USAID’S BUSINESS ENABLING PROJECT

USAID’S BUSINESS ENABLING PROJECT QUARTERLY REPORT: FOURTH QUARTER 2016

January 10, 2017

This report is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of Cardno Emerging Markets USA, Ltd. and do not necessarily reflect the views of USAID or the United States Government.

USAID’S BUSINESS ENABLING PROJECT QUARTERLY REPORT: FOURTH QUARTER 2016

Submitted by:

Cardno Emerging Markets USA, Ltd. Submitted to:

USAID Serbia Contract No.:

169-C-00-11-00001-0

USAID’s Business Enabling Project Quarterly Report: Fourth quarter 2016 — Page i

TABLE OF CONTENTS

LIST OF ACRONYMS ....................................................................................................................... 2

PROJECT OVERVIEW ..................................................................................................................... 4

HIGHLIGHTS DURING THE REPORTING PERIOD .......................................................................... 5

REVIEW OF PROJECT PROGRESS ................................................................................................ 8

ADMINISTRATIVE AND GENERAL ACTIVITIES ............................................................................................ 8

COMPONENT 1 .................................................................................................................................... 9

COMPONENT 2 .................................................................................................................................. 15

COMPONENT 3 .................................................................................................................................. 18

OUTREACH ....................................................................................................................................... 21

SUBCONTRACTS ........................................................................................................................... 23

BEP FINANCIAL REVIEW ............................................................................................................... 25

COMPONENT 1 .................................................................................................................................. 26

COMPONENT 2 .................................................................................................................................. 26

COMPONENT 3 .................................................................................................................................. 27

ATTACHMENT 1: BEP WORK ORGANIZATION ........................................................................... 28

ATTACHMENT 2: LIST OF MEDIA PUBLICATIONS ...................................................................... 29

ATTACHMENT 3: PROGRESS VERSUS WORKPLAN .................................................................. 35

ATTACHMENT 4: PROGRESS VERSUS PERFORMANCE MONITORING PLAN ......................... 52

ATTACHMENT 5: BEP SUBCONTRACTING UPDATE .................................................................. 63

USAID’s Business Enabling Project Quarterly Report: Fourth quarter 2016 — Page 2

LIST OF ACRONYMS

Amcham American Chamber of

Commerce in Serbia MoAEP Ministry of Agriculture and

Environmental Protection

ALCS Association of Leasing Companies in Serbia

MoE Ministry of Economy

ASB Association of Serbian Banks MoF Ministry of Finance

BD Budget Department MoLEVSI Ministry of Labor, Employment, Veterans' and Social Issues

BEP Business Enabling Project MoTTT

Ministry of Trade, Tourism and Telecommunications

BIS Budget Information System MSME Micro, small and medium size enterprises

BRA

Business Registry Agency NALED National Alliance for Local Economic Development

CoB City of Belgrade NBFI Non-Banking Financial Institution

DEU Directorate for E-Government NBS National Bank of Serbia

EBRD

European Bank for Reconstruction and Development

OECD Organization for Economic Co-operation and Development

EvC Evaluation Committee OSCE Organization for Security and Co-operation in Europe

EU European Union PDA Public Debt Authority

FC Fiscal Council

FDI Foreign Direct Investments PEFA Public Expenditure and Financial Accountability

FIC Foreign Investors Council PEMPAL World Bank’s Public Expenditure Management Peer Assisted Learning

FREN Foundation for Advancement in Economics

PEOs Professional Enforcement Officers

FSR Fiscal Strategy Report PIM Public Investment Management

GDP Gross Domestic Product PMP Performance Monitoring Plan

GoS Government of Serbia PPD Public –private dialogue

HRMS Government of Serbia Human Resource Management Service

PPS Public Policy Secretariat

IMF International Monetary Fund RFP Request for proposal

IOSCO International Organization for Securities Commission

RGA Republic Geodetic Authority

JA Judicial Academy SAI State Audit Institution


JRGA Judicial Reform and Government Accountability

SAM Serbian Association of Managers

KEPU KEPU ledger SBRA Serbian Business Registries Agency

LoES Law on Enforcement and Security

SCC Serbian Chamber of Commerce

LoIO Law on Inspection Oversight SCM Standard Cost Model

LPC Law on Planning and Construction

SCTM Standing Conference of Towns and Municipalities

MFD Macro Fiscal Department SME Small and Medium Enterprises

MFI Micro Finance Institutions SORS Statistical Office of the Republic of Serbia

MoFA Ministry of Foreign Affairs UNDP United Nations Development Program

MoH Ministry of Health WB World Bank

MoJ Ministry of Justice WEF World Economic Forum

MoPALSG Ministry of Public Administration and Local Self –Government

MCTI Ministry of Construction, Transportation and Infrastructure


GoS Partners

BEP works in partnership with the following GoS institutions under joint work plans and action plans:

Ministry of Agriculture and Environmental Protection

Ministry of Construction, Transportation and Infrastructure

Ministry of Finance Ministry of Economy Ministry of Labor, Employment, Veterans

and Social Policy Ministry of Justice Ministry of State Administration and Local

Self-Government Ministry of Trade, Tourism and

Telecommunication National Bank of Serbia (independent

body) Public Debt Administration Secretariat for Public Policies of the GoS Serbian Business Registers Agency Fiscal Council (independent body) Doing Business Working Group

Republic Geodetic Authority

PROJECT OVERVIEW

USAID’s Business Enabling Project, implemented by Cardno Emerging Markets USA, is a seven-

year initiative launched in January 2011. The Project is helping the Government of Serbia (GoS) improve the competitiveness of the Serbian economy and its private sector businesses. The Project

provides technical assistance, training, and other support to improve the business enabling

environment, maintain macroeconomic stability, and further develop financial markets. The Project is demand driven: all activities are based on the priorities of the private sector and GoS.

The Business Enabling Project (BEP) consists of three major

components:

Component 1, Business Regulation and Economic Governance, streamlines laws, regulations, and institutions; improves regulators’ capacity to implement

laws; and improves analysis and public-private dialogue.

Component 2, Macroeconomic Policy and Public Financial Management, helps the Government

implement new budget and fiscal responsibility laws,

improve budgeting, increase public disclosure and transparency, strengthen public debt management, and

improve economic analysis and forecasting.

Component 3, Financial Market Development, improves regulatory frameworks for non-bank

institutions, develops capacity to strengthen and expand

capital markets, and improves conditions for debt market

development.

The project’s approach to achieving reforms is to help the GoS work closely with the private sector and outside experts

to make reforms that improve business competitiveness. The reforms reduce the time and money spent by Serbian

businesses to comply with laws and regulations and help the

GoS to be more efficient. The reforms also enable businesses to attract necessary investment at an

appropriate cost. As a result, Serbian businesses have a better chance to be competitive in the global economy, leading to export-led economic growth and increased employment.

BEP used a 19 person staff several Serbian and expatriate medium and short term advisors, a grants

fund, and subcontracts to provide technical assistance to the GoS and other counterparts.


HIGHLIGHTS DURING THE REPORTING PERIOD

This report covers the twenty-fourth quarter of BEP’s operation – October 1 to December 31, 2016.

The project continues intensive technical assistance in several areas of focus, including SME access to finance, inspections, construction permitting, and public financial management. BEP is working

closely with government and non-governmental partners to ensure that Serbian institutions can

continue all of these reforms after BEP ends. We want to highlight the following noteworthy achievements during the period:

Serbia Leaps Ahead in World Bank’s Doing Business Ranking Thanks to Construction

Permitting Reform Supported by BEP – Serbia is ranked 47th in the World Bank’s Doing Business

2017 list, published on October 25th, an improvement from the 59th place Serbia held in the 2016 rankings. This leap in the overall assessment of the ease of doing business comes primarily as a result

of the remarkable improvement in the Dealing with Construction Permits indicator during the past

three years: Serbia progressed from 186th place in the 2015 edition of Doing Business to 139th in the 2016 report, and then rocketed to 36th place in the Doing Business 2017 report. BEP, has been

spearheading construction permitting reform by providing technical assistance to the Ministry of

Construction Transport and Infrastructure (MCTI) for conceptualizing the reform, drafting the necessary laws and bylaws, and implementing the reform. BEP helped achieve the Doing Business

improvement by serving on the core of the Joint Task Force set up by the Government of Serbia to

coordinate the Government’s efforts to implement reforms of the business environment and

communicate achievements to the World Bank’s Doing Business Team. To mark this result and plan activities for further improvement in ease of doing business, BEP and NALED organized the

conference entitled “Doing Business 2017: Strengthening Competiveness of Serbia”, attended by

some 270 stakeholders.

BEP Releases Findings of Sixth Annual Business Survey – Significant Improvement in Inspections and Construction Permitting; Inadequate Financing of MSMEs – On November 17, BEP presented the findings of its sixth annual Business Survey. The results of the survey, carried out by the Ipsos Strategic Marketing for BEP on a sample of 1,032 businesses and sole proprietorships, have revealed that recent business environment reforms are making it easier for them to operate. “One of the greatest improvements shown by this year’s survey results is the positive change in the private sector’s perceptions of the Serbian government’s inspection system. This year, we also saw the impact of the Government’s efforts to reform Serbia’s construction permitting system. This reform was recognized as one of the most important business reforms implemented in Serbia in the last several years,” said U.S. Ambassador Kyle Scott. Deputy Prime Minister and Minister of Construction, Transportation and Infrastructure Zorana Mihajlovic announced that further improvements to construction permitting would follow, especially underlining removal of the para-fiscal fees and charges for the construction industry. Businesses reported significant impact from several reforms, particularly inspections and construction permitting reforms, and the number of firms who expect to hire new staff is now greater than at any time since the Business Survey was first performed in 2011. Businesses still see plenty of room for improvement: the majority have said they continued to face challenges with issues such as para-fiscal charges, administrative procedures, and access to finance.

National Assembly Adopts Real Property Valuation Bill Prepared with BEP’s Comprehensive

Technical Assistance – The Real Property Valuation Law, adopted on December 28, introduces

institutions and procedures that will improve real estate valuations. Improved valuations will lower


risk on secured loans, will help Serbia deal with the issue of non-performing loans (NPLs), and will

ensure soundness of the financial sector. The law will increase the quality of the real property valuer profession and allow the creation of institutional infrastructure for reliable real estate valuation. The

Law includes provisions on continuing professional development that will ensure that all real estate

valuers have appropriate expertise. It also introduces National Standards and a Code of Ethics and

Professional Conduct for licensed valuers; prescribes conditions for licensing and mandatory professional training; and establishes an independent Professional Committee to prescribe training and

examination curricula.

BEP Helps Improve Enforcement of Judgments Efficiency – On December 2 and 3, BEP, Chamber of PEOs, Supreme Court of Cassation (SCC) and the MoJ organized a conference focused

on harmonizing practice in implementation of the Law on Enforcement and Security. The conference

gathered more than 250 professionals, including SCC judges, enforcement judges from main basic and commercial courts in Serbia, officers and members of the Chamber of PEOs, and the business

community. Discussions centered on resolving key issues in implementation of the Law identified to

date, including inconsistencies in court practice, duration and costs of enforcement, and difficulties in

uncovering debtors’ assets. A presentation by Dragana Stanojevic, BEP Chief of Party, focused discussion on the impact that enforcement and collection have on legal security of doing business in

Serbia. The organizers will follow this activity up by publishing conclusions of the conference and

distributing them to all PEOs and courts so as to facilitate uniform application of enforcement procedures. BEP’s assistance in the area has been contributing to reducing the time required to

enforce judgments and improving the consistency of enforcement. This has improved public

perception of the enforcement process. This activity is also crucial for Serbia’s EU integration process, as the 2016 Progress Report points out that “Serbia should in particular further step up

measures to reduce the backlog of cases and standardize court practice.”

The number of construction permits issued in

October 2016 stood at 1,464, making this by far the

most successful month on record – The number of

building permits in October 2016 was 30 percent greater compared to the same month one year ago.

There is now no doubt that 2016 as a whole will prove

to be the best year on record in terms of construction

permits issued: there was an increase of nearly 19 percent in the number of permits issued over the first

ten months of 2016 relative to the same period of 2015.

The expected value of construction works has risen by more than 8 percent over the first ten months of 2016

relative to the same period of 2015.

National Assembly Adopts 2017 Budget Bill and Bill to Upgrade Budget Procedures, both

developed with Support from BEP – The 2017 Budget Bill and the amendments to the Budget

System Law reflect some of BEP’s accomplishments in improving the Government of Serbia’s budget process over the past six years. The Budget Bill presents expenditures of all direct budget

beneficiaries in the program budget format, while its Justification Document includes detailed

program-based information (objectives and performance indicators) linked to program budgets of budget beneficiaries. In recent months, BEP provided extensive support to the MoF Budget

Department for preparing the 2017 Budget Bill. Improvements to the Budget Bill include removal of

redundant information from the Budget Bill and focusing objectives and performance indicators on effectiveness and efficiency of subsidies, projects, and public services. At the same session, the

National Assembly adopted amendments to the Budget System Law that aim to strengthen budget

transparency and oversight of effectiveness and efficiency of public spending. The amendments were


prepared by the MoF Budget Department with support from BEP. Enhancements include introduction

of mandatory publication of detailed program budget information (program and sub-program descriptions, goals, and performance indicators) and annual and semi-annual program performance

reporting by budget beneficiaries. The changes enable full utilization of a program and performance

measurement framework in planning, prioritization, and informed budgetary decision-making, and

facilitate greater accountability of government institutions in public spending.

BEP Presents Inspections Reform in Serbia to Global Stakeholder Audience – Serbian Inspections Reform Meets EU, OECD and WB Standards of Good Regulation. BEP organized a study tour for Serbian inspection reform leaders to London, United Kingdom, from October 10 to 14. Participants in the study tour took part in an international conference entitled “Shaping Business Environments for Global Growth and Prosperity”, organized by UK Regulatory Delivery. The conference was designed for countries aiming to develop their regulatory environments to promote trade and investment opportunities, provide certainty and confidence to business, and generate growth and prosperity, and gathered over 200 delegates from 55 countries. The Serbian delegation learned about the most advanced trends and practices in risk-based regulation, regulatory delivery, and inspection oversight in the areas of standards, waste management, intellectual property, product safety, and ease of movement of goods across borders. Serbia was one of the very few countries invited to present at the conference, which demonstrates international recognition of the scope and quality of Serbia’s reforms. International and Serbian experts with BEP and the State Secretary of the Ministry of Public Administration and Local Government presented features of the Law on Inspection Oversight to the conference. The Serbian participants in the study tour will apply their newly-acquired knowledge in developing inspections regulations, guidelines, and methodologies for inspection oversight, as well as in planning for continued inspections reform.

Serbia Improves Construction Permitting Regulations with Support from BEP – BEP continues to play a leading role in identifying challenges in implementation of construction permitting reform and proposing changes to the legal framework to address those constraints. BEP helped eliminate

contradictions between the Water Law and the new Law on Planning and Construction (LPC) that had

been hindering implementation of reformed construction permitting procedures in many cases that

involve access to, or use of, bodies of water. To ensure consistency and sustainability of the legal framework for water-related construction permit applications, BEP and NALED worked with the two

ministries for several months to draft amendments to the Water Law. BEP also helped the MCTI

develop amendments to two bylaws critically important for construction permitting procedures that govern the one-stop-shop procedure and engineering designs. The two bylaws, among other

improvements, clarify procedures for exchange of official documentation between investors and

permitting bodies, further reduce room for arbitrary decisions by permitting officials, and expand definition of situations when an investor is not required to pay fees in permitting procedures. BEP

worked intensively with the MCTI, NALED, and other stakeholders to make sure that the

amendments to these important bylaws were properly discussed with both public administration and

the private sector. Adoption of the amended Water Law and amendments follow BEP’s work to achieve harmonization in the areas of the energy, fire safety, and state survey and cadaster.

BEP and MoF institutionalized the Program Budgeting Course in the Government’s regular

training program. The course is now an integral part of the General Professional Training Program offered by the Government’s Human Resources Management Service (HRMS) to all public


administration employees. The two-day Program Budgeting Course developed by BEP focuses on the

system of planning, decision-making and preparation of the budget document, and covers topics such as development of PB structures, costing in line with PB methodology, integration of planning and

budgeting processes, setting of objectives and performance indicators, as well as introduction of

performance monitoring and reporting procedures. Two courses were organized during October when

six MoF Budget Department analysts served as trainers. As a result, they have received Trainer Certificates enabling them to continue to deliver the course as it becomes a standard part of the

trainings provided by HRMS. Institutionalization of this course ensures a permanent mechanism for

capacity building across the government in program budgeting.

BEP Continues Trainings to transform Inspections – BEP in cooperation with the Ministry of

Public Administration and Local Self-Government designed and started implementing a set of

advanced soft skills trainings for inspectors. The trainings will help inspectors to further develop their communication, mediation and decision-making skills, learn more about conflict resolution and

prevention, and improve other soft skills relevant for inspection oversight. The idea behind this

training is to help in an ongoing transformation of inspectors’ work culture and work ethics, and

change their work behavior to focus on ensuring compliance. The participants in the two-day interactive trainings will apply the skills they learned to their daily work, and will provide assistance

to their colleagues to also develop and apply these skills. In the course of eight months, BEP aims to

train more than 200 inspectors. Three out of eight planned trainings have already been conducted.

REVIEW OF PROJECT PROGRESS

Administrative and General Activities

BEP’s Sixth Annual Business Survey shows significant improvements in business environment

but inadequate financing for MSMEs – On November 17, BEP presented the findings of its sixth

annual Business Survey, a sophisticated tool for learning about major needs for improvement to the business environment and measuring impact of implemented reforms. The results of the survey can be

found here. Important results include: 81 percent of businesses surveyed believe that inspectors are

http://bep.rs/images/gallery/2016_11_17/BEP%20Survey%202016%20Executive%20Summary.pdf


well trained and 75 percent believe they act upon clear and understandable legislation; these figures

are up from 37 percent and 28 percent in 2011, respectively. Also, the time needed to obtain construction permits has more than halved compared to the 2013 Business Survey. Businesses still see

plenty of room for improvement: the majorities have said they continued to face challenges with

issues such as para-fiscal charges, administrative procedures, and access to finance. Still, the findings

of the 2016 Survey have revealed that the number of firms who expect to hire new staff is now greater than at any time since the Business Survey was first performed in 2011.

