The World Bank Financing to Albania 2010
This brochure is a tool to inform the public and our partners about the World Bank activity in Albania, and to encourage broader participation in the financed projects. It includes basic data on the World Bank activity in Albania, including lending, grants and analytical and advisory activities. Project briefs contain information on project components and recent achievements. The data on disbursements are regularly updated. The Borrower is responsible for all procurement steps, including advertising, pre-qualification evaluation, preparation of bidding documents, evaluation of bids and contract awards. The Borrower, rather than the World Bank, contracts directly with companies and consultants. Therefore, consultants, contractors, manufacturers and suppliers of goods and services should contact the implementing agencies in Albania if they are interested in participating in World Bank-funded projects.
CONTENTS 1. I D A, I B R D A c t i v i t I E S ALBANIA AND THE WORLD BANK WORLD BANK PORTFOLIO IN ALBANIA TABLE OF ACTIVE PROJECTS TABLE OF CLOSED PROJECTS 5 7 7 8 9 ON-GOING PROJECTS SOCIAL SERVICES DELIVERY PROJECT POWER SECTOR GENERATION AND RESTRUCTURING PROJECT NATURAL RESOURCES DEVELOPMENT PROJECT INTEGRATED COASTAL ZONE MANAGEMENT AND CLEAN UP PROGRAM ENERGY COMMUNITY OF SOUTH EAST EUROPE APL2- ALBANIA - TRANSMISSION HEALTH SECTOR MODERNIZATION PROJECT EDUCATION EXCELLENCE AND EQUITY PROGRAM AVIAN INFLUENZA CONTROL AND HUMAN PANDEMIC PREPAREDNESS AND RESPONSE PROJECT BUSINESS ENVIRONMENT REFORM AND INSTITUTIONAL STRENGTHENING PROJECT (BERIS) LAND ADMINISTRATION AND MANAGEMENT PROJECT TRANSPORT PROJECT SECONDARY AND LOCAL ROADS PROJECT DISASTER RISK MITIGATION AND ADAPTATION PROJECT ENERGY COMMUNITY OF SOUTH EAST EUROPE APL5 - ALBANIA - DAM SAFETY PARTIAL RISK GUARANTEE (PRG) FOR THE PRIVATIZATION OF THE POWER DISTRIBUTION SYSTEM OPERATOR (OSSH) IN ALBANIA 11 11 14 16 19 22 24 26 29 31 33 35 37 39 40 TRUST FUNDS ADMINISTERED BY THE BANK GEF - SHKODRA LAKE INTEGRATED ECOSYSTEM MANAGEMENT CAPACITY BUILDING SUPPORT TO IMPLEMENT THE INTEGRATED PLANNING SYSTEM (MULTIDONOR TRUST FUND) YOUTH EMPOWERMENT THROOUGH COMMUNITY DEVELOPMENT IN ALBANIA (JSDF grant) EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (eiti) STRENGTHENING AARHUS CONVENTION IMPLEMENTATION IN ALBANIA (IDF grant) 42 42 44 47 49 51 STUDIES (NON-LENDING SERVICES) 53 CIVIL SOCIETY FUND 57 PROCUREMENT INFORMATION 62 2. 63 65 67 67 69 69 71 73 I F C A c t i v i t I E S TABLE OF INVESTMENT PROJECTS IFC ADVISORY SERVICES PUBLIC PRIVATE PARTNERSHIP IN INFRASTRUCTURE IFC ADVISORY TO PRIVATE SECTOR CORPORATE ADVICE INVESTMENT CLIMATE ADVISORY SERVICES ACCESS TO FINANCE 41 3 THE WORLD BANK FINANCING TO ALBANIA May 2010 TIRANA 1 Prepared by Ana Gjokutaj, Communications Officer World Bank Tirana Office Design & Layout: Grafika Elzana 2 CONTENTS 1. I D A, I B R D A c t i v i t I E S ALBANIA AND THE WORLD BANK WORLD BANK PORTFOLIO IN ALBANIA TABLE OF ACTIVE PROJECTS TABLE OF CLOSED PROJECTS 5 7 7 8 9 ON-GOING PROJECTS SOCIAL SERVICES DELIVERY PROJECT POWER SECTOR GENERATION AND RESTRUCTURING PROJECT NATURAL RESOURCES DEVELOPMENT PROJECT INTEGRATED COASTAL ZONE MANAGEMENT AND CLEAN UP PROGRAM ENERGY COMMUNITY OF SOUTH EAST EUROPE APL2- ALBANIA - TRANSMISSION HEALTH SECTOR MODERNIZATION PROJECT EDUCATION EXCELLENCE AND EQUITY PROGRAM AVIAN INFLUENZA CONTROL AND HUMAN PANDEMIC PREPAREDNESS AND RESPONSE PROJECT BUSINESS ENVIRONMENT REFORM AND INSTITUTIONAL STRENGTHENING PROJECT (BERIS) LAND ADMINISTRATION AND MANAGEMENT PROJECT TRANSPORT PROJECT SECONDARY AND LOCAL ROADS PROJECT DISASTER RISK MITIGATION AND ADAPTATION PROJECT ENERGY COMMUNITY OF SOUTH EAST EUROPE APL5 - ALBANIA - DAM SAFETY PARTIAL RISK GUARANTEE (PRG) FOR THE PRIVATIZATION OF THE POWER DISTRIBUTION SYSTEM OPERATOR (OSSH) IN ALBANIA 11 11 14 16 19 22 24 26 29 31 33 35 37 39 40 TRUST FUNDS ADMINISTERED BY THE BANK GEF - SHKODRA LAKE INTEGRATED ECOSYSTEM MANAGEMENT CAPACITY BUILDING SUPPORT TO IMPLEMENT THE INTEGRATED PLANNING SYSTEM (MULTIDONOR TRUST FUND) YOUTH EMPOWERMENT THROOUGH COMMUNITY DEVELOPMENT IN ALBANIA (JSDF grant) EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (eiti) STRENGTHENING AARHUS CONVENTION IMPLEMENTATION IN ALBANIA (IDF grant) 42 42 44 47 49 51 STUDIES (NON-LENDING SERVICES) 53 CIVIL SOCIETY FUND 57 PROCUREMENT INFORMATION 62 2. 63 65 67 67 69 69 71 73 I F C A c t i v i t I E S TABLE OF INVESTMENT PROJECTS IFC ADVISORY SERVICES PUBLIC PRIVATE PARTNERSHIP IN INFRASTRUCTURE IFC ADVISORY TO PRIVATE SECTOR CORPORATE ADVICE INVESTMENT CLIMATE ADVISORY SERVICES ACCESS TO FINANCE 41 3 4 I D A, I B R D A c t i v i t I E S 5 This brochure is a tool to inform the public and our partners about the World Bank activity in Albania, and to encourage broader participation in the financed projects. It includes basic data on the World Bank activity in Albania, including lending, grants and analytical and advisory activities. Project briefs contain information on project components and recent achievements. The data on disbursements are regularly updated. The Borrower is responsible for all procurement steps, including advertising, pre-qualification evaluation, preparation of bidding documents, evaluation of bids and contract awards. The Borrower, rather than the World Bank, contracts directly with companies and consultants. Therefore, consultants, contractors, manufacturers and suppliers of goods and services should contact the implementing agencies in Albania if they are interested in participating in World Bank-funded projects. 6 Albania and The World Bank ALBANIA AND THE WORLD BANK After Albania joined the World Bank in 1991, the Bank became one of the country’s main sources of development assistance. Albania is a member of the International Development Association (IDA), International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). In 2008, on account of its strong achievements in economic growth, Albania has achieved middle income status and graduated from IDA concessional flows to IBRD lending, sending a positive signal to investors and the financial markets about the economic prospects of the country. The country is now creditworthy for IBRD. The World Bank’s mission in Albania is to help the country achieve economic and social development as it moves closer to Europe. The basis for the World Bank’s activities in Albania is the Country Partnership Strategy (CPS). A new Country Partnership Strategy is under preparation for the next four years (2011-2014). This document will guide the World Bank’s program of policy and investment lending and analytical and advisory services for the country and will be agreed in consultation with the Government and other stakeholders, including the civil society. The new Strategy will support the Government’s development strategy as articulated in the National Strategy for Development and Integration (NDSI) by focusing on three strategic objectives: (i) Accelerating Albania’s recovery toward high growth in a post-crisis Europe by strengthening macroeconomic and public expenditure management, improving the regulatory framework for private investment, and closing the infrastructure gap in a fiscally sustainable manner (ii) Broadening and sustaining Albania’s social gains by improving access to better quality education and health services, and increasing the effectiveness of its social protection systems; and (iii) Reducing Albania’s vulnerability to climate change, by improving the conservation, management and efficient use of its water resources, and strengthening disaster preparedness. The CPS program will also continue to support governance improvements in Albania. The World Bank has supported Albania’s development across a broad range of sectors through IDA, and IBRD lending. As part of its recent and ongoing assistance to improve the country’s institutions and governance, the World Bank has helped to modernize Albania’s public administration and improve its public expenditure management practices. Local infrastructure has also been upgraded, and financing of national and rural roads has improved communications within the country, facilitating people’s access to economic and social centers and services. The World Bank has helped Albania to take important steps to upgrade the regulatory framework for businesses and to remove harmful administrative barriers. Albania was one of the top ten reformers worldwide in 2009. World Bank projects have also focused on health care, education, and improving social protection and social service delivery systems. WORLD BANK PORTFOLIO IN ALBANIA The World Bank lending in Albania totals US$1.4 billion comprising 68 projects. Out of this, US$ 791 million have been disbursed. The World Bank also provides technical assistance, analytical and policy advice. Commitments under the current portfolio consists of 14 operations totaling US$263 million in IBRD/IDA loans and credits, US$180 million in co-financing loans and credits, and US$35 million of recipient-executed Trust Funds, amounting to a consolidated portfolio (under Bank supervision) of around US$480 million of investments under implementation. The bank is investing in social sectors, in energy, transport, and water, business environment reform including property registration, and agriculture, environment and community development. Albania benefits from 3 large free-standing trust funds: a multi-donor, trust fund for the Integrated Planning System, financed by seven bilateral donors and the EU; a trust fund on the Governance Partnership Facility; and a fee-based-service from UNDP on public utility governance in water and electricity, as well as few smaller special vehicle trust funds such as EITI, FIRST in the financial sector, IDF for Aarhus Convention Implementation, and a JSDF for youth empowerment. Ongoing analytical work focuses heavily on strengthening future sources of growth and competitiveness, improving the efficiency and effectiveness of public spending, and improving governance in the social services and the utility sectors. 7 TABLE OF ACTIVE PROJECTS PROJECTS 1. Social Service Delivery Project APPROVAL FISCAL YEAR IDA CREDIT AMOUNT (million US$) IBRD LOAN AMOUNT (million US$) 01, 09 10.0 5 2. Power Sec. Generation & Restructuring Pr. 04 25.0 3. Natural Resource Development Project 05 7.0 4. Integrated Coastal Zone Management (APL#1) 05 17.5 5. ECSEE APL# 2 (ALBANIA) 05 27.0 6. Health System Modernization Project 06 15.4 7. Education Excellence and Equity Program 06 15.0 8. Avian Influenza Control Project 06 5.0 9. BERIS 07 3.7 5.6 10. Land Administration and Management Project 07 15 20.0 11. Transport Project 07 5.0 21.64 12. Secondary and Local Roads 08 20.0 0.9 13. Disaster Risk Management 08 6.16 3.0 14. Energy Community of SEE APLProgram-APL5 for Albania Damn Safety 08 35.3 207.06 TOTAL 56.14 263.2 NOTE: Since grants like Multi-donor Trust Fund on Integrated Planning System, or Shkodra Lake Integrated Ecosystem Management, and other trust funds are not IDA/IBRD financed operations, they are not included in this table. 8 TABLE OF CLOSED PROJECTS PROJECT NAME 1. Critical Imports CREDIT AMMOUNT (million US US$ ) CLOSING DATE 41.1 30 June 1996 2. Rural Poverty Alleviation 2.4 30 June 1995 3. Technical Assistance 4.0 31 March 1999 4. Transport 18.0 30 June 1999 5. Agriculture Structural Adjustment Credit 20.0 31 December 1998 6. Housing 15.0 31 December 1999 7. Social Safety Net Development 5.5 31 August 1999 8. Labor Market Development 5.4 30 June 1999 9. School Rehabilitation 9.6 31 March 2000 10. Tax Administration and Modernization 4.0 30 June 2000 11. EFSAC 15.0 30 June 1998 12. Irrigation Rehabilitation 10.0 30 June 2001 13. Durres Water Supply 11.6 31 October 2000 14. Health Services Rehabilitation 12.4 31 March 2001 15. Power Loss Reduction 5.0 31 December 1997 16. Rural Development 6.0 31 December 1999 17. Urban Works and Microenterprise 4.0 30 June 1999 18. Agro-processing Development 6.0 30 June 2000 19. Rural Roads 15.0 31 December 2000 20. Power Transmission and Distribution 29.5 31 January 2003 21. National Roads 25.0 30 May 2003 22. Rehabilitation Credit 25.0 31 December 1998 23. Private Industry Recovery 24. Community Works 10.25 9.0 31 January 2003 31 March 2003 25. Public Expenditure Support 30.0 30 September 2000 26. Structural Adjustment Credit 45.0 31 December 2000 27. Community Works Supplemental 5.0 31 March 2003 28. Recovery Program TA 5.0 31 October 2002 29. Emergency Road Repair Project 13.7 31 December 2003 9 Albania and The World Bank TABLE OF CLOSED PROJECTS (contâ€™) PROJECT NAME CREDIT AMMOUNT (million US US$ ) CLOSING DATE 30. Poverty Reduction Support Credit 1 20.0 30 June 2003 31. Poverty Reduction Support Credit 2 18.0 31 December 2004 32. Water Supply Urgent Rehabilitation Project 10.0 1 March 2004 33. Education Reform Project 12.0 31 October 2004 34. Forestry 8.0 30 June 2004 35. Durres Port Project 17.0 31 December 2004 36. Poverty Reduction Support Credit 3 10.0 31 December 2005 37. Financial Sector Adjustment Credit 15.0 31 December 2004 38. Health System Recovery and Development Pr. 17.0 31 January 2005 39. Urban Land Management 10.0 31 March 2005 40. Second Irrigation & Drainage Project 24.0 31 March 2005 41. Trade and Transport Facilitation in SE 8.1 31 March 2005 42. Microcredit Project 12.0 30 June 2005 43. Legal & Judicial Reform Project 9.0 30 September 2005 44. Financial Sector Institutional Building TA 6.5 30 June 2005 45. Public Administration Reform Project 8.5 15 December 2006 46. Power Sector Rehabilitation & Restructuring Pr. 29.9 31 December 2006 47. Road Maintenance & Supplement Projects 30.0 30 June 2007 48. Fishery Development Project 5.6 30 September 2007 49. Development Policy Operation 1 (DPO1) 10.0 31 December 2007 50. Agricultural Services Project 9.9 31 March 2008 51. Second Community Works Project 15 20 September 2008 52. Municipal Water and Wastewater Project 15 31 December 2009 53. Water Resource Management Project 15 30 June 2009 TOTAL 10 742.95 ON-GOING PROJECTS SOCIAL SERVICES DELIVERY PROJECT Status Borrower Project Coordinator Project Cost Credit/Loan Amount Co financing Under implementation Albania Ministry of Labor, Social Affairs and Equal Opportunities Social Insurance Institute US$ 20 million US$ 15.0 million US$ 2.5 million (Government of Albania) Date of Signing Effective Closing Date July 3, 2001 January 28, 2002 September 2012 Project Objectives The project development objective for the whole project, including the Additional Financing (US$ 5.0 million, approved in March 2009) is to improve the standards of living for poor and vulnerable population groups in Albania by: (a) increasing their access to well targeted and effective social care services; (ii) assisting the Government to develop effective social care policy and improve its capacity for delivery and monitoring of social care services; and(iii) improving the efficiency and effectiveness of the pension system in Albania through: i) improving pension system administration, (ii) institutional strengthening including improved capacity for pension policy development, and (iii) improving public understanding of the pension system. Project Description The project has four components: 1) policy development and capacity building with three sub-components: (i) poverty monitoring and evaluation; (ii) social services policy development; (iii) pension policy modeling; 2) social services administration capacity building with two sub-components: (i) monitoring and administration of social services; and (ii) strengthening capacity for social work training; 3) community-based social services with two sub-components: (i) the fund for community-based social services; (ii) local government and social service provider capacity building; and 4) project management, information system and monitoring. With the approval of the Additional Financing, four sub-components were added under Project Component 1, as follows: (i) Administrative Reform of the Albanian Pension System, (ii) Development of the central Registry of Contributors and beneficiaries, (iii) Capacity Building for Pension Policy development, and (iv) Public Education on Pension System. Project Achievements The original project (which focused mainly on social care delivery), has achieved good results in both fronts: the development of social policy as well as implementation of social service delivery to vulnerable groups. The whole legal framework, including the secondary legislation, has been completed and is currently under 11 ON-GOING PROJECTS SOCIAL SERVICES DELIVERY PROJECT Distribution of Daily Social Centers supported by SSDP 12 ON-GOING PROJECTS SOCIAL SERVICES DELIVERY PROJECT implementation. The support to three LSMSs and a Household Budget Survey (carried out by INSTAT), has been completed successfully. Positive results have also been achieved on the capacity building front, both at central and local level. The State Social Services Institute (SSS) was transformed to an Inspectorate for monitoring, managing and delivering social services. Moreover, a total of 44 sub-projects have been established with the Project support and are currently under implementation. Activities introduced after the Project restructuring (in 2006) including: (i) support for the Government strategy for the decentralization/deinstitutionalization and transformation of residential care centers by improving the quality of care based on the new national standards, and (ii) support for redesigning the welfare cash benefits system (NE) as part of the integrated social assistance system, as clearly outlined in the government strategy; are already completed. The project was restructured, aiming to use the cost savings amounted for around USD 2.7 million (resulted from the exchange rate fluctuations). After that, the project also benefited from an additional financing (for an amount of US$ 5.0 million). This resulted in an extension of the original closing date, until September 30, 2012. Currently, the project has already started implementing the newly introduced activities, including: (i) support for the Social Insurance Institute for designing the archive IT system, the physical rehabilitation of the archive building, rehabilitation of the regional offices of the Social Insurance Institute, assessment of the hardware for interconnectivity, data protection system, etc. ď ą Disbursement US$10 million (as of May 2010) Contact Points Task Team Leader Government Contact Person Lorena Kostallari, Tel: 355-42 280-650/1; Fax: 355-42-240590 e-mail: firstname.lastname@example.org Astrit Hado, Deputy Director of Social Insurance Institute, Tel: 355 4222 78 50, e-mail:email@example.com 13 ON-GOING PROJECTS POWER SECTOR GENERATION AND RESTRUCTURING PROJECT Status Borrower Under implementation Albania Project Cost Credit Amount Co-financing US$ 130 million US$ 25 million US$ 50 million EBRD, US$ 50 million EIB, US$ 5.0million KESH Signing Date Effective Closing Date April 6, 2006 January 25, 2005 June 30, 2010 Project Objectives The development objective of the proposed project is to achieve significant improvement in power system outcomes (balance in the supply and demand of electricity, efficiency in its supply and use, financial viability of the power sector, and institutional effectiveness within the sector) through priority investments and other measures to: (i) increase thermal generation for meeting part of the domestic base load demand, thereby allowing more efficient utilization of hydropower for meeting domestic peak demand and for exchanges with base load energy from other power systems of the region, and (ii) enforcement of a strengthened policy regime. Project Description The project consists of a combined-cycle power station fueled by distillate oil at a six-hectare greenfield site about six km north of Vlora, adjacent to an offshore oil tanker terminal. The plant has been designed to allow conversion to natural gas, when imported gas is brought to Albania. The Engineering, Procurement, and Construction contract for the plant (with a capacity of 97 MW) was signed in late February 2007 between KESH and the Italian company Technimont. A complaint for the project was filed with the WB’s Inspection Panel (IP), as well as the equivalent function of EBRD. The Bank’s IP has recommended further investigation of the project, which was approved on a no-objection basis by the Bank’s Executive Board. The Management Response was prepared by the Bank and approved by the Bank’s Executive Board on October 22, 2009. At the moment, the civil works and installation of the equipment have already completed and the test and commissioning period has started. The plant is expected to start operating commercially in June 2010. 