ISSUE No. 17, Monthly E-briefing - April 2008

A Joint Effort of the Donor Technical Secretariat and the Department of Strategy and Donor Coordination

www.keshilliministrave.al www.aidharmonisation.org.al

Photo: Kick-off ceremony of the Joint Border Crossing Point Muriqan/Sokobine - Prime Minister , the Prime Minister of Montenegro, Milo Djukanovic, the Head of the EC Delega- tion to , Ambassador Helmuth Lohan, laying the symbolic bricks (Photo: Delegation of European Commission) .

Joint Border Crossing Point between In this issue • Joint Border Crossing Point Albania and Montenegro between Albania and Montenegro • Government and Donor response to Gërdec tragedy The European Commission Maurer; as well as the Ministers of Interior, • International Consortium finances 1.1 million Euros for Finance, Foreign Affairs, European Plenary Meeting in construction of the Joint Border Integration from both countries. The • Policy Forums in Burrel and construction of the Joint Border Crossing Crossing Point between Albania Elbasan Point Muriqan/Sokobine, the first one and Montenegro • Procurement goes online in in the Western Balkans, will facilitate Albania On 21 April 2008, the ‘kick-off’ ceremony co-operation between both countries, • TACTA Project kick-off was held in the presence of Prime will help to smooth the problems arising • New programme in support Minister Sali Berisha, the Prime Minister from their proximity, will contribute to of Albanian youth of Montenegro, Milo Djukanovic, the the social and economic development in • Albania becomes part of Head of the EC Delegation to Albania, the border area and will help to safeguard MATRA Programme Ambassador Helmuth Lohan, and the environment, to prevent and fight • EBRD Donor Report 2008: the Head of the EC Delegation to against organized crime, ensuring efficient Real people & real change Montenegro, Ambassador Leopold and secure borders and promoting local • 2008 DAC Survey on Monitoring the Paris Declaration



Government Joint Border Crossing Point between and Donors Albania and Montenegro response to Gërdec tragedy

