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USAID’S BUSINESS ENABLING PROJECT QUARTERLY REPORT: FOURTH QUARTER 2014

January 10, 2015

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 2014

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 2014 — Page i

TABLE OF CONTENTS

PROJECT OVERVIEW ..................................................................................................................... 1

HIGHLIGHTS DURING THE REPORTING PERIOD .......................................................................... 2

REVIEW OF PROJECT PROGRESS ................................................................................................ 4

ADMINISTRATIVE AND GENERAL ACTIVITIES ............................................................................................ 4

COMPONENT 1 .................................................................................................................................... 5

COMPONENT 2 .................................................................................................................................. 12

COMPONENT 3 .................................................................................................................................. 15

PUBLIC SECTOR CAPACITY BUILDING INITIATIVES .................................................................................. 19

OUTREACH ....................................................................................................................................... 20

GRANTS ........................................................................................................................................... 21

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

UPCOMING ACTIVITIES ....................................................................................................................... 25

COMPONENT 1 .................................................................................................................................. 25

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

COMPONENT 3 .................................................................................................................................. 26

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

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

ATTACHMENT 3: PROGRESS VERSUS WORKPLAN .................................................................. 42

COMPONENT 1: BUSINESS REGULATION AND ECONOMIC GOVERNANCE .................................................................... 42

COMPONENT 2: MACROECONOMIC POLICY AND PUBLIC FINANCIAL MANAGEMENT ....................................................... 52

COMPONENT 3: FINANCIAL MARKET DEVELOPMENT ........................................................................................... 57

ATTACHMENT 4: PROGRESS VERSUS PERFORMANCE MONITORING PLAN ......................... 64

ATTACHMENT 5: BEP GRANTS UPDATE .................................................................................... 75

USAID’s Business Enabling Project Quarterly Report: Fourth quarter 2014 — Page 1

GoS Partners

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

■ Ministry of Agriculture, Forestry and Water Management

■ Ministry of Construction and Urbanism ■ Ministry of Finance ■ Ministry of Economy ■ Ministry of Foreign and Internal Trade

and Telecommunications ■ Ministry of Labor, Employment and

Social Policy ■ Ministry of Justice and Public

Administration ■ Public Debt Administration ■ Office for Regulatory Reform and

Regulatory Impact Assessment ■ Securities Commission

■ Fiscal Council (independent body)

PROJECT OVERVIEW

USAID’s Business Enabling Project, implemented by Cardno Emerging Markets USA, is a five-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 result, Serbian businesses have a better chance to be competitive in the global economy, leading to

export-led economic growth and increased employment.

BEP uses a 19 person staff (18 Serbians, one expatriate), substantial Serbian and expatriate medium and short term advisors, four interns, and a grants fund to provide technical assistance to GoS and

other counterparts.


HIGHLIGHTS DURING THE REPORTING PERIOD

This report covers the thirteenth quarter of BEP’s operation – October 1 to December 31, 2014. We

want to highlight the following noteworthy activities during the period:

The Government of Serbia (GoS) Implemented Program Budgeting in the 2015 Budget. On

December 25, National Assembly adopted the 2015 Budget Bill, which introduces the program

budgeting model for all direct budget beneficiaries. Minister of Finance Dusan Vujovic has said this Bill for the first time provides for full transparency of all transactions. With assistance provided by

BEP, in February 2014 the Ministry of Finance (MoF) issued a Program Budget Methodology that has

provided a set of guidelines to budget

beneficiaries for establishing financial plans, program activities, and projects. Over the last

year, BEP and MoF have conducted

comprehensive training of civil servants on program budget concepts and performance

indicators. The introduction of program

budgeting is an important milestone for improved policy planning, prioritization, and coordination

of the Government, as it provides a uniformed

framework for assessing the costs of policy

initiatives, and their relevance to the strategic goals of the Government.

Parliament Adopted the Law on Planning and Construction. The law was approved by the

Government on November 27, and was officially adopted by the Parliament on December 8 with 154 members of parliament voting in favor, one against, and four abstentions, making it one of the rare

pieces of legislation to receive support from most opposition MPs. USAID BEP worked intensively

with the Ministry of Construction, Transportation and Infrastructure to complete the law, along with a

regulatory impact assessment and all other required analyses and documents required for approval by the Government. The law will significantly lessen the time and expense involved in obtaining

construction permits. The law provides for One-Stop-Shops, which will allow investors to

communicate with only one government office, instead of being required to contact dozens of government institutions and public enterprises, as is the case now. The Law also introduces an entirely

new accountability mechanism: the One-Stop-Shops have authority to monitor compliance of public

institutions with legal requirements, particularly statutory deadlines.

Draft Law on Inspection Oversight Completed. During the fourth quarter of 2014, BEP helped the

GoS finalize this key legislation. BEP helped incorporate comments and suggestions from public

consultations and government consultations into the final draft, developed key bylaws, prepared the

regulatory impact assessments, and participated in final deliberations on key aspects of the legislation such as the constitution of the coordination body. At the Foreign Investors Council’s presentation of

its 2014 White Book, Deputy Prime Minister and Minister of State Administration and Local

Government Kori Udovički, confirmed that the Draft Law on Inspection Oversight would enter Parliamentary procedure by the end of 2014. Ms Udovički explained that the Draft Law, drafts of key

bylaws, and implementation plan - developed jointly by BEP and the Government of Serbia – would

be submitted as a single regulatory package. Although the draft law is finished and is ready for submission, it was not submitted before the end of the quarter because the Ministry of Finance is

reconsidering its position that the law should not apply to Tax Inspections.

BEP Continued Property Valuation Reform. BEP continued its work to improve the quality and

reliability of property valuation, aiming to help increase availability and reduce cost of finance. In November and December, BEP participated in meetings of the Property Valuation Reform Working

Group established by the Ministry of Finance. The BEP team prepared the draft National Standards

for Property Valuation, and the draft Valuers Law.

BEP helps Increase Access to Finance by Improving Financial Qualifications of Firms. BEP

Minister Vujovic Explains Budget in National Assembly


implemented a program entitled “Role of Good Accountant in Access to Finance for SMEs” under a

grant to the Academy for Banking and Finance (ABF). The program includes interactive training for SMEs, and ABF prepared publicly available distance learning video training sessions and a manual.

The manual contains explanations, case studies, as well as short videos that illustrate, additionally

explain, and enhance lessons on how a good accountant adds value to a firm and improves its access

to finance.

The National Assembly Adopted Amendments to the Investment Funds Law that BEP helped

draft. Amendments to the Investment Funds Law were adopted by the National Assembly on

October 23. BEP provided comments and revised provisions for the amended law, and prepared a transposition table that shows the level of compliance with relevant EU Directives. The amendments

are another step in aligning national legislation with the EU law (UCITS Directive, 2009/65/EC) in

accordance with the Serbia 2014 Progress Report and the National Action Plan for Fulfillment of EC Recommendations.

BEP Annual Survey Shows Slightly Improved Business Environment. BEP’s fourth annual

survey of 1,000 Serbian businesses found that Serbian executives believe the business environment in

Serbia improved slightly during 2014, though lengthy and expensive regulatory procedures and reduced bank finance continue to harm their companies' competitiveness. Introducing the report,

Ambassador Michael D. Kirby noted some positive

findings: about 17 percent of businesses in the last two years reported that corruption has a large impact on their

business, down from 41 percent in 2011 and 33 percent

in 2012. Ambassador Kirby also highlighted the reduced burden of dealing with inspections. Respondents said that

the time their businesses dedicated to inspections

dropped to an average of 12 hours in 2014 from 70 hours

in 2011, and that the number of inspectors’ visits continued to drop, averaging 1.6 visits in 2014, compared

with 6 visits in 2011.

BEP Promoted Non-Bank Financial Institutions as a Solution to SMEs' Lack of Finance. USAID BEP has been promoting legislation that would allow non-deposit taking, non-bank financial

institutions (NBFIs) to provide such finance in Serbia (currently there is no legislation that would

allow them to enter the market). During the quarter, USAID BEP continued to publicize its Report on

Market Impact Assessment of Introduction of NDMFIs in Serbia, which shows that hundreds of millions of Euros would be mobilized as microfinance if legislation would be enacted to enable

microfinance in Serbia.

BEP Promoted its Government Internship Program as a Way to Hire Talented Public Servants. On September 17, USAID BEP and its grantee Belgrade Open School (BOS) presented the results of

the pilot internship program in the Government of Serbia during the conference "Challenges in Public

Administration Reform and Employment of Young Professionals in Serbia”. Kori Udovicki, Deputy Prime Minister and Minister of Public Administration and Local Self-Government, Ambassador

Michael Kirby, Nenad Borovcanin, State Secretary in the Ministry of Youth and Sports, Dusan Protic,

Assistant Minister of the Ministry of Trade, Tourism and Telecommunications, Srdjan Majstorovic,

Deputy Director of the European Integration Office, Milorad Bjeletic, Executive Director of the Belgrade Open School and Joe Lowther, USAID BEP’s Chief of Party gave introductory speeches.

Ambassador Kirby stated that internship programs in governmental institutions are vital for the future

of public administration. GoS internships are possible under current law and BEP is preparing guidance for GoS internship programs. Internships are also provided for in the GoS draft Public

Administration Reform Strategy.

BEP 2014 Survey Event


REVIEW OF PROJECT PROGRESS

Administrative and General Activities

The Annual BEP Business Survey showed some improvement in the business environment.

BEP’S fourth annual survey of 1,000 Serbian businesses found that Serbian executives believe the business environment in Serbia improved slightly during 2014, though lengthy and expensive

regulatory procedures and reduced bank finance continue to harm their companies' competitiveness.

The survey report showed some positive findings: about 17 percent of businesses in the last two years reported that corruption has a large impact on their business, down from 41 percent in 2011 and 33

percent in 2012. There was a also a reduced burden to business of dealing with inspections:

respondents said that the time their businesses dedicated to inspections dropped to an average of 12 hours in 2014 from 70 hours in 2011, and that number of inspectors’ visits continued to drop,

averaging 1.6 visits in 2014, compared with 6 visits in 2011. But respondents also said they

continued to face the same problems as in previous years in critical areas such as para-fiscal charges,

wage taxes and contributions, VAT, exchange rate volatility, tax administration, and administrative procedures. It is clear that Serbian businesses lack access to adequate financial products that would

allow them to expand. The survey results show that 65 percent of the companies do not use use any

external source of finance – not banks, not even family and friends. Even those that do borrow from external sources use banks for only 25 percent of their finance, with most finance still coming from

their own funds. Business executives complained of several obstacles to borrowing: 91 percent said

high interest rates and fees stymied borrowing and 77 percent cited collateral requirements. The survey also found that just 8 percent of Serbian companies’ products or services are exported.

Looking ahead, businesses continue to be more and more optimistic about the future. During the last

three years we have seen increases in the percentage of businesses that expect to make profits (from

34 percent in 2012, to 43 percent in 2014) and that plan to hire more workers (from 19 percent in 2012, to 26 percent in 2014).

BEP participated in a three-day local economic development workshop organized by the USAID

Sustainable Local Development Project (SLDP) in Nis. On November 17 to 20, a total of 26 representatives of 18 local economic development offices attended a three-day workshop entitled

“Legal Framework for Support to Local Private Sector and Investors.” On the first day of this event,

BEP presented construction permitting reforms and the new Law on Planning and Construction. On

the second day of the workshop, BEP presented its activities aimed at fostering financial market development, including the creation of a regulatory framework for non-banking, non-deposit-taking

financial institutions; recommendations for enhancing leasing regulation; improvement of real estate

valuation; and proposals to resolve issues related to enforcement of judgments that affect SME access to finance. Apart from these presentations, officers of Jubmes Factor and Societe Generale Factoring

presented the Law on Factoring and the various models of factoring available in the market. BEP also

provided educational materials for dissemination to businesses in local communities. The participants assessed the presentations as very useful.

BEP met the Minister of Economy to discuss further cooperation. On November 14, BEP met

with Zeljko Sertic, Minister of Economy to discuss next steps in joint cooperation areas: adoption of

SMEs strategy, redesign of the state aid, and decreasing regulatory burdens. Minister Sertic informed us that MoE is preparing the Law on Investment that will address some of the state-aid related issues,

mainly institutional set-up, and that they will send the draft law to BEP for comments and review. He

also stated that the SMEs Action Plan will be adopted, and the SMEs Council established by the end of this year. Minister Sertic is ready to take leadership in advocating for the reforms necessary to

foster SMEs growth, and to closely monitor the implementation of the Action Plan. BEP and MoE

will have a series of additional meetings to structure their joint activities in 2015.

BEP participated in World Trading Organization’s (WTO) Self-Assessment of needs and

priorities for Serbia. The purpose of this three day seminar was to assess the current level of

Serbia’s compliance with the WTO Trade Facilitation agreement and to determine what measures

should be implemented. Participants from the Ministry of Trade, Tourism and Telecommunication, Customs Administration, USAID, IFC, and the private sector identified possible problems and defined


future steps towards implementation of the Trade Facilitation agreement. Stevan Nikcevic, State

Secretary in the Ministry of Trade, Tourism and Telecommunication, Dusko Marinkovic, Assistant to director of Customs Administration, Susan Kutor, USAID Economic Growth Office director, Violane

Konar-Leacy, Project manager at IFC Western Balkans Trade Logistics Project made the opening

remarks. Mr. Paul Fekete, USAID Washington Senior International Trade Advisor, presented the

Trade Facilitation agreement and its possible benefits if implemented. He also presented technical measures, special treatment, possible difficulties and next steps in the implementation of the

agreement. Serbia is overall substantially compliant with the measures, but still needs to work on

some minor changes. These are the issues that require further attention and coordination: Forming National Trade Facilitation Committee, Single Window, Perishable Goods, Expedited Shipments, and

Enquiry Points. The analysis shows that most of these measures can be implemented within one year

and the biggest challenges are procedures and human resources.

Component 1

Under Objective 1, Task 1, "Improve Inspections Operations and Organization," during the

quarter BEP helped the Ministry of State Administration and Local Government (MoSALG) complete

the Draft Law on Inspection Oversight. Although Minister of State Administration and Local Government Kori Udovicki stated that the Law would be enacted by December 31, the Law has not

yet been adopted by the GoS and sent to the National Assembly.

But the Law is finished, and several major activities by BEP contributed to finishing the draft law in a

participatory and evidence-based process:

■ On October 9-11, BEP and the Ministry of State Administration and Local Government

(MoSALG) organized a retreat to analyze comments and suggestions on the Draft Law on

Inspection Oversight obtained through public consultations and to finalize the drafting of this piece of legislation. The retreat gathered members of the core Working Group (MoSALG,

Government Legislation Secretariat and BEP), representatives of Sanitary, Veterinary and Plant

Protection Inspections), and officials of the National Public Policy Secretariat and Transparency

Serbia. The participants analyzed the comments and suggestions related to the Draft Law, prepared answers for stakeholders who provided input, and modified the Draft Law’s provisions

in accordance with the suggestions and inputs. Most of the comments were related to the

inspections coordination mechanism, role of the umbrella law versus sectoral legislation, and definitions of key concepts.

■ Subsequently BEP, the MoSALG, and the Government Secretariat for Legislation amended the Draft Law on Inspection Oversight to reflect the comments and input received during public and

expert consultations. To support the Draft Law submission, BEP developed a paper providing the

rationale for inspection reform and explaining the proposed features of the Draft Law, and the Statement of Harmonization with EU regulations for the Draft Law. In parallel, BEP experts also

completed the Regulatory Impact Assessment for the Draft Law that sets out its relationship with

the broader legislative framework. BEP and MoSALG also prepared answers and explanations to be provided to the various stakeholders that participated in public discussions, including an

overview of the latest changes made due to stakeholder input.

■ On November 14, BEP and the rest of the core Working Group tasked with drafting the Law on

Inspection Oversight met with Kori Udovički, Deputy Prime Minister and Minister of State

Administration and Local Government, to discuss inspection coordination. The core Working Group and Deputy Prime Minister Udovicki discussed the outstanding issues regarding inspection

coordination, particularly the scope and range of powers to be assigned to the future Coordination

Commission, guidelines it will adopt, its decision-making process, and technical and

administrative support to the Commission, as well as oversight of implementation of the Law on Inspection Oversight and the role of the Administrative Inspection. As a follow-up, BEP experts

revised the relevant provisions of the Draft Law and delivered it to the MoSALG.

■ On November 19, at the Foreign Investors Council’s presentation of its 2014 White Book, Ms.

Kori Udovički, Deputy Prime Minister and Minister of State Administration and Local

Government, confirmed that the Draft Law on Inspection Oversight would enter Parliamentary

https://www.linkedin.com/vsearch/p?title=Senior+International+Trade+Advisor&trk=prof-exp-title


procedure by the end of 2014. Ms Udovički explained that the Draft Law, drafts of key bylaws,

and implementation plan - developed jointly by BEP and government authorities and aligned with good regulatory practice – would be submitted as a single regulatory package. She also

underlined the importance of inspection coordination, and reiterated that the Government of

Serbia was determined to tackle the shadow economy, adding that the Draft Law incorporated the

tools to address both of these priorities.

■ On November 26, the Ministry of State Administration and Local Government (MoSALG) delivered the legislative package, consisting of the Draft Law on Inspection Oversight and

ancillary documents, to ministries and other public institutions for comments. In addition, the

MoSALG delivered the Draft Law and the associated Regulatory Impact Analysis (RIA) to the

Public Policy Secretariat for regulatory quality control, and provided the Draft Law and the Statement on Harmonization with EU regulations to the Serbian Office for European Integration,

which should assess whether the Draft Law complies with EU legislation.

■ BEP subsequently helped the MoSALG incorporate opinions of government institutions in the

Draft Law. BEP and the rest of the core Working Group analyzed the opinions of ministries and

other public institutions to align the draft Law with this feedback or provide arguments if the opinions submitted cannot be applied to the draft. The majority of opinions were positive, or

have, conversely, contained only comments focusing on technical law-drafting issues. The core

Working Group has accepted a number of opinions and incorporated them into the draft Law.

■ On December 23, the key stakeholders held the final round of consultations about features of the

Law on Inspection Oversight. This meeting was attended by the Deputy Prime Minister and Minister of State Administration and Local Self-Government Kori Udovički, and State Secretary

in the Ministry of State Administration and Local Government (MoSALG) Vidosava Džagić,

representatives of leading Serbian business associations, and USAID BEP staff serving on the Inspection Oversight Law Working Group. The focus of the discussions was coordination of

inspection oversight with aim of ensuring effective implementation of advanced inspection

standards and features envisaged in the Draft Law. This discussion revealed some of businesses’

concern and the business associations had an opportunity to better understand the content and effects of the Draft Law’s provisions. The participants agreed that applicability of these

regulations on all inspections, as envisaged in the Draft Law, was a prerequisite for creating a

systemic and sustainable framework for tackling the shadow economy. The attendees concluded that business associations should take an active role in further advocating the adoption of this

Law, drafting the requisite by-laws, and ensuring regular exchange of opinions with the regulator.

■ BEP is now in the second phase of harmonizing the Draft Law with the positions of the Ministry

of Finance (MoF), which believes the Law should not apply to the Tax Inspection. The original

draft was initially amended to reflect the first set of the MoF’s comments; however, the MoF then asked for more time to review the resulting provisions. Following this review the MoF reiterated

its request to have the Tax Inspection excluded from the application of the Law. These

disagreements are the reason why the Law is yet to be presented to the Government. The core Working Group and business associations believe that the Law must apply to all inspection bodies

without exception. The Ministry has met the Minister of Finance to discuss this issue; the

Minister will give his feedback and notify us of the official position of the MoF after the

Christmas holiday.

BEP also supported preparation for implementation of the Law on Inspection Oversight. BEP developed bylaws, e-inspections, and means to implement the Draft Law on Inspection Oversight.

BEP prepared the Draft Regulation on Risk Assessment in Inspection Oversight, Draft Decision on

the Inspection Coordination Commission and the Draft Rulebook on Inspection Report (Minutes).

BEP also worked on the Draft Rulebook governing inspector examinations, and this work continues. BEP also developed a paper on topics and issues that should be covered in inspector training,

including: basic concepts of the Law on Inspection Oversight; need to plan for inspection oversight,

discretionary powers of inspectors; and developing and upgrading inspectors’ “soft skills.” BEP's IT experts continued to work with Directorate for E-Government and inspectorates to develop the

processes for the new e-inspections system. BEP also met with the USAID Macedonia IDEAS team


to share relevant information and explore possibilities for joint activities in inspections reform

(USAID Macedonia IDEAS will soon begin providing support to the Macedonian Inspection Council, and the teams will continue to share experiences, lessons learned, and advice on how to achieve

effective inspections coordination).

In addition, BEP and Ministry of State Administration and Local Government (MoSALG) developed

an Action Plan to Implement Law on Inspection Oversight. BEP and the MoSALG developed an

Action Plan to ensure high-quality implementation of legal, procedural, and institutional reforms envisaged in the draft Law on Inspection Oversight. In developing the Action Plan, BEP and senior

MoSALG officials consulted the Republic Secretariat for Public Policies, the Directorate for E-

Government, and inspectorates. The Draft Action Plan includes a number of activities grouped under

five tasks: 1) Development and adoption of bylaws and other documents needed to implement the law, and public outreach on the new legislation; 2) Establishing a coordination mechanism and

building capacities of the Coordination Commission; 3) Establishing and maintaining the e-

Inspections system; 4) Establishing a system of continuous training and professional education of inspectors; and 5) Providing infrastructure and improving working conditions for inspection bodies.

The MoSALG will submit the Action Plan along with the Draft Law to the Government of Serbia and

the Serbian National Assembly for adoption.

BEP also organized a study tour to the State Inspectorate of Bosnia and Herzegovina (BiH) Republic of Srpska. BEP, in cooperation with the Ministry of State Administration and Local Government

(MoSALG) and the Directorate for e-Government, organized a study tour to the State Inspectorate of

the BiH Republic of Srpska. The study tour, entitled “E-Inspection Training Program for Effective Inspections,” took place in Banja Luka from December 21 to 23. The participants were the MoSALG

State Secretary, Head of the Directorate for e-Government, officials of the Ministry of Labor,

Employment, Veterans’ and Social Issues, and staff of the Administrative, Market, Labor, Construction and Sanitary Inspectorates. Through presentations, discussions and consultations with

the management and experts of the Republic of Srpska State Inspectorate, the participants had an

opportunity to gain first-hand experience with the legal and institutional framework for inspection

oversight in the Republic of Srpska. The training included a detailed presentation of the Inspection

Management System and its features and

functionalities. Participants also had an opportunity to learn about challenges the authorities faced while

developing the Inspection Management System and

the possible solutions to these problems, and the procedures and responsibilities involved in properly

establishing and maintaining such a system. As a

result, the participants gained insight and obtained

advice on how to set up Serbia’s complex e-

inspection system.

