministry of Foreign Affairs (3. Japan International Cooperation Agency (JICA) is an implementation agency

( ). The technical cooperation not implemented by JICA is under direct

-nistry of Foreign Affairs (MOFA) and the Ministry of Finance (MOF) is realized through its extensive contributions and subscriptions to multilateral organizations.

Policy Approach

The document that sets forth the rationale, the objectives, and strategies behind

-sues and Peace-building, as well as Asia, as a priority region, as it is crucially important for Japan’s stability and prosperity.

JBIC was established in 1999 through the merger of Japan’s Export-Import Bank and the Overseas Economic Cooperation Fund (OECF), thus inheriting the purposes of both institutions: promotion of Japan’s trade and economic activities overseas and economic

loans, divided in two types:- ODA (Yen) Loans directly approved to the governments or government agencies

in the development countries. The Yen loans are aimedat economic and infrastructure

(OOF) disbursed to Japanese or to the development country companies, including for goods export credits.

The Grant Aid scheme provides the recipient country with non-reimbursable funds to procure facilities, equipment and services for economic and social development of the

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BILATERAL DONORS

country. Although the Basic Design Study for the Grant Aid is conducted by JICA, the implementation is done by the Government of the recipient country.

Founded in 1974, JICA is an implementation agency for technical cooperation, focusing on institution building, organization strengthening, and human resources development that will enable developing countries to pursue their own sustainable socio-economic development. The technical cooperation is implemented through counterpart training in Japan, provision of experts, project base technical cooperation including provision of equipment, development studies, provision of Japanese volunteers, etc. JICA is also responsible for implementing natural disaster aid.

Japan in the Republic of Macedonia

Yen Loans - JBIC

In 2003, JBIC has approved one Yen loan of Yen 9.6 billion (app. US$ 80 million) that will be implemented through the Mitsubishi Bank. The loan is aimed at construction of the hydro-system Zletovica, more precisely, for the dam with backup facilities and water-supply facilities (I phase), irrigation of 2.900 ha agricultural land (II phase) and construction of 3 hydro-power plants (III phase). The repayment period is 25 years with

be withdrawn in 2006.

Grant Assistance

Starting from 1995, through several modalities, Japan has provided grant assistance amounting to Yen 9.4 billion (app. US$ 84 million):

1. General Grant Assistance:- General Project Grant Aid in the amount of Yen 4.5 billion, of which Yen 3.7

billion in the health sector and Yen 0.8 billion in the transport sector. This aid modality will no longer be available for the Republic of Macedonia.

- Non-project support (Balance of Payment Support) in the amount of Yen 2.6 billion (5 programmes) out of which compensation funds for SME support are generated within the Macedonian Ministry of Finance.

- Grant Assistance for Grassroots Human Security projects (GGP) Programme in the amount of Yen 0.3 billion. The GGP programme supports small projects of NGOsand municipalities in the areas of primary and secondary education, vocational training,

for handicapped children, family planning education, improving the status of women and water-supply.

- Assistance for scholarship and research, out of which 8 scholarships are pro-vided for Macedonian postgraduate students.

2. Grant Assistance for Culture – Yen 50.95 million are provided for the Macedonian Philharmonic Orchestra and for the Macedonian Ballet.

3. Emergency aid – after the Kosovo crisis, Japan has provided equipment for the

4. Assistance for Increasing Food Production (2nd Kennedy Round [2KR]- Japan has provided 5 such programmes since 1997 in the total amount of Yen 1.99 billion. This assistance is no longer available for the Republic of Macedonia.

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BILATERAL DONORS

Technical Cooperation - JICA

In 2003, JICA has passed medium-term plan on technical cooperation between Ja-pan and Macedonia. The document determined the health, water supply management, industry promotion, education and pollution control as priority areas for cooperation.

According to the revision of the medium-term plan for 2005, JICA is accepting par-ticipants for trainings in Japan, sending experts and providing equipment in the following priority areas:

- Market economy promotion – through studies and transfer of Japanese technol-

- Human Security – projects aimed towards improved maintenance of medical equipment, services in the primary health centers in rural areas, medical treatment

- Environment protection (water supply management) – projects aimed towards enhanced administrative capacities for pollution control and monitoring, as well as im-proving the water-supply and wastewater treatment.

Starting from 1996, within this component Japan has provided funds amounting to Yen 2.2 billion (app. US$ 20 million) for over 180 individual trainings in Japan, 20 experts in the Republic of Macedonia in the areas of company restructuring, environment, pure production, SMEs and tourism, 4 development studies in the areas of water-supply, air and land pollution monitoring and management, as well as for the Digitalizing Macedo-nian Map Study.

The policy dialogue between Japan and Macedonia Governments also sets out the possibility to send business delegations in Japan and to organize seminars and trade fairs through the organisation for external trade (Japan External Trade Organization/JETRO).1

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REPUBLIC OF ITALY

Institutional Set-Up

The coordination of the Italian development programmes and initiatives is under the responsibility of the Ministry of Foreign Affairs (www.esteri.it), while the management institutions are:

• Steering Committee For Development Cooperation is the main management

• Directorate General For Development Co-operation (DGCS) within the Min-istry of Foreign Affairs (MFA), is responsible for bilateral and multilateral development

• Directorate General for European Countries (DGEU) within the MFA, is responsible for the cooperation programmes in the Western Balkans area, funded by a

• Central Technical Unit (UTC) supports DGSC activities with technical advice

• , set up within various Italian Embassies in developing countries, are composed of UTC experts and local consultants.

Policy Approach

1987 and Law 84 of 2001), and by the Guidelines for a New Policy on Development Co-operation approved by the Inter-ministerial Committee on Economic Planning (CIPE) in 1995. However, besides the legal documents and guidelines, the rationale of the Italiandevelopment cooperation also emerges out of the current reality. According to the above-mentioned, the priorities for international action of Italy are within the following areas:

diseases, protecting the environment and creation/rehabilitation of infrastructure, gender equality, support to minors and the handicapped, support to private sector development, housing rehabilitation, institution building and support to decentralization, development of information technology and e-government, support to disadvantaged ethnic groups and support to border management. Directorate General for Development Cooperation also provides post-graduate scholarships to students from other countries.

In addition, Italy has set up several trust funds with the international agencies such as the one for e-governance, set at UNDP, UNDESA, Gateway Foundation/World Bank

European Initiative Trust Fund with the EBRD for implementation of projects with regional dimension.

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BILATERAL DONORS

-

103 million. The main strategic goals of the Law are: institutions and security strengthen-

created with the purpose of monitoring the chemical-physical and radioactive pollution in the involved countries.

Republic of Italy in the Republic of Macedonia

Italian Government has provided support to the Republic of Macedonia ( ) in the sectors of great importance for economic and social development such as health, water and environmental protection infrastructure and small and medium size enterprises as well as emergency humanitarian

million in the period 1999 and 2001. In addition to the aforementioned, Italy has also provided support to the Macedonian

For each programme agreed, the Government of Italy and the Government of Mac-edonia sign separate Bilateral Agreements.

Emergency Initiatives

million.

Emergency Reconstruction and Rehabilitation project implemented by UNDP. The project is aimed at addressing the urgent need to rehabilitate the water supply system in the city

1.3 million were pledged for housing rehabilitation and support to the Macedonian Health System in 2001. The remaining funds were pledged trough the following InternationalOrganizations: UNICEF, WHO, FAO.

Environmental protection

In 2003, the Italian Government started the implementation of the Radika River Valley Environmental Protection Programme amounting to EUR 6.8 million. The project objec-tive is improving the living conditions of the local population, preventing emigration from the region while preserving the natural characteristics of the site, which is a national

solid waste management system: construction of 6 wastewater treatment plants and

local communities.-

Also, Italy supports the strengthening of the Macedonian Environment Ministry via

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BILATERAL DONORS

Health sector

Italy is one of the rare donors active in the health sector. In 1999, it provided support

care system services through rationalization of the management system and moderniza-tion of biomedical technology park.

Italy is also an active supporter of the World Health Organization Programmes

Programme for support to the drug and alcohol addicts and Project for de-institution-

one of the emergency programmes implemented in 2003-2004 by the Italian Coopera-tion also supported the rehabilitation of hospitals and the supply of medical equipment.

E-Government

In order to establish sound revenue system that provides electronic services to citizens, business and government, the Italian Government, through UNDP, approved approximately US$ 1 million for E-Accounting Programme in Macedonia. The programme includes design and introduction of new information system for the Public Revenue

-tions on income and property taxes, as well as the decentralization process of the public administration.

Small and Medium Enterprises

As great supporter of the private sector development, the Italian Government approved

of former crisis areas. The programme is still underway.In addition, the Italian Institute for Foreign Trade (www.italtrade.com) as government

agency entrusted with promoting trade, business opportunities and industrial cooperation between Italian and foreign companies also supports SMEs development in Macedonia. It offers business services and information, educational services and scholarships.

Agriculture

that aims at enabling agro-food supply chain actors to leverage on the existing and emerging market opportunities by linking primary producers to markets. In addition, the Mediterranean Agronomic Institute of Bari - CIHEAM is implementing regional project within which the Balkan farmers are provided with training and assistance tools for the enhancement of fruit and vegetable productions.

Education and culture

As part of the Italian support to the implementation of the Framework Agreement, a --

tion and valorization of national cultural heritage is planned. In this sector, Italy has also

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BILATERAL DONORS

provided support to primary education involving students and teachers (among Macedo-nian, Albanian and Turkish groups) in 26 schools, in the primary schools in the region

by the Italian NGO CISS.-

ture.

Decentralized cooperation support

Within the decentralized cooperation that refers to the projects funded by local gov-ernment in the regions and municipalities in Italy, the Italian region of Toscana and the Ministry of Foreign Affairs support the regional project Local Self-governments Promot-ers for Development that seeks to establish a network (SEENET) between cities in the South-Eastern Europe. The City of Skopje is one of the 21 local entities participating in the Programme.

Support to disadvantaged ethnic groups

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KINGDOM OF NETHERLANDS


The development cooperation of the Kingdom of the Netherlands is regulated both by the Ministry of the Foreign Affairs and the Minister for Development Cooperation.

The Directorate-General for International Cooperation (DGIS) is responsible for de-velopment cooperation policy, its coordination, implementation, and funding. An important DGIS focus is the coherence between Dutch and EU policy on developing countries.

The Directorate-General for Regional Policy and Consular Affairs (DGRC) collects and manages knowledge about countries and regions, and it works with the missions to develop integrated policy on them. It thus guides the regional departments and the Ministry’s network of missions.

The DGIS and the DGRC both report to the Ministry of Foreign Affairs and to the Minister for Development Cooperation (www.minbuza.nl/).

Policy Approach

The new Netherlands development policy as per 2003 is outlined in a policy memo-

cooperation of the Kingdom of the Netherlands with 36 partner countries, including the Republic of Macedonia, in the period until 2015. The eligibility criteria for using the funds are the developing country need for aid, as well as its policies, both economic and socio-political, and its stance on human rights.

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in order to contribute to the MDGs in 2015.

Kingdom of Netherlands in the Republic of Macedonia

The Kingdom of the Netherlands is the largest bilateral EU donor in the Republic of

integration, the Republic of Macedonia is considered as a unique partner country for the Netherlands. In addition, Macedonia is part of the Dutch World Bank/IMF constituency.

The development cooperation with the Republic of Macedonia is realized via the Embassy of the Kingdom of the Netherlands in Skopje as a joint administrative struc-ture of the Ministry of Foreign Affairs and the Ministry for Development Cooperation (www.nlembassy.org.mk).

Within the Multi-Annual Strategic Plan (MASP) on the Netherlands development cooperation with Macedonia in the period 2005–2008, the following strategic priorities were determined:

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BILATERAL DONORS

• To contribute to increased economic and human development. The Dutch assistance to Macedonia consists of balance of payment assistance as

projects in the following priority areas:

5. Culture and development.

funding, i.e. funds disbursed and administered through the Netherlands Embassy in Skopje. Various other instruments, such as the PSO/M and fellowship programme, are managed directly from the Netherlands, with the Embassy having an advisory role. The Embassy also administers a small Embassy Projects Programme, mainly supporting local NGOs).

Education

Starting from 1997, the Netherlands has become one of the Republic of Macedo-

20 million. According to the recent realignment of policy priorities, the previous focus on rehabilitation of basic school infrastructure, capacity building of parent councils and support to the Assessment Unit of the Ministry of Education and Science, was redirected to support the structural reform in the education sector. A special focus is given to the

people from disadvantaged groups and reducing gender disparities through education.

10 million to the ongoing World Bank Education Modernisation Project supporting the structural reform of the (basic) education.

education may still be considered as long as they clearly demonstrate contribution to the equitable access to higher education and enhanced co-operation between institutes of higher learning in Macedonia.