On 11 April 2008, upon the request of the Minister of the Interior, Bujar Nishani, the Donor Technical Secretariat (DTS) held a donor co-ordination meeting that discussed the aid requirements with regard to the Gërdec incident. The meeting was addressed by the Emergency Co-ordinator in the Ministry of Interior, Alfred Olli, who outlined the events surrounding the incident, the short term responses and the Government’s medium and long term plans. The meeting was chaired by the European Commission Delegation, in their capacity as DTS Chair. On 21 April 2008, in response to this meeting, the Prime Minister, Sali Berisha, issued an order that established the Inter-institutional Working Photo: Kick-off ceremony of the Joint Border Crossing Point Muriqan/Sokobine - Prime Minister Sali Berisha, the Prime Minis- group for Donor Co-ordination ter of Montenegro, Milo Djukanovic, the Head of the EC Delegation to Montenegro, Ambassador Leopold Maurer and EC Task in the Civil Emergency Cases. The Manager architect Giulia Agrosí laying the symbolic bricks (Photo: Delegation of European Commission). IWG is chaired by the Director of the Department of Strategy “people-to-people” type actions. This and Donor Co-ordination and is project is part of a major project financed composed of General Secretaries by the EC to assist in establishing an from all Line Ministries, the efficient and strengthened integrated General Director of Civil border management system. This includes Emergencies in the Ministry of some 12 Border Crossing Points with a Interior, the General Director total amount of 5.4 million Euros. The EC of KESH, the General Director has contracted 1.1 million Euros under of Water and Sanitation, the the CARDS programme to build the JBCP Director of ALUIZNI, the Muriqan/Sukobin. The EC Task Manager, Director of the Immovable architect Giulia Agrosì in charge of Property Registration Office, the integrated border management, prepared Public Internal Financial Control the event by designing symbolic items for and the Director of the Housing the ceremony. Enterprise. Government/Donor meetings are planned for May to discuss the priorities from line Co-Chairs to United UN Ambassadors from Ireland and ministries in order to receive Tanzania, currently serving as Co- financial commitments from Nations General Assembly consultations on System-wide Chairs to United Nations General donors. Assembly consultations on System- coherence visit Albania to wide coherence, visited Albania from review Delivering as One UN 30 April to 1 May 2008 to assess the work on UN reform and Delivering  as One UN. They met with Prime with the impacts of the Stabilization and Minister, Sali Berisha, Ministers, Association Agreement. Participants Gërdec Tragedy: international partners, civil society included the Head of the EC Delegation, representatives and the in-country UN Ambassador Helmuth Lohan, the Support from donor team to get their views on Delivering Head of Presence, Ambassador Robert as One UN. Prior to visiting Albania, Bosch, the Chair and Deputy Chair of community the Ambassadors visited Vietnam, the Assembly Committee for European Tanzania, Mozambique and Cape Integration, and Genc Juka Italy contributed to Gerdec Verde, who are also piloting UN respectively, the Chair of the Socialist emergency by providing transport, reform. The Co-chairs will report to Party Parliamentary Group, Valentina medical evacuation and treatment the UN General Assembly in June Leskaj, other members of the Assembly for 17 injured people. Italy has also on whether Delivering as One UN is Committee, provided two Explosive Ordnance providing greater effectiveness of UN local MPs as well as local government, Disposal (EOD) personnel to assess development assistance in line with business, civil society representatives. the situation with protection and the national priorities. detection equipment, and other relevant materials. The EOD experts also contributed to the surface Photo: Head of EC Delegation Ambassador Helmuth Lohan Parliamentarians and Elbasan and chair Socialist Movement for Integration Ilir Meta at clearing in Zones Two and Three of policy forum in Burrel on 15 April 2008. the affected areas. On March 19 2008, and Burrel communities (Photo: OSCE/Miranda Veliaj) following a Government request, the discuss challenges of European Italian Development Cooperation integration in an OSCE Office in Tirana confirmed that a Presence-organized forum group of Italian NGOs were available to offer accommodation as well as On 15 and 23 April 2008 respectively, the open space for tents, for about 40 OSCE Presence in Albania, within the persons affected by the incident. framework of its Parliamentary Support Italian NGOs also collected and Project, Phase II, in co-operation with the supplied food, clothes and other Albanian Assembly and the European equipment in the affected area. An Movement Albania, held in Burrel and Italian Cooperation expert was part Elbasan policy forums that aimed at of the UNDAC advisory team in getting the community more acquainted charge of assisting the Government in co-ordinating and supporting the assessment of short and medium term Photo: Chair of parliamentary group of Socialist Party Valentina Leskaj, Head of OSCE Presence Ambassador Robert Bosch, chair Socialist Movement for Integration Ilir Meta at policy forum in Elbasan on 23 April 2008 discussing on social needs. and economic developments that are expected to affect the region in the process of European integration. (Photo: OSCE) 

