ANNUAL PROGRESS REPORT 2014
ALBANIAN CONTRIBUTION – INPUT II
MAY – SEPTEMBER 2014
TABLE OF CONTENTS
I. POLITICAL CRITERIA ............................................................................................................................. 6
2.1 Democracy and the Rule of Law............................................................................................................. 6
2.2. Human Rights (please see also chapter 23- Cooperation in the field of Judiciary and Fundamental
Rights) ......................................................................................................................................................... 35
2.3 Property rights ....................................................................................................................................... 44
2.4 Regional Issues and International Obligations ................................................................................... 50
II. ECONOMIC CRITERIA ......................................................................................................................... 52
1. FUNCTIONING MARKET ECONOMY................................................................................................. 52
1.1 Recent economic developments ............................................................................................................ 52
1.2 Reporting on monetary and fiscal policies ........................................................................................... 61
1.3 Interplay of market forces ..................................................................................................................... 64
1.4 Market entry and exit ............................................................................................................................ 64
1.5 Financial sector .................................................................................................................................... 67
2. CAPACITY TO COPE WITH COMPETITIVE PRESSURE AND MARKET FORCES WITHIN
THE UNION ................................................................................................................................................... 71
2.1 Endowment with human and physical capital ..................................................................................... 71
2.2 Sectorial and enterprise structure ........................................................................................................ 72
2.3 State influence on competitiveness / competition ................................................................................. 73
2.4 Trade integration................................................................................................................................... 75
2.5 Real Exchange Rate .............................................................................................................................. 77
CHAPTER 1: FREE MOVEMENT OF GOODS ........................................................................................ 78
1.1 Horizontal Issues................................................................................................................................... 78
1.2 Old Approach Directives ....................................................................................................................... 81
1.3 New Approach Directives ...................................................................................................................... 82
1.4 Free movement of cultural goods ......................................................................................................... 83
CHAPTER 2: FREE MOVEMENTS OF WORKERS ................................................................................ 84
2.1 Access to the labour market .................................................................................................................. 84
2.2 Coordination of the social security system ........................................................................................... 85
CHAPTER 3: RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES .............. 86
3.1 & 2 Right of establishment and freedom to provide services ............................................................... 86
3.3 Postal service ......................................................................................................................................... 86
3.4 Mutual recognition of professional qualifications ............................................................................... 87
CHAPTER 4: FREE MOVEMENT OF CAPITAL ..................................................................................... 88
4.1 Regime of Capital Movements and Current Payments ........................................................................ 88
4.2 Payment System..................................................................................................................................... 88
4.3 Anti-Money Laundering ....................................................................................................................... 92
CHAPTER 5: PUBLIC PROCUREMENT .................................................................................................. 93
CHAPTER 6: COMPANY LAW .................................................................................................................. 97
6.1 Company law ......................................................................................................................................... 97
6.2 Accounting and Auditing ...................................................................................................................... 97
CHAPTER 7: INTELLECTUAL PROPERTY LAW ............................................................................... 100
7.1 Approximation of Laws ....................................................................................................................... 100
7.2 Enforcement of intellectual and industrial property rights ............................................................... 101
7.3 Institutional Framework ..................................................................................................................... 102
7.4 Promotional and awareness raising activities .................................................................................... 104
CHAPTER 8: COMPETITION POLICY .................................................................................................. 106
8.1 Competition ......................................................................................................................................... 106
8.2 State aid ............................................................................................................................................... 108
CHAPTER 9: FINANCIAL SERVICES .................................................................................................... 111
9.1 Banking ............................................................................................................................................... 111
9.2 Insurance and pension insurance ...................................................................................................... 112
9.3 Capital market ..................................................................................................................................... 114
CHAPTER 10: INFORMATION SOCIETY AND MEDIA ..................................................................... 117
10.1 Electronic communication and information technologies .............................................................. 117
10.2 Information society ........................................................................................................................... 118
10.3 Audiovisual policy ............................................................................................................................. 119
CHAPTER 11: AGRICULTURE AND RURAL DEVELOPMENT ....................................................... 121
11.1 Agriculture and Rural Development ................................................................................................ 121
11.2 Livestock breeding............................................................................................................................. 123
11.3 Organic agriculture production ........................................................................................................ 123
11.4 Products subject to market organisation .......................................................................................... 123
11.5 Quality policy and legislation ........................................................................................................... 124
CHAPTER 12: FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY ........................ 125
12.1 Food safety and control .................................................................................................................... 125
12.2 Veterinary policy ............................................................................................................................... 131
12.3 Phytosanitary policy .......................................................................................................................... 132
12.4 Seed and planting material ............................................................................................................... 133
CHAPTER 13: FISHERIES ........................................................................................................................ 134
CHAPTER 14: TRANSPORT POLICY ..................................................................................................... 135
14.1 Inland transport ................................................................................................................................ 135
14.2 Waterways transport ......................................................................................................................... 137
14.3 Air transport ...................................................................................................................................... 138
CHAPTER 15: ENERGY ............................................................................................................................ 140
15.1 Security of supply .............................................................................................................................. 140
15.2 Energy market ................................................................................................................................... 142
15.3 Energy Efficiency and Renewable Energy Sources ......................................................................... 144
15.4 Nuclear safety and radiation protection ........................................................................................... 145
CHAPTER 16: TAXATION ........................................................................................................................ 146
CHAPTER 17: ECONOMIC AND MONETARY POLICY .................................................................... 150
17.1 General directions ............................................................................................................................. 150
17.2 Monetary Policy ................................................................................................................................ 150
17.3 Economic Policy ................................................................................................................................ 151
CHAPTER 18: STATISTICS ...................................................................................................................... 154
18.1 Demographic and Social Statistics ................................................................................................... 154
18.2 Environment Statistics ...................................................................................................................... 155
18.3 Macroeconomic Statistics ................................................................................................................. 155
18.4 Business Statistics ............................................................................................................................. 157
18.5 Monetary, Financial, Trade Statistics and Statistics on Balance on Payments .............................. 158
18.6 Agricultural Statistics ....................................................................................................................... 162
18.7 Registers ............................................................................................................................................ 163
18.8 Classifications ................................................................................................................................... 163
CHAPTER 19: SOCIAL POLICY AND EMPLOYMENT ...................................................................... 164
19.1 Labour Legislation ............................................................................................................................ 164
19.2 Requirements of Health and Safety at Work .................................................................................... 164
19.3 Social Dialogue ................................................................................................................................. 165
19.4 Employment and European Social Fund ......................................................................................... 165
19.5 Social Exclusion ................................................................................................................................ 166
19.6 Social Security ................................................................................................................................... 168
19.7 Anti-discrimination and equal opportunities ................................................................................... 170
CHAPTER 20: ENTERPRISE AND INDUSTRIAL POLICY................................................................. 174
20.1 Industrial policy ................................................................................................................................ 174
20.2 Privatisation and restructuring ......................................................................................................... 174
20.3 Business environment & SME policies ............................................................................................ 175
CHAPTER 21: TRANS EUROPEAN NETWORKS ................................................................................. 178
21.1 Trans-European Transport Networks .............................................................................................. 178
21.2 Trans-European Energy Networks ................................................................................................... 180
CHAPTER 22: REGIONAL POLICY AND COORDINATION OF STRUCTURAL INSTRUMENTS
........................................................................................................................................................................ 182
CHAPTER 23: JUDICIARY AND FUNDAMENTAL RIGHTS ............................................................. 187
23.1 Judiciary System ............................................................................................................................... 187
23.2 Anti-corruption policy ....................................................................................................................... 195
23.3 Fundamental Rights ......................................................................................................................... 200
CHAPTER 24: JUSTICE, FREEDOM AND SECURITY ........................................................................ 212
24.1 External Borders ............................................................................................................................... 212
24.2 Migration ........................................................................................................................................... 213
24.3 Visa Policy ......................................................................................................................................... 215
24.4 Asylum ............................................................................................................................................... 216
24.5 Police cooperation and fight against organised crime ..................................................................... 216
24.6 Fight against terrorism ..................................................................................................................... 229
24.7 Cooperation in the fight against drugs ............................................................................................. 230
24.8 Judicial cooperation in civil and criminal matters .......................................................................... 234
CHAPTER 25: SCIENCE AND RESEARCH ........................................................................................... 238
25.1 Science and Research ....................................................................................................................... 238
CHAPTER 26: EDUCATION AND CULTURE ....................................................................................... 241
CHAPTER 27: ENVIRONMENT AND CLIMATE CHANGE ............................................................... 248
27.1 Horizontal Legislation ...................................................................................................................... 248
27.2 Air Quality ......................................................................................................................................... 250
27.3 Waste Management ........................................................................................................................... 251
27.4 Water Quality .................................................................................................................................... 252
27.5 Nature Protection .............................................................................................................................. 253
27.6 Industrial Pollution Control and Risk Management ....................................................................... 254
27.7 Noise .................................................................................................................................................. 255
27.8 Chemicals .......................................................................................................................................... 255
27.9 Climate Change ................................................................................................................................. 256
27.10 Institutional Framework ................................................................................................................. 258
CHAPTER 28: CONSUMER AND HEALTH PROTECTION ............................................................... 260
28.1 Consumer Protection ........................................................................................................................ 260
28.2 Health Protection .............................................................................................................................. 261
CHAPTER 29: CUSTOMS UNION ............................................................................................................ 265
CHAPTER 30: EXTERNAL RELATIONS ............................................................................................... 269
30.1 Commercial policy............................................................................................................................. 269
30.2 Development Cooperation and Humanitarian Aid .......................................................................... 270
CHAPTER 31: FOREIGN, SECURITY AND DEFENSE POLICY ........................................................ 271
CHAPTER 32: FINANCIAL CONTROL .................................................................................................. 275
32.1 External audit.................................................................................................................................... 275
32.2 Internal audit .................................................................................................................................... 276
32.3 Financial Management and Control ................................................................................................ 277
CHAPTER 33: FINANCIAL AND BUDGETARY PROVISIONS .......................................................... 280
I. POLITICAL CRITERIA
Introduction
The focus of the work for the Government of Albania, during the reporting period has been
implementation of the obligation deriving from the Stabilization and Association Agreement
and addressing the recommendations of the European Commission Progress Report 2013. To
address the 5 key priorities of the European Commission Opinion, the Government has
continued with the implementation of the adopted Action Plan.
2.1 Democracy and the Rule of Law
1.1 The Parliament
During the reporting period, the Assembly of the Republic of Albania has taken measures to
address the recommendations of the European Commission (EC)’s 2013 Progress Report on
Albania, mainly with regard to the adoption of the necessary laws to meet the 5 EC
priorities 1 : strengthening the political supervision on the Government; improving the
Parliament role in the integration process; increasing transparency in the lawmaking process
and the cooperation with the civil society as well as strengthening of the institution’s
administrative capacities. During the reporting period a number of important laws were
adopted, requiring a qualified majority (for more information please refer to Section 1.1.1.1
of this report).
Functioning of the Parliament on the basis of a constructive political dialogue
During the reporting period, the Assembly considered and approved 111 parliamentary acts
(68 laws, 27 decisions and 16 resolutions)2. These acts are approved by an absolute majority
of 76 up to 126 votes in favour, out of 140 MPs. The Assembly held 14 public plenary
sessions.
Laws on important reforms, supporting development of Albania and the fulfillment of
obligations required for future EU membership were discussed and approved. A total of 9
laws provided in the Roadmap of 5 priorities were adopted3, some of which are laws that
1
The 5 key priorities on opening of the accession negotiations of Albania as defined in Enlargement Strategy of
European Commission 2013-2014.
2
List of parliamentary acts passed during the reporting period can be found in the following link:
http://www.parlament.al/web/Sesioni_i_dyte_16325_1.php
3
Law no. 70/2014 "On the Complaints Service and Internal Affairs at the Ministry of Internal Affairs"; Law No.
77/2014 "On some amendments and addenda to the Law no. 10039 of 22 December 2008 "On legal aid", as
amended""; Law no. 98/2014 "On some amendments to Law no. 7895 of 27 January 1995 "Criminal Code of
the Republic of Albania", as amended”", Law no. 99/2014 "On some amendments and addenda to the Law no.
7905 of 21 March 1995, "The Code of Criminal Procedure of the Republic of Albania", as amended "; Law No.
108/2014 "On the State Police"; Law No.100/2014; "On some Amendments and addenda to the Law no.
49/2012 "On the organization and functioning of Administrative Courts and the judging of the administrative
disputes"; Law No. 101/2014 "On some amendments to Law no. 8811 of 17 May 2001 "On the organization and
functioning of the High Council of Justice", as amended ""; Law No. 97/2014 "On some amendments and
addenda to Law no. 8136 of 31 July 1996 "On the Magistrate’s School", as amended ""; Law no. 93/2014 "On
inclusion and accessibility for persons with disabilities".
required qualified majority: part of justice reform and measures to fight corruption and
organized crime. The main proponent of legal initiatives adopted by the Assembly was the
Council of Ministers, while four of the laws adopted were legislative initiatives of the MPs4.
The approval of these laws and other parliamentary acts in the plenary session is preceded by
the consideration and approval at the parliamentary standing committees, which during this
period have faced a high workload. To consider and discuss the draft-laws submitted to the
Parliament, the parliamentary standing committees took the necessary time to review them
deeply, a process that in some cases requested the postponement of their approval in
committees or in plenary, beyond the deadline set in the working programme and calendar of
the relevant committees and plenary sessions, by including them in the next working
programme and calendars. During the reporting period Parliamentary Standing Committees
discussed and approved 78 draft-laws, while additional number of draft-laws are still in the
process. We underline that during the reporting period, there is a significant improvement of
the work of the parliamentary standing committee during the consideration of the draft-law,
in terms of exercising of their function as proposers, and this estimate is based on the data
managed in the Assembly, where it results that that the standing committees have proposed
1308 amendments to the draft-laws submitted5.
During Committee meetings, the provisions of the Rules of the Assembly for the organization
of the public hearings during the consideration of the draft laws were respected and over 120
representatives of interest groups participated.
During the reporting period the Parliament has significantly strengthened its oversight role
relating to the verification of the compatibility of the proposed draft-laws with the EU acquis.
In this process the Committee on European Integration (CEI) have played an important role,
reviewing 15 draft-laws and proposing 77 amendments. Out of these draft laws considered
and approved by CEI and the Assembly, the level of approximation with the acquis of 5 of
them is partial6 and of 4 full7.
The Chairman of the Parliamentary Committee on European Integration and two other
representatives of the parliamentary opposition participated at the third meeting of the HighLevel Dialogue EU-Albania, held on 4 June 2014.
Adoption of laws requiring a qualified majority
4
List of draft laws proposed by MPs during the reporting period can be found in the following link:
http://www.parlament.al/web/Nisme_e_deputeteve_1166_1.php
5
During the period September 2013-April 2014 the Parliamentary Standing Committees have proposed 363
amendments.
6
Law no. 92/2014 "On value added tax in the Republic of Albania"; Law no. 89/2014 "For medical devices";
Law no. 105/2014 "For medicines and pharmaceutical services"; Law no. 74/2014 "On weapons" and the draft
law "On Asylum in the Republic of Albania", which was approved by KIE, but is waiting to be adopted in the
plenary session.
7
Law no. 68/2014 "On some amendments and addenda to the Law no. 9587 of 20 July 2006"On the protection
of biodiversity", as amended"; Law no. 66/2014 "On some amendments and addenda to the Law no. 8488 of 13
May 1999 "On protection of topographies of integrated circuits", as amended""; Law no. 55/2014 "On some
amendments and addenda to the law no. 9947 of 7 July 2008 "On the industrial property", as amended" and
Law no. 102/2014 "On the Customs Code of the Republic of Albania".
During the reporting period, the Assembly of Albania adopted several important laws8, which
under Article 81/2 of the Constitution require a qualified majority (84 votes in favor out of
140 MPs), including two laws which amend the organic laws of two constitutional
institutions: the High Council of Justice (HCJ) and the Administrative Court.
The Assembly of Albania considered and approved the Law no. 101/2014 "On some
amendments and addenda to the law no. 8811 of 17 May 2001 "On the organization and
functioning of the High Council of Justice", as amended””, which was initiated by a group of
MPs. The amendments and addenda to this law increase transparency, accountability and
efficiency of the High Council of Justice in the exercise of its functions:
 Increasing the demand for accountability and control that this body must exert to
judges of the courts of first instance and appellate courts, by providing, inter alia, the
power of the HCJ to decide the suspension of a judge from office, who takes the
quality of defendant, until a final court decision is taken;
 Avoiding, preventing and defining the cases of conflict of interest among members of
the High Council of Justice, aiming to curb the phenomenon of self-promotion on the
part of these members;
 Increasing the accountability and the fight against potential corruption among the
members of the HCJ by clearly regulating, in accordance with constitutional standards
and legislation in force, the cases of termination of the mandate and dismissal of
members of the HCJ;
 In respect of the decision of the Constitutional Court and the precedent set by the
President of the Republic, avoiding any misinterpretation and misimplementation of
the law in the procedure of the appointment of the Vice Chairman, from the 9 elected
judges, which prejudice the constitutional formula of the ratio between judges and
other members of the High Council of Justice;
 Addressing the problems, that accompanied the HCJ in recent years, regarding the
appointment of court presidents and their secondment with prolonged period, in order
to increase the performance in running the courts and preventing corruption;
 Increasing the transparency in the HCJ decision-making, by setting clear rules for
keeping and publication of the minutes of the meetings of this institution.
The Assembly of Albania considered and approved by a qualified majority the Law No
100/2014 “On some amendments and addenda to the Law No 49/2012 “On the organization
and functioning of Administrative Courts and the judging of the administrative disputes”, a
legislative initiative of the Council of Ministers, on 31 July 2014. The amendments and the
addenda to this law aim to balance the workload of administrative courts, in order to increase
the efficiency, accountability and the reliability in delivering justice in the service of citizens.
8
Law No. 101/2014 "On some amendments and addenda to the law no. 8811 of 17 May 2001 "On the
organization and functioning of the High Council of Justice", as amended ""; Law No.100/2014; "On some
amendments and addenda to the Law no. 49/2012 "On the organization and functioning of Administrative
Courts and the judging of the administrative disputes"; Law no. 99/2014 "On some amendments and addenda to
the Law no.7905 of 21 March 1995, "The Code of Criminal Procedure of the Republic of Albania", as amended
"; Law no. 98/2014 "On some amendments to Law no. 7895 of 27 January 1995 "Criminal Code of the Republic
of Albania", as amended”",
This law facilitates the work of judges of administrative courts, by guaranteeing them
independence in the exercise of their functions and by providing new provisions relating to
the conditions specified in the law relating to the candidates to become legal assistants at the
administrative courts of the first instance and the Court of Administrative Appeal. This law
brings some novelties in the organization and functioning of Administrative Courts:
 Determines that the number of legal assistants for each administrative court cannot be
less than 50% of the total number of judges of the court;
 The selection process of the legal assistants is subject to a competitive, transparent
and merit-based recruitment procedure;
 Determines the appointment and the dismissal of the legal assistants and their salary;
 Determines the composition, functioning and the procedure of selection of candidates
for legal assistants from the ad hoc committee.
During the consideration and the approval of this law in the Legal Commission and the
plenary session, the suggestions given by the OSCE Presence in Albania and the National
Judicial Conference were also considered and reflected in the text of the law.
Parliamentary oversight role
In the exercise of the parliamentary control, the Assembly held 1 interpellation with the
Deputy Prime Minister. The ministers, deputy ministers and heads of other central institutions
participated in 71 public hearings in the parliamentary standing committees and answered to
607 questions asked by the MPs.
Regarding the strengthening of the role of Parliament in the European Integration process, on
the initiative of the Committee for European Integration (CEI), a Working Group to review
the law Nr.9252 of 7 August 2004 "On the work of the Assembly in the integration process of
Albania in the European Union "("Zela Law") was set up. The Working Group consists of
three MPs, members of the CEI and is assisted by 7 experts, staff of the services of the
Assembly. The first meeting of this Working Group was held on 3 June 2014, with the
participation of representatives of civil society, representatives of the EU Delegation and
international organizations, such as the OSCE Presence in Albania. In the process of
reviewing of the "Zela law", the representatives of the Ministry of European Integration,
Ministry of Foreign Affairs and the Ministry of State for Relations with Parliament were also
invited to take part by the CEI.. The Working Group asked for technical assistance from the
European Commission through the TAIEX program, in order to assist it with the expertise
from the representatives of the EU Member States. After receiving the preliminary
suggestions from the representatives of the civil society, the first draft of the law was
prepared, which reviews the existing law in its entirety. The draft is under consideration by
the MPs of the Working Group and addresses the future challenges of Assembly in the
European Integration process.
In the framework of monitoring of the implementation of the obligations arising from 5
priorities of the European Commission, on 5 and 27 May 2014 the Committee for European
Integration held two public hearings, with the Minister of State for Innovation and Public
Administration (regarding the first priority of the Roadmap) 9 and the Minister for Social
Welfare and Youth (regarding the fifth priority of the Roadmap) 10 respectively. The
Committee for Foreign Policy held one public hearing with the Deputy Minister of European
Integration on the progress of Albania in the European integration process and the steps taken
by Albania to obtain EU candidate status on 7 May 2014.
On 28 May 2014, the Committee on Work, Social Affairs and Health, with the participation
of the Speaker of the Parliament, held the public hearing regarding the protection of
children's rights. In this public hearing was also attended the Deputy Minister for Social
Welfare and Youth, the Ombudsman, the Commissioner for Protection from Discrimination,
representatives of international organizations (OSCE, UNICEF), children representatives and
representatives of different associations and organizations of civil society, whose object of
activity is the protection of the children’s rights.
The Assembly has exercised parliamentary control not only over the executive, but also over
the constitutional bodies or those established by law to verify the implementation of the legal
framework approved by it. During the reporting period, the Committees held 8 public
hearings with heads of constitutional institutions or those established by law, which reported
on their annual activities in 2013. The Assembly adopted 16 Resolutions in the plenary
session, assessing the work of constitutional institutions or that established by law for the
year 2013 and has also defined the objectives and tasks to be fulfilled for 201411.
For the reporting period, the parliamentary opposition has filed two requests for establishing
two Inquiry Committees:
1. "Establishing a Parliamentary inquiry committee to verify the data on the phenomenon of
the increased drug trafficking, including the use of airspace by drug traffickers, the role
of public officials, and the measures taken by the bodies of the executive power to face
these facts, following official information sent by the responsible structures."12
This request of the DP Parliamentary Group, under Article 7, paragraph 2 of Law no. 8891,
did not find consensus in the Conference of the Chairpersons relating to the important
elements of the subject-matter and the aim of the request and was considered in the plenary
session. After many discussions on the compliance of the subject-matter with the
constitutional principles and the jurisprudence of the Constitutional Court, the Assembly
decided to reject the above mentioned request by Decision no.36 of 22 May 2014, arguing
that the subject-matter of the inquiry committee violates and does not fulfil the constitutional
requirement of "specificity" of the case and the subject-matter is not specified for the facts or
the complexity of the facts which will be investigated.
Roadmap First Priority: “continue to implement public administration reform with a view to enhancing
professionalism and depoliticisation of public administration;”
10
Roadmap Fifth Priority: "take effective measures to reinforce the protection of human rights, including of
Roma, and anti-discrimination policies, as well as implement property rights.”
11
For more information please refer to the following link:
http://www.parlament.al/web/Deklarata_dhe_Rezoluta_te_Kuvendit_60_1.php
12
Request (Prot. No. 1599 of 13.05.2014) by over 35 MPs of Democratic Party Parliamentary Group addressed
to the Speaker of the Assembly for establishing an inquiry committee.
9
2.
"Verification of data on the phenomenon of illegal and political appointments, during the
period from 15 September 2013 to 31 May 2014 in the state administration, public
entities or state commercial companies, including the appointment of persons who have
committed or are suspected of having committed criminal acts or drug trafficking.13
Electing Function
During the reporting period, the Assembly considered the applications submitted for filling
the vacancies available in the constitutional bodies or those established by law and took
relevant decisions according to the constitution and law. The Assembly of Albania elected the
Commissioner for the Protection of the Personal Data.14 The Assembly pursuant to Article 12
of Law no. 152/2013 of 30 May 2013 "On the Civil Servant", took two decisions 15 to
terminate the mandate of two members of the Civil Service Commission. On 22 May 2014
the Assembly made the Decision No 33/2014 “On the preliminary procedure for the selection
of the Commissioner for the Supervision of the Civil Service".
The Decision No 33/2014 stipulates the stages of the preliminary procedure that the
Assembly (and its Services) should follow for the selection of the Commissioner for the
Supervision of the Civil Service, in order to ensure an open, transparent and inclusive process
of competition. Pursuant to this decision, the Assembly administration announced the
vacancy for the position of the Commissioner for the Supervision of Civil Service, through
publication in the official website of the Assembly as well as through the means of mass
media, thus creating the possibility of submitting the application for any individual, who
meets the requirements of the Law 152/2013. At the end of a 45-day deadline, specified in the
official announcement of the Assembly, there were 6 official candidates for the position of
the Commissioner for the Supervision of the Civil Service. The Assembly Services, pursuant
to the above-mentioned decision (No. 33/2014), under the instructions of the Secretary
General of the Assembly, announced to the MPs and Parliamentary Groups on the application
submitted, while the Curriculum Vitae and the accompanying documentation for each
candidate were available to the MPs, along with the prepared information related to the
fulfilment of legal requirements (relating to the qualification and professional experience) for
each candidate. As a second stage of this process, on 25 July 2014the Assembly of Albania,
held a public hearing in the presence of the media, with the candidates that submitted their
application for the vacant position of the Commissioner for the Supervision of the Civil
Service. After the completion of the public hearing stage, pursuant to the provisions of the
Rules of Procedure of the Assembly (Article 111) and the letters "c" and "d" of point I of
Decision No 33/2014 of Assembly, the procedure that the Assembly will follow is the
signature of not less than 28 MPs to support the selected candidate according to his
professional qualities and his performance and the submission of those signatures in the
Protocol office of the Assembly.
13
Request (Prot. No 1857 of 27 May 2014) by over 35 MPs of Democratic Party Parliamentary Group
addressed to the Speaker of Assembly for establishing an inquiry committee.
14
Assembly Decision No. 52/2014 of 24 July 2014.
15
Assembly Decisions No. 31/2014 and 32/2014 of 22 May 2014.
Each candidate, who is supported by not less than 28 MPs, will be submitted to the
Committee on Legal Issues, Public Administration and Human Rights, to assess them as the
competent Committee and after approval, the candidates will be sent to the plenary session
for the final vote.
By the decision No.35/2014 of 22.05.2014, the Assembly did not give its consent to the
appointment of a member of the Supreme Court, as proposed by the President of the
Republic.
In the Parliamentary Committee on Education and Means of Public Information (CEMPI) the
process of the consideration and approval of the candidates for the vacancies in AMA and
KDRTSH continued during reporting period. The Assembly through the CEMPI, has
guaranteed since the beginning, an open and transparent process, starting from the decisions
of the Assembly to publish the announcements of the vacancies for the members and the
chairman of KDRTSH, followed by the announcement of three vacancies for members of
AMA and following the decision-making of the Assembly with the announcement of the
vacancy and its publication for the Chairman of the AMA.
During reporting period, the CEMPI held numerous meetings, to ensure the correct
application of Articles 7-10 and 93-97 of the Law 97/2013 "On the audiovisual media in
Republic of Albania” and respect of legal deadlines for the submission of the applications in
the Assembly, to meet of the legal criteria of qualification and professional experience of the
candidates and the procedural formula for their selection.
On 18, 23 and 24 June 2014, the Committee held public hearings with candidates for
members of AMA and on 21 July 2014 with the candidates for chairman of AMA, according
to the requirements provided for by the Rules of Procedure of the Assembly regarding the
public hearing procedures with the candidates (Articles 36 and 111/7). In each case of the
evaluation of the candidates, the CEMPI previously considered and discussed the proving
documentation for the fulfilment of legal requirements and merit of each candidature and
subsequently approved the list of candidates who met the legal requirements to continue with
the selection phase.
Strengthening the transparency of work and the administrative capacity of the Assembly
The Action Plan of the Assembly for the implementation of the recommendations of the 2013
Progress Report of the European Commission for Albania is being implemented in
accordance with the objectives and measures provided for therein.
During the reporting period, the Parliament has further improved transparency in legislative
process as well as the public access and information on this process. In the website of the
Assembly is published on a regular basis the parliamentary documentation, provided for by
the Article 105 of the Rules of Procedure of the Assembly (the text of the draft-laws
submitted with the explanatory memorandum and the tables of concordance with the EU Law
that accompany them, the Working calendar of the Assembly and Standing Committees, the
minutes of the meetings of the Assembly bodies (Standing Committees, Chairmen
Conference and Councils) and of plenary session, the reports of the Parliamentary
Committee, which have considered the draft-laws, the amendments proposed in writing form
by MPs 24 hours before the consideration of the draft-laws in the plenary session and the
results of the vote of draft laws in plenary session. In the Assembly website is also published
the full text of the law approved in plenary session, after their entry into force16.
The involvement of civil society and interest groups in the legislative process and
parliamentary oversight was further strengthened. In the Assembly website the list of nonprofit organizations and interest groups, divided according to areas of responsibility of
Standing Committees17 is published. The publication in the Assembly website of the draftlaws and of the explanatory memorandum that accompany them, once the plenary session is
notified for their submission, creates more opportunity and gives more time for interest
groups and representatives of civil society, to analyze the draft-laws, to express their opinion,
suggestions and remarks for them in the Standing Committees. The available time at their
disposal, goes beyond the period provided for in the working program of the Assembly that
ranges from 4 to 12 calendar weeks. During the reporting period "Draft-Manual of public
participation in the decision-making process of the Assembly" was prepared, also published
on Assembly website, 18 to get suggestions from all persons interested for its possible
improvement. During September, this draft-manual will be subject to extensive discussion
with civil society and interest groups to get their opinions, before its final approval.
From September 2014 onwards, all interested parties on the proceedings of the Assembly of
Albania and the visitors in the premises of the Assembly will have the opportunity to take a
prompt, very useful, updated and transparent electronic information through two points of
information "Info Point", which will be located on the premises of the Presidency of the
Assembly and the Plenary Sessions Hall. This information system is the product of
cooperation between the Assembly and the OSCE Presence in Albania. Info Point system
will provide accurate information to the public, journalists and other visitors who wish to
attend the proceedings of the Assembly, as well as to the deputies or the employees of the
Assembly administration. The Info Point is designed as an information system, which offers
the key information on the place, time and agenda of proceedings of the plenary session,
parliamentary committees and other parliamentary activities.
During the reporting period, the Public Relations Department of the Assembly organized
visits and has facilitated the issuance of the permits for interested persons and entities
(university students, representatives of various organizations of civil society), who wished to
visit the Assembly, or to take part in the proceedings of the parliamentary standing
committees or parliamentary sessions. During the reporting period, 56 persons have visited
the Assembly.
During this period, the administrative capacities of the Assembly are further strengthened by
continued training of all Assembly Service in various fields, especially those related to
European integration issues. The Assembly staffs (24 civil servants) participated in the
16
http://www.parlament.al/web/Sesioni_i_dyte_16325_1.php
http://www.parlament.al/web/Rregjistri_OSHC_ve_17620_1.php
18
http://www.parlament.al/web/Projekt_Manual_per_pjesemarrjen_e_publikut_ne_vendimarrje_17768_1.php
17
training programs organized by the Albanian School of Public Administration (ASPA), while
a significant number of civil servants have also participated in training programs both in
Albania and abroad, offered by various organizations (EU, OSCE, etc.).
In the fulfilment of the obligations deriving from Law no. 152/2013 "On the Civil Servant",
and the sub-legal acts approved for its implementation, the services of the Assembly
reviewed the descriptions and classifications of job positions in the Assembly administration,
in order to make them compatible with the new models approved by the sub-legal acts.
During the reporting period a working group was established to draft the Internal Rules for
the Organization and Functioning of Assembly Services19, aiming to standardize and bring it
into the format required by the Rules of Procedure of the Assembly, and by the legal
framework on the civil servant.
1.2 Elections
Article 23/2, paragraph 2 of the Law No 8580 of 17.02.2000 “On Political Parties”, as
amended, defines that the Central Election Commission (CEC) determines one or more
licensed accounting experts from the list, to audit the funds obtained and spent by the
political party during the calendar year 2013.
Political parties that are audited for the funds obtained and spent for 2013 by 124 licensed
accounting experts. CEC demanded from the Institute of licensed accounting experts a list of
experts that fulfilled the requirements provided in the articles of the Law on political parties.
In a letter nr.155 / 1 dated 11/03/2014 Institute of Authorized Chartered Auditors sent CEC
the list consisting of 106 licensed auditors who met the required criteria. In support of the
letter "c", "d" and "e" of Article 4 and Article 5 of Instruction no. 8, dated 25.03.2009 as
amended, CEC asked the shortlisted auditors to deposit to CEC their request for participation
in the lot, as well as personal statements to meet the criteria provided in the above provisions.
CEC, in recognition of the importance and transparency of the process, as well as in
performance for administrative notification of the parties, has made a public announcement
for all licensed auditors to participate in this procedure. This is accomplished through the
publication in the official website of the institution, but also through visual media.
At the conclusion of procedures for the selection of the list of licensed auditors CEC,
appointed 22 auditors who met the criteria set out in Article 23/2, paragraph 1, of the Law on
Political Parties and the CEC Instruction no. 8, dated 25.03.2009, amended.
The licensed auditors presented at CEC audit reports for funds received and spent by political
parties for the calendar year 2013 until 5 June 2014. CEC has set up an working group for
verification of reports and identification of all administered documentation and coverage of
cases of violation of the provisions of Law No 8580 of 17.02.2000 "on Political Parties", as
amended by Law No 10374, or other laws and secondary legislation issued in this area,
associated with the received and spent funds of political parties during the calendar year and
19
The adoption of this Regulation is an obligation deriving from the provisions of Rules of Procedure of the
Assembly adopted in 2004 (which is into force).
during the election campaign in an election year. Also the working group should report the
possible sanctions in connection with the financing of political parties, in accordance with
violations.
On 14 May 2014, the CEC, with the support of the OSCE Presence in Albania, organized the
Technical Roundtable to address, along with the actors involved in the process, opportunities
for improving regime of control on Political Party Financing & Election campaigns. Topics
of discussion were focused on:
 Exercise of public authority to control the financing of political parties,
 Limits of perceived transparency of political party financing by the policy
 Coverage of improvements in monitoring election legislation and campaigns of
political parties,
 Supervision of the funding of political parties as part of the national strategy in the
fight against corruption, and other.
On 27 May 2014, Institute for Research and Development Alternatives (IDRA) in
cooperation with Central Election Commission presented the main findings of the National
Study “Freedom of vote and family voting in Albania”. The project was supported technically
by UN Women and financially by the Danish Embassy. The Study presented a multi dimensional overview of the situation for women in Albania related with their behaviour as
voters, level of civic and political involvement, level of the public support for this
involvement, participation in different processes of decision making. The data provided from
in the study and the discussions on these issues will be a great support for the work of CEC in
one of its main priorities - designing of the strategy for the education of citizens in particular
of women for exercising their rights as citizens with the aim of preventing the negative
phenomenon of the family voting. The representatives of the international organizations and
the civil society, as well as domestic observers and experts of the domain, stressed in their
discussions the importance of these data based on the direct interview of 2000 voters, and a
randomly selected sample with geographical expansion in rural and urban areas, with
different age groups, social and cultural backgrounds and gender. A sub sample of this
national study included data from interviews with Roma, conducted in areas where this
community that constitutes one of the most marginal strata of the society, has the highest
concentration.
Based on the recommendations of OSCE/ODIHR, 2011 stating that in discussion for
Electoral Reform must be involved not only the political parties but the CEC as well, the
respective state authorities and the interested parties CEC and OSCE Presence in Albania
organized a Conference with the topic “The Electoral Code: Opportunity for Improvement”
on 30 June 2014. Through this Conference, CEC introduced the findings and
recommendations coming out of five Round Tables, where with the participation and
contribution of all actors involved in the process, the most important aspects of the election
process were treated, such as:
 The right to vote of people with disabilities (24 October 2013);
 Respect for gender quota in the elections (22 January 2014);
 Electoral campaign and Media (3 March 2014);
 Best practises of the platform for training of election commissioners (31 March 2014);

Financing of political parties and election campaigns (14 May 2014).
Following this Conference, CEC is preparing a set of recommendations from the above
mentioned Roundtables to the Assembly of Albania. This set of recommendations for
possible improvements in the Electoral Code reflects on different aspects of the organisation
and administration of elections, strengthening of the institutional role of the CEC as well as
the improvement of the Election Law to guarantee high standards in the election process.
1.3 Government
Overall policy coordination:
The process and methodology for drafting the NSDI 2014 – 2020
National Strategy for Development and Integration (NSDI), along with sector strategies,
crosscutting strategies, master plans and action plans form the framework of the
comprehensive strategic development for the country. They define the priorities and vision
and in the same time define the overall objectives and specific objectives by medium and
long timeframes. These documents also serve as a guide for monitoring the implementation
of the Government's reforms, by setting benchmarks of achieving goals. In the context of
government policies, the NSDI 2014-2020 represents the main instrument for guiding the
development of the country and in the same time reflects the logical link between the
development of the country and the process of European integration. The drafting of NSDI
2014-2020 takes even an greater importance now that Albania has received the status of
candidate country for membership in the European Union.
The Unit for Strategic Planning (SPU), within the Department of Development Programming,
Financing and Foreign Aid, at the Prime Minister Office, is in charge for coordinating the
work among Albanian institutions in order to finalize the drafting of NSDI 2014-2020 within
year 2014.
During the reporting period, the drafting NSDI 2014-2020 included the following activities:
 consultations were held with institutions and ministries during the period 21-30 May
2014, in order to ensure that financial requirements that institutions have submitted
under the Medium Term Budget Program 2015-2017 are in compliance and in line
with the government program, with priorities set forth in the sector strategies and
crosscutting strategies, and also with the National Plan for European Integration.
 Prime Minister Order No. 183, dated 23.06.2014 "On the preparation and drafting the
National Strategy for Development and Integration 2014-2020”, defines NSDI’s
structure, sectoral policies which are included in NSDI, institutions, responsibilities,
and timelines. Pursuant to the Order of the Prime Minister, ministers of the line
ministries derived orders for the establishment of working groups to draft NSDI 20142020, and nominated the contact points.
 The Unit for Strategic Planning (SPU), within the Department of Development
Programming, Financing and Foreign Aid, at the Prime Minister Office is
coordinating the work with respective ministries and institutions thorough meetings
and continuous communication to reflect their contributions into the revised NSDI
draft, and is working intensively to prepare the draft of NSDI within the deadlines set.
In addition, the National Plan for European Integration was approved with Decision of
Council of Ministers Nr. 438, dated 02.07.2014 "On approval of the National Plan for
European Integration 2014-2020”. Priorities established in the National Plan for European
Integration are determined based on a number of sources, including the Annual Work Plan of
Government (AWP), SAA, European partnership and Albania's progress assessments
included in the annual reports of the European Commission (Progress Reports). Short-term
priorities in the National Plan for European Integration, in five main priority areas are fully
synchronized with the Roadmap on five key priorities, approved by the Albanian government
on May 28, 2014. National Plan for European Integration 2014-2020 is prepared by the
Ministry of European Integration, which is also responsible for its monitoring and
enforcement.
The NSDI, Medium-Term Budget Programme and the National Plan for European Integration
constitute the main pillars of the Integrated Planning System.
According to the terms defined in the order of the Prime Minister, NSDI 2014-2020
finalization is scheduled for December 2014, after conducting the consultation process.
EU Integration process coordination
Concerning addressing the 5 priorities identified in the 2013 EC Progress Report, The Road
Map was approved by the Council of Ministers Decision no.330 date 28.5.2014. In order to
guarantee the monitoring of the Road Map implementation, the draft order of the Prime
Minister “On setting up the Working Groups for the implementation of the Road Map
addressing the 5 key priorities recommended by the European Commission 2013” is in
preparation phase. The Draft Order aims to establish 5 inter institutional groups to be led by
the Ministry responsible for each priority. It lays down the rules for the functioning of these
working groups and the overall responsibility of the Ministry of the European Integration to
coordinate the process.
The National Plan for European Integration 2014-2020 was approved by the Council of
Ministers Decision no. 438, date 2.7.2014. NPIE is designed as a short and medium term plan
for the preparation of strategic documents, the approximation of the Albanian legislation with
EU acquis and strengthening administrative capacities. For the first time NPIE was prepared
simultaneously in Albanian and in English and it was sent to our European partners for
comments or suggestions. The plan is fully consistent with the Annual Legislative Plan of the
Government, and when updated in late 2014 it will also be fully consistent with the National
Strategy for Development and Integration that will be adopted in December 2014, as well as
with other national/sectoral strategies.
The preparation of the National Plan for European Integration 2014-2020 and its annual
updates is coordinated by the Ministry of European Integration in cooperation with Interinstitutional Working Groups for European Integration. It is the Minister of European
Integration that provides the guidance and methodology for the preparation and annual
updates of the National Plan for European Integration.
The National Plan for European Integration replaced the National Plan for the Implementation
of the SAA.
Two SAA Subcommittee meetings took place in May 2014, i.e. Subcommittee on Transport,
Energy, Environment and Regional Development, and Subcommittee on Justice, Freedom
and Security. A follow up information regarding the latest developments on Transport,
Energy, Environment and Regional Development was sent to the Commission. Ministry of
European Integration has prepared and sent the draft minutes to the Justice, Freedom and
Security Subcommittee meeting held in Tirana. MEI coordinated two peer reviews,
specifically:
 A Peer Review on Reform of the Judiciary that took place from 12 to 16 May 2014;
 A Peer Review on Human Rights, from 4 to 5 June 2014.
The Ministry of European Integration is coordinating the forthcoming Peer Review mission
on Independent Institutions, which will take place from 8 to 10 September 2014 and from 1
to 3 October 2014.
As regards IPA 2014 Programming (67 million EUR), in the end of July the Government of
Albania submitted the final draft action documents to DG ENLARG for further comments
and improvements. IPA 2014 programming process is expected to be finalized in the Q4
2014 but this year, no support to infrastructure will be granted. The objective of this
programme is the identification of the needs to be addressed in the following years, when a
concrete support for investments in infrastructure will be given.
Within the 11th round of Instrument Western Balkans Investment (WBIF) held in June
2014, the project for drafting the Master Plan for Albania gas, supported by EBRD (€ 1.1
million) was approved. In the framework of a special round, Albania, as well as all other
countries of the Western Balkans, is identifying a limited number of possible project
proposals to be submitted to the Secretariat of WBIF within 31 August 2014.
Regarding regional and horizontal program IPA Multi-beneficiary, the Commission has
approved the “Multi country Indicative Strategy paper – 2014-2020” in the end of June, and
the package with projects of IPA 2014 programming is under approval by the European
Commission Services.
With regard to IPA Cross Border Cooperation (CBC), the Ministry of European Integration,
Operating Structure for the CBC programs, continued its work for the preparation of
programming of the new CBC Programmes under the new financial perspective IPA 20142020. The final drafts of CBC Programmes Albania-Montenegro, Albania-Kosovo 20 and
FYROM-Albania, reflecting the comments of the Commission and outcomes from the public
consultations were submitted during May 2014. As regards to the CBC Programmes with
20
This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ
Opinion on the Kosovo Declaration of Independence
Member States, the Joint Task Forces for the programming have been established and the
programming process is ongoing to be finalised within September 2014. During this period
several public consultations with relevant stakeholders were organized. For IPA CBC
Programme “Greece-Albania”, were organized three public consultations, on 30 May 2014 in
Gjirokastra, on 18 June 2014 in Korça and on 20 June 2014 in Vlora. As regard “BalkanMediterranean” programme, a consultative meeting with line ministries was organized by the
Ministry of European Integration, on 27 June 2014. In the frame of this programme a Joint
Task Force meeting was organised on 19th of August 2014.
Local government
Administrative-Territorial Reform
On 31 July 2014, the Albanian Parliament approved the law 115/2014 “On the
administrative-territorial division of the local government unit” introducing a new
administrative and territorial division of the country with 12 regions and 61 municipalities.
The existing administrative and territorial division of the country foresees 373 municipalities
and communes as well as 12 regions. With regard to regions, they remain the same in the new
map, number and functionality wise.
The process of designing the new administrative map was accompanied by a comprehensive
communication plan. Discussions sessions were held and opinions were gathered from
around 6200 actors and interest groups in the local level as well as official opinions submitted
from 746 representatives of local elected bodies. Furthermore, the public opinion was polled
around the countries, by means of a survey with 16,000 respondents.
The new administrative and territorial division will fully enter into force within the next local
government elections foreseen to be held on June 2015.
The new administrative-territorial law will be followed by introducing a new legal package
aiming at further strengthening the local government fiscal and financial position and giving
more power to local government in shared functions mainly in social services delivery and
primary education.
New strategy on decentralization of local government
All government efforts toward deepening the decentralization and strengthening the local
government units will be framed into a new decentralization and local government strategy
within 2014. The process of drafting the new decentralization strategy was open and
inclusive for all relevant stakeholders such as local government associations, CSOs, central
and local state institutions and last but not least the international organizations and donor
community such as EU Delegation in Tirana, Council of Europe, Organization for Security
and Cooperation in Europe, Swiss Cooperation Office in Albania, Sweden Cooperation
Office, UNDP etc.
Ad Hoc Parliamentary Committee on Administrative-Territorial Reform
The reform aims to give a new impetus to the economic and social development of the local
government units, to increase the standard of living and economic level of local
entrepreneurship. The reform, which was conducted by the Ad Hoc Parliamentary Committee
on Administrative-Territorial Reform (hereinafter "Ad Hoc Committee") in close cooperation
with the Minister of State for Local Issues, after a wide consultation with groups of interest,
civil society and representatives of municipalities and communes, succeeded in finalizing the
administrative division of the territory of Albania in 61 local government units
(municipalities).
In order to enhance the transparency of its activities, the Ad Hoc Committee has opened a
link on the official website of the Assembly www.parlament.al. 21 This link reflected all
activities conducted by the Ad Hoc Committee, including official documents, such as the
decisions of Assembly regarding this committee, the decisions taken by the Ad Hoc
Committee, minutes of meetings and all the discussions and proposals submitted by the
Minister of State for Local Issues, non-profit organizations, government institutions, as well
as interest studies on the new Albanian administrative-territorial division. The link also,
published all official announcements for the organization of the hearing sessions that the Ad
Hoc Committee held according to the agenda approved by it.
The link published the five options of maps that were proposed by the Minister of State for
Local Issues and the decision of Ad Hoc Committee (decision no. 4 of 22 May 2014) that
approved the 39/47 option, which underwent the consultation process by receiving feedback
from local communities on this division, in accordance with the provisions of the
Constitution and the law no.8652/2000 "On the organization and functioning of local
government", as amended.
During the period April-May 2014, the activity of the Ad Hoc Committee was very intensive,
have been organised 11 out of 15 meetings in total of the Ad Hoc Committee. Most of these
meetings have been public hearings with representatives of local government units (2 public
hearings with the participation of 6 Mayors22 and the Chairman of the Association for Local
Autonomy), representatives of non-profit organizations with experience in local governance
and decentralization issues as well as in the field of business (3 public hearing with the
participation of 13 NGOs), representatives of the constitutional institutions or those
established by law (1 hearing session with the participation of 3 constitutional or established
by law institutions23) as well as representatives of international organizations and agencies
operating in Albania and with international experts (2 hearing sessions with the participation
of 8 representatives of these agencies/organisations).
All participants in the hearing sessions (representatives of local government, non-profit
organizations, constitutional or established by law institutions), expressed the opinion that the
administrative-territorial reform constitutes a necessity for Albania and they supported the
21
http://www.parlament.al/web/KOMISIONET_E_POSACME_PARLAMENTARE_53_1.php
Mayor of Durrës, Elbasan, Fier, Lezhë, Pogradec and Gjirokaster.
23
People’s Advocate, State Supreme Audit and HIDAA.
22
work of the Ad Hoc Committee and the Minister of State for local Issues, along with the
group of local and foreign experts to finalize this process.
Ad Hoc Committee held a special hearing session with representatives of international
organizations and agencies operating in Albania and with donors who support this reform
(representatives of the Office of the Council of Europe, the EU Delegation in Tirana, OSCE
presence, UNDP, USAID, Swiss Agency for Development and Cooperation, Austrian
Development Agency, Office of the Italian Development Cooperation, etc.). The UNDP
Director, on behalf of the international organisations in Albania, expressed the support for
this reform.
On 16 May 2014 Ad Hoc Committee held an open meeting, to publicly present the proposals
(5 options) for the new Albanian administrative-territorial division by Minister of State for
Local Issues. The Minister of State for Local Issues, apart from the vision, aim and principles
of the reform, introduced the outline of the path of the reform and submitted the methodology
and the application of criteria for functional areas, in order to arrive to the introduced 5
proposed options of maps, which contain respectively: 30 functional areas (option 1), 39
functional areas (option 2), 47 functional areas (option 3), 57 functional areas (option 4) and
63 functional areas (option 5). The Ad Hoc Committee took the necessary time to be
familiarised with the proposed options and to decide on the appropriate option.
At the meeting of 22 May 2014, Ad Hoc Committee, in an open meeting and with the
presence of Minister of State for Local Issues, developed the procedure for the approval of
the mapping model for administrative territorial division. After discussions, the Ad Hoc
Committee unanimously approved the intermediate version with 39/47 functional areas of the
map on the new administrative-territorial division. Ad Hoc Committee tasked the Minister of
State for Local Issues to follow the process of public consultation and to receive input from
local community units in the entire country for this division, in accordance with the
provisions made in the Constitution of the Republic of Albania and the Law No 8652 of
31.07.2000 "On the organization and functioning of local government", as amended. The
process of consultation with local government units was intense and lasted 2 months (MayJuly 2014). Members of the Ad Hoc Committee and the Minister of State for Local Issues
participated in consultation meetings with local governments to introduce the mapping model
approved by the Ad Hoc Committee and to get opinions of local communities and Albanian
citizens on the best options to be applied.
The option 39/47 approved by Ad Hoc Committee was sent to all local government units
(municipalities and communes) of Albania. Until 22 July 2014, Ad Hoc Committee received
286 answers (or 76% of the total number of municipalities and communes in the country) out
of 373 municipalities/communes. The answers where received from the chairman of the local
government unit or councils, or from both authorities.
The Ad Hoc Committee received a total of 393 formal answers: 263 from heads of
municipalities/ communes and 130 from councils of municipalities/ communes. This is
equivalent with the 52.5% of the total representative and executive authorities of the
municipalities and communes in the country. The answers received from municipalities and
communes are scrutinised in detail by Ad Hoc Committee, and divided in PRO and/or CONs
opinion with respect to the variant 39/47.
The summary of the received recommendations/opinion by the Ad Hoc Committee, in
statistic is as following:
 257 responses by the heads of the municipalities/ communes and councils of
municipalities/ communes (or 66.5% of total responses received) were PRO the
reform (160 of which were PRO since at the beginning, 56 were PRO after including
their arguments and 41 PRO are considered in support of the reform);
 136 responses by heads of municipalities/ communes and councils of municipalities/
communes (or 33, 5% of total responses received) were CONs of the reform (57
answers provided arguments, while 78 are answers that did not provide any
argument).
The Ad Hoc Committee, with its Decision No 5 of 17.07.2014 approved the final version of
the map of the new administrative-territorial division of Albanian with 61 municipalities,
after the 2-month public consultation period on the 39/47 option. The decision with the
respective map and tables was sent to the Council of Ministers, and approved unanimously by
the latter.
On 23 July 2014, with the Decision No 6, Ad Hoc Committee proposed the draft law "On
administrative-territorial division of the local government units in the Republic of Albania"
to the Assembly. This legislative initiative was officially filed in Parliament by Ad Hoc
Committee on 23 July 2014, as a group of MPs’ proposal, based on Article 81 paragraph 1 of
the Constitution. This proposal is approved in the plenary session held on 31 July 2014.
The draft-law was the outcome of several months of intensive works of Ad Hoc Committee,
in close cooperation with the Minister of State for Local Issues and STAR project, assisted
and funded by international donors. This legislative initiative was materialized through a
transparent, all inclusive and open cooperation with all political factors and actors, local
governments, groups of interest and communities and with the best Albanian and
international expertise. In compliance with the provisions of the Constitution and the organic
law of the local government, with the support of STAR Project, was organised the biggest
national survey with a sample of 16 000 people. The survey aimed to get the communities
opinion on the administrative-territorial reform. It resulted that over 67% of respondents were
in favour of the administrative-territorial reform.
The draft-law "On administrative-territorial division of the local government units in the
Republic of Albania" contains 5 articles and the accompanying maps and tables.24
The draft-law includes detailed tables and maps for each district (qark), explanatory report
and the accompanying annexes, that are part of the legislative package as defined and
required by the specific provisions of Article 67 of Law No 8652 of 31.07.2000 "On the
organization and functioning of local government", as amended.
24
http://www.parlament.al/web/PROJEKTLIGJI_P_R_NDARJEN_ADMINISTRATIVO_TERRITORIALE_T_
NJ_SIVE_T_QEVERISJES_VENDORE_N_REP_17823_1.php
Drafting and implementation of the administrative-territorial reform approved, is in line with
the constitutional and legal requirements set out in:
 Constitution of the Republic of Albania;
 European Charter of Local Autonomy;
 Law No 8652 of 31.07.2000 "On the organization and functioning of local
government" as amended;
 Recommendation (2004) 12 of Council of Europe Committee of Ministers for the
boundaries reform process and structures of local and regional authorities.
The Draft-law respect all the requirement set in the Constitution and Parliamentary Rules of
Procedures, as well as in the decision no. 1/2014 "On establishment of the Parliamentary Ad
Hoc Committee on Administrative-Territorial Reform in the Republic of Albania", as
amended.
According to Article 81, paragraph 2, letter "f" of the Constitution the law on administrative
division has to be approved by a qualified majority (three fifths of all members of the
Parliament). The Assembly at its plenary session of 31 July 2014 approved by qualified
majority (88 in favour out of 140 MPs) Law no. 115/2014 "On administrative-territorial
division of the local government units in the Republic of Albania".
1.4 Public administration reform
Following the obligations deriving from the new civil service legislation, pursuant to Article
67 of Law No 152/2013 “On the Civil Servant” and the Decision No 116 of 3.05.2014 of the
Council of Ministers “On the status of civil servants and current employees who benefit the
civil servants status, according to Law No 152/2013 ‘On the Civil Servant”, the Department
of Public Administration, is currently working on the declaration of the employment status
for each civil servant/employee of the institutions of state administration. Based on the
deadlines set forth in the above-mentioned Decision of Council of Ministers, the Department
of Public Administration has sent an official request to the Prime Minister’s Office and all
line ministries (with a calendar attached on the indicated dates for each subordinate
institution), requesting them to deliver to DoPA the required information for each civil
servant/employee of subordinate institutions as provisioned in the relevant legislation. After
receiving the above documentation, DoPA verifies the fulfilment of the criteria set out in the
relevant legislation, on a case by case basis, and takes the decision to declare the employment
status of each employee. In case the criteria are met according to Law No 152/2013 and the
by-laws for its implementation, DoPA shall declare whether:
 The employee is granted the civil service status;
 The employee is under probation period;
 In case the employees do not fulfil the civil servants criteria, DoPA informs the
human resource management units of the relevant institution, which subsequently
decides for the termination of employment for these employees.
At present, the state institutions have started reporting according to the respective deadlines
and DoPA’s working groups established for this process are currently reviewing and
verifying the documentation. There are approximately 180 institutions with 9000 employees
(including line ministries) that are going through the process of declaration of the
employment status for each civil servant/employee. Up to now, about 6000 employee files
are already inspected by DoPA. Based on the deadlines set by Decision of Council of
Ministers No 116 “On the personnel status and current employees profiting from civil servant
status, according to law no. 152/2013 “On the civil servant”, the process is foreseen to
terminate by the end August 2014. The process was delayed from June to August, but is still
in compliance with the deadlines set forth in the CoM, due to the fact that several employee
files lacked relevant/required documents and DoPA in these cases returned the documents for
completion to the respective institution and held several formal and informal communications
to ensure proper compliance with the CSL obligations.
Additionally, Decision of Council of Ministers No 116 “On the personnel status and current
employees profiting from civil servant status, according to law no. 152/2013 “On the civil
servant”, has been amended. Under these amendments, employees of the subordinate
institutions that are part of the state administration which at the moment of the status
declaration do not fulfil the criteria of the required level of higher education diploma, they are
given a period of two years’ time to fulfil the higher education requirement. After the
termination of this period, if the employees have not fulfilled this requirement, DoPA informs
the human resource management units of the relevant institution, which subsequently decides
for the termination of employment for these employees.
As a result of these amendments the inspection process is not yet finalized and DoPA has sent
a draft-decision to the CoM in order to extend with 45 days the deadline for the finalization
of the personnel files’ inspection and is expecting its approval.
In order to ensure open and transparent concourse in the civil service, DoPA has worked
intensively for the preparation of the guideline for recruitment, promotion and transfer of
civil servants, on the basis of the new Civil Service Law and Decision of Council of
Ministers On the procedures of recruitment, probation, transfer and promotion of civil
servants at the expert level, low- and mid-level management category.
In this framework, during July 21 – 23 July and 4-7 August, DoPA under the assistance of
SIGMA organized two workshops for the preparation of the guideline on recruitment and
after an intensive work the Guideline no. 4 date 13.08.2014 “On the procedure for filling in
vacant positions in the civil service through the procedure of lateral transfer and on the
procedure for entering the civil service of executive position through open competition” was
finalized and published on DoPA’s webpage: www.dap.gov.al.
As such, based on the CSL legal provisions and guidelines, the recruitment process has
initiated and vacant positions according to on the institutional planning have been announced
and will be organized accordingly.
Additionally, under SIGMA assistance and recommendations that were provided during the
workshop organized on 4-7 August, DoPA is working for the preparation of the guideline on
the Top Level Management Corps (TMC). After the preparation of the guideline, DoPA will
deliver it to SIGMA on 8 September 2014, for further comments and recommendations. Once
the guideline is finalized, it will be published on DoPA’s webpage and the recruitment
procedures will continue according to the legal provisions.
In view of drafting the Inter-Sectoral Strategy of Public Administration Reform, 2014 - 2020,
DoPA is currently being assisted by SIGMA in order draft the PAR Strategy, in view also of
widening its scope, proper costing of its activities and linking it with mid-term budget
program, IPA programming and other sectoral strategies. At present, DoPA, under the
assistance of SIGMA and in cooperation with institutions that will be part of the main
pillars/areas of the strategy, prepared a Policy Paper that will be used as a framework
document for the preparation of the PAR Strategy. Additionally, the Interinstitutional/ministerial Group of the PAR Strategy composed of Ministers and Vice
ministers has been established and its first meeting was held on 23 July 2014, chaired by the
Minister of State for Innovation and Public Administration. DoPA is working for the
establishment of the Technical Group and the Advisory Group that will be involved in the
preparation of the PAR and will soon proceed with the drafting of the first draft-PAR
Strategy 2014 – 2020. The entire process which is needed for the review, consultation and
submission for approval of the draft strategy is expected to be completed in December 2014.
In terms of improving and extending the Human Resources Management Information
System/HRIMS, during the reporting period DoPA was working intensively for making
functional the HR module in 16 ministries and Council of Ministers. DoPA has completed
entering adopted structures in the system for the 16 line ministries and it has assisted
personnel, assigned to each ministry, in the process of entering the data into the system. In
this context and with a view to updating application and maintenance DoPA will be
supported by the IPS Trust Fund in the process of developing and extending the system and
making the system compliant with the new Law” On civil servant”. In this context, the Terms
of Reference for the IPS Trust Fund project have received the official “no objection” from the
World Bank, the tendering process was executed during June-July and the contract was
signed by August 2014 and the implementation of the project has now initiated.
The Albanian School of Public Administration has continued to carry out the training
activities according to its training plan supported by the foreseen budget and in cooperation
with the projects financed by the European Union (PPF and SMEI III), etc. In order to ensure
its proper functioning ASPA has drafted the training plan for 2014, defining target groups
and mandatory training and development period, made functional the training premises in the
ASPA building and established the partnership for drafting and implementation of training
curricula for the Top Level Management Corps, TMC. ASPA is now equipped and completed
with training facilities and information technology tools for conducting training activities:
 4 training rooms equipped with IT tools with a capacity of 100 CS;
 Rooms with Internet access (Wi-Fi access).
As such, for the period May – July 2014 compulsory trainings were carried out that reflect
the greatest and immediate needs for training of public employees, as follows:
 51 training courses, 163 days and 1108 civil servants of central and local
administration were trained;


Review of curricula and conduction of trainings for the civil servants on probation
period; 8 training courses, 90 training days and 225 CS were trained and tested;
Training of the staff of line ministries organized in cooperation with the institutions
and monitored by ASPA; 280 training courses were conducted and 1,260 CS in the
Prime Minister’s Office and in the line ministries were trained.
1.5 Judicial System
(See also Chapter 23 — Judiciary and fundamental rights)
Legislative measures
On 10 August 2014, the Parliament of Albania approved Law no. 77/2014 “On some addenda
and amendments to law no. 10039 dated 22.12.2008 “On legal aid” amended” and Law no.
78/2014 “On organization and functioning of the Centre of Official Publications”. These two
laws refer to Priority no. 5 of the “Roadmap” concerning the improvement of protection of
human rights.
The law “On organization and functioning of the Centre of Official Publications” foresees a
higher security level of the acts published in the official Gazette and guaranteed accuracy of
information published therein.
System of evaluation of judges
During the reporting period, the High Council of Justice (HCJ) conducted 8 plenary meetings
on the following dates: 28.05.2014; 30.05.2014; 30.06.2014; 07.07.2014; 11.07.2014;
16.07.2014; 21.07.2014 and 23.07.2014. The updated figures for the ongoing process are
shown in the table below:
The process of judges’ evaluation 2007-2009
Acts adopted by the HCJ
Acts known by judges waiting to be reviewed by the HCJ
Exempt from assessment for various reasons
Acts in finalization by the Chief Inspector
In the final process of drafting the report by Inspectors
In the process of selecting and observing courts files by Inspectors
Number of judges, for which documentation is submitted by the courts and is
assigned the responsible inspector
TOTAL
43
21
1
9
16
23
50
163
Appointments, Transfers and Promotions
Pursuant to the Decree of the President of the Republic No 7818 of 16.11.2012 “On
determining the number of judges for each district, appeal and administrative courts, as well
as land allocation of powers and the administrative headquarters of the court” was a priority
of the work during the HCJ meetings.
In all its decision-making activities, the Council showed willingness to promote only the best
of the judicial system, since every transfer or promotion is applied only for those judges
evaluated "Very good" , which is also a subjects to the rules of decision no. 274/2, date
16.02.2011 "On the organization and functioning of the Commission to Review the
Candidates for Judges", amended and the rules of Decision No 269/2 of 27.09.2010 “On
detailed rules for the mandatory scoring system for implementation in the selection of
candidates to fill vacancies on the Appeal courts and the courts for serious crimes”, as
amended. Specifically:
1. In the meeting on 30 June 2014, the Council, by Decision No 76, transferred one
judge from the District Court of Kukësi, on the District Court of Tirana. Also with the
same decision, the HCJ has proposed to the President of the Republic the appointment
of two magistrates as judges in the District Court of Tirana, who are currently
promulgated by the President of the Republic and they are carrying out their duty;
2. In the meeting on 7 July 2014, the High Judicial Council, by Decision No 87,
transferred two judges of the District Court of Lushnja. One judge was transferred to
the District Court of Tirana, and the other one to the Administrative Court of First
Instance of Durrësi;
3. In its meeting on 11 July 2014, the HJC by Decision No 97 proposed the appointment
of a judge to the Court of Appeal of Korça to the President, a proposal that is decreed
by the President of the Republic;
4. The High Council of Justice, in its meeting on 23 July 2014 by Decision No 113
proposed to the President the appointment of two judges in the Appeal Court for
Serious Crimes and by the Decision No 114 the appointment of one judge in the First
Instance Court of Crimes serious.
5. By Decision No 56 of 28.05.2014, the Council approved the request of Judge Albana
Boksi, to return to previous function as the judge of the Appeals Court for Serious
Crimes of Tirana.
During the reporting period the Council has followed with priority the appointments on
chairman functions in some courts and specifically the HCJ appointed 12 chief judges on first
instance courts, including the Chairman of the First Instance Court Serious Crimes Court and
Chairman of the First Instance Administrative Court of Tirana.
During the reporting period the High Council of Justice has appointed the following
chairmen:
 District Court of Kukësi (Decision No. 58, date 28.05.2014);
 First Instance Court of Serious Crimes (Decision No. 59, date 28.05.2014);
 District Court of Saranda (Decision No. 69, date 28.05.2014);
 District Court of Berati (Decision No. 74, date 30.06.2014);
 District Court of Lezha (Decision No. 75, date 30.06.2014);
 First Instance Administrative Court of Tirana (Decision No. 85, date 07.07.2014);
 District Court of Kruja (Decision No. 95, date 07.07.2014);
 District Court of Kavaja (Decision No. 96, date 11.07.2014);
 District Court of Lushnja (Decision No. 109, date 23.07.2014);
 District Court of Tropoja (Decision No. 110, date 23.07.2014);


