Vol. 2 • No. 5 • June 2015 P L A N N I N G A N D L O C A L G O V E R N A N C E P R O J E C T CITIZEN PARTICIPATION COMMUNITY-BASED SCORECARDS LOCAL ELECTIONS 2015 ADMINISTRATIVE TERRITORIAL REFORM LOCAL GOVERNANCE IN 2015 In this issue Decentralization Strategy, a Major Challenges and Opportunities for Local Governance Milestone in Local Governance 2 New Local Governance Law he year 2015 will be a pivotal one for and, as a result, each of the remaining to Consolidate Local Autonomy 3 Tlocal governments in Albania, with LGUs will soon grow significantly in Municipality of Durres Assists Korça unprecedented opportunities – and geographic size, population, and opera- Officials with Debt Management 3 challenges – to advancing decentral- tional complexity. To support LGUs dur- Taxation Experts in Kosovo Share Best ization and strengthening local gover- ing this all-important and challenging Practices with Albanian Counterparts 4 nance. In the time since the Planning time of transition, USAID will intensify GIS - A Powerful Tool for Increasing and Local Governance Project (PLGP) the assistance offered to both the GoA Own-Source Revenues 4 was launched in January 2012, USAID and local governments as we work to- Transition Plan for Elbasan Water Utility 5 has been working diligently to help the gether collaboratively to improve the New Water Utility Websites Improve Government of Albania (GoA) and local quality of lives in communities across Citizens’ Access to Information 5 government units (LGUs) successfully Albania. As in the past, we will work USAID Assists Elbasan Water Utility implement decentralization legislation, with the central government to advance in Building Capacity 5 policies and reforms. These are exciting decentralization policies and legislation Statistical Brief Assesses Status of and busy times for all of us and USAID and respond to the requests of LGUs for Local Government Finance 6 looks forward to continuing to be a support in improving service delivery, Ministry of Finance with USAID Support Will partner in the decentralization process. refining planning efforts and managing Revise Unconditional Grants Formula 7 And, with USAID’s recent approval of growth and development. Community-Based Scorecards Provide modifications to PLGP, the Project will Further, we understand that for territo- Feedback to Mayoral Candidates 8 now extend for another six months (un- rial reform to be effective, it must be Ongoing Institutional Support to til July 2017), allowing for an intensifica- accompanied by other decentralization NTPA and MUD 9 tion and expansion of some key project reforms, particularly within the realm USAID Supports Municipalities in initiatives. of fiscal decentralization. USAID appre- Drafting General Local Territory Plans 9 This summer’s Territorial and Adminis- ciates the challenges faced by the Min- Mayors’ Forum Promotes Planning trative Reform (TAR) will reduce Alba- istry of Finance (MoF) in balancing the and Collaboration 10 nia’s local governments from 373 to 61 Continues on page 2. Urban Renewal Projects for LGUs 10 Rr. “Dervish Hima” 3 Kullat pranë St. “Q. Stafa”, Kulla Nr. 1, Apt. 91, Kati 10, Tirana, Albania • Tel: +355 44 50 41 50 • www.plgp.al 1 USAID’S PLANNING AND Local GOVERNANCE PROJECT LOCAL GOVERNANCE IN 2015 Challenges and Opportunities for Local Governance Continued from page 1. GoA budget in this time of Europe-wide egy will serve as a roadmap for decen- ported efforts to build the capacity of economic stagnation. Nevertheless, tralization. Also at the national level, local governments to better serve their given the growing understanding of the USAID is supporting efforts to draft citizens. These efforts have resulted in: importance of fiscal decentralization, a new Organic Law for Municipalities improved tax administration and col- we will work with the GoA to see that (Law on Organization and Function- lection, better planning and growth adequate financial resources flow to ing of Local Governments). This new management, more engaged citizens, under-funded local governments. And, Law will confirm the authority of the 61 stronger Information Communications of course, USAID will continue to work newly created local government units Technology, improved service delivery, closely and cooperatively with the Min- in Albania and will entrust these mu- and better performance by water utili- istry of Urban Development (MUD) and nicipalities with both the responsibility ties. Going forward, we will strive to the Ministry of State for Local Issues and the resources to better serve their build good governance and more effec- (MoSLI) in fulfilling their mandates. tive municipal management. Our hope Because the preparation of the legally “USAID will intensify is to create best practices