14 ON-GOING PROJECTS POWER SECTOR GENERATION AND RESTRUCTURING PROJECT Project Achievements Under the technical assistance component of the project, KESH will prepare its financial statements using international standards for the first time. This has facilitated the process of KESH’s generation business greatly. The unbundling of the power sector has been achieved successfully and three power companies (generation, transmission and distribution) are fully operational. Implementing Agencies METE and KESH Beneficiary KESH Disbursement US$ 22 million (as of May 2010) Contact Points Task Team Leader Project Officer at Tirana Office Government Contact Person Salvador A. Rivera, ECSSD; Tel: 202-473-1131 E-mail :Arivera2@worldbank.org Gazmend Daci Tel: 355-4-2280-650/1 Fax: 355-4-22 E-mail: firstname.lastname@example.org Muharem Stojku, General Director, KESH Nexhat Hajdari, Director PIU, KESH, Tel: 355-4-2262055; E-mail: email@example.com 15 ON-GOING PROJECTS NATURAL RESOURCES DEVELOPMENT PROJECT Status Borrower Project Coordinator Under implementation Albania Ministry of Environment, Forestry & Water Administration Project Cost Credit Amount GEF amount Co-financing US$ 19.4 million US$ 7 million US$ 5 million US$ 5.2 million Swedish Government Signing Date Effective Closing Date June 29, 2005 November 25, 2005 November 1, 2010 Project Objective The project development objective is to establish or maintain sustainable, community-based natural resource management in about 210 communes in upland and mountainous erosion-prone lands, leading to enhanced productivity and incomes derived from sustainable resource management, reduced soil degradation, improved water management, conservation of biodiversity, and strengthened public sector management of these resources. Project Description Project objectives will be achieved through implementing two components: (1) Improved Management of Forest and Pastures. This component will strengthen the communitybased approach to forest and pasture management developed for 138 communes under the closed Albania Forestry Project, as well as scale up coverage to include about 80 additional communes. This component will thereby establish resource rehabilitation and sustainable management of forests and pastures in most of communal lands of upland areas of Albania that are experiencing resource degradation and erosion. This area includes approximately 490,000 ha of forest lands, and 186,000 ha of pastures in upland areas of all 12 regions in Albania, and a will reach a rural population of more than one million people. The component will continue the preparation of management plans as a condition for the transfer of userrights to forest and pasture resources to communes, prepare the way for transfer of land ownership to communes, and implement a series of small-scale investments and capacity-building measures to improve the governance of forest and pasture resources. (2) Improved Watershed Management. Based on successful Bank experiences in other countries, the second component will pilot integrated management of natural resources in three of Albania’s seven 16 ON-GOING PROJECTS NATURAL RESOURCES DEVELOPMENT PROJECT Communes Supported by Forestry & Natural Resources Development Projects 17 ON-GOING PROJECTS NATURAL RESOURCES DEVELOPMENT PROJECT watersheds, focusing on five regions (Dibra, Kukes, Lezha, Elbasan and Korca). The component will introduce an approach to planning and management of natural resources at the level of micro-catchments. This will include the integration of forest and pasture management with crop and livestock production, as well as soil and water conservation, in a mutually reinforcing manner. The Project will apply a participatory approach to assisting communities living in micro-catchments to plan and manage their resources. This component of the Project will also build the capacity of local community-based and decentralized government institutions to establish and maintain sustainable resource management throughout the upland and mountainous areas of the country. The project is also supporting carbon sequestration measures in degraded lands through tree planting, assisted natural regeneration and control of animal grazing in 24 communes (6272.36 ha ) that are among the poorest in the country, with a median poverty rate of 42%. The Biocarbon Fund of the World Bank has reached an agreement with the Government to purchase emission reductions from Albania received from these carbon sequestration activities. Project Achievements Ownership of 60% of country’s forest and pasture lands or 754,148 ha have been transferred from central to local governments. The participatory communal forest and pasture management plans will be introduced in 250 communes that cover 644,739 ha. They are expected to be finalized, by end of end of March 2010. Erosion reduction measures have been established and erosion reduction is estimated at 150,000 tons to date. The implementation of micro-catchment plans is ongoing in 30 communes, while forest and management plans in 190 communes. The implementation of the plans has involved the employment of some 6000 workers, including 1900 women and 1900 beneficiary families, since Project start-up. Implementing Agencies Ministry of Environment, Forestry & Water Administration Beneficiaries Ministry of Environment, Forestry and Water administration; selected regions and communes. Disbursement US$ 13,8 million (as of May 2010) Contact Points 18 Task Team Leader Drita Dade, Tel: 355-4-2280-650/1; Fax: 355-4-2240590; e-mail: firstname.lastname@example.org Government Contact Person Nehat Collaku, Director, Ministry of Environment, Forestry & Water Administration, Tel: 355-4-2222919; Fax: 355-4-2270630; e-mail: email@example.com ON-GOING PROJECTS INTEGRATED COASTAL ZONE MANAGEMENT AND CLEAN UP PROGRAM Status Borrower Project Coordinator Under implementation Albania Ministry of Public Works, Transport & Telecommunication Project Cost Credit Amount Co-financing US$ 38.56 million US$ 17.5 million US$ 3.11 million Dutch Government, US$ 2.23 million Japanese Government, US 1.8 from EU Commission; US$ 2.60 Austrian Government, US$ 0.95 million GEF Signing Date Effective Closing Date June 29, 2005 November 25, 2005 December 31, 2012 Project Objective The restructured project was approved by the Board on March 22, 2010. It addresses changes in the original economic, financial, and technical environment specific to the original design of ICZMCP. It also addressed design and implementation issues raised in the Inspection Panel Investigation Report for the Project. The restructured Project Development Objective is to assist the Government of Albania in developing, on a sustainable basis, tourism in the South Albania coast by improving critical public environmental infrastructure and municipal services, remediating and containing pollution hazards from a former chemical plant in Porto Romano near Durres, improving community infrastructure and enhancing architectural and cultural resources. The PDO has been changed to focus on support for critical infrastructure for improving environmental and sanitary conditions essential for the long term coastal development and tourism. ď ą Project Description Though the Integrated Coastal Zone Management and Clean-up Project was originally foreseen as an Adaptable Program Lending Credit (APL) consisting of two phases, no second phase will take place under the restructured Project. The focus of the restructured Project is on providing support to critical infrastructure for improving environmental and sanitary conditions essential for the long term development of the South Coast. The restructured Project will cease to support land use planning activities. Specifically, the Project will support investments for (i) clean-up of the hazardous waste site in Porto Romano; (ii) construction of a landfill and a transfer station in support to improved solid waste management in the coastal municipality ď ą 19 ON-GOING PROJECTS INTEGRATED COASTAL ZONE MANAGEMENT AND CLEAN UP PROGRAM of Saranda; (iii) reconstruction of port facilities in Saranda to allow access of cruise liners in order to facilitate passenger access to the Southern Coast; (iv) water supply and wastewater investments in the city of Saranda; (v) community-based investments in coastal villages; and (vi) protected areas management of Butrint National Park. More specifically the project will finance the following: a). Investments in Protected Area Management Strengthening to pilot implementation of sustainable management of the Butrint National Park. b). Investments in Southern Coastal Environmental Infrastructure and Rehabilitation focusing on the construction of solid waste infrastructure including municipal landfill to serve the municipality of Saranda and one transfer station in Himara; technical assistance for a review of issues related to the unsanitary dumpsite near Saranda and a review of regulatory issues related to construction and demolition (C&D) waste c). Investment in Saranda Gateway Rehabilitation for the reconstruction of Saranda city passenger port facilities to allow access of cruise liners and facilitate tourism development to the Southern Coast. d) Investment in water supply and sanitation in Saranda city Tourist Area to support improvement of water supply and sanitation. e). Coastal Village Conservation and Development (CVCD) Program supporting activities focusing on infrastructure that increases net economic benefits to participating coastal communities. This includes (i) village infrastructure improvements and (ii) capacity building and technical assistance. The Program will support the development of “Bed and Breakfast” services as a window of the Roof and Facade Program designed to enhance vernacular architectural value of traditional villages on the South Coast. The technical assistance in support to CVCD includes: (i) technical assistance for the management and maintenance of water supply systems, road maintenance and waste water treatment; and (ii) technical assistance related to tourism and cultural heritage, thereby identifying opportunities for local communities to benefit from cultural heritage and non-traditional tourism. f). Investments in Porto Romano Hot Spot Clean-up which support remediation and containment of hazardous pollution in the former chemical factory at Porto Romano. The obsolete chemicals stored in the warehouses have been repackaged and incinerated abroad through bilateral assistance provided by the Dutch Government to the Government of Albania. The project will finance the remediation and rehabilitation and technical assistance for awareness building, monitoring and implementation of the Porto Romano site after-care program to protect the long-term integrity of the encapsulated hazardous materials site. h). Project Management and Monitoring for overall management and coordination, public awareness and outreach, monitoring and evaluation, and preparation of the Social and Vulnerability Assessment. Project Achievements Several activities were completed before Project restructuring. The Southern Coastal Development Plan (SCDP) and Coastal Regulations were completed including a participatory dialogue with stakeholders 20 ON-GOING PROJECTS from central, regional and local level on the Southern Coast Regulations and the subsequent formulation of the Plan. Based on this dialogue the draft regulations and draft Coastal Zone Development Plan were drafted and put forward for public consultations at the end of 2007 and early 2008. The SCD Land Coastal Regulations were approved by the Government in July 2008. Cleanup of Porto Romano hotspot, co-financed by the Dutch Government, is about to commence. Phase one of the Coastal Village Conservation and Development Program, co-financed by the European Commission, has supported village infrastructure improvements in the thirteen coastal communities. Preparation of detailed designs for the rehabilitation of Saranda Port has been completed. Similarly, the investigation and design for the Bajkaj solid waste landfill, co-financed by the Austrian Government, has been completed. The detailed design for the water supply and wastewater investment in Saranda has been finalized and the procurement process for the civil works is underway. The preparation of the Management Plan for Butrint Park is nearly completed. Implementing Agencies Ministry of Public Works, Transport and Telecommunication, Ministry of Environment, Forestry and Water Administration, and Ministry of Tourism, Culture, Youth and Sports. Beneficiaries National, regional and local agencies; local governmental units and communities. Disbursement US$ 4 million from IDA, US$ 0.55 from the Dutch Government, US$ 0.62 from the Japanese Government, US$ 1.76 from EU (as of May 2010) Contact Points Task Team Leader Adriana Damianova, ECSSD, Tel: 202- 4732159 ; Project Officer at Tirana Office Drita Dade, e-mail: firstname.lastname@example.org Government Contact Person Edmond Haxhinasto, Deputy Minister, Ministry of Public Works, Transport & Telecommunication, Tel: +355-4-2227945, fax + 355-4-2227819 21 ON-GOING PROJECTS ENERGY COMMUNITY OF SOUTH EAST EUROPE APL2- ALBANIA TRANSMISSION Status Borrower Project Coordinator Under implementation Albania KESH Project Cost Credit Amount Co-financing US$ 52.14 million US$ 27 million US$ 20 million EBRD, US$ 5.14 million KESH Signing Date Effective Closing Date July 25, 2005 December 21, 2005 January 31, 2011 Project Objective Energy Community of South East Europe (ECSEE) is a regional program and support up to eight countries (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Romania, Serbia and Montenegro, and Turkey) and Kosovo. The overall objective of this regional program is the development of a functioning regional electricity market in South East Europe and its integration into the internal electricity market of the European Union, through the implementation of priority investments supporting electricity market and power system operations in electricity generation, transmission and distribution, and technical assistance for institutional/systems development and project preparation and implementation. ď ą Project Description The Project (ECSEE APL2-Albania) will provide investment support and technical assistance for Albania. The objective of the investment is to extend the lifetime and improve the quality, reliability, safety and efficiency of the bulk power transmission system by replacing ageing existing facilities with new ones. The technical assistance would serve to facilitate project implementation, strengthen the Transmission System Operator (OST), and improve both the tariff structure and the procurement procedures applicable to electricity imports. The project consists of: ď ą - replacement of high-voltage equipment in the transmission substations Burrel, Elbasan 1, Elbasan 2, Fier, Fierza, and Tirana 1, and replacement of control and protection equipment in the transmission substations Burrel, Elbasan 2, Fier, Fierza, Koman and Vau Dejes; and - technical assistance for: - procurement activities and supervision of project implementation; 22 ON-GOING PROJECTS ENERGY COMMUNITY OF SOUTH EAST EUROPE APL2- ALBANIA - TRANSMISSION - strengthening the Transmission System Operator (OST); - an electricity tariff study; and - improving procurement procedures for electricity imports. Most of the equipment in the existing transmission substations is more than 30 years old and based on outdated technology, with the result that many needed spare parts are not available on world markets. The transformers and some other equipment are being replaced by KESH, EBRD and EIB. The proposed project covers the remaining equipment requirements in these transmission substations. Project Achievements The project is part of the Energy Community of South Eastern Europe series of APL operations. The physical investments are at the implementation stage; technical assistance to strengthen Albania’s transmission system operator achieved the objective of establishing a fully unbundled transmission and system operator. Technical assistance under this project prepared a business strategy for OST and the new tariff application for OST. Implementing Agencies METE and OST Beneficiary OST Disbursement US$ 3.8 million (as of May 2010) Contact Points Task Team Leader Salvador A. Rivera, ECSSD, Tel: 202-473-1131 E-mail: email@example.com Project Officer at Tirana Office Gazmend Daci Tel: 355-4-2280-650/1 Fax: 355-4-2240590 e-mail: firstname.lastname@example.org Government Contact Person Ymer Balla, General Director, OST Elton Radheshi, Director PIU, OST e-mail: email@example.com 23 ON-GOING PROJECTS HEALTH SECTOR MODERNIZATION PROJECT Status Borrower Project Coordinator Under implementation Albania Ministry of Health Project Cost Credit Amount Co-financing US$ 19.1 million US$ 15.4 million US$ 1.61 million from PHRD Signing Date Effective Date Closing Date 22 April, 2006 7 September, 2006 30 September 2010 Project Objectives The development objectives of this project are to (i) improve both physical and financial access to, and the actual use of, high quality primary health care services, with an emphasis on those in poor and under-serviced areas, diminish the unnecessary use of secondary and tertiary care facilities, (ii) increase the effectiveness of the Ministry of Health and Health Insurance Institute (HII) in formulating and implementing reforms in provider payments and health system performance, and (iii) improve governance and management in the hospital sector. Project Description The Project includes (1) Strengthening Health Sector Stewardship, Financing and Purchasing to help the HII develop its functions and capacity as the sole purchaser of health services, and support capacity building in the MoH, the Institute of Public Health (IPH) and the HII to strengthen their stewardship roles in the health system; (2) Improving Primary Heath Care Service Delivery to support institutional reforms and limited investments which would improve the quality of care among health care providers and in health facilities. The program would also facilitate enrollment of the population with the HII, enrollment with a primary care physician, and related public information campaigns; and (3) Strengthening Hospital Governance and Management, by providing initial steps to improve hospital operations and direction by focusing on accounting and internal control structures for hospitals, an improved regulatory framework, and piloting reforms of hospital management and governance structures in selected hospitals. Project Achievements The implementation of the Health Modernization project has suffered from significant delays. However, currently most of its key activities are under implementation or have completed, e.g. purchasing of primary health care IT equipment and primary health care medical equipment, purchasing of a number of 24 ON-GOING PROJECTS HEALTH SECTOR MODERNIZATION PROJECT autoclaves and mammography units, and a second round for purchasing medical equipment for regional hospitals is under way. Meanwhile, the work for the redevelopment of the Health Insurance Institute (HII) information system, which will support the enrollment of patients with their chosen family physician, as well as better control of pharmaceutical expenditures and physician activities, is starting. In addition, a number of technical assistance activities have been contracted and many are currently finalized. They offer crucial support to the overall reform in the sector. However, the Ministry of Health and the Health Insurance Institute need to strengthen the ownership of the results of this support. Implementing Agencies Ministry of Health Beneficiaries General population – with an emphasis on those in rural and remote areas – through improved primary health care services and improved governance, management and fiscal sustainability of the health care system. Disbursement US$ 6.1 million (as of May 2010) Contact Points Task Team Leader Lorena Kostallari, ECSHD, e-mail: firstname.lastname@example.org Government Contact Person Saimir Kadiu, Director, Economic Department, Ministry of Health, e-mail: email@example.com 25 ON-GOING PROJECTS EDUCATION EXCELLENCE AND EQUITY PROGRAM Status Borrower Project Coordinator Under implementation Albania Ministry of Education and Science Project Cost Credit Amount Co-financing US$ 75 million equivalent US$ 15.million US$ 30 million from the Albanian Government Euro 14 million from the Council of Europe Development Bank, Euro 12.5 million from the European Investment Bank Project Objectives The development objective of this project is to improve the quality of learning conditions for all students and increase enrollment in general secondary education especially for the poor. The intermediate goals are that leadership, management and governance of the education system are improved, teachers use new methods of teaching and a wider variety of learning aids in schools, the quality of school infrastructure and the efficiency of its use are improved, and the initial steps of higher education reform are taken. Project Description The project focuses on four priorities: 1. Strengthening leadership, management and governance of the education system. This priority area aims to strengthen the leadership and management capacities, and to enhance governance and accountability of the education system. As such, the project supports activities associated with the decentralization, strengthening the leadership, professional development of school principals, decision making and resource management at the school level, increasing the communities’ participation, introduction of performance-based management system, and full utilization of the Education Management Information System for decision making. 