District Court of Fieri (Decision No. 111, date 23.07.2014);
District Court of Korça (Decision No. 112, date 23.07.2014).
So far the process of appointment of presidents of courts for all 347 courts is as follows:
 18 Chairman were appointed out of 23 First Instance Courts, including the First
Instance court of Serious Crimes;
 6 Chairman were appointed out of 7 Appeal Courts including the Serious Crimes
Appeal court;
 In 6 Administrative courts of First Instance, 1 Chairman was appointed at the
Administrative Court of First Instance of Tirana;
 In 1 Administrative Court of Appeal, the Chairman was appointed.
Administrative courts
Measures on the efficient functioning of the administrative courts have been taken. During
the reporting period, 29362 administrative cases are recorded and over 13359 decisions are
taken of which:
 first instance administrative courts (Tirana, Vlora, Shkodra, Durrësi, Korça and
Gjirokastra) have recorded 14,660 cases and they have taken 9,365 decisions;
 the Court of appeal of Tirana has recorded 6,416 cases and it has taken 3,230
decisions and;
 administrative college of the High Court has recorded 9,286 cases and it has taken
764 decisions.
Ministry of Justice took the initiative to amend the Law No 40/2012 “On organization and
functioning of the administrative courts and adjudication of administrative disputes”, which
should increase of effectiveness of the work of the Administrative College, in order to ensure
quick adjudication of cases, and more rational and effective use of the judicial panel and
human resources of the High Court. Moreover, this draft law provides for the procedure of
recruitment of the legal assistants in the administrative courts and regulation of their status.
The budget of the judicial administration for 2014 is approved and it includes the budget for
28 employees who will serve in the position of the legal assistants of the administrative
courts.
At the initiative of the Ministry of Justice, the Council of Ministers, approved the Decision
No 302 of 21.05.2014, by which the surface area of 172 m2, under the denomination “Former
Customs Directorate of Durrësi”, has been transferred for use to the First Instance
Administrative Court, Durrësi (published in the OJ. 80 of 4.06.2014). These premises have
been made suitable for the offices of this court. Moreover, in reply to the request of the
Ministry of Justice, the Municipality Council of Tirana approved Decision No 8 of
30.04.2014 on approving the granting for use of the building of the former-directorate of the
Secondary School Campus of Tirana in order to use these premises as the Administrative
Court of Appeal. The legal procedures for this process are pending.
Moreover, work has been ongoing for the installation of the electronic system in the
administrative courts. A specific fund for the installation of the electronic system of
management of judicial cases in 7 administrative courts was approved. In July 2014 the
procurement phase was completed and the winning company that will implement ICMIS
system in the administrative courts was selected. Ministry of Justice, through this project,
aims at the initial installation of the ICMIS system, training of the administrative and judicial
staff, ongoing technical assistance and maintenance of the system.
On the other hand, in June 2014, JUST project, which is cooperating for the installation of the
audio recording system, foresaw an addition to the existing projects in order to extend the
installation of the audio recording system even to the administrative courts.
Disciplinary proceedings
During the reporting period, the Ministry of Justice deposited the request for disciplinary
proceedings against 5 judges to the HCJ, proposing the disciplinary measure of “dismissal
from duty”. In relation to these requests, the HCJ decided the dismissal from duty of 1 judge;
the disciplinary measure “reprimand with warning” for 1 judges and it has overruled the
requests in relation to the three other judges.
The requests for disciplinary proceeding of the Minister of Justice were examined by HCJ in
4 meetings (28.05.2014; 07.07.2014; 16.07.2014 and 21.07.2014). During these meetings the
requests were deliberated for 15 judges in respect of whom it was decided the adoption of the
following disciplinary measures:
 Dismissal from duty against 1 judge (Sh.Ll);
 Reprimand against 2 judges (L.H., K.A.);
 Reprimand with warning against 5 judges (A.Y., B.M., B.K., H.Ç., I.P.);
 Overrule of the requests for disciplinary proceedings against 6 judges (V.D., I.H,
M.K., GJ.GJ., K.DH., K.Ç.);
 Dismissal of the disciplinary proceedings against 1 judge (A.Z.).
20 judges are proceeded against disciplinarily: 12 judges are subject to the disciplinary
measure of “dismissal from duty”; 5 judges are subject to the disciplinary measure of
“transfer for 1-2 years to another court”; 2 judges are subject to the disciplinary measure of
“reprimand with warning” and 1 judge is subject to the disciplinary measure of “demotion in
office for 1-2 years”. Following the requests submitted by the Ministry of Justice, HCJ
decided: dismissal from duty of 2 judges; reprimand with warning against 8 judges;
reprimand against 2 judges; transfer to another court against 1 judge and it dismissed
disciplinary proceedings against 1 judge. While it has overruled the requests for disciplinary
proceedings against 6 other judges, in relation to which the Minister of Justice had requested:
dismissal from duty against 5 judges and reprimand with warning against 1 judge.
For detailed information regarding the disciplinary proceedings please refer to Annex I.1
High Court
During the reporting period, the High Court has taken several measures aiming at further
improvement of organisation of work and increase of efficiency and quality of its activity. At
institutional level, several organisational measures were taken to quickly and effectively
address the problem of the backlog accumulated throughout the years.
In this regard, High Court Chair issued an order to set up judicial panels consisting of judges
of the criminal and administrative colleges to address all the civil cases of 2010 which had
been pending (a total of 240 cases), with priority, during May- June 2014. Within the
reporting period, the volume of these cases was completely removed from the backlog of the
High Court. This measure was taken along other measures for the reduction of the backlog of
cases, including the completion of the staff with legal assistants, adjudication of cases
following their order, internal organisational changes, etc.
As a result of these measures, compared to the previous year, during which there were still
cases pertaining to 2007-2008, the court has already judged the civil cases from 2011-2012
and the criminal cases of 2013.
In the same framework, work has started to identify all the cases in the High Court which
subject matter is employment conflict, in order to proceed with their adjudication, with
priority, in September 2014.
In July 2014, as a result of the structural changes of the High Court, the process of drafting of
the Rules of Procedure of the High Court was completed. This document sets clearly the
duties and responsibilities of all the structures of the High Court. The draft has been
distributed for opinion to all judges.
The recent amendments to the legal framework in relation to the adjudication of
administrative cases raised the need to improve and adapt the case management system with
these amendments. The working group set up for this purpose analysed the system and issued
respective recommendations. Following this, the procurement procedures were completed in
July and the operator was selected working on the technical changes to the system.
Special focus is given to the building of the professional skills of the High Court in order to
increase the quality and effectiveness of its work. To this purpose, the following activities are
carried out:
 In the framework of the joint project of the Council of Europe and European Union
“Increasing efficiency of the Albanian Justice System”, a study visit was organised to
Strasbourg in July 2014. Several judges and legal assistants of the High Court
attended the study visit. The meetings of the Albanian delegation with representatives
of the Council of Europe and Strasbourg Court were focused on the implementation
of recommendations and decisions of the Venice Commission, the worth and
importance of monitoring reports and recommendations of the Council of Europe,
execution of judgements of the Strasbourg Court and also the case-law in which
Albania is a party;

Following the project of cooperation “Increasing efficiency in administration of
justice in the High Court of Albania”, two trainings were organised in the High Court
by the Government of the Netherlands and Asser Institute in June 2014. One of the
trainings was organised with the legal assistants of the High Court. In its focus were
topics linked to the European Union law including interaction of the EU law with the
national courts, its implementation by the non-Member states, international judicial
cooperation, etc. The other training was organised with the administrative staff of the
High Court. The objective was to make the staff familiar with the rules of ethics of the
civil servants and their application as well as the new amendments to the law on the
civil servant status.
National Judicial Conference
In April 2014 the meeting of the National Judicial Conference was held. The novelty in this
meeting, foreseen in the agenda, was the organisation of three panels (civil, criminal and
administrative), in which the judges discussed and shared their points of view and experience
concerning the problems emerging in the case-law, in order to address them in the future in a
unified manner.
During the reporting period, NJC in the framework of this cooperation, within the area of its
competence, has performed the following activities:
 As a result of several important legal initiatives in relation to the judicial system, in
concrete terms, the NJC gave opinions and proposals on the draft law on amendments
to the High Council of Justice; draft law on the System of Evaluation of Judges; draft
law on amendments to the Law on Adjudication of Administrative Cases; draft law on
the Code of Administrative Procedures.
 The JUST funded project for the creation of the official website of NJC has started. It
will present and update information concerning the activity of this institution and the
judicial system in general. It will serve as well as a means of communication and
exchange of opinions and ideas by all the judges.
 Moreover, the Committee of Ethics, Verification of Mandates and Ongoing
Professional Improvement of NJC, following the requests addressed by the High
Council of Justice, was convened and has given two advisory opinions concerning the
compatibility of the actions performed by certain judges with the rules of the Code of
Judicial Ethics.
Training
Initial Training Program
On 21 July 2014, the academic year 2013 – 2014 ended for the candidates for judges and
prosecutors. In the first year, 18 academic subjects of different law fields were completed and
the candidates successfully finished the final exams. In the second year, the school held 20
training courses for the candidates for magistrates and they also successfully completed the
preparation and presentation of their thesis. In the third year, the provisionally appointed
young judges and prosecutors ended their period of professional internship and the
Pedagogical Council completed the evaluation for them.
Continuous Training Program
Realization of training sessions for judges and prosecutors in service
The School’s objective is to increase of performance of judges and prosecutors and the
orientation of the judicial system towards best European practices in providing qualitative
services to judges and prosecutors through continuous training activities.
For detailed information regarding the training programs during the reporting period please
refer to Annex I.2.
Publications
The School’s Department of publications publishes the law review “Jeta Juridike” every three
months, which is a scientific publication and treats a variety of important issues like: new
legislation, new court practices, theoretical and practical international experiences, articles by
new jurists, promotions of new legal literature, information on the school activities, etc. Also,
the School publishes other professional publications like professional books in framework of
the training programs and the juridical magazine every six months “Magjistrati” with extracts
from theses of candidates for magistrates.
For the period in question, the school has published the 4th edition of its law review for 2013
and “Magjistrati 6”.
1.6 Fight against Corruption
(See also Chapter 23 — Judiciary and fundamental rights)
During the reporting period, efforts continued in terms of improvement of the legal
framework, as well as in the direction of operational framework.
Pursuant to the main objectives of the National Strategy on Anti-corruption, the Action Plan
was delineated, undergoing a broad process of consultation with all stakeholders, including
line ministries, independent agencies, local government representatives, as well as civil
society and the business community. The Action Plan was drafted with the assistance of the
OSCE Presence in Albania as well as Assessment of the Anti-corruption Framework project
(ACFA) project and its final draft was presented in a public event on 16 July 2014. Further to
that, the last comments and suggestions on the improvement of the Action Plan were
collected from relevant actors and the final version of the Action Plan was ready by
beginning of August 2014. Both the National Strategy and the Action Plan on Anti-corruption
2014-2017 will be submitted to the Council of Ministers for approval in September 2014.
During August 2014, the Secretariat of the NCAC in close cooperation with the ACFA,
designed the reporting formats for the monitoring and implementation of the Action Plan that
will be used by the anti-corruption focal points. In parallel with the Action Plan drafting, the
capacities of some 70 anti-corruption focal points were raised.
During the first four months (April-July 2014), the NCAC has closely worked with the
ACFA project team. The project has completed four of the assessments: on Access to
Information, Whistle blowing, Political Party Financing and Immunities. Two TAIEX
missions were completed, on Whistle blowing (May 2014) and Declaration and Audit of
Assets (June 2014). Two more TAIEX missions (on intelligence led policing and proactive
investigations as well as on knowledge management, information exchange and coordination
mechanisms among law enforcement bodies) are scheduled for September 2014.
The National Coordinator against Corruption and the Ministry of Justice, with assistance of
the Dutch government, began drafting the Whistleblowers Protection Act. This act serves to
increase transparency of public and private institutions by creating a better environment for
employees to step up and denounce corruption cases. Prior to the drafting process was
initiated, a TAIEX experts’ mission was conducted in Tirana, in mid May 2014, providing
valuable recommendations regarding best international practices and applied international
standards. The first draft law was discussed on 9 June 2014, in a roundtable where
representatives of the central and independent institutions as well as international actors were
present. Ideas/suggestions collected from the TAIEX mission that took place in mid May
2014, the first roundtable and the second one with the civil society and business community
that is planned to take place on 12 September 2014, will further improve and shape the
proposed initial draft. Following to the roundtable with the civil society in mid-September
2014, the draft law will be further improved and will reflect not only suggestions coming
from the best international examples and Albanian counterparts but will also be based on the
policy and political decisions about the functions of the internal and external mechanisms that
will deal with whistle blowing. The latter will be broadly discussed in a conference, with
broad participation of interested parties and stakeholders in November 2014. The draft law
will be submitted to the Council of Ministers for approval in December 2014.
Developing the Online System of Corruption Cases Statistics and Track Record - the
National Coordinator on Anti-corruption, with the assistance of UNDP, is developing a web
based system that will ensure collection, processing, and analysis in real time on corruption
cases against public officials brought to prosecution and relevant administrative measures
taken. The system will generate analysis on trends of corruption cases among sectors and
cases being tried. The system is currently being designed and tested. It will be fully deployed
in October 2014. Following to that, training of relevant officials that will use the system is
planned to be carried out from October-November 2014.
Increased number of corruption related cases submitted to the Prosecution Office During first six months of 2014, various public institutions brought corruption and abuse of
office charges against 357 officials, civil servants and others. This number represents a 54%
increase as compared to the same period the previous year. It should be noted that out of 357
officials, 25 of them involve high level civil servants, such as a former Minister, Secretary
Generals and General Directors of line ministries.
Unified procedures for the corruption complaints/denouncements – An inventory and
assessment of the current state of play of portals and green lines as well as procedures applied
when citizens complain/denounce corruptive acts was carried out for the period from May to
June 2014. In September 2014, NCAC will set up a working group in drafting the unified
procedures for corruption complaints that will aim at further building public trust, increasing
transparency and ensuring accountability. The unified procedures will be ready by the end of
2014 and will be accompanied by a nation-wide awareness campaign.
In April 2014, the Government set up the Working Group on Improving the Public
Procurement System in Albania. The Working Group is comprised of line ministries and
procurement agencies’ representatives (Public Procurement Commission and Agency) and is
supervised by the National Coordinator against Corruption. The Group works to assess the
public procurement processes from the perspective of bidding companies, as well as from the
monitoring perspective of supervisory bodies, such as Public Procurement Agency and
Commission. The Working Group will propose needed measures to avoid existing
bottlenecks and shortcomings in Albania’s public procurement system thus increasing
transparency and ensuring fairness and inclusiveness in the bidding processes. Concrete
amendments to the legislation on public procurement are expected to be ready by beginning
of September 2014.
Implementation of recommendations stemming from the 4th round of GRECO
evaluation for Albania – Pursuant to the adoption of the 4th round of evaluation report for
Albania on 28 March 2014, during the plenary session of GRECO, the NCAC has been
closely working with relevant institutions, namely the Parliament, the High Council of Justice
and the General Prosecutor’s Office in dissemination of the report and its set of
recommendations, as well as in getting Albanian authorities approval for the publication.
Following to Albanian authorities’ authorization, the 4th round of evaluation report for
Albania was made public on 27 June 2014. Currently the office of NCAC has started the
process of advising the relevant institutions in undertaking the necessary steps to comply with
the recommendations and fulfil them within the compliance report phase.
Great efforts are done to prevent corruption also through economic measures. The National
Coordinator against Corruption in cooperation with the National Economic Council (NEC) is
spearheading an initiative to curb informal economy in Albania, a source of economic
stagnation and fertile ground for corruption and money laundering. The initiative will start
with a study that will baseline the status quo and provide recommendations for legal and
management reforms to cover the decrease of cash transactions and the improvement of local
financial reporting by strengthening adapt institutions through legislative accommodation of
best practices and new technologies now present in all developed economies. With the
assistance of EBRD, an Investment Climate as a sub-committee of the National Economic
Council is expected to be established.
Regarding the structural and functional changes of the former-DIACA and also information
about the Corruption Cases in the Public Administration, please refer to Annex I.3
The General Prosecutor’s Office as a constitutional body and an important instrument of the
criminal justice system, is contributing to the legal reform and in particular to the reform of
this system, for different addendums and amendments to codes and laws of the justice system
and stakeholders involved in this system, with a view at increasing efficiency in the Albanian
criminal justice system, in the fight against organized crime, corruption and economic crime.
Although the General Prosecutor's Office does not initiate a legislative process, is giving
opinions and suggestions on draft laws, for addendums and amendments to: the Criminal
Code, Code of Criminal Procedure , Law "On the High Council of Justice", Law “On the
School of Magistrates", Law “On the State Police", Law “On Legal Aid", Law “On the
Rights and Treatment of Prisoners/ Detainees”, Law "On the Prison Police", Law "On
Complaints and Internal Affairs in the Ministry of Internal Affairs", Law “On Weapons",
Law “On the Use of Firearms", and other laws sent for opinion by the Ministry of Justice,
Ministry of Internal Affairs and the Committee on Legal, Administrative Matters and Human
Rights.
The High Inspectorate of Declaration and Audit of Assets and Conflicts of Interest
(HIDAACI) as one of the independent public institutions, having an important role in the fight
against corruption, is facing the challenge of the increase of institutional performance, aiming
to strengthen the rule of law and the country integration towards the European family.
The recent legal amendments, published in the Official Gazette no.70, dated 20 May 2014,
provided much more investigative powers, both on assets declaration and conflicts of interest
issues; strengthened the institutional capacities, and increased public transparency.
To find the abovementioned legal amendments, please refer to Annex I.4.
2.2. Human Rights (please see also chapter 23- Cooperation in the field of Judiciary and
Fundamental Rights)
2.2.1 Observance of International Human Rights
(See also Chapter 23- Judiciary and fundamental rights)
Commissioner for Protection from Discrimination
Awareness- raising
On 30 June 2014, the Commissioner for Protection from Discrimination (CPD), in
partnership with the Albanian Helsinki Committee (AHC), organised the Conference
“Together for the protection and promotion of the rights of discriminated persons”, under the
project with the same title, supported financially by the Swiss Cooperation Office in Albania
and Civil Rights Defenders.
In the framework of PAMECA IV, trainings of police stations’ staff on the Law 10221/2010
“For Protection from Discrimination” and involvement of a Module on Equality and Antidiscrimination in the educational curricula of the Centre for Police Formation of Albania
(PFA) have been foreseen to be held during one year period. Also the calendar for trainings
of police officers of Police Stations been drafted, based on which trainings will be held in the
period from September - December.
On 12 May 2014, the Commissioner for the Protection from Discrimination organized the
seminar entitled "Equal Opportunities in the Economic Sector" with the support of UN
Women in collaboration with the Union of Chambers of Commerce and Industry of Albania
and Young Women Christian Association of Albania (YWCA). This seminar focused on
effective mechanisms of prevention and reporting systems in relation to gender
discrimination in the economic sector and means of cooperation between associations,
business operators and CPD on the measures for protection from discrimination in economic
sectors.
On 9.05.2014, the Commissioner took part in a consultative roundtable organized by the State
Police and UN Women with national and international partners and civil society on the
necessity to make the work environment safe from bullying and discrimination on grounds of
sex.
On 9 May 2014, the Commissioner published an article in the newspaper "Shqip", on the
topic "Integration in education of children with disabilities - Philosophy and legal
obligation".
On 28 - 30 July, 2014 the Commissioner participated as a lecturer at Summer School
"Academy of Minority Rights" organized by the Albanian Human Rights Group with the
support of the German Embassy.
Legislative recommendations
On 18.06.2014, the CPD sent, through the official letter No. 594 Prot, , legislative
recommendations on the Electoral Code, proposing:
 To add the grounds of discrimination as provided in the Law “For the Protection from
Discrimination”, in article 3 paragraph 3 where is reflected the principle of nondiscrimination in the Electoral Code.
 To add, among others, the Commissioner for Protection from Discrimination, as an
institution which has the right to appoint observers.
 Reformulate Article 67/6 of the Electoral Code: “For each electoral zone, at least
thirty per cent of the multi-name list and one in every three names on the multi-name
list shall belong to each gender. The subject that submits the list declares the places,
according to the gender quota, in order to implement the exemption under paragraph 2
of Article 164 of this Code".
 In Article 80, paragraph 2, after the first sentence of this paragraph, to add a sentence
with the following content: “The Public Radio and Television covers the electoral


campaign in accessible formats and technologies appropriate to different kinds
of disability”
Denomination of article 108 of the Electoral Code to be amended from “Voters who
do not vote” to "Voters with disabilities"
To find a legal solution through specific adjustments to the Electoral Code to
guarantee the right to vote for voters who cannot go out of home, in order to be
present at the polling stations.
In addition, in order to improve the legislation for the elimination of discriminatory
provisions with gender basis, the CPD has drafted recommendations for amendments to the
Law 22/2012 “On the registration of immovable property” and Law No 9344/2005 “On
assistance and social services”.
Regarding the review of complaints, please refer to Chapter 23.
2.2.3 Economic and social rights
(See also Chapter 23- Judiciary and fundamental rights)
Labour legislation
The Draft of Labour Code has been sent for opinions to the line ministries, and their remarks
and recommendations are reflected in the draft. The Draft of the Labour Code was uploaded
in the online system, to go through further stages for its approval.
Social dialogue
The National Labour Council (NLC) held a meeting on 16 June 2014, where the following
issues were discussed:
 Review and approval of the draft law "On the determination of the age of the
retirement for mining workers”.
 Pension reform.
 Fund National Employment and Skills Development.
During June 2014, the Tripartite Commission on Wages, Pensions, Social Protection and
Employment, and Vocational Education Training held meetings to preliminarily discuss the
above mentioned issues.
The Ministry of Social Welfare and Youth in cooperation with the International Labour Office
organized a 2 day Tripartite Seminar regarding "Improvement of the system effectiveness for
labour disputes settlement in Albania", on 20-22 May 2014. The mediators of the Regional
Employment Offices, Heads of state Offices of Reconciliation, representatives from the
Ministry, representatives of trade unions and employers’ organizations which are part of the
system structures for Prevention and extra judicial settlement of labour disputes in Albania
were trained.
The Ministry of Social Welfare and Youth in collaboration with the International Labour
Office, organized the National Labour Conference on "Sustainable wage policy in Albania",
in July 2014. This event was co-chaired by the Director of ILO Office for Central and Eastern
Europe in Budapest (DWT /CO-Budapest), Labour policy expert for the Integrated Labour
Market, Labour relations and Conditions (INWORK-ILO), representatives from Trade
Unions, Employers' organizations and representatives of state institutions.
Social Protection
Based on the amendments of the law No. 47/2014, on some amendments and additions to the
law no. 9355 dated 10.03.2005 “On social assistance and services” in the frame of the reform
on social assistance modernization, the following bylaws were adopted:
 Decision of the Council of Ministers No 375 of 11.6.2014 “On some amendments and
addenda to Decision No 904 of 12.12.2012, of the Council of Ministers “On defining
criteria, procedures and documentation for benefiting economic aid in pilot areas”;
 Decision of the Council of Ministers No 376 of 11.06.2014 “On some amendments
and addenda to Decision No 787 of 14.12.2005, of the Council of Ministers, “On
defining criteria, procedures and the amount of economic aid benefit”, as amended;
 Instruction of the Minister of Social Welfare and Youth No 8 of 23.06.2014 “On the
calculation of economic aid benefit”;
 Instruction of the Minister of Social Welfare and Youth No 9 of 23.06.2014 under the
Decision of Council of Ministers No 904 of 12.12.2012 “On defining criteria,
procedures and documentation for benefiting economic aid in pilot areas”;
 The Law “On regulated Professions”;
 The Law “On the Order of Social Worker in the Republic of Albania” has been
adopted in the Council of Ministers and is being sent for discussions in Parliamentary
Commissions.
It is being piloting the new economic aid scheme through a digitalized system and a unified
scoring formula for families and individuals in need. A communication campaign was
developed during this period in three pilot regions (Tirana, Elbasani and Durrësi) in order to
inform the applicants on the procedures and documentation needed.
Indexation of disability benefit based on the consumer price index. Currently MSWY is
drafting 3 guidelines of the Minister on disability payment indexation.
MoSWY is coordinating the formalization process of Albanian Sign Language. In the
framework of this initiative, MoSWY is studying the Albanian domestic legislation to be sure
that it is in line with UN Convention for the Rights of Persons with Disabilities and sending
recommendations to central institutions to guaranty the service of interpretation in Albanian
sign language in all areas of life and adopting the legislation.
The reform of social care services is under way and with the assistance and expertise of
UNICEF, MoSWY is designing the new model of providing social care and protections for
vulnerable groups of Albanian society. This is planned to go in line with administrative and
territorial national reform. It has being prepared a stock and flow study with expertise offered
by UNICEF and Swiss Cooperation.
Deinstitutionalization of some social care services is also in progress. In the frame of IADSA
project implemented with the support of Italian government, MoSWY is promoting the
community daily centres for parentless children in Shkodra, elderly persons in Shkodra and
persons with disabilities in Tirana. MoSWY is also making the ground to promote the
employment of persons with mental challenges which are going to get vocational trainings
and later assisted to enter in protected jobs.
The legal framework on domestic violence and Structures on gender equality and domestic
violence
Objectives pursuant to National Gender Equality Strategy, Reduction of Gender-Based
Violence and Domestic Violence 2011-2015, there have been several activities under the
Action Plan with the aim of enhancing cooperation and strengthening the capacity of civil
gender at central and local level; intensifying efforts and concrete support for the application
of gender budgeting in the Medium Term Budget Planning; increased cooperation and joint
efforts with local government for operating the electronic monitoring system to address cases
of domestic violence. In the framework of increasing cooperation and strengthening the
capacities of gender employees in central and local level, MMSR has developed the
following activities:
 On 28 May 28 2014, a training of civil ministries with the theme: "The basic concepts
of gender and development of legislation in this area” was conducted. The training
was organized by MMSR in cooperation with the Department of Public
Administration and supported by UN WOMEN. A total of 18 people were trained.
 On 3 July 2014, the Consultative Meeting of MMSR network of gender employees of
municipalities within the Drafting Periodic Report IV National CEDAW was held.
The purpose of this meeting was to gather information on achievements, difficulties,
challenges and planned steps following terms of addressing the issues of protection of
the rights of women / girls and gender equality in Albania.
 From 9 to 13 June 2014 within the process of drafting the National IV Report on the
implementation of CEDAW Convention, the Vice President of the Committee on the
Elimination of discrimination against women Mrs. Pramila Patten visited Albania,
which was supported by UNFPA and UN WOMEN. Besides technical assistance, the
objective was to lobby for gender equality at the highest institutions of the state. In
this context, meetings were held with the Minister of MMSR, the MFA, members of
the National Council on Gender Equality (NCGE), with some representatives of the
Alliance of Women MPs, representatives of the Ombudsman and the Commissioner
for Protection from Discrimination, NGOs have to focus on the protection of women's
rights and non-discrimination.
 In July, the process of monitoring the National Gender Equality Strategy, Reduction
of gender-based violence and domestic violence started for the first six months of
2014, through collecting information from ministries and municipalities.
Pursuant to DCM dated 16.07.2012 “On gender mainstreaming in the medium term budget
program”, in collaboration with the Ministry of Finance and UNWOMEN are developed:


From 3-5 June 2014, a 3-day training was held in Durres on "Gender Budgeting in the
Medium-Term Budget Programme". In total, 25 specialists in budget planning
departments were trained;
During the month of July, some line ministries were preparing an analysis Policy
Statement PBA s gender salt budget for some programs. In process needs to be
analyze 9 budget programs.
Within the economic empowerment of women, on 1 July 2014, the Centre for gathering,
processing and marketing of medicinal plants and fruits of the forest was established, where
women, which have been on the list of economic aid, were employed. Establishment of this
centre was supported by UNDP.
Regarding the Domestic Violence, please refer to Chapter 23.
LGBT Rights
In the framework of the day against Homophobia and Transphobia, 17 May 2014, a number
of activities took place, organized from NGO-s of the field, with the participation of
representatives from state institutions and international organizations. In addition, the Week
of Diversity took place, with social and entertainment activities, film screenings, exhibitions
and working tables, the fair with publications for sensibilisation, finalizing with the Pride
Parade. The aim: the sensibilisation of the institutions and the public opinion and promotion
of equality through the concept of diversity to change and strengthen the public support
toward the marginalized groups.
On 23 July 2014, the MSWY organized a consultative meeting with NGOs of the LGBT field,
to discuss about the further cooperation and for the need of design a new plan for this purpose.
Children's rights
Establishment and Functioning of the National Council for the Protection of the Rights of the
Child in the central mechanism for protection of child rights
Aiming at improving the situation of children, the Ministry of Social Welfare and Youth and
the Ministry of Internal Affairs, in cooperation with the General Directorate of Police, central
and local institutions and NGOs took the initiative "Help for Families and Children in street
situations". This initiative aims to protect children from all forms of abuse, exploitation and
neglect, through a coordinated cross-sectoral intervention and a comprehensive integrated
approach.
The MoSWY, in collaboration with civil society, drafted a procedural guideline which defines
the procedures and steps to be followed by professionals, during managing the cases of
children on street situation. After a consultation process with representatives from central,
local institutions and civil society, the work in the field for the implementation of the
initiative and minimizing the phenomenon begun on 15 May 2014. Field teams are currently
focused on three municipal units in Tirana, that are identified as "hot spots", where is
concentrated the largest number of children in street situations.
The final draft of the Child Protection Protocol was prepared. It will be discussed in a Interministerial working group. The Working Protocol for Child Protection will serve as a
mandatory multiagency tool to conduct a multidisciplinary case management led by CPU’s
and supported by other professionals in the area. The institutionalization will ensure a
standardized approach to dealing with cases of children subject of abuse and in risk of abuse.
It is estimated to be approved in September 2014.
Training / workshops at central / local level regarding implementation of child rights
In the framework of the Initiative for the Protection of children in street situation, the Child
Protection Units of Tirana, together with workers of the Police force, and representatives of
civil society organizations, which are part of the mobile teams, have been trained on the
Guidelines of work with children in street situation.
Regarding activities in the field of protection of child rights please refer to Chapter 23.
Implementing the “Plan of measures against discrimination affected by sexual orientation and
gender identity 2013-2014”, Ministry of Education and Sports in collaboration with
subordinated educational institutions continued work to create a safe environment at schools,
without insults, social exclusion or inadequate treatment because of sexual orientation or
gender identity. During the reporting period, continued training of teachers and psychosocial
staff at school on the appearance of the trends in one gender or sexual discrimination and
findings how students can cope with this kind of phenomenon in school environment and in
everyday life. Particularly through the Instruction No 46 of 23.08.2013 "For the 2013-2014
school year university education system" all RED / EO are recommended to plan and
organize school and extracurricular activities to make aware students and teachers about
discriminatory sexual attitudes, gender or ethnicity, and their prevention. Currently (August
2014) new guidance is being prepared for the new school year 2014-2015 and work for
gender or sexual discrimination will continue to be ranked among the priorities of our
educational institutions.
MAS is developing inclusive policies and facilities for integration and inclusion of Roma
children in the educational system. In this context, preschool educational institutions
(kindergartens) are instructed to accept and register any Roma children, even when they lack
birth and immunization certificates. Through these measures it will be enabled the early
childhood education of Roma children with their long-term goal of their full inclusion in the
social life of the country.
In the framework of the strategy “On the reintegration of returned emigrants 2010-2015”. It is
noted a continued work to update the statistics for students coming from outside the country,
age, and their performance in teaching and educational process. These students were offered
the opportunity to improve knowledge in the mother tongue and other subjects in which they
need.
In compliance with Law 69/2012 “On university education in the Republic of Albania” and
provisions for Secondary Education, No 343 of 19.08.2013, children in foster care enjoy all
the rights and unlimited support to be educated in pre-university education institutions. For
this category of students textbooks are free, they enjoy psycho-social care by the school
psychological service, and receive special quotas for bursaries in secondary education and
higher education. Ministry of Education and Sports cooperates closely with the Ministry of
Social Welfare and Youth and the State Social Service for coordination of supporting policies
for the growth of welfare and education of children in foster care.
Socially vulnerable and/or persons with disabilities
People with disabilities
Inclusion and accessibility for people with disabilities will enable social integration for
people with disabilities. Elimination of social/physical barriers and comprehensive treatment
of disability will be sought through the development of the social-medical model for
disability.
An important milestone for the social inclusion of Persons with Disabilities was the
ratification by Albania of the United Nations Convention on the Rights of Persons with
Disabilities. This led to the revision and evaluation the disability legislation. After an
extensive consultation process, the Ministry of Social Welfare and Youth and interministerial group, drafted for approval the Law "For inclusion and accessibility of Persons
with Disabilities". The consultation included representatives of central and local government
and organizations in the field of disability supported with technical assistance from UNDP.
The official approval process for Law "On inclusion and accessibility Disability”, during
May and June was based on the selection and reflection of comments and suggestions of line
ministries. Furthermore it was sent for adoption in government. After the governmental
approval, the law was reviewed in the relevant Parliamentary Committees and in the
Parliament-civil society sessions. Law was approved on 24 July and is expected to enter into
force.
Furthermore, the Framework Law supports accessibility as overcoming communication,
intellectual, physical and social barriers. Lack of accessibility for the disabled is a primary
obstacle to integration. Regarding accessibility in public buildings and facilities, legal
measure currently being implemented, is Prime-Minister Order No 239 of 11.12.2013 “On
establishment of Inter-Ministerial Group for the implementation of accessibility regulations
in state institutions, central and local." MoSWY coordinated the Working Group, pursuing
the objectives set by the action plan in view of accessibility. During this process, some state
objects were selected for inspection of building conditions for accessibility. In early June,
about 70 facilities were inspected in state institutions, central and local strategic planning
framework will further be proposed in accordance with the planning budgeting.
Another initiative on disability is the beginning of inter-ministerial discussions of the
working group for the provision of the service of wheelchairs in Albania. In sequence, round
tables and discussions took place and regional models were presented, namely from the
Health Insurance Fund of Montenegro on practical aspects of subsidies and costing. In
technical and policy level two following meetings were held and it was decided to embark on
concrete proposals for possible integration of delivery of the service.
As regards the respect for and protection of vulnerable groups and minorities during the
reporting period, Ministry of Health approved:
 DCM No 308 of 21.05.2014 “On the approval of health care packages that will be
funded by compulsory insurance fund health care in the hospital service”. It stipulates
the establishment of service packages free for children cochlearim plant (for children
with hearing problems according to Annex No 5, attached to this Decision). The price
of the package of health services finance by the Fund will be to the same extent in
public and private health institutions.
 DCM No 327 of 28.05.2014 “On setting the format and method of collection and
reporting of data by providers of health public or private care services”. This Decision
enables the standardization of health information that will be reported by all
healthcare providers, public and private, that operate in Albania. Part of the health
information is also violence managed cases to be reported by health institutions. (The
MOH collect data annually and 6 monthly regarding the family violence case
management from health care providers. During this 6 months are reported 100
cases.)
As far as regards the promotion and education interventions on healthy nutrition for mother
and children, 300 posters with subject: “Eat fruit and vegetables 5 times a day” are produced,
as well as 500 leaflets for school children on “Eat Healthy”.
Following the awareness campaign with the message "Good life starts from good nutrition",
there are distributed posters of 5 types, leaflets of 4 types, books with recipes for children
from 6 months to 5 years old in over 10 districts of the country as Tirana, Fier, Vlora, Dibra,
Korça, Berati, Elbasani, Durrësi and Lezha. (In total: Posters: 5,000; Leaflets: 49,000; Paper
frame: 1,000; Magnets with the logo of the nutrition campaign: 750; Stick meters: 2,750;
Thick paper promotion stands: 170; Books with recipes for children from 6 months to 5 years
old: 45).
60 health personnel working at schools are trained on "Nutrition for children of the school
age” and 45 health promotion officers from the public health directorates are trained on
"Nutrition during the summer".
Concerning the world week of breastfeeding, there was prepared and presented on the
electronic site of IPH one poster and one article with the theme “Breastfeeding, a winning for
life”.
In May 2014, it was fulfilled the Online Survey done by WHO for EUROPE on Nutrition and
physical activity during pregnancy and postpartum period, for Albania. The results of this
questionnaire will provide the WHO Regional Office for Europe with fundamental
information to better support and deliver the upcoming guidance package related to maternal
and newborn health according to the needs in countries.
In Durres district on 6 June 2014 was conducted the ceremony for celebrating one year of
having community friendly health centres that protect and support breastfeeding for a better
health for children. These three health centres (Bashkia Durrësi, QSH Shijaku, – Bashkia
Shijaku, dhe QSH Xhafzotaj, -Komuna Xhafzotaj) are the first centres in national level that
are supported by the incentive “Child friendly health centres and communities”, establishing
the first supporting groups, mother to child, to promote the breastfeeding to their children.
These centres were chosen because of the fact the population living round that areas came
from northeast area, Roma people and with a high number of deliveries in that region.
2.2.4 Respect for and Protection of Minorities, Cultural Rights
(see also Chapter 23- Judiciary and fundamental rights)
Roma
In connection with the inclusion of unemployed job seekers, the Roma community in active
employment programs during this period of 2014, employment promotion programs and
vocational training, informed as follows:
 During the reporting period were trained in various vocational training courses as
(nationwide) 91 unemployed Roma. These skills are required in the labour market,
namely, the vocational characteristics in these centres. The courses have duration of
2-6 months;
 9,469 unemployed job seekers Roma and Egyptians are enrolled during this period of
2014, near employment offices, which have benefited from the advice and guidance
of the staff of employment services, as well as the awareness and the pursuit of their
professional training professional courses in the Regional Public Vocational Training.
Divided by gender, this figure is 50% female and 50% male;
 Unemployed Roma and Egyptians, who were employed by employment promotion
programs, are 1% of the total (3,078).
Regarding the collaboration with local government and infrastructure planning please refer
to Chapter 23.
2.3 Property rights
First Registration
Projects completed during the period May- July 2014:
The satellite positioning system (ALBPOS) has become functional. This system will enable
the creation of a unique map for all the state institutions that use geospatial data and it also
helps to solve the problem of overlapping of property titles which are found during the
process of registration of these titles. Based on this system, the errors of measurements are 12 cm.
This system which operates through 16 stations distributed in 16 LIPROs will serve to
improve the quality of the geospatial information of all the public and private institutions
based already on a single reference, on the geodetic reference adopted in 2013.
In the framework of regional cooperation with counterpart agencies of Western Balkans, the
7th Regional Conference entitled “Geospatial data infrastructure” was organised in Tirana.
This conference was attended by representatives of these agencies and other international
organisations with which IPRO has very good cooperation relations. This conference served
not only to the exchange of experiences for the management of property related data but also
to the strengthening of further cooperation so as to align to the INSPIRE directive. Part of
this cooperation is the IMPULS project, over which agreements between our countries and
the project funders were signed during this conference.
Another IPRO initiative in cooperation with the Ministry of Agriculture is provision of the
solution to the problem of the agricultural land making it possible for the farmers who have
proper legal documentation to be provided with ownership certificate.
Ministry of Justice is working for the adoption of a Decision of the Council of Ministers on
improvement and update of data, as defined by paragraph 5 of article 64 of law 33/2012. This
sub-legal act expected to be approved will contribute to the increase of quality of products
and services of IPRO.
Respect for and promotion of gender equality in the process of immovable properties
registration is made concrete in the registration of the property title in the registration card
of immovable properties in the name of two spouses, in line with the provisions of Article
41, paragraph 2 of Law No 33/2012 “On immovable properties registration”. At the level of
the applicants, the number of applications according to the gender is Female = 30,968
applications, male = 109,958 applications. An important issue is the training of central and
local staff of IPRO for the observation of the gender equality in the registration activity.
Awareness campaigns were organised, especially in the rural areas for the gender equality
rights in property issues, including the registration. Public awareness campaigns are
organised in the frame of the First Registration Process, in the phase of public display.
Report on the First Registration, Work Plan Implementation
The product delivered by the Contractors according to the new work plan (Cadastral Zone:
CZ)
Sept-
Dec-
2013
2013
30 July 2013
Properties
(Actual )
delivered
(included
but QC not
67,792
met
Privatized
(checked at
TOTAL
Apartments)
least one
time but
rejected)
Completed First Phase
440,000
445,137
418,622
Undergoing Public Viewing
420,000
445,137
418,609
Completed Public Viewing
300,000
445,137
396,717
Kartelas's printed and handed over to IPRO
270,000
445,137
323, 848
Registered
250,000
445,137
282,996
NCB-1
Delivering the
Completion of
the First
Product of the
Display
Phase II Product
First
Registration
Phase I
Plan
Fact
Plan
Fact CZ
Plan
Fact
Plan
Fact CZ
Plan
Fact
ZK
CZ
ZK
Fact ZK
ZK
CZ
ZK
Fact ZK
ZK
CZ
Registration
Fact
Fact
Fact
ZK
ZK
ZK
1
1
1
22
22
22
1(1
1
1
1
22
22
22
accepted)
22 (22
50
50
50
50 (29
74
74
68 (52
50
29
50
147
147
141 (104
accepted)
1
22 (22
22
22
22 (21
50
19
74
10
147
51
accepted)
74
52
74
accepted)
147
1
accepted)
accepted)
74
1 (1
accepted)
accepted)
CSI Piemonte
Total
362,180
Public
BlomInfo AS
ICB – 3
38,332
Delivering the
Tracasa&Inypsa
ICB – 2
656,435
Beginning of
ZRPP (XYZ)
ICB – 1
237,813
43 (24
accepted)
147
104
147
88 (68
accepted)
During the period 2 May- 31 July 2014, the Directorate of Administration of Information has
performed the following activities:
The system of registration of immovable properties, ALBSReP has been installed and has
become functional in 18 LIPRO, thus reaching a total of 28 local offices. All these offices
record the applications and any transaction linked to these applications electronically.
The training of specialists in 18 local offices on the use of the ALBSReP according to their
respective role in the system has been carried out.
By 31 July, 43 Cadastral Zones which have completed the process of initial registration under
LAMP project have been imported and are functional in the ALBSReP. All the propertyrelated data in these cadastral zones are maintained and updated electronically in the system.
During the period 2 May- 31 July 2014, 41,639 applications are recorded in the system and
also 193495 property related transactions.
Module of notaries in the IPRO has recorded 2941 requests for applications in this reporting
period.
Technical specifications are prepared and it has been procured the initial registration
information system. This system will digitalise the administration of information on initial
registration in a controlled and safe environment. It has been procured and made functional
the Audit Vault system for the database and ALBSReP.
The electronic immovable property registration system (ALBSReP), has been put in
operation in 5 more local offices of IPRO, resulting in total of 10 big local offices (Tirana,
Durrësi, Elbasani, Fieri, Lushnja, Laçi, Lezha, Shkodra, Vlora and Korça). All the
applications and the transactions related to these applications are digitally registered in the
system.
As of May 2014, 25 cadastral zones that have completed the first registration process under
the LAMP project are operational in the ALBSReP system. All the property data in these
cadastral zones are digitally updated and maintained in the system. 40,488 application
requests have been registered in the system in the period of February-may 2014. The number
of applications in the system for each local office is:
 Tirana: 20,063;
 Durrësi: 5,895;
 Fieri: 3,364;
 Elbasani: 2,894;
 Shkodra: 2,723;
 Lushnja: 1,645;
 Vlora: 922;
 Laçi: 667;
 Korça: 324;
 Lezha: 1,991.
Restitution and compensation
During the period May 2014 - August 2014 the Agency of Restitution and Compensation of
Property has operated several very important processes, as follows:
 The inventory and scanning of courts decisions, which have changed the final
decisions taken by PRCC, ROPRC and PRCA;
 Data elaboration from courts decisions, which oblige the PRCA to compensate
financially or physically the expropriated subjects, who have appealed in the courts
the decisions of PRCC, ROPRC and PRCA;
 Data elaboration from the Electronic Register on property decisions, aiming to
calculate the amount of financial obligation of the Albanian state toward the
expropriated subjects. The main purpose for data elaboration and the creation of the
Electronic Register is to obtain the exact amount of the final obligation of the state
toward the expropriated subjects. These data, in addition to the data obtained from the
final courts decisions, will enable the calculation of the final amount of the obligation;











Admission and analysis of the requests, presented by interested subjects and public
administration authorities, to the Public Relations Sector. During this period have
been presented 1,460 requests and, have been solved 605 requests;
Admission and analysis of the applications, presented by interested subjects, to the
Public Areas Alienation Sector. During this period have been presented 37
applications and have been approved 17 applications;
Admission and analysis of the applications, presented by interested subjects, to the
Financial and Physical Compensation Sector. During this period have been presented
65 applications for financial compensation related to the legalization process of
buildings in informal areas (ALUIZNI). After the analysis and approbation process,
have been compensated these subjects for an amount of 59,632,344 ALL;
Inventory of the files with and without a final decision, presented in the PRCA
archive. In order to terminate the administrative examination process of all
applications presented by expropriated subjects, it has been started the inventory of
the files without a decision, as well as of those presented to the PRCA through a court
decision commanding the administrative examination of the application;
The process of inventory has started for the administrative examination of the files
presented in the archive, which have been deposited during the period of ROPRC
closure, which don’t have a final decision;
Presentation for the media and the public of the Electronic Register on property
decisions and its publication on the web site of the PRCA. The finalization of the
inventory process of decisions taking by PRCC, ROPRC and PRCA during these 20
years and the data elaboration in a single Register. Through this process has been
accomplished the transparency of the decision making process and is given the
opportunity to every interested subject to obtain information regarding interested
issues, in respect of the criteria of personal data protection;
The finalization of the pilot project of Vlora district. The elaboration of the data
obtained from the inventory process of the decisions taken during these last 20 years
for all the districts and their positioning in a digital map;
Creation of the database and cartographic positioning of the decisions for property
restitution and compensation, from the year 1993 to present days, for all the country.
The process has started for the cartographic positioning in e unified map of all
decisions regarding the applications for property recognition presented by the
expropriated subject or their heirs;
Participation and contribution in the working groups set by the Prime Minister orders,
for the identification of the public lands which can be used for the physical
compensation, the identification of agricultural land needed for the physical
compensation of the expropriated subject;
Analysis of legislation on property issues, regarding the purpose for legislative and
institutional reformation that the Albanian Government intends to complete within the
year 2015. Analysis of the legislation on property of other Eastern European
countries, in order to obtain needed information related to the purpose of legislative
and institutional reformation;
Drafting of the Regulation on conflict of interest and drafting and approbation of the
Ethic Code of PRCA;
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

