PLANNING AND LOCAL GOVERNANCE PROJECT (PLGP) IN ALBANIA FIRST ANNUAL REPORT
(JANUARY–SEPTEMBER 2012)
October 30, 2012 This publication was produced for review by the United States Agency for International Development. It was prepared by Tetra Tech ARD.
Prepared for the United States Agency for International Development, USAID Contract Number AID-182-C-12-00001, Albania Planning and Local Governance Project (PLGP)
Tetra Tech ARD Contact: Adrienne Raphael [email protected]
Tetra Tech ARD Home Office Address: Tetra Tech ARD 159 Bank Street, Suite 300, Burlington, VT 05401 Tel: 802 658-3890, Fax 802 658-4247 www.ardinc.com
PLGP Address: Planning and Local Governance Project in Albania St. Dervish Hima, 3 Towers near Qemal Stafa Stadium, Tower No. 1, Apt. 91, Tenth Floor, Tirana, Albania Tel: + 355-04-450-4150, Fax: + 355-04-450-4149 www.plgp.al
PLANNING AND LOCAL GOVERNANCE PROJECT (PLGP) IN ALBANIA
FIRST ANNUAL REPORT JANUARY–SEPTEMBER 2012
OCTOBER 30, 2012
DISCLAIMER
The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.
CONTENTS
CONTENTS ...... i ACRONYMS AND ABBREVIATIONS ...... ii EXECUTIVE SUMMARY ...... iv PROJECT OVERVIEW ...... IV START UP ACTIVITIES ...... IV PROGRAMMATIC ACTIVITIES ...... V CHALLENGES FOR YEAR TWO ...... VII 1.0 KEY ACTIVITIES CARRIED OUT DURING THE FIRST YEAR ...... 1 1.1 SELECTION OF LOCAL GOVERNMENT UNITS ...... 1 1.2 MEMORANDUM OF UNDERSTANDING SIGNING CEREMONY ...... 4 1.3 THE NATIONAL TERRITORIAL PLANNING AGENCY ACTION PLAN ...... 5 1.4 ICT ASSESSMENT AND ACTION PLAN ...... 5 1.5 ACTION PLANNING WITH PARTNER MUNICIPALITIES ...... 6 1.6 WHITE PAPER ON FISCAL DECENTRALIZATION ...... 7 1.7 WATER UTILITIES BASELINE ASSESSMENT AND ACTION PLAN ...... 7 1.8 “LOCAL GOVERNANCE ORIENTATION” WORKSHOP WITH PEACE CORP VOLUNTEERS ...... 8 2.0 YEAR ONE ACHIEVEMENTS AND KEY YEAR TWO PROPOSED ACTIVITIES FOR EACH COMPONENT...... 9 2.1 COMPONENT 1: DECENTRALIZATION ...... 9 2.1.1 Achievements for the First Year ...... 9 2.1.2 Key Activities Proposed for the Second Year ...... 10 2.2 COMPONENT 2: LOCAL GOVERNANCE ...... 11 2.2.1 Achievements for the First Year ...... 11 2.2.2 Key Activities Proposed for the Second Year ...... 12 2.3 COMPONENT 3: UTILITY MANAGEMENT ...... 13 2.3.1 Achievements of the First Year ...... 13 2.3.2 Key Activities Proposed for the Second Year ...... 15 2.4 COMPONENT 4: URBAN PLANNING ...... 15 2.4.1 Achievements of the First Year ...... 15 2.4.2 Key Activities Proposed for the Second Year ...... 17 3.0 PERFORMANCE MANAGEMENT AND MONITORING ...... 19 3.1 MILESTONES...... 19 3.2 PERFORMANCE INDICATORS ...... 22 4.0 BUDGET EXECUTION ...... 24 5.0 ADMINISTRATION AND PROJECT MANAGEMENT ...... 25 ANNEX 1: LIST OF COUNTERPARTS AND BENEFICIARIES ...... 27 ANNEX 2: LIST OF REPORTS, ASSESSMENTS, AND OTHER RELEVANT DOCUMENTS ...... 30
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) i ACRONYMS AND ABBREVIATIONS
AAC Associations of Albanian Communes AADF Albanian American Development Fund AAM Association of Albanian Municipalities CAP Citizen Advisory Panel CEZ Albanian Electric Power Supply Company COM Council of Ministers COP Chief of Party COR Contracting Officer’s Representative CSO Civil Society Organization DCM Decision of the Council of Ministers DO Development Objective DP Democratic Party of Albania DSDC Department of Strategy and Donor Coordination EU European Union ICT Information and Communications Technology IT Information Technology GDP Gross Domestic Product GIS Geographic Information System GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH GoA Government of Albania GNTP General National Territorial Plan LGPA Local Governance Program in Albania LGU Local Government Unit LoPWP Life of Project Work Plan MCM Municipal Capacity Matrix
ii PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) MoF Ministry of Finance MoI Ministry of Interior MOU Memorandum of Understanding MP Member of Parliament NDI National Democratic Institute NGO Non-Governmental Organization NTC National Territory Council NTPA National Territorial Planning Agency OSCE Organization for Security and Co-operation in Europe PCVs Peace Corps Volunteers PLGP Planning and Local Governance Project PMP Performance Monitoring Plan PPP Public-Private Partnership RDA Regional Development Agency SDC Swiss Agency for Development and Cooperation SHUKALB Water Supply and Sewerage Association of Albania SoW Scope of Work SP Socialist Party of Albania STTA Short-Term Technical Assistance TP Territorial Planning TPL Territorial Planning Law UNDP United Nations Development Programme UNESCO United Nations Educational, Scientific and Cultural Organization USAID United States Agency for International Development USG United States Government VAT Value-Added Tax WRA Water Regulatory Agency
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) iii EXECUTIVE SUMMARY
PROJECT OVERVIEW
The Planning and Local Governance Project in Albania (PLGP) is a five-year United States Agency for International Development (USAID) project designed to contribute to USAID/Albania’s Development Objective #1 (DO#1), Strengthened rule of law and improved governance, as elaborated in Albania Country Development Cooperation Strategy 2011–2015. DO#1 supports the strengthening of democratic institutions in the country by improving the judiciary and governance of health care, deepening the decentralization process, and rooting out corruption, with the goal of advancing democracy in the country while meeting key criteria for Albania’s accession to the European Union (EU). In this framework, the goal of the PLGP in Albania is to provide technical assistance and training to the Government of Albania (GoA) and Albanian local government institutions to help the GoA and local governments units (LGUs) successfully implement decentralization legislation, policies, and reforms. The Project will achieve this goal through the implementation of the four components:
Component I: Decentralization, the main goal of which is to support the GoA’s work to implement effective government decentralization policies and legislation. Component II: Local Governance, which has a goal to improve the efficiency, transparency, and accountability of local government operations. Component III: Utility Management, which will focus its work in improving local government management and oversight of selected public utilities to provide services in accordance with EU standards. Component IV: Urban Planning, of which the main goal is to strengthen the capabilities of the GoA and local governments to plan and manage urban and regional growth.
On January 3, 2012, Tetra Tech ARD was awarded the five-year USAID Planning and Local Governance Project in Albania. Per the Tetra Tech ARD Contract with USAID, this First Annual Report covers the period from the Contract effective date of January 3, 2012 through September 30, 2012, coinciding with the remainder of the United States Government (USG) Fiscal Year 2012.
START UP ACTIVITIES
The arrival of the Chief of Party (COP), Peter Clavelle, on January 27, 2012, marked the commencement of the technical start-up of the Project beginning with initial discussions with USAID, staff, and local partners. Activities during February–March 2012 were mainly focused on the administrative and technical start-up of the PLGP. The mobilization of the PLGP was completed and key tasks related to administrative mobilization, work plan development, and technical start-up were undertaken. The recruitment and hiring of key staff concluded and contracts were signed with the Albanian subcontractors, Valu Add and Co-PLAN.
iv PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) PROGRAMMATIC ACTIVITIES
As an initial task, PLGP efforts were concentrated on the process of identifying 15 partner LGUs. Tetra Tech ARD, in consultation with USAID, managed the process of assessment, screening, and selection of LGUs, including both municipalities and communes, for participation in Components II, III, and IV of the PLGP. In the same time as the selection process, the PLGP submitted the Year One Work Plan which described the overall approach to be used in Year1 and the activities to be taken under each component toward the stated tasks and deliverables of the PLGP. The Work Plan included also an Implementation Timeline providing a detailed plan of activities that would be undertaken during the remaining eight months for each of the four project components. Following the selection of partner LGUs, they were required to enter into a formal Memorandum of Understanding (MOU) with the Project. This occurred at the Project Launch and Memorandum of Understanding (MOU) Signing Ceremony held on May 18, 2012. High-ranking government officials participated in the event, including the Prime Minister and various ministers and deputy ministers, raising the awareness of the PLGP and demonstrating the government’s initial commitment to support the development of local governance in Albania. The system of intergovernmental transfers and the transfer of resources to sub-national governments are among the main decentralization debates occurring in Albania. The system has been monitored regularly by USAID and the World Bank, and several reports and recommendations have been prepared and delivered to the Ministry of Interior (MoI) and Ministry of Finance (MoF). In order to support the GoA’s work to implement effective government decentralization policies and legislation, the PLGP prepared a White Paper on Fiscal Decentralization in Albania during Year One. More than a document, the White Paper was considered as an instrument/ process to set up and institutionalize a dialogue among different stakeholders involved in fiscal decentralization issues. The White Paper provides an objective basis upon which the discussion of issues concerning intergovernmental finance is framed by and between representatives of the GoA, local governments, and other key stakeholders. Building on the existing body of research and analysis, the White Paper provides means to stimulate central and local-level dialogue and consensus building on what further actions can be implemented to support the continuation of the fiscal decentralization effort in Albania. The White Paper builds on a series of “issue dialogues”/status reports (on local revenues, asset management, local borrowing, and urban planning) and examines the main areas of fiscal decentralization: legal framework, administrative territorial structures and expenditure assignments, revenues and intergovernmental transfers, and local borrowing. Findings of this White Paper were broadly discussed with central and local government authorities, as well as with the national local government associations and the donors community. Comments and proposals received were included in the final draft of the White Paper, which was finalized in September 2012 and discussed at the Fiscal Decentralization Conference held in the beginning of October 2012. As an initial step for improving the efficiency and the management of local government operations, the PLGP conducted an Action Planning process during Year One (in June–July 2012) with partner municipalities. Action Planning Workshops were conducted in each of the 15 partner LGUs for the purposes of better understanding their specific needs, tailoring the PLGP level of engagement during Year Two of the Project, and identifying needs and priorities for the Life of the Project. At the end of this process, Action Plans were drafted for each of the partner municipalities. The process brought together all local partners and helped to create and raise awareness on the scope of work and technical assistance activities intended to be delivered to partner LGU within the framework of the PLGP. They also served to inform local stakeholders of other donors and government-supported programs for purposes of avoiding unnecessary overlapping, creating synergies, and coordinating complementary activities.
