PLANNING and LOCAL GOVERNANCE PROJECT in ALBANIA Fact Sheet

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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 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. STRENGTHEN CIVIC ENGAGEMENT TO PREVENT VIOLENT EXTREMISM

PLGP is focused on increasing awareness of and resilience to the 3 socioeconomic, political, and cultural drivers of radicalization in Albania. PLGP supports the Government of Albania’s (GoA) National Coordinator on Countering Violent Extremism (CVE) in implementing the National Strategy- CVE promoting civic participation and empowering civil society to build community resilience in the municipalities of Bulqiza, Cerrik, Dibra, Kamza, Librazhd, and Pogradec. We aim to empower women and girls to serve as powerful peace builders and mediators - critical in mitigating and preventing violent extremism (PVE)

KEY ACHIEVEMENTS: • Conducted PVE Mapping Assessments in 6 municipalities of Bulqiza, Cerrik, Librazhd, Pogradec, Kamez, and Diber • In partnership with the Countering Violent Extremism (CVE) Center, finalized and published the Guide to P/CVE “For Effective Municipalities, Active Communities, Safer Citizens” • Delivered the first-ever P/CVE training sessions to local officials, municipal leaders and Civil Society Organizations (CSOs) in Cerrik, Bulqiza, Librazhd, Diber, Pogradec and Kamez. • Strengthened Civic Engagement to Build Resiliency and Community Cohesion through the creation and formalization of four Youth Boards in the partner municipalities of Bulqiza, Cerrik, Librazhd, Dibra, and one non-partner municipality of Belsh, engaging over 150 youth. • Continuing to support the empowerment of youth to equip them with knowledge and life skills, and to prevent adoption of a path of crime or radicalization, through continuous mentoring and training for the established youth groups on youth advocacy and lobbying, open sessions on volunteerism and safe spaces and after school extra curriculum including team building activities, participation in local governance and community policing, and in organizing activities at the local level including sports matches/competitions, critical thinking sessions, clean up days. • Supported the creation and formalization of Local Security Councils (LSC) in Bulqiza, Dibra, and Pogradec. • Cooperated with private and public stakeholders that support economic growth and development, including facilitation of dialogue and action planning between municipalities and AlbChrome (the largest chrome ore and ferrochrome producer in Albania) related to job creation and workforce development. AlbChrome and Elbasan’s “Ali Myftiu” Vocational School are collaborating to establish a metallurgy/foundry class with at least 20 students from the 12th grade. Students graduating from this class will have secured employment with AlbChrome. • Furnished the cinema in the municipal cultural center in Cerrik, and established and furnished a youth center in Bulqiza.

ONGOING ACTIVITIES: • Supporting community-based activities through materials and commodity support (sporting events/equipment, computers/internet access, etc.). • Supporting the creation and formalization of two Youth Boards in the partner municipalities of Kamza and Pogradec. • Delivering capacity building and coaching activities to Gender Focal Points in six partner municipalities of Bulqiza, Cerrik, Dibra, Kamza, Librazhd, and Pogradec. • Bringing together local actors to increase women employement, and conduct training sessions, workshops, and thematic discussions to enhance women groups activism at the local level in six partner municipalities. • Conducting Gender-Sensitive Value Chain Analyses (GSVCA) in six LGUs. • Developing a policy paper to support a referral mechanism and/or response protocol for P/CVE. • Capacity building activities on gender equality, gender-based violence, and civic participation for marginalized women. PROMOTE ECONOMIC DEVELOPMENT PLANNING & IMPLEMENTATION 4 IN PARTNER MUNICIPALITIES Building on previous years of work on urban planning, PLGP provides technical assistance in developing the skills and knowledge needed to implement territorial plans and design and implement local detailed plans. PLGP assists partner municipalities to engage with the private sector in a mutually beneficial way to promote competitiveness and • Supported the establishing of Local Economic Development Departments and Economic Development Advisory job creation. PLGP is working with our partner municipalities to identify appropriate businesses, associations, and Councils (EDAC) in the Municipalities of Elbasan, Fier, Berat, Lushnja, and Kucova to encourage the development of local private sector individuals that play an important role in creating local economic development potential. both existing and new economic enterprises and strengthen private sector engagement in local economic development. KEY ACHIEVEMENTS: • Designed, in cooperation with the Municipalities of Fier and Berat, infrastructure projects to be funded by the Trans • Provided expertise to the Ministry of Urban Adriatic Pipeline. Development (MUD) in drafting and approving the National General Territory • Prepared a Benchmarking Report on the implementation of GLTPs and their impact on sustainable local economic Plan and in drafting the Territory Planning development in Albania. Law. • Supported six partner municipalities in preparing Local Detailed Plans (Berat, Lushnje, Fier, Kucove, Elbasan and Tirana). • Preparation of Toolkits and Manuals including: • Coaching trained individuals responsible for implementation of LED activities (municipal staff and Councilors on Inclusive Planning Manual for Citizens and Economic Development Committee) from five partner municipalities (Berat, Elbasan, Fier, Kuçova and Lushnja). Authorities, 2013; Manual on Territorial • Prepared the brochure “Guides to Doing Business” and supported the municipalities of Berat, Elbasan, Fier, Lushnja, Planning and Development, 2016; and, Policy and Kucova to publish it to boost Local Economic Development. paper on Financial Instruments for Land Development, 2016. • Support provided to National Planning Activities including support to the National Territorial Planning Agency (NTPA) in the preparation of the Integrated Cross-sectorial Plan (ICSP) for the Coast and ICSP for the Tiranë-Durrës Area.