Drafting and approbation of the Internal Regulation of PRCA, which aims to improve
the functionality of the agency;
Drafting and approbation of the Archive Regulation of PRCA. Approbation of strict
rules on archiving process and use of the documentation in the Archive and strict rules
on Archive access;
Finalization of the second phase of Midterm Budget Project 2014-2017;
Cooperation with the Ministry of Justice and PAD for the staff training.
Legalisation Process
On 15.05.2014, the Assembly has approved the Law No 50/2014 “On some amendments and
addenda to Law No 9482 of 3.04.2006 ‘On the legalization, urbanization and the integration
of illegal buildings”, as amended, which defines:
 Inclusion in the legalization process the illegal buildings built until the date of entry
into force of the amendments of Law No 10023 of 27.11.2008 “On some amendments
to Law No 7895 of 27.01.1995 “The Criminal Code of the Republic of Albania” as
amended, in which it is introduced the Article 199/a , stipulating as a crime the
construction of informal buildings, regardless their function nevertheless the selfdeclaration is carried out during the predefined deadline;
 Adjustment of the procedures of two processes, (i) transfer of ownership on the
building plot of the illegal construction and (ii) approval of financial compensation to
former owners affected by the legalisation process;
 Mechanism of legalizing of informal buildings on the transfer of the ownership.
 Financial burden of legalisation to builders of illegal constructions used for housing
purposes, excluding them from the payment of fees for the legalisation procedures,
such as notarisation of documents, issue of measurement and planning certificates.
These services will be carried free of charge;
 Registration of the legalised property used for housing purposes , even if the builder
has not paid or has paid partially for the building plot within the defined period;
 Allocation of 30% of the revenue from the legalization process, to pass ALUIZN to
cover its field activities cost (such as in-site verifications, updates etc.).
 The categories of illegal buildings that will remain subject to the payment of
legalisation fees and the use of revenues generated from penalties imposed on illegal
builders;
 Legal resolution of the technical problems related to the legalization of floors added
to existing buildings for the inclusion of all the inhabitants of the building.
 Lay down the illegal buildings erected in the areas designed for tourism, for which a
feasibility study is carried out;
 The categories of illegal constructions, which due to their location in an area
considered of national importance or their impact on key public infrastructure, will be
excluded from the legalization process;
 The amount of fine imposed on builders/ investors that have built lateral extensions in
height, in order to encourage them to include these in the legalization process;
In total, the legalization permits are estimated to a number of 25,445 buildings while there are
a number of 244,396 buildings in the process of legalization.
We highlight that during 2014 ALUIZNI is continuing with the process of issuing the
legalization permits for the illegal buildings involved in the process. More specifically during
the period May 2014 - July 2014 the number of the buildings is 2431. The total number of the
permits issued during 2014 is 3455 buildings.
Furthermore during the period May – July 2014, has been finalized the measurement process
for 18,350 buildings without permits out of 26,961 illegal constructions measured in total
until 2014.
2.4 Regional Issues and International Obligations
(See also Chapter 31: Foreign, Security and Defense Policy)
2.4.1 Regional co-operation
Regarding regional cooperation, Albania actively contributes to regional cooperation and
plays an important role towards the reconciliation process in the region. Albania has
participated in the meetings of all levels in the framework of regional initiatives. Albania has
played a moderate and constructive role in every regional initiative, stressing the importance
of an all-inclusive cooperation.
The one year Albanian Chairmanship of the Adriatic and Ionian Initiative (AII) ended on 31
May 2014.
On 1 June 2014, Albania assumed the one year Chairmanship of the South East European
Cooperation Process (SEECP). In the position of Chairmanship in Office, Albania is fulfilling
the membership of the SEECP Troika, alongside Romania and FYROM.
2.4.2 Bilateral relations
Albania continues to develop very good relations with neighbouring countries, also as an
essential part of its process of moving towards the European Union.
With regard to relations with the Republic of Kosovo, Albania welcomes Kosovo’s progress
toward its membership in Regional Cooperation Council (RCC) and its further regional and
international affirmation, as status of observer to the Parliamentary Assembly of NATO, the
membership to Commission of Venice-CoE, full participation to SEECP.
Regarding FYROM, Albania continues to maintain a constructive approach towards the
developments in FYROM and supports its sovereignty, integrity and stability. The current
bilateral relations are characterized by a satisfying level of political dialogue, with frequent
contacts on different levels.
The Republic of Albania pays special attention to the relations with the Republic of Serbia.
Under its foreign policy of “zero problems with neighbours” Albania has expressed its
readiness to engage in an open political dialogue with Serbia, in order to create a sustainable
climate of confidence and respect, as a contribution to security and stability in the region. The
bilateral relations have not seen much progress during the recent couple of years, although
there are broad possibilities of cooperation. The expected visit of the Albanian Prime
Minister, to Serbia, will hopefully open a new dimension of political and economic relations
between the two countries. As a sign of solidarity and response to Serbia’s call for support in
the aftermath of the recent floods that hit the country, Albania participated at the International
Donors’ Conference, hosted by the European Commission and expressed its commitment to
make a financial contribution to the relief efforts.
Albania aims to further develop the good-neighbourly relations with Bosnia and
Herzegovina, intensify the political dialogue and contacts on every level. Albania has
supported the integration process of Bosnia and Herzegovina to EU and NATO and has
aligned itself to the efforts of the international community towards the necessary reforms in
the country. Albania assisted the authorities in Bosnia and Herzegovina with rescue and
medical teams, in coping with the consequences of the floods. It also made a financial
contribution commitment to the pledges mobilised by the international community for Bosnia
and Herzegovina, during the Donors’ Conference, convened in Brussels, on 16.07.2014.
Relations with Montenegro are dynamic and multidimensional, and also constitute a solid
base for good neighbourly relations. The political dialogue includes all areas of bilateral
relations and regional development issues, too. Albania is interested in opening new ways to
collaborate and reinforce the economic cooperation with concrete ideas and projects for a
common development. Albania supports Montenegro's membership in NATO, as it helps in
strengthening security in the region and is in the interest of all countries.
Relations with Republic of Croatia have experienced significant positive progress. There is a
growing political dialogue and a very good bilateral cooperation, particularly on European
Integration issues.
II. ECONOMIC CRITERIA
1. FUNCTIONING MARKET ECONOMY
1.1 Recent economic developments
The Ministry of Finance (hereinafter MF) initial assessment confirmed the weak economic
growth of the Albanian economy and low inflationary pressures in 2013. This trend was
confirmed also in the first quarter of 2014. The projections about economic performance
during 2014 show a gradual recovery of aggregate demand supported by improved
consumption and Albanian businesses confidence, monetary stimulus and expected growth of
the world economy.
Despite the expected recovery, economic growth is estimated to remain below potential. The
economy will continue to be characterized by unused manufacturing capacity and a negative
output gap in short term.
In Q2 2014, inflation averaged 1.6%. From the macroeconomic point of view, the weak
aggregate demand continued to generate low inflationary pressures. Also, low inflation rates
in our trading partner countries, stable exchange rates and downward expectations for
inflation contributed to the low inflation rate at home.
According to the latest publication by Institute of Statistics (hereinafter INSTAT), the
economic growth in Q1-2014 was 1.7%, somewhat slower than the growth of 2.2 % recorded
in the preceding quarter. For 2014, the structure of economic growth is estimated to be more
balanced. Improving confidence of economic agents, in addition to monetary stimulus and the
repayment of arrears, is expected to boost consumption and investment in the country. In
conditions when the performance of the export sector depends on the developments in the
world economy and the necessity of structural reforms and increased diversification and
competitiveness, the main source of growth in the short term will remain the recovery of
private sector demand.
According to the Bank of Albania (hereinafter BoA), ameliorated growth and low inflation
are the main characteristic of the Albanian economy in the first part of 2014. The latest
revised GDP figures show that the economy grew 1.65% in the Q1 of this year. The new
information, including surveys results for Q2, point to higher growth rate in the Q2 of this
year.
Economic activity has picked up gradually since the large contraction in Q3 2013, with
output rising across a wide range of sectors. Domestic demand is becoming an increasingly
important component of growth, with investments and consumption both having expanded in
Q1. The growth in the domestic demand has resulted in higher imports, which have led to a
negative contribution of net exports. Similar to the previous quarters, developments in
government demand were shaped by a consolidating fiscal policy, resulting in falling capital
expenditures and negative contribution to growth. Overall, BoA assess that the economic
growth in the recent months has benefitted from improved confidence, abundant monetary
stimulus and the gradual recovery in our exporting markets.
Despite improved growth, the output gap remains negative. Subdued inflation in external
markets, the unused capacity in the economy, moderate wage growth and the fall in inflation
expectations have all contributed to a low inflation environment. Average annual inflation
was 1.6% in Q2.
Given the negative output gap, the projections for low inflation, and the consolidating path of
the fiscal policy, the monetary policy has taken an ever more expansionary stance. At the end
of May 2014, the policy rate was cut again reaching 2.5%. This cut has been transmitted to
almost all the segments of the financial market. It was also reflected in lower financing costs
of the banking system, creating, in turn, premises for the transmission of stimulus to the
lending interest rates and further to the economy.
Table 1: Main macroeconomic indicators
2009
Real GDP growth (in %)
1
2010
2011
2012
2013
2014
2014
Q1
Q2
3
1.7
3.7
3.7
3.2
1.0
1.4
Employment (in thousands)
902
904
925
958
955
880
LFS Unemployment rate
13.8
14.2
14.3
13.9
16.1
18.3
2.3
3.6
3.5
2.0
1.9
1.9
-7.1
-3.1
-3.5
-3.4
-4.8
59.7
57.2
58.9
60.9
63.6
59.7
57.2
58.9
60.9
68.7
-15.3
-11.5
-13.0
-10.7
-10.3
-13.4
11.7
10.6
10.4
1.5
-1.5
-2.4
-1.8%5
6.8
12.5
9.2
5.0
2.3
2.1
0.6%5
95.0
103.9
100.8
108.2
105.7
102.5
102.1
132.1
137.8
140.3
139.0
140.3
140.4
140.5
Inflation rate, % (y-o-y, avg)
Budget balance (incl. grants, in
1.6
% of GDP)
Public debt (in % of GDP, excl.
arrears)
Public debt (% of GDP, arrears
included)
Current account(excl. official
transfers, in % of GDP)
Credit to the private sector (%
end of period)
M3 growth rate (% end of
period)
Average exchange rate,
ALL/USD
Average exchange rate,
ALL/EUR
1
Semi-finale; 2Flash; 3Based on quarterly publication, 4February 2014, 5 May 2014
Data sources: MOF, INSTAT, Bank of Albania
The Albanian economy is expected to recover gradually in 2014. Aggregate demand will
continue to be supported by export growth and a better performance of consumption and
investment. Monetary policy will support domestic demand through safeguarding
macroeconomic stability and injecting monetary stimulus into the economy. In reflection of
the weak economic and monetary dynamics, inflationary pressures are expected to be weak.
This will require maintaining the monetary policy stimulus over the medium term.
Real sector
The increase in the real gross value added in the economy in Q1 2014 was mainly due to the
production sector performance. Positive developments in the industrial and agricultural
production did offset the decline in construction output, resulting in a contribution of the
production sector to economic growth by 1.39 percentage points. The strongest contribution
came from the high increase in the value added of the extracting industry.
Additionally, services sector contributed by 0.26 percentage points to the annual growth rate
of real gross value added in the economy during the first quarter of 2014. Services value
added continued to expand by 0.4% in this period, at a similar pace compared to the previous
quarter. At a branch level, trade activity recorded the highest pick in value added, by 5.5%
compared to 5.8% in the last quarter of 2013. An expansion of value added was marked also
in “Post and communication” and “Other services” branches. Contrary to the above
dynamics, the further contraction of value added in the transport branch accounts for the
largest negative impact in the expansion of services.
Survey indicators, overall, point to continuous positive developments in the industrial sector
activity during the Q2 2014. This signal is supported by the higher flow of industrial products
exports during April – May 2014. Data from surveys and indirect quantitative indicators
suggest an amelioration of activity in the construction sector in the Q2 2014. However, the
level of these indicators remains below the historical averages. Positive developments are
also expected in the agricultural sector during the Q2 2014, as shown by indirect foreign trade
data and prices of agricultural products. Surveys point to a continuation of growth in services
value added during the Q2.
GDP in current and constant prices, aggregate as well as breakdown by expenditure
The economic growth continued in a balanced structure in Q1 with domestic demand
becoming an increasingly important contributor to GDP growth. Favourable external demand
has facilitated exports growth, but their contribution was offset by rising imports. The public
sector contribution was negative, mainly due to falling capital expenditures. Data for the Q2
go in line with MF forecast for higher growth rate while maintaining the same structure.
Private consumption is estimated to have supported the growth of aggregate demand in the
first half of 2014, in reflection of improved consumer confidence, easing credit standards and
increased consumer’s credit for durables. However, the consumer demand financing sources
remain weak, increasing uncertainty about the strength of the recovery of this component.
Similar to the previous period, developments in government demand were shaped by a
consolidating fiscal policy focusing on the reduction of government debt. Primary balance
continued to follow a positive trend, bringing an improvement fiscal position. The
consolidating path of the fiscal policy was evident both on the revenue and expenditure side.
Changes in tax legislation and administration have brought income higher than a year ago.
On the other hand, expenditures have shrunk, largely due to the fall of capital expenditure.
Consequently, the budget deficit in the first six months of the year was about 54.3% lower
than in the same period of 2013. The contribution of the public sector on aggregate demand
was negative in the first half of this year.
Net exports continued to give negative impact on economic growth in the first months of the
year. Although foreign demand and export growth has helped increase domestic production,
imports of goods and services grew higher, bringing the contribution of net exports in
negative territory in Q1 2014. For this period real exports and the real imports of goods and
services grew respectively by 13.9% and 9.8% on annual terms. The foreign trade data show
a widening annual trade deficit in April-May 2014 suggesting for a continued negative
contribution on the aggregate demand during Q2.
Imports of machinery and equipment, following pronounced growth in the Q4 2013, rose by
7.6% in the Q1 2014 and 9.4% for the period April-May 2014. Foreign direct investments
inflow grew by 12.8% in the Q1 2014. Qualitative data from surveys confirm the positive
signals coming from quantitative indirect data for investment recovery. Businesses have
reported improved financial situation as a result of increased demand for their products. At
the same time, businesses have increased the rate of capacity utilization while reporting for
increased new orders in the Q2.
Estimated impacted of the economic crisis and outlook for the year forward
The global and Euro zone debt crisis have posed strains to the Albanian economy through
various channels. The most important impact has been in worsening of the foreign financing
conditions for the Albanian economy. Firstly, the overall increased risk averseness withdrew
the interest of foreign investors, especially from investing in developing economies.
Secondly, remittances, which remain an important source of finance for consumption, fell
sharply with the deepening of the crisis in Greece and Italy. Thirdly, in the last two years, the
European banks have followed a stricter strategy with respect to their exposure in the Central,
Eastern and South-eastern countries, in their process to comply with the new regulatory
framework of the European Banking Authority. This has contributed to a large extent to the
tightening of the credit conditions in the domestic market or to the cautious approach in
financing the economy. On the trade side, the impact of the crisis has been felt in the
exporting sectors of the economy, mainly in the form of increased market uncertainties.
However, Albanian exporters have managed to increase exports during these years. Finally,
these constraints are gradually subsiding and the prospect of foreign financing conditions
looks ameliorated. Furthermore, the IMF arrangement and the more recent approval of the
candidate status will contribute to further economic improvement.
Economic activity recorded growth of 1.65% in the Q1 2014, while BoA estimations and
projections for the end of 2014 suggest higher growth than the previous year, and also higher
compared to the year-start projections. In line with the expected improvements in the
financing conditions (domestic and abroad), reduction of the risk premia and on-going global
recovery, BoA forecast a higher growth rate for 2014 in an environment with declining
uncertainty and improved confidence. At the forecast horizon, the domestic economic
environment is expected to continue to have a subdued impact on prices, although to a
declining extent. Persistently low inflation alongside rising domestic demand reflects mainly
the positive impact of moderate wage growth due to continued slack in the labour market and
other supply-side cost shocks. The negative output gap is expected to close gradually at the
monetary policy horizon; however, achieving price stability in the medium term points in the
direction of persistently loose monetary conditions.
The BoA expects consumption and private investments to remain the driving source of
growth throughout the course of this year. A number of factors like demand growth,
improvements in business balance sheets reflecting government payments of arrears, along
with low interest rates and expected easing of credit standards, will sustain the expansion of
private investments in the economy. Nonetheless, sustainable growth of consumption and
investment should count on a more stable growth of employment and income, as well as more
solid business perspectives in the medium term. Albanian exports have also increased in the
first half of the year, and are also expected to continue contributing to economic expansion
throughout the year. But the Albanian economy should further expand and improve its
production and export capacities, in order to benefit from the anticipated growth of the world
economy in the medium and long run.
On the other hand, consolidating fiscal policies in place have somewhat constrained
economic growth. Such impact is expected to last in the medium term as well. However, BoA
has backed up the consolidating fiscal stance, evaluating as such that a reduction of the public
debt, reduction of risk premia in the economy and increased access of the private sector to
financial funds generate overall positive effects in the Albanian economy.
Notwithstanding demand improvement, economic growth is expected to remain below its
potential, while the output gap will continue to remain negative. As such, inflation pressures
on the demand side will be contained. Such developments will be followed by slow growth in
wages, production costs and marginal profits of businesses, the latter already having been
present in the recent quarters. At the same time, supply factors will also have an impact on
domestic consumer prices. Prices of core goods in the international markets and the inflation
in partner countries are anticipated to be either decreasing or with low growth, while the
exchange rate is expected to be stable. Considering all this factors, inflation rate is projected
to fluctuate at the 0.9-3.6% after a period of twelve months, with 90% probability of
occurring.
Expected inflation developments will require an expansionary monetary policy. Domestic
financial markets are expected to perform in a framework of ample liquidity and high risk
premia, while fully conducting monetary stimuli in the economy. Besides the easing
monetary policy, European banks consolidation process coming to an end and the new
regulatory framework, are expected to improve external and domestic conditions of financing
Albanian economy. Given the relaxing constraints coming from their mother banks and
improvement of their balance sheets – which up to now have followed a conservative
approach towards their net exposure in the region – commercial banks’ policies will follow
up on the easing monetary policy of BoA. Credit is expected to recover somewhat in the
second half of the year, while being more noticeable next year. As such, domestic aggregate
demand will be better supported.
Attainment of EU candidate status of Albania, implementation of the Extended-Fund Facility
program with the IMF, follow up on a good mix of macroeconomic policies, along with
consistent structural reforms are expected to create good premises for a long-term growth of
the economic activity.
Balance-of-payments developments
The overall balance of payments of 2014 Q1 resulted in lower foreign reserve assets by EUR
40.3 million (ALL 5657.3 million) 25 . During this period, the current account balance
recorded a deficit of about EUR 299.5 million (ALL 42043.8 million), up by about 31% y-oy. The current account deficit (excluding official transfers) is estimated at 13% of nominal
GDP or about 2.5 percentage points higher compared to the previous year. Financial flows in
the capital and financial account have increased and have financed 83.6% of the current
account deficit registered in the same period.
The current account dynamics over the first quarter were broadly affected by the expansion of
the net exports deficit and by the sustained fall in current transfers. The goods and services
trade deficit grew annually by approximately 7.4%. The services account balance worsened
slightly due to a faster increase in imports relative to exports. The merchandise trade deficit
also increased due to higher imports, for a second quarter in a row, and a slight slowing down
of exports. The income account net balance registered deficit of EUR 31.3 million (ALL
4393.9 million) from a deficit of EUR 9.8 million (ALL 1375.7 million) in the Q1 of 2013.
The net income balance deficit narrowed on the back of higher investment income outflows.
The current transfers account surplus narrowed by about 13.1% y-o-y. The main sub-item of
this account, net remittances, decreased by 4.1%, y-o-y.
Capital flows recorded a positive balance of EUR 22.5 million (ALL 3158.2 million) from
EUR 9.7 million (ALL 1361.7 million) during the Q1 same quarter of last year. Net flows in
the financial account amounted to EUR 268.1 million (ALL 37635.9 million). In annual
terms a growth of 29.8% was registered and its ratio to nominal GDP was 11.6%. Net
foreign direct investments amounted to EUR 221.3 million (ALL 31066.1 million),
increasing by 11.7% y-o-y. This performance was aided by FDI-related investments in the
extraction sector. Portfolio investments increased Albanian our assets invested abroad by
EUR 3.1 million (ALL 435.2 million). The net other investments account recorded an
increase in liabilities of EUR 14.1 million (ALL 197.4 million) representing a decrease in
annual terms by 24.6%.
25
The official data on Balance of Payment, Foreign International Reserves and External Debt are published in
EURO. As required, in brackets we provide data in national currency. For BOP data the yearly average
Euro/ALL exchange rate was used.
Foreign international reserves and external debt26
At the end of Q1 2014, the stock of gross external debt of Albania was valued at a total of
EUR 5,724.5 million (ALL 802976 million). The stock of external debt increased by EUR
161.4 million (ALL 22639.6 million) compared with the end of Q1 2013 and by
approximately EUR 70.5 million (ALL 9889 million) compared with the level at the end of
Q4 2013. In annual terms, the gross external debt increased by 2.9%. The majority of the
growing stock of debt at the end of Q1 2014 was caused by the increased borrowing of the
depositing corporations (except the Central Bank) and of the other sectors. The data on Q1
2014 showed that the general government sector represented 40.5% of the total external debt.
The rest is distributed among other sectors 20.2%; depositing corporations 20.7%; foreign
direct investment and intercompany loans 17.3% and monetary authority 1.3%
At the end of Q1 2014, the international reserve stock (gross) was EUR 1980.0 million (ALL
277734.6 million), increasing by 1.2% year-on-year. In terms of reserve adequacy, this level
of reserve covers 4.4 months of imports and 173.5% of short term external debt.
At the end of June 2014, preliminary data on foreign reserves show that they stand at EUR
2016.8 million (ALL 282876.4 million) and covering about 4.6 months of imports of goods
and services.
Table 2: External debt stock, breakdown by sectors (as % of total debt stock) and
International reserves
2011
2012
2013
2014Q1
Total debt (EUR million)
4958.3
5516.4
5654.0
5724.5
Total debt (ALL million)
688856.6
770034.3
792695.0
802976
41.73%
40.31%
40.70%
40.52%
2.00%
1.63%
1.40%
1.33%
Depositing Corporations
17.57%
19.73%
19.02%
20.65%
Other sectors
20.93%
19.92%
19.11%
20.18%
FDI – Intercompany lending
17.77%
18.40%
19.77%
17.32%
International reserves (EUR million)
1912.49
1972.45
2015.27
1980.04
265702.2 2753341.3
282531
277735
General government
Monetary authorities (BoA)
International reserves (ALL million)
Source: Bank of Albania
Exchange rate framework and recent developments of exchange rate
The nominal effective exchange rate has appreciated 2.5% annually in the Q2 2014. NEER is
calculated based on ALL/USD and ALL/EUR exchange rate and reflected their respective
performance accounting for trade partners. The continuous appreciation of NEER is caused
mostly from the appreciation of ALL towards US dollar. ALL appreciated against the US
26
To calculate the figure of external debt in local currency the end of March exchange rate was used. For the
foreign international reserves the end of June 2013 Euro/ALL exchange rate was used.
dollar by 5.3% annually, in line with the EUR/USD performance in the international markets.
The ALL as appreciated annually by 0.5% against Euro. Despite the trade deficit widening
during this period, the supply and demand conditions for foreign currency appeared balanced.
Dynamics within Q2 showed a slight appreciation of Albanian ALL against EUR (0.25% q-oq), reflecting an end of period seasonal effect, which turned out to be weaker in June 2013
due to the parliamentary elections.
Trends in unemployment and employment
The first quarter of 2014 was characterized by loose labour market conditions as reflected in
the increase in the unemployment rate and the decline in the employment rate. According to
the Labour Force Survey (LFS), the unemployment rate was 18.3% in Q1, up from 17% at
the end of 2013. The rate of labour force participation stood at 58.6% in Q1 while the
employment rate continued to decline for the fourth quarter, standing at 48.5%. In line with
the LFS, the administrative data for the labour market show a decline in employment driven
by the private agricultural sector. On the other hand non-agricultural employment in the
private sector rose by 11.2% in Q1. In public sector employment remained unchanged at the
level of last year. For the Q2 2014 businesses assess improvement in the employment
situation in the country.
In Q1 2014, the index of the average nominal wage fell by 3% after an increase of 2.3%
recorded in 2013. Deflated by the CPI, the real wage index fell by about 4.8% in Q1. With
regard to sectoral developments, wage indexes fell in all sectors of the economy, in nominal
and real terms. Real wages in the public sector remained almost unchanged compared with a
year ago. The above developments are in line with the business assessments for this period.
The latest data from confidence surveys do not suggest for increasing wages in the Q2 of the
year.
According to INSTAT quarterly LFS results, the overall unemployment rate in Albania has
shown fluctuations in an interval between 13 (in the Q1 2012) and 18 percent (in the Q1
2014). The unemployment rate for the population aged 15 years and over has increased from
16.7 percent in the Q4 of 2012 to 17.7 percent in the Q1 of 2014. Over the Q1 2014
unemployment rate for youth (15-29 years old) has reached at 31.3 percent. Compared to the
previous quarter, youth unemployment rate has increased by 3.2 percentage point.
Table 3: Unemployment rate
Age
15 years
and
above
15-64
years
15-29
years
30-64
Sex
Total
Male
Female
Total
Male
Female
Total
Male
Female
Total
Q1.2012
12,9
13,8
11,8
13,4
14,3
12,2
22,9
23,6
21,8
10,0
Q2.2012
13,4
14,5
12,0
13,9
15,1
12,4
24,1
26,4
20,4
10,2
Q3.2012
13,5
14,6
12,1
14,0
15,1
12,6
27,3
30,2
22,8
9,3
Q4.2012
13,9
15,0
12,4
14,4
15,6
12,8
26,0
29,5
20,7
10,5
Q1.2013
14,4
15,5
13,0
14,9
16,2
13,4
25,8
27,2
23,7
11,7
Q2.2013
15,4
17,4
12,7
15,8
18,1
13,0
26,4
30,6
19,8
12,7
Q3.2013
16,5
18,8
13,4
16,9
19,3
13,7
26,9
30,4
21,5
14,0
Q4.2013
16,7
18,5
14,2
17,0
18,9
14,5
28,1
28,3
27,6
13,5
Q1.2014
17,7
19,0
16,0
18,3
19,6
16,4
31,3
33,9
26,8
14,6
years
Male
Female
10,6
9,2
10,5
9,9
9,3
9,4
10,5
10,4
12,6
10,6
13,9
11,2
15,8
11,8
15,6
10,9
15,1
13,9
Labour Force Survey, Q1.2012-Q1.2014
For more information, please refer to Chapter 19 “Social Policy and Employment”
Trend indices on inflation, core inflation
Annual inflation rate was 1.9% and 1.6% in Q1 and Q2 2014, respectively. For the 4th
consecutive quarter inflation resulted below the lower limit of BoA’s tolerance band for
inflation objective. Lower annual contribution of the “unprocessed foods” determined the
inflation dynamics during the last two quarters. From a macroeconomic framework, the weak
aggregate demand and partial utilization of production capacities continue to generate low
domestic inflationary pressures in the economy. Also, low inflation in the trade partner
countries, the exchange rate stability and declining inflation expectations have contributed to
lower annual inflation rates.
The persistent weakness of aggregate demand continued to be reflected in more pronounced
reduction of the main inflation trends. The annual core inflation 27 marked -0.24% in the
second quarter or slightly lower than in the first one. Meanwhile, the net non-traded inflation
was almost stable over the second quarter, resulting 0.97%. Both, long-term and domestic
components of inflation remained at low levels and below their historical average.
In the Q2 2014, the short-term inflation, represented by the non-core inflation rate, resulted
5.5%, lower than in the previous one. This development has reflected the lower inflation of
agricultural products prices and negative contribution of the medicament prices to the
headline inflation, due to the new fiscal measures.
At the same quarter, the unprocessed food category, contributed by 1.3 percentage points to
the headline inflation or 0.3 percentage point less than in 1st one, representing close to 82%
of the headline inflation. The lower inflation rate of unprocessed food in countries in the
region has been reflected in decreased imported inflation for these items.
The annual negative contribution of processed food to the headline inflation has increased in
the Q2 2014 (-0.2 percentage points), showing the lowest values since 2009. This
development is influenced by the favourable conjuncture of global prices for these goods and
stable exchange rate over this period.
Meanwhile the performance of food prices, determined the inflation developments over the
first half of 2014, the price volatility of other CPI basket items contributed slightly to
headline inflation rate.
27
Core inflation is calculated as a simple arithmetic average of two measurements: permanent exclusion of some
items; and trimmed mean (30%).
1.2 Reporting on monetary and fiscal policies
Evolution of the monetary policy framework and monetary policy stance
In line with the low forecasted inflation and weak economic performance, BoA has reduced
further the policy rate, by 0.25 pp, bringing it to the lowest historical level of 2.5% in May
2014. Therefore, during the Q2, interest rates have continued to follow a downward trend in
almost all the segments of the financial market. The decline in interest rates has been
facilitated also by BoAs’ liquidity injection and by lower liquidity and inflation premiums.
The performance of the exchange rate has been stable. Despite the improved monetary and
financial conditions, the credit performance and demand for financing from economic agents
remains low.
Financial markets indicators are stable in the Q2 2014. The monetary policy easing has been
transmitted in the short segment of the money market. The interbank rates have fluctuated
close to the base rate, hence being in line with our operational target. The short term Treasury
bill yields have also declined in response to sufficient liquidity and base rate decreases. The
12-month Treasury bill yield went down to 3.23% from 3.46% in April. The Treasury notes
yields have kept the same levels as in the previous quarter reflecting still high demand from
the government. As a result, the yield curve has slightly become steeper.
The interest rates in the deposit and credit market show the same trends as in the Q1 2014.
The deposit rates in ALL are declining fast but are still higher than those in euro. The lending
rates remain volatile from month to month, but they show a slowly falling trend on average.
In 2014 (January-May), the average lending rate in ALL is 8.92% from 10.32% for the year
2013. The lower loan rates have not yet been translated in an increasing demand for loans,
confirming the high uncertainties that are still present in the economy and the weak economic
activity.
Money supply growth has continued to slowdown in the Q2 2014. The M3 annual growth has
decelerated to 0.6% in May, reflecting not only low money creation in the economy, but also
some statistical effect of the previous year. The main contributors of the money expansion
remain banks’ placement abroad and the financing to the government. Credit to economy
continues to give negative contribution to the money growth. In May, credit to the private
sector was 1.8% lower than the previous year, driven mostly by the contraction of business
lending (-2.4%) and the stagnation of lending to households (-0.2%).
The weakness of the lending portfolio is constrained from weak demand of economic agents
for financing and conservative banks’ lending policy. However, the lending survey in the Q2
2014, shows for the first time after 3 years, the easing of the lending’s standard for business.
Meanwhile, lending standards to household continue to ease for the third consecutive quarter.
Data from survey suggest increased demand for financing as from business also from
household. From the liabilities side of banks’ balance sheets, deposits have continued to grow
with lower rate of 0.9%. As in the Q1 2014 their development are influenced by the shifting
of ALL deposit toward more higher interest- bearing financial instrument, that are not part of
monetary aggregate. In May 2014, ALL deposits have declined annually by -0.8%, and the
foreign currency has increased by 2.7%.
Assessment of the macroeconomic policy mix
In the Q2 2014, the policies mix remained broadly unchanged. They continue to be
implemented with the aim to support a sustained medium-term economic growth. The fiscal
policy continues to be consolidating, while the monetary policy continues to be stimulating.
The fiscal policy has shown a strong consolidation in the first part of the year reflecting the
attempts to correct the path of increasing fiscal debt. The tight policies are applied on revenue
collection as well as on execution of expenditures. In the first half of the year, the budget
deficit is 54.3% lower from the previous year. The tight fiscal policy has produced a negative
contribution of the public sector to GDP in the short term. Nevertheless, in the long term, the
consolidation of fiscal indicators is expected to contribute positively in reducing risk premia
in the economy and strengthening the macroeconomic stability. In the short term, the
consolidating fiscal policy will help to provide better financing conditions for the private
sector. On the other hand, it has allowed more room for more stimuli from monetary policy.
The monetary policy has strengthened its easing cycle aiming to bring inflation close to the
target in the medium term. The policy interest rate was cut in two consecutive steps in the
first half of the year. The output gap remains negative and the capacity utilization rate is
below average. This has produced a slow increase of wages and production costs as well as of
profit margins, hence generating very low inflationary pressures. At the same time, imported
inflation has been decreasing as a result of a stable exchange rate and low foreign inflation.
BOA has continued to use forward guidance to communicate its intention of keeping the
monetary policy easing in the near future. Its monetary operations have been in line with this
approach. The monetary policy has been successful in reducing the financing costs of the
public and private sector helping to create conditions for the expected recovery of domestic
demand and economic activity. Further, it has helped to anchor medium term inflation
expectations. Inflation is expected to remain low in the short term and to increase close to the
target as the domestic demand recovers.
As the MF reports, the economic growth has slowed down considerably last year with a first
flash estimation of GDP growth at 0.4%. The macroeconomic policies have been driven by
the need to support a sustained medium-term economic growth. Key issues in setting
appropriate policies have been the preservation of the stability of consumer prices, public
debt and financial system. Given that inflation expectations remain well anchored, the
monetary policy has eased with the aim to support economic recovery. In the last six months,
the policy rate has been cut three consecutive times from 3.5% to 2.75% trying to stimulate
aggregate demand. The easing cycle has been associated also with a set of macro prudential
measures which aimed at facilitating credit supply to the economy. Changes in the Civil Code
(effective September 2013) and the proposal for some changes to the Law No 8438 of
28.12.1998 “On Income Tax" (at the end of April 2014 these changes have not yet been
approved by the Parliament) have been introduced to address issues with the execution of the
collateral and the burden of lost loans on banks' balance sheet.
The overall monetary and macro prudential policies have yielded positive results with respect
to a decline in the cost of lending in domestic currency as well as a slowdown of increasing
NPLs. The effects on boosting aggregate demands have been weak while an improvement in
this component is expected to show during 2014. These policy decisions have carefully taken
into consideration the balance of risks to financial stability. Further, the authorities are
committed to implement the recommendations that follow from the recent Financial Sector
Assessment Program with IMF and WB, in order to strengthen supervisory regulation and
ensure the safeguard of the overall financial system.
Fiscal policy has been tightening. The high public indebtedness of Albania has called for
fiscal consolidation that aims to lower the public debt below 60% of GDP in the medium
term. The government has already introduced a fiscal package that affects primarily the tax
revenues and tax administration. Simultaneously, the authorities are strongly committed to
pay the arrears accumulated over the past years and hence providing a fresh injection of
liquidity in the economy. Furthermore, the necessary steps will be taken to prevent future
accumulation of arrears.
The authorities have also signed a three year EFF agreement with the IMF, which is expected
to help the country to meet its financial needs, while providing the necessary support to
engage in successful structural reforms. In this respect, the planned reforms and the fiscal
measures aim to improve the investment climate in the country.
Recent trends in general government debt and its main driving factors
At the end of June 2014, the Central Government’s Debt is estimated to be ALL 916,941
million or 64.66% of GDP by decreasing in relative terms with 47 basis points compared with
the end of 2013. In absolute terms, debt has been increased during the first six months of the
year by ALL 32.4 billion.
Table 4: Public debt figures
In million ALL
Total Debt Stock
Domestic Debt Stock
External Debt Stock
GDP
Total Debt Stock/GDP
Domestic Debt/GDP
External Debt/GDP
2010
715,371
407,372
307,999
1,222,462
58.52%
33.32%
25.19%
2011
772,517
438,582
333,935
1,282,255
60.25%
34.20%
26.04%
2012
827,980
470,358
357,622
1,330,003
62.25%
35.37%
26.89%
2013
884,500
520,786
363,714
1,358,000
65.13%
38.35%
26.78%
Jun-14
916,942
543,425
373,517
1,418,002
64.66%
38.32%
26.34%
Domestic borrowing for the first half of 2014 is achieved at the level of ALL 21.42 billion or
46.7% of the yearly plan (ALL 45.8 billion). 51.4% of this funding is conducted by long term
instruments while the difference of 48.6% through short term instruments. This funding has
enabled small improvements in the domestic debt indicators and also in the maturity profile.
The average days to maturity are estimated at 580 days compared to 560 days at the end of
the previous year, thus making moderate improvements of the refinancing risk.
Even though the refinancing risk has shown slight improvements it is important to mention
the fact that domestic borrowing was expected to be financed entirely by long term
instruments. Until now it has not been realized because the domestic banks are very careful
toward long term exposure and are impacted by parent banks policies.
It is worth mentioning the diversification of instruments that has continued also during this
year, by issuing ALL 3.6 billion with the 10 year bond instrument.
Characteristic for 2013 and also for Q2 2014 has been also the drastic drop in the interest
rates which has enabled a reduction in the cost of debt servicing.
Beside the positive developments of the domestic market in the segment of government
securities, it should also be taken into account that public debt continues to pose a high risk
which should be mitigated in the future. From this perspective, it is important for the future
that the debt borrowing to be provided by long term instruments and the debt structure to be
improved further by refinancing some of the short term instruments with those of longer
maturity.
As regards foreign borrowing, the relations with international creditors have been stable
during the first half of 2014 and foreign borrowing has been realized in the level of 22% of
the yearly plan. An increase in the drawings is expected during the second half due to
existing projects and due to the new contracted ones.
The future foreign borrowing is based on the expected funding of projects and completed
with the provision of external financing in accordance with the agreements with IMF and
World Bank for the remaining repayment of arrears.
1.3 Interplay of market forces
Privatization
For information on the privatization process please see Chapter 20: Enterprise and
industrial policy.
1.4 Market entry and exit
Concerning business entry, during the period May – July 2014, the National Registration
Centre carried out the following activity:
Table 5: National Registration Centre: Initial Registrations
Initial registrations
May
June
July
Total
%
Physical persons
1,048
1,049
957
3,054
84.1
220
175
131
526
14.5
5
1
5
11
0.3
13
16
11
40
1.1
3,631
100
Limited liabilities companies
Joint stock companies
Other
Total
Source: National Registration Centre
Table 6: National Registration Centre: Written off
Written off
May
Physical persons
Other
June
July
Total
%
223
112
79
414
94.7
15
6
2
23
5.3
437
100
Total
Source: National Registration Centre
The National Licensing Centre (NLC) is preparing amendments to Law No 10081 of
23.02.2009 “On licenses, authorisations and permits in the Republic of Albania”, as amended,
aiming to increase the number of authorisations that are examined and issued by or through
the NLC. The proposed amendments are being consulted with other public institutions.
During the period May – July 2014, the National Licensing Centre carried out the following
activity:
Table 7: Information on the activity of the National Licensing Centre
Period
Approved
May
June
July
Total
356
347
182
885
5
1
0
6
Rejected
172
177
92
441
In process
10
25
170
205
Pending payment
6
11
16
33
Withdrawn
6
6
0
12
303
305
292
900
0
0
0
0
544
555
444
1,543
Approved/ passed in silence
Active licences
Revoked
Total applications
Source: National Licensing Centre
Concerning business exit, the Order of Minister of Justice No 26 of 14.01.2014 “On the
approval of the Regulation ‘On defining the detailed rules for the supervisory and control
procedures of the bankruptcy administrators” was issued.
The Strategic Plan of the Bankruptcy Supervisory Agency (BSA) was prepared and is being
implemented.
BSA is preparing the draft Law on some addenda and amendments to Law No 8901 of
23.05.2002 “On bankruptcy”, as amended. The draft Law is being prepared in cooperation
with the Albanian legal firms and groups of interests. Assistance is provided by the
International Finance Corporation (IFC) under its project “Debt Resolution in Albania”.
BSA prepared during the period May – July 2014, the following templates to be used by the
parties in a bankruptcy case:
 List of secured creditors;
 List of unsecured creditors;
 List of immovable properties;
 List of movable properties;
 List of debtors;
 List of co-debtors;
 List of unmatured contracts and financial rents.
Law No 8901 of 23.05.2002 foresees two procedures in a bankruptcy case: restructuring and
liquidation.
Concerning restructuring, in the first half of 2014, eight business entities have applied for
restructuring, compared to only one application in 2013 and just four applications in the
period 2008 – 2012.
Data on liquidation for 2013 and the first half of 2014 are presented in the tables below:
Table 8: Applications for liquidation in 2013
Period
New cases
2013
Back log
Returned to
cases
judgment
114
32
Appealed
Total number
of cases
0
23
146
Source: Bankruptcy Supervisory Agency
Table 9: Applications for liquidation in the first half of 2014
Judicial District
Number of
Accepted
Refused
Dismissed
Uncompleted
cases
Tirana
38
6
2
11
19
Vlora
62
4
12
20
26
Durrësi
4
2
0
2
0
Fieri
3
0
0
3
0
Kruja
1
1
0
0
0
Dibra
0
0
0
0
0
Elbasani
0
0
0
0
0
Kukësi
0
0
0
0
0
Berati
0
0
0
0
0
Korça
0
0
0
0
0
Pogradeci
0
0
0
0
0
Përmeti
0
0
0
0
0
Lushnja
0
0
0
0
0
Burreli
0
0
0
0
0
Puka
0
0
0
0
0
Kurbini
0
0
0
0
0
Shkodra
1
1
0
0
0
TOTAL
109
Source: Bankruptcy Supervisory Agency
1.5 Financial sector

Structure of financial sector
Voluntary pension market: During the reporting period in the market continued to operate
three management companies of voluntary pension funds and 3 banks as depositories of
pension funds.
Data analysis of the private voluntary pension market at the end of June shows total net assets
under management about ALL 533,9 million ( 3,81 million Euro), or an increase in these net
assets of approximately ALL 99,4 million (22,8%). The number of members in the Pensions
Funds, at the end of June 2014 was 8.385 members, an increase of 6, 3 % compared to the
end of 2013.

Insurance market
During the reporting period there were 11 insurance companies operating in the Albanian
insurance market, of which eight Non-Life insurance companies, two Life insurance
companies and one Life and Non-Life insurance company.
The insurance premium revenues for January-June 2014 were about ALL 5, 32 billion, or 34,
6% more compared to the January-June 2013. During the period January-June 2014, the
number of signed insurance contracts was 447.244 showing a decrease of 1, 34% compared
to the same period last year. The market continued to be dominated by Non-Life insurance,
which share was about 89, 3% of the total premium volume. Life insurance market share was
10, 2% and reinsurance was 0, 5%. Market shares of voluntary and compulsory insurance
gross written premiums were respectively 45, 8% and 54, 2%.
The total of paid claims during the period January-June 2014 was over ALL 1, 32 billion or
2.44 % less, compared with the period January-June 2013.

The retail market of government securities
During the reporting period, the most active segments of the securities market was the retail
trade securities Albanian Government (treasury bills and bonds) market. In this market
continue to operate 8 banks and the Albanian Post Office, licensed by the Authority to carry
out this type of activity.
The volume of secondary market of Government securities during January – June 2014 was
dominated by transactions in short-term instruments (T-Bills) at 81 % and the other part was
by long-term instruments (notes and bonds) at 19 %. In terms of the number of transactions,
93.6 % of all transactions in the secondary market of Government securities were in T-Bills.
The statistical data of retail market of the Government securities retail market during January
– June 2014 show a predominance of transactions “Trade in the primary market" and
"Settlement of nominal value at maturity" respectively 62, 9% and 21, 6% of the total
volume.
Participation in the retail market of the Government securities is dominated by individual
investors, who perform about 97, 7 % of all transactions in this market, in comparison with
legal persons.

Capital market
The capital market during reporting period continued to remain undeveloped. Tirana Stock
Exchange (TSE) has not started to trade in securities and there is no company listed.

Banking sector developments
The developments recorded in the Albanian banking sector in the first half of 2014 were
mostly positive. The banking sector remains liquid and well-capitalized and sufficiently
profitable. Main risk to banking sector derives from a lower than expected economic growth.
A continued slowdown in economic activity would mean renewed growth in credit risk and a
sizeable fall in the banking sector profitability. Although the credit risk level stabilized during
2013 and even improved in some respects, it remains high.
The banking sector continues to be the main segment of financial intermediation in Albania,
accounting for 90.8% of financial system's total assets in the first quarter of 2014. The nonbank financial sector recorded an increasing share in total financial system, accounting for
about 9.2%, in March 2014 comparing with 7.4% at the same period last year.
Banking sector solvency positions have continued to improve – resulting from both rising
core Tier 1 capital and reductions in risk-weighted assets. The capital adequacy ratio has
improved significantly and stands on a satisfactory level. The level of the capital adequacy
ratio reached 17.9% in March 2014, from 16.8% that it was on March 2013.
Lending continued its contraction trend – most noticeable over the second part of 2013 –
reflecting not only the weak demand for borrowing but also the sale of the non-performing
loan portfolio by banks. The loan shrinkage was mostly affected by the contraction in lending
to businesses and foreign currency lending. Towards end of May 2014, bank lending was
down 0.7% from, end-2013 and -2.6 % year on year. The share of credit to non-financial
corporations, public sector and households reached about 40.6 % of the GDP at the end
March 2014 from 42.8% in March 2013.
Credit risk in banks’ portfolios as expressed by the ratio of NPLs to residents decreased
slightly on annual basis but still remains the primary concern of the banking sector. The ratio
of non-performing loans to total loans reached 23.9 % at the end of May 2014, against 24.2%
in May 2013. Although, provisioning rules are conservative, and total provisions represented
66.5 percent of NPLs at end-May 2014.
The volume of deposits in the banking sector increased despite falling interest rates. Despite a
modest overall decline in the average deposit interest rate (0.3pp from end of year 2013),
bank deposits increased 2.3% year on year in May 2014. Banks keep a sizeable liquidity
buffer. The liquidity situation of the banking sector is very good, thanks mainly to an excess
of client deposits over client loans, which reached 183% at the end of May 2014. Client
deposits and loans are considerably denominated in foreign currency (62.5% of loans and
49.8% of deposits).
The banking sector appears more hedged against direct market risk, but remains exposed to
the effect of credit quality from unwanted exchange rate and interest rates fluctuations. Total
loans classified as unhinged from the risk of exchange rate levelled ALL 176 billion the first
quarter of 2014, a downgrade of 2.97% compared to the end of 2013. Credit risk is the main
source of risk to the banking sector. On this topic, through its supervisory function, the Bank
of Albania has requested commercial banks to provide, in parallel, accurate and timely
identification of non-performing loans and create relevant provisions, as well as implement
established actions to recover the loss loans through collateral execution. These actions,
combined with measures for reducing operational costs, would establish, gradually, the
conditions for generating a stable and positive financial result, which would better support the
medium-term needs of the banking sector for capital.
Banking sector remains profitable. The banking sector’s profitability is determined above all
by the performance of large banks, which account for almost 72.6% of the banking sector’s
assets and whose return on assets (RoA) was 1.5% in end of May 2014. Banking sector net
financial results in May 2014 was positive and almost 4 times higher year on year - largely
reflecting the lower general and loan loss provisions, as a result of the considerable
deceleration in non-performing loans. Profitability indicators, RoE and RoA, increased at the
level of 11.2 % and 0.95 % from 6.4 % and 0.54 % reported at the end 2013 and from 2.24%
and 0.19% reported in May 2013.
Efficiency of financial intermediation: provide information on the development of interest
rate spreads (average lending/deposit rates); degree of competition in banking sector; share of
non-performing loans; any
The banking system continued to display a stable trend in terms of allocating and using
financial resources. This was also reflected in the Herfindahl Index [1], which measures the
level of concentration in the banking system. Concentration indicators, as measured by the
Herfindahl Index, for total assets, deposits and loans, provided evidence for a relatively high
concentration in the banking system in terms of assets, deposits and (less for) loans.
However, there seems to a slightly better distribution of shares in the market through time
and, consequently an improved competitiveness.
Table 10: Herfindahl Index of asset, deposit and loan concentration28
Indicator
2008
Herfindahl index
(assets)
Herfindahl index
(deposits)
Herfindahl index
(loans)
2009
2010
2011
2012
May
2013
2014
0.15
0.14
0.14
0.15
0.15
0.14
0.14
0.17
0.15
0.16
0.16
0.15
0.14
0.14
0.11
0.11
0.11
0.12
0.12
0.12
0.12
2010
2011
Table 11: Non-performing loans (in percent)
2008
Non-performing loans29
6.64
2009
10.48
13.96
2012
18.77
2013
22.49
May
2014
23.49
23.91
Table 12: Interest rate spreads
2008
Interest
rate
(average
lending/deposit
rates)
2009
2010
2011
2012
2013
April
2014
spreads
5.69
6.81
5.96
5.60
5.40
6.1
6
30
Table 13: Core-activity profitability indicators, in percentage (cumulative)
Ratios
Dec
Dec
Dec
Dec
Dec
May‘1
‘09
’10
‘11
‘12
‘13
4
Interest income/average interest-earning assets (1)
8.10
8.11
7.78
7.73
7.31
6.44
Interest expenses/average interest-earning assets
4.06
3.78
3.57
3.72
3.42
2.46
4.04
4.32
4.20
4.01
3.88
3.93
(2)
Net Interest Margin (NI M) {(1)-(2)}
28
The index ranges from 0 to 1. A higher index (closer to 1) implies lower competitiveness, and vice versa.
Non-performing loans (NPL) as percent of gross loans.
30
Average monthly spread
29
2. CAPACITY TO COPE WITH COMPETITIVE PRESSURE AND MARKET
FORCES WITHIN THE UNION
2.1 Endowment with human and physical capital
Employment policy
Law No. 63/2014, dated 26.6.2014, "On amendments to Law No. 8872, dated 29.3.2002, "On
education and training in the Republic of Albania" as amended” was approved.
At the end of Q1 2014 the unemployment rate was at 18.3%, as reported by INSTAT. The
number of registered unemployed jobseekers in employment offices was 143,342 persons.
50.9% of them were females, and 57.8 % were long-term unemployed. During this period,
8,865 people found employment through employment services. 7,902 of them found
employment through intermediation.
The number of subjects operating in the field of vocational training licensed by the Ministry
of Social Welfare and Youth (MoSWaY) is approximately 380. During January – June 2014,
the Public Vocational Training Centres offered professional training to unemployed
jobseekers, and people in need of professional capacities enhancement. During this period
8,792 people registered to attend vocational trainings, out of which 4,032 registered through
the Labour Offices. They attended 508 training courses. 5,466 people completed various
trainings during this period. 2,503 of them, or approximately 46%, were women. At the end
of June 2014, 5,212 people had obtained certificates.
The 2014 budget for employment promotion programmes was 270 million ALL. At the end
of June 2014, 273 projects were implemented and targeted 3,043 unemployed jobseekers.
The results are as follows:
 25 projects employed 531 people, based on DCM No. 47, dated 16.1.2008, "On the
employment promotion program on the job training”; DCM 193, dated 2.4.2014, "On
some amendments and additions to DCM No. 47, dated 16.1.2008, "On the
employment promotion program on the job training”; and DCM No. 458, dated
9.7.2014, "On an amendment to Decision No. 47, dated 16.1.2008, "On the
employment promotion program, on the job training";
 149 projects employed 1,916 people, based on DCM No. 48, dated 16.1.2008, “On
employment promotion program of unemployment jobseekers in difficulty”; DCM
No. 192, dated 2.4.2014, "On some amendments and additions to DCM No. 48, dated
16.1.2008, “On the employment promotion program of unemployment jobseekers in
difficulty"; and DCM No. 461, dated 9.7.2014, "On some amendments and additions
to Decision No. 48, dated 16.1.2008, "On the employment promotion program of
unemployment jobseekers in difficulties";
 73 projects employed 345 new graduates, based on DCM No. 873, dated 27.12.2006,
“On professional practice program of graduate unemployed”; DCM No. 187, dated
2.4.2014, "On some amendments and additions to DCM No. 873, dated 27.12.2006,
"On the extent offending, criteria and procedures for implementation of the


apprenticeship programs for unemployment jobseekers who have completed higher
education, at home or abroad";
12 projects employed 104 women belonging to vulnerable groups, based on DCM No.
27, dated 11.1.2012, “On employment promotion program of female belonging to
vulnerable groups”; DCM Nr. 189, dated 2.4.2014, "On some amendments to the
Decision No. 27, dated 11.1.2012 "On employment promotion program of female
belonging to vulnerable groups"; and DCM No. 459, dated 9.7.2014, "On some
amendments and additions to Decision No. 27, dated 11.1.2012, "On employment
promotion program of female belonging to vulnerable groups";
14 projects employed 111 young jobseekers, based on DCM No. 199, dated
11.1.2012, "On the extent of funding, criteria and procedures for implementing the
employment promotion program of unemployed young people"; DCM No. 188, dated
2.4.2014, "On some amendments and additions to DCM No. 199, dated 11.1.2012,
"On the extent of funding, criteria and procedures for implementing the employment
promotion program of unemployed workers who enter for the first time at work”; and
DCM No. 464, dated 9.7.2014, "On some amendments and additions to DCM No.
199, dated 11.1.2012, "On the extent of funding, criteria and procedures for
implementing the employment promotion program of unemployed young”.
During the reporting period, 7,506 unemployed jobseekers benefited from unemployment
assistance.
In order address obligations stemming from the National Plan for European Integration 2014
– 2020, the MoSWaY has stepped up efforts to in the framework of the Employment and
Skills Strategy 2014 – 2020. More specifically MoSWaY has designed a respective action
plan and submitted it for approval by the Council of Ministers. In the same framework, new
employment offices were open Shkodra, Korça and Fieri.
In order to stimulate employment promotion programmes, DCM No. 248, dated 04.30.2014,
“On the employment promotion programme for unemployed jobseekers with disabilities”
approval was approved.
Consultations concerning the draft of the National Fund for Employment and Skills (NFES)
have begun in the context of preparations for the European Social Fund, and a working group
made of MoSWaY experts was established with the support of IPA 2010. The purpose of the
NFES is to finance education and vocational training programmes.
Physical capital
For further information on the physical capital see Chapter 15: Energy and Chapter 21:
Trans European Networks.
2.2 Sectorial and enterprise structure
SMEs’ current situation
For information on measures to improve business environment, please see Chapter 20:
Enterprise and industrial policy.
2.3 State influence on competitiveness / competition
Large state-owned enterprises: report on the state and recent progress in restructuring large
enterprises
Albania is ranked by The Global Competitiveness Report 2013-2014 of the World Economic
Forum at 95th position out of 148 countries/economies with a decrease of 6 positions in the
general ranking from the previous year. It was included in the group of countries which are in
the second stage of competitiveness development (also called “efficiency-driven stage of the
economies”). Considering the three main dimensions (basic requirements, efficiency
enhancers and innovation and sophistication factors) of the Index, Albania got the highest
score in the first one, ‘basic requirements’ (4.2 points), ranked at 94th position. But in
general, Albania is ranked low in these three dimensions.
The most problematic factors for doing business identified in this report are access to
financing, tax rates, corruption, and tax regulation.
State aid and other forms of support to the enterprise sector
State aid amount including agriculture and fisheries in 2013 is in total 20.178,13 million ALL
(143.85 million Euro). State aid amount excluding agriculture and fisheries in 2013 is in total
19,021.23 million ALL (135.6 million Euro). The absolute amount state aid of granted in
2013 is 6 % less compared to 2012, and 22 % higher to 2011. State aid trend in 2013, is
similar to 2012:
 increased state aid amount for research and development, with minimum effect on
internal competition,
 the most frequently used type (instrument) is A1 – Subsidies and grants and A2 - Tax
relieves.
Table 14: Total state aid granted in Albania in 2011, 2012 and 2013, divided into
categories
Aid for research and development in 2013 implies the large state aid amount in the category
of horizontal aid. As reported by the National Agency of Natural Resources, State aid for
research and development was granted to enterprises under the signature of “hydrocarbon
agreements” and to their sub-contractors, through a tax exemption from customs duties for
equipment, machinery, materials, and a VAT to all contractors and subcontractors to during
research and development of petroleum operations.
The operational aid includes VAT deferment scheme on imports of machineries and
equipment, excise tax refund scheme for fuel used in electricity generation from power plants
higher than 5 MW, and the excise reimbursement scheme on fuel consumed in heated
greenhouses. For 2013, state aid was granted to enterprises on the VAT deferment scheme for
import of machineries and equipment amounted to 1,138 million ALL and on excise
reimbursement scheme for fuel consumed in heated greenhouses in the amount 22 million
ALL.
During 2013, training aid was allocated under the program of employment of unemployed
workers through job training. Training aid was granted to SME enterprises, 28 companies in
fashion industry, for the creation of 436 new jobs.
During 2013, employment aid was granted to 8 SMEs with business activities in the field of
shoes manufacturing, construction and fishing, filling 282 new work places with unemployed
workers in difficulty. Also aid was granted for the employment of workers from special
groups to 4 companies to fill 36 new work places.
During 2013, state aid was granted through competitiveness and innovation scheme in the
amount of 6, 59 million ALL and 1, 39 million ALL, to 8 enterprises to undertake economic
activities in manufacturing industry and aid to 7 enterprises to support the contracting of audit
experts for technology and innovation.
Strengthening SMEs technological capacities
For further information on measures to improve SMEs technological capacities, please see
Chapter 20: Enterprise and industrial policy.
Horizontal State aid measures: such as entrepreneurship, research, etc.
The absolute amount of horizontal state aid in 2013 is 17,881.57 million ALL (127.48 million
Euro), which is 6.4 % higher compared to 2012. Share of horizontal state aid granted in 2013
is 10 % higher compared to 2012.
Table 15: Amounts of Horizontal state aid in Albania in 2011, 2012 and 2013
Trend of horizontal state aid
For information on state aid please see Chapter 8 “Competition, part on State Aid”.
2.4 Trade integration
Albania’s trade volume regarding the January-June 2014 reached the value of 388 billion
ALL, with an increase of 10.3%. During January-June 2014, the total trade volume is
composed 66.5% from imports and 33.5% from exports. During this period exports reached
the value of 130 billion ALL, with an increase of 10.3 % and imports reached the value of
258 billion ALL, with an increase of 10.3%, compared with January-June 2013.
Exports by commodity group for January-June 2014
Minerals, fuels and electricity constitute 36.2% of the total of exports with a decrease of
about 3.3% compared with the same period of previous year. Textiles and footwear remain a
considerable sector which occupies 33.3 % of total exports with an increase of about 28.2%
compared with the previous year. Construction materials and metals constitute about 14.1%
of total exports with an increase of about 8.7%, and Food, beverages, tobacco constitute 5.5
% of total exports with an increase of about 14.7%, compared with January-June 2013.
Exports by destination countries January-June 2014
Exports of goods to EU countries reached the value of 103 billion ALL or 79.2% of total
exports, with an increase of 13.7% compared with the same period of previous year. Imports
of goods reached the value of 154 billion ALL or 59.6 % of total imports, with a decrease of
0.7%, compared to the same period of previous year.
The main country’s exports go to: Italy, Spain, Greece, and Germany. A key partner of our
exports is Italy with a value of 71 billion ALL for January-June 2014 or 68.6 % of total
exports to EU countries and with an increase of 25.8 % compare with same period of
previous year, followed by Spain with a value of 9 billion ALL or 8.9% of total export to EU
countries, and with a decrease 43%. The export to Greece, the third place reached the value
of 5 billion ALL or 4.4 % of total exports to EU countries with an increase of 21.4 %
compared with the same period of previous year.
Exports of goods to CEFTA countries reached the value of 13 billion ALL or 9.6% of total
exports, with a decrease of 7.5%, compared with same period of the previous year. Imports of
goods with the CEFTA countries reached the value of 21 billion ALL or 7.5% of total
imports, with an increase of 33.9%, compared with the same period of previous year.
Moreover, exports of goods to Turkey reached the value of 5 billion ALL or 4 % of total
exports, with an increase of 79.7%, compared with previous year. Imports from Turkey
reached the value 19 billion ALL or 7.2% of total imports, with an increase of 30.4%,
compared with previous year. EFTA countries constitute 0.8% of total exports with a
decrease 56.8% compared with previous year and imports with EFTA countries constitute
3.9% of total imports for January-June 2014, with an increase of 4 times with the same period
of previous year.
Table 16: Statistics from May 2013- June 2014
Months/Year*
05 - 13
06 - 13
07 - 13
08 - 13
09 - 13
10 - 13
Export
23,201
20,761
24,288
18,155
21,360
22,300
Import
45,131
41,499
48,383
42,403
42,123
46,680
Trade balance
-21,930
-20,738
-24,095
-24,248
-20,763
-24,380
Percentage of cover
51.4
50.0
50.2
42.8
50.7
47.8
11 - 13
12 - 13
01 - 14
02 - 14
03 - 14
04 - 14
05 - 14
06 - 14
21,008
21,411
17,869
20,304
21,301
22,720
25,318
22,465
44,879
58,976
34,921
39,193
42,459
44,308
48,216
48,908
-23,870
-37,565
-17,052
-18,890
-21,159
-21,588
-22,898
-26,443
46.8
36.3
51.2
51.8
50.2
51.3
52.5
45.9
Source: INSTAT
2.5 Real Exchange Rate
In real terms, the ALL has appreciated by 3.1% annually in the second quarter. This reflects
the appreciation of the domestic currency in nominal effective terms (NEER). Also, given the
low inflation in Euro-zone countries (Germany and Italy, even deflation in Greece), the
positive differential of domestic inflation compared to trading partners’ inflation has also
contributed to the REER appreciation.
CHAPTER 1: FREE MOVEMENT OF GOODS
Key achievements
During the reporting period, the adoption of the European standards as Albanian standards
continued. The draft Law on accreditation was submitted for adoption to the Albanian
Parliament. Number of accredited conformity bodies increased to 33. The draft Strategy on
Consumer Protection and Market Surveillance 2014 – 2020 was submitted for approval to the
Council of Ministers. The Regulation “On the veterinary medicinal products” was approved,
partially approximating the Directive 2001/82/EC. The Law 89/2014 of 17.07.2014 “On
Medical Devices” was adopted approximating Directive 93/42/EEC, Directive 98/79/EC, and
Directive 90/385/EEC.
1.1 Horizontal Issues
1.1.1 Standardisation
During the reporting period, the following European standards were adopted as Albanian
ones:
 59 CEN standards (European Committee for Standardisation) (CEN);
 97 CENELEC standards (European Committee for Electro technical Standardisation);
 101 ETSI standards (European Telecommunications Standards Institute);
 43 ISO standards (International Organisation Standardisation);
 19 IEC standards (International Electro technical Commission).
74 European standards and their relevant amendments included in Eurocodes are full
translated and adopted as S SH EN, while the rest of standards mentioned above, is adopted
by “cover page” method.
All events in the standardisation field are published at General Directorate of Standardisation
(GDS) website www.dps.gov.al, including meetings and documents approved by Managing
Board and Technical Board, legislation, 6-months programme, bulletin and online Catalogue
of Albanian Standards. Press articles are provided also at the GDS website and the very last
rubric is for new standards published from GDS.
GDS’s database and website provide information on the status of standards, their scope,
technical committees and other information about standards (date of publication, number of
pages and price). The 2014 Catalogue of Albanian Standards and the Bulletin No 59 were
published in hard copy and electronically at GDS’s website www.dps.gov.al and submitted to
interested parties.
A total of 883 Albanian standards were sold during the reporting period, 764 out of these
were European standards (EN).
Total number of standards
Origin
Standards
S SH
3,041
S SH EN
18,420
S SH ISO+IEC
2,877
Others
Total
703
25,041
The following graph shows the current state of standards and structure by their origin:
1.1.2 Accreditation
The draft Law on Accreditation of Conformity Assessment Bodies was endorsed by the
Council of Minister in June 2014, partially approximating Regulation (EC) No 765/2008 of
the European Parliament and of the Council of 9 July 2008 setting out the requirements for
accreditation and market surveillance relating to the marketing of products and repealing
Regulation (EEC) No 339/93 (full approximation of provisions on accreditation). The draft
law is submitted to Parliament for approval. The draft Law is in accordance with the National
Plan for European Integration 2014 – 2020, due to be adopted within 2014.
The self-assessment according to the document ILAC/IAF–A3 for each of the clauses of the
ISO/IEC 17011 was prepared and submitted to EA secretariat in the beginning of June 2014.
Directorate of Accreditation (DA) participated in EA – General Assembly meeting on 27-28
May 2014 in Prague, Czech Republic, in order to push forward the peer evaluation process.
DA has participated actively in the activities of ILAC and IAF. It voted and commented on
the ILAC and IAF documents. DA representative participated in mid-year ILAC/IAF General
Assembly held on 25 – 26 April 2014, in Frankfurt, Germany.
Three conformity assessment bodies (two testing laboratories and one personnel certification
body) were accredited during the reporting period. DA issued decisions to maintain the
accreditation for 10 conformity assessment bodies. Scope of accreditation for two testing
laboratories was extended. One inspection body requested self-withdrawal of accreditation.
One testing laboratory has applied for re-accreditation and one for initial accreditation. 18
conformity assessment bodies (17 laboratories and one certification body) are under
accreditation procedure. Five initial assessment visits and seven surveillance visits were
carried out in the reporting period. Three conformity assessment bodies applied for extension
of accreditation scope.
For the first time, one personnel certification body was accredited according to ISO/IEC
17024 and one medical laboratory was assessed. The initial assessment and surveillance visits
to inspection bodies were performed according to the new standard ISO/IEC 17020:2012.
The accreditation status for three inspection bodies is maintained according to ISO/IEC
17020:2012.
Actually, the total number of accredited conformity assessment bodies is 33; from which 19
testing laboratories, 3 certification bodies and 11 inspection bodies.
Three foreign assessors (two Italian assessors and one Macedonian) were engaged in
accreditation process of three testing laboratories.
Training of DA staff and assessors continued to be supported by Regional IPA 2008 “Quality
infrastructure in the Western Balkans and Turkey” and German Government. Five DA
experts participated in the following events:
 Training on ISO 17065, delivered by Physikalisch-Technische Bundesanstalt (PTB)
on 6 – 7 May in Belgrade, Serbia;
 Training on PT schemes, delivered by Regional IPA 2008 “Quality infrastructure in
the Western Balkans and Turkey” on 19 May, in Skopje, FYROM;
 Training on Product certification and ISO/IEC 17065:2012 “Conformity assessment –
General requirements for bodies certifying products, processes and services”
delivered by Regional IPA 2008 “Quality infrastructure in the Western Balkans and
Turkey” on 27 – 28 May, in Milan, Italy;
 Training on Quality Infrastructure, delivered by GTZ on 2 – 4 June, in Belgrade,
Serbia.
DA has continued to deliver training courses for conformity assessment body staff and other
interested parties according to its annual training plan. There are organised: two 2–days
training events on ISO/IEC 17020:2012, one day training on PT provider and ISO/IEC
17043:2010 and two days training event on ISO/IEC 17065:2012. In total, 50 trainees
participated in these trainings.
On 9 June 2014, DA celebrated the World Accreditation Day. On that occasion, DA
organised a awareness campaign on benefits of accreditation, especially for supply of energy,
that included different activities such as interviews in different newspapers and magazines
and telecasts in three national media.
In July 2014, DA organised the ceremony for the accreditation of five conformity assessment
bodies appraising their efforts for getting the accreditation and to support them in their future
activities.
1.1.4 Metrology
The tendering process for the transfer of the equipment of the mass laboratory to the new
premises is in its final phase. The General Directorate of Metrology (GDM) is preparing a
draft Law on some amendments to Law No 9875 of 14.02.2008 “On metrology”.
In May – July 2014, 13,100 measurement instruments were verified or 40% more compared
to the same period last year. The reassessment of all authorised subjects that provide
metrological services was carried out according to the legal requirements/ standards.
1.1.5 Market Surveillance
The Order of the Minister of Economic Development, Trade and Entrepreneurship No 305 of
30.05.2014 “On standard operation procedures for market surveillance inspectors” was issued.
The draft Decision of Council of Ministers “On the approval of the 2014 – 2020 Strategy on
Consumer Protection and Market Surveillance” was submitted on 10.07.2014 for approval to
the Council of Ministers. The draft Strategy, which includes Quality Infrastructure, was
consulted with line ministries, business community and consumer organisation, academic
staff and potential donors.
In May – July 2014, 2,010 metrological inspections were carried out. Non-conformities were
found in 1% of inspections, and relevant administrative measures were taken.
1.2 Old Approach Directives
1.2.2 Chemicals
The following draft legal acts are being prepared:
 The draft Law “On chemicals management”, aiming to partially approximate the
Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18
December 2006 concerning the Registration, Evaluation, Authorisation and
Restriction of Chemicals (REACH), establishing a European Chemicals Agency,
amending Directive 1999/45/EC and repealing Council Regulation (EEC) No 793/93
and Commission Regulation (EC) No 1488/94 as well as Council Directive
76/769/EEC and Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and
2000/21/EC. In accordance with National Plan for European Integration 2012-2014, it
is due for adoption in Q4 of 2014.
 Draft Decision of Council of Ministers “On the approval of regulation on
classification, labelling and packaging of chemical substances and mixtures”, that
transposes Regulation (EC) No 1272/2008 of the European Parliament and of the
Council of 16 December 2008 on classification, labelling and packaging of substances
and mixtures, amending and repealing Directives 67/548/EEC and 1999/45/EC, and
amending Regulation (EC) No 1907/2006, including its Annexes I-V. The draft
decision of Council of Ministers is in accordance with National Plan for European
Integration 2012-2014; due to be adopted in Q4 of 2014;
 Draft Guideline of Minister of Environment “On harmonised classification and
labelling for certain hazardous substance” that transposes the Annex VI of Regulation
1272/2008.
The last two legal acts under preparation aim to fully approximate the Regulation 1272/2008.
1.2.7 Textile
The Regulation (EU) No 1007/2011 of the European Parliament and of the Council of 27
September 2011 on textile fibre names and related labelling and marking of the fibre
composition of textile products and repealing Council Directive 73/44/EEC and Directives
96/73/EC and 2008/121/EC of the European Parliament and of the Council, is being
translated. The draft decision of Council of Ministers for the approximation of this Directive
is included in the National Plan for European Integration 2014 – 2020; due to be adopted in
the Q4 of 2014.
Veterinary medicinal products
In the veterinary field, the Order of Minister of Agriculture, Rural Development and Water
Administration No 370 of 29.07.2014 “On the approval of the Regulation ‘On the veterinary
medicinal products” was issued, partially approximating the Directive 2001/82/EC of the
European Parliament and of the Council of 6 November 2001 on the Community code
relating to veterinary medicinal products. The Regulation provides rules on the production,
importation and placing on the market of veterinary medicinal products. The Order was
included in the National Plan for European Integration 2014 – 2020, scheduled to be adopted
in 1 Q 2014 and enter into force in 2 Q 2014.
1.3 New Approach Directives
1.3.22 Packaging and Packaging Waste
Based on the Decision of Council of Ministers No 177 of 6.03.2012 “On packaging and
packaging waste”, which fully approximated the European Parliament and Council Directive
94/62/EC of 20 December 1994 on packaging and packaging waste, the Ministry of
Environment is preparing to establish a reimbursement scheme for the return and recycling of
waste from beverage packaging. During reporting period, the feasibility study “On
establishment the system to return the packaging waste and the commitment of producers to
promote the collection and recycling system” was prepared. The study proposes the reduction
of the tax from 100 ALL/kg to 50 ALL/kg, to all the recyclers of plastic waste generated in
Albania.
1.3.23 Medical Devices
Concerning medical devices, the Law 89/2014 of 17.07.2014 “On Medical Devices” was
adopted. The Law partially approximates the Council Directive 93/42/EEC of 14 June 1993
concerning medical devices, Directive 98/79/EC of the European Parliament and of the
Council of 27 October 1998 on in vitro diagnostic medical devices, Council Directive
90/385/EEC of 20 June 1990 on the approximation of the laws of the Member States relating
to active implantable medical devices. The Law was included in the National Plan for
European Integration 2014 – 2020, scheduled to be adopted in 3 Q 2014 and enter into force
in 2014.
The law regulates the placing on the market of medical devices and it will improve the safety
of patients. It defines and enables the regulation of:
 Drugs and Medical Devices Agency for registration, inspection, and adverse event
report.
 The registration of medical devices and registration of persons responsible for placing
medical devices on the market.
 The essential technical requirements that medical devices, in vitro medical devices
and implantable medical devices must meet.
 Conformity assessment procedures for medical devices.
 Authorization criteria for conformity assessment bodies for medical devices.
 Documentary requirements needed to be submitted to the competent authorities before
putting on the market and / or using of medical devices.
 Vigilance system and market surveillance procedures.
In the field of medicinal products for human use, the Law No 105/2014 of 31.07.2014 “On
drugs and pharmaceutical service” was adopted partially approximating the Directive
2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the
Community code relating to medicinal products for human use and Directive 2001/20/EC of
the European Parliament and of the Council of 4 April 2001 on the approximation of the laws,
regulations and administrative provisions of the Member States relating to the
implementation of good clinical practice in the conduct of clinical trials on medicinal
products for human use.
1.4 Free movement of cultural goods
Currently, the Ministry of Culture is preparing a draft Law on the cultural heritage, which
shall fully approximate the Albanian legislation with Directive 2014/60/EU of the European
Parliament and of the Council of 15 May 2014 on the return of cultural objects unlawfully
removed from the territory of a Member State and amending Regulation (EU) No 1024/2012
and with the Council Regulation (EEC) No 3911/92 of 9 December 1992 on the export of
cultural goods. The current law on cultural heritage does not entirely cover the return of
cultural objects unlawfully removed from the territory of a Member State. The draft law on
culture heritage has undergone a thorough process of consultation with all the relevant
stakeholders, including a revision by the Council of Europe. Their comments and suggestions
are currently being incorporated into the final draft.
As regards the return of Albanian cultural objects unlawfully displaced to an EU Member
State, they are covered only by the UNESCO Convention on the Means of Prohibiting and
Preventing the Illicit Import, Export and Transfer of Ownership of Cultural Property 1970.
CHAPTER 2: FREE MOVEMENTS OF WORKERS
2.1 Access to the labour market
In collaboration with IOM, in April 2014, a training was organised in Tirana with the scope
of improving the implementation of the strategy for the reintegration of Albanian returnees
and on the new Law On foreigners. In this training, 38 Regional and Local Office of the
National Employment Service participated and a total of 80 participants, with 2-3 specialists
from each office.
On May 2014 the labour migration policies were included in the new draft/strategy for skills
and employment 2014-2020 and its action plan.
There are adopted 18 DCM’s in implementation of the new law on foreigners. 17 of DCMs
were approved in February 12, 2014, and one was approved on May 2014: DCM No 265 of
7.05.2014 “On the exemption from the obligation to take work permit and work registration
certificate for the citizens of the Republic of Kosovo and the citizens of the Republic of
Serbia of Albanian ethnicity”.
The process of issuing the document of work permit has continued. All foreign citizens
presented to the structures of Ministry of Social Welfare and Youth are counselled and
informed on the procedures for taking the work permit or the authorization needed in order to
work in the territory of Republic of Albania.
The declaration format for employment verification and documentation that should represent
the citizens of the European Union, the Schengen area, the United States and the Republic of
Kosovo citizens and nationals of the Republic of Serbia with Albanian ethnicity, are
finalized. The Order of the Minister No 147 of 9.07.2014 “Declaration on Employment of
Citizens of the European Union, the Schengen Area, Citizens of the United States of America
and the Republic of Kosovo citizens and nationals of the Republic of Serbia of Albanian
ethnicity” was approved.
On 3-4 June 2014, in Sarajevo, three specialists have taken part in the presentation of the
drafts of two regional studies on labour mobility and an assessment of the potential for
regional actions and a proposed regional plan to promote labour mobility and development of
the social economy in SEE.
The work for the finalization of the 6 months monitoring report of the Strategy for
Reintegration of Albanian citizens returning to the country is in process.
The proceedings for the entering into force of the bilateral agreement with the state of Qatar
have continued. In 25 June, 2014 the Decision of Council of Ministers “On the approval of
the agreement between the Council of Ministers of Albania and the government of the State
of Qatar, in relation to the regulation of employment of the citizens of the Republic of
Albania in the State of Qatar” was approved.
2.2 Coordination of the social security system
A draft for coordination of social security schemes between EC and Albania is in the process
of approval.
On Social Security Agreements:
The official translation procedures to the Agreements with Hungary, Luxembourg and
Romania are completed. Agreements on social security between Hungary and Luxembourg
have been approved by DCM No 531 of 6.08.2014 and DCM No 530 of 6.8.2014.
The agreement with Romania is in approval process in CM.
On 26 - 30 May 2014, the second round of negotiations was held in Canada in respect of
concluding the Social Insurance Agreement between Canada and the Republic of Albania.
Health insurance benefits are not included in this Agreement. The Canadian health insurance
system is organized by provinces. It is not under the responsibility of the Canadian Federal
Government. During these negotiations, the parties agreed in principle on the Social
Insurance Agreement between Canada and the Republic of Albania. A number of articles of
the draft social insurance agreement discussed during this meeting were proposed by the SII
representatives of the Albanian delegation.
Negotiations with Czech Republic and Macedonia on the agreements on the costs of health
services have continued. Further Steps are envisaged in the second half of 2014.
CHAPTER 3: RIGHT OF ESTABLISHMENT AND FREEDOM TO PROVIDE
SERVICES
Key achievements
Preparations for the approximation Albanian law with the Services Directive are continuing.
The draft law on postal services was prepared and is being consulted with interest groups.
Law No 90/2014 of 17.07.2014, adding the professions of social worker and psychologist to
the list of regulated professions in the Republic of Albania, was approved.
3.1 & 2 Right of establishment and freedom to provide services
When it comes to approximation of Albanian law with EU acquis on the right of
establishment and free movement of services, two processes are being carried out in parallel.
First, the approximation with Directive 2006/123/EC of the European Parliament and of the
Council of 12 December 2006 on services in the internal market is progressing. Second, the
screening of Albanian legislation as to compliance with sectors excluded from the Services
Directive has also started.
A provision-by-provision table of concordance of the relevant Albanian acts (i.e. Law No
10171 of 22.10. 2009 “On regulated professions in Republic of Albania”, Law No 10081 of
23.02.2009 “On licenses, authorizations and permits in the Republic of Albania” and Law No
9723 of 03.05.2007 “On the national registration centre”) with the Services Directive has
been prepared. In accordance with National Plan for European Integration 2012-2014 it is due
for adoption in 3d quarter of 2014 and it is planned to enter into force in 2nd quarter of 2015.
It aims at partial approximation of Albanian law with Directive 2006/123/EC. Since a number
of provisions laid down therein apply only to the Member States, full approximation is
envisaged by the time of accession to the European Union. This draft law provides a general
umbrella framework outlining the fundamental rules on authorisation schemes and
procedures as well as the points of single contact, the right to information. Furthermore, the
draft law provides general provisions on quality of services.
The screening on mining sector is finalized and the results are being consulted with the
relevant ministries.
Concerning the enhancement of institutional capacities, on 12 June 2014 a workshop took
place for members of the Inter-Institutional Working Group on European Integration. It was
dedicated to the methodology for preparation and updates to the Legislative Gap Analysis
(LGA) in chapter 3. The workshop materials were published at the website of the Ministry of
Economic Development, Trade and Entrepreneurship as a web-based training tool to be used
by the members of other inter-institutional working groups, as needed
3.3 Postal service
A draft law on postal services was prepared by the Inter-Institutional Working Group set-up
as per Order of Minister of State for Innovation and Public Administration No 1183 of
18.03.2014. At the end of the current reporting period this draft was subject to consultations
with line ministries and relevant stakeholders. The new law on postal service aims to
approximate the Albanian law with the latest directive of postal service 2008/6/EC directive.
The new law will be full in compliance with acquis. Based on NPEI the new law will be
adopted on 2015.
3.4 Mutual recognition of professional qualifications
Law No 90/2014 of 17.07.2014 “On an addendum to Law No 19171 of 22.10.2009 ‘On the
Regulated Professions in the Republic of Albania”, was adopted. The Law adds the
professions of social worker and psychologist to the list of regulated professions in the
Republic of Albania.
State exams in the professions of Pharmacist, Physiotherapist, Medical Imaging (Radiology),
Nurse, Logoped, Midwife, General Medicine, Dentist and Lab Technician took place in May
2014, with the following results:
Professions
Pharmacist
Medical
imaging
Nursery
Midwife
General
Medicine
Dentistry
Lab Technician
Registered
candidates
187
74
Candidates
participated in
exam
148
60
Candidates
passed the
exam
65
47
Candidates
passed the
exam (in %)
44
78
1265
190
95
1039
158
84
490
108
79
47
68
94
171
75
154
54
103
41
67
76
The State Exam for Teachers was carried out in July 2014. National Exam Agency is still
processing the results of this exam.
CHAPTER 4: FREE MOVEMENT OF CAPITAL
Key achievements
Bank of Albania is evaluating the possibility to reorganize the time framework for
approximation of Albanian law with Directive 2007/64/EC “On payment services in the
internal market” aiming to take into account also the new developments under discussion at
the European Commission (PSD 2). At end of 2012, the FDI stock for immovable properties
activities stood at EUR 50.92 million. During the first six months of 2014, the Albanian
Interbank Payment System (AIPS) reflected an increase of the activity in the system in terms
of both volume and value in annual bases. During the first half of 2014 Intraday Loan (ILF)
increased. The increasing trend of the transactions processed in AECH, in number and in
value, is extended also in the first half of 2014. An increasing trend is noticed also in the
number and the use of payment cards. During the reporting period in the field of money
laundering prevention and terrorism financing, there is a clear increase of the SARs reported
by the GDT.
4.1 Regime of Capital Movements and Current Payments
In the framework of “Central bank cooperation programme with the Western Balkans-Bank
of Albania Needs Analysis”, experts of European System of Central Banks have
recommended to BoA staff to take into account in the draft-act also the new developments
under discussion at the European Commission (PSD2). The above mentioned
recommendation is based on the fact that the amendments are going to change dramatically
the scope of application as well as other issues. Based on the experts’ opinion these
amendments are going to be effective by the end of the year. In this regard, BoA is evaluating
the possibility to reorganize the time framework for approximation of Albanian law with
Directive 2007/64/EC “On payment services in the internal market” in order to take into
account also the new developments.
According to the Bank of Albania (BoA), at end of 201231, the FDI stock for immovable
properties activities stood at EUR 50.92 million, which up by 19.17 million as compared to
2011.
4.2 Payment System
During the first half of 2014 (January- June), interbank transactions in the national currency
were cleared and settled with efficiency and security conform to the rules and procedures of
both systems operated and administered by the Bank of Albania: Albanian Interbank Payment
System – AIPS for settlement of large-value payments and the Albanian Electronic Clearing
House – AECH for clearing small-value payments. Both AIPS and AECH are operated in
line with the envisaged schedule for settling and clearing payments, without any significant
deviation from it. In the absence of extraordinary situations, the core basic infrastructure of
national payments in ALL reflected stability. In February 2014, BoA finalised an upgrade of
31
This is the latest available data available to the Bank of Albania.
the two systems aiming to enhance the security and stability of these infrastructures.
Furthermore the above mentioned upgrade supports the alignment of payment process with
the Single Euro Payments Area (SEPA) standards.
During the first six months of 2014, the Albanian Interbank Payment System (AIPS)
reflecting an increase of the activity in the system in terms of both volume (1.15 %) and value
(11%) in annual bases.
Table 1: AIPS system
AIPS
Number of transactions
Value of transaction ( ALL
billion)
Average value/transaction
(ALL million)
2010
80,356
4,436.66
2011
75,269
4,085.06
2012
77,090
6,743.43
2013
86,365
6,871.61
201432
41,317
3,533.42
55.21
54.27
87.47
79.56
85.51
Source: Bank of Albania
During the first half of 2014 Intraday Loan (ILF) increased by 71% year on year (y-o-y) in
value and 50% y-o-y in number. Even though the use of this liquidity instruments, in absolute
terms, has been increased during this period the ratio of total transactions of AIPS covered by
ILF has decline reflecting the good liquidity condition of the banking system.
Table 2: AIPS system
AIPS
Number of ILF
Value of ILF (ALL
billion)
Average value/transaction
(ALL million)
2010
278
74.99
269.75
2011
200
84.39
2012
270
90.80
2013
264
421.95
336.30
956.55
252.53
201433
193
257.87
133.6
Source: Bank of Albania
With reference to the Automated Electronic Clearing House – AECH 34 , which clears
payments under ALL 1.5 million, the increasing trend of the transactions processed in AECH,
in number and in value, is extended also in the first half of 2014 in comparison with the same
period of 2013, by 20 %( in number) and 13.5 % (in value).
Table 3: AECH system
2010
32
2011
2012
2013
January- June, latest available data.
January- June, latest available data.
34
The AECH system processes and clears customer orders with a value of less than ALL 1.5 million.
35
January- June, latest available data
33
201435
Number of transactions
Value of transactions (billion
ALL)
Average value/transaction
(million ALL)
332,777
43.98
388,208
64.10
361,552
66.99
363,507
72,767.50
195,985
37,477.45
0.13
0.17
0.19
0.20
19.12
Source: Bank of Albania
Main contribution on the growth of transactions cleared in AECH seems to be generated by
the transactions initiated by commercial banks on behalf of their clients. The above
mentioned development is estimated to reflect the transmission of measures taken by the
Bank of Albania in the context of promoting the use of payment systems36.
Concerning payment instruments, till March 2014 37 a slow but consistent increase of
electronic payments, in comparison with the paper based on first quarter 2013, is noticeable.
Thus, although the paper based credit transfers have a dominant role in the payment structure
of the Albanian economy, electronic credit transfers (home banking) as well as card payments
shown a considerable increase.
Table 4: Payments by type of instruments
Credit Transfers
1 – paper based
2. Non-paper based
a - Internet banking
b - Telephone banking
c - others
Payments by Cards
1 – debit cards
2 – credit cards
Direct Debit
Cheques
Total
Q1 2013
Number
Value
1,522,056 736,168
1,459,720 712,349
62,336
23,819
62,332
23,819
Q1 2014
Number
Value
1,645,634 770,719
1557,190 751,079
88,444
19,641
85,894
19,623
Annual Change
In %
In %
8%
5%
7%
5%
42%
-18%
38%
-18%
4
311,969
179,199
0.01
2,659
1,195
2,550
462,953
258,826
18.26
3,842
1,718
63.650%
48%
44%
277,830%
44%
44%
132,770
202,072
12,248
1,464
9,390
20,646
204,127
191,430
9,872
2,123
3,780
17,746
54%
-5%
-19%
45%
-60%
-14%
2,048,345
768,863
2,309,889
96,089
13%
4%
Source: Reports by banks according to the “Methodology for reporting on payment instruments".
In Albanian market there are 11 banks offering Home Banking services, which during recent
years have shown a proactive role on these segment of payment services market, materialised
36
In March 2011, the Bank of Albania made a number of amendments to the Regulation no.53, date 15.10.2007
“On the functioning of the Albanian Interbank Payment System (AIPS) for large-value payments and
Regulation no. 55, date 15.10.2007 “On the functioning of the Albanian Electronic Clearing House (AECH) for
small-value payments “to promote the use of payment services provided by the banking system and reduction of
cash in the Albanian economy.
37
Due to the methodology used by BoA on statistics of payment instrument (quarterly data) the latest available
data- March 2014.
in a considerable increase of the account accessed through the internet (in 2013 this indicator
was doubled) and consequently an increase in the number of the transactions.
With regard to payment cards, an increasing trend is noticed also in the number and the use of
payment cards. From the infrastructure perspective until June 2014, only 14 out of 16 banks
operating in the Republic of Albania, issue payment cards, of these, only 7 banks offer POS
infrastructure.
Therefore, during the first quarter of 2014 (March 2014), the statistics obtained from banks'
reports show that in terms of market infrastructure, presented with a modest decline of ATM
(with about 7 closed terminals) compared with end of the year 2013, while POS increased by
about 111 terminals, for the same period.
Graph 1: The number of the terminals ATM and POS until the March 2014
Source: Reports by banks according to the “Methodology for reporting on payment instruments".
In March 201438, the number of total cards in circulation increased by 6.7 %, compared to
end-2013. In terms of card functions, the number of debit cards increased around 6.9%,
compared to 3.31 % increase in the number of credit cards.
Graph 2: The number of the card with credit and debit function until March 2014
Source: Reports by banks according to the “Methodology for reporting on payment instruments”
The increase in the number of cards and terminals is associated also with an increase in the
number of the transactions as we have already mentioned. Analysing card payments per type
of terminals shows that cash withdrawals from ATMs have dominated role with 87%of total
38
Latest available data, these indicators are reported in quarterly bases.
transaction, while payments with cards at POS counts only to 13 %. Card payments at POS
terminals show a predominance of the number of transactions conducted through debit cards
by about 55.9 %, but in terms of value, credit card transactions appear significantly higher
than those with debit cards.
Table 5: Type of payments by cards (values in million ALL)
1- ATM cash withdrawal
2- ATM deposit
3- ATM credit transfers
4- POS cash withdrawal
5- Card payments in POS
- debit cards
- credit cards
Total
Volume TI’
13
2,715,332
3
13
781
311,969
179,199
132,770
3,028,098
Value TI
’13
27,278.79
0.02
0.24
121.29
2,659.00
1,195.20
1,463.80
30,059.34
Volume
TI’14
3,067,938
3
5
460
462.953
258.826
204.127
3.531.359
Value TI’14
30.260,37
0,00
0,02
103,62
3.841,47
1.718,25
2.123,22
34.205,47
Source: Reports by banks according to the “Methodology for reporting on payment instruments”
4.3 Anti-Money Laundering
As regards the main developments during the reporting period in the field of money
laundering prevention and terrorism financing, during 01.05.2014 – 15.07.2014, a total of 193
suspicious activities (SARs) were reported, of which 108 were reported by banks, 45 by
General Directory of Taxes (GDT), 13 by notaries, 9 by the money remitter companies, 7 by
General Directory of Customs. Comparing with the first three months of the 2014, the trend
shows an increase of about 20% of the total number of SARs. Especially there is a clear
increase of the SARs reported by the GDT: 2 SAR during January – March 2014 meanwhile
the number of the SARs has reached 45 during May – 15 July 2014.
As regards, detailed statistics on SARs, freezing/blocking orders, trainings, cases
disseminated by the GDPML and the cooperation with the law enforcement agencies are
reported in Chapter 24 “Justice, Freedom and Security”.
CHAPTER 5: PUBLIC PROCUREMENT
Key achievements
Regarding the reporting period, several measures and activities were undertaken in the field
of public procurement, aiming the enforcement of legislation and improving the
professionalism of contracting authorities. These include mainly the monitoring of public
procurement procedures, and organization of trainings for the procurement officials in
contracting authorities.
In the framework of legislative developments, it was adopted the Decision of Council of
Ministers No 379 of 11.06.2014, “On some addenda to the Decision of Council of Ministers
No 1 of 10.01.2007, “On the approval of public procurement rules”, as amended. The said
Decision adds as qualification criteria, respectively for works, goods and service contracts,
the payment of electricity by the economic operators, participating in procurement
procedures.
In this framework, some amendments to the law on public procurement are being prepared by
a working group set up for this purpose. These amendments were initiated in the framework
of anti corruption measures undertaken by the Government.
On the basis of the Prime Ministers Order No 189 of 21.7.2014 an inter-institutional working
group for the identification, organization and promotion of public private partnership was setup. Its mandate includes also establishment of a favourable legal framework to encourage,
attract, and develop facilities for the foreign investments realized as concession/public private
partnership.
In the framework of enforcing the public procurement legislation, and in particular the
monitoring competence, as foreseen to the Law No 9643 of 20.11.2006, “On public
procurement”, as amended, the Public Procurement Agency (PPA) prepared in June 2014, a
3-month Monitoring Plan (June-August 2014). In the framework of such process, PPA
requested information for 28 procurement procedures, out of which 18 are negotiations
without publication procedures, carried out by 24 contracting authorities, during the period
January – May 2014.
So far, referred to this Plan, PPA issued 11 decisions concerning the contracting authorities,
which were monitored. During this process, were identified violations of contracting
authorities in respecting the legal and sub-legal requirements when conducting the concerned
procurement procedures, for which PPA decided for the relevant administrative measures.
With regard to the preparation of a national strategy on the development of public
procurement system, in June 2014 a draft-document was prepared in this regard, which was
discussed with representatives of SIGMA. Further discussions with relevant stakeholders will
be followed in order to decide on next steps.
In the framework of improving the professionalism of contracting authorities, during the
reporting period, PPA undertook several training activities:
 On 6-7 May 2014, in collaboration with the Albanian School of Public Administration
(ASPA) a 2 days training was organized on public procurement issues with new
procurement staff of contracting authorities at central level, based on their requests
provided to the PPA. The number of participants at this activity was 26 employees.
 On 9-10 June 2014, in collaboration with ASPA, a 2 days training was organized on
procurement of services, with 29 representatives of contracting authorities at central
level.
 On 23-24 June 2014, in collaboration with ASPA, a 2 days training was organized on
framework agreements, with 18 representatives of contracting authorities at central
level.
Two representatives of PPA participated to the 10th Public Procurement Knowledge
Exchange Platform, organized on 27-30 May, 2014 in Istanbul, Turkey, and co-sponsored by
the World Bank, Asian Development Bank, European Development Bank, and the Islamic
Development Bank. The 10th Public Procurement Knowledge Exchange Platform mainly
aimed at sharing experiences and practices of the participating countries in measuring
performance of public procurement.
A representative of PPA participated to the Public Procurement Network in Western Balkan,
organized by Regional School of Public Administration, on 15-16 July 2014, in Danilovgrad,
Montenegro. The objective of this network was to share best practice and experiences of the
participating countries, with the focus on further development of the national public
procurement systems.
The table below provides statistical information of the PPA, on the published procurement
procedures, according to their type, including the respective limit funds39, for the time period
January – July 2014.
January – July 2014
Total number of published procedures
Total limit fund of published procedures
Consultancy service and design contest (no.)
Consultancy service and design contest (value)
Negotiated procedure with prior publication of the
contract notice - international (no.)
Negotiated procedure with prior publication of the
contract notice - international (value)
Negotiated procedure with prior publication of the
contract notice - local (no.)
Negotiated procedure with prior publication of the
contract notice - local (value)
Open procedure - international (no.)
39
All values are shown in Albanian Lek (ALL).
4,039
38,106,724,445
53
577,875,795
7
Open procedure - international (value)
Open procedure - local (no.)
Open procedure - local (value)
Request for proposal (no.)
Request for proposal (value)
Restricted procedure - local (no.)
Restricted procedure - local (value)
Negotiated procedure without prior publication of the
contract notice (no.)40
Negotiated procedure without prior publication of the
contract notice (value)
3,614,055,020
1,039
28,129,006,187
2,939
5,785,062,443
1
725,000
1,543
3,045,715,101
Source: Public Procurement Agency
During the period January 2014 – August 6, 2014, at the Public Procurement Commission
institution are deposited 623 total complaints filed by the economic operators who have
pretended irregularities of published documentation or the evaluation of bids by the
contracting authorities.
Below is shown the total number and percentage of reviewed complaints investigated by the
Public Procurement Commission institution for the period January 2014 – August 6, 2014.
Month
January
February
March
April
May
June
July
August
Total
Accepted (+)
3
34
45
48
35
42
26
0
233
37.4%
YEAR 2014
Refused (-)
10
36
55
63
71
60
41
3
339
54.4%
In process
0
0
0
0
0
0
42
9
51
8.2%
Total
13
70
100
111
106
102
109
12
623
2.1%
11.2%
16.0%
17.8%
17.0%
16.5%
17.5%
1.9%
Source: Public Procurement Commission
According to Article No.11 of Law No.125/2013 “On Concessions and Public Private
Partnerships”, the Public Procurement Agency is competent authority on concessions and
public private partnerships. Pursuant to that Article, ATRAKO has no right to change laws or
to take initiative to develop this sector.
According to Article No.16, Paragraph 4, Contracting Authority may involve the concession
unit (ATRAKO) in its projects but this is not mandatory.
40
The data (number and value) given for negotiated procedures without publication of the contract notice are
referred to the contracts signed for such procedures.
According to this article, since April 2014, ATRAKO has been involved in projects listed
below:
Ministry of Environment