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) v An Information and Communication Technology (ICT) Action Plan was drafted in June 2012 for the 15 partner LGUs. The ICT Action Plan was compiled based on the findings of the ICT Needs Assessment conducted for each partner LGU during Year One. Each LGU’s Assessment examined the current ICT status, anticipated ICT needs and priorities, training and technical assistance needs, required infrastructure support, and cost estimates for hardware and software. The Assessment included the identification of software packages that can be applied immediately, particularly those with documentation available in the Albanian language and designed to address Albanian laws and procedures. Regarding the Water Sector, the GoA transferred ownership of publically owned water and wastewater utility companies to municipalities and communes in 2007. Local governments are responsible for provision of the public services in particular the water supply and sewerage services to the customers. The current challenge in the water sector is to increase the capacities of supervisory board members and management staff of the utilities. Improving the performance and the quality of the services in compliance with EU standards is one of the objectives established in the National Water Supply and Sewerage Sector Strategy approved by the Council of the Ministers in 2011 and requires capacity building. Aimed at improving the performance and management of partner utilities, the PLGP Component III, conducted detailed interviews with the management staff of the partner utilities and/or water and sewerage services departments and their inputs were included in the Water Utilities Baseline Assessment and Action Plan. The Water Utilities baseline Assessment Report highlights the necessity to assist and support not only the 8 utilities foreseen in Tetra Tech ARD’s proposal but in all 11 water supply and sewerage utilities that service the 15 PLGP partner LGUs. In compliance with the Year One Work Plan for Component III and in close collaboration with the Water Regulatory Agency (WRA), the Supervisory Council Guideline and Training Manual has been updated; reflecting the changes to the legal framework, the recently approved Tariff Methodology, and the Tools and Methodologies to Monitor Utility Performance and oversight. The Business Planning Model and Process has been introduced to all senior management and the Supervisory Councils of partner utilities. During Year One, the PLGP initiated efforts to support two partner utilities to update their business plans and develop performance improvement programs. A forecasted financial plan will increase progress toward ensuring full cost recovery and a rational tariff strategy. In addition, a thorough review of the Management Reporting Practices for each partner utility has been carried out. A review of the legal framework in Albania in the areas of water and wastewater was carried out and a training course on EU environmental laws, standards, and practices in the water, wastewater, and solid waste management fields will take place in Year Two. The PLGP conducted a baseline assessment of current customer service management practices in partner utilities and developed a draft “Local Government Customer Services Training Manual” for the training of local officials in the selected partner utilities. Component IV of PLGP works to strengthen the capabilities of the GoA and local governments to plan and manage urban and regional growth. This Component had some significant successes in Year 1 of the project. The Territorial Planning Law, approved in 2009, introduced a new planning system in Albania that reflects best international practice in spatial planning and land management. The law also introduces new institutions (including the National Territorial Planning Agency [NTPA]) and important planning instruments at both the national and local levels. Nonetheless the pace of progress in the planning sector is still weak because: The implementation of the law is rather slow due to limited understanding and acceptance; The legal and regulatory framework contains certain deficiencies that impact proper implementation; The process for drafting the General National Territorial Plan has yet to be initiated;
vi PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) Several local governments have started to draft territorial plans, but the vast majority still have not initiated the planning process; NTPA capacities are as yet limited to cope with its institutional mandate; and Local governments are often unable to cope with the complex territorial planning and development issues as defined in the new legal requirements. PLGP is helping to address these critical issues in order to contribute to sustainable territorial development. This effort is critical for boosting economic potential in the country, as well as for avoiding the serious risks posed by unplanned and unmanaged urban and regional development on the country’s most important territorial assets; its coasts, landscapes, and cultural heritage. During the first year of work, Component IV of the PLGP has achieved the following results: Assisted the NTPA in the preparation of its Action Plan. The Plan was endorsed by NTPA on March 29, 2012 and approved by USAID on April 5, 2012. This Plan delineates specific actions to be taken during the next 10-years, and identifies concrete assistance PLGP shall provide; and A formal MOU for the implementation of the NTPA Action Plan has been signed between the PLGP and NTPA at the Project Launch Ceremony on May 18, 2012. Since the adoption of the Action Plan in April, three bylaws (regulations) have been prepared and 10 municipalities received coaching to revise their territorial plans in line with the new legal framework.
CHALLENGES FOR YEAR TWO
Given the polarized political environment in the country, the Project will face a number of implementation challenges in the coming year. In general, efforts to promote decentralized governance and strengthen local government in Albania will face many challenges - both political and economic. Specifically, these challenges include: Increased political polarization along party lines is likely to occur as Albania approaches the parliamentary elections anticipated for June 2013. Partisan politics may inhibit the thoughtful discussion and consideration of public policies affecting local government. A worrisome trend is the decline of intergovernmental transfers. This is a serious challenge that threatens the viability of local governments in Albania. Economic conditions will likely hinder any efforts to increase the size of the transfers from the GoA to local governments in the short-term. Any discussion of increasing local government revenues as a percentage of Gross Domestic Product (GDP) will be hindered by the deteriorating conditions for economic growth (the World Bank estimates that GDP growth for the current year, once estimated at 4 percent, will be 1 percent). Caps on public indebtedness are likely to limit the ability of local governments to borrow the funds they need to invest in necessary infrastructure and other capital improvements. The public debt limit of 60 percent of GDP is unlikely to be increased in the short-term. Given that public debt is currently at 59 percent of GDP, there is virtually no opportunity for local governments to borrow. This reality, coupled with central government restrictions on the use of debt by local governments, makes it impossible for local governments to finance capital investments and infrastructure improvements. The delivery of local services–particularly the provision of water and wastewater services by jointly owned utility companies–will remain a daunting challenge. This challenge will be exasperated by a recent GoA decision to intervene in local government budgets, thereby capturing revenues anticipated by LGUs to pay to the Albanian Electric Power Supply Company (CEZ) the unpaid electricity bills of
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) vii utilities. This seemingly ends the GoA subsidization of water utilities without a corresponding increase in the capacity of utilities to generate revenues sufficient to cover operating costs. The implementation of regional solid waste management plans also presents serious challenges. Local governments will continue to be challenged to produce significant increases in own source revenues. Specific challenges in revenue generation include problems in collecting the small business tax, particularly given the limit on tax rates and the lowering of the Value-Added Tax (VAT) threshold by the central government; difficulty in establishing an efficient property tax system, with serious issues in regards to the coordinated sharing of information between central and local authorities; and dramatic decreases in the revenues generated by the infrastructure impact fee given the moratorium on development related to adoption of local Territorial Plans. The implementation of the 2009 Law on Territorial Planning will continue to pose challenges for both national- and local-level governments. The implementation of the law is slow, due to limited understanding and acceptance. The legal and regulatory framework has certain deficiencies that impact proper implementation. Most local governments have limited capacity to address complex territorial planning and development issues. In addition, the capacity of the NTPA to fulfill its institutional mandate is also limited. The lack of progress on territorial reform will continue to challenge efforts to strengthen local governance. Many have advocated for territorial administrative reform to ensure effective economies of scale and to acknowledge that small LGUs are not economically sustainable. The protection and promotion of human rights will continue to be a challenge for local governments. The State cannot be the only guarantor of human rights. Local authorities deal with human rights issues on a daily basis. The protection of human rights requires independent complaints mechanisms and the inclusion of marginalized and disadvantaged groups in decision making processes. The need to provide awareness-raising, training, and education must be addressed if local authorities, and their citizens, are to foster a human rights culture.
