The project INOVAR – Increasing the competitiveness and innovativeness of metal-processing sector through the development of public-private partnership is funded through the EU Pro Local Program and implemented from 11/2017 to 11/2018. The overall goal of the project is to increase the competitiveness of small and medium sized enterprises in metal processing industry by improving cooperation between the public and private sectors to harmonize supply and demand in the labor market and increase innovativeness of the education system in the Municipality of Derventa. Through the project the following results are achieved: equipment for autogenous welding was installed in process of practical teaching in the Secondary and Technical School of Derventa, what improved the teaching process; delivered trainings for teaching staff; prepared program of practical classes in the production plant; conducted practical classes in the production plant; prepared a program for retraining of adults as welders, promoted welding courses in vocational schools and employment opportunities in companies operating in metal-processing sector; strengthened public awareness on labor market needs. The value of the project is 74.904,47 EUR.