Volodymyr Chub, Alchevsk Mayor: "The USAID projects give Ukraine concrete, appreciable and positive results. We are interested in implementing this experience in our city" |
Serhiy Taruta, IUD Chairman of the Board: "It’s important to mention not any specific results in the nearest future but those opportunities that we will be able to realize through the knowledge acquired. It’s like good education that you receive and then can use. The same way here: now we are receiving what can turn into dozens and hundreds of million hryvnyas for this city in the long run" |
Earl Gast, USAID Mission Director: "We are not looking at using USAID resources as investing in direct business but actually to support the government here on setting up the right conditions for investment. And some of the conditions include having a good investment climate at the local level, having a government that’s committed to good governance, having property infrastructure in place that will attract investors, and also having a good strategic plan for attracting investments" |
On Sept. 14, 2007, USAID, the Industrial Union of Donbas (IUD) corporation, and the Alchevsk City Rada signed a Memorandum of Cooperation aimed at social and economic development of this Luhansk Oblast city.
The document was signed by Alchevsk Mayor Volodymyr Chub, IUD Chairman of the Board Serhiy Taruta, and USAID Mission Director Earl W. Gast. The ceremony took place in the Alchevsk city hall in the presence of Luhansk Oblast Deputy Governor Volodymyr Kryvulya and audience composed of local Rada members and officers, representatives from NGO’s, media people, and other interested persons.
According to USAID press release, IUD has established a UAH 15 million ($3 million) Alchevsk Development Fund, whereas USAID will provide technical assistance based on its various development programs being implemented in Ukraine.
"By this cooperation, the Parties shall seek to develop and implement efficient models to build the city’s capacity by jointly implementing projects and programs in the city of Alchevsk," the Memorandum reads.
The document outlines a wide scope of cooperation "on issues of mutual interest." The list of these issues, which begins with devising a plan of economic development for the city, also includes developing the capacity of local governance, improving the investment climate, developing non-governmental organizations and civil society activism, and eleven other issues, mainly in the fields of economy and health care.
Addressing the audience before the signing, Mr. Gast said this is the first time that USAID cooperates with "large private industry and city government to concentrate a lot of our resources and a lot of our projects to work on improving governance and also sustainable economic development."
He also explained that one of reasons to choose Alchevsk for such cooperation was that this city "is recognized as the best-governed city in Luhansk [Oblast] with progressive leadership." Another reason was that, two months ago, Mr. Gast met Mr. Taruta to talk about possible cooperation with IUD. "For him and IUD Alchevsk was natural choice," the mission director pointed out.
Speaking at a news conference that followed the ceremony, Messrs. Chub, Taruta, and Gast emphasized that they do not seek immediate return on the resources used but rather the knowledge transfer from USAID to the community that will allow the city to develop small and medium enterprise, attract investment, and eventually raise living standards of its residents in the long run.
In an interview with the LED Monitor, Mr. Taruta formulated his vision of Alchevsk in 15 to 20 years:
"The city will be the best among industrial cities of Ukraine. The whole city will be transformed; it will be green and environmentally clean. There will be opportunities for balanced development of education, culture and sports. I have no doubt of that because, here and today, the fundamentals are laid down, and you are just helping it."
The signing ceremony was preceded by presentations of a number of USAID projects, and was accompanied by an exhibition of the projects set up in the city hall foyer. The USAID Local Economic Development project took part in both of the activities.
The Industrial Union of Donbas, established in 1995, is one of Ukraine’s largest companies, according to its web site. The company’s main activities include production of steel, rolled stock, steel pipes, coke, and equipment for ferrous metallurgy and by-product coke industry. It is a holding company incorporating more than 40 industrial enterprises in Ukraine and abroad. The Alchevsk Iron and Steel Works is one of these enterprises.
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