The inability to speak with a unified voice continues to hamper the effectiveness of local governments in advocating for their interests with central government. The existence of two separate associations of municipalities, split in membership between the two major political parties, has weakened the voice of local government in advocating for their interests with the central government.
viii PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 1.0 KEY ACTIVITIES CARRIED OUT DURING THE FIRST YEAR
1.1 SELECTION OF LOCAL GOVERNMENT UNITS
The initial task undertaken by the United States Agency for International Development (USAID) Planning and Local Governance Project (PLGP) in Albania was the process of ranking and assessing Albanian Local Government Units (LGUs) to identify a targeted group of 10–15 candidate local governments for inclusion in the Project. The municipal screening and selection process was conducted with the assistance of two qualified short- term Municipal Selection Specialists, Mr. David Smith, former Chief of Party (COP) on the Local Governance Program in Albania (LGPA), and Dr. Lynnette Wood, principal developer of Tetra Tech ARD’s proprietary municipal selection tool and practitioner of the Municipal Capacity Matrix (MCM) methodology. The PLGP team also made significant contributions to the screening and selection process. Size was the initial criteria used for narrowing the list of potential candidates. LGUs with populations of greater than 18,000 represented the initial universe of candidates for participation in the PLGP. Given the desire for the PLGP to work with LGUs that have experienced significant urban growth in the past few years, as well as the desire to work in LGUs that have the potential for high impact, this universe of 29 candidate LGUs was presented as part of the Tetra Tech ARD proposal and incorporated into its contract with USAID. The 29 municipalities and communes that met this requirement contained nearly 50 percent of the total population of Albania, and hence spoke to the ability of the PLGP to Figure 1. Municipality of Vlora. have an impact on a significant portion of the total population of the country. Location was also an important criterion; as such, Tetra Tech ARD took geographic factors into consideration during the initial screening process. The screening considered total metropolitan area population (center city plus logically related communes), areas with high growth rates over the past two decades (largely the coastal lowlands), and areas with significant environmental and/or tourism value. Letters of Invitation were issued to the mayors in these 29 candidate LGUs during February 2012. The letters of invitation outlined the broad parameters of the PLGP and identified key commitments that would be expected of successful partner communities in the program. These commitments included willingness to cost-share, hire and retain critical staff, and adopt an inclusive and transparent approach to local government decision making.
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 1 A Self-Assessment Questionnaire was included with the invitation to elicit detailed and quantitative information from the candidate communities regarding the current status of tax collection, asset management, information technology (IT) and e-governance capability, territorial planning, various public services, environmental compliance, energy efficiency, and citizen and business participation in local decision making. The LGUs had approximately 10 days to complete these self-assessment questionnaires. Completed self-assessment questionnaires and expression of interest were received from 23 of the invited 29 LGUs. The questionnaires covered the functional areas of Tetra Tech ARD’s MCM tool, which was used during the field visits to short-list 19 LGUs and to collect information on their capacity. In order to guide the local staff and counterparts, a concise MCM User Manual was prepared for use by the PLGP staff The final list of 15 recommended LGUs included a good cross-section of community types in terms of their current capacities, needs, and potentials (Below you may see the table with the selection results). Cities from all of Albania’s regions were represented (except in the north, where the Swiss Agency for Development and Cooperation [SDC] local governance program is already providing intensive assistance). Two of Albania’s United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage sites are included (Berat and Butrint, adjacent to Saranda). In addition, tourism potential is considerable in several other recommended cities, including Korça, Elbasan, Vlora, Fier, Tirana, and Durres. Areas with sensitive environmental resources, such as the Adriatic and Ionian Coasts, were well-represented and will provide an important context for introducing innovative planning and development control mechanisms; these Figure 2. Letter of Interest jointly submitted by Mayor of included Saranda, Vlora, and Durres. The Elbasan and Chairman of Elbasan Municipal Council. Report on the Selection of Local Government Units was approved by USAID on April 3, 2012.
2 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) TABLE 1.1: PARTNER LGUS
Characteristics Status vis-à-vis PLGP Municipality / Commune Population Mayor Council Muni / Name (2009 Civil Type Water Utility Planning Status IT Status Citizen Engagement Party Party Comm Registry) Tirana Cluster (Qark: Tirana)
Tirana 604,750 DP DP I M Tirana W&S Utility In process Advanced Advanced
Kamza 76,032 DP DP III M City-Owned Water Utility Needs revision Intermediate Intermediate Not yet started Paskuqan 38,147 DP DP III C Tirana W&S Utility Basic Basic Tender in process Kashar 20,326 DP DP III C Tirana W&S Utility Basic Advanced Needs revision Vore 18,008 DP DP III M Tirana W&S Utility Basic/Intermediate Basic Central Cluster (Qarks: Berat, Fier)
Berat 62,824 SP SP II M Berat-Kucova W&S Utility Needs revision Intermediate Intermediate
Kucova 30,323 SP SP III M Berat-Kucova W&S Utility Not yet started Intermediate Advanced Fier 82,824 SP SP II M Fier W&S Utility Approved Advanced Advanced
Lushnje 53.337 SP SP II M Lushnije W&S Utility Needs revision Basic Basic/Intermediate Patos 30,944 SP SP III M Patos W&S Utility Not yet started Basic Basic
Western Cluster (Qark: Durres)
Durres 197,953 SP DP I M Durres W&S Utility Needs revision Advanced Advanced Southern Cluster (Qarks: Vlora,)
Vlora 132,159 SP SP III M Vlora Water Utility Needs revision Intermediate Intermediate/Advanced
Saranda 39,469 SP SP II M Saranda W&S Utility In process Intermediate Intermediate/Advanced Eastern Cluster (Qarks: Elbasan, Korça)
Elbasan 122,087 SP SP II M Centrally Owned W&S Util. In process Advanced Advanced Korça 86,654 SP SP II M Korça W&S Utility Needs revision Advanced Advanced Mayor Council Muni / Type Water Utility Planning Status IT Status Citizen Status Party Party Comm TOTALS in recommended 2 Type I, 4 not yet started, 7 need 15 5 DP, 10 13 M, 2 6 DP, 9 SP 6 Type II, 6 11 water utilities revision, 3 in process, 1 Full range Full range SP C Type III approved
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 3 1.2 MEMORANDUM OF UNDERSTANDING SIGNING CEREMONY
Partner communities were required to enter into a formal Memorandum of Understanding (MOU) with the Project. This occurred in the Project Launch and Memorandum of Understanding (MOU) Signing Ceremony held on May 18, 2012. Over 170 participants attended the event, including the US Ambassador to Albania, A. Arvizu; the Albanian Prime Minister, S. Berisha; the USAID Senior Deputy Assistant Administrator for the Europe and Eurasia Bureau, R. Mahoney; the USAID Mission Director, J. Williams; the mayors of the 15 partner municipalities; several ministers and deputy Figure 3. United States Ambassador to Albania, ministers; and representatives of the diplomatic Alexander Arvizu, greeting the attendees. corps, international organizations, and national organizations. The event generated broad media coverage and interest among the stakeholders and general public. The MOU was signed between the PLGP and each of the 15 partner LGUs outlining the cooperation with the PLGP and the assistance that will be provided by the project for improving public service delivery, planning and local governance, and strengthening civic engagement in the development of Albanian cities. In addition, a MOU was signed during the Ceremony with the National Territorial Planning Agency (NTPA) to reinforce the commitment Figure 4. Mayors of PLGP partner cities at the and cooperation between the PLGP and NTPA. Launch Conference. The PLGP will help the agency better plan and manage urban and regional growth strategies. The Citizen Advisory Panel (CAP) concept was also endorsed in each MOU signed with partner communities. The event included a panel discussion on key issues for decentralization reform which involved representatives of the Ministry of Interior (MoI) and Ministry of Finance (MoF), Members of Parliament (MPs) from the main political parliamentary parties (the Socialist Party of Figure 5. PLGP Chief of Party, Peter Clavelle (left); Albania [SP] and the Democratic Party of Mayor of Tirana, Lulzim Basha (middle); and USAID/Albania Mission Director, Joseph C. Williams, Albania [DP]), the Prime Minister’s Advisor on sign the Memorandum of Understanding. Local Governance issues, and PLGP partner mayors. The session served to initiate a dialogue among the parties represented regarding the current status of local government and decentralization in Albania. The main message that resulted from this session was the need to build consensus on the
4 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) necessary reforms required to advance the decentralization process and consolidate the authority of local government in the country.
1.3 THE NATIONAL TERRITORIAL PLANNING AGENCY ACTION PLAN
One of the main tasks of Component IV of the PLGP is to support the NTPA improve its capacities and exercise its mandate to effectively implement the Territorial Planning Law (TPL). The NTPA is responsible for coordinating horizontally (among national authorities involved in territorial planning) and vertically (between national and local planning authorities). Additionally, the NTPA provides training and technical support to national and local planning authorities; conducts research and evaluations as a basis to develop recommendations for legal changes, improvements to planning processes, or other necessary measures; maintains the planning registry; and provides public information regarding all aspects of territorial planning. Figure 6. NTPA vision statement. Given the broad and complex mandate of NTPA and its financial and human resource constraints there was a need to prioritize and integrate an approach to the institution building and strengthening of the Agency. As an initial task under the PLGP, the Component IV team facilitated a series of strategic planning sessions with officials from the NTPA and other stakeholders at the national level to review current NTPA strategy documents, outline additional steps required for achieving the Figure 7. View of a PLGP meeting with NTPA officials. NTPA mandate, and identify a subset of training and capacity-building elements for project assistance. The result of this strategic planning process was the NTPA Action Plan, which lays out the actions to be taken by NTPA in the short, medium, and long term. The actions to be implemented with the support of the PLGP over the next five years are also highlighted. These actions will ensure that NTPA has the human and institutional capacity to effectively perform its mandate. This Action Plan was endorsed by the NTPA and approved by USAID on April 5, 2012.
1.4 ICT ASSESSMENT AND ACTION PLAN
The Information and Communication Technology (ICT) Consultant, Margarit Ekonomi, assisted by the PLGP staff completed the ICT Action Plan in June 2012, for the 15 partner LGUs. The ICT Action Plan was compiled based on the findings of the ICT Needs Assessment conducted for each partner LGU during April–May 2012. Each LGU’s Assessment examined the current ICT status, anticipated ICT needs and priorities, training and technical assistance needs, required infrastructure support, and cost estimates for hardware and software. The assessment included the identification of software packages that can be applied immediately, particularly those with documentation available in the Albanian language and designed to address Albanian laws and procedures.
