The program in its second phase consists of three components:

Component 1 “support to local development”; it’s constituted of the allowances that will be granted to Councils in terms of drawing rights,

•    contribute to the improvement of socio economic conditions, including increase of productivity of basic natural resources,
•    increase of incomes by the people in councils supported by the PNDP.

Component 2 “support to councils in the decentralization process” aims to:

•    Support the ongoing institutional reforms,
•    Build the capacities of municipalities in the decentralization process,
•    Assist in the implementation activities of capacity building of municipalities and other local bodies such as local support organization (LSO), multidisciplinary teams of decentralized sector ministries and service providers so they can effectively promote local development.

Component 3 “Coordination, Management, Communication and Monitoring and Evaluation”; Aims to facilitate:

•    Coordination of institutional partners,
•    The administrative, technical and financial management of the program,
•    Effective contractual arrangements between Councils, sector ministries and service providers, including acquisition of equipment required for the Program,
•    Monitoring and evaluation of performance and financial, environmental, and social impacts of the Program,
•    The development of communication activities.