PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA COMPLETION REPORT JANUARY 2012–SEPTEMBER 2020

August 28, 2020

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: SARAH LEDDY SENIOR TECHNICAL ADVISOR/MANAGER [email protected]

TETRA TECH ARD HOME OFFICE ADDRESS: TETRA TECH ARD 159 BANK STREET, SUITE 300, BURLINGTON, VT 05401 TEL: 802 495-0282, FAX 802 658-4247 WWW.TETRATECH.COM/INTDEV

COVER PAGE PHOTO: Pogradec Girls Scouts (top left); municipal staff at the Fier One Stop Shop (top center); implementation of the Municipality of Elbasan irrigation and drainage action plan to improve service delivery to citizens (top right); Dibra woman harvesting MAP flowers (bottom left); “Doing Business” guides prepared for five partner municipalities with PLGP support (bottom center); and Dibra food producer at the traditional food promotional event organized by PLGP (bottom right). Erald Lamja for USAID.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA COMPLETION REPORT JANUARY 2012–SEPTEMBER 2020

AUGUST 2020

DISCLAIMER

This report is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of Tetra Tech and do not necessarily reflect the views of USAID or the United States Government.

CONTENTS

ACRONYMS AND ABBREVIATIONS ii

EXECUTIVE SUMMARY v

1.0 INTRODUCTION 1 1.1 PURPOSE OF THE COMPLETION REPORT 1 1.2 STRUCTURE OF THE COMPLETION REPORT 3

2.0 CONTEXT 4 2.1 THE DECENTRALIZATION AGENDA IN 2012 4 2.2 SIGNIFICANT PROGRESS DESPITE HURDLES: LOCAL GOVERNANCE IN 2020 5

3.0 ACHIEVEMENTS BY COMPONENT 8 3.1 HIGHLIGHTS AND ACHIEVEMENTS 8 3.1.1 COMPONENT 1 (HISTORIC): SUPPORT THE GOA’S WORK TO IMPLEMENT EFFECTIVE GOVERNMENT DECENTRALIZATION POLICIES AND LEGISLATION 8 3.1.2 COMPONENT 1: SUPPORT GREATER PREDICTABILITY, TRANSPARENCY, AND REVENUE POTENTIAL OF LOCAL GOVERNMENT FINANCES 10 3.1.3 COMPONENT 2: IMPROVE MUNICIPAL MANAGEMENT SYSTEMS FOR DELIVERY OF KEY LOCAL SERVICES 12 3.1.4 COMPONENT 3 (HISTORIC): IMPROVE LOCAL GOVERNMENT MANAGEMENT AND OVERSIGHT OF PUBLICLY OWNED UTILITIES, IN ACCORDANCE WITH EUROPEAN UNION STANDARDS 20 3.1.5 COMPONENTS 3A AND B: STRENGTHEN CIVIC ENGAGEMENT TO PREVENT/COUNTER VIOLENT EXTREMISM (AND WOMEN, PEACE, AND SECURITY) 23 3.1.6 COMPONENT 4 (HISTORIC): STRENGTHEN THE CAPABILITIES OF THE GOVERNMENT OF ALBANIA AND LOCAL GOVERNMENTS TO PLAN AND MANAGE URBAN AND REGIONAL GROWTH 41 3.1.7 COMPONENT 4: PROMOTE ECONOMIC DEVELOPMENT PLANNING AND IMPLEMENTATION 44

4.0 DISCUSSION OF PROBLEMS ENCOUNTERED AND WHERE OBJECTIVES WERE NOT ACHIEVED 47

5.0 LESSONS LEARNED 50

6.0 RECOMMENDATIONS AND NEXT STEPS IN LOCAL GOVERNANCE 62 6.1 SUGGESTIONS FOR FUTURE PROGRAMS AND SUPPORT FOR DECENTRALIZATION 62 6.2 SUSTAINABILITY MEASURES AND FUTURE ACTIVITIES WITH STAKEHOLDERS 67

7.0 ANNEXES 72 7.1 INDEX OF ALL REPORTS AND INFORMATION PRODUCTS PRODUCED UNDER THIS CONTRACT 72 7.2 SUCCESS STORIES 91 7.3 PERFORMANCE INDICATOR REPORT/PMP, TABLE BY YEAR. 92

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) i ACRONYMS AND ABBREVIATIONS

ALL Albanian Lek ASLG Agency for Support of Local Self-Government BAWIS Billing and Accounting Water Information System BLAST Boys Leadership and Advocacy BtF Bashkia te Forta CAP Citizens Advisory Panel CBS Community-Based Scorecard CC Consultative Council CEMR Council of European Municipalities and Regions COD Community and Organizational Development CSO Civil Society Organization CVE Countering Violent Extremism DCM Decision of Council of Ministers DO Development Objective DP Democratic Party EDAC Economic Development Advisory Council ESD Empowerment through Self-Defense Program EU European Union FAIS Finance Administration Information System FILD Financial Instrument for Land Development G2G Government-to-Government GDP Gross Domestic Product GEO Gender Equality Officer GIS Geographic Information System GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH GLOW Girls Leading Our World Club GLTP General Local Territorial Plan GoA Government of Albania GSVCA Gender-Sensitive Value Chain Analysis ICT Information and Communications Technology KPI Key Performance Indicator LDP Local Detailed Plan LED Local Economic Development LGAP Local Gender Action Plan LGFL Local Government Finance Law

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) ii LGU Local Government Unit LPSC Local Public Security Council LSGL Law on Local Self-Government MAP Medicinal and Aromatic Plants MoFE Ministry of Finance and Economy MoI Ministry of Interior MoIE Ministry of Infrastructure and Energy MoSLI Minister of State for Local Issues MoUD Ministry of Urban Development NALAS Network of Associations of Local Authorities of South-East Europe NCDLGS National Crosscutting Decentralization and Local Governance Strategy NGO Nongovernmental Organization NRW Non-Revenue Water NTC National Territorial Council NTPA National Territorial Planning Agency OSR Own-Source Revenue OSS One-Stop Shop P/CVE Preventing/Countering Violent Extremism PCV Peace Corps Volunteer PEFA Public Expenditure and Financial Accountability PFM Public Finance Management PIT Personal Income Tax PLGP Planning and Local Governance Project PMP Performance Monitoring Plan PPP Public-Private Partnership PVE Preventing Violent Extremism QSIP Quality Service Improvement Program RDF Regional Development Fund SECO Swiss Secretariat for Economic Affairs SP Socialist Party STAR Support for Territorial Administrative Reform Project STTA Short-Term Technical Assistance TAIS Local Tax Administration Information System TAP Trans-Adriatic Pipeline TAR Territorial Administrative Reform ToT Training of Trainers UNDP United Nations Development Program

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) iii UNFPA United Nations Population Fund USAID United States Agency for International Development USG United States Government VE Violent Extremism Web-GIS Web-Based Geographic Information System WEE Women’s Economic Empowerment WPS Women, Peace, and Security WSBP Women’s Small Business Program WU Water Utility YAP Youth Academy Program

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) iv EXECUTIVE SUMMARY

The last nine years have been pivotal for local governments in Albania, with unprecedented opportunities to advance decentralization and strengthen local governance. The Government of Albania (GoA), despite a challenging political environment and competition over resources, succeeded in implementing decentralization legislation, policies, and reforms with the United States Agency for International Development (USAID) Planning and Local Governance Project (PLGP) as the lead technical assistance provider. The key building blocks constructed at the national level enhance the enabling environment for democratic decentralized local governance, and PLGP accompanied municipalities at the local level in applying those policies, amassing evidence to improve them, and building capacity of local officials to fulfil their promise of proximate, inclusive, and responsive services. PLGP evolved over its nine years from four components focused generally on technical issues of policy, utility management and service delivery, local government institution strengthening, and urban planning. As the policy framework became more complete, these first components refocused on more specific technical issues, such as fiscal decentralization. In the last years of the project, USAID turned its attention to more nuanced issues of local governance, like fostering community resilience and enabling economic empowerment. These emerged with the awareness that the marginalization in Albania of vulnerable people—women and ethnic and religious minorities—was exacerbating the phenomenon of violent extremism and foreign fighting, as well as continuing the exclusion of women from remunerated roles in the productive economy. Context. When PLGP was launched in January of 2012, Albania was facing unprecedented opportunities to advance decentralization and strengthen a system of local governance that met European standards and practices for entry into the European Union (EU). Despite openings, challenges to decentralization arose: Polarization of political parties inhibited thoughtful discussion and consideration of public policies affecting local government and decentralization. Territorial reform linked to decentralization initiatives would result in a significant reduction in the number of local government units (LGUs), creating a controversial loss of political power for many local-level officials and a corresponding diminishment of opportunities for patronage. Local governance in 2020 is significantly improved due to the advancement of the decentralization agenda. Municipalities have the experience of their first mandate post-territorial reform to better understand their new functions, engage their citizens in planning those functions, and use more revenues to provide services through more transparent, equitable transfers and new borrowing possibilities. The U.S. Ambassador Arvizu giving remarks during the PLGP launching ceremony on May National Crosscutting Strategy 18, 2012. for Decentralization and Local Governance, which PLGP helped develop as the overarching road map for decentralization, remains in effect. In 2019 PLGP supported the process of updating and extending the scope of the Action Plan of the Decentralization Strategy, broadening sectoral decentralization, improving the intergovernmental finance system, and extending its timeline to 2022.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) v Highlights. Notwithstanding the challenging political environment for decentralization, PLGP is pleased to report few problems encountered and an effective implementation environment for achieving objectives. The project enjoyed a collaborative relationship with USAID and the GoA, which allowed for robust and ongoing adaptation mechanisms. High-level political buy-in from the Prime Minister, and the creation of new central agencies that looked to PLGP for capacity building, enabled the project to offer demand-driven expertise and anticipate the emerging needs of the GoA. A few results to highlight per component include: Component 1 (Historic): Support the GoA’s work to implement effective government decentralization policies and legislation. At the invitation of the GoA formed in September 2013, PLGP had a privileged role in creating the overarching National Strategy for Decentralization and its corresponding laws, policies, and agendas, including: a common agenda with the newly created Ministry of State for Local Issues; the New Crosscutting Decentralization and Local Governance Strategy; a new Organic Law on Local Self-Government; Territorial and Administrative Reform, at the behest of the Albanian Parliament; the Formula for the Allocation of the Unconditional Grant to Local Governments with the Ministry of Finance; and Albania’s first comprehensive Law on Local Self-Government Finance (LGFL). Component 1: Support greater predictability, transparency, and revenue potential of local government finances. Beginning in 2015, PLGP focused its efforts to complete the legal framework pertaining to the fiscal health of LGUs. PLGP worked to increase LGUs’ revenues, stabilize intergovernmental transfers, introduce Personal Income Tax sharing, and ease access to alternative financing and local borrowing. In addition to providing expertise to drafting the Formula for the Allocation of Unconditional Grants to Local Governments, constituting more than 50 percent of the budgets for more than 70 percent of LGUs, PLGP supported the consultative process until it was adopted by Parliament in October 2015. It provided the same expertise and support to the process for the first-ever LGFL, adopted by Parliament in April 2017 and subsequently tested its application and refined specific elements (e.g., pre-school financing) with evidence from municipalities. As a result of the LGFL, in 2020 local government revenues from the Unconditional Grant increased by $63 million1 (or 57 percent) compared to the historical average and by 46 percent compared to 2016, the year before the adoption of LGFL (see graphic). Compared to 2012, local government revenues from intergovernmental transfers have increased by $66.3 million, or 62 percent. Concerted assistance to a decentralized service like preschool led to increased funding of 9.1 percent, or 327 million Albanian leks (ALL; $3 million) when compared to 2018, allowing for more than 52,000 preschool-aged children in Albania (71 percent of the total) to benefit from more appropriate class sizes, a key precondition for improving accessibility and quality of preschools.

1 United States dollars.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) vi “With USAID support, we have increased funding for preschool teachers and have improved the allocation system, focusing services on children and pupils. In 2019 funding for preschool teachers will increase by 9 percent and 438 new teachers will be hired in those municipalities that have a more urgent need for teachers as measured by the pupils-per-teacher ratio. This is not statistics. This is focusing on our youngest citizens.” —Mr. Arben Ahmetaj, Minister of Finance and Economy, Government of Albania

Component 2: Improve municipal management systems for delivery of key local services. Grounded in the belief that improved municipal management—institutional strengthening—leads to more effective and positive local governance, PLGP provided technical assistance, information and communications technology tools, and on-the-job training to staff in partner municipalities to address management and governance issues, often using tools that the municipalities can apply and manage themselves. PLGP gave special attention to address systemic weaknesses in local tax collection; strengthen financial management; and ensure the transparent, accountable, and sustainable use of local financial resources. As a result of PLGP assistance and systems to local tax collection, coupled with action plans, tax awareness programs, and training of local officials, partner municipalities have improved tax collection by 10–30 percent annually, and partner municipalities saw an average of 47 percent increase (or $15 million) in own-source revenues (OSRs) from the beginning of Local Tax Administration Information System (TAIS) implementation through 2019 (see chart). PLGP provided annual support to the Ministry of Finance and Economy (MoFE) to develop annual fiscal packages affecting local government taxes and played a key role in reforming the legislative framework for property tax in Albania, which is expected to generate $2.4 million in additional revenue for local governments in the short term. To accompany civil society in their process of influencing these changes in sources and scale of resources, PLGP established and nurtured Citizen Advisory Panels (CAPs) to fill a gap in consultative mechanisms at the local level. For example, as LGUs developed General Local Territorial Plans (GLTPs), CAPs played a key consultative role as citizen forums. CAPs have participated in municipal council meetings and public hearings organized as part of the community-based scorecard (CBS) process. PLGP successfully implemented CBSs for the first time in 18 partner and non-partner LGUs (nearly 30 percent of Albania). Around 3,000 citizens were involved in the process through 95 focus groups, 57 semi-structured interviews, and 24 public forums. The process resulted in recommendations from citizens that led to improvements to public services including roads, schools, social programs and housing, and other public facilities and services. In a process that married civil society to LGUs through a tool to improve services, PLGP applied the Quality Service Improvement Program (QSIP). Tailored to create a “service culture” within local government, QSIP—a Tetra Tech tool for service-providing institutions

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) vii to self-evaluate and measure improvements—infused a customer- and quality-focused attitude in staff, encouraged more proactive behavior, and implemented service improvements within municipalities. QSIP resulted in PLGP technical assistance packages to improve services such as drainage and irrigation in urban and rural areas—an important step toward reinforcing the resiliency of citizens, their homes, and assets in the face of weather events. As a result of PLGP’s work in coaching partner municipalities and support in preparation of action plans, drainage and irrigation has increased by 69.6 percent, from 16,155 to 27,404 hectares, and 37,884 farming families have benefited from this improved access. Improved municipal processes include institutional culture shifts from reactive to proactive planning for irrigation and drainage, and municipalities have completed inventories of irrigation and drainage assets and registries of farmers’ service contract records. Taxes and tariffs are now being collected for these services. To ensure long-term sustainability, PLGP partner municipalities have obligated and approved nearly $40,000 in their 2020 budgets for maintenance of their irrigation and drainage services, directly impacting 66,816 households. Component 3 (Historic): Improve local government management and oversight of publicly owned utilities, in accordance with EU standards. Throughout the eight years of support in the water sector (2012–2019), PLGP assisted local governments and water utility (WU) supervisory boards in developing skills, defining roles, and building the knowledge needed to effectively manage and oversee jointly owned utility companies dealing with the array of water services including provision and waste treatment. Through PLGP’s support, the WUs improved the level of collections and debt recovery (by more than 20 percent in the first 12 months and more than 30 percent with Tirana Utility), increased the level of water supply coverage (by more than 8 percent new customer contracts), and increased metering levels (by more than 15 percent in the first 12 months for customer metering). Tirana Water Utility’s Five-Year Business Plan served as the basis for negotiating an ~$37 million Capital Investment Program approved by the European Bank for Reconstruction and Development. At the request of the Ministry of Infrastructure and Energy (MoIE), PLGP water experts supported the ministry to develop their first-ever National Approach and Methodology to Reduce Non-Revenue Water (NRW) in Albania to serve as the road map for future actions for the water utilities in Albania. The actions include imposing system-wide metering, reducing illegal connections, locating and fixing visual “Developing a national plan to reduce leaks, and reviewing large customer water use. From non-revenue water is of crucial January to June 2018, 2,737 new contracts were importance to the Ministry of registered across four WUs largely as a result of the Infrastructure and Energy to meet the legalization of illegal connections. This overall assistance water sector agenda and targets of the resulted in the allocation in the GoA 2020 and 2021 Prime Minister. We are extremely State Budgets of approximately ALL 738,718,000 ($6.8 appreciative that USAID and PLGP have million) for procurement of production and customer responded rapidly to our request for meters and relevant studies. In addition, the Agency of assistance and for the PLGP Water Water Supply and Sewerage in Albania oriented State Team’s high level of professionalism.” Budget funds to support investments aiming at 24-hour —Hantin Bonati, Deputy Minister of water (business plan forecasts), including all needed Infrastructure and Energy priority measures to support reduction of NRW in the remaining water utilities. Component 3A: Strengthen civic engagement to prevent/counter violent extremism (P/CVE). PLGP’s P/CVE activities had distinct but complementary goals: to reduce the likelihood of women becoming participants in, or vulnerable to, violent extremism (VE) activity and to increase women’s contributions to making communities more resilient to the VE risk. PLGP drafted the first localized P/CVE Mapping Assessments of its six partner municipalities, an approach recognized by the National CVE Coordinator as a best practice to be replicated in other hotspots. The results and findings of these mapping assessments supported PLGP’s work plan development with crucial information on the current situation in partner LGUs, key local institutions and actors, resources, socioeconomic challenges, and the presence and activities of other P/CVE interventions. PLGP developed and disseminated the first-ever P/CVE Guide for Local Leaders and a brochure titled “For

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) viii Informed, Engaged, and Secure Citizens” to 61 municipalities (through 21 targeted trainings and distribution through the National Countering Violent Extremism Coordination Center [CVE Center]). In collaboration with the CVE Center, PLGP advanced both publications, regarded as the premier documents for identifying local legal mechanisms and actors that should be active in P/CVE. PLGP’s work with the CVE Center supported its growth as a connector and bridge-builder. PLGP drafted the policy paper Leveraging Existing Structures and Mechanisms to Better Protect Citizens from Radicalization and Violent Extremism. This document provides an examination of the current legal framework as it relates to preventing violent extremism (PVE) and an overview of the weaknesses in present practices, and proposes measures to close existing gaps between the theory and implementation of P/CVE efforts, especially the establishment of a P/CVE referral mechanism in Albania. PLGP assisted with cross-border collaboration by conducting three cross-border workshops in cooperation with Albanian Municipalities of Pogradec, Librazhd, Dibra, and Bulqiza and the North Macedonian Communes of Strugë and Dibra e Madhe. For the first time, border municipalities and civil society organizations (CSOs) had the opportunity to share good practices and lessons learned and discuss the next steps for improved and sustainable cooperation among municipalities and CSOs. Component 3B: Women, peace, and security (WPS). PLGP built successful approaches to improving resiliency through initiatives and examples of how to embed WPS and PVE in concrete terms within the local governance/public administration reform discourse. PLGP supported municipalities to assume their responsibilities in gender-responsive and socially inclusive local governance by facilitating the use of important gender mainstreaming tools, such as the European Charter for Equality of Women and Men in Local Life. All six of PLGP’s WPS partner municipalities became signatories to the charter, bringing the total in Albania to 13. PLGP supported the effectiveness of the mandated LGU Gender Equality Officers (GEOs) with targeted capacity building and coaching based on needs assessments conducted in each municipality. To encourage the institutionalization, experts provided the GoA with a road map for operationalizing the GEO function, including creating the suite of human resource tools for formalizing this position within the civil service. PLGP built successful approaches to improving local economic development (LED; Component 4) by improving structures for communication and collaboration between the private sector and local officials. In Years 8 and 9, PLGP refocused this work on women’s opportunities to contribute to and benefit from LED. As a result of women’s input in local government support services and PLGP coaching and mentoring of municipal staff, local decision makers included incentives to support women and youth’s engagement in economic activities. These included tariff reductions for women (and youth) business startups ranging 20–50 percent for the first year that resulted in 11 new businesses owned by women and girls established in partner municipalities in 2020. In the same municipalities in Year 8, PLGP conducted Albania’s first Gender-Sensitive Value Chain Analyses (GSVCAs) through consultations involving 180 local stakeholders. In Year 9, through GSVCA interventions, PLGP developed concrete activities to improve the economic integration of women that included 1) targeted vocational training for women related to specific job opportunities, 2) mentorship opportunities, 3) workshops on employability and skills, 4) support to women-owned businesses, 5) policy recommendations to public and private sector decision makers on gender equality in the value chain(s), and 6) scalable lessons learned. Woman in Dibra, beneficiary of PLGP intervention on MAPs, harvesting Based on PLGP’s GSVCA reports and mallow flowers. working group processes, PLGP launched a

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) ix Women’s Small Business Program in Kamza, that resulted in three new businesses, ten expanded existing businesses, and nine new jobs created. PLPG launched a Medicinal and Aromatic Plants (MAPs) Program that resulted in improved working and living conditions for 45 women and their families in Bulqiza, Cerrik, and Dibra and an average of $2,000–$3,000 increase in profit as a result of partnership with PLGP. Women are being paid directly through bank transfers for the first time—no longer through male heads of household—giving women farmers additional power and agency. PLGP’s support to the Traditional Food and Handicrafts Program (made up of 20 women in Maqellare) is projected to result in a 35–55 percent increase in the selling price of their jufka; and a 40–60 percent increase in overall production due to labeling, improved standards, and drying equipment provided by PLGP (which will increase their overall income by $35,000–40,000). PLGP assistance also led to employing an additional five women within the facility, and supporting 10 additional artisans working from their homes. The Tushemisht “Miket e Ollgës” women’s group has started supplying local restaurants with traditional foods and is discussing contracts with traditional food shops and restaurants in Tirana. These steps all culminated in a 20–55 percent increase in prices and a more than 30 percent increase in production outputs. Component 4 (Historic): Strengthen the capabilities of the GoA and local governments to plan and manage urban and regional growth. Over an eight- year period (2012–2019), PLGP was one of the main actors and drivers in the reform of the territorial planning in Albania in partnership with local and national authorities. PLGP provided continuous expertise to the Ministry of Urban Development and the National Territorial Planning Authority (NTPA) in drafting and approving the National General Territory Plan and the Territory Planning Law; the Inclusive Planning Manual for Citizens and Authorities, 2013; and the Manual on Territorial Planning and Development, 2016. The project prepared a policy brief on land development and financial instruments of land development, 2015, and the Policy for Territorial Planning and Development for 2014–2020. PLGP prepared Albania’s first five GLTPs that address the environmental, social, economic, demographic, and infrastructural issues municipalities will face in the coming years. These plans served as a model for GLTPs prepared in the other 55 municipalities across Albania. As a result of PLGP’s work in preparing GLTPs and Local Detailed Plans, five partner municipalities have been able to generate significant own-source revenues through building permits (see chart) and leverage 4,121,423,017 Albanian Leks (ALL; $37,467,481) in funding from the Albanian Regional Development Fund from 2015–2018 for projects focused on infrastructure and social services. Component 4: Promote economic development planning and implementation. The 2015 Law on Local Self- Governance entrusted the newly consolidated municipalities with the exclusive authority and responsibility for LED. A key aspect and expected outcome of the territorial planning process was the promotion of LED. PLGP focused on this aspect in Years 7 and 8 by supporting municipalities to increase institutional capacities in developing Local Detailed Plans (LDPs) and applying Financial Instruments of Land The “Doing Business” guide prepared for the Development (FILDs) as a way of promoting LED. LED partner municipality of Fier.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) x assessments that PLGP conducted generated key recommendations to strengthen and reorganize the economic development function in each municipality. PLGP established a locally sustained mechanism for multi-sectoral collaboration in economic development through economic development advisory councils in Berat, Elbasan, Fier, Kuçova, and Lushnja to increase institutional capacities and structures that bring municipal authorities closer to the business community. PLGP prepared five “Doing Business” guides for partner municipalities to communicate their business enabling environment to potential investors based on US best practices. PLGP trained local officials in preparing LDPs and utilizing FILDs in collaboration with the NTPA. LDPs have already been applied to prepare fundable projects to leverage private sector investment, such as in Fier where construction of a livestock market began, and in Berat where an irrigation system has been designed and is ready for execution. In municipalities where there are large employers, PLGP garnered their support for LED—for example, by creating job opportunities in the metallurgical sector through AlbChrome for 27 students of the Ali Myftiu Vocational School in Elbasan.

Students from Ali Myftiu Vocational School during practice hours in AlbChrome. ERALD LAMJA FOR USAID.

The following table shows some of PLGP’s most important results. The project’s Performance Monitoring Plan with all indicators over nine years can be found in Annex 3.

PLGP LIFE-OF-PROJECT KEY INDICATOR RESULTS

18 partner municipalities or 68% of total population received direct support through PLGP technical assistance

All 61 municipalities received PLGP support

$81.3 million (or 59%) increase in local government grants and revenues through PLGP support for improved policies and strengthened capacities for local finances (over the life of the project, 2020 compared to 2012), including:

• $66.3 million in grant monies transferred from the Ministry of Finance & Economy to all local governments in Albania through the PLGP-supported LGFL

• $15 million in new monies generated through PLGP’s efforts to build the human and ICT capacities for own-source revenue administration in partner municipalities.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) xi PLGP LIFE-OF-PROJECT KEY INDICATOR RESULTS

438 new jobs created in preschool education

52,000 children benefited from improved access and quality of preschool education

66 laws, by-laws, or government decisions drafted, proposed, or adopted affecting and promoting decentralization

9 legal instruments drafted, proposed, or adopted designed to promote gender equality or non- discrimination against women or girls

12 territory planning, and development tools prepared in support of strengthening local planning capacities

5,044 F; 5,467 M 10,521 people participated in all PLGP events

• people participated in more than one event 3,750 • 6,771 people participated in one event 3,215 F; 3,553 M

845 F; 869 M 1,714 central and local government officials trained on municipal management and operations skills (Y1–Y8)

211 F; 369 M 579 municipal and water utility staff trained on water issues

295 F; 377 M 672 people trained on urban planning issues

• 1,050 people participated in public hearing sessions on urban planning 366 F; 684 M

177 F; 315 M 492 Local Councilors trained on their roles and responsibilities

252 F; 290 M 542 representatives of civil society trained on various civic engagement topics

260 F; 173 M 433 youth trained in social leadership skills

406 F; 103 M 509 people trained in gender equality and female empowerment

340 F; 322 M 662 people trained on P/CVE issues

Lessons Learned. PLGP’s collaborating, learning, and adapting approach in the face of a changing decentralization situation resulted in many lessons learned. The project continually documented these lessons at the local level, gleaned from the application of policy, or observing the consequences of its absence, and fed this evidence to the central government. PLGP offered subsequent technical assistance, expert studies, comparative case studies, and quantitative analyses to improve the legal framework. Programmatic decisions were always informed through learning mechanisms, for example, “pause and reflect” exercises to focus on lessons learned and clarify opportunities during every annual work planning process. The project held weekly meetings with USAID and regular meetings with key GoA stakeholders, especially new partners (e.g., the CVE

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) xii Center) and high-level decision makers (e.g., the Minister of State for Local Issues). PLGP developed robust communication activities/products that ensured stakeholders were always abreast of and could react to the project’s latest activities and maintained a continual local-level presence to ensure mayors and other local partners had ample opportunity to provide feedback to the team and request more pointed assistance, as needed. Among the lessons learned, PLGP distilled management lessons that enabled the project to endure through the evolution of the decentralization landscape in Albania. Among these: 1) Adopting and maintaining a flexible design and adaptable implementation process was essential to PLGP’s overall success on its myriad objectives; 2) Maintaining the multi-pronged design throughout the life of the project enhanced the impact of efforts toward any individual objective; and 3) Cultivating trust with local partners through clearly articulated packages of assistance allowed for ample opportunity to make them the protagonists. Because of these management approaches, technical lessons to which PLGP reacted were many (see Section 4). Among the most important was Effort invested in brokering broad agreement on the government’s vision for advancing the decentralization process made it possible for PLGP subsequently to prioritize its assistance and remain in sync with the GoA throughout the life of the project. Future Support for Decentralization. Much work remains in implementing decentralization actions set forth in the updated National Strategy for Decentralization. The main weaknesses to further decentralization progress become clear when examining the challenges that remain at the local level. These include (despite many bright spots and success stories) weak local government capacity, ad hoc consultative mechanisms requiring institutionalization, nascent civic engagement, vulnerable LED, sporadic service delivery, spotty or poorly implemented territorial planning, restricted local borrowing and tax sharing, anemic property tax collection, inequality of women and men in daily life, and unconsolidated efforts to build community resiliency through WPS and PVE initiatives. PLGP included in Section 6 recommendations in the areas of fiscal decentralization, territorial planning, LED, local government service delivery, community resiliency, and donor coordination, with a special note on the waning enthusiasm of both the GoA and the donor community for supporting decentralization initiatives.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) xiii 1.0 INTRODUCTION

Tetra Tech is pleased to present the Completion Report for the Planning and Local Governance Project (PLGP) to the United States Agency for International Development (USAID) in Albania, covering the period from January 2012 to September 2020. PLGP provided technical assistance and training to the Government of Albania (GoA), local government institutions, and civil society and private sector partners to implement decentralization legislation, policies, and reforms and to improve their communities’ inclusivity and resiliency. PLGP provided assistance in four components at contract award, referred to in this report as the “historic” components. Because of significant progress in decentralization, coupled with more pressing needs emerging in the PLGP municipalities, USAID asked PLGP and the GoA to shift focus to adjacent objectives over time. The project and this report are organized by the following comprehensive set of components: • Component 1 (Historic): Support the GoA’s work to implement effective government decentralization policies and legislation • Component 1: Support greater predictability, transparency, and revenue potential of local government finances2 • Component 2: Improve municipal management systems for delivery of key local services • Component 3 (Historic): Improve local government management and oversight of publicly owned utilities, in accordance with European Union (EU) standards • Component 3A and B: Strengthen civic engagement to prevent/counter violent extremism (and women, peace, and security) • Component 4 (Historic): Strengthen the capabilities of the GoA and local governments to plan and manage urban and regional growth • Component 4: Promote economic development planning and implementation These component changes came at the behest of USAID/Albania through extensions to the contract in 2015 following the GoA’s adoption of territorial reform, in 2017 to address the challenges of violent extremism (VE) that had infiltrated several communities and laid bare the continued lack of services to some vulnerable people, and in 2018 to recognize that community resilience derives in large part from the economic empowerment of women. PLGP (Contract No. AID-182-C-12-00001) contributed to USAID/Albania’s Development Objective (DO) #1, “Strengthened rule of law and improved governance” in the USAID/Albania Country Development Cooperation Strategy: 2011– 2015. DO #1 strengthens democratic institutions in the country, with the goal of meeting key criteria for Albania’s accession to the EU. PLGP is pleased to report that most Year 1–9 Work Plan activities were completed as planned, with few deviations, and the project met or exceeded all PLGP Performance Monitoring Plan (PMP) targets for the performance period.

1.1 PURPOSE OF THE COMPLETION REPORT PLGP’s Completion Report tells the story of local governance in Albania over the last decade through the achievements and lessons learned of the project’s many stakeholders across sectors. At the local level, partners included the municipalities of Berat, Bulqiza, Cerrik, Dibra, Durres, Elbasan, Fier, Kamza, Korca, Kucova, Librazhd, Lushnja, Patos, Pogradec, Tirana, Saranda, Vora, and Vlora (see map on the following page), and the many groups PLGP engaged within those municipalities,

2 USAID assigned this component name with PLGP contract modification 9 in September 2017. Although the sub- components did not change, it is worth mentioning that this is an updated version of Component 2 (Historic): Improve the efficiency and management of local government operations.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 1 including Citizen Advisory Panels (CAPs), Youth Boards, private sector employers, women entrepreneurs, and police. At the national level, PLGP provided significant support and technical assistance to prepare for and implement decentralization reforms to ministries and agencies including the Ministry of Finance, Ministry of State for Local Issues (MoSLI), Ministry of Urban Development (MoUD), National Territorial Planning Agency (NTPA), and the Agency for the Implementation of Territorial Reform. Following the national elections of June 2017, PLGP pivoted to support the newly restructured institutions, including the Ministry of Interior (MoI) that absorbed the former MoSLI’s portfolio; the new Ministry of Finance and Economy (MoFE); the Ministry of Infrastructure and Energy (MoIE) that had subsumed the MoUD; the Agency for Support of Local Self- Government (ASLG), a reimagined Agency for the Implementation of Territorial Reform; and the newly created National Countering Violent Extremism Coordination Center (CVE Center). Using the technical components as the organizing framework for the report, Tetra Tech tells the stories of progress generated by these institutions, their constituents, and the system of local governance they support. The evolution of the components themselves reveals a spectrum of transformation in local governance over the life of the project, from sophisticated local zoning and planning initiatives to concerted measures to prevent/counter violent extremism (P/CVE), to focus on women, peace, and security (WPS) to build community resiliency and sustainability. Through its assistance and capacity building, PLGP brought these government services proximate to and rendered them responsive to citizens, increased their funding through fiscal decentralization, and built social cohesion and community resiliency by reducing social exclusion and empowering women and girls in productive public roles.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 2 1.2 STRUCTURE OF THE COMPLETION REPORT The Completion Report responds to PLGP’s contract requirements with USAID and aims to provide a broader audience in Albania and beyond with an overview of the legacy of the project. Following this Introduction, Section 2 provides an overview of the context for implementation over nearly a decade. Section 3 presents the achievements and highlights by technical component. Section 4 addresses challenges and changes to work plans. Section 5 summarizes lessons learned through analysis by the implementers and ideas of the stakeholders. Section 6 presents suggestions for future programming and sustainability. The Executive Summary encapsulates these. Annexes include lists of all reports and products produced under the contract (Annex 1), the PLGP Success Stories for Years 1–9 (Annex 2), and a report on final performance indicator results (Annex 3).

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 3 2.0 CONTEXT

2.1 THE DECENTRALIZATION AGENDA IN 2012 When PLGP was launched in January of 2012, Albania was facing unprecedented opportunities to advance decentralization and strengthen a system of local governance that met European standards and practices for entry into the EU. A signatory to the European Charter on Local Government, Albania had committed itself to decentralization. Politicians and regular citizens were increasingly recognizing that stronger and more effective local governments were the key to improving the delivery of essential public services. Momentum for decentralization grew through increased political will, citizen demands for better services, and assistance for the reforms offered by the EU and other donors. Despite these openings, challenges to decentralization arose: Given the political environment in the country, polarization of political parties inhibited thoughtful discussion and consideration of public policies affecting local government and decentralization. Territorial reform linked to decentralization initiatives would result in a significant reduction in the number of local government units (LGUs), creating a controversial loss of political power for many local-level officials and a corresponding diminishment of opportunities for patronage. Since the 1913 Canon of Civil Administration of Albania, then under the Austro-Hungarian empire, Albania had taken steps to decentralize political, administrative, and fiscal processes. By the time the government organized the first local elections, in 1992, the country was neatly divided into 12 prefectures, 36 districts, and 357 communes and municipalities. Still, when PLGP began in 2012, Albania had not yet implemented the key elements of decentralization of government and financial powers to subnational levels. Key building blocks were lacking, including a National Decentralization Strategy, Territorial Administrative Reform (TAR), a new Organic Law, formalized intergovernmental consultation and communication, and the legal framework for local government finances. Entrenched interests and inertia led to continued governance through small and ineffective units of local government instead of progress on territorial administrative reform. Most troubling was the absence of an active strategy to guide decentralization and local government reform. The last decentralization strategy was adopted in 1999 with USAID support, and while a strategy was drafted in 2010, no consultations occurred to gain buy-in from its constituents, nor was the strategy adopted by the GoA. Without a clear road map, reforms had stalled, the legal framework remained inconsistent, and the already-weak local finances had become unpredictable and unstable, undermining local governments’ ability to plan and deliver services to citizens. A worrisome trend was the decline of intergovernmental transfers. Economic conditions hindered any efforts to increase the size of the transfers from the GoA to local governments. Local governments were challenged to produce significant increases in own-source revenues (OSRs). Specific challenges in revenue generation included problems in collecting the small business tax, particularly given the limit on tax rates; difficulty in establishing an efficient property tax system, with serious issues in regard to the coordinated sharing of information between central and local authorities; and central government restrictions on local borrowing, limiting the ability of local governments to borrow the funds they needed to invest in necessary infrastructure and other capital improvements. As a result, the delivery of local services was impaired in key sectors, including regional solid waste and water and wastewater services by jointly owned utility companies. Had financing been available for services, their quality would have suffered because of weak capacity at the local level. The GoA at any level was not prepared to meet EU standards and citizen’s expectations for better services delivery. According to citizens, deficient services included water supply and sewerage, solid waste collection, rural road maintenance, public transportation, irrigation and drainage, school maintenance, and preschool education. As decentralization reforms took shape, these services became increasingly the responsibility of consolidated local governments, fused through the TAR, compounding the capacity challenge.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 4 Following TAR, almost no local governments developed (or inherited) a territorial plan to guide development and investments within their jurisdiction, which would help prioritize services for investment and improvement. In 2012, there was a growing awareness of the importance of citizen participation in local decision making. Yet citizen boards, designed to encourage civic engagement, were neither well-structured nor representative of the local population. Youth, women, and minorities, such as Albania’s Ethiopian and Roma communities, faced particular difficulties in having their voices heard. As local governments began to grasp and articulate the magnitude of these challenges, and struggled to do their best without sufficient support for capacity building or resources, their inability to speak with a unified voice hampered 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, weakens the voice of local government in advocating for their interests with the central government. This division among local government associations still persists in 2020.

2.2 SIGNIFICANT PROGRESS DESPITE HURDLES: LOCAL GOVERNANCE IN 2020 Since the design and launch of PLGP, the local governance-enabling environment has changed dramatically. Following the June 2013 parliamentary elections, the GoA took steps to advance the decentralization process and strengthen local governance. A key champion emerged with Prime Minister Edi Rama’s appointment in September 2013 of a new Minister of State for Local Issues and the creation of the MoUD, which championed capacity building for local governments. While the MoSLI had a small staff, the minister played a key role in TAR. The MoUD was entrusted with responsibilities for territorial planning, managing growth and development, and housing. PLGP provided technical assistance to both MoSLI and MoUD and made available extensive expertise (Albanian and international) in areas including planning, decentralization, and legal framework. In July 2014, Albania’s Parliament approved the law “On the Administrative and Territorial Division of Local Government Units in the Republic of Albania.” With the enactment of TAR, the number of local governments in Albania was reduced from 373 to 61. The local elections of June 2015 consolidated the political leadership of these 61 new municipalities with the selection of mayors and municipal councils. It is generally agreed that 2015 saw the greatest change to Albania’s system of local government since the democratic transition of 1992. To reinforce this progress, USAID and PLGP facilitated the GoA in adopting and implementing decentralization legislation, policies, and reforms. These policy reforms were sometimes impeded in the last decade by political partisanship and the absence of consistent communication between officials of local governments and central government institutions. This shortcoming was recognized and partially rectified with the creation of Central/Local Government Consultative Council (CC), constituted in 2017 with PLGP support. PLGP was the lead provider of technical assistance to the Minister of State for Local Issues in drafting a National Crosscutting Strategy for Decentralization and Local Governance. After a year-long consultation process, the strategy (the first since 1999) was adopted by the Council of Ministers in July 2015. The policy goals and objectives of the strategy are fully aligned with the overall vision and goals of the National Strategy for Development and Integration 2015–2020, which addresses the social and economic development of Albania and is guiding the country on the path to European integration. During 2019, PLGP supported the process of updating and extending the scope of the Action Plan of the Decentralization Strategy, broadening sectoral decentralization, improving the intergovernmental finance system, and extending its timeline to 2022. Beginning in 2014, PLGP, in consultation with local officials, provided the GoA with the assistance necessary to prepare a new law “On the Organization and Functioning of Local Government” (Organic Law). The law, enacted by Parliament in December 2015, governs the roles and

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 5 responsibilities of LGUs and harmonizes Albania’s local government legal framework with TAR. The elimination of “shared functions” under the new Organic Law lessened through the delineation of “own” functions and “delegated” functions. Following the passage of the law, new responsibilities in preschool education, fire protection, environment, forestry, and irrigation were devolved to municipalities. To pay for these new functions, the national government added about ALL 6 billion, or $51.4M, into the transfer system. As a result, local government revenue as a share of total public revenue increased from 9.8 to 11.8 percent between 2015 and 2016, and as a share of gross domestic product (GDP) from 2.6 to 3.2 percent. A major milestone in Albania’s progress toward decentralization was achieved in April 2017 with Parliament’s approval of the country’s first-ever comprehensive Law on Local Government Finances (LGFL). PLGP offered international expert technical assistance to kick-start the drafting process for the law in 2015, which provides a more logical and efficient framework for local taxing powers, intergovernmental transfers, local borrowing, public finance management (PFM), and intergovernmental dialogue. With the approval of this law, local government revenues for 2017 increased substantially over 2016 revenues. The law stabilized and increased municipal revenues by i) anchoring the size of the Unconditional Grant at 1 percent of GDP, ii) giving municipalities a 2 percent share of the Personal Income Tax (PIT) generated on their territories, and iii) expanding their share of the Vehicle Tax from 18 percent to 25 percent. While some elements of the LGFL have not yet been implemented, the law addresses major weaknesses of the intergovernmental finance system in Albania, such as underfunding and instability of the Unconditional Grant; the unpredictability of conditional grants; absence of clear rules and responsibilities regarding the definition and amendment of local revenue sources; lack of PIT sharing; insufficient pool of shared taxes; and inefficient management of scarce public financial resources, and the management of fiscal distress and insolvency. Remaining priorities for the fiscal aspects of decentralization are clear. In 2017, the GoA adopted a property tax reform, moving from an area-based to a semi-market value-based system of taxing immovable property. This reform was accompanied by efforts to create a fiscal cadaster at the national level, which has not been completed because local governments were asked to make and contribute their own territorial databases. There have also been no improvements since the passage of the LGFL as regards local governments’ access borrowing. The MoFE, forced by high levels of public debt, continues to adopt a very rigid policy to allow local governments to access debt. While local governments are legally allowed to borrow, the MoFE may decide to limit the annual disbursements of the individual loans contracted by local governments, leading to concerns of subjectivity in the decision making. It is critical that the GoA adopts a more consistent approach to local borrowing as it is a key instrument to finance long-term capital investments. Local governance has improved dramatically. Municipalities have the experience of the first mandate to better understand their new functions and have more revenues to provide services through more transparent, equitable transfers. The GoA’s progress has been so significant that the central government is in danger of viewing the decentralization process as complete—with functions and commensurate resources formally transferred. PLGP has recently witnessed backsliding and an apparent lessening of the GoA’s commitment to decentralization. Among the setbacks were the Prime Minister’s decision in September 2017 to eliminate the position of Minister of State for Local Issues and to dissolve the MoUD. The MoI, specifically the Deputy Minister, is now tasked with leading decentralization efforts as one of many items in her portfolio. The ASLG is charged to link local governments with the MoI (in charge of decentralization and local governance after the abolishment of the MoSLI in 2017) and serve as the Technical Secretariat of the Consultative Council between Central and Local Governments. In 2020, the GoA is considering further reorganizations to consolidate and streamline the MoI’s competences over local governance and decentralization policies, such as reassigning local government finance policies to MoI from MoFE. Compounding this administrative downgrading, decentralization has been superseded as a GoA priority by two pressing issues: the recovery from the November 2019 earthquake that resulted in significant infrastructure damage and the response to the COVID-19 virus pandemic.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 6 Local governments need continued support from the central government. CAPs and other forums for civic engagement are helping to improve the efficiency, transparency, and accountability of local government operations. The Tax Administration Information Systems (TAIS) and Finance Administration Information Systems (FAIS) are helping local governments to better manage their resources while also reducing opportunities for corruption. One-stop shops (OSSs) are allowing citizens to better access administrative services. Particular attention must be given to providing services to the citizens of the mostly rural Administrative Units (former communes). The provision of water and wastewater services must be a top priority. As required by the Organic Law, the GoA must adopt National Minimum Standards for local services. The standards need to strike a balance between local autonomy and centrally set enforceable, and achievable expectations for services.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 7 3.0 ACHIEVEMENTS BY COMPONENT

3.1 HIGHLIGHTS AND ACHIEVEMENTS This section presents the project’s highlights, the result of PLGP’s comprehensive approach, and the effective balance between the complementary interventions: legislative support, institutional strengthening, public service delivery, citizen empowerment, and increase of local OSRs. PLGP maximized the effectiveness of its partner institutions by building strong relationships and trust brokered through consistent, regular consultations; embedded staff and expert advisors; and coordinated work plans, among other tools. These relationships and tools made it easier to sync PLGP’s various stakeholders like 1) national-level ministers/ministries and agencies and local-level partner mayors and municipalities; and 2) international donors, local development agencies, and USAID implementing partners.

3.1.1 COMPONENT 1 (HISTORIC): SUPPORT THE GOA’S WORK TO IMPLEMENT EFFECTIVE GOVERNMENT DECENTRALIZATION POLICIES AND LEGISLATION Initiated dialogue and built consensus on local government reform To advance local government reform and support the GoA’s effort to implement effective government decentralization policies and legislation, in 2012, PLGP initiated and facilitated a policy dialogue with key domestic and international stakeholders to reach bipartisan consensus on key issues related to decentralization in Albania. This inclusive policy dialogue reenergized the discourse and built political and donor support for decentralization reform. For the first time in more than a decade, the need for advancing a decentralization strategy was discussed with broad participation of relevant key stakeholders: state institutions and agencies, donor organizations, LGU associations, think tanks, and other relevant international and local experts. Contributed to the building blocks for effective local governance in Albania The decentralization process in Albania had been hindered historically by a lack of vision, clear strategies, defined road maps, and political will. PLGP developed numerous policy papers, with international, regional, and Albanian experts, including key recommendations to reverse this trend toward disparate and disorganized decentralization. PLGP presented these policy papers to the newly elected government after the June 2013 elections and garnered US Ambassador Arvizu giving opening remarks at their embrace of the recommendations. the Conference on Fiscal Decentralization. PLGP was able to lobby successfully the new Socialist Party (SP)-led government through a number of key white papers including the Development of a National Decentralization and Local Governance Strategy prepared by PLGP in July 2013 and immediately embraced by the government as part of their action plan for decentralization and local governance. PLGP’s White Paper on Fiscal Decentralization contained an in- depth analysis of existing legal frameworks on fiscal PLGP Chief of Party Peter Clavelle showing a copy of the White Paper on Fiscal decentralization, its current state of affairs in Albania, the Decentralization in Albania at the Conference on administrative territorial structures, the expenditure and Fiscal Decentralization. revenue assignments, the intergovernmental transfers and local borrowing, and concluding recommendations.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 8 With the establishment of the new GoA in September 2013, PLGP developed a common agenda with the newly created MoSLI, focusing on developing a National Crosscutting Decentralization and Local Governance Strategy (NCDLGS) and a new Law on Local Self-Government (LSGL). The Prime Minister of Albania created a working group and assigned PLGP as a methodological leader of these processes. At the same time, the Albanian Parliament requested that PLGP experts advise the ad hoc Parliamentary Commission on TAR. Ultimately, the Ministry of Finance requested that PLGP lead the efforts for the upcoming fiscal decentralization reform by developing a New Formula for the Allocation of the Unconditional Grant to Local Governments and drafting Albania’s first-ever comprehensive LGFL. PLGP has been successful in advocating to the GoA to coordinate political and administrative decentralization reforms with fiscal decentralization reform. The review of the fiscal decentralization framework was considered the most important component of the NCDLGS. These “building blocks,” each representing a milestone in the decentralization process, include: • The National Crosscutting Decentralization and Local Governance Strategy was enacted by the GoA in July of 2015. Prepared with the lead support of PLGP, the strategy provided a clear road map for decentralization reform, which was missing since 1999. The strategy has had a huge role in presenting the vision for strengthening local democracy, advancing the decentralization process, and guiding and prioritizing decentralization actions through 2020. The policy goals and objectives of the strategy were fully aligned with the overall vision and goals of the National Strategy for Development and Integration 2015–2020 for the social and economic development and Albanian EU integration. PLGP is pleased to have supported the Cover pages of the “National Crosscutting Strategy for Decentralization and Local 2019 review of the NCDSLG Action Plan and Governance” publication and other PLGP policy extension of the strategy through 2022. papers.

• In July 2014 the adoption of the Law on Territorial Administrative Reform was adopted, reducing the number of local governments from 373 fragmented communes and municipalities to just 61 municipalities, providing an unprecedented opportunity to strengthen local governance and enhance the efficiency, quality, and access to local public services. PLGP has been cautious not to interfere in the delicate matter of the redesign of the administrative map of Albania, as this is a sensitive political issue. Instead, it has advocated that a territorial and administrative reform was necessary, and it should be developed through a consensual manner between the two major political parties. • The Law on Local Self-Government was enacted by Parliament in December 2015. Prepared with the lead support of PLGP, the LSGL harmonized Albania’s local government legal framework with TAR, further advanced decentralization by establishing expanded rights for the newly consolidated local governments, and entrusted them with both the responsibility and the resources to serve their citizens better. The law strengthens provisions for transparency and accountability of Cover page of Albania’s Official Journal local elected officials and municipal administration, incorporating the Law on Local Self-Governance strengthens the role of the mayor regarding municipal management, and clarifies the role of the municipal council in monitoring and controlling. Following the passage of the law, new

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 9 responsibilities in preschool education, fire protection, the environment, forestry, and irrigation were devolved to municipalities, together with the respective financial resources from the national government.

3.1.2 COMPONENT 1: SUPPORT GREATER PREDICTABILITY, TRANSPARENCY, AND REVENUE POTENTIAL OF LOCAL GOVERNMENT FINANCES From 2017 onward, PLGP focused its efforts to complete the legal framework and strengthen the capacities of the national and local government level to implement decentralization reforms and increase local government resources. PLGP worked to increase LGUs’ revenues, stabilize intergovernmental transfers, and ease access to alternative financing and local borrowing. Advanced fiscal decentralization PLGP understood that decentralization in Albania could not be successfully achieved without an accompanying decentralization of fiscal allocations. Local governments were increasingly empowered to carry out decentralized functions, but they effectively could not without adequate financial resources and the authority to spend those resources to meet local needs and priorities. PLGP has made substantive contributions to fiscal decentralization efforts by helping to craft legislation and providing timely, accurate financial information to support evidence-based decision making. The key achievements in these areas include: • The New Formula for the Allocation of Unconditional Grants to Local Governments (see chart) was adopted by Parliament in October 2015, with the approval of the Budget Law for Year 2016. The Unconditional Grant constitutes the single-most important source of revenue for Albania’s local governments, constituting more than 50 percent of

the budgets for more than 70 percent of the newly constituted and larger local governments. The new territorial division required the amendment of the existing formula for the allocation of the Unconditional Grant whose criteria were no longer clear or clearly applied. The new formula developed by the Ministry of Finance, with PLGP experts, ensures equitable, transparent, and predictable distribution of transfers to the newly created municipalities. Based on clear, objective, and verifiable variables and indicators, the new formula eliminates the opportunities for discrimination of specific local governments in allocating funds from the national government.

“By increasing local government revenues from the Unconditional Grant and shared taxes by 37%, the Law on Local Self-Government Finance provides an unprecedented opportunity for local governments to improve services, increase capital investments, and promote local economic development. I want to recognize and appreciate USAID’s leadership in promoting and pushing forward the process of decentralization and the autonomy of democratically elected local governments in Albania.” —Arben Ahmetaj, Minister of Finance and Economy

• The Law on Local Self-Government Finances was adopted by Parliament in April 2017. The approval of the first-ever LGFL constitutes a monumental achievement and a major milestone in Albania’s progress toward decentralization. The LGFL has been promised by successive governments over the past 10 to 15 years. The law, drafted by PLGP, provides a more logical and efficient framework for local government finance. It increases local

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 10 governments’ financial autonomy while strengthening rules for the adequate, transparent, and accountable spending of local public finances. As a result of the new provisions of the LGFL, in 2020 local government revenues from the Unconditional Grant have increased by $58 million (or 45 percent) compared to the historical average and 42 percent compared to 2016 (the year before the adoption of LGFL). The LGFL has helped address the historical underfunding and structural weaknesses of the intergovernmental finance system and introduces a number of internationally recognized best practices in municipal finance legislation. The LGFL was developed after more than two years of multi-stakeholder consultations, involving more than eight regional roundtables and national and international conferences, with the participation of over 250 national and local policymakers, experts, practitioners, representatives of civil society, think tanks, the donor community, and international organizations such as the International Monetary Fund and the World Bank.

