The aim of the project is capacity building of two faculties in the field of energy and process engineering. Faculties are close to the state border and strengthening their future cooperation by jointly developing MSc study programmes would significantly contribute to the overall human capital development of the region.Institutions of Higher Education (HE) in the engineering profession need to respond more quickly to rapid technological development, and to harmonise both their education programmes and research work with the newest developments and innovations in the field. Appropriate education is crucial for countries’ future development on the basis of private initiative with small and medium sized enterprises. The industrial development of the region on both sides of the border is preconditioned by the human capital building, and thus by the result of their higher education institutions work. Achievements: High education institutions in the field of engineering need to respond more quickly to rapid technological developments and to harmonise both their education programmes and research work with the latest developments and innovations. Appropriate education is crucial for a country’s industrial development and as, this project shows, it can be significantly enhanced by closer cooperation of academic institutions with industry and small- and medium-sized enterprises. The industrial development of the region on both sides of the border can be achieved by increasing employability of young engineers. This, in turn, is a result of timely and continuous upgrade of the subjects, research methodology and teaching methods in the higher educational institutions in the border region. To this end, the two universities, one from Novi Sad and the other from Szeged, developed a modernised, high quality curriculum, accredited a new MSc programme, purchased new laboratory equipment and created new teaching materials. They also organised trainings, workshops and conferences paying special attention to creating a bridge between future engineers and industry, their future employers.For example, the members and stakeholders in the industry had a manifold role in this project. Industry representatives not only participated in the process of industry needs investigation, but also were closely involved in process of curricula development. Additionally, a workshop organized in Novi Sad featured a special session with presentation of project results to the industry representatives in order to familiarize them with modernized curriculum and study programme and the profile of young experts they can expect in the upcoming period. Study programmes for Mechanical Engineers on MSc level at the Faculty of Technical Sciences and for BSc level engineers at the University of Szeged have been accredited. Potential and current students were regularly informed about the possibilities of newly developed programmes and informed on industry needs for skilled and trained Mechanical Engineers BSc and MSc. During the Info days and Open door days teaching material developed through the project were distributed to the potential and current students. At the final steering committee meeting the partner institutions summarized the mutual benefits of their sixteen month cooperation and plans for the future cooperation were introduced in details. The developed contemporary curriculum will benefit both students and their future employers; it will highly improve the competitiveness of young people just starting their careers.