Country Profiles

Profile On ECSSD Activities In Three ECA Countries

Albania  |  Georgia  |  Romania

Albania Country Profile

The upcoming CAS for the period FY2006-2009 will support the country's development agenda as articulated in its National Strategy for Socio-Economic Development (NSSED).  Two pillars of the NSSED will constitute the building blocks of the Bank’s new strategy: (a) economic growth through support to private sector development, and (b) improved service delivery, particularly in the social sectors.  Special attention will be paid to governance issues, which will be mainstreamed in all of the Bank’s programs and projects.  ECSSD has contributed to the process of developing the NSSED and CAS, while it continues to focus much of its work in supporting Albania’s efforts to: (a) implement agricultural reforms aimed at enhancing agricultural and environmental efficiency, (b) transfer the management of its irrigation systems to water user associations to improve maintenance and effectiveness, (c) protect and preserve the country’s natural resources, and (d) support social development through its support to community works and community-based early childhood centers.  Since 1993, the region has invested US$136 million in Albania.

Agriculture and Rural Development

ECSSD is supporting Albania’s efforts to implement agricultural reforms to enhance agricultural efficiency.  With World Bank assistance, 100,000 families have benefited from upgraded irrigation and drainage systems.  ECSSD is continuing to work with the Government in transferring management of irrigation systems to water user associations to improve maintenance and effectiveness.

Agriculture Services Project.  This project is designed to create an environment conducive for rural income growth by addressing key constraints faced by Albania's emerging small-holder farmers in agricultural production, trade, and the functioning of land markets.  Project financing is supporting:  (a) seed market development designed to ensure farmer access to a full range of seed technology and to foster establishment and development of public and private seed-related institutions suitable for market economies; (b) land market development to support the physical and institutional development of the Immovable Property Registration System and a pilot land consolidation project; (c) market development to support a variety of measures essential for the establishment and promotion of functioning market channels, marketing facilities, and export opportunities; and (d) community-based rural productivity and marketing improvement.  The latter will award small grants under a competitive grant program designed to assist emerging smallholder farmers and other rural entrepreneurs to develop their businesses.  

Second Irrigation and Drainage Rehabilitation Project.  Second Irrigation and Drainage Rehabilitation Project.  This project supports the sustainable and equitable use of agriculture production. There are four project components.  The first component is designed to rehabilitate and improve irrigation, flood control, and drainage facilities; irrigation reservoirs and head works; and supporting field surveys, project design, and construction supervision.  The second component continues support provided under the first project for developing a sustainable irrigation sub-sector by:  (a) strengthening and expanding the transfer of irrigation management to water users' associations; (b) assisting the restructuring of water enterprises into more sustainable institutions responsive to their users; and (c) assisting the construction industry to encourage better contract practices and construction quality.  The third component finances improvements in irrigation technologies (for example, gate and pump station designs), develops design manuals, commissions sector studies, and conducts annual dam inspections.  It also improves environmental management by piloting the communal management of micro-catchments, training farmers in best agricultural practices and extension services, and funding environmental monitoring.  The fourth component supports project implementation including developing an investment program.

Micro-Credit Project.  The Micro-Credit Project addresses private sector development and poverty alleviation by increasing the availability of financial services to rural farmers and entrepreneurs and urban micro-entrepreneurs and the self-employed.  The project has four components. The first component helps establish and extend a private, sustainable savings and credit association (SCA) network in rural areas-using as a basis the current system of village credit funds-and the progressive development of an SCA Union. The second component expands urban micro-credit and the development of a private, sustainable micro-credit institution, established from the existing Urban Credit Department of the Albanian Development Fund (ADF). The third component provides the technical assistance and training needed to develop an appropriate legal, regulatory, and supervision framework for rural SCAs and their Union, and micro-credit NGOs.   

Land Management and Urban Development Project.  The objective of this newly proposed project will aim to help secure property rights and establish a basis for property taxation while development an enabling environment for orderly land use planning and development of infrastructure.

Environment and Natural Resources Management

Natural Resources Development Project.  The project will support participating communities and community members in adopting sustainable natural resource management practices that lead to enhanced productivity and incomes, reduced soil degradation, improved water quality and conservation of critical ecosystems. Project performance will be monitored through: increased vegetative cover of degraded lands in project communes compared to non-project communes; increased quality, quantity and productivity of forest cover in project areas compare to non-project areas; reduced silt levels in water receiving bodies; increased household income in participating communities; and reduced loss of critical ecosystems/species.  The proposed components include:  (a) rehabilitation and enhanced productivity of natural resources, (b) productivity and income generation enhancement, (c) mainstreaming of biodiversity conservation in natural resource management, (d) carbon stock enhancement, and (e) strengthening of public natural resources management.