BEP Presented Good Regulatory Practice at Western Balkans Regional Conference – USAID

Serbia, in cooperation with the Regional School of Public Administration (ReSPA) and the Regional Cooperation Council, co-organized a regional conference entitled “Better Regulation and

Competitiveness in the Western Balkans.” The Conference took place in Belgrade on December 1 and

2 and brought together public institutions, business associations, academics, researchers, think-tanks, and international development organizations interested in better regulation for a business-friendly

environment. The Conference covered regulations in the context of EU accession, regulatory trends in

the Western Balkans, consultations in the legislative process, and influence of better regulation on

competitiveness. At the Conference, BEP Chief of Party Dragana Stanojević and Senior Expert Milan Stefanović presented inspection reform in Serbia as a case study of best practice in the regulatory

process. BEP’s presentation included a comprehensive review of the inspection reform process,

including drafting of the Law on Inspection Oversight and its implementation. At another panel, BEP Chief of Party presented the 2016 Business Surveywhich, along with business perception indexes,

international organizations’ reports, and official statistics shows that Serbian businesses have become

more competitive as a result of inspection and construction permitting reforms supported by BEP.

BEP Participated in OECD Coordinators Meeting on SMEs Business Act Assessment for

Western Balkans and Turkey – At the invitation of the Ministry of Economy (MoE), a BEP

representative participated in the OECD Coordinators Meeting, held in Paris, France on December 16.

The Meeting was a whole-day event covering various topics regarding the state of SME policies in the Western Balkans and Turkey. The event was a venue where experts and government officials from

countries in the region could exchange experiences, discuss current topics, and gain new and fresh

ideas for future reforms. BEP shared with participants its experience with factoring reforms in Serbia, emphasizing the fact that the lack of regulation motivated the factoring industry to seek better

governance in the field. A presentation by Mr. Uri Gabai, from the Israel Innovation Authority on

Venture Capital, helped BEP learn more about how to enhance the venture capital industry and how

Israel addressed these issues. The BEP representative was able to gain understanding of the broader picture of current trends in access to finance and establish connections with several high-level

officials who prove to be relevant for advancement of this topic seen as crucial by Serbian SMEs.

Component 1

Under Objective 1, Task 1, "Improve Inspections Operations and Organization" BEP has been active on several fronts to bring fundamental changes to the regulatory framework and practice of

inspection oversight in Serbia. This includes technical assistance to develop and implement the Law

on Inspections Oversight, harmonize sector laws and bylaws, develop e-inspections, train inspectors, and coordinate the work of inspectorates.

For the past two years, BEP has been cooperating with the Directorate for e-Government and the

MoPALSG to develop the e-Inspector software platform. BEP has assisted this initiative by preparing a business process analysis and designing terms of reference for e-Inspector software, and has helped

to resolve administrative issues related with public procurement for the system.

On November 10, the Directorate for E-Government (DEU) published a call for bids and issued

tender documentation for procurement of software development services for an integrated inspections information system (“e-Inspector”). This tender is result of an analysis of inspections’ business

processes completed jointly by the DEU and BEP. Software development is the key phase in the

creation of the e-Inspector system. The successful bidder should develop a joint platform for all inspections, introduce the system at four pilot national inspectorates, and conduct a train-the-trainers


course at those inspectorates within 18 months. BEP will continue providing technical assistance to

the DEU and MoPALSG through the entire process of developing the e-Inspector system. e-Inspector is designed to significantly help implementation of risk-based inspections, decrease administrative

burden on businesses and inspectors, and increase the effectiveness of inspections. BEP assisted the e-

Government Directorate in responding to questions in regard to the tender procedure and evaluation

of received proposals. The successful bidder was selected in December 2016.

BEP has been aiding the MoPALSG with the formation of the Inspection Oversight Coordination

Commission Support Unit. The MoPALSG, EBRD, and BEP have drafted the terms of reference and

other required documentation for a future project, to be financed by the EBRD, to provide technical and administrative support to the Coordination Commission and its Support Unit. BEP worked with a

consulting firm engaged by the MoPALSG, on analysis and development of recommendations

regarding improvement of inspection organization, transparency, advisory and preventive role, risk analysis, inspection oversight planning and inspection effectiveness indicators. The Coordination

Commission is supposed to endorse these recommendations as inspection guidelines in Q2 2017.

On November 2, the Inspection Oversight Coordination Board held its eight session. The State

Secretary and officials of the MoPALSG, heads and managers of major national inspectorates, Directorate for E-Government, City of Belgrade Inspection Secretariat, SCTM, BEP, EBRD and

Partners for Democratic Change Serbia participated in the session. The Board, with support from

BEP, defined the mechanisms and timeframe for approval of inspections’ annual plans. As a result, Serbia will for the first time have a set of mutually harmonized annual plans of individual

inspectorates, fulfilling one of the main goals of the inspections’ reform – to enhance coordination

and cooperation of various inspectorates, thus saving the time and money of Serbian businesses.

Inspections officials used the meeting of the Board to share best practices. The head of the Agriculture

Inspection for Food Safety presented experiences with development of the annual plan to allow for the

greatest possible synergy with other inspectorates, while the head of the Market Inspection talked

about lessons learned during this body’s campaign of advisory visits and advisory support to businesses, and encouraged other inspections to follow the same practice emphasizing preventive

rather than punitive activities.

On December 21, the Inspection Oversight Coordination Board held its ninth session. Mr. Željko Ožegović, State Secretary at the MoPALSG, heads and senior officials of major national

inspectorates, and BEP participated in the session. Mr. Ožegović informed the meeting about progress

with implementation of the Law on Inspection Oversight. The Board adopted the first package of

annual inspection oversight plans covering as many as fifteen inspections; these plans will be made publicly available online. The working groups reported to the Board on their activities, and Board

members provided directions designed to enhance working groups’ effectiveness. The Board also

adopted the Methodology for the On-line Survey of Implementation of the Law on Inspection Oversight, developed by BEP. The aim of the survey is to obtain input from the public in order to

better evaluate inspections’ activities. This information will facilitate analysis of initiatives aimed at

strengthening the inspection oversight system. The Board is scheduled to meet again in January 2017

BEP has also provided technical assistance in formation of the Committee for Conducting the

Inspectors’ Examination, and in development of the program and other documents related to the

inspectors’ examination. The committee has been formed, the exam questions were drafted and

published, and the exams are scheduled to start on January 22, 2017.

BEP has also identified 146 pieces of sectoral legislation that should be aligned with the Law on

Inspection Oversight and has shared its findings with the MoPALSG. BEP continues to provide expert

support to various inspections and the MoPALSG in harmonizing sectoral regulations with the inspections reform framework. BEP has awarded a subcontract to assist with sector law

harmonization with Law on Inspection Oversight. Work under the subcontract will start in January

2017. The subcontractor will be supported by BEP’s experts and consultants in these regulatory activities. Having in mind complexity and longstanding of the legislative process, there is a risk that

the completion of harmonization of sectoral inspection laws with the umbrella Law on Inspections

Oversight – including enactment of all amendments in the Parliament – will go beyond the life-cycle


of BEP.

BEP continued its intensive training program to help inspectors adopt the modern inspections procedures that BEP helped develop. BEP presented key features of the Law on Inspection Oversight

as part of a seminar for labor inspectors organized on October 11 in Tara, by the Labor Inspectorate.

BEP consultants, together with the Market and Labor Inspectorates, presented the main features of the

Law to more than 160 inspectors. Labor inspectors who completed BEP’s advanced Train the Trainers program presented several case studies and discussed challenges in practical implementation with

participants. Topics discussed included risk assessment, inspections’ oversight procedure, and

inspections’ approach to informal employment and unregistered entities. BEP’s Train the Trainers program made the exchange of knowledge and experiences at the seminar possible by providing the

know-how that inspectors needed to engage in training their colleagues.

On October 24 and 25, the head of the Agriculture Inspection, a graduate of BEP’s Advanced Train the Trainers program, and a BEP consultant jointly presented selected features of the LoIO and

guidelines for its implementation to 27 officers of various inspectorates. This was the third training

event organized by the Government of Serbia Human Resource Management Service (HRMS) based

on a program developed with BEP’s technical assistance. The HRMS now offers this training regularly every month, contributing to the sustainability of BEP’s inspection training activities. The

training focused on inspection oversight procedure, risk management, and control of unregistered

businesses.

With the same goal in mind, BEP, MoPALSG, City of Kragujevac, Šumadija Administrative District,

SCTM, and OSCE, together held a seminar on the LoIO in Kragujevac on October 26. BEP experts,

head of training at the Market Inspection, and head of Belgrade’s Zvezdara Municipality Legal and Inspection Division, also an alumnus of BEP’s Advanced Train the Trainers program, led this

interactive seminar for 100 inspectors from the Šumadija region.

As part of the fourth training event organized by HRMS on November 24 and 25, BEP consultants

and the head of the Environment Protection Inspection, who previously completed BEP’s Advanced Train the Trainers program, presented features of the Law on Inspection Oversight and guidelines for

its implementation. Through interactive sessions, trainers instructed 17 participants from different

inspectorates and public bodies. The HRMS developed this training program with BEP’s technical assistance. The training is conducted monthly on a regular basis, contributing to sustainability of

BEP’s Train the Trainers program. The training focused on inspection oversight procedure, risk

management, and control of unregistered businesses, with examples and case studies from inspection

practice.

On December 12, the Agriculture Inspection of the Ministry of Agriculture and Environmental

Protection held a seminar on the Law on Inspection Oversight for 74 of its inspectors. Presentations

and interactive sessions on risk analysis, coordination, dealing with unregistered entities, inspection oversight procedures, preventive and corrective actions, and penalty procedures were delivered by

experts from BEP, Market Inspection, Agriculture Inspection, Environmental Protection Inspection,

and Sanitary Inspection. The experts are alumni of both basic and advanced Train the Trainers programs conducted by BEP, Partners for Democratic Change Serbia, and the Ministry of Public

Administration and Local Government.

On November 17 and 18 BEP, MoPALSG, and BEP’s grantee Partners for Democratic Change Serbia

held the first advanced soft skills training for inspectors in Belgrade. The inspectors analyzed and discussed complex case studies and participated in interactive exercises and role-playing scenarios. In

particular, the training session helped inspectors further develop their communication, mediation, and

decision-making skills, and learn more about conflict resolution and prevention. The goal of this training event was to assist the ongoing transformation of inspectorates’ work culture and work ethics,

and to help make inspectors’ interactions with businesses more professional. Soft skills experts

delivered the training to 27 inspectors from several inspection bodies. BEP, Partners for Democratic Change Serbia and the MoPALSG held the second advanced soft skills training on December 6 and 7

in Nis. The soft skills experts delivered the training to 24 inspectors from various inspection bodies.

On December 15 and 16, BEP, in cooperation with Partners for Democratic Changes Serbia and the


MoPALSG, held the third advanced soft skills training session to 22 inspectors from different

inspection bodies in Novi Sad. All the participants in these two-day interactive courses will apply the newly acquired skills in their daily work and will provide assistance to their colleagues in developing

and applying those same skills. Results of the 2016 Business Survey have confirmed the effectiveness

of this approach, since an impressive 86 percent of all businesses have reported that inspectors are

now polite in dealing with businesses, up from as little as 67 percent in 2014, and only 30% back in 2011. The next soft skills training is planned for January 2017 in Belgrade.

These training activities are of critical importance for proper implementation of inspections reform,

which should contribute to making inspection controls less burdensome for compliant businesses and more efficient in dealing with delinquent ones. BEP will continue to provide assistance to

inspectorates to allow them to meet regulatory requirements and improve standards of inspection

practice.

Under Objective 1, Task 2, "Remove or reduce quasi fiscal burdens to businesses," BEP

continues to help reduce para-fiscal charges, particularly those related to construction activities. But

BEP also is trying to move forward a broader reform of para-fiscal charges. The private sector in

Serbia sees non-tax financial impositions as a major source of unpredictability and a key constraint for the business environment. Since the major streamlining campaign supported by BEP ended in 2012,

there have been no major breakthroughs in curbing para-fiscal charges on a larger scale. One such

opportunity is now offered by the Government of Serbia’s plan to adopt the Law on Charges for Use of Public Resources as a means to promote predictability in the introduction and administration of

these impositions on business. At the request of the MoF, BEP has prepared and delivered to this line

ministry a set of recommendations for streamlining some of the most important non-tax impositions, primarily related to the use of public roads and water resources, as well as to environmental

protection. Alongside these recommendations, BEP has reiterated to the MoF the importance of

vetting provisions of the future law with stakeholders, primarily with the business community, and

offered support for organizing public-private dialogue on this important subject. On September 22, the Minister of Finance re-appointed a BEP representative to the Working Group tasked with drafting the

Law on Charges for the Use of Public Resources. The Working Group is due to complete the draft of

this piece of legislation at the latest by March 31, 2017.

The Utilities Bill, submitted by the MCTI to the Government of Serbia (GoS) Finance and Economy

Committee, envisaged the introduction of a new levy, the “utility fee”. The Bill was submitted for

consideration to the Government of Serbia Joint Working Group for Advancement of Serbia in the

Global Competitiveness Indices, of which BEP is a member. Having analyzed the Bill, BEP notified members of the GoS Joint Working Group about its finding that the utility fee was designed as a

straightforward para-fiscal charge, since the payers (all legal and physical persons owning or using

immovable property) would receive no new rights or services for their money. The utility fee would, as such, share the same taxable base as property tax. As many local governments assess property tax

for physical persons at rates below the legally defined maximum, the utility fee would likely be used

as a means to shift an additional share of the burden of public finance onto businesses. Based on the input provided by BEP, the Joint Working Group communicated its concerns to the GoS Committee

for Finance and Economy. As a result, the proposed new para-fiscal charge was deleted from the Bill

that the GoS approved and submitted to the National Assembly. On another front, BEP continues to

provide the MoF Working Group for the Law on Charges for the Use of Public Goods with recommendations for streamlining para-fiscal charges, primarily related with the charges related with

public roads, water and environment.

Objective 1, Task 3, “Assist Implementation of Law on Enforcement of Judgment”

TASK COMPLETED – further work on the issue is being implemented under Component 3,

Objective 4, Task 6.


Under Objective 1, Task 4, “Streamline Construction

Permitting,” BEP’s work to help implement construction permitting reforms continues. BEP’s assistance to

conceptualize the reform, build support for it, draft

legislation, and implement the reform has already paid off,

as set forth in the text box. As a result of the legislative reforms spearheaded by BEP, the system of construction

permitting one-stop-shops began functioning in each

municipality on March 1, 2015. Starting January 1, 2016, construction permit applications have been accepted only

online through the e-permitting portal, whose design and

implementation was supported by BEP.

BEP helped achieve the Doing Business improvement by

leading the reform effort and then serving on the core of

the Joint Task Force set up by the Government of Serbia to coordinate the Government’s efforts to

implement reforms of the business environment and communicate achievements to the World Bank’s Doing Business Team.

To mark this result and plan activities for further improvement in ease of doing business, BEP and

NALED organized the conference entitled “Doing Business 2017: Strengthening Competiveness of

Serbia”, attended by some 270 stakeholders. Deputy Prime Minister and Head of the Joint Task Force

for improvement of Serbia’s position in global competitiveness indices, Zorana Mihajlovic, opened the Conference by congratulating all those who contributed to Serbia improving its standing in the

Doing Business list by 12 positions in total, and particularly to the country’s leap in ease of

construction permitting of 103 positions. The conference included set of four roundtables, of which BEP representatives moderated two, attended by Government of Serbia officials and stakeholders and

tasked with elaborating action plans for implementation of the business environment reforms. The

action plans should ensure continued improvement of Serbia’s position in the Doing Business

rankings and, more importantly, make Serbia a more attractive destination for investment.

BEP continues to work intensively with the Ministry of Construction, Transportation and Infrastructure (MoCTI) to implement the construction permitting reform, focusing on improving

efficiency of the One Stop Shop system by adjusting regulatory framework and enhancing capacities of the public administration and licensed engineers.

Contradictions between the Water Law and the new Law on Planning and Construction (LPC) have

been hindering implementation of reformed construction permitting procedures in many cases that involve access to, or use of, bodies of water. Instructions for Implementation of the One-Stop-Shop

Procedure, jointly issued by the ministries in charge of water management and construction under an

agreement brokered with BEP assistance, only partially remedied this problem. To ensure consistency

and sustainability of the legal framework for water-related construction permit applications, BEP and NALED worked with the two ministries for several months to draft amendments to the Water Law,

including an additional amendment that was submitted by the Economic Caucus. This additional

amendment prescribes in which cases an investor is required to obtain a water usage permit. Adoption of the amended Water Law ensures the harmonization of yet another important segment of the legal

framework for construction permitting, and comes after BEP helped achieve harmonization in the

areas of the energy, fire safety, and state survey and cadaster. It also gives additional impetus for alignment of the remaining body of law that is still at odds with the reformed construction permitting

procedure, including laws regulating public roads, environmental protection, administrative charges,

etc.

Besides the legislative work, BEP regulatory activities also encompassed the implementing regulations on the bylaw level. For two years now, BEP has been playing a leading role in identifying

challenges in implementation of construction permitting reform and proposing changes to the legal

framework to address those constraints. The latest achievement in this regard has been amendments to two bylaws critically important for construction permitting procedures that govern the one-stop-shop

procedure and engineering designs. Adoption of the two revised bylaws, among other improvements,

Impacts from BEP’s Assistance for Construction Permitting Reforms

Streamlined procedures, one stop shop, and e-permitting

Doing Business Ranking for Dealing with Construction Permits improved from 186th in 2015 to 36th in 2017 report.

There has been an increase of 18.7 percent in the number of construction permits issued in October 2016 relative to the same period of 2015.

The value of permitted construction works has risen by 8.3 percent in the same period.


clarifies procedures for exchange of official documentation between investors and permitting bodies,

further reduces room for arbitrary decisions by permitting officials, and improves the position of investors with regard to payments of administrative fees. Additionally, the regulatory changes should

remove some hurdles that local governments used to face in implementing public infrastructure

projects. Amendments to these important bylaws were thoroughly discussed with both public

administration and the private sector.

Electronic issuance of construction permits has expedited administrative procedures and contributed

to a significant increase in the number of construction permits issued and of the construction

industry’s output. At the same time, many permitting authorities have been archiving applications and paperwork both electronically and on paper, so further adding to their workload, already increased by

the rising number of applications. BEP has been working with the MCTI, MoPALSG, and NALED to

develop official interpretations of requirements for proper archiving of construction permitting paperwork. Technical assistance provided by BEP has allowed the MoPALSG to issue an official

legal interpretation of the legal framework endorsing electronic-only processing and archiving of

construction permitting applications. The same legal interpretation also affirms the ability of

permitting staff to electronically sign appropriate documentation and share it with other permitting agencies – an authorization previously reserved only for top officials of permitting bodies that had

been creating bottleneck in processing applications. These two interpretations will relieve permitting

bodies of the unnecessary administrative burden of printing and archiving paper forms of electronically submitted documents and will free up time of senior officials of permitting bodies by

transferring routine responsibilities to lower level officials. As a result, permitting bodies should be

able to additionally reduce the time needed to process permitting applications, and to use senior officials’ time for better managing implementation of procedures and for dealing with most complex

cases.