Waste collection in central government institutions and schools in Tirana region;
Sapling farm regeneration in Cërriku, Elbasani;
Electric and electronic waste collection national scheme.
Ministry of Transport and Infrastructure


Marina in Durres;
“Arbri” highway.
A training of IP3 about PPP projects in water and pipelines, in which ATRAKO specialists
has participated, organized with the help of USAID.
CHAPTER 6: COMPANY LAW
Key achievements
Amendments to Law No 9901 of 14.04.2008 “On entrepreneurs and companies” were
submitted for approval to the Parliament aiming to fully approximate the Albanian law with
Directive 2009/101/EC. The new National Accounting Standards were approved and will be
implemented starting from 1 January 2015. NACA monitored the implementation of IAS and
IFRS standards by very large enterprises. A working group was established to prepare
amendments to Law No 10091 of 5.03.2009 “On legal auditing, organisation of approved
licensed statutory auditor”, aiming partial approximation of Albanian law with Directive
2006/43/EC.
6.1 Company law
The draft Law on some amendments to Law No 9901 of 14.04.2008 “On entrepreneurs and
companies” was endorsed by Council of Ministers with its Decision No 361 of 11.06.2014
and submitted to the Parliament for adoption. It aims at full approximation with Directive
2009/101/EC of the European Parliament and of the Council of 16 September 2009 on
coordination of safeguards which, for the protection of the interests of members and third
parties, are required by Member States of companies within the meaning of the second
paragraph of Article 48 of the Treaty, with a view to making such safeguards equivalent, In
accordance with National Plan for European Integration 2012-2014it is planned to enter into
force in 4 Q 2015.
Concerning the implementation of the Corporate Governance Code, the Ministry of
Economic Development, Trade and Entrepreneurship, organised on 3 July 2014, a meeting
with relevant stakeholders, to raise awareness on the Code and its implementation. The
questionnaires to business entities are distributed through the National Registration Centre. A
consolidated report based on the responses of the business community will be prepared in
September 2014.
Concerning electronic signature, the National Registration Centre is using the qualified
certificates issued by the National Agency for Information Society (NAIS) to provide the
business extract in electronic form.
Aleat Ltd has not started to issue qualified certificates to citizens to be used via the National
ID card. Aleat Ltd is still implementing its online platform.
6.2 Accounting and Auditing
National Accounting Council of Albania (NACA) endorsed the improved version of National
Accounting Standards in June 2014. The National Accounting Standards were announced and
declared mandatory to be used by Order of Minister of Finance No64 of 22.07.2014. As
stipulated in point 2 of this Order, the new National Accounting Standards will enter into
force on 1 January 2015.Standards are published in the Official Gazette, official website of
the Ministry of Finance and the National Accounting Council website.
In May – August 2014, NACA staff prepared the 2013 consolidated version of IAS / IFRS
(International Accounting Standards/ International Financial Reporting Standards). NACA
will examine and endorse these standards in its next meeting at the end of September 2014.
2014 updates to IAS / IFRS, submitted by the International Accounting Standards Board
(ISB), are translated and will be reviewed in early September 2014 by NACA’s Review
Committee. Upon the approval of the translation, the improved standards will be submitted
for announcement to the Minister of Finance, and further for publication in the NACA’s
website.
The draft law on some amendments to Law No 9228 of 29.04.2004 “On the annual financial
statements” is being prepared. It aims at partial approximation of Albanian law with Directive
2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual
financial statements, consolidated financial statements and related reports of certain types of
undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council
and repealing Council Directives 78/660/EEC and 83/349/EEC. It also aims to introduce a
new classification of economic units into micro, small, medium and large. In accordance with
National Plan for European Integration 2012-2014, it is due for adoption in 4 Q 2015 and it is
planned to enter into force in 1 Q 2016.
In order to examine the level of approximation of Albanian legislation on classification,
NACA, at its meeting on 25 June 2014, decided to cooperate with the General Directorate of
Taxation to prepare a statistical analysis of the economic units in the Republic of Albania and
their possible classification. The working group established at NACA, composed of NACA
members and staff and representatives of stakeholders, is examining the necessary legal
amendments based on a prepared table of concordance.
NACA has cooperated effectively with the National Registration Centre, which provided the
financial statements of around 30 business entities classified as very large businesses, in order
to monitor the implementation of IAS and IFRS. A full report on quality of IFRS
implementation from monitored entities will be presented to the Board of NACA in the next
meeting in September 2014. NACA will inform the Public Oversight Board, the Institute of
Authorized Chartered Auditors of Albania (IEKA), as well as the Minister of Finance. As in
previous practices, if the financial reporting is not up to the standards
In cooperation with a foreign consultant, in the framework of the Corporate Financial
Reporting Enhancement Project (CFREP), REPARIS program (financed by the World Bank),
in the early July 2014, a “discussion paper” was drafted. It will serve as a starting point for
preparation of a particular accounting standard for Non for Profit Organizations (NPO).
Meetings and roundtables with relevant stakeholders will be organised in September 2014 to
consult the document and to prepare the first draft standard. The draft standard of NAS for
NGOs is scheduled to be finalised in mid 2015.
The Institute of Authorized Chartered Auditors of Albania (IEKA) has carried out the
following activities in the field of auditing:
 Translation of the Guide to Using International Standards on Auditing in the Audits of
Small- and Medium-Sized Entities, Third Edition;
 Preparation of simplified procedures for auditing of small and medium sized entities;
 Training of its members on simplified auditing procedures.
In the field of auditing, IEKA received during this period all the deliverables of the
Component 3 of the CFREP, World Bank REPARIS Program, such as:
 Manuals on establishing internal quality control of audit firms and sole practitioners,
 A toolkit on the investigation and discipline,
 Proposals on the preparation of an additional manual on the quality assurance of
public interests entities.
IEKA is implementing the new Regulation on Quality assurance of auditors and audit firms.
Based on the Order of the Minister of Finance, a working group was established to prepare
the amendments to Law No 10091 of 5.03.2009 “On legal auditing, organisation of approved
licensed statutory auditor”. This law will be aimed at partial approximation of Albanian law
with Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006
on statutory audits of annual accounts and consolidated accounts, amending Council
Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC. Draft
Law amendments are to be prepared based on the conclusions that would be given under the
Component 1 of the CFREP. These draft law amendments are foreseen to be consulted with
all relevant stakeholders before the draft law is submitted to the Minister of Finance. The
process is foreseen to be finalised by the end of 2014 and.
CHAPTER 7: INTELLECTUAL PROPERTY LAW
Key achievements
In order to address commitments deriving from Article 73 of the SAA and to implement the
National Plan for European Integration (NPEI) 2014 – 2020, the new draft law on copyright
was sent to the Council of Ministers for approval. Law No. 55/2014, dated 29.5.2014, "On
some amendments and addenda to Law No. 9947, dated 7.7.2008, "On industrial property”
was approved. Furthermore, on 26.6.2014, it was approved Law No. 66/2014, dated
29.6.2014, "On some amendments and addenda to Law 8488, dated 13.5.1999, "On the
protection of topographies of integrated circuits”.
7.1 Approximation of Laws
7.1.1 Copyright and related rights
The new draft law "On copyright and related rights" was sent for approval to the Council of
Ministers in August 2014, after it was reviewed by the pertaining working group, and
comments and suggestions by line ministries were incorporated. This draft law follows the
NPEI 2014-2022 and aims at approximation with the following EU legal acts:
1. Directive 2006/115/EC of the European Parliament and of the Council of 12
December 2006 on rental right and lending right and on certain rights related to
copyright in the field of intellectual property (codified version),
2. Directive 2006/116/EC of the European Parliament and of the Council of 12
December 2006 on the term of protection of copyright and certain related rights
(codified version),
3. Directive 2004/48/EC of the European Parliament and of the Council of 29 April
2004 on the enforcement of intellectual property rights,
4. Directive 96/9/EC of the European Parliament and of the Council of 11 March 1996
on the legal protection of databases,
5. Directive 2001/84/EC of the European Parliament and of the Council of 27 September
2001 on the resale right for the benefit of the author of an original work of art,
6. Directive 2009/24/EC of the European Parliament and of the Council of 23 April
2009 on the legal protection of computer programs,
7. Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001
on the harmonization of certain aspects of copyright and related rights in the
information society,
8. Council Directive 93/83/EEC of 27 September 1993 on the coordination of certain
rules concerning copyright and rights related to copyright applicable to satellite
broadcasting and cable retransmission.
7.1.2 Industrial property
Law No. 55/2014, dated 29.5.2014, "On some amendments and addenda to Law No. 9947,
dated 7.7.2008, "On industrial property” was approved and published in the Official Journal
on 24.06.2014. The draft was prepared by the General Directorate of Patents and Trademarks
(GDPT), with the assistance from the European Patent Office, the Croatian Office for
Trademarks and Industrial Designs, and the Albanian Mountain Area Development Agency,
in the framework of the IPA 2009 project "Development of the system of intellectual
property rights in Albania".
Law No. 55/2014, dated 29.5.2014, "On some amendments and addenda to Law No. 9947,
dated 7.7.2008, "On industrial property” aims full approximation of Albanian law with the
following EU legal acts:
1. Directive 98/44/EC "On the legal protection of biotechnological inventions”,
2. Directive 98/71/EC "On the legal protection of designs",
3. Directive 2008/95/EC "To approximate the laws of the Member States relating to
trade marks”,
4. Directive 2004/48/EC "On the enforcement of intellectual property rights”.
On 26.6.2014, Law No. 66/2014, dated 29.6.2014, "On some amendments and addenda to
Law 8488, dated 13.5.1999,"On the protection of topographies of integrated circuits ", was
approved. Amendments and addenda aim to fully approximate the Albanian legislation with
Directive No. 87/54/EEC “On the legal protection of topographies of semiconductor
products”.
In both cases the abovementioned changes were envisaged in the National Plan for European
Integration 2014-2020.
Following the adoption of Law No. 55/2014, dated 29.5.2014, the GDPT drafted a series of
bylaws acts, which were sent for consideration to the Ministry of Economic Development,
Trade and Development (MEDTE) in August 2014. A list of the proposed bylaws is provided
in Annex III.7.1.
The GDPT is reflecting changes in its internal regulation following the new law on civil
servants. The GDPT is also working towards some amendments and addenda to Law No.
9947, dated 7.7.2008, to reflect its role as regulated by the law on civil servants.
7.2 Enforcement of intellectual and industrial property rights
The Albanian Copyright Office (ACO) registered 48 copyright certifications and two
contracts, and certified one transfer of economic rights.
The ACO carried out the inspections of 570 subjects to monitor uses of artistic, literary and
scientific rights. The ACO focused mostly on Albania’s biggest districts: Tirana, Elbasani,
Shkodra, Lushnja, Fieri and Durrësi. The ACO imposed 3 fines in relation to copyright
infringement. The ACO plans to carry out inspections in the other districts of the Republic
Albania.
At present, the ACO is examining the 2013 financial records for the three licensed collective
management agencies41 operating in the Albanian market.
During the reporting period, the ACO took part in 94 administrative proceedings. The ACO
was represented by the Sector of Monitoring and Administration of Complains in five trials.
Industrial property
During the reporting period May – July 2014, GDPT processed the following IPR
registrations:
 255 applications for national registration, out of which 120 Albanian applications;
 536 applications stemming from the Madrid Agreement and Protocol.
 106 applications for patents.
After the national registration, four applications were sent to the World Intellectual Property
Organization, in order to register according to the Madrid Agreement.
As far as the enforcement of IPR is concerned, data can be reported as follows.
Administrative proceedings:
6 requests were submitted to the Board of Appeal of the GDPT (BoA of GDPT) during the
reporting period:
 four requests were rejected;
 two requests were taken into consideration; and
 Nine requests are being considered.
During the reporting period 15 cases between various subjects were being heard in various
courts. More specifically, eight cases were pending at the Tirana District Court, five cases at
the Administrative Court, and two cases at the Administrative Court of Appeal.
At present, the GDPT is summoned in one court proceeding as the defendant, and is acting as
a third party in other seven cases.
During the reporting period, the General Directorate of Customs (GDC) took the following
measures to enforce IPR:
 approved 33 applications for actions;
 proposed a risk profile in relation to protection of industrial rights; and
 confiscated 102 pair of shoes suspected to be counterfeited.
7.3 Institutional Framework
41
The three collective management companies are the Forum for protection of producers and screen-writers of
the Albanian cinematography and audiovisual works (FMAA), the Agency for protecting rights of artists and
performers (AKDIE), and the Agency for protecting the related rights of phonograph producers (AMP).
During the reporting period, the IT infrastructure of the GDPT was updated to help the
automation of IPR registration procedures, and monitor the accuracy of the data and increases
labour productivity and speed the delivery of services to third parties.
The GDPT carried out a further update of its website http://www.dppm.gov.al. A module for
searching on-line data on IPR was incorporated on the GDPT website. During the reporting
period, the IPAS system was controlled and updated on regular basis. Updated data provided
by WIPO were included in the latter system.
The GDPT published a newsletter on the activities it carried out during May – July 2014.
7.3.1 Institutional capacities increase
In order to increase the levels of inter-institutional cooperation among the various entities
dealing with IPR issues the following activities were undertaken during the reporting period:
 On 10 July 2014 representatives of the GDPT and the GDC drafted a joint
memorandum of cooperation to increase business awareness on sharing information,
and organizing joint activities through the 2013 – 2014 IPA project. Representatives
of the ACO and the General Directorate of the Police (GDP) also participated in the
meeting.
 On 21 July 2014 a meeting of the inter-institutional working group monitoring the
implementation of the National Strategy for the Enforcement of Intellectual Property
Rights 2010 – 2015 was held. The meeting focused on the necessity to adopt the draft
law on copyright, to address EU recommendations among other issues.
 The GDPT drafted a Memorandum of Understanding (MoU) to be signed with the
National Registration Centre to improve industrial property rights, increase business
awareness on trademarks, designs and geographical indications.
 The GDPT and the Electronic and Postal Communications Authority (EPCA) are
working towards a MoU, in order to hold joint responsibility concerning online
copyright protection, piracy and IPR infringement.
 The General Directorate of Taxation (GDT) and the GDC are working towards a joint
MoU.
During the reporting period, the following trainings, seminars and other meetings took place:
 On 4 July 2014 SEED experts presented to the GDC the updated INES+
functionalities according to Regulation 608/2013 “Concerning customs enforcement
of intellectual property rights and repealing Council Regulation (EC) No 1383/2003.
 On 7 July 2014, at the MEDTE premises, representatives of the Deutsche Gesellschaft
für Internationale Zusammenarbeit (GIZ) GmbH held a meeting with members of the
working group for Chapter 7. The aim of this meeting was to identify specific needs
to support of approximation of economic and trade legislation with the EU acquis,
and a project proposal for further technical assistance.
 On 7-11 July 2014 GDPT representatives took part in a seminar organized by EPO
and OHIM on IPR in Munich, Germany.

On 23 June 2014 GDPT representatives participated in a roundtable discussion that
took place at the OECD technical assistance project "Triple Helix",” on the project
concept and related innovation.
 On 23 July 2014 the IPR Directorate of the GDC organized a seminar together with
several right holders 42 , where customs officers, anti-smuggling units and 22
representatives of the Law Enforcement Department of the GDC were trained to
identify falsified products.
 On May 17, 29, 31, and June 2, 3, 9, 10, 18, 19 2014 the IPR Directorate of the GDC
completed a cycle of lectures on IPR for its employees. As a result, 220 employees
were trained.
7.4 Promotional and awareness raising activities
During the reporting period the following promotional and awareness raising activities took
place:
 On 22 May 2014 the GDC organized a workshop on "Progress and challenges in the
field of IPR". Business representatives and rights holders were also in attendance. The
GDPT presented achievements made in the framework of the National Strategy on
Intellectual Property Rights 2010 – 2015.
 Throughout June 2014 the GDPT participated in the National Moving Fair 2014
events in Vlora, Korça, and Shkodra. The GDPT, in collaboration with other agencies,
informed stakeholders on services offered to businesses.
 On 24-26 June 2014, in the framework of services provided by TAIEX and
INTERPOL, the ACO benefitted from a workshop on "Enforcement of copyright and
related rights for judiciary system and other enforcement institutions". It focused on
IPR enforcement experience in the Western Balkan countries and other countries of
the region including Slovenia, Bulgaria and Croatia.
 The GDC in collaboration with the IPA 2011 project organized an awareness
campaign on IPR protection for secondary and high school pupils.
 The GDC organized a workshop on “The progress and challenges in the IP area”,
where representatives of IPR related institutions, representatives of chambers of
commerce, right holders and business representatives were in attendance.
 The ACO, Interpol and the GDP plan to undertake joint activities in the fight against
piracy. This cooperation will be translated into concrete actions this upcoming
September – October2014 period. The joint efforts are planned to benefit from
coverage on national media, and certain statistics will emerge for this campaign.
Conclusion
IPR protection and enforcement institutions have considerably increased joint efforts for
better performance and higher professional and public awareness. The ACO is actively
monitoring proper implementation of IPR legislation, while the GDPT and other concerned
institutions continue to legally respond to counterfeiting and infringement issues. Overall, all
42
Adidas TM, Bjorn Borg TM, Lvmh Brands, Puma TM, Pentland Brand, Luis Vuitton, Kyocera TM, Apple
TM, Samsung TM, Stihl TM
institutions dealing with IPR continue to improve public services and increase human
capacities.
CHAPTER 8: COMPETITION POLICY
Key achievements
During reporting period, the Competition Authority (CA) was dealing with exclusive and
special rights. New regulation on categories of agreements, decisions and concerted practices
between liner shipping companies was approved. The number of complaints to the
Competition Authority is continuously increasing in a number of sectors of the economy,
which are under investigation for potential infringement of competition rules.
8.1 Competition
The Secretariat of CA has assessed (ex-post evaluation) the concessionaire agreement
regarding the exclusivity given in the service of the motor vehicle control (see below at
Annex point 1), the exclusivity given for financing, set up and functioning of the scanning
service of containers and other vehicles in Albania (see below at Annex point 5) and also the
exclusivity given in the Durres Port. This process is still continuing with the evaluation of
other concessionaire agreements such as the fiscal stamps.
In implementation of Article 70 and 71 of the SAA, the Competition Authority (ACA) has
continued with the approximation of the Albanian law with EU acquis by approving the
following acts:
 New regulation on categories of agreements, decisions and concerted practices
between liner shipping companies was approved in accordance with the EU
regulation. Decision No 322 of 3.07.2014 of Competition Commission “On the
approval of the regulation “On some categories of agreements, decisions and
concerted practices in the liner transport of goods” approximating with the Council
Regulation (EC) No 246/2009 of 26 February 2009 on the application of Article
81(3) of the Treaty to certain categories of agreements, decisions and concerted
practices between liner shipping companies (consortia) and Commission Regulation
(EC) No 906/2009 of 28 September 2009 on the application of Article 81(3) of the
Treaty to certain categories of agreements, decisions and concerted practices between
liner shipping companies (consortia). The draft regulation has been distributed at the
legal firms and also nearby the Ministry of Transport and Infrastructure for opinion
and comments and also published at Competition Authority website for different
comment from the third parties;
 Competition Authority is in the process of preparation of the Guideline “On the
applicability of Articles 8 and 9 of Law 9121, of 28.07.2003 “On Protection of
Competition”.43 The guideline has been drafted and is internally discussed among the
Secretariat staff before the Competition Commission decision. It is foreseen to be
approved till the end of 2014;
Communication from the Commission — Guidance on the Commission's enforcement priorities in applying
Article 82 of the EC Treaty to abusive exclusionary conduct by dominant undertakings: 52009XC0224(01);
(2009/C 45/02) (OJ C 4)5, 24.2.2009, p. 7–20
43

The Competition Authority is translating the EU Guideline “On vertical restrains”
(2010/C 130/01) for the purpose of approximation and drafting of a new guideline on
vertical restrains.
During the reporting period, the Albanian Competition Commission has adopted 13
decisions:
Procedural and administrative procedures (the opening of preliminary and in-depth
investigations, extension of the deadlines)
→
5 decisions
Decisions on concentration authorization
→
1 decision
Decisions on the approval of legal acts
→
1 decision
Decisions on recommendations
→
2 decisions
Decisions on assessment of the complaints/requests →
3 decisions
Decision of fine imposed
→
1 decision
The Competition Commission made various decisions regarding the opening and closure of
different investigation procedures in sectors of economy such as insurance, fuel, tobacco etc;
yet there are no decisions of sanctions imposed for prohibited agreement or abuse of
dominance.
For further information on the Decisions of the Competition Commission, please see Annex
8.1: Decisions of the Competition Commission.
The Competition Authority is implementing investigative procedures in a number of key
sectors of the economy such as fuel sector, telecommunications, insurance, maritime, etc.
Investigative procedures are performed based on the legal framework in force.
Fuel Sector: The in-depth investigation procedures are ongoing. Necessary inspections are
carried out at the undertakings under investigation and information processed for the
reporting purposes.
Telecommunication sector: Following submitted complaints, the information is gathered to
assess the competition situation in this market.
Maritime Transport: The investigation procedures are ongoing. Necessary investigations
are carried out in undertakings for more evidences and data regarding the operations of this
sector. Gathered information is processed and data evaluated
Monitoring is conducted in a number of sectors - energy, security, medical, waste etc.
Following recommendations and decisions made by the Competition Commission, other
sectors are also monitored such as vegetable oil; cement market, the market of liquid gas, etc.
The Competition Authority has completed monitoring of excise products. This monitoring
started due to some public concerns presented in the media about the lack of competition in
markets where products are subject to excise duties, given the recent changes in the fiscal
package and the impact of the fiscal burden of excise products. As a conclusion, due to the
characteristics of markets and competition between and within brands and based on
administered data related the behavior to price, there are no signs of restricting competition in
the relevant markets.
The number of complaints addressed to the Competition Authority is increasing and are
considered a priority by the institution. Some of these complaints which are subject to
competition law are reviewed and will be used for opening of the monitoring procedures.
During the reporting period seven complaints were addressed, regarding liquid gas market,
telecommunication, security, etc. One of the complaints is concluded with Decision No 323
of 8.07.2014, while others are in the review process, in accordance with the applicable
provisions and deadlines. The Decision No 323 of 8.07.2014 “On the assessment of the
complaint of the undertaking “Pelikan Security” sh.p.k regarding the procedures of public
procurement with object” The service of Security where the Competition Commission
decided “On the closure of the assessment procedure of the complaint of the Undertaking
“Pelikan Security” sh.p.k in the market of procurement of the service of security, because
there were not enough evidences for violation of the article 4 of the Law. Also, it results that
in these service procurement procedures and physical security there is a large participation
and a large number of undertakings bidding / participating, there were not found elements of
supply agreements and the winning bids ranging from 70% - 90% of limit fund and noted the
widespread participation of undertakings (10 undertakings participating in any tendering
procedure).
The Albanian Competition Authority is dedicated to increasing of staff capacities through the
active participation in different trainings and seminars. During the reporting period,
representatives of the Competition Authority participated in the workshops regarding the
prohibited agreements and abuse of dominance held in Slovenia in May; regarding the
Competition Policy at the forum held in Sofia Bulgaria; regarding the competition in rail
transport on the seminar held in Montenegro and regarding the public procurement and
cartels in public procurements on the seminar held in Macedonia.
8.2 State aid
The State Aid Control Sector received three state aid notifications from aid provider. The
Department for Entrepreneurship Support in the Ministry of Economic Development, Trade
and Entrepreneurship notified the state aid scheme on “Support for woman entrepreneurs”
and state aid scheme on “Start-up Fund” in accordance with Article 20 (1) of Law No 9374 of
21.04.2005 “State Aid”. The purpose of the aid scheme for woman entrepreneurs is providing
support for productive investment and for job creation. The Department for Entrepreneurship
Support also notified the start-up aid scheme which consists in a subsidized loan scheme. The
loans are granted to physical persons who were created up to 3 years prior to applying for
funding under the programme. The aid grantor specifies that the scheme is designed to
support the creation of small and medium sized enterprises. In July 2014, the Ministry of
Energy and Industry notified the state aid scheme “Host Government Agreement between the
Republic of Albania and the Trans Adriatic Pipeline (TAP) AG regarding the Trans Adriatic
Pipeline project” (HGA) in compliance with the state aid rules. Currently the state aid team is
assessing in details the HGA provisions and invited the authorities of Ministry of Finance and
also the aid grantor (Ministry of Energy and Industry) to provide further information and
questions to be asked. If while the examining of the notification, state aid structures finds that
the measures contained in the notification do not constitute state aid within the meaning of
the State Aid Law, it shall pass a decision thereof. If the measures contained in the
notification constitute state aid within the meaning of the Law, and the granting of state aid is
compatible, the State Aid Commission upon the proposal of the State Aid Control Sector will
assess its lawfulness and also a possibility for its justification and also pass a decision thereof.
The three above mentioned state aid notifications will be submitted to the State Aid
Commission (SAC) in order to be assessed on the basis of the state aid legislation. SAC may
deviate from the recommendations of the SACS in state aid cases.
Since January to May 2014, the State Aid Control Sector has subsequently required from the
Municipality of Tirana the notification of state aid scheme by three official letters. The
Municipality of Tirana, has already implemented without a prior notification an alleged state
aid guarantee scheme which was approved by the Decision of Municipality Council of Tirana
No 20 of 9.04.2013 “On the implementation of the program of economic development and
employment”, “Guarantee fund scheme” and the eligibility criteria and procedures for the
selection of commercial bank””. The State Aid Control Sector asked the municipality to
notify the scheme according to state aid rules imposed by the SAA, when in the absence of
such notification the scheme would be declared as an unlawful aid. Also, in the official
request it was raised the importance of such notification, for the enforcement of state aid rules
and all the decisions approved by the State Aid Commission (SAC) are already published in
the Official gazette. Due to a lack of official response from the authority of Municipality of
Tirana, based on the state aid law, the State Aid Commission is expected to pass a decision
after the completion of the assessment procedure on compatibility of the state aid granting
and based on the proposal of the State Aid Control Sector.
The State Aid Controlling Sector prepared the State Aid Annual Report 2013, based on state
aid data from aid providers. Following the approval from the State Aid Commission, the
report was approved by DCM No 365 of 11.06. 2014. For further information on state aid
annual report, please see Chapter on “Economic Criteria”.
Since May 2014, State Aid Controlling Sector prepared an action plan for state aid
awareness. With the assistance of two state aid experts from the Ministry of Business
Innovation in UK, the State aid Control Sector organized an workshop on the topic “State Aid
in Albania” on 23 June 2014. The aim of this initiative was to raise awareness on the state aid
at central level across governmental units, specifically on the obligations for the application
of state aid rules in Albania. This workshop was attended by 26 civil servants from 8 line
ministries and departments directly involved in the drafting of policies and strategies,
officials responsible for drafting the budget programs, as well as employees responsible as
contact point on the area of state aid within their institutions. In addition, on 26 June 2014,
the first regional workshop was organized in the municipality of Saranda, which also assisted
in raising the awareness on state aid amongst local civil servants.
In May, the State Aid Control Sector requested TAIEX support for an expert mission to
organize state aid training campaigns and increase awareness at all governmental line
ministries and local municipalities in Albania. The target group will be civil servants and
policy makers at national ministries and sub national government (local municipalities)
responsible in the development, implementation and enforcement of financial support.
Based on the new EU state aid legislation package that entered in force, the State Aid Control
Sector filed request for TAIEX support on 27 July 2014, to organize an expert mission to
assist the Albanian state aid team in drafting the new state aid law and secondary legislation.
Specific provisions on independence and decision-making procedure, criteria for recruitment,
inter-institutional co-operation, and sanctions foreseen for breaching state aid scheme
notification obligations and other arrangements will be main areas of concern during to new
drafting of state aid law.
CHAPTER 9: FINANCIAL SERVICES
Key achievement
Amendments to Regulation “On licensing, organisation, activity and supervision of foreign
exchange bureaus” were approved. These amendments are a response to concerns raised
during the supervision of foreign exchange bureaus, mainly related to transparency of their
practice vis-à-vis customers using the foreign exchange services. Approval of the Law No.
52, date 22.05.2014 "On the insurance and reinsurance" approved by the Parliament on
22/05/2014 and Law No. 54/2014, "On some amendments of Law No. 9572, dated
03.07.2006 “On the Financial Supervisory Authority”.
9.1 Banking
In order to strengthen the supervisory processes and to enhance the market discipline with
respect to consumer protection, Decision No. 31 dated 30.04.2014 of the SC of BoA was
approved. It provides for several amendments to the existing Regulation No. 31, dated
06.06.2007 “On licensing, organisation, activity and supervision of foreign exchange
bureaus”. These amendments are a response to concerns raised during the supervision of
foreign exchange bureaus, mainly related to transparency of their practice vis-à-vis customers
using the foreign exchange services.
The existing regulation provides for transparency related arrangements (for instance, receipts
should include commission charged by a foreign exchange bureau on transaction). The
practice, however, appears to be rather confusing as customers are not informed about it
before a transaction takes place. The commission is charged as a percentage of the amount of
foreign currency purchased or sold and is quite considerable.
The newly introduced amendments to the regulation also address concerns related to
activities of cambists outside the bureau premises, which is now regulated by a provision that
explicitly penalises the entity in case of breach or failure to fulfil this condition (BoA shall
fine the entity and/or its administrator at the amount of ALL 20,000 (twenty thousand) to
ALL 100,000 (one hundred thousand).
Basel II implementation process and COREP44
44
As far as Pillar 1 is concerned, the new capital requirements are approved and the COREP tables are
discussed with banking industry. With the new Pillar 1 requirements and the COREP in place, a “parallel
running” has been required by banks, starting at the second quarter 2014 and lasting until the end of 2014. This
will also serve as a time for clarification and resolution of any potential problem or concern that might be
encountered during this phase.
Meanwhile, the work for implementation of Pillar 2 has already started and is expected to last throughout the
entire 2014 and 2015. With regard to market discipline and Pillar 3 requirements in general, Bank of Albania is
planning on reviewing and updating its current regulation no.60, dated 29.08.2008 “On the minimum
requirements on disclosing information from banks and foreign bank branches” 44, within year 2014.
The data on capital adequacy ratio, according to the new reporting system COREP (parallel
running/testing period is in place), have been provided/ reported by banks based on the
financial figures of the year 2013 and the first period of 2014. In addition, also the new draft
regulation “On regulatory capital” is under the drafting process and discussions within the
working group45.
The draft regulation46 is partly in alignment with the Regulation (EU) No 575/2013 of the
European Parliament and of the Council of 26 June 2013 “On prudential requirements for
credit institutions and investment firms and amending regulation (EU) No 648/2012 (Part I)
and Basel III as well. This sublegal act provides the new prudential requirements of
supervisory authority (Bank of Albania) for banks on the manner of bank own funds
calculations, the structure and its elements, the criteria for qualifying the elements as Tier I
and Tier II ones, the regulatory deductions/adjustments, prudential filters, required level of
own funds, etc. This sublegal act provides the new prudential requirements of supervisory
authority (Bank of Albania) for banks on the manner of bank own funds calculations, the
structure and its elements, the criteria for qualifying the elements as Tier I and Tier II ones,
the regulatory deductions/adjustments, prudential filters, required level of own funds, etc.
9.2 Insurance and pension insurance
In the field of non-banking financial market, the Albanian Financial Supervisory Activity
(hereinafter AFSA) has deepened its efforts, for the approximation of the legislative
framework with EU legislation, aiming the further improvement of this market, strengthening
of the supervision and institutional capacities. During the reported period, the following
measures were taken.
The Law No. 52, date 22.05.2014 "On the insurance and reinsurance" approved by the
Parliament on 22/05/2014, came into force on July 4, 2014. This measure implements
National Plan for European Integration 2014-2020, chapter 9 “Financial Services”, nonbanking sector. Besides the implementation of this new law, the Albanian FSA will also work
in preparing the respective legislation acts required under this law, within 1 year after entry
into force of this law.
During the reporting period the AFSA has started the following projects:

45
46
With the support of the World Bank (WB) through First Initiative (Financial Sector
Reform and Strengthening Initiative) the implementation of a technical assistance
project dedicated to the reform of insurance market has began. This project supports
the implementation of recommendations from the 2013 FSAP. The main aims of this
project are to assist the AFSA with implementation of legal and regulatory reforms
aimed at strengthening the supervision and regulation of the insurance sector and to
enable the development of earthquake insurance. Thus, in support of the new
insurance law and the main risk-focused manual, the following will be developed and
implemented within 2 years:
Bank of Albania Decision No.2310, dated 26.09.2013.
It will be concluded within 2014.


o a comprehensive set of secondary regulations;
o guidelines and methodologies required for effective thematic on-site inspections;
and
o a risk based framework for the supervision of the life insurance.
With the support of the WB through First Initiative (Financial Sector Reform and
Strengthening Initiative) the implementation of a technical assistance project
dedicated to the reform of pension supervision has began. The objective is to assist
the AFSA in enhancing the regulation and supervision of private pensions and to
contribute to the expansion of coverage in a more secure, sustainable and efficient
pension system in Albania. This project would support the implementation of
recommendations from the 2013 FSAP to strengthen and develop the area private
pensions in Albania. The aim is to create a diversified public and private pension
system that would be fit for purpose for the long-term.
The AFSA is undertaking some measures regarding the liquidity risk management for
investment funds. Following the recent FSAP, one of the main recommendations was
to impose liquidity requirements as a pool of liquid assets, to investment funds that
invest in illiquid securities. The outcome of these measures that will be undertaken by
the AFSA is to provide some insights and comments on a draft regulation that is being
discussed with the WB.
Market developments in insurance and pension
Insurance: The insurance premium revenues for January-June 2014 were about ALL 5.316
million, or 34,61% more compared to the January-June 2013. During the period January-June
2014, the number of signed insurance contracts was 447,244, showing a decrease of 1.34%
compared to the same period of last year. The market continued to be dominated by Non-Life
insurance, which share was about 89.31% of the total premium volume. Life insurance
market share was 10.18% and Reinsurance was 0.51%. Market shares of voluntary and
compulsory insurance gross written premiums were respectively 45.80% and 54.20%. The
total of paid claims during the period January-June 2014 was over ALL 1.318 million or 2,
44% less, compared with the period January-June 2013.
Private Pension: During 2014 in the market continued to operate three management
companies of voluntary pension funds and 3 banks as depositories of pension funds.
Data analysis for private voluntary pension market at the end of June 2014 shows total net
assets under management about ALL 535.9 million (3,82 million Euro)47, or an increase in
these net assets of approximately ALL 99.84 million (22,90%). The number of members in
the pension funds at the end of June 2014 was 8.385 members; this constitutes an increase of
6, 31% when compared with the end of 2013.
47 Clarification: AFSA clarifies that in its reporting for the period September 2013 – March 2104 (first
contribution) has been a lapse, the total net assets under management in late 2013 for private voluntary pension
market was 3.16 million Euro. Please make the appropriate correction.
9.3 Capital market
During the reporting period the securities market related to investment funds and the one
related to retail sale of government securities (treasury bills and bonds) constituted the most
active segments of the securities market. The capital market remains undeveloped. Tirana
Stock Exchange has not started to trade in securities and there is no company listed.
In the view of the legal regulation in the securities field and an effective supervision of the
activities of the operators of this market, the following acts relating to collective undertakings
were approved:
• Decision of FSA Board No 96, of 25.06.2014 approved the Regulation No 96 of
25.06.2014 “On the form and amount of capital that management companies are
obliged to maintain”. Partially approximated with Commission Regulation (EU) No
583/2010 of 1 July 2010 implementing Directive 2009/65/EC of the European
Parliament and of the Council as regards key investor information and conditions to
be met when providing key investor information or the prospectus in a durable
medium other than paper or by means of a website
• Decision of FSA Board No 97 of 25.06.2014 approved the Regulation No 97 of
25.06.2014 “On the key investor information document that shall be provided to
investors of collective investment undertakings”. Partially approximated with
Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009
on the coordination of laws, regulations and administrative provisions relating to
undertakings for collective investment in transferable securities (UCITS).
Developments in the securities market
Investment Funds: “Raiffeisen Investment Fund Prestige” and “Raiffeisen Invest Euro Fund”
exercised their activities. According to the data analysis for Investment Funds the market
value in 30.06.2014 of the net assets of these funds amounted 65.07 billion ALL (464 million
Euro) with an increase of 29.3% compared to 31.12.2013. This market is dominated by
investment in Government Bonds which represent 79.3% of funds assets, with an increase of
22, 04% compared to 31.12.2013. On 30.06.2014 the number of funds’ members who
invested in both Investment Funds was 34.885.
The retail market of government securities: During the reporting period one of the most
active segments of the securities market was the Government securities retail trade (treasury
bills and bonds) market. In this market a total of 8 banks and the Albanian Post, as licensed
by the Authority, were active.
The volume of secondary market of Government securities during January-June 2014 was
dominated by transactions in short-term instruments (T-Bills) at 81% and 19% of long-term
instruments (notes and bonds). In terms of number of transactions, 93.6% of all transactions
in the secondary market of Government securities were in treasury bills (T-Bills). The
statistical data of retail market of the Government securities during January-June 2014 show
a predominance of transactions “Trade in the primary market” and “Settlement of nominal
value at maturity” respectively 62.91% and 21.64% of the total volume. Participation in the
retail market of the Government securities is dominated by individual investors, who perform
about 97.71% of all transactions in this market, in comparison with legal persons.
Capital market: During the reporting period the capital market continued to remain
undeveloped. Tirana Stock Exchange (TSE) has no company listed on it.
Structure of Financial Supervision Authority
The AFSA during the reporting period continued to function under the structure adopted by
the Assembly of the Republic of Albania, Decision No 98 of 30.04.2007 “On approval of the
organizational structure of the Financial Supervisory Authority”, with the proposal of the
Board of the Authority. Currently AFSA has 52 employees.
Law No 54/2014 “On some amendments to Law No 9572 of 3.07.2006 ‘On the Financial
Supervisory Authority” entered into force on 17 July 2014. This measure implements
National Plan for European Integration 2014-2020, Chapter 9 “Financial Services”, nonbanking sector. According to the amendments to the AFSA law, the Albanian Parliament will
approve the new members of board within 2 months of the entry into force of this law. The
new Board of AFSA within one month after its approval will agree on a new organizational
structure.
On 12.06.2014 the Albanian Parliament also approved amendments to the Law No 9584 of
17.07.2006 “On the salaries, remuneration and structures of the independent constitutional
institutions and other independent institutions as established by law”, as amended. These
amendments were necessary in order for the new Law No 54/2014 “On some amendments to
Law No 9572 of 3.07.2006 “On the Financial Supervisory Authority” to become effective.
In fulfilment of the recommendations of the EU Progress Reports on the strengthening of the
AFSA administrative capacity, the training of employees continued according to their
respective profiles and positions, in all the three non-banking financial sectors. During the
reporting period May 2014 - August 2014 the following activities were carried out:
 On 27-28 May 2014 a seminar on “Risk Based Supervision”, organized by European
Insurance and Occupational Pension Authority (EIOPA) in collaboration with the
World Bank and Slovenian Agency of Insurance Supervision (AZN), took place in
Ljubljana, Slovenia. The topics discussed were: risk assessment and its management,
Own Risk & Solvency Assessment, Risk Based Supervision, market behaviour and
issues of corporate governance. The seminar noted the need to strengthen risk
management system of insurers and performing preventive controls through Early
Warning System.
 On 4-6 June 2014 a workshop for regulators on “International Financial Reporting
Standards’’(IFRS) was organized by the World Bank Centre for the Financial
Reporting Reform(CFRR), in collaboration with the IFRS Foundation. It took place in
Vienna, Austria. The workshop enhanced the participants’ understanding of current
and upcoming IFRS and prudential requirements. Updating the recent changes to
IFRS and the following projects of the International Accounting Standards Board
(IASB) were also discussed;




On 11–13 June 2014 a seminar on ‘’Insurance Groups and System-wide
Vulnerabilities’’, organized by Financial Stability Institute (FSI) took place in Basel,
Switzerland. The seminar focused on potential vulnerabilities and how to capture
them, as well as different group supervisory aspects and roles related to parent
companies and subsidiaries. The financial crisis also emphasised the need for
insurance supervision to cover the entire range of group and system-wide
vulnerabilities to be detected through macro prudential surveillance;
International Institute for Capital Market Compliance and Examination was held from
June 23 –27, 2014, at the U.S. Securities and Exchange Commission’s headquarters in
Washington, D.C. The goal of this program was to foster a dynamic exchange of best
practices and innovative ideas among market professionals and regulators regarding
oversight, regulation and examination of market intermediaries. International Institute
for Capital Market Compliance and Examination was an opportunity to work in an
effort to develop strong regulatory systems that enhance the integrity of securities
markets worldwide. The topics covered included supervision and risk-based
inspection, standards and compliance oversight, inspection and supervision of
securities broker, money laundering, cooperation and international exchange of
information;
On 26-27 June 2014 a seminar on “Going Forward: Challenges in Securities
Regulation and Practical Solutions for Meeting Those Challenges” took place in
Frankfurt, Germany. It was organized by The International Organization of Securities
Commissions (IOSCO). The objective of this seminar was to offer practical guidance
regarding conducting regulatory investigations and investor protection and education.
The program of the seminar included issues related to the new challenges facing today
securities regulators, as well as ways to overcome these challenges;
On 29 June–4 July 2014 the 10th International Insurance Supervision Seminar on
“Core Supervisory Issues’’ took place in Beatenberg, Switzerland. The objective of
the seminar was to broaden participants’ understanding of various supervisory
matters, and, at the same time, to promote an exchange of experience and views
among them. Core supervisory issues, including the latest international standardsetting developments, were also part of the programme.
CHAPTER 10: INFORMATION SOCIETY AND MEDIA
Key achievements
To address the obligations stemming from Article 103 and Article 104 of the SAA, the
Electronic and Postal Communications Authority (EPCA) has undertaken a series of legal
measures to improve electronic communication and information technologies. Furthermore,
the draft law "On notification and public consultation", awaiting approval by the Council of
Ministers, aims to increase the transparency and accountability of the public administration.
The National Agency for Information Society (NAIS) is successfully administering the
Public – Key Infrastructure (PKI) system. To address the obligations stemming from Article
102 of the SAA, the Audiovisual Media Authority (AMA) is working towards complete
implementation of the copyright law.
10.1 Electronic communication and information technologies
In order to implement the National Plan for European Integration 2014-2020 (NPEI) and to
improve usage of the radio frequency spectrum, the EPCA undertook the following legal
initiatives:
1. Approved some amendments and additions to the EPCA Regulation No. 24, dated
2.2.2012 “On general authorization” through Steering Board Decision No. 2443,
dated 10.4.2014. This decision improved the notification of TV cable networks and
satellite networks registration, as well as the content of the notification confirmation
certificate for undertakings registered for electronic communications networks,
television and satellite cable networks for the provision of audio and/or audio-visual
programs.
2. Approved some amendments and additions to the EPCA Regulation No. 13, dated
16.4.2010 “On number portability”, through the EPCA SBD No. 2479, dated
10.4.2014. These amendments serve to improve the regulatory framework for the
provision of number portability and the elimination of identified problems, such as:
a. requests for number porting from subscribers who have unsettled liabilities
towards the donor operator;
b. imposition of a minimum compulsory period of time for the subscriber to stay
with the receiving operator prior to submitting another porting request; and
c. refusal of porting requests submitted through misinterpreted legislation.
3. Approved some amendments and additions to the EPCA Regulation No. 33, dated
15.5.2014, “On the conditions to use frequencies and the technical requirements for
radio equipment exempt from individual authorization”, through the EPCA SBD No.
2481, date 15.5.2014. The abovementioned regulation aims to set up conditions for
the use of frequencies that do not require individual authorization, as well as
pertaining technical requirements for radio equipment.
4. Approved “Rules on registration and use of frequencies in the 2.4 and 5.8 GHz band”,
through the EPCA SBD No. 2484, dated 15.5.2014.
5. Approved the public tender call for applications “On granting the rights to use
frequencies in the 1965 – 1980 MHz band paired with 2155 – 2170 MHz, and 5 MHz
unpaired spectrum 1915 – 1920 MHz”, pursuant to the process of granting frequency
band IMT-2100 MHz usage, through the EPCA SBD No. 2491, dated 17.7.2014 via
public procedure. Related bids will open on 15.9.2014.
6. Continued leading the coordination agreements process for the GSM/DCS1800
systems aimed at completely avoiding interferences in borderline areas. The technical
agreement with the Macedonian regulatory authority was signed on 21 August 2014.
Negotiations for the same agreement have initiated with the Greek counterpart.
7. Initiated the process for the renewal of the Individual Authorization for granted usage
of frequencies in the GSM 900/1800 MHz through competition to the Albanian
Mobile Communications JSC. The Report for Meeting the Conditions for usage of
frequencies GSM900 and GSM1800 by the Albanian Mobile Communications JSC is
currently under approval.
8. Approved the "Project for the establishment of the National Frequency Monitoring
System" through the EPCA SBD No. 2442, dated 10.4.2014. The aim of this project is
to manage essential characteristics of the techniques and spectrum monitoring
activities through a national system. A working group within the EPCA in
cooperation with the International Telecommunications Unit (ITU) launched the latter
initiative concerning the Albanian national system for spectrum monitoring, while the
Radio Monitoring Handbook served as a base material for addressing the issues.
On 23.7.2014, the EPCA opened public consultations for the “Market analysis of the mobile
telephony”. The latter includes the market analysis of call terminations by mobile networks
and the retail mobile market analysis. In the termination market analysis, the EPCA proposes
Significant Market Power (SMP) for the four mobile operators, and relevant regulatory
measures of non-discrimination, transparency (including RIO), access and interconnection,
AS/CA and tariff control. The public consultations period ends on 24.9.2014.
Further information on efforts of the MIPA and the EPCA for the preparation of the new draft
law on postal services can be found in the Political Criteria.
10.2 Information society
In the area of the information society work has continued to further align Albanian legislation
with the EU acquis. To address priorities of the NPEI, the draft law "On notification and
public consultation" is awaiting approval by the Council of Ministers. This act aims to
increase the transparency and accountability of the public administration in fulfilling
commitments undertaken by the Albanian government in the "Open Government Partnership"
global initiative. The draft law has undergone significant consultations with stakeholders and
civil society organizations. According to the NPEI, the draft law is planned to be adopted
during the fourth quarter of 2014 and will enter into force within the first quarter of 2015.
In the framework of the "Open Government Partnership" initiative, the NAIS drafted the
“Policy Paper for the implementation of Open Data”. The policy paper will undergo public
consultations with stakeholders and civil society organizations until 4 September 2014.
Based on DCM No 248 of 27.04.2007 “On the creation of the National Agency for
Information Society as amended”, the latter has created and now administrates the
governmental Public – Key Infrastructure (PKI) system. The latter is functional on the
Government Data Centre. The NAIS already issued qualified certificates for the public
administration. At present, the National Centre of Registration is using qualified certificates
to issue the business extract in electronic form.
The national interoperability framework was drafted and approved by the NAIS. This
document has undergone significant consultations with different stakeholders, and was
rendered public at the NAIS official website. A new electronic service, “My car”, is available
through the government gateway, and is published at the e-Albania portal. Meanwhile other
e-services are being implemented.
10.3 Audiovisual policy
During the reporting period, the AMA continued to supervise the implementation of legal
requests from operators concerning:
 The identification and solution of problems related to harmful interferences caused by
radio and television operators, especially in relation to aeronautic radio navigation
services;
 Inspections on the correct implementation of broadcasting rules, such as legal
implementation of the copyright law on the part of cable TV and analogue operators;
and
 The implementation of the Broadcasting Code with reference to program content and
ethics, privacy protection, and advertising especially in programs aimed at children.
During the reporting period, the Administrative Court annulled Decision of AMA No. 4, date
26.3.2014 "On establishing the obligation of transmitting national programs by cable
communications networks of entities authorized to redirect audio and audiovisual programs
on these networks". The AMA appealed this court decision at the Administrative Appeal
Court, and the case is still pending.
In order to increase its human capital and further national and European collaborations, the
AMA has participated in several international conferences, as follows:
 The South-East Europe Regional Conference on “The role and importance of the PBS
in building a democratic society,” held on 26 – 27 May 2014, in Sarajevo, Bosnia and
Herzegovina;
 A meeting organized by the Council of Europe on “Defining specific indicators for
establishing and monitoring the transparency, responsibility and operational
efficiency of media regulatory bodies,” held on 4 June 2014 in Budva, Montenegro;
and
 The 39th meeting of the European Platform of Regulatory Authorities held on 5 – 6
June 2014, in Budva, Montenegro.
To guarantee the timely implementation of the digital switchover strategy due to be
completed in June 2015, as according to priorities stated in the NPEI, the MIPA has
withdrawn its case at the Administrative Court of Appeal in relation to the tender procedure,
so that to allow the implementation of a digital transmission network for the Public
Broadcaster.
Conclusions
EPCA has taken significant steps to administrate postal services and regulate the mobile
communications market. NAIS is working toward the implementation of the “Policy Paper
for the implementation of Open Data”, in the framework of "Open Government Partnership".
CHAPTER 11: AGRICULTURE AND RURAL DEVELOPMENT
Key achievements
The draft accreditation package is being revised according to the new EU regulations. The
IPARD Paying Agency continued to enhance its institutional capacities. 3rd call for
applications was closed on 2.5.2014. The number of applications in the 3rd call was
substantially larger than in the 1st and 2nd call. Following the Decision of Council of Ministers
No 4 of 11.04.2014 was adopted introducing new direct support schemes. In total, 21 direct
support schemes are being implemented.
11.1 Agriculture and Rural Development
The draft Inter-Sectoral Strategy on Agriculture and Rural Development is prepared
reflecting the opinions and suggestions of line ministries. The draft Strategy will be submitted
for approval to the Council of Ministers by the end of 2014.
IPARD II Programme



The Management Authority has started to prepare a list of eligible expenditures for
IPARD II program, according to the approved procedure;
A list of eligible areas for support under rural tourism sub-measure will be approved
with the IPARD II program;
The Management Authority has prepared a complete list of stakeholders in order to
carry out consultations on IPARD II (in writing with an audit trail) with government
bodies, responsible for regional development on the proposed definition of the rural
areas.
Institutional Framework of Agriculture and Rural Development, IPARD Agency
As stated in the first Albanian contribution to 2014 EC progress Report, the Albanian IPARD
Agency has prepared a road map to address the EC recommendations. During the reporting
period, the IPARD Agency continued the implementation of the road map:
Procedural arrangements
IPARD Paying Agency is following the prepared Action Plan for review and update of the
Manuals of procedure in accordance with the new rules for implementation 2014-2020. The
accreditation working group was re-activated in order to review the draft accreditation
package version 1.0, in accordance with the new regulations 2014-2020. The main focus will
be in IPARD II Programming, institutional structure IPARD Operating Structure, staff
training in horizontal aspects, initiating database for reference prices/ standard prices and
normative price list for BP assessment.
Staffing
a. Staff retention and motivation
No recruitment was made during the reporting period.
b. Capacity building
 In line with the retention policy, based on the law for “Civil Servants” No.152/2013,
during the reporting period, every employee received proper training according to the
Training Plan of the Albanian School of Public Administration;
 A five-day study visit was organised to Macedonian IPARD Paying Agency, financed
by IPA 2011 “Support in Agriculture and Rural Development”. Thirteen ARDA
employees participated in this study visit.
 Two coaching events of the contracted beneficiaries of 2nd Call were carried out.
These events focused on helping contracted beneficiaries in the process of
implementation, respecting the rules of Grant Award Contract and submission of
claims for payment.
 During the reporting period, ARDA employees participated in trainings of “Fiscal
academy”, “Tax system, gambling, insurance contributions”, “Financial management
and internal control for IPA”.
 Internal Audit Sector received specific training supported by IPA 2011 “Support to
agriculture and rural development”. On job-training continues for the purpose of
IPARD like Grand Scheme.
Equipment
Following the ICT needs assessment carried out by IPARD Paying Agency, tendering
procedures for the procurement of these equipment were carried out by the IPA 2011
“Support to agriculture and rural development”.
IPA 2011 “Support to Agriculture and Rural Development”, IPARD-like implementation
IPA 2011 “Support to Agriculture and Rural Development”, IPARD-like implementation has
contributed to the enhancement of institutional capacities of ARDA and Management
Authority to implement the grant schemes. The Managing Authority in preparing the IPARD
2 program and guidelines. A significant improvement from call to call is noticed in the
implementation of the IPARD-like schemes.
Following the IPARD-like guidelines and procedures, ARDA and GiZ have continued with
the payment execution of the first call: 15 payments out of 18 realised contracts, have been
executed valued at 853,000 Euro, from which 75% paid by EU and 25% by the Albanian
Government. The total amount of realised contracts is 1,326,628 Euro.
Regarding the second call for applications, six payments out of 15 contracts signed, have
been executed during the reporting period. The total value of successful applications is
630,140 Euro.
The third call attracted a higher public interest in the grant investments scheme and an
increased demand and interest from the agro-food sector. The number of applications was
increased arriving at 106 applications, the highest number of applications of all calls
implemented so far. By the end of the reporting period, 20 contracts out of 75 potentially
eligible applicants were signed. The other applications are subject of verifications and on the
spot controls, and are valued at 1,433,965 Euro.
Other progress