Under Objective 1, Task 2, "Remove or reduce quasi fiscal burdens to businesses," BEP and National Alliance for Local Economic Development (NALED) presented recommendations for

continuing the reform of para-fiscal charges. On October 8, BEP and NALED presented a report

entitled “Five Steps for Reforming Para-Fiscal Charges”, containing the key findings of a

comprehensive analysis of the reform of non-tax and para-fiscal fees and charges, and recommendations for its continuation and consistent implementation. In the course of 2011 and 2012

BEP analyzed 370 fees and charges, based on which the Ministry of Finance abolished 138. But

businesses still perceive para-fiscal fees and charges as a major obstacle to doing business. Thus USAID and NALED under a grant developed a set of recommendations for reforming para-fiscal

charges in five steps that include data, examples, provisions and proposals for regulatory and

implementing solutions. The proposed steps are: 1. eliminating double payments; 2. setting fees in proportion to the price of services provided; 3. eliminating any fees and charges not resulting from the

provision of services or goods; 4. redesigning the local government financing system to detach local

authorities’ income from para-fiscal charges and fees; and 5. modifying relevant regulations to

BEP Study Tour to Banja Luka


achieve predictability and transparency of

non-tax financial burdens. BEP and NALED pointed out that little has been

accomplished in the last two years in

dealing with para-fiscal fees and charges –

despite the fact that eliminating them would both help business competitiveness

and government budgeting – and

emphasized the lack of capacity at the Ministry of Finance to continue with this

important reform. The Registry of para-

fiscal charges will be submitted to the Ministry of Finance, and NALED will

regularly inform its members and partners on the progress in this field.

Under Objective 1, Task 3, "Streamline Construction Permitting," the Serbian Parliament enacted

the Law on Planning and Construction after months of intensive effort by BEP. The Law Amending the Law on Planning and Construction was adopted with 154 members of parliament voting in favor,

one against, and four abstentions, making it one of the rare pieces of legislation to receive support

from most opposition MPs. This outcome is the result of the Working Group that drafted the Law –which included BEP – engaging in diligent and impartial review of stakeholders and amendments

submitted by MPs. The Working Group proposed the adoption of all amendments that fit within the

concept of the reformed Law, regardless of who submitted them. BEP and NALED also worked with members of the Economic Caucus in the Parliament to propose additional amendments – all of which

were later adopted by the legislature. The enactment of the Law Amending the Law on Planning and

Construction received wide media coverage, and is widely regarded as a major opportunity for the

Serbian economy, especially the construction industry. Highlights of the new legislation include the shortening of permitting procedures, and introduction of One-Stop-Shops.

Development of this legislation was a lengthy process that started with BEP’s groundbreaking 2012

analysis of the state of construction permitting. The process was extremely challenging but also extremely inclusive, with stakeholders in the government, construction businesses, various

professions, and the wider business community and general public being consulted and having

repeated opportunities to have dialogue on the draft law. During the fourth quarter of 2014, the

following key events took place:

■ BEP organized two retreats to facilitate completion of the Draft Law on Planning and

Construction (LPC). The first one was held from 9-11 October in Vrsac and 15-17 October in

Novi Sad. Members of the Working Group tasked with amending the LPC made a decisive step towards completion of the final Draft to be submitted to the Government at a retreat organized by

BEP in Novi Sad. The Novi Sad meeting took as its starting point BEP’s overview of a number

of comments to the Draft made during the September public consultations, as well as of opinions of Government ministries and public agencies. As a result of the retreat, the Draft was nearly

finalized.

■ The Working Group then completed the Draft LPC and submitted the draft to Zorana Mihajlovic,

Minister and Deputy Prime Minister on Friday November 7.

■ The MCTI then initiated the second Inter-Ministerial Review of Amendments to the LPC. Acting

on BEP ’s advice, Deputy Prime Minister and Minister of Construction, Transportation and

Infrastructure Mihajlovic also signed a decision establishing the Working Group tasked with drafting the bylaw to govern the “one-stop-shop” procedures, which is crucial for expediting

permitting and unlocking the potential of Serbia’s construction sector. BEP will serve on this

working group.

■ The GoS approved the LPC at the Government’s session held on November 27, and it then

officially entered the parliamentary adoption procedure.

■ On December 4, the National Assembly held the first discussion on the Law on Planning and


Construction. BEP , along with other members of the Working Group established at the Ministry

of Construction, Transport and Infrastructure (MCTI), processed 188 amendments submitted by the MPs and prepared them for the Government of Serbia’s consideration. The Working Group

proposed to the GoS the acceptance of some 40 MPs’ amendments.

■ On December 2, BEP and NALED presented the Draft Law on Planning and Construction to

members of the National Assembly’s Economy Caucus. As a result of this presentation,

Economy Caucus members decided to contact Deputy Prime Minister Mihajlovic and ask for more specific information about the Government’s plans, including the timeline for resolving the

conversion issue. They also agreed to send a joint letter to all ministries in charge of sectoral laws

in order to start the harmonization process as soon as possible.

■ As a result of BEP’s efforts, on December 29, the National Assembly passed the Energy Law and

one amendment to the recently enacted Law on Planning and Construction. This basically saves the construction permitting reforms: the one stop shop concept remains intact and implementable,

and the land development charge is eliminated. This is great news and a testament to USAID’s

ability to quickly react to problems and to USAID’s influence in the reform process. After these

reforms were threatened by amendments to the Law on Planning and Construction (LPC) and the Energy Law, BEP raised these issues privately with the GoS and publicly and got the GoS and

National Assembly to react. BEP’s actions included a press release that expressed concerns that

adoption of the Energy Law as proposed by the Ministry of Mining and Energy would undo key reforms in the recently enacted Law on Planning and Construction, e.g. increase the number of

procedures and the number of days needed to get the usage permit. This press release drew

significant media attention and caught the attention of Minister of Mining and Energy Aleksandar Antic. As a result, and with the help of BEP and NALED, the MoE changed the Draft Law to

alleviate the problems BEP flagged in the press release. The Energy Law is now in line with the

Law on Planning and Construction. Previously, at the last minute the LPC was amended in the

National Assembly to reintroduce the land development charge, which had been eliminated in the draft approved by the GoS. With the cooperation of the MoC, BEP brought this problem to the

attention of the media through a press release. After our press release the GoS agreed to amend

the Law and remove the land development fee.

Meanwhile, BEP is helping the GoS and others prepare for implementation. BEP is already working with partners in the government, donor community, and NGOs to facilitate implementation of

legislative reform. BEP is currently focused on developing the requisite bylaws, carrying out

preparatory activities ahead of the introduction of e-Permitting, and coordinating activities with other donor organizations. The key immediate goal is to complete all bylaws needed for the One-Stop-

Shop system to become operational in March 2015.

BEP is coordinating the drafting of bylaws that will govern the categorization and content of project designs, and is contributing to the development of the One-Stop-Shop bylaw. These are the bylaws

most critically needed for the full implementation of the reformed permitting system.

BEP was appointed Lead of the GoS Working Group to Draft Bylaws Accompanying Law on Planning and Construction (LPC). This appointment by Deputy Prime Minister and Minister of

Construction, Transportation and Infrastructure Mihajlovic recognized the role that BEP has had in

reforming construction permitting. BEP leads the Working Group comprised of State Secretary

Damnjanovic and representatives of the Chamber of Engineers of Serbia, Faculty of Architecture, NALED, City of Belgrade, National Fire Protection Association, Association of Consulting Engineers

of Serbia, and the private sector. The bylaws to be drafted by the BEP-led group will govern the

categorization of structures and scope of project designs. This enables the introduction of risk-based permitting, a key recommendation in BEP’s concept paper. In addition, BEP will serve on other

working groups tasked with drafting bylaws for the LPC, and will help the Ministry finalize all

ancillary regulations, including those that pertain to the One Stop Shop procedure.

BEP finished the drafts of two bylaws needed to implement the newly-adopted Law on Planning and Construction. This is the result of BEP’s engagement in recent weeks with the construction industry,

central and local government officials, and experts. BEP has also been making progress with a


comprehensive analysis of options for an electronic construction permitting system; this document

will define the functionalities and implementation models for e-Permits. BEP has been working with the Ministry of Construction, Transportation and Infrastructure and NALED to revise the draft Action

Plan to Implement the Consolidated Procedure (i.e. the One-Stop-Shop concept) that the Government

of Serbia will adopt. The Action Plan will allow the formation of the inter-ministerial coordination

body to oversee the implementation of this reform and will serve as a platform for the Government of Serbia to coordinate donor assistance in this area.

BEP and the MCTI are also working to reform the property registration system. MCTI decided to

amend the Law on State Survey and Cadaster – a decision that was influenced by earlier BEP analyses (which cited the Cadaster Office as a source of major delay in construction permitting) and a recent e-

Permitting study tour to Macedonia. In Macedonia, representatives of MCTI, BEP, NALED, and GIZ

had an opportunity to learn about Macedonia's successful property registration reform. The goal of the amendments to the Cadaster Law is to cut deadlines and simplify administrative actions, since the

Cadaster has a pivotal role both before construction permitting begins and at its very end, when the

completed building must be registered in the real estate inventory. BEP is focusing only on

harmonizing provisions of the Law on State Survey and Cadaster with the One-Stop-Shop concept as defined in the Draft Law on Planning and Construction. Changes to the Law on State Survey and

Cadaster also have the potential to significantly improve the processes of registering mortgages,

which can facilitate lending to small and medium businesses.

In addition, BEP, NALED and the GIZ Open Regional Fund are working together to help the Ministry

of Construction, Transport and Infrastructure (MoCTI) develop an e-permitting system that will

enable an efficient one-stop shop system for construction permits. From September 10th to September 12th, 13 participants, including USAID BEP staff, MoCTI, City of Belgrade, Municipality of Sremska

Mitrovica, Business Registries Agency, NALED, and Standing Conference of Towns and

Municipalities visited Skopje to gain first-hand experience of how the Macedonian e-permitting

system functions. The study tour was organized by the GIZ Open Regional Fund. The Macedonian presentation convinced the attendees that Serbia would benefit from introducing an e-permitting

system.

Under Objective 1, Task 4, "Reduce the Employing Workers Burden," BEP and Ministry of Labor, Employment, Veterans’ and Social Issues (MoLEVSI) provided seminars to assist proper

implementation of the Labor Law. BEP and MoLEVSI organized 12 events throughout Serbia

gathering over 1,600 representatives of businesses, trade unions, inspections and other interested

parties. These workshops allowed the participants to learn about the most important changes contained in the Labor Law enacted in July 2014. Two major events in Belgrade and Novi Sad were

organized by BEP, Paragraf Publishers and the MLEVSI. All other events were organized by BEP,

MLEVSI, and Regional Chambers of Commerce. The Ministry’s trainers presented the Law’s innovations to help participants properly interpret and implement the amendments. Businesses were

mostly interested in provisions regulating years of service, fixed-term contracts, wage calculations,

reallocation of working hours, and reasons for dismissal. BEP and the MLEVSI will help the Labor Inspectorate finalize its working methodology and share it with all of its departments in order to

standardize inspection oversight procedures to harmonize practice. The workshops included:

■ On October 1, BEP and MoLEVSI presented the July amendments to the Labor Law to an

audience of businesspeople and other interested parties at the Zrenjanin Regional Chamber of Commerce. This “Educational Caravan” gathered around 40 people interested in amendments to

this crucial piece of legislation for the Serbian labor market and business environment. Jelena

Starcevic and Gordana Budimovic from the MLEVSI presented the amendments and helped participants interpret the statutory provisions accurately. The event received coverage in the local

media. The next event will be held on October 7, in Sabac.

■ On October 14th and 16th, BEP and MLEVSI presented key features of the Labor Law

Amendments to over 120 participants in seminars held at the Leskovac and Subotica Regional

Chambers of Commerce. These events were attended by businesspeople, trade union representatives, judicial officers, and other interested parties. The MLEVSI team presented the

main changes as they relate to salary and compensation calculation, as well as modifications to


collective bargaining procedures. They reminded businesses of the deadline for entering into new

collective bargaining agreements and advised them to start negotiations in due time. As at previous events, years of service and fixed-term contract provisions caused the most confusion

and were the focus of most questions, so the presenters thoroughly explained all details related to

those issues. The events were reported in local and regional media.

■ On October 21st and 23rd at the Sremska Mitrovica and Zajecar Regional Chambers of

Commerce, BEP and MLEVSI presented the novelties and the most important changes in the Labor Law, and help them interpreting provisions accurately in order to enable proper and full

implementation of the Law. Again, most questions were about years of service calculation,

deadlines for harmonizing employers’ bylaws and wage calculation. Both events gathered around

80 participants.

■ On December 2, BEP and MLEVSI held a conference at the Palace of Serbia to present the process and results of Labor Law reform. The event was attended by representatives of the

MLEVSI, Ministry of Economy, and

Directorate for Occupational Health and

Safety, ILO, Labor Inspection, representative Trade Unions, businesses and

other interested parties. Minister Vulin

stated that the Labor Law was one of the key factors that contributed to the decline in

the unemployment rate from around 20 to

17.6 percent. However, the Minister also stressed that the Law will be further

improved and the government would

prepare several new laws designed to

improve the business environment in Serbia: legislation to govern social

entrepreneurship, social dialogue, and

temporary employment agencies. BEP

Chief of Party Joe Lowther explained that BEP’s main focus was to ensure broad stakeholder consultations and transparent public dialogue in structuring and carrying out reforms. He

underscored the results of this approach through a presentation of stakeholders’ joint activities

that greatly affected labor law reform. He also pointed out the process BEP and MLEVSI carried out to ensure successful implementation of the reforms: in the month following the adoption of

amendments to the Labor Law, BEP and MLEVSI held 12 presentations in 11 Serbian towns,

disseminating information to more than 1,600 participants about changes to the Labor Law and

appropriate implementation of the new regulations.

BEP, MLEVSI, and the Labor Inspectorate also prepared Labor Inspectors to implement the amended Labor Law. As part of this activity, on November 7, BEP and MLEVSI held consultations with over

40 labor inspectors on labor inspection methodology and the Draft Inspection Oversight Law. The

participants included the Director and Assistant Director of the Labor Inspectorate, as well as senior

advisors and heads of regional units of the Labor Inspectorate. Senior advisors in the Labor Inspectorate presented the inspections methodology, which aims to unify and standardize labor

inspectors’ practice throughout the country. The participants discussed and commented on the

proposed solutions, and later provided some written comments. The Labor Inspectorate Working Group will use this feedback to finalize the methodology and will then distribute it to all labor

inspectors. In addition, BEP experts presented and discussed the key features of the Draft Law on

Inspection Oversight. The State Secretary with the Ministry of State Administration and Local Government attended this part of the event and joined the discussion. Next week the Draft Law on

Inspection Oversight will be submitted to ministries and other GoS institutions for official comment.

The Government’s Rules of Procedure envisage twenty working days for these institutions to provide

their comments.

Under Objective 2, Task 1, "Improve Public Private Dialogue," BEP assisted with several public-

Conference on Implementation of Labor Law


private dialogue events described in detail throughout this Report. They include:

Labor Law Caravan RPK Zrenjanin, October 1, 2014

Labor Law Caravan RPK Valjevo, October 7, 2014

Conference on Para-Fiscal Fees and Charges, October 08, 2014

Labor Law Caravan RPK Leskovac, October 14, 2014

Labor Law Caravan RPK Subotica, October 16, 2014

Labor Law Caravan RPK Sremska Mitrovica, October 21, 2014

Labor Law Caravan RPK Zajecar, October 23, 2014

WG on bylaws for classification and technical doc. October 28, 2014

WG on bylaws for classification and technical doc. November 06, 2014



International Conference “Strengthening SMEs through EU Guarantee Schemes and the COSME Program” organized jointly by Vojvodina Guarantee Fund and European Business

Fund, November 20, 2014

Business Survey 2014, November 21, 2014


Labor Law Final Event, December 02, 2014

WG on bylaws for classification and technical doc. December 11, 2014

Component 2

Under Objective 1, Task 1, "Capacity building assistance to the Fiscal Council and Improvements to fiscal responsibility," BEP met with the Fiscal Council on December 22 to discuss

program budgeting. BEP’s Chief of Party presented BEPs view and attitude to the Fiscal Council's

Analysis of the Budget Process and its Weaknesses. BEP has several objections to both the content of the Analysis and the lack of dialogue with BEP and the MoF on the Analysis before it was published.

BEP agrees with some of the Fiscal Council’s recommendations especially in the area of the MoF

Budget Department’s weak capacity.

BEP and the Fiscal Council also discussed the DSGE model that BEP provided to the MoF. The Fiscal Council agreed to a presentation of the model during the last week of January. BEP and the

Fiscal Council also discussed Policy Planning Secretariat capacity building: Pavle Petrovic suggested

more focus on sectors studies (education, agro) than on macro-fiscal analysis. Nikola Altiparmarkov suggested strengthening the connection between the MoF Budget Department and the strategic

planning process.

Objective 1, Task 2, "Improvements to MoF Fiscal Analysis and Strategy." BELOX and the MoF Macrofiscal Department (MFD) team improved the QUEST_Serbia model with the new

statistical data for the Y14Q3. It has been agreed with BELOX and MFD team to present and discuss

the model and its outputs with the FC members in second part of January. Other assistance is on hold

due to insufficient capacity of the MFD staff to participate in development of BRIDGE model, and stronger focus of the department on utilization of DSGE model.

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


Coordination and Performance Management," BEP and Ministry of Finance (MoF) held program

budgeting training for Members of Parliament. On December 4, BEP and the MoF presented the 2015 program budget structure model during a session of the Parliamentary Committee on Finance,

State Budget and Control of Public Spending. The over 30 MPs present learned about the new budget

concept prior to 2015 Budget Law entering parliamentary procedure. Committee Chairman Veroljub

Arsic informed MPs that all budget beneficiaries were obliged to switch to program budgeting by 2015. Mr. Arsic said that program budgeting would introduce a new funds allocation model, allow

program implementation, establish more control over budgetary funds, and ensure greater

transparency of public spending. Assistant Minister of Finance Mirjana Cojbasic said that program budgeting was an EU standard, adding that the MoF was planning to mandate quarterly reporting and

monitoring. Majda Sedej, BEP expert, explained that program budgeting provides the tools for more

efficient and effective use of budgetary funds, adding that its introduction requires understanding and support from all levels of government. She also spoke in greater detail about the programs, activities,

and projects already underway, as well as about their goals and indicators.

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

Improved Transparency and Program Budgeting," the Government of Serbia (GoS) implemented program budgeting in the 2015 budget after comprehensive and successful assistance from BEP. On

December 25, National Assembly adopted the 2015 Budget Bill, which introduces the program

budgeting model for all direct budget beneficiaries. Minister of Finance Dusan Vujovic said this Bill for the first time provides for full transparency of all transactions.

With assistance provided by the BEP, in February 2014 the Ministry of Finance (MoF) issued a

Program Budget Methodology that has provided a set of guidelines to budget beneficiaries for establishing financial plans, program activities, and projects. Over the last year, BEP and MoF have

conducted comprehensive training of civil servants on program budget concepts and performance

indicators. This training covered all 140 direct budget beneficiaries at central government level and

another 34 institutions of the Autonomous Province of Vojvodina. Furthermore, the training program allowed 600 civil servants to be directly acquainted with the features, importance, and scope of

program budgeting.

The introduction of program budget is an important milestone for improved policy planning, prioritization, and coordination of the Government, as it provides a uniformed framework for

assessing the costs of policy initiatives, and their relevance to the strategic goals of the Government.

BEP also participated in NALED’s Training on Strengthening Good Governance at Local Level.

Majda Sedej, BEP’s Economic and Fiscal Management Expert, provided training on preparing and introducing program budgeting at the event held on October 29 in Pančevo. The training was the first

in a series of training events to be organized by NALED as part of its Strengthening Good

Governance at the Local Level project. Ms. Sedej presented the reasons for the introduction of program budgeting in local governments and its importance for easier compliance with EU principles

and greater budget transparency. This presentation was followed by hands-on training on how to

apply the program budgeting model in Pancevo’s 2015 budget. BEP participate in a second NALED Training on November 14 in Nis. Majda Sedej again presented the main reasons for the introduction

of program budgeting at the local government level, as well as its importance in facilitating

compliance with EU principles and increasing budget transparency. The presentation was followed by

hands-on training on how to apply the program budgeting model to the City of Nis 2015 budget. This project is supported by the Finnish embassy and implemented by NALED, and aims to improve the

process of developing and implementing policies at the local level.

BEP also finalized training for budget beneficiaries on the new Budget Preparation Software (BPS). In the initial phase of training, 15 analysts with the Ministry of Finance’s Budget Department were

successfully trained in using the new BPS prepared by USAID. The analysts will now be able to use

BPS to collect and analyze budget beneficiaries’ financial plan proposals and to prepare the Budget Proposal for consideration by the Government and Parliament. Additionally, three analysts gained

competences to technically administer the BPS. In the second phase of training, 180 participants from

line ministries and other budget beneficiaries were trained to use the software in preparing 2015


AP Vojovdina on BEP assistance

"Beneficiaries’ program structures were improved through multiple revisions, with input and advice from USAID BEP team members in alignment with beneficiaries’ needs. The final versions are sufficiently transparent and comprehensive. The team members devoted particular effort to defining measurable and logical indicators that can be utilised to measure the achievement of objectives; verifiability and linkages between programme structures and pre-existing plans and strategy papers served as key criteria for selecting these indicators. On advice from the Gender Equality Authority, the team’s remit was extended to cover gender-sensitive indicators, which were defined wherever possible, or wherever their introduction was seen as useful for allowing future analysis of the budget from a gender perspective."

financial plan proposals. BEP provided technical assistance to the Ministry of Finance in upgrading

the BPS’s functionalities in line with the Program Budget Methodology. The upgraded software will significantly speed up the process of data collection, reduce errors due to manual data entry and

processing of the large amounts of information, and facilitate data analysis and decision-making on

budgetary allocations.

In addition to the success of BEP’s program budgeting efforts at the GoS level, we also had success at the Autonomous Province of Vojvodina (APV). On December 23, the APV Assembly adopted the

2015 APV budget, in a new format that complies with the program budget model. The head of the

APV Government, Bojan Pajtic, remarked that the 2015 budget offered the highest degree of transparency and was focused on development measures. With assistance from the BEP, in June 2014

the APV Finance Secretariat commenced a series of workshops with all 34 APV budget beneficiaries

focused on implementing this budgeting reform that allows the development of financial plans in the

form of programs, program activities, and projects. BEP and the Finance Secretariat conducted a

comprehensive training program for 130 APV civil servants on program budget concepts and

utilization of performance indicators. Implementation of program budgeting will allow the Serbian

Government to achieve some of its most important objectives, such as maintaining fiscal discipline, effectively allocating public resources, and efficiently delivering pubic services.