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 5 In collaboration with the PLGP Asset Management Specialist, Tax Expert, and the Geographic Information System (GIS) Specialist, the ICT Consultant assessed the feasibility of using IT technology to improve tax collection and manage assets and offered recommendations for hardware/software solutions, technical support, and training to be provided by the PLGP to enhance IT capabilities in partner communities. The ICT Action Plan included recommendations for purchasing technologically appropriate hardware and software, and a training plan for optimally using the hardware and software. A GIS expert undertook an assessment of the NTPA Territorial Planning Register assessing the status of the register and determining the register’s compliance with legal, technical, and operational requirements. The assessment was completed and the report of the findings was finalized in June 2012.
1.5 ACTION PLANNING WITH PARTNER MUNICIPALITIES
Following the signing of the MOU in May 2012, the PLGP conducted in June–July 2012 a process of Action Planning with Partner LGUs. Action Planning Workshops were conducted in each of the 15 partner LGUs for the purposes of better understanding their specific needs and tailoring the PLGP level of engagement during Year Two and identifying needs and priorities for the life of the project. These activities brought together all local partners, including LGU representatives (both executive and local council), civil society, and representatives from other donors’ projects active Figure 8. Staff members of Berat Municipality and within the LGU. The Workshops helped to create PLGP experts discussing on priority needs. and raise awareness on the scope of work and technical assistance activities intended to be delivered to partner LGUs within the framework of the PLGP. They also served to create and raise awareness among local stakeholders on other donors and or government-supported programs for purposes of avoiding unnecessary overlapping, creating synergies, and coordinating complementary activities. The PLGP staff interacted with partner communities’ staff to broadly discuss and better understand their common objectives, priorities, and commitment to the implementation of planned activities. Some of the areas that were identified as Figure 9. Staff members of Patos Municipality “high priority” include technical assistance and have identified achievements and challenges of support in planning and GIS, automation of tax and their work. financial systems, collection and administration of property tax, management of public assets, citizen involvement, and service improvement. Further, the PLGP and partner communities also had the opportunity to discuss issues related to decentralization and required reforms. Inputs from the Action Planning process served as a basis for the development of the PLGP Year Two Work Plan. The comments were also incorporated into the reports
6 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) and policy documents prepared by the PLGP, such as Status Reports (including own source revenues, borrowing, and asset management) and the White Paper on Fiscal Decentralization. The action planning process was facilitated by the Regional Development Agencies (RDAs) of Fier, Tirana, and Korça. The RDAs prepared the final Action Plan for each partner LGU which were formally endorsed by every partner LGU and PLGP.
1.6 WHITE PAPER ON FISCAL DECENTRALIZATION
With the goal to advance the decentralization in Albania and to support the GoA’s effort to implement effective government decentralization policies and legislation, the PLGP developed a White Paper on Fiscal Decentralization. The White Paper on Fiscal Decentralization provides a brief, but comprehensive, assessment of the fiscal decentralization environment in Albania identifying the key policy issues and options in these areas. The assessment examines the five key areas of fiscal decentralization: 1. Legal framework,; 2. Administrative territorial structures and expenditure assignments; 3. Revenue assignments; Figure 10. Cover page of White 4. Intergovernmental transfers; and Paper on Fiscal Decentralization. 5. Local government borrowing and debt. It builds on the body of research that already exists and takes a comprehensive approach to the system and issues/concerns articulated from both central and local government. Finally, the report identifies priority areas for improving fiscal decentralization in Albania. The document was drafted by the PLGP international fiscal decentralization consultants, Glen Wright and Tony Levitas, together with PLGP staff and local consultants. The draft of this report was finalized in September 2012 and was introduced and discussed with the key stakeholders from central and local governments as well as with the donor community at the National Fiscal Decentralization Conference held in October 2012.
1.7 WATER UTILITIES BASELINE ASSESSMENT AND ACTION PLAN
The Water Utilities Baseline Assessment and Action Plan provides a Figure 11. An official of baseline assessment of the current level of performance and Municipality of Vlora reading the management of the 11 water supply and sewerage utilities that serve White Paper presentation hand- the 15 PLGP partner LGUs. out. The Baseline Assessment defines, in a rational and definitive manner, the current state of operations and performance of key utility functional areas for each utility, based on the findings from on-site visits and interviews carried out with the senior management staff, local government officials, and representatives from donor funded water infrastructure and institutional projects. The intention was to observe the organization and management of the major departments for each water utility closely, review the overall utility performance indicators data, create a clear understanding on the current legal status and
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 7 institutional set-up of each utility, and identify critical areas of potential support to be provided under the PLGP scope. The Baseline Assessment also provides a set of recommendations on issues that need to be addressed and actions that need to be undertaken to improve the management and operations of these utilities by identifying and prioritizing action plans that will be potentially supported throughout the life of the project.
1.8 “LOCAL GOVERNANCE ORIENTATION” WORKSHOP WITH PEACE CORP VOLUNTEERS
To foster collaboration with the Peace Corps, the PLGP conducted a two-day workshop on June 14– 15, 2012 with 23 Peace Corp Volunteers (PCVs) working in Albania. The “Local Governance Orientation” Workshop expanded the PCVs’ understanding of the roles, responsibilities, issues, and challenges of local governance in Albania; ways of building collaborative relationships with local government; and exploring ways that PCVs can facilitate the engagement of citizens and CSO’s with their local governments. Figure 12. Peace Corps volunteers in PLGP's Local The PCVs were briefed on the PLGP Scope of Work Governance Orientation Workshop. (SoW), activities to be carried out in the project lifetime, and the Action Planning process with 15 partner communities. In addition, the workshop introduced major topics related to local governance, including community development, local governance functioning in Albania, decentralization, municipal financial, management, local revenues, municipal assets and public-private partnerships (PPPs), water and wastewater, urban planning, civic engagement, and monitoring and evaluation.
Other stakeholders, including the Albanian American Figure 13 The PLGP expert briefing the PCVs on Development Fund (AADF) and the RDA participated the situation of waste and water utilities in in the workshop and presented their programs to the Albania. PCVs, with the goal of establishing potential cooperation in the future.
8 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 2.0 YEAR ONE ACHIEVEMENTS AND KEY YEAR TWO PROPOSED ACTIVITIES FOR EACH COMPONENT
2.1 COMPONENT 1: DECENTRALIZATION
Objective: Support the GoA’s work to implement effective government decentralization policies and legislation. 2.1.1 Achievements for the First Year Creation of the Dialogue A policy dialogue was created and facilitated by the PLGP and consensus was reached on key issues related to fiscal decentralization in Albania. The COP and the Component I team have continuously conducted meetings with key representatives from the Government of Albania (GoA), LGUs, local government associations, donors, non-governmental organizations (NGOs), and others for the purpose of briefing key stakeholders on the PLGP and its goal and objectives; exploring existing initiatives and/or opportunities that serve to re-energize the discourse on decentralization in the country, such as the need to revise the Decentralization Strategy; and building political and donor support for establishing a forum (such as the Decentralization Roundtable) for multi- stakeholder dialogue on decentralization policies and reforms. Fiscal Decentralization Discussion with Local Government Discussions with local governments generated a constructive debate and gave an opportunity for local governments to voice their concerns and offer their recommendations related to fiscal decentralization issues: revenue and expenditure assignments, intergovernmental transfers, local borrowing, and asset management. In order to achieve this, two series of regional roundtables/discussions were undertaken with the partner LGUs. The first round of three regional roundtables/discussions on fiscal decentralization were held during May 2012 in collaboration with Co-PLAN in Tirana, Vlora, and Elbasan to assess partner LGUs’ views and concerns related to progress on fiscal decentralization in Albania and to compile an agenda on fiscal decentralization reforms initiated by the PLGP. Mayors and/or deputy mayors from all partner LGUs participated in these roundtables. In order to generate constructive debates on decentralization issues in Albania, the regional discussions were organized in groups that reflected the geographical location of the
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 9 participants, as well as their political affiliation. These regional discussions focused on issues related to expenditure and revenue assignments, local borrowing and asset management, intergovernmental transfers, service delivery, and territorial administration. International and local experts contributed to the discussion. The ideas discussed in these regional roundtables were further elaborated in the White Paper on Fiscal Decentralization. Following the finalization of the White Paper on Fiscal Decentralization, the Component I team was involved in the dissemination of its Executive Summary to officials of the GoA and LGUs, national local government associations and international organizations. Although comments on the White Paper were initially limited, due to August summer vacations, the PLGP organized extensive consultative meetings with key stakeholder to receive their feedback before the Decentralization Conference took place. The PLGP undertook in September 2012 a second round of regional discussions with local governments to share the status reports and collect LGUs’ comments and suggestions on the White Paper on Fiscal Decentralization recommendations. With the same approach as the first round of discussions with local governments, three regional roundtables were organized in Tirana, Vlora, and Elbasan. These roundtables served to reach agreement between the PLGP and local governments on the recommendations and the approach to be followed further in the discussions with central government. The discussions were focused on reviewing the analysis prepared for several decentralization issues presented through status reports (local borrowing, local revenues, local asset management, and urban planning) and validating recommendations articulated in the White Paper on Fiscal Decentralization. Fiscal Decentralization Discussion with Donor Community Within the framework of guiding a national-level discussion on fiscal decentralization in Albania, the PLGP organized a discussion table with donors in June 2012. Participants included international organizations and donors including the European Union (EU), the Decentralization and Local Development Program, the Council of Europe, SDC, SKL International, and the Organization for Security and Co-operation in Europe (OSCE). The discussion aimed to bring together international and project implementers as important stakeholders in decentralization projects and in attaining the goal of consensus on new policies and laws that will improve the fiscal capacity of Albania’s local governments. The PLGP introduced the White Paper on Fiscal Decentralization research to participants. 2.1.2 Key Activities Proposed for the Second Year During Year Two, the PLGP will continue to promote an inclusive dialogue and help build a bipartisan consensus on issues of strategic importance to local governments. The White Paper on Fiscal Decentralization, produced during Year One, was presented at a National Decentralization Conference occurred in the first month of Year Two. A Year Two priority will be to advance the policy reforms set forth in the White Paper. During Year Two, a Decentralization Roundtable organized by the PLGP will meet regularly (monthly initially, and then quarterly over the life of the project) for purposes of building consensus on decentralization goals. Policy papers on particular decentralization issues will be developed to foster dialogue and identify potential solutions for discussion during Roundtable sessions. During Year Two, the PLGP will assist the GoA to clarify and strengthen the process, criteria, and transparency for allocating competitive GoA grants to local government entities. In an effort to achieve consensus, the PLGP will work first through the Decentralization Roundtable.