Photo: International Consortium Plenary Meeting at Sheraton Hotel, 3 April 2008 (Photo: U.S Embassy) Public Procurement goes online in Albania Sector Related Activities On 17 April 2008, Albania carried out its second fully electronic procurement JUSTICE and HOME AFFAIRS law, the implementation of the new ASP through the new e-procurement system organizational structure, the current (EPS) developed under the Millenium obstacles facing the ASP, an update on Challenge Corporation (MCC) The International Consortium Steering Committee holds human resource management as well as Threshold Programme, administered the status of projects aimed at improving Annual Plenary by USAID, to improve transparency, efficiency. ICITAP Programme Manager, efficiency and accountability in On 3 April 2008, the International Darrel Hart, chaired the session that public procurement, while combating focused on brief reviews of the activities of corruption and promoting fair Consortium (IC) held its annual meeting in Tirana. The U.S Ambassador, John L. the working groups and outlining critical competition among businesses. The issues related to assistance and reform web-based system was built based Withers II, the Head of the EC Delegation, Ambassador Helmuth Lohan, the Head efforts. Presentations were followed on EU requirements and meets the by open discussions on how to address highest international standards in of the OSCE Presence, Ambassador Robert Bosch, the Minister of Interior, more efficiently rule of law challenges ease of use and security. The EPS now while strengthening capacities of the law includes all public tender notices in Bujar Nishani, the Deputy Chair of High Council of Justice, Kreshnik Spahiu, enforcement agencies. All Consortiums’ Albania. By eliminating paper files and activities are coordinated by ICITAP. The simplifying procedures, e-procurement the General Prosecutor, Ina Rama and Minister of Justice Enkelejd Alibeaj and 2008 annual meeting was sponsored by saves Government contract authorities the EC Delegation. up to 50-80% of the cost of the average the Deputy Minister of Integration, Albert paper procurement. Gajo all welcomed the IC’s contribution to the advancement of the rule of law Photo: Prime Minister Sali Berisha and pledged continued support. The REGIONAL DEVELOPMENT event reviewed working groups activities and outlined critical issues related to Donor Meeting on assistance and reform efforts. The General Regional Development Director of the Albanian State Police (ASP), Ahmet Prenci, gave an overview On 30 April 2008, the Ministry of of the implementation of the new ASP Economy, Trade and Energy in cooperation  with the Department for Strategy and remedial actions. Both projects are funded Donor Coordination held a donor round by the Government of the Netherlands. USAID to table to discuss regional development issues. The meeting was chaired by the extend Deputy Minister, Enno Bozdo, who gave YOUTH successful details about the pilot project to be funded by the EU and implemented by UNDP in financial New programme in Kukes, Shkoder and Lezhe. The aim of the sector development event was to get the donors contribution support of Albanian youth and support in implementation of the On 16 April 2008, a 2 million Euros programme Cross-cutting Strategy of Regional programme supporting the promotion in Albania Development. The event was financially of policies in favour of children and supported by MADA. youth was presented in Tirana. The opening ceremony was introduced In April, USAID awarded the by the Minister of Labour, Social Financial Services Volunteer ENVIRONMENT Affairs and Equal Opportunities, Corps (FSVC) an additional Koço Barka, and by the Ambassador 1.2 million USD to extend its Government and UNDP to tackle of Italy in Albania, Saba D’Elia. The work to strengthen Albania’s environmental hotspots in Albania initiative is funded by the Italian financial sector institutions Ministry of Foreign Affairs and co- and promote economic On 28 April 2008, officials from the funded by the Italian Regions Emilia growth for an additional Ministry of Environment, Forestry and Romagna, Marche and Puglia. The three years. Through some Water Administration, local government Municipality of Forlì is responsible for 25 individual projects, and UNDP launched two projects to the implementation of the project in FSVC expert volunteers tackle environmental hotspots. The first is co-operation with the MoLSAEO and from leading international a regional project that covers nine hotspots local government in Elbasan, Shkoder financial institutions will in the Western Balkans region. The area and Vlora. The aim of this programme conduct seminars, provide to be rehabilitated in Albania is the Bajza is fostering national institutions on-site consultations and railway station (near Shkodra Lake) where capacities in the implementation of legal commentaries, and expired pesticides and industrial chemicals policies aimed at assisting children and organize training programmes have been stored. The second project youth at risk of marginalization and/or to strengthen the Banking will: identify and assess environmental facing difficult living conditions. At Supervision Department of the hotspots in Albania, create a database, and central level, an Inter-ministerial Bank of Albania, the Financial build capacity within the environmental Forum for Children will be created Supervisory Authority, and administration to further identify and as well as the enhancement of the the Albanian Actuarial monitor hotspots and plan further National Committee for Adoption. Association.

Photo: Expired pesticides and chemicals at Bajza Railway Station in Shkodra will be removed for safe disposal and the site cleaned up (Photo: UNDP Albania) 

Photo: Inauguration ceremony of the programme supporting policies in favour of youth and children (Photo: Italian Development Cooperation).

The TACTA Project officially launched

On 4 April 2008, the EU Project Technical Assistance to Customs and Tax Administrations, TACTA, was officially introduced. The Project is led by the Italian Customs Agency and is targeted at the five countries of the Western Balkan Area - Albania, Bosnia-Herzegovina, , Montenegro and Serbia. The Project will help achieve a step-by-step modernisation of organisational structures and operational procedures in line with EU standards as well as develop new Pilot initiatives will be undertaken in children and youth, thus providing strategies against fraud and illegal Elbasan, Shkoder and Vlora to foster an effective model to be replicated in trafficking. The Project started with local social services dedicated to other districts. a preliminary stage on 1 February 2008 and will follow in the footsteps of the previous Customs and Fiscal Assistance Office Programme (CAFAO) launched in 1996. Strengthening Civil Society