“I thank PLGP for their enormous contribution to the drafting, consultation and finalization of the Law on Local Self-Government Finances. It was the most inclusive and comprehensive process of drafting a law ever undertaken in Albania. It is a clear example that should be followed in every law preparation process.” —Mr. Erjon Luci, Deputy Minister of Finance and Head of the LGFL Working Group

PLGP supported the MoFE in its premier publication of the Official Annual Report on Local Government Finance Indicators in Fiscal Year 2019. This was a key milestone in government transparency and supported access to information, giving citizens a better understanding of their municipality’s financial management and facilitating increased participation in local, informed decision making. In 2020 the MoFE published its second report, with the support of the Swiss Secretariat for Economic Affairs (SECO)-funded “Financat Lokale” Project, and has committed to continued publication of this crucial, informative report on an annual basis. • Preschool education finance reform was an obvious priority when considering that PLGP wanted to accompany the GoA in its fiscal reform while also promoting activities to empower women in the economy. Preschool education finance reform was enacted in January 2019, after more than a year of discussions, consultations, and successful cooperation between PLGP and its GoA partners. The MoFE and the Ministry of Education, Sports, and Youth developed the preschool education finance reform that was eventually adopted by the GoA. As a result of this assistance the GoA increased the overall level of funding by 9.1 percent, or ALL 327 million ($3 million), when compared to 2018. In addition, the GoA added $300,000 in the 2019 budget law and $135,000 in the 2020 budget law to hire at least 400 new preschool teachers and 32 new preschool support employees to be allocated among 36 municipalities, reducing the maximum preschool class size from 26 to 18 preschool pupils per teacher (see figure). As a result of this program, more than 52,000 preschool-aged children in Albania (71 percent of the total) will benefit from more appropriate class sizes, a key precondition for improving accessibility and quality of preschools. As a result of the preschool education system finance reform initiated and supported by PLGP, the World Bank approved $10 million in financing for the GoA to enhance gender equality in

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 11 access to economic opportunities. Some actions that the government has already undertaken in this program include: – Increasing incentives for women with children to join the labor market by reducing the student-teacher ratio in preschools in several municipalities, which will raise the quality of preschool; and – Increasing the gender-responsive budgeting programs that enable the policy program to be adjusted to reflect women’s evolving role in the economy. Reinforced dialogue on local government reform An open and inclusive dialogue between the different levels of government is key to improving both service delivery and the efficiency of the central and local public administrations. Under such auspices, the GoA, Collage of pictures taken during the Consultative with the lead support of the PLGP and the Council of Council meetings. Europe, established the Consultative Council between the Central and Local Governments in January 2017, marking a major milestone in Albania’s progress toward ensuring a sustainable dialogue on effective decentralization policies and legislation. The CC has become a key and indispensable institution in the law-making process in Albania, requiring all policies and legislation that impacts local governments to be consulted with local governments in an open platform, bringing together both ministries and local governments. The CC also has played a key role in the finalization of the LGFL.

3.1.3 COMPONENT 2: IMPROVE MUNICIPAL MANAGEMENT SYSTEMS FOR DELIVERY OF KEY LOCAL SERVICES Over the years, PLGP worked to improve and foster the capacity of local governments to serve their citizens better and to deliver quality services. Grounded in the belief that improved municipal management—institutional strengthening—leads to more empowered local governance, PLGP provided information and communications technology (ICT) tools, technical assistance, and on-the- job training to staff in partner municipalities to address management and governance issues. PLGP gave special attention to address systemic weaknesses in local tax collection, strengthen financial management, and ensure Table 3-1. Own-Source Revenue (in Millions of ALL) the transparent, accountable, and sustainable OSR in 2019 when OSR prior Increase Municipality PLGP/TAIS support use of local financial resources. PLGP’s to TAIS in % assistance focused on building and refining completed capacities related to OSR generation Berat 284 322 13% (including fiscal package and budget Elbasan 582 811 39% preparation), property tax administration Fier 505 762 51% and collection (including the launching of tax Kamza 413 828 100% awareness campaigns), internal audit and Kucova 103 137 33% Lushnja 310 396 28% control, and the use of ICT tools to improve Patos 182 218 20% municipality financial management. Saranda 244 402 65% Strengthened local government Vlora 473 698 47% capacity and improved tax and Vora 271 392 45% financial administration Total: 3,368 4,965 47%

Following decentralization, local governments faced significant challenges to increase their OSRs. PLGP conducted tailored training on local tax administration with partner municipalities and provided strategies to improve tax

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 12 collection, transparency, and communication with citizens. In addition, PLGP organized regional peer-based exchanges of knowledge through roundtables and study tours. These opportunities increased municipal staff capacity on topics of tax administration and collection, budgeting, and the preparation of fiscal packages. Finally, PLGP developed and published a Municipal Guide to Local Taxes and Fees and Municipal Guide to Local Budgets, providing a sustainable reference material to secure transparency to taxpayers. PLGP provided capacity building programs on local PFM, empowering local governments to complete multi-annual budgeting and internal audits and ensuring that the gains made were utilized appropriately and securely for the long-term good of citizens. To expand municipal tax bases and increase revenues, PLGP facilitated the development and implementation of Action Plans on Improving Property Tax Administration. PLGP also bolstered staff capacity to raise awareness in their communities of tax issues. These campaigns clarified tax responsibilities of businesses and families and encouraged greater compliance with tax authorities. These measures, when taken as a whole, resulted in an increase in OSRs of 47 percent from the point of implementation to project end, as compared to an increase of only 20 percent in non- partner municipalities (see Table 3-1).

Success Story 1. Vora’s Own-Source Revenues Support Improved Local Services

For two consecutive years, the 12 partner municipalities assisted by PLGP increased their revenues by more than 30 percent. As a partner of USAID’s PLGP, the Municipality of Vora has participated in many activities to build municipal staff capacity. Staff have improved the collection of OSR from local taxes and fees, installed and implemented the USAID- funded TAIS, and improved service delivery. Vora is among the three municipalities with the best performance in increasing OSR from local taxes and fees. Indeed, their performance has translated into increasing collections as shown in the chart below.

Capitalizing on increased OSR, the Vora Municipality Own-Source Revenues in Millions of US$ Municipality of Vora modernized its 3.5 3.2 urban and rural roads and improved 2.9 3.0 its water supply. Funds were also 2.4 invested to improve the quality of life 2.5 through enhanced recreational areas 2.0 and playgrounds, sidewalks, and 1.5 lighting. 1.0 “We are committed to doing our job 0.5 and put in a lot of effort to succeed. 0.0 We don’t collect taxes to improve 2015 2016 2017 figures and show off. Rather, we However, it is not simply a cadre of professional staff that inform businesses and households makes Vora successful. These women and men are regularly that their taxes will improve residents of Vora, and they see firsthand the improvements citizens’ lives and our children’s lives. to their quality of life served by increased OSR. Their The revenues are only used for commitment to their community is reflected in their investments and to improve citizen excellent application of TAIS and other skills learned from services. This is what motivates us in PLGP, and they are a model of structured, sustainable our jobs,” said Klaudia, Head of development for all of Albania. Households’ Sector.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 13 Supported development of tax legislation and institutions PLGP provided annual support to the MoFE to develop annual fiscal packages affecting local government taxes. PLGP played a key role in reforming the legislative framework for property tax in Albania, which is expected to generate $2.4 million in additional revenue for local governments in the short term. PLGP was instrumental in the establishment of the Property Tax Department (within the MoFE). To make sure this information was distributed, PLGP conducted a cycle of workshops with managers and representatives of tax departments from all 61 Albanian municipalities where they presented the property tax reform and the related legislative changes, shared lessons learned and best practices, and received local feedback for contextualization. Over the life of the project, PLGP prepared eight policy papers on local government taxes, including recommendations to the GoA to improve the legal framework and procedures on local taxation and alternative financing sources.

Local finance and tax officials attending trainings, workshops, and study tours organized by PLGP. Conducted public expenditure and financial accountability (PEFA) assessments in Albania PLGP cooperated with the SECO to conduct the first-ever subnational PEFA assessments for five municipalities in Albania. PEFA assessments are particularly useful in identifying strengths and weaknesses in PFM at both the national and local levels. Participating municipalities and the MoFE both stressed that these assessments were vital to improving LGUs’ alignment with international best practices and to creating the LGFL at the national level. The PEFA exercise was complemented by an assessment of the financial management and control and internal audit systems in eight additional partner municipalities, which helped them address existing weaknesses in their PFM systems. Built e-government ICT tools and solutions to improve municipal financial management and increase citizens’ access to crucial services PLGP strived to improve the efficiency, transparency, accountability, and overall management of local government operations. To further that goal, PLGP introduced applicable ICT to the project’s municipal partners—building e-government solutions to enhance the efficiency of LGU operations and increase citizens’ access to crucial services. Financial empowerment of local governments is a key component in the framework of decentralization; by utilizing PLGP’s ICT support and tools, municipalities are able to streamline their services and provide more transparent and accountable customer service. ICT interventions supported PLGP’s actions in three main ways: through automation, by increasing access, and by mitigating

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 14 loss. Automating functions and digitizing data reduced the time taken for daily tasks, provided more timely and accurate reporting, and resulted in more informed decision making. Improved customer service facilitated by ICT tools and maximized revenue collection, which in turn resulted in greater accessibility to services and information online for more equitable citizen representation and civic engagement. Lastly, ICT measures reduced opportunities for corruption and human error through automated fiscal management, mitigating loss and potential corruption through strengthened monitoring and control measures. Each ICT intervention plan contained the following:

• Local Financial Information System: This system is based on three main products for improved financial administration: a) local TAIS, implemented in 10 municipalities; b) FAIS, implemented in 10 municipalities; and c) web-based geographical information system (Web-GIS), which established territorial and property taxpayer registries and was implemented five municipalities and one WU. Through TAIS, all local tax information systems and databases are integrated to facilitate tax compliance, combat non-compliance, and satisfy information requirements at the operational, managerial, and internal control levels. TAIS encompasses the entire cycle of local tax administration: administration of taxpayer data; calculation, invoicing, payment of taxes, and reporting.

“In the first four months of 2016, we have been able to collect twice the amount in taxes than we collected over the same period in 2015. PLGP support to our tax department has helped us guarantee our future.” —Mr. Armando Subashi, Mayor of Fier

• e-Government Software Tools: These tools enabled broader citizen access to services and increased civic participation. As the OSS model proved in PLGP’s five partner municipalities, providing a dedicated space where citizens can perform all tasks relevant to local government increased efficiency and reduced the time spent by both individuals and municipal staff for procedures and paperwork. Implemented in tandem, the OSS and online services enabled citizens to more easily pay their taxes and start new businesses, both of which contribute to local economic growth.

• Water Utilities Management Software: PLGP’s intervention in water supply and sewerage utility also contributed to public transparency. A Billing and Accounting Water Information System (BAWIS) improved online visibility and provided customized software for preventive maintenance, improving municipal capacities, and ensuring proper care of WU resources.

• LGU ICT Infrastructure Improvement: PLGP furnished, installed, and configured 16 servers and related accessories at 12 partner LGUs, three WUs, and the National Agency for Information Society; supplied 15 wide area network/firewall systems for 12 LGUs and three WUs; and supplied physical equipment to include 34 sets of computers and uninterrupted power supplies (crucial during frequent power outages), 32 printers, and 15 laptops (including 12 for CAPs).

• GoA–LGU Communication and Integration Tools: PGLP instituted mechanisms for data collection and management and improved integration between the different levels of government information systems. Key elements of this included building a communication infrastructure, which provides data from State information systems to LGUs, and integrating local tax obligation information into the e-Albania online central service portal. This intensive, field-based ICT support, included trainings, peer-to-peer support, study tours, and online support resulted in significant advances in local ICT systems as shown in Table 3-2.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 15 Table 3-2. Implementation of ICT Systems/Tools

ICT SYSTEM/TOOL FIER VORE BERAT VLORE PATOS KAMEZ KORCE TIRANA LUSHNJE KUCOVE ELBASAN SARANDA

TAX ADMINISTRATION (TAIS) FINANCE ADMINISTRATION (FAIS) BILLING AND ACCOUNTING WATER UTILITIES

SYSTEM (BAWIS) WATER UTILITIES CORE & COMM. MODULES WEB-GIS TOOLS FOR TERRITORY REGISTRY

AND/OR WATER NETWORK MUNICIPALITY e-SERVICE PORTAL IMPROVEMENT OF WATER UTILITIES WEB

PRESENCE ICT PLATFORM THAT ADMINISTERS OSS

ACTIVITIES INFRASTRUCTURE IMPROVEMENT

Success Story 2. One-Stop Shop for Citizen Services

“Today, I went to the One-Stop Shop to In Korca, the many administrative procedures that used submit a request. I found a friendly to require visits to multiple departments can now be environment, and the procedures were easy addressed at the One-Stop Shop (OSS) for Citizen and simple. I was so pleased!” —Albana Services. Çule, Korca Resident The OSS was launched in 2016 and allows citizens to access the same services at the same level of quality at a location within the city hall, at five different locations

within the central city, and at a location in each of Korca’s seven suburban and rural administrative units—increasing ease of access as never before! PLGP worked with Korca municipal staff to combine computer-based technologies with human-based administrative processes and in so doing created a new way of delivering local government services that is responsive, convenient, transparent, and cost-effective for citizens and the government. The OSS provides 73 services from 11 different municipal departments, including Finance, Local Taxes and Tariffs, Social Protection, Legal, Territorial Planning and Development, Contract Management, Human Resources, and Public Relations. An OSS can issue permits, licenses, and documents; accept service requests, citizen “The One-Stop Shop gives power to the complaints, and reports; and provide non-stop service people and power to the municipality. It from 8 a.m. to 4 p.m. Even more helpful, a public-facing enables all citizens to address their website provides information on any required forms and requests, complaints, and applications for allows users to perform some tasks entirely online! An services in a single location, and it gives the increased measure of transparency, citizens can also track municipality an important instrument for the status of their requests by identification number. An monitoring our work in terms of time, operation manual for staff lists step-by-step instructions quantity, and quality.” —Sotiraq Filo, Korca Mayor

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 16 Success Story 2. One-Stop Shop for Citizen Services on service delivery, including required response times and other customer service standards. Serving as a model for customer service and efficiency, the OSS has been scaled across 50 additional municipalities, showcasing the impact of responsive government to improving quality of life.

“Today, we have a genuine system for local income-generating obligations, we can print invoices and collect local taxes and fees automatically. And we have the reports needed for effective decision making. TAIS has decreased employee fatigue while simultaneously improving services for our taxpayers.” —Mr. Besmir Blama, Director of Taxes, Municipality of Berat

“Before TAIS, our difficulties included identification of new taxpayers, extensive manual labor that frequently affected the quality of our work, the vulnerability of paper data to damage or destruction, the ill-use of data, and unauthorized access to information. Due to USAID’s intervention with hardware, TAIS, and training, all of these problems are now history. We are now accessing and processing the data in real time.” —Mr. Bujar Loshi, Head of Kamza’s Tax Department

Assisted LGUs in seeking alternative financing sources Viewed as an opportunity for LGUs to access alternative financing, PLGP provided training sessions on the EU Instrument for Pre-accession Assistance. In cooperation with the Slovenian Embassy and the Centre for European Perspective, seven four-day training sessions were conducted entitled “Project Cycle Management in Practice: From Idea to Winning Project Proposal.” Over these sessions, representatives from central and local governments (including partner municipalities) developed concrete, EU-eligible project ideas and proposals in real time. As a result of these training local officials in five partner LGUs prepared and submitted 45 proposals for funding from the EU and other sources, resulting in 26 contracts awarded for a total of €2,819,171. PLGP also assisted the municipalities of Patos and Mallakastra and the Tirana Water Utility in developing proposals for Government-to-Government (G2G) US Government (USG) funds, which resulted in upwards of $600,000 in USAID-funding for projects completed in 2019. PLGP provided support to the partner municipalities of Kucova, Patos, Saranda, and Vora and the non-partner municipalities of Mallakastra, Skrapar, and Kolonja to develop their applications for grant funding from the GoA’s Regional Development Fund (RDF) “Digital Albania” Program to implement USAID/Albania Country Representative Mikaela PLGP-developed TAIS/FAIS. As a result of this Meredith inaugurating the USAID G2G-funded One-Stop assistance, the RDF awarded $80,000 to the Shop in the Municipality of Patos. Municipality of Mallakastra, $80,000 to the Municipality of Skrapar, and $60,000 to Kolonja to establish FAIS. These ICT tools are now successfully implemented and being used by these municipalities. Established Citizen Advisory Panels PLGP established the first-ever institutionalized CAPs in 15 municipalities across Albania. Support for civic engagement began in 2012; by 2013 CAPs were formally recognized as local partners in the

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 17 decision-making process in 14 partner and 1 non- partner LGU (Berat, Burrel, Durres, Elbasan, Fier, Kashar, Kamza, Korca, Kucova, Lushnja, Paskuqan, Patos, Saranda, Vlora, and Vora). As a bottom-up mechanism, CAPs gave voice to common issues and concerns and served as advocates for and by citizens to local officials. Around 350 volunteer citizens participated in these groups, representing a whole-of-society approach encompassing gender, age, ethnicity, and geographic Kuçova CAP members offering feedback at a public hearing. distribution and ensuring equal representation of women, youth, and minorities in their communities. CAPs have actively contributed over the years to a variety of issues in their communities, ranging from budgeting and fiscal packages to waste management and social services. Members also participated in municipal council meetings and public hearings organized as part of the Community- Based Scorecard (CBS) process. PLGP organized multiple capacity building trainings, awareness- raising sessions, and study tours to best position CAPs to have an impact on municipal affairs. PLGP experts provided sessions on inclusive planning processes, local taxes and tariffs, and civic engagement to enhance citizen participation and facilitate productive engagement with LGUs. As LGUs developed General Local Territorial Plans (GLTPs), CAPs played a key consultative role as citizen forums. Implemented Community-Based Scorecards CBSs are a social audit and community monitoring technique that enable citizens to voice their needs and priorities to local officials regarding public services, good governance, LED, and social services. PLGP successfully implemented CBSs for the first time ever in 18 partner and non-partner LGUs (nearly 30 percent of Albania). Around 3,000 citizens were involved in the process through 95 focus groups, 57 semi-structured interviews, and 24 public forums. The CBS process was initiated in collaboration with United Nations (UN) Women in advance of the 2015 local elections. The scorecards (including 27 indicators) covered four major pillars of local governance: public services, local democracy, LED, and social inclusion. The feedback from this process influenced substantial improvements to public services and community resources

including waste management, upgraded rural roads, View of the roll-up banner used to promote construction of social housing for vulnerable women, and CBSs in the partner municipalities. cleaning and maintenance of irrigation channels. In addition, the presentation of CBS results served as inclusive platforms of dialogue and interaction among citizens and local officials from these communities. Across all 18 municipalities, officials acknowledged and accepted the recommendations generated by this process and committed to incorporate the feedback into their decision-making processes.

“This process shows that strong, active, vocal citizens can influence positive change in your communities. The CBSs are one more example of USAID/PLGP’s efforts to engage local governments and citizens in constructive dialogue for the common good.” —USAID/Albania Country Representative, Dr. Catherine Johnson

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 18 CBSs were showcased as a best practice at national events in 2016 and 2017. This visibility highlighted the importance of building local-level civic engagement as a means for supporting good governance, local democracy, and community empowerment. The events focused on two specific civic engagement tools that supported citizens’ participation and increased accountability and informed decision making: CAPs and CBSs. Nearly 200 representatives were educated on the benefits and challenges of the CAP and CBS approaches and were presented with case studies of their practical use. Tangible results generated by scorecard feedback included improvements to rural roads in Elbasan, Berat, and Patos; investments in municipal infrastructure in Vlora; construction of social housing for vulnerable women in Patos; handicraft employment opportunities in Gjirokastra; maintenance of irrigation channels in Fier, Berat, Roskovec, and Shkodra; and reconstructed bathrooms in public schools in Roskovec.

Social housing for vulnerable women in Patos reconstructed as a result of the community-based scorecards feedback.

Implemented the Quality Service Improvement Program The LSGL and implementation of TAR created significant challenges in the delivery of services to citizens, especially for the new functions. To address these challenges, PLGP implemented the Quality Service Improvement Program (QSIP) methodology in five municipalities (Elbasan, Fier, Kucova, Lushnja, and Patos). Tailored to create a “service culture” within local government, the QSIP implanted a customer- and quality-focused attitude in staff, encouraged more proactive behavior, and implemented service improvements within municipalities. QSIP vision and values, service audit, and action planning workshops involving 244 municipal staff created awareness, understanding, and commitment to the concept of service excellence for customer- focused organizations. QSIP’s tools assisted municipalities to identify the service area of greatest concern to citizens and helped develop and implement specific action plans for improved service delivery. Feedback from 551 technical and administrative staff, and input Municipality of Elbasan improving irrigation and drainage systems. from 2,234 citizens, emphasized difficulties in implementation of the new functions and highlighted the irrigation and drainage service as the highest priority for the partner municipalities. As a result of that feedback, five Irrigation and Drainage Service Delivery Action Plans were adopted and endorsed by local authorities. The action plans provided municipalities with practical ways to improve water service delivery, including preparing a database of farm properties and conducting an inventory of municipal assets in the water system and the key areas for cleaning to improve the flow and drainage of water.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 19 As a result of PLGP’s work in coaching partner municipalities and support in preparing drainage and irrigation action plans, drainage and irrigation has increased by 69.6 percent, from 16,155 to 27,404 hectares, giving 37,884 farming families improved access to drainage and irrigation. Municipal processes have improved, including institutional culture shifts from reactive to proactive irrigation and drainage planning; municipalities have completed registers of irrigation and drainage areas and inventory of assets and farmers’ service contract records; and taxes and tariffs are now being collected for these services. To ensure long-term sustainability, PLGP partner municipalities have obligated and approved nearly $40,000 in their 2020 budgets for maintenance of their irrigation and drainage services, impacting directly 66,816 households. Collaborated with Peace Corps/Albania PLGP enjoyed exceptional collaboration with Peace Corps/Albania and Peace Corps Volunteers (PCVs) throughout the lifetime of the project. Coordination with PCVs allowed PLGP to build upon grassroots movements and include PCVs in the implementation of a variety of PLGP efforts, from support to CAPs to engaging youth on issues related to P/CVE. From 2013, PLGP conducted an annual training on local governance with municipal and local non- governmental organization (NGO)-based Community and Organizational Development (COD) volunteers, providing crucial contextualization of the local governance structure in Albania. In addition, PLGP conducted capacity building trainings with PCVs on advanced participation methods, civic engagement, and urban planning. Youth activities showcased this collaborative style through PLGP’s joint efforts in Youth Boards, girls’ clubs (Girls Leading Our World Club [GLOW]), Girl Scout Troops, boys’ leadership and advocacy (BLAST) training, summer camps, and community activities—all of which increased youth agency and strengthened community resiliency. Coordination with PCVs allowed PLGP to build upon the project’s work at a grassroots level and supported project efforts in improving local communities.

“PLGP has provided valuable context to our COD volunteers. This information will help them better understand the communities in which they will serve.” —Kate Becker, Peace Corps/Albania Country Director

3.1.4 COMPONENT 3 (HISTORIC): IMPROVE LOCAL GOVERNMENT MANAGEMENT AND OVERSIGHT OF PUBLICLY OWNED UTILITIES, IN ACCORDANCE WITH EUROPEAN UNION STANDARDS PLGP assisted the GoA and local governments to manage and oversee jointly owned utility companies dealing with services such as water, wastewater, and solid waste management to ensure that laws, policies, procedures, and services are consistent with EU standards and environmental standards in particular. Throughout the eight years of support in the water sector (2012–2018), PLGP assisted selected local governments and WU supervisory boards in developing skills, defining roles, and building the knowledge needed to effectively manage and oversee jointly owned utility companies dealing with these services. PLGP’s main achievements in this area include the development and implementation of Five-Year Business Plans (2016–2020) and Performance Improvement Action Plans for seven partner Mayor of Vlora Dritan Leli reviews water municipalities (Tirana, Fier, Lushnja, Vlore, Elbasan, demand projections of the Vlora Water Utility Saranda, and Patos) aimed at improving commercial 5-Year Business Plan performance and the quality of water service, reducing NRW from 68 to 40 percent, increasing water bill collection from 80 to 92 percent, and

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 20 increasing water service coverage from 85 to 95 percent. Through PLGP’s support, the WUs improved the level of collections and debt recovery (more than 20 percent in the first 12 months, and more than 30 percent in Tirana Utility), increased level of water supply coverage (more than 8 percent new customer contracts), and increased the level of metering (increased customer metering by more than 15 percent in the first 12 months). An update of the Tirana Business Plan in 2019 showed that many projected Key Performance Indicators (KPIs) have been reached. The implementation of the investments and action plan interventions projected on the Tirana Business Plan 2017–2021 increased the actual level of KPIs such as: NRW from 68 to 60 percent, bill collection rate from 80 to 97.5 percent, metering level 93 percent, continuous service 13.5 hours/day, water supply coverage from 85 to 92.1 percent, and wastewater coverage 84.4 percent.

Success Story 3. From Hope to Success!

Saranda Water Utility’s Five-Year Business Plan and Performance Improvement Action Plan overcome an overloaded system and set the stage for a sustainable tourism infrastructure moving forward. Due to the Territorial Administrative Reform in 2015, Saranda Municipality underwent huge changes in both land area and increased citizen service delivery. In addition, Saranda also has the distinction of being a “We are focused on putting customers first popular tourist spot on the Ionian Sea, further and are always striving to deliver water increasing the demands on their water sector. safely and reliably while providing the best overall value to our customers and tourists. This business plan will help us look ahead to prepare for changing customer expectations. In addition, the plan will help us to make timely investments for improved water supply system efficiency, so that the With PLGP’s guidance through subcontractor Valu Add, Saranda Water Supply and Sewerage Saranda developed a Five-Year Business Plan and Company is fully prepared to respond to the Performance Improvement Action Plan. This approach increased water demands of tourists and was strategic as well as operational and involved key residents during the summer period. We stakeholders in a bottom-up process. The WU was able are proud to work hard to provide safe, to identify priorities, set objectives, analyze current clean, and reliable water and appreciate the performance levels, and forecast future trends in assistance provided by USAID to complete human, financial, and economic resource constraints in this important task.” - order to increase the efficiency of resource allocation —Sheme Lulo, Director of Saranda WU and ensure sustainability of services moving forward. This building block is crucial to augment financial capabilities and service delivery as they continue to grow in popularity with visitors, both domestic and foreign.

At the demand-driven request of the MoIE, PLGP water experts supported the MoIE to develop their first-ever National Approach and Methodology to Reduce NRW in Albania to serve as the road map for future actions for the WUs in Albania. The project developed a Baseline Assessment, Analysis, and Findings for NRW in Albania and a detailed Short-Term Action Plan to Reduce NRW in Albania with proposed measures that would reduce commercial and technical losses by 20 percent. The action plan includes approaches such as conducting system-wide metering, reducing illegal connections, locating and fixing visual leaks, and reviewing large customer water use.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 21 Based on the actions undertaken to support the implementation of water sector reform for the period January–June 2018, a total of 2,737 new contracts were registered in the four water utilities (WU Lushnja: 924 new contracts; WU Fier: 1,400; WU Elbasan: 360; and WU Patos: 53). These new contracts were mostly a result of legalization of illegal connections. All interventions planned for NRW reduction will normalize consumption and increase water sales (billing) by an additional 31 million cubic meters, which translates into approximately $19 million dollars in additional revenues within the next three years. Actions to reduce visible physical losses will reduce production by 4 million cubic meters, which will reduce energy costs by an estimated $770,000. This study was completed on very short notice per the MoIE’s request and has paramount importance to the MoIE for project planning and implementation of measures to support reduction of NRW in Albania, including the signing of performance agreements between the MoIE and major water utilities. The project assisted the Delivery Unit at the Prime Ministry in holding roundtables and presentations to managing directors of WUs that were included in the NRW analysis. This overall assistance resulted in the allocation from the GoA 2020 and 2021 State Budgets of approximately ALL 738,718,000 ($6.8M) for procurement of production and customer meters and relevant studies. In addition, the Agency of Water Supply and Sewerage in Albania oriented State Budget funds to support investments aiming at 24-hour water (business plan forecasts), including all needed priority measures to support reduction of NRW in the remaining water utilities. Implemented water sector reforms PLGP developed a set of comprehensive guidelines to assist municipalities and WUs throughout Albania in understanding recent water sector reforms. The practical guidelines provided legal, administrative, procedural, and operational considerations for all 61 municipalities to support water sector reform. In support of the reform, the project conducted four regional workshops (in Lezha, Vlora, Tirana, and Pogradec) to disseminate the guidelines and survey participants about key concerns and issues related to water supply and sewerage.

“Developing a national plan to reduce non-revenue water has a crucial importance to the Ministry of Infrastructure and Energy to meet the water agenda and targets of the Prime Minister. We are extremely appreciative of USAID and PLGP who have responded rapidly to our request for assistance and for the high level of professionalism of the PLGP water team.” —Hantin Bonati, Deputy Minister of Infrastructure and Energy

• PLGP assisted the GoA and six model municipalities to develop Transition Plans to restructure delivery of water supply and sewerage services in the new administrative local government service areas (post-TAR). Plans include institutionalized road maps to restructure water services and improved accountability and transparency. PLGP’s technical assistance to WUs developed and implemented statutes, integrated customer databases, created human resource strategies, inventoried assets, and valued assets for each municipality’s service areas. • PLGP provided in-depth dedicated assistance to the WU of Tirana to develop a Tariff Adjustment Plan based on the business plan. The regulatory authority approved the tariff and price strategy prepared with the project’s support, which served as the basis for negotiating a ~$37 million capital investment program approved by the European Bank for Reconstruction and Development.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 22 • PLGP developed and supported the implementation of a Customer Service Operations Manual designed to define the standard procedures for routine activities of the Customer Service Department staff of WUs nationwide. • PLGP supported the Elbasan WU to develop and implement an Integrated Asset Management Platform. Project experts developed and delivered training sessions to the Asset Management Working Group of Elbasan WU to collect, import, and validate data and further operate the Asset Management Platform. As a result, more than 50 percent of the water supply system of Elbasan WU has been uploaded and validated

on the Asset Management Platform, more than 170 km of pipes are reflected on the geographic information system A poster produced by PLGP in (GIS) module of the Asset Management Platform, data cooperation with partner LGUs’ water utilities to raise awareness on payment are captured from three main well fields and two main of water bills and discourage water reservoir sites, and the Asset Management Working theft. Group is trained and proficient in operating the platform.

• PLGP supported four WUs in the development of public communication plans that served as a blueprint for the company’s public relations and outreach activities as well as a key communication source to promote the WU’s business plan vision and strategic goals. • PLGP supported public awareness and communication campaigns aimed at increasing water bill collection and stopping water theft. Banners, posters, leaflets, and factsheets developed for each municipality resulted in an increased level of awareness of water customers and the public on water issues. • PLGP assisted five model municipalities to develop the Baseline Assessment and Action Plan for organization and delivery of irrigation and drainage services. These documents were drafted for the first time in the last 30 years.

3.1.5 COMPONENTS 3A AND B: STRENGTHEN CIVIC ENGAGEMENT TO PREVENT/COUNTER VIOLENT EXTREMISM (AND WOMEN, PEACE, AND SECURITY) PLGP civic engagement and community resilience activities were targeted more narrowly to vulnerable communities within Albania than the inclusion and participation activities under previous components. PLGP conducted a modified municipal selection process that focused on the goals specific to P/CVE and WPS—new areas of emphasis for USAID/Albania following the departure of some Albanians to join Islamic State as foreign fighters. In Years 8 and 9 PLGP implemented Components 3A and 3B activities aimed at strengthening partner communities’ ability to prevent and address violent extremism challenges in Bulqiza, Cerrik, Kamza, Librazhd, Peshkopi, and Pogradec. These municipalities were selected in a collaborative manner with USAID and the CVE Center reflecting both areas of need and potential for success. Components 3A and 3B activities are organized by level of focus: the local level, where PLGP implemented its core activities to build community resiliency through empowerment of women and girls; the national level, with institutional strengthening for the CVE Center, including implementation of its gender-focused action plan; and the regional (Western Balkan) level, where Albania exchanged national- and local-level best practices with bordering countries. The CVE center co-designed this proposal to ensure its maximum sustainability and replicability. PLGP’s approach leveraged USAID’s “A New Way Forward,” a more strategic and nuanced CVE strategy to address collectively the problem of radicalization.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 23 3.1.5A COMPONENT 3A: PREVENTING/COUNTERING VIOLENT EXTREMISM PLGP’s local-level activities had distinct but complementary goals: to reduce the likelihood of women becoming participants in, or vulnerable to, violent extremism activity, and to increase women’s contributions to making communities more resilient to the violent extremism risk. PLGP leveraged its understanding of local realities and know-how in working with local governments, communities, and vulnerable groups within them. While PLGP did not undertake work directly with foreign fighter returnees, the project’s work fit into the larger P/CVE and USG-funded efforts in Albania. PLGP recruited Field Coordinators to implement activities (with PLGP staff, subcontractors, and short-term technical assistance [STTA]) that built overall resilience to violent extremism. Project activities engaged municipal staff (including gender focal points/GEOs/domestic violence specialists, local administrators, and heads of the villages from Administrative Units) and built their capacities, and that of their institutions, to increase attention to the rights and needs of women and girls. PLGP drafted the first localized P/CVE Mapping Assessments of the project’s six partner municipalities—an approach which was recognized by the National CVE Coordinator as a best practice to be replicated in other hotspots. The mapping assessments identified and explored the key factors affecting radicalization, recruitment, and violent extremism including the enabling environment and socioeconomic, political, and cultural drivers based on USAID’s Guide to the Drivers of Violent Extremism.3 The mapping assessments proved invaluable in deepening an understanding of the context and sensitivities (regarding P/CVE issues) of the targeted communities and were vital in establishing local relationships and identifying intended stakeholders. They also generated significant information on community needs, strengths and weaknesses, and resources available. PLGP applied a variety of tools and methodologies to complete each assessment using both qualitative and quantitative methods of data collection, such as desk research, interviews, meetings, and focus groups organized at the central and local levels. The stakeholders consulted represented a broad Infographic included in the mapping assessment showing the profile of spectrum of community actors, including Dibra Municipality. municipal staff, religious leaders, local police, civil society organizations (CSOs), community members, and PCVs. In addition to analyzing the social and economic resources available (or lack thereof), these assessments focused on gender-related successes and/or struggles in each municipality, women’s access to services, and risks affecting women in the community. The results and findings of these mapping assessments supported PLGP work plan development with crucial information on the current situation in partner LGUs, key local institutions and actors, resources, socioeconomic challenges, and the presence and activities of other P/CVE interventions.

3 USAID Guide to the Drivers of Violent Extremism, February 2009.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 24 Municipalities received a mandate from the GoA to establish security councils, and PLGP supported the development of models, templates, and exemplar councils as a means also to advance partner municipalities’ mechanisms for P/CVE. PLGP supported the creation and formalization of Local Public Security Councils (LPSCs) in Dibra, Bulqiza, Kamza, and Pogradec, and facilitated their quarterly meetings. LPSCs act as a forum for dialogue and engagement regarding community concerns by generating input on and addressing security matters of local communities. Bringing together various actors in a whole-of-society approach, LPSCs strengthen cooperation and interaction among local stakeholders and enable them to better address factors that lead to radicalization and violent extremism. PLGP developed and disseminated the P/CVE Guide for Local Leaders, as well as the brochure “For Informed, Engaged, and Secure Citizens” to 61 municipalities (through 21 targeted trainings and CVE Center distribution). Both publications were collaboratively advanced with the CVE Center and are the premier documents identifying local legal mechanisms and actors that should be active in P/CVE. User- friendly and containing practical tools, the guide has proven to be a useful reference for first-line practitioners to address the root causes of radicalism and violent extremism.

At the national level, PLGP’s work with the National CVE Coordination Center supported its growth as a connector The cover of the “P/CVE Guide for Local and bridge-builder. The center was envisioned by the Prime Leaders.” Minister (to whom the director reports) as a platform to share expertise among stakeholders active in the P/CVE arena, act as the lead coordinator for P/CVE programming involving local- and national-level institutions and/or Albanian and regional and international stakeholders, and support those actors by providing data and state-of-the art research and analysis on violent extremism phenomena. PLGP leveraged its expertise at the municipal level to streamline this coordination within the six targeted municipalities and supported the CVE Center to disseminate lessons learned in and materials developed for PLGP municipalities.

Local staff of the Municipality of Tirana participating in P/CVE training. Raising both the awareness and human capacities to address the causes of radicalization and violent extremism at the national and local levels were integral pillars of PLGP’s WPS agenda. PLGP led this process for local administrators in Albanian municipalities through the development of reference materials (P/CVE Guide) and targeted trainings. In coordination with the CVE Center to identify and access higher risk municipalities, and using the P/CVE Guide, PLGP conducted P/CVE training in 21 Albanian municipalities including Berat, Bilisht, Bulqiza, Cerrik, Dibra, Durres, Elbasan, Fier, Kamza, Kavaja, Korca, Kucova, Librazhd, Lushnja, Patos, Pogradec, Saranda, Shkodra, Tirana, Vlora, and Vora. These trainings encompassed a whole-of-society approach to inclusive security, offering

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 25 564 local officials and other key stakeholders (56.4 percent of which were women and girls) useful strategies to manage cases of violent extremism and other security issues at the municipal level. They also acted as a critical dissemination point for the P/CVE Guide for Local Leaders and the PLGP brochure “For Informed, Engaged, and Secure Citizens.” The opportunity to contextualize the training materials through open dialogue among stakeholders was key to sustainable understanding of these complex topics. Participants concluded that cooperation among all actors and integrated interventions at the local level are key to P/CVE efforts and building community resilience. The lessons learned from the trainings provided valuable insights crucial for the (eventual) development of a local response mechanism for managing P/CVE issues at a local level.

Success Story 4. Building Bridges: Reflecting on the Past and Looking Ahead toward Continued Growth

The CVE Center provides support to frontline practitioners to counter and prevent violent extremism in Albania and the region. USAID is proud to have contributed to its whole-of-society approach and looks forward to the CVE Center’s bright future. Starting out as two motivated staff with a small office in the Prime Minister’s building, the CVE Center has grown exponentially to be regarded as a model for the Western Balkans with its approach to building community resilience and creating sustainable government policies. PGLP was an early “PLPG was one of the first projects that the partner for the CVE Center. CVE Center worked with, and the collaboration has been very successful and effective. Interventions followed PLGP’s model of using data (i.e., gender-sensitive mapping assessments) to Differently from other programs, PLGP’s work direct practical activities. Locally, PLGP worked and connections in the field were with municipalities and civil society bodies that complementary to the CVE Center’s philosophy could sustain grassroots activities beyond the of working with local government units and project and through political shifts. In addition, citizens. One challenge for the Center is the PLGP and the CVE Center pursued national- and creation, strengthening, and capacity building of regional-level activities. An embedded Gender local mechanisms which already exist in law, Expert within the CVE Center kept a focus on but are not functional. With PLGP, we began to human security to include the roles women and address these issues through various joint men in P/CVE. initiatives. There are many activities that the Ensuring the CVE Center could continue their Center will carry on and promote as best advocacy on key issues, PLGP’s experts created a practices to be replicated moving forward. CVE Guide for Local Governments, and a brochure Working with PLGP the last two years has been to raise citizen awareness, which were the basis for a great chance to set the foundations for P/CVE trainings conducted in 21 municipalities. The dealing with such a delicate topic which is so training methodology and materials were disseminated to CVE Center staff and other GoA very important for Albanian communities.” ministry partners in a Training of Trainers. Finally, as Local Public Safety Councils (LPSCs) were —Rozana Baci, Expert on Civil Society and identified as a partner for change within Security communities, PLGP supported their establishment in Bulqiza, Kamza, Librazhd, and Pogradec, and created a Policy Paper on P/CVE Referral Mechanisms to support advocacy for

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 26 Success Story 4. Building Bridges: Reflecting on the Past and Looking Ahead toward Continued Growth standardization and institutionalization moving forward. The CVE Center has grown by leaps and bounds over the last two years, but its mission remains the same: to protect Albanian society from violent extremism. USAID is proud to be a partner in such crucial work.

After two years of intensive work (plus a history of partnership across Albania) in selected municipalities, PLGP drafted the policy paper Leveraging Existing Structures and Mechanisms to Better Protect Citizens from Radicalization and Violent Extremism. This document considers the local, cultural, societal, and historical context of Albania in conjunction with the realities of the political landscape and existing capacities of institutions and stakeholders. It provides an examination of the current legal framework as it relates to PVE and an overview of the weaknesses in present practices. The paper closes by proposing measures to close existing gaps between the theory and implementation of P/CVE efforts. Moving forward, its comprehensive examination of LPSCs and their protocols as related to the identification and assistance of citizens at risk of radicalization and violent extremism provides a platform for the CVE Center to establish a P/CVE referral mechanism in Albania. PLGP reinforced the status of the CVE Center as a leader in the region and bridge-builder between local and state institutions in the fight against violent extremism. In addition to commodities support to enhance their technical potential, PLGP also increased staff capacities through targeted trainings in gender mainstreaming, data management, and process efficiencies. These skills were tangibly displayed as the center conducted a collaborative national conference on “First-Line Actors Countering Violent Extremism,” which brought together 2,000 local and state actors for the first time and showcased best practices and lessons learned from the local-level perspective. As a coordination body, the center can now utilize complexity-awareness models and improved data management tools (facilitated by PLGP) to accurately follow the progress of line ministries in

USAID Country Director delivering remarks during the national conference on “First-Line Actors Countering Violent Extremism.”

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 27 completing agreed-upon plans of activities and respond in an agile manner to the shifting landscape of P/CVE in Albania. PLGP supported Albania’s participation in the Western Balkans region to address its vulnerabilities to cross-border collaboration for radicalization and/or terrorism, due to shared experiences with Muslim world actors in the post-Soviet area (a common pull/recruitment factor for foreign fighters) and similar ethnic, economic, and social challenges (a common push factor). Recognizing that they are stronger together, the three National CVE Coordinators of Albania, Kosovo, and Macedonia held an initial consultation in May 2018 and drafted a Joint Action Plan, which determined major areas for collaboration such as regular coordination meetings, strategic communication, trainings, and research. Building off the Joint Action Plan, PLGP assisted with cross-border collaboration by conducting three cross-border workshops in cooperation with municipalities of Pogradec, Librazhd, Dibra, and Bulqiza and the communes of Strugë and Dibra e Madhe of North Macedonia. For the first time, border municipalities and CSOs had the opportunity to share good practices, lessons learned, and discuss the next steps for improved and sustainable cooperation among municipalities and CSOs. This collaboration enables stakeholders to better address the drivers of radicalization and violent extremism and therefore uplift their most vulnerable. PLGP synchronized the first Donor Coordination Meeting for the P/CVE community of practice, providing transparency and illuminating opportunities for collaboration between international projects and studies ongoing in Albania and the Western Balkans. Although there were efforts for coordination among donors at the local and national level, this process was not yet well- organized and often led to duplication of efforts or gaps in implementation. Establishing the CVE Center as the touchpoint for donor coordination, PLGP also facilitated the use of a donor coordination spreadsheet and calendar for future meetings. Moving forward, this will provide transparency and clear avenues of communication between donors and the CVE Center and mitigate confusion at the local level between projects.

3.1.5B COMPONENT 3B: WOMEN, PEACE, AND SECURITY PLGP built successful approaches to improving resiliency through initiatives and examples of how to embed WPS and PVE in concrete terms within the local governance/public administration reform discourse. Economic development, a key component of PLGP’s approach to strengthening local governance, is the process of building a community’s capacity for shared and sustainable improvement in its economic well-being. USAID recognizes the importance of gender parity for sustainable economic development and maintains women’s economic empowerment (WEE) as an explicit goal. PLGP built successful approaches to improving LED (Component 4) by improving structures for communication and collaboration between the private sector and local officials. In Years 8 and 9, PLGP refocused this work on women’s opportunities to contribute to and benefit from LED. In addition to private sector and women-focused organizations, PLGP continued to support and nurture community-based activities that strengthen civic engagement to build resiliency and community cohesion. PLGP worked with existing communities, networks, and mechanisms to develop and expand the informal network of responders to signals of recruitment and radicalization in those communities, as well as to strengthen the promotion of gender equality. PLGP fostered the creation and formalization of community structures like Youth Boards and girls’ and boys’ clubs, to empower local youth in their communities. Youth Boards benefited from inclusive, creative, and community-strengthening events and afterschool extra-curricular activities. Through the work with community structures, municipal officials, and other local stakeholders, PLGP created networks of volunteer responders to build awareness and resiliency within communities, in an effort to decrease vulnerability to drivers of violent extremism that capitalize on marginalization and exclusion.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 28 Supported youth engagement PLGP pioneered the establishment and formalization of Youth Boards starting in 2018 in advance of the new Law on Youth (75/2019) mandating the creation of youth councils in each LGU. PLGP supported the creation and formalization of seven Youth Boards (six partner and one non- partner LGUs) in the municipalities of Bulqiza, Cerrik, Dibra, Kamza, Librazhd, Pogradec, and Belsh. These Youth Boards empowered over 250 youth to become active in their communities and grow as leaders for change and progress.

”Bringing youth into the fold of the community and providing meaningful opportunities to affect change helps prevent violent extremist ideologies from taking root, which is good for your community, Albania, and the entire region.” —Mr. Brock Bierman, Assistant Administrator for USAID’s Bureau for Europe and Eurasia

PLGP introduced critical thinking skills and improved the capacities of Youth Board members through the Youth Academy Program (YAP). The YAP was designed and implemented to equip youth with useful life skills for their futures, which in turn may also prevent them from becoming vulnerable to radicalization. The Life Skills and Leadership Training Program included a cycle of trainings on personal and interpersonal development and leadership. Other capacity-building activities of the YAP included training sessions on advocacy and lobbying, effective communication and active listening, good governance and youth engagement, and open discourses on antisocial behaviours (bullying, drugs, smoking, and alcohol use). In collaboration with municipalities, PLGP supported extracurricular activities with youth as well, including outdoor team building activities with each Youth Board, summer camps, environmental activities, open days with municipal governments, festivals, a Model United Nations competition, poetry competition, and awareness-raising campaigns on various topics including the COVID situation. These activities involved youth in planning and engagement with local stakeholders and positioned them as community activists. PLGP also organized or supported various sport related activities, such as the National Girls’ Youth Board members during Empowerment through Self-Defense Program sessions. Beach Volley Tournament in Pogradec, school championships in Bulqiza and Cerrik, and the Empowerment through Self-Defense Program (ESD) across partner municipalities. ESD supported 113 girls and boys to recognize, respond to, and prevent situations of abuse, violence, bullying, and victimization. ESD activities combined psychological, verbal, and physical techniques and allowed youth to build multifaceted resiliency to issues of violence and abuse in their communities. The absence of facilities and structures to support youth generated community projects in partner municipalities. PLGP The newly renovated cinema in Cerrik, furbished with the support of USAID. supported the creation of six youth

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 29 centers (one in each LGU). Ranging from refurbishment to complete building renovation, each of these centers are now safe spaces for boys and girls to meet with one another, organize activities, and engage in community outreach. PLGP also supported refurbishment of the new state-of-the-art Cinema of Cerrik. Increasing resiliency and a sense of community spirit among youth is key to developing strong societies whose citizens can come together across generational and gender boundaries to stand together. In coordination with the CVE Center, PLGP developed a Youth Survey to gauge media influence on Albanian youth and assess their attitudes towards P/CVE issues. This surveying process involved all six Youth Boards and generated 1,354 completed surveys. The aggregated data produced an assessment of the current state of the use and influence of media (social media, in particular) on youth; their online safety; relations with the family, school, Girls Scouts in Pogradec. and community; and other significant issues that impact young people. Results were shared at the municipal level and analyzed for a published study. The empowerment of women and girls early in life is crucial for their growth and development. As part of the project’s engagement with young women, PLGP initially supported the GLOW Club in Kamza in partnership with the local PCV. In Year 9 PLGP created six Girl Scout Troops: two in Bathore, Kamza, and four in Pogradec (two in the city and two in the village of Rëmenj). As part of these troops, girls ranging from 6 to 14 in age gain skills to develop a strong sense of self, display positive values, and form/maintain healthy relationships. These tools will support their personal development and positively influence themselves and their communities throughout their lives.

Success Story 5. Girl Scout Troops in Albania: Building Strong Foundations for Future Leaders

Girl Scout Troops deliver a foundational experience generating benefits that span a Scout’s lifetime and echoes of her leadership throughout her community. Inspired by scouting programs established by the Peace Corps, USAID’s Planning and Local Governance Project (PLGP) established six Girl Scouts Troops (two in Kamza and four in Pogradec) in 2020.Troop leaders and co- leaders were identified in both communities, “The girls from this troop possess the determination and trained in the creation and management of and passion to become strong, successful women. Scout Troops, including tasks such as selection We have organized different activities and will of Scouts, action planning, and conducting continue to do so, not only because the girls are regular meetings and activities. In order to ensure sustainability following the project, excited to be part of the Troop, but their parents PLGP partnered with local actors such as Une are also very happy that they are engaging in Gruaja, a CSO in Pogradec. activities that support their development. This is the best leadership experience for girls in this age. I am As part of these Troops, over 60 girls (ages 6 sure that Girl Scouts will make our community a to 14 years old) are engaging in important community activism, leading programs on better place to live.” environmentalism and recycling, generating —Shpresa Nikolla, Girl Scout Troop Leader funds for activities and outreach, and learning life skills like cooking and knitting. The program provides these new Girl Scouts with

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 30 Success Story 5. Girl Scout Troops in Albania: Building Strong Foundations for Future Leaders tools that will support their personal development and set them up for success throughout their lives. Through team-building and reflective activities, they can gain the skills necessary to develop a strong sense of self, identify and solve problems in their communities, display positive values, and form and maintain healthy relationships. These formative development processes strengthen girls during their early years and “Being part of Girl Scouts is awesome. It’s so much empower them with the confidence and skills fun. I have made new friends, and together we to move forward as leaders in their spend great time together and plan for new communities and country. activities. We also discuss our future profession and how we’ll become strong women in the future.” —Naomi Mato, 10-year-old troop member

Supported gender empowerment at the local level Much of the work to empower women focused on strengthening the institutions that provide them services, in particular the municipalities, and was highly tailored to the local needs of each partner municipality and its communities of women. PLGP experts worked closely with partner municipalities to coach municipal staff in 2020 budget planning and advised local decision makers to include incentives supporting women’s and youth engagement in economic activities. As a result, all six PLGP partner municipalities approved incentives in the form of tariff reductions for women (and The Mayor of Kamza presenting the initiative of reduction in local youth) business startups. New businesses tariffs for women and youth during a PLGP activity with women entrepreneurs in Kamza. managed by girls and women and those started by individuals under the age of 25 (regardless of gender) will receive a reduction in local tariffs ranging 20–50 percent (depending on the municipality) for the first year. This is the first time that reductions were given in this manner and are a concrete representation of the political will to move forward with measures towards gender equality in the economic sphere.

“Thinking of local tariffs, you can say it is a little bit modest, but this is how you start—doing small things today to get to big wonderful ones in the future.” —Tanita Duro, Chief of Cabinet in the Municipality of Kamza

As a result of the support and coaching given to the local staff, all six of PLGP’s partner municipalities decided on an affirmative action in the form of tariff reductions for women- and youth- owned startups and 11 new businesses owned by women and girls were established in the partner municipalities only in 2020.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 31 In collaboration with the Municipality and Historic Museum of Pogradec, PLGP organized a ceremony in July 2020 recognizing the 26 women featured in “Her Story in the History of Pogradec.” Participants were delighted to discover the outstanding contributions made by these women to the intellectual, cultural, social, and political spheres of Pogradec. In addition to presenting the publication, the Municipality of Pogradec expressed its appreciation and respect for the sacrifices and contributions of these women with official certificates of appreciation.

“When I received the invitation to participate in this ceremony, I was so surprised,” said Ms. Mangalina Cane, the first woman mayor of the Municipality of Pogradec, “and today I’m feeling really good, not only because this is the first invitation from the municipality after so many years since I was part of it, but also because I see so many women leaders with very strong voices joined together with many men who support the same purpose and who will continue what we started for a society of equal opportunities and for a Pogradec with great models in every sphere of life.”