with six new- mandated General National Territorial ly-consolidated municipalities: Berat, Plan (GNTP) is also a vital part of this the assistance Elbasan, Fier, Korça, Kuçova, and Lush- milestone year, USAID will continue its offered to both nja. PLGP’s remaining partners (Kamza, support to the National Territorial Plan- Patos, Saranda, Vora, and Vlora) will ning Agency (NTPA). Simultaneously, the GoA and local continue to receive tailored support at the local level, USAID will strive to governments...to and technical assistance. build the capacity of the newly-consol- USAID understands that the challenges idated municipalities in preparing and improve the quality of of effectively implementing democrat- duly adopting their General Local Ter- lives in communities ic decentralized local governance are ritorial Plans (GLTPs). daunting. We also know that progress At the national level, it has been many across Albania.” is being made in advancing the long- years since the GoA has had a Strategy stalled decentralization process. On the citizens. Finally, USAID is assisting the in place to guide and prioritize actions eve of the enactment of Territorial Re- MoF in revising the Unconditional Grant that will strengthen local governance. form, USAID looks forward to working Formula in an effort to ensure the fair Now, the GoA, with USAID support, with the central and local governments and equitable distribution of revenues has drafted a new National Strategy for and the citizens of Albania to confront to the newly-created municipalities. Decentralization and Local Governance challenges and embrace the opportu- for the period of 2015–2020. This Strat- Over the last 3.5 years, USAID has sup- nity for decentralization in this country. DECENTRALIZATION STRATEGY 2014 - 2020 A Major Milestone in Local Governance ith support and technical assis- The strategy will take into account ex- specific peculiarities of local govern- Wtance from the USAID Planning isting legal and political frameworks, ment administration in Albania. and Local Governance Project, the Min- the achievements and gaps of previ- USAID will provide additional assis- istry of State for Local Issues (MoSLI) ously implemented strategic policies, tance to MoSLI in its implementation has officially initiated the drafting of the requirements for enhancing the ef- of other aspects of the decentraliza- the Decentralization Strategy man- ficiency of public services, and the need tion strategy, including the new Law on – imposed by the process of European dated by the Prime Minister’s Order No. Organization and Functioning of Local integration 69: “On Establishment and Functioning Governance, the Law on Local Gov- – for local of the Inter-institutional Working Group ernance Finances, and a new formula for Drafting the National Cross-Cutting governance to comply for the allocation of the unconditional Strategy for Decentralization and Local with Euro- grant. Governance”, dated 13.02.2014. pean Union It will also provide assistance in the With Albania’s administrative-territo- best prac- implementation of the Law on Terri- rial reform entering its first phase, this tices. At the torial Planning and Development, in strategic document is of particular im- same time, improving local government units’ per- portance as it is one of the major chal- the strategy formance in collecting and administer- lenges in improving local government considers ing local taxes (with particular focus on units’ efficiency and the quality of ser- the current property taxes), and in empowering vice delivery to citizens. status and community-based groups. 2 USAID’S PLANNING AND Local GOVERNANCE PROJECT NEW LAW ON ORGANIZATION AND FUNCTIONING OF LOCAL GOVERNANCE New Law to Consolidate Local Autonomy lbania’s administrative-territorial the amalgamated communes. And, yet, support post-reform mayors, councilors Areform has triggered the need to these expanded responsibilities will fall and community structures in making change the overall structure and orga- to a greatly reduced number of munici- their LGUs more capable, efficient and nization of the roles and responsibilities pal councilors and to directories unused effective. of local government units in relation to to balancing the varying needs of their The revised manual will be dissemi- the national government – and vice ver- expanded geographies. The working nated to the associations of local elects sa. This reworking of the relationship group is reviewing the rights, roles and and other programs operating in local structure requires the drafting of a new responsibilities of LGU mayors, council- governance so that all 61 municipalities Organic Law on the Organization and ors and directories to ensure that rep- receive needed training. Functioning