Water Resources Management Project.  The main objective of this project is to increase the contribution of water resources to sustainable economic growth through increase in agricultural production.  Through this project, ECSSD will support the Government in:  (a) completing sector reform and physical rehabilitation in irrigation, drainage, and flood protection sub-sector, and (b) development of improved water resource management.  To achieve these objectives, the project finances system rehabilitation; institutional support for irrigation, drainage, and flood management sector; and institutional support for water resource management.

Coastal Zone Management Project.  The development objective of the Integrated Coastal Zone Management and Clean-up Project is to set-up and initiate an integrated coastal zone management approach to reduce coastal degradation by:  (a) enhancing regulatory policy and governance of the coastal zone, land use and regional planning, and institutional capacity; (b) initiating targeted municipal and community investments in the southern coast to improve environmental conditions, enhance cultural resources and encourage community support for sustainable coastal zone management; and (c) reducing soil and groundwater contamination in the former chemical plant at Porto Romano.  To meet these objectives, the project will finance three main components:   integrated coastal zone management policy and institutional capacity building; coastal environmental infrastructure and rehabilitation to assist southern coastal municipalities and local communities in preserving, protecting, and enhancing Albania’s coastal and cultural resources;  and support for containing soil and groundwater contamination in the former chemical plant at Porto Romano, on the outskirts of Durres, considered as one of the most seriously contaminated locations in the Balkans.  In addition to carrying out critical remediation and rehabilitation works and implementing a resettlement plan, the component will build capacity in hazardous waste management within the Ministry of Environment for responding to other critical hotspots throughout the country.

Pilot Fishery Development Project.  The main objectives of proposed project are to achieve sustainable use of marine resources for fishery sector and increase household income of fishing villages.  The proposed project would also support the Government’s initiatives to strengthen the capacity of essential public functions such as research, training, and regulation in the fishery sector.  To achieve these objectives, the project mainly aims to carry out the following activities: (a) Development of Regional and National Fishermen’s Associations, (b) Policy and Institutional Support, (c) Promotion of Aquaculture Development, (d) Introduction of Alternative Fishery Technologies, and (e) Development of Fishery Markets.  

Natural Resources Development Project.  This GEF project will focus on micro-catchments in mountainous areas. Its objective will be for participating communities to adopt sustainable natural resource management practices, leading to enhanced productivity and incomes, reduced soil degradation, improved water quality and conservation of critical ecosystems.  The project will promote best practices in soil and water conservation within the micro-catchment, and provide effective extension services to demonstrate best practice in fertilizer application. An Integrated pest management approach will be promoted, which includes biological controls, cultural heritage preservation, and the use of resistant crop varieties.  Periodic consultations with water supply authorities should prevent degradation of water bodies, both for the medium- and long-term.  Small-scale rehabilitation of agricultural ponds, and irrigation systems that could generate conflicts, will be subject to established arbitration as necessary.  Livestock grazing will be subject to agreements with the participating communities, and, special livestock breeds shall be taken into consideration as per the already successful introduction in Albania. Environmental practices will be in place to control waste disposal and water contamination. Environmental monitoring criteria will be established to ensure compliance with mitigation measures. The project will follow careful planning and siting of access improvements to forestry and pasture management practices.  Finally, the location of watering points shall be assessed during the project planning process to determine their proximity to downstream water users.

Butrint National Park: Biodiversity and Global Heritage Conservation Project.  This GEF project aims to connect biodiversity conservation and sustainable ecosystem management with conservation of world heritage in the Butrint wetland complex.  The project will foster and strengthen the appreciation and protection of coastal wetlands rich in globally significant biodiversity species and the archaeological remains of the UNESCO World Heritage Site. The unique combination of pristine nature and historical assets is an essential aspect of the local and national economy. The project will serve as a vehicle for developing and implementing of a long term site and habitat management strategy.  It is envisaged that the project will support:  (a) development of a protected areas management plan for Butrint National Park; (b) improved management of the park and site assets, including all habitats within the Butrint wetland complex and monument site and Stillo peninsula; (c) restoration of degraded habitats; (d) improved prospects for rural economy and creation of new employment opportunities; and (e) improved public awareness and participation in protected area management.

Assessment of Capacity Building TA GEF.  The objective of this second phase biodiversity-enabling activity (EA II) is to assist Albania in reviewing the progress on the priorities identified in the BSAP; identifying the gaps, bottlenecks, options and future priority needs; evaluating its further capacity building needs; analyzing functional capabilities and determining mechanisms necessary to protect national biodiversity in accordance with the BSAP recommendations, and the GEF and CoP/CBD guidelines. The EA II will also support establishment of a Clearing House Mechanism and preparation of the second National Report.