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

Management into National Strategic Planning," BEP helped the Public Policy Secretariat (PPS) align the GoS Work Plan with the GoS Budget. On October 3, BEP and the PPS team agreed to work

together to link the GoS Work Plan to the GoS budget. The PPS had finished the initial phase of

drafting the Government of Serbia’s 2015 Work Plan, which will become a core document for

coordination and execution of strategic public policies. Since the next step in its development is to link the Work Plan to the state budget, BEP agreed to provide direct assistance in connecting budget

beneficiaries’ program budgets to the goals, measures and activities set under the Work Plan. This

will ensure that the resulting document clearly shows the Government’s main priorities for the next year, the measures that can be implemented, and the budget funds that will be allocated for their

achievement.

Subsequently, BEP experts worked with the PPS to revise the Work Plan, and presented it to the line ministries as part of the latest round of program budgeting workshops. On November 12, BEP

representatives held an official presentation of program budgeting to the PPS team engaged in

preparing the Government of Serbia’s 2015 Work Plan (GoSWP). The presentation included all

details of program budgeting methodology, as well as portions of program budget structures for each line ministry. The presentation allowed the PPS to gain clear insight into how goals, measures and

activities established under the GoSWP relate to the programs, program activities and projects

established in the budget structure. During next week the BEP team will provide additional training for the analytical unit of the PPS, where the main focus will be on public sector performance

measurement methods. By providing assistance to the PPS on how to connect the new budget model

with public policy priorities and strategies, BEP will help the GoS achieve its social and economic goals

On December 23, USAID BEP participated in the introductory meeting of the Center of Government

Working Group, which is made up of representatives of the Ministry of Finance, Serbian European

Integration Office, Government General Secretariat, Legislation Secretariat, E-Government


Directorate, and Public Policy Secretariat (PPS). The Working Group agreed to develop new integral

methodology for planning and budgeting (including IPA programing); formalization of the content of all relevant documents; and integration of medium-term institutional plans with program budget

structures. To ensure the Working Group can reach optimal solutions as quickly as possible, BEP will

help organize a three-day retreat for the Working Group’s next meeting in early February.

Under Objective 2 Task 1 "Improving conditions for public investment in and trading of government debt," there were no activities due to insufficient capacity at the Public Debt

Administration to absorb the assistance.

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

Capacity," there were no activities due to insufficient capacity at the Public Debt Administration to

absorb the assistance.

Component 3

BEP participated in some general activities that will help achieve BEP’s objectives and will improve access to finance in Serbia:

On December 10, the BEP team met with MoF staff, led by Assistant Minister Zlatko Milikić, to

review the status of cooperation between BEP and the MoF. Both sides approved the final concept of the Property Valuation Law and agreed on the timetable for future activities. It was decided that the

final draft of the Law should be completed by the end of December. The following meeting of the

official Working Group will be held by the end of January 2015, while the Law is planned to be

adopted in Q1 2015. Regarding non-deposit-taking, non-banking financial institutions (NBFIs), the parties agreed to schedule a joint meeting between the National Bank of Serbia (NBS), Ministry of

Finance (MoF) and international donors (USAID and EBRD) that will aim get the NBS’ support for

the establishment of a regulatory framework to govern NBFIs. Finally, the parties agreed that BEP team was to provide further technical assistance in the process of public consultations of the Draft

Amendments to the Mortgage Law.

BEP developed two out of four of the best Regulatory Impact Assessments. The Office of Regulatory

Reform and Impact Assessment (RSJP) has begun publishing impact assessment reports it believes constitute current best practice. The RSJP selected four reports filed in 2013, of which two –

regulatory impact assessments (RIAs) for the Factoring Law and the Commodity Exchange Law –

were drafted by BEP. This accolade recognizes BEP’s determination to meet policy goals at minimum cost so as to benefit small and medium-sized businesses and avoid any unnecessary regulatory

burdens. Impact assessments contribute to the quality of policy-making by ensuring that legislation is

prepared on the basis of transparent and comprehensive evidence, and that it adds value for all stakeholders. BEP will continue to assess the regulatory impact of proposed regulations at an early

stage of the policy cycle, increasing both technical skill in drafting RIAs and awareness of the

significance of RIAs as a key analytical instrument that ensures the quality and efficiency of any

legislation.

On November 25, 2014, BEP participated in an event organized for owners of successful Serbian

small and medium-sized businesses by TPA Horwath, a leading tax advisory and auditing firm

operating in Central and South Eastern Europe. The main goal of the event was to raise awareness among business owners of the need and potential for strategic partnerships, and the necessity of

planning these activities in advance. Experienced experts from the industry (including TPA Horwath

Group, Serbian Private Equity Association and Bisnode) covered the latest M&A trends and provided practical insights into these transactions. Dragana Stanojević, BEP Deputy Chief of Party, presented a

summary of the issues related to access to finance and the regulatory environment for doing business

in Serbia. Participants agreed that efforts to overcome the existing financing gap should continue, in

particular through allowing the establishment of more non-bank financial institutions in Serbia.

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

Commission," the National Assembly adopted Amendments to Investment Funds Law on October

23. BEP provided comments and revised provisions for the draft law, and prepared a transposition


table that shows the level of compliance with relevant EU Directives. The amendments are another

step in aligning national legislation with the EU law (UCITS Directive, 2009/65/EC) in accordance with the Serbia 2014 Progress Report and the National Action Plan for Fulfillment of EC

Recommendations.

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

Requirements and Best International Practice,” BEP worked with the grantee to finalize the Document Management and Public Register System and get it ready for final roll out. The system

underwent final polishing. BEP and the grantee started training of SC staff for using the system.

Once the training is finalized and user manuals have been completed the Securities Commission shall overtake the application and start with its usage.

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

Exchange After receiving the official opinions from different ministries regarding draft Commodity Exchange Law, MoTTT finalized procedure and submitted the draft to the GoS. On November 21, the

GoS adopted the draft and pass it to the Parliament for adoption. Unfortunately, for unclear reasons,

the MoTTT pulled the draft from the parliamentary procedure on December 26. BEP has requested a

meeting with Minister Ljajic and is expecting an answer. Since BEP provided significant local and international expertise, and was an active member of the working group that drafted the law we are

quite concerned about this turn of events.

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

Government Debt," there were no activities due to insufficient capacity at the Public Debt

Administration to absorb the assistance. During 2015, BEP plans to continue assistance to implement

new Public Debt Authority IT Debt Management System by helping with technical and functional specifications for customization of the system. When finalized the debt management system will

enable: (i) Timely flow of information within the PDA and towards external parties; and (ii) a full

analysis of the aggregate debt portfolio, for risk management purposes, and the development of the

securities market aimed at ensuring transparency and predictability. The system should also meet the needs of internal and external auditors for carrying out audits in line with international standards.

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

Finance Related Laws," BEP has been promoting legislation that would allow non-deposit taking, non-bank financial institutions (NBFIs) to provide such finance in Serbia (currently there is no

legislation that would allow them to enter the market). During the quarter, BEP continued to

publicize its Report on Market Impact Assessment of Introduction of NDMFIs in Serbia, which shows

that hundreds of millions of Euros would be mobilized as microfinance if legislation would be enacted to enable microfinance in Serbia. BEP's annual Surveys of Businesses from 2011 to 2014 showed that

SMEs in Serbia have little opportunity to obtain finance and the situation is getting worse. According

to World Economic Forum Global Competitiveness Rankings 2014-2015, Serbia ranks 121st of 144 countries in ease of access to finance, while BEP’s Business Survey shows that 62% of Serbian

businesses do not borrow.

On October 2, the Association of Leasing Companies of Serbia (ALCS) organized its annual Leasing Conference in cooperation with the Serbian Chamber of Commerce. BEP helped the ALCS develop

the messages that it wanted the media and participants to take away from the conference, particularly

the need for some key regulatory and tax reforms. In his opening address, Zlatko Milikic, Assistant

Minister at the Ministry of Finance (MoF), said that the MoF supported all initiatives to improve leasing regulations so that leasing can be used more, especially by SMEs. Mr. Milikic pointed out that

the MoF was working on improving access to other forms of finance as well, and noted that the

Ministry was collaborating with BEP and the National Bank of Serbia (NBS) to introduce a regulatory framework for non-banking, non-deposit-taking financial institutions. Emiliano Steinfl, ALCS

President, summarized the regulatory changes needed to improve leasing in Serbia. Representatives of

the Austrian, Croatian, and Slovenian leasing industry gave presentations on the leasing markets and regulatory frameworks in their countries. BEP and ALCS will continue to push MoF to make further

regulatory and tax reforms to enable leasing and bring the legal framework in line with Austria,

Croatia, Slovenia, and other markets.


Under Objective 4, Task 2, "Assistance to the MoE Implementation of "White Paper"

recommendations on Access to Finance," BEP continued to support the Ministry of Economy in SMEs Development Strategy Implementation. The Ministry of Economy held a public presentation

of the SMEs Strategy and Action Plan on December 22. Both documents were developed with BEP

support, and the access to finance pillar is largely based on BEP’s Access to Finance White Paper.

BEP agreed with the Ministry of Economy to assist implementation of some aspects of the SMEs Action Plan for 2015, in particular the regulatory and access to finance activities, and the work of the

SMEs Council. The SMEs Council should coordinate, lead and monitor the implementation. The

Strategy should be adopted by the end of the year, while the SMEs Council will be established in the first quarter of 2015.

BEP held its second roundtable with the banking sector. The second roundtable with the banking

sector under the grant “SME Growth Opportunities & How Policies and Banks Miss Them” implemented by CEVES, was held on October 7th at the National Bank of Serbia. The purpose of

this gathering was to present the key findings of the CEVES study to bank executives. Kori Udovicki,

Deputy Prime Minister and Minister of State Administration and Local Government, and Joe

Lowther, BEP CoP, opened the event, underlining that the findings of the research indicated that discussing different business models among Serbian banks, and expanding lending focus to smaller

companies, could be beneficial for both businesses and banks. Twenty high-level bank managers from

12 banks attended the presentation and discussion. The bankers agreed that the SME sector is underfinanced, but also pointed out the lack of demand for credit, regardless of the purposes and

conditions of loans offered. They also agreed that banks lack quality information about SMEs: these

firms are treated as high-risk clients due to other factors that define the environment for doing business, such as enforcement, NBS provisioning, and the level of non-performing loans. One of the

topics raised by bankers was the necessity of redesigning state aid programs and creating guarantee

schemes that would enable risk mitigation. The bankers noted that state aid is at present not efficient

and does not contribute to economic growth. BEP will follow up on this roundtable by defining the next steps in supporting the banking sector and potential borrowers to improve access to finance by

SMEs.

Under Objective 4, Task 3, "Assistance to improve state aid efficiency, monitoring and

transparency," BEP agreed with Minister of Economy Sertic to consider assistance to the Ministry’s

planned efforts to improve state aid, particularly in the area of private sector finance. BEP also agreed

with the World Bank to jointly coordinate assistance to improve the state aid. World Bank has reached

an initial agreement with the Ministry of State Administration and Local Government (MoSALG) and the MoE to analyze state aid, propose re-design of existing substantial and institutional framework

and ensure more efficient use of public funds earmarked for incentivizing growth. The WB is doing a

brief organizational diagnostic of the state-aid related institutions, as a part of their on-going “rightsizing” project aimed at helping the MoSALG reform the public administration in Serbia. The

results of this diagnostic will be available end of February. USAID BEP and the World Bank agreed

to have joint meetings with both ministries involved in state aid reform, in order to timely plan and effectively distribute donor’s assistance and resources needed for analyzing and re-designing the state

aid programs, products, procedures and institutions. The first joint meeting is scheduled for January

15.

On November 20, BEP spoke at the conference entitled “Strengthening SMEs through EU guarantee schemes and the COSME program”, organized jointly by Vojvodina Guarantee Fund and European

Business Fund. The conference, which drew around 150 participants, was aimed at acquainting the

general public with support instruments available to small and medium-sized businesses in EU member states. SMEs employ two-thirds of the EU’s private-sector workforce, and SMEs account for

about 60 percent of EU members’ GDP. The participants at the conference shared experiences and

roles of EU member states in strengthening the SME sector through micro-lending and guarantee schemes, and introduced the 2014-2020 COSME program, which is designed to enhance SME

competitiveness. Sandra Rodic, BEP ’s Financial Markets Expert, explained the current situation in

SME financing in Serbia and the need improve it by establishing a regulatory framework for non-

deposit-taking micro-financial institutions.


Under Objective 4, Task 4, "Assistance to strengthen professional services supporting access to

finance," BEP led the Ministry of Finance (MoF) Property Valuation Reform Working Group (Working Group) to develop the Property Valuation Law. On November 5, BEP team met with the

Ministry of Finance officials to review the first Draft Property Valuation Law, in particular the

institutional framework envisioned under this piece of legislation. The conclusions of the meeting

were incorporated into the second Draft, which was then disbursed to the other members of the Working Group tasked with developing the statutory framework for property valuation for another

round of reviewing.

On November 13 and 14, BEP participated in second meeting of the Working Group. The BEP team prepared two drafts to be discussed at the meeting: the draft National Standards for Property

Valuation, and the draft Property Valuation Law. The Working Group discussed the main features of

both documents, particularly provisions of the draft Law that govern oversight and disciplinary proceedings. BEP held a series of meetings and consultations with the Working Group Members and

other stakeholders (e.g. representatives of two national associations, academia, practitioners,

representatives of the MoF) in order to finalize features of the best international practice applicable to

local market (mainly creating rules of order for a new oversight committee, helping to define new certification and continuing education standards, harmonization of standards with EU directives). BEP

consultant, Mr. Chris Grzesik, who is appointed Chairman of The European Group of Valuers’

Associations (TEGoVA), managed the meetings from the professional side, providing valuable inputs in line with the latest EU practice and regulation (primarily Mortgage Credit Directive) that will set

new standards for oversight and quality assurance of the valuation profession.

On December 10, BEP held a final meeting with the MoF to approve the final concept of the Property Valuation Law and agree on the timetable for future activities. It was decided that the final draft of the

Law should be completed by the end of December, the Working Group will have a follow-up meeting

by the end of January 2015, and the Law should be adopted in Q1 2015.

On November 19, BEP and the Academy for Banking and Finance (ABF), in cooperation with the Serbian Chamber of Commerce (SCC), introduced the project entitled “Role of Good Accountant in

Access to Finance for SMEs” to more than 25 owners of small and medium-sized enterprises (SMEs).

Besides tailor-made interactive training, the outputs of this project include publicly available distance learning video training sessions and a manual. The manual contains explanations, case studies, as well

as short videos that illustrate, additionally explain, and enhance lessons on how a good accountant

adds value to a firm and improves its access to finance. These activities have two goals: 1) to raise

SMEs awareness of how to distinguish between professional and reliable accountants and those whose low standards of accounting practice endanger SMEs’ credibility with potential lenders; and 2) to

increase understanding by SMEs of the role of the accountant as business advisor in keeping

trustworthy financial records and coaching clients on how to become creditworthy. The manual and video training will be distributed online through the websites of BEP’s grantee ABF, Serbian

Chamber of Commerce and regional chambers of commerce, Serbian Employers’ Association,

regional development agencies, business associations, Policy Cafe, and other business portals to be accessible to all interested Serbian businesses.

Under Objective 4, Task 5, "Strengthen the capacity of business associations to work on

improving access to finance," BEP is working with the Serbian Chamber of Commerce on a new

internet portal designed to help SMEs: poslovanje.rs. As part of its activities to help spread information on available finance for small and medium-sized enterprises (SMEs), USAID BEP began

development of an interactive business web portal, poslovanje.rs, which will be hosted by the Serbian

Chamber of Commerce. The portal is expected to launch in early January. The portal will include module for Access to Finance (with content provided by USAID BEP), and B2B offer/demand

module, European Entrepreneurship Network module, technical legislation module, business info

service, etc. (content developed by the Chamber). The Chamber will be responsible for updating the information in the portal. The portal will be especially useful for SMEs as it will provide information

in various areas that are necessary for doing business.

On December 16, in cooperation with the USAID Sustainable Local Development Project, BEP


presented the status of business enabling reforms in Serbia to staff of local economic development

offices. Findings of BEP’s Business Survey show 92% of all businesses sell their products and services in Serbia, with most of them doing business only in their hometowns. This shows local

governments need to pursue reforms that will maximize investment, growth, and job creation. The

survey has found that borrowing by businesses is still on the decline and that most firms do not use

external financing: as many as 64% of all companies reported not having used outside finance (up from 31% in 2011). Since access to finance among farmers and agricultural SMEs is among the

poorest of any industry in Serbia, BEP emphasized the role of local economic development offices in

improving access to finance for this sector. Representatives of local economic development offices are invited to discuss possible additional modes of cooperation with municipalities, as well as with BEP,

with the aim of improving access to finance.

Under Objective 4, Task 6, "Strengthen In and Out of Court Credit Enforcement," on October 24, USAID BEP organized an event for key stakeholders aimed at ensuring better recovery of

delinquent loans. Banks' difficulty in enforcing loans is a major factor in the low availability and high

costs of lending. The Chamber of Professional Enforcement Officers and Association of Serbian

Banks participated in the event: more than 20 senior bankers from workout and collection departments of leading domestic banks and six professional enforcement officers (PEOs) with hands-

on experience attended. The participants discussed positive experiences in cooperation. A statement

made by one of the bankers best illustrates their impressions: “I wouldn’t reach my targets this year if there were no PEOs.” BEP underlined that both professions should focus on joint activities to ensure

synergy in tackling the large number of NPLs (accounting for EUR 3 billion according to NBS data).

Despite the positive experiences, banks are still underusing PEOs. Banks and PEOs agreed on several initial steps to increase banks’ use of PEOs: coordinating work in improving PEOs tariffs to make

sure they fit clients’ needs; exchanging data, statistics, and case studies describing successful

cooperation; and organizing necessary training on banking activities and business models for PEOs.

These activities should result in an event that will present the PEO profession to members of banks’ boards of directors in charge of decision-making.

Under Objective 4, Task 7, "Support Financial System Stability Reform," BEP has been

providing advisory support and legal expertise to Ministry of Finance (MoF) with regard to reform of bank resolution legislation and the deposit insurance system. BEP has participated in a series of

consultative meetings with the MoF and IMF related to the alignment of the solutions proposed by

IMF with the Serbian legal framework. The Serbian authorities have embarked on a comprehensive

reform of the framework for bank resolution, comprising extensive legal amendments and a significant strengthening of the authorities’ capacity for dealing with financial sector distress. BEP ’s

assistance covers the development of the Draft Law on Banks, the Deposit Insurance Agency Law and

Deposit Insurance Law, and the Law on Bankruptcy and Liquidation of Banks. Amendments to these laws are of crucial importance for Serbia as their adoption is a precondition for the country entering

into a standby arrangement with the IMF. The laws should be enacted in January 2015.

Public Sector Capacity Building Initiatives

BEP Promoted its Government Internship Program as a Way to Hire Talented Public Servants. On September 17, USAID BEP and its grantee Belgrade Open School (BOS) presented the results of

the pilot internship program in the Government of Serbia during the conference "Challenges in Public

Administration Reform and Employment of Young Professionals in Serbia”. Kori Udovicki, Deputy Prime Minister and Minister of Public Administration and Local Self-Government, Ambassador

Michael Kirby, Nenad Borovcanin, State Secretary in the Ministry of Youth and Sports, Dusan Protic,

Assistant Minister of the Ministry of Trade, Tourism and Telecommunications, Srdjan Majstorovic,

Deputy Director of the European Integration Office, Milorad Bjeletic, Executive Director of the Belgrade Open School and Joe Lowther, USAID BEP’s Chief of Party gave introductory speeches.

Ambassador Kirby stated that internship programs in governmental institutions are vital for the future

of public administration. Internships are possible under current law and BEP is preparing guidance for GoS internship programs. Internships are also provided for in the GoS draft Public Administration

Reform Strategy.


Outreach

During the quarter BEP generated 273 media reports, all with a positive or neutral, and none with

negative tone. BEP’s outreach activities reached more than 45 million people with $367,983.00 USD* of total commercial value of the reports.

BEP held several noteworthy events during the quarter:

■ On October 8 USAID BEP and NALED presented the analysis of "Non-tax charges in Serbia 2014" and listed five key steps for its reduction. There was substantial media interest in this

event, which resulted in more than 40 positive media reports.

■ On November 21, USAID BEP presented findings from the Fourth Annual Business Survey. The

Survey shows that Serbian executives believe that the business environment in Serbia improved

slightly during 2014, though lengthy and expensive regulatory procedures and reduced bank finance continue to harm their companies' competitiveness. Deputy Prime Minister Zorana

Mihajlovic and U.S. Ambassador to the Republic of Serbia Michael D. Kirby opened the event.

This event attracted massive media attention: 30 news crews attended and more than 100 positive

reports were published. USAID BEP’s COP, Joe Lowther also had a TV appearance on the RTS’s Dnevnik.

■ On December 2, a conference dedicated to the adoption and implementation of the Labor Law,

organized by the USAID BEP and the Ministry of Labor, took place at Belgrade’s Palace of

Serbia. The conference was attended by representatives of the Ministry of Labor, USAID BEP,

Chamber of Commerce and other stakeholders. USAID BEP and the Ministry of Labor in the period from September 3 to October 23, visited 10 regional chambers of commerce and presented

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

An Intern’s View of the BEP GoS Internship Program

"Along with other 15 recent university graduates, I did my internship under the BEP grant ’’Better public administration through internship program’’. After the rough competition between 1000 applicants, I was granted a unique chance to gain experience in the prestigious institution- Ministry of Finance. Already after my first workday, I have realized that I will be part of the main team in charge of public finance reform and implementation of new program budget model. This included my participation in development of new Methodology, workshops with pilot budget beneficiaries, and later its full implementation by all 173 direct budget beneficiaries. My main tasks were organization of workshops, communication with budget beneficiaries, coordination of Budget Department and BEP donor, and evaluation of program structures proposed by budget beneficiaries. This internship has provided me direct insight into all phases of budget preparation process, from strategic planning of public policies’ priorities, definition of med-term budget limits, to establishment of new budget structures of each budget beneficiary. In addition to previous, BOS organized soft skills workshops and career consultations which were specifically tailored for gaining the skills necessary for work in public administration, which we have not had a chance to learn at University. Since my ambition and hard work were officially recognized, today I can say I am proud member of Budget Department of Ministry of Finance." Milica Ilic


Labor law amendment. More than 500 business representatives, trade unions, inspection and other

stakeholders who responded to the call, were introduced by the Labor Law. This series of events resulted in very positive media coverage with more than 50 media reports

To improve transparency and make policy café more user friendly, USAID BEP introduced an in the loop section where the visitors can easily access all major analyses, researches and studies conducted

by USAID BEP.

