Participatory Approaches for Indicator Development

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Overview of External Assistance In Albania
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CONTENT

• Some Data on Foreign Assistance, C-D
• Delivery rate, main Problems and Modalities of
  the Implementation(WB,EU,KFW)
• National Coordination Framework and possible
  UNDP - INVOLVEMENT

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OVERVIEW OF EXTERNAL ASSISTANCE IN ALBANIA

• Total amount of commitment by donors for the
  period 1991-2002 is around 3,9 billion usd
  while the cumulative level of external resources
  disbursed has been 2,52 billion USD, including
  the disbursements of humanitarian and food aid
• More than 50 of Public Investment is financed
  through Foreign Financing
• Multilateral Donors are the main source of
  external assistance providing around 60 of the
  total assistance EU,WB
• If the GDP per capital is around 1232usd, it
  means that commitment is roughly 100usd/per
  person/year

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So we can say !

• There is a market of donors money where the
  Government is the buyer and the donor community
  is the seller of fonds.

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MAIN NATIONAL ACTORS

• MINISTRY OF ECONOMY National Coordinator of
  External Aid
• MINISTRY OF FINANCE IMF, WB, Greek bilateral
  assistance, loans and credits
• STATE MINISTER for INTEGRATION National
  Coordinator under CARDS

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Total Comm of External Assistance
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Commitment as of GDP and State Budget Spending
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Total commitment in by donors,1991-2001

Chart Total commitments in by main donor
agency, 1991-2001
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Commitment by Type of Assistance

• Comm in by financing terms

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Albania and BH 2001

• A BH
• 269m 639 m
• 54 59
• 6,3 12,8
• 24m 72m
• 3,44 4,1
• 1230 1240
• 76m 175m
• 49m 53m

• ODA usd million
• Bilateral share
• Net /GNI
• Net Private flows
• Populations
• GNI per capital
• EU
• IDA

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Main Sectors of External Assistance Commitment

• 1999-2002, Sector of Transport 21,6, Energy -
  13,26, Instit reform 9,6, Agriculture 14,8
• In 2002, the highest level of Commitment is in
  the sector of Energy, SME and Privatization as
  well as Instit Reform

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DISBURSEMENT FEATURES

• Multilateral donors have disbursed around 56.3
  of the total disbursements. The bilateral donors
  have contributed around 43.6 of the total
• Italy heads the bilateral donors around 14 of
  the total. USAID has been the second largest
  contributor 14, followed by Germany with about
  7.5 of the total disbursements.

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Main problems of disbursement

• Albanian Side INSTITUTION STABILITY,
  VAT-reimboursement, EXPROPRIATION, TAXES,
  Staftournover, long time of approving the project
• Donor procedures Long and Complicated
• Stability of the Region

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IMPLEMENTATION ARRANGEMENTS(water sector)

• E.U.
• PROCEDURE
• PMU
• PAO
• DELEG-Tiranae
• EU-Brussels
• COMPLEKS
• DISB. 5

• W. B.
• PROCEDURE
• PIU
• B.B.-Washington
• DIRECT
• DISB. 48.3

• K.f.W.
• PROCEDURE
• Impl.Agency
• KfW
• DIRECT
• DISB. 40

All donors operate in the same environment
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METODOLOGY

• B.E.
• Implementations Structure

BRUSSELS PAO
Deleg. Tirane
Phare PMU Supervisory
Supervisory
Supervisory Contractor Saranda
Gjirokastra Vlora
Lezha Fieri
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METODOLOGY
W.B. Organizatives Structure of PIU

• B.B.
• Washington PIU
• Durres
• Consultancy
• Staff

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METODOLOGY
K.f.W. Implementation Structure
(PIU)
K.f.W.

Director of Enterprise is the Director of PIU
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ULTIMATE OBJECTIVE

• MOVE FROM A DONOR DRIVEN POLICY SYSTEM TO A
  NATIONALLY DRIVEN POLICY SYSTEM BY INTEGRATING
  AID PROGRAMS INTO NATIONAL PRIORITIES AND
  INSTITUTIONS AS EXPRESSED THROUGH POLICIES,PLANS,
  BUDGETS AND OPERATIONS

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How we can move to a Nationally Driven process?

• Set up a National Framework MDG, NSSED MTEF,
  SAA
• Support the Government Leadership and
  Coordinating Role
• Set up partnership with the Government and main
  donors, instead of competing with them

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Problems so far

• External Assistance and MTEF for 2002 shows that
  there is a gap between proposals made in 2002-05
  NSSED/MDG and MTEF. 61 of government spending is
  allocated in health, social and education while
  in External Financing these sectors account for
  only 2 of commitment

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Problems so far

• There is a lack of coordination and ownership
  from the Albanian institutions and coordination
  between them and donors
• There is a lack of capacity in relation to
  linkages that should exist between policies,
  planning, programming and external financing
  process

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UNDP s ADVANTAGES

• UNDP has previous experience through
• 1.1 NATCAP(OPS) PROJECT 1993-1996
• 1.2 NATCAP(NEX) - 1996 1997
• 1.3 Debt Management - 1997 1999
• 1.4 Guidance Project 1997-2001

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UNDPS ADVANTAGE

• Corporate Agreement at the top level EU,WB
  Support to Loan Agreement
• Previous IFAD UNDP cooperation, Dutch, EU
• Service provider capacity in house
• Neutrality
• Transparency

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• THANK YOU