A Memorandum of Understanding was signed between ARDA and the Agriculture
University of Tirana. This MoU regulates and enhances the exchange of experience
between the two institutions.
IPARD Paying Agency attended the first International Exhibition of Agricultural
Machinery for the South-Eastern Europe (EIMA South – East Europe) organized in
Tirana on 13-15 July 2014. ARDA was present in this event for the whole duration, with
a information board, leaflets, in order to give the possibility to the participants to be
acquainted with the ARDA’s grants and direct payments.
Direct Support Schemes
ARDA has continued to process the applications submitted in the framework of the national
support schemes. During the reporting period, 13,723 applications were evaluated as eligible
for the first 18 measures set up by the Guideline. All these applications are being evaluated
on the spot and administrative control. By the end of the reporting period, 1,200 applicants
were approved and the remaining ones were being reviewed.
For the remaining three measures, the results are as follows:
 For measure 19 “Interest free loans”, 14 applications were submitted, out of which 6
are approved.
 For measure 20 “Supporting investments up to the 50 % of total investment” 367
applications were submitted. By the end of the reporting period no payments were
executed. The low rate of approved applications is due to the fact that many
investments are related with involvement of construction/reconstruction permits.
 For measure 21 “Heating fuel for green houses”, from 111 applications submitted, 84
applications have been approved and authorised.
11.2 Livestock breeding
There are no new developments regarding this topic.
11.3 Organic agriculture production
There are no new developments regarding this topic.
11.4 Products subject to market organisation
The amendments to Law No 8443 of 21.01.1999 “On vineyards and wine” were scheduled to
be finalised in September 2014. They will be submitted for endorsement to the Council of
Ministers in December 2014.
11.5 Quality policy and legislation
There are no new developments regarding this topic.
CHAPTER 12: FOOD SAFETY, VETERINARY AND PHYTOSANITARY POLICY
Key achievement
In food safety and control, the approximation of the Albanian legislation with EU acquis
continued. Several trainings were organised aiming to enhance institutional capacities and
performance of NFA staff. NFA designed and implemented several monitoring plans. In
veterinary policy, five legal acts were adopted aligning the Albanian law with EU legislation.
The vaccination programme was implemented smoothly. Concerning phytosanitary policy,
over 4,500 inspections were carried out at Border Inspection Points.
12.1 Food safety and control
During the reporting period the following legal acts were approved:
 Guideline of Minister of Agriculture, Rural Development and Water Administration
No 4 of 14.05.2014 “On foods and food ingredients treated with ionising radiation”,
partially approximating the Albanian law with Directive 1999/2/EC of the European
Parliament and of the Council of 22 February 1999 on the approximation of the laws
of the Member States concerning foods and food ingredients treated with ionising
radiation. This guideline implements the National Plan for European Integration 2014
– 2020;
 Guideline of Minister of Agriculture, Rural Development and Water Administration
No 5 of 14.05.2014 “On the maximum level of pesticide residues in bananas,
tomatoes, corn, cucumbers, apples, potatoes, table grapes, grapes for wine, peppers,
table olives”. The list of EU acts partially approximated with by this Guideline is
provided as Annex 12.1;
 Guideline of Minister of Agriculture, Rural Development and Water Administration
No 6 of 14.05.2014 “On extraction solvents used in the production of foodstuffs and
food ingredients, partially approximating the Albanian law with Directive 2009/32/EC
of the European Parliament and of the Council of 23 April 2009 on the approximation
of the laws of the Member States on extraction solvents used in the production of
foodstuffs and food ingredients. This guideline implements the National Plan for
European Integration 2014 – 2020;
 Guideline of Minister of Agriculture, Rural Development and Water Administration
No 7 of 14.05.2014 “On 2014 National Monitoring Plan of Raw Milk”;
 Order of Minister of Agriculture, Rural Development and Water Administration No
217 of 14.05.2014 “On approval of action plan on the sector of milk and milk based
products”;
 Guideline of Minister of Agriculture, Rural Development and Water Administration
No 12 of 15.07.2014 “On defining of indicators for the safety and quality of prepacked wheat, to be sold to the ultimate consumer or to manufacture other food
products”.
 Order of Minister of Agriculture, Rural Development and Water Administration No
234 of 20.05.2014 “On replacing Annex I of Order Minister of Agriculture, Rural
Development and Water Administration No 261 of 10.09.2009 ‘On the approval of
Regulation ‘On microbiological criteria for foodstuffs”, fully approximating the




Albanian law with the Commission Regulation (EC) No 2073/2005 of 15 November
2005 on microbiological criteria for foodstuffs;
Order of Minister of Agriculture, Rural Development and Water Administration No
235 of 20.05.2014 “On the traceability requirements for food of animal origin”,
partially approximating the Albanian law with Commission Implementing Regulation
(EU) No 931/2011 of 19 September 2011 on the traceability requirements set by
Regulation (EC) No 178/2002 of the European Parliament and of the Council for food
of animal origin. This order implements the National Plan for European Integration
2014 – 2020;
Order of Minister of Agriculture, Rural Development and Water Administration No
286 of 2.06.2014 “On an amendment to Order of Minister of Agriculture, Rural
Development and Water Administration No 438 of 7.10.2008 ‘On the approval of
Regulation 'On the requirements concerning public health and veterinary certifications
conditions for introduction in the Community of heat-treated milk, milk-based
products and raw milk intended for human consumption”’, partially approximating
Albanian law with Commission Regulation (EU) No 605/2010 of 2 July 2010 laying
down animal and public health and veterinary certification conditions for the
introduction into the European Union of raw milk and dairy products intended for
human consumption;
Guideline of Minister of Agriculture, Rural Development and Water Administration
No 13 of 15.07.2014 “On use of lactic acid to reduce microbiological surface
contamination on bovine carcases”, partially approximating Albanian law with
Commission Regulation (EU) No 101/2013 of 4 February 2013 concerning the use of
lactic acid to reduce microbiological surface contamination on bovine carcases. This
guideline implements the National Plan for European Integration 2014 – 2020;
Order of Minister of Agriculture, Rural Development and Water Administration No
350 of 15.07.2014 “On the approval of Regulation ‘On certain lactoproteins, (caseins
and caseinates) intended for human consumption”, partially approximating Albanian
law with Council Directive 83/417/EEC of 25 July 1983 on the approximation of the
laws of the Member States relating to certain lactoproteins (caseins and caseinates)
intended for human consumption. This order implements the National Plan for
European Integration 2014 – 2020.
The following activities were organised to enhance the administrative capacities:
 A workshop on assessment and categorisation of agrifood establishments, AGR55706,
organised in cooperation with TAIEX on 26 May 2014 in Tirana;
 A workshop on official control concerning the microbiological criteria, AGR 55705,
organised in cooperation with TAIEX on 23 June 2014 in Tirana;
 A workshop on traceability of food and feed, AGR 55708, organised in cooperation
with TAIEX on 30 June 2014 in Tirana;
 A workshop on official control of food of non-animal origin, AGR 55792, organised
in cooperation with TAIEX on 7 July 2014 in Tirana.
Several training modules for employees of the National Food Authority were carried out in
order to enhance institutional capacities and performance. Further details on these trainings
are provided in the table below.
Table 1: Trainings for the period 1 May - 31 August 2014
No
Topic
Timeline
No.
of
Organizer
participants
1.
2.
3.
4.
5.
6.
Theoretical and practical training of phytosanitary inspectors
Theoretical and practical training of veterinary
and food inspectors
General training of laboratory personnel in
10.
11.
12.
EU Project
19-23.05.2014
21 employees
EU Project
19 employees
EU Project
16 employees
EU Project
19-23.05.2014
8 employees
EU Project
26.05.2014
50 employees
TAIEX
30.06.2014
40 employees
TAIEX
7.07.2014
54 employees
TAIEX
8-10.07.2014
45 employees
TAIEX
9-15.06.2014
3 employees
EFSA
16-19.06.2014
3 employees
EFSA
19-23.05.2014
Training of food inspectors in the study tour in
5-9.05.2014 and
Florence, Italy
12-16.05.2014
BIP inspectors’ training (study visit) to Ancona,
Italy
Training for assessment and classification of
Workshop on official microbiological controls
of foodstuffs
9.
16 employees
quality assurance and ISO 17025
agro-food establishments
8.
12-16.05.2014
Training for official controls of products of nonanimal origin
Training for food safety in BIPs
Workshop on Food Safety Challenges for
Mediterranean products
Training
on
risk
assessment
and
other
biotechnology
Training:
1. Improve existing data.
2. Establishment of two new modules like
FBOs assessment in size and risk.
13.
3. Registration penalties and fines.
23.07.2014
4. Extraction of relevant reports from the
system.
24 employees
IT & NFA
General
Directorate
5. Periodic inspection of data registration
in AKUnet by inspectors.
Source: National Food Authority
The National Food Authority (NFA) organised during May – August 2014 four meetings
with associations of food producers, such as: bread manufacturers’ association, olive oil
production association, and livestock import/ abattoirs representatives and agricultural inputs
traders, on the improvement of food safety.
For products that pose a higher risk during production, storage or trading, as well as for their
own wide consumption, NFA carried out several measures in cooperation with its regional
directorates (RD) setting up working groups, developing action and monitoring plans. The
following can be reported:
 Action Plan No 1452 Prot of 4.04.2014 “On the identification and inspection of food
operators at regional level, who produce and trade cheese with starch”, implemented
during the period 7 – 15.04.2014;
 Action Plan No 2151 Prot of 13.05.2014 “On monitoring FBOs48 that produce and
trade “Black bread” or “Integral bread”, implemented during the period 14.05.2014 –
28.05.2014;
 Action Plan No 1744/1 Prot of 22.04.2014 “On Food Business Operators who
produce, process, trade and import olive oil”, implemented during the period
21.04.2014 – 9.05.2014;
 Action Plan No 2898 Prot of 1.07.2014 “On the inspections of FBOs at regional level
implementing the Order of the Minister of Agriculture, Rural Development and Water
Administration No 25 of 28.01.2014 “On the control, identification and sampling to
prevent the placing on the market and consumption of aquatic organisms “Dateri”,
implemented during July 2014;
 Order of NFA Director General No 3048 Prot of 8.07.2014 “On the inspection and
monitoring of FBOs producing and trading every kind of bread and pastry products”,
which will be implemented during the period 8.07.2014 – 5.09.2014;
 Order of NFA Director General No 2434 Prot of 29.05.2014 “On inspecting the food
business operators who produce, process and trade food products (bars, restaurants,
fast-foods, confectionery, super-markets, mini-markets)”, which will be implemented
during the period 1.06.2016 – 1.09.2014. The Order takes into account that the
summer/holiday season is characterised by an increase in temperatures and of tourists’
flow, and therefore special attention should be paid to inspections of FBOs operating
in tourist areas.
National Food Authority continues to implement the Law No 87/2012 of 18.09.2012 “On the
approval of the Normative Act of the Council of Ministers, with the power of law, No 4 of
16.08.2012 “On defining the provisions for the slaughter of animals and marketing of their
meat. Significant improvements are noticed. For instance, the slaughtering of animals in
illegal/unregistered premises along the road axis Tirana – Fushë-Kruja – Lezha was
eliminated. Slaughtering is carried out only in entities licenced by NFA.
During the reporting period, the number of applications from FBOs to NFA for licence has
increased. This can be attributed to awareness raising activities as well as an increase of
inspections and their efficiency.
Data on the inspections carried out by the National Food Authority during the period 1 April
– 31 July 2014 are shown in the tables below49.
48
49
Food Business Operators (FBOs).
Due to the cumulative way NFA records its data, this is the latest recording period it could refer to.
Table 2: Activity of the Unit of Food and Feed of non-animal origin and Food Business
Operators Inspection, during the period 1 April – 31 July 2014
No of
inspections
6,522
No of fines
31
Administrative measures
Suspension of
Warnings
activity
1,086
85
Products seized/ destroyed
(ton)
193.9852
Source: National Food Authority
During the abovementioned period, these Units registered 35 applications for licensing; 17 of
these applications were approved and 18 were rejected.
Table 3: Activities of the Unit of Food and Feed of animal origin and Food Business
Operators Inspection, during the period 1 April – 31 July 2014
No of inspections
No of fines
4,417
Administrative measures
Warnings
Suspension of
activity
62
524
119
Products seized/
destroyed, in
tons
1339.8
Source: National Food Authority
During the period 1 April – 31 July 2014, these Units registered 83 applications for licensing;
42 of these applications were approved and 41 were rejected.
Table 4: Inspections conducted during the period 1 April – 31 July 2014 according to
the Law No 87/2012 of 18.09.2012
No. of inspections
No. of subjects
fulfilling normative
act condictions
1,254
34
Administrative
measures/ fines
Products seized/ destroyed
608, 5 kg meat and 7 work
tools
14
Source: National Food Authority
Table No. 5: Inspections conducted by the Unit of Inspection of Plant Protection and
Agricultural Inputs, during the period 1 April – 31 July 2014
Plant
Protection
Products
690
Plant
Propagation
Material
599
Administrative Measures
Fertilizers TOTAL Nr.
Fines
of
Inspections
591
1,880
28
Warnings
108
Blocked
129
Source: National Food Authority
This Unit during the period 1 April – 31 July 2014, registered 64 applications for licensing;
53 of these applications were accepted and 11 applications were rejected.
Table No. 6: Inspections carried out by the Unit of Inspection of animal, non animal
origin and livestock at Border Inspection Points, during the period 1 April – 31 July
2014
Border
Inspection
Point
Durrësi
Kapshtica
Qafë Thana
Hani i Hotit
Kakavija
Morina
Vlora
Bllata
Gorrica
Shëngjini
Qafë Botë
Rinasi
TOTAL
Food, feed of
non-animal
origin
Food, feed of
animal origin
1,708
1,013
938
1,169
683
702
538
84
11
0
11
54
6,911
1,426
94
238
247
185
88
32
0
0
0
0
25
2,335
Livestock
24
36
80
44
334
2
1
0
0
0
0
0
521
VMP
(veterinarian
medical
products)
15
6
8
31
11
0
0
0
0
0
0
44
115
TOTAL
3,173
1,149
1,264
1,491
1,213
792
571
84
11
0
11
123
9,882
Source: National Food Authority
The Risk Assessment and Communication Directorate undertook and accomplished several
tasks during the period 1 May - 31 August 2014. Concerning risk assessment, the Scientific
Committee and Panels held two meetings in May 2014. In the first meeting, held on
15.05.2014, the Committee and Panels examined the Guideline of the Minister of Agriculture,
Rural Development and Water Administration No 2 of 14.02.2013 “On the establishment and
functioning of the Scientific Committee and Scientific Panels of the National Food Authority”
and the draft Operation Manual of Scientific Panels prepared by NFA. In the second meeting
held on 27.05.2014, the members of Scientific Panels provided comments and proposals on
improving the draft operating procedures of the Committee and Scientific Panels. These
proposals will be reflected in the final Operation Manual on the functioning of Scientific
Panels.
By Order of the NFA Director General No 800 of 30.05.2014 “On the establishment of the
working group on the classification of the food business”, a working group was set up at the
Directorate of Risk Assessment, which developed a methodology for risk based classification
of FBOs and approved six monthly inspections’ plans. In these plans, the FBOs were
categorised according to two criteria: by size and distance, as stipulated in the Order of the
NFA Director General No 1293 of 31.05.2013 “On the complete and correct risk assessment
for any Food Business Operator”.
12.2 Veterinary policy
During the reporting period the following legal acts were approved, which all implement the
National Plan of European Integration 2014 – 2020:
 Order of Minister of Agriculture, Rural Development and Water Administration No
328 of 24.06.2014 “On the diagnostic manual for the African Swine Fever”, partially
approximating Albanian law with Commission Decision 2003/422/EC of 26 May
2003 approving an African swine fever diagnostic manual;
 Order of Minister of Agriculture, Rural Development and Water Administration No
329 of 24.06.2014 “On minimum standards for the protection of calves”, partially
approximating Albanian law with the Council Directive 2008/119/EC of 18 December
2008 laying down minimum standards for the protection of calves;
 Order of Minister of Agriculture, Rural Development and Water Administration No
370 of 29.07.2014 “On veterinary medicinal products”, partially approximating
Albanian law with the Directive 2001/82/EC of the European Parliament and of the
Council of 6 November 2001 on the Community code relating to veterinary medicinal
products;
 Order of Minister of Agriculture, Rural Development and Water Administration No
351 of 15.07.2014 “On the measures for the control of foot-and-mouth disease”
partially approximating Albanian law with the Council Directive 2003/85/EC of 29
September 2003 on Community measures for the control of foot-and-mouth disease;
 Order of Minister of Agriculture, Rural Development and Water Administration No
336 of 30.06.2014 “On the protection measures for the control of Avian Influenza in
pet birds” partially approximating Albanian law with the Commission Regulation (EC)
No 318/2007 of 23 March 2007 laying down animal health conditions for imports of
certain birds into the Community and the quarantine conditions thereof.
The legal procedures for the adoption of following legal acts have started:
 Draft Law “On Order of Veterinarian”; expected to be approved within 2014
 Regulation of Minister of Agriculture, Rural Development and Water Administration
“On laying down a list of third countries, territories, zones or compartments from
which poultry and poultry products may be imported into and transit through the
Albania and the veterinary certification requirements” partially approximating
Albanian law with the Commission Regulation (EC) No 798/2008 of 8 August 2008
laying down a list of third countries, territories, zones or compartments from which
poultry and poultry products may be imported into and transit through the Community
and the veterinary certification requirements; Expected to be approved within
November 2014
 Regulation of Minister of Agriculture, Rural Development and Water Administration
“On establishing a model passport for the non-commercial movement of dogs, cats
and ferrets”, partially approximating the Albanian law with the Commission
Implementing Regulation (EU) No 577/2013 of 28 June 2013 on the model
identification documents for the non-commercial movement of dogs, cats and ferrets,
the establishment of lists of territories and third countries and the format, layout and
language requirements of the declarations attesting compliance with certain
conditions provided for in Regulation (EU) No 576/2013 of the European Parliament
and of the Council. Veterinary Directorate has completed adoption. We are waiting
for remarks from the Legal Directory. Expected to be approved within the month
December 2014
Animal Health
The following vaccination activities were carried out by the Veterinary Services under the
National Programme of Veterinary Prophylaxis:
 Brucellosis in Small Ruminants: in collaboration with PAZA project, in the reporting
period, 60,112 heads were vaccinated;
 Classical Swine Fever: in the reporting period 4,300 heads pigs were vaccinated.
Small ruminant’s identification
Main activities during this period are:
 Identification of small ruminants: during the reporting period 35,936 head are
matriculated;
 The budget was approved to continue the identification of 770,000 small ruminates
in 2014.
Cattle Identification
During the reporting period, 2,174 animals are identified; 77,000 animals are planned to be
tagged in 2014.
Animal movement registration and update of database
The main activities during this period are:
 Registration of most important livestock holdings for animal movement control;
 Identification and design of animal movement flow for each of them by geographical
references;
 Monitoring of animal population number through the chronological animal inventory
in the farm and their movement;
12.3 Phytosanitary policy
The legal procedure for the adoption of the draft Law “On Plant Protection” has started. The
draft Law allows the further approximation of Albanian law with EU acquis, increases the
monitoring capacity in the context of the reorganization of the National Food Authority and
the inspection reform, fully approximating Albanian law with the Council Directive
91/414/EEC of 15 July 1991 concerning the placing of plant protection products on the
market.
The Joint Order of Minister of Agriculture, Rural Development and Water Administration,
Minister of Environment and Minister of Health No 297 of 6.06 2014 “On an update of
Annex II of Decision of Council of Ministers No 1555 of 12.11.2008 ‘On approval of rules
on registration and assessment criteria of Plant Protection Products” was approved. This
order is aimed at approximation of Albanian law with the Council Directive 91/414/EEC.
Data on the activities related to phytosanitary policy are displayed in the table below:
Table No. 7: Inspections carried out by the Unit of Inspection of Plant Protection and
Agricultural Inputs at Border Inspection Points, during the period 1 April – 31 July
2014
BIP
Bllata
Durrësi
Hani i Hotit
Kakavija
Kapshtica
Morina
Gorrica
Shengjini
Qafe Bote
Qafe Thane
Rinasi
Vlora
Total
Plant and
Plant
Products
63
508
1,667
407
605
453
0
0
17
337
21
75
4,153
Plant
Protectio
n
Products
0
19
26
4
6
1
0
0
0
15
2
0
73
Plant
Propagati
on
Material
0
13
17
0
2
1
0
0
13
7
37
2
92
Fertilizers
Tobacco
and its byproducts
0
42
2
19
21
0
0
0
4
5
0
1
94
0
13
0
4
54
0
0
0
0
16
5
0
92
Total Nr. of
inspections
63
595
1,712
434
688
455
0
0
34
380
65
78
4,504
Source: National Food Authority
12.4 Seed and planting material
Concerning seed and planting material, the Decision of Council of Ministers No 309 of
21.05.2014 “On defining the requirements for the marketing, certification and testing
varieties of beet seeds” was approved. It partly approximates Albanian law with the Council
Directive 2002/54/EC of 13 June 2002 on the marketing of beet seed. It implements the
National Plan for European Integration 2014 – 2020.
The draft Decision of Council of Ministers “On defining the requirements for the marketing
and certification of seed potatoes” is being prepared. It aims at partial approximation of
Albanian law with the Council Directive 2002/56/EC of 13 June 2002 on the marketing of
seed potatoes. It implements the National Plan for European Integration 2014 – 2020.
CHAPTER 13: FISHERIES
The Decision of Council of Ministers No 173 of 26.03.2014 “On defining the basic criteria
for the sectors that are going to be supported and the amount of support from the Agricultural
and Rural Development Programme, for 2014” is being implemented. According to this
Decision, the aquaculture entities receive support up to 25% of the value of fingerlings, but
no more than 600,000 ALL (approximately 4,300 Euro) per fish farm and 25% of the value of
fish feed expenditures, but no more than 500,000 ALL (approximately 3,600 Euro). Further,
the cultivation of bivalve molluscs is supported with 10 ALL per kg molluscs (approximately
0.07 Euro per kg), but only if yearly production is between 200 kv and 1000 kv.
Albania, as a member of General Fisheries Commission for the Mediterranean (GFCM) has
contributed continuously to different GFCM Committees/Subcommittees, cooperating and
reporting on several management aspects under the GFCM Multiannual Management Plan
Framework.
Recently, Albania is participating actively in the Task-Group and contributing to GFCM
Legal Act renewing, like GFCM Agreement, Rules of Procedures and Financial Rules. The
new GFCM Agreement was finalized and the Rules of Procedure and Financial Rules will be
finalized in 2014.
Albania is fully cooperating with the International Commission for the Conservation of
Atlantic Tuna (ICCAT). Albania has fulfilled its obligations deriving from the membership
and the respective ICCAT recommendations. The Management Plan of Blue Fin Tuna
Fishing Quota adopted on 17.02.2014 was implemented. To this purpose, the Order of
Minister of Agriculture, Rural Development and Water Administration No 2847 of date
22.04.2014, was issued and the Fishing Vessel Authorization were prepared and signed.
Albania reported to ICCAT Secretariat through filling the proper forms and ensured proper
inspection on tuna fishing from authorized fishing vessel and control of catch data reports.
CHAPTER 14: TRANSPORT POLICY
Key achievements
The legal framework in road transport was further improved. Concerning road safety, several
measures were taken and the inter-institutional cooperation was enhanced. Decision of
Council of Ministers No 462 of 9.07.2014 was approved. It fully approximates Albanian
legislation with Regulation (EC) No 789/2004. Due to implemented legal and institutional
measures, Albania was transferred from the black list to the grey list of Paris MoU on Port
State Control. The twining project in the air transport sector is proceeding smoothly.
Concerning the administrative capacities of the Ministry of Transport and Infrastructure, the
Order of Prime Minister No 190 of 23.07.2014 “On the approval of the structure and staff of
the Ministry of Transport and Infrastructure” was issued. According to the Order, the
Ministry of Transport and Infrastructure has a staff of 117 employees. The new structure will
strengthen the capacities of the policy directorates (both Transport and Water Supply and
Sewerage Directorates), in order to fulfil the mission of the Ministry of Transport and
Infrastructure.
14.1 Inland transport
14.1.1 Road Transport
The following legal acts were adopted:
 Law No 37/2014 of 10.04.201450 “On some addenda to Law No 8308 of 18.03.1998
“On Road Transport, as amended” was published in the Official Journal No 63 of
7.05.2014 and entered into force on 23.05.2014. According to these addenda, the
ticket prices in the urban bus transport should be decided by the local government;
 Decision of Council of Ministers No 266 of 7.05.2014“On defining the functioning
and tasks of the Inter-Ministerial Committee for the transport of dangerous goods”.
The Decision regulates the set-up, membership and tasks of the Inter-Ministerial
Committee. The Committee shall be led by the deputy minister responsible for
Transport and should meet at least once every six months;
 Decision of Council of Ministers No 493 of 22.07.2014 “On some addenda and
amendments to Decision of Council of Ministers No 153 of 7.04.2000 ‘On the
approval of the Implementing Regulation of the Road Code in the Republic of
Albania, as amended”. The Decision regulates setting-up of service areas in the
national roads. The private entities have one year to comply with these provisions;
 Guideline of the Minister of Transport and Infrastructure No 4 of 27.05.2014 “On
technical requirements and standards to operate an authorised tachograph workshop
(technical centre)”. The Guideline lays down the provisions to establish an authorised
tachograph technical centre, its approval procedure by the Minister of Transport and
Infrastructure, the duties of other public bodies, the documentation that should be
maintained by the technical centre.
50
Reported in the first contribution of the Albanian government on 2 May 2014, as pending publication.
The draft Decision of Council of Ministers “On the approval of the agreement between the
Council of Ministers of the Republic of Albania and the Government of Montenegro on the
reciprocal recognition of driving licences” is prepared. After its approval from the Council of
Ministers, the Agreement will be signed by representatives of both governments.
The following legal acts are being prepared for the implementation of the Law No 118/2012
of 13.12.2012 “On the transport of dangerous goods” and scheduled to be adopted in 4 Q
2014:
 Draft Decision of Council of Ministers “On licensing criteria for institutions that train
safety advisors for dangerous goods, participants in the transport, and vehicles’
operators”;
 Draft Guideline of the Minister of Transport and Infrastructure “On vehicles’
inspection and procedures to issue approved ADR certificates”.
The reform of the intercity passenger transport service is being prepared with the assistance
of the 2012 IPA project Technical Assistance to the Ministry of Transport and Infrastructure,
aiming to improve the service standards and quality. Currently, a draft Long Term Action
Plan is being prepared and necessary legal amendments are being identified.
Concerning road safety, the draft decision of Council of Ministers “On some amendments to
Law No 8378 of 22.7.1998 ‘On Road Code in the Republic of Albania, as amended” was
submitted for endorsement to the Council of Ministers. The Decision of the Council of
Ministers is included in the National Plan for European Integration 2014 – 2020; it is
foreseen to be approved and enter into force in 4 Q 2014.
The following measures are taken to improve the road safety:
 Installation of road signs and construction of other road safety elements in Rrogozhina
– Butrinti road have started;
 The procurement of reconstruction and improvement of road safety in Tirana –
Durrësi – Kashari – Rinasi is in progress;
 The procurement of works to eliminate some 'black spots' in the road segment
Thumana – Fushë Kruja is in progress.
Based on the Joint Order of the Minister of Transport and Infrastructure and Minister of
Urban Development and Tourism No 3498 of 30.06.2014, a task force was established
between Albanian Road Authority (ARA) and the National Urban Construction Inspectorate
(INUK) to eliminate illegal road access points in the Durrësi – Plepa – Rrogozhina road
segment.
As stipulated by the Order of the Minister of Transport and Infrastructure No 237 of
5.08.2014, a task force was established between ARA and the General Directorate of Road
Transport Services, tasked to carry out roadside inspections for overloaded and extra
dimensioned busses and tracks.
During the period January – July 2014, the General Directorate of Road Transport Services
carried out inspections at driving schools in the districts of Tirana, Lezha, Kurbini, Durrësi,
Kavaja, Kruja and Mirdita. The activity of nine driving schools in Tirana, Puka, Laçi, Mirdita,
and Shkodra was suspended temporarily until the driving schools complied with the
legislation in force.
The consultant contracted by EU delegation is preparing the ToR of the IPA 2013 project for
Road Safety improvement.
A campaign aiming to increase public awareness on road safety started in June 2014 and is
going on: leaflets were distributed, billboards were set up, a TV spot was aired, a Facebook
page was set up, etc. The campaign is sponsored by insurance companies according to the
Agreement on the implementation of insurance legislation signed on 12.03.2014 between the
Ministry of Transport and Infrastructure, Ministry of Interior and all insurance companies.
14.1.2 Rail transport
The draft law “On Railway Code in the Republic of Albania” is being finalised. As per
National Plan for European Integration 2014 – 2020, the draft law is scheduled to be adopted
in 4 Q2014. The preparation of its implementing regulations will start in 2014 and they are
due for adoption in 2015 – 2016.
14.2 Waterways transport
The Decision of Council of Ministers No 462 of 9.07.2014 “On the approval of the
Regulation for the registration of sailing vessels in the Republic of Albania” was approved.
The Decision is based on the United Nations Convention on Conditions for Registration of
Ships (1986) ratified by the Republic of Albanian with Law No 9254 of 15.07.2004, and it
fully approximates Albanian legislation with Regulation (EC) No 789/2004 of the European
Parliament and of the Council of 21 April 2004 on the transfer of cargo and passenger ships
between registers within the Community and repealing Council Regulation (EEC) No 613/91.
The Decision of the Council of Ministers was included in the National Plan for European
Integration 2014 – 2020; it was due to be approved and enter into force in 2 Q 2014.
For the implementation of the Law No 168/2013 of 31.10.2013 “On security on ships and
port”, the Decision of Council of Ministers No 209 of 9.04.2014“On the set up of the Port
Facility Security Committee” was approved. Draft Decision of Council of Ministers “On the
approval of the Regulation on Enhancing Security in Ships and Ports of Republic of Albania”,
approximating partially Albanian law with Regulation (EC) No 725/2004 of the European
Parliament and of the Council of 31 March 2004 on enhancing ship and port facility security,
is being prepared. This draft Decision of the Council of Ministers is included in the National
Plan for European Integration 2014 – 2020.
The draft Decision of the Council of Ministers “On the approval of the Regulation on the
Investigation of Maritime Incidents” is being prepared as well. The draft Decision aims to
partially approximate Albanian law with Directive 2009/18/EC of the European Parliament
and of the Council of 23 April 2009 establishing the fundamental principles governing the
investigation of accidents in the maritime transport sector. The draft Decision of the Council
of Ministers is included in the National Plan for European Integration 2014 – 2020, due to be
approved and enter into force in 4 Q 2014.
The implementation of the Action Plan addressing the recommendations of the 2013 EC
Progress Report51, which included improvement of the legal framework and carrying out of
institutional measures, increased the standard of ships flying the Albanian flag. According to
the statistics of the Paris MoU on Port State Control, in July 2014, Albania was removed
from the black list of the flag states and is now in the grey list, an intermediary step toward
the white list. The Ministry of Transport and Infrastructure and Ministry of Foreign Affairs
are preparing to start the negotiations with the Paris MoU Secretariat for the participation of
Albania as a member state in this Memorandum.
The General Maritime Directorate and the International Maritime Organisation (IMO)
organised a ten-day international training “Investigation of Maritime Accidents/Incidents in
the Republic of Albania”. It took place on 30 June – 11 July 2014 in Durrësi and twenty
experts of the General Maritime Directorate, Harbour Master Offices and the Albanian
Maritime Ports participated in this training.
14.3 Air transport
The legal procedure for the adoption of the draft law “On some amendments to Law No
10233 of 11.02.2010 ‘On the Civil Aviation Authority”, has started. This draft law is foreseen
to be adopted within 2014. The draft Law aims to increase the functional independence of
this institution and strengthen the safety inspection and control capacities.
The following draft legal acts are in approval process by the Minister of Transport and
Infrastructure:
 Draft Guideline of the Minister of Transport and Infrastructure that aims to
approximate Albanian law with the Commission Regulation (EC) No 279/2009 of 6
April 2009 amending Annex II to Directive 2005/36/EC of the European Parliament
and of the Council on the recognition of professional qualifications;
 Draft Order of the Minister of Transport and Infrastructure that aims to approximate
Albanian law with the Regulation (EC) No 1107/2006 of the European Parliament and
of the Council of 5 July 2006 concerning the rights of disabled persons and persons
with reduced mobility when travelling by air. The draft Order of the Minister of
Transport and Infrastructure is included in the National Plan for European Integration
2014 – 2020, due to be approved and enter into force in 3 Q 2014;
 Draft Guideline of the Minister of Transport and Infrastructure that aims to
approximate Albanian law with the Regulation (EC) No 1108/2009 of the European
Parliament and of the Council of 21 October 2009 amending Regulation (EC) No
216/2008 in the field of aerodromes, air traffic management and air navigation
services and repealing Directive 2006/23/EC.
51
Reported under the first contribution of the Albanian government to the 2014 EC Progress Report.
The second twinning project is on-going in close cooperation with the General Directorate of
Civil Aviation of France and Rumanian Civil Aviation Authority. For each activity under the
authority of Albanian Civil Aviation Authority (ANS, OPS, CAW, APT, SSP, SEC, ENV),
the Twinning project has scheduled: 3 days for assessment, 5 days for updating documents
and procedures, 10 days for training in Tirana, 5 full weeks for coaching in France or
Romania, 7 days for oversight activities. These missions will be conducted by French DGAC
experts (ANS, OPS, SSP, and ENV) and Romanian CAA experts (CAW, APT, and SEC).
CHAPTER 15: ENERGY
Key achievements
The dispute between the Albanian government and CEZ was settled through negotiations.
WB funding is secured to support power sector reforms and improve viability of the sector.
Situation in the electricity sector was monitored regularly by the Task Force and the first
positive results were noticed in the period March – May 2014. Law No 71/2014 of
10.07.2014 was adopted introducing strict rules on oil refineries, licensing and maintenance,
etc. Albanian Power Regulator issued 19 licences during the reporting period. The monitoring
of the 1st National Energy Efficiency Action Plan (NEEAP) was carried out. The
approximation of the legislation in the radiation protection proceeded.
15.1 Security of supply
Aiming to guarantee the security of supply, the Council of Ministers approved the following
Decisions:
 Decision of Council of Ministers52 of 6.8.2014 “On the approval in principle of the
sovereign guarantee and compensation between the Republic of Albania, Vseobecna
Uterrova Banka S.A. Slovakia and Intesa Sanpaolo Bank Albania S.A., for the
counter guarantee of Vseobecna Uterova Bank S.A. for the bank guarantee agreement
between the Power Distribution Operator S.A. and Vseobecna Uterova S.A., Slovakia,
and the loan agreement between the Power Distribution Operator S.A. and Intesa
Sanpaolo Bank Albania S.A.”;
 Decision of Council of Ministers53 of 27.08.2014 “On the approval of the government
guarantee issued in favour of Raiffeisen Bank Albania, under the terms of the credit
contract to be signed between this Bank and the KESH S.A.”. According to this
Decision, a public guarantee is issued to allow KESH S.A. to borrow 35 million Euro
from this Bank.
In the electricity sector, the Decision of the Council of Ministers No 367 of 11.06.2014 “On
some amendments and addenda to Decision of Council of Ministers No 1701 of 17.12.2008
‘On the approval of the Regulation on the procedures to issue authorisations for the
construction of new power generating objects that are not awarded as concessions” was
approved. According to the amendments, state owned companies, as well, can apply for an
authorisation to construct new power plants. The state owned companies are not obliged to
provide 2% of the power produced as a royalty if they use the produced energy to cover their
own needs.
The Task Force established to improve the situation in the electricity sector met twice during
the reporting period, respectively on 17 June 2014 and 22 July 2014, and analysed the
progress achieved.
52
53
Pending publication in the Official Journal.
Pending publication in the Official Journal.
The results on the bill collection and reduction of losses are shown in the table below
comparing the results in 2013 with those of 2014.
Table 1: Bill collection during the period March – May 2014
Month
Year
March
2013
2014
April
Difference
2013
2014
in %
Bill
83
87
+4
May
Difference
2013
2014
in %
81
87
Difference
in %
+6
77
84
+7
collection
in %
Source: Ministry of Energy and Industry
Table 2: Reduction of losses during the period March – May 2014
Month
March
Year
2013
2014
Losses in
48.3
42.8
April
Difference
2013
2014
39.7
35.7
in %
-5.5
May
Difference
2013
2014
39.5
36.8
in %
-4
Difference
in %
-2.7
%
Source: Ministry of Energy and Industry
During the reporting period, Ministry of Energy and Industry and its agencies carried out a
control on the implementation of concessions granted for the construction of hydropower
plants. Based on the results of this control, the legal procedures have started to cancel 30
concession contracts. No new concession on construction of hydropower plants was granted
during the period May – August 2014.
In the oil and gas sector, the Law No 71/2014 of 10.07.2014 “On some addenda and
amendments to Law No 8450 of 24.02.1999 “On processing, transportation and marketing of
oil, gas and their by-products, as amended” was adopted. The Law introduces important
definitions, strict rules on oil refineries, the obligation of refining facilities to take a refining
licence, the procedures to issue the refining licence, the obligation of oil pipeline operators to
prepare every five years a maintenance plan, the guaranty for public information on the
results of the by-product quality analyses, inspections at oil and gas refining, transporting and
marketing entities, and amendments on the sanctions for different infringements stipulated by
the Law No 8450 of 24.02.1999, as amended.
The following implementing acts are being prepared, scheduled to be approved in 2014:
 Draft decision of Council of Ministers “On defining the procedures and conditions for
the construction and operation of petroleum processing plants”;
 Draft decision of Council of Ministers “On the procedures and conditions for granting
concession license to refineries processing crude oil for the production of its byproducts”;
 Draft order of Minister of Energy and Industry “On control timetable, related fees and
quality monitoring carried out by State Inspectorate responsible for wholesale trading
companies”;

Draft order of Minister of Energy and Industry “On defining the rules for providing
information to the public and / or stakeholders, on the results of the control analyses
of oil, gas and their derivatives”.
The Inter-institutional Work Group based on the Order of the Prime Minister No 233 of
2.12.2013 “On establishing an inter-institutional work group for the review of the legal and
institutional framework on keeping and managing the oil, gas and their by-products
emergency stocks”, is preparing the legal amendments for the transposition of the Council
Directive 2009/119/EC of 14 September 2009 imposing an obligation on Member States to
maintain minimum stocks of crude oil and/or petroleum products. An application to TAIEX
was filed in August 2014, to organise an expert mission in Albania to assist the Work Group
in the approximation of Albanian law with this Directive.
The project “Capacity Building Project for Large Gas Infrastructure Developments in
Albania with the Private Sector” financed by the Swiss State Secretariat for Economic Affairs
(SECO) is being finalised. The project assists Ministry of Energy and Industry with advisory
services to enable use of potential opportunities to increase energy security by diversifying
energy mix and energy sources; increase institutional ability and expertise to implement and
enforce environmental, technical and social safeguards alongside the construction of large gas
infrastructure developments; ensure capability through an appropriate regulatory framework
to make the best use of additional public resources generated by large gas infrastructure
projects; and increase negotiating and commercial capacities.
The total crude oil production in Albania in January – May 2014 arrived at 593,868 tons.
Concerning the construction of new power lines and activities in the gas sector, aiming to
diversify and increase security of supply in Albania and in the region, please see Chapter 21:
Trans European Networks.
15.2 Energy market
The following strategies/ laws are being prepared:
 Draft National Energy Strategy is being prepared taking into account the construction
of TAP Pipeline;
 Draft Power Sector Law is being prepared by a work group set up under the Order of
Minister of Energy and Industry No 27 of 17.01.2014. The goal is to further align the
Albanian legislation with the EU acquis and to fully transpose the Third Energy
Package. The draft Power Sector Law is scheduled to be submitted for endorsement to
the Council of Ministers in October 2014. The draft Law is included the National Plan
for European Integration 2014-2020;
 Draft Power Market Model Law is being prepared in accordance with the principles
of the draft Power Sector Law and in compliance with the Third Energy Package;
 The draft Law on some amendments to Law No 9946 of 30.06.2008 “On Gas Sector”
aiming to approximate the Third Energy Package. Amendments to Law No 9946 of
30.06.2008 “On Gas Sector” are being prepared by a working group set up by the
Order of Minister of Energy and Industry No 231 of 26.05.2014. The draft Law is
included in the National Plan for the European Integration 2014 – 2020; due to be
adopted in 4 Q 2014.
The dispute between the Albanian government and CEZ was settled through negotiations.
The Agreement was ratified with the Law No 114/2014 of 31.07.2014 “On the approval of
the settlement agreement between the Republic of Albania and CEZ, A.S.”. Albania will pay
CEZ 95 million Euro by 2018 in yearly instalments, as payment of receivables and transfer of
shares, an amount roughly equal to CEZ’s initial investment.
Immediately after the settlement of the CEZ dispute, Albania successfully completed
negotiations with World Bank for a USD 150 million on Power Reform and Recovery
Project. The World Bank-assisted program will support power sector reforms, particularly the
improvement of the reliability of the electricity supply and the financial viability of the
sector. Critical infrastructure investments under the project will include sizeable financing
earmarked for electricity distribution and upgrading of the transmission system.
The Albanian Parliament examined the activity of ERE in 2013, and adopted the Resolution
of the Parliament of 22.05.2014 “On evaluation of the activity of the Albanian Power
Regulator (ERE) in 2013”. For further information on the Resolution of the Parliament,
please see Annex 15.2.
Concerning the Decisions of the Albanian Power Regulator (ERE) please see Annex 15.1.
Data on the activity of ERE, during the reporting period, regarding licensing, are presented in
the table below:
Activity
No of approved licenses
Electricity production
5
Electricity qualified supplier
2
Traders
8
Modification of an existing license
1
Renewal of an existing license
3
Total
19
Source: ERE
For electricity production, ERE licensed in 1.01.2014 – 31.08.2014, five private companies
which owned concessions to build eight hydropower plants (HPPs) with a total installed
capacity of 11.93 MW, from which:
 Three with a total capacity up to 1MW;
 Four with a total capacity up to 5 MW.
 One with a total capacity over 5 MW
Two electricity production companies are in licensing process for the construction of seven
hydropower plant (HPP), with total installed capacity of 9.178 MW:
 One with a total capacity up to 1MW
 Six with a total capacity 1 up to 5 MW
Six companies are in Traders licensing process.
15.3 Energy Efficiency and Renewable Energy Sources
The draft Law on Energy Efficiency is being finalised aiming to fully approximate Albanian
law with Directive 2012/27/EU of the European Parliament and of the Council of 25 October
2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing
Directives 2004/8/EC and 2006/32/EC. The draft law provides for an indicative energy
savings target, the National Energy Efficiency Action Plan (NEEAP) and its monitoring, the
role of the public sector on Energy Efficiency, energy demand side management, energy
audits and promotion of the market for energy services. It includes institutional and
implementing mechanisms such as the establishment of the Energy Efficiency Fund and the
responsible Energy Efficiency Agency. The adoption of the draft Law is planned under the
National Plan for the European Integration 2014-2020.
The draft Law on the Energy Performance of Buildings is being prepared to fully
approximate Albanian law with Directive 2010/31/EU of the European Parliament and of the
Council of 19 May 2010 on the energy performance of buildings. The draft Law will be
finalised by the end of September 2014, with the assistance of European Bank for
Reconstruction and Development (EBRD) under the Western Balkan Investment
Framework/Regional Energy Efficiency Programme (WBIF/REEP). Under the WBIF/ REEP
programme, assistance will be provided for the preparation of the implementing legislation
for this Law.
The drafting of the new Energy Building Code will start assisted by EBRD and Energy
Community Secretariat. The first meeting between the Albanian and EBRD experts took
place on 8.05.2014. Preparations are being made to set-up a working group with experts of
the Ministry of Energy and Industry and Ministry of Urban Development and Tourism, to
prepare the draft Energy Building Code.
The Law No 9876 of 14.02.2008 “On the production, transportation and trade of biofuels and
other renewable fuels, for transport” is being revised, to approximate Albanian law with the
Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the
promotion of the use of energy from renewable sources and amending and subsequently
repealing Directives 2001/77/EC and 2003/30/EC. A Work Group was set-up based on the
Order of the Minister of Energy and Industry No 224 of 17.06.2014.
The draft National Renewable Energy Action Plan (2014 – 2020) is being consulted with the
UNDP consultant. UNDP will provide its comments by the end of September 2014.
The draft of 2nd National Energy Efficiency Action Plan (NEEAP) is finalised and it will be
ready for discussions immediately after the adoption of the new draft Law on Energy
Efficiency.
The National Agency for Natural Resources (AKBN) monitored the results related to energy
efficiency in 1st National Energy Efficiency Action Plan (NEEAP), and compared those to the
national targets. AKBN estimated that the energy consumption was reduced with 2.61%
compared to the national target of a 3% reduction by 2012. The national target set by the
National Energy Efficiency Plan is for a 9% reduction by 2018.
In the field of renewable energy, the Ministry of Energy and Industry monitored the
electricity production generated from renewable sources in 2013, estimating that 34.2% of the
energy was produced from renewable sources compared to the target of 38% in 2020.
15.4 Nuclear safety and radiation protection
In the field of radiation protection during May - August 2014the following legal acts were
adopted:
 Decision of Council of Ministers No 404 of 18.06.2014 “On the approval of the
Regulation ‘On basic rules on radiological installations in medicine”. It defines
criteria for acceptability of radiological installations used in medicine. The Regulation
is based on the report “Radiation Protection No 162 ‘Criteria for Acceptability of
Medical Radiological Equipment used in Diagnostic Radiology, Nuclear Medicine
and Radiotherapy”;
 Decision of Radiation Protection Commission No 3618/3 of 13.05.2014 “On the
assessment procedures of the application to be recognised by the Radiation Protection
Commission as a qualified expert in non-ionising radiation protection and
confirmation template”;
 Decision of Radiation Protection Commission No 3618/4 of 13.05.2014 “On the
assessment procedures of the application to be recognised by the Radiation Protection
Commission as a qualified expert in ionising radiation protection and confirmation
template”;
 Decision of Radiation Protection Commission No 3618/5 of 13.05.2014 “On the
procedures, explanatory note template and assessment of application for licence by
entities that use sources of ionising radiation. Notification and Confirmation
template”
 Decision of Radiation Protection Commission No 3618/6 of 13.05.2014 “On the
procedures, explanatory note template and assessment of application for licence by
entities that use sources of non-ionising radiation. Confirmation template”. This
Decision is fully approximated with Council Directive 2013/59/Euratom of 5
December 2013 laying down basic safety standards for protection against the dangers
arising from exposure to ionising radiation, and repealing Directives 89/618/Euratom,
90/641/Euratom, 96/29/Euratom, 97/43/Euratom and 2003/122/Euratom.
CHAPTER 16: TAXATION
Key achievements
The Ministry of Finance and the General Tax Directorate have continued their work on the
approximation of Albanian legislation with EU acquis. The aim of activities was to improve
tax procedures and to reduce administrative costs for the taxpayers. Furthermore, increased
administrative cooperation, mutual assistance and the fight against tax fraud and tax evasion
as well as corruption may be reported. A new Law on VAT was adopted.
Law approximation
During the reporting period (1 May – 31 August 2014) the following legal acts were adopted:
 Law No 83/2014 of 17.08.2014 “On some amendments to Law No 8438 of 28.12.1998
“On income tax”, as amended. This law implements the National Plan for European
Integration, Chapter 16. The main changes comprise of:
o Amendment to the formula used for calculating the profit tax instalments. Under the
new formula instalments of income tax are calculated based on profit in a previous
year. This way, the payments will be closer to the actual annual obligation. This
approach will avoid the procedure of refunds resulting from overpayments.
o The dates of payment of dividends and withholding other taxes are now unified.
 Law No 84/2014 of 17.07.2014 “On some amendments to Law No 9920 of 19.05.2008
“On Tax Procedures in the Republic of Albania”, as amended. The changes consist of:
o Introduction of the electronic communication between tax offices and taxpayers. Tax
assessments, notifications, decisions and other official communications of the tax
administration with taxpayers are now sent electronically, however the possibility of
using traditional post remain;
o Change to the rules on registration. Under the new rules the registration at the
National Registration Centre serves respectively as a registration for the purposes of
Tax Administration and Social and Health Security Schemes of the Labour
Inspectorate and Customs authorities;
o Change to the procedure for transfer of taxpayer from active to passive status. Under
the new rules this transfer is to be done automatically by the system, when it is
determined that the taxpayer meets at least one of the conditions specified in the
Law;
o Introduction of a reminder letter sent to tax payers in case of delay in filing their tax
return;
o Reduction of the number of tax declarations from three to one. The payroll will
serve also as a declaration for health and social contributions and for personal
income tax deducted from the salary.
 Law No 85/2014 of 17.07.2014 “On some amendments to Law No 9632 of 30.10.2006
“On local tax”, as amended. A very important change in this law is the provision that
allows changes in the simplified income tax instalments, when the taxpayer forecasts
that the tax will decrease significantly compared to the previous period. Other
procedures regarding the instalment payments of simplified income tax for small
business taxpayers with 0-2 million ALL annual turnover.



Law No 87/2014 of 17.07.2014 “On some amendments to Law No 9632 of 11.09.2003
“On the collection of health and social contributions in the Republic of Albania”, as
amended. Three declarations that the employer should have previously submitted for
health and social contributions and also for personal income tax are substituted with one
declaration, based on which, the system shall generate a single payment order.
Law No 86/2014 of 17.07.2014 “On some amendments to Law No 9975 of 28.07.2008
“On National Tax”, as amended. This law provides that, all the tariffs and national taxes
should be declared electronically. It is also unified the date of their payment and
declarations in the tax administration.
Law No 92/2014 of 24.07.2014 “On VAT”, which is partially in compliance with
Council Directive 2006/112/EC of 28 November 2006 on the common system of value
added tax. This law implements the National Plan for European Integration, Chapter 16.
As regards transfer pricing, the following acts were approved:
 Law No 42/2014 of 24.04.2014 “On some amendments to Law No 8438 of
28.12.1998 “On Income Taxes”, as amended;
 Law No 43/2014 of 24.04.2014 “On an amendment to Law No 9920 of 19.05.2008
“On Tax Procedures in the Republic of Albania”, as amended;
 Guideline No 16 of 18.06.2014 “On Transfer Pricing”.
The following legal acts on reimbursement of VAT were approved:
 Guideline No 6/3 of 8.05.2014 “On some addenda and amendments to the Guideline
No 17 of 13.05.2008 “On Value Added Tax”, as amended. The paragraph 19.4 of the
Guideline on constraints lending fuel used for the activity purposes is amended and
paragraph 19.5 is abrogated.
 Guideline No 6/4 of 16.05.2014 “On some addenda and amendments to the Guideline
No 17 of 13.05.2008 ‘On VAT’”, as amended. The third paragraph of section 8.6
“Diplomats and international organizations”, clarifies the procedure of reimbursement
of VAT, according to which, the Ministry of Foreign Affairs, based on form No. 3,
compiles (in quadruplicate) the reimbursement payment order to any diplomatic body
and sends it to the Treasury Branches.
 Guideline No 6/2 of 16.05.2014 “On some addenda and amendments to the Guideline
No 17 of 13.5.2008 “On value added tax”, as amended. Section 8.8.2.1, first
paragraph is amended, determining that the drugs imported and those that are locally
produced, which have at the control stamp the price with 10% VAT, in order to be
traded (sold) result stock in pharmaceuticals entities up to date March 31, 2014, will
apply 0% VAT, in sales, regardless to the VAT listed on the mark.
Reimbursement for the VAT, up to July 2014
Pursuant to the Decision of the Council of Ministers (DCM) No. 50, dated 05.02.2014 “On
the approval of the strategy for the prevention and pay out of arrears of the action plan” the
following activities were undertaken during the period May-July 2014:
 1 (one) claim for VAT reimbursement was approved (value Euro 7,339,992);
312 reimbursement claims were entertained (total value 57,370,555 Euro);




132 refund claims (arrears) with a value of 1,936,967 Euro, were not reimbursed,
because the taxpayers had unpaid obligations and they had not bank guarantee,
conform to the above mentioned DCM;
From 131 VAT refund claims unapproved until 31.12.2013 with a value of
24,253,729 Euro, 95 refund claims with a value of 15,578,078 Euro were audited and
approved. From these 95 refund claims audited and approved, 62 claims were
reimbursed with a value of 8,923,644 Euro;
Regarding of VAT refund claims for year 2014, based on the Law No 7928 of
27.04.1995 “On Value Added Tax” and the Guideline No 6 of 27.02.2014 “On some
addenda and amendments to Guideline No 17 of 13.05.2008 “On Value Added Tax”,
as amended, during May-July 2014, there are approved and reimbursed 80 claims
with a value of 9,152,754 Euro;
For the two last weeks of April 2014, there are approved and reimbursed 34 requests
valued at Euro 8,140,982. This figure was not reported on the First Contribution of
the Progress Report.
When it comes to administrative cooperation the Republic of Albania and the Sultanate of
Oman approved on 07.05.2014 the Agreement “On the Avoidance of Double Taxation and
prevention of Fiscal Evasion with respect to taxes on income and on capital”. This
Agreement was approved in principle by DCM No. 434, dated 02.07.2014.
Taxpayer Advocate
During May – July 2014, 30 complaints were submitted by taxpayers to the Taxpayer
Advocate. Out of there 22 cases were covered by an in-depth investigation procedure by the
practice’s review, made by the Directorate of the Taxpayer Advocate.
The Taxpayer Advocate compiled, with the support of the Ministry of Finance, a Draft of
Taxpayers Charter. By the end of the reporting period it was awaiting approval of the
Ministry of Finance.
A sub-domain dedicated to the Taxpayer Advocate was launched at the official website of the
tax administration. The aim is to increase transparency and to improve the taxpayer services.
This sub-domain is operational and can be accessed at http://www.tatime.gov.al.
As far as the Taxpayer Service is concerned the increase of a number of statements (tax
returns) completed continues to be constant (3.2 % increase when compared to the reporting
period last year). During the reporting period, the total number of the statements completed
was 283,000. They covered VAT, health insurance as well as employment income tax.
As regards the fight against Tax Fraud and Tax Evasion, the following were reported for
prosecution:
 12 cases for concealment of income (Article 180 of the Criminal Code);
 five criminal cases for creating VAT fraud schemes (Article 144a of the Criminal
Code).
As far as the fight against corruption is concerned, the Internal Investigation Directorate
(within the GDT) has proposed taking the following measures:
 three employees are proposed to be subject to disciplinary measures for serious
violations;
 three others are proposed to be under disciplinary measure “Very Serious Violation”.
Regarding the developments of the Information Technology, during the reporting period a
project “E-Taxation” was implemented. A new website, designed to be more user-friendly for
taxpayers, interested individuals and employees of the Tax Administration, was launched. It
provides the beneficiaries with more information about tax legislation and it is expected to
allow the taxpayers to appreciate their rights and obligations more easily.
During the reporting period the following were implemented:
 A reporting platform which enables the use of a single source for management to have
a unified view of data, to better assist management in its decision making. The Tax
Administration will be enabled to perform analyses of the large amount data it owns
and gain business intelligence (BI). The new core system will maintain all the data
related to activities of taxpayers and tax officers, chronologically. Also, the system
which is the interface of the Tax Administration with the taxpayer, will store crucial
data for Tax Administration.
 Accounting Module as part of the new system, based on two key principles, as
follows:
o Principle of double registration, which means that any economic transaction is
recorded in two accounts, a debit and a credit, for the same amount.
o Principle of assumed rights and liabilities. The financial declarations prepared on
the basis of assumed rights and obligations inform the users not only on the past
transactions accompanied by receipts and payments, but also on the obligations to
be paid in the future.
A comprehensive program of training for users of the new tax management system was
approved in May 2014. The trainings started in May 2014 and will continue till September
2014. They focus on the use of new digitalized tax system in Albania.
In July 2014, the Tax Administration started a training program for the implementation of the
new IT System for all the employees of Tax Administration. It comprises three stages. The
first stage was the training of trainers, of those selected among the best specialists of the
General Tax Department, who will serve as coaches and mentors for all tax employees in the
other two stages of the training program. The training was focused in how to use the new
digitalized tax system for the six major types of taxes in Albania.
In July 2014 has started the training of GDT’s IT staff on Microsoft SharePoint and
Reporting. The GDT IT staff has implemented the Internal Portal which needs to be tested
and also they shall be responsible for the delivery of functionality for Help Desk support that
will be part of Internal Portal.
CHAPTER 17: ECONOMIC AND MONETARY POLICY
Key achievements
The accommodative stance of the monetary policy of the Bank of Albania was strengthened
further in the first half of 2014. In the presence of weak underlying inflationary pressures, a
negative output gap and declining risk premia in the financial markets, the Bank of Albania
lowered twice its policy rate. At the end of May, the policy rate reached 2.5 %. The increased
monetary stimulus in the economy was also facilitated by the path of fiscal consolidation
pursued by the fiscal authorities.
Overall, according to BoA the policy mix in Albania remains appropriately stimulating for
the economic activity in Albania. BoA has continued to provide forward guidance to the
financial markets and to inject liquidity under the same operational framework. Meanwhile
exchange rate continues to be freely determined in the foreign exchange market. BoA’s
monetary policy and liquidity management operations have been reflected in decreased risk
premia in the financial system, as well as reduced volatility and an overall decrease in interest
rates. The financing costs of the banking system, the public and the private sector are all at
historical minimums.
17.1 General directions
The main objective of the monetary policy of the Bank of Albania is to achieve and maintain
price stability. In quantitative terms, the Bank of Albania aims at a consumer price inflation
of around 3.0% over the medium term, with a tolerance band of +/- 1pp.
The monetary policy framework is laid down in the Monetary Policy Document, which is
published every three years (the most recent is for 2012-2014). Monetary policy decisions are
based on the deviations of forecasted inflation from the inflation objective and the balance of
inflationary pressures for the future. To this end, the Bank of Albania employs a
comprehensive set of economic and financial indicators. The current monetary policy
framework is complemented by a free exchange rate regime.
17.2 Monetary Policy
The monetary policy has strived to bring inflation back to our 3% target, in the presence of
cyclically weak demand side pressures and continued supply side shocks. The average
inflation rate dropped to an average of 1.6% in the second quarter of 2014, down from 1.9%
in Q1. The July inflation rate increased slightly to 1.8%, but it still remains below the Bank of
Albania’s objective. The decline in inflation rate was mostly driven by unusually low food
prices and low imported inflation, amidst declining inflation in our trading partners and a
stable exchange rate.
From a macroeconomic perspective, the slow growth of consumer prices in 2014 continues to
primarily reflect the negative output gap, which in turn is reflected in a slow growth of unit
labour costs and weak profit margins. At the same time, inflation expectations remain
anchored, if not slightly declining, and the liquidity situation in the economy does points to
weak inflationary pressures. Our baseline projections indicate this picture will prevail in the
short to medium term, though the expected improvement in aggregate demand and economic
growth will lead to a gradual convergence of CPI inflation to our 3% target.
To facilitate this inflation convergence to the target, as well as aiming to control inflation
expectations, the Bank of Albania strengthened further the expansionary stance of its
monetary policy. The policy rate was cut in two consecutive steps, in February and May, by a
total of 50 basis points; it currently stands at a historical minimum of 2.50%. Simultaneously,
the Bank of Albania has continued to inject liquidity in the market using its reverse repo
operations with a maximum maturity of three months.
The decreased liquidity and inflation risk premia in financial markets have facilitated the
transmission of the policy rate changes in other segments. So far, the transmission has been
complete in the interbank market, in the primary market for short term government securities,
and in the interest rates of commercial bank deposits. From a longer term perspective, the
easing cycle of monetary policy rate has been almost fully transmitted in the credit and longterm government paper interest rates. However, perceived risk premia and risk aversion in the
financial system remains high.
Furthermore, the transmission of the monetary stimulus in the real economy has been
incomplete thus far, hampered by the high uncertainties perceived by both the private sector
and banks. The demand for loans continues to be low in 2014 H1, while banks remain
excessively prudent in their lending policies. The last Bank lending survey (2014 Q2)
contains some positive signals, in the form of an overall easing of lending standards and a
perceived higher demand for loans.
The Bank of Albania has continued to use forward guidance in its monetary policy
communication to the public suggesting that as long as inflation pressures are expected to be
weak the monetary policy will continue to be stimulating in the medium term in order to
boost demand.
17.3 Economic Policy
Addressing the request on Subcommittee on Economic and Financial Issues and Statistics
meeting 2013, Albania officially submitted the EFP 2014 – 2016 on 31st of January 2013.
The EFP 2014-2016 was approved by Decision of Council of Ministers No 33 on 29.01.2014
“On the approval of the Economic and Fiscal Programme 2014 – 2016”. In July, Ministry of
Finance received the final assessment of DG ECFIN on EFP 2014 as well as the new policy
guidelines that EC expects to be followed from Albania in the medium term future. In
September 2014, MF is planning to start the work for the preparation of the next EFP 2015.
MF will make all their efforts to implement the recommendations of DG ECFIN while the
policy guidelines of EC will be the main guide of our economic policies and reforms of the
next programme.
During the period January - June 2014, Bank of Albania has continued to apply the
stimulating macro prudential policies toward lending, which have been in place since May
2013. The macro prudential measures have helped impeding the further increased of the NPL
ratio, but have proved little impact to generate new lending activity due to the subdued
lending demand and the overall uncertainties perceived from economic agents and banks. The
still high NPL ratio continues to burden balance sheets of the banking system.
Total revenues increased by 11.8% during the period January – June 2014 compared to the
same period for 2013. Tax and customs revenues experienced a growth of about 14.5%
during the first two quarters of 2014 in annual terms. This is a considerable improvement
compared to the trend of the quarters for the same period of 2013. Total revenues and
especially revenues from tax and customs were increasing for this period in annual terms.
Part of this increase is probably driven by post effects of the new tax measures enforced in 1st
of January 2014.
Continuing in Q2 2014 with the trend in tax collection, that had a turning point during Q4
2013, will be highly crucial for the public finances as well as the overall macroeconomic
stability of the country. Furthermore, other kinds of current budget revenues (i.e. revenues
from local power and social contributions) have performed better during the last quarter, with
an exemption from the non tax revenues that during this period have been declining. Total
revenues and tax and customs revenues in terms of GDP were respectively 12.4% and 8.5%
for 2014 till Q2 higher than the level of the same period for 2013, respectively 0.8 and 0.7
percentage point higher.
Overall fiscal deficit was considerably lower in the end of the second quarter of 2014 than the
target of the revised budget. Mainly due to the increase of revenues as well as lower than
planned foreign capital expenditures and lower increase of current expenditures during the
period January – June 2014, the fiscal deficit for same period was about 1.6% of GDP, or
60.8% lower than it was planned for that period. Compared with the same period of last year
(June 2014/June 2013) the fiscal balance was 2.0 percentage point lower, showing the
commitment of the government in achieving a necessary fiscal consolidation, taking into the
account the IMF program. The fiscal deficit of for Q2 2014 was mainly financed through net
new borrowing. About 1.2 percentage points of the overall deficit for that period was
domestically financed and 0.4 % was mainly foreign financed.
Developments in revenues and expenditures during the last quarter let to another important
positive fiscal result regarding the current fiscal balance. In the end of June 2014, the current
fiscal balance was in deficit of about 0.2% of GDP or 0.3% percentage lower than it was for
the same period for 2013. Only 25.0 % of the current fiscal balance that was planned during
January-June 2014 was achieved.
The primary balance was about 0.1% of GDP during the period January – June 2014,
showing a balance which is almost equilibrated. The primary balance is 1.9 percentage point
lower in absolute value compared with the same period of last year (January-June 2013), and
seems to be reduced compared to the end of 2013 (1.7% of GDP).
The public debt in the end of Q2 2014 (excluding the stock of arrears) is estimated at 64.7%
of GDP54. Compared to the level of debt at the end of the period December 2013, there has
been a slightly decline by 0.4 percentage point, mainly due to the paying of the arrears that
has begun to happen by the government during that period.
In 2014 Ministry of Finance is targeting a fiscal deficit of 6.5% of GDP. About 4% of GDP
will be financed through domestic and foreign debt, respectively 3.3% and 0.7% of GDP. The
rest of 2.5% of GDP will be financed through smooth loans from IMF and WB. This part of
financing will be in the form of “budget support” but at the same time an equivalent amount
of budget expenditures is allocated toward the payment of arrears (infrastructure, tax and
other arrears).
54 If MF adds to this level the 5.3% of GDP which is the stock of total outstanding arrears as estimated by IMF,
Albania will have a level of 70.0% of GDP of the total public debt.
CHAPTER 18: STATISTICS
Key achievements
The reporting period is characterised by increased cooperation with the directorates of civil
status offices responsible for providing the data of demographic events. INSTAT was
involved in several activities to fulfil the planned activities in Official Statistic Program.
18.1 Demographic and Social Statistics
On 21-22 May 2014, INSTAT, in cooperation with the EU IPA 2009 TA and support of
Swiss Development Cooperation (SDC), organized the Conference “Analysis of 2011
Population and Housing Census data and its use”. Participants included high level
representatives from the Government of Albania, EUROSTAT, Statistical Offices of the
neighbouring countries, donor community in Albania, researchers and academia, civil society
and media. The purpose of this event was to introduce to the general public the economic
characteristics of the 2011 PHC and the findings of the last series of the publications
analyzing 2011 PHC results. These publications focused on the Quality Dimensions of the
2011 Census, Population Projections 2011-2013 and Population dynamics, Migration in
Albania, Labour Market Dynamics between the last two censuses, Dwellings and living
conditions.
Gender statistics are considered as a separate field of social statistics. An extended
publication was published in February 2014, which included new social indicators, coming
not only from administrative records but also from all the social surveys that INSTAT has
already conducted. Currently, it is being prepared the next publication, which is expected to
be published by the end of October 2014.
The “Return migration and re-integration in Albania” survey was conducted by INSTAT in
collaboration with International Organisation of Migration (IOM). This survey focused on all
Albanian emigrants over 18 years old, who, since 2009, decided to return to Albania
independently or were compelled to do so. This is the first time that such a survey was
conducted in Albania and its main goal is to have better understanding of this phenomenon as
well re-integration needs of such returnees. The final results will be published in 15.09.2014.
18.1.1 Labour Force Survey and Household Surveys
The activities that took place during the reporting period include:
 The Quarterly Labour Force Survey (QLFS) is being conducted regularly and
INSTAT is publishing quarterly estimations for the employment and unemployment.
The LFS results for the first quarter of 2014 were published on 10.06.2014, while the
data for the second quarter of 2014 is currently being processed and will be published
on 10.09.2014.
 A full analyses and results of the labour cost survey 2013 are expected to be published
in 2014.