2. Improving conditions for teaching and learning. This priority area focuses on the quality of teaching and learning conditions in a holistic manner. It pays special attention to supporting teachers’ professional development. It also addresses the issues of curriculum reform, including the development of a national curriculum framework, rationalization of subjects, integration and textbook development. To implement curriculum reform, teacher education policies and practices have to be closely aligned. The development of assessment and evaluation of education would continue through strengthening the capacity of the National Center for Evaluation and Assessment, development of a national plan for evaluation in education, and improving the transparency and integrity of the national examination system. This priority area supports actions to enable teachers and students to use a wider range of appropriate educational tools and methods in the teaching and learning process. 3. Improving and rationalizing education infrastructure, especially in secondary education. This priority area addresses more efficient investment and (re)allocation in physical infrastructure and human recourses especially at the secondary education level. It supports the Ministry of Education and Science in making investment decision based on school mapping, which takes into consideration the demographic development in Albania. Science laboratories and ICT facilities would be provided to general secondary schools in line with the new curriculum and teacher training to be supported in priority area two. 26 ON-GOING PROJECTS EDUCATION EXCELLENCE AND EQUITY PROGRAM Distribution of schools supported by eeep New schools Reconstructed schools Extended schools 27 ON-GOING PROJECTS EDUCATION EXCELLENCE AND EQUITY PROGRAM 4. Setting the stage for higher education reform. This priority area focuses on higher education reform. It supports the Ministry of Education and Science and universities to carry out a review of the system to identify and sequence reform activities, which include strengthening of university governance, increasing financial autonomy and accountability of universities, strengthening the quality assurance mechanism, and promoting university partnership arrangements. It also aims to expand the opportunities for students by mobilizing private financing and provision and making the use of public resources more efficient. Implementing Agencies Project Achievements Ministry of Education and Science Ministry of Education and Science data show that between 2006 and 2009 secondary enrollment rates increased from 55 to 60 percent. At the same time, there has been progress in closing the per-student basic education expenditure gap between urban and rural students, an important element in trying to reduce the disparities in student performance. The project has supported training for all school principals in management and education leadership skills, as well as professional development for one-fourth of the teachers. Additionally, the project supported the design and introduction of new curricula in basic and secondary education, accompanied by new textbooks – all primary schools are reported to be using the new curriculum and textbooks. An information technology curriculum was introduced and teachers received training. Accompanying the new curriculum, the project financed the purchase of computers for over 2,000 basic and secondary level schools, thus more than doubling the availability of computers to Albanian students; whereas in 2006 there were 61 students per computer on average, by 2009 there were 25 students per computer. In rural schools the change in ratio is far more dramatic for the same period – from 148 students per computer to 27 students per computer. There has also been improvements in classroom over-crowding, though not fully to the credit of the project. The share of students in multiple-shift classrooms fell from 34.5 to 17.7 percent in primary schools and from 7.7 to 5.7 in secondary schools between 2006 and 2009. School infrastructure planning and investments under the Education Excellence and Equity Project, albeit delayed, should help to further to decreasing over-crowding. By the time the project closes, 480 new classrooms are expected to be functioning. At the higher education level, the project is supporting a reform effort to comply with the requirements of the Bologna process, strengthen quality assurance mechanisms, and help public universities establish public boards. As of early 2010, all universities had established an external governing board and 70 percent of them had prepared new strategic plans. Some 35 science and didactic labs have been provided to public universities through a competitive grant scheme, and another 65 labs are expected to be financed for public universities under the project. Beneficiaries The direct beneficiaries of this project are the students in basic, secondary and higher education, as well as key stakeholders in the education sector such as teachers, school directors, and education personnel. Next stage The project is currently being restructured to accommodate support for new school construction. The restructuring should be effective by May 2010. Disbursement US$ 6.5 million (as of May 2010) Contact Points 28 Team Leader Andrea Guedes, Senior Operations Officer, Tel 1-202-473-6286, Fax 1-202-477-0574, Email: firstname.lastname@example.org, Project Officer at Tirana Office Gentjana Sula, Operations Officer, Education, Tel: 355-4-2280-650/1 ; Fax: 355-4-2240590, e-mail: email@example.com Government Contact Person Skender Uku, MoES Secretary General, Tel: 355 4 2230 747, e-mail: suku@ mash.gov.al and Suzana Papadhopulli, Adviser for Reform Coordination at MoES, Tel: 00355 4 2249 514, e-mail: firstname.lastname@example.org ON-GOING PROJECTS AVIAN INFLUENZA CONTROL AND HUMAN PANDEMIC PREPAREDNESS AND RESPONSE PROJECT Status Borrower Project Coordinator Under implementation Albania Task Force in the Ministry of Agriculture, Food and Consumers Protection Project Cost Credit Amount Co-financing US$ 6.1 million US$ 5.0 million US$ 0.8 million from Gov. of Japan, PHRD grant, US$ 0.3 million from Government of Albania Signing Date Effective Date Closing Date 11 July 2006 16 October 2006 December 31, 2010 Project Objectives The project has been restructured in October 2009 in order to expand its scope of planned interventions to include other zoonotic diseases, while still preserving the integrity of the original project design related to Avian Influenza. The restructured project objective is to minimize the threat posed to humans by Highly Pathogenic Avian Influenza (HPAI) infection and other zoonoses and to prepare for, control, and respond to influenza pandemics and other infectious disease emergencies in humans. The restructuring also provided a timely response to H1N1 pandemic as well as further extending the project’s impact on general preparedness for zoonosis outbreaks. Project Description The project has several components: 1. Public Awareness and Information Component. The first subcomponent, Information and Communication Services focus on developing and implementing a preparedness plan for effective communication of messages to inform the public about the threat of avian influenza and influenzalike diseases and how they can minimize the risk of transmission and spread of disease. The second subcomponent—Capacity-Building—will provide training for personnel that can help prevent and contain Avian influenza outbreaks. 2. Animal Health Component. This comprises three subcomponents: The first will enhance HPAI and other zoonotic diseases prevention and preparedness capability, by strengthening the national policy regulatory environment, and improving HPAI prevention and control planning. The second focuses on strengthening disease control capacities, and improving surveillance, diagnostic capacities, and applied research. The third subcomponent deals with strengthening control programs and outbreak containment programs, by targeting virus eradication at the source. 3. Human Health Component. This will comprise three subcomponents: The first one will enhance coordination and program planning, by strengthening intra-sector command and sector coordination mechanisms; identifying crucial gaps in human health infrastructure, equipment, human and other 29 ON-GOING PROJECTS AVIAN INFLUENZA CONTROL AND HUMAN PANDEMIC PREPAREDNESS AND RESPONSE PROJECT resources. The second one will strengthen the national public surveillance system by providing the National Influenza Laboratory with retraining, equipment and facilities to contribute to up-grading its bio-safety level and by strengthening the capacity of the IPH and regional epidemiological investigation and response teams. The third one will strengthen health care response capacity, by expanding regular seasonal flu vaccinations, supporting the purchase of anti-viral drugs, and pandemic influenza vaccines. 4. Support to Avian Influenza Task Force This component supports the Avian Influenza Task Force in implementation of the government’s Avian Influenza response strategy. Project Achievements The Public Awareness and Information component supported the (i) development of a communication strategy, (ii)media campaign with key messages through TV and radio advertisements on personal hygiene and prevention of seasonal flu, (ii) printing and distribution of posters and brochures, (iii) activities with farmers and their associations continue at all levels through direct contact and discussions, with airing of TV documentary on national and local TV channels, distribution of leaflets etc., and (iv) awareness activities at school level with key messages on seasonal flu and H1N1 prevention,. Under the animal health component, the National Veterinary and Epidemiological Unit (NVEU) was established and trained and is working to improve the surveillance of the anthropozoonosis country wide. The legal framework governing diseases control in general, and contingency plan in particular, has been reviewed and updated, and a compensation fund for culling established. Under the human health component, the updating of the contingency plan has been given priority. The Standard Operating Procedures for different levels of the health system have been prepared based on general WHO guidelines. Two tabletop simulation exercises have been conducted so far, closely integrated with the animal health service. A modern and well equipped Intensive Care Unit for contagious patients has been established in the Tirana University Hospital “Mother Theresa” and is now functioning. Furthermore, the Institute of Public Health (IPH) Laboratory has been reconstructed. Both IPH and Veterinary Laboratory have been provided with equipment (Real Time Polymerase Chain Reaction) and staff has been trained to increase the accuracy and speed of the diagnostic process that is now performed in country as a result. Appropriate stock of antiviral and protective equipments for the institute and the hospital in the center and the regions, yearly vaccination against seasonal influenza of vulnerable and at risk groups, and pandemic influenza vaccines have been provided. Implementing Agencies Task Force in the Ministry of Agriculture, Food and Consumers Protection Disbursement US$ 4.3 million (as of May 2010, including IDA credit and PHRD grant ) Contact Points Task Team Leader Ibrahim Hackaj, e-mail: email@example.com Government Contact Person Task Force Chairman Ndoc Fasllia, Tel: 355-4-2228379, e-mail: firstname.lastname@example.org, Project Coordinators: Altin Telo, Eralda Mariani, Tel: 355-4-2230851, e-mail: email@example.com 30 ON-GOING PROJECTS BUSINESS ENVIRONMENT REFORM AND INSTITUTIONAL STRENGTHENING PROJECT (BERIS) Status Borrower Project Coordinator Under implementation Albania Ministry of Economy, Trade and Energy Project Cost Credit/Loan Amount US$9.8 million IBRD Loan of Euro 4.4 million (US$5.6 million equivalent) and IDA Credit of US$3.7 million Signing Date Effective Date Closing Date 27 November 2006 1 March 2007 15 January 2011 Project Objectives BERIS overall objective is to assist the Government in: (i) facilitating business entry and operations; and (ii) strengthening the enterprise sector’s capability to increase exports towards the region and EU markets. Project Description The project consists of the following three components: (i) Facilitating business entry and operations. This component aims at addressing the Government’s weak capacity to establish and implement business-friendly and pro-competitive regulatory regimes. The overall objective of the component is to remove administrative and regulatory barriers to entry and operations. This objective will be achieved through the following sub-components: (a) Improving quality of regulations affecting business entry and operations. This sub-component – which has been designed with FIAS support – will assist in strengthening the institutional framework and capacities necessary to improve in a systematic manner the quality of regulations affecting business activity. This will be done by: (a) building regulatory capacities and a regulatory management system in line-ministry level and at the central level; (b) developing the capacity to improve the quality of new regulations, through the Regulatory Impact Assessment (RIA), public consultation and complementary methods; (c) upgrading the quality of existing regulations partially via targeted reviews of regulation in selected areas/industries, and partially via improving the access to business-related laws and regulations in Albania; and; (d) developing and implementing a monitoring and evaluation (M&E) system for regulatory reforms. Finally, the sub-component will support small business surveys and two ARCSs which will be used to assess outcomes of the sub-component. (b) Strengthening the institutional capacity to draft business regulations enabling healthy market competition. This sub-component aims at addressing the lack of healthy market competition by strengthening Albania’s capacity to draft and implement business regulations without any major distortionary effect on market competition. This will be done by strengthening the capacity of the METE to assess impact of regulations on market competition. (ii) Strengthening the enterprise sector’s capability to export to regional and EU markets: Strengthening the MSTQ system. This component aims at addressing the enterprise sector’s difficulties in competing in domestic and foreign markets due to poor national MSTQ infrastructure and services. The overall objective of this component is to strengthen the enterprise sector ability to export towards EU markets by strengthening the capacity of the national MSTQ system to deliver EU-compatible services. This will be achieved through: (a) assisting in drafting and 31 ON-GOING PROJECTS BUSINESS ENVIRONMENT REFORM AND INSTITUTIONAL STRENGTHENING PROJECT (BERIS) implementing a comprehensive medium-term strategy, including reviewing the institutional and legislative framework, to bring each of the MSTQ institutions closer to EU requirements and to meet industry’s needs; (b) increasing business sector awareness of the challenges and opportunities of competing in the EU markets; (c) strengthening the capacity of the General Directorate of Metrology and Calibration (GDMC), including modernizing the metrology infrastructure and, in particular, construction of a modern metrology laboratory, to perform basic measurements and calibrations services; (d) strengthening the capacity of the General Directorate of Standardization (DPS), including improving standards system through the translation and adoption of most frequently used EU standards; and (e) strengthening the capacity of the Directorate of Accreditation (DOA). (iii) Project Coordination Support. This component aims at ensuring proper implementation and coordination of the project activities, including support for financial management, procurement, M&E requirements. It will also support organization of periodic business surveys, integrated public information campaigns for the MSTQ system, and building of a more effective public-private sector dialogue on reforms. The component will also assist in the dissemination of progress made by the Government in improving the business environment among the business community, policy makers and other relevant stakeholders. Key project beneficiaries would be public sector institutions involved in drafting business sector-related policies and in the delivery of public services (MSTQ institutions, Department of Trade Policy, etc.) for domestic and foreign businesses and regulators. Consumer protection and business associations – although non-direct project beneficiaries – will continue to be involved during project implementation. Project Achievements The Government has maintained the momentum on the business regulatory reform. The Business Registration Center and the Business Licensing Centre have been established, are fully operational and are extending across the country. Right now, BERIS is supporting with expertise and advise one of the most complex business reforms: the inspection reform. The government has decided to change the inspection regime and to embark in a new, efficient and non-abusive model. Currently, the model has been identified and the consulting firm together with World Bank experts are drafting the new law on inspection as well as starting the training for public officials and inspectors. A fully functional system for Regulatory Impact Assessment (RIA), including its institutions and procedures, is supposed to be in place at the end of the contract. The National MSTQ Strategy and the Metrology Strategy have been approved by the Government and those documents set the vision and objectives of the quality infrastructure in Albania for a 10-year period. A new metrology building is expected to be one of the most substantial physical investments under BERIS, and the design for the building has already been completed. The bidding documents for the construction have been issued and the construction works are supposed to start at the beginning of July. In the meantime two lots of metrology equipment are soon to be installed in the Metrology Department. The good progress made by DPS over the past several months has to be acknowledged. Notably they have selected a local consultant to assess and improve the existing Standard Data Manager Database and ICT infrastructure at DPS. Both the Accreditation and Standard Departments have been moving according to the plan on the training of staff. Implementing Agencies Beneficiaries The Department of Trade Policy of the Ministry of Economy, Trade and Energy, the General Directorate for Metrology the General Directorate of Standardization and the Directorate of Accreditation. Disbursement Ministry of Economy, Trade and Energy US$ 2 million (as of May 2010) Contact Points Status Under implementation Task Team Leader Donato De Rosa, Tel: 202-458-8522; Fax: 202-522-3687 Borrower Albania Project Officer Coordinator The Sulko, Immovable Property Registration Office of the Ministry of Justice Project at Tirana Office Evis Tel: 355-4-2280657; Fax: 355-4-2240590; (IPRO),Ministry of Interior, and Ministry of Public Works, Transport e-mail: firstname.lastname@example.org and Telecommunication Government Contact Person Pranvera Kastrati, Project Coordinator, Department of Trade Policy, Tel. 4 2364 673; e-mail: email@example.com Project Cost US$355 56 million 32 ON-GOING PROJECTS LAND ADMINISTRATION AND MANAGEMENT PROJECT Loan/Credit Amount Co-financing US$ 15 million IDA and US$ 19.96 million IBRD loan US$ 4.5 million SIDA; US$ 1.54 million Gov. of Japan, PHRD, Government Contribution: US$ 6.00 million Municipalities; US$ 6.00 million from Local Governments Signing Date Effective Date Closing Date 21 March 2007 23 July 2007 31 December 2011 Project Objectives The overall goal of the long-term Land Administration and Management Program is to facilitate the development of efficient land and property markets through enhancing tenure security and improving land administration and management services. The specific objective of the project is to improve the efficiency and effectiveness of land administration and urban management through enhancing tenure security, improving urban planning, land management and development control, supporting property valuation and taxation, and financing investments in urban infrastructure and services. Key indicators to measure project results include: i) Reducing the average time to register property transaction from 47 to 10 days; ii) Reducing the average time to issue building permit from 6 to 3 months; iii) Increasing annual property tax collection by participating municipalities by 10%, starting in the second