Public-Private Partnership (PPP) as a tool to enhance Social Dialogue at the local level Community of Practice Event: The Principles of Partnerships: Contributions to European Integration and Development Effectiveness A Bosnia and Herzegovina Experience Belgrade, 7-9 December 2005 Massimo Diana, Programme Manager, UNDP BiH

The role of PPP in local development Worldwide experiences demonstrate the important contribution of successful PPP to local development through increased social cohesion, cost-effective use of resources, improved service delivery, employment promotion, good governance, etc. PPP is not a “one fits all” solution, although a common element of PPP success is Social dialogue, which is key to enhance trust, promoting informed decision-making, finding appropriate responses to local needs and, last but not least, increasing local ownership and transparency.

A BiH Experience: The UNDP SUTRA initiative Supporting the establishment of operational systems and mechanisms to manage and disburse funding for return, reintegration and local development through the BiH Return Fund, in line with requirements of the EU Structural Funds. Making BiH municipalities direct and reliable partners for domestic and international development donors through their increased involvement in the return, reintegration and community development process. Encouraging communities, civil society and business sector, through participation in Local Action Groups, to articulate the challenges they face and design and manage solutions that are relevant, particularly in identifying priorities for sustainability actions

Why apply a PPP approach? To support an effective, responsible and successful disengagement of the international community: Enable national institutions and organisations to make and implement decisions, policies and directives, Support access to information on state policies by actors operating at the municipal level (verticalization) Assist BiH citizens to equally demand and act upon obtaining a better future Advocate that institutions interact with community and integrate citizens recommendations Explain that citizens can influence change by association, advocacy and lobbying Assist communities in effectively monitoring government delivery

Does PPP add value? They enable pooling of resources, know-how and expertise with the objective of improving dialogue and access to information; Parties are equally involved in setting the conditions for cooperation; Partners’ contributions to the partnership are complementary to each other and determined by their respective roles and possibilities Geographical closeness facilitates exchange of information and cooperation The voices of those most deprived are not only heard but also properly represented

The UNDP/SUTRA Local Action Group (LAG) Definition of a local Partnership, which is, in legal jargon, an "unincorporated association" which means that it has no legal status and therefore is not designed to hold money, employ its own staff etc. The Local Action Group is an operational body for the implementation of SUTRA project at the local level with an aim to represent a role model for future cooperation in line with public-private partnership concept. In essence, LAGs are a forum to support local implementation of return, reintegration and community development projects and thus contribute to local sustainable development.

The purpose of a LAG : planning what to do; delivering their actions; finding out if they have been successful; and if they have building on these successful activities and integrating them into their main services so that they become more responsive and address the real needs of local communities.

Who comprises a LAG? A representative of the municipality (nominated by the municipal mayor) A representative of the business sector (nominated by Regional Development Agency covering the area of municipality) A representative of a non-governmental organization (nominated by the organizations forming the NGO Coordination Body) Other actors are included in the work of LAGs during different phases of SUTRA implementation

Roles and responsibilities of LAG members The municipality: Coordinates the entire process; Implements procedures in accordance to domestic regulations and specific project requirements; Encourages and enables participation of the NGO sector in the overall process, and enables equal participation of representatives of all three sectors in work and decision- making of the LAG; Strengthens its capacities and establishes relations with external participants in the process (vertical cooperation with line ministries, cooperation with the State Regional Centres, State Monitoring Unit, etc); Promotes the PPP concept and citizens’ participation in the decision-making process, recognising their importance for the development of local communities.

Roles and responsibilities of LAG members The non-governmental sector: A non-governmental organization which represents the NGO sector in the work of the LAG and consults the NGO Coordination Body prior to any decision making at the LAG level; As a partner to municipal structures, participates in the implementation of activities for which it has capacity; As active participant in the decision-making process, assumes responsibility for the decisions made. Represents community needs, participates in setting local priorities and builds own capacities to constructively engage with the municipal administration.

Roles and responsibilities of LAG members The business sector: Suggests possible economic initiatives to support sustainable return, reintegration and development of local communities; Identifies business opportunities for returnees within the resources available from the project; Identifies other available economic initiatives to create synergies to maximize impact and increase the sustainability of the return and the development of local community; Provides support to returnees and/or partners in the Local Action Group with business plan preparation, business studies, etc. As member of Regional Development Agencies, ensures an effective information flow and cooperation.

LAG Activities The basic task of the LAG is sub-project proposal development ensuring this reflects the real needs of local communities and in line with project guidelines; Monitors the implementation of project activities in a timely and qualitative manner; Promotes SUTRA at the local level, along with the PPP concept in general. Monitors the overall process of beneficiary selection respecting deadlines as the basic pre-condition for correct and reliable planning of field project implementation

LAG Principles of work Partners cooperate and support each other in the implementation of the project by: allocating tasks among partners based on competency and capacity, educating each other about specific topics related to successful implementation of the project, exchanging information, etc.) Decisions related to the implementation of the project are based on consensus. Partners sign a partnership statement that is annexed to the overall MoU signed between the UNDP and the Municipality LAGs adopt an internal Rule Book regulating its own activities

Some successes The example from Lukavac municipality shows direct impact of a well thought–out PPP principle application, whereby the Tuzla Regional Development Agency, along with the municipality and local NGOs identified community needs and prepared projects accordingly. Focus moved from individual to group assistance, using already pre-defined questionnaire and incorporating market analysis for the area of return to best utilise available resources and maximize effected returnee population Later on such collaboration was evident during the proceeding phases of project implementation. Most importantly such matrix co-operation is intended to be reused during future projects and will continue to serve the community as a permanent, consultative body administered on volunteer basis

Some issues Passivity of some local authorities to handle their responsibilities. Not identifying the need to consult with the community, inability to follow the Project Cycle Management principles and lack of knowledge when it comes to financial management and proper reporting. Municipal LAG members usually overloaded with additional assignments, thus their commitment tends to be questionable at times. Information flow deficiencies - both vertical and horizontal levels within the municipalities. Municipal authorities fail to recognize the importance of the NGO and/or business sectors in their community. Given that LAGs are not legal persons, some ambiguity can develop among stakeholders as to who retains final responsibility for the activities being carried out.

The NGO Coordination Body The NGO Coordination Body consists of up to five NGOs in each municipality. The mapping process of NGOs active in the area is conducted prior to the self-selection of organizations in the Coordination Body. The process of mapping of NGOs within SUTRA is carried out in order to identify NGOs active in the municipal area with the purpose of possible participation in the implementation of the project as well as for the reason of establishing the NGO Coordination Body; NGOs in the Coordination Body nominate their representative to the LAG.

The NGO Coordination Body During the mapping process, organizations show their readiness for cooperation in the implementation of the project, as well as willingness to cooperate with local authorities and business sector representatives to further the PPP concept. Since LAG reaches decisions by consensus, NGOs will, through the organization that represents them in the LAG, be on an equal position with local authorities and business sector and thus have an active role in the decision-making processes; During project implementation, NGOs will, through the NGO Coordination Body and through the organization which represents them in the LAG, participate in the design of sub- project proposals.

Thank you! Questions are welcome For further information, please contact UNDP BiH Marsala Tita