Late June 2016 marked sixteen months since the launch of One-Stop-Shops and six months since the

roll-out of electronic construction permitting, both introduced with significant support from BEP. At that time, BEP concluded that the reform had been implemented for long enough to initiate a

comprehensive assessment of its impact. While initial information on the effects of the reform was

positive, BEP endeavored to systematically collect and process available data on outcomes of the reformed permitting system and identify areas that require further improvement. Sources of

information used for the analysis include official statistics, surveys of investors and permitting

officials, and stakeholder interviews. The result is an 80-plus page document, entitled Impact

Assessment of Construction Permitting Reform. It documents the overwhelmingly positive effects of the reform, including streamlined procedures, reduced time and costs needed to obtain construction

permits, and increased output of the construction industry. The Impact Assessment also highlights

areas where continued focus is still needed: making sure that fees and charges policies are consistent across different permitting bodies and aligned with the actual costs of providing the relevant

administrative services; and expanding functionality and improving stability of the construction

permitting software. BEP will use findings of the Impact Assessment to inform activities aiming to sustain efficiency improvements and to make the current best performers’ results a standard across all

construction permitting bodies.

The number of building permits in October 2016 was 30 percent greater compared to the same month

one year ago. There is now no doubt that 2016 as a whole will prove to be the best year on record in terms of construction permits issued: there has been an increase of nearly 19 percent in the number of

permits issued over the first ten months of 2016 relative to the same period of 2015. The expected

value of construction works has risen by more than 8 percent over the first ten months of 2016 relative to the same period of 2015. October this year has broken record number of construction permits from

September, which in turn, has broken record from July of this year. However, it would not be realistic

to expect similar records in the near future, as the month of October is traditionally a highpoint of the year, followed by a recession in number of construction permits issued, usually spanning from

November to March or April.

Objective 1, Task 4, "Reduce the Employing Workers Burden," has been successfully completed.


Under Objective 2, Task 1, "Improve Public Private Dialogue," six public-private dialogue (PPD)

events were held during the quarter. The events were:

■ "Doing Business 2017: Strengthening Competiveness of Serbia, Belgrade October 10.

■ 2016 South East Europe NPL Forum in Belgrade, October 14.

■ "Dialogue between the judiciary and businesses - a step closer to efficient enforcement",

Krusevac, October 20.

■ "Dialogue between the judiciary and businesses - a step closer to efficient enforcement", Pancevo,

October 25.

■ Business Survey event, Belgrade November 17.

■ Enforcement conference, Novi Sad, December 2 and 3;

Under Objective 2, Task 2, "Implement Regulatory Reforms," BEP has been providing technical assistance to the relevant stakeholders to improve Serbia's position on WB Doing Business Report. Our main contribution was made through participation in the Government of Serbia Joint Working

Group for Advancement of Serbia in the Global Competitiveness Indices lead by Deputy Prime-

minister Zorana Mihajlovic. BEP is only donor implementing organization appointed as a member

of this Working Group. BEP used its position in this Joint Work Group to promote the need for further reforms in the construction permitting. BEP also worked with the GoS counterparts and

NALED to communicate with the World Bank’s Doing Business Team the progress that Serbia was

making on the construction permitting and other business related reforms.

As a recognition of its contribution through the Joint Working Group, BEP was asked to serve in the

still informal Core Working Group tasked with reviewing proposed draft laws and, importantly,

bylaws, to assess their impact on Serbia’s Doing Business rankings and on its business environment in general. This gave a chance to BEP to communicate to the relevant bodies of the Government the

benefits of the Real Property Valuation Bill, prepared with the BEP technical assistance. It also

allowed BEP alarm the Government about the proposed introduction of a significant para-fiscal

charge, which was eventually prevented due to this BEP’s last minute involvement.

Component 2

Objective 1, Task 1, "Capacity building assistance to the Fiscal Council and Improvements to

fiscal responsibility," has been successfully completed. No further support is planned.

Objective 1, Task 2, "Improvements to MoF Fiscal Analysis and Strategy." No further support is planned under this Task.

Under Objective 1, Task 3 "Assistance to the GoS and Parliament to Improving Budget

Coordination and Performance Management," Activity postponed for 2017 since the additions and modifications of the Budget System Law, aiming to establish the legal ground for introduction of

requirements for monitoring and reporting on performance of budget beneficiaries, were adopted only

in December of 2016. Due to this delay, MoF will publish the Methodology for Monitoring and

Reporting on Performance of Budgetary Programs at the beginning of 2017. In 2017 BEP plans to provide technical briefings for the Parliamentary committees and State Audit Institution on

requirements and methodology for monitoring and reporting of program budget execution. Assistance

will focus on program budget reporting requirements, assessing outcomes against performance indicators, and integration of strategic planning and program budgeting.

Under Objective 1, Task 4, "Assist the MoF Budget Department to Develop Capacity for

Improved Transparency and Program Budgeting," BEP continued to provide crucial technical assistance and training to ensure sustainable implementation of this important public financial

management reform.

BEP’s assistance to date led to an improved annual budget presentation and better budget procedures.

The 2017 Budget Bill reflects some of BEP’s accomplishments in improving the Government of


Serbia’s budget process over the past six years. The 2017 Bill presents expenditures of all direct

budget beneficiaries in the program budget format, while its Justification Document includes detailed program-based information (objectives and performance indicators) linked to program budgets of

budget beneficiaries. In recent months, BEP provided extensive support to the MoF Budget

Department for preparing the 2017 Budget Bill. With BEP’s support, the Program Budget

Methodology was upgraded to reflect lessons learned during the first two years of PB implementation in Serbia. The aim of these improvements is to remove redundant information from the Budget Bill

and make sure that objectives and performance indicators are focused on effectiveness and efficiency

of subsidies, projects, and public services. The methodological guidelines that BEP has helped develop have directly contributed to greater transparency of the 2017 Budget Bill and its Justification

Document, while also laying the groundwork for introduction of annual and semi-annual reporting on

budget beneficiaries’ performance in 2017.

At the same session, the National Assembly adopted amendments to the Budget System Law that aim

to strengthen budget transparency and oversight of effectiveness and efficiency of public spending.

The enhancements include introduction of mandatory publication of detailed program budget

information (program and sub-program descriptions, goals, and performance indicators) and annual and semi-annual program performance reporting by budget beneficiaries. The regulatory

improvements were prepared by the Ministry of Finance Budget Department with support from BEP

and present a significant milestone in program budgeting reform. The changes enable full utilization of a program and performance measurement framework in planning, prioritization, and informed

budgetary decision-making, and facilitate greater accountability of government institutions in public

spending. As Finance Minister Vujovic pointed out in Parliament, the new Budget System Law takes Serbia a step closer to performance-based budgeting, currently the most advanced form of public

sector budgeting.

BEP continued training programs for budget beneficiaries. On October 4 and 5, MoF Budget

Department analysts held the first round of program budgeting courses organized by the Government’s HRMS. A group of 20 officials from various line ministries (Justice; Interior; Culture

and Information; Finance; and Trade, Tourism and Telecommunications) and other authorities (Public

Policy Secretariat, Geodetic Authority, Administration for Joint Services, and Office of the National Security Council and Information Security) attended the training. The two-day course focused on the

system of planning, decision-making and preparation of the budget document. Topics covered

included development of program budgeting structures, costing in line with program budgeting

methodology, integration of planning and budgeting processes, setting of objectives and performance indicators, as well as introduction of performance monitoring and reporting procedures. Over the

previous five months, BEP has been providing assistance to the MoF in developing course materials

and educating Budget Department analysts to become trainers in program budgeting. Participants expressed satisfaction with the professionalism and dedication that MoF BD analysts showed during

the course and awarded the highest possible scores to the trainers.

Given the interest in and success of the PB course delivered by MoF staff in the week of October 3, a second course was organized on October 10 and 11. On this occasion, an additional three MoF Budget

Department analysts served as program budgeting trainers, delivering lectures and facilitating

interactive workshops with a group of 20 officials from multiple ministries and other central

government agencies. In view of the outstanding performance of MoF staff as trainers, the Government’s HRMS has officially certified them as Program Budget Trainers. The training included

topics such as the development of program budgeting structures, costing in line with program

budgeting methodology, integration of planning and budgeting processes, setting of objectives and performance indicators, as well as introduction of performance monitoring and reporting procedures.

BEP has been providing assistance to the MoF in developing course materials and educating Budget

Department analysts to become program budgeting trainers. As a result, six analysts have already received Trainer certifications, enabling them continue to deliver the course in 2017, when it will

become a standard part of the General Professional Training Program offered by HRMS to all public

administration employees. Institutionalization of this course ensures a permanent mechanism for

capacity building across the government in the program budgeting – a tool for increased efficiency


and effectiveness of public spending and improved public service delivery to citizens and businesses.

BEP awarded a subcontract to Gi Group for a Team Building and Staff Development Program for the MoF Budget Department. During the quarter, Gi Group delivered a two-day team building workshop

retreat for MoF Budget Department management and staff. The workshop was designed to address

key gaps in communication and collaboration practices as identified in a diagnostic assessment of the

Budget Department’s needs, which was also performed by BEP. The workshop focused on building teamwork and promoting a culture of trust between members of the MoF Budget Department, and

covered the following issues: cooperation and flexibility; responsibility and initiative; building team

spirit; and hallmarks of efficient teams. The delivery of this training to more than 30 participants, including Assistant Minister Mirjana Cojbasic and MoF BD Head Milesa Marjanovic, will result in

enhanced capacity of the MoF to lead reforms in public financial management and to effectively

perform regular activities under its mandate.

On November 15, the MoF issued its 2017 Budget Call Circular for all direct budget beneficiaries.

This set of instructions comprises the improved Methodology for Program Budgeting that the MoF

Budget Department and BEP have jointly developed over the course of the past several months. The

Methodology, first published in February 2014, was upgraded to reflect lessons learned during the first two years of program budgeting implementation in Serbia. These improvements will enable

budget beneficiaries to prepare their proposals of financial plans in program budgeting format linked

to objectives and performance indicators that are more focused on the effectiveness and efficiency of subsidies, projects and public services. The new Methodology increases transparency of the budget by

removing redundant information and introduces improved objectives and performance indicators, thus

laying the groundwork for introduction of annual and semi-annual reporting on their achievement. BEP has to date provided support to all line ministries through a series of workshops and

consultations to apply the new Methodology. The 2017 Budget Call Circular also includes more

detailed guidelines for submission of requests for capital projects intended to ensure accountability in

making decisions on capital expenditures. These newly introduced improvements will result in greater transparency and accountability of the budget process.

The MoF’s new Budget Management Information System (BIS), developed by BEP, was fully

utilized by all central level budget users to submit their financial plans for 2017. The MoF used the BIS to prepare the Budget Bill compliant to program and performance budget requirements. By

replacing an interim simple database that BEP provided in 2013, the new system enabled MoF Budget

Department to undertake effective budget planning and management, impact analysis of budgetary

spending. BEP provided this information system to MoF under an in-kind grant, and assisted in its development over the first half of 2016.

Under Objective 1, Task 5, "Assistance to Integrate Program Budgeting and Performance

Management into National Strategic Planning," BEP worked with PPS to finalize the Bylaw on Methodology for Development of Medium term plans. In addition, assistance was provided in further

improvement of the draft Law on Planning System, to better reflect linkage with the Bylaw. PPS

intends to conduct public hearings on this legislative package at the beginning of 2017. Other work under this activity has been postponed for 2017, since the regulation (Law on Planning System, and

Bylaw on Development of Medium-term Plans) has not yet been adopted.

Under Objective 1, Task 6, "Assistance to Improve Public Investment Management (PIM)," BEP

completed preparation of the PIM Bylaw, but it is unclear whether there is political will to enact the Bylaw. The overall objective of the PIM Information System is to increase the efficiency,

transparency, and accountability of public investment management in Serbia. The information system

should help strengthen the effectiveness and transparency of international assistance and is to be the primary PIM administration and management mechanism in Serbia. Although PIM reform was

recognized as priority structural reform for 2016, a lack of political support has halted this process.

Faced with this difficulty, the MoF adopted an alternative approach. While it will continue pushing to have the Bylaw enacted, the MoF has secured amendments to the Budget System Law, which enables

it to adopt a bylaw requiring only the minister of finance’s approval to regulate how capital projects

are integrated into medium-term plans of public investment priorities.


On November 9, WB officers, officials of the Ministry of Finance’s Capital Projects Unit, and

members of BEP’s PIM reform team met to discuss the WB’s design of a possible comprehensive PIM Information System. The system is envisaged to support full implementation of the Bylaw on the

Content, Preparation, Assessment, Monitoring and Execution of Capital Projects. The discussion

focused on initial conceptual specifications for the proposed system in terms of its functionality,

architecture and institutional requirements.

Objective 2 Task 1 "Improving conditions for public investment in and trading of government

debt," was successfully completed.

Under Objective 2 Task 2 "Assistance to Improve Debt Management Systems, Analysis, and

Capacity," BEP provided technical assistance to the PDA in defining the technical and functional

requirements for the re-launched Terms of Reference for the development of the Debt Management

Software. UNDP re-launched competition for development of Debt Management Software for PDA. Evaluation of the received offers and contract signing with the selected vendor is expected by the end

of January of 2017. Once the contract with the selected vendor is signed, BEP will provide technical

assistance to the PDA in managing the implementation of the new IT system. Development of the

Debt Management Software for the PDA is expected to last 12 months.

Under Objective 3 Task 1"Tactical Assistance to advance the GoS macroeconomic strategy," No

further support is planned.

Component 3

Under Objective 1, Task 1, "Assistance to Build Supervision Capacity of Securities

Commission," the Task was successfully completed.

Under Objective 1, Task 2, “Improve Disclosure of Information in Compliance with the Legal

Requirements and Best International Practice,” the Task was successfully completed.

Under Objective 2, Task 1, "Assistance in Development of Legal Framework for Commodity

Exchange, the Task was successfully completed.

Under Objective 3, Task 1, "Improving Conditions for Public Investment in and Trading of

Government Debt," the Task was cancelled due to lack of capacity of the Public Debt Administration to absorb the assistance and undertake the planned activities.

Under Objective 4, Task 1, "Assistance in Development and Implementation of Access to

Finance Related Laws," drafting of the Law on NBFIs with the NBS proceeded at a much slower pace than needed. This latest setback in development of this legislation appears to be due to

organizational restructuring at the NBS, and the l NBS failing to genuinely feel urgency to proceed

with this regulation. The pace at which the central bank has approached this issue clearly indicates that they do not consider this topic a priority. Although the legislation could be enacted fairly quickly

and straightforwardly, this effort will in all likelihood remain incomplete unless it gets accelerated and

placed on the Government of Serbia’s agenda as one of the top priorities. BEP plans to increase its

outreach efforts on the necessity to undertake this reform, so that Serbian businesses can receive the finance they need to invest and grow.

Currently, BEP is in the middle of engaging a consultant to provide technical assistance asked for by

the NBS – to explore options to allow the banks that will not be willing or able to comply with Basel 3 requirements to transform into non-deposit-taking, non-bank financial institutions and so remain

active in the financial market.

As stated by the Ministry of Public Administration and Local Government, to the government is interested in promoting and regulating venture capital financing, as a way to support start-ups in

Serbia. This intention can be seen as an opportunity to integrate this in an overall access to finance

reform. BEP can use its resources to provide technical assistance in developing necessary regulations.


The National Bank of Serbia has decided to amend the existing Law on Financial Leasing and

informed BEP and ALCS (Association of Leasing Companies Serbia) that they have, in doing so, reflected recommendations for regulatory amendments provided jointly by BEP and the leasing

industry, as well as relevant EU regulation on operations of financial institutions. The draft of the

amendments to the Law on Financial Leasing will be available on the NBS website in the first quarter

of 2017, for final round of comments and possible amendments proposals.

Under Objective 4, Task 2, "Assist the MoE in Implementation of recommendations from

"White Paper" on Access to Finance", BEP has not been able to proceed as planned since the SME

Council is still inactive. Nonetheless, BEP is working with other partners on implementation of recommendations from the White Paper: BEP is providing support to the Ministry of Justice,

Chamber of PEOs, and Judicial Academy on improving enforcement; the grant scheme for small

businesses that BEP developed for the MoE has been fully implemented; drafting of the Law on NBFIs with the NBS is ongoing, but at a much slower pace than needed. There is interest from the

Minister of State Administration and Local Government to foster the work of this council, and BEP is

exploring the possibility to assist Minister Brnabic in this effort.

Under Objective 4, Task 3, "Improve the efficiency, monitoring and transparency of state aid," the grant scheme that BEP developed on the request of the MoE has been fully implemented. Over

400 MSMEs received grants for equipment purchasing. In total, there were three cycles of grant

schemes, with around 700 users and 1,2 billion RSD of volume of grants. The evaluation of the two cycles of grant support programs has been performed, and BEP has created a monitoring scheme for

measuring the impact of this and future support programs.

Consultant Ladislav Dvorak was engaged for the development of a new guarantee scheme for MSMEs. He drafted a report on quantifying the benefits of the guarantee scheme to be implemented.

However, BEP has never got a meeting with the new Minister of Economy, in order to define the next

steps in cooperation. This resulted in the postponement of this activity until 2017.

Currently, BEP is trying to find a new partner interested in design and implementation of a guarantee scheme for start-up companies. Alternatively, BEP will draft a document outlining the

necessity/benefits of introducing a national guarantee scheme for Serbia and the key features of this

instrument, in order to place this issue on list of priorities of the Serbian Government.

Under Objective 4, Task 4, "Strengthen professional services that support access to finance," the

Real Property Valuation Law was adopted. On December 28 the National Assembly adopted Real

Property Valuation Bill prepared with BEP’s ample technical assistance. The Real Property Valuation

Law introduces institutions and procedures that will improve the quality of the real property valuer profession and allow the creation of infrastructure for reliable real estate valuation. The Draft Law

includes provisions on continuing professional development that will ensure that all real estate valuers

have appropriate expertise. It also introduces National Standards and a Code of Ethics and Professional Conduct for licensed valuers; prescribes conditions for licensing and mandatory

professional training; and establishes an independent Professional Committee to prescribe training and

examination curricula. Reliable real estate valuation is of critical importance for dealing with the issue of non-performing loan (NPLs) and, consequently, ensuring the overall soundness of the financial

sector, mitigating risk, and improving lending conditions.

Under Objective 4, Task 5, "Strengthen the capacity of business and professional associations to

improve access to finance," Activities in Cacak related to the SMEs Financing Facilitation Initiative are completed. This initiative has encompassed various events and activities focused on raising the

entrepreneurs and businesspeople level of knowledge concerning finances and on bringing closer the

real sector and the financial sector. Together with the Cacak City Tax Administration, BEP has reviewed the steps needed to submit a complete tax application, and has made the tax filing system

more understandable for the tax payers. BEP has supported the organization of a Finance Fair, and a

series of trainings for businesses. BEP also developed proposal of the model of a financing scheme for the support to local businesses and shared it with the City of Cacak authorities.

