Project Summary:

The Mayors for Economic Growth (M4EG) Facility aims to enhance economic inclusive growth and job creation in the Eastern Partnership (EaP) countries by focusing on strengthening capacities of local governments, creating inclusive innovation processes for the design of investable projects, and investing in portfolios of projects, in a way that bring tangible benefits to citizens. While building on the successes and learning of phase 1, the new Mayors Facility seeks to introduce new tools and practices to address current and future challenges of municipalities in the EaP countries. Cities in the M4EG network will benefit from training and capability development as well as knowledge exchange activities focused on the development of innovative growth strategies, that are highly contextualized and build on local ecosystems. This will entail support in developing a new generation of Local Economic Development Plans (LEDPs), strategic thinking and building urban resilience. Local authorities will also benefit from new capabilities and access to funding addressing issues related to green recovery after the pandemic crisis – by integrating urban planning, gender responsiveness and innovation at the local level.

Objectives:

• Support local authorities in their participation to the M4EG initiative;
• Support the preparation and implementation of municipal projects building on approved LEDPs.

Together with the EU, the Facility will introduce portfolio approach, a method built on the assumption that the world is complex and operates through systems. With this mindset, the proposed method will support municipalities in building programs that incorporate systems lens, addressing challenges from multiple angles, designing initiatives that are coherent and connected, and practice agile and adaptive management.

Expected results:

• Strengthened capacities of the local authorities to apply systems thinking and innovation tools in local governance;
• Implementation of the Portfolio Approach, with financial support for municipalities to test and scale transformative local interventions;
• Implementation of the Urban Imaginaries programme, providing mentoring and financial support for small-scale, citizen-driven urban innovation projects;
• Development of new-generation Local Economic Development Plans using the Pathways for Economic Growth framework (P4EG), integrating green, digital, and inclusive dimensions;
• Improved municipal access to learning and peer exchange via the Urban Learning Center;
• Increased capacity to mobilize alternative financing as crowdfunding and investment-readiness support for local development;
• Improved capacity of local authorities to provide inclusive services and community support for refugees;
• Implementation of the EU Response & Renewal mechanism, providing financial assistance to municipalities to strengthen resilience and support refugee-hosting communities.

Accomplishments:

• Ceadîr-Lunga Municipality developed an integrated urban portfolio through the Portfolio Journey, combining public building renovation, solar-powered upgrades, smart street lighting, sustainable transport solutions, business incubator modernization, investor outreach, and community-focused green education programmes; building on an initial M4EG grant, the municipality successfully leveraged the portfolio approach to attract additional financing from complementary sources, significantly scaling investments and accelerating the local energy transition and resilience efforts;
• Through the Urban Imaginaries initiative, Călărași and Cahul implemented community-led waste management solutions, including at least 13 selective recycling points serving over 1,600 households, alongside awareness campaigns and education programmes promoting circular economy practices and behavioral change;
• Five municipalities benefited from EU Response & Renewal grants to implement locally driven recovery and resilience projects: renovation and thermal insulation of a kindergarten (Drochia), establishment of a multifunctional social services centre (Copceac), creation of a business hub (Volintiri), development of a refugee integration and skills centre (Cărpineni), and procurement of public transport assets including minibuses and a bus station (Cimișlia), contributing to improved service delivery and local economic activity;
• Refugee-related services were rolled out in at least 14 municipalities, addressing the needs of communities impacted by the influx of over 1 million refugees from Ukraine, through actions including installation of public Wi-Fi hotspots, delivery of Romanian language, ICT and employment-oriented courses, youth engagement activities, and deployment of Ukrainian Friendship Officers (UFO) coordinated with the Congress of Local Authorities of Moldova (CALM), strengthening local response capacity and social cohesion;
• Ten localities completed Moldova’s first Crowdfunding Academy, developing and launching fundraising strategies targeting local communities and diaspora, enabling municipalities to diversify financing sources and pilot alternative funding mechanisms for small-scale local development projects;
• Over 150 municipal staff from more than 40 municipalities in Moldova completed Urban Learning Center courses, strengthening competencies in areas such as just transition, inclusive economic development, investment planning, access to finance, and participatory governance, contributing to sustained institutional capacity development;
• Strășeni and Stăuceni piloted the Pathways for Economic Growth (P4EG) framework and developed next-generation Local Economic Development Plans, integrating systems thinking, stakeholder engagement, and investment-oriented approaches to local planning;
• M4EG municipalities benefited from structured international technical assistance provided by partners such as Arup, Climate-KIC, and TalTech, applying systems thinking, portfolio design, and innovation methodologies to identify new economic trajectories and design bankable project pipelines;
• At least 65 municipalities in Moldova actively participated in the M4EG network, engaging in over 20 national and regional learning and networking events and reaching more than 70,000 people through communication and outreach activities, strengthening peer-to-peer exchange and visibility of local development initiatives;
• Three municipalities from the security zone implemented energy efficiency and green transition interventions, including building retrofits and renewable energy solutions, contributing to reduced energy consumption, improved public infrastructure, and alignment with national and EU green transition priorities;
• M4EG support enabled municipalities to design and initiate pipelines of investable projects and improve access to external financing, including engagement with international financial institutions and participation in dedicated funding and finance training programmes, strengthening their role as local economic actors and investment promoters;
• The project strengthened local governance and community engagement by introducing participatory tools such as social listening and co-creation processes, resulting in improved dialogue between local authorities, citizens, and private sector actors, and increased responsiveness of local development interventions.