Good Governance

In addition to Education, Good Governance is one of the priority themes in develop-ment co-operation between the Netherlands and Macedonia and it covers four areas:

• Public Finance• Decentralisation• Rule of Law• Interethnic relations and stability

Public Finance

Governance in close co-operation with the World Bank. The strategic objectives in this

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BILATERAL DONORS

Ministry of Finance, focused on EU accession. The main activity is the Trust Fund at the World Bank in the amount of US$ 3.8 mil-

of technical assistance from the Dutch Ministry of Finance and related organisations (tax administration, customs, PRO etc.)

Furthermore, starting from 1999 to 2004 inclusive (except 2002) the Netherlands has

support has been and will be subject to the progress made in the public sector reforms and a sound macro economic policy.

During 2005, co-operation via the modality of bilateral twinning has been established

Customs Administration and Customs North in the Netherlands.

DecentralisationAs one of the highest priorities in the implementation of the Ohrid Framework Agree-

ment, the decentralization process has been given a lot of attention in the development cooperation of the Netherlands and the Republic of Macedonia. Further to the co-funding of the World Bank projects aimed towards development of local communities via interven-tions in the areas of culture, youth and (social) infrastructure in total amount of US$ 3.5 million, the Netherlands also supports the decentralisation process in Macedonia with a

Co-operation Agency of the Association of Netherlands Municipalities. This co-operation will be continued through a bilateral twinning between VNG and ZELS from 2005–2008

Rule of LawThe Netherlands focuses on two themes in the area of the Rule of Law: police reform,

focusing on community policing (via OSCE’s Police Development Unit, project ended in

supporting the activities of theTransit Shelter Centre.

Interethnic relations and stabilityThe good interethnic relations and lasting stability are consistently mainstreamed

in all activities supported by the Dutch Government. However, since certain groups (former combatants, media, university students) and events (elections, referenda) could potentially have a negative impact on interethnic relations and the stability in the country,

and events. The ongoing project on Re-socialisation of Ex-Combatants in Macedonia implemented by the Macedonian Center for International Cooperation (MCIC) is one

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BILATERAL DONORS

Private Sector Development

As of 2004, the Netherlands is focused on private sector development as a policy priority. Strategic objective in this sector is poverty reduction by stimulating entrepre-neurship and employment in Macedonia’s productive and service sectors. To achieve this, instead of direct support to companies and businesses, emphasis is given to the

-

strengthening of entrepreneurial skills.The Netherlands was already highly active in the private sector through its support

-

and ProCredit are providing access to credits for micro and small enterprises, as well

best practices to the banking sector. The Netherlands currently supports a pilot Cadastre project in Kumanovo in co-operation with the State Bureau for Geodetic Works and the World Bank.

Rural Development

The Netherlands is phasing out its involvement in the agricultural sector in Macedo-nia. Further to the US$ 12 million supporting grant to the World Bank project aimed at physical rehabilitation and institutional reform of the irrigation sector in Macedonia, no new activities in agriculture will be initiated, unless clear linkages can be established with the policy on private sector development.

Culture and Development

As of 2004, the Embassy has a new program on culture and development, with pri-mary aim to support traditional culture in Macedonia (folklore and crafts) and promote the cultural wealth and diversities of the country. The aim of this program is also to sup-port culture as a tool for development and sustainable income generation. There are

0.25 million.

The Small Embassy Projects (PKP) program is intended to support local initiatives of Macedonian NGOs, excluding public infrastructure, emergency aid, regular running

Fellowship Programmes

Netherlands Fellowship Programmes (NFP)The overall aim of the Netherlands Fellowship Programmes (NFP) is to help alleviate

qualitative and quantitative shortages of skilled human resources within the framework of

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BILATERAL DONORS

sustainable capacity-building. The NFP target group consists of mid-career professionals who are nationals of one of the 57 selected countries, including Macedonia. While fel-lowships are awarded to individuals, the need for training must occur within the context of the local organisation (governmental, private and non-governmental) for which the

Netherlands Fellowship Programme - Macedonia EU Studies

with the Government of the Republic of Macedonia, the Netherlands has made available a limited number of scholarships for masters’ degree in EU-related disciplines in the Netherlands, the College of Europe in Belgium and its Polish branch. The target group consists of present or future civil servants from the Republic of Macedonia who are willing

after obtaining a degree. The programme is executed by the Secretariat for European Affairs (SEA) from the Macedonian side and NUFFIC from the Netherlands side.

PSO/M Programme

The Programme for Economic Cooperation (PSO) is an assistance aimed to sup-port the transition process to market-oriented economy in eleven countries1 in Eastern Europe, via transfer of Dutch business expertise, technology, goods and services in the sectors in which the Netherlands is among the leading countries in the world.

27 of which as support to the private sector, 2 studies and 2 programme/institutional

Within the general assistance programmes restructuring, realized by the Netherlands at the end of 2004 / beginning of 2005, the PSO was integrated in the new Programme for Cooperation with Emerging Markets (PSOM). The PSOM is operational from July 2005 and it is aimed at supporting 42 countries. The total annual budget of the programme

2

1 Republic of Macedonia, Republic of Bulgaria, Republic of Croatia, Republic of Albania, Republic of Moldova, Romania, Bosnia an Herzegovina, Serbia and Montenegro, Russian Federation, Kazakhstan, Ukraine.

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KINGDOM OF NORWAY

Norwegian Assistance to the Western Balkans

Western Balkans. The purpose of this assistance is to continue the systematic Norwe-gian support for processes related to regional stabilization and Euroatlantic integration. Emphasis is put on support for the implementation of EU’s Thessaloniki agenda, on the partner countries’ endeavours to reach European standards in each segment of the reform processes, with focus on democratic development, capacity building and economic growth.

Norwegian Assistance to Macedonia

Total Norwegian bilateral assistance to the Republic of Macedonia for 2005 amounted

also allocated directly from funds available for regional purposes.Overall objective of the Norwegian bilateral assistance is to support Macedonia’s

integration in the Euroatlantic structures. Implementation of the Ohrid Framework Agree-ment is an important precondition for the wider integration process. Emphasis is put on

and implementation of the Stabilization and Association Agreement through strengthening democratic institutions, rule of law, human rights, as well promoting sustainable economic and social development. Furthermore, the assistance shall contribute to developing stronger links and relations between institutions and organisations in Macedonia and Norway.

In addition to focus sectors in the Norwegian assistance, emphasis is put on geo-graphical and ethnic balance. The decentralisation process, strengthening of public

democracy building, health and education are among the prioritized sectors. Macedonian authorities (see bilateral project co-operation programme below), in-

ternational organisations, Norwegian and Macedonian NGOs are among the relevant channels of the Norwegian assistance.

-located by the Ministry of Foreign Affairs in Oslo, Section for Western Balkan Affairs. ([email protected]).

Norwegian Embassy in Skopje ( ) administers a fund of ap-

available from the Embassy.

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BILATERAL DONORS

Based upon a wish to heed the priorities of the Macedonian Government, Norwegian authorities initiated a bilateral project co-operation programme with the Macedonian authorities in 2004. The intention is also to provide for appropriate capacity building through a participatory process of assessment of priorities and priority needs with the direct participation of various government institutions in Macedonia. The Secretariat for European Affairs and the Norwegian Ministry of Foreign Affairs are key partners in the implementation of the bilateral programme. They jointly decide upon the focus sectors for the bilateral project co-operation programme, based upon the strategic priorities of the Government of the Republic of Macedonia, as well as the Norwegian policy regarding overall assistance to Macedonia. Goals for the bilateral project co-operation programme

All projects with Macedonian central and municipal authorities are, in principle, chan-nelled through this co-operation programme.

The level of funding available for the bilateral programme, as provided in the signed -

sistance to Macedonia. For 2005, the bilateral project co-operation programme amounted

How to Apply for Funding from Norwegian Programme for Bilateral

The programming process for the Norwegian Programme for Bilateral Project As-sistance is launched with initial discussions early in the year between the key partners. The intention of this meeting is to decide on focus sectors for the bilateral project co-operation programme for the coming year. Secretariat for European Affairs, through an

chosen sectors to submit applications to enter the selection process.State institutions, public entities and non-governmental organizations in the chosen

sectors shall approach the relevant line ministries with project ideas/projects. These are initially processed in the line ministries based upon their relevance and contribution to set sectoral strategies and action plans. If prioritized, these proposals are forwarded to SEA for further processing based on their relevance and contribution to set strategic priori-ties of the Government. Upon decision by the Committee of Ministers for Coordination of Foreign Assistance, chaired by the National Aid Coordinator (Deputy Prime Minister in charge of European Integration), appropriate project documents are prepared in line with Advisory Guidelines of the Norwegian Ministry of Foreign Affairs. Final selection of projects is done jointly by the Secretariat for European Affairs and the Norwegian Ministry of Foreign Affairs.

For more information of principles and mechanisms of functioning of Aid Coordination System, please see www.sep.gov.mk

For details and information on Norwegian Programme for Bilateral Project Assistance, you can forward your requests to [email protected].

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SWEDEN


Ministry for Foreign Affairs (MFA) and the Swedish International DevelopmentCooperation Agency (Sida), a government agency under the Ministry, are the main actors in the Swedish development cooperation. MFA states the overall priorities and Sida formulates and decides upon the development cooperation programs in the partner countries (www.sweden.gov.se and www.sida.se). Multi-annual cooperation strategies, adopted by the Swedish Government, outline the priorities for Swedish bilateral assist-

As other Swedish government agencies, Sida works independently within a framework laid down by the Government and approved by the Swedish Parliament, specifying, inter alia, the countries with which to work, the budget frames and the overall orientation of the assistance. In addition to bilateral cooperation with individual countries, Sweden al-locates about a third of its aid budget to multilateral organizations, such as the UN, the EU and the World Bank.

Policy Approach

Swedish Policy for Global Development was approved by the Swedish Parliament in December 2003. It presents an integrated policy for equitable and sustainable global development that applies to all policy areas. However, development cooperation has a special role in this and its overarching goal is to help create conditions that will enable the poor to improve their living conditions. In Central and Eastern Europe, the EU integration process is seen as a central means to achieve this goal.

Sweden through Sida has more than 120 partner countries in Africa, Asia, Latin

programmes of cooperation are elaborated. Within the framework of development co-

gender focus, aid effectiveness, anti-corruption and HIV/Aids prevention.Development assistance will be increased to one per cent of GNI in 2006. This means

that development assistance will amount to just over SEK 28 billion.

Sweden in the Republic of Macedonia

Sweden has been present in Macedonia since 1999 and is currently to adopt its 3rd Cooperation Strategy with Macedonia, covering the years 2006-2010. Total assistance

Stabilization and Association process (SAP) provides an overall framework for Swedish development cooperation with Macedonia.

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BILATERAL DONORS

Concentration of the Swedish assistance is sought in the new Cooperation Strategy, in line with the Paris Agenda on Aid Effectiveness. The main focus of Swedish assistance will be directed towards agriculture and economic development. The objective here is to contribute to a sustainable transformation of the agricultural sector with a clear sector perspective, in line with European requirements. The support should at the same time contribute to improving the living conditions of poor women and men in the rural areas during the foreseen restructuring of the sector.

-mentally sustainable development, as well as a limited number of projects that promote human rights and social cohesion, will receive Swedish assistance.

areas and to project activities determined in annual country plans.

Agriculture and Economic Development

The support activities in this area include, for example, establishing a Collateral Guarantee Fund facilitating access to bank credits for SMEs, advice services to SMEs and agricultural credits (IFAD). Grant support to the reform of the cadastre system is extended within a World Bank project.

In order to enhance the capacity for analysis and policy making, support has been extended to agricultural statistics and to academic exchange between Agriculture Uni-versities in Sweden and Macedonia, including an agricultural sector analysis providing the groundwork for future negotiations. Assistance is also provided for improving the national state extension service and for upgrading the food quality infrastructure in the country, as well as in the region. Furthermore, the Farmer’s Federations in Sweden and in Macedonia are engaged in bilateral cooperation.

In the period from 2003 to September 2005, the total value of assistance granted in

Sustainable Development (Environment)

Support is being provided for the development of a National Strategy for Sustain-able Development, as well as, for building local capacity for devolved environmental responsibilities by developing Local Environmental Action Plans in six pilot municipalities. Plans currently exist for engaging in environmental statistics, chemicals legislation and institutional cooperation, involving the Swedish National Environmental Agency, as well as civil society support, to improve urban environment.

Local democracy projects focusing on the village level, and the solving of common infrastructure problems with own and municipal efforts, has proved a valuable comple-ment to projects focusing on decentralisation and capacity building at local level.

Disbursed means in the period 2003 to September 2005 was about SEK 16 million

to increase.

