The present assignment was aimed at contributing to the design of incoming and the increased effectiveness of existing EU-funded programs operating in the area of local government and support to municipalities in Libya. In particular, it was focused on looking at the Libyan context (internal issues as well as external factors and the various facets of the donors’ community) and elaborate recommendations and vision for a common approach as for an Integrated Territorial Development Diagnostic (ITDD) as well as the TALD (Territorial Approach to Local Development) which are both at the core of the European Union Foreign Policy for Development and the New Consensus for Development. TALD looks at decentralization from another point of view by adding elements and features in order to generate endogenous development and avoid further fragmentation.