Albania part of Governance: Matra Projects Programme MATRA Programme (MPP); Matra Political Parties Programme USAID Conference (MPPP); Matra Small Local Initiatives highlights municipal As of 2008, Albania is part of the MATRA (KPA); Matra Small Embassy Projects country list. The MATRA Programme (KAP/KNIP). Matra for European Co- borrowing for cities is a programme of the Ministry of operation: Matra Training for European Foreign Affairs of the Government of the Cooperation (MTEC); Matra flex. On 8 April 2008, mayors and Netherlands that aims at strengthening officials from nearly all of civil society in Central and Eastern Themes:legislation/law-making; human Albania’s 65 municipalities and Europe. The name of MATRA derives rights and minorities; public order/good representatives of the business from the Dutch for social transition governance; strengthening civil society, community attended a conference maatschappelijke transitie. Projects under especially voluntary participation; the on municipal borrowing sponsored MATRA are designed to help strengthen environment; public health and health by USAID. Prompted by the institutions and build capacities of central care; labour relations; public information recent enactment of a municipal and local government, and above all, strategies; education: management borrowing law (that enables local civil society organisations. They seek to and curriculum development; culture: government to borrow money improve interaction between national management and variety; public housing from commercial lenders to and local government and civil society finance infrastructure and other and to encourage consensus on measures General information on MATRA: development projects in their to strengthen democracy and rule of law. http://www.mfa.nl/tir jurisdictions) the conference MATRA is based on twining networks and http://www.minbuza.nl/en/ provided a forum for city officials between the Netherlands and the europeancooperation/subsidies,The- to discuss opportunities created MATRA target countries and encourages Matra-Programme.html by this law. Presentations by “matchmaking” between Dutch Flex: http://www.evd.nl/cooperation/ local and international experts organisations and like-minded” agents of Programmes/ProgrammaInt_pre. focused on the detail of the law and transformation”. asp?land=pre secondary legislation, as well as MTEC: http://www.cross-agency. credit worthiness and methods for Programmes: Matra for Good nl/index.php?la=en&page=3 developing creditworthy projects. 

AGRICULTURE

USAID Support for herb and spice producers and exporters

With the harvesting season fast- approaching, members of Albania’s Essence Producers and Cultivators Association (EPCA) attended the 5th National Conference on Herbs and Spices on 29 April 2008 in Tirana, sponsored by USAID. Conference presentations highlighted the importance of quality during harvesting, processing, and exporting periods as the key element to Albania’s increased competitiveness internationally. Presentations also included recent developments in international rules and regulations that affect the industry.

USAID Workshop discusses ways to get more credit to farmers Finance, Agriculture, Food and Consumer EBRD President, Jean Lemierre, notes that Protection, various financial institutions “Inadequate infrastructure, slow business On 23 April 2008, USAID organised in and other international donors discussed and employment growth and, in many Durres a one-day Agriculture and Rural the current situation and identified the communities, extreme poverty are among Finance workshop to assess the current best way to make credit more available the acute challenges facing countries eligible availability of credit to agriculture and and accessible to the agriculture sector. for Official Development Assistance, such to explore ways to increase the credit as Belarus, Moldova and Ukraine, as well as flow to the sector. The flow of credits others in the Caucasus, Central Asia and the to the agriculture sector is currently Publications Western Balkans. The EBRD and its donors very low – less than 5 percent of the can do much to improve people’s lives in total loan portfolio in Albania. Past EBRD Donor Report 2008: these countries.” Donors and public sector and current USAID programmes with Real people & real change institutions play a critical role in advancing Opportunity Albania (formerly known transition in the EBRD region. Since as PSHM), the National Commercial The European Bank for Reconstruction 1991, the year the EBRD was established, Bank (BKT), and Raiffeisen Bank, have and Development (EBRD) has published donor funding for the EBRD’s technical shown that market-based credit activities its 2008 Donor Report: Real people & cooperation grants programme has grown can succeed both in the agriculture and real change. Over the past year, the EBRD steadily, reaching a cumulative total of 1.27 non-agriculture sectors. Representatives and donors have shifted attention to the billion Euros by the end of 2007. The largest of farmer and agribusiness associations, needs of the poorer countries in the EBRD contributor was the EU, working through representatives from the Ministries of region. In a foreword for the Report, the the EC and the European Agency for 