Strengthened local responses to violence In the framework of the “16 Days of Activism against Gender-Based Violence,” PLGP worked with the Cerrik Youth Board to prepare a street theater production and raise awareness of human trafficking and coordinated with the municipality on local issues of gender-based violence and domestic violence. Flyers were distributed in the administrative units, whose citizens are often neglected or marginalized due to their geographic isolation. Municipal staff received coaching on the mechanisms and support structures than exist and given training to how best to disseminate this crucial information to citizens. In the Collage of pictures taken during the “16 Days of Activism against Gender-Based Violence” Municipality of Bulqiza, 45 activity in Cerrik. teachers, representatives of the municipality and health services, young adolescents, and mothers addressed different forms of violence against women and support that can be provided by the municipality. Discussions highlighted the importance of protecting women and creating healthy families as a prerequisite for building peaceful societies.

“We are happy that this activity is organized here in our village, and we really need similar activities to be continuously organized in schools, with youth, teachers, and women of the community” —Ms. Eriona Gjini, a member of the Cerrik Municipal Council.

As part of PLGP’s response to the COVID-19 pandemic, PLGP launched a campaign to increase awareness of domestic violence and the challenges faced under isolation measures during lockdown. In collaboration with GEOs and promoted with the support of local governments, the campaign cautioned aggressors against violence and provided information for reporting cases of abuse. Using the hashtag #YouAreNotAlone, women were urged to reach out

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 32 and report dangerous situations. This message was immediately carried forward on social media by the four partner municipalities of Cerrik, Dibra, Kamza, and Pogradec, reaching over 9,500 people. In addition, PLGP linked the requests for direct support with food and hygienic materials’ packages of partner LGUs Cerrik and Pogradec with other international actors who were engaging in emergency support. As a result of PLGP’s referral, the United Nations Population Fund (UNFPA) supported Pogradec with 200 aid packages and Cerrik with 900. Supported gender-responsive and socially inclusive local governance LGUs must play a crucial role in the implementation of the right to equality for all citizens. Equality of women and men implies the will to take action in three complementary aspects of its achievement: the elimination of direct inequalities, the eradication of indirect inequalities, and the construction of a political, legal, and social environment supportive to the proactive development of an egalitarian democracy. PLGP supported partner municipalities toward this goal, facilitating the use of important gender mainstreaming tools, such as the European Charter for Equality of View of the European Charter for Equality of Women and Men in Local Women and Men in Local Life. All six Life, signed by the Mayor of Pogradec in May 28, 2020. PLGP partner municipalities became signatories to the charter, bringing the total in Albania to 13. Following each signing ceremony, PGLP facilitated communication between the Brussels-based Council of European Municipalities and Regions (CEMR) and the signatory, shared their charter certificates, and enabled that municipality’s inclusion in CEMR’s online registry.

The Deputy Mayor of Librazhd, Ms. Elvira Poçi, expressed the municipality’s firm commitment to move the agenda for gender equality forward, stating, “I see the European Charter for Equality of Women and Men in Local Life as a guiding tool toward actions we may do to improve the life of citizens, and I think that the employment of a full-time person to be dedicated to gender equality issues in our municipality will be among the first actions as part of the charter’s Action Plan.”

“We have a very committed leadership and staff in our municipality, and I am confident that the Municipality of Pogradec will soon join the other eight municipalities in the country who have signed the European charter,” said Deputy Mayor Ms. Entela Gusho. “I think we have to do much more in all areas, not only in service delivery, and we also need to share more with other municipalities.”

Municipalities took the additional step of preparing a Local Gender Action Plan (LGAP). LGAPs further formalize the governmental commitment to gender equality by outlining accountable steps for implementation in all aspects of local life. Tailored to the specific needs of the community, LGAPs provide a means for exchange between citizens and local government and address important issues related to service delivery, childcare provision, domestic violence, women’s economic empowerment and participation, and youth engagement. Establishment of dedicated LGAP working groups in partner municipalities laid important groundwork for moving gender equality issues to the forefront and ensured accountability after the life of the project.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 33 PLGP supported the effectiveness of LGU GEOs with targeted capacity building and coaching based on needs assessments conducted in each municipality. Twelve on-the-job trainings and coaching sessions were conducted in Year 8, with follow-on sessions in Year 9, most of them realized online due to the COVID-19 restrictions. Tailored professional development packages were developed to inform GEOs of the legal framework, Council of Ministers Decrees, action plans, and projects implemented at the national level to support gender equality/gender-based violence functions at the municipal level. GEOs actively participated in P/CVE trainings and activities to increase community resilience and citizen engagement. PLGP also supported GEOs in Bulqiza and Dibra with practical gender mainstreaming tools to strengthen gender-responsive governance. Based on an assessment of the local functionality of GEOs, PLGP’s technical team recommended multiple options for operationalizing the gender equality mechanism (GEO function) at the local level. An initial review of Albanian laws referring to the municipal GEO position and function revealed numerous gaps and contradictions. Therefore, PLGP prepared a Legal Input Document with proposed amendments to various pieces of Albanian legislation pertaining to GEOs complemented by financial simulations that determined the concrete cost to establish the GEO position for each LGU nationwide. Simulations revealed that the budgetary implications for the GEO position are minimal, while its impact on the quality of governance and citizens would be exponential. This approach of addressing the root causes of ineffective implementation of gender equality policy (structural, legal, procedural, and financial) provided a framework for representatives from Parliament and key line ministries to engage with representatives from the local level, donors, and international organizations for gender equality. In order to solidify these new lines of communication and reinforce the importance of GEOs with policymakers, PLGP held a high-level working meeting with participants from the Ministry of Interior, Ministry of Health and Social Protection, and Members of Parliament (including the heads of the sub-committees on Gender Equality and Human Rights). This meeting provided a forum to present the findings of PLGP’s Report and White Paper on Gender Equality Officers in Local Government Units and served as an opportunity to initiate dialogue on the concrete administrative, financial, and legal changes required for structured engagement. Prior to this intervention, analyses of the GEO position had remained largely descriptive; however, now decision makers are armed with specific actions to operationalize this function to its fullest potential. This body of information marks a starting point for representatives to support government structures that effectively address the needs of both women and men and reinforce post-COVID-19 recovery through community resiliency.

“I have always appreciated PLGP’s approach. They start a process and complete it, working through the analyses, recommendations for the future, and with the respective budget, as it is in today’s proposal,” said Ms. Eglantina Gjermeni, Head of the Parliamentary Subcommittee on Gender Equality (and former Minister of Urban Development)

To build skills for sustainable municipal development, 21 municipal staff from partner LGUs were trained to write gender mainstreamed grant proposals. This process increased their awareness of and access to funding available for projects with stated gendered components and strengthened their ability to comply with calls having gender quality criteria such as gender-sensitive indicators and sex- and age-disaggregated data. Municipalities generated draft proposals ranging from the construction of a kindergarten in Librazhd (increasing access to childcare, a barrier to women’s employment) to furnishing a library in Cerrik to give youth and the larger community a safe space for learning and positive cross-generational interaction. PLGP’s assistance culminated with three practical proposals solicited for funding.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 34

A GEO high-level working meeting being conducted with participants from the Ministry of Interior, Ministry of Health and Social Protection, and Members of Parliament.

“I have never been trained or told that project proposals should be gender sensitive. Through the training and the practical writing provided with PLGP’s assistance, I can now see the whole process differently and better. We are now better equipped to write project proposals and apply for funds.” —Besmira Tuma, specialist in the directory of EU and donor coordination, Municipality of Bulqiza

Enhanced women’s economic inclusion and value chain development in Albania In Year 8 PLGP conducted Albania’s first Gender-Sensitive Value Chain Analyses (GSVCAs) in Albania. PLGP conducted the months-long pioneer GSVCAs in all six partner municipalities, completed trainings for practitioners, and held working groups in the partner municipalities involving 180 local stakeholders. These working groups and field visits (along with complementary desk research) identified opportunities to upgrade/diversify value chains and create jobs for local women. The resulting strategies protected the interests of those most vulnerable at specific stages within the value chain and improved market access for women in the (often informal) economy. In Year 9, through GSVCA interventions, PLGP developed concrete activities to improve the economic integration of women that included: 1) expanded targeted vocational training for women related to job opportunities; 2) mentorship opportunities; 3) workshops on employability and skills; 4) support to women-owned businesses; 5) policy recommendations to public and private sector decision- makers on gender equality in the value chain(s); and 6) scalable lessons learned.

“I have been in this business for more than half my life, but through the training, I clearly see for the first time how much women are involved in the medicinal and aromatic plants value chain, and there is so much we can do to empower them by small interventions.” —Zyber Gjoni, Medicinal and Aromatic Plants Consolidator in Dibra

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 35 As a sustainable measure for scale, PLGP launched a Guide for Practitioners and Interested Stakeholders, which supports gender-responsive approaches to value chain analysis and economic growth in Albania. The guide aids development practitioners to practice gender-sensitive value chain development, explains the key concepts and steps to effective gender-sensitive analysis, and provides examples of contextualized best practices. In March 2020 this information was presented in the first-ever Briefing Paper on Gender-Sensitive Approaches in Value Chain Development at a National Conference on GSVCA. Held in collaboration with the Ministry of Agriculture and Rural Development, this conference promoted GSVCA as an emergent methodology to unlock Albania’s full economic potential. The over 80 participants who engaged in an open and constructive dialogue included representatives from local and central governments, subject The cover of the Guide for matter experts, and members of the donor community. PLGP Practitioners of GSCVA. introduced a case study and offered its analysis through various examples, highlighted the effects on women in the project’s partner municipalities, and advocated for the potential of scaling these actions. During the conference, PLGP presented two important documents: The Handbook for Practitioners of GSVCA and the Policy Improvement Document at Central and Local Level. These documents, in tandem with the case studies presented, provided practitioners with the tools needed to apply GSVCAs across the country.

Minister of Agriculture and Rural Development making a speech at the GSVCA national conference.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 36 “Empowering women in the rural sector is a must for sustainable development in agriculture. Today women make up about 55 percent of the labor force in agriculture and play an important role in the economic activity of the sector. USAID is making a valuable contribution to the inclusion and empowerment of women in agricultural economic activities, focusing on the value chains for the production of honey, traditional food, handicrafts, and especially in the cultivation of medicinal and aromatic plants. [The Ministry of Agriculture and Rural Development] supports these interventions that are added values in our ongoing effort to create jobs and strengthen the value chains through the contribution of women to agricultural enterprises,” said Mr. Bledi Çuçi, Minister of Agriculture and Rural Development.

Enhanced economic inclusion for women of six partner municipalities PLGP implemented small-scale programs to improve value chains in the municipalities of Bulqiza, Cerrik, Dibra, Librazhd, and Pogradec. By conducting activities that ensured women’s engagement and empowerment, these efforts also supported LED as a whole. The targeted value chains included: medical and aromatic plants (MAPs) in Bulqiza, Cerrik, and Dibra; traditional food and handicrafts in Pogradec and Dibra; and honey in Librazhd and Pogradec. These efforts toward inclusivity were scaled to private sector development by supporting job creation; increasing the number of disadvantaged women in employment, production, processing, and marketing; and enhancing productivity and the competitiveness of products that are produced by women.

Harvesting and drying of MAPs in Cerrik.

• Medicinal and Aromatic Plants: Through this program, 45 women and their families improved their working and living conditions as a result of interventions in Bulqiza, Cerrik, and Dibra. Interventions included developing protocols and technical manuals on cultivation of high market value MAPs (mallow, cornflower, and calendula); supporting women farmers with propagation material (seeds and seedlings) and technical knowledge for propagation; training groups (prior to COVID-19) and individuals (under GoA restrictions) on practices for the cultivation of MAPs; ensuring contracts between farmers and export companies; and hosting open field days to showcase and promote the cultivation of MAPs as a best practice for women

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 37 employment and LED. Prior to PLGP’s interventions many unused fields had lain fallow for over 20 years. Now through PLGP’s efforts, four hectares of fields (Bulqiza: 1.5 hectares; Dibra: 1.7 hectares; and Cerrik: 0.8 hectares) are full of mallow flowers that are expected to bring a yield of up to 200–250 kilos per 0.1 hectares and generate significant revenues of approximately $80,000–$100,000 in total. Each one of PLGP’s female farmer beneficiaries will receive approximately $30–35/day during the harvest season (up to 4 months) and average $2,000–$3,000 in profit as a result of their partnership with PLGP. • Traditional Food and Handicrafts: A lack of jufka product continuity has been a weakness for a women’s group in Dibra. Due to the natural drying process, the business functioned through spring and summer time but halted in the colder months. A group of 20 women in Maqellare, although well-known for producing high-quality jufka, have been struggling for years due to low business administration knowledge, lack of legal registration, and improper labelling and packaging (limiting market access). PLGP Interventions included training on business administration and relevant legal requirements; preparing a detailed short- and long-term business plan for the group; improving working conditions and drying techniques for year-round production without losing product quality; improving market presentation with proper branding, labelling, and packaging; ensuring food safety and quality standards through the Albanian Guarantee; supporting legal registration; and creating market linkages. Through PLGP’s efforts in certification and labelling, the price of jufka will increase 35–55 percent. Until now, jufka were sold in large unlabeled boxes for $2.00/kg. After the improvements, the group is negotiating with supermarkets and high- end shops in Tirana for $4–5/kg. The new drying equipment, installed with PLGP support, opens an Lirije Rexha, the leader of women producer group of Maqellare, working inside the jufka production facility. additional four to five months of productivity (November–March), with the potential to increase overall production by 40–60 percent, employ five more women within the facility, and support ten additional artisans working from their homes. PLGP’s support to the group in business administration, production, and marketing has resulted in added annual income for the group of $35,000– 40,000. Tushemisht (Pogradec) is renowned for its traditional food and handicrafts. Although the traditions are well-established, local producers experience difficulty in packaging and marketing their products to a larger audience as a group. Local women typically sold their food on the side of the road, without any food safety measures and with poor packaging standards. In order to strengthen cooperation and access to markets, PLGP provided training on business administration and relevant legal requirements; trained women in product diversification and differentiation; prepared detailed short- and long-term business plans for the group; improved working conditions and provided equipment to ensure food safety standards and product quality; improved product market presentation with proper branding, labelling, and packaging; supported

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 38 food safety and quality standards through the Albanian Guarantee; and engaged in promotional activities to create market linkages. As a result of PLGP’s support, women in Tushemisht organized as a producer group under one brand, “Miket e Ollgës,” and are now able to share their work and create high-quality, marketable products with labelling and packaging meeting the Albanian Guarantee standard requirements. They have started supplying local restaurants and are discussing contracts with traditional food shops and restaurants in Tirana. These steps all culminated to an increase in prices from 20 to 55 percent, depending on the product, and an increase in production output of more than 30 percent (to be increased further based on new contracts). • Honey: Based on the findings from the GSVCA conducted in Year 8, the main problems facing the honey value chain were: lack of production equipment/materials; technical processes skills gap; poor agricultural extension services in both quantity and quality; use of inappropriate pesticides (not bee friendly); lack of automated technology and quality standards certification; informal operation in the market Woman beekeeper in Librazhd, beneficiary of PLGP intervention on honey, posing in front (not registered businesses); of her beehives. and a lack of promotion and marketing strategies. Women were present in all stages of the chain but received low incomes for very difficult and time-consuming labor. From January to July 2020, PLGP interventions to mitigate these issues included: training beekeepers to increase technical skills; publishing the first-ever manual for beekeepers in Albania as a sustainable knowledge repository; supporting women beekeepers in certification of the Albanian Guarantee standard; and improving product market presentation to increase market access. The training and capacity building activities for honey producers were very effective and have impacted how farmers cooperate with nature and solve problems related to bee health. A value-added step in this

process was the laboratory Traditional food and honey products, packed and labelled according the Albanian Guarantee standard, exhibited during a traditional food event organized by PLGP. analyses conducted for all bee farms and appropriate

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 39 treatment for bees, that too environmental protections into consideration. Product certification and improvements in labelling and packaging provided new market opportunities for farmers. The women’s group will be contacted by the Albanian Guarantee to address issues for product improvement as illuminated by inspection reports. As members of the standard, they can now make use of logistics for trading their products in Tirana and access a broader, more profitable market space. Forty women beekeepers and their families benefited from these interventions, ensuring a more consolidated and sustainable practice. Women’s Small Business Program (WSBP): Based on PLGP’s GSVCA reports and working group processes, the value chains identified in Kamza presented significant barriers to women’s employment. PLGP launched the WSBP activity in Kamza with the participation of local women and representatives from the municipality, including the mayor and other senior officials. Using a mentorship framework, 30 participants were selected, including those who were heads of household, currently unemployed, and had been victims of domestic violence. The participants were guided through three phases: classroom training, individual/group coaching, and practical business planning. The women generated business ideas based on their professional knowledge, experience, and the observed needs of the community. They offer services in care, sports, and education (5 businesses); traditional handicraft and tailoring (4); catering (2); operate beauty salons (2); and the trade of secondhand clothes (1). As a result of PLGP’s support, three new businesses were created and ten existing businesses were consolidated in the Municipality of Kamza. In support of these newly established businesses, PLGP provided relevant commodities assistance to several of the women, including items such as sewing machines, office furniture and shelving, and hairdressing equipment. Coupling commodities with business skills provides a sustainable model for growth and has allowed the women to hire nine additional employees from within their communities, thereby expanding the circle of impact. The municipality has been an enthusiastic partner throughout these activities and will continue to be an ally for these small businesses moving forward through various tax incentives and other financial assistance measures.

“This was a unique experience for me. I am a divorced mother of two children. After the divorce, I lost everything including my business, and I had to start over from the ground up. I had failed several times in my efforts to reestablish the former business and earn my own money to support my family. In the poorest of conditions, I found the support from USAID and its team of experts indispensable. I was very reluctant at first, but throughout the entrepreneurship program, I regained the self-confidence. With the knowledge and new equipment I received, installed with the generous support of USAID, I can now expand my business services and hire one more employee,” said Greta, 27, a young entrepreneur in Kamza.

“The only skill I had so far was the creation of beautiful handmade traditional costumes; However, I could not be in the market before as I lacked the business knowledge and subsequently the confidence to start a legal profitable business. My entire life was split between taking care of my disabled husband and ensuring the education of my two [young] children. When I heard about the program, I thought that this may be good on paper, but nothing could help me. USAID’s experts elaborated all I could achieve with my talent, and I still was reluctant to be part of the program. I was not even calling it a talent—for me it was something I could do and with the money gained, I could maintain my poor family. It all turned out so well for me. I learned a lot in the program. It was very well-explained and very simple to understand. At the end of the program, I was able to prepare a business plan and present it in front of a jury. I was very excited when I was selected as one of the winners. I am now in the registration process. USAID helped me also with the new equipment, which allows me to get more orders from clients and ensure a sustainable income for my family. I would encourage other women like me to have more trust, generate new business ideas, and believe in themselves.” —Trendafile, a woman head of household and beneficiary of WSBP in Kamza

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 40

Children playing in a playground, established with the support of USAID as part of WSBP support to women, in a kindergarten in Kamza. 3.1.6 COMPONENT 4 (HISTORIC): STRENGTHEN THE CAPABILITIES OF THE GOVERNMENT OF ALBANIA AND LOCAL GOVERNMENTS TO PLAN AND MANAGE URBAN AND REGIONAL GROWTH Territorial planning in Albania has evolved rapidly over the last decade. Between 2012 and 2019, PLGP was one of the lead actors in the reform of the territorial planning system in Albania. The Territorial Planning Law, approved in 2009, introduced a new planning system that reflected international best practices in spatial planning and land management. The law also introduced new institutions (including the NTPA) and important planning instruments at the national and local levels. PLGP strengthened the institution of the NTPA, provided expertise in developing the legal framework, developed important toolkits for central-level authorities to deliver to local-level practitioners, and engaged with local authorities as they prepared planning instruments. Toolkits are legacies of the project that municipalities will use for participatory urban planning and to address management issues at the local level. PLGP provided continuous expertise to the MoUD and the NTPA in preparing and implementing the following: • National General Territory Plan • Territory Planning Law • Planning toolkits and manuals including: Inclusive Planning Manual for Citizens and Authorities (2013); Manual on Territorial Planning and Development (2016); Policy Brief on Land Development and Picture of Albania’s first five General Local Territorial Financial Instruments of Land Development (2015) Plans exhibited during a PLGP activity. • Policy for Territorial Planning and Development for the period 2014–2020 • Albania’s first five GLTPs that address the environmental, social, economic, demographic, and infrastructural issues municipalities will face in the coming years

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 41 PLGP accompanied municipalities through the execution of their GLTPs, once prepared and approved, and had success in serving as a broker that leveraged private sector funding to improve local services. In partnership with the Trans-Adriatic Pipeline (TAP), PLGP prepared a feasibility study and design for a new livestock market in the municipality of Fier. The TAP financed $420,000 and the Municipality of Fier $446,500, with a leveraged contribution of $24,000 in USAID project funds. The project received international recognition and received the BigSEE Architecture 2020 award for public works and has been nominated by the Albanian Architects Association for the Mies Van Der Rohe 2020 award.4

Success Story 6. Municipalities Look Ahead with General Local Territorial Plans As a result of the 2015 territorial administrative

reform and following the territorial planning reforms, municipalities were required by law to prepare a GLTP—a foundational document that guides all aspects of municipal growth and development, including land use, economic development, public services and infrastructure, recreation, and the environment. A GLTP is a municipality’s plan for addressing challenges over the long term, and thus View of the Albania National Territory serves as a blueprint for a viable future. Council meeting, in which five General Local PLGP provided intensive support to the municipalities Territorial Plans developed with PLGP of Berat, Elbasan, Fier, Kucova, and Lushnja in assistance were approved. preparing and adopting the first five GLTPs approved in Albania. The 18-month planning “I want to express my gratitude to process for each municipality was designed to USAID/PLGP for their efforts on territorial incorporate the voice of the people. planning. The five plans are valuable as both an inspiration and as a guide to the “We had many more public events than required by government’s territorial planning efforts.” law,” said Rudina Toto, Urban Planning Expert, who —Ms. Eglantina Gjermeni, Minister of led PLGP’s support of the five GLTPs. “Our public Urban Development information meetings were well-attended, and we received valuable input during these sessions.”

Given the NTPA’s broad and complex mandate and its financial and human resource constraints, PLGP prioritized strengthening the institution. Among its early milestones, NTPA relied on PLGP’s technical assistance to prepare the NTPA Action Plan and sign the memorandum of understanding for its implementation, gain approval from Internal Regulations, and prepare an assessment of the NTPA Territorial Planning Register. PLGP undertook extensive work to assist the NTPA to improve its capacity to exercise its mandate to effectively implement the National Territorial Planning Law. PLGP supported the NTPA in preparing the regulations for the organization and functioning of the National Territorial Council (NTC), as well as the internal regulations for the NTPA. PLGP also assisted the NTPA to develop a conceptual framework for the long-overdue National Territorial Plan, in drafting standard operational procedures, a code of ethics, and job descriptions for all NTPA staff. With the NTPA beginning to fulfil its planning functions, and provide other institutions with technical assistance for theirs, PLGP shifted its support to local authorities. PLGP planning experts, in cooperation with MoUD and NTPA, defined model municipalities (Elbasan, Kucova, Berat, Lushnja,

4 https://bigsee.eu/livestock-marketplace/

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 42 and Fier) as partners for drafting GLTPs in line with the new planning legislation. PLGP planning experts established territorial databases for each of the model municipalities and conducted an in-depth environmental inventory. GLTPs of seven PLGP-assisted LGUs were approved by the NTC. PLGP trained local councilors in territorial planning and land management, non-PLGP communes’ staff in changes to the Territorial Planning Law, planning staff of partner LGUs in GIS technology, and planners on the procedures and authority for issuing development permits. More advanced Collage of pictures during activities with NTPA and municipal staff. training for local government officials included permits, planning instruments, GIS, and databases. To build capacity beyond formal training in partner LGUs, PLGP conducted a national meeting called “Empowering Local Government in Planning and Administering their Territory,” which was buoyed by the participation of the Prime Minister and US Ambassador. NTPA acted as both a partner trainer and a trainee, thus benefiting from the process while increasing its own capacities. One workshop with 26 municipalities that have already approved GLTPs was also organized with the NTPA with the focus on Local Detailed Plans (LDPs) and FILDs. Special attention was paid to the use of GIS in the preparation of feasibility studies for LDPs. Cooperation between PLGP, MoUD, and NTPA also resulted in the drafting and approval of two bylaws (the planning regulation, Decision of the Council of Ministers [DCM] no. 671, and the development regulation DCM no. 408), as well as in the drafting of a new bylaw on public space (which was approved with a DCM during Year 5 of PLGP implementation), all of which will provide administrative instruction on how the GLTPs will be implemented. In addition, PLGP experts (in cooperation with NTPA) drafted a territory planning and development toolkit to support municipalities and planning professionals with the implementation of the legislation and with several ideas and tools for carrying out the territorial planning and development processes. Municipalities made significant progress toward achieving long-desired projects to improve the quality of their cities and services. The Elbasan LDP focused on preparing a feasibility study for a multi-model station to provide the municipality with a solution to their long-standing transport and traffic problems. The Fier LDP offered the municipality the opportunity to revitalize one of the central areas of the city, provide improved social services (indoor sports facility), and promote LED. The Tirana LDP offered a solution for the Ring Road Segment II, which passes through the city center, connecting two major roads. Ongoing construction of the Fier Livestock Market designed by PLGP. As a result of PLGP’s work in preparing GLTPs and LDPs, five partner municipalities have been able to leverage ALL 4,121,423,017 ($37,467,481) in funding from the Albanian RDF from 2015 to 2018 for projects focused on infrastructure and social services. The municipalities of Berat ($5,678,056), Elbasan ($8,819,025), Fier ($13,981,629), Kucova ($2,384,549), and Lushnja ($6,604,220) all were able to use their GLTPs and LDPs to leverage monies from the RDF to improve services in their communities. In additional, the Municipality of Lushnja gained funding from Italian-Albanian Debt for Development Swap Agreement Program for

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 43 financing one of the strategic projects of the GLTP, a livestock market in the Bubullime area, which will also serve as a training center. The project will cost around €250,000 and will be implemented in the period 2020–2022.

3.1.7 COMPONENT 4: PROMOTE ECONOMIC DEVELOPMENT PLANNING AND IMPLEMENTATION The 2015 Law on Local Self-Governance entrusted the newly consolidated municipalities with the exclusive authority and responsibility for LED. Promoting LED through the implementation of planning was one of the key aspects and expected outcomes of the territorial planning process. PLGP focused on this aspect by supporting municipalities to increase institutional capacities, in developing Local Detailed Plans and the application of FILDs as a way of promoting LED. To build capacity of municipal officials to operationalize the enabling environment, PLGP trained them to understand the relationship between businesses’ choices and LDPs, and in utilizing FILDs to support private sector development. PLGP urban planning experts, in collaboration with the NTPA organized and conducted several capacity building activities with representatives of the 61 municipalities to improve their awareness of and facility with the tools for economic development, such as LDPs and feasibility studies for capital projects. PLGP continually updated the Toolkit on Financial Instruments of Land Development to reflect international case studies and the experience of preparation of LDPs in Albania (e.g., municipalities of Kucova, Elbasan, Lushnja, Fier, and Tirana). To strengthen municipal institutions to grow their LED functions, PLGP undertook LED assessments for the partner municipalities of Berat, Fier, Elbasan, Kucova, and Lushnja, including consultations with mayors and other local officials. PLGP generated key recommendations to reorganize the economic development function in each municipality. Working with local staff, PLGP experts explored ways to adopt a new decision (#450) of the DCM, requiring municipalities to create units to support policy implementation, legislation, investment, and services linked to or arising from the European integration process. PLGP shared models for the reorganization of the LED undertaken in the municipalities of Berat, Elbasan, and Fier to create a better understanding of the role of an LED department or office. The Municipality of Berat reorganized their Department of Tourism, Culture, Youth, and Sports to reflect the strategic directions and priorities of the GoA. The department was renamed the Strategic Economic and Integration Department, with two sectors: tourism and events and European integration. In Elbasan, the responsibility for LED was added to the existing Strategic Department for Innovation and Media. In each municipality, LED capacity was strengthened without requiring additional financial resources. During the summer, PLGP delivered an Action Plan for the coaching of individuals responsible for implementing LED activities in the project’s five partner municipalities (Berat, Elbasan, Fier, Kucova, and Lushnja). The coaching imparted an understanding of the roles and responsibilities of local officials for LED as set forth in the Organic Law of Local Self-Government. PLGP continued follow-up meetings and additional coaching on LED activities, following the completion of the municipal election transition period. PLGP established a locally sustained mechanism for multi-sectoral collaboration in economic development through economic development advisory councils (EDACs) in Berat, Elbasan, Fier, Kucova, and Lushnja as the consultative mechanism for setting priorities and exploring investments and policy changes to improve the enabling environment for equitable economic

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 44 growth. The EDACs comprise seven to eleven representatives of a municipality’s most prominent businesses, the regional Chamber of Commerce and Industry, business associations, NGOs, and local government officials. Five EDACs in the partner municipalities of Berat, Elbasan, Fier, Kucova, and Lushnja strengthened the engagement of municipalities with the private sector. These public- private structures advise mayors and Municipal Councils to boost job creation and improve economic growth through permitting, zoning, tax/fee incentivizing, and providing services.

The first meeting of the Elbasan EDAC convening on April 13, 2018, at the Elbasan City Hall. Topics of EDAC meetings varied based on the unique needs and priorities of the public and private sectors, such as a tourism product development and the steps that might be taken to satisfy the Asian market demand (Berat); a presentation by the State Inspectorate of Market Surveillance on market surveillance procedures and laws on import-export of non-food products (several municipalities); local budgets and investment plans for the next year (Elbasan and Fier); and needs of the private sector for better coordination between central and local government, especially central and local tax offices. Elbasan and Fier have seen an increase in the numbers of new businesses being established, and the EDACs provide a forum where the voices of the owners and managers of newly formed businesses can be heard. PLGP prepared five “Doing Business” guides for each of these municipalities based on US best practices—meant for potential investors and operating businesses to understand incentives, services, and operating support they can enjoy when they run their businesses within that municipality. PLGP directly brokered economic and job opportunities in some municipalities and facilitated relationships between municipal and civic groups and larger private sector employers. For example, LED experts created job opportunities in the metallurgical sector for 27 students of the Ali Myftiu Vocational School in Elbasan where the ferrochrome industry has operations. AlbChrome is an Albanian company (part of the The “Doing Business” guide prepared for Balfin Group) operating in the municipality. Many workers are the partner Municipality of Fier. close to retirement age, and the company is facing a shortage of qualified and skilled workforce. AlbChrome reached out to PLGP for support in coordinating their investment in vocational education to secure skilled labor for its plant. With support from PLGP, AlbChrome collaborated with Elbasan’s Ali Myftiu Vocational School to establish a foundry- metallurgy class for the 2018 academic year. In Years 7 and 8 PLGP provided assistance in signing and implementing an agreement between the two organizations and in conducting an awareness

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 45 campaign for students to join the initiative. “I joined the school’s mechanical class two years ago to learn the core skills and then try my chances for employment abroad,” says Edison, 18, a student of the metallurgy class, “but I now have a green light for secured employment with AlbChrome upon my graduation.”

The first-ever foundry-metallurgy class for the 2018 academic year in the Ali Myftiu Vocational School of Elbasan.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 46 4.0 DISCUSSION OF PROBLEMS ENCOUNTERED AND WHERE OBJECTIVES WERE NOT ACHIEVED

Notwithstanding the challenging political environment for decentralization, PLGP is pleased to report that the project encountered few problems during almost a decade of implementation. The project enjoyed a collaborative relationship with USAID and the GoA, which allowed for robust and ongoing adaptation mechanisms. These included “pause and reflect” exercises to focus on lessons learned and to clarify opportunities during the annual work planning process; weekly meetings with USAID’s Contracting Officer’s Representative; regular and frequent meetings with leadership of key GoA stakeholders, especially new partners (e.g., the CVE Center) and high-level decision makers (e.g., the Minister of State for Local Issues); development of robust communication activities/products that ensured stakeholders were always abreast of and could react to PLGP’s latest activities; and continual local-level presence, such as through Field Coordinators, that ensured mayors and other local partners had ample opportunity to provide feedback to the PLGP team and request more pointed assistance, as needed. PLGP was able to pivot or adapt the project’s approach to best respond to the circumstances. This led to lessons learned over the life of the project that are captured in Section 5. PLGP has reported annually any deviations from the project’s work plan activities and summarizes below problems encountered and where objectives/activities were not achieved. COMPONENT 1 (HISTORIC): SUPPORT THE GOA’S WORK TO IMPLEMENT EFFECTIVE GOVERNMENT DECENTRALIZATION POLICIES AND LEGISLATION

Grant Making: PLGP intended to support GoA efforts to ensure that the formula for the distribution of Regional Development Funds (RDFs) was more transparent, fair, and predictable. In Year 4 when this work became relevant, PLGP expressed willingness to assist the GoA to revise the RDF criteria and found that the EU institutions had begun providing the necessary technical assistance. To add value in a complementary vein, PLGP provided support and assistance to the GoA in revising the Unconditional Grant formula. This support was beyond the assistance initially envisioned in PLGP’s Scope of Work. COMPONENT 2: IMPROVE MUNICIPAL MANAGEMENT SYSTEMS FOR DELIVERY OF KEY LOCAL SERVICES

Update the Public-Private Partnership (PPP) Manual: In Year 2 PLGP prepared the original PPP Manual used by Albanian institutions to expand the use of this multisectoral mechanism for infrastructure and service development. In Year 5, the GoA enacted changes to the PPP and Concession Law that rendered much of the technical content of the manual outdated. PLGP conducted a review of the PPP Manual for compliance with the new law, and, with USAID, decided not to draft a new manual to comply with the new law. This decision was due largely to the weak uptake and complicated performance record of PPPs in Albania. Reengineer the Existing Tax Application in Korca: In Year 6 (2016) the Municipality of Korca requested support to upgrade its tax software application to comport with the new TAIS, migrate existing data, and extend data collection/consolidation to its rural Administrative Units. However, in January 2017 the municipality officially informed PLGP of their decision to not upgrade/reengineer the existing tax application (provided via the previous USAID/Albania Local Governance Program) to the new TAIS solution. Municipal leaders felt that their existing system provided them with the necessary applications. Citizen Advisory Panels: Due to the existence of several community advocacy/consultation structures in the capital Tirana and the risk of politicization of an independent civic structure like CAPs, PLGP and USAID decided in Year 2 not to establish a CAP in this LGU. Nevertheless, the project facilitated the creation of a CAP in Burrel, a non-partner municipality that requested this assistance (thus achieving the objective of establishing 15 CAPs).

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 47 COMPONENT 3 (HISTORIC): IMPROVE LOCAL GOVERNMENT MANAGEMENT AND OVERSIGHT OF PUBLICLY OWNED UTILITIES, IN ACCORDANCE WITH EUROPEAN UNION EU) STANDARDS

In Year 7, following the urgent request for assistance in the area of NRW, PLGP experts agreed to cancel activities planned to develop Water Safety Guidelines and transfer the level of effort planned for this activity to support development of a National Approach and Action Plan to Reduce NRW. Moreover, assistance to develop guidelines and training on a water safety plan was included in planned activities by the World Bank and Danube Water Program. In Year 8, based on the request from the Tirana WU and their lack of time available to commit to upgrading their asset management, PLGP deviated from the work plan in moving project support from the WU of Tirana to Elbasan. The Municipality of Elbasan agreed to participate in the Integrated Asset Management for WUs in South-Eastern Europe Program with support from PLGP’s water experts. Near the end of Year 5, after extensive efforts and internal discussions, PLGP and USAID decided to suspend and re-orient the assistance for the development of a Transition Plan/Performance Improvement Action Plan for the WU of Berat/Kucova. PLGP conducted a study that demonstrated the financial impact of the disaggregation, which would result in a burdensome debt repayment situation for Kuçova, but the municipalities nonetheless sent a formal letter to become a standalone WUs to the General Directorate of Water Supply and Sewerage under the Ministry of Transport and Infrastructure. COMPONENT 3A AND B: STRENGTHEN CIVIC ENGAGEMENT TO PREVENT/COUNTER VIOLENT EXTREMISM (AND WOMEN, PEACE, AND SECURITY)

PLGP intended, with the CVE Center, to leverage its local work on P/CVE to impact all municipalities in Albania through direct training and technical assistance opportunities, offered to clusters of municipalities at the regional level. In Year 8, at the request of the CVE Center, PLGP refocused the project’s P/CVE Trainings for Local Officials from a regional approach for all 61 municipalities to an approach that first trained “hotspot” communities that have had cases of foreign fighters, followed by PLGP partner municipalities. As a result of the request of the CVE Center and the change in municipal leadership after the June 2019 elections, PLGP conducting 22 trainings in Year 9 (in 21 municipalities), and Albania’s remaining 40 municipalities received the PLGP guide “For Effective Municipalities, Active Communities, Safer Citizens.” PLGP conducted a training of trainers (ToT) session with the CVE Center to ensure that all training manuals/guides/PowerPoint presentations/etc. were handed over so that the Center can CONDUCT future trainings themselves or through other donors.

COMPONENT 4 (HISTORIC): STRENGTHEN THE CAPABILITIES OF THE GOA AND LOCAL GOVERNMENTS TO PLAN AND MANAGE URBAN AND REGIONAL GROWTH

In Year 5, PLGP planned to provide trainings for local planners and municipal councilors; however, the five model municipalities for whom PLGP provided GLTP support requested that the project shorten the timeframe for developing the plans by several months so that the approval process could be initiated sooner in the hope of concluding the entire process by December 2016. As a result, PLGP increased the level of effort dedicated to the GLTPs while postponing several planned trainings until the first quarter of Year 6. Originally, at the request of the NTPA, PLGP agreed to monitor the work of one or two non- partner municipalities using the Planning Toolkit to guide their planning efforts. However, the GoA later changed its territorial planning support strategy by awarding funds that would enable 26 municipalities to prepare GLTPs in partnership with full-service planning organizations. In making these awards, the NTPA and MoUD largely endorsed PLGP’s planning

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 48 methodology and established a set of coordination processes whereby all municipalities that engaged in territorial planning could benefit from the perspectives and skills of PLGP’s experts. COVID-19 GLOBAL PANDEMIC

As a result of the COVID-19 global pandemic, on March 24, 2020, the GoA declared a state of emergency through June 23, 2020. Domestic travel was prohibited, stay-at-home orders were issued country-wide, and meeting in groups was prohibited. In response to these travel and public gathering restrictions, PLGP modified/pivoted its approach to provide virtual support to continue implementation of project activities per the approved Year 9 Work Plan. While the restrictions delayed implementation of some PLGP activities, the team was pleased to have completed nearly all Year 9 work plan activities as planned. Some activities were nonetheless impacted due to COVID-19 restrictions as follows. Local-level Activities: • Both national and international exchange visits were impossible and LGUs’ priorities were focused on other emergency issues. PLGP had to cancel the planned (national and/or Western Balkans/cross-border) exchange/study tour of LGU gender focal points. • Due to restrictions on meetings and gatherings, PLGP could not directly support women’s monthly events in the selected municipalities through ensuring women’s participation in municipal council meetings or improve women’s social connections in rural Administrative Units in six partner municipalities through participation in fairs organized under PLGP and partner activities. • PLGP had arranged to support six partner LGUs with Local Security Council meetings, on agreed dates, which were subsequently postponed by local counterparts due to the COVID situation and increases in cases. National-level Activities: • PLGP and USAID designed and began to organize one collaborative closeout forum to share best practices based on field experience related to P/CVE, in coordination with the CVE Center and participation of local and national stakeholders. Instead, USAID and PLGP opted to share best practices with stakeholders through day-to-day work of subject matter experts and to prepare virtual and multimedia events and products to share the experiences of the project.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 49 5.0 LESSONS LEARNED

PLGP solicited from its local technical staff, international experts who supported PLGP, and its myriad Albanian stakeholders lessons learned from the project’s activities and the Albanian reforms it supported. These lessons are relevant for ongoing efforts in Albania, where international donors may remain engaged for years to come, and lead to recommendations for continued improvements to PLGP’s objectives. USAID may use PLGP’s lessons to inform US policies and actions related to decentralization and local governance programs around the world. Section 6 identifies the ways that PLGP has set up other institutions (GoA, donors, private sector) to continue the same or complementary activities, and where the project has identified gaps in support for decentralization. As PLGP’s highlights demonstrate, these have been pivotal years for local governments in Albania, with unprecedented changes that strengthen local governance. This report identifies 18 lessons to improve the design and implementation of decentralization and local governance programs and strategies in Albania. Throughout implementation, the project maintained a robust monitoring and evaluation system that included a PMP that contained a set of indicators that measured a range of changes over time and expanded to include new technical areas. The project was also punctuated with activities geared toward learning, such as policy panels and public discussion forums, and celebrations of results, whereby stakeholders defined for themselves success in local governance.

Success Story 7. What Experience Teaches When PLGP began working in Albania in 2012, local governments had limited political autonomy and even more limited fiscal and administrative authority. Inadequate legislation defined national/local responsibilities and scarce financial resources strained the capacity of municipalities to deliver services. PLGP helped the national government draft major laws on territorial-administrative reform, fiscal decentralization, and local government finance. The project has trained public officials and staff on how best to implement those laws and deliver effective public services. And it has emphasized citizen engagement. The PLGP Team at their Year 7 The latest data show that, over the past two years, Work Planning Retreat revenues from property taxes and recurrent fees increased 58 percent in Albanian municipalities, which “Our process-based approach allows us to fully implemented tax management technology with PLGP consider the resources that are required and the support versus an 11 percent increase in other context in which they must work-the laws, municipalities. That translates to the equivalent of policies, and multiple constraints that apply,” millions of additional dollars in these municipalities for says Kevin McLaughlin, Chief of Party of the public services and facilities. USAID’s Planning and Local Governance Project. “We see tangible evidence of the success of our “There’s nothing ad hoc about what we do. Our initiatives just about every day,” says the USAID PLGP comprehensive approach achieves an effective Chief of Party Kevin McLaughlin. “We can point to balance between the various aspects of our several areas of increased productivity, increased intervention: legislation, institutional capacity revenues, and people empowered through building, public service delivery, citizen information.” empowerment, training on grant writing, public- “The changes in Albania have been extraordinary,” says private partnerships, and raising local own- McLaughlin. The USAID project’s measurable success in source revenues. Our approach maximizes the helping governments guide that change has provided effectiveness of governance, as one aspect many lessons learned. What do the project’s years of reinforces the other. experience teach us? “I think there are a few key factors to our success,” says McLaughlin. • “We work effectively with multiple municipalities with

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 50 Success Story 7. What Experience Teaches an agreed framework, which expresses our mutual commitment and clearly outlines areas of responsibility and facilitates cooperation. We work intensively with 13 partner municipalities and often share our findings with all 61 municipalities. We work with them to solve practical problems, in such areas as urban planning, economic development, water system management, and property tax collection. There are ample opportunities for peer-to-peer exchange to generate a shared understanding of common issues.” • “We have been able to deliver our approach and investment over the long term. Achieving and maintaining institutional change is a long-term effort of encouraging and incentivizing new patterns of behavior so they are replicated across the institution until they become routine and improve overall performance.” • “Our evidence-based approach includes not only sharing international best practices but creating original data. Often in policy debates or practical planning, crucial data are unavailable or unreliable to give us adequate insight. Rather than make less-than-rigorous arguments or risk producing a product that isn’t of the highest quality, we will conduct research, analyze the findings, produce a report and other content, and share both the findings and the methodology used to produce them.” “The second P in PLGP stands for ‘project’, but it really should be ‘process’,” says McLaughlin. “We long ago evolved to where our process informs how we distribute resources, how we meet defined and practical needs.”

1. PROJECT MANAGEMENT: Adopting and maintaining a flexible design and adaptable implementation process was essential to PLGP’s overall success on its myriad objectives. PLGP’s project management approach depended in part on amassing and responding to evidence— deriving lessons from project activities and using them in programmatic decision making. The annual work planning process was a regular moment for this reflection, but ongoing, scheduled communication with USAID and GoA counterparts enabled real-time adjustments as well. Achieving and maintaining institutional change is a long-term effort of encouraging and incentivizing new patterns of behavior so they are replicated across the institution until they become routine and improve overall performance. PLGP’s evidence-based approach included not only sharing international best practices but creating original data. Often in policy debates or practical planning, crucial data were unavailable or unreliable to give the team adequate insight. Rather than make less- than-rigorous arguments or risk producing a product that was not high quality, PLGP conducted research, analyzed the findings, produced reports and other content, and shared both the findings and the methodology used to produce them.

2. PROJECT MANAGEMENT: Maintaining the multi-pronged design throughout the life of the project enhanced the impact of efforts toward any individual objective. PLGP’s comprehensive approach achieved an effective balance between the various aspects of project interventions, including: legislation and policy, institutional strengthening, public service delivery, citizen empowerment, training on project design and grant-writing, public-private

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 51 partnerships, and raising local OSRs. Elements of the project management structure enabled the long-term staff and short-term consultants to cross-pollinate and work consistently to leverage each other’s activities to amplify the impact of their own. For example, annual work planning processes always included an opportunity for team members to present the activities to meet a particular objective with the purposes of 1) gaining feedback from colleagues working toward other objectives, and 2) inspiring ideas in them for collaboration. The policy-to-practice feedback loop was enabled by a management culture that expected integration among objectives. The TAR, for example, significantly demonstrates how integrated technical activities came to reinforce each other: PLGP helped to craft the territorial reform, supported its implementation from the central level, and disseminated information about the consolidation of local government units to all Albanians. From the local level, PLGP then tested the application of the newly decentralized competencies by supporting municipalities to implement them, stretching the limits of their human and financial resources, and revealing weaknesses in the policy framework. This led to further policy work, such as the essential expansion of fiscal powers of municipalities, which in turn created significant demand for PLGP’s technical assistance in implementing OSR strategies with LGUs. As with central and local level feedback loops, PLGP fostered communication between activities with the public, private, and civil society sectors. As PLGP incubated structures like the CAPs, it simultaneously built capacity at the newly constituted municipalities to develop structures for integrating citizens into planning, budgeting, and other decision-making processes. Similarly, with the private sector, PLGP cultivated possible investors in service delivery and infrastructure, while building municipal capacity to stimulate private sector investment through LED strategies, business enabling guides, and zoning for commercial activity.

3. PROJECT MANAGEMENT: Cultivating trust with local partners through clearly articulated packages of assistance allowed for ample opportunity to make them the protagonists. PLGP worked effectively with multiple municipalities with an agreed framework, which expressed the project’s mutual commitment, clearly outlined areas of responsibility, and facilitated cooperation. The team worked intensively with 17 partner municipalities and often shared its findings with all 61 municipalities. PLGP worked with them to solve practical problems, in such areas as urban planning, economic development, water system management, and property tax collection. There were ample opportunities for peer-to-peer exchange to generate a shared understanding of common issues.

4. DECENTRALIZATION STRATEGY: Effort invested in brokering broad agreement on the government’s vision for advancing the decentralization process made it possible for PLGP subsequently to prioritize its assistance and remain in sync with the GoA. In July 2015 the Council of Ministers adopted a new National Strategy for Decentralization and Local Governance, the first since 1999. Adopting the new strategy was essential to advancing the decentralization process and supporting local governments in managing new functions (entrusted through TAR). The policy objectives of the strategy are fully aligned with the vision of the government’s overall National Strategy for Development and Integration 2015–2020, which addresses the social and economic development of Albania on the path to European integration. The strategy includes an Action Plan that contains over 150 detailed actions that will be implemented in three phases, the third of which PLGP supported until the end of the project. The intense consultative process of drafting the strategy, with numerous working/thematic groups, helped address political obstacles by ensuring transparency and consensus by national and local governments and by both municipal associations representing both major parties.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 52 5. CAPACITY BUILDING: Decentralization and effective local governance require institutional strengthening and individual skill-building at both the national and local levels. The relative success of the decentralization process was a result of the GoA’s and donor community’s commitment to building the capacity at both the national and local levels. In 2013 the GoA had very limited capacities (only a Minister of State for Local Issues and his advisor). PLGP provided intensive support to MoSLI through its long-term staff and STTA to help them become operational and expand their visibility and outreach efforts. While the minister had a small staff, he played a key role in the TAR initiative. In September 2013 the MoUD was created and entrusted with responsibilities for urban planning and development, housing, legalization of land ownership, and informal settlements, and the ministry became an important partner in coordinating capacity building assistance for the new municipalities. PLGP likely would have experienced narrower and less comprehensive impacts of training and technical assistance without a national-level partner invested in quality and coordination. Donor-supported projects were important to supporting municipalities in implementing decentralization reforms and improved service delivery. A major complement to PLGP in capacity building efforts, in 2014, a multi-donor funded project, the Support for Territorial Administrative Reform Project (STAR), was launched, and, in 2015, international donors agreed to fund a follow-on to STAR. STAR aimed to enhance the efficiency and quality of local public services to citizens, increase financial efficiency and resources for LGUs, improve the mechanisms of representative democracy, and strengthen the instruments of direct democracy. STAR 2’s overall objective was to support the consolidation of public services under the new territorial reorganization context with a view to better serving and engaging all citizens and improving efficiency, effectiveness, and accountability in the delivery of services. (As of 2020, the design of a STAR 3 has been initiated and is being discussed with relevant stakeholders for its scope and resources.)

6. ADMINISTRATIVE REFORM: Effective decentralization requires that LGUs have the population, economic activity, and capacity to manage the plethora of services being transferred from the central government to local governments. TAR was enacted in July 2014 with the adoption of the Law on Territorial Administrative Reform (Law No. 115/2014, “On Administrative-Territorial Division of Local Government Units in the Republic of Albania”). The law reduced the number of local governments from 374 to 61, to reflect international lessons and the inclination of the government that decentralization would be unwieldy and inefficient, to the point of impossible, if each small unit had to enact its own charter of services and responsibilities. While it is fundamentally true that TAR was necessary for any decentralization to occur, it still contains unrealized and problematic elements that will continue to undermine decentralized governance in Albania. The existence of a great number of small LGUs prior to 2014 increased the overall administrative cost of governing and management to the local government and made it difficult for LGUs to deliver services with high quality and effectiveness. So far, however, the GoA has not realized the potential that TAR should reduce operating costs moving from 374 to 61 LGUs. Data show that municipal spending is at or above pre-TAR levels, and one could argue municipalities are now further away from their citizens and, as a result, services are still lacking. Factors contributing to the need of and demand for TAR can still be leveraged to make the reform a more efficient system. These included: massive internal migration beginning in 1992, technological progress and greater access to information, and the growing expectations of citizens for public services. Administrative reform also remains plagued by the real and perceived use of TAR to make political gains. The GoA made an effort to achieve consensus on TAR through an all-inclusive process that involved all the political factors in the country, local communities, civil society, and international partners. Unfortunately, the political opposition, led by the Democratic Party (DP), opted not to participate in the process. The DP boycott is important because it continued to politicize the

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 53 process without complete buy-in. The DP argues that TAR in many cases was a re-division of LGUs to maximize voting constituencies in the interest of the SP-led government.

7. LEGAL FRAMEWORK: The urgency created by passing TAR before the Organic Law (creating the legal framework for decentralization) led to an overly ambitious timeline for the transfer of power to municipalities. The legal framework for decentralization, which lagged behind TAR, was an urgent need for the National Strategy to be effective. A new Organic Law was required to harmonize Albania’s local government legal framework with TAR and to confirm the authority of the 61 newly created local governments. Without the new Organic Law, the municipalities’ responsibilities and the resources to serve their citizens better would be out of sync with their new territory. A separate and more detailed policy initiative was required to align the new territories at the local level with the responsibilities and resources that corresponded with the strategy. In December 2015 the Parliament enacted a new Law on Local Self-Governance (Organic Law), which governs the roles and responsibilities of LGUs. The elimination of “shared functions” under the new Organic Law lessens confusion and vagueness. Greater clarity is achieved with the delineation of “own” functions and “delegated” functions. The strength of the legal framework notwithstanding, its practical implementation required careful and through planning for municipalities to have a chance of executing their new responsibilities. In comparison to other countries in the region that have taken decades to implement their decentralization transitions and had the legal framework in place prior to territorial reforms, Albania enacted TAR and then followed with the legal framework, a sequence that created confusion and a chaotic process. Following the passage of the law, new responsibilities in preschool education, fire protection, environment, forestry, and irrigation were devolved to municipalities. To pay for these new functions, the national government added about ALL 6 billion, or $51.4 million, into the transfer system. As a result, local government revenue as a share of total public revenue increased from 9.8 to 11.8 percent between 2015 and 2016, and as a share of GDP from 2.6 to 3.2 percent. These devolved functions were financed by Specific (conditional) Transfers for a transitory period of up to three years, until December 31, 2018. Municipalities were not ready to take on the newly devolved functions when TAR consolidated the Administrative Units, and the decentralization legal framework went far in putting significant additional responsibilities on local governments without the necessary revenues and training to take on these functions. PLGP contributed to creating a measured and prioritized approach to enacting all the important elements of the Organic Law, testing and providing feedback on different transferred competencies. Among these provisions: definition of the role of the municipal council in monitoring and controlling the performance of the municipal administration, while also strengthening the public accountability of councilors; unique status to the mayor as the only public official in Albania directly elected by the citizens; structure of the Administrative Units, with the mayor responsible to appoint and dismiss the administrators of the Administrative Units; responsibility to appoint and dismiss the members of the bodies governing the municipality-owned companies and the directors of enterprises and institutions controlled by the municipality; council responsibility to approve the municipal organizational structure and the number of employees and the salary levels for each civil service position; gender equality promotion; and intergovernmental transfers “set as a fixed percentage against sustainable public revenues, as defined in the law governing local finances, and shall be distributed according to the formula set by law.”