10 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) The PLGP will assist the GoA and local governments to improve policies, legislation, and processes that affect local government operations, finances (including use of debt financing, PPPs, and other alternative financing mechanisms), and the use of central government assets under local government jurisdictions. When legislative changes are recommended, the PLGP will interact with appropriate parliamentary actors. During the Year Two, the Component I team will prepare a quarterly newsletter on the work, discussions and issues raised at the Decentralization Roundtables.
2.2 COMPONENT 2: LOCAL GOVERNANCE
Objective: Improve the efficiency and management of local government operations. 2.2.1 Achievements for the First Year Municipal Selection Process The municipal selection process was carried out by the COP and the Component II team through meetings with LGUs with the participation of mayors, Council Chairmen, and LGU technical staff. The Component II team conducted the ranking and recommendation process for LGU participation in the PLGP. Letters of invitation and questionnaires were prepared and send to the first 29 short-listed selected LGUs. The team reviewed the responses and supported the development of the selection criteria. Letters of notification were sent to the selected LGUs to initiate collaboration with them. Other interested LGUs and stakeholders were also informed on the selection decision. The municipal selection process was finalized during April 2012 with USAID approval of 15 partner LGUs. Action Planning Process Following the municipal selection process and the MOU signing with the 15 partner LGUs, the Component II team began designing the partner municipality Action Planning Workshops. The team closely collaborated with the RDA, which was contracted by the PLGP to facilitate the Action Planning process. The Component II team led the establishment of the Action Planning Working Groups, facilitated preparations for these workshops, and coordinated the work within the Project to review the final Action Plan for each of the 15 partner LGUs. Information Communication Technology Action Plan As described in the above section, an ICT Action Plan was finalized at the beginning of July 2012. The Component II team has supported the ICT Consultant to deliver the ICT Assessment Questionnaire and conduct the ICT Needs Assessment with the partner municipalities. Status Reports on Own Source Revenue, Municipal Borrowing, Asset Management, and Urban Planning Status Report on Own Source Revenue was compiled by the PLGP Tax Expert and focuses on the current situation and principal sources of local revenues, including an examination of the Immovable Properties Tax as an opportunity to increase local revenues. A set of recommendations is offered on changes in tax policy and tax administration. Accountability and transparency of local tax administration and opportunities for automation of this function are also part of this report. Status Report on Asset Management was drafted by the Asset Management Expert and offers an overview of the current situation of the national properties transferred to LGUs. The report gives an overview of the property transfer, registration, and management status. The report reaches conclusions and offers recommendations on the issues to be addressed in the registration of assets.
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 11 Status Reports on Local Borrowing was drafted by the Fiscal Decentralization Expert and is a document that offers an overview of the local borrowing situation in Albania and concerns, challenges and steps to be followed in the near future from the perspectives of both central and local government. The report explores the extent to which local borrowing has been applied at local level, analyzes the practices in place, and reflects on the needed improvements both in the legal framework and administrative practices. Status Report on Territorial Planning was drafted by the Urban Planning Expert and gives an overview on the current status of LGUs’ Territorial Planning, prioritizing issues to be addressed and steps to be taken at the local level (with LGUs) and central level (with NTPA and other ministries) to address the issues. The report also examines opportunities for coordination with other donors. Findings and recommendations from these status reports fed the broad discussions on fiscal decentralization in Albania initiated by the PLGP in the framework of the Component I. They were used as an additional information source for the White Paper on Fiscal Decentralization in Albania. Regional Workshop on Local Tax Administration The first Regional Workshop on Local Tax Administration took place in September 2012. The workshop was designed to raise the local tax administration capacities and to identify the best practices related to generating LGUs’ revenues. Part of the discussion was also the introduction of the Action Plans for ameliorating the revenues from the Property Tax, the upcoming amendments to the Local Taxes Law, and the need for a better and more efficient cooperation with the central Tax Administration. Participants in the workshop included representatives of the Tax Administration of six partner LGUs (Tirana, Durres, Kamza, Vora, Kashar, and Paskuqan), representatives from other four LGUs (Kruja, Rrogozhina, Shkodra, and Lezha), and representatives from the Albanian Associations of Communes (AAC). This Roundtable will be followed by two others during Year Two with the same topics. Civic Engagement To assess the level of civic engagement, the PLGP undertook a preliminary assessment and established contacts in all partner LGUs. The project mapped the civil society in each partner community through discussions with civil society organizations (CSOs), business organizations and active citizens. This process has assisted in identifying potential partners for the CAPs. To follow up the assessment of the level of civic engagement and to identify potential partners for the CAPs, the PLGP team took advantage of the Action Planning Workshops to invite, engage, and contact civic society representatives in each partner LGU. The PLGP discussed the status of civil society in partner LGUs with municipal officials and municipal councils. Staff reviewed the CAP concept and solicited the understanding and commitment of municipal officials. The SoW, outlining objectives of CAP, was drafted. In addition, the PLGP held meetings with different stakeholders (including UN Women, Olaf Palme International Center, and the National Democratic Institute [NDI]) to promote and foster civic engagement and to identify synergies and potential collaborations for the future. 2.2.2 Key Activities Proposed for the Second Year In Year Two, the PLGP will continue to provide technical assistance and on-the-job training to staff in the 15 partner municipalities on a variety of issues including tax collection, asset management, budgeting, and service provision. In the area of Asset Management, the PLGP will support the partner municipalities to complete the transfer of assets from the central government and register them. The PLGP will cooperate with GoA and partner communities to identify necessary changes to the existing legislation for purposes of facilitating LGUs’ functioning with regard to asset management and PPPs. The focus of Year Two will be on
12 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) building local capacities in asset management through training and workshops, providing on-the-job and one-on-one technical assistance to partner LGUs on management of local assets and development of PPP projects. ICT will have a special focus that will help build e-government solutions. The PLGP will determine how to proceed with each partner municipality to update their IT capacities. During Year Two, the PLGP will install procured software and hardware in a minimum of four partner municipalities. The PLGP will support the Local Tax Administration of the partner municipalities providing on-the-job training and as-needed guidance, based on the Status Report on Own Source Revenue and the assessment of principal sources of local tax revenue. Following the Regional Roundtables, the PLGP intends to assess the lessons learned and identify the best practices related to generating revenues of the LGUs participating in the PLGP. With regard to Civic Engagement, in Year Two, PLPG will work to increase the engagement of the civil society and to strengthen the interaction among local government, civil society, and citizens through establishing and institutionalizing the CAPs in each partner municipality, as consultative bodies to the mayors and the Municipal Councils. CAP members will be trained in the use of Advanced Participation Methods. Best practices on civic engagement from the partner LGUs and other stakeholders will be disseminated through a national forum to be organized by the end of Year Two. In Year Two, the PLGP will support the respective Municipal Councils of the 15 partner LGUs, as they are the decision-making organ of the local government and the representative body of the community responsible for approving local policies and monitoring their implementation.
2.3 COMPONENT 3: UTILITY MANAGEMENT
Objective: Improve local government management and oversight of publically owned utilities, in accordance with EU Standards. 2.3.1 Achievements of the First Year Review and Update the Supervisory Council Guideline and Training Manual The PLGP has entered into a cooperation agreement with the WRA, and the Support Project to Water Regulatory Authority (funded by the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH [GIZ]), concerning their shared interest to provide training to the Supervisory Councils of water supply and sewerage companies in Albania. Recent developments in the legal framework and regulatory requirements have had an impact on the management and operation of water supply and sewerage companies, necessitating that the Supervisory Council Guideline be reviewed and updated to reflect the current conditions better. With the full consent and support of the GIZ project, the PLGP Consultant performed a comprehensive review of the Guideline focused on: Current legal basis, basic statutes and by-laws, and authority of a water supply and sewerage company; Current laws, standards, and regulations that impact the management and operation of a water supply and sewerage company; The new methodology of the WRA in licensing and approving tariffs and tariff structures, approved end of 2011; and Tools and methodologies to provide monitoring and of water utility performance.