Human Rights and Social Cohesion

The main part of the Swedish support to civil society is channeled through three Swedish organizations working on non-discrimination, media, human rights and youth (Swedish Helsinki Committee, Olof Palme International Center) and women empower-ment (Woman-to-Woman), which cooperate with the local NGOs. Support has also been

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BILATERAL DONORS

directed towards promoting interethnic relations, primarily targeting youth and children. Activities include, for example, bilingual kinder-gardens (Mozaik), the TV-series ‘Nashe Malo’ and theatre plays, football schools for all, youth leader trainings (Forum Syd) and extra-curricular activities (School of Tolerance). As concerns the support to minorities, the development of a national Roma strategy is supported, as well as Roma policy groups.

Sweden supports efforts to combat HIV/AIDS through improving the knowledge, at-titudes and practices of high-risk population. Information and communication activities to prevent the spread of HIV/AIDS in the countries of the region are implemented at regional level.

The support in this sector from 2003 to September 2005 amounted to around SEK

consolidated and a relative decrease is foreseen.1

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SWITZERLAND


Two agencies are responsible for the formulation and implementation of the Swiss development cooperation policy:

• Swiss Agency for Development and Cooperation (SDC) is part of the Federal Department of Foreign Affairs, supporting governance, economic and environmental programmes, and coordinating Switzerland’s development policy (www.deza.admin.ch

• State Secretariat for Economic Affairs (SECO) is the Switzerland’s compe-tence centre for all core issues relating to economic policy. In addition to the domestic policy and the foreign trade policy, it is also involved in efforts to reduce poverty in the form of economic development assistance (www.seco-admin.ch).

accounting for about one-third of ODA. They both come under the Federal Law of 1976 and thus operate within the same legal framework for international development co-op-eration, but do not have common operational strategy.

Policy Approach

Each of the agencies has their own objectives, instruments and means. SDC has its own Guiding Principles and 2010 Strategy drew up in June 2000, that focuses on the fol-

subdivided into four branches: bilateral development co-operation, multilateral develop-ment co-operation, cooperation with Eastern Europe and CIS and humanitarian aid and the Swiss Disaster Relief Unit.

The overall 2006 Strategy, adopted by SECO in 2000, sets the framework around which the economic and commercial measures will be based. SECO seeks to promote sustainable economic growth in associated countries by supporting stable macroeconomic conditions, encouraging investment and trade and by building a basic infrastructure, in order to foster the integration of these countries in the world economy. Development of the private sector is key element in the creation of jobs and improvement of the living conditions, and forms the basis of SECO’s approach.

Switzerland in the Republic of Macedonia

Switzerland is active in the Republic of Macedonia since 1992, starting with the contribution to UNPREDEP mission in Macedonia, to policy development in sustainable development and SME sector, as well as to settling Macedonia’s arrears with the World

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Bank. In 1996 Macedonia was given a priority country status for development coopera-

the Kosovo refugee crisis, and the Swiss Cultural Programme started its activities. In the 2003, the Political Affairs Division IV of the Ministry of Foreign Affairs opened the regional

Montenegro, Bosnia and Herzegovina, and Kosovo. Swiss cooperation is implemented jointly by SDC and SECO, both represented

( ). SDC and SECO headquarters are responsible for stra-tegic choices, making funds available and backstopping the COOF, while COOF is the interface between the strategic and operational levels and between the implementing agencies in Switzerland and Macedonia, and it is responsible for the implementation of all activities under the various domains.

Starting from 2000, SDC/SECO develops individual development strategy for Mac-edonia. The ongoing strategy, determined in the 2005-2008 Country Programme focuses on three priority areas and two cross-cutting themes:

Governance

Support for the establishment of a system of governance based on democratic principles by promoting: dialogue between state and civil society, better mutual under-

media environment.

Basic Infrastructure and Social Services

Support for the development of basic infrastructures and access to sustainable social services at the local level with the focus on the most vulnerable people, by improving infrastructures related to water and promoting participative decision-making mechanisms at the local level with a view to developing social services and basic infrastructures at the municipal level.

Sound Economic Development

Support for sustainable economic development by promoting: jobs and businesses, trade and investments, social dialogue and viable economic approaches from the en-vironmental aspect.

Transversal themes

Gender and Stabilization by regional integration are the cross-cutting themes in the Swiss development cooperation, aiming towards improving equitable access by men and women to all social, economic and political spheres through projects and programmes, as well as towards maintaining ethnic diversity and good relations with neighbouring countries.

Mandate of SECO is also represented in the:

Swiss Organization for Facilitating Investment (SOFI)Apart from information dissemination (through Internet, conferences, missions) on

investment conditions and opportunities, SOFI provides advice to enterprises in preparing

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partners in developed countries (match-making). To encourage and facilitate preparation and initial phases of new investment projects, SECO provides loans to Swiss entrepre-

number of these loans concerns projects in Macedonia.

Swiss Import Promotion Programme (SIPPO )SIPPO is mandated by SECO to promote exports from emerging markets and mar-

kets in transition to Switzerland and the EU. By using trade promotion programmes and the associated matchmaking instruments, SIPPO helps SMEs in emerging markets and markets in transition to enter the Swiss and EU market, and provides Swiss importers

Macedonia, SIPPO is active in the food, wine, textile and IT industries sectors.

In addition, Swiss support to Macedonia also encounters the following:

Swiss Cultural Programme Macedonia/PRO HELVETIASwiss Cultural Programme Macedonia/PRO HELVETIA Skopje supports projects by

culture - music, theatre, dance, literature and visual arts. It is working on a program to support Macedonian culture, the process of establishing and developing independent organizations, the enrichment of bilateral and multilateral collaborations in the cultural sphere in Macedonia and the region.

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gallery shows artists and expositions from Switzerland or local cultural production that is of cultural interest, but cannot be exhibited by commercial galleries.

Regional Peace Building OfficePolitical Division IV of the Ministry of Foreign Affairs (PD IV) supports programmes

multilateral initiatives and to the Swiss Expert Pool. The programmes aim at peace promotion, reconciliation and establishment of democratic systems by promoting free media and political participation.

The programme in Macedonia focuses on three areas of activity:

• Democracy and Human Rights, and• Dealing with the Past.

In the period 2005-2008, Swiss development cooperation with Republic of Macedonia 1

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UNITED KINGDOM OF GREAT BRITAINAND NORTHERN IRELAND


The United Kingdom foreign assistance is provided by the Department for Interna-tional Development (DFID), and

- Department for International Development (DFID) ( ). is part of the UK Government that manages Britain’s aid to developing countries and works on reducing poverty around the world. DFID has two headquarters (in London and East

world-wide, with a budget of nearly £4 billion in 2004. - (www.fco.gov.uk). The purpose of the

FCO is to work for the United Kingdom’s interests in a safe, just and prosperous world.

Missions to international organisations. They are linked to the headquarters in London in a single, global network that employ almost 6,000 UK-based staff and 10,000 local staff. From its total budget of just over £ 1.5 billion, the FCO also funds the BBC World Service and the British Council, and pays UK contributions to international organisations.

Policy Approach

Department for International Development (DFID) works in partnership with govern-ments, civil society, the private sector and others. In addition to its work as a bilateral

multilateral institutions, including the World Bank, United Nations agencies, and the European Commission.

providing development assistance through the following programmes/funds:1. Global Opportunities Fund (GOF)2. Drugs and Crime Fund (DCF)3. Good Government 4. Scholarships and Fellowships5. Public Diplomacy Challenge Fund

The British Council and BBC World Servicegrants from the FCO. The British Council promotes British values, ideas and achieve-ments and strengthens relations between the UK and other countries. It is present in 109 countries. The BBC World Service provides international news, analysis and information in English and 42 other languages through a global network of correspondents. It has complete editorial independence. Wilton Park is an Executive Agency of the FCO, which runs conferences on key international policy challenges at its centre near Brighton, on the south coast of England.

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BILATERAL DONORS

The conferences cover wide range of major international issues and attract high quality participation from around the world. They are open to all with expertise to share.

United Kingdom in the Republic of Macedonia

United Kingdom’s assistance to Macedonia since 2000 amounts to more then £5 million managed by the Department for International Development (DFID) and the British Embassy in Skopje.

Department for International Development (DFID)

DFID has operated in Macedonia since 1995, and since February 2001 has been providing technical assistance as support for the Public Administration Reform (PAR) at

development aid to the poorest countries, DFID is withdrawing from involvement in a number of medium-income countries. The implication for the Republic of Macedonia is that there is no bilateral aid under DFID programmes after end-March 2005. DFID will

prevention and other forms of regional assistance.

Foreign & Commonwealth Office (FCO)

The British Embassy in Skopje (www.britishembassy.gov.uk/macedonia) works with international and local partners to realise projects that help meet the Foreign and

managing and carrying out distinct projects to improve the lives of Macedonians and Macedonian society, in addition to its more traditional diplomacy work. The Embassy

-lowing funds:

The Global Opportunities Fund (GOF) aimed at actions in areas of Democracy and Participation, Justice and Home Affairs and Functioning Market Economy.

The Public Diplomacy Challenge Fund (PDCF) which aims to encourage imagina-tive and innovative public diplomacy activity to project the modern, creative, multi-ethnic and diverse UK around the world.

is a joint FCO/MOD/DFID fund aimed -

terethnic relations areas.The Directorate Programme Budget (DPB) is a fund available for small-scale

projects in Institution Building, Good Governance and Participatory and Accountable Democracy, Minority Rights, Intra-Regional Co-operation, implementation of SAA/SAP requirements and European Partnerships, approved by the Embassy’s parent Depart-ment in London.

The FCO and the Embassy are supporting projects in the following areas:

Supporting Democracy and Good Governance

Provision of technical assistance and support to state institutions to assist them in the legislative, administrative, operational and policy work demanded by the process of EU integration and NATO membership.

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BILATERAL DONORS

Decentralisation – Participation and Accountability

Support to decentralisation through implementation of projects at local level in the areas of economy and jobs, rule of law, community-based services and harmonious interethnic relations.

Economic Development

Assistance to local/regional administrations to build necessary legal framework, structures and skills to develop economic development plans and prepare economy-promoting initiatives.

Culture, Media, Sport and Society

Promotion of UK as open and tolerant society, proud of its cultural diversity and respect of human rights.1

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UNITED STATES OF AMERICA


US Department of State (www.state.gov) and United States Agency for Interna-tional Development (www.usaid.gov) are two separate organizations under the Sec-retary of State, that collaborate in order to ensure focus on both international short-term diplomatic issues, as well as longer-term institutional and capacity building efforts.

Policy Approach

U.S. President Bush has placed development at the forefront of U.S. national security and foreign policy. American diplomacy and development assistance will continue to be powerful drivers of political and economic freedom around the world. Promoting islands of stability in the developing world and reducing the roster of failing states are top priori-ties of U.S. international policy.

The Department of State and USAID have agreed four strategic objectives as spelled out in the joint Strategic Plan for Fiscal Years 2004 to 2009:

1. Achieve Peace and Security trough advancing regional stability, counterterror-ism, homeland security, as well as reducing weapons of mass destruction, international

2. Advance Sustainable Development and Global Interests through promoting de-mocracy and human rights, economic prosperity and security, social and environmental

3. Promote International Understanding through public diplomacy and public af-fairs, and

4. Strengthen Diplomatic and Program Capabilities through management and organizational excellence.

The USA in the Republic of Macedonia

U.S. Mission in Macedonia includes the United States Agency for International Devel-opment (USAID), the U.S. Department of State and professionals from several important U.S. Government Departments and agencies. For example, the U.S. Department of Treasury works with the Government of Macedonia on taxation and budget issues. The U.S. Department of Justice supports programs to develop law enforcement agencies,

-ment of Homeland Security cooperates with Macedonian authorities on border safety and customs, and the U.S. Department of Defense supports programs to modernize Macedonia’s defense capabilities and enhance their ability to operate with the armed

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BILATERAL DONORS

forces of other countries. Finally, U.S. citizens volunteer their services through the U.S. Peace Corps and are serving across Macedonia.

USAID Mission in Macedonia works in three main areas: promoting accelerated economic growth, supporting the development of democratic institutions, and helping educate Macedonians for a modern economy.

The American people, through USAID, have invested more than $450 million in Macedonia since 1993. More than 30 projects worth more than $35 million a year are

it comes to $150 million.

Economic Growth

Improving Macedonia’s employment levels is a major goal of the USAID mission.

strong potential for increased growth and employment. USAID is focusing on small and medium-sized enterprises (SMEs) to develop local and export markets and helping SMEs adopt information technology applications that support their competitiveness and growth.

Funding is often a major constraint to many businesses in Macedonia. USAID has

created. USAID has helped the FULM savings house to mobilize more than $1.8 mil-

USAID assisted Macedonia to accede to the World Trade Organization (WTO) in April 2003 and supports the Government of Macedonia as it harmonizes laws and practices with its WTO commitments. USAID helped Macedonia prepare a new Company Law, compatible with the European Union commercial legislation, and is introducing good corporate governance principles. Together these will make business operations and new business administration much easier. USAID is also providing assistance to improve the overall environment for private sector development, as well as assisting the Government of Macedonia to develop e-government standards and capacity.

