Due to collaborative endeavors of the city government, a private fund, and a USAID project, Alchevsk is about to adopt an economic strategy, which is already under implementation
The Alchevsk Development Fund intends to sponsor implementation of practically all projects envisaged in this Luhansk Oblast's city's economic development strategy, the Fund told the LED Monitor last week.
Vasyl Storchak, Fund Director, said realization of some of the projects has been already well underway, even though the Economic Development Strategic Plan is still pending adoption. He cited infrastructural projects aimed at renovating the municipal heat supply system, reconstructing roads, and upgrading street lighting.
In this year, the Alchevsk Development Fund has already disbursed a total of more than UAH 6 million (about $1.2 million) on various infrastructural and social programs including Strategic Plan projects, according to Mr. Storchak. He said the Fund, established in December 2006, spent over UAH 25 million on these purposes in 2007.
Implementation of the projects typically goes as follows: the Fund purchases materials and equipment, and the city carries out installation and commissioning.
The projects not only make the life of Alchevsk residents more safe and comfortable but also allow the city budget to save. The street lighting upgrade project, which cost the Fund about UAH 0.5 million in 2007 and over UAH 0.2 million this year to date, brought to the city about UAH 60,000 in a saving on use of up-to-date sodium vapor lamps in 2007 alone, Mr. Storchak reported.
Improvement of municipal infrastructure is issue number one in the city where most of its 120,000 residents were literally freezing after the heat supply system collapsed in January 2006. Quite logically, the first of the draft Strategic Plan's two critical issues is called "Development of Communal Infrastructure Based on Innovative and Energy-efficient Technologies."
The second critical issue of the draft plan is "Creation of Favorable Conditions for Small and Medium Businesses to Develop."
The strategic planning process started in Alchevsk in November 2007 following the signing of Memorandum of Cooperation by the Alchevsk City Rada, the USAID, and the Industrial Union of Donbas corporation – the Alchevsk Development Fund founder – on Sept. 14, 2007. The Expert Council formed in the city by order of Mayor Volodymyr Chub drafted the Economic Development Strategic Plan with assistance from the USAID LED project, and presented the finalized draft on April 25, 2008.
Alchevsk, Sept. 14, 2007. Signing the Memorandum of Cooperation. Left to right: IUD Chairman of the Board Serhiy Taruta, Alchevsk Mayor Volodymyr Chub, USAID Regional Mission Director Earl Gast (photo from the LED project's files)
Mr. Storchak, who was present at nearly all Expert Council meetings, says the planning process itself was very useful in that it helped the city government, businesses, and public close the ranks for the sake of their city development. "Very important to us [the Fund] was also that we were able to see the response to, and effectiveness of, the measures that we suggested," he added.
Speaking at the Memorandum signing ceremony in September 2007, Mr. Chub pointed out that "USAID projects give Ukraine concrete, appreciable and positive results." The LED Monitor asked the Alchevsk Mayor whether the joint work of the city and the LED project on drafting the strategy has confirmed those words.
"Yes, it has absolutely," answered Mr. Chub. "I consider the approaches to strategy development suggested by the project very good and effective."
He commended the strategic planning process, as well as the quality of the resulting draft Strategic Plan, observing that the experience acquired by all those involved in this work can be used in working out any further program.
According to the Mayor, the collaboration between the City Rada and the Alchevsk Development Fund helped improve the city's housing and utilities sector considerably. "And the existence of the strategy has proven that what has been done was expedient, relevant, and important and that we must continue the effective collaboration in implementation of the Strategic Plan," said Mr. Chub.