Grants

In the fourth quarter of 2014, five Expressions of Interest were submitted to USAID BEP in response

to APS-2014-01 for consideration from the following organizations: a) Center for Investments and

Finance for "Assistance in improvement of public debt management systems and capacity" proposal; b) Cluster "Fruits of Kolubara for "Fostering access to agricultural finance in Kolubara region

(AgriFin-KOL)" project; c) Public Finance Institute for "Raising the Capacity of the Serbian

Parliament’s Committee on Finance, National Budget and Public Expenditure Control to Monitor the

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

shown by the adjacent chart. The BEP

website contains information about the project, grant solicitations, media

appearances, and partners. The BEP

website (bep.rs) has continued to show an increase in number of visits with a steady

average of 73 unique visits per day

(November 2014) and an average of

around 1500 unique visitors per month.

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 steady and constant number of total

visitors with around 725 unique visitors on monthly

basis (see chart).

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/


Implementation of the Budget Act" proposal; d) Institute for Entrepreneurship for "Empowering

Business Associations to Pool Resources and Advocate for Alternative Sources of Funding for SMEs" proposal; and, e) FREN for "Development of Local Currency Financial Markets in Serbia" project

idea. Since they were submitted at the very last day of the deadline, BEP's Grants Selection

Committee meeting has been scheduled for 14 January 2015 to deliberate all project proposals.

USAID BEP did not award any new grant in the reporting period.

The total amount of awards to date is $1, 522,967. The Grant Status is attached as Attachment 5.

USAID BEP GRANT FUND (USD) 1,674,584

Contracted (APS, RFA and RFP) 1,522,967

Exchange rate and other differences 43,651

Committed In-kind grant for RGA ($ 70,000); 53,145 USD

already contracted

16,855

Total 1,496,171

Obligated 1,674,584

TOTAL REMAINING GRANT FUNDS

UNTIL END OF PROJECT 178,413

A total of 49 grants and two purchase orders have been contracted to date.

Statistics:

Number of grants 49

Unsolicited grants 1

Follow-on grants 5

Sole source solicitation grant 1

Modifications to the grant agreements 31

Terminated 1

Purchase orders 2

Total disbursed funds until December 31, 2014 amount to 1,375,035.94 USD (90.42% of the

contracted amount). Grantees have been fulfilling the contracted milestones, and therefore fourteen payments were initiated in the reporting period for accomplishment of milestones as per their grant

agreements.

GRANT AGREEMENT MODIFICATION

USAID BEP approved and signed three cost modifications to the grant agreements with: Belgrade Open School, MP and Associates and Serbian Management Centre, one no cost modification to the

ABF Education and Consulting, as well as one modification to the Purchase order with TeamNet

International. The changes included the following:

1. Belgrade Open School (BOS), APS-2014-01-1, for "Support for the Ministry of Finance through Internship Placements" grant.

Changes:

1. Change deliverables/grant milestones and payment schedule specified in the grant agreement.

2. Revise the budget with the new budget attached.


3. Extend the period of performance of the grant agreement.

The reason for this change was that several selected inters left their positions, which compelled BOS to initiate a new recruitment process to fill in two vacant internship positions at the Budget

Department of the Ministry of Finance. After assessing the new situation and having in mind USAID

BEP’s commitment to its partners in the Government of Serbia, BOS and USAID BEP decided to

modify the BOS grant agreement. The project aims at continuing the improvement of management capacities within the Ministry of Finance (MoF) through continuing development and facilitation of

the internship placement program. The total modified value of the grant is USD 15,670; it will be

implemented until February 13, 2015.

2. ABF Education and Consulting, RFA-2014-01, for the implementation of "The Role of Good

Accounting in Access to Finance" grant.

Changes:

1. Change the ownership of the Grantee.

2. Change of director/legal representative of the Grantee and signatory to the grant agreement.

3. Change of the two team members.

4. Change of the milestone/payment schedule

Following the unfortunate death of a director and owner of ABF Education and Consulting Ltd.

Belgrade, Valor Consulting and Education Ltd. Belgrade acquired 100% interest in ABF Education

and Consulting Ltd. The new owners and project team pledged to maintain the same quality of services and to perform under the grant as set forth in ABF’s response to USAID BEP RFA-2014-01

and the Grant Agreement dated March 19, 2013. USAID BEP approved the CVs of the new staff and

decided to continue the grant with the new management in view of its commitment to finalizing all grant activities. The grant activities will be completed by March 19, 2015.

3. MP and Associates, RFA-2013-01/R , for " Development of Alternative Legal Framework

for Improving Construction Permits in Serbia" grant.

Changes:

1. Early terminate the grant agreement.

2. Change the milestones and payment schedule.

3. Revise the budget with the new budget attached

The modification entailed early termination of the grant agreement and change of milestones/payment

schedule. Following a careful examination of the status of the referenced Grant, especially in terms of

the deliverables and expected results of the project, USAID BEP decided to terminate the grant early. Some staff of Ministry for Construction and Urban Planning was replaced after the parliamentary

elections held on March 16 this year; the working group’s priorities and its mode of operation have

also changed since the launch of the grant. The Ministry’s activities have led USAID BEP to conclude

that the process has taken a course that prevents the Project from achieving the results and delivery schedule anticipated by the grant, and has duly decided to terminate it. USAID BEP acknowledged

the effort invested by MP and Associates in terms of drafting amendments to sectoral laws regulating

critical elements of the construction permitting processes and additional consultations and vetting of amendments to the draft Law on Planning and Construction, and will compensate the Grantee for the

work done to date. The total modified value of the grant is USD 35,066.

4. Serbian Management Centre, RFA-2012-07-F, for the implementation of "Enhancing

organizational effectiveness within key Governmental partner institutions in Serbia through Management Assistance Program" grant.

Changes:

1. Revise the budget with the new budget attached.


2. Change the milestones/grant deliverables and payment schedule.

The careful examination of the status of the grant, especially the impossibility of delivering the training and coaching sessions for the Budget and Financial System Departments of the Serbian

Ministry of Finance staff, resulted in the decision to amend the activities and the budget accordingly.

Trainings became impossible to deliver due to the substantial personnel changes in the Ministry of

Finance that occurred during summer. Ministry’s leadership (Minister, State Secretary, Assistant Minister) was unable to work with SMC to develop and implement the training and coaching, and the

staff changed and was reorganized. Therefore, it was agreed not to proceed with the outstanding

training activities. SMC will finalize the evaluation of conducted training and coaching activities and submit the final report by the end of the grant period of performance. The total modified value of the

grant is USD 19,550.

5. S.C TeamNet International S.A., Purchase order P0-2012-02, for "Development of Document Management System and Public Register" grant.

Changes:

Extension to the period of performance.

The modification allowed for extension of the period of performance for one month, i.e. until January

19, 2015, due to the delay in the training activities and migration of existing codebooks within the development of the document management system. The purpose of this Purchase Order is to support

USAID BEP by providing assistance to the Serbian Securities Commission in developing a Document

Management System and Public Register to facilitate its efforts to assure sound market regulation and supervision.

MONITORING

USAID Business Enabling Project Helps Improve Access to Finance for Small and Medium-

Sized Enterprises – On November 19, USAID BEP and the Academy for Banking and Finance (ABF Education and Consulting), in cooperation with the Serbian Chamber of Commerce (SCC), introduced

the project entitled "Role of Good Accountant in Access to Finance for SMEs", under the USAID

BEP grant RFA-2014-01, to more than 25 owners of small and medium-sized enterprises (SMEs).

Besides tailor-made interactive training, the outputs of this grant include

publicly available distance learning

video training sessions and a manual. The manual contains explanations, case

studies, as well as short videos that

illustrate, additionally explain, and enhance lessons on how a good

accountant adds value to a firm and

improves its access to finance. In the

coming months USAID BEP, ABF Education and Consulting and SCC will

organize an extensive media campaign

throughout Serbia, as well as an additional five round tables, to promote the need for better financial analysis and financial statements.

All materials will be publicly available through regional chambers of commerce, regional

development agencies, business associations, and various business portals.


Financial review

Billing Total Remaining Percentage

To Date Budget Budget Complete

Salaries and Wages $ 3.114.807,95 $ 3.684.997,42 $ 570.189,47 85%

Fringe Benefits $ 236.457,17 $ 261.344,12 $ 24.886,96 90%

Overhead $ 1.836.206,06 $ 2.168.942,15 $ 332.736,09 85%

Travel, Transportation,

and Per Diem

$ 243.349,56 $ 521.752,74 $ 278.403,18 47%

Allowances $ 482.654,03 $ 664.749,34 $ 182.095,31 73%

Other Direct Costs $ 1.767.763,92 $ 2.417.168,84 $ 649.404,92 73%

Equipment and Supplies $ 65.249,43 $ 97.674,02 $ 32.424,59 67%

Participant Training $ 114.907,20 $ 64.634,18 $ (50.273,02) 178%

Subcontracts $ 1.092.466,40 $ 1.596.493,07 $ 504.026,68 68%

Grants Under Contract $ 1.377.820,38 $ 1.674.584,21 $ 296.763,83 82%

G&A on Grants Under

Contract

$ 164.628,85 $ 192.409,73 $ 27.780,88 86%

G&A $ 1.064.494,90 $ 1.318.794,16 $ 254.299,26 81%

TOTAL ESTIMATED

COST

$ 11.560.805,84 $ 14.663.543,99 $ 3.102.738,15 79%

Fixed Fee $ 668.862,53 $ 815.859,91 $ 146.997,38 82%

TOTAL ESTIMATED

COST PLUS FIXED

FEE

$ 12.229.668,37 $ 15.479.403,90 $ 3.249.735,53 79%

Upcoming Activities

BEP plans the following activities in the next quarter:

Component 1

Providing technical assistance for adoption of the Inspections Oversight Law

Providing technical assistance and supporting public private dialogue activities for harmonization of sector laws regulating elements of the construction permitting process with the Law on

Planning and Construction

Providing technical assistance and supporting public private dialogue activities for drafting bylaws and implementing enactments in the areas of construction permits and inspections reform

Foundation of inspections coordination body, and providing support to its operations


Completing software requirements specification for e-permitting system

Providing support to the central government institutions for implementation of the construction permits reform

Completing and officially launching the Inventory of Planning Documents

Providing training for implementation of the Inventory of Planning Documents

Complete tender documentation and process for business processes analysis (BPA) for e-Inspections, and BPA started

Inspection reform donor coordination

Outreach activities regarding the inspections and construction permitting reform

Component 2

Retreat with the Center of Government Working Group (Public Policy Secretariat, Ministry of Finance, Serbian European Integration Office, and General Secretariat) on unified strategic

planning and budgeting process

Retreat with the Ministry of Finance Budget Department on analyses of 2015 Program Budget and improvements to the established structures and indicators

Workshops with budget beneficiaries on integrating Action Plan on Implementation of Government Program with their proposals for Priority Areas of Financing (PAF)

Improvements to the budget preparation information system in line with requirements of PAF procedure and reporting on performance achievements

Component 3

The Market Impact Assessment Report for Non-Deposit-Taking Micro-Financial Institutions (NDMFIs) operating in Serbia expected to be presented to the Serbian Ministry of Finance and

the National Bank of Serbia in late January

Drafting amendments aimed to harmonize the capital market legal framework (3 laws, 120 amendments)

Further implementation of the Securities Commission Document Management System

Promoting the amendments to the Mortgage Law in the National Assembly

Promoting the PEOs profession and providing support in establishing dialogue with the banking sector.

Finishing "the role of the good accountant in access to finance" activities (road show and promotion);

Pilot project designed and partners selected for the implementation of SME Financing Facilitation Initiative

Development of a certification or rating scheme for SMEs, in order to improve their access to finance

Cooperation with the Association of Leasing Companies in Serbia on further amendments of leasing regulations

Promotion of the new business web portal, in cooperation with the SCC

Assistance to implement new Public Debt Authority IT Debt Management System

Advocating and lobbying for the development of the regulatory framework for non-bank


financing institutions (NBFIs) (first meeting of the newly established working group expected in

Q1 2015)

Assistance in finalizing draft of Action Plan for Implementing the Entrepreneurship and Competitiveness Development Strategy, 2013-2020

Providing assistance for establishment of SMEs Council

Finalizing and enacting the National Standards for Property Valuation, and the draft of the Valuers Law (includes helping to prepare regulatory impact assessments and analyses of

compliance with the broader Serbian legal framework)

Cooperation with the MoF and the World Bank on financial stability activities

Promotion of the Commodity Exchange Law, if the law is adopted by the Parliament.


ATTACHMENT 1: BEP WORK ORGANIZATION

Component 1:Business Regulation & Economic Governance

• Manager: Milan Stefanovic

• Analyst: Tamara Borovcanin

• Intern

Grants Manager

Jasmina Debeljak Maljkovic

M&E Duska Medic

PR / Communications:

Strahinja Mitrovski

Deputy Chief of Party & Financial Market Development

Director Dragana Stanojevic

Chief of Party Joe Lowther

Home Office

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.

• Manager: Majda Sedej • Analyst: Natasa Tapuskovic

• Analyst: TBD

• Intern

Component 3: Financial Market Development

• Senior Manager: Ana Jolovic

• Manager Sandra Rodic

• Analyst: Vladimir Jovanovic

• Expert: Aleksandar Zaric • Intern

Operations / Finance Department

Tanja Stojkovic

Sasa Jelic

Uros Vasiljevic

Intern

Public Sector Capacity

Zorana Gajic Sasa Jelic

Business Regulations & Economic Governance

Director Dusan Vasiljevic


ATTACHMENT 2: LIST OF MEDIA PUBLICATIONS

No date media title

1. 03. 10. 2014 Blic.rs Proposals to introduce order in the para-fiscal charges

2. 05. 10. 2014 Dnevnik.rs Shadow economy hidden in the thousand regulations

3. 05. 10. 2014 Krstarica.com Shadow economy hidden in the thousand regulations

4. 05. 10. 2014 Sumedija.rs How to develop civil society

5. 06. 10. 2014 Bizlife.rs Combing para-fiscal charges

6. 06. 10. 2014 Dnevnik Shadow economy hidden in the thousand regulations

7. 07. 10. 2014 Ekonometar News from Serbian Chamber of Commerce

8. 07. 10. 2014 Tvsabac.co.rs A month form Labor Law implementation

9. 08. 10. 2014 Akter.co.rs 274 PARA-FISCAL CHARGES IN SERBIA

10. 08. 10. 2014 B92.net 5 solutions for para-fiscal charges

11. 08. 10. 2014 Bizlife.rs Hundreds of millions of euros for para-fiscal charges

12. 08. 10. 2014 Blic.rs NALED: Economy pays 384 para-fiscal charges

13. 08. 10. 2014 Kurir-info.rs NALED and USAID: Do not stifle economy growth with charges

14. 08. 10. 2014 Novimagazin.rs NALED: Economy pays 384 para-fiscal charges

15. 08. 10. 2014 Pravda.rs Economy pays 384 para-fiscal charges!

16. 08. 10. 2014 Privredni pregled The new register includes 384 charges

17. 08. 10. 2014 Radio Beograd 1 Para-fiscal charges reform

18. 08. 10. 2014 Radio Beograd 1 Number of charges in Serbia

19. 08. 10. 2014 Rtv.rs NALED: 5 steps to para-fiscal reform

20. 08. 10. 2014 Tanjug.rs NALED: 384 para-fiscal charges stifles economy


21. 08. 10. 2014 Tvlaser.info 5 steps to para-fiscal charges reform

22. 09. 10. 2014 24 sata SMS NEWS

23. 09. 10. 2014 Blic - Beograd Huge charges

24. 09. 10. 2014 Ekapija.com 5 steps to para-fiscal charges reform

25. 09. 10. 2014 Kurir Do not stifle economy growth with charges

26. 09. 10. 2014 Mc.kcbor.net 5 steps to para-fiscal charges reform

27. 09. 10. 2014 Politika 5 steps to para-fiscal charges reform

28. 09. 10. 2014 Poslovnojutro.com NALED: 5 steps to para-fiscal reform

29. 09. 10. 2014 Privredni pregled 384 para-fiscal charges stifles economy

30. 09. 10. 2014 Vibilia.rs NALEDL: 5 steps to reform

31. 10. 10. 2014 Blic Party foundation 70 RSD

32. 10. 10. 2014 Blic.rs Party foundation 70 RSD: The bizarre charges paid by citizens and businesses

33. 10. 10. 2014 Novimagazin.rs Bizarre charges paid by citizens and businesses

34. 11. 10. 2014 Glaszapadnesrbije.rs The lowest republic administrative fee is 70 RSD, and the highest 748 720 RSD

35. 11. 10. 2014 Pregled.rs Bizarre charges paid by citizens and businesses

36. 12. 10. 2014 B92.net 10 billion for charges without knowing why

37. 12. 10. 2014 Blic.rs Court fees cost us 10 billion annually

38. 12. 10. 2014 Novosti.rs Court fees cost us 10 billion annually

39. 12. 10. 2014 Politika - Magazin When artists start working

40. 12. 10. 2014 Pressonline.rs Court fees cost us 10 billion annually

41. 12. 10. 2014 RTS 1 Ivan Rada about para-fiscal charges

42. 12. 10. 2014 RTS.rs Unnecessary charges taking billions

43. 12. 10. 2014 Tanjug.rs Court fees cost us 10 billion annually


44. 12. 10. 2014 Tanjugbiz.rs Court fees cost us 10 billion annually

45. 12. 10. 2014 Bor030.net Court fees cost us 10 billion annually

46. 13. 10. 2014 Bktvnews.com Charges: We are pay for nonexistent solar and wind farms

47. 13. 10. 2014 Happytv.tv Court fees cost us 10 billion annually

48. 13. 10. 2014 Kurir-info.rs Hands in people’s pockets: We are paying nonexistent solar and wind farms!

49. 13. 10. 2014 Nadlanu.com Insolence: Charges on nonexistent stuff

50. 13. 10. 2014 Pravda.rs The state is forcing us to pay charges for nonexistent things!

51. 13. 10. 2014 Privredni pregled Court fees cost us 10 billion annually

52. 13. 10. 2014 RTV YU Eco Court fees cost us 10 billion annually

53. 13. 10. 2014 Rtv.rs Court fees cost us 10 billion annually

54. 14. 10. 2014 TV Protokol K-1- Leskovac Law on Amendments to the Labor Law presentation in Leskovac

55. 15. 10. 2014 Danas - Poslovi Charges which stifle economy

56. 15. 10. 2014 Ozon.rs Law on Amendments to the Labor Law presentation

57. 15. 10. 2014 Privredni pregled Para-fiscal charges paralyze entrepreneurs

58. 15. 10. 2014 Radio Subotica COMMENTS OF BUSINESSMEN TO CHANGED THE LABOUR LAW

59. 15. 10. 2014 rpkle.rs Law on Amendments to the Labor Law presentation

60. 16. 10. 2014 RTV City Subotica Labor Law presentation in Regional Chamber of Commerce Subotica

61. 16. 10. 2014 RTV YU Eco Labor Law presentation in Regional Chamber of Commerce Subotica

62. 16. 10. 2014 Subotica.info Making suggestions for better Labor Law

63. 16. 10. 2014 rtvcitysubotica.com Labor Law presentation in Regional Chamber of Commerce

64. 16. 10. 2014 super-info.rs Labor Law presentation

65. 17. 10. 2014 Subotičke novine Improvement of the Labor Law, supported by USAID

66. 18. 10. 2014 Dnevnik Ridiculous charges "eat" billions and stifle companies


67. 21. 10. 2014 Biznis & Finansije To drink or not to drink. That is the question.

68. 21. 10. 2014 Magazin biznis 5 steps to para-fiscal charges reform

69. 21. 10. 2014 Zajavnost.info LIBEK conference "Freedom and reforms" in hotel Metropol

70. 22. 10. 2014 Glassrbije.org Serbia needs a comprehensive reform

71. 23. 10. 2014 Rtvbor.rs Presentation of Amendments to the Labor Law in Zajecar

72. 23. 10. 2014 Timok Amendments to the Labor Law

73. 24. 10. 2014 Timok Amendments to the Labor Law presentation

74. 29. 10. 2014 M novine Labor Law provisions brought closer to businessman

75. 29. 10. 2014 Sremske novine - Sremska

Mitrovica

For better business environment

76. 31. 10. 2014 Danas - Dodatak How state could save

77. 03. 11. 2014 Naše novine In Serbia, 531 day for a construction permit

78. 10. 11. 2014 poslovnezene.org.rs Training for women entrepreneurs in Belgrade

79. 14. 11. 2014 Bizlife.rs One of the priorities of USAID in Serbia is to reform the system of issuing building

permits "

80. 17. 11. 2014 BizLife Support for future reforms

81. 17.11.2014 Biz Life Support for future reforms

82. 20. 11. 2014 Bizlife.rs What are the problems of the economy in Serbia?

83. 20. 11. 2014 Rtv.rs Mihajlovic: The business environment is improving

84. 20. 11. 2014 Tanjug.rs USAID: Slightly improved regulatory environment

85. 21. 11. 2014 Akter.co.rs LICENSE FOR 28 DAYS

86. 21. 11. 2014 B92.net IMF umbrella over our forex reserves "

87. 21. 11. 2014 B92.net Kirby: Positive shifts in the economy

88. 21. 11. 2014 B92.net However, the business climate is improving "


89. 21. 11. 2014 B92.net Serbian businessmen feel "a little better"

90. 21. 11. 2014 Beta.rs Businessmen see small improvement of business conditions

91. 21. 11. 2014 Beta.rs Businessmen see small improvement of business conditions

92. 21. 11. 2014 Bizlife.rs USAID: Arrangement with the IMF restores investor confidence in Serbia

93. 21. 11. 2014 Blic.rs USAID: Slightly improved regulatory environment in Serbia

94. 21. 11. 2014 Blic.rs Kirby: The Government of Serbia has made positive changes in the economy

95. 21. 11. 2014 Blic.rs Kirby: The international community wants to help Serbia

96. 21. 11. 2014 Danas.rs Businessmen see small improvement of business conditions

97. 21. 11. 2014 Danas.rs About media fund

98. 21. 11. 2014 Dnevnik.rs Subsidies are reducing and new excise tax are introduced

99. 21. 11. 2014 Dnevnik.rs Vujovic: Program reforms are difficult, but provides a basis for new jobs

100. 21. 11. 2014 Euractiv.rs Businessmen noticed slight improvement of the business environment

101. 21. 11. 2014 Kurir.rs Mihajlovic: The business environment in Serbia is improving

102. 21. 11. 2014 Newbalkan.com Miroslav Vasin opened an international conference dedicated to small and medium-

sized enterprises and EU guarantees

103. 21. 11. 2014 Novimagazin.rs Mihajlovic: The business environment is still improving

104. 21. 11. 2014 Nspm.rs Michael Kirby: I expect that the American company "Esmark" will take over the steelworks in Smederevo

105. 21. 11. 2014 Politika.rs Kirby: The Government of Serbia has made positive changes in the economy

106. 21. 11. 2014 Pressonline.rs Kirby: Esmark offer is the best for "Zelezara", Vucic on the move!