Democratic Institutions

USAID is assisting the Macedonian Parliament to be more accountable and effective while encouraging dialogue between the leadership of political parties and the electorate. USAID is also a strong supporter of decentralization and is helping local government become more effective and responsive. A strong civil society is an important element of democracy, thus USAID supports work to enhance the capacity of Macedonian non-governmental and community organizations. To strengthen the rule of law, USAID sup-ports judicial education, court administration, and the development of a more effective and independent judiciary.

Education

USAID supports higher quality education at all levels to better prepare Macedonians for the 21st century marketplace. South East European University (SEEU), established in Tetovo in November 2001, delivers high quality, multi-ethnic and multi-lingual education to over 5,000 students. USAID is increasing teaching capacity in business administration and computer science. Another focus of USAID is developing primary and secondary students into creative and critical thinkers and works with pre-service teachers. Regarding vocational education, students learn about the workplace and apply theoretical knowledge

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BILATERAL DONORS

to practical tasks. One aspect of USAID’s education program focuses, in particular, on the special needs of Roma students and aims to increase school enrollment and improve academic performance among this marginalized group. In addition to installing computers into labs, it helps teachers and students use information and communications technol-ogy (ICT) in primary and secondary schools. Moreover, broadband Internet access has been extended to all schools and communities throughout the country and, as a result,

provided basic IT skills training to 6,000 primary and secondary school teachers to help them take advantage of new ICTs and internet access in schools.

Other Projects

USAID’s Training Program sends Macedonian leaders to the United States and to the European countries to acquire specialized skills, as well as supports several in-country workshops and training sessions. In addition, English language classes are also being offered.1

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OTHER BILATERAL DONORS

DANMARK

In addition to the support to several Macedonian NGOs, Denmark has provided bilateral support to 2002 CARDS Annual Programme in the Republic of Macedonia.

of Local Infrastructure Project.

FRENCH REPUBLIC

Development assistance provided by the Government of France to the Republic of Macedonia consists of initiatives supporting the public administration, police, education and health sector.

According to the convention between the French Ministry of Foreign Affairs and Mac-edonian Civil Servants Agency, three-year High Administrative Training Programme has

is implemented by the French National School of Administration, encompassing two main items: general six-month training for young civil servants in Skopje and in France,

The project Reform of the Police has two components: (i) support to the police reform -

to the Police Academy. The project has been implemented in the period 2004-2005, in

Within the development cooperation, France is also supporting a project involving pedagogic support with 65 French visiting professors at South-East Europe University (SEEU) and translation of French pedagogic books in Macedonian and Albanian. The

2006.

being implemented in the period 2005-2008, in cooperation between the French BloodCentre and the Macedonian Institute for Blood Transfusion. The project, agreed with the bilateral convention between the French Ministry of Foreign Affairs and the Macedonian Ministry of Health, is aimed at improving the quality of blood transfusion, the number of blood donors and the legal framework for transfusion through: organisation of seminars

for the blood transfusion centres and setting up good practices.

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BILATERAL DONORS

HELLENIC REPUBLIC

In 2002, Greece adopted the 2002-2006 Greek Plan for Reconstruction of the Balkan, -

nia. However, in 2004, the newly elected Greek Government announced revision of the plan, due to which it has never been implemented.

In addition to the project for wastewater treatment plant in Gevgelija in the amount

initiatives for institutional reforms, police reform, vocational training, employment, library modernization, environment, as well as building Training Center for the Macedonian

0.280 million.

SPAIN

loan, aimed at construction of a dam with support facilities, was approved in 1991 and should be fully disbursed by 2006. The period of repayment is 31 years, including 11-year grace period.

PEOPLE’S REPUBLIC OF CHINA

People’s Republic of China and Republic of Macedonia have signed two Agreements for Economic and Technical Cooperation.

Grant was used for equipping the state schools and faculties with computers, as addition to the USAID funded E-schools project.

In 2004, Chinese Government provided additional grant of 20 million yuan (approxi-

by the Ministry of Economy. The People’s Republic of China has also provided a loan for the hydro-electric power

plant Kozjak in the amount of US$ 935 million.1

1

for European Affairs and the ministries.

47

BILATERAL DONORS

49

MULTILATERAL DONORS

51

THE EUROPEAN UNION


European Union consists of 25 member states. Organisational structure of the Euro-

Council and the European Commission. Besides these main bodies, EU has established numerous institutions and specialized agencies. Detailed descriptions of each of these bodies, as well as the overview of the institutions and agencies, can be found on the EU website (www.europa.eu.int).

cohesion among Member States, and secondly, to support economic and social devel-opment in non-member states, those in the process of becoming member state and other regions in the world that will never become part of the EU family, there are several institutions responsible for the different modalities of assistance:

• Directorate General (DG) for Agriculture is in charge of full and proper imple-mentation of the Common Agricultural Policy (CAP), with focuses on policies such as: agricultural markets, rural development, environment and agriculture, forestry, organic

• DG Regional Policy allocates more than one third of the EU budget to regional development, economic and social cohesion through series of EU funds. Its policy is aimed at reducing the gaps and the disparities in development among the member states. Itis responsible for managing the Cohesion and Structural Funds, as well as the relevant

• DG Development works on policy formulation on global and sectoral level, and formulates the development policy applicable to all developing countries. Its basic role is to initiate and formulate the European Union’s development policy in coordination with other EU institutions and multilateral organizations. Their other role is to coordinate and

• DG Enlargementmembership in the European Union. This has been seen as the EU key tool for enhanc-

• DG External Relations (Relex) is responsible for the European Union’s external relations policy. It coordinates all external relations activities of the Commission, and is the crossing point between the European Union’s General Affairs and External Relations Council (GAERC) and the High Representative for Common Foreign and Security Policy. It is also in charge of the newly established European Neighbourhood Policy which aim

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• mission is to implement the external aid instru-ments of the European Commission funded by the European Community budget and

1

• Humanitarian aid is provided as emergency assistance to victims of natural

. It is provided through three main instruments: emergency aid, food aid, and aid for refugees and internally displaced persons. Once a country creates proper conditions for structural reforms, the aid concept changes. From humanitarian/emergency aid to development aid, where relief, rehabilitation and development are linked as one.

• European Agency for Reconstruction (EAR) is responsible for the manage-ment of the main EU assistance programmes in Serbia & Montenegro (Republic of Serbia, Republic of Montenegro, UN-administered Kosovo) and Republic of Macedonia. European Commission-funded programmes managed by the Agency are designed to support good governance, institution building and the rule of law, as well as the develop-ment of a market economy while investing further in critical physical infrastructure and environmental protection. They also focus on social development and the strengthening of civil society (www.ear.eu.int).

Policy Approach

EU provides over half of the world’s aid and has committed to increase this assistance, together with its quality and effectiveness. Community policy in the sphere of development cooperation is complementary to the policies pursued by the member states.

Common vision that guides the EU development co-operation action, both in its

2 . According to it, the Community development policy have as its primary objective the eradication of poverty in the context of sustainable development, includ-ing pursuit of the MDGs, as well as the promotion of democracy, good governance and respect for human rights. The Community applies the principles on aid effectiveness: national ownership, partnership, coordination, harmonisation, alignment to the recipient country systems and results orientation, and promotes policy coherence for development. The particular role of the Community point to focusing the Community’s contribution in certain areas, where it has comparative advantages:

- Governance, democracy, human rights and support for economic and institutional

- Human development, and- Social cohesion and employment.

Development cooperation in the countries pursuing full membership in the European

1

East Europe and Central Asia2 Source: europa.eu.int/pol/dev/index_en.htm

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MULTILATERAL DONORS

- be a stable democracy, respecting human rights, the rule of law, and the protec-

- adopt the common rules, standards and policies that make up the body of EU law.

assistance to improve their infrastructure and economy.Stabilisation and Association Process (SAP) is the EU’s policy framework for the

Western Balkan countries. It presents a strategy explicitly linked to the prospect of EU accession and is adjusted to the level of development of each of the countries concerned, allowing them to move at their own pace. In return for the offer of the prospect of acces-sion and assistance to achieve it, the countries of the region have undertaken to meet the political and economic requirements set for all aspirants.

-gration of the countries of the Western Balkans into the Union and enriched the SAP by including salient aspects of the enlargement strategy, so that it can better meet the new challenges. It also introduced an array of new instruments to support the reform process in the Western Balkan countries and to bring them closer to the European Union. The most far-reaching of these new instruments are the European Partnerships, inspired by the Accession Partnerships for the candidate countries.

The European Union in the Republic of Macedonia

European Union is the largest donor in the Republic of Macedonia, in line with the Macedonian medium-term perspective of becoming a member of the European Union.

EU in the Republic of Macedonia is represented both by the EU Special Representa-tive and the Delegation of the European Commission (EC). As of 2005, both functions are

IMPORTANT DATES ON THE EUROPEAN INTEGRATION PROCESS OF RM

- April 5th 2000, pursuant to the Lisbon Decision of the

- December 17th 2005, the European Council in Brus-

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MULTILATERAL DONORS

The Delegation represents the European Commission, and facilitates the development of political and economic relations between the European Union and the Republic of Macedonia in the framework of the Stabilisation and Association process, as well as the EU policy designed to help the country integrate into the European mainstream. The key task of the Delegation is to inform the authorities, institutions, media and citizens of the Republic of Macedonia about the integration process and about the EU institutions and policies.

The development assistance provided by the European Union could be generally categorized in three time periods:

Post Independence Period 1990 - 2001

and OBNOVA programmes in order to restore stability in the region. ECHO provided humanitarian aid, OBNOVA provided assistance in reconstruction and rehabilitation, while PHARE focused on institutional building and cross-border cooperation with the Republic

3. In addition, in 1997 and in 1999,

Stablisation and Association Period 2001 - 2006

(SAA), in 2001, Republic of Macedonia was able to develop and receive a new mixture

the signing of the SAA, the focus of assistance has shifted from physical reconstruction in the initial phase, to support for political, institutional and economic transition, and, lately, on EU convergence.

The previous use of the different programme regulations led to lack of coordination and concentration of problems4 . Due to that reason, as well as to the new needs of the countries of the Western Balkans arisen from the Stabilisation and Association process, the European Commission consolidated its support in one instrument, the CARDS Programme. In order to achieve the two main objectives of the SAA, stabilisation and

being managed by the European Agency for Reconstruction, and the second centrally managed by European Commission Delegation.

Having in place the new instrument CARDS and wanting to have a harmonized and coordinated approach in the provided assistance to the region, EC established the Eu-ropean Agency for Reconstruction (EAR). EAR has the role of a contracting and paying authority for all CARDS funds available for the Republic of Macedonia and Serbia and Montenegro, including Kosovo. EAR Headquarters is in Thessalonica, with 4 branch

Republic of Macedonia as of March 2002, with a primary task to improve delivery of as-sistance and eliminate backlog.

The application from the Republic of Macedonia for membership in the EU was a historic step forward for the country and the region as well. The country overcame the political crisis and oriented towards peace, stability and prosperity. After submitting the answers to the Questionnaire, the Commission analysed the present situation and the

3 Source: Regional Strategy Paper 2002-2006, European Commission, External

4 Source: 2002-2006 Regional Strategy Paper, p. 17.

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MULTILATERAL DONORS

medium-term prospects, and came out with an Analytical Report for the Opinion on the application from the Republic of Macedonia for EU membership. This report contained a detailed analysis on the basis of the country’s capacity to meet the criteria set by the Copenhagen European Council and the condition of the SAP.

Pre-accession Period 2007 – 2013

a functioning democracy, with stable institutions, generally guaranteeing the rule of law

status, the Republic of Macedonia is in a better position to take on the obligations that

2005 European Partnership . In that process, Republic of Macedonia will be supported

of the New Financial Perspective 2007-2013.The draft regulation presented by the Commission on 29th September 2004 constitutes

such, it will replace not only the Phare Regulation, but also the SAPARD, ISPA, Phare CBC and Co-ordination Regulations, as well as the Turkey and CARDS Regulations. The

Rural Development. There will be clear differentiations within the IPA assistance provided to potential candidate and to candidate countries. Candidate countries will have access

and second component. In that respect, the assistance for the Republic of Macedonia will be focused on institu-

tion building for full, rather than selective, alignment with the Acquis, and for preparation in managing the EU Funds after accession.

Support Programmes

CARDS Programme

Within the CARDS programme, the strategic priorities and programmes are initially set out in the Country Strategy Paper (CSP) for the CARDS National Programme and Regional Strategy Paper (RSP), both covering a six year period starting from 2002 to 2006. Subsequently, the strategic goals and priorities are further elaborated within the national and regional Multi Indicative Programmes (MIP) and the Annual Action Plans. These documents are prepared in close cooperation between EAR, the European Com-mision Delegation and the national government and are providing close linkages with the Stabilisation and Association Agreement and the European Partnership.