year of the project; and iv) increased level of confidence in security of property rights as measured by customer surveys. q q Project Description These objectives would be achieved through the following components: Component A: Security of Tenure and Registration of Immovable Property Rights (US$19.42 million equivalent). The objective of component A is to improve service delivery, efficiency and transparency of IPRO and complete most of the first registration of immovable property rights. The component will cover the entire country but initially, will concentrate on urban and peri-urban areas. Component B: Urban Land Management (US$5.10 million equivalent). The objective of this component is to strengthen the capacity of municipalities in urban land management by: (1) establishing a market-responsive, participatory urban planning and development control system via technical assistance to revisions in urban planning law and development of regulatory plans for participating cities; and (2) mobilizing municipal revenues and correcting property market distortions through property valuation and taxation. Component C: Municipal Infrastructure (US$ 31.48 million equivalent). The objective of this component is to enable proactive urban growth management and enhance urban land market efficiency by prioritizing and implementing selected infrastructure investments and services, in accordance with strategic investment plans. The component will also support the implementation of the street and building address system. q Project Achievements The IDA credit and the IBRD loan became effective on July 23, 2007. Under Component A, over 10,000 first registration titles have been issued; the time to register a property has been reduced from 47 to less than 16 days; and an independent evaluation of IPRO services indicates that customer satisfaction has moved from very poor to good. In addition, progress has been made in preparing the draft regulations for IPRO, which 33 ON-GOING PROJECTS LAND ADMINISTRATION AND MANAGEMENT PROJECT now await approval at the Cabinet Level. Contractors are in place to survey and title over 320,000 parcels. Training and capacity building programs have been implemented and continue at IPRO to build staff skills and prepare them for the operational phase. Under Component B, a new Territorial Planning Law was enacted in April 2009 and the establishment of the National Territorial Planning Agency (NTPA) and its regulations is progressing. Four urban plans have been updated and completed and another four are under preparation. Under Component C, MOUs have been signed with all the participating municipalities and feasibility and design studies are under preparation and tendering. So far, only four municipalities have tendered and are at the award stage for their municipal investments. Phase I of the street addressing contract is nearly finalized and should proceed shortly. At the Governmentâ€™s request, Components B & C may be restructured with a portion of the financing reallocated to address the emergency flooding situation in Shkodra. q Implementing agencies The Immovable Project Registration Office (IPRO), MPWTT, through the Department of Urban Planning, Ministry of Interior, through the Department of Local Government Finance, the participating municipalities. q Benefeciaries Municipalities of Berat, Elbasan, Kamza, and Shkodra. Additional municipalities may be included depending on available financing. q Disbursement US$ 5.7 million (as of May 2010) Contact Points Task Team Leader Stephen Karam, ECSSD, Tel: 202-458-7327; Fax: 202-614-0902 Project Officer at Tirana Office Artan Guxho, ECSS5, Tel: 355-4-280 673; Fax: 355-4-240-590 Government Contact Person Rezar Turdiu, Director, Immovable Property Registration Office Ferdinand Pone, Deputy Minister of MOI Edmond Haxhinasto, Deputy Minister of MPWTT 34 ON-GOING PROJECTS TRANSPORT PROJECT Status Borrower Project Coordinator Under implementation Albania Ministry of Public Works, Transport and Telecommunications Project Cost Credit Amount Co-financing US$55.8 million US$ 27.05million (US$ 5.41 million IDA, US$ 21.64 million IBRD) US$ 15 million (OPEC), US$ 15.8 (Government of Albania) Date of signing Effective Closing date March 21, 2007 August 22, 2007 June 30, 2011 Project Objectives The Project Development Objective is to (i) reduce user costs on the Milot-Rreshen section of the Durres – Milot - Morine Corridor and improve access for the hinterland population, (ii) introduce innovation in road maintenance on a pilot basis, and (iii) contribute to the development of the institutional framework and implementation of road safety activities throughout Albania. Project Description The Project would achieve this objective through the following components: (i) the construction of 26 km section of the Milot - Rreshen road, contributing to a reduction in journey time for road users and improvement of access to one of the poorest parts of Albania; (ii) the introduction of innovation in road maintenance on a pilot basis through testing the output and performance-based road maintenance contracts (OPBRM) in two pilot regions of Kukes and Tirana; (iii) institutional development and support to improving road safety in Albania. Project Achievements The works are complete on Lots 1 and 2 of the Milot – Rreshen Road, with Lot 3 scheduled to be completed by May 31 2010. As of January 31, 2010, the project has disbursed ninety-two (92) percent of the IDA credit/ IBRD Loan. The OPBRM contracts (two in Tirana region and two in Kukes region) were awarded in October and November 2009, starting from the 2009/2010 winter season. The contracts will run for three years, and will involve winter maintenance, the initial rehabilitation of some deteriorated sections, and routine maintenance, covering some 300 km of the national road network, or approximately ten percent of the entire national road network. The Road Safety consultant has now finalized a number of Completion Reports – Road Accident Costs calculation, revision of the Albanian Rode Code, Driver Training and Education, Strengthening of the Road Safety Management capacities, Upgrade the Road Crash database and access to licensing/vehicle database, and review of the provisions of Emergency Services for the Ministry of Health. In addition, the consultant finalized the Road Safety Inspections in Tirana - Durres highway and Milot - Rreshen road. 35 ON-GOING PROJECTS TRANSPORT PROJECT Implementing Agencies Ministry of Public Works, Transport and Telecommunications/ General Roads Directorate Beneficiaries General Roads Directorate Disbursement US$ 25.02 million (as of May 2010) Contact Points Task Team Leader Richard Martin Humphreys, ECSSD, Tel: 202-473-8053, Fax: 202-416-0900 Project Officer at Tirana Office Artan Guxho, email: firstname.lastname@example.org Government Contact Person Andi Toma, GRD General Director, Tel: 00355-4-2 223 600 Ylli Gjoni PIT Director, Tel : 00355-4-2259 898 Fax : 00355-4-2259 897, e-mail: email@example.com 36 ON-GOING PROJECTS SECONDARY AND LOCAL ROADS PROJECT Status Borrower Under implementation Republic of Albania Project Cost Credit Amount Co-financing USD 40 million US$ 20 million (IDA) US$ 15 million (OPEC), US$ 5 (Government of Albania) Euro 8.4 million (IPA 2009) In addition, parallel financing is being discussed with other financing institutions July 2, 2008 September 29, 2008 December 31, 2012 Date of signing Effective Closing date Project Objectives The objective is to improve access to essential services and economic opportunities for the resident population in the hinterland of the improved roads, and to contribute to the strengthening of the institutional framework for planning, financing and management of secondary and local roads in Albania. ď ą Project Description The project proposes to achieve this objective through (i) the improvement of priority sections of the secondary and local road network across Albania; (ii) the introduction of the contracting private sector maintenance contracts for the local road network; (iii) the strengthening of the organizations responsible for managing the local road network; and (iv) the consolidation of institutional responsibilities for management and planning in the sector for the secondary roads. Two main components are envisioned under the project: (i) Rehabilitation and upgrade of priority sections of the secondary and local road network across Albania. (ii) Technical assistance aimed at strengthening the organizations responsible for managing the local road network and improving their capacity for planning, financing, management and maintenance of local roads. ď ą Project Achievements: The civil works are either complete, or substantially complete, on four of the road sections within the project, and proceeding well on the remaining seven. The works in the later road sections remain on schedule to be completed by the third quarter of 2010. As of January 2010, the project has disbursed forty two (42) percent of the IDA credit. The preparation of the Secondary and Local Roads Project also involved the design of a wider program to leverage in financing from other donors and interest has been significant. The program has generated considerable interest among other donors, and the total confirmed, committed, or provisionally agreed funding now amounts to US$ 430 million from all sources. This is estimated to be sufficient to reconstruct 1,700 km of regional and local roads With respect to local roads, the Implementing Agency, ADF, has been providing training to local commune officers on the importance of good maintenance, what is required to meet that standard, and the procurement and management of private contractors to undertake the maintenance activities. For the regional roads, the World Bank transport team reminded counterparts that there is a covenant in the Credit Agreement requiring a ď ą 37 ON-GOING PROJECTS SECONDARY AND LOCAL ROADS PROJECT Distribution of rural and secondary roads supported by rural & secondary roads project 38 ON-GOING PROJECTS SECONDARY AND LOCAL ROADS PROJECT Council of Minister’s Decision be passed to transfer formal responsibilities for the maintenance of the regional roads from the Regional Councils to the General Road Directorate (GRD). Implementing Agencies Albanian Development Fund, supported by the steering committee established under the Minister of Public Works, Transport and Telecommunications. Beneficiaries Actual Local Government Units, and General Roads Directorate for regional roads which will be transferred under its administration, after the functional classification Disbursement US$ 8.8 million (as of May 2010) Contact Points Task Team Leader Richard Martin Humphreys, ECSSD, Tel: 202-473-8053, Fax: 202-416-0900 Project Officer at Artan Guxho, email: firstname.lastname@example.org Government Contact Person Benet Beci, Executive Director, Albanian Development Fund, Tel/Fax: 355-4-2234885 39 ON-GOING PROJECTS DISASTER RISK MITIGATION AND ADAPTATION PROJECT Status Borrower Under implementation Republic of Albania Project Cost Credit Amount Co-financing USD 10.17 million US$ 6.16 million (IDA); US$ 3.0 million (IBRD) US$ 1.01 Government of Albania Date of signing Closing date July 2, 2008 February 28, 2012 Project Objectives The proposed objective is to strengthen institutional capacities to reduce Albania’s vulnerability to natural and manmade hazards, and to limit human economic and financial losses due to these disasters. This project will be the first one of a two-phase Adaptable Program Loan (APL) for Albania, programmed for three years. Project Description This project is the first operation under the South Eastern Europe Disaster Risk Mitigation and Adaptation Program. The project has four main components: 1. Disaster Risk Management and Preparedness will support capacity building for emergency response through the provision of equipment and strengthening disaster risk mitigation planning. 2. Strengthening Hydro-meteorological Services will support disaster risk reduction through the provision of accurate weather forecasts and services tailored to the needs of disaster risk managers in weathersensitive sectors. 3. Development of Building Codes will help reduce risks from earthquakes by improving building codes and mechanisms for introducing improved standards. 4. Catastrophe Insurance will provide access to private catastrophe risk insurance to households and small and medium enterprises, through the establishment of a new Catastrophe Risk Insurance Facility for South Eastern Europe. Albania will be the first country in South East Europe to commit to participating in this innovative facility. Project Achievements As the first shareholder, Albania will be the first country in South Eastern Europe to provide access to affordable insurance for home owners, farmers and Small and Medium Enterprises against the risk of flood, earthquake and weather-related disasters. Implementing Agencies Ministry of Interior Disbursements US$ 2 million (as of May 2010) Contact Points Task Team Leader Alison C. N. Cave, ECSSD, Tel: 202- 473-3952, Fax: 202-416-0900, email: email@example.com Project Officer at Tirana Office Drita Dade, email: firstname.lastname@example.org Government Contact Person 40 Alfred Olli, General Director, Civil Emergency, Ministry of Interior ON-GOING PROJECTS ENERGY COMMUNITY OF SOUTH EAST EUROPE APL5 - ALBANIA - DAM SAFETY Status Borrower Project Coordinator Under Implementation Albania KESH Project Cost Credit Amount Co-financing US$ 100.0 million US$ 35.3 million SECO Swiss, EBRD, KfW and KESH Signing Date Effective Date Closing Date July 02, 2008 December 16, 2008 December 31, 2013 Project Objectives The Energy Community of South East Europe (ECSEE) Program is a regional adjustable program lending program that supports up to eight countries (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Romania, Serbia and Montenegro, and Turkey) and Kosovo. The overall objective is the development of a functioning regional electricity market in South East Europe and its integration into the internal electricity market of the European Union, through the implementation of priority investments supporting electricity market and power system operations in electricity generation, transmission and distribution and technical assistance for institutional/systems development and project preparation and implementation. Project Description The development objectives of the ECSEE APL5 Dam Safety project are to: (i) contribute to safeguarding the major hydroelectric dams of Albania; and (ii) improve their operational efficiency and enhance the stability of power supply for the regional electricity market. The proposed project supports the development of the Energy Community in accordance with the objectives of the Energy Community APL. In addition, the project would assist Albania to maximize its benefits from existing hydropower by improving operational practices of existing facilities and enabling more effective participation in the regional electricity market. The project will also promote private sector investment in hydropower by collecting, organizing, and making available better data and studies on the country’s hydropower potential. 41 ON-GOING PROJECTS ENERGY COMMUNITY OF SOUTH EAST EUROPE APL5 - ALBANIA - DAM SAFETY Implementing Agencies METE and KESH Beneficiaries KESH Disbursement US$ 1.4 million (as of May 2010) Contact Points Task Team Leader Project Officer at Tirana Office Salvador A. Rivera, ECSSD; Tel: 202-473-1131; E-mail: email@example.com Government Contact Person 42 Gazmend Daci Tel: 355-4-2280-650/1 Fax: 355-4-2240590 E-mail: firstname.lastname@example.org Muharem Stojku, General Director, KESH Marialis Celo, Director PIU, KESH, Tel: 355-4-2262148; E-mail: email@example.com ON-GOING PROJECTS PARTIAL RISK GUARANTEE (PRG) FOR THE PRIVATIZATION OF THE POWER DISTRIBUTION SYSTEM OPERATOR (OSSH) IN ALBANIA Status Borrower Project Coordinator Under Implementation Albania Ministry of Finance Project Cost Credit Amount US$ 78.0 million US$ 78.0 million Signing Date Effective Date Closing Date May 06, 2009 May 2009 December 2016 Project Objectives The objective of the proposed PRG operation is to facilitate the privatization of OSSH in the context of a new Regulatory Framework. It will be achieved through enabling the Government of Albania (GOA) and CEZ of the Czech Republic to implement the Privatization Agreements for OSSH under the new regulatory framework Project Description: The proposed PRG (Partial Risk Guarantee or partial risk coverage) will backstop the GOA’S debt obligation to a commercial bank (the L/C Issuing Bank) that has, on behalf of GOA, paid under a Letter of Credit (L/C) that may be drawn by the privatized OSSH upon the occurrence of a Guaranteed Event to compensate OSSH for a resulting loss of revenue. The Guaranteed Events would be a change, or a repeal, by GOA or the Energy Regulatory Authority ERE of, or a non-compliance by ERE with the provisions of the pre-agreed regulatory framework relating to the: (i) Distribution System Operator tariff service formula; (ii) Retail Public Supply service tariff formula; and (iii) timely tariff approvals. Responsible Agency: CEZ, CEZ as - Czech Republic Contact Points Task Team Leader Project Officer at Tirana Office Government Contact Person Salvador A. Rivera, ECSSD Tel: 202-473-1131; E-mail: firstname.lastname@example.org Gazmend Daci Tel: 355-4-2280-650/1 Fax: 355-4-2240590 E-mail: email@example.com Ministry of Finance Ministry of Economy, Trade and Energy 43 TRUST FUNDS ADMINISTERED BY THE BANK GEF - SHKODRA LAKE INTEGRATED ECOSYSTEM MANAGEMENT Status Recipient Project Coordinator Under implementation Albania (jointly with Montenegro) Ministry of Environment, Forestry & Water Administration Estimated Total Project Cost Albania Project cost US$ 4.55 million (Albania and Montengro) US$ 2.93 million ($1.99 GEF) Effective Signing Date September 2008 September 2008 Project Objectives The Project Development Objective is to help establish and strengthen institutional mechanisms for transboundary cooperation through joint efforts for improving the sustainable management of Lake Shkodra. The global project development objective is to maintain and enhance the long-term value and environmental services of Lake Shkodra and its natural resources. Project Description The project is based upon the joint Strategic Action Plan (SAP) for Lake Shkoder, which represents a longterm program of ongoing and proposed activities financed by the two governments and by external donors. Some of the activities to be financed by the project will be implemented jointly by the two countries through a bilateral Lake Management Committee (BLMC) and associated Working Groups. Other activities will be carried out in each country, having lake-wide benefits. Component 1: Capacity Building for Improved Understanding and Joint Management of Lake Shkodra: establish and strengthen the institutional structures for cooperative management of Lake Shkoder, including operationalization of the SLC, the SLC Working Groups, and the SLC Secretariat, and support the SLC Working Groups in the implementation of their work programs. Component 2: Promoting Sustainable Use of Lake Shkodra and support environmentally and socially sustainable approaches to tourism and fisheries management, including the improvement of nature and culture based facilities, and development of a lake-wide stock assessment and fishery management plan. Component 3: Catalyzing Pollution Reduction Investments 1. Develop a small-scale waste-water treatment system at Vranjina; 2. Support in the preparation of an environmental remediation plan for the KAP solid waste dump site; 3. Restoration of the lakeshore ecosystem. Project Achievements A Joint Lake Commission has been established and several tranboundary working groups are in place to help prioritize actions across the two countries. Procurement is underway for studies for remediation at the KAP site, a hydrologic model of the lake, and investments in each country. 