The European Commission announced a new financial agreement of €1.8 million to enhance direct support to city and town authorities that are members of the Mayors for Economic Growth (M4EG) Facility network in Ukraine and the Republic of Moldova. Seventy percent of the grant component will be available for Ukrainian local authorities, and 30 percent to local authorities in Moldova, IPN reports

The additional funds, along with previously repurposed funds from the M4EG project will sponsor a Call for Local Demonstration Initiatives focusing on revitalizing and supporting the recovery of local economies and communities impacted by the war.

The structure of the fund will have two aspects: Response & Immediate Recovery – funding range for each proposal: € 30,000-50,000 (no co-financing required). It intends to support the immediate needs of people (IDPs and refugees) whose houses, jobs and businesses were destroyed or affected by the war and small-scale restoration of infrastructure and services, and Renewal & Anticipation – funding range for each proposal: €70,000 – 100,000 (at least 20% co-financing required), says a press release issued by UNDP.

Municipalities interested in participating in the Call for Local Demonstration Initiatives should be part of the M4EG network. To join the network, Moldovan and Ukrainian municipalities should reach out to M4EG Secretariat in respective countries through the following link. The M4EG Facility draws on the Mayors for Economic Growth Initiative, launched and funded by the European Union (EU) in 2017. Since 2021, the EU-funded M4EG Facility has been managed by UNDP in close cooperation with the EU, local authorities and a range of partners.