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 13 Simultaneously, the PLGP Component III team completed the update of the Trainers Guide and outlined the training presentations. Based on the mutual agreement with the WRA and GIZ, the roll out training of current Supervisory Council Members in the 11 water supply and sewerage companies will be conducted during the third week of November 2012. Business Planning and Performance Improvement Action Plan During Year One, the PLGP Component III team conducted several on-site working visits with the senior management staff of all partner water supply and sewerage utilities to assess the current practices and procedures in relation to the availability and use of five-year business plans. The Consultant organized several awareness and kick-off meetings to introduce the Standard Business Planning Model and Guideline, approved by the general Directorate of Water Supply and Sewerage and the WRA, to the senior management staff of the partner water utilities. Prior to these meetings the Consultant sent out a formal notification/ invitation letter to the General Director of each utility with an agenda and PowerPoint presentation hand-outs. In organizing these sessions, the Consultant’s focus was to build a full awareness within the senior management staff of each utility on the importance of preparing business plans that will serve as a tool to reach financial sustainability. The PLGP Component III team has continued its work with the water utilities of Korça and Vlora to assist them in development of five-year business plans (2013–2017), which are planned to be completed and presented to the respective S by mid-December 2012. Review the Albanian Legal Framework on Water and Wastewater The Component III team has continuously held consultation meetings with GoA officials and other donors to review the current status and commitment to move toward the harmonization of Albanian legislation with EU water directives. Based on the consultations with the Ministry of Integration, the Consultant has developed an assessment of the current Albanian legislation related to water in general and the commitment of the GoA to comply with the EU Water Directives. By providing a summary of the current EU Water Framework Directives and other related acts, the report explains how the actions of GoA intend to approximate the Albanian legislation to the acquis communitaire and achieve the objectives set up in the EU water regulations. Recommendations suggest that a complete and appropriate legal framework is just the first step of the process that should be followed by setting up and/or strengthening the competent authorities as needed along with the careful training of professional personnel that could lead to the successful implementation of the legislation. The pursuit of every step in the process is the only way that will lead to the achievement of the objectives set up by EU water regulations and which the GoA is very committed to follow. In addition, the Component III team has prepared a set of recommendations to amend the Law for Selection of Supervisory Councils of Water Utilities in Albania. Local Government Customer Service Training The Component III Team has prepared an update of Customer Service for Local Governments Manual, which was originally developed under LGPA. The focus of this review was to define clearly the citizen as a customer and the role of local government in providing customer-oriented public services. The Consultant organized two days of training workshops with representatives from local governments and water utilities in the PLGP partner communities to share the concepts and knowledge introduced in the Customer Service for Local Governments Manual and to learn from exchanged experience between partner local governments and respective water utilities.
14 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) Service Delivery Agreement with LGUs and the Waterworks Utilities The Component III Team has developed a Concept Paper that outlines the PLGP approach to assist the GoA in the development of a Service Delivery Agreement as a contractual document that describes the service delivery relationship between an LGU, as the body responsible to provide the service, and a water utility that is organized to produce and deliver the service. This Concept Paper was guided by the recently prepared “Water Supply and Sewerage Services Sector Strategy (2011–2017),” approved by the Decision of the Council of Ministers nr. 643, dated September 14, 2011. Specifically, the Strategy itemizes under Mission Objective 3: Improve Governance and Regulation in the Sector, and Priority Action 3c: Develop and Disseminate a Model Service Delivery Agreement. The PLGP will work closely with the WRA and potential donors to reach a consensus among the main stakeholders regarding the conception note of the Service Delivery Agreement and its drafting necessity in compliance with the sector strategy. 2.3.2 Key Activities Proposed for the Second Year During Year Two, partner LGUs and supervisory boards will be assisted in developing skills, defining roles, and building knowledge needed to manage and oversee jointly owned utility companies effectively. The PLGP will train current Supervisory Council Members and will assist the WRA and the Water Supply and Sewerage Association of Albania (SHUKALB) to reach agreement on a policy for the scheduled training of the Water Utility Supervisory Council. A binding regulation will be issued, making completion of the training course a prerequisite to continued membership (in the case of existing Supervisory Council Members), or to joining a Supervisory Council (in the case of newly appointed board members). Based on the current Baseline Assessment and Action Planning developed for each of 11 partner water supply and sewerage utilities during Year One, utilities will be supported in developing a five-year business plan based on quantified strategic goals, defined performance improvement programs, a forecasted financial plan that progresses toward full cost recovery, and a rational tariff strategy. Once finalized, the business plans will be officially presented to the Supervisory Councils and local government officials of each respective utility to ensure that the utility’s mission, long-term objectives, and performance improvement action plans are well understood and approved by all stakeholders. In addition, the project will review the internal management reporting procedures from the finance, technical, and customer service departments of each utility and address recommendations to improvement to include detailed performance indicators progress analysis. During Year Two, the PLGP will assist partner LGUs to improve interaction and communication with the GoA, Albanian regulatory agencies, civil society groups, and other community NGOs. During Year Two, the PLGP will provide technical assistance to the partner LGUs of Vora and Kashar and to the water utilities of Kamza and Patos for the procurement, installation, and initial training of database management systems for water utilities.
2.4 COMPONENT 4: URBAN PLANNING
Objective: Strengthen the capabilities of the GoA and local governments to plan and manage urban and regional growth. 2.4.1 Achievements of the First Year Drafting the NTPA Action Plan This activity included several steps and was implemented through a strategic planning methodology. The Action Plan covers a period of five years (short- and medium-term) and more (the long-term). It includes
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 15 all of the NTPA activities for the above period and it will be revised annually based on the contextual changes. The support of the PLGP for the NTPA is clearly indicated in the Action Plan. The NTPA established a Working Group through an initial meeting between NTPA and the PLGP experts. The NTPA Action Plan was endorsed by NTPA on March 29, 2012 and approved by USAID on April 5, 2012. Signing of the Memorandum of Understanding for the implementation of the NTPA Action Plan A formal MOU for the implementation of the NTPA Action Plan was signed between the PLGP and NTPA at the Project Launching Ceremony on May 18, 2012. Support NTPA in Training and Coaching of the Municipalities The PLGP supported the NTPA to conduct a coaching process for municipalities that were interested to revise their General Local Territorial Plans. NTPA identified the municipalities that prepared their territorial plans prior to the new planning law entering into force. By law, these municipalities are required to revise their plans to fit with the requirements of the new planning law. The PLGP supported the NTPA to execute one of its functions by supporting these municipalities through a coaching program to bring about the revision of the plans. Of the 11 municipalities invited by the NTPA, 10 participated in this mentoring program. With the support of PLGP experts, NTPA prepared a methodology and activity plan to execute the coaching program. There were five coaching sessions that took place from April– September 2012. Support the NTPA to draft a Council of Minister’s decision on Annual Territorial Reports The PLGP supported the NTPA to draft and propose to the Council of Ministers (COM), the Decision of the Council of Ministers (DCM [by-law]) on “the uniform structure of the mandatory annual territory reports for local and national authorities and NTPA” in compliance with the Territorial Planning Law (TPL). The draft was prepared and also revised per the comments submitted by the relevant public authorities (ministries). The draft was sent to the COM for approval. Approve the Internal Regulations for the NTPA At the beginning of June 2012, NTPA (with the assistance of PLGP staff) began the process of reviewing the Agency’s internal procedures. The following activities have been carried out: Defining the responsibilities for NTPA departments, sectors, and preparing employee job descriptions; Establishing procedures (workflow) and distribution of work (workloads) within NTPA; Carrying out an internal institutional analysis: existing functions, structure, personnel skills, workloads, etc.; and Establishing internal procedures for assessing plans and development permits, building permits, and infrastructure permits. The Internal Regulations were completed by September 28, 2012 and are under review by the NTPA for subsequent delivery to COM. Prepare Regulations for the National Territorial Council (NTC) In June 2012, the PLGP supported the NTPA to draft the NTC regulation. The regulation was drafted and also reviewed following the comments of the relevant institutions. It contains the procedures for the
16 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) functioning of the NTC and general procedures on the approval by NTC of plans and development/infrastructure permits. The regulation was sent to the COM and approval is expected to take place soon. Support NTPA in the preparation of the NTPA Program Policy Statement/Budget Forecast for the period 2012–2020 The PLGP supported NTPA in preparing the Program Policy Statement/Budget Forecast for the period 2012–2020, which was endorsed by the NTPA Director on May 2012 and subsequently sent to the Ministry of Public Works, based on its specific request on April 2012. The NTPA team (a group of experts specifically appointed by the NTPA Director), with the support of PLGP staff, have been working on preparing this document through several working/coaching sessions between the end of April and May 2012. The Detailed Program Policy Statement–Budget Forecast reflects the NTPA Action Plan and marks a milestone in its implementation because: It is a practical translation of the NTPA Action Plan into a program policy statement and budget forecasts needed to accomplish the NTPA statutory mandate; It constitutes a de facto “Business Plan” for NTPA; It is part of the implementation of the following activities from the NTPA Action Plan: Carry out Internal Institutional Analysis; Receive approval of the proposed 2012 NTPA structure; Receive approval of the proposed structure for the 12 NTPA Regional Centers; and Implement an internal training program (management) through on-the-job training made by the PLGP on budget preparation. It confirms such internal strengths of NTPA as high professional capacity of the staff and young and motivated staff. The approval of this document by the GoA is a crucial factor for the success of NTPA and for contributing to the sustainable territorial development of Albania. Assessment of NTPA Territorial Planning Register In July 2012, the PLGP drafted an Assessment Report on the NTPA Territorial Planning Register. The report assessed the status of the Territorial Planning Register and verified whether it responds to all legal, technical, and operational requirements for which it has been designed. The report draws conclusions on how and to what extent the Territorial Planning Register can be efficiently used by local governments in their planning and development processes. The assessment of Territorial Planning Register includes an: Analysis of the legal and regulatory framework requirements for the Register Detailed assessment of the Register; Detailed assessment of training; and Conclusions and recommendations. 2.4.2 Key Activities Proposed for the Second Year During Year Two, the PLGP will continue to assist the NTPA in implementing the agreed NTPA Action Plan and to improve its capacity to exercise its mandate to implement the TPL effectively as follows:
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 17 Follow up for approval the DCM on the uniform template for the Annual Territorial Reports prepared in June 2012. Follow up with NPTA the approval of the territorial plans that were revised through the coaching provided to the relevant municipalities. The municipalities will submit the plans officially to NTPA through an event organized for this purpose. Support NTPA to follow up for approval by the COM of the regulation for organization and functioning of the NTC. Support NTPA to follow up for approval the internal regulation for NTPA. Assist NTPA to develop a conceptual framework for the National Territorial Plan in accordance with the TPL and implementing regulations. This activity relates to the preparation of the General National Territorial Plan (GNTP). The preparatory activities include the preparation and submission for approval of the “Request” for GNTP. Approval of the Request will depend on the political willingness of the COM to advance with this issue. Support NTPA, in order to proceed successfully with the Request, to designate the first official list of areas of national importance. Organize training in Strategic Environmental Assessment for NTPA staff. Assist partner LGUs’ planning departments to develop skills and knowledge to draft territorial plans in accordance with the TPL. The PLGP will work at two different levels with partner communities providing training and coaching. Training will be provided to all partner communities through four major sessions, while coaching will be provided to around eight partner communities. Support three-to-five partner communities for preparing their annual territorial reports and support one–to-two partner communities for preparing local detailed plans. Organize a Mayor’s Institute on City Design event, which takes place regularly in the United States and will replicated in Albania. The PLGP will organize a two-to-three day session in Albania where mayors will engage with leading design experts. Assist civil society groups, businesses, and other NGOs to increase participation in and oversight of territorial planning. The PLGP will work with the partner communities, the CAPs, and selected representatives of the business community–especially developers–to prepare a manual for inclusive/participatory planning.