BEP developed Toolkit for SME Financing Assistance to be distributed to local authorities and


business associations throughout Serbia. Serbian Chamber of Commerce agreed to take over this

activity and use and distribute the materials in the Q1 of 2017. The final draft of the toolkit has been sent to the SCC and the newly established SME Center of the Chamber will use the toolkit for

conducting activities through the network of regional chambers of commerce.

Under Objective 4, Task 6, "Strengthen In and Out of Court Credit Enforcement," BEP

continued USAID’s leadership in this important reform. BEP’s activities included efforts to improve the professional enforcement officers (PEOs) system.

On October 14, 2016, BEP participated in the 2016 South East Europe NPL Forum in Belgrade. The

forum gathered national level regulators, led by Mr. Zlatko Milikic, Assistant Minister of Finance, delegates from key international financial institutions (such as the IMF and EBRD), international

organizations, private banks, potential investors, advisory services, workout professionals, and legal

experts with commercial banks. Participants addressed national strategies of Southeast European countries to facilitate the resolution of the NPL problem, different legal solutions in each of these

countries and ways of categorizing bad debt, as well as how to attract large investors interested in the

regional NPL market. A BEP representative moderated the third panel, entitled “Tackling Bankruptcy,

Restructuring and Enforcement” and presented the topic of “Enforcement as a preemptive measure – how can bankruptcy be prevented?”, which allowed BEP to provide information on its policy

activities in the area of enforcement. The high level of NPLs has in recent years become a systemic

risk in Serbia and the SEE region, particularly in the wake of the global economic crisis, causing a dramatic increase in the amount of bad debt. According to analyses made by international financial

institutions, an NPL ratio higher than 10% reduces credit growth by 4% (excluding secondary

effects). Many countries in the region, including Serbia, have reached NPL levels that are affecting the banking sector’s ability to lend, necessitating the cleaning of the banking sector’s balance sheet to

enable new lending at lower interest rates. BEP is working to help resolve NPLs sustainably and so

ensure the banking sector is fully capable of resuming lending to economically viable companies.

During the second half of October 2016, BEP and the Krusevac and Pancevo Regional Chambers of Commerce organized events to facilitate dialogue between judges, PEOs, banks, and businesses on

enforcement of judgments and recovery of commercial receivables. More than 100 attendees,

including the president of the Chamber of PEOs, court presidents, enforcement judges and judicial assistants from regional commercial and basic courts discussed key aspects of implementation of the

new Law on Enforcement and Security, which entered into full effect on July 1, 2016. These events

addressed the key issues identified to date, such as the lack of uniformity of case law, duration and

costs of enforcement proceedings, difficulties in uncovering debtors’ property, and lack of coordination between stakeholders such as the cadaster and various registries. A statement made by a

president of a commercial court best illustrates participants’ impressions from the events: “This is the

first time that the judiciary has met businesses to discuss efficient enforcement, so I am very thankful to the organizers for this opportunity.” Efficient contract enforcement is essential to economic

development and sustained growth. Economies with efficient judiciaries, in which courts can

effectively enforce contractual obligations, have more developed credit markets and higher levels of development overall. BEP continues to facilitate stakeholder dialogue with the aim of: (i) promoting

more efficient enforcement of commercial claims and greater use of PEOs to collect such claims; and

(ii) helping the Ministry of Justice and all other stakeholders monitor implementation of the new

enforcement framework, identify constraints in due time, and propose feasible solutions.

On November 23, BEP organized a roundtable with the banking industry at the ASB, following up on

the survey of in-court and out-of-court enforcement, conducted among major Serbian banks. BEP

shared the findings of the survey, and conducted an in-depth discussion with the bankers on outstanding issues in in-and out-of-court enforcement of contracts. The discussion confirmed that the

majority of banks still believe that, despite major legislative activities, the enforcement system has

been changing only slowly over time, while poor implementation is also a limiting factor. For example, banks rate ineffective work of courts or inconsistent court practices as the core obstacle to

efficient in-court enforcement system defined by the Law on Enforcement and Security. Similarly,

ineffective appellate procedure before the relevant Ministry and ineffective work of the Cadaster are


seen as the greatest barriers to efficient out-of-court enforcement as defined by the Mortgage Law. In

addition, banks claim that ineffective performance of other authorities, especially the police, has had an adverse impact on the enforcement process. On the positive side, banks have been complimenting

the performance of professional enforcement officers. Attendees rated BEP’s activities in the area as

valuable, and proposed to jointly focus on the following three areas: (i) conducting regulatory

changes for improving the cadaster framework and practices; (ii) organizing conferences and training for key enforcement stakeholders – judges and professional enforcement officers, to resolve open

issues and harmonize practice under the existing enforcement framework; (iii) assisting the MoF in

monitoring implementation of the amended Mortgage Law and providing recommendations for the necessary fine tuning. BEP’s efforts in establishing and promoting efficient enforcement of debts

reduce lending risk and contribute to a better business environment with lower risk for investors and

better borrowing terms for businesses.

On December 8 and 9, BEP conducted the first in a series of specialized training programs designed

to enhance capacities of PEOs and so increase the effectiveness of the enforcement process. The two-

day training session covering the financial management was tailored to the needs of PEOs and their

offices. The training will enhance PEOs’ financial skills and increase knowledge of the tools and techniques necessary for successful financial management of PEO offices and better cooperation with

businesses, business associations, and banks. The program is organized by BEP and implemented in

cooperation with the Chamber of Enforcement Officers, Judicial Academy, and Partners Serbia. The training will be held over a period of seven months and will take place in Belgrade, Novi Sad, Nis,

and Kragujevac, so that 250 PEOs are trained in both financial management and mediation. This

assistance should advance the implementation of the Law on Enforcement and Security and improve overall performance of the enforcement process, thus lowering the cost of enforcement and decreasing

lending risk, which can in turn reduce the cost of financing for businesses in general.

Objective 4, Task 7, "Improve financial market legislation and environment," has been

successfully completed.

Objective 4, Task 8, "Support Financial System Stability Reform," has been successfully

completed.

Outreach

During the final quarter of 2016, BEP generated 179 media reports, the best quarter in 2016,

surpassing 146 media reports in Q1, 96 in Q2 and 46 in Q3. All reports are with a positive or neutral tone, and none with a negative one. BEP’s outreach activities reached an equivalent of 27 million

people with 356,798.56 EUR1 of total commercial

value of the reports.

On October 26th BEP, British Embassy in Serbia,

and NALED organized a conference on Doing

Business 2017 report entitled “Strengthening

Serbia's Competitiveness.” The event was opened by Zorana Mihajlovic, Minister of Construction,

Transportation and Infrastructure, and Tony

Verheijen, the World Bank Country Manager for Serbia. The conference included a ministerial

panel discussion on the key reforms the

Government should implement in the upcoming

year, to enable further progress of Serbia in the next World Bank’s report. The panel involved Deputy Prime Minister of Serbia and the Chairperson of Joint Group for improving Serbia’s position in the

Doing Business list Zorana Mihajlović, Minister of Public Administration and Local Government Ana

Brnabić, Minister of Justice Nela Kuburović, Director of Serbian Business Registers Agency Zvonko

1 The commercial value was calculated by the press clipping agency Kliping d.o.o.


Obradović and Tomas Lubek, Regional Manager for West Balkans of International Finance

Corporation. The purpose of the Conference was also to discuss the Draft Action plan for improving Serbia's rank in the Doing Business 2018, which encompasses implementation of the series of

electronic systems that will help improve Serbia’s business environment in number of areas. The

event received significant media attention resulting in more than 40 media reports mentioning

specifically USAID’s contribution to improvements of the environment for doing business in Serbia.

On November 17, BEP released the findings of the sixth annual Serbian Business Survey at an event

opened by the U.S. Ambassador to Serbia Kyle Scott, Deputy Prime Minister and Minister of

Construction, Transportation and Infrastructure Zorana Mihajlovic, and the President of the Serbian Chamber of Commerce, Marko Cadez. The survey, which reflects 1,000 Serbian businesses’ opinions

on the state of Serbia’s business environment, showed recent reforms are making it easier for them to

operate. More than 150 government officials and staff, business representatives, experts, and journalists attended the event. The event received immense media attention resulting in more than 70

media reports.

On December 2 and 3, BEP, Chamber of Professional Enforcement Officers (PEOs), Supreme Court

of Cassation (SCC), and Ministry of Justice (MoJ) organized a conference devoted to harmonizing practice in implementation of the Law on Enforcement and Security. The conference gathered more

than 250 professionals, including SCC judges, enforcement judges from main basic and commercial

courts in Serbia, officers and members of the Chamber of PEOs, and the business community. Discussions centered on resolving key issues in implementation of the Law identified to date,

including inconsistencies in court practice, duration and costs of enforcement, difficulties in

uncovering debtors’ assets, etc. Ms. Dragana Stanojevic, BEP Chief of Party, presented a summary of the BEP’s research findings, focusing on the impact that enforcement and collection have on legal

security of doing business in Serbia. The organizers will follow this activity up by publishing

conclusions of the conference and distributing them to all PEOs and courts so as to facilitate uniform

application of enforcement procedures. BEP’s assistance in the area has been contributing to reducing the time required to enforce judgments and improving the consistency of enforcement, and, as such,

improving public perception of the enforcement process. This activity is also crucial for Serbia’s EU

integration process, as the 2016 Progress Report claims that “Serbia should in particular further step up measures to reduce the backlog of cases and standardize court practice”. The event resulted in 10

positive media reports.

The BEP website, www.bep.rs, continued to have a large number of visitors. The BEP website

contains information about the project, grant solicitations, media appearances, and partners. The BEP

BEP’s interactive website, www.policycafe.rs, provides a means for dissemination of research

and analysis on issues related to BEP’s three

components allowing users to provide input and feedback.

Based on our web analytics, visits to the website

have reached a number of total visitors with

over 800 unique visitors in November (see chart) compared to an average 450 on monthly

basis in 2016.

So far the policy café has more than thousand different articles, publications, policy notes,

useful links and information with content

updated on regular basis, being a solid ground for further expansion of its popularity.

http://www.bep.rs/

http://www.policycafe.rs/


website (bep.rs) has continued to show a steady number of visits with an average of over 800 unique

visitors per month.

To improve transparency and make the Policy Café more user friendly, BEP introduced an In the

Loop section where the visitors can easily access all major analyses, researches and studies conducted

by BEP.

BEP’s Facebook Fan Page KONKRETNO was established in September 2012, as a part of the campaign Konkretno, encompassing three key areas of our intervention (Construction permitting –

Konstruktivno, Labor Law – Radno and Access to Finance - Preduzimljivo). It has almost 2,900

followers and 45% of them are women, while 55% of men. Almost 2,500 are coming from Serbia and more than 500 from neighboring countries (Croatia, Bosnia and Herzegovina, Macedonia, etc.). The

Fan page is being updated on daily basis with an average of reach per post of almost 300 people.

Based on FB analytics, people most often click to the posts with short video, or colorful news feeds. FB has the biggest potential in terms of upgrading BEP’s presence on the Social networks.

USAID BEP’s Twitter account was launched in February 2012. The main idea around using Twitter

for Project’s activities was to use it primarily for live tweeting from our own events. This activity was

launched on the Presentation of the Business Survey in 2013. This year, tweets on the Business Survey Event reached more than a half a million people and instigated series of interactions with the

audience. Twitter is the best platform for the online discussion, especially when the event or

discussion topic is previously announced. BEP’s Twitter account has 1,216 followers and is following 1483 people. Tweets are updated on daily basis and we mostly tweet about project activities, but also

important news for the business community.

From the beginning of the Project, BEP has been active on the social media. Back in 2011, BEP was the first project in Serbia to start its own YouTube channel. According to the Q4 data, YouTube

channel has 29 subscribers, 32.000 views and 300 video clips, of which as many as 30 have been

prepared and made publically available in this reporting period.

BEP has supported the development and maintenance of several important websites, both for the Government and the business community: www.crpd.gov.rs (Central Registry of Planning

Documents), www.gradjevinskedozvole.rs (Online support for the Implementation of the Law on

Planning and Construction), www.ppp.gov.rs (Public Private Partnership Agency), and www.poslovanje.rs (Business Portal developed in the cooperation with the Serbian Chamber of

Commerce and Industry).

SUBCONTRACTS

Completed and ongoing subcontracts

The subcontract with Ipsos Strategic Marketing for Business Survey in Serbia 2016 is in the final stage of implementation. Ipsos has submitted deliverables under the third and fourth (last) milestone

and was subsequently paid the third installment out of four. The last 2 sets of deliverables included

the following: full Survey findings report and internal presentation to BEP: tabular, graphic, text – historically compared to 2011, 2012, 2013, 2014, and 2015 results, and with correlations and

comparisons and follow up analysis. IPSOS also participated in preparation of PowerPoint

presentation of findings for the Business survey event that was held on November 17, 2016.

The subcontract Providing Professional Business Management Consultancy to the MCTI, BRA

and City Of Belgrade (CoB) has been successfully completed.

Based on the Request for Proposals RFP-2016-05 launched on October 6, BEP signed a Subcontract

#4691-001-LocalFFP-06 with NALED for the Capacity Building for Efficient Construction

Permitting. The first deliverables are expected in Q1 2017.

The subcontract Inspectors soft skills: RFP-2016-04 is ongoing. Deliverable # 4 is due on December

30. Subcontract ends on May 31, 2017.

The best offer for the Harmonization on Special Inspection Legislation subcontract has been

https://www.facebook.com/KonkretnoSrbija/?ref=hl

https://twitter.com/USAID_BEP

https://www.youtube.com/user/BEPSerbia/

http://www.crpd.gov.rs/

http://www.gradjevinskedozvole.rs/

http://www.ppp.gov.rs/

http://www.poslovanje.rs/


selected and contract negotiations are well advanced. Subcontract realization is expected to start in

mid-January.

Based on the Request for Proposals RFP-2016-03 launched on August 11, BEP signed a Subcontract

#4691-001-LocalFFP-04 with GiGroup HR Solutions d.o.o. for the provision of assistance in

designing and delivering the teambuilding and soft-skills development program tailored to the

needs of the Ministry of Finance Budget Department. The total amount of this subcontract is 8,900USD, with the period of performance from October 7th, 2016 to January 31st, 2017. Based on

the activities undertaken during October and November within this Subcontract, GiGroup completed

several deliverables under the first milestone. All of the received deliverables were approved by BEP, and the first installment of $5,200 was subsequently paid. Based on the follow-on activities to the

previously organized two-day team building retreat and personal feedback interviews, GiGroup will

complete two more deliverables under the second milestone by the end of January 2017.

In the fourth quarter of 2016, BEP awarded the subcontract (Request for Proposals (RFP)-2016-02

For the Provision of Trainings for Professional Enforcement Officers on Financial Management,

Mediation and Effective and Efficient Enforcement Process) to Partners for Democratic Change

Serbia's, whose offer was the best one according final ranking and final scoring results. BEP concluded subcontract with the successful bidder. During the reporting period, the project worked on

developing the final Work plan, training materials and organizing the logistics of the first training for

public enforcement officers. Following the preparation period, the first training on financial management was organized in Belgrade, on December 8 and 9, at the premises of Judicial Academy.

In the evaluation questionnaires filled in by participants at the end of the training, they expressed their

overall satisfaction with the training. The following three trainings in financial management are planned to be delivered by March 2017.

Total amount of awards to date

BEP LOCAL SUBCONTRACTOR RESOURCE POOL

FUND (USD) 250,000

Contracted (RFP) 173,813.00

Committed 35,000.00

Total (contracted + committed) 208,813.00

TOTAL REMAINING LOCAL SUBCONTRACTOR

RESOURCE POOL FUNDS UNTIL END OF PROJECT 41,187.00

After successfully completing its grants program by engaging all financial resources assigned for this

purpose, BEP has plans to utilize all remaining subcontract funds before the completion of the Project.


BEP FINANCIAL REVIEW

Billing To Date (thru Oct-16)

Total

Budget

Remaining

Budget

Percentage

Complete

Salaries and Wages $ 4,330,392.93 $ 4,886,406.58 $ 556,013.65 89%

Fringe Benefits $ 332,977.01 $ 362,663.78 $ 29,686.77 92%

Overhead $ 2,577,051.53 $ 2,906,584.11 $ 329,532.58 89%

Travel, Transportation, and Per Diem

$ 370,921.17 $ 636,139.52 $ 265,218.35 58%

Allowances $ 543,840.86 $ 568,835.90 $ 24,995.04 96%

Other Direct Costs $ 2,578,894.25 $ 3,177,919.70 $ 599,025.45 81%

Equipment and Supplies $ 75,316.56 $ 82,370.83 $ 7,054.27 91%

Participant Training $ 184,066.81 $ 179,045.74 $ (5,021.07) 103%

Subcontracts $ 1,469,925.32 $ 1,982,758.25 $ 512,832.93 74%

Grants Under Contract $ 1,667,296.37 $ 1,674,584.00 $ 7,287.63 100%

G&A on Grants Under Contract

$ 199,308.07 $ 199,758.04 $ 449.97 100%

G&A $ 1,485,124.02 $ 1,763,403.93 $ 278,279.91 84%

TOTAL ESTIMATED COST $ 15,815,114.90 $18,420,470.38 $2,605,355.48 86%

Fixed Fee $ 967,041.09 $ 1,058,933.50 $ 91,892.41 91%

TOTAL ESTIMATED COST PLUS FIXED FEE

$ 16,782,155.99 $19,479,403.88 $2,697,247.89 86%


UPCOMING ACTIVITIES

BEP plans the following activities in the next quarter:

Component 1

Support to implementation of Law on Inspection Oversight (inspection oversight check-lists, legal interpretations and explanations, inspection oversight plans and reports, advisory inputs);

Support to the Inspection Oversight Coordination Commission of the Ministry of Public Administration and Local Self-Government (MoPALSG);

Assistance to improve inspections’ organization, operations, transparency, prevention, risk-based oversight, planning, performance measurement;

Assistance to forming and educating Coordination Commission Support Unit (project funded by EBRD with BEP technical assistance);

Conducting Advanced Inspectors Soft Skills trainings (ongoing subcontract);

Advisory inputs within e-Inspector software procurement/development;

Sector inspection legislation harmonization process (subcontract);

Public-private consultations and commencement of the work on development of the drafts of three fire-safety bylaws relevant for construction permits;

Development of the instructions (training material) for the staff of construction permitting authorities and licensed engineers;

Preparation of models/templates of documents frequently submitted by applicants and/or issued

by permitting officials in the construction permitting process;

Supporting the Ministry of Construction to track compliance of the construction permitting related administrative acts with the legally defined deadlines and other requirements;

Study tour on facilitating eGovernment by enabling electronic payments of public dues;

Provide the Ministry of Finance with the technical assistance for completion of the Draft Law on Para-fiscal Charges, particularly as it pertains to the construction-sector related charges;

Support the Ministry of Finance to engage with the business community and other stakeholders to vet the Draft Law on Para-fiscal charges, in particular those related to water, energy and roads

that are crucial for the construction reform implementation;

Component 2

Support to the Ministry of Finance and Government Human Resource Management Service to develop training program on monitoring and reporting on performance of budgetary programs;

Support to the Government Human Resource Management Service to evaluate and certificate new trainers of program budget course;

Support to the Ministry of Finance and Government Human Resource Management Service to upgrade the program budgeting training program based on lessons learned;

Two-day team building and staff development training for the MoF Budget Department;

Support to the Ministry of Finance to develop Monitoring and Reporting Module of the Budgeting Information System (BIS);

Analysis of the 2017 program budget structures of selected line ministries (Ministry of Interior,

and Ministry of Construction) and independent budget beneficiaries to develop recommendations for their improvement before submission of the Priority Areas of Finance in mid-March 2017;

Workshops with the selected independent budget beneficiaries to present recommendations for improvement of their program budget structures;

Workshops with the selected line ministries to implement the Methodology for monitoring and reporting on performance of budgetary programs;


Retreat with the Ministry of Finance Capital Unit on development of a bylaw and rulebook for public investment management procedures in Serbia;

Support to the Public Policy Secretariat and Ministry of Finance to finalize the Law on planning system and Methodology for development of medium-term plans of budget beneficiaries in line

with program budget requirements;

Assistance to the Public Policy Secretariat to prepare for and conduct public hearing on the Law on planning system and Methodology for development of medium-term plans of budget

beneficiaries;

Advisory inputs within PDA software procurement;

Assist PDA and UNDP in managing the implementation of the new Information system with the selected vendor.

