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The UNDP signed a partnership agreement with the Council of municipalities of the Nizhny Novgorod region and the Viksa Metallurgical Factory

The UNDP signed a trilateral partnership agreement with the Council of municipalities of the Nizhny Novgorod region and the Viksa metallurgical factory VMF (which is part of the United Metallurgical Company, OMK)




The agreement was signed in the context of the joint project of the UNDP and the Ministry of Regional Development of the Russian Federation Support to Local Governance Reform as well as the joint project of the UNDP and the Ministry of Economic Development Support to the Reform of the Budgetary Process, and provides for the implementation of the social technology Transparent Budget and tools of results-based budgeting.




The implementation of these activities in the Viksa municipal district (rayon) in 2008-2009 will take place with the support of the Governor of the Nizhny Novgorod region Mr. Valeriy Shantsev. The project will facilitate a more effective realization of expenditure obligations of the municipal district budget management; a large part of is formed by tax proceeds from the VMF. The project will contribute to a more effective budgeting process and the structure of the intergovernmental fiscal relations. The activities are aimed at increasing fiscal capacity of municipalities and at decreasing the dependence of the latter on the resources of regional foundations for support to municipal budgets.




The town of Viksa is the administrative center of the Viksa district of the Nizhny Novgorod region. The territory of the district is 18,43 thousand square kilometers; the district comprises 46 communities. Presently, Viksa is a large manufacturing center of the Nizhny Novgorod region, and one of Russias bases specializing in metallurgy. Its permanent population, as of January 1st 2007, amounted to 87,4 thousand people, of which 66.8% lived in the town of Viksa. Since 2002 the level of socio-economic development of the district has continuously remained above the regional average. Districts average monthly salary in 2006 increased by 36% to 10 224 rubles.




The project will be financed by the VMF, the Council of municipalities of the Nizhny Novgorod region and the United Nations Development Programme. The project is a pilot, and in the case of successful realization the experience of Viksa district will be disseminated in other municipal districts of the Nizhny Novgorod region.




The signature of the agreement contributes to the instilment of public private partnership principle and relies on UNDPs experience in implementing similar projects.


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