To increase the efficiency of social partnerships in the cities and towns of presence, Metinvest switches over to the long-term strategic planning of its social investment activities.
In 2010-2011, the Company participated in two strategic programs in partnership with the leading international organizations:
- Local Investment and National Competitiveness, a partnership project implemented together with the United States Agency for International Development (USAID)
- Community oriented local development, a partnership project implemented together with the European Union and the United Nations Development Program (UNDP)
Local Investment and National Competitiveness - USAID
In 2010, Metinvest participated in the program of the United States Agency for International Development (USAID) aimed at assisting town councils in strategic planning and increasing their investment attractiveness.
In 2010, Krasnodon Mayor, the head of the UASAID’s Local Investment and National Competitiveness project and PJSC “Krasnodoncoal” signed a partnership agreement. The subject of the agreement is partners’ cooperation in renewing the town development strategy until 2015. For this purpose, the international partner should develop and the town council should implement the strategic plan of the town’s economic development and competitiveness increase which would help to create comfortable life conditions in Krasnodon, attract investment, develop small-scale and medium-scale businesses. The role of Metinvest enterprise is to invest resources necessary to implement projects in the frames of the strategic plan on annual basis.
The development of the strategic plan has involved all the interested parties. The completed plan identified the town’s economic development programs aimed at creating comfortable life conditions in Krasnodon. The project is managed by the Coordination Council headed by the Mayor and consists of over 40 representatives of municipal and educational institutions, small- and medium-scale businesses, banks, communal organizations, local authorities, public organizations, the leaders of local community and the representatives of PJSC “Krasnodoncoal”.
Such approach based on the interaction of the interested parties will enable them to take into consideration the peculiarities of the territory, plans of the town’s authorities and position of residents and businesses operating in the territory. The combined efforts of partners sharing common goals and being ready to undertake liabilities and responsibilities can create new impetuses for the town’s development, while the systematic social investment organized in such a way will greatly correspond to the needs and values of the modern society.
In July 2011, the Strategic Plan of the social and economic development was approved at the session of the Krasnodon Municipal Council. Starting with 2012, the collaboration between PJSC “Krasnodoncoal” and Krasnodon is planned to be continued in the priority town areas within the frames of the developed plan.
Community oriented local development – UNDP
The project has been implemented in Ukraine since December 2007 and has already proved its efficiency – as of July 2010, 487 communities’ projects were successfully completed in the fields of energy saving, water supply, health care, etc.
A method suggested by the UN, provides for the financing of the best projects on a competitive basis. It allows achieving the effective distribution and development of partners’ resources addressed to solve the most topical problems of the local population. The community’s participation in all stages of the process, from planning to implementing, will enable to expand the opportunities and competencies of the municipal institutions and public organizations as well as competencies of the residents for managing their town’s social development.
Starting with 2011, the project work has been spread on the communities of small towns in the Donetsk region.
The compulsory condition of the project is shared financing of three project partners in the following proportion:
- 50% – EU resources (grant)
- 5% – resources gathered by the community (i.e. local residents)
- 45% – resources given by the Municipal Council
Metinvest’s involvement means that the Company becomes the fourth program partner, thus expanding the project’s financial and organizational opportunities.
In 2011, the competitive selection was successfully completed for the towns of Vuhlehirsk and Yunokomunarivsk (the administrative units of Yenakiieve), and Metinvest will address the financing to these towns. The project started there in October 2011. In the selected districts, the representatives of the local authorities attended the introductory seminars where goals, methods and procedures of the project were explained.
On November 10th, Yunokomunarivsk and Vuhlehirsk hosted the citizens’ meetings aimed at creating public organizations. Public organization “Yunkom” was established in Yunokomunarivsk, and the “Foundation for the development of the community of the town of Vuhlehirsk” was established in Vuhlehirsk. Further plans in the project framework will begin with training of the activists of these public organizations.