• Supported the Ministry of Urban Development and the NTPA in the preparation of the Policy for Territorial Planning and Development for the period 2014-2020. • Prepared Albania’s first five General Local Territorial Plans (GLTPs) that address the environmental, social, economic, demographic and infrastructural issues municipalities will face in the coming years. The GLTPs have helped the five partner municipalities raise their revenues from the Tax on the Infrastructure Impact of New Buildings. Fier Economic Development Advisory Council.

Elbasan Economic Development Building on previous years of work on urban planning, PLGP provides technical assistance in developing the skills and Advisory Council. knowledge needed to implement territorial plans and design and implement local detailed plans. PLGP assists partner municipalities to engage with the private sector in a mutually beneficial way to promote competitiveness and • Supported the establishing of Local Economic Development Departments and Economic Development Advisory job creation. PLGP is working with our partner municipalities to identify appropriate businesses, associations, and Councils (EDAC) in the Municipalities of Elbasan, Fier, Berat, Lushnja, and Kucova to encourage the development of local private sector individuals that play an important role in creating local economic development potential. both existing and new economic enterprises and strengthen private sector engagement in local economic development. KEY ACHIEVEMENTS: • Designed, in cooperation with the Municipalities of Fier and Berat, infrastructure projects to be funded by the Trans • Provided expertise to the Ministry of Urban Adriatic Pipeline. Development (MUD) in drafting and approving the National General Territory • Prepared a Benchmarking Report on the implementation of GLTPs and their impact on sustainable local economic Plan and in drafting the Territory Planning development in Albania. Law. • Supported six partner municipalities in preparing Local Detailed Plans (Berat, Lushnje, Fier, Kucove, Elbasan and Tirana). • Preparation of Toolkits and Manuals including: • Coaching trained individuals responsible for implementation of LED activities (municipal staff and Councilors on Inclusive Planning Manual for Citizens and Economic Development Committee) from five partner municipalities (Berat, Elbasan, Fier, Kuçova and Lushnja). Authorities, 2013; Manual on Territorial • Prepared the brochure “Guides to Doing Business” and supported the municipalities of Berat, Elbasan, Fier, Lushnja, Planning and Development, 2016; and, Policy and Kucova to publish it to boost Local Economic Development. paper on Financial Instruments for Land Development, 2016. • Support provided to National Planning Activities including support to the National Territorial Planning Agency (NTPA) in the preparation of the Integrated Cross-sectorial Plan (ICSP) for the Coast and ICSP for the Tiranë-Durrës Area.

• Albanian American Development Foundation • Austrian Development Cooperation • Council of Europe • Embassy of Slovenia in Albania / Center for European Perspective Slovenia • European Bank for Reconstruction and Development • European Union Delegation in Albania • German Federal Enterprise for International Cooperation • Network of Associations of Local Authorities of South-East Europe • Organization for Security and Cooperation in Europe • Peace Corps Albania • Swedish International Development Agency • Swiss Development Cooperation / Swiss State Secretariat for Economic Affairs • Trans Adriatic Pipeline • UN Women • United Nation Development Program • World Bank

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