8. FISCAL DECENTRALIZATION: The GoA was able to identify and adopt solutions to the challenge of fiscal decentralization by modeling concrete lessons from Western Balkan neighbors, international best practices, and expert-led quantitative studies. While competencies for LGUs without resources would have otherwise tanked the National Strategy, PLGP was able to lobby for positive policy change through white papers, regional peer

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 54 workshops, and annual fiscal indicator reports. This led to increases to the Unconditional Grant and improved predictability and transparency. Fiscal decentralization is often the weakest dimension of the decentralization process. Local governments in Albania have lacked the fiscal capacity to improve public services and to promote and nurture LED. Local governments have historically been hampered by inadequate transfers from the central government and from restraints imposed on borrowing and on various revenue generating options. PLGP anticipated this and provided the GoA with adequate and tailored evidence to consider and develop the right fiscal decentralization approach. Following the enactment of TAR, Albania moved quickly to increase intergovernmental transfers. A new formula for the allocation of Unconditional Grants was adopted in October 2015 for use in the GoA’s 2016 budget. While the 2016 Unconditional Grant was not funded at the level recommended by PLGP and USAID, the new formula promotes fairness and equity with the use of accurate financial information to support evidence-based decision making. However, the Ministry of Finance’s imposition of “hold harmless” provisions on the application of the new formula preserves some of the bias of the old formula against populated urban areas. The comprehensive LGFL was a major milestone in implementing the National Strategy that requires continued adjustments and improvements. While the law is a step in the right direction, the central GoA is still not ready to establish a fiscal cadaster due to lack of political will, competing interests, and missing infrastructure. LGUs are still not receiving the promised revenues from the GoA given they are not collecting property taxes at the national level. PLGP established local property registers, which allows LGUs to collect property taxes without having to wait for the GoA. On April 27, 2017, Parliament approved the country’s first-ever comprehensive LGFL. The law provides a more logical and efficient framework for local taxing powers, intergovernmental transfers, local borrowing, PFM, and intergovernmental dialogue. With the approval of this law, local government revenues for 2017 increased substantially over 2016 revenues. The law stabilized and increased municipal revenues by: i) anchoring the size of the Unconditional Grant at 1 percent of GDP; ii) giving municipalities a 2 percent share of the PIT generated on their territories; and iii) expanding their share of the Vehicle Tax from 18 to 25 percent. Most important, the law addresses some of the major weaknesses of the intergovernmental finance system in Albania: underfunding and downward instability of the Unconditional Grant; the unpredictability of conditional grants, the absence of clear rules and responsibilities regarding the definition and amendment of local revenue sources, the lack of PIT sharing, the insufficient pool of shared taxes, the efficient and effective management of scarce public financial resources, and the management of fiscal distress and insolvency. The provisions of the LGFL helped increase local government autonomy, strengthen local governments, and create preconditions for more and better local public services. Informing the drafting of the LGFL was a February 2016 regional peer learning and knowledge sharing workshop, “Best Practices in Local Government Finance Legislation: The South-East Europe Experience and the Challenges Facing Albania.” Experts and policy makers from six countries in the region discussed the challenges that they have face and their approach to and legal framework for local government finance. While the GoA has made great progress in fiscal decentralization, increased efforts need to be made by all parties to push the MoF to adopt a more consistent approach to local borrowing, OSRs, and a robust property tax system (see Section 6).

9. TERRITORIAL PLANNING: PLGP-facilitated local consultative processes and national policy development improved local governance by addressing decades of uncontrolled development through improved planning laws, legislation, and local instruments. Albania is trending in the right direction with improved territorial planning, which previously undermined faith in local governance because development was indiscriminate, allowed through patronage, environmentally irresponsible, and disrespectful of citizens’ access to public space. LGUs

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 55 are now mandated to ensure broad citizen participation and public consultations in designing and approving GLTPs and LDPs. Following the June 2015 local elections, the GoA initiated the process to create GLTPs for newly consolidated municipalities as required by law. GLTPs became a comprehensive, strategic instrument that articulates both a municipality’s vision for its future development and a set of strategies, projects, and regulations for achieving that vision. Each GLTP integrates many different interests and competing demands for resources and addresses a wide range of matters, such as environmental protections, land use, infrastructure investment, LED, and more. In late December 2016 Albania’s NTC achieved an important milestone when it gave its stamp of approval to the country’s first five GLTPs—all of which municipalities prepared with technical assistance from PLGP. In 2020 60 of 61 municipalities (Kamza remains) have prepared GLTPs that have been approved. This is a great achievement considering that in 2013 only 5 percent of the territory of Albania was covered with planning instruments. However, a pertinent challenge remains the implementation of planning instruments. In a land use planning benchmarking report some overarching challenges can be identified, including financial capacities to support the implementation of projects and institutional and human capacities for the preparation of LDPs, project proposals, funding proposals, feasibility studies, and FILD applications. In supporting the development and execution of GLTPs, PLGP learned specific lessons that may be useful in future efforts to advance planning: • Participatory planning continues to be a challenge at the local level. Municipalities find it difficult to build processes that are open, transparent, and effective in engaging with the local stakeholders. LDPs continue to be prepared behind closed doors and do not leave opportunities for the community to contribute in the urban development and management of their area. • Legal changes to the territorial planning and territorial development bylaws have been ad hoc and often created confusion. • Municipalities find it difficult to implement their Strategic Environmental Assessment measures. They are not able to monitor or implement appropriate measures. • PLGP supported capacity building at the central level through the NTPA and the MoUD. However, with the institutional changes introduced at the central level in 2017, with the abolishment of the MoUD and planning going under the MoIE, territorial planning seems to have lost its importance at the national level, being included in a big ministry with a huge portfolio and competences. Also, with the November 2019 earthquake and the 2020 pandemic, attention has shifted toward reconstruction and away from planning.

10. INTERGOVERNMENTAL CONSULTATION AND COMMUNICATION: The creation of Central/Local Government Consultative Council has provided a needed mechanism to counter political partisanship and the absence of consistent communication between officials of local governments and central government institutions. The CC, first convened by the MoSLI in January 2017, was created with the active support of PLGP and the Council of Europe and was sanctioned by the Council of Ministers. It provides a non-partisan forum between central and local government officials and is Albania’s first formal structure obliging the central government to consult with local government authorities on policies, laws, and other matters affecting local governance. The council is a key element of local government reform and an indication of an improved climate of cooperation between central and local authorities in Albania. An outgrowth of TAR and the 2015 Decentralization Strategy, the creation of the CC was mandated by the 2016 Organic Law as a means of ensuring proper implementation of decentralization reforms, particularly in the area of local government finance. The council will play a very important role in guiding the implementation of the LGFL and in overseeing complementary efforts to strengthen local government tax powers. The CC had success early in addressing issues of shared concern and building a spirit of collaboration between levels of government. Laws and decisions have been vetted

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 56 and approved by the council as mandated by law, ensuring necessary checks and balances. In 2020, with the entire government (national and local) controlled by the SP, the council is perceived as less inclusive/participatory and co-opted by the MoI/GoA.

11. CITIZEN PARTICIPATION: Since the transition to democracy in Albania, LGUs and citizens have come to understand the importance of participation in local decision making. Initiatives that offer transparency and collaboration among community stakeholders are showing great promise to strengthen governance and bring about more open government. The community structures initiative is a novelty for local governance following the TAR, particularly in the urban areas, and it presents a new governing mentality focusing on citizens and re-shaping their role in co- governance and in the community. To date, the LSGL has regulated the consultative processes with citizens and community structures like CAPs, and most municipalities have established similar models in response to the law. Although the CAP model has proven to be an effective mechanism to enhance civic engagement, there have been challenges along the way. A CAP’s ability to function in an efficient and effective manner depends on many factors, such as municipal commitment to working with these civic mechanisms and robust civic engagement responses. While the use of CAPs has been encouraged through legislative requirements, soliciting ongoing local officials’ commitment on this inclusive instrument has been challenging in many cases. Also, the absence of civic society actors, lack of trust on good governance practices, and general sense of community in Albania has sometimes resulted in reluctance to embrace innovative civic engagement mechanisms from the side of citizens. Efforts must continue to strengthen existing CAPs and to replicate the model in municipalities across Albania. CAP mechanisms should be maintained as a lasting legacy and be replicated as a national best practice by all Albanian LGUs. The same applies for the CBSs, a methodology effectively used in numerous municipalities to give citizens a voice in decision making and priority setting. While PLGP was successful with CBSs, the implementation of the CBS process faced various challenges. The project’s work focused on building relationships and trust between local stakeholders, and throughout the years, the team faced a lack of understanding on the side of citizens of local governance and ways how to influence it. In some cases, citizens were reluctant to evaluate government services, either fearing retribution from authorities or lacking trust that they could influence potential improvements. Sometimes the CBS process raised expectations on demands that could not be fulfilled due to lack of funds, suggesting a good balance between community demands and service providers’ ability to provide and how the two sides can support each other to improve services. Given the nascent stage of citizen participation, these initiatives will require the continued nurturing of Albanian and international actors.

12. LOCAL ECONOMIC DEVELOPMENT: Assistance and support will be required by local governments if they are to play a meaningful role in LED. Most Albanian municipalities are just beginning to become more active in stimulating LED, creating jobs, and attracting investment. Albanian local governments have traditionally not played an important role in promoting LED. LED and municipal engagement with the private sector are very new concepts for most Albanian municipalities. Local governments have now been given explicit authority, and the responsibility, for economic development. LED requires political leadership and the building of local capacity. It requires that the community as a whole, including traditionally marginalized populations, is represented in the LED process. Some promising trends are emerging to enhance LED: • Many mayors are providing the leadership required to remove the barriers that have excluded certain populations (women, youth, Roma, and Egyptians) from the social, economic, and political mainstream. Mayors of Fier, Berat, Elbasan, and Lushnja have welcomed marginalized groups, especially Roma communities, and vulnerable women. They have offered specific support

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 57 by explaining local procedures, listening to their daily concerns, and supporting their businesses development. These municipalities’ employees are closely cooperating with these EDAC members in conducting various LED activities with local communities. • EDACs are demonstrating the potential to strengthen and institutionalize private sector engagement in many municipalities. However, the sustainability and effectiveness of EDACs will require both political commitment and technical assistance to institutionalize these bodies within a municipality’s organization. • Mayors are making some progress in improving the enabling and regulatory environment for businesses by making them aware of available assistance and ensuring that the development process is streamlined and transparent. • Public and private initiatives are showing the promise to economically empower women by generating employment opportunities and promoting social entrepreneurship. In six partner municipalities of Bulqiza, Cerrik, Dibra, Kamza, Librazhd, and Pogradec, PLGP successfully advocated for and succeeded in achieving municipal councils’ approvals for a reduction in tariffs for new businesses managed by girls and women and those started by individuals under the age of 25 (regardless of gender). Qualifying businesses received a reduction in local tariffs of 20–50 percent (depending on the municipality) for the first year.

13. PREVENTING AND COUNTERING VIOLENT EXTREMISM: Local-Level Lessons • Violent extremism is driven by a variety of factors that must be understood at the local level before designing activities to address them. The mapping assessment of partner municipalities showed that violent extremism in Albania has many roots. Factors include relative deprivation, belonging to an ethnic minority, and effects of social and political changes in Albania over the last 29 years since Communism. Push factors, such as social exclusion, marginalization, societal discrimination, endemic corruption, and impunity for well-connected elites and broader cultural threats, have fueled the violent extremism environment. Additionally, pull factors, such as the existence of unmet expectations and needs from the government or municipality and the existence of violent extremism groups with attractive objectives and radical institutions/venues place a real challenge on the country. • P/CVE legal and structural improvements are needed. As a recent phenomenon, the concept of violent extremism is not articulated in the basic laws governing the work of municipalities. Extremism and its prevention are included in the strategic documents (including the National Strategy to Counter Violent Extremism); however, they do not indicate specific tasks LGUs should implement. There is a scarcity of dedicated human resources. The total number of the employees in six PLGP partner municipalities is 2,584; however, no part-time or full-time employees are specifically mandated to work on PVE, even though these areas are considered as hotspots of violent extremism. The topic of PVE is nuanced and crosscutting; without a concerted, focused effort, it risks falling through the cracks or becoming blurred to the point of inefficiency. • P/CVE efforts must be guided by a well-regulated local mechanism, a need not currently met by the local security councils. The two years of PGLP’s experience in establishing and supporting LPSCs in four partner municipalities have shown that the current operational system of the security councils is far from effective, both in terms of general safety and in the prevention of radicalization and violent extremism. Although LPSCs have the potential to operate as crosscutting, whole-of-society entities when properly developed and sustained, they should not be misconstrued at present as the lynchpin for a referral mechanism on the topic of radicalization and P/CVE efforts. Their current dependence on donor instigation and lack of legal support leave them vulnerable to the “box-checking” model of establishment without regard to operational sustainability.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 58 • A significant investment in building trust with local P/CVE partners is vital to ensuring that communication is open and effective, both for educating people about P/CVE and for learning from the locals about the specific challenges in their communities. Local actors are eager to learn about P/CVE, especially when it has affected them, but they often demonstrate reluctance to speak about their challenges. Almost all attendees in 22 training sessions conducted by PLGP found the training relevant and useful. The need for more training and information was a common request during the entire process. Despite the variety of techniques used to empower the audience, there is still reluctance among attendants to speak publicly and accept the existence of the “virus” in the communities.

14. PREVENTING AND COUNTERING VIOLENT EXTREMISM: National-Level Lessons • PLGP recommendations on P/CVE referral mechanism are not absorbed properly. As a policy-making body, the CVE Center introduced a policy paper to examine the current situation as it relates to PVE, provide an overview of the weaknesses in present practices, and present recommendations for the initiation of joint process to develop a CVE referral mechanism where individual cases are referred, assessed, and discussed. Neither the center nor the MoI provided official comment on PLGP’s suggestions, leaving the topic of selection of P/CVE referral mechanism unsolved. • The donor community remains willing to collaborate and share experiences, but donor coordination remains a shortfall and lacks transparency. PLGP facilitated the first donor coordination meeting and instituted a tracking tool for coordination in the form of a donor coordination spreadsheet for P/CVE. However, the CVE Center elected to implement a biannual coordination meeting (as opposed to the recommended quarterly schedule) and has not been consistent in maintaining the accuracy of the spreadsheet or communicating ongoing projects of interest between relevant parties. Although donors pushed for increased coordination themselves, the CVE Center has yet to step into the role of truly acting as a touchpoint for all donors (and subsequent implementers). Perhaps due to lack of capacity and staffing, much of the donor coordination remains largely self-directed and informal within the community of practice itself.

15. PREVENTING AND COUNTERING VIOLENT EXTREMISM: Regional-Level Lessons • Through cross-border activities at the regional level, PLGP observed that violent extremism thrives on deficits of cross-border collaboration. PLGP, in cooperation with the municipalities of Pogradec, Librazhd, Dibra, and Bulqiza and the communes of Strugë and Dibra e Madhe of North Macedonia, organized three workshops. For the first time, border municipalities and CSOs had the opportunity to share good practices, lessons learned, and discussed on the next steps for improved and sustainable cooperation among municipalities and CSOs in order to better address the drivers of radicalization and violent extremism. The meetings served also to share information and discuss solutions to concrete domestic violence cases that remained unsolved due to shortcomings in cross-border collaboration.

16. WOMEN’S ECONOMIC EMPOWERMENT: Local-Level Lessons • Conducting GSVCAs at the local level can change perceptions of women’s economic contributions, improve livelihoods of women who were already productive but without commensurate compensation, and alter the dynamics surrounding the male leadership status quo in rural areas and small communities. PLGP’s small-scale activities highlighted how interventions in different value chains can empower women and provide opportunities for sustainable self- employment and increased incomes. Interventions including the WSBP in Kamza; MAPs in Bulqiza, Cerrik, and Dibra; traditional food in Dibra and Pogradec; and honey in Librazhd and Pogradec created jobs, valued women’s unpaid work and translated it to income, improved the value chains and created the path for sustainability in the years to come. PLGP’s Handbook for Practitioners of GSVCA and the Policy Improvement Document at the Central and Local Level,

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 59 in tandem with the case studies presented from the communities above, provide practitioners with the tools needed to apply GSVCA across the country and focus on the value chains that have real potential, not only in terms of LED but also in gender equality and WEE. • Local leaders, while supporting WEE and LED activities, have not acknowledged the importance of valuing unpaid women’s daily work especially in agriculture and/or creation of self- employment opportunities for women and poor families. These interventions and activities should be further supported by local and central government. LGUs should conduct GSVCAs, prepare and approve a periodical plan on interventions with their municipal councils, and write project proposals and apply for funds to GoA and donors. To ensure sustainability and improve value chains, meetings between value chain stakeholders (women/farmers and producers, traders, decision makers, value chain supporting factors, etc.) should be organized on a periodic basis and provide timely support. WEE activities still remain a challenge but in same time show real impact in people’s lives, empower women not only economically but also domestically by transforming them into decision makers, and improve social and living conditions of women and their families—especially marginalized and vulnerable women and youth. • Value chain interventions should be designed and implemented over a 12–24- months-long period at a minimum. Implementing ambitious activities to improve inclusion and empowerment of women and the value chain over the short-term, even with intensive trainings and manuals, can leave gaps and negatively impact value chains, which are vulnerable to many factors. For example, considering the positive results and the income generated by women beneficiaries of MAPs activities in 2020, other farmers will follow and replicate the model in the years to come. With limited or no experts or stakeholders to follow up with cultivation, harvest, and post-harvest techniques and to offer advice to new farmers on good agriculture practices, over-production, low quality, and even contaminated products could be the result. This would damage the value chain to the point of abandonment from the export markets and negatively impact the women who succeeded in the first year.

17. WOMEN’S ECONOMIC EMPOWERMENT: National-Level Lessons • Gender equality should be legally advanced at the local level by local government policies, services, and staff responsible for gender issues. Although GEOs are assigned in all partner municipalities, their position within the local structure is weak, they lack training and understanding of their functions, and they are at times faced with a lack of receptiveness from their colleagues to their role in mainstreaming gender awareness into all units and services of the municipality. • Gender equality is not usually comfortable for women and men to discuss without concerted attention to prepare them for the process. Face-to-face meetings are far more effective than tele-based ones, especially when working groups have not matured and require open debate and learning. Mainstreaming gender equality into processes of local governance across sectors and institutions requires a phase to bring staff and institutions together and start to think and work as a team. This requires a gradual process in which representatives and working group members embrace new ways of thinking, working, and operating. Communication and cooperation across previously siloed departments are essential prerequisites for coordination on gender-responsive planning and decision making. • A deficit in sex- and age-disaggregated data persists in information-gathering protocols. One of the hindrances facing PLGP at the outset was a lack of sex- and age- disaggregated data for relevant information points or tracked within P/CVE and WPS initiatives. Through gender mainstreaming capacity building and peer-to-peer trainings, PLGP has instituted this understanding at the CVE Center as it pertains to their updated activity and reporting plans moving forward. Sex- and age-disaggregation is a legal requirement for state institutions. However, at a national level, this practice has yet to be accepted as a norm across line ministries and other relevant actors. In addition, the transmission process of data from the local to national

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 60 levels has many gaps, from the re-aggregation of previously disaggregated data to the lack of proper technological infrastructure for communication. Until the structural failings are addressed and capacity for gathering and relaying this data is increased, this will continue to be an impeding factor in data-driven interventions. • Communication and support between the P/CVE and WPS communities of practice have yet to be fully realized. Many nations recognize the overlap and interoperability of P/CVE and WPS as a larger part of an inclusive security plan. In Albania, the struggles facing these two complementary segments are inverse in their approaches. For the WPS community of practice, a strong grassroots movement has carried the realization of many initiatives, while they are impeded by a lack of reporting or buy-in at the national level. P/CVE activities, on the other hand, began with a supported top-down approach whose formalization and institutionalization won recognition across the region. However, when it comes to commitment at the local level, the CVE Center and other implementers are confronted with a reluctance to admit to or address the issue, although there is support for increased training, support, and measures to do so. Partnering these two realms of action would strengthen both. In reality, many of the same players at the national level sit on committees and influence both policies. Although PLGP has made this apparent to both contacts in the CVE Center and those dealing directly with the WPS National Action Plan, the relationship is still in its nascent stages. By drawing attention to the areas of complementary action, the WPS and P/CVE initiatives could move forward with support from both the local and national levels and act as a best practice learning model for the region in inclusive security.

18. WOMEN’S ECONOMIC EMPOWERMENT: Regional-Level Lessons • Human security groups across the region recognize the need for tailored solutions with local ownership and greater involvement of men and boys. Through a regional roundtable event, PLGP brought together actors recognized as regional leaders in WPS. Practitioners discussed the best practices and challenges faced in communities across the Western Balkans. As an outcome, it was agreed that for WPS interventions to succeed, there must be buy-in from the local community. Utilizing critical thinking and an open, respectful dialogue process were crucial to the success of P/CVE activities. Having the voices of beneficiaries throughout all stages of project design and then carrying the project forward as sustainable trusted sources within their communities gives longevity and impact to interventions after projects close. In addition, the burden of placing women as the sole focus of these family- minded interventions is a short-sighted, potentially alienating approach. All participants recognized the need for additional training and support to be given to men and boys to increase their capacity for conflict resolution, generate models of positive masculinity, and break generational, cultural norms.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 61 6.0 RECOMMENDATIONS AND NEXT STEPS IN LOCAL GOVERNANCE

6.1 SUGGESTIONS FOR FUTURE PROGRAMS AND SUPPORT FOR DECENTRALIZATION Much work remains in implementing decentralization actions set forth in the updated Strategy for Decentralization. The main weaknesses to further decentralization progress are weak local government capacity, consultative mechanisms lacking both practice and institutionalization, nascent civic engagement, ad hoc LED, sporadic delivery of services, un-institutionalized territorial planning, restricted local borrowing, anemic property tax collection, resistance in daily life to the equality of women and men, and shyness around efforts to build community resiliency through WPS and PVE. Follow-on activities and continued investment are required to ensure continued progress and to protect the advances made in the decentralization process. Since 1992, USAID has supported efforts to ensure Albania’s development, stability, and integration into Europe. Over that time, Albania has made notable improvements in a number of areas, including rule of law and good governance. USAID has been the lead provider of support and assistance to strengthen local governance and advance the decentralization process. The USG is also urged to advocate for other donors and international organizations to invest in Albania’s local governance sector. The EU Delegation will play an important leadership role in the decentralization process, and the effective implementation of adopted reforms will be seen as a positive factor in Albania’s movement forward in the EU accession process. USAID offers the first successful examples of how to embed WPS and PVE in concrete terms within the local governance/public administration reform discourse. This is also highly relevant in terms of post-COVID recovery. What is needed are replication, expansion, and scaling of these tested models, approaches, and methodologies. Continuation of PLGP engagement would be instrumental for gradual integration of WPS and resilience concerns into common decentralization efforts with far-reaching positive impact on the quality of governance, service delivery, and the life of women and men citizens. Detailed actions to advance decentralization and strengthen local governance are described in the Ministry of Interior’s Updated Action Plan for the National Crosscutting Strategy for Decentralization and Local Governance (2015–2020). More specifically, related to fiscal decentralization, the MoFE has approved an updated PFM Strategy (2019–2022). An updated Action Plan for the Decentralization Strategy envisions 146 activities to be implemented by 16 or more GoA ministries or institutions, 10 or more donor-financed projects or activities, 3 local government associations, and various CSOs. Below are specific suggestions for follow-on activities based upon PLGP’s experience and an understanding of the needs and priorities of local governments and key GoA ministries: Fiscal Decentralization • Support the MoFE in implementing the LGFL. Particular assistance is required in drafting the bylaws, rules, and regulations necessary for the effective implantation of the law. Specific attention must be paid to the obligatory application of gender-responsive budgeting at the local level. • Support the MoFE in creating a fiscal cadaster as necessary to strengthen property tax administration and collection. Provide the technical assistance required to make the necessary policy decisions and implement a robust value-based property tax system. • Provide the technical assistance required to remove the barriers inhibiting the GoA from sharing taxes, including the PIT and Vehicle Tax, with local governments. Necessary work includes the

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 62 creation of a database and establishment of a methodology to distribute shared taxes on an origin basis. • Provide assistance to the GoA to ensure that the RDF is better aligned with the principles of decentralization and the needs of local governments. Support the GoA to ensure RDF operations are aligned with EU gender equality requirements (i.e., EU gender law, EU gender policy, and guidance documents such as the Charter of Equality of Women and Men in Local Life). • Provide assistance to local governments in improving their own revenue collection rates (typically collected at a rate of 65–75 percent of their original budgets). Technical assistance is needed to address these structural problems in revenue collection and administration; clarify with the GoA the legal framework for taxes and fees, enhance local capacity to use ICT tools, build human resource capacity, and strengthen the culture related to taxes and accountability in the use of public funds. • Provide assistance to the GoA and local governments to loosen restrictions on local borrowing, recognizing that local borrowing is essential to fund needed infrastructure and capital improvements. Assist in creating a municipal credit rating system and a municipal bond bank. • Provide local governments and local government associations with the assistance necessary to advocate for adequate resources and address the historical underfunding of local governments. Particularly important are advocacy for increasing the Unconditional Grant and monitoring the allocation of the grant. It is critical that the GoA continues its commitment to honor the LGFL requirement that the Unconditional Grant be anchored at 1 percent of the GDP. • Provide assistance necessary to help LGUs better understand the cost of all actions that they plan and undertake and how to determine these. PLGP has faced difficulties in helping LGUs to cost LGAPs due to the fact that usually (and erroneously) LGUs consider many activities as “no- cost” activities, while in reality they are not. In addition, considering the difficulties faced as a result of civil emergencies (earthquakes and COVID-19), LGUs must be prepared to plan, mobilize, and allocate the required amounts in response to such situations, in particular to respond to the needs of women and other vulnerable groups and to deal with the consequences of such emergency situations. • Both advocacy support and technical assistance are required to ensure that the newly decentralized functions are adequately funded. While funds for the staff working in these functions have been transferred, the GoA has not transferred funds for operational costs to implement these functions. Nor has the GoA transferred funds for capital improvements related to the new functions. Most immediate are issues related to the transfer of responsibility for preschools to local governments and to the transfer of funds for essential positions and services obligatory by law, including for key specialists such as GEOs, Local Coordinators for Domestic Violence, and Units for Needs Assessment and Case Referral in each Administrative Unit. • Provide assistance to local governments to implement PFM reforms and improve their practices in accordance with new guidelines, procedures, and formats. Support local governments in utilizing the adopted standards to identify, monitor, and resolve “fiscal distress.” • Provide technical support to LGUs for conducting gender-responsive budgeting. • Provide technical assistance and guidance to the MoFE for monitoring the execution of gender- responsive budgeting at LGU level. • Provide technical assistance to national and local governments in implementing the recommendations provided by USAID for the financing of preschool education.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 63 Territorial Planning • Provide training for national and local officials in implementing GLTPs, including technical assistance in the preparation of Local Detailed Plans (LDPs). • Provide technical assistance in the application of FILDs authorized by the 2014 Law on Territorial Planning and Development. FILDs include conditioned building intensity, tax increment financing, business improvement districts, betterment fees, and special assessment districts and are designed to secure a contribution from private developers toward the cost of required infrastructure. • Assist multi-disciplinary teams of municipal officials to collaborate with private sector stakeholders to study the technical and economic feasibility of a proposed project, weigh the costs and benefits of different development options, and select the preferred option. • Assist the Municipality of Kamza in preparing a GLTP (Kamza is the only Albanian municipality without a GLTP). • Evaluate investments in infrastructure to ensure that public spaces are safe and reduce risks of violence for all citizens (women, men, boys, girls), including those from marginalized communities. Local Economic Development • Scale up the PLGP experience by supporting all municipalities in creating and/or sustaining EDACs in an effort to strengthen and institutionalize private sector engagement. EDACs provide an ongoing opportunity for private sector actors to provide input and recommendations for municipal policies and priorities related to LED, including improving the business enabling environment and supporting the recruitment of new businesses and retention/expansion of existing businesses. • Support municipalities in preparing “Doing Business” guides. The guides, tailored for individual municipalities, are a resource to starting and growing a business in the municipality. Business leaders are made aware of the municipal regulatory process and informed of the resources and assistance available to them. • Replicate PLGP’s efforts to provide technical assistance to municipalities in assessing their institutional framework and current capacities to promote competitiveness and job creation. Offer recommendations to build LED capacity. Coach and mentor local officials for both the strategic planning and implementation of LED activities. Specific focus on women’s economic inclusion/empowerment would enable the implementation of many recommendations from international documents/conventions such as the Convention on the Elimination of all Forms of Discrimination Against Women and Beijing +25. • Support the GoA and international donors in creating a Special Investment Fund designed to stimulate LED resulting in the creation of jobs and attraction of investment. In addition to specific focus on women and youth, it will be important to change the way employment offices and the state employment service see and plan the creation of jobs, which definitely needs to be based on labor market needs assessments specific to every LGU. Local Government Service Delivery • Ensure that the essential elements of equitable access to quality service delivery, women’s empowerment, and gender equality are included in both national-level strategies and local government service delivery.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 64 • Install in all municipalities systems to improve municipal performance, accountability, transparency, and ability to involve citizens in decision making. Systems should include TAISs, FAISs, and GIS platforms. • Assist local governments in developing and employing methodologies, including CBSs, to assess the satisfaction of citizens with municipal services. Particular attention should be given to the citizens of Administrative Units. • Assist local governments in fulfilling their responsibilities in delivering water and wastewater services. Areas of assistance should include effective oversight of utilities, preparation/ implementation of Five-Year Business Plans, and preparation/implementation of plans to provide water and wastewater services to the recently consolidated Administrative Units and reduce NRW. • Train local officials in the utilization of QSIP methodology. It is particularly important that QSIP Action Plans be prepared and implemented for the new functions transferred to local governments (preschools, fire protection, irrigation and drainage, counseling service to farmers, and managing/maintaining forests, pastures, and rural roads). • Support the replication of OSSs in all municipalities to deliver more efficient and responsive administrative services to citizens. While the STAR 2 project has succeeded in establishing OSSs in most municipalities, assistance is needed in making the OSSs fully operational in the Administrative Units. Assistance is also needed to make these OSSs more gender sensitive. • Support the GoA in preparing and adopting National Minimum Standards for local services. Provide training for national and local officials in performance management and monitoring. Specific focus must be paid to the actual delivery of social services. There have been many attempts to do it, and the legal framework foresees many options (Social Pact, Services Basket, Units of Needs Assessment and Case Referral, etc.); however, these options have not been sufficiently implemented as needed and/or not put into practice. • Provide technical and material support to LGUs and Administrative Units to ensure that essential governance processes can proceed online and that services that are essential for women and men citizens can be provided and accessed by those in need, including during emergency situations. Citizen Participation • Support and sustain existing CAPs and assist local governments in creating CAPs in all municipalities. • Assist all municipalities in using the CBS methodology to assess citizen’s satisfaction with services and engage citizens in priority setting and decision making. • Pay specific attention to the participation of women, as well as of women and men from marginalized communities, in all CAPs, advisory boards, etc. Youth participation on the part of both genders is also very important. • Assist all municipalities in conducting gender-responsive participatory budgeting in line with regulations. Community Resiliency • Build on the success of USAID’s PVE efforts by conducting gender-sensitive PVE Mapping Assessments in additional municipalities.

• Conduct additional P/CVE trainings for local officials in the other 40 LGUs that were not part of PLGP’s assistance.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 65 • Support the creation and formalization of additional Youth Boards in each municipality as mandated by the new Law on Youth (75/2019). • Support the creation and formalization of additional Local Security Councils. • Replicate the GSVCAs conducted in six LGUs. • Expand WEE activities beyond PLGP WPS municipalities by supporting women in the production, distribution, and marketing of products (e.g., MAPs, honey, traditional foods, and crafts). • Support operationalizing the gender equality mechanisms at the LGU level through facilitating establishment of GEOs (as foreseen by law) and through on-the-job coaching and mentoring of GEOs and Municipal Gender Committees. • Provide technical support for increasing the gender-responsiveness of local governance across LGU responsibilities through adoption of the European Charter of Equality of Women and Men in Local Life, development of the respective LGAPs, and appropriate costing and allocation of required resources. • Facilitate the linking of eligible Albanian LGUs with EU structures promoting gender- responsive/citizen-oriented governance (CEMR, Network of Associations of Local Authorities of South-East Europe [NALAS]). • Support community resilience/peaceful communities by working with men and boys as well as with religious communities and introduce the practice of Mother Schools and Father Schools. • Enhance efforts for gender equality and reducing violence against women by equipping female and male adolescents for responsible adulthood by expanding the use of Peace Corps methodologies like GLOW and BLAST. • Support women’s visibility in social and cultural life, for example by building on (and replicating) PLGP’s “Her Story in the History of X Community” activity as a means of strengthening inter- generational understanding and identifying and promoting positive role models for women and girls. Other Suggestions • Provide technical assistance to the CC, particularly in developing policy papers and undertaking an analysis of policies related to local governance, including policies focusing on women’s empowerment and gender equality. • Support Albania’s accession to the EU by supporting good governance initiatives and assisting the GoA and local governments in addressing a deficiency noted by the European Commission, “substantial efforts are needed to increase the administrative capacity of local government units to carry out their expanded capacities and provide them the necessary financial resources.” Albania has a low “success rate” in absorbing existing opportunities for EU funding. As Albania gets closer to EU accession, it is critical that a serious capacity building program is initiated. • Maintain efforts to intentionally engage the Peace Corps/Albania and PCVs in local governance and civic engagement activities upon their return to Albania post-COVID-19. • Support the GoA in harmonizing its legislation on the gender mechanism at the LGU level and in establishing the gender equality structure/function at the LGU level. A note on ensuring continued progress in the decentralization process. The termination of USAID assistance in the local governance sector will leave a void for others to fill. This reality is highlighted in the European Commission’s Albania 2019 Report, “The TAR needs to be further consolidated as part of the wider decentralization agenda. The new legislation affecting local

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 66 government is not yet fully harmonized and implemented. Most notably, while municipalities have been attributed larger powers, the adequacy of financial resources available to LGUs are at risk. LGUs’ fiscal autonomy is also at risk.” New actions are required to upgrade local public services, enhance the transparency and accountability of local government, and increase the participation of citizens in the local government decision-making process. The GoA’s commitment to decentralization is open to debate. Further exacerbating this challenge is the exit of long-time donors supporting decentralization. The MoI is currently responsible for the coordination of the GoA’s efforts for decentralized governance and public administration reform at the local level. The MoI, with the support of PLGP, has updated the Action Plan of the National Crosscutting Strategy for Decentralization and Local Governance by expanding its scope and extending its timeline. The MoI is also taking measures to strengthen its structures dealing with local governance by establishing a general directorate that will incorporate the ASLG and the Local Finance Function of the MoFE, despite concerns raised by the donor community in Albania.

6.2 SUSTAINABILITY MEASURES AND FUTURE ACTIVITIES WITH STAKEHOLDERS To sustain PLGP interventions with lasting impact at the national and local levels, PLGP has been committed to coordination with partners and stakeholders and dissemination of best practices. PLGP’s Annual Work Plans always included a section on “scaling up” that detailed the forthcoming year’s activities to expand pilots, models, and products that would impact Albania beyond its partner municipalities. Working through the GoA, national partners, and other donors or USAID implementing partners, PLGP’s work in several areas has been institutionalized and replicated as national best practices by all LGUs. Below are some examples of PLGP interventions embraced by other donors and stakeholders and future actions that will be carried forward beyond the life of the project. COMPONENT 1 (HISTORIC): SUPPORT THE GOA’S WORK TO IMPLEMENT EFFECTIVE GOVERNMENT DECENTRALIZATION POLICIES AND LEGISLATION

In February 2013 PLGP prepared a Handbook for Municipal/Communal Councilors as a guiding source to local elected officials in exercising their public office. The handbook acted inter alia as a fundamental tool to mayors, administrative staff, and local and central governments, as well as to external parties interested in local government affairs in Albania. It focused on six major areas: an overview of the European Charter of Local Self- Cover of the Handbook for Local Officials. Government; sub-sectoral local responsibilities and economic development; local asset management; territorial planning; integrated solid waste management; and local government associations, lobbying, and advocacy. Future action: Widely hailed as a key document for new councilors, Bashkia te Forta (BtF), funded by the Swiss Development Cooperation, has replicated the handbook over the past year (2019–2020) in councilor trainings throughout Albania and will continue to use it in the coming years. Based on PLGP’s partnership to conduct the first-ever PEFA assessments at the local level in Albania in 2016, SECO designed and is currently implementing their Strengthening Subnational PFM in Albania: 2018–2023 project. PLGP worked closely with the new project, sharing experiences and lessons learned and providing assistance to local governments in collection and administration of local taxes. The PFM project builds off the PEFA assessments, findings, and lessons learned in identifying strengths and weaknesses of the existing system for managing local public financial

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 67 resources and in introducing internationally recognized best practices. Future action: PLGP is pleased to see its work continuing through the SECO PFM project and their implementing partners GFA Consulting Group and Albanian Europartners over the coming years. COMPONENT 1: SUPPORT GREATER PREDICTABILITY, TRANSPARENCY, AND REVENUE POTENTIAL OF LOCAL GOVERNMENT FINANCES

As a result of the preschool education system finance reform initiated and supported by PLGP, the World Bank approved $10 million in financing to the GoA to enhance gender equality in access to economic opportunities. Future action: As a result of this new program, the GoA has committed to: • Increasing incentives for women with children to join the labor market by reducing the student- teacher ratio in preschools in several municipalities, which will raise the quality of preschool; and • Increasing the gender-responsive budgeting programs that enable the policy program to be adjusted to reflect women’s evolving role in the economy.

COMPONENT 2: IMPROVE MUNICIPAL MANAGEMENT SYSTEMS FOR DELIVERY OF KEY LOCAL SERVICES

Sharing PLGP expertise and experiences in the implementation of OSSs/Service Delivery Centers with the STAR 2 Project being implemented by the GoA/United Nations Development Program (UNDP), STAR 2 has replicated PLGP’s OSS model in 50 municipalities throughout Albania. Future action: STAR 2 has also considered replicating and rolling out Citizen Portals, modeled on those of PLGP, in approximately 30 municipalities going forward. A unique collaboration between PLGP and Peace Corps/Albania proved to be a classic win-win scenario. The collaboration provided the USAID project with outreach and a community presence, while providing PCVs with a structure and framework within which to work. PCVs were active participants in CAPs, Youth Boards, and municipal trainings. Through PLGP trainings, PCVs acquired knowledge of the roles, responsibilities, issues, and challenges of local governance in Albania. Specific projects and activities that PCVs were engaged in included: territorial planning, preparation of project proposals, property tax administration, citizen satisfaction surveys, and activities designed to combat violent extremism. Future action: While PCVs were evacuated in March 2020, this model of collaboration should be embraced by USAID and other donors going forward. COMPONENT 3 (HISTORIC): IMPROVE LOCAL GOVERNMENT MANAGEMENT AND OVERSIGHT OF PUBLICLY OWNED UTILITIES, IN ACCORDANCE WITH EUROPEAN UNION STANDARDS

PLGP’s efforts to forge partnerships on water issues with successful collaboration with the MoIE played a key advisory role in driving the National Approach, Methodology, and Action Plan to Reduce NRW, and operational cooperation and proactive collaboration with donors (KfW/World Bank/Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH [GIZ]/EU) and water sector institutional programs created synergies in the implementation of Utility Performance Improvement Actions Plans. Future action: The NRW Action Plan is the guiding document in creating long-term sustainable interventions in the water sector, led by the MoIE and supported by donors including KfW/GIZ.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 68 COMPONENT 3A AND B: STRENGTHEN CIVIC ENGAGEMENT TO PREVENT/COUNTER VIOLENT EXTREMISM (AND WOMEN, PEACE, AND SECURITY)

During the last year of the project, PLGP encouraged the GoA to formally adopt and disseminate PLGP-produced tools, guides, and methodologies, namely the P/CVE Guide, brochure, and trainings; the P/CVE Mapping Assessments; the GSVCA Handbook and white paper; and other tools for applying the finance laws around pre-school education. PLGP promoted the GSVCA Handbook and white paper at a public event at the Ministry of Agriculture with labor and economic thought leaders from government, academic, and private institutions who can speak to the merits of including gender considerations in studying and improving value chains. Future action: As a result of this activity, numerous donors have been keen to learn more and carry forward this methodology—the first gender-sensitive analysis of its kind in Albania. For example, PLGP’s WEE work with the MAPs value chain is already seen as a great success, and PLGP has been proactive in promoting this with other donors and implementers to ensure long-term sustainability. RISI Albania, a Swiss-funded project, is following the same model in the Municipality of Kolonja; UN Women was awarded an EU grant that will replicate and follow up on PLGP’s work with MAPs and traditional foods value chains. GIZ will implement its new “As an Alternative on Drug Cultivation” project in many municipalities and has consulted with PLGP on its GSVCA/WEE best practices.

UN Women and GIZ representatives following one of PLGP’s WEE activities in Cerrik. PLGP’s recent Regional Comparative Survey on Best Practices in the Financing of Local Government Responsibilities in the Social Sector, prepared by PLGP and NALAS, will be carried forward with future action by NALAS, BtF, and Albanian Association of Local Autonomy to ensure Albanian local governments received the necessary financing for these vital functions of education, health, and social services. The support of the NALAS fiscal decentralization task force and senior experts in local governance and education finance from Southeast European countries will only strengthen the effort to promote the sustainability of this effort.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 69 Working at the national level to improve the legal and financing framework for the GEO function, PLPG has consulted closely with the EU Delegation, Swedish International Development Cooperation Agency, Organization for Security and Co-operation in Europe, UN Women, UNDP, UNFPA, and the STAR 2 and Leave No One Behind projects in preparing the GEO Functional Assessment and a White Paper/Policy Brief on GEO at the local level for lobbying and advocacy with high-level decision makers. The report and policy paper act as bridge-builders, communicating local realities to national policymakers. By considering the structural, legal, procedural, and financial aspects, this holistic approach provides a framework for Members of Parliament and line ministries to engage constructively with those at White Paper/Policy Brief on GEO at the local level, the donor community, and international organizations local level. to advance sustainable gender equality efforts. Future action: This body of information marks a starting point for representatives to support government structures that effectively address the needs of both women and men and reinforce post-COVID-19 recovery through community resiliency. The concrete steps as delineated in the GEO white paper will be tabled at the next meeting of 61 mayors in September in an effort to operationalize this function to its fullest potential. Based on the success of PLGP’s P/CVE trainings for local officials in 21 municipalities, PLGP conducted a ToT/handover activity with representatives from the CVE Center, line ministries, CSOs, and the donor community in an effort to ensure long-term sustainability. Along with sharing good practices, skills, and knowledge, participants received the full CVE training package of tools and resources for replication purposes including a summary report that provides lessons learned and recommended next steps. Future action: Ensuring that institutional knowledge is transferred is crucial to safeguarding the capacity building efforts gained and providing opportunities for scaling beyond the life of the project. Considering the interest and the requests from local stakeholders, there is a strong demand to continue the training in 40 remaining municipalities to help increase P/CVE awareness countrywide and ensure a sustainable group of experts trained to deal with individuals at risk of radicalization. Almost 3,000 copies of the PLGP P/CVE Guide for Local Leaders are now in use by municipal employees, LPSC members, police officers, teachers, health care workers, CSOs, and religious communities. The guide is the main publication introduced and distributed by the CVE Center during the field meetings conducted countrywide. Through the ToT organized with the CVE Center (above), the guide has now reached national institutions and donor community and will be disseminated to all 61 municipalities. Future action: PLGP has printed an additional 500 copies of the guide to be disseminated through future trainings and CVE Center activities. After in-depth examination of LPSCs and fragilities noticed in terms of legal, organizational, and structural regulations, PLGP prepared the P/CVE policy paper, with addenda, containing recommendations to the CVE Center and highlighting opportunities for strengthening LPSCs through legal and municipal structural improvements and/or revision of the current model. Future action: The CVE Center intends to advance these recommendations through a working group established by the MoI. In addition to establishing the first community of practice meeting, PLGP supported the creation and population of a donor coordination spreadsheet and established a calendar for future donor coordination meetings. Implementing these tools will allow the center to reap more beneficial impacts from donor projects and collaborations moving forward and safeguard the sustainability of efforts completed under PLGP. Future action: The CVE Center will convene the next donor coordination meeting in September, at which time the coordination spreadsheet will be disseminated to ensure clarity and reduce redundancies in donor assistance.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 70 Throughout PLGP’s work, the CVE Center has been a willing and collaborative partner. As the point of contact for donors and implementers at the local, national, and regional levels, the CVE Center holds the potential to scale or continue to amplify the work of PLGP. To that end, PLGP conducted efforts to institutionalize joint P/CVE training activities, provided hand-off reporting on the status of our Youth Board activities, and transferred institutional memory in the form of women’s economic activities. Future action: With this knowledge now housed in the CVE Center, coupled with the center’s increased activity in donor coordination, PLGP’s lessons learned have a life beyond the project end. PLGP’s success in establishing Youth Boards has been seen as a best practice that other donors are carrying forward. Over the years, PLGP has invested in building capacities of municipal staff to recognize youth issues and engage with the Youth Boards in their communities. PLGP partner municipalities are currently working with Youth Boards, thus recognizing the contributions and value of their youth and showcasing Youth Boards as a best practice in other donor-supported activities and avenues. Future action: Going forward, the EU-funded Municipalities for Europe Project is supporting the Bulqiza and Cerrik Youth Boards in organizing summer camps; the Swiss-funded Leviz Albania Project is implementing a project with youth from the Pogradec Youth Board in monitoring the municipal council’s work and performance; the Dutch-funded FLAG program is working with the Youth Board and municipality of Cerrik in implementing a CVE project (activities and support for the Youth Board, for example an outdoor gym); and the US Embassy-funded School as Community Centers Project currently being implemented in Kamza has met with and plans to integrate Youth Board members in their activities. The new Law on Youth 75/2019 enforces the creation and formalization of youth councils in each municipality and supports PLGP efforts for long-term sustainability of its interventions. From their creation, Citizen Advisory Panels have become a model to be utilized and replicated across the country. To date, the LSGL has regulated the consultative processes with citizens and community structures (like CAPs), and most municipalities have established similar models in response to the law. The GLTP consultation process in Albanian municipalities was undertaken through citizen forums, which were created on each LGU based on the CAP model, as formally requested by the MoUD. Future action: PLGP is pleased to see that CAP involvement in local governance issues continues to expand and deepen and that many CAPs established by PLGP are still functioning in their communities. UN Women initially used community-based scorecards in 2010 as a tool to involve women in local decision making and identify their specific needs and priorities, particularly during elections. Since 2015, PLGP transformed this tool into an innovative participatory, good governance, and accountability mechanism, bringing women and men together to address common issues and needs to be reflected in related local budgets and plans. Future action: Olof Palme and various CSOs are currently using CBSs effectively, and PLGP expects that the network of Albanian organizations that worked with the project will utilize this well-structured methodology going forward.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 71 7.0 ANNEXES

7.1 INDEX OF ALL REPORTS AND INFORMATION PRODUCTS PRODUCED UNDER THIS CONTRACT YEAR ONE (JANUARY–SEPTEMBER 2012).

REPORT/DELIVERABLE SUBMISSION DATE

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

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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

Success Story “New Plans Managing Urban Growth in Albania” November 2012

YEAR TWO (OCTOBER 2012–SEPTEMBER 2013)

REPORT/DELIVERABLE SUBMISSION DATE

NTPA Internal Regulations,–Albanian and English Version October 12, 2012

NTPA SOP and Code of Ethics–Albanian and English Version October 23, 2012

Success Story on National Territorial Planning November 2012

Monthly Alert Report–October 2012 November 10, 2012

Introduction to PPP December 2012

Monthly Alert Report–November 2012 December 10, 2012

Quarterly Report (October–December 2012) January 10, 2013

Detailed NTPA Job Descriptions (31 Job Descriptions) January 17, 2013

Monthly Alert Report–January 2013 February 10, 2013

Tax leaflets (produced by PLGP submitted to Paskuqan) March 2013

PPP Status in Albania March 2013

Monthly Alert Report–February 2012 March 10, 2013

Korca Water Utility 5-Year Business Plan March 29, 2013

Draft Guidelines for Conceptual Framework for GNTP April 2013

Quarterly Report (January–March 2013) April 10, 2013

Implementation Options for Albania PPP Capacity Building May 2013

Implementation Plan for PPP Training of Trainers May 2013

Recommended PPP Certificate Training Plan May 2013

Monthly Alert Report–April 2013 May 10, 2013

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Vlora Water Utility 5-Year Business Plan May 21, 2013

Lushnja Water Utility Costumer Service Operation Manual May 22, 2013

Property Registration Status in Albania June 2013

Local Borrowing Update June 2013

Monthly Alert Report–May 2013 June 10, 2013

NTPA Institutional Analysis June 11, 2013

Advanced Participation Methods Manual (English & Albanian) July 2, 2013

Quarterly Report (April–June 2013) July 10, 2013

Success Story on Citizen Advisory Panels (CAPS) July 10, 2013

Guidance on Water Utility Website Information July 16, 2013

Elbasan Water Utility 5-Year Business Plan July 19, 2013

Decentralization Recommendations on National Strategy July 24, 2013

Performance Monitoring Plan (PMP) update July 25, 2013

Terms of Reference for the Saranda GLTP July 25, 2013

Law on Local Finances–Draft July 29, 2013

Policy Paper on Options for Implementing Property Tax in Albania July 29, 2013

Local Regulation on the Development Control (prepared and approved by August 2013 Berat Municipality with the assistance of PLGP)

Monthly Alert Report–July 2013 August 10, 2013

Vlora Water Utility Public Communication Plan August 16, 2013

Procedures on Customer Complaints–Vlora August 16, 2013

Inclusive Planning in Albania–A manual for citizens and public authorities September 2013

Policy Brief: Whither Small Business Tax in Albania September 4, 2013

Three Monthly Utility Management Forms September 5, 2013

Monthly Alert Report–August 2013 September 10, 2013

Patos Water Utility Assessment Report (English & Albanian) September 13, 2013

Update to Fiscal Decentralization September 24, 2013

Korca Water Utility Costumer Service Operation Manual September 30, 2013

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 74 YEAR THREE (OCTOBER 2013–SEPTEMBER 2014)

REPORT/DELIVERABLE SUBMISSION DATE

The Request for the Initiative of the GNTP–The Conceptual Framework October 18, 2013 (Albanian and English)

Monthly Alert Report–October 2013 November 10, 2013

The Joint Action Plan between PLGP, NTPA and MoUDT November 14, 2013

Monthly Alert Report–November 2013 December 10, 2013

Policy Brief “Eliminating the Small Business Tax in Albania: Implications and January 2014 Challenges”

Quarterly Report (October–December 2013) January 2014

The letter of understanding between PLGP, NTPA and MoUDT January 24, 2014

The NTPA Institutional Restructuring (English and Albanian) January 10, 2014

Project Newsletter January 2014

Monthly Alert Report–January 2014 February 10, 2014

Vora Water and Sewage Department Assessment Report (Albanian) February 2013

The overall frame methodology of GNTP (English) February 12, 2014

The MoUDT summary of priority projects for donor support (English) February 4, 2014

The Vlora LDP on the integration of the informal settlement (Albanian) February 28, 2014

Monthly Alert Report–February 2014 March 10, 2014

Korca Supervisor Council Water Utility Oversight March 2013

The MoUDT training strategy (English) March 24, 2014

Quarterly Report (January–March 2014) April 10, 2014

Durres Water utility Business Plan April 2014

The National Policy Document on Urban Development (Albanian and April 30, 2014 English)

The Law on Territorial Planning and Development (Albanian and English) April 30, 2014

Public Officials’ Manual: Guide to European Union Policies and Directives April 2014 for Solid Waste and Wastewater

Discussion Paper: On Developing a new Crosscutting National May 2014 Decentralization and Local Government for Albania

The Scope of Work on the Analysis Phase of GNTP (English) Draft1 May 6, 2014

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Monthly Alert Report–April 2014 May 10, 2014

Monthly Alert Report–May 2014 June 10, 2014

The DCM on Uniform territorial planning instruments regulation (Albanian) June 2014 Draft

The DCM on Uniform territorial development regulation (Albanian) Draft June 2014

The DCM on model planning regulation (Albanian) Draft June 2014

The MoUDT institutional analysis (English) Draft June 2014

Quarterly Report (April–June 2014) July 2014

Guide to Municipal Funding Resources July 2014

PLGP Year Four Work Plan (October 2014–September 2015) July 2014

Monthly Alert Report–July 2014 August 10, 2014

Supervisory Council Strategic Action Plan of Berat–Kucova Water Utility August 2014

National Crosscutting Strategy for Decentralization and Local Governance September 2014

National Crosscutting Decentralization Strategy Action Plan September 2014

Statistical Brief on Albanian Local Government Finance on the eve of September 2014 territorial consolidation

The MoUDT Job Descriptions (English and Albanian, Draft) September 2014

Supervisory Council Strategic Action Plan of Durres Water Utility September 2014

YEAR FOUR (OCTOBER 2014–SEPTEMBER 2015)

REPORT/DELIVERABLE SUBMISSION DATE

Monthly Alert Report–October 2014 November 10, 2014

Implementation of the PLGP ICT–Intervention Plan Final Deliverables November 11, 2014 Summary

Monthly Alert Report–November 2014 December 10, 2014

Internal Regulations for human resource management for MoUD December 2014

Quarterly Report (October–December 2014) January 10. 2015

Design briefs for local area development in 5 municipalities January 2015

Monthly Alert Report–January 2015 February 10, 2015

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The Terms of References for 7 expertise themes for GNTP February 2015

Report on a draft vision for the GNTP February 2015

Monthly Alert Report–February 2015 March 10, 2015

Quarterly Report (January–March 2015) April 10, 2015

Snapshot: PLGP Collaboration with Peace Corps April 10, 2015

Snapshot: Fier Property Taxes as submitted to USAID on April 10 April 10, 2015

Community Liaison Structures in Albania April 2015

Monthly Alert Report–April 2015 May 10, 2015

The DCM on territory development regulations, revised and approved May 13, 2015

Assessment “Utilizing GIS to Support Municipal Tax Collection” May 2015

Monthly Alert Report–May 2015 June 10, 2015

Performance Monitoring Plan (updated) June 2015

Transition Plan of Water and Waste Water Services in Elbasan Municipality June 2015

Action Plan for the National Crosscutting Strategy for Decentralization and July 2015 Local Governance

Quarterly Report (April–June 2015) July 10, 2015

National Crosscutting Strategy for Decentralization and Local Governance July 29, 2015

The DCM on territory planning regulations, revised and approved July 29, 2015

Year Five Work Plan (October 2015–September 2016) July 30, 2015

Monthly Alert Report–July 2015 August 10, 2015

A report on the water monitoring of 5 rivers in Albania August 2015

Customer Service Operation Manuals for Durres August 2015

Monthly Alert Report–August 2015 September 10, 2015

Five Baseline Assessments on Water Supply and Sewage Systems in five September 2015 model municipalities (Elbasan, Fier, Lushnja, Berat, Kucova)

5 GIS base maps (buildings, roads, water) created for 5 model municipalities September 2015

The DCM on public space drafted September 2015

The Study on Land Development Typologies (draft) September 2015

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The territory planning and development Toolkit (draft) September 2015

Discussion paper on 5 financial instruments for land development for September 2015 MoUD

Policy Paper: Creating an Equitable, Transparent, and Predictable September 2015 Unconditional Grant Formula

Law on the Organization and Functioning of Local Governments in Albania September 2015 (Organic Law)

Customer Service Operation Manuals for Saranda September 2015

YEAR FIVE (OCTOBER 2015–SEPTEMBER 2016)

REPORT/DELIVERABLE SUBMISSION DATE

Recommendations on the 2016 annual budget law and the annexes related October 2015 to local governments and the unconditional grant

Monthly Alert Report–October 2015 November 10, 2015

Success Story: Territorial Planning Toolkit “Field Guide to the Future” November 2015

Territorial Typologies in Albania, A study for Policy-Making November 2015

Consolidated Municipal Finance Data for the period 2010-2014 November 2015

Program of the Emergent, Corrective and Preventive Management, for November 23, 2015 Water Utility of Elbasan

Monthly Alert Report–November 2015 December 10, 2015

Informative Note on the 2016 budget law and fiscal package proposals for December 2015 municipalities

Informative Note on Mayors Discretion on Local Government Finances December 2015 (prepared for USAID)

Decision of the Council of Ministers no. 1096 date 28.12.2015, “On the December 2015 approval of rules, conditions and procedures for the use and management of public space”

Success Story: Elbasan Transition Plan “Transitioning Water Services for December 2015 the Future”

Success Story: Vlora “From Informal Settlement to Mainstream December 2015 Community”

Success Story: Organic Law “Toward Stronger and More Autonomous December 2015 Local Government”

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Success Story: CAP “Taking Participatory Local Democracy to a New December 2015 Level”

Success Story: Partnering for Success December 2015

PLGP Training Activities Report December 2015

Quarterly Report (October–December 2015) January 10, 2016

Success Story: “Enhancing the Role of Public Space” January 2016

Issues to be regulated by the Budget Execution Instruction January 2016

Financial Instruments for Land Development, Policy Paper February 1, 2016

Implementation of Transfer of Development Right, Analysis and Suggestions February 8, 2016 for Korca

Monthly Alert Report–January 2016 February 10, 2016

Manual of Administrative Procedures Korca Municipality February 2016

A Profile of Municipal Finances in Albania: The need for a framework law February 2016 on Local government finances

A Survey on Local government finance legislation in South East Europe February 2016

Monthly Alert Report–February 2016 March 10, 2016

Success Story: Korca “One Stop for Citizen Services” March 2016

Success Story: Tax Administration Reform - Saving Time, Saving Money March 2016

GIS Assessment “GIS Support for Territory and Tax Register” March 2016

Proposal for the establishment of a Working Group responsible for the March 2016 development and discussion of the Law on Local Government Finances, accompanied by a document listing the key policy issues and the action plan for the development and discussion of the LGFL

Comments and recommendations on the revision of the Law on the March 2016 Management of the Budgetary System in the Republic of Albania (Also known as the Organic Budget Law).

