Algorithm and step by step instruction of creating a Regional Development Agency

According to the Law of Ukraine “On Principles of State Regional Policy” and for effective implementation of regional policy development and implementation of regional development projects and financing for such projects (both budgetary funding and by international financial and grant projects), relevant regional councils and regional administrations and other co-founders can create Regional Development Agency (RDA).

As a legal form of the Agency, it is proposed institution which will be founded by the relevant regional council and regional administration and also regional NGOs, business associations, universities and others. This legal form meets the requirements of current legislation of Ukraine (in particular, the law of Ukraine “On Basic Principles of State Regional Policy”, “On Territorial Communities Association”, “On cooperation of local communities” and the Cabinet of Ministers Resolution “On principle of Regional Development Agency”).

At the same time the Agency is able to get financing from international financial and donor organizations, because its management is independent of the founders and carried out by the Supervisory Board in accordance with goals and tasks which are defined by founders in Constituent act. The purpose of the institution activity in accordance with the Constituent act will be “… the promotion and organization of regional development, development of separate areas, communities and their infrastructure, and  for achieving this mission appropriate combining  the organizational and financial resources, both from the region and from outside its borders; promoting attracting investment and loans, creating a positive image of the region, providing advisory services, improve the investment climate in the region, collection and dissemination of information, creation and implementation of regional development projects and obtaining funding for their implementation. The agency is not goaled to receive and divide the profit … “.

The main stages of RDA establishment:1. Conduct the discussing of conceptual principles of RDA creation among potential co-founders.2. The decision of the relevant Regional Council and the Region State Administration for participation in establishing the institution and readiness to finance its operation.3. Implementation of the Constituent Meetings of Founders, in which:

  • signing a cooperation agreement between the founders and the Constituent act;
  • electing executive body;
  • defining the organizations and institutions’ members of which will be included to Supervisory Board;
  • forming the first structure of Supervisory Board;
  • founders are defining the property and funds which will be transferred for the institution.

Details of the RDA creating process provides in “Step by step instructions for RDA creating” which is prepared by experts team of NGO “Local development and reforms center”.Instruction is designed on the basis of possible steps and measures during the RDA creation, whose number can be increased or decreased according to the stage of regional institutions readiness and region specific.

A team of experts is ready to work individual in each case and prepare the most appropriate algorithm and an action plan for the establishment of the RDA in your area.