Component 3

■ Hold a Conference on Access to Finance importance, deficient current legislation and systems,

and recommendation for a meaningful change, involving the GoS, NBS, Business Associations, EU, WB and EBRD, indutrsy and business representatives

■ Continue to cooperate with NBS, MoPALSG and MoF on developing regulatory framework for NBFIs and/or venture capital;

■ Assist the NBS in exploring options to allow banks to transform into non-deposit-taking, non-

bank financial institutions and so remain active in the financial market;

■ Review of the final draft of new Law on financial leasing and providing final comments and

amendments proposals on the Draft Law on financial leasing, if any;

■ Draft a document outlining the necessity/benefits of introducing a national guarantee scheme for

Serbia and the key features of this instrument / Implement the grant scheme if the GoS provide

support to this activity;

■ Monitoring of the latest grant scheme’s results;

■ Assist MoF to finalize and implement new quality assurance and professional standards for

collateral valuation, including capacity building for the Professional Commission, a key professional body tasked with preparing syllabi for training courses and examinations for licensed

valuers;

■ Promoting better enforcement of commercial claims and more use of PEOs for such claims

trough a series of round-tables for judiciary, businesses, banks, lawyers and PEOs at regional

Chambers of Commerce;

■ Conducting analysis of the PEOs Tariff of Fees to support the Serbian Ministry of Justice (MoJ)

and the Chamber of Professional Enforcement Officers to timely and consistently implement the new Law on Enforcement and Security;

■ Conducting a specialized training program (banking and financial concepts and their legal aspects) to enhance capacities of the judiciary to secure the recovery of commercial claims, in

cooperation with the Association of Serbian Banks and Judicial Academy;

■ Delivering trainings for PEOs on financial management, mediation and effective and efficient

enforcement process to build their capacities in areas necessary for an effective and efficient

enforcement process (through RFP);

■ Promoting a “tool kit” with methodologies and materials to help municipalities improve access to

finance for local businesses.


ATTACHMENT 1: BEP WORK ORGANIZATION

Component 1:Business Regulation & Economic Governance

Senior Expert: Milan Stefanovic

Analyst: Tamara Borovcanin

Junior Analyst: Jovana Stefanovic Junior Analyst: Alan Kovacevic

M&E

Duska Medic

KM and Communications Manager

Strahinja Mitrovski

Chief of Party

Dragana Stanojevic

Home Office

Project Director

Project Manager

Project Coordinator

International and Serbian Short Term Technical Assistance

(Business Regulations Advisors, Business and Financial Advisors, Macro Economists, Capital Market Advisors, Business Education Advisors and Gender Advisors)

USAID

Key personnel

Component 2: Macroeconomic Policy and Public Financial Mgt.

Senior Analyst: Natasa Tapuskovic

Public Finance Analyst: Tara Vasiljevic Junior Analyst: Alan Kovacevic

Component 3: Financial Market Development

Expert Sandra Rodic

Expert: Aleksandar Zaric Analyst: Vladimir Jovanovic Junior Analyst: Alan Kovacevic

Operations / Finance Department

Sasa Jelic

Uros Vasiljevic

Duska Medic

Nina Tasic

Public Sector Capacity

Sasa Jelic

Deputy Chief of Party

Dusan Vasiljevic

Director of Public Financial Management Team

Majda Sedej

Operations and Finance Director

Tanja Stojkovic

Subcontracts

Tanja Stojkovic


ATTACHMENT 2: LIST OF MEDIA PUBLICATIONS

No Date Media Headline

1 01.10.2016 Novaekonomija.rs Our cooperation with the Government is excellent

2 03.10.2016 Nova ekonomija Our cooperation with the Government is excellent

3 03.10.2016 RTS 2 Laura Pavlovic

4 04.10.2016 Ekonometar Serbia is 90th in the GCI

5 04.10.2016 Ilustrovana politika Advance

6 04.10.2016 Ekapija.com More financing for the Serbian companies

7 04.10.2016 Bif.rs More financing for the Serbian companies

8 13.10.2016 BizLife More financing for the Serbian companies

9 16.10.2016 Happy TV Veljko Lalic

10 17.10.2016 Rpkns.com Removing para-fiscals opens 100.000 new jobs

11 20.10.2016 RTV Kruševac Dialogue - businesses and the judiciary

12 21.10.2016 Belgrade Insight Serbia’s ‘huge’ tax burden is a myth

13 24.10.2016 013info.rs Dialogue - businesses and the judiciary

14 26.10.2016 Krstarica.com Reforms brings Serbia to the best

15 26.10.2016 Tvpirot.rs Competitivness of Serbia

16 26.10.2016 Plusonline.rs Construction permitting reform rank Serbia among leading

countries in the world

17 26.10.2016 Nspm.rs Mihajlovic - our goal is to be in the top 20

18 26.10.2016 Scradar.com World Bank - Serbia will be amongst 20

19 26.10.2016 Naslovi.net Mihajlović: Huge economic news

20 26.10.2016 Pirotskevesti.rs Business Environment way better

21 26.10.2016 Reporter.rs Trbović: DB advancement very important for Serbia

22 26.10.2016 Reporter.rs World Bank - Serbia will be amongst 20

23 26.10.2016 Krstarica.com Trbović: DB advancement very important for Serbia

24 26.10.2016 Krstarica.com Trbović: DB advancement very important for Serbia

25 26.10.2016 Dnevnik.rs Trbović: DB advancement very important for Serbia

26 26.10.2016 Reporter.rs World Bank - Serbia will be amongst 20

27 26.10.2016 Srbija.gov.rs Better business ambience


28 26.10.2016 Krstarica.com World Bank - Serbia will be amongst 20

29 26.10.2016 Expres.rs Amongst the best 50 thanks to e-permitting

30 26.10.2016 Pirotskevesti.rs Construction permitting reform rank Serbia among leading


31 26.10.2016 RTS 1 Construction permitting reform rank Serbia among leading


32 26.10.2016 TV N1 Zorana Mihajlović

33 26.10.2016 Rs.n1info.com Mihajlović: as we move forward, the number of investors is rising

34 26.10.2016 Tanjug.rs Trbović: DB advancement very important for Serbia

35 26.10.2016 B92.net Serbian business feel advancement

36 26.10.2016 Rts.rs Trbović: DB advancement very important for Serbia

37 26.10.2016 Rtv.rs Mihajlović: Huge economic news

38 26.10.2016 Danas.rs Mihajlović: as we move forward, the number of investors is rising

39 26.10.2016 Vesti.rs Mihajlović: Huge economic news

40 26.10.2016 Tanjug.rs World Bank - Serbia will be amongst 20

41 26.10.2016 Studiob.rs World Bank - Serbia will be amongst 20

42 26.10.2016 Tanjug.rs World Bank - Serbia will be amongst 20

43 26.10.2016 Tanjug.rs Mihajlović: Huge economic news

44 26.10.2016 Rts.rs World Bank - Serbia will be amongst 20

45 26.10.2016 Blic.rs World Bank - Serbia will be amongst 20

46 26.10.2016 Novimagazin.rs World Bank - Serbia will be amongst 20

47 26.10.2016 RTS 1 World Bank - Serbia will be amongst 20

48 26.10.2016 Vesti.rs DB press conference

49 26.10.2016 Bktvnews.com World Bank - Serbia will be amongst 20

50 26.10.2016 Tanjug.rs Amongst the best 50 thanks to e-permitting

51 26.10.2016 Tanjugbiz.rs Kif: DB list very important barrometer

52 26.10.2016 TV Prva Serbia will be amongst 20

53 26.10.2016 Rts.rs Reforms brings Serbia to the best

54 26.10.2016 TV B92 Reforms brings Serbia to the best

55 26.10.2016 RTS 1 Serbia will be amongst 20

56 26.10.2016 RTS 1 Serbia will be amongst 20

57 26.10.2016 TV Most - Novi

Sad Serbia will be amongst 20

58 26.10.2016 TV Studio B Serbia will be amongst 20

59 27.10.2016 Blic 103 positions up thanks to the e-permitting


60 27.10.2016 Danas Serbia will be amongst 20

61 27.10.2016 Dnevnik Serbia will be amongst 20

62 27.10.2016 Večernje novosti Serbia will be amongst 20

63 27.10.2016 Tvlaser.info Construction permitting reform rank Serbia among leading


64 27.10.2016 Kurir Construction permitting reform rank Serbia among leading


65 27.10.2016 Pirot.rs Construction permitting reform rank Serbia among leading


66 27.10.2016 TV Most - Novi

Sad Construction permitting reform rank Serbia among leading


67 27.10.2016 B92.net Doing Business ranking "to bring investors and jobs"

68 27.10.2016 TV Laser - Svrljig Construction permitting reform rank Serbia among leading


69 27.10.2016 TV Most - Novi

Sad Construction permitting reform rank Serbia among leading


70 01.11.2016 Cord - Specijalno

izdanje HOW WE CHANGED SERBIA

71 01.11.2016 Cord Reforms Propel Serbia to The Top of The World

72 01.11.2016 Cord - Specijalno

izdanje NALED VALUES ARE AS IMPORTANT AS THE RESULTS

73 01.11.2016 TV KCN Construction permitting reform rank Serbia among leading


74 02.11.2016 Srpskadijaspora.in

fo Mihajlović: USA is a friend and a partner of Serbia

75 02.11.2016 Scradar.com Mihajlović: USA is a friend and a partner of Serbia

76 02.11.2016 Nspm.rs Mihajlović: USA is a friend and a partner of Serbia

77 02.11.2016 Tanjug.rs Mihajlović: USA is a friend and a partner of Serbia

78 02.11.2016 Bktvnews.com Mihajlović: USA is a friend and a partner of Serbia

79 02.11.2016 Rtv.rs Mihajlović: USA is a friend and a partner of Serbia

80 02.11.2016 Blic.rs Mihajlović: USA is a friend and a partner of Serbia

81 02.11.2016 Espreso.rs Mihajlović: USA is a friend and a partner of Serbia

82 02.11.2016 Rts.rs Mihajlović: USA is a friend and a partner of Serbia

83 02.11.2016 Srbin.info Mihajlović: USA is a friend and a partner of Serbia

84 02.11.2016 TV KCN Mihajlović: USA is a friend and a partner of Serbia

85 02.11.2016 RTS 1 Mihajlović: USA is a friend and a partner of Serbia


86 03.11.2016 Dnevnik Mihajlović: USA is a friend and a partner of Serbia

87 03.11.2016 Informer.rs Mihajlović: USA is a friend and a partner of Serbia

88 10.11.2016 Novi Magazin Ratings battle

89 16.11.2016 Bizlife.rs Ratings battle

90 17.11.2016 Beta-video.tv USAID presented its Business Survey

91 17.11.2016 Tanjug.rs Skat: what can be done when we all unite

92 17.11.2016 Tanjug.rs CADEZ MIHAJLOVIC and SKAT

93 17.11.2016 Pks.rs positive trends in inspections and construction

94 17.11.2016 Novimagazin.rs Skot: Businesses feel changes in the inspections

95 17.11.2016 Balkanmagazin.ne

t Corruption affects businesses


fo Corruption is falling

97 17.11.2016 Naslovi.net Srbija: Corruption is an issue, permits are not

98 17.11.2016 Reporter.rs Scott: Well done!

99 17.11.2016 Expres.rs positive trends in inspections and construction

100 17.11.2016 Diplomacy&Comm

erce BUILDING PERMIT REFORM ELEVATES SERBIA TO THE TOP

OF THE WORLD

101 17.11.2016 Poslovnojutro.com positive trends in inspections and construction

102 17.11.2016 Glasamerike.net positive trends in inspections and construction

103 17.11.2016 Reporter.rs positive trends in inspections and construction

104 17.11.2016 Nspm.rs Scott: USA will keep assisting Serbia

105 17.11.2016 Naslovi.net Scott: USA will keep assisting Serbia

106 17.11.2016 Naslovi.net Scott: USA will keep assisting Serbia

107 17.11.2016 Krstarica.com positive trends in inspections and construction

108 17.11.2016 Tanjugbiz.rs USAID presented its Business Survey

109 17.11.2016 Radio Beograd 1 USAID presented its Business Survey

110 17.11.2016 Tanjug.rs positive trends in inspections and construction

111 17.11.2016 Rs.n1info.com Corruption affects businesses

112 17.11.2016 Tanjug.rs Scott: USA will keep assisting Serbia

113 17.11.2016 Danas.rs Corruption affects businesses

114 17.11.2016 Novimagazin.rs Scott: Businesses feel changes in the inspections

115 17.11.2016 Blic.rs Scott: Businesses feel changes in the inspections

116 17.11.2016 Alo.rs Corruption is falling

117 17.11.2016 Tanjug.rs Corruption is falling


118 17.11.2016 Rtv.rs Scott: Businesses feel changes in the inspections

119 17.11.2016 Rtv.rs Scott: Businesses feel changes in the inspections

120 17.11.2016 Ekonomski.net Scott: Businesses feel changes in the inspections

121 17.11.2016 Studiob.rs Scott: Businesses feel changes in the inspections

122 17.11.2016 Blic.rs Scott: Businesses feel changes in the inspections

123 17.11.2016 Radio Novi Sad 1 USAID presented its Business Survey

124 17.11.2016 Novaekonomija.rs Scott: USA will keep assisting Serbia throuhg the USAID

125 17.11.2016 TV Pink USAID presented its Business Survey

126 17.11.2016 Fakti.org USAID presented its Business Survey

127 17.11.2016 RTS 1 Scott: Well done!

128 17.11.2016 TV Pink 3 Scott: Well done!

129 17.11.2016 B92.net Scott: Well done!

130 17.11.2016 TV N1 Scott: Well done!

131 17.11.2016 Politika.rs Scott: Well done!

132 17.11.2016 Rts.rs Scott: Well done!

133 17.11.2016 RTS 1 Scott: Well done!

134 17.11.2016 Srbin.info Scott: Well done!

135 17.11.2016 Vesti.rs positive trends in inspections and construction

136 17.11.2016 Kurir.rs positive trends in inspections and construction

137 17.11.2016 Glas Amerike positive trends in inspections and construction

138 18.11.2016 Gradjevinarstvo.rs positive trends in inspections and construction

139 18.11.2016 Rpkns.com positive trends in inspections and construction

140 18.11.2016 Sam.org.rs USAID presented its Business Survey

141 18.11.2016 Kurir USAID presented its Business Survey

142 18.11.2016 Economy.rs Veze sa političkim partijama - drugi po važnosti faktor prilikom

dobijanja javnih nabavki

143 18.11.2016 Naslovi.net Veze sa političkim partijama drugi po važnosti faktor prilikom

dobijanja javnih nabavki

144 18.11.2016 Politika Reforms are positively affecting the business environment

145 18.11.2016 Dnevnik Businesses feel changes in the inspections

146 18.11.2016 TV Pink USAID presented its Business Survey

147 18.11.2016 Kamatica.com positive trends in inspections and construction

148 18.11.2016 Ekapija.com positive trends in inspections and construction

149 19.11.2016 Vesti - Frankfurt positive trends in inspections and construction


150 19.11.2016 Krstarica.com positive trends in inspections and construction

151 20.11.2016 Radio Beograd 1 positive trends in inspections and construction

152 21.11.2016 Dnevnik In 15 months 20% more enterprenuers

153 21.11.2016 Večernje novosti In 15 months 20% more enterprenuers

154 21.11.2016 Rpkns.com In 15 months 20% more enterprenuers

155 21.11.2016 Kapital.rs In 15 months 20% more enterprenuers

156 21.11.2016 Novosti.rs In 15 months 20% more enterprenuers

157 23.11.2016 Poslovnojutro.com In 15 months 20% more enterprenuers

158 30.11.2016 Novimagazin.rs In 15 months 20% more enterprenuers

159 01.12.2016 Novi Magazin Cooperation between the judiciary and PEOs to the legal certainty

160 02.12.2016 Naslovi.net Cooperation between the judiciary and PEOs to the legal certainty


162 02.12.2016 Dnevnik.rs Cooperation between the judiciary and PEOs to the legal certainty

163 02.12.2016 Krstarica.com Cooperation between the judiciary and PEOs to the legal certainty


165 02.12.2016 Rtv.rs Cooperation between the judiciary and PEOs to the legal certainty

166 02.12.2016 Tanjug.rs Cooperation between the judiciary and PEOs to the legal certainty


fo Cooperation between the judiciary and PEOs to the legal certainty

168 02.12.2016 Vesti.rs Cooperation between the judiciary and PEOs to the legal certainty

169 03.12.2016 Dnevnik Cooperation between the judiciary and PEOs to the legal certainty

170 05.12.2016 Krstarica.com The number of the enterprenuers is going up

171 05.12.2016 Poslovnojutro.com The number of the enterprenuers is going up

172 05.12.2016 RTS 1 The number of the enterprenuers is going up

173 05.12.2016 Rts.rs The number of the enterprenuers is going up

174 05.12.2016 Radiobeograd.rs The number of the enterprenuers is going up

175 05.12.2016 Ekapija.com The number of the enterprenuers is going up

176 06.12.2016 Ekonometar The number of the enterprenuers is going up

177 06.12.2016 Novaenergija.net The number of the enterprenuers is going up

178 07.12.2016 Poslovnojutro.com The number of the enterprenuers is going up

179 09.12.2016 RTS 1 Doing business in Serbia


ATTACHMENT 3: PROGRESS VERSUS WORKPLAN

Component 1: Business Regulation and Economic Governance

Task Activities Activity Period Deliverables Status Q4

Objective 1: Improve and streamline business regulation

1. Improve Inspections Operations and Organization

Provide assistance for completing, monitoring and implementing the new inspection oversight framework

Jan – Dec 2016 The legislation and regulations related to inspection oversight

Inspection oversight analysis and data

Implementation plan for harmonization of sector inspection legislation; Sector inspection legislation harmonization process

Documents for implementation of new inspection oversight framework, including instructions, interpretations, risk criteria, check-lists, opinions and methodologies

Committees for conducting inspectors’ examination; Documents related to inspectors’ examination

Advocacy, and cooperation with donors and other stakeholders to obtain needed resources

Rulebook on Inspector Examination adopted.

