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 developed an integrated urban portfolio through the Portfolio Journey, combining public building renovation, solar-powered upgrades, smart street lighting, sustainable transport, business incubator modernization, investor outreach, and community-focused green education and support programmes to drive the local energy transition;

• Through the Urban Imaginaries initiative, Călărași and Cahul implemented community-led waste management solutions, including 13 selective recycling points serving over 1,600 households;

• Five municipalities benefited from EU Response & Renewal grants to implement locally driven recovery projects: renovation and thermal insulation of a kindergarten (Drochia), a multifunctional social services centre (Copceac), a business hub (Volintiri), an integration centre (Cărpineni), and procurement of minibuses and a bus station (Cimișlia);

• Refugee-related services were rolled out in 14 municipalities, with actions including public Wi-Fi, language and ICT courses for refugees, youth engagement activities, and Ukrainian Friendship Officers coordinated in partnership with the Congress of Local Authorities of Moldova to align local actions with the national refugee response;

• 10 localities completed Moldova’s first Crowdfunding Academy, developing strategies to raise community and diaspora funding for local development;

• Over 150 municipal staff from Moldova passed Urban Learning Center courses, gaining skills in just transition, inclusive cities, and funding access and other relevant topics;

• Strășeni and Stăuceni piloted the P4EG framework and developed next-generation local economic development plans;

• M4EG municipalities benefited from international expertise provided by Arup, Climate-KIC, and TalTech, applying systems thinking and portfolio design tools to support urban transformation.