Territorial Development Strategy for the Municipality of Fier April 1, 2016

Territorial Development Strategy for the Municipality of Lushnja April 1, 2016

Territorial Development Strategy for the Municipality of Kucova April 1, 2016

Territorial Development Strategy for the Municipality of Berat April 1, 2016

Territorial Development Strategy for the Municipality of Elbasan April 1, 2016

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Quarterly Report (January–March 2016) April 10, 2016

Success Story: Anti-Corruption Planning and Development April 2016

Practical Guide to understand and implement the Water and Sewage Sector April 2016 Reform approved with DCM 63, date 27.01.2016 “On the reorganization of operators that offer water service supply, collection, and treatment of waste waters.”

Monthly Alert Report–April 2016 May 10, 2016

Report on conduct and results of regional briefings for local government May 20, 2016 and water utility officials

Water and Sewage Transition Plan for the Municipality of Lushnja following May 19, 2016 the Territorial Administrative Reform and Water Sector Reform

Water and Sewage Transition Plan for the Municipality of Fier following the May 27, 2016 Territorial Administrative Reform and Water Sector Reform

Policy Paper “Key Recommendation on Local Governance Finance Law” May 2016

Open Discussion Draft on the Law on Local Government Finances May/June 2016

Quarterly Report (April–June 2016) July 10, 2016

Year 6 Work Plan July 30, 2016

Monthly Alert Report–July 2016 August 10, 2016

Policy paper: recommendations for more efficient local borrowing process September 2016 in Albania

Statistical Brief: Local Government Finances in Albania 2002 - 2015 September 2016

Water and Sewage Transition Plan for the Municipality of Patos following September 29, 2016 the Territorial Administrative Reform and Water Sector Reform

General Local Territory Plan for the Municipality of Fier (text and maps) September 30, 2016

General Local Territory Plan for the Municipality of Lushnja (text and maps) September 30, 2016

General Local Territory Plan for the Municipality of Kucova (text and maps) September 30, 2016

General Local Territory Plan for the Municipality of Berat (text and maps) September 30, 2016

Regulation of the GLTP for the Municipality of Fier September 30, 2016

Regulation of the GLTP for the Municipality of Lushnja September 30, 2016

Regulation of the GLTP for the Municipality of Kucova September 30, 2016

Regulation of the GLTP for the Municipality of Berat September 30, 2016

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Capital Investment Plan for the Municipality of Fier September 30, 2016

Capital Investment Plan for the Municipality of Lushnja September 30, 2016

Capital Investment Plan for the Municipality of Berat September 30, 2016

Capital Investment Plan for the Municipality of Kucova September 30, 2016

Strategic Environmental Assessment Report for GLTP of Fier September 30, 2016

Strategic Environmental Assessment Report for GLTP of Lushnja September 30, 2016

Strategic Environmental Assessment Report for GLTP of Kucova September 30, 2016

Strategic Environmental Assessment Report for GLTP of Berat September 30, 2016

YEAR SIX (OCTOBER 2016–SEPTEMBER 2017)

REPORT/DELIVERABLE SUBMISSION DATE

Recommendations on the 2017 annual budget law and the annexes related October 2016 to local governments and the unconditional grant

Manual on Administrative procedures for Fier Municipality October 2016

Manual on Administrative procedures for Berat Municipality October 2016

Monthly Alert Report–October 2016 November 10, 2016

Manual on Administrative procedures for Saranda Municipality December 2016

Resource Document on Local Detailed Plans and Financial Instruments for December 1, 2016 Land Development

Monthly Alert Report–November 2016 December 10, 2016

General Local Territory Plan of Kucova December 30, 2016

General Local Territory Plan of Fier December 30, 2016

General Local Territory Plan of Lushnja December 30, 2016

General Local Territory Plan of Berat December 30, 2016

General Local Territory Plan of Elbasan December 30, 2016

Strategic Environmental Assessment of Kucova December 30, 2016

Strategic Environmental Assessment of Fier December 30, 2016

Strategic Environmental Assessment of Lushnja December 30, 2016

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Strategic Environmental Assessment of Berat December 30, 2016

Strategic Environmental Assessment of Elbasan December 30, 2016

Capital Investment Plan of Kucova December 30, 2016

Capital Investment Plan of Fier December 30, 2016

Capital Investment Plan of Lushnja December 30, 2016

Capital Investment Plan of Berat December 30, 2016

Capital Investment Plan of Elbasan December 30, 2016

Regulation of GLTP of Kucova December 30, 2016

Regulation of GLTP of Fier December 30, 2016

Regulation of GLTP of Lushnja December 30, 2016

Regulation of GLTP of Berat December 30, 2016

Regulation of GLTP of Elbasan December 30, 2016

Quarterly Report (October–December 2016) January 10, 2017

Lushnja Water Supply and Sewerage Company, Business Plan 2016–2020 January 22, 2017 (English & Albanian)

Fier Water Supply and Sewerage Company, Business Plan 2016–2020 January 26, 2017 (English & Albanian)

Patos Water Supply and Sewerage Company, Business Plan 2017–2021 January 26, 2017 (English & Albanian)

Monthly Alert Report: January 2017 February 10, 2017

Set of Tax Brochures: Fiscal Package in a format for citizens and business February 2017 community of the Municipality of Korca

Set of Tax Brochures: Fiscal Package in a format for citizens and business February 2017 community of the Municipality of Elbasan

Set of Tax Brochures: Fiscal Package in a format for citizens and business February 2017 community of the Municipality of Berat

Monthly Alert Report: February 2017 March 10, 2017

Minister’s Guideline on the Implementation Procedures for GLTPs March 16, 2017

Public Expenditure and Financial Accountability Assessment Report, March 29, 2017 Municipality of Fier (English and Albanian)

Public Expenditure and Financial Accountability Assessment Report, March 29, 2017 Municipality of Kucova (English and Albanian)

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Handbook to guide municipalities in preparing the Manual on March 2017 Administrative Procedures and building One-Stop-Shop

Set of Tax Brochures: Fiscal Package in a format for citizens and business March 2017 community of the Municipality of Saranda

Final CBS Report (1st and 2nd round) (English & Albanian) March 2017

Set of Tax Brochures: Fiscal Package in a format for citizens and business March 2017 community of the Municipality of Fier

Water Utility Administrative Council Two-Day Training Workshop to 13 March 30, 2017 PLGP partners/model municipalities and 4 more utilities subscribed as SHUKALB interested Utilities

Lushnja Water Utility and Municipality in a joint awareness campaign for April 2017 water supply and sewerage service delivery; 5,500 leaflets and 12 posters

Fier Water Utility and Municipality in a joint awareness campaign for water April 2017 supply and sewerage service delivery; 2,900 leaflets and 50 posters

Patos Water Utility and Municipality in a joint awareness campaign for April 2017 water supply and sewerage service delivery; 3,200 leaflets and 7 posters

Vlore Water Utility and Municipality in a joint awareness campaign for April 2017 water supply and sewerage service delivery; 16,800 leaflets and 7 posters

Elbasan Water Utility and Municipality in a joint awareness campaign for April 2017 water supply and sewerage service delivery; 700 leaflets and 9 posters

Quarterly Report (January–March 2017) April 10, 2017

Law No. 68 2017 On Local Self-Government Finance April 27, 2017

Justification for the approval of Law No. 68/2017, On Local Self- April 27, 2017 Government Finance

Information Note on the financial effects of the draft-Law on Local Self- April 23, 2017 Government Finance (English and Albanian)

Citizens’ Guide to the Budget of the Municipality of Fier May 2, 2017

Citizens’ Guide to the Budget of the Municipality of Kucova May 2, 2017

Monthly Alert Report: April 2017 May 10, 2017

Statistical Brief Albanian Local Government Finance 2017 (English and June 1, 2017 Albanian)

A Practical Assessment of the Public Finance Management and Internal June 1, 2017 Audit Practices and Systems in 8 Selected Municipalities

CBS Report Lezha (English & Albanian) June 2017

CBS Report Patos (English & Albanian) June 2017

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CBS Report Roskovec (English & Albanian) June 2017

CBS Report Saranda (English & Albanian) June 2017

CBS Report Vora (English & Albanian) June 2017

Vlora Water Supply and Sewerage Company, Business Plan 2017–2021 July 21, 2017 (English & Albanian)

Tirana Water Supply and Sewerage Company, Business Plan 2017–2021 July 26, 2017 (English & Albanian)

Policy Paper Creating a Unified System for Reporting LGU Finance August 1, 2017 Indicators

Monthly Alert Report: July 2017 August 10, 2017

Monthly Alert Report: August 2017 September 10, 2017

Manual on Administrative procedures for Roskovec Municipality September 2017

YEAR SEVEN (OCTOBER 2017–SEPTEMBER 2018)

REPORT/DELIVERABLE SUBMISSION DATE

Policy Note on Personal Income Tax Sharing October 2017

Year 2018 Annual Budget Law November 2017

Guide to Municipal Funding Resources (updated version) December 2017

Year 2018 Law on the Local Tax System December 2017

Explanatory Note on the 2018 Annual Budget Law and the Law on the December 2017 Local Tax System

Technical Procedures Manual on Identification of Illegal Connections January 2018

Water Utility Customer Service Verification Forms February 2018

Employ Survey Report for Patos Municipality (QSIP) February 2018

Citizen Satisfaction Survey Report for Patos Municipality (QSIP) February 2018

Municipality of Berat: ToR for urban design competition for one LDP in February 2018 Berat (extension of boulevard)

Municipality of Lushnja: ToR for urban design competition for LDP (Multi- February 2018 modal terminal area)

MoFE’s Instruction No. 6/1, dated 28/02/2018, “On the Preparation of the February 2018 Local Budget”

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 84 REPORT/DELIVERABLE SUBMISSION DATE

Employ Survey Report for the Municipality of Fier (QSIP) March 2018

Citizen Satisfaction Survey Report for the Municipality of Fier (QSIP) March 2018

Local Economic Development Advisory Council description, structure, March 2018 roles, and responsibilities

Assessment of the Local Economic Development Capacity for LGUs April 2018

Business Plan Update and Tariff Adjustment Model for the Water Utility of April 2018 Fier

Business Plan Update and Tariff Adjustment Model for the Water Utility of April 2018 Lushnja

P/CVE Mappings Bulqiza April 2018

P/CVE Mappings Cerrik April 2018

Guideline on Tax Administrative Appealing at Local Level May 2018

Fier Feasibility Study for the Livestock Market June 2018

Employ Survey Report for the Municipality of Kucova (QSIP) June 2018

Citizen Satisfaction Survey Report for the Municipality Kucova (QSIP) June 2018

Policy Paper: Financing the New Own Functions of Local Governments - June 2018 Moving from Conditional Specific Transfers to General Revenues

Current Assessment of irrigation and drainage functions as a new June 2018 responsibility to Elbasan as one of PLGP Model Municipalities

Report on Current Asset Management Practices for the Water Utility of June 2018 Tirana

Irrigation and Drainage Action Plans for the Municipality of Elbasan (QSIP) July 2018

Municipality of Fier: Feasibility Study for the City Center LDP July 2018

Municipality of Fier: LDP Report and Maps for the City Center July 2018

Municipality of Elbasan: Feasibility Study for the LDP and the Multi-modal July 2018 Terminal

Municipality of Elbasan: LDP Report and Maps for the multi-modal terminal July 2018 structural unit

Baseline Assessment on Non-Revenue Water in Albania July 2018

Conceptual Approach/ToR for Implementing Integrated Asset Management Practices (including Bid Standard Forms and Quantities) for the Water July 2018 Utility of Tirana

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 85 REPORT/DELIVERABLE SUBMISSION DATE

Municipality of Berat: Design Project for the Irrigation Channel of August 2018 Mbreshtani (Main channel and Starove Branch)

Municipality of Fier: Design Project for the Livestock Market August 2018

Municipality of Elbasan: Feasibility Study for the LDP and the Multi-modal August 2018 Terminal

Irrigation and Drainage Action Plans for the Municipality of Fier (QSIP) August 2018

Current Assessment of Irrigation and Drainage Functions as a new responsibility to the Municipality of Fier as one of PLGP Model August 2018 Municipalities

Quarterly Performance Analysis Models for the Water Utilities of Lushnja August 2018 & Elbasan

Irrigation and Drainage Action Plans for Municipality of Patos (QSIP) September 2018

Short-Term Action Plan to Reduce Non-Revenue Water in Albania September 2018

Current Assessment of Irrigation and Drainage Functions as a new responsibility to the Municipality of Patos as one of PLGP Model September 2018 Municipalities

Business Plan and Performance Improvement Program for the Water Utility September 2018 of Elbasan

Manual of the Water Utility Debt Procedures September 2018

Citizens’ guides to the municipal budgets of the municipalities of Elbasan, September 2018 Berat, and Patos

Database simulating the financial consequences of the policy options September 2018 reforming the preschool education finance system;

Municipality of Tirana: Feasibility Study for the Middle Ring Road of Tirana September 2018 Seg II

Municipality of Tirana: 5 LDPs, Reports, and Maps for the Middle Ring Road September 2018 Seg II

Benchmarking Report on the Implementation of GLTPs and Its Effects on September 2018 local Economic Development (Final Draft)

Update of Toolkit on Financial Instruments for Land Development (First September 2018 Draft)

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 86 YEAR EIGHT (OCTOBER 2018–SEPTEMBER 2019)

REPORT/DELIVERABLE SUBMISSION DATE

Database and Simulator for Improved the Financing System for Preschool October 2018 Education

Feasibility Study for the Middle Ring Road of Tirana Seg II: Municipality of October 2018 Tirana

5 LDPs, reports and maps for the Middle Ring Road Seg II: Municipality of October 2018 Tirana

6 Short Term Action Plan Developed for Non-Revenue Water Reduction Oct.–Dec. 2018 in Albania

Annual Budget Law for 2019 November 2018

Annex 1 of the Annual Budget Law for 2019: The Allocation of the November 2018 Unconditional Grant for Municipalities

Recommendations for amendments to the law “On the Local Tax System” November 2018

LDP for structural unit 1/92 in the city center: Municipality of Lushnja November 2018

LDP, report and map for structural unit 4/9 in Kuçova: Municipality of November 2018 Kuçova

Recommendations for amendments to the law “On Tax Procedures in the December 2018 Republic of Albania”

Instruction of the Minister of Finance and Economy, “On the Execution of December 2018 the 2019 Budget Law”

Development of GIS Platform for 2 WU of Fier and Elbasan December 2018

Action Plan on Irrigation and Drainage Service, Municipality of Kucova January 2019

Instruction of the Minister of Finance and Economy, “On the Preparation of February 2019 the Medium-Term Budget Program 2020–2022”

Tax Public Outreach for Vora (1 brochure and 1 leaflet) February 2019

Tax Public Outreach for Kamza (1 brochure and 1 leaflet) February 2019

PLGP Newsletter No. 11 February 2019

Guide “Doing Business in Berat” March 2019

Program of Asset Management System for the Elbasan March 2019

Update the Financial Model and Business Plan for the WU of Vlora March 2019

Benchmarking Report on the Implementation of GLTPs and Its Effects on March 2019 Local Economic Development

Gender-Sensitive P/CVE Mappings of Kamza March 2019

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 87 REPORT/DELIVERABLE SUBMISSION DATE

Gender-Sensitive P/CVE Mappings of Librazhd March 2019

Gender-Sensitive P/CVE Mappings of Pogradec March 2019

Gender-Sensitive P/CVE Mappings of Dibra March 2019

Toolkit on the Preparation of LDPs and FILDs March 2019

Action Plan on Irrigation and Drainage Service, Municipality of Lushnja April 2019

CBS Report for Municipality of Patos April 2019

Debt Recovery Guideline for WU of Lushnja April 2019

Leaflet to Support the Awareness Campaign, Municipality of Elbasan April 2019

YEAR NINE (OCTOBER 2019–SEPTEMBER 2020)

REPORT/DELIVERABLE SUBMISSION DATE

CVE Brochure for Citizen Engagement on P/CVE October 2019

CVE Guide for Local Government Officials December 2019

PLGP Quarterly Report Oct–Dec 2019 January 2020

GSVCA Training Manual 05.02.2020–Albanian February 2020

GSVCA Training Manual 05.02.2020–English February 2020

Youth Survey Report Dibra February 2020

Youth Survey Report Bulqiza February 2020

Youth Survey Report Librazhd February 2020

Manual Cultivation of CIANI February 2020

Manual Cultivation of Kalendula February 2020

Manual Cultivation of Mellaga February 2020

PLGP Early Childhood Education in Albania at the Intersection of Municipal March 2020 Finance and Governance–English

PLGP Early Childhood Education in Albania at the Intersection of Municipal March 2020 Finance and Governance–Albanian

Youth Survey Report Kamza March 2020

Youth Survey Report Cerrik March 2020

Youth Survey Report Pogradec March 2020

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 88 REPORT/DELIVERABLE SUBMISSION DATE

European Charter for Equality Bulqiza, undersigned March 2020

GSVCA Briefing Paper–English March 2020

GSVCA Briefing Paper–Albanian March 2020

Guide How to do Business, Cerrik March 2020

European Charter for Equality Cerrik, undersigned April 2020

European Charter for Equality Librazhd, undersigned April 2020

PLGP Quarterly Report Jan–Mar 2020 April 2020

Policy Paper on PVE Mechanisms April 2020

Manual on Beekeeping 2020 April 2020

European Charter for Equality Pogradec, undersigned May 2020

European Charter for Equality Kamza undersigned May 2020

European Charter for Equality Dibra, undersigned June 2020

Preventing/Countering Violent Extremism (P/CVE) Training for Local June 2020 Officials–Summary Report

Traditional Food Recipes Brochure June 2020

Policy Paper: Strengthening Community Resilience to Prevent Violent July 2020 Extremism: Lessons Learned from a Local Governance Perspective in Six Municipalities (English)

PLGP and NALAS Regional Comparative Survey: The Regulation and July 2020 Financing of Local Government Responsibilities in the Social Sector–English

PLGP and NALAS Regional Comparative Survey: The Regulation and July 2020 Financing of Local Government Responsibilities in the Social Sector– Albanian Annex to the Policy Paper on PVE Mechanisms: LPSC Protocol July 2020 Youth Study on (Social) Media Use and P/CVE Issues July 2020

PLGP Quarterly Report Apr–Jun 2020 July 2020

Report: Gender Equality Officers at Local Level: Condicio Sine Qua Non July 2020 for Gender Mainstreaming in Local Government Units (English)

PCVE Training for Local Officials Summary Report–Albanian July 2020

Action Plan for Gender Equality September 2020–September 2023, Cerrik– July 2020 Albanian

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 89 REPORT/DELIVERABLE SUBMISSION DATE

Local Gender Action Plan September 2020–September 2023, Cerrik– July 2020 English

Action Plan for Gender Equality September 2020–September 2023, July 2020 Pogradec–Albanian

Action Plan for Gender Equality September 2020–September 2023, July 2020 Librazhd–Albanian

Action Plan for Gender Equality September 2020–September 2023, July 2020 Bulqiza–Albanian

Action Plan for Gender Equality September 2020–September 2023, Dibra– July 2020 Albanian

White Paper: Financing Local Government Responsibilities in the Social August 2020 Sector–English

White Paper: Gender Equality Officers at Local Level: Condicio Sine Qua August 2020 Non for Gender Mainstreaming in Local Government Units (English)

White Paper: Gender Equality Officers at Local Level: Condicio Sine Qua August 2020 Non for Gender Mainstreaming in Local Government Units (Albanian)

Analytical Document–Gender Equality Employees in the Local Level: A August 2020 Necessity for Gender Integration in the Local Government Units (English)

Policy Paper: Strengthening Community Resilience to Prevent Violent August 2020 Extremism: Lessons Learned from a Local Governance Perspective in Six Municipalities (Albanian)

PLGP White Paper: Financing Local Government Responsibilities in the September 2020 Social Sector–Albanian

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 90 7.2 SUCCESS STORIES

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 90

Citizens Advisory Panels Established Since the transition to democracy in Albania, local government units (LGUs) and citizens have understood the importance of participation in local decision-making. There have been efforts to encourage civic engagement through the creation of citizen boards, especially in the largest cities. But, even in these cases, these groups were neither well-structured nor had broad representation.

In order to ensure inclusive participation and to create a formal dialogue and consultative process between citizens and LGUs, PLGP has established 15 Citizen Advisory Panels (CAPs) across numerous municipalities in Albania. CAPs are unique tools for strengthening civic engagement and encouraging (From left upper row) Patos CAP bottom-up contributions. They represent the voice of the community, serving Coordinator, Ervis Ruçaj, Peace Corps as advocates and providing impartial advice and recommendations to volunteer, Maria Lee, Mayor of Patos, Mayors and City Councils. Rajmonda Balilaj, USAID/Albania Mission Director, Jim Barnhart, and Approximately 300 citizens have volunteered to become part of Citizen PLGP COP, Peter Clavelle, have a Advisory Panels since their creation. Members come from all walks of life picture taken with school students during representing a broad range of socio-economic, cultural, and demographic the Clean-Up Day organized by CAP in the International Earth Day. backgrounds. CAPs include women, youth, minorities, and community leaders from local organizations, businesses, universities, and the media. CAPs promote the sharing of ideas for improving local governance through participatory decision-making on issues of budgeting, annual fiscal planning, and municipal priorities and projects.

From November 2012 through May 2013, PLGP conducted launching workshops in each of the municipalities to discuss future strategies for empowering civic engagement and strengthening the interaction between local government and citizenry. PLGP has received additional requests to CAP coordinators in a picture with the create CAPs in other non-partner LGUs, the latest example of which is PLGP Civic Engagement Specialist, Burrel Municipality, previously supported by the US Embassy Small Grant Laureta Memo, (second in the first row) Program and PLGP COP, Peter Clavelle, (fourth from the left) after the Advanced CAPs are guided by a set of principles outlining their roles and Participatory Method training is responsibilities and each of them has designated a Coordinator to act as a complete. group facilitator and manage collaboration with the local government. Several CAPs have met repeatedly to discuss various issues including public services, local economic development strategies, and budget preparation. CAPs in Kucova, Saranda, Patos and Vora Municipalities have been formalized through the signing of MoUs between the CAP and the Mayor.

CAPs will help improve the efficiency, transparency and accountability of local government operations. PLGP will continue to support their active involvement by providing leadership training on Advanced Participatory Methods and a civil engagement conference by the end of 2013.

1

National Territorial Planning

Before During the last two decades, Albania has experienced unmanaged urban development in cities and in key areas that are undergoing rapid growth. Territorial Planning has therefore become essential in order to manage the urban development, contribute to sustainable development and boost the economic potential of the country at both national and local level.

In April 2009, a new Territorial Planning Law was adopted, introducing for the first time in Albania principles and procedures that characterize some of the best international practices in spatial planning and land management. It established View of a coaching session with the the National Territorial Planning Agency (NTPA) as the primary institution representatives of Municipality of Fier, responsible for territorial planning at central level. The Law requires the local a partner city of USAID/PLGP governments units (LGUs) to prepare their territorial plans within two years from the date of its entry into force. The implementation of the Law has been so far weak due, inter alia, to scarce capacities of LGUs and other public institutions to cope with the complex territorial planning and development issues as stipulated in the new legal provisions. During 2009 and 2010, some municipalities, with the assistance of donors and international financing institutions (USAID and World Bank) prepared their plans in compliance with the provisions of the new Territorial Planning Law and the old Urban Planning Law (currently repealed). However, the promulgation of three important implementation regulations in 2011 (prepared by NTPA and approved by the Council of Ministers) made these plans not suitable for adoption by the National Territorial Council (NTC).

After Through the Component IV of the Planning and Local Governance Project (PLGP), USAID is supporting NTPA and LGUs in territorial planning seeking to Albania's Prime Minister, Sali Berisha strengthen the capabilities of the GoA and local governments to plan and (right) and US Ambassador Alexander manage urban and regional growth. Arvizu (center) delivering remarks at the National Planning Meeting From April to October 2012, PLGP together with NTPA has been coaching eleven municipalities in adapting their territorial plans according to the regulations approved in 2011. These plans were presented at the National Planning Meeting held on November 14th 2012, organized by PLGP and NTPA. Ten municipalities, Berat, Shkodër, Korçë, Fushë-Krujë, Kamzë, Fier, Vlorë, Gjirokastër, Durrës, and Pogradec, presented the General Territorial Plans, revised with the support of USAID to comply with the new Territory Planning Law requirements. After NTPA’s review, the plans will be submitted for approval to NTC. Prime Minister Sali Berisha and U.S. Ambassador Alexander Arvizu delivered encouraging remarks in this meeting.

The expected approval of the plans by NTC shall not merely reward these appreciated efforts; instead, most importantly, it will provide room for regulated land development to take place and give a new breath to the overall economic development of the country.

USAID will continue to support the municipalities as well as NTPA, focusing on issues and areas of national importance, and on the initiation of work for drafting of General National Territorial Plan. The completion of these steps will create the premises for the preparation and approval of planning instruments by more LGUs.

2

Adoption of New Territorial Planning and Development Law

Since 2009, the planning system in Albania has been in a process of profound transformation. Efforts have been made to modernize the system and create, within the local context, instruments to better plan and manage growth and development. The transformation process has been quite challenging and has faced several obstacles; particularly the lack of willingness to embed into a new legal framework the concepts and practices for territory planning and land development. USAID’s Planning and Local Government View of a meeting organized by PLGP Project (PLGP) has contributed to this transformation with with partner city representatives to technical expertise since 2012. The most intense efforts discuss amendments to the Law on occurred during 2013-2014, when the Government of Albania Territorial Planning embarked on a new agenda for territory planning, establishing planning as one of the key priorities towards national sustainable development. The Ministry of Urban Development and Tourism and the National Territory Planning Agency, on behalf of the Government of Albania, initiated a broad technical and consultative process for the review of planning legislation in October 2013. PLGP provided intensive support to both institutions in shaping and implementing the consultative process. PLGP also worked hand in hand with the staff of the Ministry and the Agency, to revise the planning law and subsequent bylaws. A large audience of civil society and professional organizations were invited to public hearings and workshops, providing input to the technical process over a five month period. At least 300 local governments (out of a total of 373) responded to the call of GoA for feedback and consultations. Local officials and other stakeholders participated in three rounds of national meetings, while also sending written comments and suggestions. As a result, in June 2014, the GoA submitted for approval to the Parliament the law on “Territory Planning and Development”. PLGP supported the Ministry and the Agency during the parliamentary approval process, and finally the law (no. 107/2014) was approved by the Parliament on July 31st, 2014.

3

Peace Corps Volunteer in Fier Works with Municipality to

Increase Property Tax Collection The property tax is a major and stable source of local government own source revenues. The property tax collection rate is poor in Albania and improving the collection rate is clearly one of the major challenges facing both national and local officials. USAID’s Planning and Local Governance Project (PLGP), building on its property tax experience to date, continues to assist its 15 partner municipalities in improving property tax systems.

The PLGP Partner Municipality of Fier has proven to be a leader with property tax collection. In September 2014, the Municipality began implementing a new system – a GIS (Geographic Information System) technology-based system -- for improving the tax administration of immovable property. For nearly three months, 32 working groups comprised of at least two municipal employees per A local staff member of the group, were organized in the field to collect and update data – Municipality of Fier (standing) immovable properties/buildings, property owners/ users, and discusses with the Peace Corps respective tax rates – and lastly, upload it into the system. By Volunteer issues of territorial planning November, a substantial amount of immovable properties uploaded and property taxation. into the system, had received property tax bills as a result of the process. As a result the Municipality saw an increase of 260% in income from the immovable property tax for residential buildings compared to fiscal year 2013. This continues to be an ongoing project – municipal staff continue to identify, update, and upload new properties into the system while also correcting any potential double registrations. During the current fiscal year, the Municipality intends to complete the process of uploading all immovable properties into the system and to further disseminate tax bills. The collaboration continues to enhance the goals of both the Partly attributing to the success has been Graham Anderson, the USAID Planning and Local Peace Corps Volunteer (PCV) embedded in the Municipality of Fier and assisting with the project. “[Graham] is my eyes and ears on the Governance Project and Peace project” says the Municipality’s vice mayor. Having had many years Corps/Albania by working to of project management experience, Graham has played an important improve local governance and by role in tracking the daily progress of the project as well as acting as a mentor to the project team by providing different perspectives, meeting community organizations’ ultimately enhancing the planning and decision-making processes. needs for community builders. PLGP and Peace Corps/Albania have developed a unique collaboration over the past three years. PLGP works closely with Peace Corps/Albania in implementing Component 2 of the Project: local governance activities. PCVs are working in many of the 15 PLGP partner municipalities either directly embedded in the municipalities or with local NGOs in the community. They have been active in participating in PLGP trainings, Citizen Advisory Panels (CAPs), municipal trainings, etc. The collaboration is a classic win- win scenario in that it provides outreach and a community presence, while providing the PCVs with a structure and framework within which to work. The collaboration continues to enhance the goals of both PLGP and Peace Corps/Albania by working to improve local governance and by meeting community organizations’ needs for community builders.

4

Taking Participatory Local Democracy to a New Level

Four years ago, the average citizen in Albania rarely participated in local government affairs beyond voting. Today, thanks to the efforts of the USAID-funded Planning and Local Governance Project, volunteer Citizen Advisory Panels (CAPs) monitor public service delivery and municipal budgets in 15 cities. In five of these cities, the CAPs are working with the PLGP and local governments to draft comprehensive master plans, called General Local Territorial Plans. The progression of citizen empowerment in a short time from minimal participation to dealing with immediate quality-of-life issues to long- range strategic planning demonstrates not only increased competencies on the part of citizens but also a level of local Citizen Advisory Panel members actively participate democracy, social accountability, and community connectivity that is at a public hearing for a new comprehensive General unparalleled in contemporary Albania. Local Territorial Plan in Lushnja. Comprehensive planning in Albania constitutes a powerful decision- making mechanism. Technically, it involves land use and capital planning and budgeting. Politically, it must address competing interests and create a shared vision and overall development strategy for the sustainable future of a community. Add to this the fact that the number of local governments in Albania was reduced from 373 to 61 in 2015 as part of territorial reform—with new mayors, new city councils, and new laws governing municipal administration—and the task of capturing what a municipality hopes Citizens who once were to become in words and maps is truly daunting. the goals The CAPs are embracing the challenge. By law, each municipality of change have themselves must draft a comprehensive plan, and each planning process must become agents of long- include creation of a steering committee of local residents. This is not an easy effort in Albania, which has no culture of meaningful public term, strategic change. involvement. But the CAPs are well-prepared to serve the critical public participation role in the cities in which they operate.

The first round of public hearings for the comprehensive plans was recently completed in the five PLGP-supported municipalities, and the CAPs provided valuable testimony. It is clear the CAPs know the pulse of their cities and are able to communicate and clarify community needs to elected officials. They send a clear message that they are ready and able to be part of the solution.

The PLGP launched the citizen engagement process in its 15 partner cities in Albania in 2012 as a means of civically engaging people who had been conditioned into passivity by communism. The PLGP has continuously trained and supported CAP members, building capacity and confidence.

The CAPs are raising expectations of tangible results and accountability. They are positively impacting municipal processes and outcomes. And, through their involvement in long-term comprehensive planning, are now assuming a sense of responsibility for future of their communities.

5

PLGP Collaboration with Peace Corps The Planning and Local Governance Project (PLGP) and Peace Corps/Albania have developed a unique collaboration over the past three years. PLGP works closely with Peace Corps/Albania in implementing its activities and a Peace Corps Volunteer (PCV) is embedded in the project office. PCVs are working in many of the 15 PLGP partner municipalities either directly embedded in the municipalities or with local NGOs in the community. The collaboration has proven to be a classic win-win scenario in that it provides outreach and a community presence, while providing the PCVs with a structure and framework within which to work. PCVs have been active in participating in Citizen Advisory Panels (CAPs) meetings, Peace Corps volunteers in a training provided by USAID Planning and Local Governance Project in municipal trainings, and in PLGP trainings. Through PLGP trainings, April 2014 PCVs have acquired knowledge of the roles, responsibilities, issues, and challenges of local governance in Albania. Conversely, PCVs provide an exchange in experience, ideas, and perspectives with their communities and counterpart organizations.

PCVs have played a role in the success of various initiatives such as the project on improving the tax administration of immovable property in the partner Municipality of Fier. “[The PCV] is my eyes and ears on the project” says the Municipality’s vice mayor. Having had many years of project management experience, the PCV has played an important role in tracking the daily progress of the project as well as acting as a mentor in leadership to the project team by providing different perspectives, ultimately enhancing the planning and decision-making processes. To-date, the project has resulted in an increase of 260% in income from the immovable property tax for From top left: Citizen Advisory Panel (CAP) Coordinator residential buildings compared to fiscal year 2013. Ervis Ruçaj, Peace Corps Volunteer Maria Lee, Mayor of Patos Rajmonda Balili, the then USAID Mission Director PCVs embedded in the partner municipalities of Kuçova, Patos, and Jim Barnhartd, and USAID Planning and Local Saranda assisted their respective communities’ CAPs in initiating the Governance Project Chief of Party Peter Clavelle with a process of conducting citizen satisfaction surveys in which three group of school children in the Clean-Up Day activity hundred citizens from each town were interviewed in order to assess organized in Patos in collaboration with Peace Corps citizens’ satisfaction regarding municipal services, the level of and CAP in 2013. information on local taxes and tariffs, and the communication and interaction between citizens and municipalities. The PCVs aided community counterparts with survey design as well as facilitating the data-input and analysis processes. The activity was instrumental in giving a voice to the citizens to express their level of satisfaction with their municipality. "I am happy to be a part of the PLGP efforts in Kuçova, says Kelsey Draughon, the PCV embedded in the Municipality of Kuçova. The survey that was used not only gives individual citizens an opportunity to share their opinions concerning government services and transparency, but it also engages the community in a constructive and powerful dialogue.

The unprecedented collaboration with Peace Corps/Albania will continue to enhance the goals of both PLGP and Peace Corps/Albania by working to improve local governance and by meeting community organizations’ needs for community builders.

6

From Informal Settlement to Mainstream Community Informal settlements are the norm on the perifery of Albania cities, and the social and economic challenges they present are formidable. There have been few attempts by the Government of Albania or others to upgrade informal areas in situ, and none since 2006. However, a recent pilot project initiated by the USAID-funded Planning and Local Governance Project, together with Albania’s Ministry of Urban Development and the City of Vlora, provides a model for integrating informal settlements throughout Albania into the mainstream.

An estimated 350,000 houses and other structures were built without building permits or planning permission in Albania to house migrants from rural areas in search of economic opportunity in the aftermath of communism. The structures were built on former state collective New roadway, sidewalks, curbing, and street farms or on property owned by others. Buildings in these informal lighting connecting Kushtimi to other settlements may be durably constructed, but, without title to the land, neighborhoods in Vlora. The PLGP-supported pilot occupants cannot sell them or use them for collateral. They lack legal project is a model for upgrading and integrating connections with water, sewers, electricity, and other infrastructure, informal settlements in Albania. and they contribute no tax revenues. They frequently experience problems with recreational space for children, public health, education, and transportation.

“When we improve physical and In 2014, the PLGP developed a multi-phase action plan to physically legal access to the mainstream for The PLGP helped Vlora prepare a design plan and project budget residents of informal settlements, and facilitated a funding request to the Albania Regional Development Fund. The PLGP also organized two public hearings we improve their opportunities for with residents. The Ministry of Urban Development conducted a a better life.” parallel process of helping residents obtain legal title deeds.

- PLGP Chief of Party, Peter Clavelle. The design plan and budget prepared by PLGP and the municipality prioritized focus areas and coordinated intervention. The plan foresaw the establishment of a road grid to connect the informal settlement with the city and the creation of public green spaces. The close collaboration with the 400-resident neighborhood, facilitated by PLGP, incorporated residents’ interests and concerns into the plan. The plan to integrate the 6.4 hectare Kushtrimi neighborhood conformed to Vlora’s General Local Territorial Plan.

Construction of the road infrastructure was completed in Spring 2015, representing an investment of over US $770,000. An inauguration event was held in April 2015, at which Minister of Urban Development, Eglantina Gjermeni, publicly thanked USAID and PLGP for its support.

The Vlora/Kushtrimi pilot project is a model for the integration of informal areas through strategic infrastructure investments aimed at neighborhood regeneration and quality of life improvements. It is also a model of cooperation between a municipality, the national government, citizens, and donors that can be replicated elsewhere in Albania.

7

Partnering for Success

At each action plan workshop, participants are asked: What would you like to see for yourself and others in your community, and how can USAID’s Planning and Local Governance Project support you? Answers to the questions form the basis of a community action plan.

The PLGP worked with eight municipalities in Albania to create action plans in 2012 and then update them in 2015, in response to national territorial reform which consolidated local governments. “The action plans give a clear vision of things that the newly-merged municipalities can do in partnership with the PLGP. They help make each community the place residents want it to be, and they help the PLGP target USAID’s resources effectively,” explains PLGP Program Officer Elton Jorgji.

Participants at the action plan workshops include the mayor, municipal councilors, senior city employees, and community members. Essentially, USAID and PLGP realize that developing sustainable solutions is a joint effort The facilitator plays a key role as moderator involving citizens and leaders. of the action plan workshop and must have the confidence of all participants. PLGP Civic Conducting a workshop takes organization, focus, and flexibility, and the PLGP Engagement Expert Laureta Memo (standing) utilizes a format that has proved successful. After a welcome from the Mayor, facilitates discussion at a workstation. The the PLGP Chief of Party and key staff describe potential areas of PLGP PLGP has worked with the municipalities of technical assistance. All attendees are then asked: What are your priorities? Berat, Elbasan, Fier, Kuçova, Korça, Lushnja, What are the action steps that need to be done to make sure the priorities Saranda, and Vlora to create action plans. happen? Who should be involved? What resources do you need?

At every event, participants join one of four workstations, where a key topic is discussed. People have the opportunity to provide feedback, ask questions, “The process of and indicate what specific issues need the most urgent attention. Four general topics are addressed: municipal taxes and finances; urban planning; public establishing an action administration and public service delivery; and local democracy. Every workshop is guided by a trained PLGP facilitator, and a PLGP subject-matter plan is as important as expert joins each workstation to answer questions and help participants formulate problems. the product itself.” Each workstation prepares flip charts on large pieces of paper. The charts are a record of the group’s discussions and agreements. Each group uses the charts to report its findings to all workshop participants. At the conclusion of the event, the municipality has a prioritized list of problems and a plan of action for the implementation of key agreed options, in partnership with the PLGP.

“The process of establishing an action plan is as important as the product itself,” emphasizes Jorgji.

By bringing residents and municipal officials together to think about and discuss resources and group involvement, the action plan workshops increase awareness about the skills and resources already available in the community and identify realistic and concrete ways of building on these assets. This gives the Planning and Local Governance Project a firm foundation on which to base its activities. The plans become binding agreements between the municipality and the PLGP.

Communities work best when people recognize they need each other. More than 160 people attended the PLGP-supported workshops, all of whom committed to work together for the future success of their communities.

8

Integrity in Territorial Planning and Development in Albania

USAID’s Planning and Local Governance Project (PLGP) is helping the Government of Albania and local governments improve the built environment by building integrity into the planning and development process. Territorial planning in Albania has undergone significant legislative and institutional reforms in the past two years, and the PLGP has worked methodically to improve transparency, responsibility, and efficiency in the design and implementation of territorial planning procedures and practices, and, thereby, reduce spaces for corruption.

Sculpture in Tirana. Thanks to the efforts of The Law on Territorial Planning and Development and related bylaws, adopted the PLGP and others, awareness and in 2014 and 2015, establish the standards for planning and construction. The intolerance of corruption is growing in PLGP provided guidance to the GOA in formulating this legislation to ensure: Albania. The legislative and institutional  Compliance with international norms for planning and development. reforms supported by PLGP make it  The inclusion of basic principles, especially the principle of sustainable increasingly difficult for public officials to development and the principle of protecting public and private resort to corruption in planning and interests. development processes.  Precise rules, with clear responsibilities and a minimum of discretionary actions, which are applied without discrimination to all who engage in the same types of activities. Corruption—the abuse of entrusted  The obligation to inform the public in a clear, timely, and power for private gain — is a major comprehensive manner and to ensure meaningful public participation deterrent to effective and sustainable and consultation in the planning process. development. The PLGP also helps build the capacities, knowledge, and experience of government staff at the national and local levels so they can implement the laws in a proper manner. — USAID Practitioner`s Guide or Anticorruption By law, each local government in Albania must prepare a General Local Programming Territorial Plan (GLTP) to set a clearly-defined direction for development within the municipality. The GLTPs specify what can be built in the municipality, where it can be built, and how it must be built. The Planning and Local Governance Project is providing assistance to five municipalities in developing their GLTPs in compliance with Albanian law, and has produced a Planning Toolkit for use by all 61 municipalities. The Toolkit is not only a how-to guide for drafting a GLTP, but also a common evidence base of best practices in making planning and development decisions in accordance with the law. The Toolkit is expected to become a shared reference for users throughout Albania.

A number of mayors and municipal planning directors in Albania have been indicted for the abuse of official position related to territorial planning and issuing building permits. The PLGP is strengthening the legal framework, as well as the administrative, technical, and human capacities of the national and local governments, to prevent the misuse or waste resources—including USAID- funded resources—in the planning and development process.

9

Transitioning Water Services for the Future

Sound management and use of water have long been priorities for USAID, and the Planning and Local Governance Project is helping establish a strong foundation for cleaner, safer, and more accessible public water in Albania.

The PLGP and the Municipality of Elbasan are partners in an unprecedented program to restructure the delivery of municipal water and wastewater services. The city of Elbasan, like all Albanian cities, recently merged with its surrounding local governments. The merger brought opportunities, but also complications. One hundred percent of the residents of the former city were served by a single water utility. The 200,000 residents of the newly-consolidated Elbasan, including over 80,000 new residents, are now served by two public water utilities, as well as It is difficult for a restructuring utility to direct services from local governments that existed independently before the accurately assess what can assist a system. merger and are now administrative units of the newly-merged municipality. In PLGP Water Utility Expert Ndriçim Shani addition, five percent of the population is self-supplied, and 19 percent of the total (top) facilitates technical discussion on a population receives no water or wastewater services. transition plan with Elbasan utility staff. According to Albania’s national Water Sector Strategy, multiple water and

wastewater service providers should be combined into a single utility. This is a significant challenge, financially and organizationally. Much of the infrastructure is in need of costly replacement or repair. And organizational challenges to creating a single utility encompass both planning and execution.

To meet these challenges, the PLGP and Elbasan officials collaborated to develop a Water Services Transition Plan. The five-year plan is a coherent framework for establishing a single, aggregated utility with expanded, reliable, and high-quality service that complies with European Union health and environmental standards. It includes practical tools for strategic planning, “The impact financial management, administration, human resources, regulatory compliance, of water on capital investment, customer service delivery, progress monitoring, and outcome evaluation. It contains a financial model which begins with water demand and all aspects of finishes with the tariff proposed for each year of the transition plan. Annual

development is performance information is used to inform decision making.

undeniable” “By any measure, the reorganization of water utilities is a complicated and difficult effort,” says PLGP Water Utility Expert Ndriçim Shani. “We’ve developed a step-by-step guide for ensuring an orderly transition for the municipality and for customers.”

USAID Water and Development USAID Water and Development “We are very optimistic about the transition plan,” adds Elbasan’s Mayor Qazim StrategyStrategy 2013-2018 2013 -2018 Sejdini. “Implementation of the plan will help us improve the quality of water services throughout the whole of Elbasan. We believe that soon Elbasan will have 24-hour-per-day water service.”

The Elbasan Transition Plan is the first of its kind in Albania. It is a model of integrated territorial cooperation and details an important decision-making process, not only for Elbasan, but for all other Albanian municipalities to reference in the mandatory restructuring of their water delivery systems.

10

Opening Doors to Financial Opportunity Identifying a problem is the easy part. Writing a proposal to convince those with money to use it to solve that problem is much more difficult. USAID’s Planning and Local Governance Project collaborated with the Slovenian embassy to train 25 Albanian civil servants to write and submit successful grant proposals, and then prudently manage the grant funds. It was the second such collaboration between USAID/PLGP and the Slovenian government. “What we learned was really helpful for our municipality," said Albana Zeqaj of the Office of Projects for the Municipality of Fier, speaking of the first round of grant writing workshops. "The training was very specific and practical.” Writing to win. Training for both collaborations was provided by a Slovenian NGO and focused on the The intensive training included a one- transfer of best practices from Slovenia’s 12 years of European Union membership. day workshop on building partnerships Participants included representatives of local and national governments, NGOs, and local between national and local governments government associations. Costs of the training were shared by USAID/PLGP and the and four days of practical training on Slovenian government. writing proposals for the EU and other Albania is faced with high demands for infrastructure and capacities development to meet donors. citizens’ needs for public services and to prepare for EU membership. Successfully securing grant funds is essential to meet these demands. Pre-accession assistance is the main financial mechanism by which the European Union supports Albania in implementing reforms with a view to EU membership. Additional external funding is available through other international donors. Internally, the Government of Albania’s newly-established Regional Development Agencies provide decentralized funding to address domestic regional development disparities, through contracts with municipalities.

But the money doesn’t flow automatically. Both national and local governments must

submit grant applications in competitive processes and, if successful, administer the Staff from the municipality of Korca, funds wisely to complete projects on time and on budget. Besides raising the skills of using skills learned at the first public servants to prepare high-quality project proposals and then implement concrete USAID/PLGP-supported workshop, projects, the training also emphasized the importance of regional collaborations. prepared a successful proposal for Intermunicipal and transnational proposals can often increase the likelihood of funding funds to restore the city’s historic success, as many issues transcend political borders. Cooperation between different bazaar and market. levels of government is also a key success factor, and the training included a workshop on building partnerships between national ministries and local governments. Without . proposals endorsed by both levels of government and solid implementation partnerships, it is difficult to tap into EU and international funding sources.