44 TRUST FUNDS ADMINISTERED BY THE BANK GEF - SHKODRA LAKE INTEGRATED ECOSYSTEM MANAGEMENT Implementing Agencies Ministry of Environment, Forestry & Water Administration Beneficiaries Ministry of Environment, Forestry & Water Administration; local government units and communities. Disbursement US$ 0.2 million (as of May 2010) Contact Points Task Team Leader Karin Sheparson, ECSSD, Tel: 202 458 7180, Fax: 202-458-1398 e-mail: firstname.lastname@example.org Project Officer at Tirana Office Drita Dade, e-mail: email@example.com Government Contact Person Sajmir Hoxha, Director of Nature Conservation, Ministry of Environment, Forestry & Water Administration, Tel 355-4-270-624 45 TRUST FUNDS ADMINISTERED BY THE BANK CAPACITY BUILDING SUPPORT TO IMPLEMENT THE INTEGRATED PLANNING SYSTEM (MULTIDONOR TRUST FUND) Status Borrower Project Coordinator Under implementation Albania Ministry of Finance and DSDC (Department of Strategy and Donor Coordination) Grant Amount 4.5 million EURO Signing Date Closing Date 17 January 2008 30 September 2010 Project Objectives The project’s development objective is to ensure that the Government of Albania’s core policy and financial processes function in a coherent, efficient and integrated manner. This will be accomplished by building sufficient and sustainable capacity in line ministries to participate in IPS fully. Project Description The Integrated Planning System (IPS) is a broad planning and monitoring framework which aims at ensuring that the core policy and financial processes developed by the GoA function in an integrated manner. These core processes are: • The National Strategy for Development and Integration (NSDI), which establishes the GoA’s medium to longer term goals and strategies for all sectors. • The Medium-Term Budget Program (MTBP), which requires each ministry to develop a 3-year plan to deliver program outputs to achieve its policy objectives and goals within the ministry’s expenditure ceiling, as set out in the government’s fiscal plan. The IPS aims at providing a set of operating principles and supporting structures to ensure that government planning and monitoring activities take place in as efficient and harmonized a way as possible. In sum, IPS is neither a new nor a separate planning system. Nor is it an attempt to amalgamate existing processes within a single process. Given the overriding importance of the European integration agenda, the IPS is seen as a significant contributor to enhancing the government’s ability to deliver this agenda. The project will help support effective implementation of the IPS principles across the whole government, as set out in the IPS Implementation Plan produced by the Department for Strategy and Donor Coordination (DSDC, Council of Ministers) in April 2006. The focus of activities will be as follows: • 2008: consolidation of IPS, to ensure that processes are understood and institutionalized across government, with targeted technical assistance for specific ministry products, • 2009: full implementation in all ministries, with emphasis placed on securing technical assistance, organizational development and improving ministry planning and budgeting capacity, 46 TRUST FUNDS ADMINISTERED BY THE BANK CAPACITY BUILDING SUPPORT TO IMPLEMENT THE INTEGRATED PLANNING SYSTEM (MULTIDONOR TRUST FUND) • 2010: quality of implementation, with emphasis placed on further strengthening accountability mechanisms and increasing ministry service delivery capacity. The project will be implemented over three years and will have eight inter-related components: Component 1: SAA Implementation and EU assistance programming and reporting capacities strengthened - This component seeks to assess and enhance administrative capacities of the central public administration to implement the SAA. Component 2: Implement Medium-Term Budget Program - This component seeks to strengthen the role of the General Directorate of Budget as the key actor in managing the MTBP process in all line ministries, with the goal of enabling the line ministries to support producing an MTBP that connects to NSDI /SAA and all other sector and cross-cutting strategies. Component 3: Public Investment Management - This component seeks to establish and then to integrate the Public Investment Management processes into the MTBP cycle. Component 4: Macro-economic Forecasting and Debt Management - This sub-component seeks to reinforce the capacity of government to use macro-economic and fiscal forecasting in the MTBP process. It will focus on building capacity in the Macroeconomic Department and determining the forecasting methodology/model that is most appropriate for Albania. While work will continue with the Macroeconomic Department, more effort will be made to work with ministries which provide key data used in the macroeconomic analyses and macroeconomic forecast. Component 5: IPS coordination, oversight, awareness, communication - This component comprises two projects: provision of policy advice to the Department of Strategy and Donor Coordination (DSDC) and implementation of the IPS and IPS-related communications materials to distribute across the public administration; and to work with DoPA and TIPA to incorporate IPS into existing training courses wherever applicable. Component 6: NSDI and supporting sector/cross cutting strategies - This component seeks to implement NSDI by building policy analysis capacity to ensure that the goals/objectives of NSDI are effectively translated into concrete policies and programs at ministry level. The component will ensure that cross-government standards/procedures are established to guide this work. Component 7: Aid Coordination - This component seeks to establish the external assistance regulations and procedures,, preparation of the annual report on external assistance performance, and ministry training/support. Component 8: Monitoring and Reporting - This component seeks to design a monitoring and reporting system that meets GoA and external needs. The system should eventually meet all EU integration requirements and help the Ministries to deliver their periodical reports in due time. Project Achievements Two main activities are foreseen under the first component and consulting companies have already started to work for the “Strengthening management capacities in Albanian public administration-capacity development and training support” and “Strengthening Management Capacities in Albanian Public Administration- Reinforce and extended HRMIS.” The expected deliverables under this component are (a) an assessment report on training capacities and training needs in the Ministries and other institutions in the framework of the NSDI 47 TRUST FUNDS ADMINISTERED BY THE BANK CAPACITY BUILDING SUPPORT TO IMPLEMENT THE INTEGRATED PLANNING SYSTEM (MULTIDONOR TRUST FUND) implementation and SAA requirements and obligations; (b) a new medium-term Training Strategy for the period 2010-2012 for TIPA: (c) a Business and Action Plan for the expansion of the HRMIS across the entire central government. (d) draft legislation for countrywide operations of the HRMIS and payroll module, defining roles and responsibilities of stakeholders, protocols of cooperation, administration powers on the database and levels of use for each institution will also be produced. Crown Agents has been providing consulting services to the General Debt Department at the Ministry of Finance. Their contract ended in August 2009 and the team has successfully delivered: (i) a new debt management strategy, (ii) contribution to developing the Debt General Directorate, and (iii) a human resources plan including staffing needs, training requirements, and staff recruitment In order to improve the Medium-Term Budget Planning, REPIM was hired to support the MoF and line ministries and the expected deliverables are (i) Training Module for Program Management Teams (ii) internal rules and procedures developed for each line ministry (iii) a fully fledged training program for the staff members of GBD and LM, and (iv) a Guide Book concerning all the above items (methodologies and clear examples). DSDC is receiving substantial support from a group of short-term and long-term consultants that were hired in October 2008 and have worked at the Department. With their support, the DSDC has organized various IPS-related activities. A very positive development is the DSDC website (www.dsdc.gov.al) where updated information on IPS and all the activities and events can be found. One of the key objectives of the TF is to design a comprehensive monitoring and reporting system that meets GoA needs often described as Albania Financial Management Information System (AFMIS). The system would include the IPS Information System (IPSIS) and the External Assistance Management Information System (EAMIS) with integrated links not only to NSDI goals, but also to actual implementation through budget and financial information. The core problem until now has been that the core of the system would be the modernized Treasury. Implementing Agencies Beneficiaries Disbursements Ministry of Finance and DSDC Ministry of Finance, DSDC, Line Ministries, Department of Public Administration US$ 1,1 million (as of May 2010) Contact Points Task Team Leader Project Officer at Tirana Office Roland Clarke, e-mail: firstname.lastname@example.org Evis Sulko, e-mail: email@example.com Government Contact Person Anila Tanku, CFCU, Ministry of Finance, e-mail: firstname.lastname@example.org 48 TRUST FUNDS ADMINISTERED BY THE BANK YOUTH EMPOWERMENT THRO UGH COMMUNITY DEVELOPMENT IN ALBANIA (JSDF grant) Status Under implementation Project Coordinator Grant Amount Tirana Municipality US$ 1,155,700 Project Objectives The objective of the Project is to enhance young men and women’s access to opportunities in education, employment, civic participation and community development through increasing: (i) the capacity of targeted groups in a variety of skills that support transition from secondary school into the labor force; (ii) access of targeted groups to livelihood and employment opportunities through grants that support youth entrepreneurial activities; and (iii) youth inclusion of targeted groups in civic affairs through community development grants. Project Description The Project consists of the following components: Part A: Capacity Building for Youth Activities to support capacity building of youth NGOs and local government agencies in developing and refining their policies and programs that assist young men and women to acquire the life and livelihood skills needed to successfully enter the labor market. Activities include: 1. Training for youth groups on leadership skills and other skills related to civic affairs, such as problem solving, communication, conflict resolution, addressing and managing risks related to health and criminalization. 2. Vocational training opportunities for youth through classroom-based vocational training and apprenticeships in areas such as computer and foreign language skills, electrical and carpentry skills; providing scholarships for vocational certificate courses. 3. Internships and apprenticeship programs with the private sector and sponsoring of volunteer programs for youth with NGOs, local governments, civic organizations and schools. Part B: Youth Livelihood Grants Micro-grants provided to young people and youth groups to finance selected livelihood activities that kindle self-help and entrepreneurial spirit. This includes the provision of Youth Livelihood Grants to finance startup capital of livelihood activities such as food vending businesses and cafes, internet kiosks, tailoring shops, fashion boutiques, auto-repair shops, artisanal work and tourisms-related enterprises. 49 TRUST FUNDS ADMINISTERED BY THE BANK YOUTH EMPOWERMENT THROOUGH COMMUNITY DEVELOPMENT IN ALBANIA (JSDF grant) Part C: Community Development Grants Activities to build the capacity of youth to identify community and neighborhood development priorities and to promote youth inclusion in community decision making, leadership and enterprise, including: 1. Facilitating a participatory planning process at the community level whereby youth groups will identify, prioritize and articulate local needs and generate concrete proposals for community development grants, with strong participation by local government officials and other key stakeholders in the community. 2. Provision of community development grants to finance activities identified by the youth groups that will improve their access to better learning, recreational or livelihood opportunities, such as provision of indoor and outdoor sports equipment, computers and internet access, equipment for cultural and arts and crafts activities (musical instruments, sewing and weaving facilities and equipment), libraries, upgrading of green spaces and day care centers. Implementing Agencies National Albanian Center for Social Studies (NACSS) Project Achievements The Implementation agency is contracted and detailed implementation arrangements such as criteria for evaluation and competitive selection of grants are being finalized. It is expected that the grant application and selection process will begin later in 2010. Beneficiaries The direct beneficiaries of this project are the young people from marginalized communities of Tirana and Durres Municipality. Next stage The execution of the JSDF will be launched during June 2010. Team Leader Project Officer at Tirana Office Government Contact Person Implementing Agency contact person 50 Keith McLean Senior Social Development Economist Sustainable Development Department Tel: (202) 473-5656, Fax (202) 477-3285; e-mail: email@example.com Gentjana Sula, Operations Officer; Tel: (355)4 2280 650/1, Fax: (355)4 2240590 e-mail: firstname.lastname@example.org Vasilika Vjero, Director of Policy Development, e-mail: email@example.com Mihal Cico, PIU Director, e-mail: firstname.lastname@example.org, Municipality of Tirana Tel: (355)4 2253 053 Mirela Muca, NCSS Executive Director, JSDF project coordinator; Tel: (355) 4 2261646; e-mail: email@example.com TRUST FUNDS ADMINISTERED BY THE BANK EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (eiti) Status Project Coordinator Implementation Ministry of Economy, Trade and Energy (METE) Grant Amount US$ 275.000 Project Objectives Improve governance of the high-revenue-generating mineral sector in Albania (i.e. mining and petroleum), via availability of independently reconciled payment data, better transparency and accountability. Project Description The Extractive Industries Transparency Initiative (EITI) is a global standard to improve mineral sector governance via increased transparency and accountability. It is currently implemented in around 35 resource-rich countries in Eastern Europe and Central Asia, Africa, the Middle East and Asia, and is unique insofar it works under a tripartite (i.e. Government, industry and civil society) working group. While this working group decides which shape EITI is taking in an individual country (for example how information is disseminated, who will receive training and capacity building, what data will be collected and how it will be reported), it is standard that all mineral revenue related data is collected, compared, assessed and reconciled by an independent auditor. The assessment is then the basis for the EITI Report, which will be published and widely disseminated. Besides these technical aspects, the regular meetings of the working group also ensure that the developments of a hitherto secretive sector are publicly discussed, and that information on crucial topics (like the share of revenues that flows back to the mining regions) is shared with affected and interested parties. Also, it can help in promoting foreign investment into the mineral industry, as implementation of EITI also signals reliability on the part of the Government, and provides the investors with a more stable investment climate, since conflicts are less likely to occur, based on better availability of information. Implementing Agencies Ministry of Economy, Trade and Energy, EITI Secretariat Expected outcomes/results - improved transparency and accountability through regular publication and independent verification of all payments made between mining and petroleum operators and the relevant government units - the message to international investors that the country actively engages in mineral sector governance and is not run by doubtful or informal practices - better communication with the public and civil society on a topic which is of great public interest - the fact that a number of crucial issues (mining, petroleum, revenues and possibly revenue sharing, mineral sector development, impact on mines on local communities etc.) are put into the public domain, which have not been there before 51 TRUST FUNDS ADMINISTERED BY THE BANK EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (eiti) Beneficiaries Government, especially tax administration and PFM institutions, civil society, communities in the mining regions, parliamentary representatives of mining regions, mining and petroleum investors Next stage Collection and reconciliation of complete revenues from mining and petroleum activities Contact Points Team Leader Andre Ufer, COCPO, Tel: 202-473-7335; Fax: 202-522-0396 Government Contact Person Prof. Sokol Mati, Director for Industrial Policy, National EITI Coordinator, Ministry of Economy, Trade and Energy, Tel: 355-4-2222245/74135; e-mail: firstname.lastname@example.org 52 TRUST FUNDS ADMINISTERED BY THE BANK STRENGTHENING AARHUS CONVENTION IMPLEMENTATION IN ALBANIA (IDF grant) Status Recipient Project Coordinator Under implementation Albania Ministry of Environment, Forestry & Water Administration Grant amount Effective Date Closing Date US$ 370,000 December 2009 December 2012 Project Objectives This grant aims at strengthening the capacity of the Albanian government and civil society in the implementation of the Aarhus Convention “On Access to Information, Public Participation in Decision Making and Access to Justice in Environmental Matters” (AaC). The development objectives are to: (i) build and/or improve the capacity of the Aarhus Center, regional environmental agencies, civil society, and other stakeholders to understand the AaC requirements and to implement an updated local AaC Strategy and Action Plan; (ii) enhance the interaction between the civil society and public authorities with respect to public participation and access to justice in government decision-making regarding national, and trans-boundary environmental matters, fostering improved compliance with the relevant provisions of the Convention; and (iii) improve the civil society’s watchdog role through improved monitoring of guidelines and requirements set forth in the Convention. Project Description The project has the following components and activities: Component 1: Strengthening institutional capacity and legal framework. An assessment of the current legal framework and corresponding institutional capacity for implementation and proposed changes will be carried out in order to identify and improve compliance with the Aarhus Convention in terms of legislation and implementation. Guidelines and procedures will be suggested on the provision of environmental information, public involvement and consultations, and submission of claims before administrative and judicial courts. The action plan and strategy will be updated for the next few years. An online network of Regional Environmental Agencies in 12 prefectures will be established aiming at improving the internal and external communications and information-sharing among regional agencies, the Ministry of Environment and the public. Also the online database will offer free public access to the process of issuing the environmental permits. 