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Reconciliation of Revenues Received by the Municipality of Patos from Royalty Payments and the Administration of Funds for the Benefits of the Community in 2012

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Reconciliation of Revenues Received by the Municipality of Patos from Royalty Payments and the Administration of Funds for the Benefits of the Community in 2012 Reconciliation of revenues received by the Municipality of Patos from royalty payments and the administration of funds for the benefits of the community in 2012 Municipality of Patos Albania EITI Secretariat 2015 September 9 Table 1 Comparison between local The Economy government budgetary funds and funds received by Royalty Budget Royalty Table 2 Legislation Local Units beneficiary of Royalty in a. Laws for royalty 2012-2013 b. Guidelines of Ministry of Finance Table 3 Content c. Percentage of the Royalty according to Information and data reported by the classification for Hydro-Carbon Sector Municipality of Patos Executive overview Patos Municipality Contribution of extractive industry to Albania Table 4 Economy Communes near the area Information and data reported by Commune of Mbrostar Contribution of Royalty by extractive areas Geography Demography Control over the use of Royalty funds Culture and Sport _________________________________________ Conclusions Albania EITI Secretariat _________________________________________ Recommendations The accomplishment of this task is carried out ○ The Royalty funds collected and delivered by in accordance with the competences given to the Ministry of Finance have been identified EITI Albania on the collection and processing for the whole country and in particular for of data and official information for Patos Municipality. reconciliation of the income received from royalty fund and the administration of these ○ On-site verification on the administration of royalty funds given to Patos Municipality based funds delivered to Patos Municipality in 2012 on law procedures, rules and the relevant The main objective is the verification of the projects approved to the benefit of the Pursuant to tasks arising from the MSG delivery process of the Royalty funds and the community in the extractive industry areas. meeting and also to the Instruction of administration of these funds to the benefit of ○ Specialists and heads of Local Government Albanian EITI Secretariat, no. 63 dated the community. This is done for the purpose Units as well as representatives of the 23.03.2015 on the “Establishment of a of including in future EITI reports data not beneficiary community have been contacted. working group for the: Reconciliation of only on the collection but also on the delivery the revenue received by the Municipality and use of these funds to the interest of the ○ The main requests associated with the EITI of Patos from the royalty payments and the community living in the extractive industries process have been identified in terms of administration of funds for the benefit of areas. possible improvements in legislation, royalty the community in 2012”, the necessary The objective of this task was to prepare a fund distribution procedures and cooperation economic and financial information has report that would provide information to the between local governments and state agencies. been collected and processed and also the MSG and others interesting groups of interest required legal support has been ensured The Mayer of Patos, Mrs. Raimonda Balilaj, on economic indicator of Patos areas, the chief of Finance Sector, Mimoza from the relevant government structures regarding the identification of Royalty fund Shtembari, and the specialist of the Project and responsible for the delivery and use of distribution and usage in certain area. Under Urban Planning Mr. Andon Kristo have been Royalty revenues from local government, the circumstances, the following steps were contacted, etc. During these meetings, we which in our case is the Municipality of clarified the purpose of our visit and requested taken: Patos. information on royalty funds received in 2012 ○ Various and relevant information related to and 2013, respectively, their destination and also the procedures followed for their use. Methodology and the oil & gas area of the Patos Municipality preparatory work has been collected. The municipality consists of three The highest measured point of the region is From the discussions emerged that these administrative units which are: Patos, Zharrez the hill of Margellicit 320m above the sea funds were mainly used used for the dhe Ruzhdie. All administrative units are level. The Myzeqe is located to the North improvement and rehabilitation of the currently part of the Fier district. The New and North-West part, in front of the city, infrastructure of the area, such as roads and Municipality comprises under its whilst Roskoveci field is found to the North- nurseries, etc. Open meetings and administration one city and 18 villages. East of the area. discussion were also organized with local residents to share their opinions on the new The city of Patos villages: Rërez – Dukas – Layout surface is divided into: Fields 718 roads reconstructed with these funds. Kuqar – Rusinje – Margëlliç – Griz – Banaj ha and hills 1488 ha. The