18 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 3.0 PERFORMANCE MANAGEMENT AND MONITORING
In compliance with the Albania Planning and Local Governance Project contract, Tetra Tech ARD has developed a Performance Monitoring Plan (PMP) that uses a mix of both quantitative and qualitative indicators to understand and measure project success. Specifically, the measurement relates to the level of increase in the capacity of LGUs as they move towards adopting and implementing decentralized systems, practices, and mechanisms. Tetra Tech ARD’s performance measurement philosophy is grounded in practical and adaptive management, where decision making and problem solving are based on data that can be analyzed in a timely fashion and where outputs contribute to outcomes that are logically linked to the Development Objective, Intermediate Results, and Objectives of the project. The PLGP PMP was designed to: 1. Inform management for decision making and problem solving; 2. Ensure accountability for use of resources, outputs produced, and outcomes achieved; 3. Promote learning among all stakeholders to improve performance; 4. Provide information on successes for reporting and replication; and 5. Act as an early warning system to address challenges and constraints proactively and early-on. The PLGP has 27 Performance Indicators as the building blocks of the project and important metrics of success. Performance indicators have been selected to link inputs (activities/interventions) to outputs (what we do) and to outcomes (what we achieved). All of the PLGP’s contractual indicators are represented in the PMP as either part of Performance Indicators or as part of Milestones.
3.1 MILESTONES
The Table of Milestones (Table 3.1 below) for the life of the project, distinguishes in red the Milestones and their current status corresponding to the Year One.
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 19 TABLE 3.1: YEAR LIFE OF PROJECT MILESTONES Progress Towards Final Goal Milestones Finalize and Procedures and Procedures and present White Feedback and Final criteria for selection criteria Paper that input incorporated recommendations of competitive developed for includes into procedures on grant criteria grantees officially competitive proposed grant and criteria presented to GoA adopted and grants 1 criteria published
Target: Target: Target: Target: Target: August 2012 September 2012 January 2013 May 2013 January 2014
Pending Completed Actual: Actual: Actual:
Scope of work CAP concept CAP concept outlining Feedback in SoW Feedback and endorsed in each defined and objectives of sought from key input incorporated MOU, and available for Citizen Advisory stakeholders into SoW established in each input into MOU Panel (CAP) partner community 1 developed
Target: Target: Target: Target: Target: April 2012 July 2012 October 2012 December 2012 November 2013
Completed Completed Actual: Actual: Actual:
IT [Information Technical Training and NTPA central GIS Technology] requirements in GIS data mentoring of staff database assessment place (soft- and/or uploaded by LGUs implemented established conducted hardware) PROJECT OBJECTIVE PROJECT 4 Target: Target: Target: Target: Target: June 2012 October 2012 April 2014 April 2014 2014
Completed Actual: Actual: Actual: Actual:
Strategic Plan Complete Conceptual for the NTPA NTPA Action territorial report Capacity building framework for the with clear tasks Plan presented template for event(s) to build GNTP drafted with and lines of to USAID for LGUs to comply consensus around USG assistance and authority review and with Territorial the NTPA Action submitted to the drafted with approval Planning (TP) Plan GoA for approval 4 USG assistance law
Target: Target: Target: Target: Target: March 2012 April 2012 August 2012 Dec. 2012 December 2013
Completed Completed Completed Actual: Actual:
As noted in Table 3.1, there are eight milestones corresponding to the Year One. Milestone 1: Procedures and criteria developed for competitive grants Status: Pending This is the only milestone of Year One with the status “pending.” For the PLGP to be successful in its activities, efforts must be complemented and coordinated with other key donor organizations. In the case
20 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) of Regional Development Funds (which are named as “competitive grants” in our documents), discussions are taking place between the PLGP and the Department Strategy and Donor Coordination (DSDC), EU, Regional Development Program, and United Nations Development Programme (UNDP) in the framework of their integrated support for decentralization project “Working for Regional Development.” The PLGP plans to recommend procedures and criteria for competitive grants in the first quarter of the Year Two. Milestone 2: Finalize and present White Paper that includes proposed grant criteria Status: Completed The White Paper on Fiscal Decentralization was finalized in September 2012 and it has been disseminated to GoA, partner LGUs, national local associations, and the donor community. Its final presentation took place at the Fiscal Decentralization Conference held on October 4, 2012. The Decentralization Conference was initially planned to take place on September 27, 2012 but was postponed by one week in order to allow the presence of high-level dignitaries from the central government, the Director of USAID Mission, and US Ambassador to Albania. Milestone 3: Scope of work outlining objectives of Citizen Advisory Panel (CAP) Status: Completed The Scope of Work has been drafted by the Civic Engagement Specialist in September 2012 and reported in this Annual Report under the Component II achievements. Milestone 4: IT [Information Technology] assessment conducted June 2012 Status: Completed The ICT Assessment and Action Plan was completed in June 2012 and is elaborated in this Annual Report under the PLGP Key Achievements as well as under the Component II achievements. Milestone 5: Strategic Plan for the NTPA with clear tasks and lines of authority drafted with USG assistance Status: Completed The NTPA Strategic Plan was completed in March 2012 and is reported in this Annual Report under the Component IV achievements. Milestone 6: NTPA Action Plan presented to USAID for review and approval Status: Completed The NTPA Action Plan was approved in April 2012 and is elaborated in this report as a key activity. Milestone 7: Complete territorial report template for LGUs to comply with Territorial Planning (TP) law Status: Completed This milestone was completed in August 2012 and is reported under the Component IV achievements. Milestone 8: CAP concept defined and available for input into MOU (April 2012) Status: Completed CAP concept was defined during April 2012 and had a specific reference in the MOU signed with each of the 15 partner municipalities at the Project Launch and MOU signing ceremony.
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 21 3.2 PERFORMANCE INDICATORS
As mentioned at the beginning of this section, there are 27 Performance Indicators for the lifetime of the project. Seven of them relate to Year One. The table below shows the Year One indicators and their current statuses (in red). TABLE 3.2: PERFORMANCE INDICATORS Base- Yr 1 Performance Performance Indicator Yr 1 Actual line Target towards Target Objective 1: The GOA implements effective government decentralization policies and legislation through collaboration with local governments and nongovernmental organizations. 1.2} Number of institutions represented at the Decentralization Roundtable events 0 25 25 100%
1.3} Number of local government staff and municipal council members successfully completing USG- 0 100 302 302% sponsored training and/or capacity building activities 1.4} Number of laws/amendments or government decisions affecting and promoting decentralization 0 2 3 150% drafted with USG assistance Objective 2: Local governments improve their performance, accountability, transparency, and ability to involve citizens in decision making 2.5} Number of sub-national government entities receiving USG assistance to improve their 0 18 21 116% performance 2.7} Number of municipalities that establish a regular mechanism to solicit input from civil society on 0 2 Pending constituent needs and priorities (regular meetings, councils, or roundtables) 2.9} Number of municipal council members trained 0 10 10 100% on their roles and responsibilities Objective 4: The GOA and local governments improve their ability to develop, coordinate, and manage territorial planning 4.1} Number of local planners, mayors, municipal staff, and councilors in the selected municipalities trained with regard to the implementation of the 0 30 34 113% National Territorial Planning Law and related regulations
Indicator 1.2 Number of institutions represented at the Decentralization Roundtable events Although the Decentralization Conference took place on October 4, 2012, which corresponds to the PLGP Year Two, this performance indicator is reported as accomplished. The Decentralization Conference was delayed by six days to allow for high-level dignitaries to participate in the event. The Decentralization Conference decided to reconvene the group of experts comprising 25 experts each who are representatives of the COM, all Ministries, national local associations (Association of Albanian Municipalities [AAM], AAC, and Association for Local Autonomy (ALA),and independent experts from civil society and NGOs. Indicator 1.3 Number of local government staff and municipal council members successfully completing USG-sponsored training and/or capacity building activities In Year One, the PLGP exceeded the number of trained local government staff and municipal council members. Initially, the PLGP estimated a total number of 100 local government officials would receive training. During Year One, the PLGP was successful in organizing the Coaching Sessions on Urban Planning (Component IV), Local Tax Administration Workshop (Component II), and the Action Planning Workshops. All of these events were organized in June–July 2012 with each of the 15 partner LGUs and 6 additional LGUs, hence there are 302 municipal and municipal council staff of partner LGUs trained.