Supporting resource development is the core of the PLGP’s mandate. “Resource development is an intentional process for the PLGP,” says PLGP Program Officer Elton Jorgji. “It is concerned with ways stakeholders engage their community.” While one of the objectives of this engagement is raising grant funds, resource development also includes PLGP support for other outcomes such as adequate and responsible fiscal decentralization, strong collaborative partnerships between citizens and local governments, municipal elected officials and professional staff who are committed to growing professionally, and territorial plans based on long-term strategic visions. As Jorgji

notes, “All of the PLGP’s activities, including the grant writing workshops, ultimately aim at helping governments create a stable path to carry out their unique visions.” Burbuqe Mecaj, Head of Development, and Projects in Kuçova Municipality said: “The workshop was a great tool for the staff of our Municipality to be oriented and write the projects for the priorities we as the LGU are eligible to apply and more potentially to win. We are clearer how to match our needs with donors’ strategies for funding projects on local level. The training helped a lot as we learned and introduced to new aspects of rules, tips and ways of writing a wining project proposal”

11

Building a Local eGovernment Infrastructure

Each time a person buys a home, turns on a water tap, pays a tax, has a child, gets in a traffic accident, renews a license, and so on, it generates information that can be collected and analyzed by local governments. “Information is the Reforms such as natural resource that local governments need to govern, provide services, and account for their performance,” says PLGP Information and Communication transparency, Technologies (ICT) Expert, Genc Radovicka. Because of this, USAID’s Planning accountability, and and Local Governance Project launched its Local eGovernment Initiative in 2012. The initiative supports local governments in utilizing ICT to deliver openness are tied to services.

improving information USAID/PLGP provides extensive technical and material assistance to 12 local governments. These municipalities account for about 79% of Albania’s total management practices population, according to the Albanian Institute of Statistics.

PLGP interventions are customized to the needs of each local government and include such ICT solutions and eServices as: tax administration and collection; financial administration, including accounting, budgeting, and asset management; water billing and accounting; document management; geographic information services (GIS); and portals with community information pages, local government activities pages, public forums, online problem reporting, tourist information, and other eServices and communications.

The PLGP’s strategy for building a local eGovernment infrastructure focuses on delivering three basic capacities: the capacity to provide and maintain ICT infrastructure at an affordable cost; the capacity to create and maintain essential local content and applications; and the capacity for municipal staff and the public to understand and use the applications. Open source tools are used in the PLGP’s ICT solutions, as appropriate, to contain costs; content is developed that makes sense to the local community and increases the efficient delivery of vital public services; and extensive user training, public outreach, and multi-year technical support are provided.

Collaborative government with a focus USAID/PLGP has invested over $1 million in ICT. This investment in Albania’s on problem-solving and transparency, burgeoning eGovernment infrastructure bolsters other USAID investments in citizen engagement, and multi- decentralization. Local governments now have relevant, economical, verifiable, stakeholder dialogue are primary accessible, simple, and secure information to improve public administration and objectives of the USAID/PLGP public services, as well as make information publicly available. Moreover, eGovernment strategy. through an interface designed by the PLGP, local ICT systems can exchange data with the Government of Albania’s national databases, increasing possibilities for shared services and the appropriate distribution of authority.

“ICT provides a framework and tools for innovation and initiative at the local level,” continues Radovicka. “We are laying the groundwork for making eGovernment a transformative force in Albania. The significance of ICT is not only the technology, but also the possibilities it opens for knowledge, participation, transparency, and collaboration, which are fundamental for sustainable decentralization reforms and positive change.”

12

One Stop for Citizen Services

In Korça, the many administrative procedures that used to require visits to a variety of municipal departments can now be taken care of at the One-Stop Excellent technology Shop for Citizen Service, and residents are satisfied. and customer care “Today, I went to the One-Stop Shop to submit a request,” says Korça resident Albana Çule. “I found a friendly environment. The procedures were easy and are the keys simple. I was so pleased!”

The One-Stop Shop, or OSS, was launched in March 2016 with the support of the USAID-funded Planning and Local Governance Project (PLGP). Citizens can access the same services at the same level of quality at a location within city hall, at five different locations within the central city, and—significantly—at a location in each of Korça’s seven suburban and rural administrative units. The land area of Korça expanded from 14 to 806 square kilometers as a result of territorial reform in 2015, when seven former municipalities became Korça resident Albana Çule (left) submits administrative units of the merged municipality. The One-Stop Shop greatly a request. facilitates the delivery of public services to these outlying areas.

The One-Stop Shop adopts simplified USAID/PLGP and the municipality of Korça combined computer-based procedures to provide a citizen-centric technologies with human-based administrative processes to create a new way of public service that does not require time- delivering local government services that is responsive, convenient, transparent, consuming and frustrating processes. and cost-effective for citizens and the municipal government. USAID/PLGP Many documents can be processed at developed the ICT solution, including website and operating manual, and trained the OSS, without the need for citizens staff on workflows and customer service. to visit multiple government locations. The One-Stop Shop provides 73 services from 11 different municipal departments, including Finance; Local Taxes and Tariffs; Social Protection; Law; Territorial Planning and Development; Contract Management; Human Resources; and Public Relations.

The OSS can issue permits, licenses, and documents, such as building

permits, business licenses, and residence verifications. It can also accept service requests, citizen complaints, reports of illegal construction, and many other citizen inquiries and messages. The OSS provides non-stop service from 8am to 4pm.

A website for public use provides accurate information on required forms, and allows users to access some services online, as well as track the status of all of their requests by ID number. An internal operations manual for the OSS’s employees lists step-by-step instructions on how to deliver each of the 73 available services, including required response times and other customer service standards.

The One-Stop Shop “gives power to the people and power to the municipality,” says Korça Mayor Sotiraq Filo. “It enables all citizens to address all of their requests, complaints, and applications for services in a single location, and it gives the municipality an important instrument for monitoring our work in terms of time, quantity, and quality.”

The PLGP expects the Korça One-Stop Shop will be a model for other municipalities.

13

Toward Stronger and More Autonomous Local Government

Albania’s new Law on Local Self-Governance is a major political and legal milestone. It transfers responsibilities for the services most vital to people’s “The most inclusive and lives from the national government to local governments, and thus realigns Albania in a more democratic direction. In addition, local services must meet comprehensive process minimum national standards of performance, and, for the first time, citizens must be involved in public decisions. of drafting a law ever Major reform does not happen in a vacuum. USAID has a nearly 25-year undertaken in Albania.” track record of promoting good governance, decentralization, and increased accountability in Albania. Moreover, Albania is a candidate for European Union membership and must meet EU norms for local self-governance. And recent territorial mergers, involving all local governments in Albania, made legal

restructuring almost obligatory.

To develop the landmark legislation, the USAID-funded Planning and Local Governance Project and the Government of Albania agreed on a joint action plan to develop a framework for decentralization. A working group of local and international experts, convened by the GOA and PLGP, met regularly for months to systematically assess and evaluate decentralization issues, needs, and problems, and to propose recommendations. The group was inclusive, and opposition-affiliated elected officials participated. It ensured a high-quality flow of information, analysis, and advice to GOA policymakers.

“It was the most inclusive and comprehensive process of drafting a law ever undertaken in Albania,” says PLGP Decentralization Expert Fatlum Nurja. “It created space for the Government of Albania to make the complex decisions necessary to achieve political, administrative, and fiscal decentralization.”

PLGP experts produced a series of technical documents which analyzed the amount of local revenues needed to meet obligations, assessed local public USAID’s Planning and Local Governance administration capacities, and recommended a simple, transparent, and Project helped establish and lead the predictable revenue sharing process. The PLGP’s studies, together with advisory process, as well as develop those of other working group partners, formed the basis of the GOA’s National the background analyses, which Crosscutting Strategy for Decentralization and Local Governance. The strategy culminated in a crosscutting national substantially paved the way for the new law on local self-governance. strategy and successful landmark legislation for political decentralization As a result of the intensive and collective efforts of the PLGP, GOA, and other and local government reform. partners, decentralization in Albania promises to be more than a redistribution of functions and resources between national and local governments. It sets up a fundamentally new system of checks and balances between the national and local governments. It also redefines the relationships between local governments and international donors. It offers new possibilities for participation in public affairs by community based organizations and citizens. And it provides incentives for local governments to innovate to improve performance.

“We are grateful for the support provided by the USAID Planning and Local Governance Project,” wrote Minister of State for Local Issues, Bledi Cuci. The decentralization strategy embodies the GOA’s goal “to transform Albania into a model that inspires peace and development in the Balkan region.”

14

Field Guide to the Future

During the past four years, USAID’s Planning and Local Governance Project has worked with the national and local governments in Albania to improve comprehensive land use planning.

We have found that, despite good intentions, most municipalities do not have the knowledge or skills needed to prepare a legally-mandated comprehensive General Local Territorial Plan. They find it difficult to assess and analyze current conditions. They find it difficult to develop a strategy for the future. They asked us to help fill their knowledge gaps. This knowledge is crucial because the General Local Territorial Plan is the major development framework for local governments in Albania.

The Planning and Local Governance Project, at the request of Albania’s Ministry of Urban Development and in cooperation with the National Territorial Planning Agency, drafted a Planning Toolkit to help communities better understand the technical issues involved in creating a plan. The full-color, 225-page book includes tables, flowcharts, illustrations, and case studies that show practical USAID Country Representative Marcus territorial planning in action. Equally important, the Toolkit conveys a new Johnson discussed the purpose and benefits mindset for Albania that underpins how and why USAID believes strategic of long-range planning for local governments comprehensive planning can change communities and lives. in Albania. The PLGP launched the Toolkit at November 2015 event that drew approximately 250 mayors, municipal planners, representatives of universities, civic groups, and international donors, Peace Corp Volunteers, and other municipal stakeholders. The PLGP encouraged participants to use the Toolkit to learn how to:

 Develop an overall vision for a municipality with long term objectives and strategies to achieve the objectives.  Plan for public facilities, including a capital investment program.  Protect and enhance the environment, historic and cultural sites, and other A colossal work that will help us special places. ensure that sustainable territorial  Maintain and expand the economic base. planning becomes a reality in  Promote development of housing to meet the needs of all social groups. Albania  Address other specific municipal needs.

— Eglantina Gjermeni, The Planning Toolkit is the latest PLGP capacity-building tool and a step forward in sharing the practice and promise of strategic planning with local governments. Minister of Urban Development USAID, through the PLGP, has invested significant resources in national and local planning efforts in Albania, including intensive assistance to five partner municipalities in developing General Local Territorial Plans.

At the launch event, Vice-Mayor Ilirjan Llangori of Kucova said the Toolkit “is very important for our municipality for moving forward to meet the challenges of the future.” The expectation of the PLGP and the Government of Albania is that use of the Toolkit will increase the quality and effectiveness of comprehensive plans in all 61 Albanian municipalities.

15

Enhancing the Role of Public Space

The word “unique” is often overused in the English language, but Albania’s new national Public Space Bylaw may be truly one-of-a- kind. In most, if not all, other countries, public spaces are regulated through various provisions of different laws related to public safety, public health, environmental protection, zoning, economic development, education, and transportation. Management and oversight of public spaces can become challenging due to the difficulty of keeping track of the various rules and their exceptions, and sometimes conflicting goals of the parties responsible for enforcing those rules.

The single Albanian bylaw, drafted by the national government with the support of USAID’s Planning and Local Governance Project, establishes a clear framework for regulating public open spaces. The bylaw empowers local governments to determine and control the use and occupancy of the public open spaces within their borders, except those owned by the national government.

A unique provision of Albania’s new Public open spaces are the property of all residents. The new bylaw will help bylaw on public spaces regulates the ensure that they are used wisely to satisfy vital individual and community needs, conversion of private space to public including recreation, education, health, transport, communications, public administration, religious, cultural and social, and safety and security. space. For example, the privately- owned undeveloped or underdeveloped The quantity of public spaces is a major issue in Albanian municipalities. Land portions of properties containing must be dedicated to roads, parks, schools, hospitals, and other public facilities. apartment buildings may be converted However, the primary challenge now and in coming decades will be to address to public space through the direct and the qualitative issues of public spaces, such as strengthening the connection voluntary sale of the property to the between people and open spaces, supporting a healthy natural and cultural environment, and ensuring that public spaces remain available to all residents. municipality or the use of innovative financing mechanisms like special “The public space bylaw responds to both quantitative and qualitative assessment districts or business public space needs, in both large and small ways,” says Rudina Toto of improvement districts. Co-PLAN/PLGP. The law considers smaller, but very important issues, such as limitations on the construction of fences and walls in residential areas and Municipalities must implement the on the installation of posters on structures facing public open spaces. It also provision in a transparent manner to treats larger concerns such as the obligations of developers to provide public guarantee the public interest without infrastructure and the unauthorized dumping of waste on public lands. harming private property rights. Albania’s new public space bylaw includes guidelines for reclaiming private open spaces for greater public benefit, provisions that may be unique to Albania. The bylaw also sanctions the use of innovative methods to finance public facilities. These guidelines and financing authorizations will facilitate the creation of more public open space in areas where it is most needed, as well as the transformation of poorly-maintained open spaces to high-quality public spaces, in a cost-effective manner.

“There is a correlation between urban quality and public life,” says Toto. “The new public space bylaw will enable all municipalities to take full advantage of their public spaces for social and recreational activities.”

16

Tax Administration Reform

Saving Time, Saving Money Disorder, delay, and confusion were once the norm when processing local taxes everywhere and for everyone in Albania. Property tax bills, for example, were a challenge for municipalities to prepare and for property owners to pay, involving “Owing to USAID’s a myriad of different paper documents, often submitted in different places after waiting in long lines. Not surprisingly, errors were frequent, tax collections were support, our sporadic, and opportunities for corruption were significant.

All that is changing in 12 municipalities that have implemented an electronic Tax problems are Administration Information System (TAIS) with the support of USAID’s Planning and Local Governance Project. history.” “Today, we have a genuine system for local income-generating obligations,” says Besmir Blama, Director of Taxes for the Municipality of Berat. “We can print invoices and collect local taxes and fees automatically. And we have the reports needed for effective decision-making. TAIS has decreased employee fatigue  Better collect and analyse while simultaneously improving services for our taxpayers.” information.

 Proactively manage The new eService requires less work from citizens than traditional services. workload and resources. Municipalities with TAIS are on track to process over one million invoices in  Foster a cooperative 2016, likely eliminating hundreds of thousands of citizen visits. And it offers financial benefits for local governments. Local property tax revenues have engagement with taxpayers. increased above the national average in all municipalities with PLGP-  Standardize the treatment implemented ICT tax systems. of taxpayers.  Facilitate the uniform The PLGP Tax Administration Information System uses ICT, first, to establish a application of tax laws. comprehensive, integrated, and dynamic taxpayer register, which enables the use of ICT for all other tax administration functions. Then, ICT is used to assist tax adminstrators with functions that require handling large numbers of forms to decrease the workload on municipal staff. Electronic portals allow taxpayers to view their tax accounts. They also give taxpayers extended service hours, thus further reducing staff workloads. In addition, the exchange of data with national government sources, such as the Business Registration Center and the National Citizens Register, can ease compliance monitoring and enforcement.

The municipality of Kamza was a pilot site for implementing PLGP’s Tax Administration Information System to replace the manual processing of tax payments. Kamza expects to process 164,000 tax invoices electronically in Benefits for local governments of 2016. Not a single invoice was processed by computer before a PLGP Tax PLGP’s ICT tax system Administration Information System was installed in 2014.

“Before TAIS, our difficulties included identification of new taxpayers, extensive manual labor that frequently affected the quality of our work, the vulnerability of paper data to damage or destruction, the ill-use of data, and unauthorized access to information,” says Bujar Loshi, Head of Kamza’s Tax Department. “Due to USAID’s intervention with hardware, TAIS software, and training, all of these problems are now history. We are now accessing and processing the data in real time.”

17

Keeping Score and Raising Standards

Public forums held during the last mayoral election campaign in Berat brought together candidates who for the first time, presented different visions for the municipality’s future - informed by citizen feedback on issues collected through the Community Based Scorecards (CBS). Since 2015 USAID’s Planning and Local Governance Project (PLGP), in partnership with UN Women, has developed CBS in 16 municipalities (Berat, Elbasan, Kamza, Vlora, Korça, Kuçova, Fier, Lushnja, Saranda, Patos, Vora, Gjirokastra, Shkodra Roskovec, Lezha and Kukes) and plans to prepare four more in 2018-2019. Fitore Sulejmani, former Citizen Advisory Panel (CAP) coordinator in Berat, said, “Because CBS reflect citizens’ real perceptions and needs, At a public meeting in Shkodra, residents they help local governments to put citizens’ visions into action. It is democracy in action.” use a Community Based Scorecard to share responsibility for monitoring the During the scoring process, citizens shared perspectives on local government quality of services with elected officials. performance, municipal officials explained their constraints in exercising their responsibilities, and then both groups worked together to find solutions in a sustained

and systemic way. In a later stage, active citizens – including CAP members -- and public officials (mayors, deputy majors, and municipal councilors) came together in public forums to discuss CBS findings and recommendations and to obtain commitment from local officials to respond to the priorities identified. Across all 16 municipalities, municipal officials acknowledged and welcomed citizen perspectives from the CBSs. Mayor of Patos, Ms. Rajmonda Balilaj said: “This is an excellent opportunity for getting citizen feedback on our work and planning future activities and projects.”

Recommendations from scorecards have been incorporated into municipal budgets, and roads, school buildings, social programs, and other public facilities and services have been improved including: improvement of rural roads in Elbasan, Berat, and Patos; major investments in municipal infrastructure in Vlora; building of social housing for vulnerable women in Patos; handicraft employment opportunities in Gjirokastra; cleaning and maintenance of irrigation channels in Fier, Berat, Roskovec, and Shkodra; and reconstructed bathrooms in public schools in Roskovec. USAID/Albania Country Representative, Dr. Catherine Johnson in her speech at the National Conference “Civic Engagement at the Local Level: Strengthening Citizens’ Voices through Civic Mechanisms” remarked that, “This process shows that strong, active, vocal citizens can influence positive change in your communities”.

USAID/PLGP believes government accountability is not just a technical matter that can be solved with laws and audit procedures. Accountability must also be participatory for local government to be effective and broadly-supported by citizens and for civil society to be vibrant and capable of playing an active role in community political life. Lori Memo, PLGP Civic Engagement Expert, notes that, “A Community Based Scorecard is a tool for improving governance by building stronger relationships. The emphasis is on bringing local leaders and citizens together in a concrete, positive, and meaningful partnership to share in the task of raising governance standards.” The Community Based Scorecards are one more example of USAID/PLGP’s efforts to engage local governments and citizens in constructive dialogue for the common good.

18

Albania Adopts The First-Ever Comprehensive Law On Local Self- Government Finance

“The implementation of the Law on Historical underfunding and downward instability of local government finances, coupled with an unpredictable, inequitable and non-transparent allocation of funds has consistently Local Self-Government Finance eroded Albanian local governments’ ability to plan and implement their budgets and increases local revenues by 38% provide basic services to citizens. For two years, USAID’s Planning and Local when compared to the historical Governance Project worked with the Ministry of Finance (MoF) to develop, consult and average of the last decade, providing finalize the Albania’s first ever comprehensive Law on Local Self-Governance Finance an unprecedented opportunity to (LGFL). This was achieved through an open consultation process driven by an inclusive increase local government autonomy, working group made up of MoF staff, municipal association representatives, and strengthen local governments, and implementing partners who convened regularly to assess issues, propose recommendations and review comments received from the many meetings, consultations, create preconditions for more and regional roundtables and discussions that took place over the 15-month process of better local public services”. drafting and consulting on the law.

The MoF’s Deputy Minister and Head of the Working Group, Erjon Luçi, noted that, “It was the most inclusive and comprehensive process of drafting a law ever undertaken in Albania, a clear example that should be followed in every law preparation process.”

The approval of the LGFL in April 2017, constitutes a historic achievement and a major milestone in Albania’s progress towards fiscal decentralization, which has been missing for more than two decades. The law addresses the structural weaknesses of the intergovernmental finance system and introduces a number of international recognized best practices that will ensure effective implementation of the political and administrative decentralization reforms undertaken in recent years. This law is crucial for Albanian local governments and citizens because it: - Ends the historical underfunding of the unconditional grant, the most important source of finance for local governments, by increasing its size by 31% when

compared to the average of the past decade (2009-2017); - Ends the historical downward instability of the unconditional grant by anchoring its size to a macroeconomic variable (not less than 1% of GDP, and not less than last year’s size), removing the previous system of ad hoc determination as a residual of the national budget that has jeopardized local budget planning and implementation; - Ensures a more adequate, transparent and equitable allocation of funds to local “USAID has been and continues to be governments, including rules addressing new functions transferred to the local level, critical to the development and avoiding the frequent problem of unfunded mandates; implementation of decentralization - Introduces the sharing of the Personal Income Tax with local governments, and legislation in Albania”, says Arben Ahmetaj, increases the expected revenues from shared taxes by 1.5 times when compared to

Minister of Finance of Albania. previous years; and - Promotes sustainable and accountable management of local finances by

introducing clear rules and procedures for prudent and transparent planning, implementation, reporting and auditing local budgets, and ensuring citizens’ engagement in decision making.

Major reform does not happen in a vacuum. USAID has a nearly 25-year track record of promoting good governance, decentralization, and increased accountability in Albania. Arben Ahmetaj, Minister of Finance of Albania, recently stated that, “USAID has been and continues to be critical to the development and implementation of decentralization legislation in Albania.”

19

Putting the Pieces Together: An Integrated Property Tax System

Low property tax revenues mean that local governments in Albania are often only able to fund the most basic services, such as street lighting and waste disposal, and sometimes only to a limited extent. Good schools, infrastructure, and adequate social programs—in short, many of the foundations for decent, prosperous lives—require much higher tax revenues.

Over the past five years, USAID’s Planning and Local Governance Project has helped municipalities in Albania grow their local own revenues, increase their autonomy, and reduce their long-term dependence on external assistance by strengthening their tax capacity.

USAID/PLGP’s support has been through three main efforts. First, PLGP USAID/PLGP supports integrated provided the hardware, software, and training for an electronic Tax municipal property tax administration Administration Information System (TAIS) in eleven municipalities. TAIS basedProperty on the electronic taxes Tax are manages the municipalities’ property-tax-related data, prints invoices, and Administrationmore than Information just a System to produces reports needed for effective decision making. Second, PLGP manage and process taxpayers’ helped municipalities build and maintain GIS-based territorial registries to accountssource and ofrecords, revenue a GIS-based record all of the property parcels in each municipality and all of the related property registry, and tax collection data behind each parcel. Accurate property information is essential for fair, linkedand to growthwater bills. , they also accurate, and complete property tax transactions. And finally, PLGP helped . municipal water utilities update and automate their billing systems, linking play a key role the property tax to water bills to facilitate tax collection.

in building up The results have been Using CHANGE IN MUNICIPALITY PROPERTY TAX REVENUES significant for local institutions, markets, USAID-Assisted % Change % Change Municipality 2014-2015 2015-2016 governments. The first three partnerships and democracy by Elbasan 106% 124% municipalities to implement USAID/PLGP’s integrated Fier 104% 102% making a local technical assistance in the and Kamëz 124% 132% 2015 tax year—Kamza, Fier, government Lushnje 103% 147% and Vlora—experienced collaboration Sarandë 59% 158% property tax revenue accountable Vlorë 91% 146% increases over the previous to create to its taxpayers. Vorë 125% 106% tax year ranging from 104 to Berat 95% 120% 125%. Nine municipalities Tirana 109% 157% implemented the innovations better in the 2016 tax year, with increases of 102 to 158%. communities “To support municipal property tax administration, it is important to put in place an integrated system which includes an IT system for database management, a fiscal cadaster, and tax collection and payment procedures,” says Genc Radovicka, PLGP’s expert on information and communications technology. “We’re now working with municipalities to put all three pieces of the puzzle together.”

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Digital Land Registries Increase Local Tax Collections… and More

Since 2012, USAID’s Planning and Local Governance Project (PLGP) has “Kamza is very grateful provided extensive support to territorial reform, administrative and financial to our trusted partner, decentralization, local governance and service delivery improvements, and land use planning reforms in Albania. One cross-cutting intervention that positively USAID, for their impacts all of the PLGP’s activities and investments is the development of land/tax registration systems. continuous support.” - Mayor Xhelal Mziu During 2016, USAID/PLGP helped five municipalities develop computer platforms that run a Geographic Information System (GIS) application - essential for creating robust territorial registries. The registries include information on property size and ownership that is used to establish and manage an effective property tax system. Each municipality is conducting a comprehensive field survey of all of the individual cadastral parcels and buildings within its jurisdiction and uploading the property data into its registry. Results of the GIS platform are already visible. “In the first nine months of 2017, we have collected 26% more in taxes compared to the same period of 2016”, remarked Armando Subashi, Mayor of Fier.

With the encouragement and support of PLGP, the Government of Albania has begun to pay increased attention to equitable, efficient, and dependable sources of local government revenues. As the GoA, PLGP, and other partners worked to craft a new local government finance law, for example, recurrent property taxes were seriously considered. Property taxes fall on fixed assets that cannot be moved and are internationally-recognized as a viable source for financing local Digital property registries created public facilities and services. However, while it is known that recurrent property with USAID support, like this one taxes can play a significant role in Albania’s local governance system, they remain underutilized, with only a minority of municipalities raising significant in Lushnja, will allow five revenues from such taxes. The reasons for this are partly political and partly municipalities in Albania to technical. Imposition of property taxes is sensitive. PLGP realizes that the describe who owns the land, decision to introduce or raise taxes can be an unpopular move for an elected official, and is working with local and central government officials to tie taxation analyze land values and to the provision of value-added services that citizens can recognize, understand, associated improvements, and willingly support. manage an accurate inventory of The PLGP is also helping to remove technical obstacles through the creation of real property, and maximize tax property registers and related digital tax billing and collection software, as well property revenues. as providing requisite training to local government staff. In addition to using these data repositories for taxation, municipalities are already thinking how to best utilize them and to confront other significant challenges they face. Using the registry, “now we are able to fight informality in our municipality,” says Mayor Xhelal Mziu of Kamza. “Kamza is very grateful to our trusted partner, USAID, for their continuous support.”

“The registries are a very positive prospect for Albanian local governments,” notes Genc Radovicka, PLGP’s expert on information and communications technology. “They will translate into better local services.”

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Municipalities Look Ahead with General Local Territorial Plans (GLTPs)

As a result of the 2015 territorial-administrative reform and following the territorial planning reforms, USAID’s Planning and Local Governance Project provided intensive support to 5 Albanian municipalities in creating GLTPs. It is with this support that the municipalities of Berat, Elbasan, Fier, Kuçova, and Lushnja adopted their first GLTPs and thus embarked on a new path for the future. A GLTP is a legally-required foundational document that guides all aspects of a municipality’s growth and development, including land use, economic development, public services and infrastructure, and recreation and the environment. View of the Albania National Territory It is imperative that municipalities are managed strategically and effectively and Council meeting, in which 5 General Local their economic, social, and environmental challenges are dealt with so that they Territorial Plans developed with PLGP become more livable, efficient, and sustainable. A GLTP is a municipality’s plan assistance, were approved. for addressing these challenges over the long-term, and thus serves as a blueprint for a viable future. The eighteen-month planning process for each municipality was designed to incorporate the voice of the people. "We had many more public events than required by law,” said Rudina Toto, Urban Planning Expert, who led PLGP’s “I want to express my gratitude to USAID/PLGP for support of the five GLTPs. “Our public information meetings were well-attended their efforts on territorial planning. The five plans by the public and we received valuable input during these sessions." are valuable as both an inspiration and as a guide to the government’s territorial planning efforts.” The first five GLTPs approved in Albania, drafted with the assistance of USAID/PLGP, are designed to help Berat, Elbasan, Fier, Kuçova, and Lushnja - Ms. Eglantina Gjermeni, Minister of look ahead to the future by: Urban Development  Providing justification for decisions. The GLTPs provide a factual and objective base to support decisions by elected officials, municipal staff, investors, citizens, and other stakeholders.  Growth  Promoting economic development. The GLTPs contain valuable  Transformation information for providing and paying for infrastructure and for expanding local economies.  Engagement  Balancing competing interests. The GLTPs seek a balance among the  Balance many competing demands on land by creating development conditions that  Consistency provide the greatest benefits for individuals and the municipality as a  Investment whole.  Protecting public investments. The GLTPs identify areas of a municipality Are some of the principles that guided for detailed planning with orderly and efficient development patterns, which the development of USAID-assisted will be less expensive to provide with public services. GLTPs.  Protecting valued resources. The GLTPs suggest strategies for preserving environmental features like waterways and agricultural land from damage by inappropriate development.  Guiding physical appearances. The GLTPs include guidelines for fostering the distinctive characteristics of a municipality or parts of a municipality.

 Providing continuity. The GLTPs can provide continuity across time, giving succeeding municipal administrations a common, consistent framework for

addressing territorial development issues. As a “living document”, a GLTP is intended to be updated on a regular basis in order to ensure ongoing relevancy. The national planning law requires a full update of the GLTP every 15 years.

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Leveraging Private Interests for the Public Good

Two years after the implementation of the Territorial and Administrative Reform (TAR), local government units continue to face enormous challenges in offering services to the new communities, coupled with increased needs for funds to finance these services. Public private partnerships (PPPs) are increasingly seen as an attractive approach to financing infrastructure and services projects. PPPs are considered to be an opportunity for local government units (LGUs) to access private financing for the purpose of improving the quality and efficiency of public infrastructure and to improve Participants from USAID partner municipalities and better manage the delivery of services to the citizens, for example via at the Training Workshop on ‘Techniques for public lighting. Managing Effective Public-Private Partnership Projects’ The three municipalities of Korça, Kuçova, and Elbasan responded to a call for assistance from USAID’s Planning and Local Governance Project to examine the feasibility of public-private partnerships (PPPs) to upgrade and manage their street lighting systems, currently in poor condition with many “The PPP project is not only a good effort small streets and residential areas having no lighting at all. Resource to provide the municipality with the inefficiencies have also made street lights expensive, placing a heavy opportunity to offer a better service but it is burden on the municipalities’ budgets. In addition to conducting these helping municipal staff to be part of the feasibility studies, PLGP also trained staff from these municipalities, and feasibility study process. The knowledge from seven other partner local governments, in designing and structuring will be used and shared for potential PPP PPP transactions, identifying qualified private sector partners, and managing projects in the near future. We aim to and monitoring PPP contracts. Public-private partnerships are long-term extend the street lighting service to the contracts between a private company and a local government to provide a rural areas and to provide the service public service. A well-run PPP can help governments leverage the expertise through energy efficiency technologies.” and capital of the private sector and stimulate development. “Good lighting is essential for road safety, personal safety, and boosting - Mr. Selfo Kapllani, Mayor of Kuçova the appeal of the municipalities as commercial and cultural centers,” notes Elton Jorgji, PLGP Program Officer for Public-Private Partnerships. “USAID/PLGP is committed to helping local governments improve access to reliable and high quality basic services like street lighting.” The general methodology used by the municipalities was designed by PLGP to support the municipality in identifying a public goal that can be Using partnerships coupled with private sector objectives as the basis for a public-private and collaboration partnership. The municipality also assesses the costs and benefits of a partnership, examines the capabilities of potential partners, and selects the to create private sector partner using a transparent process. The partnership is formalized with a contract and a working group is formed to guide the effort. better communities As the effort unfolds, participants monitor implementation and look for opportunities to expand and improve it. After a defined time period, usually six months or a year, the municipality conducts an assessment, and results are shared and discussed publicly to guide further efforts. “Albania has its own unique and rather complex challenges, priorities, and financial constraints to delivering public services and facilities,” continues Jorgji. “PPPs are not the solution to every municipality’s infrastructure and social service needs, but can be a tool that helps local governments meet their development challenges.”

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What Experience Teaches:

When the USAID Project began working in Albania in 2012, local governments had limited political autonomy and even more limited fiscal and administrative authority. Inadequate legislation defined national/local responsibilities and scarce financial resources strained the capacity of municipalities to deliver services. The USAID Project helped the national government draft major laws on territorial- administrative reform, which merged 373 local government units into 61 municipalities; on fiscal decentralization, which gave municipalities more control over their finances; and on local government finance, which gave local governments a greater annual share of national unconditional grant funds. The Project has trained public officials and staff on how best to implement those laws and deliver effective public services. And it has emphasized citizen engagement. The latest data show that, over the past two years, revenues from property taxes and The USAID’s Planning and Local recurrent fees increased 58% in Albanian municipalities which implemented tax management technology with the support of the USAID’s Planning and Local Governance Governance Project in the Project (PLGP) versus an 11% increase in other municipalities. That translates to the Seventh Year. equivalent of millions of additional dollars in these municipalities for public services and facilities. “We see tangible evidence of the success of our initiatives just about every day,” says the “Our process-based approach allows USAID Project’s Chief of Party Kevin McLaughlin. “We can point to several areas of increased productivity, increased revenues, and people empowered through information.” us to fully consider the resources that are required and the context in which “The changes in Albania have been extraordinary,” says McLaughlin. The USAID Project’s measurable success in helping governments guide that change has provided they must work-the laws, policies, and many lessons learned. What does the Project’s nearly seven years of experience teach multiple constraints that apply,” says us? “I think there are a few key factors to our success,” says McLaughlin. Kevin McLaughlin, Chief of Party of • “We work effectively with multiple municipalities with an agreed framework which the USAID’s Planning and Local expresses our mutual commitment and clearly outlines areas of responsibility and facilitates cooperation. We work intensively with 13 partner municipalities and often share Governance Project, “There’s nothing our findings with all 61 municipalities. We work with them to solve practical problems, in ad hoc about what we do. Our such areas as urban planning, economic development, water system management, and property tax collection. There are ample opportunities for peer-to-peer exchange to comprehensive approach achieves an generate a shared understanding of common issues. effective balance between the various • “We have been able to deliver our approach and investment over the long term. aspects of our intervention: Achieving and maintaining institutional change is a long-term effort of encouraging and legislation, institutional capacity incentivizing new patterns of behavior so they are replicated across the institution until they become routine and improve overall performance. building, public service delivery, citizen empowerment, training on • “Our evidence-based approach includes not only sharing international best practices but creating original data. Often in policy debates or practical planning, crucial data are grant writing, public-private unavailable or unreliable to give us adequate insight. Rather than make less-than- partnerships, and raising local own- rigorous arguments or risk producing a product that isn’t of the highest quality, we will conduct research, analyze the findings, produce a report and other content, and share source revenues. Our approach both the findings and the methodology used to produce them. maximizes the effectiveness of “The second “P” in PLGP stands for ‘Project’, but it really should be ‘Process’”, says governance, as one aspect reinforces McLaughlin. “We long ago evolved to where our process informs how we distribute the other. resources, how we meet defined and practical needs.”

Training a New Generation

The USAID Project’s sharing and free dissemination of its training and technical assistance materials make a lasting impact in Albania.

When Greta Kukeli began her degree in Urban Planning and City Management at Polis University, she did so hoping that she would eventually be able to apply her knowledge to practical problems. She had realized that it was not always easy to see a route from learning to application. Fortunately, Polis University offered a solution: as part of her degree, Greta did a team-based project to determine how increases in private land values could be captured with nontraditional financial instruments and used to fund the regeneration of a neighborhood of Tirana, Albania’s capital. The work she did as part of Students during class in Polis University. the project was “no longer theory”, she says. The need for more and better roads, sewers, and other infrastructure presents major a challenge to spatial planning and development in Albania. The country is urbanizing rapidly, but municipalities lack funding for adequate public facilities. Financial instruments for land development offer a way for cash-strapped local governments to capture some of the increase in private land values generated by urbanization in order to finance needed infrastructure. “It’s cutting-edge urban planning,” says Greta.

Much of the research on applying nontraditional financial instruments in Albania was undertaken by the USAID’s Planning and Local Governance Project. In 2015, the USAID Project partnered with the Albanian School of Public Administration to make its training and technical assistance materials available for free use by others dedicated to improving the effectiveness of Albania’s public sector. The materials cover the full range of the USAID Project’s seven years of capacity building, including: public service Urban Planner Greta Kukeli says the delivery, project planning and management, tax and finance administration, data handling and analysis, community empowerment, geographic information systems, and USAID Project-produced documents urban planning. not only “help in understanding the The USAID Project’s training materials on financial instruments were prepared with the territorial planning law and its help of Co-PLAN, an Albanian NGO and USAID Project’s subcontractor dedicated to sustainable planning and development. Co-PLAN employees work with national and instruments, but also give a concrete local government planners to solve urban development problems effectively and methodology on how to apply them.” creatively. Co-PLAN staff also teach at Polis University, thus offering students a blend of practical, research, and academic knowledge. “We want to develop well-rounded planners who also have specific competences to address particular challenges in Albania,” says Dr. Godiva Rembeci, Head of the Urban Management Department at Polis. The USAID Project’s training materials are free Urban planning graduates of Polis University work at many municipalities, including for nonprofit use intended to build public sector Tirana, and in national government agencies and ministries. They bring with them new capacity. Beneficiaries of the USAID training perspectives and best practice knowledge of sustainable growth and development that include mayors, local elected officials, municipal originated with the USAID Project. “They are well trained. They’re the next generation, and ministerial staff at all levels, public utility the future of Albania,” says Prof. Dr. Sherif Lushaj, Dean, Faculty of Planning, managers and employees, the Project staff, Environment and Urban Management at Polis University. citizens, representatives of community organizations, and Peace Corps volunteers.

Vora’s Own Source Revenues Provide More and Better Local Services

Vora is a relatively small municipality (80 square kilometers) with 25,000 residents according to the Population and Housing Census of 2011. Located between the Albania’s two biggest cities –Tirana and Durres– Vora is a relatively new municipality that is struggling to meet the needs of its growing population. Since 2012, the USAID Project has been working together with its partner local government units to address systemic weaknesses and establish the building blocks for effective revenue administration at the local level. Efforts have been concentrated in establishing the necessary capital infrastructure, in building capacities of tax administrations, and in running taxpayers’ awareness campaigns. Based on this conceptual framework, the USAID Project has supported its partner municipalities to implement property tax collection action plans to collect information and bill all property owners; create tax registers based on Geographical Information Systems (GIS); employ a computerized Tax Administration Information System; build capacity for local tax administrators; and finally run tax awareness and education programs targeted to both business and household taxpayers. As a partner of the USAID Planning and Local Governance Project (PLGP), the Municipality of Vora has participated in many PLGP activities over the past 7 years that have built the capacity of municipal staff to improve the collection of own-source revenues As a result of steady increase of OSR, (OSR) from local taxes and fees, installed and implemented the USAID-funded Tax the Municipality of Vora has made Administration Information System (TAIS), and improve service delivery. Klaudia, a local significant investments in upgrading its tax officer, stood out for the first time in a training on local taxes and fees conducted by PLGP last Spring. urban and rural road infrastructure to For the second consecutive year, the 12 partner municipalities assisted by the USAID modern standards. In addition, this Project have increased their revenues by more than 30%. municipality has invested in many local The Municipality of Vora stands among infrastructure projects, including Vora Municipality own source revenues in the three municipalities with the best 4.0 mln USD 3.2 performance in increasing OSR from recreational areas, playgrounds for 2.9 3.0 local taxes and fees. Indeed, their children, water supply system, 2.4 sustainability over the last few years sidewalks, public lighting, etc. with the 2.0 translates into an increasing rate of tax ultimate goal of improving the lives of its collection of $2.4 million in 2015, $2.9 1.0 million in 2016, and $3.2 million in citizens. 2017. “We are committed to do our job and we put 0.0 2015 2016 2017 a lot of efforts to succeed. We don’t collect Why is the Municipality of Vora taxes to improve figures and have graphics performing so well? What is its secret? and charts to show off. Rather, we inform businesses and households regularly that The Local Tax and Fee Department has a staff of 20 people, including on-site tax inspectors. “I think we are in the right place doing the right things together with the right their taxes will improve our citizens’ life, our people,” said Mira, Head of the Business Sector of the Local Tax and Fee Department. children’s life. The revenues from local taxes and fees are only used for It is not just their professionalism and commitment that makes their performance a success story. These women and their colleagues are residents of Vora, they live and investments and to improve services for the have their families in this municipality. They bring up their children in this town. This is the citizens. This is what motivates us in our very reason behind their commitment to applying the PLGP established TAIS tax every day job,” said Klaudia, 26, Head of systems, and participating and using the skills acquired from PLGP trainings. Households’ Sector under this department.

Building Skills for Labor Market Needs

With almost 16,000 families, the Municipality of Elbasan has some of the largest numbers of poor families that live on social assistance from the government (INSTAT 2017). During the communist period, the city relied heavily on industry and imported thousands of workers from all over the country. Nowadays, a minor portion of what was once the largest plant in the country is still operational and employs only a few hundred workers. Elbasan is still home to Albania’s heavy industry, including the steel plant, cement factory, ferrochrome workshops, etc. Over the last three decades, youth interest in attending education on metallurgy shrank as the industry itself collapsed with the fall of the communist system. AlbChrome, an Albanian company and part of Balfin Group, is one of the companies operating in the ferrochrome industry. Its workers are close to retirement age and the company is facing a shortage of qualified and skilled workforce. As a result, the Elbasan’s “Ali Myftiu” Vocational School established, company reached out to USAID’s Planning and Local Governance Project to support for the first time, a metallurgy/foundry class with 27 them in coordinating their investing in vocational education to secure skilled labor for its students owing to the support provided by USAID’s ferrochrome plant. With support from PLGP, AlbChrome collaborated with Elbasan’s Ali Myftiu Vocational High School to establish a foundry-metallurgy class for the 2018 Planning and Local Governance Project. academic year. In May, PLGP facilitated an “Open Day” for the 11th grade students to visit the “I joined the mechanical class of this Ferrochrome Factory in Elbasan. Over 50 Mechanical Branch students joined this field school 2 years ago to learn the core trip and participated in a tour provided by the factory’s chief engineer. Students expressed their interest by making various questions and probing into some of the skills and then try my chances for employment opportunities in the factory. employment abroad”, says Edison, USAID’s PLGP cooperated with the Vocational School and the AlbChrome team to run a promotional campaign and produce a promotional video to attract interested 18, student of the metallurgy class, students. The video focused on vocations prioritized by the school with the goal of “but I now see the green light for increasing the enrollment rate for this academic year. The video specifically highlighted the employment opportunities with AlbChrome upon graduation from secured employment with AlbChrome metallurgy/foundry class, and was later aired by local media, the school, the company, upon my graduation.” USAID/Albania social media and PLGP website. As a result of this promotional campaign, 27 students of the third grade of the mechanical branch have enrolled in the foundry-metallurgy course. This will greatly increase employment opportunities for these students living in Elbasan and its surrounding areas. AlbChrome is providing free transport service for students coming from Elbasan’s vicinity. “I see great interest shown by the students and that motivates me a lot,” says Teacher Viron Greco, a metallurgy engineer by profession. In addition to theory classes, students will practice their newly-acquired knowledge at the foundry unit of the Metallurgy Plant of Elbasan. Students will work under the close supervision of skilled engineers so that they are fully trained and qualified for the job. The foundry-metallurgy students will have special uniforms. Qualified teachers, with salaries paid by AlbChrome on this ambitious project, will teach this class and USAID is working to provide tailored assistance supervise the internship program at the ferrochrome plant. to municipalities and the private sector to Those who demonstrate skills, qualities, and motivation will have the opportunity to promote competitiveness and job creation. The secure employment in the foundry unit managed by AlbChrome. Other students who project is cooperating with private and public stakeholders in our partner municipalities that shoot for leadership profiles and wish to pursue geology-mining university studies in support economic growth and development. Tirana will have the opportunity to secure scholarships from the company.

Increasing the Predictability and Reliability of Local Budgets

The Ministry of Finance and Economy Prepares for the First-Time Multiyear The development of multiannual Projections of the Unconditional Grant for Each Municipality. projections of the unconditional grant What is the problem/issue that we are addressing? Add here. Provide an opening few - the single most important source of sentences on the issue, the historical underfunding and downward instability of state transfers for local governments. revenue for the vast majority of The adoption of the Law on Local Self-Government Finance (LGFL) allows not only for municipalities - is critical for the a substantial increase of the unconditional grant but also for more stability, efficiency and effectiveness of local predictability, and transparency in resource allocation. This year, with the support of the USAID Planning and Local Governance Project budgets. This is made possible by (PLGP), the Ministry of Finance and Economy (MoFE) prepared and published introducing in the LGFL the rules that multiyear projections of the unconditional grant for a three-year period for every single municipality. The projections prepared by the MoFE will support local governments’ determine the size and the criteria to efforts to prepare their midterm budget programs for 2019-2021. be used for the allocation of the The fact that municipalities will know in advance the amounts they are going to receive grant,” says Fran Brahimi, Director of over a three-year time span definitively improves the process and reliability of local budgets, while substantially reducing the creation of payment arrears and other fiscal Municipal Finance Department at the risks. Ministry of Finance and Economy. The ultimate impact will be improved budget efficiency and reliability and fiscal discipline. The development and publication of the three-year unconditional grant projections are made possible only because of the provisions of the LGFL (that anchors and guarantees the size of the grant from year to year) and the new formula for the allocation of unconditional grants (that determine the criteria to be used to allocate funds for municipalities) developed by the MoFE with the crucial support from the USAID Project between 2015 and 2017.

“Given the high level of dependency from the unconditional grant, the unpredictability and delayed publication of the exact amounts made the entire budget planning process trivial, and instead of having a 12-month process of effective planning and consultation, local governments ended up having only 2-4 weeks to finalize their budgets, which translated into weak budget implementation and service delivery,” says Elton Stafa, PLGP Decentralization and Public Finance Expert.

Local Plans to Boost Development

Local Detailed Plans are a powerful tool for municipalities to leverage new growth and redevelopment to improve the community. In Albania, there are two major planning instruments which municipalities use for their planning and land development tasks: 1) the General Local Territorial Plan (GLTP); and, 2) the Local Detailed Plan (LDP). These instruments were required by law starting in 2014, and in response to this new legislation the USAID Planning and Local Governance Project (PLGP) provided intensive support to five municipalities - Berat, Elbasan, Fier, Kuçova, and Lushnja - in preparing and adopting GLTPs. As a next step in the process, the USAID project is now providing direct assistance to these same municipalities, and the Municipality of Tirana, to develop local detailed plans (LDPs). March 2018 - The USAID Project and the National Territorial Planning Agency host a training-workshop A Local Detailed Plan enables, among other things, the municipality to regulate the use for about 25 municipal planners. of land and what the built environment is to look like in a particular area. LDPs may regulate, for example, where new buildings may or must be placed, how large or tall they may be, and how much distance there must be between a building and the parcel boundary. The Local Detailed Plan also has to show public places for streets, roads, squares, parks, schools, nurseries, and so on. The regulations in the LDPs are legally binding for subsequent building permit applications.

The steering of most land development within a municipality takes place through the Local Detailed Plans are a powerful tool LDP, which is also the primary instrument that the municipality uses to implement many for municipalities to leverage new of the recommendations of the GLTP. LDPs are generally prepared when growth and redevelopment to improve redevelopment or urban regeneration is proposed in an area of a municipality, or the community. They can help ensure “structural unit”, which usually encompasses several city blocks. These units are that residents have a role in shaping identified in the GLTP as locations where more investment or economic regeneration are desired. the areas in which they live and work and in supporting new economic The LDP is the proper instrument for these cases, as it intends to regulate property development proposals that are aligned relations and economic interests among stakeholders involved in the development with the strategic priorities of a General while preserving public interest at large. Local Territorial Plan. When LDPs result from the interests of private developers, they can help ensure that the supply of land and property matches the demands of modern businesses and investors and their need to capitalize on economic opportunities. When LDPs are initiated by municipalities, they usually intend to meet community needs and stimulate private development. For example, with PLGP support the Municipality of Elbasan has designed a LDP to build a new public multimodal transport terminal for better mobility, to bridge existing physical and social barriers, and to catalyze new private housing and commercial development in the surrounding area. PLGP has also supported the Municipality of Fier to prepare a LDP to build a sports center and improve access to the riverfront and to embrace this natural asset as a core destination within the municipal center and as a stimulus for further private development.

Elbasan Water Utility is 1st

Water and Wastewater Utility of Elbasan is the first utility in Albania to have developed a complete asset inventory database.

The implementation of Territorial Administrative Reform (TAR) in 2014 consolidated Albania’s municipalities from 373 to 61, resulting in larger, more geographically diverse communities. One such community is the Municipality of Elbasan, which has increased in size from 7,9 km² to 872 km², resulting in a larger administrative service area and greater challenges for the municipality to provide much needed services to citizens.

The municipality-owned Water and Wastewater Utility (WU) is now responsible for providing water supply and sewerage services to the new expanded administrative USAID water experts delivering the Asset Inventory boundaries of the Municipality of Elbasan. This service now consolidates 30 former Database to UK Elbasan. individual water utilities and is organized in 24 individual water supply systems. In response to the consolidation of the many utiliities, the WU of Elbasan recently paid special attention to preparing an inventory of its water and wastewater assets and evaluating all the technical assets that the utility inherited from previous former small utilities or local government units that merged with the Elbasan after the TAR.

In response to this effort, the USAID Planning and Local Governance Project served as technical advisor to the Municipality of Elbasan and its Water and Wastewater Utility to initiate the process of developing a complete Water Utility Asset Inventory database. This database will help both the municipality and its water utility to make better use of WU assets, plan their investments to improve operation of assets, and generate revenues from the sale or disposal of obsolete/unused assets. “I personally am very pleased with the results achieved by the working group and I wish to thank USAID for its continuous support given to the Municipality of Elbasan in the water sector” - Klevis Xhoxhi, Deputy Mayor of Elbasan.

The Water Utility (WU) in the Municipality of Elbasan now has a consolidated Asset Inventory Database, which includes the 24 individual water supply systems, ranging from the source, to the transmission mains and the distribution network. The Elbasan Utility has successfully fulfilled the first phase of this challenging task, while following the guidance provided by the Council of Ministers’ Decision No. 63, “On the Reorganization of Water Supply and Sewerage Service Operators”.

Ajdi and Fatri, Two Youngsters - One Vision

The Pivotal Role of Youth in Improving Local Communities.

The industrial towns of Cerrik and Bulqiza were established around 1950. Almost 40 years later, with the colapse of the communist regime in 1990, the communities of both Cerrik and Bulqiza face numerous challenges including high levels of unemployment, relative deprivation, and social exclusion. Citizens, especially youth, lack opportunities, perspective, and jobs. All of the above, accompanied by a lack of hope and trust, limited civic engagement, have created enabling factors for pulling individuals into extremism activities abroad.

Ajdi and Fatri are students of excellence and active youngsters representing the newly established youth boards in Bulqize and Cerrik. Although from different cities, cultures Ajdi during training with her handball team. and experiences, what brings Ajdi and Fatri together is their vision for the future and the motivation to provide contributions in improving the quality of life in their communities. Elected by their peers, they have been officially recognized by the respective municipalities, thanks to Memorandums of Understanding signed in May Strengthening civil society to build the 2018 between the Youth Boards and their Municipalities. community’s resilience is one of the main The USAID Planning and Local Governance Project (PLGP) has supported the objectives of the Albanian National establishment of the boards, as well as provided an initial round of training on Strategy on Countering Violent Extremism. volunteerism and activism. Since the commencement of our work with youth selected from high schools of Bulqize and Cerrik, we have been very impressed with their Youth are a great asset in building commitment to civic responsibility, their visions for the future, and their willingness to address and solve problems their communities face. resiliency in their communities if their energy, activism and innovative ideas are Since the first training of the group focused on the essential role of youth in active well channeled and mentored. Their citizenship and social changes, as well as on their dream town, Ajdi distinguished herself with her dynamic and determined role, consequently the group voted her as participation in extracurricular activities is their representative with the municipality. Ajdi is a girl who brings contagious energy an important element in their social and and enthusiasm, and her commitment has energized and empowered other girls and civic formation. Participation and boys on the board. In addition, Ajdi is a member is the Albanian national champion empowerment of youth groups in female handball team of Cerrik. community activities also reduces Fatri is a boy that assumes responsibility and has a quiet sense of leadership. He is a opportunities for involvement in crime and high school graduate and was student council president of the only high school of violence. Bulqize. Fatri and his fellow peers on the youth board bring a remarkable vision of their dream town. They envision a Bulqiza that has the highest standards in urban planning, Beyond working with youth, PLGP is education, employment, etc. Fatri and the board shared their concerns on security matters that need to be addressed including violence in schools, the use of marijuana, partnering with the pilot municipalities in road safety, domestic violence, mine worker safety, and other problems in their building additional community structures community which might lead to radicalization and violent extremism. like Citizens Advisory Panels and Local Safety Councils, which have proven Both Fatri and Ajdi share the same vision in this regard. In their dreams towns, libraries, sports venues, art clubs and theatres have a special place and are integral effective and replicated by other parts of the community. municipalities as mechanisms to build communities resiliency.

PLGP SUCCESS STORIES PUBLISHED BY USAID.GOV

ALBANIA’S UNIVERSITY GRADUATES ADDRESS URBAN PLANNING CHALLENGES

Greta Kukeli, left, stands alongside Dritan Shutina, CEO of Co-PLAN and co-founder of Polis University. Greta Kukeli How a partnership with Polis University is strengthening the public sector “USAID training has provided my peers and me with the skills and confidence, as well as the methods, to become better planners and public servants.”