Lake Ohrid Conservation Project.  The project objective was to conserve and protect the natural resources and biodiversity of Lake Ohrid by developing and supporting an effective cooperation between Albania and Macedonia for the joint environmental management of the Lake Ohrid watershed.   The Lake Ohrid Conservation Project (LOCP) sought to provide a transboundary, comprehensive approach to the management of the Lake Ohrid watershed, combining restoration, conservation and protection of the lake with sustainable use of its natural resources.  The LOCP had four components:  (a) developing the institutional, legal and regulatory framework for environmental management in the Lake Ohrid Watershed, (b) Lake Ohrid Monitoring Program, and (c) participatory watershed management focused on mobilizing citizen groups within the watershed to create a strategic action plan.

Land Management and Urban Development Project.  The proposed project would be a first phase of a wider program in a form Adoptable Program Lending (APL), which would have two phases.  It is envisaged that the both first and second phases of the APL would take 4 years each.  The goal of the program is to promote sustainable economic growth through the development of efficient land and property markets, strengthening the capacity and resource basis of municipalities, and improvement of urban infrastructure and services.  The specific objectives of the first phase are to:  (a) improve tenure security in urban (including informal settlements), rural, and coastal zone areas and improve the service delivery of land registration institutions; and (ii) build sustainable capacity of selected local governments in urban management, including the provision of municipal services and critical infrastructure.

These objectives would be achieved through:  (a) completing registration of rights in rural and urban areas, including the registration of rights in informal settlements and resolving outstanding issues of restitution and compensation including in the southern coastal areas; (b) improving service delivery of the Immovable Property Registration System (IPRS) Agency through re-engineering of office functions, introducing computerization, and the establishment and monitoring of service standards; (c) building capacity of the selected municipalities (who are committed to reform) in urban management, including development of urban land use plans, adoption of transparent administrative procedures and introduction of property tax; and (d) supporting the development of key public infrastructure identified by the participating municipalities.

ECSSD’s activities in the social development sector have focused on supporting the Albanian Development Fund which has improved basic services throughout the country.  Also, under a community works project, ECSSD has worked with its partners in providing support to 900 mini projects aimed at improving water supplies, sewerage treatment, bridges, health centers, schools, day-care facilities, marketplaces, cultural centers, and parks.  

Second Community Works Project.   The main development objective of this project is to alleviate local bottlenecks hindering development by improving access to quality social and economic infrastructure and social services through sustainable micro-projects, and by promoting institutional development at the local level.  The project finances two main components:  (a) community sub-projects which will include an estimated 200 sub-projects aimed at improving local communities' infrastructure in both rural areas (about 120) and suburban areas (about 80); and (b) training and technical assistance programs to strengthen the capacity of local government and communities. 

Early Childhood Development PCF.  This investment is designed for community-based centers for mothers and young children in the Northeast of Albania.  This project addresses multiple needs:  the needs of deprived young children for care and education; the needs of mothers and families for information on early child development (ECD) issues; socially and culturally sensitive issues of domestic and community violence; gender issues as the isolation of women; and institutional issues as the poor dialogue between communities and both local and central authorities on EDC and in general on social services issues. 
 
Strengthening Local Governance and Accountability in ECA.   This three-year pilot funded by the Trust Fund for Environmentally Sustainable Development and the Bank of Netherlands Partnership Program aims at building demand for better government and strengthening participation in Albania and Kyrgyzstan.  In Albania, despite progress in decentralization, there is weak administrative capacity of the local governments (LGs); unclear assignment of roles and responsibilities among national, regional, and local authorities; lack of clear standards of delivery; and inadequate local revenue autonomy and predictability.  Because citizens have high expectations of local government and  lack awareness of LG mandates, there is a strong need for civic engagement in the governance process and in the improvement of local service delivery, while aligning policy formulation to people’s needs and aspirations.  To address these needs, a Participatory Budgeting Pilot (PBP) has been launched in four Albanian municipalities.  The pilot’s objective is to improve local governance and accountability by enabling citizens to identify public investment priorities and influence local budget allocation and fiscal policies.  The PBP has been tailored according to the budgeting cycle of LG units, and has two phases:  (a) Joint Citizen-Government Budget Formulation, and (b) Citizen Budget Monitoring and Local Government Feedback on Budget Expenditure.  The pilot is being implemented in partnership with three local NGOs and representatives from the Ministry of Local Government, Ministry of Finance, Association of Albanian Municipalities, Association of Albanian Communes, and World Bank staff.  By creating a mechanism for linking budget formulation closer to citizens’ priority needs, the pilot expects to increase transparency in the budget process, help strengthen social mobilization, and create a channel for citizen voice.