Photo: Cover of the EBRD Donor Report 2008: Real people & real change

the Paris Declaration for Albania. The chapter provides an analysis of the state of aid effectiveness in 2007, drawing out analysis of progress and challenges made since 2005. It was drafted by the Overseas Development Institute (a UK based organisation) and its partner organisations in France and Spain in co-operation with the OECD Secretariat. The chapter draws on information provided in the assessments made by donors in country and on other sources, including the Annual DAC Questionnaire on untying, and the self-assessment methodology for procurement. The draft was shared with the donor community to receive their comments. To see the draft country chapter, please click here.

In-Country Missions

International Monetary Fund

From 30 April to 13 May 2008, an IMF Review mission visited Tirana to conduct the fifth review mission under the Poverty Reduction and Growth Facility/ Extended Fund Facility (PRGF/EFF) programme. The mission, headed by Gerwin Bell, met with the Prime Minister, Sali Berisha, the Minister of Finance, Ridvan Bode, the Governor of the Bank of Albania, Ardian Fullani, MPs and other public officials to Reconstruction. Other major contributors 2008 DAC Survey on Monitoring negotiate the Memorandum on Economic are Italy, Japan and the US. In 2007, EU the Paris Declaration and Financial Policies (MEFP) for the next entrants, Czech Republic, Hungary, Poland, 6 months. the Slovak Republic and Slovenia became The OECD DAC shared the draft donors by contributing to the EBRD’s country chapter analyzing the results From 5 until 23 May 2008, Michael multi-donor Fund for the Western Balkans. of the 2008 Survey on Monitoring Andrews, is visiting Tirana to conduct a Sustainable development will be a priority area for the EBRD and its donors. Find out more about the EBRD and donors in the 2008 Donor Report. It provides information on how donors support the development of the private sector, the provision of basic infrastructure services, transfer of skills and strengthening of regulatory, financial and other institutions. To order a copy please contact the EBRD’s Publication Desk at: [email protected]  mission on national accounts. The aim is programmes in the energy sector. They In April, a mission started to provide to improve the accuracy and reliability amount to some 94 million Euros and technical assistance to the Project of the annual national accounts and are aimed to rehabilitate and enhance Implementation Unit of the Ministry beginning the quarterly national accounts. the electric system in order to facilitate of Public Works, Transport and integration in the Balkans system as well Telecommunications in order to facilitate From 6 to 10 May 2008, the regional IMF as to contribute to KESH technical and the implementation of Italy-funded advisor, Eivind Tandberg, visited Tirana managerial rehabilitation. The mission’s programmes in the Transport sector. to discuss with the national authorities assistance covers the revision of the recent developments in public financial tender documents concerning Sauk and management (PFM). This will provide Tirana-Centre sub-stations, the launch Switzerland inputs to a regional study of PFM reforms of the tender for Pogradec substation and in South-Eastern Europe, which aims to the assessment of technical aspects in the Assistant Director-General of identify common challenges and good contracts defining the construction of the Swiss Agency for Development and practices in the different countries, and Line Elbasan-Tirana, Tirana 2 substation Cooperation and Head of Department develop common approaches to strengthen and the National Dispatching Centre. Co-operation with Eastern Europe and these reforms in the region. the Commonwealth of Independent A mission aimed to provide assistance States ,to visit Albania. On 14 May 2008, the IMF held a conference to the Ministry of Economy, Trade in Tirana on Albania - Opportunities and and Energy began in April, to facilitate From 27-30 May 2008, on the occasion Challenges in the Move Towards Emerging the implementation of an Italy-funded of 11th anniversary of the opening of Market Status. Aimed at policy makers, programme (some 30 million Euros), SCO-Tirana, Assistant Director-General academics, donors, business community supporting the creation of a credit line in of SDC and Head of Department and NGOs, this event provides the chance favour of Small and Medium Enterprises. Cooperation with Eastern Europe to look at the challenges for fiscal and monetary policies as Albania moves on toward an emerging market status, with a lighter attachment to the Fund. It provides Billboard: Tales from Globalizing World a coherent framework and opportunity to bring together various counterparts to discuss the challenges for economic policymaking.

