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PLANNING and LOCAL GOVERNANCE PROJECT in ALBANIA Fact Sheet

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PLANNING and LOCAL GOVERNANCE PROJECT in ALBANIA Fact Sheet PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA TRANSPARENCY MANAGEMENT OF ECONOMIC FISCAL DISCIPLINE RESPONSIBILITY IMPROVED PUBLIC SOURCES DEVELOPMENT SERVICES BETTER SYSTEMS - BETTER SERVICES USAID’s “Planning and Local Governance Project” in Albania (PLGP) has worked at both the national policy level and at the local level since 2012 to promote acceptance of the principles of decentralized governance, and to 17 disseminate and institutionalize practical and effective methods and PARTNER MUNICIPALITIES techniques for municipal management. Dibra In September 2017, PLGP was extended to continue our work to reinforce 57% decentralization gains and assist local governments to better provide of ENTIRE municipal services and economic development opportunities and to become POPULATION Librazhd more involved in addressing factors that can lead to violent extremism. IN ALABANIA PLGP is now working on Preventing Violent Extremism (PVE) and Women, Peace & Security (WPS) to build community resiliency and sustainability in Pogradec Albania through activities that will contribute to the prevention of social exclusion, violent extremism, radicalization, marginalization, recruitment and conflict. We aim to empower women and girls to serve as powerful peace builders and mediators - critical in mitigating and preventing violent extremism. GREATER PREDICTABILITY, TRANSPARENCY AND REVENUE POTENTIAL OF LOCAL GOVERNMENT FINANCES 1 PLGP builds upon its accomplishments to date to strengthen Albania’s legal framework for decentralization and increase local government resources while strengthening local governments’ implementing capacities. PLGP works with the Ministry of Finance & Economy (MoFE) to advance fiscal decentralization reforms by increasing local government units’ (LGU) revenues, stabilizing intergovernmental transfers, drafting bylaws and implementing the Law on Local Self-Government Finance provisions related to local taxation, grant allocation, tax sharing and accountable public financial management. PLGP continues to support the Central/Local Government Consultative Council (CC) to improve decentralization policies, legislation, processes and intergovernmental dialogue and consultations. PLGP supports partner municipalities in using Information and Communication Technology (ICT) tools to increase own source revenue generation by: improving tax collection and administration; developing specific action plans related to property taxation; utilizing GIS techniques to map taxpayers; and, conducting public outreach to increase tax payers’ awareness. KEY ACHIEVEMENTS: THE IMPLICATIONS OF THE NEW LAW ON LOCAL FINANCES ($MLN) - White Paper on Fiscal Decentralization in Albania - National Cross-Cutting Strategy for Decentralization and Local Governance - New Organic Law on Local Self-Government - New Unconditional Grant Allocation Formula - Central/Local Government Consultative Council The new Law adopted with lead support of USAID increases local government revenues - The first-ever comprehensive Law on Local from state transfers by at least 37% compared to historical average. Government Finance (LGFL) - Preschool education finance reform - Supported direct dialogue between MoFE and local governments through a regular publication on local finance indicators. - Supported partner municipalities in preparing user friendly brochures on local budget and taxes, to increase transparency, accountability, and facilitate citizen engagement in local decision-making processes. - Improved intergovernmental dialogue and consultation through the organization of budgetary hearings with all local governments before the approval of the State Budget Law to improve financing of local functions. - Supported the MoFE and local governments in implementing the recently adopted methodology on value-based building tax including: trained newly recruited staff at the MoFE’s General Directorate on Property Tax; trained municipal staff on the new methodology and relevant technological instruments; and provided technical assistance and contributions on the soon to be created Property Tax Fiscal Cadaster as a participant in the Property Tax Steering Committee established by MoFE. IMPROVE LOCAL GOVERNMENT 2 SERVICE DELIVERY PLGP provides technical assistance and on-the-job training to staff in our partner municipalities on a variety of management and governance issues. Special focus has been given to establish building blocks to: address systemic weaknesses and improve local tax collection; strengthen financial management and control to ensure the transparent, accountable and sustainable use of local public financial resources; build e-government solutions through ICT