53 TRUST FUNDS ADMINISTERED BY THE BANK STRENGTHENING AARHUS CONVENTION IMPLEMENTATION IN ALBANIA (IDF grant) Component 2: Dissemination of knowledge, training, and information This component aims at increasing capacities of government structures, elected bodies, and the civil society by improving their knowledge and interaction, through relevant training, awareness campaign, upgrade and update of the existing website. Component 3: Increasing transparency and accountability This component aims at strengthening the watchdog role of the civil society in a constructive manner vis-à-vis environment-related Government’s planning processes through a systematic monitoring of guidelines and requirements set forth in the Convention as well as through public forums where findings will be shared and disseminated towards wider audiences. Project Achievements The project became effective in December 2009 and is in the first months of implementation. Preparations for first-year procurement activities are underway. Implementing Agencies Ministry of Environment, Forestry & Water Administration, Ministry of Finance Beneficiaries Ministry of Environment, Forestry & Water Administration; Aarhus Center Regional Environmental Agencies, civil society organizations. Contact Points Task Team Leader Ana Gjokutaj, World Bank Office in Tirana, e-mail: email@example.com Government Contact Persons Klodian Aliu, Head of Environmental Impact Assessment Department, e-mail: firstname.lastname@example.org, Edlira Dersha, Aarhus Center, Ministry of Environment, Forestry & Water Administration, e-mail: email@example.com, Anila Tanku, Head of CFCU, Ministry of Finance, e-mail: firstname.lastname@example.org 54 reports and publications STUDIES (NON-LENDING SERVICES) In addition to providing finance for reducing poverty and fostering development of Albania through investment and other projects, the World Bank plays an important role in providing policy advice and technical assistance to the Government. This advice relies upon the Bank’s long-term experience in working on economies of countries in transition and in economies that have successfully carried out structural reforms in and outside the region. The following analytical and policy studies are some of the works that the World Bank team has produced for Albania over the past few years: Albania Health Sector Note. This report explores the situation of the Health Care System of Albania. It provides a historical overview of the heritage of the pre-transition health care features and of the negative impact that the civil unrest and the Kosovo crisis had on it during ‘90s. The report examines the health outcome and challenges in the context of the new demographic and socio-economic changes and provides analysis of the use of resources in connection with the relevance of health care delivery and distribution among regions. The report also examines the quality of the health care and the financing aspect of this system. The report concludes that the main challenge for Albania’s health sector is to consolidate the achievements in health outcomes to date, while building the capacity to effectively address the growing incidence of non-communicable diseases and affording low income groups better protection from impoverishing health expenditures. (March 2006) Status of Land Reform and Real Property Markets in Albania. In 1991, the Government of Albania initiated a reform of land and immovable property relations by reviving the principles of civil law, authorizing market transactions and initiating transfer of agricultural, housing and commercial properties into the ownership of citizens and juridical persons. The Government adopted other reforms intended to create modern systems of environmental protection, land use and management of state-owned lands. Despite this progress, the framework of legal principles and supporting juridical, administrative and institutional systems is not yet complete and the system does not yet operate as efficiently or transparently as required. This “stocktaking” report looks at the main elements of land and property reform, describing the current status of reform and factors that are obstacles to its completion. The report looks at still-open policy issues that must be resolved and considers aspects of environmental protection, land use control and management. The report concludes with recommendations on priority actions in the next stages of the reform. (January 2006) Labor Market Assessment. Employment is a pressing concern in Albania. Much of the expressed concern about the Labor market situation focuses on the effects of the increasing “informalization” of employment and the large migration flows. Both informalization and migration are consequences of the fundamental problem that employment is not growing overall and especially not in the formal sector. The labor force is still growing and could be an important source of future growth. But if Albania cannot improve its job creation record, this potential “demographic gift” could further aggravate the unemployment problem. This report summarizes the existing knowledge in these areas drawing on recent World Bank reports, but also provides a new analysis and recommendations focusing on the labor market and labor market policies. The report provides a quantitative and up-to-date analysis of the labor market, based on the Living Standards Measurement Surveys/Albania Panel Surveys carried out annually between 2002 and 2004. Through these surveys recent labor market outcomes can be described in detail, not only with cross-sectional “snapshots” but also with dynamic analysis that allows workers to be followed as they move in and out of the labor market and between different jobs. (May 2006) 55 reports and publications STUDIES (NON-LENDING SERVICES) Report on the observance of standards and codes (ROSC): accounting and auditing. This assessment is part of a joint initiative of the World Bank and the International Monetary Fund. It focuses on the strengths and weaknesses of the accounting and auditing environment that influence the quality of corporate financial reporting and involves a review of both mandatory requirements and actual practice. The main findings of the report include: (i) the legal framework on financial reporting in Albania is characterized by some lack of cohesiveness. (ii) There is very limited availability of published financial information in Albania. (iii) A new accounting law aims to address many of the shortcomings of the previous accounting and financial reporting requirements. (iv) The accounting standard-setter, the National Accounting Council (NAC) needs substantially more technical and financial resources in order to fulfill its mandate. (v) There is an overwhelming need for training across all areas of the economy with respect to accounting, auditing and financial reporting. (vi) The monitoring and enforcement mechanisms are ineffective to induce compliance with accounting and auditing standards. The recommendations of the report aim at collectively improving the financial reporting environment in Albania. (June 2006) Trends in Poverty and Inequality in Albania. Poverty has declined significantly, as a result of the sustained recent growth. The absolute poverty headcount rate declined from 25 percent in 2002 to 19 percent in 2005, or 6.8 percentage points, lifting 221,000 people out of poverty. Much of the growth has taken place in and around urban areas, drawing internal migration from the countryside. However, the distribution of benefits was uneven. Real per capita consumption growth in urban areas was twice as high as that in rural areas. As a result the gap in poverty rates between urban and rural areas widened in absolute and relative terms. The evidence shows that low productivity of small family farms partially explains the slowdown in poverty reduction in rural areas and without the large inflows of remittances, the living conditions would almost certainly be worse. (December 2006) PEIR. This report finds that Albania has a substantial opportunity of (a) improving the productivity of its public spending, providing both a complement to raise the productivity of private capital and as also an independent source of economic growth; and (b) deepening the impact of this growth on poverty by improving the equity of public service delivery. Emerging concerns center on the need to sustain the momentum of growth and poverty reduction. The productivity gains from resource reallocation typical of the first phase of transition are slowing. Albania will need to create a better environment for private investment, further accelerate improvements in human capital, and stimulate new sources of productivity growth, including in the public sector. Public expenditure policy is at the heart of this challenge to sustain growth. This report finds that Albania’s level of spending at 29 percent of GDP is broadly appropriate but that resource mobilization is distorted and spending remains inefficient. The report stresses that improving the efficiency and equity of public spending in Albania will not be possible without accelerating the institutional reforms aimed at restoring discipline and credibility in expenditure management. These reforms include rationalizing the pay system for public servants and strengthening the civil service management reforms to improve public sector performance and equity. The Albania Public Expenditure and Institutional Review (PEIR) contributes to this debate by examining the role of expenditure policy in enhancing future growth prospects while improving service delivery outcomes. Composed of two volumes, this report assesses outcomes from public expenditures in Albania over the past 5-10 years; discusses the current and future challenges facing the government in improving the efficiency of public spending and ensuring the sustainability of the fiscal stance; and proposes an agenda for a public expenditure strategy to address them, at both the aggregate and sector levels. (December 2006) Social Insurance Review. This review focuses largely on pensions. Two alternatives are elaborated: (i) The problems of the pension system can be addressed by reforming the pension system so that benefits will not decline sharply in the future, contribution rates will be lowered somewhat, disincentives to contribution will be removed, and rural workers will be treated identically the same as urban workers should they choose to continue contributing to the pension system. However, correcting these problems will not be sufficient to bring the majority of the labor force which is currently working in the informal sector into the formal sector. (ii) This alternative requires eliminating the contributory system entirely. Under this system, rural and urban workers would be treated the same, everyone would be covered, and 56 reports and publications some level of poverty alleviation would be achieved for those unable to work due to age or infirmity. However, benefits would decline sharply, leaving the public pension system unable to provide people with a vehicle to smooth their consumption between working and non-working periods of their life. These are distinctly different visions of the future of the Albanian pension system. Neither is right or wrong; both have advantages and disadvantages and countries around the world have made different choices among these options. The paper lays out the implications of these choices, leaving it to Albanian policymakers to decide which of these paths best fits the future Albania. (December 2006) Albania - Urban Sector Review. This study is prepared as a background analysis to inform the ongoing dialogue and operational program of the World Bank with the Government of Albania on issues of policy and strategy concerning urban development and local government. This report focuses on trends and issues that have come to the fore with rapid urbanization and with the recent decentralization of major responsibilities to local governments. (January 2007) Albania - Urban Growth, Migration and Poverty Assessment. This report claims that in the three years between 2002 and 2005 alone, almost 235,000 people have moved out of poverty in Albania. Strong economic growth and large inflow of remittances are at the center of this impressive achievement. However, low productivity of predominantly small family farms has put a drag on rural growth prospects. Moreover, the Ndihma Ekonomike (NE) Program, the means-tested income support program, is small in scale, and has a low coverage and, therefore, it has had only a modest impact on poverty reduction. As a result of these developments, the poor are mostly rural residents, low-skilled (measured as years of schooling completed) individuals and large families. The main conclusion of this report is that as Albania looks ahead it faces the challenges of consolidating and sustaining these improvements in living conditions and narrow the widening rural and urban differences. To tackle these challenges, Albania needs to maintain the high growth path, raise rural productivity and improve the targeting performance of its NE program. (December 2007) Albania - Strategic Policies for a more competitive agriculture sector. Recent trends in Albania suggest that it has the potential for a modern and competitive agricultural sector, provided there is sufficient private investment and the right policy environment. This chapter looks at the role of agriculture in the economy and the current status of the sector, and outlines the implications of modernization and transformation of agriculture for rural areas. It also identifies trends and sources of growth for agriculture, and concludes by presenting the key policy challenges for the sector. The rest of this report analyzes the challenges facing the agricultural sector and recommends policies for addressing them. These challenges are analyzed in greater detail, and more specific policy recommendations are given in the following chapters, which focus on strengthening the supply chains, improving food safety, and ensuring that reforms are carried out in compliance with EU legislation. The final chapter looks at how well public expenditures in agriculture are managed in order to achieve these policy objectives. (October 2007) Albania - Access to finance for enterprise sector. This report was prepared in close collaboration with the Bank of Albania. It focuses on trade, services, and agriculture, and on problems related to the operation of the Immovable Property Registry System (IPRS) and other institutions and the formalization of property rights and inscription of mortgages. This study believes that a reform with the most optimal impact on sustainable credit growth will (i) focus on improving the quality, breadth, and depth of financial intermediation, (ii) promote growth and development of credit unions and microfinance institutions, and (iii) facilitate the development of new instruments. The authorities will also focus on implementing reforms to become compliant with Financial Action Task Force (FATF) recommendation. (June 2007) 57 reports and publications STUDIES (NON-LENDING SERVICES) Albania - Local finance policy note: programmatic public expenditure and institutional review. Albania has undertaken major reforms in its system of local government finance since 2000. What had been a system in which local functions were ambiguous and financing was largely provided through tightly controlled earmarked grants is now one in which functions are relatively clear and local governments have more autonomy over the allocation of funds. A new system of competitive grants for infrastructure investment has been introduced. Parliament has enacted a new law on local borrowing. Within this framework, however, several controversies remain which are addressed in this policy note. In the long term Albania must also grapple with certain organizational issues. One is the role of regional governments, which now lack any major clearly defined function. While the Government’s decentralization strategy proposes a range of possible functions for regional governments, most of these roles could be carried out through other means. The other organizational issue is the consolidation of small communes. The Government’s decentralization strategy proposes the eventual consolidation of small local governments into larger units. International experience, however, suggests that the efficiency gains of consolidation are limited and may not be sufficient to justify the political costs of doing so. Efforts to consolidate local governments should consider alternative solutions such as inter-municipal agreements and joint service companies before proceeding. (September 2008) Albania - Mining sector reform, restructuring, and future prospects - This report provides a concise overview of the current situation of the mining sector in Albania. It evaluates the major events that took place in the last two decades (especially regarding the privatization process), and examines its governance, overarching policies and its legal frameworks that have guided the sector development. The main findings in this regard are related to: improving sector governance; improving regulatory effectiveness; strengthening the technical capacities; addressing environmental and social legacy, and community benefit sharing issues; and sustaining sector growth through sector promotion. (June 2009) Albania - Building competitiveness (Investment Climate Assessment (ICA) - This report discusses how Albania can improve its long term competitiveness and growth by facilitating firms’ ability to employ technology and skills and by closing the gap between formal regulations and actual enforcement. The second chapter sets the stage by presenting the macroeconomic setting, as well as key structural features of the Albanian economy. The third chapter provides an overview of investment climate constraints on firm performance. The crucial pillars of the investment climate that affect firm performance that is to say: (i) access to and adoption of knowledge by Albanian firms, and (ii) the gap between formal and informal regulation are treated in chapters four and five respectively. Chapter six concludes and summarizes policy recommendations. (October 2010). Climate vulnerability assessments: an assessment of climate change vulnerability, and adaptation in Albania’s energy sector - This overview showcases a pilot vulnerability, risk, and adaptation assessment undertaken for Albania’s energy sector to raise awareness and initiate dialogue on energy sector adaptation. This pilot assessment demonstrates an approach that can be used to help countries and energy sector stakeholders develop policies and projects that are robust in the face of climatic uncertainties, and assist them in managing existing energy concerns as the climate changes. It identifies key direct risks to energy supply and demand and options for adaptation to establish where to focus subsequent in-depth analyses. It also identifies additional research needed to better understand the implications of extreme climatic events for the energy sector as well as potential indirect impacts, such as possible adaptation actions in the agriculture sector that may affect energy supply. (November 2009) 58 CIVIL SOCIETY FUND The World Bank Office in Tirana has been allocating grants to civil society organizations in the context of the Civil Society Fund (CSF), amounting to US$ 376.000 for the last ten years. The CSF was created to promote dialogue and dissemination of information on development, and to enhance partnerships with the civil society. The scope of the CSF is empowerment of the citizens’ engagement in order to have voice in development processes. The CSF in Albania is focused on civic engagement, increased transparency and social accountability. An External Advisory Board comprising representatives of Donor and international organizations focused on the Civil Society and an Internal Grants Selection Committee composed of World Bank Tirana Office staff reviews and selects the best proposals. Geographical distribution of the projects covers the entire country from Lezha, Durres, Fier, Vlora, to Prespa, Korça. The following NGOs and projects have been the winners in the last ten fiscal years: FY2010 ($45.000) 1. Involvement of Youngsters in the National Network of Community Services for Offenders, Aksion Plus –, Tirana, Durres, Fier and Vlora; 2. Empower women through participation and monitoring of local government policies and programs, M.I.K.E., Tirana; 3. Roma community and the reality, Shoqata “Romet e Veriut”, Lezha; 4. Increasing social cohesion through inclusive agendas, Instituti për Demokraci dhe Ndërmjetësim, Tirana; 5. Respectable and insured work for working women, Instituti per Rinovimin e Politikave Sociale & Shoqata per Integrimin e Grave Tekstiliste, Tirana; 6. Participatory budgeting and inclusion of marginalized groups in the budget process in Fier municipality, Dyert e se Ardhmes, Fier; 7. Informing women on the their rights and promoting information and literature in the women’s prison, Qendra Europiane, Tirana; 8. Increasing awareness of Macedonian community about their rights and creating a network of Macedonian community organizations, Shoqata “Ndergjegjesim per Progres”, Prespa, Korça; 9. Empowering youngsters through participation in the local government, Qendra “Femijet Sot”, Tirana. FY2009 ($45.000) 1. Social Cinema, Eko-lëvizja, Tirana, Vore, Berzhite, Ndroq; 2. Improved access to information and human rights for the blind, Association of Blind Persons of Albania, Tirana, Durrës; 3. Civic Engagement and Transparency Center, Coordination Center of Local NGOs, Permet; 4. Environment is everyone’s responsibility, Lëvizja Mjaft!, Shkodër, Elbasan, Gjirokastër, Korce; 5. Citizen engagement in favor of public services, Albanian Association for Environmental Education, Shkoder; 6. Supporting Roma community towards improving their living conditions and their integration through the social accountability and civic engagement of the marginalized groups, For the Future of Roma – Mother’s Heart, Tirana; 7. Improvement of the public communication strategies in the municipalities of Korca and Berat, Agenda Institute, Korce and Berat; 59 CIVIL SOCIETY FUND 8. Rural women’s access to information on the rights and benefits from the social insurance scheme in Albania, Women and Progress, all over the country. FY2008 ($35.000) 1. Awareness-raising campaign on the fire situation in forests and pastures ECAT Tirana 2. The Roma youth and challenges in terms of social inclusion: Series of Open-ended forum, Center for a Roma Contemporary Vision, 3. Informing public on domestic legislation over environment and over the Aarhust Convention as well as increasing public participation in local decision-making, Perrenjas, Women’s Forum Elbasan 4. The youth have a right to be informed, The society for Protection, Information, Care and Education; 5. To keep our beaches clean, Women for tourism development, Vlora; 6. Establishing partnership among local actors and drafting an environmental plan for Voskopoja Commune, Cross-border Nature Association; 7. The space that environmental issues occupy in the media, Albanian Media Institute; 8. Increasing the role of youth in establishing cultural environment in the public spaces, Independent Forum of Women, Burrel Branch, Mat. FY2007 ($35.000) 1. Promotion of youth entrepreneurship projects and capacity building to face the transition from University to labor market, Students in Free Enterprise in Albania (SIFE Albania), Tirana. 