Financial Assistance to accelerate Local Economic Development in Moldova

Deadline: 23-Feb-23

The Switzerland-PNUD project “Resilient and inclusive markets in Moldova” (2023-2024) launches the competition for the selection of three beneficiary micro-regions. PRIM supports local communities to become more inclusive and developed by facilitating the creation of micro-regions to ensure a sustainable local economy with new jobs, involving both the local population and return migrants and refugees.

The strategic goal of the PRIM project is to enhance the inclusive, competitive, and sustainable economic development, and promote equal access to decent work at the local and (micro)-regional levels, by leveraging the enhanced multi-stakeholder cooperation, improved business support services and complementary regulatory frameworks.

The project will enhance sustainability of the results from the previous efforts supported by the Swiss Government, shape them to the new political and socio-economic developments, by embracing and promoting relevant policy and community-action innovations and by ensuring engagement of all relevant stakeholders in the design and implementation of local development solutions for building responsive institutions, inclusive economy, and resilient communities. In light of the regional security environment that is expected to remain turbulent even in the most optimistic scenarios, the project is intended to bring a valuable contribution to the triple humanitarian-development-peace nexus at the local/regional level.

The three micro-regions beneficiaries of the PRIM project (which will include at least five level-one territorial administrative units), will be eligible for a comprehensive package of technical and financial assistance in order to advance the local economic development on the basis of micro-clustering, including for:

• Creating, institutionalizing and advancing the development of micro-clusters (including financial assistance of up to USD 400 thousand per micro-cluster).
• Identifying and implementing certain innovative solutions for digitalizing the business processes (including financial assistance of up to USD 40 thousand per micro-cluster).
• Supporting innovative initiatives for developing and promoting local investment offers.
• Developing entrepreneurial skills and local capacities, including study visits.

Implementation Period: The proposed activities and assistance are to be implemented in the period April 2023 – December 2024.

Eligible Entities

• Any micro-region in the Republic of Moldova that includes at least 5 level-one local public administrations, located close to each other. Except for:
  • Ungheni and Cahul districts, beneficiaries of the “EU4Moldova: Focal Regions” programme.
  • Rezina and Soroca districts, beneficiaries of the Local Employment Partnerships (LEPs), implemented by the International Labour Organization.

Eligibility Criteria

• The following minimum criteria should be met to consider the applicants eligible:
  • Micro-region
    • The applications shall be submitted jointly by a local partnership composed of:
      • At least 5 Local Public Authorities (1st level / towns, villages, communes) and
      • At least 5 private sector entities representing a similar value chain.
    • The localities from Ungheni and Cahul districts, beneficiaries of “EU4Moldova: Focal Regions” programme and from Rezina and Soroca districts, beneficiaries of the Local Employment Partnerships (LEPs) implemented by ILO, are not eligible.
  • Applicant
    • The proposals can be submitted by an applicant partner, which can be:
      • A level-two LPA or the Executive Committee of ATU Gagauzia.
      • A sectoral, local, regional and national business association.
      • A Local Action Group (LAG); or
      • one of the 5 level-one LPAs which are part of the micro-region.
  • Terminology
    • Micro-region – compact geographic territory with similar economic specialization, represented by at least 5 level-one territorial administrative units from one or several close districts.
    • Micro-cluster – geographic concentration (on the territory of at least 5 level-one territorial administrative units) of at least 10 private companies and interconnected institutions from the same value chain.
    • Value chain – a series of consecutive steps for transforming and moving a product (within the microregion) from raw material until selling it to the final consumer.
  • Population
    • Each micro-region should have at least 12,500 inhabitants.
  • Partnership
    • The application shall confirm the commitment of local partners to pro-actively cooperate for the institutionalization and advancement of a thematic microcluster, based on a feasible and substantiated development concept for job creation at the local level and value chain upgrade.
  • Local cofinancing
    • The applications shall confirm the commitment of the local partners to cofinance the potential investment interventions (both in-kind and financially) in the amount of at least 40% (of which – at least 25% financial).

For more information, visit UNDP.