107. 21. 11. 2014 Pressonline.rs An agreement with the IMF; Serbia waiting for serious reform

108. 21. 11. 2014 Prva Srpska TV Serbia reached an agreement with the IMF

109. 21. 11. 2014 Prva Srpska TV Agreement of the IMF and the government

110. 21. 11. 2014 Prva.rs Kirby: Esmark offer is the best for "Zelezara"


111. 21. 11. 2014 Prva.rs Government is open to businessmen suggestions

112. 21. 11. 2014 RTS 1 Guest - Joe Lowther

113. 21. 11. 2014 RTS 1 Zoran Mihajlovic on the presentation of the results of research conducted by USAID and Serbian Chamber of Commerce

114. 21. 11. 2014 RTS 1 Joe Lowther says that the IMF has given a seal of confidence to Serbia

115. 21. 11. 2014 RTS 1 Research regarding the reforms in the public sector

116. 21. 11. 2014 RTS 1 Are companies ready for change?

117. 21. 11. 2014 RTS.rs Serbia, the IMF seal of confidence

118. 21. 11. 2014 RTS.rs Government open to businessmen suggestions

119. 21. 11. 2014 RTS.rs Are companies ready for changes

120. 21. 11. 2014 RTS.rs Government is open to businessmen suggestions

121. 21. 11. 2014 RTV1 Kirby: Esmark group offer is the best

122. 21. 11. 2014 Radio Beograd 1 Joe Lowther Chief of Party of the Business Enabling Project

123. 21. 11. 2014 Radio Beograd 1 Presentation of the Business Survey Findings conducted by the USAID in Serbian

Chamber of Commerce

124. 21. 11. 2014 Radio Beograd 1 Mihajlovic: Government is open to businessmen suggestions

125. 21. 11. 2014 Radio Beograd 1 Mihajlovic: Government open to suggestions businessmen

126. 21. 11. 2014 Radio Novi Sad 1 Mihajlovic: Next week in parliamentary procedure draft Law on Planning and

Construction

127. 21. 11. 2014 Rtv.rs What are the conditions of doing business in Serbia?

128. 21. 11. 2014 Rtv.rs Businessmen: Small improvements business conditions

129. 21. 11. 2014 TV KCN Government is open to businessmen suggestions

130. 21. 11. 2014 TV KCN A thousand enterprises

131. 21. 11. 2014 TV KNJAŽEVAC INFO The annual survey of the USAID Business Enabling Project


132. 21. 11. 2014 TV N1 Results of the fourth annual survey of the USAID Business Enabling Project were

presented today

133. 21. 11. 2014 TV Palma plus Statement by Michael Kirby

134. 21. 11. 2014 TV Pink The business climate in Serbia

135. 21. 11. 2014 Tanjug agencijske vesti Kirby: Agreement with IMF - assistance to Serbia

136. 21. 11. 2014 Tanjug agencijske vesti Kirby: The Government of Serbia has made positive changes in the economy

137. 21. 11. 2014 Tanjug agencijske vesti Lauter: Businessmen are complaining about high taxes

138. 21. 11. 2014 Tanjug agencijske vesti USAID: Arrangement with the IMF restores investor confidence in Serbia

139. 21. 11. 2014 Tanjug agencijske vesti USAID: Slightly improved regulatory environment

140. 21. 11. 2014 Tanjug agencijske vesti USAID: Slightly improved regulatory environment

141. 21. 11. 2014 Tanjug.rs USAID: Slightly improved regulatory environment

142. 21. 11. 2014 Tanjug.rs USAID: Arrangement with the IMF restores investor confidence in Serbia

143. 21. 11. 2014 Tanjug.rs Kirby: Esmark offer is the best for "Zelezara"

144. 21. 11. 2014 Tanjug.rs Government is open to businessmen suggestions

145. 21. 11. 2014 Tanjug.rs Kirby: Esmark offer is the best for "Zelezara"

146. 21. 11. 2014 Tanjugbiz.rs Mihajlovic: The business environment is still improving

147. 21. 11. 2014 Tanjugbiz.rs Kirby: The Government of Serbia made positive changes in the economy

148. 21. 11. 2014 Tanjugbiz.rs Government is open to businessmen suggestions

149. 21. 11. 2014 Tanjugbiz.rs Kirby expects Esmark group to take over "Zelezara"

150. 21. 11. 2014 Tanjugbiz.rs Kirby: The Government of Serbia has made positive changes in the economy

151. 21. 11. 2014 Tanjugbiz.rs Mihajlovic: The business environment is still improving

152. 21. 11. 2014 Telegraf.rs Kirby: The international community wants to help Serbia! (PHOTO) (VIDEO)

153. 21. 11. 2014 Tvbest.rs Kirby: Serbian government made positive changes in the economy


154. 21. 11. 2014 Tvbest.rs Mihajlovic: The business environment in Serbia is improving

155. 21. 11. 2014 Vibilia.rs The adoption of the Law on Planning and Construction next week.

156. 21. 11. 2014 Vibilia.rs USAID: Slightly improved regulatory environment in Serbia

157. 21.11.2014 TV Knjazevac Info Annual USAID Business Enabling Project survey

158. 21.11.2014 Vibilia.rs Kirby expects that the Esmark will take Zelezara Smederevo

159. 21.11.2014 TV Studio B Arrangement with the IMF comes into force on 1 January 2015

160. 21.11.2014 TV Sky Plus Problem of administration and banks

161. 21.11.2014 TV Pink Kirby: Government of Serbia made positive changes in the economy

162. 21.11.2014 TV Pink Business conditions in Serbia

163. 21.11.2014 TV N1 Statement by Michael Kirby

164. 21.11.2014 TV N1 Statement by Zorana Mihajlovic

165. 21.11.2014 TV N1 Statement by Michael Kirby

166. 21.11.2014 TV B92 Mihajlovic: Just do it

167. 21.11.2014 Radio B92 Mihajlovic: Just do it

168. 21.11.2014 Prva Srpska TV The business climate in Serbia

169. 21.11.2014 Prva Srpska TV Business environment still improves

170. 21.11.2014 Pressonline.rs The draft law on planning and construction next week

171. 21.11.2014 Pink 3 Survey regarding the reforms of the public sector

172. 21.11.2014 Glassrbije.org Mihajlovic: Government encourages the private sector

173. 21.11.2014 Blic.rs Mihajlovic: Building permits in 28 days

174. 21.11.2014 B92.net Kirby: Esmark is the best for Zelezara

175. 22. 11. 2014 Bif.rs USAID polls "measure" slight improvement of the business environment in Serbia

176. 22. 11. 2014 Blic For "Zelezara" "Esmark" is the best


177. 22. 11. 2014 Dnevnik However, the business climate is improving

178. 22. 11. 2014 Dnevnik Subsidies are reducing and new excise tax are introduced

179. 22. 11. 2014 Economy.rs Research USAID: Serbian economy still burdened by bureaucracy and lack of capital

180. 22. 11. 2014 Informer Businessmen complain about high taxes

181. 22. 11. 2014 Kurir Every fourth employer wants new employees

182. 22. 11. 2014 Kurir.rs Every fourth employer wants new employees

183. 22. 11. 2014 Kurir.rs Every fourth employer wants new employees

184. 22. 11. 2014 Naše novine Businessmen: Exchange rate an and huge taxes are lethal

185. 22. 11. 2014 Politika More optimism among businessmen

186. 22. 11. 2014 Rs.seebiz.eu Kirby: The Government of Serbia has made positive changes in the economy

187. 22. 11. 2014 TV Palma plus Statement by Michael Kirby

188. 22. 11. 2014 TV Pink The business climate in Serbia

189. 22. 11. 2014 Tanjug.rs Government is open to businessmen suggestions

190. 22.11.2014 Pressonline.rs Are the companies ready to change?

191. 22.11.2014 Poslovnalogistika.rs USAID survey: Serbian economy still burdened by bureaucracy and a lack of capital

192. 22.11.2014 Danas Businesspeople see a slight improvement of business conditions

193. 23. 11. 2014 Poslovnojutro.com The business environment in Serbia improved

194. 23. 11. 2014 TV Pink Survey 1000 enterprises in Serbia conducted by USAID

195. 27.11.2014 Nedeljnik They lied

196. 01. 12. 2014 Tanjug agencijske vesti Vulin and Lowther on the implementation of Labor Law

197. 02.12.2014 RTS 1 Guest – Aleksandar Vulin

198. 02. 12. 2014 Beta.rs Vulin: Labour Law reduced unemployment

199. 02. 12. 2014 Blic.rs Vulin: Labour Law fulfilled its purpose by reducing unemployment


200. 02. 12. 2014 Dnevnik.rs Vulin: Law is good, unemployment fell

201. 02. 12. 2014 Glassrbije.org Vulin: Labour Law fulfilled its purpose

202. 02. 12. 2014 Nsreporter.rs Vulin and Lowther on the implementation of Labor Law

203. 02. 12. 2014 Poslovnojutro.com Labour Law fulfilled its purpose by reducing unemployment

204. 02. 12. 2014 Radio Beograd 1 The report from the meeting on the implementation of the Labor Law

205. 02. 12. 2014 Radio Studio B Labor Law will have to be supplemented

206. 02. 12. 2014 Rtv.rs Vulin and Lowther on the implementation of Labor Law

207. 02. 12. 2014 TV KCN Presentation of the process of adoption and implementation of the Labour Law

208. 02. 12. 2014 TV Sky plus Reduces unemployment in Serbia

209. 02. 12. 2014 TV Studio B Labor Law reduces unemployment in Serbia

210. 02. 12. 2014 Tanjug.rs Vulin: Labour Law fulfilled its purpose by reducing unemployment

211. 02.12.2014 Tanjug.rs Vulin and Lowther On Implementation of the Law on Labor

212. 02.12.2014 Rts.rs Vulin: Law on Labor Fulfilled Its Purpose

213. 02.12.2014 021.rs Vulin: Next Year Law on Labor on Lease

214. 02.12.2014 Novimagazin.rs Vulin: Law on Labor Fulfilled Its Purpose – It Reduced Unemployment

215. 02.12.2014 TV N1 Statement by Aleksandar Vulin

216. 02.12.2014 TV KCN Statement by Aleksandar Vulin

217. 02.12.2014 TV Studio B The Law on Labour will have to be amended

218. 02.12.2014 Happy TV Statement by Aleksandar Vulin

219. 03. 12. 2014 Cord Where There is WILL THERE IS A WAY

220. 03. 12. 2014 Danas Vulin: Labour Law reduced unemployment

221. 03. 12. 2014 Dnevnik Law is good, unemployment fell

222. 03. 12. 2014 Narodne novine Labour Law reduced unemployment


223. 03. 12. 2014 Politika Labor Law reduces unemployment

224. 03. 12. 2014 Privredni pregled Vulin: Labour Law reduced unemployment

225. 03. 12. 2014 Vibilia.rs Aleksandar Vulin: Labour Law reduced unemployment

226. 03.12.2014 TV B92 How to attract investments in Serbia

227. 05. 12. 2014 Prva Srpska TV Joke number 2, directed to Aleksandar Vulin

228. 05. 12. 2014 Prva Srpska TV Joke No. 1 directed to Aleksandr Vulin

229. 08. 12. 2014 Beta.rs Notary fees became quasi-fiscal charge

230. 08. 12. 2014 Bif.rs Notary fees became quasi-fiscal charge

231. 08. 12. 2014 Bizlife.rs NALED: Notary’s Fees became quasi-fiscal charge

232. 08. 12. 2014 Blic.rs NALED: Notary’s Fees became quasi-fiscal charge

233. 08. 12. 2014 Danas.rs NALED: Notary fees became quasi-fiscal charge

234. 08. 12. 2014 Economy.rs NALED: Notary Fees became quasi-fiscal charge

235. 08. 12. 2014 RTS.rs NALED: Notary fees became quasi-fiscal charge

236. 08. 12. 2014 RTV YU Eco Notary fees became quasi-fiscal charge

237. 08. 12. 2014 Rtv.rs NALED: Notary fees became quasi-fiscal charge

238. 09. 12. 2014 Ekonometar Slight improvement

239. 10. 12. 2014 Jugpress.com Notary fees became quasi-fiscal charge

240. 11. 12. 2014 Nin Catastrophic cadaster

241. 11. 12. 2014 Tanjug.rs NALED: Due to paperwork industry is losing millions of euros

242. 15.12.2014 Rs.n1info.com USAID: The new law raises Serbia from 186th to 39th place in the world

243. 15.12.2014 Tanjug.rs Tasovac: Next year, work on the new Media Strategy

244. 15.12.2014 Alo.rs Tasovac: New Media Strategy in 2015

245. 15.12.2014 Tanjug.rs USAID: Amendments on Law on construction is turning point for the progress of

https://media.klipingmap.com/pdf/view?filePath=2014/12/16/2990f0e3-a2ed-4769-aaf8-207b2706cc63&language=sr&topicGroupId=bdfd4ea5-2f0b-3036-b7e9-9a36bf3c7a13&showHighlights=true&processType=0

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Serbia

246. 15.12.2014 Economy.rs Law on Planning and Construction is turning point spirit that leads to economic progress

247. 15.12.2014 Bizlife.rs USAID: Serbia with the new law comes from 186. to 39. place in World Bank report

248. 15.12.2014 B92.net USAID: Serbia is expecting to climb on World Bank Doing Business List

249. 15.12.2014 Tanjug agencijske vesti USAID: Amendments on the construction is turning point for the progress of Serbia

250. 16.12.2014 Loznicke Novosti Notary fees became a para-fiscal charge

251. 16.12.2014 Poslovnojutro.com USAID: Serbia is expecting to climb on World Bank Doing Business List

252. 16.12.2014 Politika Charges for land conversion remains

253. 16.12.2014 Dnevnik We will not be 186 in the world

254. 16.12.2014 Danas USAID: LAW ON PLANNING AND CONSTRUCTION IS TURNING POINT

255. 21.12.2014 Krstarica.com Construction permits arrive in no more than 100 days

256. 21.12.2014 Dnevnik.rs Construction permits arrive in no more than 100 days

257. 22.12.2014 Dnevnik Construction permits arrive in no more than 100 days

258. 23.12.2014 Ilustrovana politika Bureaucracy gives fierce resistance

259. 24.12.2014 Tanjug.rs USAID: Energy Law threatens to undo a good part of the reform

260. 24.12.2014 Rtv.rs USAID: Energy Law threatens to undo a good part of the reform

261. 24.12.2014 B92.net USAID: Bad Draft Law on Energy

262. 24.12.2014 Bizlife.rs USAID: Harmful energy law

263. 24.12.2014 Biznis & Finansije Every day in every way I invest

264. 25.12.2014 Vibilia.rs SRB) USAID: Energy Law threatens to undo a good part of the reform

265. 25.12.2014 Kurir.rs CHAOS: Power connection breaks the law on building?!

266. 25.12.2014 Politika Act against the Act

267. 25.12.2014 Privredni pregled USAID: The new law drives away investors

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http://www.tanjug.rs/novosti/159128/usaid---zakon-o-energetici-preti-da-ponisti-dobar-deo-reformi.htm

http://www.tanjug.rs/novosti/159128/usaid--zakon-o-energetici-preti-da-ponisti-dobar-deo-reformi.htm


268. 25.12.2014 Dnevnik BAD DRAFT LAW ON ENERGY

269. 25.12.2014 Kurir Power connection breaks the law on building ?!

270. 25.12.2014 RTS 1 Power connection breaks the Law on Construction

271. 26.12.2014 Blic USAID: Poor Energy law

272. 26.12.2014 TV N1 TV reporting in front of the Assembly

273. 27.12.2014 TV Pink Support young people to find employment

http://www.rtv.rs/sr_lat/ekonomija/usaid-zakon-o-energetici-preti-da-ponisti-dobar-deo-reformi_551105.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+RtvPrivreda+%28RTV+Ekonomija%29

http://www.b92.net/biz/vesti/srbija.php?yyyy=2014&mm=12&dd=24&nav_id=939973

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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 technical and other assistance for development and adoption of the legal,

regulatory and institutional framework for inspection oversight reform

Jan – Dec 2014

Draft Law on Inspection Oversight and other necessary

laws and bylaws governing business inspection oversight

Relevant supporting

documents for development and adoption of new

business inspection oversight framework

Continued to provide comprehensive support to the Ministry of State Administration and Local Government (MoSALG) and Working Group in development and finalization of the Draft Law on Inspection Oversight and its ancillary regulatory documents and key by-laws. European Commission gave affirmative opinion on Draft Law and its suggestions were incorporated in the provisions. Answers and explanations to comments obtained through public consultations completed and, together with other relevant documents, published. Comments obtained through public consultations analyzed and, where grounded, incorporated in Draft Law. Draft Law and its ancillary regulatory documents sent to the competent ministries and other public institutions for official opinions. Regulatory Impact Assessment (RIA) and Statement on Harmonization with EU Regulations completed and approved by the Republic Secretariat for Public Policies and EU Integration Office. Suggestions from official opinions analyzed and, where grounded, incorporated in Draft




Law. Deputy Prime-Minister and Minister for State Administration and Local Government announced enactment of the Law by end-2014, but dispute with MoF is holding up enactment.

Assist the introduction of the inspection information system (e-Inspections)

Jan – Dec 2014

Inspection information system

(e-Inspections) design

BEP, the Directorate for e-Government and the MoSALG, in cooperation with the inspectorates, developed the concept of inspection information system (e-Inspections/e-Inspector) and implementation plan. Program Budget of Republic of Serbia for 2015 (Law on Budget 2015) contains appropriate funds for implementation of e-Inspector project. Started developing ToR for conducting business processes analysis for e-Inspector implementation, and prepared initial relevant documents. Conducted study tour to State Inspectorate of Republika Srpska entity within Bosnia and Herzegovina, which uses inspection management information system (E-Inspection Training Program for Effective Inspections).

Support implementation of the new inspection oversight legal, regulatory and

institutional framework

Jan – Dec 2014

Implementation plan for inspection

oversight reform

Inspection oversight reform training

program

BEP and the MoSALG developed Draft Inspection Reform Implementation Plan. Continued to consult relevant stakeholders and to present inspection reform features through outreach activities, articles, media outlets, conferences, roundtables, press




Documents relevant for implementation

of inspection oversight

reform

Risk-based inspection oversight

criteria and inspection oversight

check-lists

Public body in charge

for coordination of inspection oversight

formed and functional

conferences and presentations. Experts, decision-makers, practitioners, businesses and citizens informed about contemporary inspection standards (risk-based, prevention-based, etc.). Continued developing the Inspection Oversight Law Guide. Conducted training, consultations and presentation to regional heads of Labor Inspectorate. Met USAID IDEAS team from Macedonia and will continue to share information and experiences in implementation of inspection reform. BEP and MoSALG are in process of defining modules and topics for inspectors’ trainings - draft paper developed.

2. Remove or reduce

quasi fiscal burdens

to businesses

Provide technical and other assistance for continuation and implementation of

regulatory reform of para-fiscal charges and fees

Jan – Oct 2014

Revised list of parafiscal

charges and fees

Analysis and

regulatory reform recommendations in

respect to continuation and implementation of

reform of para-fiscal charges and fees

reform

Draft legislation and

Produced and published comprehensive set of regulatory recommendations and paper on key steps to implement the reform.




regulation governing

charges for usage of

public resources, and

other para-fiscal charges and fees

Relevant supporting

documents for continuation and implementation of

para-fiscal charges and fees reform

Support establishment of a tool for comprehensive monitoring of the level of parafiscal impositions on businesses

Jan – Oct 2014

Tool for comprehensive

monitoring of the level of para-fiscal

impositions on businesses

BEP and NALED keep updating the register of non-tax and para-fiscal imposts. The latest update may be found via link: http://www.naled-serbia.org/en/page/63/Para-fiscal-registry

Conduct public consultations, outreach and communication activities to support

the continuation and implementation of regulatory reform of para-fiscal charges

and fees Mar – Nov 2014

Roundtables and other forms of

public consultations, outreach and

communication

Inputs for para-fiscal

charges and fees reform

Conference on para-fiscal fees and charges held; recommendations for reform presented to stakeholders and publicized. Communication with the businesses, public institutions and other stakeholders and outreach activities (partnership of BEP and NALED) is in progress.

3. Streamline

Construction

Assist development of sectoral laws needed for reform of construction permitting Jan – Apr 2014

Sectoral laws

amended to uphold

Provided technical assistance for harmonization of the Energy Law with the One Stop Shop concept resulting in

http://www.naled-serbia.org/en/page/63/Para-fiscal-registry






Permitting construction

permitting reform

adoption of the harmonized Energy Law in the National Parliament. Provided technical assistance and supported public-private dialogue within the framework of the National Parliament's Economy Caucus for harmonization of the Fire protection Law with the One Stop Shop concept. BEP is included in the working group that prepares the changes to the Law on State Survey and Cadaster, which is of critical importance for the proper implementation of the One Stop Shop Concept in practice.

Assist development of bylaws needed for implementation of the Law on Spatial Development and Construction (LSDC) and of sectoral laws

Jan-Jul 2014

Bylaws needed

implementation of

the

Law on Spatial

Development and

Construction

(LSDC)

and of sectoral laws

adopted

On the initiative of DPM and Minister of

Construction, Transport and

Infrastructure, BEP leads and

coordinates working group for bylaws

related with classification of

constructions, including the content of

project documentation per classes of

construction. BEP-coordinated working

group completed drafts of the two

bylaws and, together with NALED,

organized first public private dialogue

event on those two acts.

Participating in the working group

drafting bylaw on one–stop–shop

procedure.

Providing technical assistance to the

Standing Conference of Towns and

Municipalities in developing the Model




City Ordinance on Land development

Contribution that will be distributed to all

cities and municipalities in the country.

Train public officials and inform investors on the content of the reforms

Jan 2013 – Jan

2014

Training program for

public officials Manuals for

implementation of the

reformed permitting system and guides

for investors

BEP and NALED are including high

level Business Registry Agency (BRA)

representative in all discussions related

with functioning of the one stop shops

(BRA has an important role in

implementing the One Stop Shop

procedure).

Educate public on the importance of implementing the construction permits

reforms and on their expected impact

Feb-Nov 2014

Public discussions and media reports

on importance and

benefits of implementing

reforms

383 media reports (182 internet, 143

printed media, 57 TV videos, plus radio)

Develop hardware and software requirements for e-Permitting

Apr – Sep

2014

Hardware and software

requirements for e-

Permitting

developed

Web Based Inventory of Spatial and Urban Planning Documents almost completed and will be operational in January 2015, with the data being entered continually afterwards. Developing functional and technical specification for e-permitting IT system. Technical specification should be completed around February 1, 2015. The system is expected to be functional by the end 2015, and will be financed by GIZ ORF, and possibly WB.