A pilot of EU-SILC is being prepared in the framework of IPA Multi-beneficiary
2012 with the support of an expert from EUROSTAT. The preparatory phase
(questionnaire, sample and organisation plan) will be completed in September 2014.
The fieldwork is planned for September – October 2014, while the data entry and data
cleaning will be done in November – December 2014.
18.1.2 Administrative Capacities
There is no updated information for the requested period.
18.2 Environment Statistics
There is no updated information for the requested period
18.2.1 Energy, Tourism and Transport Statistics
Related to Tourism and Transport activities, during the reporting period quantities data for
the first quarter of 2014, were collected, processed and published in the Quarterly Statistical
Bulletin, available in www.instat.gov.al. While the economic information related to those
activities was published in the “Short term statistics”, first quarter of 2014 publication.
Related to “Energy” INSTAT is working on the publication of “Balance of Electric Power,
first half of 2014”, which is expected to be published on 25.08.2014, under the following
link: www.instat.gov.al.
18.3 Macroeconomic Statistics
Please refer to point 18.4.2
18.3.1 Price Statistics
The Consumer price statistics are in data processing phase in order to prepare monthly
publication.
Table 1: Monthly and yearly rate of CPI
Months/year
07-13
08-13
09-13
10-13
11-13
12-13
01-14
02-14
03-14
04-14
Monthly rate
Yearly rate
-0.8
-0.1
0.8
0,1
-0.5
1.7
0.8
1.4
0.5
-0.6
1.6
1.2
1.7
1.7
1.0
1.9
1.7
1.9
2.2
1.7
05-14
06-14
07-14
-1.1
-0.7
-0.6
1.6
1.5
1.8
In July 2014 the annual rate of consumer price was 1.8%. For a comparison, in 2013 the
annual rate was 1.6%. Annual growth rate in July was push up mainly from “Food and nonalcoholic beverage” by 1.03%. Higher prices of “Goods and different services” contributed
by 0.41% to the annual rate. Low prices of “Health” group contributed by - 0.21% to the
annual rate.
In July 2014 the monthly rate of consumer prices was -0.6 %. Monthly rate of prices was
pushed down mainly by “Food and non-alcoholic beverage” by -0.46 %.
18.3.2 Foreign Trade (Import & Export)
During the reporting period the Foreign Trade statistics were collected, processed and
published each month respecting the deadline for publication in the INSTAT publication
calendar. The recent results about the flow of goods in foreign trade are presented in the table
below.
Table 2: Flow of goods in foreign trade
Months/Year
05 - 13
06 - 13
07 - 13
08 - 13
09 - 13
10 - 13
11 - 13
12 - 13
01 - 14
02 - 14
03 - 14
04 - 14
05 - 14
06 - 14
Export
23,201
20,761
24,288
18,155
21,360
22,300
21,008
21,411
17,869
20,304
21,301
22,720
25,318
22,465
Import
45,131
41,499
48,383
42,403
42,123
46,680
44,879
58,976
34,921
39,193
42,459
44,308
48,216
48,908
Trade balance
-21,930
-20,738
-24,095
-24,248
-20,763
-24,380
-23,870
-37,565
-17,052
-18,890
-21,159
-21,588
-22,898
-26,443
Percentage of cover
51.4
50.0
50.2
42.8
50.7
47.8
46.8
36.3
51.2
51.8
50.2
51.3
52.5
45.9
Source: INSTAT
In June 2014 commodities worth ALL 22,465 million were exported, which constitutes a
decrease of 11.3% compared to May 2014, while compared with June 2013 the growth is
8.2%.
In June 2014 commodities worth ALL 48,908 million were imported, which constitutes an
increase of 1.4% compared to May 2014, while compared with June 2013 the growth is
17.9%.
As regards trade deficit, in June 2014 there is an increase of 15.5% compared to May 2014
and 27.5 % compared to June 2013.
The trade with the European Union countries constitutes 65.4% of the total trade, with the
main trade partners remaining Italy (36.1%) and Greece (7.2%).
18.4 Business Statistics
In the Business Statistics activities the work was focused on publishing the Short term
statistic for the first quarter of 2014, in new classification, NACE rev.2 (European Economic
Activity Classification, rev.2). Refer to: www.instat.gov.al/Themes: Enterprises Economic
Indicators / Publication: “Short term statistics” and Figures and database as well.
Related to “Annual Structure Business Survey” (reference year data 2013) the process of
collecting data is on-going. The SBS questionnaire is split up by activities, such as: Industry,
Construction, Trade and Other services. Also the new variables are added, one of them is
related to energy consumption and prices of energy products. The Producer Price Index and
Construction Cost Index are published as well for the 1st quarter 2014th. Refer to:
http://www.instat.gov.al/Themes:”Prices”.
18.4.1 Regional Statistics
Gross Domestic Product according Statistical Regions in Albania was published on
31.07.2014. This publication presents results of Gross Domestic Product (GDP) for year 2012
for the Republic of Albania in statistical region level 1, 2 and 3 defined according to
Nomenclature of Territorial Units for Statistics (NUTS) of European Union. For more details
please see: http://www.instat.gov.al/en/publications/press-releases/press-release-gdp-byregions-2012.aspx.
18.4.2 Statistics of National Accounts
The main activities during the reporting period concentrated on the following issues:
 Publication of GDP time series 2008-2012 at detail level 26 economic activities;
 Improvement of methods for estimation of FISIM, Output of Central Bank, Recording
of the output of non-life insurance services;
 Application of User cost approach to estimated owner occupied dwelling services;
 Improvement of GDP Exhaustiveness.
The revised estimation of GDP 2008-2012 have been the outcome of the concerted efforts of
INSTAT to implement the revised international methodology introduced by SNA 2008 and
ESA 2010, as well as continuous work on improving the quality of the national accounts
statistics through incorporation of a widening scope of various statistical and administrative
data sources and through implementation of internationally accepted best practices in
applying statistical techniques according to the recommendations of the technical assistance
of the EU and IMF.
New GDP estimations are presented first to the main institutional users, then they are
published and methodological explanations follow in order to increase the transparency of
methods used in annual national accounts.
For detailed information, see the links below:
 http://www.instat.gov.al/en/themes/national-accounts.aspx?tab=tabs-5
 http://www.instat.gov.al/media/246861/methodological_explanations_on__annual_gd
p_revisions.pdf
The work regarding the implementation of NACE REV 2 classification in national accounts
time series data, by ensuring comparability of estimations with other European countries, is
on-going.
 As far as Supply and Use Table (SUT) is concerned, a number of activities was
undertaken to balance these tables for years 2009-2011. The balanced tables are only
for SUT at current prices at Nace and CPA 2 digit level. In these estimations are
included all methodological changes applied to annual GDP estimation by production
and expenditure approach and in the same time are done many controls to enable a
better balance of those tables.
 Concerning the “Quarterly National Accounts”, the results of Gross Value Added
(GVA) by production approach for the Q1 2014 were published (please see:
http://www.instat.gov.al/en/themes/nationalaccounts/publications/books/2014/quarterly-economic-growth,-q1-2014.aspx). GVA
for the first quarter of 2014 reflects some fundamental changes as a result of the
recently published revisions and methodological improvements of quarterly accounts
to annual data from 2008 to 2012. Also, the work on implementation of the
independent method for the estimation of GDP by expenditure method to set up
compilation system for QGDP by expenditure has continued. Currently, the main
components are estimated in the form of time series Q1-2007 till Q4-2013, in current
prices and constant prices of previous year.
 Inter-Institutional Working Group between INSTAT and the Ministry of Finances
related the statistics of general government, continues to work and first results are
expected to be produced end of September 2014.
18.5 Monetary, Financial, Trade Statistics and Statistics on Balance on Payments
Pursuant to Law No 8269 of 23.12.1997 “On the Bank of Albania”, as amended; the Law No
9180 of 5.02.2004 “On Official Statistics”, as amended; the “Medium-term program of
official statistics 2012-2016”, approved by Parliament’s Decision No 3 of 14.02.2013, the
Bank of Albania has continued with the production and publication of two main statistical
blocks presenting monetary and financial statistics and external sector statistics, as below in
“Table 3” and “Table 2”. All the statistical indicators produced and disseminated by BoA
guarantee the observance of official statistics’ principles, such as integrity, transparency,
quality and consistency.
18.5.1 Monetary and Financial Statistics
In second quarter of 2014 a six months project on several business areas of the central bank
has started under the “Euro system Programme” in cooperation with the Bank of Albania
(BoA). The overall objective of this project is to perform the needs analysis and identification
of gaps in order to support the BoA in approaching with European System of Central Banks
(ESCB) standards, rules, procedures and policies.
On the statistics domain, related to monetary statistics and financial accounts area, such
analysis should be completed in cooperation with experts from OeNB (Austrian National
Bank). These were two areas which underwent an overall and thorough analysis during the
stock-taking mission of the project. This analysis was finalized in June 2014 with a report
containing a set of recommendations to be considered and implemented in medium and long
term, to ensure the compliance of Bank of Albania’s monetary and financial statistics with
the standards and requirements of the European Central Bank (ECB) on:
 Balance sheet statistics;
 Interest rate statistics;
 Investment funds assets and liabilities;
 Securities issuance statistics;
 Securities holdings and securities database;
 Technical infrastructure for data compilation;
 Cooperation with Statistical Institute.
Regarding the “Financial Accounts”, in the Official Statistics Program 2012-2016, the BoA
has proposed the compilation of “Financial Accounts” as a research activity that will be
realized through joint cooperation between the BoA, the Institute of Statistics (INSTAT) and
the Ministry of Finance. Following the OSP 2012-2016, the BoA and INSTAT, have
continued their cooperation through technical level meetings, to identify opportunities and
sources of information and to continue the exchange of statistical information respectively.
Given the expansion of the Financial Stability and Statistics Department with a 3-persons
unit, whose main responsibility will be the production of financial accounts, the first half of
the year 2014 was dedicated to studying of the methodology and international standards for
the compilation of financial accounts. Currently, the unit is still studying the EU regulations,
methodologies and international best practices on financial accounts compilation and
reporting. By the end of the current year the unit will draft the methodology for compilation
of financial sector’s financial accounts.
Table 3: Monetary and financial statistics
Name of Indicator/Activity
Monetary aggregates (end of period)
Data of Central Bank (end of period)
Data of Deposit-taking Corporations (end of period)
Sectoral Balance Sheet of Savings and Loans
Associations (end of period)
Data of Other Deposit-taking Corporations (end of
Periodicity
Monthly
Monthly
Monthly
Quarterly
Monthly
Agency responsible
BoA
BoA
BoA
BoA
BoA
period)
Monetary Survey of Deposit-taking Corporations (end
of period)
Deposits included in Broad Money (end of period)
New Deposits by Currency (flows)
Time Deposits by Main Currencies, Subject and
Maturity (end of period)
Time Deposits by District (end of period)
Credit to Economy (end of period)
New Loans by Purpose and Currency (flows)
Loans by Purpose and Currency (end of period)
New Loans by Economic Activity (flows)
Loans by Economic Activity (end of period)
Interest Rates of New Deposits and Loans by Maturity
and Main Currencies (flows)
Banking Sector Indicators
Financial Accounts: Design of a pilot model (data
sources and methodology) for Financial Institutions
Monthly
BoA
Monthly
Monthly
Monthly
BoA
BoA
BoA
Quarterly
BoA
BoA
BoA
BoA
BoA
BoA
BoA
Monthly
Monthly
Monthly
Monthly
Monthly
Quarterly
BoA
BoA, INSTAT, MoF
In the context of approximating with EU standards and international best practices in the field
of statistical production, BoA has continued its day to day activities for the implementation of
the project for the automatisation of statistical direct reporting from banks. The first version
was already completed. In cooperation with the IT Department of the BoA, the work on the
second version of the system is continuing and the system is expected to be functional at the
beginning of 2015. The system is expected to bring a number of benefits ranging from
reduced manual work, increased quality control, better monitoring of the reporting process,
increased number of statistical indicators and quality of data, and the elimination of double
reporting.
18.5.2 Balance of Payments and Trade in Services Statistics
During the period May 2014 - August 2014, two technical missions (IMF and Eurostat)
visited Balance of Payments Unit and International Investment Position Unit. As a result,
BoA in the compilation of balance of payments statistics followed the two main benchmarks:
implementation of Balance of Payments Manual 6 (BPM6) and compilation of remittances
based on new data source and methodology. According to BPM6, BoA published in June
2014 the statistical data for the first quarter of 2014, accompanying them with the changes in
metadata for the users. Starting from this year, BoA ceased to release BoP data on a monthly
basis as the compilation frequency is on quarterly basis. For an adequate base of comparison
for different analysis, starting from 2Q 2014 publications, the Bank of Albania will also
convert the four quarters of 2013 to BPM6. Following the second benchmark, in measuring
remittances, BoA shifted from the residual model to the new survey targeted at Albanian
emigrants while crossing the border into Albania to visit their relatives. The new
methodology combines the data based on the new survey and the data reported by banks and
money transfer operators.
As a result of the second mission, focused mainly on International Trade in Services, BoA
has designed an action plan to fulfil the recommendations according to priority indicated.
These recommendations define the level of the detail of the International Trade in Services
components and geographical breakdown. BoA has started to work for the automation
investment on behalf of individual cross-border bank customer transactions by the banks. For
transport services, BoA revised the questionnaire of trade survey that will be conducted in
September 2014 with the aim to refresh the cif/fob coefficients, trade credits and smuggling.
For travel services, the questionnaire will be enhanced by including questions on passenger
transport. A meeting with the Ministry of Interior was held during this period, for improving
the data on number of travellers based on residency, age-groups, purpose of travel and
destination country.
For Financial Intermediation Services Indirectly Measured (FISIM), BoA is in the process of
estimating the data sources and within 2014 to develop a model for the calculation of FISIM
in the balance of payments. A meeting with Instat is planned following the recommendations
of the two missions.
As a result of the IMF technical assistance in April 2014, BoA is following the objective of
compiling and publishing an annual IIP 9 months after the end of the reference period. A lot
of efforts have been done for collecting and compiling on time the information regarding
foreign direct investments. Changes have been made to the existing questionnaire, which
included the presentation of items in a more adequate format and asking additional questions.
The annual FDI survey was conducted by BoA in collaboration with INSTAT in June 2014.
Its results were plausible. Most of the information has been collected and the compilation
process has started. The information from the survey will be an important source for
publishing the stock of FDI statistics by geographical and economic breakdown, for IIP, BOP
and GED statistics.
From January 2014, BoA has started the monthly publication of reserve assets and the
reporting to IMF of the data template on international reserves and foreign currency liquidity.
The publication of reserve assets begins with the data of December 2003, the same as the
stock of IIP and GED.
BoA has designed a new questionnaire for collecting information on quarterly FDI and from
the following year 2015, it will conduct a quarterly survey on foreign direct investments. This
information is necessary for compiling the quarterly IIP - another objective set in
collaboration with the IMF mission.
BoA is working for a new compilation of the stock of gross external debt by currency and
soon the results will be published in BoA webpage.
Table 4: External sector statistics
Name of indicator/Activity
Balance of Payments
Frequency of publication
Present
Medium Term
Quarterly
Quarterly
Agency
responsible
BoA
International Trade in Services
Foreign Direct Investment (flows)
by Economic Activity
by Countries
Reserve Assets (Template on
International Reserves and Foreign
Currency Liquidity)
International Investment Position
Foreign Direct Investment (stocks)
by Economic Activity
by Countries
Gross External Debt
by Institutional Sector
by Maturity
by Currency
Outward Foreign Affiliates Trade
Statistics
Direct Investments Abroad by Foreign
Affiliates
Other Economic Data of Foreign
Affiliates
Quarterly
Quarterly
NA
NA
Monthly
Quarterly
Quarterly
Quarterly
Quarterly
Monthly
BoA
BoA
BoA
BoA
BoA
Annual
Annual
Annual
Annual
Quarterly
Quarterly
Quarterly
NA
NA
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Quarterly
Annual
Annual/Partial
coverage
NA
Annual
BoA
BoA
BoA
BoA
BoA
BoA
BoA
BoA
BoA and
INSTAT
BoA and
INSTAT
BoA and
INSTAT
Annual
18.6 Agricultural Statistics
During the period May 2014 – August 2014 the following activities related to agricultural
statistics can be reported:
The work on finalizing the Agricultural Census has continued in collaboration with the
Ministry of Agriculture, Rural Development and Water Administration (herein after
MARDWA). The work has concentrated on analyzing different databases and sources to
make possible the identification of possible errors coming from field work or identification
on main reasons for the discrepancies in previous administrative data with data coming from
the Agricultural Census. The work was in progress at the end of reporting period.
For the improvement of data and data quality INSTAT has started collecting prices in
agriculture on a monthly basis. This is the first step for creating the Economic Accounts in
Agriculture in accordance with EU standards and methodology comparable with other
countries.
Due to discrepancies coming from the annual survey and Agricultural Census related to
previous administrative data INSTAT in collaboration with MARDWA, is working to
finalize the review of the Decision of Council of Ministers No. 116 on Agricultural Statistics.
The reviews were sent from MARDWA to the line Ministries for comments and it is planned
within September 2014 to be introduced to the Council of Ministers.
INSTAT conducted in March 2014 the annual survey in Agriculture. The data are being
elaborated and are planned to be published in INSTAT website within beginning of
September 2014.
The environmental sector is one of the developing sectors. INSTAT, with the support of
technical assistance through IPA 2011, has completed in December 2013 a pilot for urban
and industrial waste in the country. This pilot is being used as a guideline for defining the
methodology and identifying the needs for realizing such a survey at national level, which is
planned for September 2014. Though this survey the data collected for the urban and
industrial waste, as well as other missing information will be more in line with EU
requirements and methodology as well as more detailed for producing environmental
statistics.
18.7 Registers
The following activities focusing on statistical business register can be reported for the period
1 May 2014-31 August 2014:
 Update and quality improvement of Business Registers, Enterprise Register and Local
Unit Register, according to EU standards based on deadline defined by Official
Statistic’s Programme 2012-2016;
 Business registers with double classification of the economic activities according to
the existing nomenclature NVE Rev. 1.1 and the new one NVE Rev. 2.;
Implementation on business register double classification of the economic activities:
nomenclature NVE Rev. 1.1 and the new one NVE Rev. 2;
 Implementation of double classification to newly created enterprises and in all
relevant changes in economic surveys. Double classification for main and secondary
activities; Control of consistence between description by words of economic activity
as enterprises declared and NACE Rev2 4-digit level;
 Quality reports on business registers were prepared based on European Statistics
standards.
18.8 Classifications
NACE (rev.2) classification was approved by Prime Minister Decision, No. 220, dated
28.05.2014. The new classification is implemented in short term statistics. The data are
published since 2005 time series in new NACE (Classification of economic activities, NACE
Rev.2). INSTAT has organised training for the staff, related to application of new NACE in
Albania, changes in structure of both classifications, links with the other classifications, etc.
A strategy plan is prepared for organizing training with the other administrative institution, as
National Registration Centre, Tax Authority, in central and regional level. The training will
start in September 2014 in prefecture level. An automatic data coding system is in place at
INSTAT official website, it can be accessed at: http://www.instat.gov.al/methodology.
CHAPTER 19: SOCIAL POLICY AND EMPLOYMENT
Key achievements
The Albanian Government approved a new Pension Policy. A series of sublegal acts were
adopted in the field of health insurance, and the Compulsory Healthcare Insurance Fund
benefits from an electronic registry. During the reporting period, the MoSWaY carried out
vocational and professional trainings for vulnerable groups, with significant results. The
National Strategy on Gender Equality 2011 – 2015 has focused on increased interinstitutional cooperation and planned budget.
19.1 Labour Legislation
To address the implementation of short–term planned legal measures the NPEI 2014 – 2020,
suggestions and recommendations from line ministries in the framework of amendments to
the Labour Code were reflected. The amended Labour Code was uploaded in the on-line
system to go through further stages of its approval, which according to the NPEI 2014 – 2020
will be adopted in the 3Q 2014.
19.2 Requirements of Health and Safety at Work
A series of draft legal acts to the implementation of Law No 10237 of 18.02.2010 “On safety
and health in the workplace” were finalized to be approximated following Council Directives
as can be found in Annex 19.1.
In order to implement the National Plan for European Integration 2014 – 2020, the Ministry
of Social Welfare and Youth (MoSWaY) is finalizing the draft of National Occupational
Safety and Health Policy Document 2014-2020, based on the National Action Plan 20142020 of the Albanian Employment and Skills Strategy.
During the reporting period the General Labour Inspectorate undertook a series of actions.
Details can be found in Annex 19.2.
The OSH Campaign on “Safety in the workplace” was launched via various media, TV spot,
newspaper advertisement, seminars in Tirana and Saranda for employers, specialized
inspection visits, improvement of the Labour Inspectorate web site, and the hot line for
complains and advice.
In the framework of the IPA 2010 project, and to set up a network of Labour Inspectorates in
South-Eastern Europe (SEE) region, the Albanian State Inspectorate of Labour and Social
Services have signed up several bilateral cooperation agreements, organized on 20 June 2014
a regional seminar on Labour Inspections in Tirana. The initiative also aims to promote the
establishment of bilateral agreements between the Albanian Labour Inspectorate and other
national Labour Inspectorates. High-level public administration representatives of various
Labour Inspectorates from the SEE region, a representative of the International Labour Office
(ILO) Budapest and a representative of the European Agency for Safety and Health at Work
(EU OSHA) were in attendance to discuss on issues of cooperation and coordination of
OSHA promotion activities. Contacts were negotiated with the Labour Inspectorates of
Bulgaria, Kosovo, Macedonia, Montenegro and Romania.
19.3 Social Dialogue
The National Labour Council (NLC) held a meeting on 16 June 2014. The topics included
review and approval of the draft law 10165, dated 15.10.2009, "On the determination of the
age of the retirement for mining workers”, the pension reform, and the fund National
Employment and Skills Development. The same set of issues was discussed by the Tripartite
Commission on Wages, Pensions, Social Protection and Employment, and Vocational
Education Training during its meetings in June 2014.
On 20 – 22 May 2014 the MoSWaY, in cooperation with the ILO, organized a two day
tripartite seminar on the "Improvement of the system effectiveness for labour disputes
settlement in Albania". Mediators of the representatives of the Regional Employment Offices,
the State Offices of Reconciliation, representatives of the MoSWaY, trade unions and
employers' organizations were in attendance.
In July 2014, the MoSWaY, in collaboration with the ILO, organized a national conference on
"Sustainable wage policy in Albania". The event was co-chaired by the Director of ILO office
for central and Eastern Europe in Budapest (DWT /CO-Budapest), and labour policy expert
for the Integrated Labour Market, Labour Relations and Conditions (INWORK-ILO).
19.4 Employment and European Social Fund
For information on employment and the European Social Fund please consult the chapter on
Economic Criteria: Employment Policy.
19.4.1 Employment Policies of Youth
In implementation of the National Plan for European Integration 2014 – 2020, the MoSWaY
is preparing the National Action Plan for Youth (NAPY) 2014 – 2020. The goal of the NAPY
2014 – 2020 is to increase opportunities in education, employment, culture, health, as well as
to ensure full participation of young people in society and decision-making. On 6 – 28 May
2014, the MoSWaY organised a series of meetings throughout Albania in order to include
interest groups, such as youth, youth-organisations in the consultation process of drafting the
NAPY 2014 – 2020. A working group was set up for the preparation of the NAPY 2014 –
2020 to include representatives from line ministries, other institutions and civil society. The
working group is regulated by Order of the Prime Minister No 183 of 23.06.2014 “On the
preparation and compilation of the National Strategy for Development and Integration 2014 –
2020”.
The Decision of Council of Ministers No 377 of 11.06.2014 “On the establishment,
organization and functioning of the National Youth Service” was published in the Official
Journal on 19 June 2014. The National Youth Service (NYS) is organised and functions
through the General Directorate at national level, and the latter’s Regional Youth Centres at a
regional level. 12 Regional Youth Centres are to be opened during the 2014 – 2015 period in
different cities. The Regional Youth Centres will offer services to youth in the corresponding
region, and developing cultural, social, and sporting events for youth, in agreement with the
policies and programmes approved by the MoSWaY.
During the reporting period, a series of initiative were taken to raise public awareness on
youth employment. Further details can be found in Annex 19.3.
19.5 Social Exclusion
19.5.1 Roma
The MoSWaY begun the drafting an action plan with concrete measures in each area,
focusing and addressing the recommendations of the Seminar of February 2014, held in
Tirana. This Action Plan will be in coherence with new Policy Document of Social Inclusion
2014-2020.
The MoSWaY has taken concrete initiatives to the inclusion of unemployed Roma
jobseekers, which can be listed as follows:
 During the reporting period 91 unemployed Roma were trained in various national
vocational training courses. The courses had duration of 2-6 months;
 9,469 unemployed Roma and Egyptian jobseekers registered in employment offices.
They benefited from provided guidance, as well as professional trainings in the
Regional Public Vocational Training Centres. 50% of registered persons were female;
 3,078 unemployed Roma and Egyptian jobseekers were employed by employment
promotion programmes.
In order to increase cooperation among various local government institutions, during the
reporting period the following steps were taken:
 The MoSWaY organised 14 self-help activities and informative sessions in Vlora,
Berati, and Korça, involving community members and experts on education, housing,
employment, social welfare, and legal aid. The activities provided answers and
guidance to over 200 Roma and Egyptian communities,
 The MoSWaY prepared a guidebook on participatory planning and budgeting. The
same framework, the institution organized trainings targeting 60 local government
officials in three regions, and prepared three inter-local Roma and Egyptian
Community Development Plans 2014-2020. Six Roma and Egyptian local experts,
three females, were also part of the working groups.
 6 infrastructure interventions were identified by Roma and Egyptian Community
Counselling Forums and agreed to receive co-funding, while local government units
are being completed in Berati, Tirana, and Pogradeci. Construction companies have
employed several skilled Roma and Egyptian workers during works. 3 infrastructure
projects, road rehabilitations in Pogradeci, Berati, and Vlora are being negotiated with
respective local authorities.
19.5.2 People with Disabilities
The MoSWaY completed an analysis assessing the disability assistance system in Albania,
including evaluation procedures and criteria to benefit from the current scheme of disability.
In the upcoming months work will continue to redesign disability eligibility criteria based on
international standards.
Following the revision and evaluation of the existing legislation on disability and an
extensive consultation process, the MoSWaY and the pertaining inter-ministerial group,
drafted a law “On the inclusion and accessibility of people with disabilities (PwD)”.
Representatives of central and local government and civil society organizations (CSOs) took
part in the consultation process, which also benefitted from UNDP technical assistance. The
draft law supports accessibility to overcome communicative, intellectual, physical and social
barriers. The MoSWaY acted as coordinator of the working group.
In June 2014, around 70 state institutions, belonging to the central and local governments,
were inspected in relation to their accessibility. Approximate evaluations of costs and
measures to implement accessibility means were sent to line ministries, in the framework of
their strategic and budgetary planning. At present, line ministries and various central
institutions are planning their respective 2015 investment budgets, with special focus on
better accessibility for PwD.
During the reporting period, an inter-ministerial working group began work on future
financial support schemes for people in wheelchairs in Albania. Regional models, such as the
Health Insurance Fund of Montenegro and related practical aspects of subsidising, were used
as benchmarks during round tables and discussions. Following, two meetings were held at
technical and policy levels in order to realize the abovementioned commitment.
19.5.3 Children
The State Agency for the Protection of Children’s Rights (SAPCR), in collaboration with the
MoSWaY and various CSOs, organized the following events to raise awareness on children’s
rights:
 On 27 May 2014, the Parliamentary Commission on Labour, Social Affairs and
Health viewed a series of presentation reports from approximately 30 children, in the
framework of the Universal Periodic Review mechanism.
 On 1 June 2014, the National History Museum organized an event for approximately
300 disadvantaged children from different cities.
 During the 27 May – 4 June 2014 period, the SAPCR launched a communications
campaign on social media concerning children's rights. A Facebook page was created
to promote children’s rights, and celebrations in view of 1 June 2014, the National
Children’s Day. Promotional messages were delivered to 100,000-150,000 Facebook
users.
In the framework of the social services reforms, on 19 May 2014, the MoSWaY in
collaboration with the Swiss Cooperation Office in Albania, ARSIS – the social Organization
for the Support of Youth, and the GFK Albania, the UNICEF and the Save the Children
organisation, presented the findings of the first national study on street children. The resulting
data will serve policy makers while tackling issues of street children.
During the reporting period, the MoSWaY and the Ministry of Internal Affairs, in cooperation
with the General Directorate of the Police, central and local institutions and several NGOs
launched the “Help for disadvantaged families and street children” initiative. The latter aims
to protect children from all forms of abuse, exploitation and neglect, through a coordinated
cross-sectorial intervention, and a comprehensive integrated approach.
The MoSWaY in collaboration with CSOs drafted a procedural guideline, on situation
management when dealing with street children. After a consultation process with
representatives from central, local institutions and civil society, on 15 May 2014, work started
for the implementation of the abovementioned initiative. Field teams are currently focused on
three municipal units in Tirana, identified as hot spots, due to the high concentration of street
children. The abovementioned field teams are the result of interagency cooperation
agreements between the SAPCR, the Child Protection Units (CPUs) that are part of municipal
units in Tirana, CSOs, and social workers. All parties involved in the initiative were trained
thanks to support from the OSCE.
A Child Protection Protocol was drafted, and a respective inter-ministerial working group was
established. The protocol will serve as a mandatory multiagency tool to devise a
multidisciplinary management headed by CPUs, and other professionals. The
institutionalization of child protection will ensure a standardized approach in cases of abuse,
or risk of such. The protocol will be approved in September 2014.
19.6 Social Security
19.6.1 Social Protection
To address the implementation of the NPEI 2014 – 2020, Law No 90 of 17.07.2014 “On
some amendments and addenda to Law No 10171 of 22.10.2009 “On regulated professions in
the Republic of Albania” was adopted and published in the Official Journal No 126 of
11.08.2014.
A new financial aid scheme, compromised of a digitalized system and a unified scoring
formula for families and individuals, is being piloted. A related information campaign was
developed and implemented in three pilot regions: Tirana, Elbasani, and Durrësi.
At present, the MoSWaY is drafting three guidelines on the indexation of disability benefit
based on the consumer price index.
The MoSWaY is coordinating the formalization of the Albanian sign language. In this
framework, the MoSWaY is considering domestic legislation and the UN Convention on the
Rights of Persons with Disabilities. The MoSWaY also sent recommendations to central
institutions to guarantee interpretation services in the Albanian sign language.
The reform of social care services is under way and with the assistance and expertise of
UNICEF and the Swiss Cooperation office in Albania, the MoSWaY is designing the new
model of providing social care and protection for vulnerable groups.
Meanwhile, efforts are being made to deinstitutionalize certain social care services. In the
framework of the Italian-Albanian Debt for Development Swap Programme, implemented
with the support of the Italian government, the MoSWaY is promoting community centres for
orphan children and the elderly in Shkodra, as well as PwD in Tirana. Furthermore, the
MoSWaY has arranged vocational training courses for persons with mental challenges.
19.6.2 Social Security
On 31 July 2014, the Albanian Government approved a new Pension Policy. The latter came
as a result of the work of an inter-ministerial working group, set up by Order of Prime
Minister (PM) No. 7, dated 17.1.2014, "On the establishment of an inter-institutional working
group to coordinate and supervise preparation of the pension reforming process”. The
Pension Policy was widely discussed with stakeholders, CSOs, and experts from the World
Bank and the Social Insurance Institute.
19.6.3 Health Insurance
During the reporting period the following sublegal acts were adopted:
 Decision of the Council of Ministers No 307 of 21.05.2014 “On the registration and
identification of persons insured by the compulsory health care insurance” was
published in the Official Journal No 80 of 4.06.2014;
 Decision of the Council of Ministers No 308 of 21.05.2014 “On the approval of the
health services package to be financed by the Compulsory Health Care Insurance
Fund” was published in the Official Journal No 80 of 4.06.2014;
 Decision of the Council of Ministers No 306 of 21.05.2014 “On some addenda and
amendments to Decision of Council of Ministers No 1 of 8.01.2014 “On hospital
health services financed by the Compulsory Health Care Insurance Fund”, was
published in the Official Journal No 81 of 5.06.2014;
 Decision of the Administrative Council No 88 of 9.07.2014 “On the approval of rules,
criteria and ways of drafting the National Register of Packages financed by the
Compulsory Health Care Insurance Fund”;
 Decision of the Administrative Council No 89 of 9.07.2014 “On the approval of
criteria to be met by private health institutions in order to sign the contract with the
Compulsory Health Care Insurance Fund and the procedures for making these
contracts”;
 Decision of the Administrative Council No 90 of 9.07.2014 “On the approval of type
contracts on financing of health services packages offered by private health
institutions”.
The Compulsory Healthcare Insurance Fund established an electronic registry, enabling
electronic population registration via family doctors. The data cleaning and validation
processes were completed and the electronic registry of healthcare insurance was set. A
database of four million national residents and non-residents was created, and national IDs
for 2,586,651 inhabitants were registered.
19.7 Anti-discrimination and equal opportunities
19.7.1. Equal Treatment of Employed Foreign Workers
Experts at the Migration Counters were trained to better implement the strategy for the
reintegration of Albanian returnees and the new Law No 108/2013 of 28.03.2013 “On
foreigners.” A total of 80 employees, from 38 regional and local offices of the National
Employment Service benefitted from training. Trainings were conducted in collaboration
with the International Organization for Migration in Tirana.
During the May – August 2014 period, the MoSWaY included labour migration policies in
the new draft Strategy for Skills and Employment 2014 – 2020 and its action plan.
On 3 – 4 June 2014 representatives of the MoSWaY took part in the presentation of the drafts
of two regional studies on labour mobility, an assessment of the potential for regional actions,
and a proposed regional plan to promote labour mobility and social economy development in
Southeast Europe. The meeting was held in Sarajevo, Bosnia-Herzegovina.
At present, the MoSWaY is working on the report for the second semester to the Strategy for
Reintegration of Albanian Citizens 2010 – 2015.
19.7.2 Equal Opportunities
In the framework of the NPEI 2014 – 2020 and the National Strategy on Gender Equality,
Reduction of Gender-Based Violence and Domestic Violence 2011 – 2015, implementation of
the action plan tackled the following areas:
 enhancement of the cooperation of central and local agencies dealing with gender
related issues;
 intensification of efforts and tangible financial support for gender related issues in the
Medium Term Budget Planning;
 increased cooperation among local government units in the context of the electronic
monitoring system in cases of domestic violence.
During the reporting period, in order to increase the capacities of employees dealing with
gender related issues, at central and local level government units, the MoSWaY carried out
the following activities:
 On 28 May 2014, a total of 18 civil servants working in different ministries attended
“The basic concepts of gender and development of legislation in this area” training.
The MoSWaY, in cooperation with the Department of Public Administration and UN
WOMEN, organized the event;
 On 3 July 2014, in the framework of the fourth national report on the Convention on
the Elimination of all Forms of Discrimination against Women (CEDAW) the


MoSWaY held a meeting with employees of different municipalities that deal with
gender related issues. The purpose of this meeting was to gather information on
achievements, difficulties, challenges and future steps in addressing gender equality in
Albania;
On 9 – 13 June 2014, UNFPA and UN WOMEN invited the Committee on the
Elimination of Discrimination Against Women at the drafting process of the fourth
national report on the CEDAW. Meetings were held with the Minister of the MoSWaY,
the Ministry of Foreign Affairs, members of the National Council on Gender Equality
(NCGE), representatives of the Women Members of Parliament Alliance,
representatives of the Ombudsman and the Commissioner for Protection from
Discrimination (CPD), and various NGOs;
In July 2014, the monitoring process of the National Strategy on Gender Equality,
Reduction of Gender-Based Violence and Domestic Violence 2011 – 2015 started.
The monitoring will focus on the first semester of 2014, and information was
collected through ministries and municipalities.
On 3 – 5 June 2014, a three-day training on “Gender Budgeting in the Medium-Term Budget
Programmed” was held in Durrësi. A total of 25 employees in ministerial budget planning
departments were trained. The training was carried out in the framework of Decision of
Council of Ministers No 465 of 16.07.2012 “On gender mainstreaming in the medium term
budget program”, in collaboration with the Ministry of Finance and UN WOMEN.
On 1 July 2014, the Centre for Gathering, Processing and Marketing of Medicinal Forest
Plants and Fruits was inaugurated in Burreli. The UNDP office in Albania supported the
establishment of this centre. Women and girls in the area that benefitted from economic aid
were employed in the facility.
On 1 July 2014, the MoSWaY in cooperation with the Municipality of Burrel, and support by
the UNDP Office in Albania and the Swedish government, launched the electronic
monitoring system to address cases of domestic violence.
19.7.3. Antidiscrimination
On 17 May 2014, in the framework of the Day against Homophobia and Transphobia, a series
of activities were organized by several NGOs. Representatives from state institutions and
international organizations were also in attendance. On 12 – 18 May 2014, during the Week
of Diversity, social and entertainment activities, film screenings, exhibitions and round tables,
a book fair on public awareness, and a final Pride Parade took place.
On 23 July 2014, the MoSWaY organized a meeting with NGOs dealing with LGBTQ issues,
to plan on further cooperation in order to promote the rights of the abovementioned group.
During the May – August 2014 period, the following anti-discrimination activities took place:
 On 9.05.2014 the Commissioner took part in a consultative roundtable organized by
the State Police and UN Women with national and international partners and civil
society on the necessity to make the work environment safe from bullying and





discrimination on grounds of sex;
On 9.05.2014, the Commissioner published an article in the newspaper “Shqip”, on
the topic “Integration in education of children with disabilities - Philosophy and legal
obligation”;
On 12.05.2014, the CPD organized the “Equal opportunities in the economic sector”
seminar with the support of UN Women, the Union of Chambers of Commerce and
Industry in Albania, and the Young Women Christian Association of Albania (YWCA).
This seminar focused on effective mechanisms of prevention and reporting systems in
relation to gender discrimination in the economic sector and increased cooperation
between associations, business operators, and the CPD on the measures for protection
from discrimination;
On 30.06.2014, the CPD in partnership with the Albanian Helsinki Committee (AHC)
held the “Together for the protection and promotion of the rights of discriminated
persons” conference, in the framework of the similarly titled project. The Swiss
Cooperation Office in Albania and Civil Rights Defenders supports the project
financially;
On 28 – 30.07.2014, the Commissioner participated as a lecturer at Summer School
“Academy of Minority Rights” organized by the Albanian Human Rights Group with
the support of the German Embassy;
In the framework of the PAMECA IV mission, a calendar of training activities for
police workforces on Law No 10221 of 4.02.2010 “On the protection from
discrimination” and the Module on Equality and Anti-Discrimination in the
educational curricula of the Centre for Police Formation was completed. The latter
trainings will be held during the September – December 2014 period.
On 18.06.2014, the CPD suggested the following legislative recommendations on the
Electoral Code:
 clarify the grounds of discrimination as provided in Law No 10221 of 4.02.2010 “On
the Protection from Discrimination”, in Article 3, Paragraph 3;
 include the CPD, as an institution which has the right to appoint observers;
 reformulate Article 67/6 of the Electoral Code;
 specify the designation of people with disabilities in Article 80, paragraph 2, of the
Electoral Code;
 find a legal solution through specific adjustments to the Electoral Code, so that to
guarantee the right to vote for people who cannot leave their houses.
In order to improve the legislation for the elimination of gender discrimination, the CPD
drafted recommendations for amendments to Law No 33 of 21.03.2012 “On the registration
of real estate”, and Law No 9355 of 10.03.2005 “On assistance and social services”.
During the May – August 2014, the CPD handled a total of 129 cases, mainly based on race,
health condition, disability and political beliefs. 116 considered cases were complaints, out of
which 109 were complaints from individuals, and 75 from organizations with a legitimate
interest. Another 13 cases were launched ex-officio. The geographic area where complaints
derived from was wider during the reporting period as compared to the previous reporting
period. Complaints were mainly registered in municipalities and communes where the CPD
has organized awareness activities. During the May – August 2014 period, the CPD issued 63
decisions, out of which 53 on complaints, and ten ex-officio cases. More specifically, the CPD
decided on five discrimination cases, 38 non-discrimination cases, and two nondiscrimination and recommendation cases.
During the reporting period, proceedings for enforcement of fines imposed by the CPD
started. The Administrative Court in Tirana issued the first order of execution relating to a
CPD fine decision.
Conclusions
The MoSWaY continued drafting the Labour Code. The MoSWaY also drafted a series of
legal acts pursuant to Law No 10237 of 18.02.2010 “On safety and health in the workplace”.
The CPD engaged in the protection against all kinds of discrimination, additionally imposing
legal penalties. Enhanced professional capacities were at the focus of institutions and entities
dealing with social policies and employment.
CHAPTER 20: ENTERPRISE AND INDUSTRIAL POLICY
Key achievements
Funds were allocated to produce a media campaign to promote development of tourism and
attract foreign investments. The inward processing support package is generating the first
results increasing production and employment. The National Plan for Women Entrepreneurs
2014 – 2020 was approved. Several policy documents are being prepared mapping the future
actions of Albanian government in the enterprise and industrial sector. AIDA continued to
actively support the development of Albanian enterprises.
20.1 Industrial policy
The draft Strategy on the Development of the Non-food Industries 2014 – 2020 is being
prepared and scheduled to be approved in 2014.
Concerning tourism policies, the Law No 67/2014 of 3.07.2014 “On some amendments and
addenda to Law No 10186 of 5.11.2009 “On the regulation of property on state owned land in
the tourism oriented areas”, was adopted. The amendments aim to improve the transfer of
construction plots ownership from the state to the tourism operator, in the areas set apart for
tourism development and the duties of the Agency for Legalization of Urban Informal Zones
and Buildings (ALUIZNI).
Two consultation rounds were organised with tourism operators/ associations and other
public bodies to prepare the draft Law on Tourism. The Ministry of Urban Development and
Tourism and Ministry of Economic Development, Trade and Entrepreneurship are
cooperating to harmonise the draft Law on Tourism with the draft Law on Concessions and
Foreign Investments.
The draft Strategy on Tourism Development 2014 – 2020 is prepared and will be submitted
for approval to the Council of Ministers within September 2014.
For the promotion of tourism and economic development in Albania, Decision of Council of
Ministers No 290 of 14.05.2014 “On the approval of budgetary funding and joint report of
the Ministry of Urban Development and Tourism, Ministry of Economic Development, Trade
and Entrepreneurship and Ministry of Finances to set up the multimedia platform ‘Branding
Albania”, was approved. According to the Decision, 540,000 Euro were allocated to produce
a media campaign to promote development of tourism and attract foreign investments.
20.2 Privatisation and restructuring
The Ministry of Economic Development, Trade and Entrepreneurship has started to prepare
the privatisation of seven former state owned assets.
The privatisation plan for 2014 of state shares in 10 Joint Stock Companies, in which the
state owns less than 50% of the shares55, includes the following enterprises:
No
1
2
3
4
5
6
7
8
9
10
Company name
Industrialimpeks S.A
Production of Construction
Materials S.A
Arteksportimport S.A
Refrigerator S.A
Dinamo Plant S.A
Tarabosh S.A
Mill S.A
Euromag 2000 S.A
Bread S.A.
Mika S.A
TOTAL
Location
Tirana
Elbasani
Tirana
Durrësi
Tirana
Shkodra
Tirana
Durrësi
Tirana
Korça
Base capital
(in Euro)
49,286
782,857
697,857
1,638,750
1,179,043
251,343
8,640,414
321,071
1,707,143
2,209,404
17,477,168
State
State capital
share (in
(in Euro)
%)
49
24,150
49
49
49
12.23
42.80
7.3
49
51
37.98
383,600
341,950
802,988
144,197
107,575
630,750
157,325
2,416,429
839,132
5,848,095
Source: Ministry of Economic Development, Trade and Entrepreneurship
20.3 Business environment & SME policies
The National Plan for Women Entrepreneurs 2014 – 2020 was approved by the Order of the
Minister of Economic Development, Trade and Entrepreneurship No 339 of 19.06.2014. The
Action Plan was launched at an event organised on 20.07.2014. Moreover, the working group
for the coordination and monitoring of this Action Plan was set-up on the basis of the Order
of the Minister of Economic Development, Trade and Entrepreneurship No 340 of
19.06.2014.
The following policy documents were prepared and submitted to the Council of Ministers for
approval:
 Draft Strategy for Business Development and Investment 2014 – 2020;
 Draft National Action Plan for the Implementation of SEE 2020.
The draft Law “On the ratification of the Agreement between the Republic of Albania and the
European Union, on the participation of the Republic of Albania in the Framework
Programme ‘Horizon 2020 – Research and Innovation Programme” was endorsed by the
Council of Ministers on 30.07.2014 and submitted for adoption to the Parliament. For further
information please see Chapter 25: Science and Research.
The draft Decision of Council of Ministers “On the approval of the National Action Plan for
the improvement of the Doing Business Indicators” was submitted for approval to the
Council of Ministers. The National Action Plan was prepared with the assistance of the
International Financial Corporation (IFC) and in close consultation with representatives of
55
Reported under the fist contribution of the Albanian government to the 2014 EC Progress Report.
the private sector. A detailed report on measures related to Doing Business indicators, taken
by the Albanian Government during the period 1 June 2013 – 31 May 2014 was prepared and
submitted to World Bank’s Doing Business team.
The National Economic Council, established under the Law 57/2014 of 5.06.2014 “On the set
up and functioning of the National Economic Council”, as a single advice/ consultation
structure/ forum of consultation between the Government, national and foreign owned
companies, financial organisations and academia, has held so far eight meetings. Many
reform and policies affecting economic development of the country were examined in these
meetings such as: draft National Action Plan for the improvement of the Doing Business
Indicators, inward processing industry support package, Single Window in customs, the new
Customs Code, the process of European Integration, etc.
Ministry of Economic Development, Trade and Entrepreneurship, in cooperation with other
public institutions, prepared a package of 46 supporting measures to active inward processing
industry (façon/apparel), reflecting the demands and suggestions of these businesses. 36 of
these measures are implemented or being implemented.
Under this package, AIDA established a ‘One stop shop’ to respond to the needs of inward
processing entities. The database of the façon companies was established and a door to door
campaign has started to register these companies. To date, 206 companies were identified and
contacted and information on these companies is collected/ updated.
In the first half of 2014, compared with the same period of 2013, the implemented measures
have contributed to the following results:
 exports were increased by 87 million USD (approximately 66 million Euro);
 30 new inward processing companies were registered;
 the number of employees was increased by 11%, or 3,512 new jobs;
 benefits from the employment and training fund were increased by 60%, up to 224
million ALL;
 volume of contracts in the inward processing industry increased by 31%.
The credit scheme for SMEs in the framework of the Italian – Albanian Programme is being
implemented smoothly. In the period 1 May – 31 July 2014, four projects initiated by
Albanian SMEs were supported in the following sectors: food processing, production of
security doors and accessories, production of prefabricated construction elements. In total, the
support for these projects was 1,278,883 Euro. SMEs operating outside the axis Tirana –
Durrësi were favoured, receiving approximately 75% of the funding of these projects, while
the SMEs registered in Tirana and Durrësi received the remaining 25%.
Concerning the Competitiveness Fund, the Decision of Council of Ministers No 360 of
11.06.2014 “On some amendments to Decision of Council of Ministers No 419 of 15.05.2013
“On the set up of the Albanian Competitiveness Fund” was approved. According to the
amendments, the Competitiveness Fund will provide financial assistance to micro, small and
medium enterprises up to 1,400,000 ALL (approximately 10,000 Euro), but no more than 70%
acceptable costs. According to the Decision, in 2014, the Fund will administrate 20,000,000
ALL (approximately 143,000 Euro) and in 2015, 28,000,000 ALL (Approximately 200,000
Euro) will be allocated to the Fund. By 31 July 2014, 12 applications were approved valued
at 12.8 million ALL (approximately 92,000 Euro).
Regarding the Creative Economy Fund, six applications were approved until 31 July 2014,
valued at 2.9 million ALL (approximately 21,000 Euro).
Under the Innovation Fund, during the period 1 May – 31 July 2014, 18 applications were
approved valued at 6.2 million ALL (approximately 44,000 Euro).
Albanian Investment Development Agency (AIDA) has initiated a media campaign to
promote funds it manages. Activities were carried out in districts of Korça and Gjirokastra.
The campaign will continue in the districts of Shkodra and Kukësi.
AIDA has conducted several meetings with artisan associations and handcrafters to explain
the benefits and encourage them to register their activity at National Registration Centre
(NRC). As result, 15 female handcrafters registered their activity at the NRC.
A delivery information campaign though different means (i.e. telephone) has started, creating
the opportunity to address the claims/complaints/problems as well as to introduce the funds
available at AIDA. In the framework of this campaign around 150 subjects have been
contacted.
Additional activities carried out by AIDA include:
i)
“TUREHO” Mobile Exhibition. AIDA was part of this ambulant fair aiming to
promote ‘Made in Albania’ products. AIDA supported 18 entrepreneurs coming from
various cities of the country. The main goal was to introduce the funds and services
that the Agency’s offers to the support of Albanian entrepreneurs.
ii)
Promoting the garment sector with the support of USAID. A brochure containing 15
company profiles was prepared while efforts are consistently being made to increase
the number of the companies.
iii)
Updating the Albanian Exporting Enterprises Database. The database is regularly
updated and approximately 150 new exporting companies operating in various sectors
were added.
CHAPTER 21: TRANS EUROPEAN NETWORKS
Key achievements
Additional funding was procured for the construction of national/ secondary road network.
Construction of major roads and improvement of port facilities are continuing. The public
investments to the maintenance of road network increased to 13.5% of 2014 total public
investments. Measures are taken for the smooth implementation of the TAP project. The
Ionian Adriatic Pipeline project is proceeding as well.
21.1 Trans-European Transport Networks
Concerning the financing of road construction, the following legal acts were approved:
 Law No 46/2014 of 24.04.2014 “On the ratification of the loan agreement between
the Republic of Albania and the Saudi Fund for Development for the financing of the
construction of the road Tirana – Elbasani – Qukësi – Qafë e Plloçës”. According to
the Agreement, the Albanian government is going to borrow some 93,750,000 Saudi
Arabian riyals (approximately 19 million Euro) at 2% interest, to be paid back in 25
years, including a 5 year grace period;
 Law No 109/2014 of 31.07.2014 “On the ratification of the financial contract between
the Republic of Albania and the European Investment Bank for the Vlora bypass”.
According to the contract, Albanian will borrow 18 million Euro from the European
Investment Bank for the construction of the Vlora bypass;
 Law No 111/2014 of 31.07.2014 “On the ratification of the grant agreement between
the Council of Ministers of the Republic of Albania represented by the Ministry of
Finance and the European Bank for Reconstruction and Development (EBRD) as
administrator of grant funds allocated by different governments under the Western
Balkans Investment Framework (WBIF) and EBRD under the Shareholder Special
Fund (SSF) for the supervision of the secondary and local roads project in Albania”.
Under this agreement, the Government of Albanian will receive 1.5 million Euro as a
grant for the supervision of the secondary and local roads project;
 Law No 113/2014 of 31.07.2014 “On the ratification of amending documents to loan
agreement between the Republic of Albania and the European Bank for
Reconstruction and Development (EBRD) for the municipal roads of Tirana
development project”. According to the Agreement, the closing date of the loan that
EBRD has extended to the Municipality of Tirana for the construction of the
municipal roads, will be extended from 28.02.2014 till 31.03.2016.
The Albanian Institute of Transport, the institution in charge to update the Albanian National
Transport Plan (ANTP), prepared the annual review and submitted the detailed 2013 Annual
Report on 10.07.2014 regarding the update of the ANTP.
In road infrastructure/ maintenance, the 2014 budget was revised increasing the public
investments to the maintenance of road network (under ARA administration) up to 13.5% of
2014 total public investments.
Decision of Council of Ministers No 233 of 23.04.2014 “On the approval in principle of the
Financial Advisory Services Agreement, between the Council of Ministers of the Republic of
Albania and the International Financial Corporation (IFC) on the implementation and
participation of the private sector in Miloti – Morina motorway” was approved. Based on this
Decision, the Minister of Transport and Infrastructure, on behalf of the Albanian government,
signed the Agreement on 9.05.2014. The Group of Experts, tasked to prepare the feasibility
study for the maintenance of this motorway, was established based on the Order of the
Minister of Transport and Infrastructure No 111 of 25.02.2014 “On the set up of the
commission for the preparatory activities for the concession/ public – private partnership to
maintain and operate the Miloti – Morina motorway”, and will be supported by the IFC
advisor.
The draft Decision of Council of Ministers “On the technical rules (standards) on road design
and construction” is being discussed with the Albanian Consultant Engineers Association,
Albanian Constructors Association and ARA. Currently, Ministry of Transport and
Infrastructure is expecting the final comments from ARA to start the legal procedures for the
approval of this act by the Council of Ministers.
Infrastructure development
North-South Corridor
 The construction of Fieri Bypass, 22 km long (with four lanes, construction cost about
40 million Euro) which links the two motorways Lushnja – Fieri and Levani – Vlora,
as well as the South axis Levani – Tepelena, is on-going;
 The construction for the East Ring Road of Shkodra city, part of the Shkodra – Hani i
Hotit road segment, started in April 2014 and is foreseen to finish in September 2014,
financed under the Albanian state budget;
 The construction of the road segment Damësi – Tepelena, 32 km long (about 28
million Euro) co-financed by EBRD & EIB and Albanian Government, is ongoing
and is foreseen to be concluded in October 2014.
Central – South Axis
 In the Tirana – Elbasani road segment, a very important part of the road axis Tirana –
Elbasani – Berati – Tepelena and the main connection to the Corridor VIII, after
completion of the tunnels, the construction works to complete the entire road segment,
are on-going and foreseen to be finalised in November 2014;
 Concerning the Tirana Bypass, the second phase of the project, the Detailed
Designing is scheduled to start in October 2014. The process will be carried out
according to EBRD/WBIF procedures.
The development of sea ports is based on the National Plan of Transport, and the master plans
of respective ports. The following activities are being carried out:
 In the Port of Durrësi, the Berth No 10, in the Eastern part of the Port, is under
construction, financed with 8.5 million Euro from Durrësi Port Authority (DPA). The
channel and basin of the Port of Durrësi are being dredged and specialised terminals
for the operation of bulk cargo are under construction. Total cost of the project is 16



