Stavropol Regional Development Strategy - Financial Assessment and Investment Review
Actual Completion Date
Lesson Learned for Cities Alliance Members and Partners
1. Strong Regional endorsement of Consultant effort was required to secure buy-in at further subnational levels (municipalities and rural settlements). 2. A coordinator with the ability to motivate line ministries to amend existing processes is crucial to achieving successful outcome. 3. Transition to medium term financing plan is more challenging than was initially envisaged. 4. Inter-ministerial coordination, and communication is essential for transitioning into a more transparent and analytically intensive Regional CIP process. Transition to medium term financing plan is more challenging than was initially envisaged. Inter-ministerial coordination, and communication is essential for transitioning into a more transparent and analytically intensive Regional CIP process.
Stavropol Krai, as many other cities and regions in Russia, faces challenges in meeting the needs of its urban poor, as the country’s nascent decentralisation process changes responsibilities for infrastructure service provision. It seeks to develop a regional/city development strategy leading to an investment and financing plan, definition of responsibilities for infrastructure service provision, and access to market-based finance. (This proposal is virtually identical to the Chuvashia proposal.)
Improve infrastructure service provision; Work out a comprehensive mid-term City/Regional economic development and investment plan that will result in financing specific infrastructure projects in Stavropol Krai; Attract financing from official and private funding sources on the basis of the region’s own financial strength, and develop bond mechanisms for city borrowing.
Activities are organised in four modules: 1) Design a Regional Financial Simulation Model to analyse and forecast the regional budget and debt-bearing capacity; 2) Elaborate a Region/City Development Strategy and Investment Plan; 3) Prioritise and sequence capital expenditures for regional priority projects and a detailed feasibility study and environmental plan for these projects; 4) Link investment needs with funding sources.
Expected Impacts and Results
Increased service coverage to the region’s low-income population through financial investment in the prioritised Regional/City infrastructure projects such as water and district heating; Improved infrastructure service provision and efficiency of resource use will contribute to the region’s economic development.