July 2018 — Before studying at Polis University in Albania, Greta Kukeli, now 24, had never heard of the urban planning profession.

“Cities are the places where people live, work and play, but so few of us know that there are professionals helping plan our cities,” says Kukeli.

While she had intended to study architecture at the university, Kukeli quickly changed her program to urban planning and city management. “I wanted to acquire the knowledge and skills to help Albania address its many urban planning challenges,” she explains.

Like other cities around the world, Albania’s many municipalities have struggled to provide the necessary housing, transportation, infrastructure improvements, and services to meet the needs of its rapidly growing urban population. Issues like insufficient funding and the underperformance of systems and processes, such as an effective taxation system, have hindered cities’ ability to respond to new and emerging challenges.

When Kukeli began her studies, she did not fully understand how to translate her classroom knowledge to practical problems. Fortunately, Polis University (link is external) had a solution.

As part of her degree, Kukeli participated in a team-based project course on municipal finance. This allowed her to determine how increases in private land values could be captured for public benefit in Tirana, Albania’s capital.

The university — and its study materials — have a strong connection with USAID.

To improve the effectiveness of Albania’s public sector, in 2012, USAID’s Planning and Local Governance Project (link is external) partnered with the Co-PLAN Institute for Habitat Development (link is external) to research how Albanian cities could apply new financial instruments, such as land value capture, to increase revenues. Co-PLAN, an Albanian NGO dedicated to sustainable urban planning, was responsible for founding Polis University in 2006. Because Co-PLAN and Polis University are closely connected institutions, USAID's research with Co-PLAN quickly became relevant classroom training materials.

In 2015, USAID collaborated with a second university, the Albanian School of Public Administration, to make seven years’ worth of USAID materials available to the public, including publications on public service delivery, project planning and management and community empowerment.

“Most of my professors were also Co-PLAN staff, so they mainly use USAID training materials,” says Kukeli. “They were showing my classmates and me new planning tools and explaining them to us step by step. In my land regulations class, we were able to understand challenges cities in Albania face using real case studies.”

Prof. Sherif Lushaj of Polis University added, “Greta and her classmates are well-trained. They’re the next generation, the future of Albania.”

After graduating in 2017, Kukeli began to work at Co-PLAN as a junior planner supporting USAID’s Planning and Local Governance Project, where she is currently using the same USAID tools she acquired in the classroom for her projects.

“I am working on a beltway project in Tirana that I learned about in a USAID case study,” she says.

Kukeli has also been helping Co-PLAN create new materials to share best practices on community participation based on her experience as a student. She is just one of 1,200 Polis graduates who are beginning to change the way cities work in Albania.

“USAID training has provided my peers and me with the skills and confidence, as well as the methods, to become better planners and public servants,” says Kukeli.

Since 2012, USAID’s Planning and Local Governance Project has partnered with Albania’s national government as well as 15 municipalities to build bipartisan consensus and effective policies and legislation on decentralized local governance, improve service delivery, and share best practices on municipal governance. Albania’s ability to create conditions for robust local governance is a prerequisite to European Union membership.

COUNCILS CONNECT ALBANIAN YOUTH WITH LOCAL OFFICIALS

Members of the Cerrik Youth Council stand in front of their poster board. Hung Vo, USAID Young people work to expand civic engagement “So many youth in Albania want to leave the country because they feel that leaders don’t listen and that there are few opportunities.”

September 2018 — In Albania, one in four citizens is a youth between the ages of 15 and 24, which represents 70 to 75 percent of the population. However, a recent survey found that 70 percent of these youth want to leave Albania due to high unemployment.

According to the International Labor Organization, Albania ranked first in the world this year in youth unemployment. Youth have expressed discontent with the government for not meeting its obligation to them by effectively implementing the National Action Plan 2015-2020, which was designed “to develop and coordinate cross sectoral policies in education, employment, health, culture and enhance youth participation in social life and decision making processes.”

In response, USAID’s preventing violent extremism activity is supporting the development of youth councils in Cerrik and Bulqize to provide a platform for dialogue between youth and their representatives, fostering multi-generational exchange and trust. The councils represent an extraordinary step to strengthen civic engagement.

In Albania, where youth exclusion in social, economic or political channels can lead to marginalization, disillusionment and, ultimately, radicalization and extremism, the councils are a space where young people can work with elected representatives to remove barriers inhibiting youth development. The councils also allow young people to connect

with their peers and rally around common goals. This is especially important in Albania, where youth have few opportunities to collaborate and work in team settings.

Altin Toska, the Mayor of Cerrik, created a USAID-supported local youth council in May 2018, which is today comprised of 16 girls and 10 boys, ages 14 to 21, selected from an existing local volunteer group.

“This council is giving youth in Cerrik an opportunity to meet new people, make friends and learn new things,” says Eugent Balla, 15. “We did not have opportunities like this in Cerrik before this activity was established.”

“So many youth in Albania want to leave the country due to a perceived lack of opportunities and because they feel that leaders don’t listen,” says Deni Saballa, 18. “This youth council is a first step for youth to help change that.”

On July 18, USAID trained 20 members of the Cerrik Youth Council on positive models of civic participation. Attendees learned the basics of lobbying and advocacy, specifically for creating improved, safer public spaces. They also discussed some of their own successful community advocacy experiences, such as influencing the municipality to build a wheelchair ramp in the high school and establishing a new sewage system in one of the neighborhoods. Youth also examined other recent examples of public advocacy in Albania, including protests around the reconstruction of the National Theater in Tirana and the construction of dams on the Vjosa River.

At the end, participants identified priority issues in Cerrik to advocate with the local government, including the rehabilitation or creation of sports facilities and general infrastructure, such as sidewalks and parks. The youth also drafted advocacy action plans to reach their goals, which includes working with the municipality to establish a safe community space for youth in a new multicultural center by the end of the year.

The formation of the youth councils in Cerrik and Bulqize is an extension of local governance work that USAID has accomplished in the country during the past 20 years with the creation of citizen advisory panels. These local advisory bodies aim to empower citizens and improve communications with their elected officials. To date, USAID has established 15 panels with nearly 500 members.

Better Policies Lead to Improved Services

Preschool education finance reform, creating a more inclusive and resilient society. Early childhood education is particularly important for improving the educational opportunities and overall quality of life for children, especially those coming from poor or disadvantaged households and also creates pathways to a more inclusive, peaceful and resilient society. USAID’s Planning and Local Governance Project (PLGP) continues to lobby and advocate for the advancement of the preschool education finance reform which was initiated in 2019. This June, the PLGP, together with the MoFE and the Ministry of Education, Sports and Youth (MoESY), conducted a Roundtable Discussion which brought together more than 40 senior finance and education officials from select local governments, the MoFE, and the MoESY to discuss next steps in the process to improve preschool education financing. Discussions continue to focus on four key areas: - Ensuring the preschool finance system is more equitable, transparent, predictable, and stable - Providing funding to cover indicative costs of support services and materials - Implementing a program to provide all preschool children with at least one meal a day - Reforming the MoESY’s deconcentrated Regional and Local Education Directorates Cumulatively these lines of effort would greatly improve preschool quality and enrollment rates as well as simultaneously working to alleviate poverty, improve Overall, as a result of this program, more gender equity, and promote social inclusion and development in Albania. The than 52.000 (71%) of preschool-aged MoFE and MoESY remain committed to continue discussions on all these children will benefit from more appropriate fronts. class sizes – a key precondition for In January 2019, after more than a year of discussions, consultations, and improving accessibility and quality of successful cooperation between the PLGP, the MoFE, and the MoESY, the preschools. This change ensures Albania’s Government of Albania (GoA) committed to increase the level of funding for youngest generation is able to socialize at preschool education by 10%, providing additional funding to those local an early stage, thereby creating governments that had an urgent need for new teachers as measured by their opportunities for a more inclusive and pupil-to-teacher ratios. resilient society. It also frees up additional Even more importantly, the financing system was improved in terms of equity time of mothers and other caregiving and predictability – focusing primarily on the number of pupils as required by family members, allowing the impactful Albanian law and in alignment with international best practices. This change secondary effect of having more time resulted in a general reduction in class sizes, from 18 to 15 preschool pupils per available for participation in work outside teacher. The effects of the reforms have resonated most in those municipalities the home and therefore greater inclusion such as Tirana, Durres, Kamez, Kruje, and Kukes, that had very overcrowded in the labor market for these previously- preschool classes. excluded demographics. “Our municipality needs additional teachers and we are thankful to USAID for supporting local governments and the national government for this positive development in the preschool education finance system.” - Ms. Manjola Metani, Education Development Agency of the Municipality of Tirana.

Better Systems – Better Services

Thanks to the support of USAID, the Municipality of Elbasan can now issue accurate and fair property tax bills, based on reliable data via a GIS-based territory register. Building and property tax is one of the main own source revenues for the local government units in Albania. To date, municipalities have lacked local territorial registers with accurate information on location and other details on individual properties within their jurisdictions and proper instruments to identify taxable properties and related owners. Issues with receiving complete, current, accessible data from the national Immovable Property Registration Office (IPRO) has created problems at the local level. To address this concern of partner LGUs, the USAID Planning and Local Staff of the Municipality of Elbasan go door-to-door to Governance Project has, in the past three years, assisted the partner conduct comprehensive field surveys of all the municipalities of Korça, Fier, Lushnja, Berat, Elbasan, and Kamza, in individual properties and buildings. developing computer-based platforms that execute a Geographic Information Photo credit: Municipality of Elbasan System (GIS) application - essential to creating robust territorial registries. The application includes information on location, size, value, and ownership of the property. It facilitates property tax collection and administration through creation of the tax-related elements of a working territory register. The web-based application’s primary functionality is to support parcel- and building- based query, selection, display, and mapping. The platform facilitates the work of municipal staff in maintaining GIS-based “The digital territory register focuses territorial registries to record all property data, ensuring accurate and reliable on immovable properties and allows us property information that is vital for fair, accurate, and complete property tax to identify the property owner, analyze identification. the property value, manage an accurate Each of the assisted municipalities is currently conducting comprehensive field inventory of real property, and surveys of all the individual properties and buildings within its jurisdiction and maximize tax property revenues,” says uploading this property data into its registry. The Municipality of Elbasan Qemal Tusha, General Director of Tax recently finalized its territory register, with a GIS database containing accurate and Finance Department in the data for more than 35,800 buildings, 53,300 immovable properties and 49,500 Municipality of Elbasan. taxpayers. Property taxes are more than just a source of revenue and growth. They also play a key role in building institutions, markets, and democracy by making a local government accountable to its taxpayers.

Screenshot of populated GIS in the Municipality of Elbasan

Supporting Municipalities in Accessing Private Sector Funds for Strategic Projects

Preparing successful fundable projects for support by financial or donor institutions remains a challenge for Albanian municipalities. Effective projects should be reinforced with comprehensive analysis, considering all possible obstacles and opportunities in the implementation process. They should also convince the funding institutions of the municipality’s capacity to deal with the project’s complexity and absorb its financing. PLGP has supported the municipalities of Fier and Berat to boost local economic development through the preparation of fundable projects to be implemented with the financial support of the Trans Adriatic Pipeline (TAP). Agriculture is a key sector of local economic development for both Fier and Berat, and as such both projects reflect this emphasis.

In the case of Fier, the municipality developed a new regional livestock market project-including feasibility study and construction details. The new market will replace the existing one which operates in the inner city near the railway, in poor physical and sanitary conditions. The municipality plans to build the new livestock market in an agriculture area outside the city, which will benefit the whole region allowing for more frequent use as a market, along with use for other activities such as fairs, bazaars, municipal days, etc. PLGP supported the municipality in developing this project by conducting a feasibility study addressing both construction and future operation and management. The total cost of the market is around 700,000 Euro and will be co-financed from the municipality and TAP. It will meet all technical and sanitary requirements including specific sections for different types of livestock, offices for veterinarians, an emergency room, a quarantine area, toilets, and a large parking area.

In Berat, the main irrigation channel of Mbreshtani will be reconstructed through the co-financing of the municipality and TAP, with TAP investing around 360,000 Euro in the reconstruction of the main channel, and the municipality investing in the branches of the irrigation system. The proposed irrigation system has a length of 7.1 km covering the fields of Mbreshtan, Palikesht, and Starova; and will serve around 550 hectares of agricultural land and 5000 people whose economies are agriculture-based. Over the last 30 years the channel has fallen into disrepair due to lack of maintenance and is no longer functional. PLGP provided technical support for the development of both projects, which are solid initiatives of local economic development. Through the work of PLGP over 700,000 Euros have been raised from external sources (TAP), and another 700,000 Euros will be invested by the respective municipalities. Both projects are expected to be implemented within 2019.

Construction work of the new regional livestock market in Fier.

Strengthening Future Communities through the Youth of Today

Youth in Albania are a prominent influencing force in society today. Despite this, they still lack recognition from local governments and are therefore unable to reach their full potential in building effective and resilient communities. With this challenge in mind, the PLGP has set about the critical process of establishing municipally- recognized Youth Boards (YBs) in our six Women, Peace, and Security (WPS)- partnered municipalities. These YBs give young people opportunities to develop their potential and ensure participation and a voice in governmental processes that impact their futures and communities. Since 2018, the PLGP has facilitated the establishment and formalization of five YBs in the municipalities of Belsh (by invitation), Bulqiza, Cerrik, Librazhd, and Peshkopi. The Cerrik Youth Board was one of the first YBs created, a group of vibrant girls and boys that want to make a change in their lives and their community. Since its creation, the Cerrik YB members have been actively involved in various capacity building and community development activities, ranging from environmental days to advocacy and leadership trainings. “Bringing youth into the fold of the community In May, through a planning and visioning exercise, they developed their concept of and providing meaningful opportunities to an ideal city. This concept included architectural and environmental design, affect change helps prevent violent extremist services, safe places and citizen participation in local government. They presented their projects to then-Mayor Altin Toska and Mr. Brock Bierman, Assistant ideologies from taking root, which is good for Administrator for USAID’s Bureau for Europe and Eurasia, both of whom your community, Albania, and the entire appreciated their sincere passion and ideas. region.” - Mr. Brock Bierman, Assistant Further reflecting their care for public spaces, the Cerrik YB and students from the Administrator for USAID’s Bureau for Europe World Academy Tirana (WAT) met on May 29th, to take part in a collaborative environmental activity. The 40 youths met with the Mayor to discuss the role of the and Eurasia municipality in protecting the environment, planted over 30 trees and other plants in the city center and surrounding areas, and traveled to Banja Lake where they collected bags of trash before enjoying an afternoon picnic and team-building. In addition to developing a social space in Cerrik, The Cerrik YB has grown both in numbers and strength as they approach the one- USAID furnished a newly-renovated library within year anniversary of its creation. In addition to meeting with the municipality to organize and participate in various community activities, they also organize the Palace of Culture in Bulqiza, transforming it activities independently. Even such simple acts as meeting for picnics together, into a functional Youth Center which can now builds the bond they share as YB members from diverse backgrounds, and creates serve as a multipurpose space for youth and the opportunities to socialize. community as a whole. The new Youth Center in Bulqiza offers YB members and other youth from Cultural opportunities to gather as a community are limited in Cerrik. As part of a broader communal effort, USAID/PLGP supported the furnishing of the cinema of the municipality a public space to convene, Cerrik. This new multicultural center (which houses the cinema) was established organize activities and trainings, and access with Italian Albanian Development Cooperation Program (IADSA) funds and library resources. Through various social and represents the positive impact of collaborative donor efforts on vulnerable educational activities, the Youth Center will communities. The municipality inaugurated the new cinema with a celebration strengthen capacities of local young people and attended by 300 citizens, at which the Mayor expressed his and the citizens’ thanks support their development as future leaders. The for the support of USAID in this endeavor. The new multicultural center offers a safe Youth Center serves a crucial purpose for the and inclusive space for the whole of society to engage in social activities and youth in Bulqiza, as it is the only cultural and community meetings. The new cinema will revitalize and invigorate the artistic, artistic institution for them in the entire cultural, and social lives of citizens and will have a sustainable social impact on the municipality. Its operation brings added value not community for generations to come. only for youth, but for the entire municipality as well, and provides further credibility to youth’s role in building resiliency within their communities.

Support to Reduce Non-Revenue Water in Albania

The Government of Albania has identified improvement of water supply and sewerage services as one of its five crucial pillars and priorities under its current mandate. The main objective is to expand access to, and enhance the quality of, water supply and sewerage services for the entire population of Albania. The ultimate goal is to provide uninterrupted water supply to all people, provide wastewater services to protect human health, and minimize negative environmental impacts. In late 2017, the Council of Ministers launched the so- called Water Sector Reform and Action Plan, aiming to improve the delivery of water supply and sewerage services by reducing non-revenue water, improving financial sustainability of municipal water providers, and enhancing transparency and accountability. Responding to the immediate crucial need expressed by the Ministry of Infrastructure and Energy (MoIE), the USAID Planning and Local Governance “There is extreme difficulty in achieving a Project (PLGP) provided primary advisory role in developing the National Approach and Methodology to Reduce Non-Revenue Water in Albania (NRW). reduction in water losses, especially in This approach served to provide an understanding of the different components physical losses, under the current Intermittent of water losses and strategies to deal with each component as well as a clear Water Supply (IWS) operational regimes in description of the actions needed to fulfill the strategies. It also aimed to provide Albania. There is an urgent need to establish an understanding of the framework within which the proposed strategies and actions will become practicable, achievable and sustainable, including the necessary structures and introduce systems required organizational structure. to manage the supply and distribution The conceptual approach was followed by a comprehensive short-term action network under the current IWS situation. The plan, which included main interventions focused to achieve reduction of 3-year short-term action plan targets mainly commercial losses in the eight biggest utilities: Tirana, Elbasan, Lushnja, Fier, reduction in commercial losses, and Kavaja, Durres, Shkodra, and Vlora. This action plan, supported the Ministry of Infrastructure, identifies the key requirements and short-term measures that addresses “quick wins” with reasonably would yield maximal financial return for the service providers with the least affordable investments,” Mr. Bambos possible investments thus contributing towards efficient and effective Charalambous, PLGP’s Lead International management of the water supply systems and achieve NRW reduction of 16% at the national level. Water Demand Expert In addition, PLGP water experts assisted the Prime Minister’s Office and MoIE in holding roundtables and presentations to managing directors of six water utilities. Topics of discussions included baseline analysis and findings of the NRW short-term action plan and the timelines needed for its implementation. The MoIE incorporated NRW actions plans in the draft Performance The Non-Revenue Water Reduction Short-term Agreements to be endorsed by the national and local government tiers for the Action Plan includes interventions in: bulk provision of water supply and sewerage services. metering, unmetered customers, customer PLGP’s Lead International Water Demand Expert, Mr. Bambos Charalambous, database, unauthorized use, malfunctioning presented the GoA National Short-Term Action Plan to reduce NRW, developed customer meters, customer billing database, with the assistance of PLGP, at the 6th Balkans Joint Conference and billing errors, large-scale customers, mapping, Exhibition “Water and Nature” in Tirana. and active leakage control.

The importance of Local Safety Councils and the role of youth as promoters of change

Confronted by the need for better coordination between state, non-state, and civil society actors, several municipalities established and formalized Local Councils for Public Safety. This initiative was triggered by a directive of Agency for Support to Local Self-Government in the framework of territorial reform and implementation of the Law on Local Self-Government. But beyond strategic and legal provisions, there is also a benefit to communities from this strengthened cooperation and interaction to address security issues, including those of radicalization and violent extremism. Unlike other existing local referral mechanisms that are limited in terms of the organization and function, the Local Councils for Public Safety’s scope is unlimited vis-a-vis the topics they cover and the issues they address. In the absence of a dedicated mechanism on radicalism and violent extremism, the Local Councils for Public Safety are the appropriate forum to handle many local “It is unacceptable! The police are not issues that cannot be addressed in the existing referral mechanisms. They reacting to prevent people driving their address push factors in radicalization and violent extremism, such as exclusion, inequality, discrimination, denial of civil rights and freedoms and pull factors, cars like crazy in our town posing risk including the existence of local extremist groups, narratives, and distorted to the life of the people. Police patrols preaching of religious leaders. Important is the fact that the local security council facilitates communication and cooperation between the two key local security should be present whenever and actors: the mayor and the head of police commissariat. wherever the community needs are, Usefulness of the Local Councils for Public Safety in addressing and improving including schools where drug dealers local security parameters prompted the Municipality of Bulqiza to seek USAID support to establish a council and assist with its functioning. The launch and the operate undisturbed,” – Fatri’s appeal first official meeting of the Local Council for Public Safety of the Municipality of Bulqiza occurred on September 12th. Chaired by the Mayor, the meeting was to local stakeholders in this meeting of attended by 11 senior local stakeholders including prefecture, state and Security Council of Bulqiza. municipal police, education department, hospital, social services, environment and forestry, youth board coordinator, and civil society representatives. The Empowering youth and training them on a USAID Planning and Local Government Project (PLGP) supported drafting of the variety of topics is one of the main goals of internal regulations which were adopted and endorsed by the Council. During the PLGP. In July, the members of the Youth Board meeting, the Head of Bulqiza Police and the Director of the Education of Bulqiza were trained on advocacy and Department provided an update on safety and security in Bulqiza and the lobbying as tools to build the capacities of the measures being taken for safer schools. The participants in the meeting provided youth in bringing positive models of feedback and the meeting generated lively discussions. participation through advocacy. During this The active role of youth, and more specifically of the Bulqiza Youth Group specific training, young men and women Coordinator, Fatri Puca, was impressive in the first meeting of the local safety acquired new skills and discussed some of their council. A representative of the selected group of the high school students, Fatri own successful experiences advocating in their raised some concerns related to road safety and drug consumption by youth. community. These newfound abilities empower This young man’s demands and concerns were straightforward and well- youth to speak up and voice their problems and articulated, as he spoke from his heart. Of the various voices in the council, concerns. To them it is more important to be Fatri’s dominated and made the officials take note. Indeed, the head of the heard, not simply in a safety council meeting, Police invited him and his peers to visit the police station and assured him that but also in all forums where they can be part of the Police will place more efforts to address the concerns of the youth. the decision -making process.

The power of a customer-focused government

Building Albanian self-reliance through improved irrigation, drainage, and water services Like many countries, Albania experiences significant challenges in the water sector. Problems with drainage have resulted in catastrophic flooding at certain times of the year. In December 2017 for example, heavy rains led to flooding in central and southern parts of the country and the evacuation of more than 1,500 people. The loss of assets was significant with around 3,500 homes seriously damaged or destroyed and 15,000 hectares of agricultural land flooded. In response to the flooding and to citizen concerns, USAID’s work through PLGP is improving irrigation and drainage in urban and rural areas—an important step towards reinforcing the resiliency of citizens, their homes, and assets, to weather events. PLGP is also strengthening the government’s ability to deliver clean water to its citizens by supporting water utilities, installing ICT tools to increase revenue generated for local The Quality Service Improvement Program (QSIP) governments from water use, and reducing non-revenue water. Together this multi- fosters a service culture within the local government, pronged approach is building self-reliance within the Albanian water sector. instilling customer- and quality-focused attitudes and Impacting thousands in Elbasan encouraging proactive behavior among employees. QSIP is a particularly effective approach because it In the city of Elbasan, the assessment revealed that the municipality’s human combines an emphasis on developing a customer resources and infrastructure for irrigation and drainage were inadequate. The service culture among municipal staff, with a focus department responsible for these services was responsible for other functions and on creating and implementing actions plans that had taken on irrigation as an extra duty. The assessment also found that the city lacked a register of irrigation and drainage areas, an inventory of assets and that directly address priority services. farmers’ service contract records were not maintained. Lastly, no taxes and tariffs Using QSIP, PLGP conducted participatory had ever been collected for these services. Elbasan has the potential to irrigate workshops to generate awareness, understanding, 7,553 hectares of arable land, however these weaknesses in service delivery and commitment to the concept of service excellence resulted in irrigation of only 1,164 hectares in 2017. and a customer-focused institution. The project After only a year of implementation, PLGP work is paying off. In Elbasan, in 2017 supported municipal staff to conduct interviews drainage and irrigation was available for 1,164 hectares. As a result of QSIP action internally (with other municipal staff) and externally planning, drainage and irrigation has increased to 3,865 hectares (over 200% (with citizens) to solicit their perception of the increase), providing 12,130 farmers access to irrigation. In addition, 180 km of services provided by their municipality and identify irrigation and drainage canals were cleaned, and the drainage network increased with the creation of 70 km of new canals. Farmers had not seen this level of the service area of greatest concern. The QSIP intervention in irrigation for almost 30 years. interviews gave citizens from rural communities the opportunity to share their concerns regarding urgent Miri Caka , 30, an area farmer noted, “This area has always been under water priorities. Results in all cities, revealed the dire every winter for as long as I remember.” His father Kadri added, “I don’t recall conditions of irrigation and drainage services and having seen any drainage canals working in the entire area. If the municipality continues this work, I think this land will definitely be more fertile and boost called for urgent improvements, prompting the production all year round.” municipalities of Elbasan, Fier, Patos, Kuçova, and Lushnja to develop and begin implementing service Osman Sula, a farmer from Elbasan owns 1.5 hectares of greenhouses and improvement action plans. together with his neighboring farmers created a small association of 15 farming families and have started to export their products. “This year has been really good for me and my family, as the irrigation and drainage service has improved. We are expecting increased quantities and better quality of products”. This village currently has only 70 hectares of greenhouses but Osman is sure that in a year there will be at least 700. The project also saw increases in irrigation and drainage in Fier (84% increase) and Kucova (260% increase). In Patos, 1,115 hectares of drainage and irrigation channels have been cleaned and 1,434 farmers have benefited.

Transparent Government is Good Government

Facilitating citizen advocacy efforts and participation in decision-making. Transparency is a key element for good and accountable government. USAID’s Planning and Local Governance Project (PLGP) collaborated with the Municipalities of Lushnja and Vlora to develop their first-ever Citizens’ Guide to the Municipal Budget. The Guides translate the municipalities’ budget documents from complex technical and financial documents into simple terms which citizens, youth, taxpayers, and other stakeholders can understand. Topics elucidated include the use of public funds; how priority areas are determined for funding, despite what may have been promised; major Members of Citizens Advisory Panel consulting the investments of the municipality; and outlining the fiscal and financial perspective guide during the presentation in Lushnja. for the medium term in layman’s terms. Distribution for the Guide varied by location: in the Municipality of Lushnja, the Guide was presented to a group of civically-engaged youth and the Citizens Advisory Panel (CAP), a formal advocacy body established with the support of the PLGP and comprised of involved citizens from Lushnja. On the other hand, the Municipality of Vlora distributes a copy of the Guide to every citizen visiting the municipality offices. This is the third consecutive year that the PLGP is engaged in promoting budget transparency and citizen engagement. Over these three years we supported 5 municipalities in publishing all of the treasury transactions of the municipality on their website, clearly accounting for every money spent by the municipality. In addition, 8 municipalities have developed Citizens Guides to the Municipal Budget. The Citizens’ Guides to the municipal budget Budget transparency and engaging in participatory budget processes bring prepared with PLGP’s support. many benefits: • It allows for the improvement of the budget itself--through feedback, the municipality can respond more quickly to citizens’ concerns and priorities; • Greater transparency and communications translate to improved effectiveness and efficiency of public policies and spending, as a special accountability is employed; • The gesture of opening up municipal ledgers to the public leads to more trust in government, and therefore a more resilient society and stronger local democracy; and • Budget transparency is also instrumental in generating higher revenues for governments as citizens are more likely to pay taxes and contribute donations if they trust that their money will be well spent.

USAID leads efforts to improve the quality of preschool education in Albania

Preschool education is the costliest - and arguably the most important for Albania’s future - of the new functions that were transferred to local governments in 2016. For three consecutive years, this function was financed with transitory earmarked specific transfers for every single municipality, calculated on the basis of historical costs by the Ministry of Finance and Economy (MoFE) and the Ministry of Education, Sport and Youth (MoESY). The transitory period ended in 2018, and as of January 2019, the earmarked specific transfers were transformed in unconditional transfers at full local discretion. Besides the transformation of earmarked grants into unconditional grants, Albanian policymakers at the national and local level needed to improve the method of allocating preschool education funds to each municipality. Historically, funds were allocated on the existing number of teachers employed in the system in each municipality. On the other hand, the Albanian legal framework requires that funding preschools, should be allocated primarily on the number of pupils. The analysis conducted by USAID’s Planning and Local Governance Project (PLGP) shows that, the current system does not adequately reflect the social and “Equal access to relevant, quality demographic changes over the past 27 years in Albania and that this, coupled with education creates pathways for the unequal enforcement of the regulations on class sizes, have led to significant greater economic growth, improved differences and disparities in preschool education quality in Albania. health outcomes, sustained To address these disparities, and ensure a more stable financing system, throughout 2017 and 2018, PLGP partnered with the Ministry of Finance and democratic governance, and more Economy (MoFE), the Ministry of Education, Sport and Youth (MoESY) and local peaceful and resilient societies” - U.S. policymakers and experts to conceptualize Albania’s new system for allocating Government Strategy on International funding for preschool education and to ensure that the full decentralization of preschool education at the municipal level is accompanied by a stable financing Basic Education. system that works to improve the quality and access to preschools.

As a result of our joint efforts, funding for preschool education teachers in 2019 will increase by 9.1% when compared to 2018, while the funds will be allocated to local governments, based primarily on the number of pupils – as required by the Albanian legislation and as recommended by the international best practices. These two changes allow for the hiring of at least 438 new preschool “This is not statistics, but a real teachers (10% more) that will be allocated in those municipalities that have a more opportunity to improve the situation in urgent need based on the preschool pupils to teacher ratio. This will reduce class sizes from an average of 18 to 15 pupils per teacher and high of 26 to 18 pupils per those communities that have a more teacher in some extreme cases like the municipalities of Tirana, Kamez, Durres etc, urgent need for preschool teachers and creating therefore the preconditions for improved services. provide for a better service for the youngest of our citizens,” states the As of 2019, the system will be based primarily on the number of pupils (60% on the Minister of Finance and Economy number of pupils and 40% on the number of teachers). This will help improve the Arben Ahmetaj. service by better reflecting the demographic changes of the past 27 years and at the same time smoothing out disparities within and across municipalities, while helping improving quality and access to preschools.

Ultimately, this reform positively impacts 70% of Albania’s preschool pupils living in half of Albania’s municipalities.

Women’s economic empowerment

Building a Grassroots Approach with Municipal Support.

In 2019 the PLGP began to focus on one of the pillars of the Women, Peace and Security framework – the economic empowerment (enabling financial agency) of women. As with many of our other Components, this is implemented via a two-fold approach: 1) facilitating personal, local level connections between key stakeholders, and 2) instituting structural supports for change. With regards to women’s economic empowerment (WEE), the PGLP held workshops in Cerrik, Librazhd, and Pogradec to gauge the community’s perceptions on this issue.

Arben, a 58-year old unemployed man from the Egyptian community who has experienced both the Communist and post-Communist eras, took part in one of the workshops conducted by the PGLP. From a comparative perspective he noted that, “The gender gap has decreased. The male role is more oriented in domestic duties, but the incorporation of economic independence in the female gender role is still a One unexpected positive result of missing link, leading to inequality and gender-based violence, especially for marginalized communities”. Bringing together over 100 women and men from these connection-building sessions diverse backgrounds, ages, and experiences painted a broad picture of women’s economic issues among our municipalities, bringing secondary effects into focus for was the employment of several women discussion. These include issues such as early childhood forced marriage, gender- by another women-led business in based violence, and the phenomenon of “kinship care” (when grandparents become primary caregivers for their grandchildren, in our communities usually due to Pogradec. “This was a good starting migratory employment practices). point on how the business sector can In order to institutionalize these types of connections, the PLGP has begun work in support unemployed women,” said Librazhd to establish a collaborative process by which the municipal offices for employment can communicate the needs of the business community to those job- Mukades, a local entrepreneur woman seekers residing within their municipality. The primary objective was to provide in the field of food processing. She women an opportunity for active participation in local governance, ensuring their concerns and perspectives were reflected in the agenda of the local business went on to say, “I will exchange sector, and bringing an awareness of current employment needs as well. contact with those women, and I can Participants discussed challenges faced by women and those in the most vulnerable populations (such as the rural Roma and Egyptian communities) and offer employment for some of them. If brainstormed potential solutions, recommendations were presented and an action you will search you will find, if you will plan and follow up coordination meeting were set. wait for miracle to happen, your From the municipal side, the labor office advisor stated that based on the collaborative dialogue between the municipality and the businesses which were situation will be the same”. This present in the coordination meeting, there were 30 open positions for women’s attitude of empowerment was also employment. Five women present in the activities will follow procedures to start working in these positions as a result of this open communication. Another echoed in Cerrik by Shqiponja, age 30, beneficial outcome of the meeting was the plan to include women’s thematic issues in municipal council meetings and to open the floor for increased women’s when she said, “We can’t search and participation as well. expect our rights, equality, and well- Along with our Gender-Sensitive Value Chain Analysis work, these workshops, being from the men, we can provide forums, and collaborative councils lay the foundation for tailored actions towards them to ourselves”. women’s economic empowerment and increased labor market participation across our partner municipalities moving forward and will provide sustainable structures beyond the life of the project as well.

ADVANCING FISCAL DECENTRALIZATION REFORM

Shared tax revenues have become an important pillar of fiscal decentralization reform in Albania and its neighboring countries. Personal Income Tax (PIT) sharing has been promised by the Albanian legislation for more than two decades, although it was only in 2017, with the approval of the Law on Local Self-Government Finance, developed with the key support of USAID’s Planning and Local Governance Project (PLGP), that the actual percentage that would be shared (2%) was determined. The PLGP is working with the Ministry of Finance and Economy (MoFE) to implement for the first time in Albania the sharing of 2% the revenues from the PIT with municipalities. This will increase local governments’ revenues from shared taxes by 35% in annual terms (by ALL 736 mln or $ 6.4 mln). Currently, Albania shares 25% of the revenues from the national Tax on Used Vehicles and 5% of the national mineral rent. USAID is currently working with the MoFE to address the main challenge of PIT Albanian municipalities to receive for the first- sharing – the identification of the origin of the PIT revenue and the PIT time shares of the revenues collected from the taxpayer. As in many other countries in the region, the allocation of PIT National Tax on Personal Income revenues to municipalities according to the residence of taxpayers requires additional investments and efforts in the information technology systems to allow the automatic identification of the origin of the PIT revenue and the residence of the PIT taxpayer. Until the establishment of the IT infrastructure, the PIT revenues are expected to be shared with municipalities in accordance with the number of populations residing in each municipality. It is expected that the MoFE will begin allocating PIT revenues on a per capita basis in 2019. PLGP will continue to work with the MoFE so that the shares of the PIT are Personal Income Tax sharing has been promised allocated to local governments in accordance with the origin of the PIT revenue by the Albanian legislation for more than two decades, although it was only in 2017, with the and the residence of the taxpayer. At the technical level, our efforts are approval of the Law on Local Self-Government currently focused on establishing rules and procedures and overcoming Finance, developed with the key support of the technical constraints between the responsible institutions (the MoFE, the PLGP, that the actual percentage that would be General Tax Administration, the Civil Status Register Office under the Ministry shared was determined of Interior and the National Agency for Information Society). With the exception of Kosovo and Bulgaria, all post-communist countries in the region share some percentage of PIT with their municipal governments. From a comparative analysis of previous years conducted by PLGP, it emerges that, in Macedonia, municipalities receive 3% of the PIT; in Montenegro, 12% of PIT; in Republic of Srpska in Bosnia and Herzegovina, LGUs receive about 25% of the PIT. Serbia as well shares the PIT coming from different sources, 1.5% to 2.5% of the tax on inheritance and gifts and 2.5% of the tax on the transfer of absolute rights. Sharing revenues from the PIT is important because it creates incentives for municipalities to promote economic development because local governments have an incentive in supporting the creation of new jobs because they would receive more PIT revenue. PIT sharing also creates incentives for local governments to work with the national government to reduce the gray economy and therefore benefit from more PIT revenues and it also helps satisfy the demands of richer municipalities to keep more of the wealth they generate.

Asset management: The Art of balancing Performance, Risk and Cost

Water utility companies are under more pressure than ever to improve their overall performance and cost efficiency. The aging system makes it increasingly difficult for water utility companies to provide the services desired by the current customer base. Aging fixed assets equate to increasing operational and servicing costs, resulting in disproportionately high operating costs which must be managed by weakened service capacity. The best way to face this challenge is to introduce best practices through an Integrated Asset Management (IAM) Approach. The overall scope of the Integrated Asset Management Platform provides water utilities with improved management, better services, increased financial benefits, higher creditworthiness, and enhanced compliance and transparency. Based on a PLGP recommendation and subsequent discussions with the Mayor of “Moving away from what we are used to Elbasan, the Municipality of Elbasan has agreed to participate in the Integrated doing daily is very difficult, but when the Asset Management for Water Utilities in South-Eastern Europe Program which is implemented collaboratively as a strategic alliance, jointly financed by the German change presented to us increases the Federal Ministry for Economic Cooperation and Development (BMZ) and the private benefit of the utility and therefore better partner HydroComp (HCE). For Albania, these efforts are coordinated through the service to our clients? Rest assured that we hub of the Water Supply and Sewerage Association (SHUKALB). will embrace it and use it to guarantee However, because the Elbasan Water Utility is a considerably large utility for this program’s standard operating procedures, it was agreed that PLGP would provide improvement in all technical, financial, and additional support and capacity building assistance to prepare datasets for the data service aspects of our utility,” said the conversion and evaluations. PLGP will also provide training to additional Elbasan Technical Director of Elbasan Water Utility, personnel on the use of the software and IAM methodologies, ensuring sustainability of the methodology beyond the life of PLGP’s support. Mr. Doçi. For the past five months, the PLGP Asset Management experts have been working in tandem with the Elbasan Water Utility technical staff to design a Utility Asset Management Approach, which includes building the asset datasets with proper “Asset Management has been ignored for attributes, transposing all data information into the Asset Management Platform, and operating the Asset Management Software effectively. This process has been decades in our Water Sector. Renewing monitored daily by the EDAMS’ (Asset Management Software) team using a cloud- and replacing the nation’s public water based, online platform. infrastructure is an ongoing task. Proper As a result of this intensive partnership, the main transmission network of the urban Asset management can help utilities area along with approximately 50% of the water supply network served by Elbasan Water utility has been uploaded onto the EDAMS Platform. In parallel, the Elbasan maximize the value of their capital as well as staff is registering all rural systems and Water Supply System GIS data in villages their operations and maintenance costs. are being converted and uploaded to the EDAMS Platform. This has been very challenging work, as the utility lacks proper water supply system maps, making it Strategic asset management is not quite difficult to locate buried assets throughout the territory of Elbasan Municipality. necessarily based on the quantity of More than 170 km of water supply pipes, 3 main reservoirs sites, and 3 main well resources you have, it is more about fields have been uploaded to the EDAMS. The PLGP experts are supporting the developing an appropriate plan and water utility’s technical staff to validate this data and will continue to assist them with subsequent issues that may arise during the operation of the EDAMS Platform. implementing streamlined processes and The technical staff of the Elbasan utility have shown high levels of motivation and procedures to maximize the investment in are working together to fulfill this goal, ensuring that the progress made to this point those resources.” - Hantin Bonati, Vice will continue to move forward beyond the project life of PLGP. Minister of Infrastructure and Energy.

Dialogue on Local Government Finance Reform

An open and inclusive dialogue based on timely, accurate and reliable data between the national government and local self-governments is key to improving both service delivery to citizens and the efficiency of the overall central and local public administrations. Under such auspices, USAID’s Planning and Local Governance Project, in partnership with the Ministry of Finance and Economy (MoFE), has developed and published a report on Local Government Finance Indicators for fiscal year 2018. This is the first official report produced by the MoFE entirely dedicated to analyzing the status, trends, and performance of local government revenues and expenditures. The report was prepared as part of the MoFE’s efforts towards evidence-based and data-driven policy reforms to increase transparency and accountability and result in more effective use of local public financial resources. It provides an opportunity for both the central and local governments of Albania to better “The Report is an excellent document understand and improve policies in an informed manner based on measurable providing an opportunity to analyze and patterns. In addition, by providing user-friendly information on sources of funds support discussions on achievements, and how they are utilized by municipalities, the report benefits citizens and special interest groups who seek to improve their understanding of their lessons learned, challenges and the next municipality’s financial management, further facilitating their participation in steps necessary to improve the financing of local decision-making. municipalities every year. It is the first time To nurture evidence-based dialogue the PLGP and the MoFE hosted a National that the MoFE prepares such a report and Conference “Reinforcing Dialogue on Local Government Finance: Challenges, Opportunities, Transparency and Accountability” on May 23rd, 2019, bringing we hereby commit to preparing it on an together more than 160 representatives from the MoFE, mayors, deputy annual basis, together with a National mayors, local practitioners and experts, civil society organizations, and the Conference which shall serve as an open donor community. This Conference came at a critical moment, coinciding with platform for consultation in future years” - the fourth anniversary of the implementation of the territorial and administrative reform and the second anniversary of the implementation of the Law on Local Erjon Luçi, Deputy Minister of Finance and Self-Government Finance, both of which constitute major milestones in Economy. Albania’s path towards stronger local governance. From this perspective, the Conference provided an excellent opportunity for mayors, deputy mayors and local government practitioners to raise their voices regarding the continued need for improving the financing of local government responsibilities, accelerating the process of property tax reform, implementing the sharing of revenues from personal income tax with local governments, and establishing more appropriate financing instruments for local economic development, thereby increasing the opportunities for people in more remote areas. Recognizing the importance of continuing a data-driven, informed dialogue, the MoFE committed to continue publishing the Report on Local Government Finance Indicators and conducting a Consultative Conference on an annual basis to reflect on past achievements and challenges ahead to improve the financing system. PLGP is proud to have supported the MoFE in institutionalizing an open intergovernmental dialogue with local governments by setting these new standards for data availability, transparency, and informed policymaking.

For Effective Municipalities, Active Communities, Safer Citizens

Among the many services citizens expect from local officials, security-related activities are of primary importance. Civil protection, community relationship- building, the prevention of corruption, and dispute resolution are among the functions a municipality must provide. Violent extremism (VE) and radicalization provide a fundamental challenge for Albania’s local governments. Although VE is a national and even global challenge, because of the immediate physical threat posed to citizens and the fact that it challenges democratic values within communities, the local level is often the most critical battleground. Current practitioners face far more complex threats of violent extremism and radicalization than those previously faced and therefore require far-sighted and better- coordinated interventions.

To assist municipalities as they work to address the root causes and prevent the spread of VE, the USAID Planning and Local Government Project (PLGP), in cooperation with the Coordination Center for CVE, prepared the Guide: “For Effective Municipalities, Active Communities, and Safer Citizens”. The Guide brings issues related to P/CVE to the attention of municipal officials, citizens, communities, and civil society actors and provides reflections and recommendations to better address the variety of factors that lead to radicalization and violent extremism within the Albanian context.

The Guide takes P/CVE efforts out of the theoretical realm and provides practical applications to readers. It is organized around four thematic chapters: Effective Municipalities, More Active Communities, More Secure Citizens, and Monitoring and Evaluation. Sub-chapters contain the relevant Albanian legal framework (laws and bylaws), as well as recommendations for improvements informed by international best practices.

For those reporting cases of suspected radicalization or VE, there is a useful, A cross-section of the whole of society must be clearly delineated table which shows the currently-overlapping legal mechanisms present to prevent VE. Women and girls are a for addressing issues along with information on the local actors who are assigned to crucial piece of this puzzle, as outlined in implement them. A complete subchapter is dedicated to empowering municipalities United Nations Security Council Resolutions through partnerships, particularly through 6 mechanisms generated and officialized (UNSCR) 1325. The PLGP recognizes the key at the local level by the central government including: the referral mechanism for role that can be played by women and girls as domestic violence, the community policing structure, Local Safety Council roles and peacebuilders and the unique insights they responsibilities, the referral mechanism for countering human trafficking, the referral have in recognizing the early signs of mechanism for children at risk, and the Schools as Community Centers initiative. These mechanisms enable municipalities to better respond to citizens’ needs for radicalization among those in their safety and security and help prevent radicalization and violent extremism. communities. In the same vein, religious leaders, teachers, and those representing Security measures are not the only focus of the Guide. The PLGP also recognizes marginalized groups such as the Roma and that more engaged citizens reflect a more resilient community overall. The chapter, Egyptian communities must all be involved and “Active Communities”, addresses community structure initiatives, citizen advisory considered when planning community-based panels (CAPs), youth boards (YBs), and civil society organizations which can work interventions. together to provide platforms for citizen engagement and advocacy. Communities which are supported by their municipalities and which feel interconnected with other communities, create a cultural and local identity for the city. Creating community spirit improves overall quality of life. These elements work collaboratively to stimulate civic participation in the planning and decision-making processes. Conversely, a lack of these characteristics encourages social isolation and can create opportunities for radicalization.

From hope to goals

USAID supports the Water Utility of Saranda to develop for the first time a Five-Year Business Plan and a Performance Improvement Action Plan When the USAID Planning and Local Governance (PLGP) Water Experts first arrived in Saranda, they found in the Water Utility (WU) team a willing and eager partner; however, after years of effort trying to design a plan on their own, the Saranda WU had only been able to complete an annual budget forecast. It was perfect timing for the utility and the municipality of Saranda to work together with PLGP to think outside the box. With the Territorial Administrative Reform in 2015, the Saranda Municipality experienced huge changes in both their increased land “As the General Director of Saranda Water area and additional responsibilities associated with service delivery. In addition, Saranda also has the special distinction of being one of the most popular tourist Utility, I can firmly state that we are focused spots on the Ionian Sea, which put increased demands on their water sector. on putting customers first. We are always In partnership with the PLGP and subcontractor Valu Add, Saranda undertook the striving to deliver water safely and reliably development of a Five-Year Business Plan and Performance Improvement Action while providing the best overall value to our Plan. The approach to business planning for the Saranda Water Supply and Sewerage Utility has been both strategic (to rationalize investment in the service customers and tourists. This business plan area), as well as operational (to encourage the water utility to evaluate its existing will help us look ahead to plan and prepare services in a comprehensive manner and prioritize actions for improvement in for changing customer expectations, critically-identified areas). innovative technologies and practices that Through a bottom-up process that involved a variety of stakeholders and senior will enhance customer experiences, and management, Saranda was able to identify priorities; set objectives; analyze current performance levels; and forecast future trends in human, financial, and economic explore possibilities in water management resource constraints. This approach aimed to increase the efficiency of resource systems to make our water system even allocation and ensure sustainability of services moving forward. Once a consensus was reached regarding the key assessment criteria, a set of performance metrics more reliable. In addition, the plan will help was defined along with targets in the short, medium, and long term. us to make timely investments for improved The WU used internal and external cost projections to identify future infrastructure water supply system efficiency, so that the improvements and to estimate growth and operating costs – information that will service area of the Saranda Water Supply guide the water utility over the next five years. The business plan was developed in a thorough, inclusive, transparent, and collaborative manner by enabling and Sewerage Company is fully prepared to communication with several key actors, donors, and other institutions. They also respond to the increased water demand collected concrete information, integrated several scenarios inside each business needs of the tourists and residents during plan model, and facilitated consensus and understanding of implementation with the utility management and local government officials. the summer period. We are proud to work hard to provide safe, clean and reliable water to Saranda Municipality and we appreciate the assistance provided by USAID to complete this important task.” - Sheme Lulo, General Director of Saranda

Water Utility. The Business Plan of Saranda Water Utility will serve as a roadmap in the future for the Capital Investment Program that Saranda WU leadership has committed to plan and implement over the course of the next five years. This building block is crucial as the municipality moves forward in both augmenting their financial capabilities and investing in their service delivery as the destination of choice for visitors, both domestic and foreign.

Improving the Quality of Tourism offer

Berat Economic Development Advisory Council dedicates efforts to the specific demand of the Asian tourism market

Berat is an international cultural destination for tourists. In keeping with its designation as a UNESCO world heritage site, it offers an unforgettable experience for passionate visitors of culture, history, art, and nature. The rich cultural heritage of its architecture is complimented by the beautiful nature and landscapes surrounding the city. Local and organic ingredients feed into a delicious culinary tradition served with the warmth of hospitality for which Albania is world-renowned. The recent creation of four new administrative units of Berat can now offer more cultural and natural heritage sites to tourists, increasing accessibility and making it possible for greater numbers of visitors to experience the city and its surrounding countryside. In 2018 Berat was visited by approximately 110,000 guests, 60% of whom were foreign visitors. This is an increase of 34% over numbers in 2017, a “This meeting served to foster strong indication of trends to come. Based on the priority of the tourism sector in the municipality of Berat and at the request of its private sector, the Berat cooperation between local businesses Economic Development Advisory Council dedicated its last meeting of 2018 to and national tour operators by sharing address the specific demand of the Asian tourism market. experiences on how to better respond The biggest Albanian tour operator catering to Japan and the Asian market, Albania Experience, presented the needs and requests of this market segment to the demands of the Asian tourism when visiting Berat. Topics of presentation included: requests from the Asian market. It also served us to better tourism market, especially Japan, regarding accommodation; best practices offered in similar cultural heritage cities, promotional events and festivals; and coordinate the work with the tourism weak points and challenges from the previous tourism season in Albania. businesses in the municipality, The meeting concluded with a promise to add more accommodation structures encouraging ideas to improve the in 2019, and it is expected that 200 more rooms will be available in Berat for the international and domestic market next year. Tourist guide standards are tourism product and to organize joint now regulated by a legal framework, and representatives of the handicraft marketing and promotional activities in sector are striving to meet the higher demands of visitors as well, in quality and quantity. our municipality of Berat’’, said Klejda “Tourism businesses are developing fast in Berat municipality, and we are Kusta, Director of the Tourism Culture, interested to establish contact with tour operators and travel agencies that deal with the Asian market. This market represents a high number of tourists and a Youth & Sports Directory at the long duration of stay in Europe and we are working to improve our tourism Municipality of Berat. offer within the high standards of Asian market requirements”, said Monika Xheblati, owner of a local guest house, “Today’s meeting was very informative, and the real cases explained helped us to not only better understand, but also (taught us) how to respond to the market demand.”

Intergovernmental Dialogue and Consultation Lead to Better Policies

An open and inclusive dialogue between the national government and local self- governments is key to improving both service delivery to citizens and the efficiency of the overall central and local public administrations. Under such auspices, the Government of Albania (GoA), with the support of the USAID’s Planning and Local Governance Project (PLGP), established the Consultative Council between the Central and Local Governments (CC) in late 2016, marking a major milestone in Albania’s progress towards effective decentralization policies and legislation. In 2017 the CC convened on two occasions to discuss the draft Law on Local Self-Government Finance and the 2018 draft Budget Law and Fiscal Package. These meetings resulted in impactful improvement of policies and legislation Central and Local Government officials discuss before final approval by Parliament. In 2018 the CC convened nearly every month, discussing more than 54 draft laws and bylaws, and providing an policies and legislation impacting local self- opportunity to all 61 mayors and local government representatives to express governments. their opinions before final approval by the Council of Ministers and Parliament. “The CC now constitutes a unique platform and an effective mechanism for bipartisan intergovernmental dialogue and consultation between the national government and local self-governments from the entire political spectrum,” – says Bekim Murati, the General Director of the Agency for the Support of Local Self-Government, which is also the CC’s Technical Secretariat. The Agency has played a remarkable role in stimulating the functionality of the CC by institutionalizing the regular meetings of the council on a monthly basis, strengthening the mechanism for setting the agenda, providing feedback to participants on the conclusions of the meetings, and by widening the scope of participants (including those such as the Ministry of Education, Sports and Youth, and Ministry of Justice that were not originally included in the CC). Meanwhile the major challenges remain the follow up of the implementation of recommendations and improvement of the consultation standards. “The CC needs a strong Technical Secretariat to do the prep-work for effective meetings of the CC and to ensure that post meetings, line ministries do their follow up to reflect local governments’ comments and suggestions. Mayors and local government officials need to feel that their voices are heard and valued” says Kevin McLaughlin, Chief of Party of the USAID’s Planning and Local Governance Project in Albania (PLGP). PLGP has supported the Agency and “The CC now constitutes a unique platform and the CC technically, logistically, and financially during 2018 and is proud to see an effective mechanism for bipartisan the CC become a key and indispensable institution in the lawmaking process in intergovernmental dialogue and consultation between the national government and local self- Albania. “This would have not been possible without a partner as committed as governments from the entire political spectrum” the Agency for the Support of Local Self-Government”, continues Mr. – Bekim Murati, the General Director of the McLaughlin, also promising the continued support of PLGP into 2019. Agency for the Support of Local Self- Government

Korça Study Tour serves as a knowledge-sharing opportunity for staff of other water utilities across Albania

The water sector in Albania faces a pivotal moment. The Government of Albania (GoA), in line with the UN Agenda on Water, has identified improvement of water supply and sewerage services as one of its five crucial pillars and priorities under its current mandate. Water utilities are not in sufficient compliance with the principles of cost control, continuous efficiency improvement, and full cost recovery; causing a vicious circle of underfunded service providers, insufficient investment, and deteriorating infrastructure in particular for wastewater management. Currently there are 58 water utilities in Albania, structured as joint stock companies owned by the local governments. Korça Water Utility is the best operating Water Supply and Sewerage Utility in the country supplying 24-hour pressurized drinkable water to approximately 99% of its municipal area. It has the lowest rate of non-revenue water (NRW) and operates a full sewerage network accompanied with a wastewater treatment plant. Indeed, this utility ranks as one of the best utilities in the Western Balkans. The USAID’s Planning and Local Governance Project (PLGP) assisted the “Based on what I saw during the two-day Korça Water Utility in 2013 to develop a comprehensive 5-Year Business Plan study tour in Korça, the customer care and Performance Improvement Action Plan, which were rigorously implemented procedures are of the highest priority at this and monitored by Senior Management of the Utility. moment for us at the Tirana Water Utility. On September 27th and 28th, PLGP’s Water Team put together a study tour to this utility with 5 water and wastewater utilities, representing the USAID Project After the study tour, I met with our Customer partner municipalities of Tirana, Lushnja, Fier, Vlora, and Patos, with the Care Department staff to draft a handbook of intention of sharing and learning from successful experiences and best procedures and processes. Our 5 customer practices. care offices are the face of the Tirana Water The study tour demonstrated practical implementation of good technical and Utility with the citizens and to this end we commercial practices with a specific focus on: need to make sure customers are served • Management and monitoring of water production; well.” - Evis Gjebrea, Deputy General • Metering management (meter-reading process, control center); Director of Tirana Water Utility • Management of customer services; • Operation and management of wastewater treatment service plant. PLGP is also assisting model municipalities to prepare a comprehensive assessment of water supply and sewerage services in the expanded area to include: • Collection of all available infrastructure documentation for the ex-communal systems to be transferred; • Identification of water demand and non-revenue water characteristics in the expansion areas; • An analysis of existing staffing in the expansion areas that would need to be assumed by the surviving utility; and, • Defining new strategic objectives for which revised performance improvement action plans will be developed.