Support coordination mechanisms and activities for implementation of the

construction permitting reform Jan – Dec

2014

Effective coordination

mechanisms for

Organized a retreat to facilitate completion of the Draft Law on Planning and Construction (LPC).




implementation of the

construction permitting reform

After LPC was sent to the inter-ministerial review, BEP helped the ministry to review the official opinions and incorporate acceptable proposals. After GoS approved LPC, BEP helped the Ministry review 188 collected amendments. BEP and NALED presented the Draft to members of the National Assembly’s Caucus for Economy. On December 8, National Parliament voted and adopted the LPC.

Monitor implementation of the construction permitting reform and help define and implement needed adjustments

Mar – Dec

2014

Adjustments to the contraction permitting

system

implemented

This activity will be implemented in

2015.

4. Reduce the

employing workers

burden

Train stakeholders on new labor legislation

Jan – Apr

2014

Training and

materials

BEP and Ministry of Labor, Employment and Social Policy (MLEVSI) organized “Education Caravan” throughout Serbia to present and help interpreting novelties in the Labor Law. At 12 events, in 11 cities, more than 1600 participants were trained. BEP, MLEVSI and Labor Inspectorate worked with about 40 heads of regional Labor Inspection Centers to finalize the methodology for uniform inspectors’ surveillances.

Facilitate dialogue between business associations, trade unions and Ministry of

Labor and Social Policy on reform of labor legislation and regulations

Jan – Dec

2014

Meetings / Meeting Reports on

agreements and outstanding issues

Activity is completed.




- Roundtables and/or

thematic discussions

/ Summaries and conclusions

- Analyses and researches with

special reference to the best

international practices, EU

directives and ILO conventions /

Research papers and

Assessments

Organize outreach campaign and public-private dialogue to inform decision makers, stakeholders and general public about the impact of current policy

environment and expected outcomes of proposed reforms Jan – Dec

2014

Public discussions - Outreach campaign

(traditional media,

Ask When

campaign)

Final Labor event was held on December 2nd, where Minister of Labor and BEP COP presented results of USAID BEP’s and MLEVSI joint activities in two previous years.

Provide technical assistance for legal drafting related with labor legislation Jan - Dec 2014

Drafting Labor Law and other supporting documents

(explanations, harmonization

tables, RIA, Models of

Employer’s Rule Book and other

relevant documents

Activity is completed.




for businesses of different sizes) - Study tour in

Croatia

Objective 2: Business effectively partners with Government in developing and implementing regulatory reforms

1. Improve Public-

Private Dialogue

Develop mechanisms for monitoring and evaluation of Government’s

policies and their delivery, including the inclusiveness and transparency of

policy making. Jan – Oct 2013

Mechanisms for

monitoring and

evaluation of

Government’s

policies and their

delivery developed

Activity completed in Q3.

Conduct Annual Business Survey continuing the practice started in Year 1

Jun – Nov 2013 Annual Business

Survey report

Presented Business Survey 2014

results on November 21. Event drew

more than 120 attendees from the

Government of Serbia, individual

government authorities, business

associations, and other donors. More

than 30 media representatives reported

on the event, resulting in over 90

favorable media reports.

Organize PPD events as forums for discussion between the Government

and businesses on improvement of business environment.

Jan 2013 – Jan

2014 PPD events

15 PPD events held in Q4:

6 educative caravans on Labor Law, 1

event on para–fiscal charges, 7

meetings of the working group on

bylaws for classification of

constructions, Business Survey 2014

event, and Final event for Labor Law

reform.




2. Implement

regulatory

reforms

Select three to five most costly administrative impediments for doing

business in Serbia as identified in the BEP SCM study, Ministry of Economy

Draft Action Plan for Improvement of Business Environment, NALED's Grey

Book, GoS Comprehensive Regulatory Reform project and other relevant

analyses Jan – Mar 2014

List of three to five most costly

administrative impediments for

doing business in Serbia whose

reform is feasible without major legislative

changes


Provide technical assistance to develop regulatory changes to address the

most costly administrative burdens

Feb – Jun

2014

Texts of proposed

legal interventions

related with

selected

administrative

impediments

Activity stopped due to the lack of GoS commitment.

Provide limited management capacity building assistance for

implementation of selected improvements to the business environment

Mar – Dec

2014

Trainings for

implementation of

regulatory changes

BEP and MLEVSI helped Labor

Inspectorate to gather around 40 heads

of regional Labor Inspection Centers

and finalize the methodology, in order

to uniform inspectors’ surveillances.

Plan for Implementation of LPC and

related legislation will be developed

activity will be conducted in Q1 2015.

Trainings for implementation of the Law

on Inspection Oversight will be

organized after the Law is adopted in

Parliament.

Communicate to the general public and stakeholders potential and realized

savings based on activities related with reducing the administrative burden Mar – Dec

2014

Media reports on

benefits of





of

doing business in Serbia

implementing

reforms

Component 2: Macroeconomic Policy and Public Financial

Management


Objective 1: Improve GoS budgeting, fiscal policy analysis, and financial management efficiency

1. Capacity building

assistance to the

Fiscal Council and

Improvements to

fiscal responsibility

Technical assistance with development of selected fiscal multipliers to improve the government’s ability to assess the economic growth impact of various policies and meet EU standards on fiscal analysis. Jan-Apr

Econometric analysis

Advisory Brief on Multipliers

Completed activity in Q2: developed, presented, and delivered the fiscal multipliers to FC members.

2. Improvements to MoF Fiscal Analysis and Strategy

Technical assistance to the MFD to develop and utilize a Bridge Model to strengthen macroeconomic and fiscal forecast and analyses and support fiscal policy-making.

Sept-Dec

Bridge Model,

Training, Training Materials and

Guidelines

Activity has been put on hold due to reduced capacity of the MFD staff to participate in development of BRIDGE model, and stronger focus of department on utilization of DSGE model.

Continuation of the grant funded technical assistance for implementation and sustainable use of the DSGE model

Jan - July

DSGE Model,

Training, Training Materials and

Guidelines

BEP and MFD team improved the QUEST_Serbia model with the new statistical data for the Y14Q3.

Agreed with grantee BELOX and MFD team to present and discuss the model and its outputs with the FC members in second part of January.

Further training on using the fiscal multipliers being developed by the Fiscal Council. (This will overlap with support to FC)

Jan-Mar Econometric

analysis, Activity completed in Q2..



Management


Advisory Brief on Multipliers

Support to MoF to institutionalize the Citizen’s Guide to the Budget.

Feb- July

Training and

guidance on preparation of CG

Citizen’s Guide was finalized in March, but for various reasons it has not yet been published by the MOF.

3.Assistance to the GoS and Parliament to improving budget coordination and performance management

Technical training series for the Parliamentary Finance Committee on specific program budgeting issues; general training to all other parliamentary committees on program budgeting

March - Dec

Training and Training Materials

Advisory Notes

BEP and the MoF presented the 2015 program budget structure model during a session of the Parliamentary Committee on Finance, State Budget, and Control of Public Spending. Over 30 MPs that were present learned about the new budget concept prior to 2015 Budget Law entering parliamentary procedure.

Continuation of technical briefings on new business and financial sector legislation prepared with BEP assistance (e.g. inspections, construction permitting, labor, factoring, leasing, commodity exchange, brokerage capital requirements, etc.)

Depends on when laws get submitted

Worked with the new NA Economic Caucus to discuss and amend the Law on Planning and Construction and conversion of the right to use to ownership right. The NA adopted 15 amendments to the LPC proposed by the Economic Caucus. BEP and the Caucus also discussed the Draft Law on Inspection Oversight and Draft Energy Law. Economic Caucus was founded by 12 MPs from 8 political parties. They will work on the improvement of business environment in Serbia through advocacy of institutional reform alongside with businesses, municipalities, civil society organizations and citizens. BEP participated in the Economy Caucus hearing on harmonization of the Bill on



Management


Fire Protection with the reformed construction permitting procedure.

4. Assist the MoF Budget Department to develop capacity for improved transparency and program budgeting

Technical support to GoS budget users to implement program budgeting (including the Provincial Government of Vojvodina)

Jan - Oct

Action Plan


Advisory Notes

Assembly of the APV adopted an APV

budget that is in compliance with

program budget model. This was

enabled through USAID BEP’s technical

assistance (training and advisory) to the

Province Secretariat for Finance (PSF)

and all of 34 APV budget beneficiaries.

GoS 2015 Budget Bill, which introduces

the program budgeting model, was

adopted by the National Assembly.

Minister Vujovic has said this Bill for the

first time provides for full transparency

of all transactions. By conducting this

reform, all 173 direct budget

beneficiaries established their financial

plans in the form of programs, program

activities, and projects.

Assistance to the MoF in developing technical specifications and, if needed, arranging financing for a new budget preparation IT system.

Feb-Apr Advisory Notes

Facilitated a three-day training for the MoF and budget beneficiaries on new budget preparation software (BPS). 15 analysts of the MoF’s Budget



Management


Department were successfully trained to use BPS to analyze budget beneficiaries’ financial plansand to prepare the Budget Proposal for consideration by the Government and Parliament. In the second phase of training, 180 participants from all direct budget beneficiaries were trained to use the software in preparing 2015 financial plan proposals.

Assistance to the SCTM and other projects in aligning the local government program budgeting framework to the central level framework.

Apr - Dec Advisory Notes

Participated in NALED training on strengthening good governance at local level focusing on the preparation and introduction of program budgeting. BEP presented the main reasons for the introduction of program budgeting at the local government level, as well as its importance in facilitating compliance with EU principles and increasing budget transparency. The presentation was followed by hands-on training on how to apply the program budgeting model to the Cities’ of Nis and Pancevo 2015 budget.

Assistance to the MoF Budget Department in developing a reporting framework and process for monitoring budget execution and training to budget users on the framework

Apr - Dec


Advisory Notes

Activity planned from January 2015

Assistance to the Treasury Department in modifying reporting procedures for budget monitoring and in developing new technical specifications for upgrading the FIMIS (budget execution monitoring system) to be capable with the new program budget format.

Sept - Dec Advisory Notes

Activity planned from January 2015

Further assistance to the MoF management in strategic communications and in managing the reform process.

Feb – June

Action Plan

Advisory Notes

PR materials

Ongoing consultations with MoF management.



Management


5. Assistance to integrate program budgeting and performance management into national strategic planning

Technical input and coordination assistance to the General Secretariat and other stakeholders (SEIO, Office of Prime Minister) in integrating the program budgeting process with national strategic planning process.

March - Dec Advisory Notes

Participated in the introductory meeting of the Center of Government Working Group, which is made up of representatives of the Ministry of Finance, Serbian European Integration Office, Government General Secretariat, Legislation Secretariat, E-Government Directorate, and Public Policy Secretariat (PPS). The Working Group agreed to develop new integral methodology for planning and budgeting (including IPA programing); formalization of the content of all relevant documents; and integration of medium-term institutional plans with program budget structures. To ensure the Working Group can reach optimal solutions as quickly as possible, BEP (with EU project) will help organize a three-day retreat for the Working Group’s next meeting in early February.

Regional study tour for high-level GoS officials in program budgeting and its use in strategic planning

Sept - Dec Activity planned from April 2015

Consultations with stakeholders, such as the parliamentary Finance Committee, NGOs, expert and donor community, and policymakers

All year Ongoing

Objective 2: Improve public debt management and conditions for government financing

1. Improving conditions

for public investment

in and trading of

government debt

See Component 3, Objective 3

Activity to be started once the new Government is established.

2. Assistance to

improve debt

Continued support for testing a potentially new software Commonwealth Secretariat Debt Recording and Management (DMRS)

March - June Advisory Report

Continued support for testing a potentially new software Commonwealth Secretariat Debt



Management


management

systems, reporting,

analysis, and

capacity

Recording and Management (DMRS)

Technical assistance on Strategy for public debt and risk management information system development to increase efficiency and effectiveness of PDA combined with a substantial reduction of the operational risks.

March -Dec Draft Strategy

Testing a potentially new software Commonwealth Secretariat Debt Recording and Management (DMRS)

Objective 3: Improve macroeconomic policy, strategy, and analysis

1. Tactical Assistance

to advance the GoS

macroeconomic

strategy

Advocacy and outreach on the results of the Shadow Economy Study. (In cooperation with NALED.)

Jan-Dec 2014 Outreach

Communication with the inspections, business associations and other stakeholders and joint outreach campaign (BEP and NALED) is in progress.



Objective 1: Strengthening capital markets2

1. Assistance to build

supervision capacity

of Securities

Commission (SC)

Further capacity building assistance to streamline supervisory practices and improve resource management through effective use of the new IT system supported by the Project.

Feb – Jun

Training Training Materials

Consultations RBS Inspection

Manual for brokerages

Ongoing. See Task 2.

2 Objective completed: Based on the Ministry of Finance (MoF) request, BEP provided technical assistance in harmonizing capital markets laws and regulation. The activity included drafting amendments to three core laws governing the securities market: Capital Market Law, Takeover Law and Company. The amendments were drafted at the request of the MoF, and the conclusions of the MoFs working group that included relevant ministries and other capital market stakeholders (industry, market participants, and donors including BEP). The drafting process included areas of highest importance that raised the greatest controversy both among the business community and regulators, such as: determining market price of illiquid shares; buyout and sellout; pledge on securities; debt-to-equity swaps, etc. More than 120 articles were modified to ensure that the provisions were mutually compliant and in line with EU regulations and best practice. The MoF will distribute the draft amendments to the stakeholders for comments and review. Following any modifications based on feedback received, the final Draft will be submitted to the GoS and the Parliament for adoption.




2. Improve disclosure of

information in

compliance with the

legal requirements

and best international

practice

Continued support for development and implementation of a new web-based information disclosure system for the Securities Commission

Oct 2013 – June 2014

Document Management and Public Register

System

Official Register of Information

Report on Development of

Document

Management and Public Register

System for the SC

IT procedural training and training

materials

Finalizing the Document Management and Public Register System and getting

it ready for final roll out. Final polishing of the system. Started training of SC staff to use the system. Once the training is finalized and user manuals have been completed the Securities

Commission shall overtake the application.

Objective 2: Strengthen enabling environment for commodity exchange

1. Assistance in

development of legal

framework and

strengthening

enabling environment

for commodity

exchange

Provide technical assistance in reviewing and finalizing the Commodity Exchange Law and relevant bylaws for the law

March - Dec Draft Commodity Exchange Law and

bylaws

After receiving the official opinions from different ministries regarding draft Commodity Exchange Law, MoTTT finalized procedure and submitted the draft to the GoS. The GoS adopted draft and passed it to the Parliament for adoption. However, MoTTT withdrew the draft from the Parliament for unclear reasons.




Training to the SC and other main stakeholders on oversight and clearing at the contemporary commodity exchange.

April- Dec Workshops

Training material

Study Tour

Media coverage

Activity to begin after the law is adopted.

Objective 3: Improve GoS access to finance through development of a long-term, liquid public debt market

1. Improving conditions

for public investment

in and trading of

government debt.

Technical assistance to develop Framework for Developing Domestic Markets for Government Securities to build demand for dinar denominated debt from a wider investor base

March -Dec Draft Strategy

No activity due to insufficient capacity of Public Debt Administration to implement and absorb activity.

Objective 4: Improving access to finance for small and medium enterprises and entrepreneurs

1. Assistance in

development

and

implementation

of access to

finance related

laws

Support and facilitate reform of the leasing regulation to make it more competitive with international standards, including assistance to MoF in making selected amendments (if needed).

Jan - August White Paper

Roundtables

Working Group meetings

Consultations

Draft amendments

Public outreach

Leasing White Paper delivered to

MoF. Awaiting official reply from the MoF on establishing a working group for resolving all identified issues from the White Paper.

BEP analysis and advocacy led NBS to amend the Law on Insurance, so now leasing companies can act as insurance agents. Other identified issues related to the NBS leasing regulation will be discussed in Q1 of 2015.

Advocacy and assistance for development of a regulatory framework for non-bank credit institutions followed by capacity building and outreach.

Jan – Dec Advisory notes Consultations Roundtable(s)

The MoF has agreed to establish the official Working Group tasked with drafting the legislation necessary for the operation of these institutions. NBS has not agreed yet and BEP and MoF




Draft law Training materials Media coverage

will meet with the NBS on this subject in the second half of January. BEP continues to advocate for the development of the regulatory framework for non-bank financing institutions (NBFIs).

2. Assistance to

the MoE for

implementation

of “White

Paper”

recommendatio

ns on access

to finance

Technical advice and assistance to the MoE in prioritizing and implementing selected recommendations from BEP White Paper on Access to Finance.

All year

Advisory notes

Draft Action Plan

Helped MoE finalize the SMEs Development Strategy 2015-2020 and Action Plan for SMEs Development Strategy. GoS expected to adopt Strategy by the end January 2015.

Assistance to MoE/NBS in establishing efficient information collection and dissemination mechanism, including defining information that should be collected in order to improve access to finance for SMEs

January - October Consultations

Advisory brief on information parameters

Additional indicators

The results of the BEP Survey for 2014 have been sent to the NBS to use for OECD data assessment. The NBS will start collecting information about SME financing from banks from 2015, which is in line with the recommendations from BEP’s access to finance white paper.

Provide assistance in improving of dissemination of all information on SMEs’ financing, including SMEs’ state support programs.

January – July Web portal

Public outreach

Roundtables

Media coverage

Development of the business web portal is in the final stage. Established sustainable mechanism for relevant data collection with all financial institutions and timely information on possible sources of financing will be available on the portal. The launch of the portal is expected in January, which will be followed by promotion.

3. Assistance to

improve state

aid efficiency,

monitoring and

transparency

Assistance in evaluation of state aid financing program, possible re-designing or restructuring selected state programs

All year Diagnostic of state support mechanism

Targeted on-going advisory

Agreed on cooperation between BEP and the World Bank to analyze State aid with a view to reorganizing it and ensuring more efficient use of public funds earmarked for incentivizing growth. BEP will be in charge for the




Programs design

operational and design issues of the State support programs.

4. Assistance to

strengthen

professional

services

supporting

access to

finance

Assist the NBS to increase the quality of and set the standards for collateral valuation.

Feb – Nov Technical report Draft bylaw Draft training materials and curricula

Finalized the final draft of the National Standards for Property Valuation, and the draft of the Valuers Law. Law is planned to be adopted in Q1 2015.

Assist the increase of quality and proper use of accounting for micro and SMEs

April – June 2014 Training and consultations

Roundtables

Legal drafting

Advisory notes

Workshops

Finalized manual and all production work (video links and video training). In mid-November grantee presented the materials at the roundtable in Belgrade.

Developing detailed PR and outreach strategy. All materials will be publicly available to all firms in Serbia. The outreach and road show will start in February.

5. Strengthen the

capacity of

business

associations to

improve

access to

finance

Strengthen the capacity of bankers and business associations to advocate for reforms, focusing on access to finance.

February – June 2014

Training and consultations

Roundtables

Workshops

Organized second roundtable with banks’ top management. Final report from this event and the grant submitted.

Based on work done and recommendations made BEP included specific activities in Year 5 to increase bank lending to SMEs.

Explore opportunities to develop value chain finance

Apr- December Training and consultations

Advisory notes

Media coverage

No activities.




6. Strengthen In-

Court and Out

of Court Credit

Enforcement

Improve the collateral regulatory framework to enable efficient enforcement, particularly out-of court enforcement

Jan - Dec Identify and prioritize the changes in collateral regulatory legislation Draft amendments to a set of collateral related laws

Reviewed Draft Amendments to the Mortgage Law and provided comments and suggestions. Provided language for the amendments that will enable out-of-court mortgage enforcement which was constrained over the past several years by the vague language of the current Mortgage Law and its inappropriate interpretation by the RGA. Amendments were released for public consultation.

Assist in continued improvements to implementation of in-court enforcement

Jan-Dec Coordinate with GIZ Project on assistance in implementation of the Enforcement law

Organized event with more than 20 senior bankers from leading domestic banks and six PEOs with hands-on experience, along with the Chamber of Professional Enforcement Officers (PEO) and Association of Serbian Banks. Banks and PEOs agreed on several initial steps to increase banks’ use of PEOs: coordinating work in improving PEOs tariffs to make sure they fit clients’ needs; exchanging data, statistics, and case studies describing successful cooperation; and organizing training on banking activities and business models for PEOs.

Conducted series of consultations and roundtables with the key stakeholders (Chamber of Professional Enforcement Officer, Association of Serbian Banks, bankers, etc.) to discuss and design the




possible options for assisting the implementation of Enforcement Law and the profession of PEOs.

7. Support

financial

system stability

reform

Support reform in order to improve management of financial stability to ensure stable financial system, strengthen confidence in the banking system, and increase the responsibility of all participants in the financial markets.

All year Identify and prioritize the changes in legislation

Draft amendments and recommendations

Conducted an assessment of the existing legal framework and assisted in drafting legislation to implement the Financial Stability and Cooperation Agreement, which sets out all of the relevant measures the GoS needs to take to promote stability in the event of an economic shock.

Participated in series of consultation meetings with the MoF and IMF related to compliance of proposed solutions by IMF with legal framework in the Republic of Serbia.


ATTACHMENT 4: PROGRESS VERSUS PERFORMANCE MONITORING PLAN

Project

Results /

Objectives

Indicators Measurement

Unit

Data

Collection Method

Schedule of

Collection Baseline

Targets Years

1-5

Status Q4

Mission Assistance Objective: Create A More Competitive Market Economy

IR 1.1:

Business

Enabling

Environmen

t Improved

Decrease in the

"Burden of

Government

Regulations"

addressing

Government

Inefficiency

Numeric Value WEF GCI Reports Annual 2011: 2.34

Yr 1: 2.34

Yr 2: 2.34

Yr 3: 2.44

Yr 4: 2.57

Yr 5 : 2.71

2.2 by the WEF GCI published in

September 2014

Sub-IR

1.1.1:More

Effective

Business

Regulation

Decrease in costs

for businesses to

comply with

regulatory

framework

Numeric Value Standard Cost

Modeling (SCM)

Annual 2011 Total

Administrative

Cost: RSD 124.6

billion (4.2% of

GDP)

Yr3: Total Administrative cost

decreased by RSD 4 billion plus

inflation (3.2% reduction)

Yr5: Total Administrative burden

decreased cumulatively by RSD 10

billion plus inflation (8% reduction

plus inflation)

3.6

IR 1.4:

Macroecono

mic

Environmen

t Improved

Increase in Foreign

Direct Investment

Numeric Value National Bank of

Serbia (NBS)

Annual 2010: 3.07%

GDP

Yr1: FDI at 3.3% of GDP

Yr2: FDI at 3.3% of GDP

Yr3: FDI at 4% of GDP

Yr4: FDI at 5% of GDP

Yr 5: FDI at 6% of GDP

Net FDI / GDP for 2013 = 2 % MoF Table

on Basic macroeconomic indicators,

updated March 20, 2013

No data available in Q4


3 Projected deficits by Fiscal council for 2013, 2014, 2015

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

2012: 39

Reason for this score: No longer

producing a Pre-Budget Statement, and

publishes a less comprehensive

Executive’s Budget Proposal.