22 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) Indicator 1.4 Number of laws/amendments or government decisions affecting and promoting decentralization drafted with USG assistance Due to the Component IV’s excellent work and cooperation with the NTPA, the PLGP exceeded the number of regulations/draft during Year One (from two to three). In June, the Component IV team drafted the NTPA Internal Regulation and the NTC Regulation. A DCM on Territorial Reports was also drafted and sent to the Ministry of Public Works for approval. Indicator 2.5 Number of sub-national government entities receiving USG assistance to improve their performance There are 21 LGUs which the project has worked with to improve their performance during Year One. Of these 21, 15 of them are partner municipalities and subsequently are the direct project beneficiaries, 4 other LGUs are receiving coaching on Urban Planning, and 2 other LGUs have received training on local tax administration. Indicator 2.7 Number of municipalities that establish a regular mechanism to solicit input from civil society on constituent needs and priorities (regular meetings, councils, or roundtables) As highlighted in Table 3.2, this is the only indicator with a pending status. This is an indicator that is considered as overly-ambitious for the PLGP, given that the project started in February 2012 and the formal approval of partner municipalities took place in April 2012. The time constraints did not allow the project team to achieve this indicator during Year One. Indicator 2.9 Number of municipal council members trained on their roles and responsibilities The PLGP Action Planning process with partner municipalities trained partner municipality staff and municipal council members on their respective roles and responsibilities. Indicator 4.1 Number of local planners, mayors, municipal staff, and councilors in the selected municipalities trained with regard to the implementation of the National Territorial Planning Law and related regulations There were 34 urban planners trained during Year One. The coaching sessions with urban planners from the partner municipalities and four other LGUs (Shkodra, Fushe Kruja, Pogradec, and Gjirokaster) were conducted by the Component IV team in cooperation with the NTPA.
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 23 4.0 BUDGET EXECUTION
Note: The budget is available by request, and at the discretion of, the USAID/Albania mission.
24 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 5.0 ADMINISTRATION AND PROJECT MANAGEMENT
The PLGP, in its first year of implementation, is being administered and managed as initially proposed. The management structure was designed to encourage Albanian ownership of the decentralization reform process and ensure that Albanian expertise is maximized. With the exception of COP Peter Clavelle and expatriate Urban Planning Expert Angelo D’Urso, all other long-term staff on the project are Albanian. Tetra Tech ARD’s partners are two leading Albanian organizations that bring strong technical skills and experience in their respective areas. Tetra Tech ARD’s staffing and management plans will support the successful implementation of the PLGP and leave behind a sustainable legacy of institutions and individuals capable of guiding Albania’s future decentralization efforts. The PLGP staffing plan provides clearly defined roles, responsibilities, and skill sets designed to provide for the technical and managerial needs of the PLGP. The PLGP team includes a Municipal Government/Decentralization Expert (Fatlum Nurja), a Tax Expert (Silvana Meko), an Asset Management Expert (Gentian Selmani), a Water/Wastewater Expert (Ndricim Shani), a Civic Engagement Specialist (Laureta Memo) and local Urban Planning/Fiscal Decentralization Experts (Rudina Toto and Anila Gjika). Ms. Toto and Ms. Gjika both work half-time, allowing the project access to their individual expertise throughout the life of the project. The professional team will be supported by an administrative staff consisting of a Financial and Administrative Manager (Majlinda Vogli), a Monitoring & Evaluation/Reporting Specialist (Edlira Shtepani), a Finance/Administrative Assistant (Fjoralba Balla), an IT/Office Assistant (Durim Tabaku), and two Drivers/Logistics Specialists. For the first year of the project, the IT Expert (Margarit Ekonomi) served as a consultant responsible to undertake the information/communication technology needs of our partner communities. Recruitment for a long-term (three-year) IT Expert is underway. Short-term experts, both international and local, were also engaged to provide necessary specialized technical assistance during Year One of the project. Specific activities have included technical assistance in the preparation of the White Paper on Fiscal Decentralization and assistance in business planning for water utilities. We have made it a priority to use local experts where their expertise is sufficient and perhaps more relevant as part of our sustainability building effort. Tetra Tech ARD’s management plan takes full advantage of the considerable human and institutional capacity available in the country. Since Project Start-up, Tetra Tech ARD has provided program staff, subcontractors, and local partners with guidance and implementation strategies, enabling smooth operation in multiple municipalities simultaneously and in our work with national agencies of the GoA. Programmatic, financial, and contractual progress toward results are being monitored through tested management systems and internal controls. The COP provides overall technical leadership for the integration and coordination of PLGP tasks, with ultimate authority for obtaining program results. He manages all aspects of implementation, planning and programming. He interfaces regularly with the Contracting Officer’s Representative (COR) and other USAID staff to coordinate all tasks, identify issues surrounding implementation, monitor progress against
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 25 work plans, and capture lessons learned at technical, programmatic, and management levels. A graphic illustration of the PLGP Staffing Structure is provided in Figure 3.1 below. FIGURE 3.1: PLGP STAFFING STRUCTURE
ALBANIA PLGP ORGANIZATIONAL CHART
USAID
Tetra Tech ARD Chief of Party * Finance/Admin Manager, MAJLINDA VOGLI Home Office PETER CLAVELLE - Finance Assistant, FJORALBA BALLA - IT/Admin Assistant, DURIM TABAKU - Driver, GENCI MANASTIRLIU - Driver, KUJTIM CUKU * M&E/Reporting Specialist, EDLIRA SHTEPANI
Component I Component II Component III Component IV
Civic Engagement Municipal Governance Tax Expert Asset Management Water/Wastewater Urban Planning Urban Planning Specialist Decentralization Expert SILVANA MEKO Expert Expert Expert (expatriate) Expert (Albanian) LAURETA MEMO FATLUM NURJA GENTIAN SELMANI NDRIÇIM SHANI LAURETA MEMO RUDINA TOTO
Information Urban Planning/ Fiscal Technology Specialist Decentralization expert TBD ANILA GJIKA
Key Personnel
The PLGP’s implementation involves strategic teaming with Albanian subcontractors, carefully selected for their ability to make clear contributions to PLGP success. The key roles and responsibilities of PLGP team members are summarized in Table 3.3 below. TABLE 3.3: PARTNER ROLES AND RESPONSIBILITIES Firm Principal Roles and Responsibilities of Partners Technical lead for Components I and II, with significant role on Components III and IV. As the prime contractor, Tetra Tech ARD manages the PLGP contract and is responsible for the overall Tetra Tech management of all subcontractors. Tetra Tech ARD provides the majority of full-time technical and ARD administrative field office employees, as well as short-term expertise in municipal services delivery, municipal finances, and other key areas. Technical lead for Component IV, with a supporting role on Components I and II. As a major subcontractor on the PLGP, Co-PLAN takes the lead for Component IV and for achieving the results and deliverables pertaining to strengthening the capacity of the GoA and local governments to plan Co-PLAN and manage urban and regional growth. Co-PLAN provides Albanian Urban Planning Experts, as well as the international and local short-term technical assistance (STTA) required under Component IV. Co-PLAN also provides the Asset Management Expert under Component II. Technical lead for Component III, with a supporting role on Components I and II. As a subcontractor, Valu Add brings their in-depth understanding of and experience with the management of public utilities in Albania to bear, especially in the water and wastewater sector, to Valu Add achieve the goals and objectives of Component III. Valu Add provides the full-time Albanian Water/ Wastewater Expert to the project as well as international STTA to improve local government management and oversight of publically owned utilities, in accordance with EU standards.
26 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) ANNEX 1: LIST OF COUNTERPARTS AND BENEFICIARIES
Note: The budget is available by request, and at the discretion of, the USAID/Albania mission.
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 27 Note: The budget is available by request, and at the discretion of, the USAID/Albania mission.
28 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) Note: The budget is available by request, and at the discretion of, the USAID/Albania mission.
PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012) 29 ANNEX 2: LIST OF REPORTS, ASSESSMENTS, AND OTHER RELEVANT DOCUMENTS
Below there is the list of reports, assessment and other documents prepared by the PLGP during Year One.
Title of the Report Submission Time PLGP Mobilization Plan January 2012 Monthly Alert Report – January February 2012 Year One Work Plan March 2012 Performance Monitoring Plan (PMP) March 2012 Monthly Alert Report – February March 2012 Quarter 2 Accruals Report March 2012 NTPA Action Plan April 2012 Municipal Selection Report April 2012 Life of Project Work Plan (LoPWP) April 2012 First Quarterly Report (January – March 2012) April 2012 Monthly Alert Report – April May 2012 Monthly Alert Report – May June 2012 DCM on Annual Territorial Reports June 2012 NTC Regulation June 2012 ICT Action Plan July 2012 Status Report on Own Source Revenues June 2012 Status Report on Municipal Borrowing June 2012 Status Report on Asset Management June 2012 Status Report on Territorial Planning June 2012 NTPA Territorial Planning Register July 2012 Water Utilities baseline Assessment and Action Plan July 2012 Action Plans for PLGP Partner Municipalities July 2012 Monthly Alert Report – July August 2012 Monthly Alert Report – August September 2012 Progress Report on Business Planning for PLGP partner Water Utilities September 2012 NTPA Internal Regulation September 2012 White Paper on Fiscal Decentralization September 2012
30 PLGP IN ALBANIA: FIRST ANNUAL REPORT (JANUARY–SEPTEMBER 2012)
U.S. Agency for International Development Planning and Local Governance Project in Albania St. Dervish Hima 3 Towers near Qemal Stafa Stadium Tower No. 1, Apt. 91, Tenth Floor Tirana, Albania Tel: + 355-04-450-4150 Fax: + 355-04-450-4149 www.lgpa.al