million Euro financed by the Durrësi Port Authority (DPA). The berths No 7 and 8 are
under rehabilitation, as part of the project worth 40 million Euro, financed by
European Investment Bank, EBRD and Albanian government;
In the Port of Vlora, the contract for the rehabilitation of port infrastructure and
superstructure, the construction of the new berth for the operation of Ro-Ro ships and
cargo berth (financed by the Italian Cooperation with a total of 15.3 million Euro) was
signed on 17.04.2014 and the construction works will start immediately upon the
approval by the Italian Cooperation;
In the Port of Saranda, the construction works on the new berth for cruise ships,
financed with 4.7 million USD, from World Bank were completed and the new berth
is operational.
In the Port of Shëngjini, preparations are continuing to start the new project
“Dredging of the basin”, worth 1 million Euro, funded by the Albanian Government.
Albania participated in the 41st SEETO Steering Committee meeting held in Prishtina on 1 –
2.07.2014. Albania fulfilled its duties and submitted list of project priorities every year to
SEETO, which are published in the SEETO Multi Annual Plan. The Priority projects are
always based on the SEETO’s main criteria:
 The project has a regional importance;
 The project is in the SEETO Comprehensive Network.
21.2 Trans-European Energy Networks
In the electricity sector, the Law No 56/2014 of 29.05.2014 “On the ratification of the
amending agreement to the loan agreement between the Republic of Albania, represented by
the Ministry of Finance, the Transmission System Operator S.A., as the implementing agency
of the project, and KfW Frankfurt am Main, on the financing of the project ‘Ring
Transmission Line 110 kv of South Albania’ through a loan worth 37,750,000 Euro” was
adopted. The amendments change the disbursement schedule and stipulate that the KfW can
refuse to disburse any expense after 30.06.2016.
The project “Ring Transmission Line 110 kv of South Albania” is under construction. Works
are continuing in the construction of the 110 kv power line from Babica (Vlora) to Saranda
and the 110 kv power line from Korça –Erseka – Leskoviku – Memaliaj.
In the oil and gas sector, the Decision of Council of Ministers No 314 of 21.05.2014 “On the
approval of the agreement between the Council of Ministers of the Republic of Albania,
represented by the authorised public institution, comprised by the Minister of Energy and
Industry, Minister of Economic Development, Trade and Entrepreneurship, Minister of
Finance, Minister of Transport and Infrastructure and Minister of Environment, and “La
Petrolifera Italo-Rumena” S.P.A. and “La Petrolifera Italo-Albanese” S.A.” was adopted. The
Decision approves the settling of disputes between the Albanian state and these two business
entities, on payment of VAT, use of cash registers, purchase of land to construct new storage
facilities, etc.
In June 2014, under round 11 of the Western Balkans Investment Framework (WBIF), a grant
worth 1.1 million Euro was approved for the preparation of the Gas Master Plan for Albania.
The Gas Master Plan will lay the ground for the gasification of Albania. The preparation of
ToRs for this project will start in September 2014.
Albania intends to be part of EU initiated Southern Energy Corridor, including gas networks
that will bring gas from Caspian and Middle East regions towards South – Eastern and
Central European countries. Trans Adriatic Pipeline project (TAP project) is part of the
Southern Energy Corridor.
Concerning the development of Trans Adriatic Pipeline project (TAP project), the following
legal acts were approved:
 Decision of Council of Ministers No 366 of 11.06.2014 “On the removal from the
forest and pasture fund of the forest and pasture areas that are going to be used by
TAP-AG for the construction of road network”. The Decision provides the legal bases
for the use of around 52 hectares of forests and pastures for the construction of road
network necessary for the TAP project. TAP AG is obliged to rehabilitate the entire
area used during the road construction and within five years to plant 50 hectares with
trees;
 Decision of the National Territory Council No 1 of 8.04.2014 “On the approval of the
Compound Development Permit for the Trans Adriatic Pipeline (TAP project)”;
 Decision of Board of Commissioners of Albanian Power Regulator No 16 of
13.03.2014 “On the approval of the guideline on the management and allocation of
capacities in the Trans Adriatic Pipeline (TAP) project in the first booking phase
according to ‘Joint Final Opinion’ under the exemption procedure for TAP”;
 Decision of Board of Commissioners of Albanian Power Regulator No 17 of
13.03.2014 “On examining and approving the Booking Phase Notice presented by
TAP AG under the capacity allocation procedure of TAP according to the guideline
approved with the Decision No 16 of 13.3.2014”.
TAP AG announced on 14.05.2014, that it shall construct an Exit Point in Albania (The
Initial Albanian Exit Facility) without any condition.
Concerning the Ionian Adriatic Pipeline project (IAP project) based on the Feasibility
Study56, the final route of IPA in the Albanian territory was identified, whereas regarding the
transition route from Albania to Montenegro, it was concluded to choose the ‘coastal’ option,
i.e. in the route between Shkodra Lake and the Adriatic coast.
56
See the first contribution of the Albanian Government submitted to EC services on 2 May 2014.
CHAPTER 22: REGIONAL POLICY AND COORDINATION OF STRUCTURAL
INSTRUMENTS
Key achievements
During the reporting period the Government of Albania has been mainly focused in the
programming process of IPA 2014 and the final draft Action Documents was submitted to
DG ENLARG for further comments and improvements at the end of July. The financial
assistance allocated to IPA 2014 Programme is 67 million EUR, out of which 42 Million euro
will go to "budget support" and PFM reforms while the rest (25 Million Euros) will be
dedicated to the sectors requiring urgent intervention. The drafting of the new CBC
Programmes under the new financial perspective IPA 2014-2020 is ongoing. The Country
Strategy Paper (CSP) is under the final adoption procedure, while the government aims to
finalize the NSDI 2014-2020 in December 2014.
Based on Prime Minister’s Order No 183 of 23.o6.2014 “On the preparation and drafting of
the National Strategy for Integration and Development (NSDI) 2014-2020“, which defines
NSDI’s structure, sectoral policies which are included in NSDI, institutions, responsibilities,
and timelines, during the reporting period the following activities were performed:
 Hearings were held with institutions and ministries during the period 21-30 May
2014, in order to ensure that financial requirements that institutions have submitted
under the Medium Term Budget Program 2015-2017 are in compliance and in line
with the government program, with priorities set forth in the sector strategies and
crosscutting strategies, and also with the National Plan for European Integration.
 Ministers of the line ministries have derived orders for the establishment of working
groups to draft NSDI 2014-2020, and have determined the contact points.
 The Unit for Strategic Planning (SPU), within the Department of Development
Programming, Financing and Foreign Aid, at the Prime Minister Office held meetings
and maintains continuous communication with respective ministries and institutions
to coordinate them and to reflect their contributions in the revised NSDI draft; the
Unit is working intensively to prepare the draft of NSDI within the deadlines set.
The first consolidated draft of the NSDI will be concluded at the end of September 2014. It
will reflect all the inputs and contributes of the ministries and other institutions and will be
approved by the Strategic Planning Committee (SPC), chaired by the Prime Minister.
During October – November 2014, the draft NSDI 2014-2020 will be subject to an extensive
public consultation process, which will involve the general public, as well as the interest
groups, civil society, academia, business, parliament, as well as the donors.
Finalization of the NSDI 2014-2020 is scheduled to be conducted in December 2014, after
concluding the consultation process.
In addition, the National Plan for European Integration was approved with Decision of
Council of Ministers No 438 of 2.07.2014 “On the approval of the National Plan for
European Integration 2014-2020”. Priorities established in the National Plan for European
Integration are determined based on a number of sources, including the Annual Work Plan of
Government (AWP), SAA, European partnership and Albania's progress assessments
included in the annual reports of the European Commission.
Short-term priorities in the National Plan for European Integration in five main priority areas
are fully synchronized with the Roadmap on five key priorities, approved by the Albanian
government on May 28, 2014. National Plan for European Integration 2014-2020 is prepared
by the Ministry of Integration European, which is also responsible for monitoring and
enforcement.
NSDI, budget and Medium-Term Budget Programme and the National Plan for European
Integration constitute the main pillars of the Integrated Planning System.
Regarding the Country Strategy Paper (CSP), following the latest comments of the
Member States in the IPA Committee, the document is now under the final adoption
procedure.
As regards to Regions Development Fund (RDF), the Committee for Regional Development
has announced eight calls for funding development projects in the fields of local
infrastructure, water supply and sewage system, education, forestation and environmental
rehabilitation, irrigation and drainage, arts and culture, as well as health.
Following the respective procedures and the evaluation criteria for each of the applications
from the eligible entities, 170 projects of medium and greater value were approved, and about
81 million USD (8.1 billion ALL) is allocated from the state budget.
Implementation of the projects will constitute essential interventions in promoting economic
growth and employment generation, promotion of development poles, etc.
With reference to Decentralized Management for IPA 2013 Programme, the Financing
Agreement between the Government of Albania and European Commission has been in
principle approved by the Albanian Council of Ministers, but not signed yet. This is due to
the recently dismissal of the Head of the Audit Authority (AA) and the position is still not
filled in.
The dismissal of the Head of the AA came as a result of several internal audit findings
pointing to evidence of fraud and abuse of public funds of the AA agency. Due to the
dispositions of the new law on civil servants, the new recruitments will take place by
September 2014. The Financing Agreement will not be signed until the new Head of AA is
appointed.
With reference to the 7 projects that will be managed under Decentralized mode by IPA 2013
projects, a calendar for launching the tender processes is prepared.
IPA 2014 Programming process is expected to be finalized in the 4th quarter of 2014, but
this year no support to infrastructure will be granted. The objective of this Programme is the
identification of the needs to be addressed in the following years, when a concrete support for
investments in infrastructure will be given. The Government of Albania submitted the final
draft Action Documents to DG ENLARG for further comments and improvements at the end
of July.
EU financial assistance dedicated to IPA 2014 Programme is 67 million EUR, out of which
42 million euro will go to "budget support" that will assist the Ministry of Finance for
payment of arrears and 2 million euro technical assistance to support implementation of PFM
reforms. This support by IPA funds goes in line with the support of the WB and IMF. The
rest of IPA 2014 funds (25 Million Euros) will be dedicated to the sectors requiring urgent
intervention according to Albanian priorities. These interventions are going to support public
administration reforms; support to human rights (dedicated to Roma and Egyptians
communities), technical assistance on issues related to European integration; support to the
participation of the Albanian institutions in the Union Programmes; support to civil society
organizations; and also, a very important support to the reforms in internal market and energy
sectors.
As regard to budget support, the National Authorizing Officer (NAO) is involved in the
programming phase in order to ensure that eligibility criteria for Budget support are met.
A working group for drafting the Public Finance Management reforms 2014-2020 was
established through Minister of Finance order No. 41 dated on 02.04.2014. The draft strategy
has been widely discussed with major stakeholders (PMO, Agency for Public Procurement,
Department for Public Administration, Ministry of Social Welfare and High State Control)
and other donors (IMF, WB and EU) and the final document will be approved by end of
2014.The reform pillars and priorities are:
1. Sustainable and prudent fiscal framework
2. Well-integrated and efficient planning and budgeting of public expenditure
3. Efficient execution of the budget
4. Modern Accounting and Reporting System
5. Effective system of internal control at public units
6. Effective oversight of the public finances
The Ministry of Finance as the leading institution of the PFM reforms and responsible for
implementation of IPA funds has had continuous consultation with the DG-ELARG. A policy
paper was prepared and submitted to the EC for their “budget support” actions. Further, the
Ministry of Finance launched a high level Policy dialogue (1st July 2014) between the
Government institutions and key partner organizations discussing the measures and action for
budget support to PFM strategy. Many of the issues raised during the “policy dialogue” are
already integrated in the draft PFM policy and strategy but need further clarification and
sequencing. Development partners informed of their intention to send more detailed
comments and suggestions to the Ministry of Finance.
In this context, the EC proposes that in the future the development partners aim to consolidate
their comments on the draft PFM strategy and action plan in order to have a common basis
for discussions with the Government of Albania. This would be a stepping-stone to
concretely engage in a joint policy dialogue and gradually build a common agenda.
Discussions confirmed the relevance of the overall approach and the alignment to the PFM
policy and strategy. It was agreed that this first preliminary meeting had to be followed up by
other technical discussions on:
 The alignment of indicators to the PFM policy and strategy: Better match the ‘pillars’
of the BS Programme to the pillars of the PFM policy and ensuring that the precise
functioning of conditions, trigger indicators and targets fully align behind the PFM
policy and strategy. In this context, discussions should take place between the GoA
and the EU on the trigger indicators proposed by the Ministry of Finance;
 Development partner coordination: EU should share the preliminary proposal of BS
design with the IMF and the WB to ensure synergies and complementarity with their
respective support. Their feedback should define a final decision on the choice of
indicators, in particular in the areas of fiscal policy, tax management, and quantitative
targets on arrears;
 Budget support programme design.
Once the priority areas for conditions and trigger indicators are identified, discussions should
take place between GoA and the EU to select and agree which ones should be conditions for
fixed tranches and which ones should be integrated as trigger indicators for the variable
tranches. The discussions should pay particular attention to how the EU budget support can
improve external audit and how it can address the issue of the approval of the law.
Agree on the timing for the achievement of each condition and indicator and the weight of
performance indicators for the disbursement of variable tranches.
In the upcoming round of the dialogue (September 2014), the NAO will discuss and agree on
tigers and figures for Budget support to the PFM reforms.
Regarding Western Balkans Investment Framework (WBIF), during the 11th round in June
2014, the Steering Committee approved the project of drafting the Master Plan for Albania
gas, supported by EBRD (€ 1.1 million). In the framework of an informal Round, Albania is
identifying a limited number of possible project proposals to be submitted to the WBIF
Secretariat within 31st of August 2014.
Regarding regional and horizontal program IPA Multi-beneficiary, the Commission
approved the “Multi country Indicative Strategy paper – 2014-2020” at the end of June, while
the package with projects of IPA 2014 programming is under approval by the European
Commission Services.
With regard to IPA Cross Border Cooperation (CBC), the Ministry of European Integration,
Operating Structure for the CBC Programs, continued its work for the preparation of
programming of the new CBC Programmes under the new financial perspective IPA 20142020. The final draft of CBC Programmes Albania-Montenegro, Albania-Kosovo 57 and
FYROM-Albania, reflecting the comments of the Commission and outcomes from the public
consultations, was submitted in May 2014. As regards to the CBC Programmes with Member
57
This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ
Opinion on the Kosovo Declaration of Independence
States, the Joint Task Forces for the programming were established and the programming
process is ongoing to be finalised within September 2014. During this period, several public
consultations with relevant stakeholders were organized. For IPA CBC Programme “GreeceAlbania”, three public consultations were organized; 30 May 2014 in Gjirokastra, 18 June
2014 in Korça and 20 June 2014 in Vlora. The Ministry of European Integration organised a
consultative meeting with line ministries on “Balkan-Mediterranean” programme on 27 June
2014.
The annual implementation report on the implementation of IPA CBC Programmes with
FYROM, Montenegro and Kosovo was prepared in collaboration with JTS offices. Also,
during the reporting period the monitoring of all ongoing projects for all IPA CBC
Programmes was conducted.
The Ministry of European Integration is continuously engaged in monitoring of the
problematic projects in both components IPA I and IPA CBC.
CHAPTER 23: JUDICIARY AND FUNDAMENTAL RIGHTS
(See also the chapter on the Political criteria — Democracy and the rule of law)
23.1 Judiciary System
Inspections in the courts and prosecutor’s offices
The Ministry of Justice during the period May - July 2014 conducted four inspections in six
courts (three first instance courts: Kruja, Elbasani, Vlora and three courts of appeal: Korça,
Tirana and Vlora). In one case, the control focused on judicial administration. Moreover, the
inspectorate of the Ministry of Justice conducted a thematic inspection in the prosecutor’s
office. Concretely:
 By order of the Minister of Justice No 1652 of 5.05.2014, the District Court of Kruja
was inspected. The aim of the inspection was verification of procedural and
administrative actions of the Chancellor of this court in several court cases;
 By order of the Minister of Justice No 271 of 16.05.2014, the Court of Appeal of
Tirana and District Court of Elbasani were inspected. The aim of the inspection was
verification of the lawfulness of procedural actions taken by the judge M. Ç. of the
District Court of Elbasani in course of adjudication on a request of the District
Prosecutor’s Office of Elbasani for suspension of exercise of a public duty/service in
relation to a judge of the Court of Appeal of Tirana, GJ.GJ., and verification of
lawfulness of the procedural actions taken during adjudication in the civil
administrative cases (a judge accused of concealment of assets and false declaration
of assets);
 By order of Minister of Justice No 306 of 3.06.2014, the Judicial District Prosecutor’s
Office of Saranda was inspected. The aim of the inspection was verification of
lawfulness of activities of prosecutors in criminal proceedings that ended with
dismissal decisions and non-initiation of criminal proceedings. The inspection
covered the period 01.01.2013- 01.06.2014. This inspection focused particularly on: i)
observation of the time limits of investigation; ii) observation of the time limits of
pre-trial detention; iii) observation of the fundamental rights and freedoms of the
subjects of the criminal proceedings and in particular detainees and arrested persons;
iv) observation of the legal obligation of the prosecutor for the initiation of criminal
prosecution; v) regularity and consistency of performance of investigative actions;
 By order of Minister of Justice No 351 of 27.06.2014, the District Court and Court of
Appeal of Vlora were inspected. The aim of the inspection was verification of the
judicial procedures in the adjudication of several civil cases;
 By order of the Minister of Justice No 261 of 8.08.2014, the Court of Appeal of Korça
was inspected. The aim of the inspection was control of procedures employed during
adjudication in a criminal case against Dh.P. - a judge accused of corruption. The
inspection focused on validation of a request for arrest and imposition of security
measures against the person accused.
During the reporting period the High Council of Justice has paid special attention to the
inspection procedures and activities. At the meeting held on 28 May 2014 the High Council
of Justice reviewed and approved:
 The Report on activities of the Inspectorate of the HCJ for the calendar year 2013,
analyzed the results of the work and the problems encountered. This report serves not
only the analysis of the current state of HCJI but also a prioritization of its activities in
terms of efficiency and professionalism;
 The Report on activities of the HCJ for 2013, highlighting all its achievements, as
well as setting the objectives of its work for years to come with the only goal of
improving its work;
 Decision No 55, amending the Regulation on the Organization and Functioning of the
Inspectorate of the High Council of Justice “(approved by Decision No 195/2/a of
5.07.2006, as amended). This amendment gives a possibility to fill the vacancies in
the HCJ Inspectorate when no applications from within the judicial system are
submitted.
At the meeting held on 30 May 2014 the High Council of Justice reviewed and approved:
 The Thematic Audit Report of the Inspectorate of the High Council of Justice "On
domestic violence and security measures for unlicensed possession of military
weapons, for the period 01.01.2011-30.06.2012". This report is a result of inspections
organized in 28 courts (6 courts of appeal and 22 courts of first instance. The aim of
these control activities was:
o Verification of the role of Courts in the fight against domestic violence
through emergency protection orders and protection orders;
o Verification of the role of Courts in strengthening public safety through setting
personal security measures for the suspects accused of illegal production and
possession of military weapons.
 The Thematic Audit Report of the Inspectorate of the High Council of Justice "On the
exercise of the activity of teaching by judges for the academic year 2012-2013". This
Report results from inspection of 30 courts (including 23 courts of first instance and 7
courts of appeal). The aim of this control was:
o verification of teaching by judges of courts of first instance and appeal during
the academic year 2012-2013, with a particular focus on the observance of the
rules laid down in Decision of the HCJ No. 278/2, dated 19.07.2011 "On the
academic activities of judges",
o Identification of impact of the teaching activities and the financial rewards for
the trainers.
Bearing in mind the reforms introduced to the inspection regime, enhancement of inspectors
powers as well as their independence, a number of capacity improvement activities took
place. The HJC inspectors participated in the following trainings that took place during this
reporting period:
 A TAIEX training with the theme "verification techniques - collaboration on /
exchange of information with other intelligence / investigation / enforcement” was
organized. This training was attended by the Chief Inspector and by one inspector of
the HCJ..


Training on “Conflict Resolution and Reconciliation of Disputes" on 25-26 June
2014.
Training on "Judicial Ethics in inspection" organized by the French Embassy and the
American Embassy in Tirana, 9-11 July 2014.
Building of professional capacities of inspection structures
On 9-11 July 2014, a training on “Inspection of violations of the judicial ethics” took place. It
was organised by the USA Embassy (OPDAT Mission), in cooperation with the French
Embassy. The staff of inspectorates of the Minister of Justice and of the High Council of
Justice attended the training. This event focused on ethics in the judiciary, inspection
procedures, best models and practices of inspections.
On 16 July 2014 a one-day training on the functioning of the audio system of courts took
place. It was organised by the USAID Mission Just Project for inspectors of the directorate of
judicial inspection at the Ministry of Justice. The functioning of this audio system enables
verification from the inspector’s office (without a need to visit the courtroom in person) of
the activities and behaviour of judges, prosecutors and other parties in judicial proceedings.
Inspections and disciplinary procedures to prosecutors
An inspection of activities undertaken by prosecutors of the Serious Crimes Prosecutor’s
Office of Tirana took place. It was organized pursuant to Law No 10192 of 3.12.2009 “On
the prevention and combating organized crime and trafficking through preventive measures
against property”. The inspection focused on property investigations conducted by the
Serious Crimes Prosecutor's Office of Tirana.
Furthermore, the implementation of the inspection plan approved by the Prosecutor's Office
Council for 2014 continued. A general inspection at the Serious Crimes Appeal Prosecutor’s
Office and at the Prosecutor’s Office in the Judicial District Court of Përmeti was completed.
Based on the information from the Department of Control and Investigation and the Judicial
Directorate at the General Prosecutor’s Office as well as complaints of citizens partial
inspections were carried out. In total, 1,155 criminal proceedings, non-commencement
decisions, and security measures were checked at the Judicial District Prosecutors’ Offices
and Prosecutors’ Offices of Appeal.
Additionally, during the reporting period the Prosecutor’s Office Council has completed the
review of the disciplinary process for three prosecutors. At the conclusion of this process,
according to the proposal of the Prosecutor’s Office Council, the General Prosecutor has
imposed the disciplinary measure “remark with warning” to 1 (a) prosecutor and a
disciplinary measure "warning" for 2 (two) prosecutors. Additionally, 2 (two) other
prosecutors are in the process of disciplinary review in the Council of Prosecutor’s Office.
Improvements in the organization and functioning of the Prosecutor's Office
In fulfillment of the recommendation of the European Commission "Enhancing the
administrative capacity of the structures fighting computer crime", the Cyber Crime Sector in
the Directorate for Investigation of Economic Crime, Corruption and Organized Crime, in the
General Prosecutor’s Office, which was set up in March 2014 was completed with the
necessary staff (prosecutors and judicial police officers) in June 2014. The assigned staff will
deal with cases of cybercrime in the Judicial District Prosecutor's Offices of Tirana, Durres,
Elbasani, Vlora, Fieri, Korça and Shkodra, and in the Serious Crimes Prosecutor’s Office in
Tirana.
In fulfillment of the recommendations of GRECO and the European Guidelines “On ethics
and behavior of prosecutors”, and institutional commitment by the Prosecutor's Office, the
General Prosecutor has approved, by virtue of Order No. 141, dated 19.06.2014, the "Rules
on ethics and conduct of prosecutors". They provide rating rules on ethics and conduct of
prosecutors, to ensure and guarantee professionalism, independence, impartiality, honesty,
integrity and correctness in practicing with efficiency the constitutional and legal functions in
the public and society interest and on behalf of the state, to prevent and punish every corrupt
act and behavior, and increase public confidence for the Prosecutor's Office. This normative
act has provided in addition to clear rules enforcement mechanisms and opportunity to get
advice on ethics. Additionally, by the order of the General Prosecutor there is appointed the
Inspector of Ethics, a prosecutor within the Department of Inspection and Human Resources,
in the General Prosecutor’s Office, to track and monitor the implementation of this order.
In addition, in order to fulfill the institutional commitments to further enhance the
effectiveness of prosecution, to ensure respect for human rights in the criminal proceedings,
and to strengthen the legitimacy and unify law enforcement by prosecutors at all levels the
General Prosecutor issued in April and May 2014 the following circulars:
 “On unified understanding and implementation of Article 4 of Law "Granting of
amnesty", aiming at clarifying the meaning and unifying implementation of article 4
of this law and avoiding its erroneous application;
 “On unifying the efficient exercise of the right to appeal", with the aim at unifying
legal practices of prosecutors in the exercise of complaints and facilitating the
assessment of lowest prosecutors to highest prosecutors, in the exercise of the right to
appeal in the trial phase.
Increase of the Prosecutor’s Office capacities
On 26-27 May 2014 the School of Magistrates, in collaboration with the Helsinki Committee
of the Netherlands, carried out the training on "Internal trafficking of human beings and
distinction from other similar criminal offenses ". This training was attended by 13 Judicial
Police Officers.
On 10 - 11 June 2014 a training took place “On Albanian and Italian experience in the
investigation and prosecution of cybercrime”. This event was organized by the General
Prosecutor's Office and the State Police, with support of PAMECA IV. Speakers presented
international legal instruments aimed at combating cybercrime, such as the Council of Europe
Convention and European Parliament and Council Directive 2013/40/EC. Furthermore,
recent trends in cybercrime, various investigative techniques employed to combat this offence
as well as the use of digital evidence were also discussed. Cybercrime investigation best
practices were illustrated by case studies.
On 24 - 26 June 2014, five prosecutors and one judicial police officer attended a training
organized in Nyon, Switzerland. The invitation was received from UEFA. The training
focused on investigation of match fixing.
In June 2014, three prosecutors attended a workshop on crimes against intellectual property.
It was organized by TAIEX.
On 26-27 June 2014, the School of Magistrates organized a two - day training entitled "Skills
in presenting the matter in court". This training was attended by 15 prosecutors.
Regulated professions
By order of the Minister of Justice No 385 of 21 July 2014 the Institute of Forensic Medicine
was inspected. The aim was verification of procedures followed by the forensic medical
specialists, according to legal provisions provided for in the criminal legislation and based on
information transmitted by the Ministry of Internal Affairs. Following the inspection the
collected material will be analysed and specific recommendations may follow.
By order of the Minister of Justice No 267 of 16 May 2014 two notary offices were
inspected. The aim was to verify selected some contracts, based on the information submitted
by the HIDAA. No violation of Albanian law was found.
By order of the Minister of Justice No 266 of 15 May 2014, a thematic inspection of 15
private bailiffs who run their activity in Tirana and Durres was conducted. The focus was
verification of the use of ALBIS system. Inspection will be now extended to all the private
judicial enforcement offices.
Minister of Justice, upon completion of the inspection conducted over the activity of a private
judicial enforcement agent based on a citizen’s complaint, by order no. 374 of 10 July 2014
decided the suspension of exercise of the activity of the bailiff for a 6-month period.
Further, in the framework of increase of transparency of the exercise of its activity, Ministry
of Justice, in May 2014 published online for the first time the list of notary assistants, in the
portal
http://www.drejtesia.gov.al/al/dokumente/lista-e-asistente-notereve.
Draft Law on Arbitration
In compliance with the legislation in force, the draft law “On arbitration”, has been subject to
wide consultations with all stakeholders, including all line ministries and all courts. Currently
the Ministry of Justice is reflecting all comments and suggestions made by the stakeholders.
Executions of the judicial decisions
In reference to the statistical data on execution of the executive titles from the State Judicial
Bailiff Service for the period 2 May - 31 August 2014, it has resulted as follows:
 25,421
cases registered for execution
 2,916
cases are executed
 265
cases are dismissed
 18,343
cases under execution within the procedural time limits
 4,821
cases that are legally settled
In the above cited statistics data are progressive and not included in cases concerning
alimony and child appointments. Such cases registered apparently amount to around 5,000.
Compared to the statistical data for the period 1 September– 2 May 2014, it is observed a
significant increase of the number of bailiff cases registered, executed, as well as the number
of cases that were legally settled.
The monitoring and inspection of the State Judicial Bailiff Service for the period 2 May- 31
August 2014, are exercised through:
Exercise of inspection already completed at 22 bailiff offices, drafting of inspection acts and
application of the corrective measures and disciplinary sanctions for irregularities reported in
the procedures for enforcement of executive titles, violations of professional ethics and of all
other standards governing the activity of State Judicial Bailiff Service.
Further, in the organizational framework, through creation and completion with
professional capacities of units both at central and local level. It is worth mentioning the joint
initiative of the Directorate General of Police with MoJ for the change of structure already
approved by the Prime Minister, specifically for staffing the bailiff service with experts
distributed in the main circles, thus bringing facilities and flexibility for the execution of
bailiff cases.
Integrated, harmonized and uniform case management system
The Ministry of Justice is continuously following up the functioning, updating and
improvement of the Case Management System of Courts (ICMIS). Therefore, during MayAugust 2014 an updated version (Deploy Version 5.1 ICMIS 26.06.2014) was installed in
courts. Also during this period the training in Judicial District Court of Përmeti and Tropoja
was completed.
Moreover, in this regards, the Ministry of Justice signed the contract with the company that
will install ICMIS in the Administrative Courts and train and assist its staff. Its
implementation started on 25 August 2014.
The problem remains with the First Instance Court of Tirana because of the complexity of
this court which concerns the volume of cases reviewed by the court and the objective
difficulties of technical nature to move immediately from the old system (ARK IT) to the
new system (unified ICMIS system).
Case Management Project (Case Management) for the Albanian Prosecution Office is in the
second phase, this includes development of a software (which has started in September 2013
and is due for completion by the end of 2014.
The company is in the process of programming, after having prepared the analysis and design
of functions that the program will carry out. Additionally, the company is reflecting on the
comments and requests of the Prosecutor’s Office Working Group, which argued for a solid
database usable in the work of prosecutors and judicial police officers.
On 15 June 2014 the implementation of the program for two pilot prosecutors’ offices has
started, respectively in the Judicial District Prosecutor’s Office of Durrësi and Elbasani. On
15 July 2014 the training of prosecutors, judicial police officers and employees of the registry
office in these two prosecutors’ offices was completed. Currently, prosecutors, judicial police
officers and trained officers are working with the program, to identify problems, if there are
such, and to make their comments on the necessary updating of a project module.
Through this system, the Prosecutor's Office will have opportunities to obtain information on
the situation of criminal proceedings at any stage of the proceedings, which constitutes a
significant achievement in the work of the prosecutor’s office, in fulfilling the
recommendations of the European Commission to establish a database (track records).
Digitalisation of the judicial system
Since late March 2014, the audio digital recording (ADR) technology was extended across all
courts under the Gjirokastra appellate jurisdiction, with the support of the JuST project. This
is the fifth jurisdiction (out of six) where ADR system is successfully put in place.
A Regional Court Leadership Conference organised by JuST in partnership with the Ministry
of Justice and the High Council of Justice took place in July 2014. It summoned all judges,
chancellors, judicial secretaries and IT specialists from first-instance and appeals courts of
Gjirokastra, Saranda and Përmeti. It was a good opportunity for practical discussions among
court professionals on the use and best practices of RDA technology, in order to improve
court transparency, accountability and efficiency, as well as exchange ideas on better work
organisation in the judiciary.
Since the beginning of the project (March 2012) the ADR is installed in 25 courts, in 112
courtrooms and 633 court staff were trained (judges/secretaries/IT and chancellors).
Judicial archive
Considering the situation of the judicial archives in the courts, the Ministry of Justice, on 26
June 2014 organised a round table with the participation of chancellors and archive
specialists of the first instance and appeal courts, including the administrative courts. The
activity was organised with the OSCE support and with the participation of representatives by
the Office for Administration of Judicial Budget and USAID.
The discussion focused on the main problems related to the judicial archive, the best
international practices, the legal framework in Albania. Furthermore, recommendations for
the improvement of the system were made. In order to address these recommendations, the
Ministry of Justice is planning: drafting of an action plan to solve the problems of archives in
the courts; setting-up the Commission of Expertise for the State Archive of the Justice
System attached to the Ministry of Justice in order to destroy the judicial files, which time
period of storage has expired; improvement of the sublegal acts issued to regulate the
situation of the judicial archives, in particular the updating of the sample list and forms which
serve for the destruction of the judicial files which time period of storage has expired; start of
work for building and making functional the State Archive of the Justice System which in
support of the Law No 9154/2003 “On archives” is created and functional in the Ministry of
Justice; cooperation with the General Archive of State in order to provide the necessary
assistance for the settlement of the situation; and also start of work by the chancellors and
archive specialists of the courts for the selection of the judicial files and preparation for
storage, transfer and their destruction.
Other developments in the judiciary regarding infrastructure
During 2014 commencement of construction of a new building of Shkodra Court of Appeal is
envisaged. The project realization will be extended for two years from 2014 to 2015. Funds
allocated for 2014 is 42 million ALL. Construction of new court building will enable the
creation of optimal working conditions and standards imposed judgment regarding: judges
and administration offices, courtrooms, public service environment, access for persons with
disabilities, missing so far. The budget for this project was opened by the Ministry of Finance
on 27.5.2014. The Court is preparing the documentation for tender procedure.
Concerning Fieri District Court, the fund allocated is 11.5 million ALL for the
implementation of the public service environment and access for people with disabilities. The
Court is in the development stage of the procurement procedure.
Judicial District Court of Berati did not manage so far to provide the site where the new
building was to be located, or a building that could be reconstructed and adapted into a court
building. However, the Court has decided for a partial and modest investment which will
improve public service, provide access to persons with disabilities and ensure the security
elements in the court. Therefore the court during 2013 prepared the respective estimate for
the necessary works. For 2014 the fund allocated for this investment amounts to 1.4 million
ALL. The Court is preparing the documentation for tender procedure.
Another, similarly important element, concerns investments made in the electronic
infrastructure of courts. Investments in this area are made to make possible the keeping of the
level reached for the functioning of the judicial case management and also supporting other
projects developed in the frame of digitalisation of the work in courts and increase of
transparency. One of these projects is the audio recording of court sessions. The budget
invested on annual basis is focused on increase of number of electronic equipment including
computers, printers, photocopying machines, replacement of overused equipment and
meeting the needs for servers.
In this direction, a budget of 38 million ALL has been foreseen for 2014 in order to meet the
needs of 33 first instance and appeal courts (including the administrative courts which started
their activity in November 2013) and the Office for Administration of Judicial Budget.
So far we have completed the full investment, including the liquidation of funds, for 13
courts.
Realized funds from them are about 8 million ALL. Procurement procedures have been
completed for 16 other courts which are in the process of signing the agreement or delivery of
goods, etc.
The other courts have started the procurement procedures for purchase of electronic
equipment.
23.2 Anti-corruption policy
Fight against corruption remains one of the main priorities of the Albanian government.
Building of law enforcement capacities to ensure strict enforcement of law is one of the
priorities addressed in the Action Plan of the Albanian Government. During the reporting
period several measures were taken to ensure accountability and strong political will of the
Government so as to address the corruption in Albania.
Ministry of Justice
Regarding the fight against corruption in the justice system, the Ministry of Justice has sent 5
judges under investigation procedures, out of which: 2 judges for corruption offenses and 3
judges, based on the denouncement of the HIDAACI. The latter are being investigated by the
prosecutor’s office for the criminal offence of refusal to declare, failure to declare,
concealment or false declaration of assets, The High Council of Justice, based on the proposal
of the Minister of Justice, dismissed one judge in the meeting of 16 July 2014. The judge
dismissed was in the position of the chair of the court. Moreover, another judge is alleged to
have been involved in corruptive actions and the case against him is under investigation.
Based on the cooperation with HIDAACI, the Ministry of Justice proposed to theHigh
Council of Justice, the dismissal of three judges for whom, irregularities in verification of
their assets were found (two judges in the first instance courts and 1 judge in a court of
appeal), with the argument that refusal to declare, failure to declare, concealment of false
declaration of assets constitutes serious violation of acts and behaviour which discredit the
position and reputation of the judge. Three requests of the Minister of Justice were
overturned by the HCJ while the prosecutor’s office is investigating the cases.
In the frame of continuation of the process of harmonization of statistical data for criminal
offences against corruption and organized crime, Ministry of Justice, in cooperation with the
Ministry of Internal Affairs and General Prosecutor’s Office has processed the statistical data
for the second quarter of 2014 (April- June 2014).
To find a comparing analysis of harmonized statistics of the first and second quarter of 2014,
please refer to Annex 23.1.
Regarding the measures taken by the Internal Investigation Directorate to the General
Directorate of Taxation, please refer to chapter 16 “Taxation”.
General Prosecutor’s Office
The General Prosecutor's Office started the work to develop the medium-term strategy on
fight against corruption and organized crime 2014 – 2017. This strategy will be the basis for
strengthening the fight against corruption and organized crime; as well as it will integrate the
issues of ethics and rules of conduct, adopted in June 2014 by the Attorney General.
In addition to the statistical indicators made available through harmonized evidence for
corruption, please refer to Annex III.23.2 to find some other information on statistical data
track record and also on proactive investigation.
Strengthening and consolidation of the Joint Investigation Units has continued. Prosecutors
and judicial police officers of Joint Investigation Units were continuously trained.
In the reporting period the Prosecutor’s Office had as priority the prosecution against
perpetrators of, “Laundering of proceeds of criminal offence or criminal activity” provided
for in Article 287 of the Criminal Code.
Referring to the statistical indicators for this period, the State Police references to Article 278
of the Criminal Code were increased by 88% compared to the quarter of the year and it is
registered 1 (a) criminal charge by other entities.
In this period the number of criminal proceedings registered for this offence was increased by
55% compared with the first quarter of the year. Also, the quality and effectiveness of
investigations is increased, by dropping by 78% the number of prosecutions dismissed for
this offense and 1 (one) case sent in trial in the same figure with the first three months of this
year.
Additionally, strengthening the cooperation between all law enforcement structures involved
in the field of Prevention of Money Laundering and Financing of Terrorism has continued,
and it is being worked to enable the provision of a new project "Improving the fight against
prevention of money laundering in Albania", IPA 2014-2017 “Pilot Sector Programme for
Justice and Home Affairs and Fundamental Rights”.
In fulfilment of constitutional 58 and legal obligations 59 , by Decision of 3.07.2014 the
Assembly adopted the Resolution "On the report of the General Prosecutor on the situation of
crime in 2013". This decision assessed the achievements reached, such as the establishment
of on-line address to denounce abusive work of prosecutors, as well as improving the
performance required, including the strengthening of internal control in the prosecutor’s
office.6061
Pursuant to Article 6 of Law on the Prosecutor’s Office, in the context of accountability and
transparency, representatives of Prosecutors Offices at all levels, communicated with the
public and / or media about the activity of the Prosecutor’s Office (indicators of criminal
prosecution, the indictment in court and / or the execution of criminal judgments), about
general and specific problems on crime under their jurisdiction. However publication of any
information that undermines the process of investigations, which violates the dignity and
privacy of persons or that violates the rights of minors and public morals, was avoided.
During the reporting period, the prosecution office has administered criminal reports,
information, requests and complaints submitted from different citizens to the Public Relations
Department at the General Prosecution, or sent by electronic mail at the address published on
the website under "Online Denunciations". For each case, the necessary verifications have
been made by the departments/sectors of the General Prosecution Office, Appeal Prosecution
offices or First Instance Prosecution offices, and the interested parties are informed for the
legal settlement. Only through the rubric / on-line address for reporting suspected cases of
prosecutors’ abusive activity (denonco@pp.gov.al), about 40 complaints from citizens were
filed and administered regarding issues they are facing at central and local administration
bodies, as well as in dealing with the prosecution offices. These complaints have received and
are receiving the legal settlement on time.
In addition to on-line address (denonco@pp.gov.al) for reporting cases suspected as abusive,
on-line address are made available to citizens to address directly and in real time to Joint
Investigation Units, by districts where they exercise their powers and specifically in Tirana,
Durrësi, Elbasani, Fieri, Gjirokastra, Vlora, Korça and Shkodra. In the official website of the
Prosecutor’s Office a special place will be dedicated to continuous information on the
Council of the Prosecution and the activity or decision making of this body.
58
See, article 149/4 of the Constitution of the Republic of Albania;
See, Article 53/1 of Law “On organization and functioning of the Prosecutor’s Office of the Republic of
Albania:”The General Prosecutor informs the Assembly or the committees of the Assembly at least once every
six months or whenever requested by them”;
59
Additionally, given the new powers, the Prosecutor’s Office for Serious Crimes will have an
email address to report cases of corruption of public officials and local elected officials, as
well as judges, prosecutors and other judicial officials.
General Directorate of Prisons
Based on the Strategy of the Ministry of Justice in Combating Corruption in the Justice
System, and the recommendations of the European Union to strengthen anti-corruption
measures in the Prison System, the General Directorate of Prisons has created an integrated
platform and specific measures to fight the corruption.
Based on the instruction of the Minister Justice No 103 of 14.02.2014 “On regulation of
certain issues relating to the procedure of rewarding and special permits for persons
sentenced to imprisonment”, the General Directorate of Prisons has improved the procedures
for issuing permits, making them more transparent. A Board established by Order No 66 of
3.03.2014 of the Director General of Prisons, monitors on daily basis the procedures of
issuing permits by prison departments, as well as intervening in case of infringements or
irregularities.
In order to estimate the treatment process and respect of the rights of persons deprived of
their liberty by the prison administration and taking concrete measures to combat corruption
in the prison system, the General Directorate of Prisons conducted a survey in the prison
system. 610 detainees and prisoners, selected as a sample group in 15 prisons, based on the
criteria of complete confidentiality, filled out a questionnaire. According to the data, 8% of
respondents acknowledged the existence of corruption, particularly with regard to the
permitting and rewarding leaves. Based on the results of this study, in order to address the
anti-corruption measures in the prison system, a working group was set-up for drafting rules
and anti-corruption guidelines. In addition, GDP plans to develop awareness campaigns to
inform staff, prisoners and detainees on these rules. Continuous professional development of
the staff also remains an important aspect in the fight against corruption.
By Order No 144 of 16.05.2014 of the Director General of Prisons, the Board of Performance
Evaluation of the Penitentiary Institutions was established. The Board has set the criteria and
has standardized the format for all institutions on which the assessment of prison will be
based. The main purpose of the implementation of performance evaluation is: development
and improvement of services in the prison system, increasing productivity, promoting good
practices from each institution, as well as strengthening the communication between
institutions and the General Directorate of Prisons, as well as combating corruption.
General Directorate of Prisons made available some other tools that assist public and persons
deprived of their liberty to address/report cases of corruption in the prison system.
Specifically, priority has been given to all cases of denunciations, complaints and requests
addressed to the GDP, through the green line 08002080 and e-mail address
dpbsh@albaniaonline.net. Also, on daily basis meetings with citizens have been organized
regarding their concerns.
The Ministry of Internal Affairs
As part of its broader effort to increase police accountability and tackle police corruption and
malfeasance, the Ministry of Internal Affairs (MoIA) has continued its reform of the Internal
Control Service (ICS). A law entitled “The Service for Internal Affairs and Complaints, at the
Ministry of Internal Affairs” was approved by the Parliament on July, and MoIA has
commenced work on related secondary legislation. ICS has continued to take a proactive
approach to dealing with misconduct and corruption among ASP employees, dealing with 48
cases. A total of 47 police employees were investigated during the reporting period, including
2 senior employees, 14 first line supervisors, 27 operational officers and 4 civilian employees
and 2 citizens.
To find compared statistics prepared by ICS and also by the State Police, please refer to
Annex 23.3
The High Inspectorate of Declaration and Audit of Assets and Conflicts of Interest
As a result of the legal amendments and the thorough investigations initiated recently and
conducted by HIDAACI Inspectors, till August 2014 (only in a period of time of six months
of the new leadership), a total number of 46 cases have been referred to the prosecution
office. During 2003 (HIDAA establishment) – 2013, the total number of referred cases in 10
years is approximately 60 cases, whereas in the last six months of 2014, there were 46 cases.
This substantive increase shows the good will and determination of the institution to fight
corruption at all means. These 46 cases, include very high rank public officials, such as
ambassador, a member of the High Council of Judges, judges of a first instance court,
prosecutors, a legal assistant of the President, tax and customs employees, local authorities.
All these cases, were made public, and were broadly covered by the printing and electronic
media. In all the cases, the High Inspectorate, along with the referral, based in the Law No
9049 of 10.04.2003, as amended, has notified the superior of the institution to take the
appropriate disciplinary measures. Unfortunately, the feedback of the institutions, especially
for some highly sensitive cases, was not up to the required level.
During the reporting period the High Inspectorate imposed administrative measures (fines) on
172 public officials.
Considerable attention was given to the institutional cooperation, as an important instrument
in the fight against corruption. The institutional relations with Financial Investigative Unit
(FIU) were renewed, after an interruption of a long period of time. Based in the legislation of
FIU, HIDAACI prepared the list of Politically Exposed People (PEP) and put it into the
disposal of FIU. At the same time, some of the cases referred to the prosecutor, were
forwarded to FIU as well for further investigation to be conducted.
The collaboration with the Tax Office was further developed, towards a new and significant
step. It means that the crosschecking process, the income of public officials will be checked
and verified, both at HIDAACI and Taxation Office. A cross cutting investigation and a
double check would be conducted, aiming to investigate the truthfulness of the declared
income by the officials. By means of a Memoranda of Understanding, signed with all the
independent institutions, including HIDAACI, the Tax Office and the parties of the MoU,
intend to check the truthfulness of the declared income of the individuals at Tax Office, by
coordinating with HIDAACI, where public officials declare their income as well.
The increase of human capacities was always considered a priority for HIDAACI. For this
reason, in July 2014 a three day TAIEX training took place on 16 – 18 June 2014. The aim
was to provide technical assistance to HIDAACI staff that closely deals with administrative
investigations. The trainings were about the updates of Investigation techniques for assets
declaration.
As a result of the recent legal amendments and the increase of workload, mainly the number
of full audits and administrative investigation to be conducted in a year, the High Inspectorate
considered it necessary to change the Organizational Chart. It was approved in July 2014.
Transparency
One of the main problems that HIDAACI faced in 2013 was the isolation policy (no
institutional, public or media relations were established during 2013) that was followed, due
to the previous legal amendments that blocked the publication of declarations forms, making
the procedures more complicated.
In the recent abovementioned amendments the High Inspectorate suggested a more simple
procedure for making declaration forms available to the public. Transparency and openness is
the main policy followed by HIDAACI.
Since May 2014, there was a high number of requests, mainly from media and civil society,
for copies of declaration forms.
The following data, shows the comparison with the previous years:
Year 2014 (June - August)
Year 2013
Year 2012
Year 2011
approx. 600 declaration forms
0 declaration forms
approx. 900 declaration forms
approx. 1200 declaration forms
23.3 Fundamental Rights
23.3.1 The Right to Life and Integrity of Person
Improvement of rights and treatment of persons deprived of their liberty
The New Mid Term Strategy of the Prison System and its Action Plan have been drafted.
They address the main priorities, based on the guidelines of the Albanian Government for the
penitentiary system, for the period 2014-2017. The Strategy and its Action Plan are in process
of being analyzed in the Ministry of Justice.
During May- August 2014 the population in prisons was approximately 5,480 prisoners, of
which 101 women and 92 minors. Overcrowding was 943 persons or 23%.
For the improvement of conditions in the penitentiary institutions and alleviating
overcrowding, the final procedures for the opening of two new institutions in Fieri and Berati
are due.
Legislative reform
By order no. 182 dated 17.06.2014 of the Director General of Prisons, a working group was
set up for the revision of the General Regulation of Prisons. Pursuant to article 46 of the law
no. 10032, dated 11.12.2008 “On Police Prisons”, as amended, the working group will
suggest additions and amendments to the prison regulation. The amendments are aimed to
supplement the sublegal acts for the management and organization of the General Directorate
of Prisons, exercising administrative activities, in accordance with the principles and
standards set forth in international conventions and legislation on the rights and treatment of
persons detained and sentenced to prison.
By order no. 153 dated 23.05.2014 of the Director General, a working group was set up in the
Directorate General of Prisons in drafting a project proposal for the Council of Ministers for
the promotion and rewarding the work of prisoners. This project aims to regulate some
aspects of the work of prisoners and detainees, relating to their employment through:
1. Ensuring and protecting the rights of inmates and detainees, as to provisions in the
Labour Code.
2. Ensuring the safety rules and health protection during working activity.
3. Ensuring the health and social insurance.
4. Conducting periodic assessments of the needs, capacities and capabilities of prisoners
for work.
5. Conducting periodic assessments of labour market needs, in view also of the
preparation for re-integration.
6. Training and vocational training of prisoners and detainees, in view of employment
and involvement in activities according to the needs of the labour market.
7. Increasing the financial capacity of the prison system to reward the work of prisoners,
in accordance with laws in force.
8. Promoting employment through contractual relations by private entities. Determining
the mechanisms of monitoring and control of working activity in the prison system.
9. Identifying the instruments of cooperation with institutions, mechanisms or other
partners outside the prison system to perform regular monitoring of working activity
in the prison system.
In addition, by order of the Minister of Justice, the Permanent Commission for the
Assessment of Labour Activity in Prisons will be set up. The Commission will be responsible
for monitoring the implementation of labour activity, as well as drafting policies for
promoting employment and remuneration of prisoners in the prison system.
Professional development of the staff
The teaching syllabus and curricula of the Prison Training Centre, is based on the best
experiences of European Union countries, legal and sublegal acts, practical issues of the
Prison System, administrative protocols for the treatment of persons deprived of their liberty,
as well as various recommendations related to evaluation and monitoring reports. The
Cooperation with non-governmental organizations such as the Albanian Helsinki Committee,
the Centre for Rehabilitation of Trauma and Torture, the Conflict Resolution Association, as
well as international organizations such as Save the Children, UNICEF, and many others,
have assisted in improving the programs and modules, responding to the training needs of
staff. During the period May to August 2014 518 employees were trained at all levels.
In cooperation with the Department of Journalism and Communication at the University of
Tirana and “No Limit” Centre, with the support of UNICEF, the “Communication in closed
institutions: prison-family-society” project was implemented. Main objective of this project
was to strengthen the communication and technical capacity of human resources in
scrutinizing various categories of prisoners, such as juveniles, young people, women, etc.
Furthermore, this project aimed at improving skills of the staff in facing positively situations
that arise in daily work, building rehabilitation strategies and social reintegration of these
categories. 66 employees benefited from this training.
In view of the provision of expertise for the improvement of the quality of treatment and to
respect the rights of detainees and prisoners with mental health problems, in cooperation with
the Albanian Helsinki Committee a training of security and psycho-social staff of Durrësi
prison, was organized. A Manual for Multi-disciplinary personnel, regarding the recognition
of symptoms and proper treatment of prisoners with mental health problems, was introduced.
Also, trainings were organized in Elbasani, Peqini and Korça prisons. In total, 110 persons of
multidisciplinary staff participated.
In cooperation with the Albanian Centre for Rehabilitation of Torture and Trauma, a seminar
on proper treatment and social health of persons in conflict with the law, was organized. The
seminar brought into focus the proper treatment of vulnerable groups in the penitentiary
system, such as juveniles, young people aged 18-25 years and persons with mental health
problems. The seminar was attended by 78 persons of health and social care staff.
One day trainings for the implementation of the new law on mental health and CPT
recommendations were organized with the participation of 139 employees, and three weeks
training of basic role employees of Fushë Kruja prison, related to operational duties.
Efforts have made to improve human rights awareness through training. Approximately 60
public order officers received training in the recognition, respect and guarantee the rights of
persons detained and arrested by general patrol service, and proper treatment and respect for
the rights of arrested/detained juveniles. In addition, 130 police officers received training in
regard to prevention of torture and ill-treatment in police stations; and the Council of Europe
provided training for 30 officers on proper treatment of detainees/arrested in police premises.
The European Institute of Tirana conducted training on the recognition and respect of human
rights, of accompanied and arrested persons in police premises for 20 ASP employees.
Development of reintegration activities and rehabilitation programs for persons
deprived of their liberty
The General Directorate of Prisons has recently taken a series of important initiatives and
administrative acts in the field of employment for the persons deprived of their liberty. In the
Mid Term Strategy of Prisons 2014-2017, the establishment of an effective system for
promoting employment and remuneration for work of detainees and prisoners, has been set as
one of the main priorities. Specific measures include:
1. Establishing the Permanent Committee of Assessment of Work in Prisons;
2. Coordinating the activities of state institutions and work with other entities for the
purpose of employment and remuneration rights of detainees and prisoners;
3. Encouraging private initiatives for the employment of prisoners inside and outside the
system;
4. Create opportunities to implement projects in collaboration with the business
community for providing production laboratories or workshops within the
penitentiary system;
5. Promoting research to find solutions and implement contemporary methods of hiring
detainees and prisoners.
For the improvement of treatment of people with mental health problems in the prison
system, a new cooperation agreement between the Ministry of Justice and Ministry of Health,
for the provision of health care, diagnosis and treatment of prisoners in medical institutions
under the Ministry of Health was signed in July 2014. According to the agreement, the
Ministry of Justice and the Ministry of Health, commit to taking the necessary measures for
providing specialized services for the medical treatment of persons deprived of their liberty,
based on fundamental and constitutional rights. By the administrative act 7350/2 dated
18.07.2014 of the Director General of Prisons, an administrative guideline for the
implementation of the new agreement of cooperation was adopted.
Guidelines and protocols have been developed in collaboration with AHC, for the treatment
of these patients, in order to ensure better implementation of the law on mental health and
health service delivery as to European standards.
There was a significant increase in the number of social activities, educational, cultural,
sports and religious activities organized in institutions. On average, per month 92 activities
were organized. For the first time in the penitentiary system, on June 1, 2014, the Judo sport
was introduced. This pilot project started at the Juvenile Institute in Kavaja and the aim is to
introduce this sport also in other institutions where juveniles and young people are
accommodated. This sport is seen as a very effective rehabilitation opportunity, as the sport
of judo by its own specifications, requires more discipline. The juveniles are trained by the
multiple European champion in Judo, Ms. Elena Samoila. Cooperation was made possible by
the Judo Federation and Albanian Olympic Committee.
On 27 June 2014 the newest initiative of Directorate General of Prisons in collaboration with
UNODC, for the implementation of the project “Consultancy and Rehabilitation in Prison
Facilities”, was introduced in Fushë Kruja Prison. Main part of the project, include evaluation
of rehabilitation programs that are currently implemented in penitentiary institutions;
presentation of evaluation findings in a 3-day workshop, attended by senior representatives
from the prison administration, line ministries and other relevant stakeholders; preparation of
a guideline to planning and implementation of rehabilitation programs in prisons; preparation
of a training module and organizing a 4-day training course for senior management of
prisons, on rehabilitation programs.
Strengthening cooperation with the Ombudsman and NGOs
The General Directorate of Prisons has shown utmost commitment to the realization of joint
projects to improve services in the prison system and the treatment of persons deprived of
their liberty. By order of the Director General of Prisons, specific action plans have been
designed to meet the recommendations of the partners, by demonstrating full willing of
cooperation, strengthening and increasing the level of cooperation and full transparency in
the activities of the Directorate General Prisons and its subordinate institutions.
An action plan has been drafted for the implementation of the recommendations of the
Ombudsman. For the period January-July 2014, the Ombudsman has left 113
recommendations, of which 57.5% have been implemented, 15.9% have been not
implemented and 26.6% are in process.
14 cooperation agreements with various organizations that have an active role in the system
approach to contemporary treatment of persons deprived of their liberty have been signed and
are in process of implementation.
The Directorate General of Prisons, in cooperation with the Albanian Helsinki Committee
organized a Conference titled: “Reforming the penitentiary system”. It took place on 2 July
2014. The conference was organized in the framework of a project funded by the EU, for the
introduction of measures taken by the General Directorate of Prisons to reform the
penitentiary system. Also, this conference served as an opportunity to bring together in a
roundtable discussion more than 50 representatives of state institutions, the judiciary, civil
society organizations and academic world to share expertise and experiences for the
development reform of the penitentiary system. One of the commitments of this conference is
the establishment of a permanent working group for the implementation of the measures for
further improvement of the prison system in Albania in close cooperation with justice and
civil society partners.
Strengthening the juvenile justice system
On-going measures have been taken by the General Directorate of Prisons, especially on
implementing adequate programs for the rehabilitation and preparation for integration of
juveniles within and outside of the penitentiary system. The amendments approved to the
Law “On rights and treatment of convicted and pre-trial detainees”, during April 2014,
stipulate that the treatment of juveniles in penitentiary system is based on the best interest of
the child (article 5). Other amendments sanction many principles and rights of the juveniles,
such as:
1. Implementing the re-integration process for juveniles in cooperation the juvenile and
other social workers (article 9);
2. Special attention is given to psycho-social treatment of juveniles in conflict with the
law;
3. Implementation of the individual treatment plan for the juveniles (article 11);
4. Juveniles have the rights to spend up to 3 hours in fresh area, despite the time spend
for education and recreation activities (article 14);
5. Special health care programs and services are given to the juvenile females, according
to their age and gender. Special care is given to the female juveniles that have
experienced physical, sexual and psychological abuse (article 33/1);
6. In cooperation with the juvenile a special cultural, sport and recreative program is
compiled and implemented (article 38);
7. A favourable treatment is implemented for juveniles regarding the telephonic contacts
and family visits (article 41);
8. The physical control for female juveniles is realized by the staff of the same gender
and trained on adequate procedures and methods (article 47);
9. For juveniles is implemented a special disciplinary policy according to their needs
(article 51);
10. Disciplinary policy for the juveniles is based on the principle that the disciplinary
measure serves as the last resolve (article 53).
Treatment of juveniles in conflict with the law reflects their capacity, education,
socioeconomic status, abilities and skills that they posses. For the realization of the social
rehabilitation of juveniles, the penitentiary institutions, have put into place the appropriate
resources, providing so the moral support, vocational training, education, social skills
development, counselling, participation in joint activities and fostering contacts with the
outside world, in order to widen the perspective of social reintegration after release. The
social and psychological staff observes the juveniles personality, in order to assess the
psychological and social needs, abilities and willingness to work and vocational training.
Based on the results of the observation and the personal data, family, social, and the length of
the sentence, the social care staff compiles the detention plan for each juvenile and the
individualized treatment program, which is prepared by a group of specialists consisting of
psychologists, social workers and educators.
The Directorate General of Prisons has cooperated with international agencies operating in
the field of children rights like UNICEF, Save the Children, and has signed agreements with
them just for carrying out educational, sportive and cultural activities, especially for minors,
for which there is a re-integration program after their release from prison.
A new agreement between the Ministry of Education and Sports and the Ministry of Justice
for the development of the educational process in the penitentiary institutions, including the
secondary level of education, was signed. The secondary level education will take place for
minors in conflict with the law, thus creating opportunities of continual educational process,
in case of imprisonment. A guideline for the organization of the educational process is
designed in compliance with this agreement for the institutions where the schools will be
established.
Prevention of torture and inhumane treatment
Supervision of respect for the rights of prisoners is being carried out by specialized
institutions and structures within or outside the prison system. The respect for rights of
prisoners has been continually monitored by the National Mechanism for the Prevention of
Torture, Cruel, Inhuman or Degrading, which is a specialized structure established at the
institution of the Ombudsman.
Also, the General Directorate of Prisons in 2014 has signed 14 cooperation agreements with
non-governmental organizations, which have as their mission the protection of fundamental
freedoms and human rights. These organizations are permitted to carry out inspections of
detention facilities and prisons. Representatives of these organizations are allowed to visit the
premises, observe the relevant documentation, and receive direct contact with inmates
without the presence of police officers.
Referring to statistical indicators in this period, the Prosecutor’s Office registered 19 criminal
proceedings, of which 18 proceedings for the offense "Performing arbitrary actions",
provided for in Article 250 of the Criminal Code and one proceeding for the criminal offence
of "Torture", provided for in Article 86 of the Penal Code. Additionally, during this period
the prosecution has filed charges in court for 3 persons for the criminal offense referred to in
article 250 of the Criminal Code.
Improvement of conditions of persons deprived of their liberty
The General Directorate of Prisons has foreseen other measures in alleviating the
overcrowding in the penitentiary system. Opening of two new penitentiary institutions by
September 2014 in Berati and Fieri, with a total capacity of 880 places, will positively
influence the improvement of conditions in which persons deprived of the liberty are held,
but also the general standards of the prison system.
Also, for the improvement of living conditions and general conditions in prisons, the GDP
has opened the procurement process for the elimination of moisture in Jordan Misja prison in
Tirana, with a total fund of 3 million ALL, and in Burreli prison with a total fund of 2 million
ALL.
In terms of respect for human rights a number of initiatives have facilitated improvements
during the reporting period. The ASP was able to make improvements to the conditions of
detained persons by distributing sleeping material (mattresses, blankets and pillows), a gift of
the Italian State, to all rooms used for long-term detention. General Director of ASP has
established a working group to prepare a strategic plan to improve conditions of detention
premises at Lezha Police Station, and resolve problems of overcrowding and sub-standard
conditions. Plans are being progressed to ensure improvements to Kruja and Fushë Kruja
stations, including a system of security cameras for surveillance and monitoring. Certain
regional police departments have taken measures to improve detention areas, through
refurbishment and redecoration, and installation of bathroom and hygiene facilities.
During the reporting period the ASP General Director approved Order No. 763, amending
and improving rules and procedures for handling and securing persons arrested/detained in
police detention areas. These changes inter alia provide for the right of persons sentenced by
final judgment to imprisonment to meet their family and relatives during their stay in police
premises, prior to transfer to prison; the right to optical glasses in police premises for persons
with vision problems; and the right of mothers to breastfeed while arrested/detained in police
premises. Following from recommendations in reports of the Ombudsman, changes are
planned to the Regional Police Directorate of Durrës, Lezha, Kukës and Dibra, thereby
further improving detention conditions.
Inspections
ASP conducted rigorous inspections of the local police structures of Regional Police
Directorate of Vlora and Shkodra, targeting those support service specialists with obligations
in respect of the rights of detained/arrested persons. As a result disciplinary action was taken
in respect of 7 officers. In addition, the Directorate of Professional Standards of ASP took
disciplinary measures against several ASP officers for infringements on human rights and
fundamental freedoms in Tirana, Durres, Korça and Elbasani.
Developments in the Probation Service
The Instruction of the Minister of Justice “On the setting of the location and territorial
competences of the Local Probation Service Offices” was drafted. Furthermore the Probation
Service has drafted some sublegal acts in implementing the Prime Minister’s Order no. 100
of 21 February 2014 “On approval of the structure and staff structure of the Probation
Service”;
During the reporting period the Probation service took necessary of measures to provide
relevant premises for 10 new local offices respectively for:
 Local Probation Service Office Përmeti;
 Local Probation Service Office Saranda;
 Local Probation Service Office Puka;
 Local Probation Service Office Lushnja;
 Local Probation Service Office Kruja;
 Local Probation Service Office Kavaja;
 Local Probation Service Office Pogradeci;
 Local Probation Service Office Dibra;
 Local Probation Service Office Kurbini;

Local Probation Service Office Tropoja.
Capacity building
During the reporting period the following trainings were organized:
 Training for implementation of the “Risk assessment instrument for the juveniles” for
the employees of the Probation Service, organised by the OSCE presence in Albania;
 Training organised by the Council of Europe in cooperation with the General
Directorate of the Probation Service with the object “Application of sanctions and
measures in community and the role of the Probation Service”
 Training organised by the QSHPLI (Centre of Integrated Legal Services and
Practices) for the employees of the Probation Service in relation to the rights of the
children and friendly techniques of interviewing of children in conflict with the law.
The training was held in three sessions in Tirana, Vlora and Lezha.
23.3.2. Observance of International Human Rights
The Commissioner for Protection from Discrimination
On the period from 1 May 2014 until 15 August 2014, the CPD has handled a total of 129
cases, of these 116 complaints (109 were complaints from individuals and 75 from
organizations with a legitimate interest) and 13 ex-officio.62 63There was a geographic reach
of complaints on alleged discrimination, mainly from municipalities and communes where
the Commissioner has conducted awareness raising activities.
During this period the CPD has issued 63 decisions (53complaints and10 ex-officio). CPD has
found discrimination in 5 cases, non-discrimination on 38 cases, non-discrimination and
recommendation in 2 cases, complaints have not been accepted in 10 cases, proceedings were
interrupted for 1 case (there was no enough information), in 2 cases the procedures are
suspended , in 3 cases has been achieved the purpose for which the investigation had begun,
the applicant has withdrawn the complaint in one case and has given 1 recommendation for
improving the situation, in 1 case the complaint was rejected on procedural grounds For this
period 29 complaints have been submitted to the Commissioner, of which 27 complaints from
individuals (11 females and 18 males) and 2 complaints from organizations with a legitimate
interest. Currently, the CPD is reviewing 74 cases, of which 70 complaints from individuals
and 4 ex-officio cases.
Grounds on which discrimination is alleged are mostly race, health condition, disability and
political beliefs.
62
Remind that during the period July 2012 - September 2013 the number of complaints submitted was 103 and
the number of ex officio investigations 24.
63
Remind that during the period July 2012 - September 2013 the number of complaints submitted was 103 and
the number of ex officio investigations 24.
Proceedings for enforcement of fines imposed by the CPD have started. The Administrative
Court of First Instance in Tirana has issued the first order of execution for the CPD fine
decision. (Case of discrimination on the ground of sexual orientation, through hate speech)
23.3.3 Economic and social rights
Women's rights and gender equality
Gender Equality & Domestic Violence
Domestic violence
In order to increase and strengthen support services for victims of domestic violence a
priority for 2014 has been the establishment and operation of an online system for registration
and monitoring of domestic violence cases. For this purpose on 1 July 2014, MoSWY in
cooperation with the Municipality of Burreli launched the electronic monitoring system in
order to address cases of domestic violence". The activity was supported from the United
Nations Program for Development in Albania (UNDP) and the Swedish government.
During the reporting period the Prosecutor’s Office has investigated with priority registered
proceedings for the crime of "Domestic violence", provided for in Article 130/a, of the
Criminal Code. The statistical data shows that, in this period there is an increase by 31% in
the number of recorded proceedings for this offense, compared with the first three months of
this year, and 5% increase in the number of proceedings sent to court for this offense.
Additionally, it is identified high efficiency in the criminal prosecution for this offense, as
69% of registered cases have been sent in trial.
Children's rights
Establishment and Functioning of the National Council for the Protection of the Rights of the
Child in the central mechanism for protection of child rights
Activities in the field of protection of child rights
 On the occasion of Children`s day, on 1 June 2014, the State Agency for Protection of
Child Rights, in collaboration with the Ministry of Social Welfare and Youth and civil
society organizations, organized several events focusing on rights of children.
 During 27 May - 4 June 2014 SAPCR launched a communications campaign in the
social media on children's rights.
 On 1 June 2014 at the National History Museum an event was organized with the
participation of circa 300 children from different cities of Albania, including children
from residential institutions, disabled children, vulnerable children. The purpose of
this activity was to bring to the attention of the authorities and of the public about
children’s rights through their voice, using different types of media and through
discussions at the event itself. .
 On 27 May 2014 the Parliamentary Commission on Labour, Social Affairs and Health

held a hearing session with a group of children, that presented their reports prepared
in the framework of the UPR mechanism. The meeting was attended by about 30
children involved in the drafting of reports, deputies, representatives of state
institutions and NGOs.
On the 19-th of May, Ministry of Social Welfare and Youth in collaboration with
Swiss Cooperation Office in Albania, ARSIS and GFK, supported by UNICEF and
Save the Children, in the framework of the Reform of Social Services, presented the
findings of the first national study on street children. The data and conclusions found
in the study will serve as a challenge for policy makers in the fight against this
phenomenon.
23.3.4 Respect for and Protection of Minorities, Cultural Rights
Roma
Regarding the collaboration with local government and infrastructure planning:
 14 additional (total 63) self/help activities and informative sessions have been
organized in three regions (Vlora, Berati, Korça) involving community members and
experts on education, housing, employment, social welfare, legal aid, providing
answers and guide to over 200 R/E communities;
 A guidebook on participatory planning and budgeting has been prepared,
accompanied with relevant trainings to 60 Local Government officials in three
regions, followed by preparation of 3 inter-local R/E Community Development Plans
2014-2020. Parts of the working groups were also 6 R/E local experts (3 male and 3
female) that is 2 in each region.
 6 infrastructure interventions identified by R/E CCFs and agreed for co-funding with
LGs are being completed in three regions (kindergarten-health centre-community
centre in Berati; Kindergarten and School Library in Novosela; Road rehabilitations
in Shushica; Rehabilitation of Transitory Centre for Emergencies in Shish Tufina,
Tirana; Construction of community centre and sportive ground in Korça; Intercultural
community centre in Pogradeci). Construction companies have employed several
skilled R/E workers during execution of works. Additional 3 infrastructure project
(Road rehabilitation in Pogradeci, and Road rehabilitation in Morava/Berati; Road
rehabilitation in Vlora) are being negotiated with respective local authorities in three
regions.
23.3.5 Protection of personal data
In the framework of the implementation of the Law no. 9887, dated 10.03.2008 "On
protection of personal data", as amended, the following activities can be reported:
 approval of 4 Instructions,
 adoption of legal opinions for project/legal and sublegal acts addressed at CPDP,
 two cooperation agreements were signed: first with the Order of Albania Pharmacists
and second with the Order of Physicians,
 publication of a leaflet.
Furthermore, on-going support data protection was provided to citizens.
Is reported to the Consultative Committee of the Convention for the Protection of Individuals
regarding the Automatic Processing of Personal Data (T-PD) and in the context of reviewing
the draft/recommendation on the protection of personal data used for employment purposes,
the Authority Commission expressed his approval on revisions made, because in these
revisions were included part of the proposals made earlier your Authority.
51 controls and administrative inspections took place in various public and private controllers
and 10 complaints were handled. At the conclusion of these controls the Commissioner made
35 recommendations.
The Commissioner for Personal Data Protection Authority has started bilateral corporation
with homolog Italian Authority for joint inspections in private controllers in the Republic of
Albania.
During the reporting period the Commissioner approved four guidelines:
 Joint instruction between the Commissioner for Personal Data Protection and the
Ministry of Internal Affairs “Setting the institutions and bodies that receive personal
information from civil service, and the way, type and amount of information they
should take”;
 Instruction No 40 of 13.06.2014 “On the use of internet and official electronic postal
service of the public in situations under the protection of personal data”;
 Instruction No 41 of 13.06.2014 “On the permission of some categories of personal
data for international transfers to a country that does not have an adequate level of
data protection”;
 Instruction No 42 of 22.07.2014 “On the processing of personal data of job
candidates”.
CHAPTER 24: JUSTICE, FREEDOM AND SECURITY
24.1 External Borders
Legislative developments
During the reporting period the following legal acts were adopted:
 Law No 38/2014 of 18.04.2014 “On amendments and addenda to Law No 8663 of
18.9.2000 “On registration, classification, use and control of motor vessels with
tonnage under 20 NT”;
 Decision of Council of Ministers No 321 of 28.05.2014 “On safety at sea, beaches,
inland waters during exercising water sports”;
 Instruction of the Minister of Internal Affairs No 177 of 16.06.2014 “On the
procedures of observation and actions to be taken in cases when the offenses are
carried out by using vessels”.
The statistical data for the period 1 April – 20 August 2014
Good results are reported from border control structures involved in the investigation of
criminal offences. For the period 1 April – 20 August 2014 data are as follows:
 From the structures of border investigation 254 criminal offences with 227
perpetrators were identified, 62 of whom were arrested, 6 detained and 167
prosecuted while on bail;
 194 cases are criminal offences which are object of the investigative structures of
Border Police;
 53 cases are criminal offences, which are not the object of the structures of Border
Police;
 147 wanted persons are arrested;
 26 drug trafficking cases are identified, where 4194 kg of marijuana were seized.
Capacity building
In order to improve the capacities of border control structures, 25 trainings were conducted
during this period where 357 border police officers were trained on a number of topics, such
as:
 leadership and management course;
 Weapons of mass destruction;
 Knowledge on the procedures for the control of a vessel while navigating (approachcontrol-boarding);
 Documents Forgery;
 Specific knowledge of operational maritime communications;
 Stolen vehicles; etc.
For further details on these trainings please refer to Annex 24.1.
Inter - Institutional Maritime Operational Centre (IMOC):
 The number of vessels verified/controlled in the maritime space is 22;
 Three vessels were seized and three operations were conducted against drugs where
48 kg of marijuana were seized;
 10 Research operations – rescue at sea were conducted;
 5 Operations against illegal fishing;
 The Maritime Surveillance System (SIVHD- Radars) is in full working condition;
 The Radio system “TETRA” is functional in the whole maritime space.
The Naval Force
For the period 2 May 2014 to 31 August 2014 there are several positive developments which
give direct impact on the achievement of the objectives of Naval Force.
The increased presence of the Naval Force/ Coast Guard’s patrol ships at this period has
statistically increased the cases where necessary aid was given to the ships, boats and people
in distress sailing in Albanian maritime space.
The regular patrol of the Naval Force/ Coast Guard’s patrol ships has also positively affected
the enforcement of the international and domestic law, especially in the fishery area.
The full capacity operation of the Integrated Sea Space Surveillance System (ISSSS) has
effectively supported the Naval Force/ Coast Guard and other agencies represented in the
IMOC in their law enforcement duties, by giving the maritime situational awareness.
The fourth “ILIRIA” class patrol boat “BUTRINTI” has joined the Albanian Naval Force by
middle of June. The entrance in the service of the patrol boat “BUTRINTI” has increased the
capacities of the Albanian Naval Force.
24.2 Migration
The main activities in the field of migration management for the period 1 May– 20 August
2014 include:
In order to develop the National Profile on Migration, the Order of the Minister of Internal
Affairs No 239 of 15.07.2014 “On set up of the working group for drafting the National
Profile on Migration” was approved.
During the above mentioned period from the Border and Migration Structures 35 operations
were carried out in cooperation with FRONTEX and other EU countries on returning to our
country the Albanian nationals who were residing irregularly in EU countries, respectively:
 From France 31 operations with 255 nationals
 From the United Kingdom 6 operations with 226 nationals
 From Sweden 3 operations with 38 nationals
 From Spain 1 operation with 28 nationals
 From Switzerland 1 operation with 2 nationals
The returning operation of 5 June 2014 was conducted by Albanian Authorities where in
cooperation with France and FRONTEX 48 Albanian nationals were returned. They were
found residing illegally in Schengen zone.
Also, the Border and Migration Structures carried out 16 returning operations to Greece of
157 nationals of different countries who have attempted to pass transit from Greece through
Albanian territory towards other EU countries.
In the framework of implementation of the Readmission Agreement between Albania and
European Union, 7642 Albanian citizens were readmitted from the Schengen zone countries.
In the framework of the institutional obligations for the implementation of the “Reintegration
Strategy of the Albanian citizens returnees and its Action Plan 2010-2015”, the staff in the
border crossing points distributed 7642 leaflets in order to provide useful information to
returnees and to address them to the Regional Employment Offices.
Furthermore the electricity needed was provided for the Closed Centre for Foreigners – in
Karec, through the change of the existing electricity line against a new line of supply.
The module on “The treatment of irregular foreigners” has started to be implemented. The
“Module for treatment of irregular foreigners" is used for all procedures carried out on line
such as:
 Pre-screening;
 Fingerprints and digital picture taking, as well as on-line comparison – issue of these
data by printing them from the system, such as expulsion or removal order;
 “Case reports” including interviews, etc. are deposited online.
Capacity building
A specialized training on “air returning operations” was conducted in cooperation with
FRONTEX experts from 26-31 May 2014 at the premises of Territorial Mobile Unit – Delta
Force, where six escort leaders and 25 escort staff were trained.
Reintegration Process64
As regards legal developments, the labour migration policies are included in the new
draft/strategy for skills and employment 2014-2020 and its action plan. The law on foreigners
and the relevant bylaws has been smoothly implemented.
During the reporting period the Decision of Council of Ministers No 265 of 7.05.2014 “On
the exemption from the obligation to take work permit and work registration certificate for
64
For more detailed information please refer to Chapter 2: Freedom of movement for workers.
the citizens of the Republic of Kosovo and the citizens of the Republic of Serbia of Albanian
ethnicity” was approved.
As part of regional and international policies the work for the extension of the cooperation
between those countries from which there has been a flow of employment in our country will
continue.
24.3 Visa Policy
The main developments on visa policy during this period include:
The Decision of Council of Ministers No 275 of 7.05.2014 “On an addendum to Decision of
Council of Ministers No 513 of 13.06.2013 “On determining the criteria, procedures and
documentation for entry, stay and treatment of foreigners in the Republic of Albania”,
determines that the citizens of the Russian Federation, Moldova, Saudi Arabia, United Arab
Emirates, Qatar, Oman and Kuwait can enter and stay in the Republic of Albania without a
visa for the period 25 May – 30 September 2014for touristic reasons.
ESDP (CSDP)
Approximation of the national legislation with the Security Policy Document of NATO was
one of the main priorities of the reporting period. In the field of classified information, the
amendments to the following Decisions of Council of Ministers were drafted and presented to
the Council of Ministers for approval:
 Decision of Council of Ministers No 121 of 15.03.2001 “On the rules of physical
security of classified information”, as amended by the Decision of Council of
Ministers No 387 of 28.06.2007;
 Decision of Council of Ministers No 380 of 31.05.2000 “On classified information
security “State Secret” in the industrial field”, as amended by Decision of Council of
Ministers No 121 of 2.02.2009;
 Decision of Council of Ministers No 81 of 28.01.2008 “On the determination of the
criteria and procedures on the destruction of classified information “State Secret”.
The drafted legislation on classified information is approximated with the Council Decision
2013/488/EU “On security rules and protection of classified information of EU”. For the
reporting period, the General Security Agreement between the Council of Ministers of the
Republic of Albania and the Government of Bosnia-Herzegovina was signed.
The priority of the Albanian National Security Authority is the start of the negotiations with
the European Union. After Albania was granted the candidate status, the European External
Action Service invited the Albanian National Security Authority to start the negotiations with
the EU in order to conclude a General Security Agreement on mutual exchange and
protection of classified information. It is established that the negotiations will be led by the
Ministry of Foreign Affairs and the representatives of the Albanian National Security
Authority. The negotiations will soon start between parties in Brussels.
24.4 Asylum
The draft law “On Asylum in the Republic of Albania” was approved by the European
Integration Committee in the Albanian Parliament with some changes and is currently under
revision in parliamentary committees. The draft aims at full compliance with the EU acquis.
For information concerning the foreign citizens applying for international protection in
Albania, please refer to annex 24.2
24.5 Police cooperation and fight against organised crime
Legislative developments
The Law No.108/2014 “On the State Police" was approved by the Parliament on July 11th ,
where the establishment of the National Bureau of Investigation as a special structure of the
State Police specialized on investigation of criminal offenses in the field of corruption is
foreseen.
Capacity development
During the period 1 April - 31 August 2014, 20 trainings were conducted in the field of
combating organized crime where 183 police officers were trained.
For a detailed list of trainings please refer to Annex 24.3.
Strengthening of interagency cooperation
In terms of inter-institutional collaboration contacts with representatives of law enforcement
agencies involved in the fight against organized crime and corruption, as prosecution office,
state police, customs, tax, information services, were further increased etc.
In the framework of the Memorandum of Cooperation No. 3095, of 11/11/2013, in May 2014
a joint meeting was held between the Heads of the Prosecutor’s Office of all levels, with the
management of the State Police and Police Directorates in Districts, chaired by the General
Prosecutor, Director General of State Police and the Minister of Internal Affairs. In this
meeting the interagency joint contact points were appointed.
On 30 May and 20 June 2014 monthly joint meetings were organized, respectively, in the
premises of the General Prosecutor’s Office in Gjirokastra (because of the ongoing operation
in Lazarati), where problems were addressed and the joint work of the two institutions was
analyzed, with the aim at enhancing effectiveness in the prevention and suppression of
criminal activity, especially organized crime, economic crime and corruption and sensitive
criminal offences for the Albanian society.
This spirit of cooperation at central level is being extended at local level as well, as
executives of Judicial District Prosecutors’ Offices will hold weekly meetings with Heads of
Police Directorates of the Districts and Heads of Police Commissariats, to discuss and solve
problems encountered in the exercise of criminal procedural functions by prosecutors and
judicial police officers of the State Police, with the aim at increasing efficiency in the
exercise of their functions.
On 12.06.2014 in the premises of the General Prosecutor’s Office meetings with
representatives of all mobile phone companies operating in the country were held, with a
view to find opportunities for delivering as fast as possible the data available from these
companies for the purpose of conducting criminal proceedings.
International Cooperation
The international police cooperation was further intensified during the reporting period.
On 27-28 May 2014, a Conference on chiefs of Criminal Police of Western Balkans,
Romania and Moldova - Task Force was organized with the aim to increase the cooperation
among the countries represented in the conference.
On 6 June 2014 the “Operational Cooperation Agreement between EUROPOL and Republic
of Albania” entered into force. An increase in the exchanged information, including those
that contain personal data, followed this entry in force.
The approval of the “Memorandum of Understanding with EUROPOL” is at the last stages;
the draft was sent for translation and will be officially certified by the Ministry of Justice.
On 17-18 June 2014, a training of the Council of Europe for the Department of Public
Security regarding the procedures of detainees and accompanied persons pursuant to EU
standards was conducted.
The procedures on the successful finalization of the bilateral agreements signature between
countries of the region and other European Countries as well as the implementation of the
existing agreements are on-going.
The following agreements are under preparation:
 Agreement with Montenegro on the establishment and operation of the Joint Police
Cooperation Centre in Murriqani;
 Agreement with Greece on the establishment and operation of the Joint Police
Cooperation Centre;
 Agreement with Montenegro on opening the Joint Border Crossing Point “GrabonZatrijebacka Cijena”.
 Protocol between Albania and Portugal on the implementation of the Readmission
Agreement between Albania and European Union;
 Readmission Protocol with Greece;