Improved

Government

Budget Balance as

percentage of GDP

Numeric Value MoF Annual 2010: -4.4 %

(actual fiscal

deficit)

Yr1: -4.5% of GDP

Yr2: -4.5% of GDP

Yr3: -3.5% of GDP3

Yr4: -1.9% of GDP

Yr5: -1.0 % of GDP

-6.1 % of GDP -2014-estimated by MoF

Sub-IR

1.4.2:

Financial

Markets

Developed

Improved score in

WEF GCI

"Financial Market

Development"

(formerly

‘Sophistication)"

The VIII WEF GCI

Pillar

Numeric Value WEF GCI reports Annual 2011: 3.74 Yr1: 3.74

Yr2: 3.80

Yr3: 3.84

Yr4: 3.88

Yr5: 3.92

3.5 by the new WEF GCI published in

September 2014

Credit to private

sector as a

percentage of GDP

Numeric Value National Bank of

Serbia (NBS)

Annual 2010: 40% Yr 5: 60% 2012: 31%

2013: 25,7%

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

65+75+234+152

2014: 526

Component 1: Business Regulation and Economic Governance Improved


4 Project will end 3 months into the 2016 fiscal year. 5 This refers to the annual BEP Survey of Serbian Businesses.

1. Improve

and

streamline

business

regulation

lowering the

costs to

businesses

and

government

from

business

regulations

Number of

commercial laws

and regulations

simplified and

implemented in

accordance with

international

standards as a

result of USG

assistance

Numeric Value Project Reports Annual 2011: 3 2011: 3

2012: 10

2013: 10

2014: 10

2015: 10

2016: 34

5

Average time spent

by management on

working with

inspections

Numeric Value Business Survey5

Annual 59 hours Yr. 2: 58

Yr. 3: 55

Yr. 4: 50

Yr. 5: 45

Yr4: 12 hours

Number of

Professional

Enforcement

Officers trained,

passed the exam,

and ready to get

appointed

Numeric Value MoJ Data Annual N/A Yr 2: 300 Activity completed successfully.

Number of days to

enforce a judgment

Numeric Value World Bank Doing

Business Report

Annual 2011: 635

Yr 3: 530

Yr 4: 475

Yr 5: 417

By WB DB Report published in October

2015 Serbian result is 635 days

Number of days

dealing with

constructions

permits

Numeric Value World Bank Doing

Business Report

Annual 2011: 279 Yr 5: 220 By WB DB Report published in October

2015 Serbian result is 264 days


Business

perception of the

burden of laws and

regulations

improves

Qualitative Business Survey

Annual 2011: 17% agree

that there was

improvement

Yr. 2: 18%

Yr. 3: 20%

Yr. 4: 24%

Yr. 5: 28%

Yr4: 53.3% agree that there was

improvement

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

Six significant changes to the status of

the recommendations in the White Book

2014

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%

Yr4: 78.8%

2.Business

effectively

partners with

Government

in developing

and

implementing

regulatory

reforms

Increase in business sector participation on laws improving regulatory environment

Qualitative Business Survey Annual 2011: 19% of

businesses

agree that there

was

improvement

Yr 2 : 21%

Yr. 3: 25%

Yr. 4: 28%

Yr. 5: 32%

Yr4: 52.6%

Number of public

private dialogue

mechanisms/

events on business

regulation issues

created by the

project

Numeric Value Project Reports Annual N/A Yr1: 3

Yr2: 5

Yr3: 5

Yr4: 5

Yr5: 2

5+7+23+16 Yr4: 51


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

Yr 4: 25

Yr 5: 30

Activity completed

11

Business

perception of

transparency and

predictability

increases

Qualitative Business Survey Annual 2010: 23% agree

that

transparency

and predictability

increased

Yr. 2: 25%

Yr. 3: 28%

Yr. 4: 32%

Yr. 5: 35%

Yr4:55.3%

5. Improve

corporate

governance

standards,

policies and

regulations

Improvement in

Doing Business

Strength of Investor

protection Index

Qualitative World Bank Doing

Business

Annual 2011: 5.3 2012: 5.3;

2013: 6;

2014: 6.5;

2015: 7

By WB DB Report published in October

2015 Serbia has a score of 6.3

Number of

Commercial Court

judges trained in

implementation of

the Company Law

Numeric Value Project Reports Quarterly N/A Yr 1: 20 We don’t have a target for Year 3

6. 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

Activity completed


Completion of regulatory framework (bylaws and methodologies) for PPP

Qualitative Project records Annual Nonexistence of

complete

normative

framework

(bylaws and

methodologies)

for PPP

Yr2.: 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

Activity completed

Component 2: Macroeconomic Policy and Public Financial Management Enhanced

1. Improve

GoS

budgeting,

fiscal policy

analysis, and

financial

management

efficiency

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

Yr2: FSR contains estimates of

structural deficit

Yr3: FSR contains estimates on

tax expenditures

Yr 4: Budgets among ministries

better reflect their strategic

priorities.

FSR contains estimates of structural

deficit

PEFA Multi- Year

Score perspective

in fiscal planning ,

expenditure policy

and budgeting

Qualitative PEFA Assessment

(due Nov 2013)

Annual/ Results

published every 3

years

2010: Scored C Yr 5: Score B The 2013 PEFA Assessment scheduled

for November 2013. – Delayed

PEFA Assessment

Score on

predictability in the

availability of funds

for government

expenditures

Qualitative PEFA Assessment

(due Nov 2013)

Annual/ Results

published every 3

years

2010: Scored C+ Yr 5: Score B The 2013 PEFA Assessment scheduled

for November 2013.- Delayed

Number of articles

published in the

area of fiscal policy

Numeric Value Project Report Monthly N/A Yr 1: 2

Yr 2: 3

Yr 3: 3

No more activities planned for this

indicator


6 The new indicator “Number of activities related to macroeconomic and fiscal issues aimed at improving public-private dialogue” replaces the indicator “Quality of public

dialogue and debate on macroeconomic and fiscal issues.” The new indicator is a more objective and attributable measurement of the project’s work to achieve this

Objective.

containing research

and analysis

provided through

BEP assistance

that support

changes in fiscal

policy

Yr 4: 2

Yr 5: 2

Number of

activities related to

macroeconomic

and fiscal issues

aimed at improving

public-private

dialogue6

Numeric Value Project Report

Annual N/A Yr 1: 2

Yr 2: 3

Yr 3: 4

Yr 4: 4

Yr 5: 3

0

2. Improve

public debt

management

and

conditions for

Government

financing

Value of dinar

denominated debt

Numeric Value PDA (Public Debt

Administration)

Annual 2010: Value of

dinar debt is

14% of total

borrowing

Yr 5: Proportion of borrowing

increases to 20%

April 2014: 21,4%

Government

initiates a public

issue of debt to

more diversified

investor base

Qualitative PDA (Public Debt

Administration) ad

hoc report

Annual Baseline end of

March 2011

according to

PDA: Banks own

87,1% on

31.03.2011

Yr 5: Banks own 75% or less of

government debt in dinars

53.6%

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 3: 6 reports;

Yr 4: 8 reports;

Yr 5: 10 reports.

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

macroecono

mic policy

and strategy

Improvements in

WEF GCI on

"Macroeconomic

Environment"

addressing

Nation’s Savings

Rate, as % of GDP

Numeric value WEF GCI reports Annual 2011: 14.8 Yr 5: 18 11.5 by the new WEF GCI published in

September 2014

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 Yr1: 2

Yr2: 5

Yr3: 8

Yr4: 8

Yr5: 6

1

Awareness of

Government’s

Economic Growth

Strategy


businesses

agreed that they

have some

awareness and

understanding of

the strategy

Yr. 2: 20%

Yr. 3: 25%

Yr. 4: 30%

Yr. 5: 35%

Yr4: 62.8%

Number of person

hours of training of

GoS staff on

macroeconomic

policy and public

financial

Numeric Value Project Reports Annual N/A Yr1: 500

Yr2: 1000

Yr3: 1000

Yr4: 750

Yr5: 300

1200+745+420+490

Yr4:2855


management topics

Component 3: Increased Financial Market Development

1.Increase

capital

available to

business

through the

creation of a

regulatory

framework

for NBFIs

Value of credit

financed from

NBFI’s to

businesses

increases

Numeric NBS Publications,

Stock Market, and

Securities

Commission Reports

Annual EUR 1.388 bn Yr.1: 0

Yr.2: 0

Yr.3: 5%

Yr.4: 10%

Yr.5: 10%

EUR 2013: 1.247 bn

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

Draft Law adopted by the GoS and

currently in the Parliament for adoption.

2.Strengthen

integrity of

the capital

markets by

helping the

GoS to build

capacity to

ensure equity

issuers and

brokers

comply with

securities

laws

Number of

intermediaries

trained and advised

about upcoming

securities laws

Quantitative Securities

Commission and

Project Report

Annual Majority of

intermediaries

trained and

advised

Yr 1 to Yr 4: Will depend on the

speed of implementation of new

law and agreement with Securities

Commission and MoF

Yr5: 75% of intermediaries trained

and advised on changes and

benefits brought by new securities

laws

Activity completed


3. Improve

the GoS′

access to

finance

through the

development

of long term,

liquid debt

public 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%

2013: 18.7%

Government

initiates a public

issue of debt to

more diversified

investor base

Qualitative PDA (Public Debt

Administration) ad

hoc report

Annual Baseline end of

March 2011:

Banks own

87,1% of debt

(3/31/11)

Yr 5: Banks own 75% or less of

government debt in dinars

2013: 53.6%

4.

Strengthened

public-private

dialogue on

the financial

sector and its

role in

economic

development

Increased

awareness of the

role of the financial

sector in economic

development

Qualitative Project Survey

(a.k.a. BEP Business

Survey)

Annual Around 25% of

businesses

expressed a sort

of an agreement

that there is

awareness

Yr 5: 50% increase in awareness Yr4:91.6%

5. Strengthen

the

disclosure

and

transparency

supporting

new

investment

by assisting

the GoS to

implement

required

accounting,

audit and

Compliance with

IOSCO standards

in areas of

securities

intermediaries and

equity issuance

improves

Qualitative/

Numeric Value

Project and IOSCO

Reports

Bi-Annual 50%

Yr 5: Compliance improves to 60%

or better

New Capital Market Law Regulations is

expected to raise compliance level above

60%. Next IOSCO assessment in 2015.


disclosure

standards

6. Improved

access to

finance for

SMEs

Improved access to

finance


businesses

agree that

access to

finance has

improved

Yr. 3: 30%

Yr. 5: 35%

Yr4:47.8%

Increase in

average value of

loan size and

borrowing by

SME’s7

Qualitative/

numeric

Project Survey

(BEP Business

Survey

Annual 2011: 89,475

EUR

Yr.2.: 0 % points increase from

baseline

Yr.3.: 10 % point increase



Yr4: 36,002 EUR


ATTACHMENT 5: BEP GRANTS UPDATE

BEP GRANTS UPDATE

31 December-14

Solicitation Date of

Issue Project Grantee Amount USD Amount RSD Status

unsolicited proposal Quarterly Monitor 24

FREN - Foundation for the Advancement of

Economics

28,417 2,099,993 paid

unsolicited proposal

Business Leaders' Summit

SAM - Serbian Association of Managers - - rejected

TOTAL

28,417 2,099,993

RFA Project Grantee Amount USD Amount RSD Status

RFA-2011-01 15-Jun-11 Business Survey CeSID - Center for Free

Elections and Democracy

18,502 1,401,600 paid

RFA-2011-01 Business Survey GfK Belgrade - - rejected

RFA-2011-01 Business Survey Cromer Group - - rejected

RFA-2011-02 15-Jul-11 Quasi Fiscal Charges

NALED - National Alliance for Local Economic

Development

18,000 1,400,000 paid

RFA-2011-02 Quasi Fiscal Charges BDO Business Advisory - - rejected


RFA-2011-03 25-Jul-11 Econometric Assistance

FREN - Foundation for the Advancement of

Economics

36,300 2,828,300 paid

RFA-2011-04 20-Sep-11 Construction Permits MP and Associates 20,700 1,614,000 paid

RFA-2011-04 Construction Permits

ACES - Association of Consulting Engineers of

Serbia - - rejected

RFA-2011-04 Construction Permits City of Novi Sad - - rejected

RFA-2011-04 Construction Permits EC Harris d.o.o - - rejected

RFA-2011-05 30-Sep-11 Journalist Education CLDS - Center for Liberal

Democratic Studies

15,000 1,175,000 paid

RFA-2011-05 Journalist Education BIG - Business Info Group

d.o.o. - - rejected

RFA-2011-05 Journalist Education BIRN - Balkan Investigative

Network in Serbia - - rejected

RFA-2011-06 5-Oct-11 Private Domestic

Savings CLDS - Center for Liberal

Democratic Studies - - withdrawn

RFA-2011-07 12-Dec-11 Training of Judges on

Company Law Balkan Center for

Regulatory Reform (BCRR)

21,000 1,675,000 paid (modification 1)

RFA-2011-06-R 27-Dec-11

Private Domestic Savings - 23,000 1,850,000 No applications were submitted

RFA-2011-06-R2 16-Jan-12

Private Domestic Savings

Foundation for the Advancement of

Economics (FREN) - - rejected

RFA-2011-06-R2 16-Jan-12

Private Domestic Savings BDO Business Advisory LLC - - rejected

RFA-2011-06-R2 16-Jan-12

Private Domestic Savings

CLDS - Center for Liberal Democratic Studies 22,230 1,840,000 paid

RFA-2011-01-F Follow-on

Business Survey Follow-up Data

Analysis CeSID - Center for Free

Elections and Democracy 4,513 370,000 paid


RFA-2012-01 14-Feb-12

Organization of the Forum on Capital Market in Serbia

BeoImpigra, Ltd.

- - rejected

RFA-2012-01 14-Feb-12 Organization of the Forum on Capital Market in Serbia

AVENTo d.o.o

- - rejected


EDGE Ltd. Belgrade

- - rejected


BLUEWATERS YU d.o.o.

- - rejected


Represent Communications

- - rejected


Chapter 4 Communications

Consulting 19,980 1,697,180 paid

RFA-2012-02 28-March-12

Study and recommendations on

policies to increase employment and

workforce competitiveness

Center for Liberal – Democratic Studies - -

paid

RFA-2012-02 28-March-12


Faculty of Economics, Finance and

- - rejected




Administration, Singidunum University (FEFA)

RFA-2012-02 28-March-12




Joksovic, Stojanovic & Partners Law Office - -

rejected

RFA-2012-02 28-March-12




Foundation for the Advancement of Economics (FREN) - -

rejected

RFA-2012-03 18-Apr-12

Project of Creating and Executing PR/Outreach

Campaign Bluewaters YU LLC - -

rejected

RFA-2012-03 18-Apr-12

Project of Creating and Executing PR/Outreach Kovacic&Spaic - -

rejected

RFA-2012-03 18-Apr-12


Represent

Communications

84,342

Paid (modification 1 and 2)


RFA-2012-03 18-Apr-12


Chapter 4 Communications

Consulting - - rejected

RFA-2012-03 18-Apr-12


Executive Group d.o.o. Beograd

- - rejected

RFA-2012-03 18-Apr-12


Conference Republic d.o.o.

- - rejected

RFA-2012-03 18-Apr-12

Project of Creating and Executing PR/Outreach Cromer Group ltd. - -

rejected

RFA-2012-03 18-Apr-12


MC 2 Public Affairs (Milosevic Creative Communications) - -

rejected

RFA-2012-04 26-Apr-12

Strengthening Regulation,

Management, and Effectiveness of State

Aid in Economic Sphere

BDO Business Advisory LLC 4,600,000

47,998

Terminated (modification 1)

RFA-2012-04 26-Apr-12

Strengthening Regulation,

Management, and Effectiveness of State

Aid in Economic Sphere

CLDS

- -

rejected


RFA-2012-05 11-May-12

Economic Policy Measures to Combat Shadow Economy and its Effects on Total Economic Growth in Serbia

BDO Business Advisory LLC

- -

rejected

RFA-2012-05 11-May-12

Economic Policy Measures to Combat Shadow Economy and its Effects on Total Economic Growth in Serbia


Economics (FREN)

79,830

paid (modification 1)

SSS-2012-01

6-Jul-12

2012 Business Survey in Serbia

CESID d.o.o.

25,825

paid

RFA-2011-04-F/2012

3-Aug-12

Assessment of Constraints to Construction Permits in Serbia - follow on

MP and Associates

16,850

paid

RFA-2012-06 4

September 2012

Internships in National Governmental Institutions in RS

Faculty of Economics, Finance and

Administration, Singidunum University

(FEFA)

- - rejected


RFA-2012-06 4

September 2012


Consulting Company ConsulTeam Ltd. Belgrade

- - rejected

RFA-2012-06 4

September 2012


NIP Obrazovniinformatord.o.o.

(Educational Informer) - - rejected

RFA-2012-06 4

September 2012


Adizes Business Consulting, d.o.o

- - rejected

RFA-2012-06 4

September 2012


Belgrade Open School (BOS)

89,970 paid

RFA-2012-06 4

September 2012


Cromer Group LLC - - rejected

RFP-2012-01 8 October

2012

Development of web-based inventory of spatial and urban planning documents

Team Net World Professional Services

- 54,500 rejected

RFP-2012-01 8 October

2012

Development of web-based inventory of spatial and urban

Omnicom Solutions d.o.o. - 47,800 rejected


planning documents

RFP-2012-02 19

November 2012

Document Management System and Public Register

PSTechd.o.o. 120,000 rejected

RFP-2012-02 19

November 2012


TEAMNET World Professional Services

99,948 Contracted (Modification 1,2,3)

RFP-2012-02 19

November 2012


SAGA d.o.o. 115,000 rejected

RFA-2012-07 21

November 2012

Management Training for Public Officers Working in Governmental Institutions in the Republic of Serbia

Audit And Consulting Company “Deloitte”, Ltd.,

Belgrade

29,920

rejected

RFA-2012-07 21

November 2012


Singidunum University – Faculty of Economics,

Finance and Administration

29,765

rejected

RFA-2012-07 21

November 2012

Management Training for Public Officers Working in Governmental Institutions in the

Adizes South East Europe 28,890 rejected


Republic of Serbia

RFA-2012-07 21

November 2012


Serbian Management Centre Ltd

29,810 Paid

RFA-2012-07 21

November 2012


Fenix Human Resources Ltd.

29,855 rejected

RFA-2012-07 21

November 2012


CEFE Serbia 29,670 rejected

RFA-2012-07 21

November 2012


Center for Project Management - CPM

29,450 rejected

RFA-2012-07 21

November 2012

Management Training for Public Officers Working in

Cromer Group Ltd 29,560 rejected


Governmental Institutions in the Republic of Serbia

RFA-2013-01 6 February

2013

Developing an Alternative Legal Framework for Improving Construction Permits in Serbia

Center for Liberal Democratic Studies in

consortium with Zivkovic and Samardzic

39,970 rejected


2013


EU Bild do.o 38,500 rejected


2013


MP&Associatesd.o.o. in consortium with Pro

energod.o.o. 38,150 rejected

RFA-2013-01/R

15 March 2013


EU Bild do.o 48,500 rejected

RFA-2013- 15 March Developing an MP&Associatesd.o.o. in 48,400 Paid (Modification 1,2- early

termination)


01/R 2013 Alternative Legal Framework for Improving Construction Permits in Serbia

consortium with Pro energod.o.o.

RFA-2013-01/R

15 March 2013


Initiative for integrations – IFI

36,070 rejected

RFA-2013-02 5 June 2013

Business Survey in Serbia

TNS Medium Gallup

19,755

Rejected

RFA-2013-02 5 June 2013


GfK Belgrade

19,500

Rejected

RFA-2013-02 5 June 2013


IPSOS Strategic Marketing

25,021

Paid

RFA-2013-02 5 June 2013 Business Survey in

Serbia

Serbian Association of Managers in partnerhsip

with MASMI

27,500

Rejected

RFA-2013-02 5 June 2013


CeSID d.o.o.

22,925

Rejected

RFA-2013-03 30 July Para-fiscal charges: National Alliance for Local 40,000 Paid (Modification 1)


2013 Evaluation of results and support for continuation of reforms

Economic Development (NALED)

RFA-2013-03 30 July 2013

Para-fiscal charges: Evaluation of results and support for continuation of reforms


Economics (FREN)

37,920

Rejected

RFP-2012-01/R

16 August 2013


PSTech d.o.o. 39,050 Rejected

RFP-2012-01/R

16 August 2013


OSA Racunarski inzenjering d.o.o.

53,145.50 Contracted

RFP-2012-07-F

Submitted 17-Nov-13

Management Training for public officers working in Government Institutions” Follow On

Serbian Management Centre

44,550

Rejected

RFP-2012-06-F

Submitted 19-Nov-13

"Better Public Administration through Internship Placements" Follow On


87,620

Paid


RFP-2012-07-F

Submitted 5-Dec-13

Management Training for public officers working in Government Institutions” Follow On

Serbian Management Centre

22,800

Contracted (Modification 1,2,3)

RFA-2014-01

29-Jan-14

The Role of Good Accounting in Access to Finance

GM Konsalting od

23,000

Rejected

RFA-2014-01

29-Jan-14


ABF Edukacija i konsalting d.o.o. Beograd

22,985

Contracted (Modification 1)

RFA-2014-01

29-Jan-14


Academica

22,848

Rejected

RFA-2014-01

29-Jan-14


Consulting company WM Equity Partners Ltd

22,718

Rejected

RFA-2014-01

29-Jan-14


DNA Communications d.o.o.

22,815

Rejected

RFA-2014-01

29-Jan-14


V+O Communications ltd.

22,929

Rejected


RFA-2014-02

16 May 2014

Business Survey in Serbia 2014

GfK 18,978

Rejected

RFA-2014-02

16 May 2014


Ipsos Strategic Marketing 19,991 Contracted

RFA-2014-02

16 May 2014


Medium Gallup 17,631

Rejected

RFA-2014-02

16 May 2014


CeSID 16,615

Rejected

RFA-2014-03

27 May 2014

Development of Business Web Portal

Omnicom Solutions d.o.o. Beograd

28,620 Contracted

RFA-2014-03

27 May 2014


E-Smart Systems 29,972 Rejected

RFA-2014-03

27 May 2014


DUBES Company for Trade, Manufacturing and

Services Ltd. Belgrade 30,000 Rejected

RFA-2014-03

27 May 2014


COMTRADE IT SOLUTIONS & SERVICES d.o.o.

