The Project "Public Administration Development in the Regions of the Southern Federal District" was developed by the World Bank jointly with international donor institutions in response to the address of the RF Presidential Envoy in the Southern Federal District D.N. Kozak and regional administrations on providing the assistance in strengthening public administration systems in the South of Russia.

The project activities were included into the Medium-Term Action Plan "Strengthening Public Administration Systems in the South Russian Regions", which was presented by the World Bank at the joint meeting of the Council of the heads of municipal bodies of the Southern Federal District and the "North Caucasus" Association Council held on July 8, 2005 in Nalchik. It was admitted at the meeting that complex issues of public management demanded coordination of activities in this sphere. The decision to establish a special Working Group was made. Its members are the representatives of the Office of the RF Presidential Envoy in the Southern Federal District, regional Administrations, federal authorities and the "North Caucasus" Association. At the first meeting of the Working Group held on August 25, 2005, the Deputy RF Presidential Envoy in the Southern Federal District A.P. Pochinok was elected as the Head of the Working Group and the President of the executive committee of the "North Caucasus" Association A.V. Teplyakov was elected  as the Deputy Head of the Working Group. Continuous coordination of implementing the project activities is provided by the  Secretariat for the Working Group. A.A. Kazariants, Director General of Consulting Center "Foundation for Social Projects" has been appointed as the Head of the  Secretariat for the Working Group.

Financing  donors' activity coordination as well as providing consultations on the issues of strategy, assistance within organization of  knowledge sharing events was initially performed out of the proceds of the Trust Fund which was created jointly by the World Bank and the European Union (2006-2007). Starting from January 2008 financing is performed out of the proceeds of the World Bank - DFID Trust Fund.

The main beneficiaries of the Project are the Office of the RF Presidential Envoy in the Southern Federal District and Regional Administrations.