Local detailed planning: From design to development opportunities

Territorial planning has evolved in Albania in recent years to make a qualitative leap forward towards integrated spatial development. Planning is now seen as a valuable tool and process enabling sustainable development. An important change in legislation was the shift from plot-based to area-based planning and development, which addresses the inclusion of various public and private interests in efficient and fair land development. Area-based planning and development guarantees that principles of equity, proportionality, and inclusivity are respected throughout the process. Together with efforts and initiatives for drafting comprehensive territorial plans, the area-based development approach is a step towards institutionalizing a new planning and development culture in Albania.

USAID’s Planning and Local Governance Project (PLGP) has provided direct contributions in this regard through assisting 5 partner municipalities in the preparation of their General Local Territorial Plans (GLTPs), preparing toolkits for planning and development, and through training and coaching at the municipal level. In cooperation with the government of Albania, PLGP has also extended its knowledge and work-model to other planning and development initiatives in Albania. Nevertheless, the challenge for planning in Albanian lies in its implementation, with Regardless of whether financial calculations are local detailed plans (LDPs) as one of the key instruments to implement the area- based development approach. LDPs are applied at smaller territorial scales, for needed or not, two key aspects should always be urban (neighbourhood) redevelopment and/or community planning. Efforts are considered in order to facilitate the development currently being made to bring LDPs from a fairly narrow perspective of use and process: land ownership and local capacities. distribution of socio-economic activities in space to instruments that offer a large The latter reminds us of the necessity to address potential in promoting local economic development and facilitate access to financial land development and local economic sources for public infrastructure and interests. development as two closely interlinked For access to funding, LDPs should incorporate financial calculations and feasibility processes where new job opportunities and a assessments that are open and transparent to the public at large. While private better business climate are created. PLGP’s developers and/or landowners carry out such assessments, municipalities, as roundtables on LDP approaches and practices representatives of public interests and guarantors of community benefits, should also have consistently emphasized how land be involved in assessing financial opportunities. In addition to making sure development leads to economic development communities receive benefits that exceed costs in land development, municipalities along with providing hands-on knowledge for also guarantee that economic development is proportionately spread across the capacity-building of municipal functions in territory. handling this resulting economic influx. As a In the absence of previous experiences in Albania, PLGP experts built a model for result of the cooperation with the National feasibility assessments for LDPs that was implemented in cooperation with partner Territory Planning Agency, these roundtables municipalities of Elbasan, Fier, and Tirana. In the case of Fier, a range of options have benefited not only PLGP partner were explored and financially assessed for enabling the development of a sports municipalities, but all 61 municipalities in center as part of a wider riverfront regeneration plan. The Municipality of Elbasan is Albania. aiming to develop a multi-modal transportation terminal. Their feasibility study provided short and long-term development solutions, while facilitating the municipality’s decision-making and communication with citizens regarding this future public investment. The Municipality of Tirana plans to complete one of the city’s interior ring roads, while reducing (at least) expropriation costs and (in the best scenario) capturing a portion of the increased value of land. The LDP’s feasibility study has proposed various options to reach the most optimal and feasible result for all stakeholders, including the community at large. These are three complex studies that connect strategic public projects with urban redevelopment and private investment. Such studies offer comprehensive solutions to the municipalities, as well as greater transparency in communication with the community, landowners and private developers.

USAID-funded Tax Administration systems as instruments to increase own source revenues

Financial empowerment of local government units (LGUs) has been a fundamental issue in the framework of implementing local decentralization. To increase own source revenues (OSR), LGUs need to improve and strengthen their tax collection procedures. This can be achieved by using tax information systems that also help increase transparency and avoid deviations and corruption on the part of local taxation administration systems and officials. The USAID Planning and Local Governance Project (PLGP)-designed Tax Administration Information System (TAIS) is a computerized system built to substantially increase productivity in local tax administration processes, saving both time and money, while at the same time providing taxpayers with better service. Through TAIS, all local tax information systems and databases are integrated and provide the tools required to facilitate tax compliance, combat tax non-compliance, and satisfy information requirements at the operational, “Familiarization with the various managerial, and internal control levels for the effective management of a reporting instruments provided by the modern Tax Administration. TAIS system facilitates our work on tax TAIS functionalities implement the overarching cycle of local government tax administration and local tariffs, administration: from the administration of taxpayer data, calculation of taxes, considering that the taxes we collect invoicing and payments, debtors’ identifications, and reporting of revenues. will be returned to citizens in PLGP provides ICT improvements, technical assistance and on-the-job training investments,” – said Aida Saraçi, to staff in our partner municipalities on a variety of management and governance issues. Special focus has been given to establish building blocks Director of Local Tariffs and Taxes, to: address systemic weaknesses and improve local tax collection; strengthen Municipality of Elbasan. financial management and control to ensure the transparent,accountable and sustainable use of local public financial resources. PLGP believes that the improvement of local tax administration can be achieved through the computerization of local tax administrations and continuous improvements in the exchange of information with the national tax administration and other central government agencies. After three years of local tax administration using TAIS, PLGP partner municipalities of Elbasan, Kamza, Lushnja, Berat, Kuçova, Fier, Patos, Vlora, Vora and Saranda are showing huge increases in OSRs from 18 to 94% (42% average) based on the chart below:

Budget Reallocation Provides Access to Food Aid in Times of Crisis

USAID engages at the local level to strengthen communities and build resiliency. As the world adjusts to a new normal amidst the COVID-19 pandemic, families throughout Albania are desperately seeking basic aid. In response to confirmed coronavirus cases within the borders, the Government of Albania took swift action: closing schools, non-essential business, and clearing the streets within a week. With many families still recovering from the 6.4 magnitude earthquake in November, and sources of income suddenly cut off or drastically lowered, local governments were inundated with requests for assistance. Access to services (including grocery stores and pharmacies) was also drastically impacted, with many no longer able to travel as public transportation abruptly ceased and closed borders eliminated support from emigrated family members. As fiscal Municipal staff of Cerrik delivering food to families in need. packages and budgets for 2020 had already been approved, how could mayors Photo by Municipality of Cerrik. respond to this increased need from their citizens?

In these times of duress, municipalities looked to USAID’s Planning and Local “We didn’t have any food left at home. These Governance Project (PGLP) for support for thousands of families facing food food packets will feed my family and help us insecurity. These families encompassed the most vulnerable populations, including the elderly, persons with disabilities, single mothers, and victims of survive in these difficult times,” said a mother domestic violence. In response, PLGP’s Municipal Expert provided virtual of three in Cerrik. coaching to finance officers and suggested alternative ways to organize Municipal Council Meetings in our partner municipalities of Bulqiza, Cerrik, Dibra, Kamza, Librazhd, and Pogradec. Municipality of Cerrik was able to reallocate monies in their 2020 budget to provide By reassessing their municipal budgets, mayors were able to reallocate funds with appropriate approval from Municipal Councils, increasing the percentage of additional emergency funds for economic and their total annual budgets designated as Emergency Funding and enabling the food aid for people from vulnerable groups in distribution of food and aid packets to those in need of this crucial support. their community including: Elderly people living Movement of money in this way allows for transparent support to citizens in real alone, People with Disabilities and families in time and is an example of the agile response needed as we adjust our focus need. during this crisis. In Bulqiza, the Foreign Assistance Coordinator expressed his gratitude, stating, “I would like to thank wholeheartedly the USAID Project for its work and commitment to help the Municipality of Bulqiza with valuable information and recommendations on how to cope with this situation of “Natural Disaster.” The steps taken in Bulqiza included a reallocation of 3 million ALL (appx. 25,800 USD) to support those in need, including food support for 200 families over two months and a call for volunteers and businesses to contribute their support as well.

Building a spirit of community and solidarity, USAID continues to support Albania during the current crisis and move forward together to face the challenges ahead as we recover.

BUILDING BRIDGES: REFLECTING ON THE PAST AND LOOKING AHEAD TOWARDS CONTINUED GROWTH

Anyone familiar with the phenomenon will tell you: Preventing and countering violent extremism (P/CVE) is complicated. In Albania, factors creating violent extremism have shown to be more closely aligned to socio-economic struggles than to religious ideologies. No matter the factors, the challenge for the Government of Albania remains the same. How can it best serve and protect its citizens against those who would wish to cause them harm? The National Coordination Center for CVE was established in 2017 to address this issue. What started out as two motivated staff with a small office in the Prime Minister’s building, the CVE Center has grown exponentially to be regarded as a model for the Western Balkans with its approach to building community resilience and creating sustainable government policies. USAID’s Planning and Local Governance Project (PGLP) was an early partner for the CVE Center. Interventions followed PLGP’s model of using data (such as our gender-sensitive municipal mapping assessments) to direct practical activities at the local level, “PLPG was one of the first projects that the CVE ensuring they interventions were grounded in a fulsome understanding of Center worked with, and the collaboration has been communities as well as evidence for effectiveness. At the local level, PLGP worked very successful and effective. Differently from other with municipalities and existing or mandated civil society bodies that could sustain programs, PLGP’s work and connections in the field grassroots activities beyond project timelines and through political shifts. were complimentary to the CVE Center’s philosophy Simultaneously, PLGP and the CVE Center pursued national- and regional-level of working with local government units and citizens. activities. PLGP embedded a Gender Expert within the CVE Center to provide input One challenge for the Center is the creation, and focus on human security, including the needs and roles women and men in strengthening, and capacity building of local P/CVE. PLGP was pleased to partner with the CVE Center in conducting a National Conference for Frontline Defenders, bringing together 1500 individuals from mechanisms which already exist in law, but are not ministries such as Education, Defense, and Health and Social Protection in a functional. With PLGP, we began to address these whole-of-government initiative. issues through various joint initiatives. There are many activities that the Center will carry on and To ensure the CVE Center could continue to advocate for change after the project, PLGP’s experts created a CVE Guide for Local Governments promote as best practices to be replicated moving , and a brochure to raise citizen awareness, which were the basis for P/CVE trainings conducted in 21 forward. Working with PLGP the last two years has municipalities. PLGP disseminated the training methodology and materials to CVE been a great chance to set the foundations for Center staff and other GoA ministry partners in a Training of Trainers. PLGP dealing with such a delicate topic which is so very facilitated cross-border workshops with Kosovo and North Macedonia to identify important for Albanian communities.” trans-national issues unique to these communities and connect counterparts. - Rozana Baci, Expert on Civil Society and Security From a local perspective, the CVE Center identified Local Public Safety Councils (LPSCs) as the partner for P/CVE campaigns and information gathering about challenges in their communities. LPSCs were not yet established in some PLGP partner communities and in others lacked consistent membership, training, or reporting guidelines. PLGP’s CVE Expert supported the establishing of LPSCs in Bulqize, Dibra, Kamza, and Pogradec, and submitted a Policy Paper on P/CVE Referral Mechanisms to support the Center as they advocate for standardization and institutionalization of approaches. The CVE Center is now positioned to support local stakeholders and frontline practitioners to counter and prevent violent extremism in Albania and the region. USAID is proud to have contributed to its whole-of-society approach and strengthened lines of communication across levels of government and the donor community, and looks forward to the CVE Center’s continued growth.

#YouAreNotAlone - Opening the Door for Victims of Domestic Abuse

Increasing Awareness as We Shelter in Place Once-bustling streets have fallen silent, and Albania’s lively café culture has ground to a halt. Amidst the global pandemic, businesses, households, and society at large across the nation now operate under restrictions of time and movement. Although these measures have been accepted as a best-practice to fight the spread of COVID-19, unintended consequences are negatively affecting those at-risk for domestic violence. The orders to “shelter in place”, in effect, trap victims in close quarters with their abusers. Increased economic stress, coupled with the uncertainty of an indefinite period of isolation, can further exacerbate situations leading to violence. In a country where domestic violence will statistically be experienced by over half of women, this is an alarming situation. Fortunately, reporting mechanisms are in place for domestic violence and violence against women. When limited social engagement cuts off normal means of communication, how can we raise awareness of these issues and provide resources to those most at-risk? USAID’s Planning and Local Governance Project (PGLP) recognizes that local governments must be vocal in their support of victims of domestic violence and condemnation of violence against women. Working with our Gender Expert and Gender Equality Officers (GEOs) at the local levels, PLGP prepared an awareness campaign, cautioning aggressors that violence will not be tolerated and providing information for reporting cases of abuse to those who may be at- risk. Using the hashtag #YouAreNotAlone, the campaign urges women to reach out and report threatening or dangerous situations. It is more important now, in these times of imposed isolation, that women feel connected to resources and a Awareness campaign poster published in Cerrik’s website and community beyond the four walls of their homes. This message was social media. Erald Lamja for USAID. immediately carried forward by four partner municipalities in Cerrik, Dibra, Kamza, and Pogradec and reached over 9500 people. “Posting these messages is really important, especially in these days, and we thank USAID for their support,” stated one GEO. “We are all facing unexpected challenges”. "For an abused person, the most difficult feelings to overcome are fear, isolation, and a lack of confidence that someone can hear, understand, and not judge their behavior. Under the conditions of isolation precautionary measures to prevent COVID-19, these feelings become more evident and block the ability to speak out and report the violence experienced. Conversely, the situation of USAID continues to raise awareness and stand isolation makes the perpetrator feel even stronger, believing that the victim is with women and those at risk of domestic unprotected and completely "in his hands". In these days of dealing with violence, providing support and COVID-19, we all want to know that we are not alone and that we will win this encouragement that we are in this fight situation together. This message is even more appreciated when addressed to together. those who have been/are being abused. The fight against domestic violence and the fight against COVID-19 are the fight for life. Life is precious and must #YouAreNotAlone be protected at all costs!" - Monika Kocaqi, PLGP Gender Expert.

YOUTH EMPOWERMENT THROUGH SELF-DEFENSE

Youth in Albania unfortunately encounter aggression, violence, and other risk factors for various types of abuse in many homes and communities. Increased awareness of risk factors, and evidence about and access to appropriate responses can mitigate them and help build safer environments. To enable youth to identify and address conflict situations, USAID’s Planning and Local Governance Project (PLGP) conducted the Empowerment through Self-Defense Program (ESD) with young women and men from six Youth Boards (YBs) in PLGP’s partner municipalities of Bulqizë, Cërrik, Dibër, Kamëz, Librazhd, and Pogradec. The ESD, an innovative program tailored for women, children, and youth, includes awareness-raising activities on different forms of violence with empowerment through the development of simple, easy-to-use, self-defense techniques. These experiential courses combined awareness, assertiveness, and verbal confrontation “This has been an awesome experience. I feel skills with safety strategies and physical techniques to protect those at-risk of stronger and safer now. The ESD Program helped becoming victims of violence. Two hundred and thirteen youth participated in the us learn strategies that could be applied in a ESD Program and were equipped with the ability to successfully prevent, resist, variety of uncomfortable or violent situations,” and escape threatening situations. However, the ESD trainings went beyond simply physical scenarios and also provided psychological awareness and verbal skills to said Megi, a 15-year old from the Kamza YB. participants. It taught youth that when they are confident with their personal space, boundaries, and physical skills, they can enhance their relationships with positive and fulfilling interactions.

“I am glad I could get this training. I feel stronger and prepared to face difficult situations now. We learned about the power of words, importance of setting boundaries, and controlling our feelings and minds.” -Kleart a 17-year old from the Pogradec YB. The ESD Program also aimed to increase Youth Board members’ self-esteem and confidence as they learned strategies and practiced tools to respond to situations using the ethic of inflicting least harm in resolving conflicts. “The ESD Program was a wonderful experience. I didn’t know I had all this power in me. The class allowed me to release the fears around my physical safety and gain self-confidence and self-control.” -Hera, a 17-year old from

the Dibra YB. “Thanks to USAID and PLGP for such an exciting journey with wonderful young girls and boys from Benefits from the program are numerous, both for the youth and their communities. these communities. The ESD Program will not The young women and men who participated have shown greater acceptance and only empower youth, but also strengthen their trust of themselves and one another and continue to cultivate improved families and communities, in order to prevent relationships among YBs and their peers. ESD trainings also reduced the fear situations of abuse, violence, bullying, crime, and associated with potential attacks and equipped them with techniques for effective victimization.” - Gentiana Susaj, ESD Trainer self-protection, extending the circle of safety that is crucial to build resiliency in youth and communities across Albania. “I would describe the ESD Program as a great combination of emotions, energy, adrenaline, and empowerment. It was a very useful experience which I’ll always remember, because it taught me to be strong and know how to protect myself or a friend in need.” -Arjola an 18-year old from the Dibra YB.

Empowering Women and Young Women and Men through local incentives

Increased independence extends women’s and youth’s ability to contribute to their communities. Economic empowerment of women and youth is important in building community resiliency, including to challenging problems in Albania like domestic violence and violent extremism. USAID/Albania’s Planning and Local Governance Project (PLGP) worked at the local level to support women and youth entrepreneurs through economic empowerment activities and municipal incentives. To identify the value chains, women participants, and activities that would have the most transformative impacts, PLGP conducted a gender-sensitive value chain analysis—Albania’s first that was designed to reveal the economic contributions and potential of women. PLGP’s gender and economics experts recognized that their support to women’s economic activity and entrepreneurship could be amplified “I learned about this from a friend of mine and while by leveraging the project’s established relationships with municipalities. Local tariffs talking decided to apply and see what happens. It are set and administered in accordance with Law No. 139/2015 "On Local Self- wasn’t that easy to go through the procedure, but Government." PLGP worked closely with partner municipalities during the 2020 municipality staff helped me. It is not a lot of money budget planning process to coach the municipal technical staff to include incentives but it helped, I paid 25% less local taxes and tariffs for women and youth entrepreneurs in the annual fiscal package. and from January, I am now the owner of a small As a result of the ongoing coaching and support given to the local staff, tariff clothing business. The pandemic made it difficult but I reductions were approved for the first time by the respective municipal councils in am happy as even during these difficult times, I am the municipalities of Bulqizë, Cërrik, Dibër, Kamëz, Librazhd, and Pogradec. ” helping my family and raising better my children, For new businesses managed by girls and women, local tariffs are reduced said Shkurta from Cerrik. from 20-50% for the first year of their operations. For businesses opening from individuals (girls and boys) up to the age of 25, local tariffs are reduced by 20-50% for the first year. During his presentation of the annual budget in the City Council, the Mayor of Cërrik, Mr. Andis Salla, said: “The idea is simple, and makes perfect sense, when women and youth are empowered economically and are part of decision making in their communities, societies are more cohesive and more peaceful.” In the beginning of 2020 in PLGP’s partner municipalities, 11 women and girls benefited from the incentive and opened and registered new small businesses providing goods and services in clothing, hairdressing, and tailoring. The reduction of local taxes and tariffs for women is expected to impact not only their inclusion and empowerment in economic activities, but also change the dynamics in the families and the role women play in the community. PLGP provided complementary support—technical assistance and commodities—to the women who received municipal fiscal incentives to enhance their chances of successful entrepreneurship and grow the economic impact of their work for them, their families, and communities.

GIRL SCOUT TROOPS IN ALBANIA: BUILDING STRONG FOUNDATIONS FOR FUTURE LEADERS

The Girl Scouts of Albania (GSOA) was established in September 2016 with support from the World Association of Girl Guides and Girl Scouts (WAGGGS) and Peace Corps Albania. As of May 2018, the movement had expanded to 10 different regions, with over 400 members. Girl Scouts is based on non-formal education and participatory learning. This method uses games and activities to create challenges that girls are encouraged to solve on their own, a practical way for Scouts to learn and build self-confidence. Inspired by the scouting programs established by the Peace Corps, USAID’s Planning and Local Governance Project (PLGP) established six Girl Scouts Troops (two in Kamez and four in Pogradec) in 2020. To begin this process, PLGP worked with the Girl Scouts of Albania (GSOA), the Peace Corps volunteer placed in “I am a retired teacher who has raised generations of Bathore (Kamez), and Une Gruaja (a CSO in Pogradec). Troop leaders and co- young people in Pogradec. From my experience, I leaders were identified in both communities, and trained in the creation and believe that the empowerment of girls starts at very management of Scout Troops, including tasks such as selection of Scouts, action early stages and is crucial for their growth and planning, and conducting regular meetings and activities. development. I knew about Girl Scouts from As part of these Troops, over 60 girls (ages 6 to 14 years-old) are engaging in American movies and could not believe they would important community activism, leading programs on environmentalism and be a reality in our community! I was so excited to join recycling, generating funds for activities and outreach, and learning life skills like this initiative supported by USAID’s Planning and cooking and knitting. The program provides these new Girl Scouts with tools that will support their personal development and set them up for success throughout Local Governance Project and create the first Girl their lives. Through team-building and reflective activities, they can gain the skills Scout Troop in Pogradec, named “Girls’ Power”. The necessary to develop a strong sense of self, identify and solve problems in their girls from this troop possess the determination and communities, display positive values, and form and maintain healthy relationships. passion to become strong, successful women. We have organized different activities and will continue to do so, not only because the girls are excited to be part of the troop, but their parents are also very happy that they are engaging in activities that support their development. This is the best leadership experience for girls in this age. I am sure that Girl Scouts will make our community a better place to live.” -Shpresa Nikolla, Girl Scout Troop Leader

“Being part of Girl Scouts is awesome. It’s so much fun. I have made new friends, and together we spend great time together and plan for new activities,” says Naomi Mato, a 10-year old Troop member. “We also discuss our future profession and how we’ll become strong women in the future.” Girl Scouts Troops deliver a foundational experience that generates benefits that can span a Scout’s lifetime and echoes in her community through her leadership.

Creating an Environment for Success: Transforming a Women’s Cooperative in Dibra

Life in the mountains can be difficult when cold winters isolate rural areas with snowfall, and the drop in temperatures impacts the production of the traditional food known as jufka. This pasta-like product requires warm air to dry naturally. Temperatures in the north of Albania do not accommodate this process from November to March, automatically limiting the production cycle. While life in Diber, an eastern and mountainous municipality, may be a struggle, the women there are resilient. For years, a group of 20 women in Maqellare have been known for their high-quality jufka. Despite this renown, a lack of business acumen coupled with the short production window has kept the group at a subsistence level.

PLGP supported the cooperative of jufka producers with wrap-around services covering all phases of their production and marketing. Through training sessions “It’s unbelievable how much we evolved in such a covering business administration, requirements for business registration, and food safety standards, the women were empowered to run their existing activity more short period of time. We have been producing jufka efficiently. They were also able to access new markets with appropriately priced for many years, but we were informal. We could not and packaged artisanal products. With their newly registered business, they also even release an invoice to our clients and could not achieved the Albanian products standard, giving credibility to the quality of their enter the market. During the last six months we goods. The production cycle was extended with the purchase and installation of a registered with the authorities and achieved the AG state-of-the-art air circulation system. With this in place, the cooperative can make standard. We also improved working conditions, jufka year-round in their facility, resulting in an overall production increase of 40- ensured year-round production, and improved 60% and providing an additional fifteen jobs for women in the community (five packaging and labelling. Now we are entering the within the facility and ten artisans who work from home). market with our own registered brand! All of this Previously, jufka was sold in large unlabeled boxes at a price of $2/kg. As a result during a pandemic. I am very grateful to USAID for of PLGP’s efforts in certification and labelling, the price of jufka increased 35-55%. the support, to the American People for their The group is negotiating with supermarkets and high-end shops in Tirana for a generosity, and to the team of PLGP for their price of $4-5/kg. Coupled with the increased production, the cooperative will see an dedication!” added income of $35,000-40,000 this year. -Lirie Rexha, Leader of the Cooperative in Maqellarë “Now we can work year-round and enter a larger market, thanks to USAID,” said Melita, one of the members of the group. By providing an enabling environment for success, USAID partners with women artisans to help them bring their goods to market and opens the door to new levels of stability and hope to them, their families, and their communities.

Enhancing Business Opportunities for Women in Kamza

With a total area of 37.18 km2, the Municipality of Kamza is nestled into the capital Tirana and is ranked among the municipalities with the highest level of average unemployment at 50 percent (although it is higher among women and youth). Despite their drive, would-be entrepreneurs, especially women, cannot sustain businesses because of skills or knowledge deficits, lack of equipment, and an absence of support for startups or business modernization. To help women overcome these issues, USAID’s Planning and Local Governance Project (PGLP) conducted the Women’s Small Business Program (WSBP). Based on PLGP’s gender-sensitive value chain analysis, many value chains identified in Kamza had significant barriers for women’s employment. To provide a solid “This was a unique experience for me. I am a foundation and generate local ownership of this process, PLGP launched the divorced mother of two children. After the divorce I WSBP activity in Kamza with the participation of women and representatives from lost everything including my business and I had to the municipality, including the Mayor and other senior officials. Thirty participants restart all over from the ground up.Thanks to USAID were selected from a pool of women heads of household, currently unemployed, and to the team of experts I regained the self- and survivors of domestic violence. Experts in participatory women’s economic confidence to believe in my abilities. I can now empowerment guided participants through three phases: classroom training, expand my business services and hire one more individual/group coaching, and practical business planning. The women generated employee.” -Greta, a young entrepreneur in Kamza. business ideas based on their professional knowledge, experience, and the observed needs of the community. Planned or launched business offer services in childcare (including sports and education) (5); traditional handicrafts and tailoring (4); catering (2); beauty salons (2); and the garment trade (1). These new businesses have the potential both to support families with additional income and to strengthen the community as a whole, providing vital services to Kamza’s vulnerable people. Following the WSBP, the Municipality of Kamza collaborated with PLGP to give the women entrepreneurs a platform to pitch and launch their businesses. Fifteen women completed the entire six-month program from December 2019 - May 2020, and already seven will become first-time business owners. The WSBP held a closing event that offered participants an opportunity to present their business ideas and detailed business plans in front of a jury composed of “My only skill was the creation of beautiful handmade representatives from PLGP, the Municipality of Kamza, and a financial institution. traditional costumes; however, I could not be in the Their presentations showcased business plans shaped by the training program. All market as I lacked the business knowledge and presenters displayed increased business acumen acquired through the WSBP confidence to start a legal business. My entire life was training and coaching process, and their efforts will be promoted as a model for taking care of my disabled husband and the education women entrepreneurs in Kamza moving forward. In support of these newly of my two children. When I heard about the program, I established businesses, PLGP provided relevant commodities assistance to thought this may be good on paper, but that it could several of the women who made use of items such as sewing machines, office not help me. It all resulted so well! I learned a lot in the furniture and shelving, and hairdressing equipment. Coupling commodities with program; It was very well explained and simple to business skills reinforced the new businesses’ model for growth and has allowed understand. At the end of the program, I was even able many of the women to hire additional employees from within their communities, to prepare a business plan and presented it to a jury. I was so excited when I was selected as one of the expanding the circle of impact. The Municipality has been an enthusiastic partner winners! USAID also helped me with new equipment, throughout these activities and will continue to be an ally for these small which allows me to take more orders and ensures a businesses through various tax incentives and other financial assistance measures. sustainable income for my family. I would encourage other women like me to have more trust, generate new business ideas, and believe in themselves.” -Trendafile, head of household in Kamza.

Planting Roots for Sustainable Incomes

The Medicinal and Aromatic Plants (MAPs) subsector generates income for about 100,000 households across Albania. Industrial production focuses on conventional mechanized cultivation in large plain areas; however, many poor households in rural, mountainous areas engage in the wild harvest of MAPs. This work presents risks like the constant threat of wild animals, dangerous terrain, and a lack of physical safety when collecting and transporting the produce on small, poorly maintained roads. The socially isolating work provides little income to the families involved and often causes damage to the environment as well, through improper harvesting techniques.

Recognizing the potential for growth in this sector, the Planning and Local “I have been collecting wild plants for many years Governance Project (PLGP) implemented small-scale MAPs programs to promote without making any relevant income. Thanks to their cultivation, improve harvesting techniques, and boost marketing efforts in USAID’s support, hopefully this year we are not only Bulqize, Cerrik, and Diber. With a focus on women’s engagement, these efforts making a profit but can plant roots for a sustainable tapped into a largely informal workforce that became larger as more women were income for the years to come.” involved in the production, processing, and marketing phases of this value chain. -Lutfie Xheta, MAPs producer in Bulqizë. Through the technical assistance that PLGP provided to MAP producers, forty-five women and their families improved their working and living conditions from the increased income. PLGP’s technical assistance, coaching, and support for product inputs (e.g., seedlings) covered all phases of production including brokering market access. Protocols and technical manuals ensured the transfer of knowledge of sustainable farming practices, moving women away from sometimes inefficient and dangerous wild harvesting. Experts met with groups and individuals to teach them best practices for propagation, cultivation, and harvesting. Solar drying panels reduced drying times and food certified transport sacks ensured the quality of products was maintained to from field to market. PLGP liaised with farmers and export companies to ensure fair and equitable contract agreements were reached. All of these efforts were showcased within the communities, promoting women’s economic empowerment and value-chain inclusion as a best-practice to generate “My family never thought that we would be able to income and build community resiliency. cultivate our own land, because we lacked both the Regarding the safety of wild harvest, PLGP advocated for the rejuvenation of fields money and the knowledge required for this type of which had lain fallow for over 20 years. Now, four hectares of fields (Bulqize 1.5 business. Thanks to USAID’s support, my neighbors hectares, Diber 1.7 hectares, Cerrik 0.8 hectares) are cultivated with mallow and my family came together and decided to flowers which will generate significant revenues of $80,000-$100,000 in total. Each cultivate a piece of land that had not been used for of our women beneficiaries will receive approximately $30-35/day during the more than 20 years. A prosperously cultivated land harvest season (up to four months) and average profit of $2,000-3,000 for each and the revenues generated from it provide farmer as a result of their partnership with PLGP. Through this transformative sufficient income for our households, so we do not process, farmers will be able to reinvest in seedlings (or propagate their own) for have to go to the mountains for risky harvesting. next year’s harvest and build upon the established relationship with exporters to Indeed, we are encouraging our fellow farmers to promote sustainable farming and stability moving forward. engage in this successful activity.” -Hana Tifekcia, mother of three in Dibra.

Women’s Small Business Program uses Digital Delivery to Overcome COVID-19 Restrictions

The Municipality of Kamëz is a suburb of the capital Tirana and is centrally located within Albania. A medium-sized city with 125,632 inhabitants, Kamëz is 100 times more densely populated than the national average, with nearly 3,400 persons per square km. A rapid transition from a rural to urban community overloaded the existing infrastructure, and the growth in average family size outstripped the rate of economic development. This imbalance in expansion has led to an overall unemployment rate of 50% in Kamëz, with women (55%) and youth (63%) being most adversely affected. Even prior to the increased hardships under the current Women participating in the virtual training session. pandemic of the covid-19 virus, citizens of Kamëz suffered from social exclusion and a lack of available economic and social opportunities. Participants thank the team of experts In early 2020, Albania experienced its first case of confirmed covid-19, and the for conducting the Government of Albania responded swiftly. Life changed drastically in Kamëz and all training. across Albania. Schools were closed, women and men could not go to work, many businesses were forced to close, and public events and gatherings were forbidden. -“Thank you very These developments further intensified difficulties that women in Kamëz face. In much for the addition to their traditional domestic roles, mothers now became teachers for their training. You children. Additional economic stress and isolation raised the risk for domestic and changed our day.” intimate partner violence, statistically experienced by over half of Albanian women.

“It was a blessing.” With covid-19 shuttering businesses and further repressing the economy, how could those already struggling in Kamëz sustain their loved ones? USAID supports “Thank you, I really women as they work to improve the quality of life for their families. In Albania, needed to talk to all USAID’s Planning and Local Governance Project (PGLP) conducted Gender- of you.” Sensitive Value Chain Analyses in six partner municipalities including Kamëz, advocating for inclusive economic development and recognizing the (often “The training session on finance and taxes was necessary informal) contributions of women to current operations. Based on their findings, aunched the Women’s Small Business Program (WSBP) in to finalize my business plan. Now I have clarity on the PLGP designed and l late 2019. Using a mentorship framework, the 30 women selected (with diverse steps I have to undertake”, says Klodjana Premci, whose backgrounds including single heads of household, unemployed, and registered dream is to establish a day care center for children with victims of domestic violence) are guided through three phases: classroom training, special needs. individual/group coaching, and practical business planning. The result? Women will be able to refine their business ideas into concrete plans and move forward as The WSBP strives to strengthen the entrepreneurship empowered entrepreneurs. skills and business acumen of marginalized women in These activities were even more crucial considering their potential impact for Kamëz. As a result, participants are now able to: women in a post-pandemic economy. With this in mind, PLGP was compelled to • Understand and cultivate an entrepreneurial creatively move forward with the WSBP and made plans to complete virtually the mindset and framework; three phases. For some, this would be their first online training. With a little • Advance their abilities for innovative technical assistance from their children, relatives, and friends, all of the women business generation, financial planning, were able to download software and took their interactions online! On April 20th, the contracting, product development, sales, final classroom module addressing financial planning, cash flows, and other and marketing; operational necessities was conducted via a group video conference, and coaching • Develop a basic business plan and pitch sessions were offered via phone and video calls as well. The final and most their ideas to investors; and practical stage, creating their business plans, was now possible. As a result, 15 • Start-up a new business and/or consolidate women were able to finalize successfully their business plans. Lateral thinking existing ones. during times of uncertainty enabled USAID not only to empower each of these These steps provide guidance through all phases of women individually, but also to build a sense of community as they move forward business planning and implementation, laying a together as positive agents of change within Kamëz. strong foundation on which to build a new future.

YOUTH BOARDS: EMPOWERING YOUTH FOR A BETTER FUTURE

Although youth in Albania are recognized as agents for social change, they continue to be largely excluded from local governance and face a daunting lack of opportunity in their communities. This environment leads many to seek education and employment abroad, and leaves those who remain feeling hopeless that they could contribute to a “better Albania.” USAID’s Planning and Local Governance Project (PLGP) experience with young women and men shows they possess the strength and vision to be positive forces within their communities. Empowering them to recognize those strengths and take action, PLGP created Youth Boards (YBs) in the six partner municipalities of Bulqizë, Cërrik, Dibër, Kamëz, Librazhd, and Pogradec. YBs are comprised of

energetic volunteers and provide members with social interaction, as well as “I joined the Youth Board because I knew it would be outreach opportunities to engage with local government and other community organizations. Nearly 450 youths actively engaged in constructive dialogues with a great way to meet people with similar interests, municipal officials on relevant issues. These sessions give a voice to these young meet with local authorities, and contribute to my advocates, and help LGUs build constructive, representative policies to better community in a meaningful way. I’d never been part serve their citizens. of a group like it, and I’d never been involved in youth “USAID’s assistance in the creation of the Cerrik Youth Board significantly activism before. I try to help my community through supported municipal efforts to build the capacities of local youth on my everyday actions, but it’s also good to do leadership, active participation in decision-making, and community something more direct, such as becoming a youth development,” said Erjola Çalja, the General Director of Cerrik Municipality. board member.” -Erson, an 18-year old from the Kamza YB The Youth Academy Program equipped YB members with foundational knowledge and skills for their adult lives, and numerous collaborative activities nurtured their

engagement with local authorities and the broader community. After-school activities such as field days and festivals enriched their social lives. Environmental clean-ups and issues-based campaigning not only elevated their awareness of the problems facing citizens, but provided a platform for them to discuss tangible steps they could take towards change. “We have gained so much from various trainings we got on leadership, advocacy, youth activism, effective communication, and personal development. We also had open sessions on volunteerism, safe spaces, recycling, and antisocial behaviors,” said Alda from the Dibra Youth Board.

Photo: Bulqiza Youth Board members during a meeting in the YB center Although all six YBs were formally recognized by the municipalities, many lacked safe spaces to meet. Reinforcing the value of YBs as hubs for social engagement “When we started our work with youth in the partner and activism, PLGP created six Youth Centers, one for each board. Ranging from municipalities, one of the biggest challenges was the refurbishment to complete building renovation, each of these centers now functions as a gathering point for youth and many are further utilized to engender community lack of venues for organizing activities. None of the engagement as a whole. PLGP’s Youth Boards have empowered young women municipalities had a youth center or similar place to and men to recognize their value, develop and utilize tools for transformation, and convene. Now youth have a home to meet and spend enjoy the physical and social space to move positive change forward, for time together, and municipalities have a place to themselves and their communities. bring youth together and organize activities.” -Laureta Memo, PLGP Civic Engagement Expert 7.3 PERFORMANCE INDICATOR REPORT/PMP, TABLE BY YEAR Over the course of the project, USAID consulted and approved six Performance Monitoring Plans (PMPs) with a total of 54 indicators over the life of project (LOP). Throughout these PMP revisions, indicators were dropped, added, and revised (renumbered and/or reworded). Table 7-1 presents a summary of performance indicator achievements over the LOP.

Table 7-1: Summary of Performance Indicator Achievements over the Life of Project

Base- LOP LOP % Indicator Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Notes line Total Target Achieved

In Year 2, the Decentralization Experts Group did not meet 1.1} Number of institutions 25 despite repeated represented at the 0 25 0 25 25 25 NA NA NA NA 25 (not 100% discussions with and Decentralization Roundtable cumu- promises to USAID from events (initially 1.2) lative) MoI functionaries, hence delaying PLGP planned activities.

1.2} Number of municipal 568 Target exceeded due to council members successfully high demand for such completing USG-sponsored (315 training. New training 0 10 220 100 50 165 23 NA NA NA 490 116% training and/or capacity male, curricula were introduced building activities (initially 1.3, 253 to municipal councilors reworded in 2013) female) after the TAR enactment.

1.3} Number of Target exceeded due to laws/amendments or high demand from the government decisions 0 3 5 7 8 12 7 9 11 4 66 35 189% various ministries for affecting and promoting project support (especially decentralization drafted with MoFE). USG assistance (formerly 1.4)

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 92 Base- LOP LOP % Indicator Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Notes line Total Target Achieved

In Year 1–4 PLGP measured public perception on government 2.1} Percentage of attendees transparency and at public hearings and/or accountability through consultative processes on CAP. Following the budgets and services who enactment of TAR, in Y5–8 report that they felt the PLGP collected this 0 0 84% 90% 90% 55% 65% NA 42.30% NA 42.3% 80% 53% meeting is transparent and indicator through the CBSs that government responsive for newly established to citizen/community-based municipalities and captured organization ideas (formerly a wider (and new) area. 2.2, reworded in 2017) This change explains the decreased figures during later years of implementation.

2.2} Number of local government staff that 1,222 Target exceeded due to receives USG-assisted (667 the continuous requests municipal management and 0 302 140 180 80 340 30 90 60 NA 700 174% males, for support from LGUs operational skills training 555 over LOP. (formerly 1.3, reworded in females) 2013)

PLGP supported 18 LGUs over the LOP, 15 of them were initially direct PLGP partners and an additional 3 received coaching on urban planning. Following the November 2014 2.3} Number of LGUs contract modification and receiving USG assistance to 61 (not the TAR enactment, PLGP improve their performance 0 21 19 30 23 53 23 61 61 22 61 cumu- 100% extended its support to the (formerly 2.5, reworded in lative) 6 model municipalities 2013) (Berat, Elbasan, Fier, Korca, Kucova, and Lushnja). The project offered training and technical assistance to all other LGUs (upon their request) on various topics. 22 municipalities reported under Y9 come from

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 93 Base- LOP LOP % Indicator Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Notes line Total Target Achieved

P/CVE support which is also reported under 3.6.

Target exceeded due to: 1) improvements in the legislation on local taxes and fees (property tax reform, clarifying responsibilities etc.); 2) 2.4} Average percentage 0.1% 10.5% PLGP helped to build the 7,732,12 increase in OSRs for partner 3% above above 17.83% 6% human and technical 7,000 communities (January 2012– above Actual Actual NA NA NA NA NA NA above above 297% capacities of partner ALL (in December 2015) (initially 2.6, baseline of Year of Year baseline baseline municipalities to collect total) reworded in 2015) 1 2 and administer local taxes (ICT interventions [TAIS] were complemented by trainings, study tours etc.); and 3) increased efforts from local authorities to collect taxes.

24.1% 2.4/1) Average percentage 2% 3,613,41 30.5% above increase in OSRs [Own above 61.9% 6 % 4,000 above actual 1031% Same as the above Ind 2.4 Source Revenues] for partner NA NA NA Actual NA NA NA above above ALL (in baseli of achieved reasoning. communities (January 2016– of Year baseline baseline total) ne Year December 2016) 4 6

Target exceeded due to the fact that there PLGP 2.5} Number of LGUs that had 15 partner LGUs Y1–4 establish a regular mechanism in total; therefore, the LOP to solicit input from civil target was 15. After the society on constituent needs 0 0 14 14 14 13 16 11 5 NA 19 15 126% November 2014 contract and priorities (regular modification and TAR meetings, councils, or enactment (after the June roundtables) (formerly 2.7, 2015 local elections), the reworded in 2013) annual target for Y5–8 was 11.

2.6} Number of partner LGUs that regularly publish 0 0 0 8 5 0 0 NA NA NA 13 100% the Municipal Council 13 Decisions and make available to the public through

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 94 Base- LOP LOP % Indicator Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Notes line Total Target Achieved

different media (websites, gazette, print, etc.) (initially 2.6, then 2.7, then again 2.6)

2.7} Number of partner 18 (not LGUs assisted in securing 0 0 14 10 10 14 15 8 5 NA 18 cumu- 100% alternative financing (initially lative) 2.7, then 2.8, then again 2.7)

300

(not cumulati ve number)

2.8} Number of civil society 542 Target exceeded. Following representatives successfully (cumulat 270 (not TAR, the project expanded completing USG sponsored 0 0 270 270 270 300 0 NA NA NA ive in cumu- 111% the CAPs with new training and/or capacity total) lative) members and new trainings building activity (initially 2.8, took place. then 2.9, then again 2.8) (290 male, 252 female)

(cumulat ive number)

2.9} Number of local governments (including administrative units) and Target exceeded as a result water utilities that use of continuous and computerized systems (LGUs consistent request by for finances, taxes, asset 0 0 0 19 36 78 2 NA NA NA 135 79 171% municipalities to receive management; e-government further support on ICT software and water utilities system and tools. for the web improvement and billing software) (initially 2.10)

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 95 Base- LOP LOP % Indicator Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Notes line Total Target Achieved

2.10} Number of ICT systems established and efficiently Target exceeded due to implemented in support of municipal requests for 16 NA NA NA NA NA 0 TBD 4 NA 4 3 133% improved financial additional PLGP support management and revenue with ICT tools. collection.

2.11} Number of Municipal Action Plans drafted with 0 NA NA NA NA NA 0 3 1 NA 4 4 100% USG assistance through QSIP methodology

Target exceeded due to 2.12}. Percentage of citizens significant improvements to (QSIP survey respondents) irrigation and drainage that felt that there is an 0 NA NA NA NA NA 0 0 42.90% NA 42.90% 30% 143% services in communities as improved quality of service a result of PLGP’s QSIP delivery in the municipality intervention and municipal service improvements.

3.1} Number of partner LGUs that have developed Target exceeded due to Strategic Action Plans to requests from the MoIE 0 0 0 3 0 0 0 8 2 NA 13 8 162% exercise effective oversight of and municipalities/WUs for jointly owned companies such plans. (reworded in 2013)

3.2} Number of utility/service Supervisory Council/ Administrative Council 579 members, utility/service Target exceeded as a result members, and LGUs staff (368 of request from the MoIE 0 38 80 133 30 191 45 0 62 NA 212 273% trained to improve their male, to train the WUs on capacity and awareness in 211 NRW. compliance with the EU female) standards (initially 3.3, reworded in 2013 and 2016)

3.3} Number of water Target exceeded as a result utilities developing and of PLGP contract implementing 5-year Business 0 0 4 2 0 3 2 4 3 NA 18 6 300% modification and request Plans based on the National from the ministry and Approved Model (initially 3.4) municipalities/WUs.

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 96 Base- LOP LOP % Indicator Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Notes line Total Target Achieved

3.4} Number of improved Water Utility Customer Service practices adopted by Target exceeded due to utilities (as specified in their TBD NA 2 2 2 0 5 2 3 NA 16 11 145% demand from 1) Public Relations/ municipalities/WUs. Communication Plans and 2) Customer Service Operations Plans (initially 3.5)

3.5} Number of model municipalities developing 0 0 0 0 1 3 2 NA NA NA 6 6 100% Water and Sewage Transitional Plans

Target not achieved because of the CVE Center request to change PLGP’s approach to focus only in 3.6} Number of LGUs 61 (not these 22 municipal receiving USG assistance on 0 NA NA NA NA NA 0 2 7 22 22 cumu- 36% hotspots and PLGP core preventing counter violent lative) municipalities. However, extremism (P/CVE) the PLGP-prepared CVE Guide has been disseminated to all 61 municipalities.

3.8} Number of people 540 Target exceeded as a result trained in preventing and of LGUs’ staff interest in countering violent extremism (290 0 NA NA NA NA NA NA 70 100 370 100 540% participating in PLGP’s (P/CVE)-related activities male, training and capacity tools and techniques 250 building activities. (reworded in 2019) female)

433 Target exceeded as a result 3.9} Number of youth trained of youth from LGUs highly in social or leadership skills (173 0 NA NA NA NA NA NA NA 155 278 180 241% interested in participating through USG assisted male, in PLGP’s training and programs 260 capacity building activities female)

3.10} Number of legal instruments drafted, Target exceeded as a result 0 NA NA NA NA NA NA NA 2 7 3 300% proposed, or adopted with 9 of ministries requests. USG assistance designed to PLGP produced more promote gender equality or

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 97 Base- LOP LOP % Indicator Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Notes line Total Target Achieved

non-discrimination against documents than originally women or girls at the planned. national or sub-national level

3.11} Number of persons trained with USG assistance to advance outcomes 509 Target exceeded as a result consistent with gender (103 of high demand for PLGP equality or female 0 NA NA NA NA NA NA NA 230 279 220 231% activities by the CVE male, empowerment through their 406 Center, municipalities, and roles in public or private female) youth groups. sector institutions or organizations

3.12} Number of training and capacity building activities conducted with USG Target exceeded as a result assistance that are designed of high demand for PLGP’s to promote the participation 0 NA NA NA NA NA NA NA 46 150 196 70 280% activities by the CVE of women or the integration Center, municipalities, and of gender perspectives in youth groups. security sector institutions or activities

4.1} Number of planners, mayors, NTPA and municipal staff, and local councilors in 672 the selected LGUs trained Target exceeded as a result (377 and/or coached regarding the 0 34 120 50 20 80 40 75 253 NA male, 440 152% of Y8 requests from implementation of the 295 municipalities. Territory Planning Law and female) related regulations (reworded in 2013)

4.2} Number of local governments drafting (for Target exceeded due to submission) local territorial the request of the MoUD plans, local detailed plans, and and municipalities to draft territory monitoring reports 0 0 9 4 2 0 5 9 4 NA 33 22 150% additional local territorial within the established development control guidelines and regulations of instruments (Local Detailed the Territory Planning Law Plans and FILDs). (reworded in 2013)

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 98 Base- LOP LOP % Indicator Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Notes line Total Target Achieved

4.3} Number of citizen/stakeholder participation and/or negotiation events organized by local governments held in partner 0 0 10 11 10 47 0 0 1 NA 79 78 101% LGUs to explain and solicit input into territory planning and land development instruments. (reworded in 2013 and 2019)

4.4} Number of local stakeholders participating in the preparation process of 1,050 Target exceeded as a result the local territory planning of high citizen interest in and land development (684 0 NA 120 330 30 550 0 0 20 NA 600 175% participating and instruments and of male, suggestions on local urban participatory/inclusive 366 development. planning manuals/ female) guidelines/benchmark reports (reworded in 2019)

4.5} Number of territory planning, and development tools prepared for MoUD 0 NA 1 1 2 5 2 1 2 NA 14 14 100% and NTPA in support of strengthening local planning capacities

4.6} Number of Economic Development Advisory Councils established with 0 NA NA NA NA NA 0 3 2 NA 5 5 100% USG assistance in partner municipalities

4.7} Number of businesses Target exceeded as a result trained on new property tax of EDACs being and other related issues on 0 NA NA NA NA NA 0 15 17 NA 32 8 400% established. Requests for local taxes/finances, benefiting training local businesses with USG assistance in were consistently high. partner municipalities

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 99 Base- LOP LOP % Indicator Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Notes line Total Target Achieved

4.8} Number of “Doing Target exceeded due to Business” guides developed additional requests 0 NA NA NA NA NA NA NA 5 2 7 3 233% and customized for partner received from partner municipalities municipalities.

The following indicators were dropped (either dropped and added new indicators and revised -renumbered and/or reworded) without reporting any data, so they are not included in the table: • 1.1} Number and percentage of proposals for competitive grants that are evaluated under the published criteria • 2.1} Number of local governments that institute open and participatory hearings/meetings on finances (budget, expenditures, tax rationalization, planned borrowing, and grant applications) • 2.3} Number of partner community staff that receives USG-assisted fiscal and management training • 2.4} Number of local governments that implement and use computerized systems for finances, taxes, inventory, and asset management • 2.8} Number of draft local government council decisions subject to final vote prepared with recorded public input • 2.9} Number of municipal council members trained on their roles and responsibilities • 2.10} Number of councils who publish their minutes and that demonstrate that they are using standard procedures (rules of order, legal and other specialist opinions, research, etc.) and within their established roles and responsibilities • 2.11} Percentage IPA proposals (from partner communities) funded (Note: Partner communities will be competing in a larger EU universe, tracked only for analysis purposes) • 3.2} Number of inter-government utility Supervisory Boards that implement regular evaluation procedures to measure performance of the utilities they oversee • 3.2} Number of LGUs signing a service delivery agreement with the water utility that serves in their respective area. • 3.4} Number of utility staff trained on (1) improved utility management practices and (2) EU environmental compliance • 3.5} Number of public services that achieve at least 80% cost recovery from fees and charges • 3.6} Number of utilities adopting EU compliant policies and procedures issuing a compliance analysis • 3.7} Number of public services/utilities adopting Quality Service Improvement Plans (QSIPs) • 3.7} Number of citizen participation events organized in LGUs on P/CVE issues • 3.8} Increased customer satisfaction with related municipal services (measured by QSIP citizen focus groups) • 3.9} Percentage of attendees (local governments, community leaders, and youth) at PLGP P/CVE activities (forums, events, P/CVE training, etc.) that felt that they have an increased awareness on Violent Extremism (VE) issues

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 100 • 4.4} Number of businesses and local stakeholders participating in the drafting and approval process of municipal urban regulatory plans • 4.8} Number of small and medium enterprises (SMEs) facilitated to absorb AIDA funding schemes with USG assistance in partner municipalities

PLANNING AND LOCAL GOVERNANCE PROJECT IN ALBANIA: COMPLETION REPORT (2012–2020) 101