Italy

In April, an expert from the General Directorate for Development Cooperation of the Italian Ministry of Foreign Affairs (MAE/DGCS) visited Albania to provide technical assistance in implementing a programme aimed to rehabilitate five Polyclinics - two located in Tirana, the remaining in Gjirocastra, Korca and Peshkopia. The initiative is supported with a 5 Million Euros loan and a 110,000 Euros grant for the technical assistance component. In the framework of this programme, work to rehabilitate the Polyclinics of Tirana 2 and Tirana 3 were inaugurated on 13 March 2008. A new mission is envisaged to begin in May.

An expert from the MAE/DGCS is visiting to assist the Telecontrol of Electric System - Project Implementation Unit and the Project Management Unit of the Ministry of Economy, Trade and Energy, responsible for implementing Italy-funded 10 and the CIS, Therese Adam will visit technology infrastructure, to identify Albania. This mission contemplates From 2 to 24 April 2008, a WB Mission sustainability risks, and to recommend project field visits and Mrs Adam will from the Oil, Gas and Mining Sector solutions for improving daily operations; meet the Government officials as well as Policy Division visited Albania. The to assess the effectiveness of treasury development agencies. An international aim was to assess the current mining system functional modules; to discuss travelling photo exhibition entitled Tales operations and to estimate the potential the use of treasury system in planning from a Globalizing World, which aims for growth. In finalising the Phase I and execution of public investment to create a better understanding of and Scoping Report for the Albanian mining projects; and to assess the integration of greater solidarity with the people of the sector, it was noted that an update on the the Treasury systems with the HRMIS. South and the East, will accompany the status of existing mining operations was visit. These efforts are meant to increase beneficial. The Report is now finalised From 27 April to 2 May 2008, a WB public awareness to other cultures, to and a follow-up visit on this work was Supervision Mission for the Integrated promote development cooperation. conducted between 21 and 24 April Coastal Zone Management and Clean- More information can be found at www. 2008, focusing on the detailed analysis up Project (APL-1) took place. The globalizingworld.net of the overarching policy, fiscal and mission focused on: the assessment of regulatory framework. the legal framework for land registration, legalization and property restitution World Bank From 7 to 11 April 2008, a WB and compensation, urban planning From 7 to 19 April 2008, a World Supervision Mission for Treasury System enforcement with special focused on Bank (WB) Skills and Labour Markets Review took place. The focus was to illegal building and resettlement laws, Mission for the Albania Country complete a preliminary review of the policies and procedures; recommendations Economic Memorandum (CEM) visited new Treasury System. The aims were: to for strengthening transparency and Albania. The main aim was to explore discuss the current status of Treasury due process, as well as the provision of skill formation and labour market issues System operations and information international best practices. in the context of the proposed CEM. CEM is a report planned to look at growth priorities in the context of future EU accession. Key government officials and representatives from private sector, civil society organizations and donor community were met.

From 14 to 17 April 2008, a WB As of 1 April 2008, the European Commission is the current Chair of the DTS Secretariat. Identification Mission for the Governance and Accountability Any comments regarding Donor Dialogue Analytical Advisory Activities took (both positive and negative) are strongly encouraged – and we promise to print all place. The aim was to identify line such comments received! ministries concerns to be reflected by the Governance & Accountability Want to contribute? If you would like to contribute, send your text to the Donor Technical Secretariat (DTS) Office AAA, to come to a preliminary ([email protected] ) by the 1st of every month. An ideal word count for decision on the analytical approach of submissions is around 100 words. the proposed AAA, and to continue dialogue on inclusion of new governance Frequency and accountability questions in the Each edition will be sent to you on the 15th of every month. questionnaire of the 2008 LSMS. Who are the donors in Albania? There are over 40 donors operating in Albania. From 14 to 25 April 2008, a WB To find out who they are please click here. Supervision Mission for the Second Community Works Project took place To unsubscribe: The aims were: to assess the extent to Please send an e-mail to Nevila Çomo which the project continues to meet ([email protected] ) development objectives; and the degree to which the project can be completed by the closing date. The mission appraised Albania Development Fund (ADF) efforts to prepare the necessary documentation of the Implementation Completion Report. The design of Donor Dialogue Newsletter is financially supported by the OSCE Presence in Albania

[email protected]