Project Summary:

The Mayors for Economic Growth (M4EG) Facility enters its third phase of implementation, during 2025-2028. Building on the successes and lessons learnt from previous phases, this iteration focuses on inclusive, green and innovative economic revival of secondary cities in Armenia, Georgia, Republic of Moldova, and Ukraine. It aims to empower local authorities through innovative financing, public-private partnerships, and capacity-building initiatives, thereby fostering inclusive and green economic growth.

Since its inception, the M4EG network has grown significantly, now including close to 450 members across the five countries. The initiative has successfully implemented various capability and grants programs, such as the Urban Learning Center (ULC), the Portfolio Journey, Urban Imaginaries, and Response and Renewal, which have provided short to medium-term support to local authorities in addressing economic stagnation, community well-being, and immediate crisis support.
 

Objectives:

• Improved and adaptive systemic local-level economic development planning and implementation;
• Enhanced access to finance for local authorities through support for pipeline development and financing absorption and management.
   

Expected results:

• Regional networking will provide both online and offline opportunities for members across the region, as well as with EU and international partners, to network, exchange, learn, and build new opportunities;
• Technical assistance and capability development under the Urban Learning Center, a centralized online repository of resources, including practice guides, case studies, research papers, and toolkits, accessible to all members to support their local economic development initiatives;
• Mission-oriented Economy Journey is dedicated to secondary cities in the M4EG network with a Local Economic Development Plan or similar strategy and existing ULC learning engagement to join a thematic cohort;
• Scalable local project pipelines and partnerships will engage with cities that participated in either the M4EG Phase 2 Deep Demonstrators or in the mission-oriented economic planning programme of Phase 3, ensuring continuity and building on previous experiences, results and partnerships;
• Innovation Grants for Finance and Pipeline will enable faster testing and experimentation of new modalities, instruments, mechanisms and pilots in the field of local level financing;
• Advancing Energy Resilience support program to enable communities address energy related challenges. 

Accomplishments:

• 18 new municipalities joined the M4EG network, bringing the total number of participating local authorities in Moldova to 85; 
• 11 local authorities were selected for targeted M4EG support programmes: 3 municipalities under the Mission-Oriented Economy Programme – Cohort 1; 2 municipalities under Cohort 2; 2 municipalities under the City Finance Advisory Function; and 4 local authorities under the Energy Resilience Programme;
• Mission-oriented and portfolio-based approaches were introduced at local level, supporting municipalities to move from isolated projects toward integrated local economic development portfolios;
• Advisory support was put in place to help municipalities develop investable project pipelines and bankable local projects capable of attracting and absorbing larger EU, national, and external funds;
• Around 100 representatives of local public authorities benefited from capacity-building activities, strengthening their knowledge in local economic development, portfolio approaches, own-source revenue management, and investment promotion;
• Four networking and learning events were organized, engaging more than 300 participants, with women representing more than half of all participants.