2. Establishing a Youth Forum at Kucova Municipality to increase participation and access in regional decision-making, Shoqata e Bashkive, Kucovë. 3. Integrating young disabled persons, Qendra Këshillimore për Njerëzit me Aftësi të Kufizuara, Shkodër. 4. Engaging young people in monitoring of social services in Vau Dejës municipality, Shoqata Misionarët e të drejtave sociale, Vau i Dejës. 5. Encouraging greater youth participation and discussions about their daily concerns through a network of radio programs all over the country, Shoqata e Pavarur e Medias Lokale and Shoqata e Gazetarëve Profesionistë Jonianë, Saranda. 6. Involvement of the youngsters of Farka commune in the process of preparation, implementation and monitoring of the local government budget, “ARG” Centre, Tirana. 7. Youth Civic Engagement through direct, concrete Civic Actions, PASS, all over Albania. FY2006 ($34.000) 1. Increased civic involvement in the management of the historical site of Gjirokastra in the context of UNESCO accession, Shoqata për Mbrojtjen e Mjedisit dhe Nxitjen e Turizimit, Gjirokastra. 2. Debate on the fiscal education of the community in an endeavor to reduce fiscal evasion corruption, Forumi Shqiptar Social Ekonomik (ASET), Tirana. 3. Monitoring of policies and decisions that affect the interests of student groups. Fondacioni “Lëvizja Mjaft”, Tirana. 4. Improving the quality and speed of the delivery of services for the small business in order to facilitate unification of procedures and unification of payments, Instituti i Studimeve për Qeverisjen e Mirë dhe Zhvillimin e Qendrueshëm, Tirana. 5. Training of coordinators of students’ government for an efficiency and supportive youth parliament in the process of decision-making and the fight against corruption in schools. Shoqata “Vizione të reja”, Kurbin, Laç and Lezha. 6. Organization of an anti-corruption caravan in 12 prefectures of the country for a replication of successful experiences in the fight against corruption, Shoqata “FORIS”, Tirana. 60 CIVIL SOCIETY FUND 7. Monitoring the garbage collection in Tirana from 3 companies contracted by the Municipality of Tirana, Qendra Mjedisore për Zhvillim, Edukim dhe Rrjetëzi (EDEN), Tirana. 8. Strengthening accountability mechanisms, and the inclusion of the community in improving public services through better use of public funds, and enhancing public transparency in 5 communes: Dajt, Farke, and Kashar in Tirana, as well as Maminas and Rrashbull in Durres. The Albanian American Trade and Development Association, Tirana. 9. Promoting women participation in the area of Spitalla, and Porto Romano in decision making that affects the community of the area, Shoqata e Grave me Probleme Sociale, Durrës. FY2005 ($34.000) 1. Promote and organize public debates and hearing sessions on “Shkodra Lake: protected landscape or national park”, Shoqata për Edukim Mjedisor, Shkodër. 2. Setting up the national action plan on ageing in line with the International Plan of Action on Ageing”, Albanian Society for all ages, Tirana. 3. Involving civic groups in the process of preparation and monitoring budget at local level in Pogradec, Erseke, Leskovik and Devoll, Qendra për Kërkim dhe Zhvillim, Pogradec, Ersekë. 4. Supporting social integration of disabled people, Shoqata Shpresë dhe Dashuri, Tirana. 5. Promoting National Strategy of Education and EFA in Gjirokastër, Tepelenë and Përmet, Shoqata Edukimi për Shoqërinë e Hapur, Gjirokastër. 6. Improving communication between local government and citizens through the establishment of five citizen commissions to the Durresi municipality, Shërbimi Social Ndërkombëtar Shqipëri, Durrës. 7. Increasing public awareness on the youth needs in Bathore, Shoqata për Integrim dhe Zhvillim, Tirana. 8. Promoting sustainable civic engagement to develop local programs in Baldushk commune, Shoqata për Nxitjen e Biznesit dhe Reformave Publike, Tirana. FY2004 ($48.000) 1. Fight illiteracy among Roma children and support their integration with other children, Gruaja Rome e se ardhmes, Tirana. 2. Supporting the publishing of a bi-weekly newspaper that shall disseminate information, raise awareness and integration on Environmental Protection, Masmedia dhe Mjedisi, Tirana. 3. Raising institutional and civic awareness towards orphan Northern youth, Gruaja ne Integrim, Shkodër. 4. Improvement of processes and mechanisms on complaints in prisons of Albania, Përthyerje, Tirana. 5. Raising awareness and supporting the integration of orphan children to community, Shoqata e fëmjëve dhe të rinjve jetimë, Korça. 6. Empowering the marginalized groups in Bathore, Gruaja për veprim global, Tirana. 7. Encouraging legal entrepreneurship in the post-trafficking areas of Saranda and Vlora, Lidhja e Gazetarëve Ekonomikë të Shqipërisë (LEGA), Tirana. 8. Raise awareness on handicaps rights, Për mbrojtjen e të drejtave të personave me aftësi të kufizuara (MEDPAK), Librazhd. 9. Experimenting new learning methods for youth, Qendra Sociale Murialdo, Fier. 10. Improving the conduct of police structures through awareness and public information about detainees rights, Qendra për Zhvillimin dhe Demokratizimin e Institucioneve, Tirana. 61 CIVIL SOCIETY FUND 11. Community mobilization to reduce marginalization, particularly of ethnic minorities, Fëmijët e botës dhe të Shqipërisë – të Drejtat e Njeriut, Tirana. 12. Increasing women participation in decision making in village to improve governance, PISHA, Kastriot, Peshkopi,. 13. Encouraging continues learning, Projekt: Arsimimi i të rriturve në Shqipëri - PARSH, Tirana. FY2003 ($45.000) 1. Organizing a series of debates on the social problems of the third age with local government, civil society and elderly, AMIV, Gjirokastra. 2. Empowering women in the rural areas of Puka district and making them more proactive in society, “Grate intelektuale”, Puka. 3. Production of 24 episodes of a radio soap opera in the national public radio station on raising public awareness on women trafficking, Fondacioni “Rruga me pisha”, Tirana. 4. Support for children and parents whose children run the risk of trafficking, Unioni rinor i te drejtave te njeriut, Durrës. 5. Leadership training for Roma women, Shoqata Kristiane e Grave Shqiptare, Tirana. 6. Publication in Albanian of the “Right to tell” WBI publication, to be used for training of Albanian journalists in Albania, Kosovo and Macedonia, Instituti Shqiptar i Medias, Tirana. 7. Increasing involvement of the vulnerable groups in decision-making in Koder-Kamza, Integrim ne komunitet, Tirana. 8. Fostering of Roma children’s right and promoting coexistence in harmony with non-roma children, Dyert e se ardhmes, Fier. 9. Sensitizing the decision-making institutions about the difficulties of the household business in poor areas (Shkodra, Lezha and Elbasan) in order to generate conducive conditions for their activity, Qendra për Kërkim dhe Zhvillim, Tirana. 10. Production of two TV newsreels for “Tunel” serial aiming at increasing the capacity of marginalized groups to influence public opinion and to negotiate with the central and local government to address their problems, Forumi Shqiptar Social Ekonomik (ASET), Tirana. 11. Eliminating child labor and involve the society in preventing this phenomena, European Children’s Trust, Shkodra. 12. Raising awareness of public opinion and Parliamentarians regarding bilateral and multilateral treaties and covenants on children rights, International Social Services, Albania office, Tirana. FY2002 ($25.00) 1. Public awareness campaign and assistance for the families in blood-feud, Në dobi të Gruas Pukiane, Puka. 2. Different but equal, Të gjithë fëmijët kanë të njëjtën vlerë njerëzore, Shkodër. 3. Women Farm School as a tool for the emancipation of women migrated from the remote areas of the country, Qendra Rajonale e Këshillimit Bujqësor, Durrës. 4. Open debate on Childhood, Christian Children Fund Association in cooperation with the network of parents community groups, Tirana, Peshkopi, Kukës. 5. Involvement of marginalized groups in the municipality decision-making, Shoqata “Rinia dhe Fëmijët”, Përmet. 6. Establishing network between the Roma population in Albania and in Romania, Center for Social and Economic Studies, Tirana. 7. Social and Physiological support of the elderly through involvement of youth groups, Në dobi të Gruas Shqiptare, Tirana-Kombinat. 8. Establishment of the mother’s club “Let’s help each other”, Multidisiplinary Center for the Management of Child Maltreatment, Tirana. 62 CIVIL SOCIETY FUND 9. Promotion of Civic initiative in solving the economic and environmental issues in Fushe Bardha through dialogue and lobbing, Southern Albania Environment Association, Gjirokastra. 10. Promotion of cooperation and tolerance among teenagers from families with social and economic problems, Fëmijët e Botës, Tirana. 11. Media raising the public authorities awareness about the mine fields communities, Shoqata “Pjeter Bogdani”, Kukës. 12. Raising the awareness of the social opinion community and the donors about the needs of women and children in Albanian prisons, Institute for Public Opinion Poll, Tirana. FY2001 ($30.000) 1. National Youth Debate “The government must take care of its poor people”, National Albanian Association of Debate, all over Albania. 2. Community participation for the solution of the disagreements in the commune of Prrenjas and Librazhd, FILD & SEDA Associations, Librazhd. 3. Apartment complex Community Unification and Development in Lushnja, Qendra Shqiptare për Zhvillimin e Komunitetit, Lushnja. 4. Begin and improve your business, Qendra e Gruas, Tirana. 5. Protecting the relations of ethnic minorities by increasing the role of the electronic independent media in the sub prefecture of Saranda, Shoqata e Gazetarëve Profesionistë Jonianë, Saranda. 6. Improvement of the village water supply, Shoqata e Kursim – Kreditit në Kuqan, Elbasan. 7. Increasing farmers’ income through the production of a certified hybrid corn seed in Baldushk, Shoqata e Përdoruesve Gjenetikë të Prodhimit të farërave, Tirana. 8. Media in GPRS implementation, Unioni LEGA, Tirana. Contact person: Ana Gjokutaj, Communications Officer, World Bank Office Tirana; Tel: 355-4- 2280-650/1; Fax: 355-4-2240590; e-mail: email@example.com 63 PROCUREMENT INFORMATION The Articles of Agreement of the World Bank, establish the Bankâ€™s fiduciary responsibility to ensure that the proceeds of its loans/credits are used only for specified purposes, with due attention to economy and efficiency and without regard to political and other non-economic influences or considerations. To this end, the Bank has established procurement rules to be followed by Borrowers for the procurement of goods, works, and services required for the projects financed by the Bank, and procedures for Bank review of the procurement decisions made by Borrowers. Procurement is a critical element of the Bank financed projects and it contributes substantially to the success or failure of projects and programs. Four basic principles guide the Bankâ€™s procurement requirements: (a) Ensuring economy and efficiency in the procurement of goods, works, and services, as mandated by the Articles; (b) Giving eligible bidders from developed and developing countries a fair opportunity to compete in providing goods, works, and services financed by the bank; (c) Encouraging the development of domestic industries--contracting, manufacturing, and consulting industries--in borrowing countries; and (d) Providing for transparency in the procurement process. The responsibility for the implementation of the project and therefore for the award and administration of the contract rests with the Borrower. The Borrower is responsible for all procurement steps, including advertising, pre-qualification evaluation, preparation of bidding documents, evaluation of bids/proposals and contract awards. The Borrower contracts directly suppliers/contractors and consultants and is responsible for the implementation of the contract. All parties such as consultants, contractors, manufacturers and suppliers of goods and services should contact the implementing agencies in Albania if they are interested in participating in World Bank-funded projects. After notification of the contract award, if a bidder/consultant wishes to ascertain the grounds on which its bid/proposal was not selected, it should address its request to the Implementing Agency of the Borrower. If the bidder is not satisfied with the explanation given and wishes to seek the review by the Bank, it may do so in writing addressed to the Country Manager and Regional Procurement Manager responsible for Albania. For more information on the procurement guidelines and policies and Bankâ€™s Standard Bidding Documents (used by the Borrower) visit: http://www.worldbank.org/html/opr/procure/. 64 IFC ActivitIES 65 IFC ActivitIES IFC ACTIVITIES IFC activities consist in: • Supporting infrastructure sector development through promoting private sector investments and Public Private Partnership, leveraging on our close cooperation with IDA/IBRD; • Facilitating financial intermediation through introduction of new financial products in the market; • Supporting investment in the sectors where Albania has a competitive advantage including tourism; • Supporting domestic companies to become competitive in the local and regional market; • Contributing to reducing petty corruption through facilitating outsourcing of services from public to private sector; • Promoting market liberalization through encouraging fair practices and effective competition. • Facilitating Foreign Direct Investments through debt and equity investment with strategic partners, particularly when a green field project is envisaged. IFC in Albania has: • Committed about US$118.30 million allocated to, general manufacturing (64%), and oil and gas (36%); • Participated in the privatization of the National Commercial Bank, the Pro-Credit Bank, and in the preprivatization restructuring of insurance company INSIG; • Invested in Bankers Petroleum, a Canadian oil and gas exploration and production company, the largest foreign direct investment in Albania’s oil and gas sector; • Supported Vodafone Albania to develop its digital GSM cellular network; • Implemented and processed a series of technical assistance projects on access to information for SME’s, preparation of domestic companies for EU accession, administrative barriers to investors, leasing, factoring, housing finance, corporate governance, recycling and linkages, alternative dispute resolution, etc. • Targeted for future investments a broad range of sectors such as financial markets, infrastructure, utilities, social sectors, tourism, agro-processing and general manufacturing. 66 TABLE OF INVESTMENT PROJECTS (As of May 2010) IFC’s Projects in Albania (US$ million) Board Approval Date Project Project Cost, US$ mln** IFC Financing, mln** Project Description 2009 Bankers Petroleum 370 65 The project consists of re-development of the onshore Patos Marinza oilfield in southern Albania, by a junior Canadian oil and gas exploration and production company, Bankers Petroleum. IFC investment consists of (i) an A Loan of up to US$50 million in the form of a reserve-based revolving loan facility; (ii) an A Loan of up to US$5 million as a special-purpose environmental term loan; and (iii)a potential equity investment in the Company, by way of exercise of equity warrants, of up to CAD 12 million (about US$l0 million). EBRD provides identical financing facilities for the Project,. 2009 Titan 210 22.6 The project involves the construction and operation by Antea Cement Sh.A. of a greenfield integrated cement plant with a cement production capacity of 1.4 million tons per annum (“tpa”) in Albania. The Project, which is estimated to cost €210 million, is located near Burizana village, about 35 kilometers from Tirana, the capital city and 45 kilometers from Durres, Albania’s main port. It will promote competition in Albania and help address the shortage of domestic cement supply in the country. 2008 Best Construction 32 12.5 The project of 8 million Euro loan to Best Construction will help to support the development of housing infrastructure in Albania, mainly in the suburbs of Tirana and Durres and in other secondary cities. It will help develop innovative and primarily middleincome residential complexes like the Lundra and Curilla developments in new areas, by reducing the congestion in the city centers. The project will also help develop the related business infrastructure around the housing projects. 2007 Konstruksione Metalike 6 2.5 The project of Euro 4.7 ml (the first phase) is about the construction a new facility to produce metallic structures to meet the growing demand for light and heavy metallic structures. 2005 Fushë Kruja Cement plant 130.0 30.0 This is a new modern production line in Fushë Kruja Cement Factory, with aggregate annual cement capacity of 1.3 million tons to reduce Albania’s dependence on imported cement, enhance the domestic market for construction materials and facilitate rapid reconstruction and development of Albania’s infrastructure 67 TABLE OF INVESTMENT PROJECTS (cont’) Board Approval Date Project 2003 INSIG 2003 Vodafone Albania 2002 Project Cost, US$ mln** Project Description IFC Financing, mln** 6.2 IFC acquired 20% stake of INSIG, one of Albania’s leading insurers. During the second stage, with the assistance of the IFC and EBRD, the Government of Albania will complete the full privatization of INSIG by divesting its remaining stake and relinquishing its controlling interest to a reputable technical partner; 225.0 41.4 Loan to finance the second national mobile telephone operator to develop a nationwide cellular network. National Commercial Bank (NCB) 10.0 2.3 This project involves the rehabilitation and privatization of NCB in an effort to support the recovery of Albania’s financial sector, which is needed to facilitate productivity, economic growth, and domestic savings. 