CARDS National Programme

European Union assistance provided within the CARDS National Programme in the

allocated within the 2002-2005 Annual Action Plans , while the CARDS 2006 is still in

currently. The main sectors of EU assistance in the Republic of Macedonia are:

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MULTILATERAL DONORS

• Justice and Home Affairs• Economic and Social Development• Democratic Stabilisation• Environment and Natural Resources• Administrative Capacity Building

Programmes.

Justice and Home Affairs

are issues concerning Justice and Home Affairs (JHA), which form an important part of the relation between the Republic of Macedonia and the EU.

Having the rule of law as prime target, the assistance provided in the JHA sector is

in the police, integrated border management, providing necessary information systems for the country to be able to deal with the challenges posed by organised crime and

promote asylum and migration policies in line with international standards.

legislation and proper enforcement of laws, improvement of inter-ministerial co-ordination, provision of training courses for the judiciary and the police in areas such as organised crime, money laundering, company law, bankruptcy, IT-crime, as well as in ethic and human rights.

Economic and Social Development

a member of the European Union. CARDS assistance programmed in the period 2002-2005 is aimed at assisting the

Government of the Republic of Macedonia in assuring high macroeconomic stability, ef-

is targeted towards the process of harmonization with the EU acquis and setting up the necessary authorities designed to monitor the proper and complete implementation of the relevant legislation. The area of trade, foreign direct investments, agriculture, employ-ment, ect., are some of the areas where the CARDS funds have been active.

Democratic StabilisationEuropean Commission has played a vital role in helping the Government in the pro-

cess of ensuring democracy and full implementation of the rule of law. Having the OhridFramework Agreement (OFA) signed in 2001, the fundamental role of the EU assistance in this area was aimed at assisting the Government in the promotion and protection of

society.

of the Government. The available EU funds have helped create a Unit for implementa-

obligations stated in the Agreement. The assistance in this area was also focused on returning the refugees and displaced persons, rebuilding and reconstructing the destroyed households and creating conditions for their return.

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MULTILATERAL DONORS

Environment and Natural ResourcesDevelopment of environmental policies and strengthening the capacity of the institu-

tions that deal with environmental issues are key elements of the CARDS assistance in this sector.

CARDS support in this area tackled many urgent needs seen as abrupt threats to

implementation of the law, as well as strengthened the government’s capacity to moni-tor and enforce environmental standards. In addition, support has been provided in the development and implementation of the two subsequent National Environmental Action Plans (NEAP).

Administrative Capacity BuildingEC is providing substantial assistance for developing the necessary legal framework

and institutional capacity of the public administration, a prerequisite to reach full compli-ance with SAA requirements.

procurement, competition and state aid, consumer protection and intellectual, industrial and property rights. In addition to the general legal framework and the institutional ca-pacity, the public administration reform, in broader view, includes the reform processes in the judiciary and the police, as well as the reforms of the local-self government, in line with the economic alteration.

Community ProgrammesThe Thessaloniki Summit opened the possibility for full participation in the EU Com-

munity programmes.

Agency for programmes in education (Leonardo da Vinci II and Socrates II, as well as for Future Generation programmes 2007 – 2013) and a National Agency for youth programmes (Youth and Future Generation programmes 2007 – 2013), training and information campaign.

CARDS Regional Programme

While National CARDS Programme is focused on a country-based support, Regional CARDS Programme is aimed at promoting horizontal cooperation between all countries in the region, as a complement to the country-based CARDS programme. The funds avail-

As indicated in the 2002-2006 Regional Strategy Paper, main areas of intervention are:

Integrated Border Management

people across borders, to improve infrastructure, to enhance border control, to develop border regions, to support democratization and to promote cooperation with national police.

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MULTILATERAL DONORS

Democratic StabilizationSupplementary to the National CARDS fund, additional funds for this sector are

provided with the CARDS Regional Strategy. The undertaken activities are focused on promoting good governance, promoting the rule of law, promoting free and independent media, respect of linguistic and religious diversity, as well as supportto the NGO sec-tor.

Institution BuildingNational and Regional CARDS support is focused on the civil servants as a primary

target following the public administration reforms in the country and the region as well. Major goal within this sector is to respond to the characteristics and needs of the region in order to create feasible institutions for proper implementation of the Stabilisation and Association Agreements, now and in the future.

Developing Regional Infrastructure ApproachesThe main activities in this sector are aimed at creating coherent regional strategy for

safety and control, energy, environment and IT. Development of studies that extend to the Pan European Network System in the Region is a longterm goal.

Justice and Home AffairsRegional 2005-2006 CARDS MIP gives opportunity to develop additional trainings for

the police and the judiciary with regional impact, enhance the regional police cooperation and create precise and standardized monitoring instruments.

Development of the Private SectorThe aim in this area is to help create better economic conditions in the region, in order

to generate higher level of foreign direct investments and domestic investments.

Regional Cross Border Cooperation (CBC)The impact of enlargement with current candidate and potential candidate countries

will bring progressive change in the region. The idea behind cross border cooperation is promoting sustainable economic and social development in the border areas, working

with the Republic of Greece (Ineterreg IIIA), with the Republic of Bulgaria (Phare CBC),and the CADSES Programme.

TAIEX

TAIEX stands for Technical Assistance Information Exchange. Overall objective of this instrument is to support the new member states, the candidate countries and the

-tion, application and enforcement of the acquis. It provides the following main services: documentation, information and advice on single market legislation, expertise to advise

-

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tion database. TAIEX is demand-driven assistance, and with respect to the Republic of Macedonia, it complements the National CARDS Programme. (www.taiex.cec.eu.int)

EU Police PROXIMA / EUPAT

Upon the invitation of Government authorities and in line with the objectives of the Ohrid Framework Agreement, European Union established the EU Police Mission in the Republic of Macedonia. The Mission, named PROXIMA to suggest proximity to the citizens, was launched on 15th December 2003 for an initial period of one year, and, upon invitation by the Government, was subsequently extended for an additional year

police service based on European standards of policing.Through its programmes, the Mission monitored, mentored and advised the

police forces focusing on senior and middle management. In addition, in close co-ordination with the European Community Police Reform Project (ECPRP), EUPOLProxima provided support to the preparation of the implementation of the Ministry of Interior’s police reform strategy. The mission was terminated on 14th December 2005 (www.eupo-proxima.org).

EU Police Advisory Team (EUPAT) has been operational since 14th December 2005, after the termination of the PROXIMA, and will have duration of 6 months. EUPAT is in the framework of the European Security and Defense Policy (ESDP), and operates only in the Republic of Macedonia.

Under the guidance of the EU Special Representative, EU police experts monitor

(www.eu-pat.org)

TWINNING

Twinning is a relatively new methodology more and more applied in the CARDS programme as a tool for institution building. Its goal is to help the potential candidate

and in 2002, it has become part of the CARDS programme.

a partner that must be from the member states. The costs of Twinning are generally

is rather a joint project covering a process, in which each partner takes on responsi-bilities. Activities involve organising seminars, training courses, transfer of expertise and legal drafting advices.

At this stage, Republic of Macedonia has been involved in a number of Twinning

others are being developed to be implemented in near future.

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MULTILATERAL DONORS

EU Monitoring Mission (EUMM)

Primary objective of the EU Monitoring Mission (EUMM) is to contribute to the effective formulation of the European Union policy towards the Western Balkans. EUMM is the successor of the European Community Monitor Mission (ECMM), which had operated in this region in the period 1991-2000.

Since 2000, particular focus of the EUMM is to monitor political and security develop-ments, as well as border monitoring, inter-ethnic issues and refugee returns. Through

The Mission coordinates its activities closely with the European Union Heads of Mission and relevant international organisations in the Western Balkans.

Mission headquarters is in Saraevo and it operates in Bosnia and Herze-govina, Croatia, Serbia and Montenegro, Albania and the Republic of Macedonia. (www.europa.eu.int)5

5

for European Affairs and the ministries, as well as the input provided by the donor institution.

61

UNITED NATIONS DEVELOPMENT PROGRAMME (UNDP)


A cornerstone of the UN system, UNDP (www.undp.org) helps developing countries to build their capacities for human development. UNDP is the world’s largest multilat-eral grant development assistance organization. It serves more than 170 countries and

Africa, Arab States, Europe and the Commonwealth, Latin America and the Caribbean

-tem after the Secretary-General and the Deputy Secretary-General. He is appointed by the

The UNDP Executive Board is made up of representatives from 36 Member States of the UN Economic and Social Council (ECOSOC). The Board oversees and supports the activities of UNDP, ensuring that the organization remains responsive to the evolving needs of programme countries.

Normally, the UNDP Resident Representative also serves as the Resident Coordina-tor of development activities for the United Nations system as a whole. Through such coordination, UNDP seeks to ensure the most effective use of UN and international aid resources.

The Financial Rules and Regulations of UNDP recognize two main categories of funding: Regular (core) and Other (non-core) resources.

pledges by Member States. Provisional data show that contributions to regular resources for 2004 reached US$ 842 million – the United States, Norway, Netherlands, Japan and

-lion euros (US$ 112 million) annually. This makes the Netherlands the largest donor to UNDP at the moment.

UNDP programme activities also depend on the mobilization of other resources, which take the form of cost sharing, trust funds, or government cash counterpart con-tributions.

Additional resources are pledged to UNDP administered funds such as UNV, UNCDFand UNIFEM, while parallel funding and management service agreements may also contribute to UNDP’s work.

Policy Approach

The focus of UNDP is helping countries build and share solutions to the challenges of:

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MULTILATERAL DONORS

• Democratic Governance – developing institutions and processes that are more

democratic transitions can be summarised in the following categories: (a) Policy advice -

and (e) Knowledge networking and sharing of good practices. • Poverty reduction - UNDP promotes the concept of human poverty as a comple-

ment to income poverty, emphasizing that equity, social inclusion, women’s empowerment, and respect for human rights matter for poverty reduction. However, UNDP also works towards creating an enabling environment for the private sector.

• Crisis prevention - UNDP has a well-established background in building, con-solidating, and preserving the peace and responding to natural disasters.

• Energy and environment - UNDP helps countries to address issues that are also global, such as climate change, loss of biodiversity and ozone layer depletion, which cannot be addressed by countries acting alone, and helps countries to strengthen their capacity in addressing these challenges at global, national and community levels.

• HIV/AIDS - UNDP advocates placing HIV/AIDS at the centre of national planning

that support community-level action.The planning cycle of UNDP’s country operations is part of the recently revised

harmonized cycle of all UN agencies. The process starts with preparation of Common Country Assessment (CCA) according to which a United Nations Development Assist-

preparation of the Country Programme Document covering a period of 4 years. Thus, the activities of all UN agencies within one country jointly contribute towards the same development goals determined in the UNDAF.

UNDP in Republic of Macedonia

however, UNDP’s activities in the country started much earlier (www.undp.org.mk).The First Country Cooperation Strategy for the Republic of Macedonia, focused on

the period January 1997- December 2000.The second strategy, the Country Cooperation Framework (CCF) covered the period

2001-2003 (later extended to 2004). The focus areas of the CCF 2001-2004 were Localgovernance and municipal development and environmental governance and sustainable development. In addition to the projects implemented in this area, UNDP also presented

decentralization and local governance, stimulating investment and ICT technology. With the two National Human Development Reports (2002 ‘Human security and social exclu-sion’ and 2004 ‘Decentralization for human development’) and the Early Warning Reports UNDP addressed key policy issues in the country. UNDP also supported the country in the creation of a National Multisectoral Commission on HIV/AIDS and the preparation of the National Strategy Plan for HIV/AIDS (2003-2006).

Current UNDP activities in the Republic of Macedonia are focused on the following

• Decentralization and Democratic Governance• Poverty Reduction through Economic Development• Energy and Environment, and

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MULTILATERAL DONORS

The Country Programme Document (CPD), covering the period 2005-2009, focus the support to consolidating peace and stability by promoting long-term development agenda, in line with the Millennium Development Goals and the process of EU integration. The

prevention activities and support for equal access to basic services, such as health,

2. Policy advocacy and creation of an enabling economic environment for poverty

3. Sustainable development, environmental and nature protection and sustainable management of natural resources.

Capacity-building for Good Governance and Rule of Law

In this area, UNDP provides assistance to the country to develop a strategic national vision for human development and good governance at national and local levels. In that respect, the National Human Development Reports (NHDRs) will be key processes anchored in the country’s commitments towards achievement of the MDGs and the concept of human development. For that purpose, UNDP is advocating for integration of the MDGs as monitoring and evaluation tools within sectoral policies, the process of integration with the European Union, and aid coordination.

On national level, UNDP supports the Ministry of Local Government, the Association of Local Governments and the Civil Servants Agency in establishing national training system for civil servants to manage the decentralization process and complete the cor-responding legal framework. The support to the Secretariat for European Affairs and line ministries to enhance their capacities for policy analysis and strategic planning, so as to improve the foreign assistance coordination mechanisms is one of the core activities in this area.