tools; improve quality of local services by creating/strengthening the culture of service delivery and by developing systems and capacities (skills) for water management in particular; and, increase citizen awareness and participation in decision-making. KEY ACHIEVEMENTS: Quality Service Improvement Program (QSIP) has been implemented in 5 municipalities to improve service • Provided ICT improvements to address systemic delivery in key areas including irrigation and drainage. The process included assessment analyses and action plans weaknesses and substantially improve local tax collection. on irrigation and drainage service in municipalities of Fier, Elbasan, Patos, Kucove and Lushnja. • As a result of the above systems and coupled with action plans, tax awareness programs, and training of local officials, PLGP partner municipalities have improved tax collection by 10-30% annually. Between 2015 and 2018, our partner LGUs had a steady increase of their own source revenues (OSR) by 30 to 46% each year. • Over the last two years the assisted municipalities increased their revenues from the collection of property tax and service fees by 58%, increased spending for public investments by 56%, and increased spending for the improvement of basic local public services by over 29%. • Established 5 One-Stop Shops in Korca, Fier, Berat, Saranda, and Patos to deliver substantially more efficient and responsive administrative services. • Established and institutionalized 15 Citizen Advisory Panels (CAPs) to regularly consult with municipal officials on issues such as taxes, annual budgets and city development. • Assisted te preparation of the Tirana Water Utility Five-Year Business Plan that served as the basis for negotiating a ~$33 million Capital Investment Program recently approved by the European Bank for Reconstruction and Development. • Assisted Central Government and 6 Model Municipalities to develop Transition Plans to restructure delivery of water supply and sewerage services in the new administrative local government service areas after the enactment of Territorial Administrative Reform (TAR). • Assisted 8 local governments to develop and implement Five-Year Water Utility Business Plans aimed at improving commercial performance and the quality of water service. • In partnership with the Slovenian Embassy/Center for European Perspective (CEP), PLGP trained local officials on proposal writing for IPA/EU/other funding; resulting in 5 PLGP partner LGUs being awarded 26 contracts for a total of EURO 2,819,171. • Assisted one of the biggest Water Utilities in Albania, Elbasan, in implementing a Structured Methodology and Approach for Asset Management and Maintenance, a crucial step torward the improvement of water services for the expanded municipality. • Developed a comprehensive National Approach and Strategy to reduce Non Revenue Water, in support to the Ministry of Infrastructure and Energy, which will serve as the road map for future actions for the water utilities in Albania. • Conducted Training and Capacity Building for Local Government Officials (61 Municipalities) and Water Utility Administrative Councils (58 Utilities) on roles and responsibilities to govern and manage the delivery of water supply and sewerage services after the TAR. Community Based Scorecards - Feedback from around 3,000 citizens in 18 Albanian LGUs influenced the substantial improvement of community resources including upgraded rural roads in Elbasan, Berat, Fier, and Patos; construction of social housing for vulnerable women in Patos; and cleaning and maintenance of irrigation channels in Fier, Berat, Roskovec, and Shkodra. Before After KEY ACHIEVEMENTS: Quality Service Improvement Program (QSIP) has been implemented in 5 municipalities to improve service • Provided ICT improvements to address systemic delivery in key areas including irrigation and drainage. The process included assessment analyses and action plans weaknesses and substantially improve local tax collection. on irrigation and drainage service in municipalities of Fier, Elbasan, Patos, Kucove and Lushnja. • As a result of the above systems and coupled with action plans, tax awareness programs, and training of local As a result of QSIP action planning in the municipalities of Elbasan, Fier, Kucova, and officials, PLGP partner municipalities have improved tax Patos, drainage and irrigation has increased by 69.6% from 16,155 to 27,404 collection by 10-30% annually. Between 2015 and hectares (Ha). The improved service is affecting 37,884 farmers’ families giving 2018, our partner LGUs had a steady increase of their access to drainage and irrigation. own source revenues (OSR) by 30 to 46% each year. • Over the last two years the assisted municipalities increased their revenues from the collection of property tax and service fees by 58%, increased spending for public investments
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