UNDP is launching a new project to improve the wellbeing and raise living standards of the most disadvantaged population groups in the Chernivtsi and Odesa oblasts. Funded by the Austrian Development Agency, it will benefit more than 150,000 people living in regional centres and at least 18 villages, small towns and rayons. The project will also boost citizen participation in local governance and encourage community-based initiatives, with a focus on inclusiveness and outreach to the most underserved.

The project will work on two directions:

• strengthening the capacity of local communities, local authorities and universities to apply community-led development, participatory governance and service delivery; and
• promoting small farm and non-farm business development in rural and semi-urban areas.

The project will offer grants to community organizations for the implementation of micro-projects on support to social facilities (schools, kindergartens, etc.). Up to 50% of the cost will be contributed by the project (limited to 6,500 EUR per initiative), up to 45% - by local budgets and a minimum of 5% - by the beneficiary organizations. Support to the development of cooperatives, capacity-building activities and small grants will be provided to communities willing to establish farming cooperatives. To promote diversification of activities in rural and small town communities as an important component of poverty alleviation, the project will also provide grants for small business (non-farm) initiatives, especially targeting women and vulnerable groups.

The project is built on the experience gained within the existing EU-funded Community-Based Approach to Local Development Programme and other UNDP development projects and programs. It will be implemented through the mechanisms established under the CBA programme and will be implemented within a period of 18 months.

The total budget of the project, provided by the Austrian Development Agency, amounts to 500,000 EUR.