Kyiv, 24 July 2025 — The European Union (EU), the Ministry for Development of Communities and Territories of Ukraine, and the United Nations Development Programme (UNDP) in Ukraine are pleased to announce the launch of the third phase of the Mayors for Economic Growth (M4EG) Facility, an initiative designed to empower local authorities across the Eastern Partnership (EaP) region. Running from 2025 to 2028, this phase focuses on the inclusive, green, and innovative economic revival of secondary (non-capital) cities.

Building on Success: From Network to Impact

Under the previous phase of the initiative, which was run by UNDP from 2021 to 2025, M4EG has rebuilt and engaged a network of over 430 municipalities across the EaP region. Nearly 50 municipalities have benefitted from innovative financing for urban development, with funding for the green and blue energy transition in the Republic of Moldova and Ukraine as well as crucial assistance for refugees and internally displaced people in the wake of Russia’s war of aggression against Ukraine. The project also supported sustainable tourism in Armenia and green and smart solutions for cities in Azerbaijan and Georgia.

What’s New in Phase III

Phase III introduces an innovative, mission-oriented economy approach that focuses on solving specific societal challenges through targeted, strategic interventions. This methodology helps local authorities set clear, ambitious goals (“missions”) that require innovation and coordination across various sectors, driving economic growth while addressing complex problems such as climate change, urban resilience, and digital transformation.

The overarching objective of M4EG Phase III is to empower local authorities through innovative financing, public-private partnerships, and capacity-building initiatives. The initiative specifically aims to create:

1. Improved and adaptive systemic local-level economic development planning and implementation

2. Enhanced access to finance for local authorities through support for pipeline development and financing absorption

To achieve this objective, M4EG offers comprehensive support for local authorities, namely:

A. Urban Learning Center. All network members will have access to the enhanced Urban Learning Center, offering:

• Regular in-person and virtual workshops for capacity building
• A new leadership track for mayors and high-level local leaders
• The Women in Leadership programme, featuring training on negotiation skills, public speaking, and leadership strategies

B. Grant Opportunities

1. Support for up to 20 secondary cities with a phased approach under the Mission-Oriented Economy Programme. Selected cities will receive phased grant support of up to €120,000, with access to additional funding for some high-impact projects.

2. Innovation Grants: Up to 30 grants of €10,000 each for cities that have the willingness and capacity to be engaged in the experimentation process. The grants will enable faster testing and the experimentation of new modalities, instruments, mechanisms, and pilot projects in the field of local-level financing.

3. National Thematic Grant Calls: At least 10 grants (up to €60,000, with special consideration for larger projects up to €100,000).

С. Regional Networking. Both online and offline opportunities for members across the region, as well as with EU and international partners, to network, exchange, learn, and build new opportunities.

Marat Kyurchevsky, Programme Manager for the EU Integration-Public Administration Reform Programme of the European Delegation to Ukraine stated: “The Mayors for Economic Growth initiative, since its inception in 2017, has been at the forefront of addressing the challenges that Ukrainian cities have experienced before and during the war and constantly looking for positive solutions that could help these cities look into the future. Through this programme, the EU is investing directly in the backbone of Ukraine’s future — its cities and communities. Its extension for the next phase reflects our belief that empowering local authorities with innovative financing tools and strategic planning capabilities is crucial for building a resilient and sustainable Ukraine.”

Oleksii Riabykin, the Deputy Minister for Development of Communities and Territories of Ukraine, emphasized: “Strong and economically vibrant territorial communities are the cornerstone of Ukraine’s resilience. Thanks to our cooperation with the EU and UNDP, as well as initiatives such as M4EG, we are building local capacity and fostering recovery and development. Within this new phase of the project, together with our partners, we are laying the foundation for the sustainable recovery and development of local communities, which remains a top priority for the Government and the Ministry.”

Christophoros Politis, Deputy Resident Representative of the UNDP Ukraine, underlined: “Launching Phase III of the M4EG Facility, we are opening a new chapter in our partnership with Ukrainian cities and communities, working hand in hand with EU partners and the Government of Ukraine. This intervention goes beyond traditional approaches to local recovery and development, embracing innovation, sustainability, and community-driven solutions. Over the past four years, we have witnessed the incredible resilience and creativity of Ukrainian local authorities. Now, with enhanced support mechanisms, we are providing mayors and local leaders with the tools they need to transform their cities. This is not just about recovery — it’s about building the Ukraine of tomorrow.”

How to Get Involved:

Ukrainian local authorities, NGOs, and other stakeholders interested in joining the M4EG network or learning more about available opportunities can visit https://eum4eg.com or reach out to eu.m4eg@undp.org

Media Inquiries

Yuliia Samus, UNDP Ukraine Communications Team Leader, yuliia.samus@undp.org