USAID-funded local economic development activities in Pryluky, Chernihiv Oblast, have paved the way for a decisive and novel public/private partnership to be formed in the city. British American Tobacco Ukraine, an active participant in the city’s economic strategic planning process organized by USAID, has agreed to provide a $50,000 grant, together with company expertise, to create a Municipal Marketing Plan for the attraction of further investment to Pryluky.
B.A.T., the world’s second largest tobacco group, came to Ukraine in 1993. It purchased a 100-year-old tobacco factory in Pryluky, and turned it into a modern tobacco production facility. The total investment in the factory’s upgrade and development has exceeded $100 million.
Mykola Babiy, Pryluky City Mayor (left) and Oleh Yason, B.A.T. Ukraine Deputy Executive Director |
B.A.T. Ukraine has always been a responsible corporate citizen, contributing to a number of social programs, with priorities in sustainable rural development, culture, art and education, and local community development. This collaboration between the company and Pryluky hit a qualitatively new level with the arrival of the USAID Local Economic Development (“LED”) project, which launched a strategic economic development planning process in the city.
In April 2005, Pryluky’s business and community leaders intitiated strategic planning by forming a Strategic Planning Committee, guided by a team of advisors from USAID’s LED project. The Committee settled down to drafting an Economic Development Strategic Plan for the city, and B.A.T., as one of the city’s largest and most responsible corporate citizens, was enlisted in the effort. Oleh Yason, B.A.T.’s deputy general director, represented the company actively on the Committee. He quickly realized the seriousness of the local government’s intentions to foster economic development, and was also able to pinpoint where assistance from the company could be most effective.
The Economic Development Strategic Plan approved by the Pryluky City Rada in late September 2005, sets forth as Goal A.1 “[the creation of] a system of investment attraction and retention through a city promotion marketing campaign.” Mr. Yason seized upon this goal, and on Feb. 16, 2006, B.A.T. and the city signed a Memorandum of Cooperation agreeing to joint development and implementation of a Municipal Marketing Plan for the city. The major term of the Agreement is that B.A.T. Ukraine will contribute UAH 250,000 ($50,000) to the effort, and will take active part in the activities and provide its expertise. USAID’s LED project will also be providing technical assistance to create Pryluky’s marketing plan.
Speaking at the Memorandum signing ceremony, Mr. Yason said, “We want to put up money for strategic programs. Pryluky has great economic potential, but it is underused. The city marketing program will allow for attracting new investors here, and this will certainly have a positive impact on the social situation.”
USAID is proud to have leveraged this participation of the private sector in Pryluky’s economic development, and the LED project will continue to build similar public/private partnerships to enhance local economies. Building a new quality of collaboration between city governments and local private businesses is the key to adding jobs and investments to the local economic scene.
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