BEP provided comments and inputs for harmonization of several laws governing sector inspection oversight, out of which two are adopted and others are in the legislative process.

BEP helped in collection and analysis of data on the impact of the Law on Inspection Oversight implementation.

Sector inspection legislation harmonization analysis started. Inventory of sector inspection legislation sent to inspection bodies via Coordination Commission. Launch of the support for inspection legislation harmonization by the means of the subcontract to take place within days.

In Q4, BEP provided more than 100 legal interpretations, expert opinions and inputs on implementation of the new inspection oversight framework.

Advice and inputs regarding development of the inspection oversight check-lists provided. Check-lists of all of 36 national inspectorates are submitted to the Coordination Commission. All check-lists are approved and published, except one (Veterinary inspection, which is waiting for approval and publishing). In Q4, BEP provided inputs for development of over 500 check-lists of different inspections.

BEP developed and delivered to MoPALSG the Methodology for on-line survey of businesses and citizens’ perception of inspections.

BEP provided support in development of analysis and recommendations re: improvement of inspection organization, transparency, advisory and preventive role, risk analysis, inspection



Task Activities Activity Period Deliverables Status Q4 oversight planning and inspection effectiveness indicators. The Coordination Commission is supposed to endorse these recommendations as inspection guidelines in Q2 2017.

Inspections submitted proposals of annual inspection oversight plans to the Coordination Commission. Plans will be adopted in Q1 2017.

Inspector Examination Committee formed, with BEP’s assistance. Exam questions developed and published; exams about to start when there are sufficient number of applications.

In cooperation between EBRD, MoPALSG and BEP, draft ToR and other documents for assistance in forming the Coordination Commission Support Unit developed. EBRD Procurement is published. Coordination Commission Support Unit expected to be formed in February 2017.

Continue informing and educating stakeholders on new inspection oversight framework

Jan – Dec 2016 Presentations and roundtables on the new inspection oversight framework

Outreach and communication activities

Presentations of LoIO: Labor Inspectorate Seminar: 169 participants; International Conference on Regulatory Reform (London, UK) – LoIO presentation: 200 participants; Agriculture Inspection Event Presentation: 84 participants; Better Regulation and Competitiveness in Eastern Balkans Conference: 72 participants; LoIO Seminar Kragujevac: 95 participants.

Communication campaign is on-going. Articles and news on Law on Inspection oversight and on inspections reform published in a number of national and local newspapers, TV stations, other media outlets and social networks.

Re-designing and improvement of the Coordination Commission website in progress, with BEP’s assistance.




Continue training inspectors on new inspection oversight framework

Jan – Dec 2016 Inspection oversight reform training programs

Trainings of inspectors

Advanced Inspector Soft Skills Trainings: November 17 and 18 – Belgrade: 27 inspectors trained; December 6 and 7 – Nis: 24 inspectors trained; December 15 and 16 – Novi Sad: 17 inspectors trained. SUK LoIO Training: October 24 and 25: 27 participants; November 24 and 25: 18 participants. Videos, presentations, manuals and other materials for inspectors’ training posted on the Coordination Commission website.

Build capacities of the Coordination Commission and its supporting office (unit) in the MoPALSG, and help improving inspections coordination and cooperation between inspections and other public bodies

Jan – Dec 2016 Coordination Commission supporting office (unit) in the MoPALSG formed and functional

Improved coordination between the inspections

Improved cooperation between inspections and other public bodies

Board for Inspection Oversight Coordination held nine sessions.

Sector Working Groups and Task Teams within the Coordination Commission functional (seven WGs and two Task Teams).

Formation of the Coordination Commission Support Unit Staff - Project funded by EBRD: ToR and procurement documents developed; EBRD Procurement is published. Coordination Commission Support Unit expected to be formed in February 2017.

Assist the introduction and proper functioning of the inspection information system (e-Inspector)

Jan – Dec 2016 Business processes specification

Inspection information system (e-Inspector) specification requirements

Tender documentation for procurement of software

On-going expert advices

Focus groups for pilot e-inspections

Public procurement for e-Inspector software developed with BEP technical assistance, and published.

BEP assisted DEU in responding to questions in regard to the tender procedure and subsequently in evaluation of received proposals.

Tender process completed, successful bidder selected.

Assistance to selected inspection bodies to meet regulatory requirements and to implement the Law on Inspection Oversight

Jan – Dec 2016 Assistance to improve coordination, management and supervision, results and quality control, analytics, risk-based inspection oversight, procedures, professional competences of inspectors, uniformity of inspection practice and legal predictability

The relevant legislation and regulations

BEP provided legal interpretations of the regulatory framework for inspections and implementation advice to various inspections on national and local level. BEP also provided technical assistance in development of analysis and recommendations re: improvement of inspection organization, transparency, advisory and preventive role, risk analysis, inspection oversight planning and inspection effectiveness indicators, on the basis of organization and operations of six major inspectorates.




Inspection oversight analysis and data

Documents for implementation of new inspection oversight framework, including instructions, interpretations, risk criteria, check-lists, opinions and methodologies

2. Remove or Reduce Quasi-Fiscal Burdens to Business

Provide technical and other assistance for continuation and implementation of regulatory reform of para-fiscal charges and fees in three areas related to construction permits reform

February – July 2016

Law on Charges for Utilization of Public Goods in accordance to BEP recommendations in 3 selected areas

By the act of the Minister of Finance issued on September 22, BEP representative has been re-appointed a member of the Working Group tasked with preparing the Draft of the Law on Charges for the Use of Public Resources by March 31, 2017. BEP has prepared and delivered to the MoF a set of recommendations and several subsequent technical considerations for streamlining some of most important non-tax impositions, primarily related with the use of public roads and waters and with the environment protection.

Alongside these recommendations, BEP has reiterated to the MoF importance of vetting the provisions of the future law with the stakeholders, and primarily with the business community, and offered support to organize a public-private dialogue on this important subject.

Based on the BEP’s analysis, Draft Law on Amendments to the Law on Public Utilities was changed to eliminate introduction of the communal utility fees, as originally envisaged in the Draft law, as this fee would be para-fiscal, with negative effect on Serbia’s business environment and rank in WB DB Report.

3. Assist Implementation of Law on Enforcement of Judgment

TASK COMPLETED – further work on the issue is being implemented under Component 3, Objective 4, Task 6

4. Streamline Construction Permitting

Assist development and amendment of bylaws needed for implementation of the Law on Planning and Construction (LPC)

Jan-Dec 2016 Consultations with stakeholders

Bylaws drafted

Bylaws adopted

Two important bylaws: e-OSS Procedure Rulebook and Rulebook on Technical Documentation, needed for proper implementation of the One Stop Shop concept and e-Permitting system adopted with significant technical input from BEP and after wide stakeholders’ consultations, to large degree facilitated by BEP.



Task Activities Activity Period Deliverables Status Q4 and of sector laws

Assist harmonization of sector laws with laws and procedures as needed to support reform of construction permitting

Jan-Dec 2016 Consultations with stakeholders

Recommendations and suggestions

Amendments to the sector laws drafted and adopted

Law on waters, in line with all BEP’s recommendations, has been adopted by the National Assembly.

WG for drafting Law on Cadaster Procedure formed, with BEP representative as its member. The law is recognized by MCTI as one of the most important sectoral laws whose solutions might jeopardize the construction permitting reform.

BEP worked with MCTI, MPALSG and NALED to develop official interpretation of the requirements for proper archiving of the construction permitting paperwork. With the technical assistance provided by BEP, the MPALSG has issued the official legal interpretation of the legal framework endorsing electronic-only processing and archiving of construction permits applications. The same legal interpretation also upholds allowing the permitting staff to electronically sign appropriate documentation and share it with other permitting agency – an authorization previously reserved only for top officials of the permitting bodies, thus creating bottlenecks in processing applications.

Educate stakeholders to facilitate implementation of specific segments of the permitting reform, including introduction of the e-permitting system

Jan – Dec 2016 Training

Manual and other materials

BEP participates at regular meetings with MCTI and public utilities to facilitate implementation of e-One-Stop-Shop procedure.

BEP awarded a 20.000$ subcontract to NALED for Capacity Building For Efficient Construction Permitting, including preparation of model documentation, development of training materials and training delivery. First deliverables expected in Q1 2017.

Support preparation of annexes to planning documents in two or three local governments

Jan-Nov 2016 Annexes to planning documents in two or three municipalities

Results published and distributed

Given lack of reliable commitment by the public enterprises that should have a leading role in realization of this activity, BEP is likely to shift resources to other activities, deemed as presently more needed by stakeholders.

Develop interface between Jan-Jul 2016 Interface allowing tracking of permitting BEP prepared Draft RFP for the Integration of the Web-Based



Task Activities Activity Period Deliverables Status Q4 Inventory of Planning Documents and e-permitting system

Inventory of Spatial and Urban Planning Documents and Software System for Support of One Stop Shop Procedure for Issuing Construction Permits. Consultations with stakeholders on the scope and timing of this support is in progress. However, due to the plans of the BRA to secure financing for broader upgrade of the construction permitting software, this activity is likely to be abandoned.

Support strategic management of the construction permits reform

Jan – Dec 2016 Amendments to laws and bylaws

Improved processes and procedures

BEP’s STTA delivered Impact Assessment of Construction Permitting Reform. It documents the overwhelmingly positive effects of the reform, including streamlined procedures, reduced time and costs needed to obtain construction permits, and increased output of the construction industry. The Impact Assessment also highlights areas where continued focus is still needed: making sure that fees and charges policies are consistent across different permitting bodies and aligned with the actual costs of providing the relevant administrative services; and expanding functionality and improving stability of the construction permitting software. The Impact Assessment results will be presented to MCTI and Public Enterprises in January 2017.

With 1,464 construction permits issued, October 2016 was the best month in almost 10 years, the furthest back that BEP records go.

5. Reduce the Employing Workers Burden

TASK COMPLETED

Objective 2: Business effectively partners with Government in developing and implementing regulatory reforms

1. Improve Public-Private Dialogue

Conduct Annual Business Survey

Jun– Nov 2016 Annual Business Survey report On November 17, 2016 BEP released the key findings of its sixth annual Serbian Business Survey. The survey, which reflects 1,032 Serbian businesses’ opinions on the state of Serbia’s business environment, showed that recent reforms are making it easier for them to operate. Businesses still see plenty of room for improvement. A majority of businesses said they continued to face challenges with issues such as para-fiscal charges, administrative procedures, and access to finance.




2. Implement Regulatory Reforms

Publicize Standard Cost Model Study

Jan -Feb 2016 Standard Cost Model Study 2015

Media reports

Standard Cost Model is performed bi-annually and the next one is planned for 2017. BEP ensured the sustainability of measuring administrative burdens in Serbia by getting the GoS Public Policy Secretariat to take over the task of conducting the SCM and promote the priorities based on its results. In 2016, BEP delivered the training to the PPS staff and developed a Manual on the SCM process and rules. BEP promoted the 2015 SCM results at most of its events,, pointing out improvement of 15% compared to the 2013 SCM, and the remaining burocratic burdens to be removed.

Meanwhile, in line with the SCM originated recommendations, the GoS has abolished employment booklet and introduced more e-government solutions, including e-permitting, We expect that improvements to this indicator will continue in 2017. BEP will provide technical assistance to the PPS in this last year, in the field of specific measurement of construction and inspections related administrative requirements.

Participation in GoS Doing Business/Global Competitiveness Working Group

Jan – Dec 2016 Working Group recommendations Thanks to BEP engagement in the Working Group, Draft Law on Amendments to the Law on Public Utilities was changed to eliminate introduction of the communal utility fees, as originally envisaged in the Draft law, as this fee would be para-fiscal, with negative effect on Serbia’s business environment and rank in WB DB Report.

Objective 3: Improve the regulatory review process and RIA process

OBJECTIVE COMPLETED

Objective 4: Create Enabling Environment for PPPs

OBJECTIVE COMPLETED

Component 2: Macroeconomic Policy and Public Financial Management

Task Activities Activity Period

Deliverables Status Q4

Objective 1: Improve GoS budgeting, fiscal policy analysis, and financial management efficiency

1. Capacity No further support.





building assistance to the Fiscal Council and Improvements to fiscal responsibility

2. Improvements to MoF Fiscal Analysis and Strategy

No further support.

3. Assistance to the GoS and Parliament to improving budget coordination and performance management

Capacity building and technical briefing for the Parliamentary committees on monitoring and evaluation of program budget execution

Sep-Nov 2016 Training materials Activity postponed for 2017 since the amendment to the Budget System Lawwere adopted only in December of 2016

Training to the SAI on PB and program structures, goals and indicators of various budget users

Apr-Jun 2016 Training materials Activity postponed for 2017 since the amendments to the Budget System Law, aiming to establish the legal ground for introduction of requirements for monitoring and reporting on performance of budget beneficiaries, were adopted only in December of 2016. Due to this, MoF will publish the Methodology for Monitoring and Reporting on Performance of Budgetary Programs at the beginning of 2017.

4. Assist the MoF Budget Department to develop capacity for improved transparency and program budgeting

Assistance to MoF to further develop regulation and procedures for program budgeting, monitoring and reporting

Feb-Sep 2016 Technical Briefs

Draft regulation

BEP provided assistance to the MoF Budget Department in upgrading the Program Budget (PB) Methodology, first published in February 2014, to reflect lessons learned during the first two years of PB implementation in Serbia. The PB Methodology was published in November 2016.

BEP provided assistance to the MoF Budget Department to prepare amendments to the Budget System Law aiming to strengthen budget transparency and oversight of effectiveness and efficiency of public spending. The new Budget System Law brings Serbia a step closer to the most advanced form of public sector budgeting - Performance-Based budgeting. In December 2016, National Assembly adopted the





Amendments to the Budget System Law.

Technical support to selected budget users to upgrade program budgets structures, goals and performance indicators (primarily Ministries of Interior, Construction, Health)

Jan-Sep 2016 Recommendations; Training materials; Program budgets

BEP provided support to selected line ministries to further improve their program budget (PB) structures. These improved PB structures were afterwards submitted to MoF as part of their financial plans proposals for 2017. BEP and MoF organized workshops with the Ministry of Health, Public Administration and Local Self-Government, Interior, and Mining and Energy, and attended by 64 officials. During the workshops, MoF analysts and BEP experts provided assistance in enhancing the quality of objectives and performance indicators linked to PB in order to make it more transparent and informative for the Government, National Assembly, and citizens. During the workshops, line ministries were provided with the guidance on introduction of performance monitoring and reporting procedures, due to commence in 2017.

Assistance to the MoF in implementation of new budget preparation information system

Jan-Dec 2016 IT System – software

Vendor progress reports

New Budget Information System (BIS), previously delivered to the Government of Serbia, was fully utilized by MoF Budget Department during the 2017 Budget Bill preparation process. BEP provided this information system to MoF under an in-kind grant, and assisted in its development over the first half of 2016. All central level direct budget users utilized BIS system to prepare their financial plans proposals for 2017-2019 throughout BIS system and submit them to MoF for consideration. This way BIS system completely replaced the interim database system which BEP provided in 2013.

Further assistance to the MoF management in strategic communications, managing the reform process, and building capacity across government

Jan-Dec 2016 Conference on program budgeting progress

Training of trainers

BEP and MoF institutionalized the Program Budgeting (PB) Course making it an integral part of the General Professional Training Program offered by the Government’s Human Resources Management Service (HRMS) to all public administration employees. The two-day PB course focuses on the system of planning, decision-making and preparation of the budget document. BEP and MoF organized two courses, on October 4-5 and October 10-11, attended by 40 officials from various line





ministries and other central government agencies, with six MoF Budget Department analysts serving as trainers. As a result, they have received PB Trainer certificates enabling them continue to deliver the course in 2017, as it becomes a standard part of the trainings provided by HRMS. Institutionalization of this course ensures a permanent mechanism for capacity building across the government in the program budgeting.

As a part of the Team Building and Staff Development Program, BEP’s subcontractor Gi-Group delivered a two-day team building workshop retreat for MoF Budget Department. The workshop was designed to address key gaps in communication and collaboration practices as identified in a diagnostic assessment of the Budget Department staff’s needs. The delivery of this training to more than 30 participants from the MoF BD, including Assistant Minister Mirjana Cojbasic and MoF BD Head Milesa Marjanovic, will result in enhanced capacity of the MoF BD to lead reforms in public financial management and to effectively perform regular activities under its mandate.

Support introduction and implementation of Results-Based Management at MoE and other GoS institutions

Feb-Dec 2016 Readiness Assessment Reports

Program Budgets

Report on reporting system

Due to change of Minister of Economy and other managing officials of this ministry, BEP has not received approval to undertake this activity (previously agreed with former Minister of Economy).

5. Assistance to integrate program budgeting and performance management into national strategic planning

Assistance to the Public Policy Secretariat and Center of Government Working Group in developing and enacting legislation that will regulate integrated strategic planning and program budgeting

Jan-Mar 2016 Law on Planning System and Bylaw on Methodology for Development of MTPs

BEP worked with PPS to finalize the Bylaw on Methodology for Development of MTPs. In addition, BEP provided assistance in further improvement of the draft Law on Planning System, to better reflect linkage with the Bylaw. PPS intends to conduct public hearing on this legislature package at the beginning of 2017.





Assistance in developing guidelines for budget users to implement the integrated strategic planning and program budgeting regulatory and institutional framework

Mar-Jun 2016 Guidelines for development of MTPs

Training materials

Costing Methodology

Activity postponed for 2017 since the regulatory package (Law on Planning System, and Bylaw on Development of Medium-term Plans) have not been adopted yet.

