Contact: Tony Brown, ext 6389

1. Summary

1.1 The following decision is sought:

That the Executive Member for Environment and the Director of Environment conclude a grant finance contract with the European Commission for the funding of an Institution Building Partnership Programme project for the provision of advice and assistance to the local public transport authorities in Nizhny Novgorod, Russia.

2. Reason

2.1 Earlier this year the County Council successfully completed a project evaluating public transport in Nizhny Novgorod, Russia including the provision of advice and training to officers of Nizhny Novgorod City. The project formed part of the Technical Assistance for the Cities of the Independent States (TACIS) City Twinning Programme funded by the European Commission. Further funding opportunities were identified in the next tranche of TACIS, now known as the Institution Building Partnership Programme (IBPP), and this report outlines proposals for further project work with Nizhny Novgorod.

3. Other Options Considered and Rejected

3.1 Not applicable

4. Conflicts of Interest Declared by the Decision Maker or a Member or Officer Consulted - None.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the Matter being dealt with if Urgent - Not applicable.

Approved by Date

Councillor K B Estlin

7. IBPP Project

7.1 The IBPP encourages local authorities in Western Europe and the states of the former Soviet Union to work together to restructure and to train their managers. In broader terms, the programme enables authorities to consolidate links, including identifying business opportunities Its role in staff development and training is also significant.

7.2 Nizhny Novgorod, formerly Gorky, is the third largest city in Russia, with a population of 1.4 million. It is located 250 miles east of Moscow at the confluence of the Volga and Oka rivers and is a major commercial, industrial and military centre. There is an extensive municipal public transport network of buses, trolleybuses, trams and underground.

7.3 The proposed project, through a programme of exchange visits, would concentrate on providing technical advice to the Council's Russian counterparts, to assist them in developing political and operation management structures for public transport in Nizhny Novgorod in order to take forward policy, strategy and service improvements.

7.4 The project provides clear benefits for the partners. The advantages in terms of the County Council's involvement are:

(i) developing experience and expertise;

(ii) assessing internal methods prior to external advice being given;

(iii) providing staff training, development and enhancing recruitment/retention prospects;

(iv) raising profile and offering networking opportunities; and

(v) enhancing the Council's European track record, including strengthening bids for funding from other EC programmes.

7.5 The project will further develop the work of the original TACIS project and consolidate the links and contacts established between the two authorities. There will also be opportunities for broader economic and business opportunities to be assessed. In addition operators and suppliers will be able to showcase products and expertise.

7.6 In liaison with the Deputy Leader, Executive Member for Economic Development and the Executive Member for Environment a project application was submitted to the European Commission in April. On 20 September 2002 the County Council was notified that the EC Evaluation Committee had recommended the project for grant financing.

8 Financial Implications

8.1 The IBPP guidelines are that the partner authorities provide 20 percent co-financing for the project. The European Commission can provide co-financing up to 80 percent of project costs to a maximum of 200,000 Euros. A grant of 154,000 Euros is sought. The County Council's contribution can be offset by recharging staff time to the project and there is no need to call on operational budgets.

9. Legal Powers

9.1 The Local Government (Overseas Assistance) Act 1993 empowers a local authority to provide advice and assistance as respects any matter in which they have skill and experience to a body engaged outside the United Kingdom in the carrying on of any of the activities of local government. This power must be exercised in a way that is authorised by the Secretary of State. The general authorisation issued by the Secretary of State for these purposes includes the giving of advice and assistance under programmes sponsored and funded in full or in part by the European Community. This is the case with the current proposal.

7472/AB