Mayors for Economic Growth Facility

Duration:2021 – 2024
Budget:US$14.25 million regional budget
Donor:European Union
Coverage:Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine
Beneficiaries:Local authorities, residents of secondary cities, civic groups, and the private sector
Focus Area:Inclusive Growth
Partners:State Chancellery, Ministry of Economic Development and Digitalization, Local Public Authorities
Project Document:Mayors for Economic Growth Facility
See more information about the project on the transparency portal.


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.


  • 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:

  • Establish a Learning Centre that will offer learning opportunities on innovative methods to all members of the network. This learning platform will offer access to a range of tools that will aim to build capacities on system transformation and complexity, foresight, sensemaking, innovative finance models, to utilize inclusive innovation processes for green recovery and development of local authorities. This will be accessible to the entire network of 350+ cities;
  • Upgrade the concept and methodology to develop LEDPs, and support interested municipalities to devise new generation initiative;
  • 20-30 pilots from participating countries will implement innovation projects with financial assistance from the project;
  • 12 or more local authorities from the EaP region will be selected to undergo a deep learning and coaching journey in developing and activating portfolios, including access to investments through an annual Portfolio Call for Proposals, which may lead to approximately 50 development pilots implemented;
  • Regional forums, as well as national platforms, will be in place to exchange on emerging practice, inspiring action, and lessons among local governments and other stakeholders.


  • Emergency support provided to refugees, targeting refugee centres with the view to support their status upgrade, improved staying and sanitation conditions, and access to basic service for refugees from Ukraine. The assistance included first aid kits, home appliance, furniture and bedclothes, IT equipment for access to Internet and digital services etc.

  • Continued support offered through the Congress of Local Authorities to help LPA’s efficiently and effectively coordinate refugee assistance by ensuring an open dialogue with the Government;
  • Portfolio Journey – City of Ceadîr-Lunga was selected and assisted in the design of its first portfolio in the energy efficiency field;
  • Urban Imaginaries – two localities selected, Călărași and Cahul, were assisted in the design of their projects, combining technical assistance and inspiration sessions to support interventions that can become catalysts for urban make-over. The projects are based on improving the household waste collection service.
European Union
2022$368 735$230,845
2023$906,546 $883,510