On local level, UNDP reinforces local structures through promoting accountable and transparent management of public resources and high-quality provision of services to

-grated social economic development and localized MDGs, and enhancing inter-municipal cooperation.

The vulnerability assessments, the facilitation of multi-stakeholder dialogue, as well the programme for safer communities, are some of the instruments used by UNDP in addressing the human security issues.

UNDP cooperates with other UN agencies to implement a rights-based approach to development, HIV/AIDS and gender. In the sphere of HIV/AIDS, support is provided to improve management capacities for implementation of the HIV/AIDS National Strategy, while the gender perspective is mainstreamed in all UNDP activities as cross-cutting issue.

The resources planned in the 2005-2009 CPD for achieving this priority amount to US$ 12.55 million, US$ 1.4 million out of which is UNDP’s regular resources, while the remaining is to be acquired through cost-sharing agreements with bilateral donors.

Promoting an Enabling Economic Environment for Poverty Reduction

UNDP supports strategic poverty reduction policies in line with national MDG targets and creation of institutional, legislative and regulatory environments conducive to invest-ment, trade and private sector activity. The ‘informal economy’ is addressed through legal,

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through introducing micro-credit schemes, micro, small and medium enterprises’ business centres etc. Support to the development of national ICT strategy and mainstreaming of ICT into national development priorities is also provided in this area of activities.

UNDP also intervenes in increasing the current low level of capital utilization and the large pool of unemployed, by providing economic opportunities for their deployment in boosting the economic growth rate.

Resources in the amount of US$ 12.1 million, of which US$ 1.3 million regular re-sources, are planned for implementation of projects in this priority area.

Sustainable Development, Environmental Protection and Management of Natural Resources

In this area of activities, UNDP supports the local initiatives for promoting environmen-tal protection as a pillar of integrated sustainable development, through a transbound-ary cooperation programme for integrated watershed management and sustainable livelihoods to local communities. It also strengthens the capacities of national and local authorities to enforce new environmental legislation, enhance their accountability and transparency and promote public participation in environmental decision-making.

UNDP provides continuous support to the government in exploring new opportunities for funding environmental programmes, and introduce innovative approaches which will position the environment as a vehicle for development, job creation and crisis prevention. In addition, it also continuously helps the country to meet its commitments and reporting requirements under multilateral environmental conventions by strengthening national capacities for improved data collection and technology assessment.

The resources planned in this area amount to US$ 9 million, of which US$ 0.5 million is UNDP’s regular resources.

Bilateral donors that support the work of UNDP in the Republic of Macedonia through cost-sharing agreements are: the Governmenst of Norway, Italy, Finland, Switzerland, Sweden, the Netherlands, Luxemburg, Great Britain, Ireland, France, Austria, Slovakia, Hungary, etc. Multilateral partners are the EU, USAID, DFID, the World Bank, EBRD,GEF, Foundation Open Society Institute-Macedonia, OSCE, FAO, KfW, CeDB. 1

1


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OTHER MULTILATERAL DONORS

NORTH ATLANTIC TREATY ORGANISATION (NATO)

weapons from the insurgents, a pre-condition for the successful implementation of the Ohrid Agreement. This ambitious and vital task had to be completed in just 30 days, but was successfully achieved.

Once completed, and at the request of the Macedonian Government, NATO continued

country, the second mission was successfully terminated on December 15th, 2002. In order to demonstrate its commitment and support, NATO, again upon the invitation

-

and stability of the region. NATO provided emergency support and other pre-determined forms of support to the monitors of the international community, and the mission came to an end on March 31st, 2003.

At present, NATO Headquarters in Skopje assists and advises the Government of the Republic of Macedonia on military aspects regarding the overall reforms in the Security Sector, in order to contribute to the Euro-Atlantic Integration and provide support to the NATO-led operations in the region.

Macedonia has applied for membership in NATO, and, as such, it is a part of the Mem-bership Action Plan (MAP) which helps countries in their preparation to become members in the NATO alliance. MAP is a tailor-made programme aimed at advising, assisting and supporting the individual needs of countries wishing to join the NATO Alliance.

The South East Europe Initiative (SEEI), launched in 1999, at the Washington Summit, was seen as step forward to helping towards membership in the NATO alliance. Beingpart of the SEEI, a series of programmes and initiatives aimed at promoting regional cooperation and stability on the long-run started in the Republic of Macedonia.

NATO remains entirely committed to helping the Republic of Macedonia become fully integrated in the Euro-Atlantic structures. At this stage, NATO assist the country by providing advice and expertise focusing on military reforms, creating security and defence policy adapted to NATO standards.

In the period 2000-2005, NATO has provided support in the amount of approximately

repair and reinforce 20 bridges, design work for 7 bridges, as well as for rehabilitation of the inter-section Ilinden and Momin Potok in Skopje.

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In June, 2005 the Ministry of Transport and Communication and NATO have signed the Memorandum of Understanding for implementation of the NATO Project for Rehabiltation and Improvement of the Road Network in Macedonia. The project will be implemented in the following 3-5 years with NATO’s maximum possible commitment not exceeding

1

ORGANISATION FOR SECURITY AND CO-OPERATION IN EUROPE(OSCE)

Having 55 members states from Europe, Central Asia and America, OSCE is the world’s largest regional security organisation. It offers a forum for political negotiations

-

mission, originally established in September 1992. The work of the Mission is based

Socialist Federal Republic of Yugoslavia, and on Permanent Council decisions stemming from the Ohrid Framework Agreement. The Mission assists in: redeploying police in the

area of inter-ethnic relations. Since the successful completion of police redeployment, the mission has evolved to keep pace with the development on the ground, placing a

administration and rule of law.

and tasks:The aim of the is to help maintaining stability and security

in the country. The unit reports regularly on issues affecting the security situation. The

to primary and secondary education. Projects range from supervising student-led, multi-ethnic leadership workshops to supporting a network of volunteer clubs that promote civil participation.

The coordinates international support and assistance to the state broadcaster MRTV, which is implementing widespread reforms and restructuring. Activities also comprise long-term capacity building in the newsroom for television in all languages and training in digital production for all language departments in the radio, as well as technical support to the archives and online departments. In addition, the Unit has provided assistance to the Government and other interested parties for revision of legislation regulating media activities. Support was also given to the One Year Journalism School Programme run by the Macedonian Institute for the Media (MIM) and accredited by the Danish School of Journalism, which was established to give professional and practical training to young journalists.

The assists the government with police training, institutional police reform and community policing. The Mission is working closely with the Ministry of

1


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has also been helping to train the country’s border police and assisted the Government in completing the hand over of responsibility for border control from the Ministry of De-fense to the Ministry of Interior. In addition, the Mission assists educational institutions in promoting long-term sustainability, allowing it to focus more on specialised courses

and human rights. To support the process of police reform, the Mission has developed a code of police ethics and trained more than 30 national instructors in cooperation with the Ministry of Interior and the Council of Europe. As part of its efforts to encourage the practice of community policing, the Mission trained Community Relations Coordina-tors (CRC) in police stations across the country. These CRCs are increasingly taking responsibility for promoting and organising Citizens’ Advisory Groups, a tool used by the OSCE to encourage citizens to cooperate with their local police to deal with issues in their communities.

As the country implements reforms to decentralise governmental responsibilities from central to local municipal control, through the , the

responsibilities. The Mission provides training for municipal civil servants, mayors and -

tory planning techniques and to improve their leadership skills. In addition to providing training and discussion workshops, the Mission supports various awareness-raising

governance. Working closely with the local Union of Women’s Organisations, the Mission also contributes to the establishment of Gender Equity Commissions in various munici-palities as a way to get women more involved in decision making at the local level, and the Mission is engaged in efforts to increase citizen participation through the effective use of neighbourhood units.

With assistance from European and US donors, as well as NGOs, in the justice sector, the Mission supports the Government in developing an independent, representative and credible judiciary through its . Assistance is provided for implementing the National Strategy on the Judiciary Reform, which currently focuses on issues such as the reform of judicial training structures, appointment processes and disciplinary proceedings. The mission also supports the Ombudsman institution in its expanded role, which stems from the Ohrid Framework Agreement. Additional assistance is provided

as the guide, the Mission monitors and advises on war crimes, other serious crimes, and legal issues that can affect the security situation.2

UNITED NATIONS AGENCIES3

In addition to United Nations Development Programme (UNDP), a number of UN agencies are active in the Republic of Macedonia. The UNDP Resident Representative in Macedonia also serves as the Resident Coordinator and heads the UN Country Team.

2


3

for European Affairs and the ministries, as well as the input provided by the donor institution.

68

MULTILATERAL DONORS

UN CHILDRENS’ FUND (UNICEF)

UNICEF is mandated by the United Nations General Assembly to advocate for the protection of children’s rights, to help meet their basic needs and to expand their op-portunities to reach their full potential.

UNICEF has been working in Macedonia since 1993 together with national and international partners, civil society groups, international and local Non-Governmental

2009 started focusing on Social Policy Monitoring and Evaluation, HIV/AIDS and Young People’s Health, Child Protection and Early Childhood Development and Education.

The UNICEF is a key to the reali-sation of the Millennium Development Goals and World Fit for Children (WFFC) agenda. UNICEF lobbies for increased public budget allocation to the social sector, supports

programme development for children, assists in social policy dialogue and develop-ment, advocates for children’s rights, and support to build a protective environment for children. Achieving results in this programme area is crucial for a successful integration of the country in the EU.

, UNICEF supports national initiatives such as implementing the grant of the Global Fund to Fight AIDS, setting up the second generation surveillance systems and

service approaches into ongoing public sector reform.The overall goal of the is to build a protective environment

for children, by putting emphasis on systematic and durable changes, legislative and policy reform and prevention strategies. The programme focuses on the development of alternatives to institutional care for children temporarily or permanently deprived of primary care providers, including children with special needs (foster families, day-care

and prevention of violence against women and children, through information campaigns, research and training of relevant professionals.

The supports compre-hensive social development interventions in the areas of early childhood care and pre-school education, literacy for women and basic maternal and child health care. It also targets at improving both access to and quality/relevance of formal education system. The programme will directly contribute to the realisation of the following MDG commit-ments: achieving universal primary education, promoting gender equality and women’s empowerment, improving maternal health and reducing child mortality. The programme follows two broad strategies which are complementary and mutually supportive: one is national, focused on areas such as child-friendly policies, quality and standards of services in health and education, and the other focuses geographically on poor, rural and minority communities to address disparity and social exclusion.

The funds planned for realisation of the CPD 2005-2009 amount to US$13.060 mil-

UN HIGH COMMISSIONER FOR REFUGEES (UNHCR)

UNHCR is mandated to lead and co-ordinate international action to protect refugees and resolve refugee problems worldwide. UNHCR’s 2006 strategic objectives in Mac-

69

MULTILATERAL DONORS

-

the Government of the Republic of Macedonia in responding to emergencies and foster-ing partnerships and complementarities between UNHCR, the Macedonian Government institutions, NGOs, the UN system agencies and relevant international, regional and EU institutions as the essential platform for attaining the goals and objectives of the 2006 programme.

According to the UNHCR Global Appeal 2006 in the Republic of Macedonia, UNHCRwill continue to support the Government and other national actors to provide international protection to refugees and asylum-seekers and, thereby, ensure that asylum-seekers

-ards. For the group of approximately 2,100, mainly Roma, refugees and asylum-seekers from Kosovo currently living in private accommodation throughout Macedonia, UNHCRwill continue to provide basic humanitarian assistance, as neither local integration nor voluntary repatriation are likely prospects at present. Meanwhile, UNHCR will continue to facilitate the return of any refugees wishing and able to repatriate to Kosovo, as well as the return of the residual caseload of refugees from Macedonia still in Kosovo.

The approved allocation for UNHCR’s programme in the Republic of Macedonia in 2006 is US$ 3.365 million.

WORLD BANK

WORLD HEALTH ORGANISATION (WHO)

-pje, in cooperation with the Ministry of Health, implements several programmes in the Republic of Macedonia, such as theincluding topics as support to outpatient departments, mobile medical teams, mental health, primary health care, immunization. WHO is also providing support through the programmes on -

, as well as in the areas of

UNITED NATIONS HIGH COMMISSIONER FOR HUMAN RIGHTS (OHCHR)

The mission of the OHCHR is to protect and promote all human rights for all. In the Republic of Macedonia, OHCHR is completing a mid-term Comprehensive Technical Cooperation Programme in the Field of Human Rights. The programme had started in 2002 and is implemented in close cooperation and consultation with partners in the Government, the international organisations and the civil society. The activities include:

70

MULTILATERAL DONORS

FOOD AND AGRICULTURE ORGANISATION OF THE UNITED NATIONS(FAO)

-

coordination functions on several issues.

projects provided agricultural inputs (animal feed, seeds and fertilizer) to almost 50,000

As the emergency phase terminated in 2002, a set of rehabilitation and development projects were prepared and offered to donors. As a result, the Government of Norway

-

TCP Projects.

million.All projects are directly implemented by FAO, in cooperation with the Ministry of Ag-

riculture, Forestry and Water Economy, and at various degrees with NGO’s.