city is crossed by the roads Fier-Gjirokaster and Fier-Berat, Administrative units: which have had their impact to the Executive Summary Zharrëz, villages: Zharrëz, Fshat i Ri, Frashër, development of the area. The climate of the Verbas,Sheqishtë,BelinëRuzhdie,Fshatrat:Ruzh are is a typical Mediterraneanclimate Patos Municipality die,Siqecë, Gjynahqarë, Drenie, Kasnicë affected by marine air masses because of the Cakran - Dërmenas - Frakull - Kuman - Kurjan short distance from Adriatic Sea (almost 25 The New Municipality of Patos borders with - Levan - Libofshë - Mbrostar - Portëz - km). the Municipality of Fier to the north and Qendër - Ruzhdije - Strum - Topojë - Zharrëz west, with Municipality of Mallakastra to the south and theMunicipality of Roskovec Geography to the east. The center of the Municipality is Patos City. The city of Patos is part of Fier Patos is located 7 km to the southwest of Fier, district. It is the second largest city after Fier lying along the hilly chain that divides the field for the number of residents. Patosi City is of Myzeqe from Gjanica river Valley. This situated to the southeast of the Fieri, on the hilly range continues in the form of circular National Road Fier-Tepelene. It has been an across the roas Patos-Fier and lools like a industrial town created around 1949 to natural amphitheater. It is part of the lower house workers and engineers employed in hills of Mallakastra which continue southward the so-called “Patos marinez area” (one of up to Vjosa River. Their average height is the richest oilfields in Albania). Patosi City about 200-300 m declining towards Patos while is the center of the oil extractive industry in diving in the field of Myzeqeja. Albania. Demography The mountainous relief to the east and south prevents the penetration of cold continental climate. The average annual Population Area: 42.738 Habitants temperature varies 14-15 degree Celsius, while January temperatures reach 5 degree Population Municipality: 22.959 Habitants Celsius. Precipitation is mainly in form of Patosi City has a population of 22.959 rainfall while the snowfall is a rare Habitants (source: Institute of Statistics) occurrence. The amount of summer precipitation constitutes only 1/10 of the Based on the 2011 Census, the new whole precipitation. This leads to irrigation Municipality of Patos has a population of needs. For this reason several artificial 22.959 habitants, while according to the civil lakes in Zherrez, Lalar, Ruzhdie etc.,have register the population is 42.738 habitants. been build. The new Municipality consists of 82.5 km2 surface area. According to Civil Register data Economy the population density is 518 habitants/km2 while according to the Census the density is The Patos town started to be built in 1949 to 278.3 habitants/km2. Patos is characterized accommodate oil workers and engineers. The by a heterogeneous population which means basin oilfield known as “Patos-Marinza” is the that people come from different Albanian richest oilfields in Albania. But despite this, the cities such as:, Skrapar, Laberi, Cameri etc number of people employed in oil industry in this area is many times lower than it has been Culture and Sport in previous years. For many years, the oil sector has been the main economic source, but The city’s football team is called Albpetrol. It after foreign companies started to take over oil achieved its best result on the Albanian Cup operations, the level of employment in this Final agains Partizani team on the year 93-94, sector changed. This led to a concentration of and also the participation on the Europe cups labor force in the agriculture sector. during the year 93-94. Surface:82.55km2 The private service sector provides One of the most important challenges that Another main issues identified by the local income for the urban area and recently faces local government is the clean-up and community concerns the building of new or the the garment industry has also started its rehabilitation of many abandoned and rehabilitation of existing schools, nurseries and activity in this area. The number of existing oilfields and also taking measures kindergartens. population has decreased significantly to prevent pollution from existing oil wells. due to the mountainous landscape In this regard, one of challenges identified Another aspect that seeks the attention of local causing the relocation to urban centers by the habitants of the Municipality is the government is the increase of homeless families or neighbored countries. The relationships between the local units and during last years. They need to be supported infrastructure of the urban area and the concession company which operates the through planning and building social surrounding villages has improved in oilfield. apartments. the last years but there is still much Also, another challenge for the municipality work to be done in order to provide The budget is the state’s elaboration and administration transportation from the distant areas to of the Royalty from oil extraction in the In the year 2012 was 80,312 ALL the center of Municipality. area, As e result of this, the Municipality In the year 2013 was 71,477 ALL The geographical extension of Patos as can provide millions of euros income.
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