1999 PRO CREDIT Bank 5.0 1.1 The Bank promotes the development of microenterprises by providing scarce medium- to long-term financing. It plays a role in mobilizing savings for productive use in a country where confidence in the banking sector remains low. 1998 Eurotech 3.5 1.2 The construction of a cement-bagging terminal near the port of Durres to supply the Tirana-Durres region. Contact persons: Elira Sakiqi Country Officer, IFC office Albania, Tel: 355-42280-650/651; Fax: 355-42240590; e-mail: firstname.lastname@example.org Denisa Bilali Program Assistant, Tel: 355-42280 650/651; Fax: 355-42240590 e-mail: email@example.com 68 IFC ActivitIES IFC ADVISORY SERVICES IFC’s Advisory Service and Technical Assistance focus on: • Advisory Service to public sector entities in infrastructure to attract private sector participation (PSP) and investment in energy, transportation, ports, and water and sanitation sectors. • Contributing in improving the business environment and removing administrative barriers to investors through Foreign Investment Advisory Service (FIAS) and facilitating access to justice and finance through Alternative Dispute Resolution Project • Providing Technical Assistance to firms in the areas of: international standards, Corporate Governance, Recycling and Supply Chain Linkages. PUBLIC PRIVATE PARTNERSHIP IN INFRASTRUCTURE IFC signed two advisory service agreements with the Municipalities of Tirana and Durres and performed a preliminary assessment which assessed the overall feasibility of the private sector participation in the solid waste disposal sector in both municipalities. The preliminary assessment identified the main issues that need to be addressed in order to promote the private sector participation in the solid waste management sector in Tirana and Durres as well as the need for sector restructuring and institutional, regulatory and legal reforms. IFC is in the process of discussing a potential PPP transaction mandate with one of the municipalities and plans to continue discussions with stakeholders on the need for reform in the solid waste management sector and for further integration among different initiatives which aim to support municipal effort to improve waste management services. Contact Persons: Ariana Progri Investment Officer, IFC Albania Tel: 355 42 231401; Fax: 355 42 231260 firstname.lastname@example.org Elona Cela Business Analyst, IFC Albania Tel: 355 42 231401; Fax: 355 42 231260 email@example.com 69 IFC ActivitIES Integrated Solid Waste Management Project (ISWMP) This Project is continuation of the previous Recycling Linkages project (2006-2008).The objective of the ISWMP in Albania is to improve waste management services and practices in the country by laying the groundwork and building capacity to facilitate private sector participation and investment in the municipal waste management projects (waste disposal, treatment and collection), and by improving regulatory framework and by building capacity of the policy makers, at local and nationla level. The overall expected impact that would result from this work is 1 PPP transactions in waste management project launched by the government and 3 waste management regulation improved/enacted within 2-3 years after completion of ISWMP program (by 2013). The specific impact expected to result from ISWMP activities in Albania but to be tracked by the follow on projects (Infrastructure Advisory Mandate Project which would result from ISWMP’s preparatory work) is: increased new investment in waste management infrastructure projects (10 M USD), access to improved waste management services for the public (at least 200,000 people reached), sound environmental standards applied, and reduced GHG emissions (10,000 CO2 eqv t/y) as final effect. This will be reached by meeting the following objectives: Objective 1: Improve the regulatory framework for waste management and build capacities of the policy makers at the local and national levels. The focus is to assist the Government and/or Municipality in revising and improving the existing legislative framework regulating the waste management sector, which will be conducive to private sector participation and will introduce additionally best international practices. Objective 2: Engage directly with municipalities to develop viable PPP transactions ISWMP’s role in this process – together with the Infrastructure Advisory team - will be to support the municipalities in designing economically profitable, environmentally and socially responsible transaction that would attract the private sector. ISWM project has signed Cooperation Agreements with: a) Ministry of Environment to provide advisory assistance in drafting 3 legal acts on packaging, batteries and electric and electronic waste streams transposing the respective EU Directives; and b) Municipality of Durres to draft a Local Waste Management Plan and to conduct a Preliminary Assessement in order to define whether the basic conditions for the successful implementation of an environmentally advantageous PPP transaction are given and to assess the approximate time-frame for private sector introduction in the solid waste disposal and management sector. Contact Person: Irena Gribizi 70 Associate Operations Officer, IFC Albania Tel: 355-42 231-401/390; Fax: 355-42 231-260; Email: firstname.lastname@example.org IFC ActivitIES IFC ADVISORY TO PRIVATE SECTOR CORPORATE ADVICE Corporate Governance (CG) aims at improving the current state of corporate governance (CG) in companies in Albania, build the capacities of key stakeholders (board members, management, shareholders, financial institutions), and raise public awareness about the benefits of good corporate governance. Corporate Governance Projects in ECA region (369, 300 USD) Phase 2 of the CSEBB CG Project will further activities that capitalize on the demand created by the first phase of the Project and will focus on the private sector clients and public sector partners. The first objective is to use this amended methodology to assess the governance of selected companies and suggest improvements. Implementation of the improvements of the selected pilot companies will be outsourced to external consultants managed by the country team (i.e. the project officer). The intended development result is for companies to introduce better CG practices so that they can improve their organization and can become more attractive to investors and other business partners. The project will focus to work with strong companies that are not listed and will be listed in the near term (Tirana Stock Exchange is not yet active), but which have the strong potential to provide a strong demonstration of the value of improved corporate governance to their markets by attracting significant outside investment, including investment from IFC. The second objective is to work with market institutions. It is understood that working with companies in a vacuum is insufficient to ensure that the demonstration effect intended through company work is successful. By supporting and assisting in the continued development of business associations, educational institutions, self regulating bodies and even state regulatory bodies are essential. Moreover, the formal and informal communication amongst the various market players are a significantly powerful instrument that can help ensure the success of corporate governance efforts at the company level. Working with these various institutions addresses the real nature of their authority in the market and the strong role they play in business development in Albania. By supporting these institutions, the Project assures itself of an established successor and an institutional promoter of good corporate governance practices in Albania. Objective three is to promote the benefits of the stock markets and the tangible business benefits of improved corporate governance. Preparing companies for possible listing and encouraging the same among client companies is a mean to develop the companiesâ€™ corporate governance with an eye on the goal of listing. This will prepare companies for the real expectations of the market â€“ and simultaneously promote the benefits of corporate governance to the market via the press or through shareholder reaction to corporate governance improvements. Contact Points Team Leader Oliver ORTON email@example.com Project Officer at Tirana Office Sonila Bicaku, Tel: 355-42-231 401; Fax: 355-42-231 260 e-mail: firstname.lastname@example.org 71 IFC ActivitIES International Standards and Technical Regulations (ISTR) aims at building awareness among companies about International standards and technical regulations and provides topical trainings and consulting services to companies and service providers which are relevant to industries in which they operate. The focus of the program includes: food processing and retail, construction/ building materials, and general manufacturing (i.e. wood and furniture, white goods appliances, electronics etc). The Program is initially established for 5-year period starting from December 2005. ISTR is structured in three levels (i) public awareness campaign re international standards and conditions for export promotion; (ii) topical trainings for at least 90 export-oriented companies on specific standards; and (iii) in company interventions to address the individual needs of export-oriented companies by providing technical assistance during the implementation of standards/certificates. As of March 2010, ISTR has completed 48 trainings/information sessions on HACCP, CE Marking, ICT, environmental (ISO14000) and health safety (OHSAS 18000) standards through which it has reached more than 820 companiesâ€™ representatives, over 69 media mentions were recorded featuring ISTR aiming at increasing awareness on standards, a pool of 150 local consultants were trained on ISO22000 Auditor-Lead Auditor, CE Mark for 4 major EU directives ISO14000, ISO9001 and OHSAS18000. The program developed 5 informative brochures on specific standards and directly supported 11 companies for the implementations of international standards. Eight companies completed interventions (mainly in food processing and general manufacturing) and 3 are in the implementation process for HACCP/ISO22000, ISO9001:2000, ISO14000, OHSAS18000 standards and CE Marking. Altogether 300 companiesâ€™ documents were amended and as a result of implementation of standards an increase in sales, exports and investments was reported. Contact Person: Ledia Terpo (Cirko) 72 Operations Officer, IFC Albania Tel: 355-42 231-401/390; Fax: 355-42 231-260 Email: email@example.com IFC ActivitIES INVESTMENT CLIMATE ADVISORY SERVICES Alternative Dispute Resolution program (ADR) This program aims to support establishment of an efficient mediation system in the countries in the Region to reduce the risks associated with inefficient and expensive court procedures. The program supports the development and harmonization of the legal framework, creation of a pool of world-class mediators, training of judges and raise awareness on mediation among businesses, legal community (lawyers, judges, law students) and general public. The Program focuses on six activities: (i) provision of tailored trainings; (ii) undertaking of public awareness campaign; (iii) establishment the set up of Pilot Mediation Centers; (iv) strengthening of legal framework in line with UNCITRAL and EU standards; (v) organization of study visits - to the member-states of EU (Netherlands, Italy, Slovenia) and countries in the region (Bosnia and Herzegovina, Serbia, Macedonia); and (vi) ADR Conferences - as annual Mediation Events, Alternative Dispute Resolution Project signed a MoU with Ministry of Justice, the National Chamber of Advocates; the Albanian Foundation for Conflict Resolution, to amend the Law on Mediation, and the Civil/ Criminal Procedure Law, have cases mediated, train judges, lawyers and mediators, organize study visits and raise awareness among the public. During 2008, IFC in close cooperation with the above mentioned institutions and the School of Magistrate. ARD organized trainings, seminars on the opportunities and benefits deriving from using ADR/Commercial Mediation for the business community, courts, lawyers, etc (65 participants), seminar on developing ADR curricula for the Law Universities, etc. A small pilot project with AFCR made possible the settling of 54 commercial disputes through mediation. A relevant awareness campaign reaching both the end users and stakeholders of this service went with the process. Based on these achievements, the preconditions were created for IFC, in partnership with the Ministry of Justice, High Council of Justice and AFCR to sign a MoU, followed by a Cooperation Agreement with the District Court of Durres to kick start the first Court-connected pilot project in the Country. The Center, was established by February 2009. Eight mediators trained in basic and advanced modules are offering their services to parties in conflict. Cases are identified and referred by the judges who have participated in basic and advanced training sessions, too. About 80 commercial cases are referred till now and about 50 are resolved successfully, releasing more than USD 5 millions in assets. This initiative is disseminated with several Districts Courts: Shkoder, Elbasan, Berat, Korce as well as with Business and Lawyer’s communities in Tirana and Durres. In addition, a Cooperation Agreement was signed with the Chamber of Commerce and Industry of Durres to establish a Chamber-connected mediation Center. 6 mediators are trained to offer their services in this center. IFC has organized study trips for ADR stakeholders in The Netherlands and Montenegro in order to get acquainted with the best EU and regional approaches regarding ADR development. Based on this experience and new developments in the field, IFC is supporting ADR stakeholders to amend the existing “Law on Mediation”. This is in line with the Programme of the Ministry of Justice, too. In addition, 73 IFC ActivitIES IFC in collaboration with all the stakeholders is preparing an Action Plan which will be part of the Strategy of the Ministry of Justice in judicial reform. Sub-national Competitiveness The early review stage has been completed, and the project implementation will start in May. The first Cooperation Agreement was signed with the Municipality of Shkodra. 2 other municipalities, Durres and Korca, are foreseen to participate in this project. Activities under the regulatory reform component of the project are designed to achieve the following outcomes: streamlining by 10% regulations related to all existing administrative procedures administered at the local level; reducing 10% the time need for processing administrative procedures; increasing the transparency of the implementation of related regulations; reduction in costs, time and documents by 5% needed to comply with regulations on sub-national level; and capacity building of 60 local officials to sustain regulatory reform process, and systemic, transparent and monitored process of creating new regulations on local level. The expected impacts would include measurable private sector savings. The project will also include a trade and transport facilitation audit, with an objective to establish a baseline, as comprehensive as possible, on the situation in Albania in terms of transport costs and efficiency related to trade and transportation services providing an integrated approach. The municipalities of Durres, Korca and Shkoder include the largest port in Albania and the high-volume transit gateways to Greece, Kosovo, Macedonia and Montenegro. The trade logistics sector is highly represented among businesses operating in these municipalities. Western Balkans Trade Facilitation This project is currently in the negotiation stage with the European Commission, and expected to be financed through the Multi-annual Indicative Planning Document 2011-13. The project objective is to increase the competitiveness of the countries of the region by reducing regulatory and administrative constraints related to trade logistics, as well as harmonising cross-border clearance systems and services. By supporting an efficient trade regime in the region, the project will provide advisory assistance aimed at creating leaner supply chains that minimise trade transaction costs and increase the competitiveness of the countriesâ€™ trade in global markets. This project has been developed in consultation with the governments of the region and in response to their specific requests (letters from the governments have been forwarded to the European Commission). Governments in the region recognize the importance of developing export oriented sectors and improving trade efficiency to enhance competitiveness by introducing more efficient production processes and better logistics for delivery of exports to regional and international markets. The project would assist the countries in facilitating the movement of goods across borders and further aligning their rules and regulations with EU practices as outlined in the CEFTA regional trade agenda. It would help to encourage investment and implement procedures for reducing regulatory and administrative constraints. The project will provide advisory assistance for developing more effective marketing channels to reach new markets and leaner supply chains to minimise transaction costs and improve access to these markets. The project will include a regional framework supported by country-specific activities. At the country level, the project will respond to local priorities that will also yield closer economic integration with the EU. The project will actively partner relevant organisations such as the European Commission, CEFTA Secretariat, Regional Co-operation Council, World Bank, and other prominent groups and coordinate with their on-going programs to increase impact and minimize duplication. Sustainability will be provided through the transfer of expertise Contact Person: Fatbardh Cangu 74 Alternative Dispute Resolution, IFC Albania Tel: 355-42 231-401/390; Fax: 355-42 231-260; Email: firstname.lastname@example.org IFC ActivitIES ACCESS TO FINANCE Housing Finance Project (HF) - The objective of this project is to provide a systematic approach for the development of the housing finance sector in Albania, operating at two levels. At the level of the commercial banks, the objective is to improve the skills of the commercial banks in mortgage underwriting, origination and collateral criteria. This will be achieved by building the capacity of key stakeholders and introducing best practices for mortgage origination and servicing that will create conditions for a dynamic and affordable housing finance market in Albania, addressing the need to access finance to lower levels of income groups. At regulatory level, the objective is to provide the level of Government of Albania and the relevant institutions with recommendations for a more efficient oversight of the sector. We have signed a MoU with the Ministry of Public Works Transportation and Telecommunications to address the needs in the Regulatory Framework in Housing Finance sector. The project is focused on three areas: (A) Adaptation of IFC’s “Mortgage Toolkit” by setting the standards for mortgage lending in the country, based on international best practices, and introducing to four commercial banks; (B) Capacity building of the two banks also receiving investment; and (C) Improving the legal and regulatory framework governing housing finance. Currently the IFC “Mortgage Toolkit” has been Adapted to the Albanian market. In depth work has been provided for one bank, Banka Kombetare Tregtare and 2nd phase has started. The IFC Mortgage Toolkit was distributed to 12 banks. Training for loans Officers and Risk Managers was provided where 12 banks participated, with around 45 employees. Final draft of Condominium Law was given to the Ministry of Public Works Transportation and Telecommunications, which is the leading Ministry for this law. In depth capacity building was provided to Registrars Office in regards to procedures and forms of registration of 1st and 2nd mortgage liens. A MoU has been signed with Central Bank of Albania for in depth assistance in regards to the regulatory framework related to Mortgage Loans. Assistance to the Ministry of Transport has been provided in regards to creation of Public Private Partnerships for social housing. Residential Energy Efficiency (REEP) in Albania The objective of the project is to reduce energy consumption in Albania through the introduction of micro loans specifically targeting energy efficiency improvements. The target is to work with minimum of 3 FI and maximum 5, leading up to 7,000 loans disbursed for $28 million, leading in turn up to 24,500 MWh average energy savings by FY 2012 and up to 30,000 (tons/year) GHG avoided. The project shall work through financial institutions (mostly commercial banks), using them as intermediaries to disburse loans to individuals for energy efficient renovation of buildings and flats. The reduction in energy consumption (energy for heating, cooling and domestic hot water preparation) shall be achieved through improvements and replacement of doors, windows and installation of insulation on roofs and walls, as well as through solar collector installation, etc. 75 CONTENTS 1. I D A, I B R D A c t i v i t I E S ALBANIA AND THE WORLD BANK WORLD BANK PORTFOLIO IN ALBANIA TABLE OF ACTIVE PROJECTS TABLE OF CLOSED PROJECTS 5 7 7 8 9 ON-GOING PROJECTS SOCIAL SERVICES DELIVERY PROJECT POWER SECTOR GENERATION AND RESTRUCTURING PROJECT NATURAL RESOURCES DEVELOPMENT PROJECT INTEGRATED COASTAL ZONE MANAGEMENT AND CLEAN UP PROGRAM ENERGY COMMUNITY OF SOUTH EAST EUROPE APL2- ALBANIA - TRANSMISSION HEALTH SECTOR MODERNIZATION PROJECT EDUCATION EXCELLENCE AND EQUITY PROGRAM AVIAN INFLUENZA CONTROL AND HUMAN PANDEMIC PREPAREDNESS AND RESPONSE PROJECT BUSINESS ENVIRONMENT REFORM AND INSTITUTIONAL STRENGTHENING PROJECT (BERIS) LAND ADMINISTRATION AND MANAGEMENT PROJECT TRANSPORT PROJECT SECONDARY AND LOCAL ROADS PROJECT DISASTER RISK MITIGATION AND ADAPTATION PROJECT ENERGY COMMUNITY OF SOUTH EAST EUROPE APL5 - ALBANIA - DAM SAFETY PARTIAL RISK GUARANTEE (PRG) FOR THE PRIVATIZATION OF THE POWER DISTRIBUTION SYSTEM OPERATOR (OSSH) IN ALBANIA 11 11 14 16 19 22 24 26 29 31 33 35 37 39 40 TRUST FUNDS ADMINISTERED BY THE BANK GEF - SHKODRA LAKE INTEGRATED ECOSYSTEM MANAGEMENT CAPACITY BUILDING SUPPORT TO IMPLEMENT THE INTEGRATED PLANNING SYSTEM (MULTIDONOR TRUST FUND) YOUTH EMPOWERMENT THROOUGH COMMUNITY DEVELOPMENT IN ALBANIA (JSDF grant) EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (eiti) STRENGTHENING AARHUS CONVENTION IMPLEMENTATION IN ALBANIA (IDF grant) 42 42 44 47 49 51 STUDIES (NON-LENDING SERVICES) 53 CIVIL SOCIETY FUND 57 PROCUREMENT INFORMATION 62 2. 63 65 67 67 69 69 71 73 I F C A c t i v i t I E S TABLE OF INVESTMENT PROJECTS IFC ADVISORY SERVICES PUBLIC PRIVATE PARTNERSHIP IN INFRASTRUCTURE IFC ADVISORY TO PRIVATE SECTOR CORPORATE ADVICE INVESTMENT CLIMATE ADVISORY SERVICES ACCESS TO FINANCE 41 3 IFC ActivitIES This project is specifically designed towards Performance Based Grant Initiative (PBGI) to ensure that financial institutions actually reach the target market, by aliging IFC â€˜s disbursements on Advisory Services with loans disbursed by the participating banks. Percentage of grant disbursement to FIs will be in alignment with IFC pricing policy. The program consists of three components described below: a) Public Awareness activities, conducted by the project (which will be covered by Austrian funds), b) Activities of the financial institutions, which includes training of loan officers, marketing costs, IT costs and costs related to the introduction of M&E requirements. The IFC project will support the training (on a cost basis), the EE product, and to develop marketing material. c) Monitoring and Evaluation at the end to best capture the impact of the project. Contact Person: Dorina Mehmeti 76 Associate Operations Officer, IFC Albania Tel: 355-42 231-401/390; Fax: 355-42 231-260 e-mail: email@example.com