INTERNATIONAL ORGANISATION FOR MIGRATION (IOM)

Established in 1951 as an intergovernmental organisation to resettle European dis-placed persons, refugees and migrants, IOM has now grown to encompass a variety of migration management activities throughout the world.

-

-

management and other services for migrants.Although not part of the United Nations system, IOM maintains close working rela-

tions with UN bodies and operational agencies, as well as wide range of international and non-governmental organisations as partners.

71

MULTILATERAL DONORS

73

INTERNATIONAL FINANCEINSTITUTIONS

75

COUNCIL OF EUROPE DEVELOPMENT BANK (CEB)


Council of Europe Development Bank (CEB) is multilateral development bank with a social vocation. Established in 1956 by eight Council of Europe countries, the Bank is

-tries. Governing bodies of CEB are the Governing Board, the Administrative Council, the Governor assisted by the Vice-Governor Delegate and two additional Vice-Governors, and the Auditing Board (www.coebank.org).

Policy Approach

Since it was created, Council of Europe Development Bank’s prime objective has

such situations.-

jor sectorial lines of action structuring all the institution’s actions, in compliance with its social vocation:

• Responsible management of the environment, promoting not only actions in favour of prevention of environment, historic and cultural heritage, but also a systematic response to emergency situations.

The Bank grants loans and guarantees to its member states, to local authorities

of action. In addition to its loan instruments, CEB can make use of the Selective Trust Account (STA), the purpose of which is to grant interest rate subsidies in favour of proj-ects within the Bank’s high priority objectives. STA is also used to make donations for humanitarian purposes.

a) individual projects, which concern a single sector and a single site, or a limited

b) sector-based projects, comprising a number of sub-projects in one or more sectors. These projects must come within the framework of development projects set

76

INTERNATIONAL FINANCE INSTITUTIONS

c) multi-project programmes, grouping together small-scale projects with a Bankloan not exceeding 5 million euros, regardless of the sector involved.

Since June 2001, Bank has formally become a facilitator of the Stability Pact for South Eastern Europe. Involvement of Bank’s activity within the framework of the Stability Pact represents the continuation of its long-standing commitment to the social and economic

projects aimed at facilitating the return of refugees and strengthening social cohesion.

CEB in the Republic of Macedonia

Republic of Macedonia became a member of CEB in 1997, thus acquiring the right -

sentative in the Administrative Council, as well as in the Governing Board of the Bank,which are actively participating bodies in the decision-making process.

Cooperation between the Republic of Macedonia and CEB has been realized through two loans and three donations:

Stregthening Social Integration

Job Creation and Preservation in SMEs and Vocational Training (loan)

to stimulate employment through creation of new jobs in the high labor-intensivesec-tors, thus helping to solve social problems resulting from the high rate of unemployment. The loan was completely disbursed in 2002, while the period of repayment is 15 years, including grace period of 5 years.

Social Housing (loan)

social housing construction in Skopje, Bitola, Veles, Gostivar, Stip, Delcevo, Debar, -

tion of Government’s Programme for construction of approximately 850 social houses

to be completed in mid-2006.

Grants for Humanitarian Purposes

Following the population movements as a result of the Kosovo crisis, in 2000 CEB-

frastructure (drinking water and sewerage networks) in Suto Orizari and Vizbegovo. This project was implemented by the United Nations Development Programme (UNDP), in

water supply net in Jegunovce, Vratnica and Tetovo. Project objective was recovery from

were re-allocated for the construction of the elementary school in Tetovo. This project was administrated through UNDP.

77


Developing Human Capital

Education (grant)At the Joint Meeting held in June 2003 in Ohrid, CEB Administrative Council approved

CEB and UNICEF project is implemented by the local branch of UNICEF in the Republic of Macedonia in 11 different municipalities. The objective is to improve access to formal and non-formal education for Roma children, girls and young women, thus, contributing towards better living conditions of the Roma community.

Future Cooperation

The planned focus of the future cooperation between CEB and the Republic of Mace-donia is support to social vocation and improvement of education, as well as to the health

in the country though creation and retaining of jobs, is approved by CEB and the Loan

-mented through Macedonian Bank for Development Promotion to the commercial banks in the Republic of Macedonia.1

1

for European Affairs and the ministries.

78

THE EUROPEAN BANK FORRECONSTRUCTION AND DEVELOPEMENT (EBRD)


European Bank for Reconstruction and Development (www.ebrd.com) was estab-

and Eastern Europe, supporting their transition phase towards market economies. It is owned by 60 countries and 2 intergovernmental institutions (European Community and

the international capital markets, ensuring at all times sound banking principles.

capital and provides technical assistance, working with banks, industries and businesses, as well as with publicly-owned enterprises. It operates in 272 countries from Central Europe to Central Asia, all committed to democratic principles.

The management structure of the Bank comprises the Board of Governors (where all the powers are vested), the Board of Directors (responsible for general operations and policies) and the President (legal representative of the EBRD elected by the Boardof Governors, who under the guidance of the Board of Directors manages the work of the Bank).

Policy Approach

EBRD approach in addressing the complex transition challenges is based on strate-gies, policies, procedures. Regional diversity between the countries of operation is wide

need of any particular country. Distinct Country Strategies are developed and followed for each of its 27 countries of operation.

Furthermore, the Bank has its Sectoral Policies, that formally set out the strategy in

development through support programmes. The solutions are tailored to client and project

projects3.2 Countries of operation: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina,

Bulgaria, Croatia, Czech Republic, Georgia, Estonia, Hungary, Kazakhstan, Kyrgyz Republic, Latvia, Lithuania, Republic of Macedonia, Moldova, Poland, Romania, Russia, Serbia and Montenegro, Slovak Republic, Slovenia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.

3 Source: www.ebrd.com as of September 2005. The statistics available on the web-site is been

79


as commercial banks, micro-business banks, equity funds and leasing facilities, thus

Trade facilitation programme provides credit facilities in the form of EBRD guarantees

to banks in the region for on-lending to local companies for trade-related activities.EBRD is active with the following business development support programmes: Turn-

Around Management Programme – TAM (shares management know-how and develops

capacity of local consultants that will supply SME’s with expert advice on business per-

Overall, for all of its operations, the Bank follows its own corporate policies, procedures and strategies, such as the Public Information Policy, Environmental Policy, Independent Resource Mechanism, etc.

EBRD in the Republic of Macedonia

EBRD has been operational in Macedonia since 1993. As of May 31, 2005, the Bank4.

multiplier of 1.5.

of Macedonia, with 61 technical co-operation (TC) projects, mainly in the banking, tele-communications, transport and municipal sectors. Disbursement of TC funds as of April

private.In the period 2002-2004, the Bank made strenuous efforts to improve the performance

of the local banks where the Bank has equity participation, experiencing particularly good results in the turnaround of Stopanska Banka, privatized by a strategic investor together with EBRD and IFC, and in Export-Credit Bank, which improved its portfolio

set the Municipal and Environmental Action Programme, signed in 2000, on the path of accelerated procurement and disbursement, after long preparation work and coordination efforts among the various donors involved in this project.

Board of Directors approved the latest strategy for the Republic of Macedonia on 20 July 2004 covering the coming two-year period. Herewith, EBRD is joining international efforts to support the country to accelerate structural reforms and to give fresh drive to

4 Source: www.ebrd.com as of September 2005. The statistics available on the web-site

document.

80


private enterprise development, in line with the Government’s resolution to boost the economy and create new jobs, as well as to implement the Stabilization and Association Agreement with the European Union.

EBRD’s strategic priorities5 for the following period are within the:- Corporate Sector- Financial Sector- Infrastructure

Corporate sector

The Bank will mainly target its support towards strategic foreign investors and local export-oriented companies showing good corporate governance, by providing loans, guarantees or making equity investments, including through Direct Investment Facility(DIF). Where required, assistance to local enterprises may be provided through the TAM and BAS programmes. Areas of particular focus would be market positioning, quality

a retail complex in Skopje. The repayment period of the loan is eight years.

Financial Sector

The Bank will focus on the following priorities:- Channel more funding to SME’s through commercial banks and micro-lending

institutions, including through the implementation of an EU/EBRD Western Balkans SME

- Support for strengthening and consolidation of the banking sector through merg-ers and acquisitions of banks, directly with new equity investment or via the EBRD’s existing equity holdings. The Bank will promote, in particular, further entry of foreign

- Expand the range of instruments offered to banks by increasing the number of

-

syndication of a Macedonian bank since 1998. EBRD’s relationship with Export and Credit Bank was further extended in December

Infrastructure

In addition to focusing on implementation and disbursement of existing commitments, EBRD will continue to play a crucial role, together with the European Investment Bank(EIB) and the EU, in developing transport and energy projects, with a particular focus on regional linkages, as well as municipal and environmental infrastructure.

Power/Energy Utilities-

ernment in the preparation of the necessary restructuring plans and reforms to enable the electricity company Elektrostopanstvo na Makedonija (ESM) sale to a strategic 5

Directors at its meeting on 20 July 2004.

81


investor. The Bank will also assist the energy sector reforms with the extension of the

the Republic of Macedonia, as well as with environmental technical assistance to ESM and the Government.

energy market development, such as regional electricity and gas interconnections, par-ticularly, transmission interconnections with Albania.

Subject to solutions to gas sector issues, EBRD could mobilize grant funds for the -

ment.

TransportDuring this strategic period, EBRD will concentrate on promoting the road network

rehabilitation in conjunction with the road maintenance sector restructuring. In that re-spect, the focus will be put on implementation of the Regional Roads Project, with paral-lel preparation of Institutional Strategy and Roads Plan, as well as Road Rehabilitation Project combined with sector reforms as a follow-up.

Under its current Civil Aviation Upgrading project, the Bank will assist with the separa-tion between the Air Navigation Services provider and regulation aimed at institutional and structural reorganisation of the Civil Aviation Administration through the establishment

-ate solution, including possibly private sector participation.

Municipal InfrastructureEBRD will develop, where possible, municipal guaranteed water sector investments.

The water rehabilitation project for the city of Skopje is been considered for this strategic period.

All EBRD operations in Macedonia are subject to the Bank’s Environmental Policy and will incorporate, where appropriate, Environmental Action Plans, in line with the Bank’s mandate to actively support environmentally sound and sustainable development through its investment projects.6

6


82

EUROPEAN INVESTMENT BANK (EIB)


institution of the European Union. Its mission is to further the political and development -

ects.

and private investment. As a Bank, it works in close collaboration with the banking

projects. Members of the EIB are the EU member states, and its governing bodies are: the Board of Governors, the Board of Directors, the Management Committee and the Audit Committee.

Policy Approach

Corporate Operational Plan (COP), ussualy referring to a period of three years, is

priorities in the light of the objectives assigned to the Bank by its Governors. It is also an instrument for ex post evaluation of the EIB’s activities.

priorities for Bank’s lending:

• Environmental protection and improvement, including climate change and re-newable energy.

The support for small and medium-sized enterprises (SMEs), as well as mid-cap companies of intermediate size, and the support for human capital, notably health, remain as other operational priorities.

and the project category:• Global loans, loans for SMEs through an intermediary, present a structure under

which a domestic partner bank receives a credit line together with a mandate to apply the

• Structured Finance Facility (SFF).

83


Loans provided by EIB are long-term, running from about 4 up to 20-year period -

dustrial sectors. To be eligible, such projects have to contribute to EU economic policy objectives.

The largest part of lending takes place in the European Union, where EIB primarily contributes towards building a closer-knit Europe, particularly in terms of economic in-tegration and greater social cohesion. The EIB Group also promotes European venture

from the Bank’s own resources, but also, under mandate, from the Union or member

available under the technical cooperation and development aid policies established by the EU for non EU-member countries. In this context, EIB supports capital investment in Central and Eastern European countries, in countries of the Euro-Mediterranean Partner-ship, in Asia and Latin America and in South Africa. EIB operations outside the Union are pursued under regional lending mandates in parallel with the general cooperation agreements concluded between the Union and countries or groups of countries. These

Member States.The project cycle within EIB is consisted of the following actions: submission of a

the Bank’s Management Committee, and approval by the Board of Directors. As part of the project cycle, EIB carries out project monitoring, as well as ex post evaluation upon project completition.

EIB assistance to the Western Balkans countries contributes to the goals of the -

frastructure and projects with regional dimension. During 2004, Bank’s lending in the

According to the 2005-2007 Corporate Operational Plan, average annual lending in the

the Italian Trust Fund 1.

EIB in the Republic of Macedonia

EIB started granting credits to the Republic of Macedonia as a sovereign borrower, was signed in January 1998. The cooperation was further strengthened in 2000, with the signing of the Framework Agreement that offers opportunities for realization of projects

1 The Italian Government is making available to the EIB, the EBRD and the World Bank, funds in trust totaling 12m in the form of grants for technical assistance for the period 2004-2007, as follows: • Transport sector: 4m to be managed by the EIB • Private sector: 4m to be managed by EBRD to promote private sector development. • Energy sector: total amount of 4m to be managed by the World Bank.