Technical support to pilot budget users to develop medium term plans

Apr – Dec 2016

Guidelines for project design and budgeting

Training for budget users

Activity postponed for 2017 since the regulatory package has not yet been adopted.

Building capacities of PPS, MoF, and other stakeholders to implement integrated strategic planning and budgeting

Jan-Dec 2016 Retreat

Workshops

Training materials

Activity postponed for 2017 since the regulatory package has not yet been adopted.

6. Assistance to improve Public Investment Management (PIM)

Provide technical and other assistance for development of the legal and institutional framework of PIMS

Feb-Oct 2016 Bylaw adopted

General methodology

During this quarter, the adoption of the Government’s Bylaw on Selection, Preparation, Evaluation, Monitoring and Reporting of Capital Projects is postponed, and a whole process is on hold, due to an unexpected disagreement between the Ministry of Construction, Transport and Infrastructure (MCTI) and the MoF.

2017 Budget Bill has been prepared taking into account newly revised guidelines for submission of requests for capital projects financing, created in a more detailed way in order to improve accountability in making decisions on capital expenditures.

Support implementation of the new PIM legal, regulatory, and institutional framework

Feb-Sep 2016 Implementation plan for PIM reform

Training materials

Methodology for project appraisal in transport sector

BEP met with the officials from the World Bank and the MoF Capital Projects Unit in order to discuss the WB’s design of a possible comprehensive PIM Information System. The system is envisaged to support full implementation of the Bylaw on the Content, Preparation, Assessment, Monitoring and Execution of Capital Projects. The discussion focused on initial conceptual specifications for the proposed system in terms of its functionality, architecture and institutional





requirements. The overall objective of the PIM Information System is to increase the efficiency, transparency, and accountability of public investment management in Serbia.

However, all other activities regarding implementation of PIM are postponed, since the main legislation is still on-hold, as described above.

Objective 2: Improve public debt management and conditions for government financing

1. Improving conditions for public investment in and trading of government debt

TASK COMPLETED.

2. Assistance to improve debt management systems, reporting, analysis, and capacity

Assistance to improve debt management systems, analysis, and capacity

Jan – Apr 2016 Technical and functional specifications for the procurement and customization of new IT debt management system

BEP provided technical assistance to the PDA in defining the technical and functional requirements for the re-launched Terms of Reference for the development of the Debt Management Software. UNDP re-launched competition for development of Debt Management Software for PDA. Evaluation of the received offers and contract signing with the selected vendor is expected by the end of January of 2017.

Objective 3: Improve macroeconomic policy, strategy, and analysis

1. Tactical Assistance to advance the GoS macroeconomic strategy

No further support.








Objective 1: Strengthening capital markets

OBJECTIVE COMPLETED

Objective 2: Strengthen enabling environment for commodity exchange

OBJECTIVE COMPLETED

Objective 3: Improve GoS access to finance through development of a long-term, liquid public debt market

OBJECTIVE COMPLETED

Objective 4: Improving access to finance for small and medium-sized enterprises and entrepreneurs

1. Assistance in development and implementation of access to finance laws

Technical assistance and participation in NBS/GoS Working Group to develop a regulatory framework for NBFIs

Jan – Dec 2016

Draft Law on NBFIs

Draft bylaws on NBFIs

Advisory notes

Consultations

Roundtable(s)

Training materials

Media coverage

The last meeting of the NBS Working Group was held in July 2016. Due to organizational restructuring at the NBS, the Working Group activities were temporarily suspended. A new chairperson was appointed in November to lead the Working Group, and our cooperation with them has now resumed, although unfortunately at a much slower pace than needed.

Currently, BEP is in a middle of the subcontracting process in order to finalize the last request from the NBS – to assist the NBS to explore options to allow banks access to procedures that could enable some of them to transform into non-deposit-taking, non-bank financial institutions and so remain active in the financial market.

Unfortunatelly, the pace at which the central bank has approached this issue clearly indicates that they do not consider this topic a priority and that, although the legislation could be enacted fairly quickly and straightforwardly, this effort remains incomplete. The process needs to be accelerated and placed on the Government of Serbia’s agenda as a priority, so that Serbian businesses can receive the finance they need to invest and grow.

As stated by the Ministry of Public Administration and Local Government, there is the interest of the government to promote and regulate venture capital financing, as a way to support start-ups in Serbia. This interest is a potential opportunity to integrate this in overall access to finance reform. BEP might provide technical assistance in developing necessary regulations.

Capacity building and Jan – Dec Training This activity is delayed due to the fact that the NBFI Law is not adopted.





training to the members of NBS/GoS working group and to other stakeholders on the main features and concepts of a law on NBFIs including the best international practices

2016 Workshops

Support and facilitate reform of leasing regulation to make it more compliant with international standards, including assistance to NBS working group in drafting amendments

Jan – August 2016

Consultations

Draft amendments

Public outreach

The National Bank of Serbia has decided to amend the existing Law on financial leasing and informed BEP and Association of Leasing Companies - ALCS that they have reflected all BEP’s recommendations for regulatory amendments, as well as relevant EU regulation that regulates operations of financial institutions. The draft of the amended Law on financial leasing will be available on the NBS website, for final round of comments and possible amendments proposals.

2. Assist the MoE in implementation of recommendations from White Paper on Access to Finance

Assistance to the MoE in implementing SME Strategy and Action Plan

Feb – Dec 2016

Advisory notes

Lobbing and advocacy

Expert support

SME Council is still inactive. BEP is working with other partners on implementation of recommendations from the White Paper on the Access to Finance. BEP is providing support to the Ministry of Justice, Chamber of PEOs, and Judicial Academy on improving enforcement; Grant scheme for small businesses that BEP developed for the MoE has been fully implemented; Drafting of the Law on NBFIs with the NBS is ongoing, but due to organizational restructuring at the NBS, the Working Group activities proceed at a much slower pace than needed.

3. Improve the efficiency, monitoring, and transparency of state aid

Assistance to the MoE in restructuring state aid financing support to leverage private sector financing in key sectors and achieve greater efficiency

Jan – April 2016

Advisory Note

Programs design

Targeted on-going advisory

Grant scheme that BEP developed has been fully implemented. Over 400 MSMEs received grants for equipment purchasing. In total, there were three cycles of grant schemes, with around 700 users and 1.2 billion RSD volume of grants. The analysis of two cycles of grant support programs has been performed, and BEP has created a monitoring scheme for measuring the impact of the support programs.





Consultant Ladislav Dvorak was engaged to develop a guarantee scheme for MSMEs. He drafted a report on quantifying the benefits of the guarantee scheme to be implemented. BEP has never got a meeting with the new Minister of Economy, in order to define the next steps in cooperation.

Currently, BEP is trying to find a new partner interested in designing and implementation of the guarantee scheme for start-up companies. If not, BEP will draft a document outlining the necessity/benefits of introducing a national guarantee scheme for Serbia and the key features of this instrument, in order to place this issue on list of priorities of the Serbian Government.

Provide potential design model for local government finance programs (state aid at local level)

Jan-Dec 2016 Case study

Reports

Outreach materials

BEP developed Toolkit for SME Financing Assistance to be distributed to local authorities and business associations throughout Serbia. Serbian Chamber of Commerce agreed to take over and use and distribute the materials in Q1 2017. The final draft of the toolkit has been sent to the SCC and the newly established SME Center of the Chamber will use the toolkit for conducting activities through the regional chambers network.

BEP drafted proposal of the model of local financing scheme and sent it to the City of Cacak authorities. No reply was received, so we terminated this activity.

4. Strengthen professional services that support access to finance

Assist MoF in setting standards for collateral valuation and increase quality of real estate valuations

Jan – Dec 2016

Draft bylaws

Draft training materials and curriculum

Public outreach

The Draft Property Valuation Law, prepared with the BEP technical assistance, has been adopted by the National Parliament in December 2016.

Meanwhile, in order to speed up the whole process of implementation the Law, BEP, together with MoF, developed a detailed Gantt chart of future Law implementation activities.





Assist the increase of quality and proper use of accounting and financial management for SMEs

Jan- April 2016 Training and consultations

Workshops

Activity successfully completed through the follow-on grant to Valor.

5. Strengthen the capacity of business and professional associations to improve access to finance

Strengthen the capacity of banking and business sector to improve local access to finance (SMEs Financing Facilitation Initiative)

Jan – Dec 2016

Training and consultations

Roundtables

Workshops

Activities in Cacak related to the SMEs Financing Facilitation Initiative are completed.

6. Strengthen credit enforcement (both in and out of court)

Promote the efficient enforcement of commercial claims

Jan – Dec 2016

Training and consultation

Roundtables

Workshops

Public outreach

Media coverage

Advisory notes

On October 14, 2016, BEP participated in the 2016 South East Europe NPL Forum in Belgrade. BEP representative moderated the third panel “Tackling Bankruptcy, Restructuring & Enforcement” and presented the topic “Enforcement as a preemptive measure – how can bankruptcy be prevented?”, which allowed BEP to provide information on Project’s policy activities in the area of enforcement.

During the second half of October 2016, BEP and the regional chambers of commerce in Krusevac and Pancevo organized events to facilitate dialogue between judges, PEOs, banks, and businesses on enforcement of judgments and recovery of commercial receivables. More than 100 attendees, including the president of the Chamber of PEOs, presidents, enforcement judges and associates of the regional commercial and basic courts, discussed key aspects of implementation of the new Law on Enforcement and Security, which entered into full effect on July 1, 2016.

Assist implementation of the Law on Enforcement through strengthening the profession of PEOs

Jan – Dec 2016

Training and consultation

Roundtables

Workshops

Public outreach

On December 8 and 9, BEP, through the subcontract, conducted the first in a series of specialized training programs to enhance capacities of PEOs to increase their effectiveness and efficiency in the enforcement process. First two-day training session covered the financial management area, customized to the needs of PEOs and their offices.





Other training events will be held over the period of seven months, and will take place in Belgrade, Novi Sad, Nis, and Kragujevac. Total of 250 participants will be trained in financial management and mediation.

On December 2 and 3, BEP, Chamber of PEOs, Supreme Court of Cassation and MoJ organized a working conference for harmonizing practice in implementation of the Law on Enforcement and Security (the Law). The conference gathered more than 250 attendees, including SCC judges, enforcement judges from main basic and commercial courts in Serbia, Chamber of PEOs and PEOs, and business community representatives. As a follow-on activity, organizers will publish clarified positions and distribute them to all PEOs and courts, in order to harmonize the practice and efficient implementation of the Law.

Assist the MoF in monitoring the implementation of the court and out of court enforcement.

Jan – Dec 2016

Advisory notes BEP organized a roundtable with the banking industry at the Association of Serbian Banks (ASB), following up on the survey of in-court and out-of-court enforcement conducted among major Serbian banks. BEP shared findings of the survey, and conducted an in-depth discussion with the bankers on outstanding issues in in-and out-of-court enforcement of contracts. Discussion confirmed that the majority of banks still believe that, despite the major legislative activities, the enforcement system changes slowly over time. Attendees rated BEPs activities in the area as highly valuable, and proposed to jointly focus in three following directions: (i) conducting regulatory changes for improving the cadaster framework and practices; (ii) organizing conferences and trainings for key enforcement stakeholders – judges and professional enforcement officers, to resolve open issues and harmonize practice under the existing enforcement framework; (iii) assisting the MoF to monitor implementation of the Amended Mortgage Law and provide recommendations for necessary fine tunings.


ATTACHMENT 4: PROGRESS VERSUS PERFORMANCE MONITORING PLAN

2 Serbia’s score decreased to 2.2 in the 2015-2016 World Economic Forum Global Competitiveness Index. This score is based on a survey that asks selected experts and

businesses: “In your country, how burdensome is it for companies to comply with public administration’s requirements (e.g., permits, regulations, reporting)? [1 = extremely

burdensome; 7 = not burdensome at all].”

Project Results / Objectives

Indicators Measurement Unit

Data Collection Method

Schedule of Collection

Baseline Targets Years 1-7

Status Q4

Mission Assistance Objective: Conditions for Broad-Based Inclusive Economic Growth Improved

IR 2.1: Key Components of Business Enabling Environment Improved

Decrease in the "Burden of Government Regulations" addressing Government Inefficiency

Numeric Value WEF GCI Reports Annual Yr1: 2.34

Yr 1: 2.34 Yr 2: 2.34 Yr 3: 2.44 Yr 4: 2.57 Yr 5 : 2.71 Yr 6: 2.362 Yr 7: 2.40

Yr 6 (Q3): 2.4 by the WEF GCI published in September 2016

Sub-IR 2.1.1.1:More Effective Business Regulation

Decrease in costs for businesses to comply with regulatory framework

Numeric Value Standard Cost Modeling (SCM)

Annual Yr1 Total Administrative Cost: RSD 124.6billion (4.2% of GDP)

Yr 3: Total Administrative cost as % of GDP decreased to 3.8% Yr 5: Total Administrative cost as % of GDP decreased to 3.5% Yr 7: Total Administrative cost as % of GDP decreased to 3.25% (20.0% reduction)

Yr 5: achieved 3.46% ( 15.0% reduction) Yr6: N/A

Sub IR 2.1.1.: Legal Framework Better Harmonized with EU standards

2.1.1.1 # of commercial laws compliant w/EU Acquis completed w/USG assistance

Numeric Value BEP project and Serbian European Integration Office (SEIO)

Annual Yr2: 9 Yr 3: 15 Yr 4: 15 Yr 5: 10 Yr 6: 5 Yr 7: 2

Q1: 0 Q2: 1 Q3: 0 Q4: 7

Sub-IR 1.4.1: Improved Fiscal Policy

Improvements in the Open Budget Index ("OBI") Score as reported by the International Budget Partnership

Numeric Value OBI Survey Bi-Annual 2010: 54 Yr 1: N/A Yr 2: N/A Yr 3: OBI score 54 Yr 4: N/A Yr 5: OBI score 57 Yr 6: N/A

Yr 5 (2015): 47 Yr6: (2015): 47


Yr 7: OBI score 57

Sub-IR 1.4.2: Financial Markets Developed

Improved access to finance

Qualitative Business Survey Annual Yr1: 25% of businesses agree that access to finance has improved

Yr 3: 30% Yr 6: 55% Yr 7: 58%

Yr5: 54.2% Yr6: 58%

Credit to corporate sector as a percentage of GDP

Numeric Value National Bank of Serbia (NBS) Consolidated Balance Sheet of the Banking System

Annual 2014: 24.1% Yr 5: 26% Yr 6: 28% Yr 7: 30%

Yr5: 24.6%

Project level indicators

Number of person hours of training of journalists from publications that cover business

Numeric Value Project Report Annual N/A Yr 1: 400 Yr.2: 800 Yr 3: 800 Yr 4: 800 Yr 5: 400 Yr 6: 170 Yr 7: 100

Q1: 60 Q2: 90 Q3: 40 Q4: 95 Yr 6: 285

Number of individual stakeholders trained on new commercial laws & regulations

Numeric Value Project Reports Annual Yr1: 0 Yr.2: 50 institutions Yr 3: 100 institutions Yr 4: 200 institutions Yr 5: 400 institutions Yr 6: 500 people Yr 7: 220 people

Q1: 267 Q2: 1212 Q3: 539 Q4: 738 Yr6: 2756

Number of times BEP cited in media

Numeric Value Project Reports Annual 2010: 0 Yr 1: 362 Yr.2: 627 Yr 3: 748 Yr 4: 350 Yr 5: 300 Yr 6: 200 Yr 7: 100

Q1: 146 Q2: 96 Q3: 46 Q4: 179 Yr6: 467

Component 1: Business Regulation and Economic Governance Improved

1. Improve and streamline business

Number of commercial laws and regulations simplified and

Numeric Value Project Reports Annual Yr1: 3 Yr 1: 3 Yr 2: 10 Yr 3: 10

Q1: 0 Q2: 1 Q3: 0


3 This refers to the annual BEP Survey of Serbian Businesses. 4 According to the old methodology, the indictor was calculated as percentage of income per capita. Starting from 2015 (Doing Business Report 2016), the indicator is

calculated as percentage of warehouse value. Recalculation based on the new Methodology introduced in 2015 (Doing Business Report 2016). Targets set accordingly.

regulation lowering the costs to businesses and government from business regulations

implemented in accordance with international standards as a result of USG assistance

Yr 4: 10 Yr 5: 10 Yr 6: 2 Yr 7: 1

Q4: 6

Average time spent by management on working with inspections

Numeric Value Business Survey3

Annual Yr1: 59 hours Yr 2: 58 Yr 3: 55 Yr 4: 50 Yr 5: 45 Yr 6: 20 Yr 7: 20

Yr5: 15 hours Yr6: 13 hours

Percentage of national inspection bodies that have check-lists for inspection oversight approved and published

Numeric Value Coordination Commission (http://www.inspektor.gov.rs/#/kontrolne-liste) National inspection bodies BEP reports

Annual Yr 5: 12% (4 inspection bodies)

Yr 6: 60% Yr 7: 80%

Q1: 48.48% Q2: 80% Q3: 92% Q4:100% Yr6: 100%

Number of para-fiscal charges relating to water, roads, or environment eliminated or reduced

Numeric Value Business Survey (expected Law on Fees for Use of Public Goods and Law on administrative fees)

Annual Yr 5: 0 Yr 6: 3 Q1: 0 Q2:0 Q3:0 Q4:0 Yr6: 0

Businesses' perception of obligatory quasi fiscal charges improves – decrease in negative ratings

Numeric Value Business Survey Annual Yr1: 96.3% Yr 2: 95% Yr 3: 73% Yr 4: 73% Yr 5: 70%

Yr5: 71.1% Yr6: 66.8%

Number of stakeholders consulted on development of construction permits legislation

Numeric Value Project level Annual Yr2:0 Yr 3: 403 Yr 4: 100

Q1: 0 Q2: 0 Q3: 6 stakeholders /7 people Q4:25 Yr6: 32 people

Cost (% of warehouse value) within

Percentage WB Doing Business Report

Annual Yr1: 31.9%4 Yr 4: 25.7% Yr 5: 3.6%

Yr5: 3.6% of warehouse value (Methodology changed – cost is


construction permitting Yr 6: 3.6% Yr 7: 3.2%

recorded as a % of the warehouse value) Yr6: 3.2 %

Number of Professional Enforcement Officers trained, passed the exam, and ready to get appointed

Numeric Value MoJ Data Annual N/A Yr 2: 300 Year 4: Activity completed successfully.

