Brussels - UN-HABITAT and the Stability Pact for South Eastern Europe signed a co-operation agreement this week paving the way for gradual implementation of the "Regional Capacity Strengthening Programme for Urban Development and Housing in South Eastern Europe" (RCSP) in 2006.

The rapid pace of urbanisation in South Eastern Europe has been accelerated through economically motivated rural-urban migration flows.  This is putting enormous pressure on urban housing markets. Given the scale of socio-economic challenges (such as adequate access to affordable shelter options and social infrastructure) as well as environmental risks (such as landslides or pollution of potable water reservoirs caused by informal housing development), the implementation of responsive housing policies and tools for sustainable urban development is of paramount importance.

"The RCSP will support SEE countries in furthering essential reforms in the area of social housing and urban development in general and thus contribute to economic growth, a more equitable distribution of social and economic opportunities and to environmental sustainability," Special Co-ordinator of the Stability Pact for South Eastern Europe Erhard Busek said. He further reiterated that successful implementation of the programme will help SEE in meeting European standards in human settlements development and will lead to an improved capacity to secure investments in crucial areas such as social housing and urban renewal.

Following agreement on the overall RCSP in October 2005, stakeholders from SEE, International Financial Institutions and the international organisations agreed a joint SP/UN-HABITAT work-plan for final programme preparation activities. These will be financially supported by the Council of Europe Development Bank (Norwegian Trust Account) and the Swiss Development Co-operation.

The relevant SEE Ministries have each appointed a national co-ordinator for this process. These officials will work closely with the SP/UN-HABITAT expert team in undertaking detailed consultations and organising pilot activities in the coming months. It is expected that the formal programme will commence in late 2006.

For further information, please contact Stability Pact's Spokesperson Mr Dragan Barbutovski at the SP Secretariat in Brussels (Tel: +32 2 401 87 25 or press@stabilitypact.org) or
Mr Bjoern Gabriel of the Stability Pact's Housing and Urban Development Initiative (Tel.: +32 2 286 13 64 or bjoern.gabriel@stabilitypact.org).

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PR2006/001