YEREVAN, NOVEMBER 24, NOYAN TAPAN. Within the framework of the UNDP "Performance Budgeting: Effective Mechanism for Local Development" project, United Nations Development Program (UNDP) and the Mayor's Offices of the cities of Abovyan, Dilijan, Ijevan, Masis and Vedi signed a memorandum of understanding on November 23. The aim of the project is to strengthen the capacities of local self-government bodies and support further process of decentralisation of governance system. In the above-mentioned five communities, the introduction of performance budgeting will allow to increase the effectiveness and transparency of budget planning, as well as monitoring and evaluation processes. According to the memorandum, the UNPD will give experts, methodology and consultation to the communities. Working and initiative groups formed from representatives of the Mayor's Office staff and different groups of the population will be created. As Consuelo Vidal, UNDP Resident Representative in Armenia, mentioned strong communities are the basis for a strong Armenia, and UNDP programs will continue to support efforts of the Government aimed at this goal. The implementation of the "Performance Budgeting: Effective Mechanism for Local Development" project will finish in December 2007.

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