29,517 Rejected

RFA-2014-03

27 May 2014


POWER SYMBOL TECHNOLOGY D.O.O.

23,200 Rejected


EXPRESSION OF INTEREST TITLE APPLICANT Amount RSD Amount USD Status GSC Meeting

Economic Growth Model Center for Liberal-Democratic Studies (CLDS)

0 0 Rejected

Commodity Exchange at Agricultural Forum - Food for Europe

Economics Institute 389,640 5,000 PAID 9/26/2011

Economics Training for Students of Journalism Association CIVILNET 0 0 Rejected 9/26/2011

Guide for preparation of the Plan of Reorganization (PR) in accordance with Bankruptcy Law

BDO Business Advisory 0 0 Rejected 9/26/2011

Guide for the preparation of the Prepackaged Plan of Reorganization (PPR) in accordance with Bankruptcy Law

BDO Business Advisory 0 0 Rejected 9/26/2011

Development of Corporate Bonds Market in Serbia Chamber of Commerce and Industry of Serbia

0 0 Rejected 9/26/2011

Fiscal Rules as a Fiscal Responsibility Tool Center for Liberal-Democratic Studies (CLDS)

0 0 Withdrawn 9/26/2011

MAT for Better Business Conditions Economics Institute 810,600 10,300 PAID 11/4/2011

Belgrade Stock Exchange 10th International Conference Belgrade Stock Exchange 300,000 3,800 PAID 11/4/2011

Public Administration Training to improve administrative capacity

Singidunum University - Faculty of Economics, Finance and

Administration (FEFA)

0 0 Rejected 11/4/2011

Adjusting the Codex of Corporate Management of the SCCI with the new Company Law

Chamber of Commerce and Industry of Serbia

950,000 12,100 PAID 11/4/2011

Annual Seminar - Economic Potentials and Business Development Prospects

Belgrade Fund for Political Excellence (BFPE)

1,000,000 12,700 PAID 11/4/2011

Alumni Seminar - Improving Conditions for Doing Business in Serbia

Belgrade Fund for Political Excellence (BFPE)

1,100,000 14,000 PAID 11/4/2011

Including Serbia into the World Competitiveness Yearbook

Institute of Economic Sciences 0 0 Rejected 11/4/2011

Quarterly Monitor: Macroeconomic and Business Climate Issues of Serbian Economy

Foundation for the Advancement of Economics

(FREN)

3,066,000 39,000 PAID 12/8/2011

Improving Competitiveness of Trade Companies Serbian Association of Employers

0 0 Rejected 11/29/2011


Managers' Hours Serbian Association of Managers

1,297,280 16,300 PAID 12/8/2011

Enforcement of the Law on Capital Markets Center For Advanced Economic Studies

0 0 Rejected 12/8/2011

Export-Oriented Recovery Center For Advanced Economic Studies

0 0 Rejected 1/12/2012

Practice of Corporate Finance in Serbia Chamber of Commerce and Industry of Serbia

0 0 Rejected 12/8/2011

Reform of Financial System and Protection of Intellectual Property Rights in Serbia

ACADEMICA Center for Creative Economy Research

0 0 Rejected 1/12/2012

Supermarket CEFE Serbia 0 0 Rejected 12/8/2011

Strengthening Communications Skills Training Represent Communications 0 0 Rejected 12/8/2011

Towards business-friendly environment for development of creative industries in Serbia

Serbian Financial and Business Consultants (SFBC)

0 0 Rejected 1/12/2012

Policy Advocacy Activities Association of Management Consultants of Serbia

0 0 Rejected 12/8/2011

Grey Book of Doing Business in Pancevo City of Pancevo Economic Development Agency

0 0 Rejected 12/8/2011

Macroeconomic Analyses and Trends (MAT) - for Better

Business Conditions (eight issues)

Economics Institute 2,400,000 28,015 Rejected 4/24/12

Round tables "For better Business Conditions" Economics Institute 3,000,000 35,000 PAID

(Modification1) 4/24/12

Practice of Corporate Finance in Serbia Chamber of Commerce and

Industry of Serbia 0 0 rejected 4/24/12

Citizens' Budget Guide BIRN 2,420,000 28,131

PAID

(Modification 1

Modification 2) 4/24/12


“Quarterly Monitor: Institutional Challenges to Boosting Employment, Growth and Public Sector Efficiency in Serbia”

Foundation for the Advancement of Economics

(FREN) 2,900,000 33,971

PAID

(Modification 1) 4/24/12

Benchmarking 2016 – Comprehensive Monitoring of Doing Business Environment in the Republic of Serbia

NALED - National Alliance for Local Economic Development 5,422,950 63,525

PAID

(Modification 1) 4/24/12

Ask When! - Advocacy Campaign for Improving of Doing Business Environment in the Republic of Serbia

NALED - National Alliance for Local Economic Development 2,328,500 24,998

PAID

(Modification 1)

5/29/12

Steinberg Capital&Publishing&Production ltd Grant for development of

Financial Markets 0 0 rejected 4/24/12

Government - Business Dialogue Bluewaters YU LLC 0 0 rejected 5/18/12

Developing Methodology for Improving Local Incentives to Support Local Economic Development and Improvement of Business Environment in Serbia

RARIS - Regional Development Agency Eastern Serbia 0 0 rejected 5/18/12

Internet Radio Station The First Entrepreneur

Association 0 0 rejected 6/14/12

Press Retreat and Financial Market Workshop Chapter 4 Communications

Consulting 0 0 rejected 6/29/12

Accelerated Development of the Leasing Industry in Serbia

Association of Leasing Companies ''ALCS'' Belgrade 3,000,000 32,545 rejected 6/29/12

Municipal bonds – A way to a sustainable local economic development Bluewaters YU LLC 2,300,000 23,782 rejected 9/13/2012

Conference 100 Days of Government American Chamber of

1,812,500 19,215 rejected 9/13/2012


Commerce in Serbia

Conference: Improving Conditions for Doing Business in Serbia

Belgrade Fund for Political Excellence 1,627,460 18,000 rejected 9/13/2012

Strengthening the Voice of Managers Serbian Association of

Managers 2,375,000 25,986 rejected 9/13/2012

Development of regulatory frameworks and mechanisms of alternative financing for SMEs in Serbia

EDGE Ltd Beograd 2,000,000 21,886 rejected 9/13/2012

Innovated model banking services to Serbian legal entities and agriculture during process of society transition, sanitation of banking and finance sector and state recover after last world wide economy crises (2013-2025).

MEJA LTD, BELGRADE 3,000,000 33,700 rejected 10/11/2012

Annual Seminar (Module 2): Economic Potentials and Business Development Prospects in Serbia by 2020

Belgrade Fund for Political Excellence 2,176,070 24,500 rejected 10/11/2012

Improving competitiveness of Serbian economy through development of the system of Institutional Financial Restructuring (IFR Project)

Chamber of Commerce 2,535,075 28,233 rejected 10/11/2012

Strengthening the Voice of Managers Serbian Association of

Managers 1,150,000 12,960 Paid

10/11/2012

Conference 100 Days of Government American Chamber of Commerce in Serbia

1,874,300 21,343

PAID

(Modification 1 and 2)

10/11/2012


Policy Measures to Enhance Serbian Exports Faculty of Economics, Finance

and Administration, Singidunum University (FEFA)

3,530,000 39,831 rejected 10/11/2012

Monetary and Fiscal Model for the Government of Serbia, Supporting Tool in Monetary,Fiscal and Trade Policy Making

Вelox Advisory Services ltd. 11,500,000 131,034 rejected 01/24/2013

Better Treatment for More Investments in Serbia OPTIMUS - Center for Good

Governance 2,979,756 33,708 rejected

01/24/2013

Building Project Management Awareness in Government of Serbia

PMI Serbia Chapter 900,000 10,483 rejected 01/24/2013

Institutionalizing the Concept of Continuous Improvements within the Public Sector of the Republic of Serbia

Audit and Consulting Company "Deloitte", Ltd., Serbia

2,579,000 32,136 rejected 01/24/2013

Improve Macroeconomic Policy and Strategy - Impact of Cultural Heritage and Viticulture on Macroeconomic Development of Vojvodina and Republic of Serbia

FruskogorskiVinogradi 3,000,000 34,945 rejected 01/24/2013

Preparing Serbia for Free Movement of Services European Policy Centre 2,800,000 32,613 rejected 01/24/2013

Evaluation of Influence of the Project “Western Balkans Innovative Auto Region” on Macroeconomic Development of Sumadija Region

L&I Consulting 2,500,000 29,119 rejected 01/24/2013

Build Efficiently in Serbia Today (BEST- a Guide through Building Proedures)

Center for Architecture Belgrade

1,600,000 18,636 rejected 01/24/2013

Building Capacity of Government of Serbia (GoS) in Project Management, Communications Management and

4You doo Beograd 2,850,000 33,195 Rejected 01/24/2013


Leadership Area

Improve the Environment for Development and Institutionalization of Clusters in Serbia

Cluster House 3,000,000 34,943 Rejected 01/24/2013

Bank Collaboration to Improve SME Access to Finance Center for Advanced Economic

Studies (CEVES) 2,500,000 29,119

Paid (Modification 1,2,3) 01/24/2013

No name Serbian Financial and Business

Consultants –Creative Economy Group

2,780,000 32,380 Rejected 01/24/2013

Impact Serbia CEFE Serbia 2,841,000

32,965 Rejected

01/24/2013

Forum 2013 - For better business conditions Economics Institute - 40,000 Grantee withdrew 4/26/13

Support for the implementation of QUEST_Serbia Macroeconomic Model, Monetary and Fiscal Model of the Government of Serbia Вelox Advisory Services ltd.

- 40,000


4/26/13

Panels „For better conditions for doing business“ within Business Info Group conferences – „Financing of Small

and Medium Enterprises“ and „Governors and Bankers of the Region“

Business Info Group (BIG) -

24,000 Paid

6/7/13

Practical Guide: How SME can acquire money in Serbia AAP Consulting Ltd Belgrade - 24,800 Rejected 6/7/13

Strengthening Communication Capacities of Project’s Communicators

Represent Communications 32,320 Rejected 6/7/13

Bankruptcy - A Chance for a Fresh Start Association for the promotion

of Serbian economy “Timeline” 15,000 Paid

6/7/13


Business Heartbeat - Reform Advocates NALED 100,000 Paid 6/7/13

Standard Methodology for SMEs Project Appraisal AAP Consulting Ltd Belgrade 34,000 Rejected 7/10/13

Strengthening support for inspections reform Center for Democracy

Foundation 28,000 Rejected

7/10/13

Improvement of competitiveness of tourism industry in south Serbia as part of European process through

establishment of its reservation system European Movement in Serbia

30,000

Rejected

9/11/2013

Empowering the SMEs - Family Business in Serbia Chapter 4 Communications

Consulting 36,000 Rejected

9/11/2013

Enabling business environment in waste recycling sector in Serbia European Movement in Serbia 38,000

Rejected 9/11/2013

IFRS for SME education Serbian Association of Accountants and Auditors 40,000

Rejected 9/11/2013

Support to SME associations in successful articulation and interests advocacy in relations with the commercial banks

DOOR Training and Consulting Serbia 33,000

Rejected 15-Oct-13

Credit risk guaranties: a viable Government policy as a remedy for long term external imbalances of Serbia

Safege LTD

40,000

Rejected 15-Oct-13

Executive Management Retreat

Serbian Management Center

9,800

Rejected

15-Oct-13

New Labor Law – The New Communication Gistro Advertising doo 40,000 Paid 25-Oct-13


SME better access to finance through reducing Enterprise-side Constraints

GM Consulting 39,980 Rejected 22-Nov

Meet the Timok Region Entrepreneurs and SME Regional Chamber of Economy Zajecar

35,552 Rejected 12-Dec-13

Promotion of Public Private Partnerships throughout Nišava, Pirot and Toplica Districts towards creation of

business enabling environment in Southeast Serbia – 3Ps for enabling business growth in Southeast Serbia

CIM Group


Facilitation of bottom-up communication between businesses, LSGs and GoS aimed at developing feasible and realistic regulatory framework for public-private

partnerships in the priority sectors of agriculture, energy efficiency and waste management & recycling

Centre for Regional Politics

34,600

Rejected

12-Dec-13

Study on economic impacts and business barriers in film industry in Serbia

SFBConsultants –Creative Economy Group

27,500

Rejected

12-Dec-13

The Trade-offs of Policy Planning: Awareness Raising

Center for Advanced Economic Studies


Advocacy for More Financial Restructuring and Financial Discipline in Serbia

Center for Advanced Economic Studies



Finalization of the update version of Citizen's Budget Guide - follow on grant (APS-2012-01-5-F)

Balkan Investigative Reporting Network (BIRN)

8,782

Paid (not completed)

22-Nov-13

Support for the Ministry of Finance through Internship Placements

Belgrade Open School (BOS) 15,000


11-April-14

Improving Access to Finance for SMEs and Entrepreneurs - Workshops across Serbia

Chapter 4 25,000 Rejected 30-May-14

Young Entrepreneurial Spirit (YES) Green Table 19.200 Rejected 30-May-14

Media Support to Economic contribution to European-Atlantic integration processes

Green Table 15.800 Rejected 30-May-14

Improving communication between businesses and decision makers – Blue Chair

WB Consulting 19,800

Rejected

30-May-14

Global Positioning Strategy (GPS) of the Republic of Serbia – Opportunities and Challenges

CIVIS 20,720

Rejected

30-May-14

REIT - Real Estate Investment Trusts AFAS 20,000

Rejected

30-May-14

What is the Problem in Competition Policy in Serbia European Policy Centre – CEP 23,000

Rejected

19-Aug-14

FOUNDATION OF PARLIAMENTARY ECONOMIC CAUCUS NALED 25,000 Rejected 19-Aug-14


Support to the Public Policy Secretariat of Republic of Serbia in facilitation of private-public investments in

Serbia (Improvement of Institutional Framework for PPP)

Factis Consulting Belgrade

20,000 Rejected

19-Aug-14

Assistance in improvement of public debt management systems and capacity

Center for Investments and Finance

24,000

Ongoing

14-Jan-15

Fostering access to agricultural finance in Kolubara region (AgriFin-KOL)

Cluster "Fruits of Kolubara

20,000

Ongoing

14-Jan-15

Raising the Capacity of the Serbian Parliament’s Committee on Finance, National Budget and Public

Expenditure Control to Monitor the Implementation of the Budget Act

Public Finance Institute

16,000

Ongoing

14-Jan-15

Empowering Business Associations to Pool Resources and Advocate for Alternative Sources of Funding for SMEs

Institute for Entrepreneurship

22,500

Ongoing

14-Jan-15

Development of Local Currency Financial Markets in Serbia

FREN

25,000

Ongoing

14-Jan-15

TOTAL REQUESTED 97,480,111 $ 2,245,421


OVERVIEW: Total number of applications 103

Rejected / postponed/ withdrawn 73/-/2

Paid / Contracted / Approved 21/23/23

Pending / under negotiations /open 5/-/-

FINANCIAL STATUS OF CONTRACTED GRANTS

RFAs 2011, 2012, 2013, 2014

RSD USD Status

Foundation for the Advancement of Economics - FREN Quarterly Monitor 24

unsolicited proposal 2,099,993 28,417

Paid

CeSID Business Survey RFA-2011-01 1,401,600 18,502 Paid

CeSID Business Survey Follow-up Data Analysis RFA-2011-01-F 370,000 4,513

Paid

National Alliance for Local Economic Development - NALED

Assessment of Impact of Quasi-Fiscal Charges on Businesses in Serbia RFA-2011-02 1,400,000 19,197

Paid

Foundation for the Advancement of Economics - FREN Econometric Assistance RFA-2011-03 2,828,300 37,870

Paid

MP and Associates Assessment of Constraints to Construction Permits in Serbia RFA-2011-04 1,614,000 20,550

Paid

Center for Liberal-Democratic Studies - CLDS

Project on Journalist Education on Economic and Business Environment Reforms RFA-2011-05 1,175,000 14,290

Paid

Balkan Center for Regulatory Reform - BCRR

For Training of Commercial Court Judges on Implementation of the New Company Law RFA-2011-07 1,675,000 20,630

Paid


Center for Liberal-Democratic Studies - CLDS Study on Private Domestic Savings RFA-2011-06-R2 1,840,000 22,230

Paid

Chapter 4 Communications Consulting Organization of Capital Market Forum in Serbia RFA-2012-01 1,697,180 19,980

Paid

Center for Liberal Democratic Studies Policies to Increase Employment and Workforce Competitiveness RFA-2012-02 2,987,000 34,052 Paid

Represent Communications PR/Outreach Campaign RFA-2012-03 84,342 Paid

BDO

Strengthening Regulation, Management, and Effectiveness of State Aid in Economic Sphere RFA-2012-04 4,600,000 47,998

2/3 paid (Terminated)

Foundation for the Advancement of Economics (FREN)

Economic Policy Measures to Combat Shadow Economy and its Effects on Total Economic Growth in Serbia RFA-2012-05 79,830 Paid

CESID d.o.o. 2012 Business Survey in Serbia SSS-2012--01 25,825 Paid

MP and Associates

Assessment of Constraints to Construction Permits in Serbia - follow on

RFA-2011-04-F/2012

16,850 Paid

Belgrade Open School (BOS) Better Public Administration through Internship Placements RFA-2012-06

89,970 Paid


Management Training for Public Officers Working in Government Institutions in the Republic of Serbia RFA-2012-07 29,810 Paid

MP and Associates Development of an Alternative RFA-2013-01/R 49,400 Paid (Mod 1,2)


Legal Framework for Improving Construction Permits in Serbia

Ipsos Strategic Marketing Business Survey in Serbia RFA-2013-02 25,021 Paid

NALED

Para-Fiscal Charges - Evaluation of results and support for continuation of reforms RFA-2013-03

Paid Paid (Mod 1)


Better Public Administration through Internship Placements Follow on

RFA-2012-06-F 56,420

Paid


Enhancing organizational effectiveness within key Governmental partner institutions in Serbia through Management Assistance Program

RFA-2012-07-F

22,800

3/4 paid (Mod1,2,3)

ABF Edukacija i konsalting d.o.o. Beograd


RFA-2014-01

22,985

3/6 paid (Mod 1)

Ipsos Strategic Marketing Business Survey in Serbia 2014 RFA-2014-02

19,991

3/4

Omnicom Solutions d.o.o. Development of Business Web Portal

RFA-2014-03

28,620

3/6


Subtotal

880,093

APS 2011, 2012, 2013 RSD USD Status

Economics Institute Agricultural Forum ''Food for Europe'' APS-2011-01-1

389,640 5,043

Paid

Economics Institute MAT - for Better Business Conditions APS-2011-01-2

820,000 9,965

Paid

Belgrade Stock Exchange - BELEX Belgrade Stock Exchange 10th International Conference APS-2011-01-3

300,000 3,872

Paid

Foundation for the Advancement of Economics - FREN

Quarterly Monitor 25-26-27 : Macroeconomic and Business Climate Issues of Serbian Economy APS-2011-01-4

3,066,000 39,574

Paid

Belgrade Fund for Political Excellence - BFPE

Alumni Seminar - Improving Conditions of Doing Business in Serbia APS-2011-01-5

1,100,000 13,805

Paid

Belgrade Fund for Political Excellence - BFPE

Annual Seminar - Economic Potentials and Business Development Prospects APS-2011-01-6

1,000,000 12,018

Paid

Chamber of Commerce and Industry of Serbia

Adjusting the Codex of Corporate Governance of the CCIS with the New Company Law APS-2011-01-7

1,270,000 15,370

Paid

Serbian Association of Managers - SAM Managers' Hours APS-2011-01-8 1,297,280

15,770 Paid

Economics Institute Round tables -For better business conditions APS-2012-01-3 2,959,208 32,199

Paid (Modification 1)



Ask When! - Advocacy Campaign for Improving of Doing Business Environment in the Republic of Serbia APS-2012-01-4 2,328,500 25,308


Foundation for the Advancement of Economics - FREN

“Quarterly Monitor: Institutional Challenges to Boosting Employment, Growth and Public Sector Efficiency in Serbia” APS-2012-01-2 2,648,319 28,328


BIRN Citizens' Budget Guide APS-2012-01-5 2,513,906 27,682

Paid

(Modification 1

Modification 2)

NALED - National Alliance for Local Economic Development

Benchmarking 2016 – Comprehensive Monitoring of Doing Business Environment in the Republic of Serbia APS-2012-01-1 3,000,000

32,637 Paid

(Modification 1)

American Chamber of Commerce in Serbia “First Lap Time - 100 Days of Government” and Follow up APS-2012-01-6

22,688 Paid (Modification 1 and 2)

Serbian Association of Managers - SAM Strengthening the Voice of Managers APS-2012-01-7

14,192 Paid (Modifications 1, 2, 3,4)

Center for Advanced Economic Studies (CEVES)

SME Growth Opportunities and How Policies and Banks Miss Them APS-2012-01-8

28,614 Paid (Mod 1,2,3)

Вelox Advisory Services ltd Support for the implementation of QUEST_Serbia Macroeconomic

APS-2013-01-1 40,000

3/4 paid (Mod 1)


Model - Monetary and Fiscal Model of the Government of Serbia

Association for the promotion of Serbian economy "Timeline"

Bankruptcy - a Chance for a Fresh Start APS-2013-01-2

15,065 Paid

Business Info Group (BIG) Financial Stability and Business Financing APS-2013-01-3

9,580 Paid


Business Heartbeat - Reform Advocates

APS-2013-01-4

39,990

Paid

Gistro Advertising

New Labor Law – The New Communication

APS-2013-01-5

25,344

Paid (Mod 1,2)

BIRN Finalization of updated version of the Citizen's Budget Guide APS-2012-01-05-F

8,787

Paid (not completed)

Belgrade Open School (BOS) Support for the Ministry of Finance through Internship Placements

APS-2014-01-1

16,000

3/4 paid (Mod 1)

Subtotal 481,831

TOTAL CONTRACTED (RFA and APS) USD 1,361,924


Request for Proposals

TEAMNET World Professional Services (Purchase order) In-kind grant to be signed with the Securities Commission

Document Management System and Public Register PO 2012-02

107,898 5/7 paid (Mod 1,2,3)

OSA Racunarski inzenjering d.o.o. Development of web-based inventory of spatial and urban planning documents

PO 2012-01/R

53,145

3/5 paid

Subtotal

161,043

GRAND TOTAL

1,522,967

TEAMNET World Professional Services (Purchase order) In-kind grant to be signed with the Securities Commission

Document Management System and Public Register PO 2012-02

107,898 5/7 paid (Mod 1,2,3)

OSA Racunarski inzenjering d.o.o. Development of web-based inventory of spatial and urban planning documents

PO 2012-01/R

53,145

3/5 paid

Subtotal

161,043

GRAND TOTAL

1,522,967