84


of common interest in the basic infrastructure, but also in other important areas that are of vital meaning for the Republic of Macedonia.

Starting from 1998, EIB assistance in the Republic of Macedonia was directed towards improvement of the transport and the energy sector, as well as towards development of small and medium-sized enterprises.

Transport

projects:

construction of 31.2 km of Stobi-Demir Kapija section as part of corridor X, and 35.7 km of Skopje-Tetovo E-65 as part of corridor III. The Project was successfully completed at the end of 2004.

by EBRD.

APEX Global Loan

In 2001, EIB granted a global loan for small and medium-sized enterprises in the

to support small and mediumsized investments by private sector companies, as well as infrastructure projects by municipalities. This APEX Global loan is realized through the following banks: Komercijalna Bank-Skopje, Stopanska Bank-Skopje, Tutunska Bank-Skopje, Ohridska Bank-Ohrid, and the Macedonian Bank for Development Promotion-Skopje as an intermediary of those banks that cannot be direct participants in the loan implementation, those being: Invest Bank-Skopje and Eurostandard Bank-Skopje, as

was placed and the Project was successfully completed.

Energy

Elektrostopanstvo na Makedonija (ESM) will support the rehabilitation and modernization of various power substations and transmission lines in Skopje and in the western part of the Republic of Macedonia. It aims to maintain and improve quality and reliability of the power supply, especially in the capital town Skopje, as well as to reduce the maintenance costs and to lower the technical losses.

Future Cooperation

Macedonian Government, the European membership, as well as with the Corporate Operation Plan of EIB for the period 2005-2007. In this period, EIB will support regional

85

WORLD BANK


and improvement of the living standards of people in the developing world. It is a devel-opment bank which provides loans, policy advice, technical assistance and knowledge

United Nations’ specialized agencies with 184 member countries. Along with the rest of the development community, the World Bank centers its efforts on reaching the Millen-nium Development Goals, agreed by UN members in 2000 and aimed at sustainable poverty reduction (www.worldbank.org).

World Bank Group (www.worldbankgroup.orginstitutions:

- International Bank for Reconstruction and Development (IBRD) reduces poverty in middle-income and poorer countries by promoting sustainable development

- International Development Association (IDA) funds the poorest countries to reduce poverty by providing interest-free loans and grants under certain eligible crite-

- International Financial Corporation (IFC), as the largest multilateral source

-

- Multilateral Investment Guarantee Agency (MIGA) insures investors against political or non-commercial risks, mediates disputes between investors and governments, advises governments on attracting investments and shares information through on-line

- International Center for Settlement of Investment Disputes (ICSID) settles investment disputes between foreign investors and their host countries.

World Bank is owned by its 184 member countries as shareholders. The number of shares that a country can have is based roughly on the size of its economy. World Bank’s government shareholders are represented by a Board of Governors as an ul-

President of the Bank chairs meetings of the Boards of Directors and is responsible for overall management of the Bank.

86


on administrative, legal and technical issues.

Policy Approach

country is known as the Country Assistance Strategy (CAS) or Country Partnership Strategy (CPS). The documents generally cover a period of 3-4 years and are prepared in a participatory way with the Government and representatives of civil society.

Bank’s plans for assistance to low-income countries are based on Poverty Reduction Strategy Papers (PRSP). They describe country’s macroeconomic, structural and social policies and programmes to promote growth and reduce poverty, as well as external

country is known as Transitional Support Strategy (TSS)1.

When preparing and implementing the development strategies, World Bank follows four principles:

1. Development strategies should be comprehensive and shaped by a long-term

3. Countries receiving assistance should lead the management and coordination of aid programmes through stakeholder partnerships, and

4. Development performance should be evaluated through measurable results on the ground, in order to adjust the strategy to outcomes and the changing world.

The Bank has two basic types of lending instruments:

works and services in support of economic and social development projects in a broad range of sectors.

- Development policy loans have a short-term focus (1 to 3 years) and provide

World Bank Group offers a limited number of grants to facilitate development projects. There is a range of mechanisms through which the Bank distributes grants: Develop-ment Marketplace, Development Grant Facility (DGF), Grant Resources for Civil Society Organizations, Global Environment Facility (GEF), InfoDev, Japan Policy and HumanResource Development Fund (PHRD), Japan Social Development Fund (JSDF), Mul-tilateral Fund for the Implementation of the Montreal Protocol, Small Grants Program,

country concerned. An appraisal of the project’s feasibility and loan terms is followed by negotiations. Loan or credit proposals on these projects are then submitted to the World Bank’s Board of Executive Directors for approval. The loan becomes effective after it has

-tant to note that the implementation of projects is managed by the relevant government

1 The Bank has recently changed the name of the TSS into Interim Strategy Note (ISN).

87


institution, referred to as the Implementing Agency, which is responsible for aspects of implementation such as procurement and selection of consultants. Project cycle of World

Phase, Appraisal Phase, Negotiation and Approval Phase, Implementation and Supervi-sion Phase, Implementation Completion Report and Evaluation Phase.

The World Bank in the Republic of Macedonia

Republic of Macedonia joined the World Bank in 1995, and, together with 11 other countries, it is part of the Dutch constituency. World Bank’s mission in the Republic of Macedonia is focused on promotion and support of job creation, as well as improvement

services and exploring toward capacity building, human resources development and infrastructure investments (www.worldbank.org.mk) .

In the period 1998-2000, WB operations were conducted according to the 1998-2000 Country Assistance Strategy. 1998 CAS outlined a programme in support of three

of Directors to grant additional exceptional access to IDA funds.Current assistance of the World Bank is conducted in accordance with the priorities

for Macedonia. World Bank’s assistance under 2004-2006 CAS is focused on:

• building human capital and protecting the most vulnerable.

The total amount of loans within the so called high-case scenario of the 2004-2006 CAS is US$ 165 million as a multi-sectoral assistance to infrastructure and private sec-tor, education, social and health sector, as well as budget support. World Bank loans are

as Macedonia is part of the Dutch constituency within the World Bank.Although the major part of World Bank assistance in the Republic of Macedonia is

consisted of IDA credits and IBRD loans that create an obligation for debt repayment, the World Bank, through its sustainable projects, is an important player in the donor’s community in the Republic of Macedonia. It works with other development partners, including the European Commission, to support Macedonia’s efforts to join the EU. It is an active participant in the DAC/OECD group efforts for aid coordination and harmoniza-tion, especially through promotion of country-based approach that emphasizes country ownership and government leadership, includes capacity building, recognizes diverse aid modalities and engages civil society, including the private sector.

Promoting the Efficient Management of Public Resources and Tackle Corruption

World Bank’s assistance within 2004-2006 CAS is focused on improvement of public

88


service reform, etc. Bank interventions are planned to further strengthen the management of public resources and to tackle corruption. Support of the public sector management reform programme was provided through Second Public Sector Management Adjust-ment Loan (PSMAL 2) in the amount of US$ 30 million. PSMAL 2 is one of a series of adjustment operations aimed at improving public sector management in Macedonia. Inorder to provide continuous reform implementation, World Bank has recently approved

the series of three successive loans over three- to four-year period. The objective of the PDPL arrangements is promotion of economic development and creation of new jobs through two pillars: (I) Improvement of investment clime in the country, and (II) Strength-ening public sector management.

In the period from 1994 to 2005, WB has approved three structural adjustment op-erations in the total amount of US$ 75 million, four sector adjustment operations of US$ 224.31 million and three emergency recovery operations in the total amount of US$ 145 million.

Promoting Job Creation through Sustainable Private Sector Growth

Within 2004-2006 CAS, World Bank will support the private sector development

8.8 million). BERIS will strengthen the capacity of the Government to improve selected areas of the business environment in an EU-oriented context. In the period 1996-1997, World Bank also approved several investment loans for promotion of the private sector growth in the total amount of US$ 37 million.

markets. Thus, it will contribute to solve the problem of one of the major administrative

system that affect creditors and property rights, 2004-2006 CAS also encounters a loan for Regulatory and Judicial Reform Project.

Large investments in electricity infrastructure are needed to diversify electricity supply and increase integration into the South East Europe Regional Energy Market and into

energy program development. Loan for strengthening transmission and dispatch of the electric energy, as well as establishing integrated regional markets in South East Europe, is planned within the 2004-2006 CAS, in addition to the Power System ImprovementProject that was approved under US$ 35 million loan in 1998.

operation of the roads and railways, as well as the border crossings and the customs system are important for realizing the country growth potential. Bank’s assistance in the transport sector within the 2004-2006 CAS is consisted of two loans: Trade and Trans-port Facilitation in South East Europe –TTFSE 2, planned to be approved in the amount

Project. TTFSE 2 would be the second phase of a multi-phased approach, initiated with TTFSE 1, for enhancing the trade competitiveness of the region as a whole and

viability, productivity and effectiveness of railway operations in the country. The Bank has already supported the transport sector in the period 1995-1999 with loans amounting to approximately US$ 54 million, and with the ongoing TTFSE 1 project approved in 2000 under loan in the amount of US$ 9.3 million that aims to reduce non-tariff costs to trade and transport and to prevail smuggling and corruption at the border crossings.

89


World Bank is also active in the agricultural sector with the ongoing Irrigation Reha-

in the amount of US$ 12.5 million that aims at enabling private farmers to fully regain the potential of the irrigated agriculture sector and to enhance the sustainability and ef-

was also supported in the period 1996-2002 with loan in the amount of US$ 7.9 million for strengthening the provision of technology and information-related services to the private farmers.

In the area of environment improvement, World Bank has administrated grants of the Global Environment Fund (GEF) for the Ohrid Lake protection and for BiodiversityProject in 2000. Cultural heritage and tourism, as one of the priorities, is supported with US$ 5 million for the implementation of Community Development and Culture Project (2001-2006).

Promoting Reconciliation, Building Human Capital and Protecting the Most Vulnerable

In addition to the Community Development and Culture Project, within the Transitional Support Strategy (TSS) in 2001, the Bank has provided two (ongoing) loans aimed at promotion of reconciliation and reintegration of communities and promotion of social inclusion. The main objective of the Community Development Project approved in 2001

efforts aimed at fostering reconciliation among its people, reducing social tensions and building local social capital. Children and Youth Development Project approved in 2001 in the amount of US$ 2.5 million will increase social cohesion through social integration of youth at risk from different socio-cultural backgrounds.

relevance of education. The support was provided in 1997 under US$ 5 million IDA credit and in 2003 under the ongoing Education Modernization Project in a form of US$ 5 million IBRD loan.

Within the 2004-2006 CAS, the technical assistance to implement reforms in health and social sectors is provided through the loans under the Health Sector Management Project (US$ 10 million) and the Social Protection Implementation Project-SPIL (US$ 9.8 million). Health Sector Management Project will upgrade the capacity of the Ministry of Health and the Health Insurance Fund to formulate and effectively implement health

Social Protection Implementation Project-SPIL will improve the effectiveness and ef-

sustainability of the pension system. World Bank previously supported both the health and the social sector. In 1996, the Bank provided a loan for transition of the health sec-tor in the amount of US$ 16.9 million, and for support of the social sector in the amount of US$ 10 million.

Other Interventions

World Bank Group is present in the Republic of Macedonia through the IFC and MIGA services, as well.

IFC has invested in the textile, pharmaceutical, telecommunication, glass-machine

-

90


equity investment in the Pro-Credit Bank. It has also been active in the company sector, providing commercial loans (Tetex, Alkaloid, Nikol-Fert and Masinomont), participating in the pre-privatization equity investment in Macedonian Telecom, as well as providing advisory services (Teteks A.D. Corporate Citizenship Initiative, Supply Chain Manage-ment Program for Makstil A.D. – SEED, and HAACP Training for Local Consultants). IFCwill continue to support the SMEs, post-privatized export-oriented companies and the infrastructure sector. Foreign Investment Advisory Service (FIAS) of IFC has provided recommendations for institutionalizing the Government’s capacity for business environ-ment reform (2004), conducted a study for administrative barriers to investment (2003) and assisted the Government in implementing legal reforms (2000) recommended in a prepared review of country’s foreign investment environment (1999) (www.ifc.org).

MIGA has issued US$ 0.35 million guarantee to the Norway Registers Development AS of Norway, covering its shareholder loan to Manor Ltd. in the Republic of Macedonia.

amount of US$ 25 million for Balkcem (Cyprus) for its equity investment in Cementarnica USJE. In 2004, MIGA launched a project, funded by the Austrian Development Agency, to provide technical assistance to Macedonia’s newly established investment promotion intermediary - the Investment Promotion Agency (www.miga.org).2

2


donors - waterwiki.netwaterwiki.net/images/f/f8/donors_in_macedonia.pdf · service of the national...

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