Number of days to enforce a judgment

Numeric Value World Bank Doing Business Report

Annual Yr1: 635

Yr 3: 530 Yr 4: 475 Yr 5: 417 Yr 7: 5205

Yr 5: 635 days Yr6: 635 days

Number of days dealing with constructions permits

Numeric Value World Bank Doing Business Report

Annual Yr1: 279 Yr 5: 220 Yr 6: 200 Yr 7: 180

Yr 5: 272 days Yr6: 156

Business perception of the burden of laws and regulations improves

Qualitative Business Survey

Annual Yr1: 17% agree that there was improvement

Yr. 2: 18% Yr. 3: 20% Yr. 4: 24% Yr. 5: 28% Yr 6: 40% Yr 7: 50%

Yr5: 54.4% Yr6: 53.9%

Significant progress of realization of new labor legislation recommended by the 2011 White Book by the Foreign Investors Council in Serbia

Qualitative Foreign Investors Council in Serbia

Annual N/A Yr 2: 1 Yr 3: 2 Yr.4: 6 Yr 5: 6

Yr5: Task completed

Decrease in percentage of businesses responding that labor law has negative impact on business

Qualitative Business Survey

Annual 2011: 75% Yr. 3: 65% Yr. 5: 55%

Task completed

2.Business effectively partners with Government in developing and

Increase in business sector participation on laws improving regulatory environment

Qualitative Business Survey Annual Yr 1: 19% of businesses agree that there was improvement

Yr 2 : 21% Yr 3: 25% Yr 4: 28% Yr 5: 32%

Activity completed

Number of public private Numeric Value Project Reports Annual N/A Yr 1: 3 Q1:3


implementing regulatory reforms

dialogue mechanisms/ events on business regulation issues created by the project

Yr 2: 5 Yr 3: 5 Yr 4: 5 Yr 5: 2 Yr 6: 5 Yr 7: 2

Q2:6 Q3:2 Q4: 6 Yr6: 17

3. Improve and support the regulatory review process and RIA process

Number of substantial RIAs conducted by GoS

Numeric Value Project Reports/ Office of Regulatory Reform Reports

Quarterly 2010: 8 Yr 1: 10 Yr 2: 15 Yr 3: 20

Activity completed

Business perception of transparency and predictability increases

Qualitative Business Survey Annual Yr1: 23% agree that transparency and predictability increased

Yr 2: 25% Yr 3: 28% Yr 4: 32% Yr 5: 35%

Activity completed

4. Improve corporate governance standards, policies and regulations

Improvement in Doing Business Strength of Investor protection Index

Qualitative World Bank Doing Business

Annual Yr1: 5.3 2012: 5.3 2013: 6

Task completed

Number of Commercial Court judges trained in implementation of the Company Law

Numeric Value Project Reports Quarterly N/A Yr 1: 20 Task completed

5. Create enabling environment for PPPs

Number of training hours of representatives of public sector entities and private companies trained in PPP

Numeric Value Project Reports Annual N/A Yr 2.: 200 Yr 3.: 200

Task completed

Completion of regulatory framework (bylaws and methodologies) for PPP

Qualitative Project records Annual Nonexistence of complete normative framework (bylaws and methodologies) for PPP

Yr 2.: 0 Yr.3: Complete normative framework (bylaws and methodologies) for PPP (specifically 1-Methodological materials in the field of public-private partnerships and concessions; 2-Bylaw on public contracts registry; 3-Bylaw on Supervision over Implementation of Public Contracts

Task completed

Component 2: Macroeconomic Policy and Public Financial Management Enhanced

1. Improve GoS budgeting, fiscal policy analysis, and financial management

Improvement in the quality of Medium Term Budgeting and Prioritization

Qualitative Project Reports Annual No effective budgeting framework is in place

Yr 1: Fiscal Strategy Report (FSR) contains estimates of potential GDP Yr 2: FSR contains estimates of structural deficit

Q4: FSR includes strategic priorities that are reflected in program budgets of ministries and independent budget users


efficiency Yr 3: FS contains framework for fiscal consolidation measures and impact assessment Yr 4: FS includes macroeconomic and fiscal projections based on utilization of DSGE model Yr 5: FS includes strategic priorities that are reflected in program budgets of ministries and independent budget users Yr 6: FSR contains expenditure ceilings for State Level Direct Budget Users Yr 7: FSR includes strategic priorities that are reflected in program budgets and MTPs of Line Ministries

Share of GoS Line Ministries which submit their Medium-Term Plans compliant with the new Methodology for development of Medium-Term Plans in the total number of the Line Ministries

Numeric Value MoF and PPS documents

Annual Yr 5: 0% Yr 6: 10% Yr 7: 50%

Q1: 0% Q2: 0% Q3: 0% Q4: 0% Yr6: 0%

Share of new capital projects in the Law on the Budget which are compliant with the Methodology for Preparation, Evaluation and Monitoring of capital projects in the total number of new capital

Numeric Value Law on the Budget Annual Yr 5: 0% Yr 7: 40% Q1: 0% Q2: 0% Q3:0% Q4: 0% Yr6: 0%

PEFA Assessment Multi- Year Score on perspective in fiscal plannin , expenditure policy and budgeting

Qualitative PEFA Assessment (due Nov 2013)

Annual/ Results published every 3 years

2010: Scored C Yr 5: Score B

The 2015 PEFA report draft: C+

PEFA Assessment Score on predictability

Qualitative PEFA Assessment (due Nov 2013)

Annual/ Results published every 3

2010: Scored C+ Yr 5: Score B

The 2015 PEFA report draft: D+


in the availability of funds for government expenditures

years

Number of articles published in the area of fiscal policy containing research and analysis provided through BEP assistance that support changes in fiscal policy

Numeric Value Project Report Monthly N/A Yr 1: 2 Yr 2: 3 Yr 3: 3

Yr4: No more activities planned for this indicator

Number of person hours of training of GoS staff on macroeconomic policy and public financial management topics

Numeric Value Project Reports Annual N/A Yr 1: 500 Yr 2: 1000 Yr 3: 1000 Yr 4: 750 Yr 5: 300 Yr 6: 830 Yr 7: 260

Q1: 240 Q2: 362 Q3: 110 Q4: 204 Yr6 :916

Quality of public dialogue and debate on macroeconomic and fiscal issues is improved in the last 12 months

Numeric Value Business Survey Annual Yr1: 4% agree that there was improvement

Yr2: 9% Yr3: 11% Yr4: 13% Yr5: 15% Yr 6: 17% Yr 7: 18%

Yr5: 17% Yr6: 18.7%

Number of outreach activities aimed at improving participation of legislature, citizens and businesses in budgetary and fiscal decision-making

Numeric Value Project Report

Annual N/A Yr 1: 2 Yr 2: 3 Yr 3: 4 Yr 4: 4 Yr 5: 3 Yr 6: 2 Yr 7: 1

Q1: 0 Q2: 0 Q3: 0 Q4:0 Yr6: 0

PEFA Assessment Score on Legislative scrutiny of the annual budget Law

Qualitative PEFA Annual/ Results published every 3 years

2010: C+ Yr6: Score B

The 2015 PEFA report draft: C+

Number of persons from the Parliamentary committees trained on program and performance budget

Numeric Value Project Reports

Annual Yr2: 0 Yr 3: 15 Yr 4: 60 Yr 5: 20 Yr 6: 40 Yr 7: 15

Q1: 0 Q2: 0 Q3: 0 Q4: 0 Yr6: 0

Share of State Level Numeric Value Project Reports and Annual Yr2: 0 Yr 4: 100% Yr5: 99.45%


Direct Budget Users which implemented program budget with BEP support out of total number of State Level budget users

MoF (Budget documents)

Yr 5: 100%

Percentage of State Level Direct Budget Users that have submitted reports on achievement on objectives and indicators set in their Program Budgets

Numeric Value MoF documents Annual Yr 5: 0% Yr 7: 100% Q1: 0% Q2: 0% Q3: 0% Q4: 0% Yr6: 0%

Share of Provincial Level Direct Budget Users which implemented program budget with BEP support out of total number of Provincial Level budget users

Numeric Value Project Reports MoF (Budget documents)

Annual Yr3: 0 Yr 4: 100% Yr 5: 100%

Yr 5: 100%

2. Improve public debt management and conditions for Government financing

Operational status of debt management system and number of reports developed to manage debt risks and strategy

Numeric Value PDA (Public Debt Administration) ad hoc report

Annual N/A Yr 1: 0 reports (system not functional); Yr 2: 2 reports( system operational); Yr 5: 3 reports.

Q1: 0 Q2: 0 Q3: 0 Q4: 0 Yr6: 0

Proportion of key PDA staff trained in debt management, economic and risk analysis

Numeric Value Project records Annual N/A Yr 1: 10% Yr 3: 50% Yr 5: 75%

Activity completed

3. Improve macroeconomic policy and strategy

Number of published studies and articles containing research and analysis provided through BEP assistance that support changes in macroeconomic policy

Numeric Value Project Report Annual N/A Yr 1: 2 Yr 2: 5 Yr 3: 8 Yr 4: 8 Yr 5: 6

Activity completed

Awareness of Government’s Economic Growth Strategy

Qualitative Business Survey Annual Yr1: 20% of businesses agreed that they have some awareness and

Yr 2: 20% Yr 3: 25% Yr 4: 30% Yr 5: 35%

Yr5: 60.7% Yr6: 61%


understanding of the strategy

Yr 6: 62% Yr 7: 64%

Component 3: Increased Financial Market Development

1.Strengthening capital markets

Compliance with IOSCO standards in areas of securities intermediaries and equity issuance improves

Qualitative/ Numeric Value

Project and IOSCO Reports

Annual Yr1: 50%

Yr 5: Compliance improves to 60% or better

Activity completed

Number of intermediaries trained and advised about upcoming securities laws

Quantitative Securities Commission and Project Report

Annual Yr 1: 0 Yr 4: 20 Activity completed

2.Strengthen enabling environment for commodity exchange

Status of the legal and market framework for a commodities exchange

Qualitative Project Report/MoF Report

Annual Regulatory framework currently not in place

Yr 2: Commodities exchange law and regulatory framework established Yr 3 : Establishment of the commodities exchange

Activity completed

3. Improve GoS access to finance through development of a long term, liquid public debt market

Value of dinar denominated debt

Numeric Value Statistics Office Annual 2010: Value of dinar debt is 14% of total borrowing

Yr 5: Proportion of borrowing increases to 20%

Activity completed

Government initiates a public issue of debt to more diversified investor base

Qualitative PDA (Public Debt Administration) ad hoc report

Annual New baseline 2013: 53.6%

Yr 5: 40% Activity completed

4. Improving access to finance for small and medium enterprises and entrepreneurs

Status of the legal and market framework for NBFIs

Qualitative Project Report/MoF Report

Annual Yr2: Regulatory framework currently not in place

Yr 4: NBFIs Law and regulatory framework established Yr 5 : At least one new NBFI firm registered in Serbia Yr 6: NBFIs Law and regulatory framework established Yr 7: At least one new NBFI firm registered in Serbia

Q4: Due to organizational restructuring at the NBS, the Working Group activities were temporarily suspended. A new chairperson was appointed in November to lead the Working Group, and our cooperation with them has now resumed, although unfortunately at a much slower pace than needed


Status of legal framework for factoring established

Qualitative Project report Annual Yr1: No legal framework on factoring

Yr3:Legal framework established Activity completed

Status of legal framework for leasing established

Qualitative Project report Annual Yr1: Existing legal framework on leasing

Yr5: More than half of BEPs recommendations adopted and implemented Yr6: 75% of BEPs recommendations adopted and implemented

Q4:40 percent of recommendations were adopted and implemented (i.e. requirement for leasing companies to hold reserve funds based on the size of their portfolio is removed; changes of the Law on Insurance have enabled leasing companies to act as insurance agents; VAT treatment of the real-estate leasing transaction has been resolved, Amendments to the Law on Court Jurisdiction, leasing included in a State support program) State support program)

Value of credit financed from NBFI’s to businesses increases

Numeric NBS Publications, Stock Market, and Securities Commission Reports

Annual Yr 2: Baseline 1.388 EUR

Yr 1: 0 Yr 2: 0 Yr 3: 5% Yr 4: 10% increase from Yr3 Yr 5: 10% increase from Yr4 Yr 6: 5% increase from Yr5 Yr 7: 5% increase from Yr6

Yr5: 853.744.855 EUR

Number of public private dialogue events on access to finance

Qualitative Project Reports Annual 2010: 0 Yr 1:2 Yr 2:9 Yr 3:13 Yr 4: 10 Yr 5: 5 Yr 6: 5 Yr 7: 2

Q2: 1 Q2: 1 Q3: 2 Q4: 4 Yr6: 8


Number of recommendations in the area of strengthening regulation, management, and effectiveness of state aid containing analysis and researches provided through BEP assistance that support the Government streamline state aid.

Quantitative Project Annual Yr 2: 0 Yr 3: 2 (Grant Scheme and AOFI document) Yr 4: 2 Yr 5: 1 Yr 6: 3 Yr 7: 1

Y5: 3 (Grant Scheme and Report on Government Financing Support for SMEs, International Practices, and Issues to Consider in Serbia)

Increased awareness of the role of the financial sector in economic development

Qualitative Business Survey Annual Around 25% of businesses expressed a sort of an agreement that there is awareness

Yr 5: 50% increase in awareness Activity completed

Increase in average value of loan size and borrowing by SME’s

Qualitative/ numeric

Business Survey Annual Yr 1: 89,475 EUR Yr 2.: 0% points increase from baseline Yr 3.: 10% point increase Yr 4.: 15% point increase Yr 5.: 20% point increase

Yr5:47% decrease (€47,577)

Getting Credit Index Qualitative World Bank Doing Business Report

Annual Yr 5: ( DB 2016 Rank): 59

Yr 6 (DB 2017 Rank): 40 Yr 7 (DB 2018 Rank): 30

Yr5 :59 Yr6: 44

Regulatory change – amendments to the Law on Mortgage and/or Law on Pledges adopted

Qualitative Project Reports Annual Yr3: No Yr 5: Adopted Mortgage Law Amendments supported by BEP adopted in July 2015. Activity completed

In-Court and Out of Court Credit Enforcement Perception

Qualitative Survey among major creditors – banks

Annual N /A Yr 6: 25% of surveyed banks agree that enforcement has improved compared to previous year Yr 7: 30% of surveyed banks agree that enforcement has improved compared to previous year

Q1: 0% Q2: Q3: 11,8% Q4: next scoring will be conducted in June 2017


ATTACHMENT 5: BEP SUBCONTRACTING UPDATE

Solicitation Date of Issue Title Offeror

Amount

USD Status

RFP-2016-01 June 17, 2016 Implementation of a Business Survey in Serbia CeSID 14,625 Not selected

RFP-2016-01 June 17, 2016 Implementation of a Business Survey in Serbia GfK 19,500 Not selected

RFP-2016-01 June 17, 2016 Implementation of a Business Survey in Serbia IPSOS 20,037 Selected

RFP-2016-02 July 8, 2016 Trainings for Professional Enforcement Officers on Financial

Management, Mediation and Effective and Efficient Enforcement Process

Valor Akademija doo

Beograd

30,000

Not selected

Database on real-estate established and being used by valuators

Qualitative Project Reports Annual Yr3:No database Yr 5: Database established Yr 6: Database used by valuers

Yr6, Q3: Database established and used by the NBS (will become fully functional once the new Real Estate Valuation Law is adopted)

Number of property valuers licensed by Ministry of Finance

Quantitative Ministry of Finance, Registry of Licenced Valuers

Annual Yr5: 0 Yr 6: 50 Y 7: 100

The Law not adopted yet

Number of businesses trained and reached on accounting role on A2F

Quantitative Project reports Annual Yr3:0 Yr 4:120 Yr 5:150

Activity completed

Number of persons from SMEs trained and advised about Access to Finance

Qualitative Project report Annual Yr1:0 Yr 3:200 Yr 4:250 Yr 5:100 Yr 6:120

Q1: 141 Q2: 0 Q3: 0 Q4:0 Yr6: 141


RFP-2016-02 July 8, 2016

Trainings for Professional Enforcement Officers on Financial

Management, Mediation and Effective and Efficient Enforcement

Process

Finnok edukacija i

konsalting doo

Pančevo 29,749

Not selected

RFP-2016-02 July 8, 2016 Trainings for Professional Enforcement Officers on Financial Management, Mediation and Effective and Efficient Enforcement

Process

Partners for Democratic Change

Serbia 29,922

Selected

RFP-2016-02 July 8, 2016 Trainings for Professional Enforcement Officers on Financial Management, Mediation and Effective and Efficient Enforcement

Process

European Consulting

Group 28,800

Not selected

RFP-2016-04 August 19,

2016

Training Of Inspectors On Communication, Conflict Resolution

And Prevention, And Other Soft Skills Relevant For Conducting Inspection Oversight

Partners for

Democratic Change Serbia 34,836

Selected

RFP-2016-03 August 11, 2016

Team Building and Staff Development Program for the Ministry

of Finance Budget Department

Atria Group

9,060 Not Selected

RFP-2016-03 August 11, 2016

Team Building and Staff Development Program for the Ministry of Finance Budget Department

Gi Group HR Solutions 8,900

Selected

RFP-2016-03 August 11,

2016

Team Building and Staff Development Program for the Ministry

of Finance Budget Department

Assessment Systems

Adria 9,000 Not Selected

RFP-2016-05 October 6, 2016

Capacity Building For Efficient Construction Permitting NALED

20,000 Selected

RFP-2016-05 October 6,

2016

Capacity Building For Efficient Construction Permitting NUZOP

14,156 Not selected

RFP-2016-06 November 03, 2016

Services On Harmonization Of Special Inspection Legislation With Law On Inspection Oversight

BCRR 37,200

Selection committee met


FINANCIAL STATUS OF SUBCONTRACTS

Name of

subcontractor Title No. subcontract

Amount

USD

Status

NALED

Providing Professional Business Management Consultancy to the Ministry of

Construction, Transport and Infrastructure (MCTI), Business Registry Agency (BRA) and City Of Belgrade (CoB) 4691-001-Local FFP-01

59,660

9/9 paid

IPSOS Implementation of a Business Survey in Serbia 4691-001-LocalFFP-02 20,037 3/ 4 paid

Partners for

Democratic Change Serbia

Training Of Inspectors On Communication, Conflict Resolution And

Prevention, And Other Soft Skills Relevant For Conducting Inspection Oversight 4691-001-LocalFFP-03

35,000 4/7 paid

Gi Group HR

Solutions

Team Building and Staff Development Program for the Ministry of Finance

Budget Department 4691-001-LocalFFP-04 8,900 1/2 paid

Partners for Democratic

Change

Trainings for Professional Enforcement Officers on Financial Management,

Mediation and Effective and Efficient Enforcement Process 4691-001-LocalFFP-05

30,216 1/5 paid

NALED Capacity Building for Efficient Construction Permitting 4691-001- Local FFP-06 20,000 0/5 paid

Subcontract

TOTAL

173,813