Readmission Agreement and Protocol of Implementation with Russian Federation;
Agreement and Protocol of Readmission with Ukraine;
Bilateral Agreement with Serbia and its presentation for adoption;
Bilateral agreements with Bosnia Herzegovina;
Tripartite Agreement among Republic of Albania, Italy and Greece on the fight
against illegal trafficking by sea;
Agreement between Albania and Turkey on the cooperation between law enforcement
institutions;
Agreement between Albania and Slovakia on the cooperation in the field of fight
against organized crime, terrorism, illegal trafficking and other illegal activities.
Joint Protocol with Guardia di Finanzia – Italy on the Air Surveillance with special
aircraft for the identification of cannabis plants.
The following agreements were successfully finalized:
 CEPOL Exchange Program, where five officers of General Directorate were sent to
Poland and also their colleagues came from Poland to Albania. This program was
successfully finalized on May 2014;
 The protocol on the touristic season with Montenegro was signed on 30 May 2014.
Compared to the previous year, the number of patrol police who were sent to
Montenegro increased from 4 to 8;
 The Protocol on Joint patrols on the touristic season 2014 with Kosovo Police was
signed on 28 June 2014.
USA - Homeland Security Department showed the gratitude to the Albanian Police for the
active participation at Global Initiative on the fight against nuclear terrorism activities,
contributing thus in the reinforcement of the cooperation between the two Countries.
During the period 2 May – 20 August 2014, the total number of information exchanged
between the Directorate of International Cooperation (NCB Interpol Tirana, National Police
Office Europol and Liaison Officers of State Police) with the foreign partners is 6,243.
Statistical data of NCB Interpol Tirana for the reporting period are as follow:
 Persons arrested with the view of extradition to our country: 28 nationals;
 Extradited to our country: 15 nationals;
 Persons arrested for extradition to other countries: 31 nationals;
 Extradited to other countries: 28 nationals.
Projects with partners
The Regional Project IPA 2010 “Fight against organized crime and corruption:
Strengthening the Prosecutors' Network” has given a significant result in the work of the
Prosecutor’s Office, under which there are developed series of training courses for
prosecutors and judicial police officers.
PAMECA IV and OPDAT have given a significant contribution to strengthen the fight
against international trafficking, which in respective areas of action have concrete objectives
such as to enhance assistance and cooperation between the Prosecutor’s Office and the State
Police, in connection with investigations on organized crime, serious crime and corruption,
and improvement of the Albanian legislation.
In this context, during this period the General Prosecutor’s Office has given respective
opinions to the Ministry of Justice on the draft law for some amendments and addendums to
the Code of Criminal Procedure, noting inter alia the additions and amendments required in
Chapter X of this Code, jurisdictional relations with foreign authorities, in approach with
international acts ratified by law.
Data of the General Prosecution Office on Fight against organized crime
Serious Crimes Prosecutor’s Office continues to be highly committed in the fight against
organized crime, illegal trafficking and recently also with in fighting corruption. Referring to
the statistical indicators for organized crime and serious crime offences, in the second quarter
of 2014, an increase by 46% in criminal proceedings was identified, compared to the first
quarter of the year.
Referring to the indicators as per concrete offenses in the table below, it is evidenced that the
major specific part (60%) in criminal proceedings recorded is constituted by the offense
"Production and sale of narcotics", provided for in Article 283 of the Criminal Code,
“Trafficking in motor vehicles”, provided for in Article 141/a of the Criminal Code,
constitutes 13% of the recorded proceedings, “Drug trafficking”, provided for in Article
283/a, constitutes 9% of recorded proceedings, “Laundering of proceeds of crime offence”,
provided for in Article 287 constitutes 10% of proceedings recorded and “Trafficking in
weapons”, provided for in Article 278/a constitutes 2% of proceedings registered in the
prosecution for this group of criminal offenses.
Table 1
Criminal offences
Article 109
Article 109/b
Article 110/1
Article 114/b
Article 128/b
Article 138/a
Article 141/a
Article 278/a
Article 282/a
Article 283
Article 283/a
Article 284/a
Article 287
Proceedings
registered
Proceedings
dismissed
1
14
7
1
2
0
66
15
3
307
47
1
48
Proceedings sent to
trial
0
0
2
0
0
0
17
1
0
24
4
0
2
0
4
0
0
1
0
1
0
0
47
27
0
1
Article 230
Article 333/a
Total
1
1
514
0
0
50
0
0
81
For information on trainings of the Prosecutor’s Office please refer to Annex 24.4.
Fight against Trafficking in Human Beings. Update on measures taken during May –
July 2014
New National Strategy and Action Plan on the Fight against Human Trafficking for 20142017:
 With the support of UNODC, the National Anti-trafficking Coordinator and the Antitrafficking Unit conducted several consultation meetings with governmental actors,
civil society and international organizations on drafting the new Strategy and National
Action Plan (NAP) for 2014-2017. The first round of workshops was held on 5-6 May
2014 in Durres. The draft Strategy and NAP has been sent out for approval to all line
ministries and independent institutions before presenting it for final approval in the
Council of Ministers.
Legislative developments:
 The new amended Order of the Prime Minister No 179 “On the establishment of the
State Committee against trafficking in persons” was signed on 19 June 2014. The
membership of the State Committee was expanded with four new members such as
the Ministry of European Integration, Ministry of Urban Development and Tourism,
Ministry of Economic Development, Trade and Entrepreneurship and the Ministry of
Energy and Industry.
 The amended Order No 3799 of 8.07.2014 “On establishment of the Responsible
Authority (RA) for identification, referral, protection and reintegration of victims of
trafficking” is signed by all line Ministries. According to this order the Ministry of
Health, Ministry of Education and Sports and a member of the National Coalition of
Anti-trafficking Shelters are now members of the RA.
Capacity Building:
 On 2 May 2014, the Anti-trafficking Unit, in cooperation with the State Social
Service, organized in Tirana a training session on Standard Operating Procedures
(SPOs) with newly appointed staff of State Social Service Regional Directorates. In
addition, the training focused on the AT legal framework as well as initial and
formal identification of victims/potential victims of human trafficking according to
the SOPs.
 On 4 June 2014, the Deputy Minister/National Coordinator for Anti-Trafficking in
cooperation with IOM organized a training session with Tirana, Durrësi, Shkodra,
Lezha, Kukësi and Dibra RATC-s. The training aimed the empowerment of
Regional Anti-trafficking Committees (RATC) and was also focused on prevention,
identification and assistance of potential victims and victims of trafficking.
 On 3 July 2014 the Office of the National Anti-Trafficking Coordinator supported
by IOM organized a training session with labour inspectors. This training
introduced the anti-trafficking structures in Albania, also it envisaged the important
role that the Inspectorate has in the timely identification and referral of potential
victims and victims of trafficking. Introduction of SOPs was part of the training
module.
Identification and internal trafficking:
 Supported by OSCE, the National Anti-trafficking Coordinator has drafted a
Memorandum of Understanding between the State Police and the State Labour
Inspectorate “On the cooperation procedures for the identification of forced labour
cases and trafficking for labour exploitation”. The aim of the memorandum is
proactive identification and protection of PVTs/VoTs exploited in the labour market.
The MOU is foreseen to be signed in September 2014.
 On 14 July 2014, on the initiative of the National Anti-trafficking Coordinator, a
workshop on “Fighting Internal trafficking of minors; challenges and solutions” took
place. The workshop was organized at the Police Academy with the participation of
the representatives from State Social Service, State Labour Inspectorate, State Police
and General Prosecutor’s Office.
Victims’ support and protection:
 On 16 July 2014, a meeting of the NRM Task Force was held focusing especially on
the mental health issues of victims of trafficking and child registration in the Civil
Registry. On the same day, the Responsible Authority held its meeting to discuss two
concrete cases of potential victims of trafficking presented by the State Social
Service.
 The new Law on State Police stipulates that police should protect victims of human
trafficking who are under real and imminent threat and who are not under witness
protection program. Additionally, the new law contains specific protection measures
for abandoned or runaway children.
 With regard to providing free health care for victims of human trafficking, the
National Anti-trafficking Coordinator has worked closely with the Ministry of Health
on some amendments to the law on Health Insurance Fund. Under recent amendments
to this Law, all victims are entitled to free health care. The costs of this service will
henceforth be covered by the Health Insurance Fund. Health Insurance Fund will
cover costs for medications, medical checks, examinations and medical treatment in
public and private hospitals contracted by the Fund. Victims of human trafficking are
considered as in-need category and under these amendments will continue to benefit
from free health care even after leaving the economic assistance scheme. So far
victims indirectly benefited from the scheme only if they were part of the economic
assistance scheme. The number of victims that today can benefit from the service is
approximately 100 victims per year, but bearing in mind that reintegration and
rehabilitation varies from 6-12 months up to 2 years, the average number of victims
benefiting from this service is estimated to be 200.
Prevention & Awareness rising:
 On 16 June 2014 the Office of the National Coordinator, supported by World Vision
and Vodafone Albania Foundation organized a National Conference to introduce the
new help line for victims of trafficking 116 006 and the Mobile Application “Report!
Save!”. Albania is the first country in the region using modern mobile technology to
address human trafficking, involving public to report suspect cases of trafficking. Any
person can anonymously send short messages through the application or call for free
and anonymously the help line. The message received through this application is
routed to the Responsible Authority for the identification, referral and assistance of
the potential victims and victims of trafficking. The help line is accessible from every
mobile or phone and the application can be downloaded for free from Google play. So
far received 22 calls from the Helpline and 65 text messages from the Application
were received.
Cross-border cooperation:
 On 16 May 2014 the National Anti-trafficking Coordinator organized in Tirana a
joint meeting with the National Coordinator of Montenegro to discuss the draft
Protocol on cooperation in the fight against trafficking in persons between Republic
of Albania and Montenegro.
 On 8 July 2014 the National Coordinator for Anti-trafficking, together with
representatives from responsible state institutions in the field of human trafficking,
participated in a meeting in Montenegro to discuss the final draft Protocol between
the Ministry of Internal Affairs of the Republic of Albania and the General
Secretariat of the Government of Montenegro “On intensifying cooperation in the
fight against trafficking in persons and on the enhanced identification, notification,
referral and voluntary assisted return of victims/potential victims of trafficking “.
 On 28 July 2014 a joint meeting was held with police representatives from Albania,
Serbia, Croatia and Macedonia who were sent to assist MNE POLICE during the
summer season in Budva and other tourist centres. The aim was to train them on
identification of victims of THB and all related issues.
 On 29 July 2014, the National Anti-trafficking Coordinator and the acting director
of AT Unit organized a meeting at the BCP of Murriqani to establish contacts with
police homologue structures, exchange experiences and introduce respective SOPs
on THB.
Task Force on Integral Analysis of Closed THB Cases:
 On 24 July 2014 the Deputy Minister of Internal Affairs/National Anti-trafficking
Coordinator chaired a meeting of the Task Force on Integral Analyses of Closed THB
Cases. The meeting held at the Ministry of Internal Affairs focused on drafting a MoU
on establishment of the TF, approval of amendments to the MoU, the modus operandi
of the TF and the timeframe (2012-2014) in which THB cases will be analyzed by the
Task Force. Serious Crime Prosecution Office and Police representatives agreed on
the cases to be analyzed by the Task Force.
Data on Fight against Illicit Trafficking:
As indicted in Table 2, a total of 176 cases on illegal trafficking were investigated during the
reporting period, 232 perpetrators were denounced and 84 of them were arrested.
Table 2: Data Regarding Illegal Trafficking Cases (1.04.2014 – 31.07.2014)
While
free
Detained
Wanted
Persons
Arrested
Perpetra
tors
Assistance on the illegal border passing
Exploitation of prostitution
Use of premises for prostitution
Trafficking of motor vehicles
Trafficking of arms and ammunition
Trafficking in persons
Trafficking in minors
Trafficking of the works of art and culture
Trafficking of flues and radioactive elements
and explosives
Total
Cases
Criminal offences
25
24
1
88
13
15
5
1
46
38
0
87
25
19
6
3
32
14
0
6
15
7
1
3
1
0
0
0
0
0
0
0
3
2
0
1
0
1
0
0
10
22
0
80
10
11
5
0
4
8
6
0
0
2
176
232
84
1
7
140
The State Police has carried out 16 operations against illicit trafficking, one of them against
trafficking of human beings and immigrant smuggling, and one operation codenamed “HIT”
against the trafficking of motor vehicles conducted in cooperation with SELEC Centre in
Romania, in June 2014, where nine vehicles trafficked in Albania were seized. In all of these
operations 62 persons were prosecuted.
FIGHT AGAINST MONEY LAUNDERING
During the period April – 20 August 2014, for the criminal offence in “Laundering of
Proceeds of Crime or Criminal activity”, Article 287 of the Criminal Code, has identified 74
criminal offences with 88 perpetrators involved, 2 persons arrested, 86 prosecuted while free.
From these 74 cases, 45 cases started based on information from FIU and 29 based on police
information.
Two police operations were carried out. As a result, two perpetrators were prosecuted for the
criminal offence on “Laundering of Proceed of Crime or criminal activity”, Article 287 of the
Criminal Code.
Three proactive investigations with special investigation methods were under way at the end
of the reporting period.
During the period April – 20 August 2014, there were seized as evidence about 947,000
Euros, for the criminal offence of “Laundering of Proceeds of Crime or criminal activity”,
Article 287 of the Criminal Code.
Meetings were held with District Prosecutor Offices of Tirana, Fieri, Durrësi and Lezha on
the joint analysis regarding cases under investigation.
The cooperation with FIU and other institutions is an important part of this sector. During the
period April - July 2014, FIU sent to Police 196 information for investigations, out of which
9 were accompanied with blocking orders.
The cooperation with other institutions was increased due to the Decision of Council of
Ministers No 496 of 1.08.2012 “On defining rules and procedures on exercising the right for
access from national and foreign entities in the electronic system of real estate”. The Real
Estate Registration Office has given the access on the electronic register receiving data
extracts to the employees of Money Laundering sector and Directorate of Financial and
Economic Crime.
As regards the General Directorate for Prevention of Money Laundering (GDPML),
during the reporting period the work focused on data analysis of suspicious cases related to
money laundering and terrorism financing, continuously informing the law enforcement
agencies about its conclusions.
Despite the encountered problems, this year was marked by continuous work and effort,
directed towards the fulfilment of legal obligations to collect, analyse and disseminate to
competent authorities information as well as data related to the activity of laundering of
proceeds of crime.
GDPML, as the Albanian Financial Intelligence Unit, has continued its cooperation and
coordination with the competent authorities both nationally and internationally, with regard to
the prevention and tackling of money laundering and terrorism financing.
At the international level, GDPML participated and provided its contribution in the activities
of the Financial Action Task Force, MONEYVAL Committee of the Council of Europe and
the Egmont Group of the Financial Intelligence Units.
The following table shows the main statistical data regarding the GDPML/FIU work.
Table 3
SUBJECT
Banks
Money services businesses
GDC
GDT
CORIP
Notaries
Bureaus de change
SAR
January 1- July 31 2014
341
51
20
48
7
50
7
SAR
May 1- July 31 2014
172
13
8
45
2
20
4
HIDAA
Accountants
Lawyer
Non-bank, financial institution
Construction company
Vehicle Company
Leasing companies
Other
Total
5
4
2
2
1
3
1
2
544
0
1
1
1
1
3
0
1
272
The following table represents the statistical data regarding the cases disseminated to the
law enforcement agencies.
Table 4
Period
Disseminated to the State Police
Disseminated to Prosecution
TOTAL
January 1- June 30 2014
191
77
268
May 1- June 30 2014
101
38
139
GDPML performs an important role regarding the information provided to the investigations
performed by law enforcement agencies (Prosecution Office, Albanian State Police), in
response to an increased number of requests.
The following table represents the statistical data regarding the requests for information of
the law enforcement agencies to GDPML.
Table 5
Period
1 January – 31 July 2014
Prosecutor’s Office
Albania State Police
No. requests
179
68
No. Persons /Companies
1472
408
The following table represents the statistical data on the exchange of information with our
counterparts:
Table 6
Period
1 January – 31
July 2014
Spontaneous
information’s
Sent
Received
from
from
GDPML counterparts
13
30
Requests
Replies
Sent
from
GDPML
Received
from
counterparts
Sent
from
GDPML
Received
from
counterparts
26
39
47
39
1 May – 31 July
2014
7
7
14
11
15
27
Freezing Orders
Table 7
Period
1 January – 31 July 2014
1 May – 31 July 2014
No of orders
Amount
EUR 7,924,177
(Converted in EUR)
ALL
EUR
20
USD
GBP
33
198,709,035
2,299,827
963,000
25,000
Awareness of the obliged entities and the public for the importance of the fight against
financial crime and the role of the state institutions
In fulfilment of its legal obligations, GDPML has increasingly paid attention to the
enhancement of awareness of the reporting entities, either by organizing meetings with the
subjects of law or with the supervisory/licensing authorities.
Periodical publications at GDPML’s official website have contributed increased awareness of
the applicable legal framework; activities, typologies and standards for the prevention of
money laundering and terrorism financing; reports from international bodies concerning
Albania; persons designated by United Nations as terrorist financiers; the FATF list of
countries with strategic deficiencies in the implementation of standards, etc.
A number of training activities for the subjects were performed in cooperation with the
Ministry of Justice, National Chamber of Notaries, the Bank of Albania, and ABA as well as
on individual basis.
The table below represents data related to trainings conducted:
Table 8
Subject
Bank
Non-bank, financial institution
Bureaus de change
Accountants
Notaries
State institutions (Supervisory
authorities&
reporting
institutions)
Number of persons trained
1 January – 31 July 2014
1 May – 31 July 2014
101
16
48
1
169
71
6
8
1
7
TOTAL
406
22
Legislative developments
Following the adoption of the Law No 157/2013 of 10.10.2013 “On the measures against
terrorism financing”, the Guideline “On establishing the rules and procedures for allowable
expenses on the funds and other seized assets of the designated persons” was approved by the
Minister of Finance in January 2014.
During this period GDPML has continuously updated the changes that the list incurs
according to the decisions of the Committee 1267 of the UNSC, and has proposed the
relevant changes to the Decision of Council of Ministers No 718 of 29.10.2004 “The list of
the persons designated as terrorism financiers”, the amendments were approved in the
Decisions of Council of Ministers No 14 of 15.01.2014, No 37 of 29.01.2014 and No 226 of
23.04.2014 “On some amendments to the Decision of Council of Ministers No 718 of
29.10.2004 “On the list of persons designated as terrorism financers”, as amended.
Criminal Assets indicators (April – 20 August 2014)
During the period April- 20 August 2014, as a result of the properties investigation conducted
by the State Police, 28 materials for the initiation of the proceedings on properties with 31
subjects were referred at the Serious Crime Prosecutor Office.
During the reporting period the cooperation with Serious Crime Prosecution Office on the
properties verification cases was intensified. (In these cases there is no properties referral by
the police because the properties verifications are made in the frame of criminal
proceedings). In this regard, in cooperation with Serious Crime Prosecution Office, two
criminal proceedings were initiated on the properties investigations and 90 subjects and 374
relatives are under verification process.
Seizures
The Court of Serious Crimes has given 4 assets seizure decisions and 1 decision was given
from the Court of Appeal for Serious Crime, from the materials referred or investigated from
the State Police for the period April-July 2014, in the framework of anti-mafia law.
In total there were seized 2 business activities, 11 immovable properties with a surface about
19,799 m2, 10 bank accounts with value of 339,228 Euro and 523,700 ALL. The Court of
Appeal for Serious Crime has upheld the Decisions of the First Instance Court of 2013 for the
seizure of 410,703 Euro and 179,497 USD.
Confiscations
The Appeal Court for Serious Crimes during the period April – July 2014 has given two
Decisions on the asset confiscation, specifically:


seven immovable properties in Durrësi Region with the value of 61,877,472 ALL;
five bank accounts with monetary value of 533,270 Euro;
In total the value of assets confiscated is 975,251 Euro.
Referring to the activity of Agency of Administration of Seized and Confiscated Assets
AASCA, the statistics show that the numbers of assets in administration during the reporting
period increased for assets seized and confiscated pursuant to anti-mafia law. No assets were
seized pursuant the financing of terrorism law.
Overall data until July 2014:
Table 9
Total number of Seized assets
Market Value (in Euro)
84
1,950,000
Seized pursuant to financing of terrorism law:
Table 10
Type
Amount
Market value
Bank accounts
Immovable properties
22
6
80,000 EUR
450,000 EUR
Confiscated assets
Table 11
Confiscated assets
50
Market value
3.000.000 EUR
Type
Bank accounts
Immovable properties
Vehicles
Others
Amount
22
14
9
5
Market Value (in
655,000
2,270,000
30,000
100,000
Euro)
All the monetary assets were invested in Time Deposits. The cost for the ordinary
administration was cut off and the revenues from the renting of the immovable properties
were slightly increased as another immovable property was rented in June 2014.
The Inter-institutional Committee of Experts against Organized Crime in its last meeting
decided to share the confiscated monetary assets according to the anti-mafia law as well as
the Council of Ministers Decisions no. 687/2011 for the following beneficiaries:
 State Budget;


AASCA;
Special Fund.
The amount of every share will be than decided by special order of the Minister of Finance as
well as in the annual budget law that will be drafted in September 2014.
Another very important decision of the Committee is that of donating some confiscated assets
to civil organizations or educational institutions in order to enhance crime prevention and
legal education.
Capacity building
In the framework of the implementation of the Agreement between FBI and General
Directorate of State Police on the “Creation of National DNA Database” from the Directorate
of the Forensic Police were realized as follows:
 Tender procedures for the hardware devices where it will be installed the software
CODIS from the FBI;
 Development of the tender on the purchase of the hardware devices from the MIA and
the announcement of the winners for the purchase of equipment;
 The initiation of the procedures for arrangement of the premises of the Directorate of
Forensic Police where they will be installed the DNA analysis equipment;
 The initiation of the procedures the recruitment of civilian personnel who will work
with CODIS system;
 The development of the procedures for purchasing of the consume materials on the
drug analysis, DNA, colour photographic materials etc;
 Develop procedures for entering into contracts with various firms for equipment
maintenance drug analysis, DNA, electronic microscope, the system Afis, Arsenal.
24.6 Fight against terrorism
During the reporting period, the structures for terrorist acts at GDSP and Serious Crime
Prosecution Office have increased their cooperation in prosecution of criminal offences.
Also, for some specific issues, cooperation with domestic intelligence and antiterrorist
Directorate of the Kosovo Police has increased especially in the exchange of information and
joint operations for controlling and arrest of citizens involved in criminal activities. The
number of cases presented at Prosecution Office has increased.
Related to work of anti-terrorist act sector we can mention following cases:
 The District Court of Elbasani with decision no. 545, of 09.05.2014, has determined
the extent of security “Prison arrest” on a national who is accused for the criminal
offence of “Inciting national, racial or religious hatred or conflict “foreseen by article
265 of Criminal Code.
 During 16.06.2014-30.06.2014, according to the criminal proceeding 183/2013 for the
criminal offence foreseen by Articles 79/b, 22, 25, 278, 283 e 284 of the Criminal
Code in framework of “Lazarati” operation, 18 cases with 23 perpetrators were


referred out of whom 12 are arrested, 1 is prosecuted while free and 10 are declared
wanted.
On 27.06.2014, in cooperation with Anti-terrorism Directorate of Kosovo Police a
citizen was arrested in the framework of the investigation no. 05-DKT-2014 for the
criminal offences as follow:
o Recruitment for Terrorism (Article 139);
o Organizing and Participation in terrorist group (Article 143);
o Promoting hatred, discord or intolerance non-national, racial, religious or
ethnic, (Article 147), of Criminal Code of Kosovo.
On 29.07.2014, an internationally wanted citizen was detained because the Italian
Court with decision no.298/2007 RSG SENT of 08.10.2007 has sentence him with 5
year and 3 months of prisons, for the criminal offences of "Participation in Criminal
Organization", "Person Kidnapping", “Arms robbery” and Acquisition of stolen
Property’, foreseen by Criminal Code of Italy.
Legislative and organisational developments:
The following drafts DCMs are being drafted:
 Draft - Decision of the Council of Ministers “On the functioning of the Interinstitutional Committee for the coordination of actions in the fight against terrorism”;
 The establishment of a specialized unit for pursuing individuals, radical or extremist
groups, as well as the improving of cooperation between law enforcement agencies,
regional and international organizations that are involved in the fight against terrorism
is in process;
 The police structure against terrorism is in a process of reorganising in terms of
raising the human resource capacity and logistical structures. (Deadline is the end of
November 2014).
24.7 Cooperation in the fight against drugs
The General Director of the Albanian State Police approved an Instruction Document
No.631, of 30.04.2014, “On the manner of proceeding by the State Police structures of the
criminal offense provided by Article 283, of the Criminal Code (production and sale of
narcotics)." This instruction document gives some competences to the police commissariats
to pursuit, investigate and arrest the persons involved in sale of narcotics which previously
was a competence only for the narcotics sections. The Instruction Document ensures also the
coordination of the activities to the fight against drugs from these structures.
During this period all the indicators for the fight against drugs increased.
Drug indicators for the period 1 April- 20 August are as follow:
Table 12
Type
No.
cases
of
Solved
Quantity
Perpetrat
ors
Arrested
While
free
Wanted
Heroin
Cocaine
Marijuana
Hashish
Hashish Oil
Cannabis
Seeds
Precursors
Total
26
25
11
10
514
442
2
1
1
1
3
2
0
0
557
481
31 kg
366.9 gr
7 kg
178.6 gr
80729 kg
854.8 gr
22 kg 450
gr
11 litres
154.4 ml
1 kg 738.7
gr
550 litres
36
27
8
1
14
11
3
0
578
293
193
92
2
0
2
0
1
0
0
1
2
2
0
0
0
0
0
0
633
333
206
94
During 1 April – 20 August 2014:
 36 operations with special investigation methods were carried out;
 13 criminal groups were hit for delivering narcotics substances with 51 person
prosecuted;
 6 operations with the use of various forms of international cooperation with Italy,
Greece, USA and Kosovo were carried out.
The operation “Baroni” was one of the most important. This operation was carried out in
cooperation with Kosovo Authorities. During this operation 23 kg of heroin, 7.1 kg of
cocaine, 243 kg of marijuana, 550 litres of acetone and 10 firearms were seized.
There were arrested 21 internationally wanted persons for narcotic trafficking.
Structures of the State Police during the period 10 April – 20 August 2014 continued
implementation of measures pursuant to the Action Plan No. 301, of 03.06.2014 "On
preventing and combating criminal activity of cultivation of narcotic plants”.
In order to intensify the measures for identification, destruction of cultivated narcotic plants,
from General Directorate of State Police the following acts were drafted and sent to local
police enforcement structures;
 Verbal Note No 518/k of 8.05.2014 “On the measures for the cultivation of narcotics
plant cannabis sativa”;
 Order of the General Director of State Police No 726 of 12.05.2014 “On the control of
territory and destruction of narcotics”;
 Verbal Note No 632/k of 10.06.2014 “On the intensification of operational measures
regarding the identification and destruction of cultivated narcotic plants”.
Albanian State Police cooperated with “Guardia Di Finanzia” for the air surveillance of the
territory with special aircraft in compliance with the Joint Protocol with the Ministry of
Interior of Italy.
Italian team has carried out 41 flight missions and identified 715 cultivated parcels with
narcotic plants (cannabis) in the areas of Shkodra, Vlora, Durrësi (Kruja), Tirana and
Gjirokastra. 28,427 cannabis plants were destroyed during the identification of the cultivated
areas with narcotics plant through air surveillance.
The State Police helicopters conducted eight flight missions in Durrësi, Lezha, Tirana and
Vlora and identified 269 parcels planted with cannabis.
402 different activities were carried out across the country. They were dedicated to awareness
of the citizens for the prevention of narcotics plants cultivation.
The General Directorate of State Police drafted and implemented the Operational Plan No
771/1 and No 771/2 of 15.06.2014 “On the capture and arrest of persons who oppose with
arms the police officers on duty, and destruction of parcels with narcotic plants” in Lazarati,
Gjirokastra. On 16.06.2014, the police operation commenced to detain the persons who fired
against the police, wanted persons, and for the destruction of narcotics in this municipality.
The operation in Lazarati continued throughout June and continues during this period. In this
operation were engaged 1,000 police forces of the Mobile Operational Forces from the local
police structures.
The main results of “Lazarati” operation were:
 Destruction of 110,805 narcotic plants;
 Seizure of: 71 tons and 87 kg marijuana, 22 kg and 450 grams Hashish, 11.8 litres of
Hashish oil, 1 kg and 738 g cannabis seeds, 5 kg Heroin;
 Seizure of 318 automatic guns, 27 pistols, 9 grenades launchers, 90 launcher, 35 light
and heavy machine guns, three old firearms, two sniper weapons, one anti-tank
weapon, 29 haunting rifles, one pneumatic gun, four mortars and over 250,000 rounds
of ammunition, explosives, etc.
In this context, based on the acts referred by the State Police, the Serious Crimes Prosecutor’s
Office has registered a criminal proceeding for the offenses of attempted “Murder of State
Police officers”, “Drug trafficking”, “Production and illegal possession of military weapons
and ammunition”, “Manufacture and sale of narcotics” and “Cultivation of narcotic plants”,
as provided for in Articles 79/b-22, 283/a, 278/2/3/4, 283 and 284 of the Criminal Code,
against nine persons under investigation imposing the security measure “Prison custody”.
In the framework of this operation, also, on the basis of referrals of State Police, Judicial
District Prosecutor’s Office of Gjirokastra has registered: 110 proceedings for the crime of
“Production and sale of narcotics”, provided for in Article 283 of the Criminal Code, and 29
proceedings for the crime of “Cultivation of narcotic plants”, provided for in Article 284 of
the Criminal Code, against 27 persons under investigation, for whom it is imposed the
security measure “Prison custody”. Additionally, this Prosecutor’s Office has recorded 28
proceedings related to seizure of arms and ammunition in the operation, for the crime of
“Illegal manufacturing and keeping of military weapons and ammunition”, provided in
Article 278 of the Criminal Code, against 6 persons under investigation, to whom it is
imposed the security measure “Prison custody”.
During the reporting period, nationwide 359,668 narcotic plants were destroyed, 366 cases of
cultivation of cannabis were identified, there were detected the perpetrators for 114 of them,
134 offenders were identified, 63 of them were arrested, 25 prosecuted while on bail and 46
were declared wanted.
Details of cultivation of narcotic plants and destruction according to regions for the period 10
April – 20 August 2014, are as follows:
Table 13
No.
Region
1
Berati
2
Dibra
3
Durrësi
4
Elbasani
5
Fieri
6
Gjirokastra
7
Korça
8
Kukësi
9
Lezha
10
Shkodra
11
Tirana
12
Vlora
TOTAL
No. of
cases
12
15
51
14
62
8
7
10
59
31
97
366
Detected
11
9
9
2
47
4
1
1
9
11
10
114
No.
of
plants
993
1632
50611
1604
172469
1337
4845
1754
83842
8566
32075
359,668
Perpetrat
Arrested
While
ors
Detained
free
15
9
9
2
53
4
2
1
15
14
10
134
12
5
6
2
12
4
2
1
8
6
5
63
Wanted
3
4
2
3
5
4
4
25
1
38
2
4
1
46
During May- July 2014, from the Ministry of Health, as regards the activities in the field of
drugs control, the following activities were carried out:
 The first Albanian General Population Survey on drug exposure is in process and the
field work was concluded by the end of July. Around 4000 questionnaires based on
EMCDDA standards were collected. The work for the analysis of data and
preparation of the report is carried out by an Albanian NGO and the project is
supported by EMCDDA;
 The first national study for size estimation of problematic drug users in Albania has
started; survey instruments are finalized, an international expert visit is carried out (34 July). The contract is signed between IPH and UNODC. The field work is planned
to start by September 2014;
 On 26 June 2014, on the occasion of the International Day against Drug Abuse and Its
Illicit Trafficking, the Ministry of Health, in collaboration with Institute of Public
Health and the General Directorate of Prisons organized a promotional activity on the
premises of the Institution of minors in Kavaja. At the event were present the Deputy
Minister of Health, General Director of Prisons Police, other representatives and
experts from participating and organizing institutions, civil society representatives,
media, etc.
o In her opening speech during the meeting with the minors of Kavaja
Institution, Deputy Minister of Health, conveyed the message through the
slogan launched by UNODC for the ongoing year, "Drug use disorders are
preventable and treatable", stressing among others the risks of drug
phenomenon, especially for adolescents who are in process of formation and
development(both in terms of psycho-physical health, but also in social,
financial, academic, family, morality, etc.), and the importance of preventive
measures, treatment if needed, rehabilitation and social reintegration.
o The activity was followed by a discussion of cognitive information on drugs,
led by health care experts who spoke in more details on drugs (types of drugs,
the drugs most commonly used by young people, their adverse effects, on
prevention, treatment, rehabilitation, social reintegration, etc.). At the event
were also used some other promotional items such as posters, brochures,
leaflets, etc., prepared by the organizers. Lastly, activity was complemented
with dedicated sports activities.
24.8 Judicial cooperation in civil and criminal matters
During the reporting period an increase in the cooperation with counterparts in the
neighbouring countries, members of the European Union and the United States was observed.
In terms of increasing judicial cooperation with foreign authorities, it is worth to mention the
increasing number of requests for judicial assistance to foreign authorities, the number of
subjects arrested for the purpose of extradition, as well as increase of requests on the transfer
of sentenced persons, under the agreements signed during 2013 between the Republic of
Albania and the United Kingdom (UK), and between the Republic of Albania and the
Republic of Kosovo.
During this period, the exchange of information increased on Albanian or foreign nationals
involved in illicit trafficking and serious crime offences.
In particular, it is worth to mention collaboration between the Department of Foreign
Jurisdictional Relations in the General Prosecutor’s Office and the National Central Bureau
Interpol Tirana, in the framework of police operations, as to prevent the commission of
crimes against life and health, as well as to capture criminal organizations involved in drug
trafficking and exploitation of prostitution. Thus, the General Prosecutor’s Office has
responded to the requirements of foreign authorities to identify subjects, users of mobile
telephone numbers, by providing extremely valuable information for police operations.
In the framework of international cooperation, during this period there were realized actions
for the execution of certain rogatory commissions required by the authorities of Belgium,
France, Norway as housing checks, asset verification, bank accounts seizures. These
procedural actions were conducted by the Serious Crimes Prosecutor’s Office in Tirana, in
the presence of foreign authorities’ representatives.
Considering organized crime as a timed challenge, some prosecutors were and continue to be
active in the trainings organized by international partners. Many prosecutors have
participated in regional and international meetings, organized with the aim at intensifying
international judicial cooperation, in the framework of the continuous assistance of the
European Union Project, to increase the capacity of the prosecution in the fight against
organized crime, serious crime and corruption.
The General Prosecutor’s Office is engaged in developing and updating the following:
 Joint Declaration between the General Prosecutor’s Office of the Republic of Albania
and the Ministry of Justice of the Republic of Turkey, signed in Tirana on 12 June
2014;
 Amending and completing the existing Protocol of Cooperation between the General
Prosecutor’s Office of the Republic of Albania and the Public Ministry of the
Republic of Romania;
 Program of Cooperation between the General Prosecutor’s Office of the Republic of
Albania and the General Prosecutor’s Office of the Republic of Azerbaijan;
 Agreement on Cooperation between the General Prosecutor’s Office of the Republic
of Albania and the General Prosecutor’s Office of the Hellenic Republic.
One of the priorities of the Prosecutor’s Office during 2014 is the creation of joint
investigative units, based on the Second Additional Protocol to the European Convention on
Mutual Assistance in Criminal Matters, suggested and agreed upon during the frequent
meetings between representatives of the General Prosecutor’s Office and EUROJUST.
Statistics on the judicial cooperation
Table 14
Period
September 2013 - April 2014
April 2014 - August 2014
Recognition of Criminal Judgments
18 (to)
+
21 (from)
36 (to)
+ 15 (from)
79 (to)
+
95 (from)
61 (to)
+ 90 (from)
respectively
to and from abroad
Extraditions respectively to and
from abroad
Rogatory letters to
and
from
(to) 680 (criminal) and 92 (civil )-
72 (to) civil + 90 (from) civil 425
abroad,
and
civil
(from) - 538 requests (criminal) +
(to) criminal + 285 (from) criminal
in
criminal
matters
109 requests (civil)
Transfers of proceedings
12(to)
Probation Service
27(to)
1(from)
3 (to)
+
4 (from)
6 (to)
Fight against Corruption
In the framework of legal reform, Law “On the Service for Internal Affairs and Complaints,
at the Ministry of Internal Affairs” was approved by the Parliament on 17 July 2014.
Entry into force of this law and its implementation through bylaws will be completed in the
period of 3 months from the publication in the Official Journal of this new law.
Activity of ICS investigation structure
During the reporting period, from investigation structures, based on information activity,
administration, scrutinise of complains of citizens and preliminary investigation, the
following cases were sent to the prosecution officers:
 49 criminal cases, out of which:
 47 police employees of which, 2 police employees of high level,14police employees
of the first line supervision,27 police employees of operational level, 4 civilian
employees
 2 citizens
In custody, 14 persons of which two police employees of the first line supervision, 11 police
employees of operational level and one citizen.
Compared statistics for period May - July 2013 and May - July 2014, as the table below:
Statistics for criminal cases with all components
Table 15
Level
spot
Arrested in
Citizens
civilian
Operational
First line of
management
Middle
management
High
employees
No. of police
cases
No. of criminal
Period
May –
July
17
18
-
-
7
10
1
-
-
48
47
2
-
14
27
4
2
14
2013
May –
July
2014
Compared statistics for criminal cases based on the number of criminal cases and
number of employees
Table 16
Period
May – July 2013
May – July 2014
Comparative
No. of criminal cases
17
48
2.8 times more
No. of employees
18
47
2.6 times more
Compared statistics for criminal cases based on types of criminal offences (corruption
offences)
Table 17
Period
No. of criminal cases
No. of employees
May – July 2013
May – July 2014
8
8
Comparative
35
38
4.3 times more
4.7 times more
The activity of Inspection structures of ICS (with object the evaluation of performances of
State Police structures in compliance with requested standards and legislation, to guarantee
their responsibility, effectiveness and efficiency)
During the reporting period, inspection structures of ICS have conducted eight inspections of
which, one ordinary inspection and seven inspections out of order.
During this reporting period, from inspection structures of ICS to the police structures subject
to inspect are:
 suggested the beginning of discipline proceedings for 25 police officers;
 suggesting the beginning of a criminal investigation for 3 police officers;
 suggested re-evaluation of admission procedures, appointment, readmission for 58
police officers.
Inspection reports are accompanied with conclusions, recommendations for improvement.
CHAPTER 25: SCIENCE AND RESEARCH
Key achievements
In order to address the obligations stemming from Article 109 of the SAA, the Ministry of
Education and Sport (MES) and the Agency for Research, Technology and Innovation
(ARTI) have taken further actions to stimulate research and innovation. To implement shortterm priorities of the National Plan for European Integration 2014 – 2020 (NPEI), the MES
and the ARTI have focused on the promotion of the EU’s research framework programme
Horizon 2020. Furthermore, the ARTI participated in the drafting of various project proposals
to be submitted to the Horizon 2020 programme.
25.1 Science and Research
On 1 July 2014 the Minister of Education and Sport signed the agreement for Albania’s
participation to the Horizon 2020: The EU framework Programme for Research and
Innovation 2014 – 2020. Albania ratified this agreement in August 2014. Following a
negotiation concerning the detailed cost-benefit analysis of Albania’s experience into the EU
seventh research framework programme (FP7), and other previous framework programmes in
the area of scientific research, Albania settled a reduction of 80% on the participation fee. In
the framework of the Horizon 2020 programme, the MES and the ARTI will coordinate and
assist research projects and cooperation initiatives among national and international
researchers.
To increase the participation of Albanian applicants in the Horizon 2020 programme, the
MES organized the following events:
 On 1 – 2 July 2014, the MES, in collaboration with TAIEX, organized the informative
workshop “Horizon 2020: The EU Framework Programme for Research and
Innovation”. Representatives of the MES, the ARTI, the Albanian public and private
universities and the Academy of Sciences were in attendance.
 On 25 July 2014, the MES organized a meeting with the Horizon 2020 National
Contact Points (NCPs) for Albania. This event aimed to emphasize the role of NCPs
as key promoters of national stakeholders’ participation in the Horizon 2020
programme.
Within the framework of the Horizon 2020 programme:
 ARTI, in cooperation with national NGOs concerned with the development and
promotion of human capital, social services, legal assistance and integration of
vulnerable groups, drafted the “Scientific support for the development of thermal
waters and mud, and the internationalization of regional development in the country
within a European Perspective” project,. The Innovation for Development and SouthSouth (IDEASS) International Cooperation also participated in devising this project.
The project will be submitted following the Horizon 2020 programme’s call for
applications.

ARTI prepared a project proposal and a working plan for the “Albnano” project. The
latter is a cooperation initiative between the Catalan Institute of Nanoscience and
Nanotechnology (ICN2), the MES, the Ministry of Innovation and Public
Administration (MIPA), the Agricultural University of Tirana, the Polytechnic
University of Tirana, the Faculty of Natural Sciences and the ARTI. The project
proposal will be submitted on 19 September 2014, following the Horizon 2020
programme’s call for applications.
In order to increase public awareness, during May – August 2014, the ARTI continued to
promote the Horizon 2020 programme through the “Informative Days” events organized at
“Eqerem Çabej” University in Gjirokastra, and at the Institute of Geosciences, Energy, Water
an Environment in Tirana.
In the area of innovation and research, on 20 May 2014, the ARTI, in collaboration with
UNDP Albania, IDEASS International Cooperation, and other national NGOs, launched the
“Catalogue of Albanian Innovations for Humankind”. The event was presented during the
Innovation Week and was attended by project proposing researchers and representatives of
line ministries.
In May 2014, the ARTI informed all universities and other public and private research
institutions on the Protocol on Scientific Cooperation with Austria (signed in April 2014).
The first calls for cooperation were announced. Moreover, the ARTI has provided assistance
to researchers interested to cooperate within the framework of this protocol.
On 3 June 2014, the European Enterprise Network Albania (EEN Albania) consortium 65 ,
delivered a request for the continuation of the EEN Albania project to EEN headquarters.
In order to address obligations stemming from the NPEI, the ARTI is drafting the National
Research Strategy 2016 – 2020, which is planned to be adopted in 2015.
The ARTI continues to finance projects within the framework of the “National Projects for
Research and Innovation 2010 – 2014”. The latter innovation projects are in their final
phases, and tackle issues in the following areas:
 Production of new certified olive seedling;
 Production of high quality potable water through new technology;
 Production of certain varieties of mushrooms;
 Environment protection and public health;
 Presentation of new IT work programmes; and
 Experimental laboratories for higher education institutions.
Conclusions
65
EEN Albania is composed by the Albanian Investment Development Agency, the ARTI, the Agency for
Research and Development, the Centre for the Promotion of Competition, and the Chamber of Commerce and
Industry.
Albania has increased efforts for successful participation in the EU’s research framework
programme Horizon 2020. The ARTI is focusing on the participation of Albanian researchers
in the scientific cooperation with Austria, while assisting the successful finalization of
projects pertaining to the “National Projects for Research and Innovation 2010 – 2014”.
CHAPTER 26: EDUCATION AND CULTURE
Key achievements
In the process of implementation of the Law for pre-university education in the Republic of
Albania, several initiatives were undertaken, such as revision of curricula in education
institutions of basic education in pre-university system and pre-school attendance of Roma
children. In higher education, the Excellence Fund was established for financing excellent
students and civil servants, as well suspension or removal of the licenses of several private
institutions of higher education.
In the area of pre-university education, following legal acts were approved during reporting
period:
 Order No 323 of 7.08.2014 “On piloting the new curriculum in educational
institutions of basic education in Secondary Education”;
 Instruction No 21 of 8.08.2014 “On the growth of pre-school attendance of Roma
children”.
On 3 June 2014, a Cooperation Agreement between the Ministry of Education and Sports of
the Republic of Albania and the Ministry of Education, Science and Technology of the
Republic of Kosovo has been signed, thus establishing the fundamental legal basis for the
unification process.
The new curricula of the pre-university education system would enable key competences
comparable to the competences of European framework. The Order No 323 of 7.08.2014 “On
piloting the new curriculum in educational institutions of basic education in secondary
education” represents the beginning of the curricular reform in educational institutions of
basic education in the pre-university system (PUES). The new curriculum will be conducted
in the 1st and 6th grades, in several schools of basic education defined by RED/EO (Regional
Education Directorates/Educational Office). MoES has undertaken all appropriate
methodological and organizational measures to start implementing the new curriculum in the
pre-university education through a programme elaborated purposely to this goal.
During May-July, 2014 the public consultation process took place through surveys and
opinion gathering from all interest groups regarding the values and problematic issues
encountered in the school texts for pre-university education in use. At the end of the process,
the scientific, linguistic and methodological remarks were administered and the number of
titles in use during school year 2014-2015 was reduced by 120, compared to school year
2013-2014. A group of experts at MES is working to draft the new law for texts which will
clarify and define the programmes but also the number of texts with which Albanians will
learn. MES for the first time started the process of national assessment of pupil’s
achievement in basic education and aims to extend its application at all levels of education
system in the future. In May 2014 the second phase of national assessment with championing
of about 3,000 pupils of third and 3,500 pupils of fifth classes (or 10% of the total number of
pupils of these classes of basic education) was computed.
The Ethics Code was prepared and is expected to be approved by the Minister of Education
and Sports within November 2014. The Code of Ethics is addressed to pupils, teachers and
school communities. It aims to support all actors in their attempts to build a professional and
effective learning environment. The Performance Chart of Schools and respective guidance
was piloted in 12 schools of 8 RED/EO where 15,200 pupils and 925 teachers benefitted.
During school year 2014-2015 this Chart will be enforced in every school. Its enforcement
enables schools with a standard document for assessment of their work, develops internal and
external assessment processes of the school, increases school transparency and brings it
nearer to the community as well as guarantees safety for teachers and school directors’
career.
MoES finalized the State Matura (State Maturity Exams) in June 2014 re-establishing
confidence and marking a new standard of communication, administration and merit based
assessment. Success was achieved also due to the promotion of State Matura novelties;
selection of tests through digital technology what brought security and quality in test drafting;
defining prior to correction of the cut off (20% of the total points) and by rigorous
supervision of tests. Foreign language was introduced as a State Matura exam based on
European Standards defined by the Council of Europe. In cooperation with international
institutions in the area of professional development of foreign language teachers, 1,110
teachers are trained in French, English, German and Italian languages. 30 of them are trained
as drafters of State Matura exams.
During academic year 2013-2014, 134 Roma and Egyptian children more were registered
compared to academic year 2012-2013. Preparatory classes were attended by 136 Roma
children or 66% more than a year ago. For the first time 93 Roma and Egyptian teachers were
identified graduated for teaching, from which 86% of them are employed in the system (80
teachers). With UNICEF support, we have presented and will support the enforcement of the
initiative “Every Roma child in Kindergarten”.
In the project “Regional support for inclusive education” seven schools are included at
national level. 65 teachers and representatives of parents advisory boards are drafting and
implementing several projects like: “School – the place for integration and inclusiveness”,
“Professional education, a great chance for inclusiveness”, “We can be different but deserve
equal education chances” etc.
In framework of the initiative for digitalization of the pre-university education system, so far
the following activities are undertaken:
1. Piloting into several schools of the electronic register system which substantially
improves the parent-teacher-pupil relationship by creating the necessary spaces for
information in time of the pupil’s results.
2. The piloting in two high schools of the digital learning with the support of donors,
opening in this way a new epoch towards improvement of the teaching and learning
process by means of ICT.
3. Training of 3,000 coordinators for using the EMIS system and coordination of
activities to generate data into a common database of pre-university public and private
system. Actually in five RED/EU has finished the generation of data at two levels of
the pre-university system.
4. Coordination with partners to improve the work of the system and interaction of the
database of the electronic system.
Smart Classroom is the newest reality for pupils of pre-university education schools in the
country. This concept includes the creation of a class appointed with the necessary digital
equipment that enables a high performance in teaching and learning process. Intelligent
classroom makes school more attractive for pupils increasing work in group by interaction at
real time with teachers and pupils.
During the period April-July 2014, the National Exam Agency (NAE) has successfully
finalized the state exams offering public guarantee for responsibilities associated to the
exercise of a regulated profession. The process of work and public transparency has been
improved regarding the testing of knowledge of the candidate that wants to exercise a
regulated profession.
The Directorate of State Exams, in May 2014, organized state exams for 2,131 candidates
registered to take these tests despite registrations, 82% of candidates participated in these
exams, from which only 55% managed to successfully pass. Highest success rate in state
exams is observed for: logopedist, general medicine and physiotherapy. The following table
presents more details.
Profession
Pharmacy
Physiothera
pist
Imagery
Nurse
Logopedist
Midwife
General
Medicine
Dentist
Lab
Technician
Total
Registered
Participated
Successful
Not
Successful
Not
(in %)
successful
successful
(in %)
187
148
65
44
83
56
74
67
1,265
7
190
60
53
1,039
5
158
47
35
490
5
108
78
66
47
100
68
13
18
549
0
50
22
34
53
0
32
95
171
84
154
79
103
94
67
5
51
6
33
75
54
41
76
13
24
2,131
1,755
973
55
782
45
During the first three weeks of July 2014 state exams for teachers were organized. 1,091
candidates registered at RED/EO for these exams in the profiles of: English, Italian, French,
German, Albanian Language and Literature, social sciences, history, geography, historygeography, math, physics, math-physics, informatics, math-informatics, chemistry, biology,
biology-chemistry, physical education, visual arts, music, basic education, and history-
geography-citizenship. Out of the total number of candidates registered at RED/EO, 898
candidates participated at state exams at national level, 59.35% of which (533 candidates)
were qualified as successful candidates in state exams in profiles of teaching.
In conformity with Professional European Chart, the process of state exams predicts
protective measures regarding rights of the candidates for the development of the process,
follow up of complaint procedures and for protection of candidate’s data. Only during the
period of May-June 70 cases of complaints are processed guaranteeing therefore these rights.
NAE has deepened the cooperation and coordination with the Professional Orders, the
Regional Education Directorates and central institutions increasing responsibility and
precision in each procedure and information issued and guaranteeing equality in assessment
of candidates at national level by verifying their necessary professional abilities by specifics
of each profession.
On higher education, the following legal acts were approved during the reporting period:
 Decision of Council of Ministers No 483 of 16.07.2014 “On the financial support
excellent students and civil servants of the state administration (Excellence Fund)”;
 Decision of Council of Ministers No 517 of 1.08.2014 “On receiving quotas to fulltime students at public institutions of higher education, in the first cycle of studies in
non-university professional study programs and integrated programs of the second
cycle, tuition and fees for the academic year 2014 – 2015”;
 Decision of Council of Ministers No 539 of 6.08.2014 “On the removal of the license
of several private institutions of higher education”;
 Decision of Council of Ministers No 540 of 6.08.2014 “On the suspension of the
activity of several private institutions of higher education”.
The Commission for the Reform in Higher Education, created in January 2014, presented on
April 29, 2014 the first report on reforming of higher education and scientific research in
Albania. During the whole month of May, the commission organized eighteen public
meetings to discuss and gather suggestions by all interest groups and stakeholders of higher
education in public and non-public HEI. Following the discussion period the Commission
was summoned to reflect on the suggestions gathered and came up with a final report
proposing to the government the necessary changes of higher education and scientific
research law in Albania.
On 7 July 2014, the Commission presented the white paper that will serve as a basis for
undertaking of further steps for higher education reform and for drafting/filling in the legal
framework in support of the reform. The reform predicts several structural changes such as
for instance: the creation of the National Agency for Funding of Higher Education. The aim
of this agency will be to distribute public funds regarding: teaching grants, research and
scientific work, development of HE, support for the study credit scheme.
In compliance with Order of Prime Minister No 97 of 21.02.2014 “On the approval of the
structure and organics of the State Education Inspectorate (SEI)” for the first time the sector
for inspection in higher education institutions was opened within SEI. This sector conducts
monitoring and assures the quality in higher education sector.
The Minister of Education and Sport based on Article 64 “Control of legality” of Law No
9741 of 21.05.2007 “On higher education in the Republic of Albania” as amended, issued
Order No 106 of 28.03.2014 “On conducting inspections of control of enforcement of legal
criteria in public and private Higher Education Institutions”. In compliance with this Order
several sub-working groups were established with representatives from MES, APAAL, and
SIE. During the period May-July 2014 these groups conducted for the first time a
transparency and control process regarding verification of legal criteria (VLC) in (15) public
and (44) private higher education institutions of the Republic of Albania. During the control
process several institutions were found in breach of law. A final report was drafted for each
higher education institution that reflects in a detail all breaches and irregularities observed.
Based on this information, the Ministry of Education and Sport proposed concrete measures
that range from conditionality or recommendations for improvement of criteria for
continuance of their activity, to revocation of license or closure of the institution. Proposals
for concrete measures were accompanied by the drafting of necessary respective bylaws that
predict also the procedures to be followed by each higher education institution for removal or
suspension of license and for ensuring viability for transfer of studies in other institutions for
affected students.
More concretely the following measures were proposed:
 Conditions and recommendations for improvement of criteria for 13 private HEI;
 Removal of license for 18 private HEI;
 Closure of one public HEI;
 Closure of six branches of four public HEI;
 Quota reduction for some study programmes;
 Suspension of acceptance in the first cycle of studies.
MES has closed preliminary assessment of HEI creating therefore the necessary conditions
for starting the work for their accreditation by means of foreign agency member of ENQA
that is contracted to conduct assessment of quality and ranking of all Albanian HEI public
and private ones.
The legal framework on registration of students for the new academic year 2014-2015 in
public HEI is drafted which includes quota, tariffs etc. Part of this process is also admission
of vulnerable groups, groups in need, persons with limited capacities and ethnic minorities.
This year two specific categories are also included: paraplegic/tetraplegic invalids and
orphans to enable them special access to higher education. For academic year 2014-2015,
19,166 quota are approved, 2,384 less than the requests made by universities. This decision
for reducing quotas, aiming at increasing the quality in higher education institutions, was
taken considering:
 University requests based on their hosting capacities.
 Analysis of the programmes with a lower number of registered students for academic
year 2013-2014.
 Analysis of programmes with low performance during academic year 2013-2014. For
study programmes for which average of registered students was lower than 5.5 during
academic year 2013-2014 no quota have been accorded for this academic year.

The findings of inspections conducted in HEI within the framework of verifying
legality criteria. No quota for the programmes that presented severe breaches or
serious lack of capacities.
This year a slight rise of tuition fees has been approved, but at a lower level than HEI
requests for study programmes.
In June 2014, MES signed with the European Commission the agreement for Albania’s
participation in Erasmus + the EU Programme for education, training youth and sports.
Further legal steps are followed regarding ratification of this agreement. By participating in
this programme MES aims to benefit support in reforming of education policies and to
benefit as a partner country in external activities in higher education and youth mobility.
On 16 July 2014, Decision of Council of Ministers No 483 “On the financial support of
excellent students and civil servants of state administration (Excellence Fund)” was
approved. The Albanian Government is contributing with a fund of 150 million ALL, for
financial support of Albanian excellent students admitted to conduct first cycle, second cycle
and third cycle of studying in best world universities (according to the ranking by Times
Higher Education “World Ranking of Universities” for the last year), as well as for civil
servants of state administration. Students and PhD candidates that will benefit scholarship
from the Fund of Excellence and that will attend the best world universities, are obliged that
after completion of their studies to work for three years in Albania. Civil servants have to
serve four years in public administration.
On sports, during May-August 2014 work has been conducted regarding improvement of
infrastructure. One of the main initiatives is the re-construction of “Ruzhdi Bizhuta” Stadium
in Elbasani by means of a government and AFF funding where the fund granted by MES
amounts to 444 ALL. The works are predicted to be completed this autumn and prelude an in
depth reconstruction and transformation of the object, respecting all UEFA criteria. The
project of the National Sport Centre “Tirana Olympic Park” is completed (another initiative
regarding improvement of sport infrastructure) creating an object appointed by contemporary
sport infrastructure. In partnership with national or international organizations, like the Dutch
foundation “Sport for children”, the Albanian Football Federation, European Volleyball
Federation etc, work is on the way regarding improvement of infrastructure and material
basis for sport in education institutions aiming to improve teaching quality.
By Order of Minister No 263 of 12.06.2014 “On establishing the experts group to prepare the
draft-law on reviewing of the Law on Sports No 9376 of 21.04.2005” the working group is
established. The expected result includes several directions mainly reforming of the new
financial scheme to enable increase of efficiency for the use and monitoring of the sports
structures as a necessity to create the optimal conditions for self-financial support of the
whole sport system. Definition of the status of elite sportsmen and creation of facilities
regarding employment, health insurance, life insurance, schooling and specific pensions’
award, will increase the number of elite sportsmen, will support present elite sportsmen as the
elite of Albanian sport. The non-politicized formation of the Council of Sports Experts and
National Commission against Violence is also defined.
During the reporting period, 15 Anti-Doping tests were performed by means of a project
financed by World Anti-Doping Agency (WADA). All tests resulted negative.
Sport in education institutions: The platform for development of physical education and sport
in education institutions is drafted and three hours of physical education are set in the plan of
physical education. This increase will start to be applied during school year 2014-2014 in all
three education levels (basic, low high school and high school).
By means of these initiatives we aim to increase quality of sports teaching in pre-university
education, to create the conditions for better health of pupils, to distinguish sport talents and
to encourage elite sport. These will enable increase of number of persons employed in
education system.
CHAPTER 27: ENVIRONMENT AND CLIMATE CHANGE
Key achievements
In order to further improve the progress achieved in several fields of environment, as well as
to address the remarks of the EC Progress Report 2013, recommendations of 4th EU –Albania
Sub-Committee Meeting “Transport, Energy, Environment and Regional Development” and
the obligations undertaken at the National Plan for European Integration 2014 –2020 (NPEI
2014 –2020), during May –August 2014, the Ministry of Environment (MoE) has taken
concrete actions which have had an impact on the approximation and implementation of the
environmental legislation in Albania.
Progress has been achieved in the approximation of the national legislation with the EU
environmental acquis. All this legislation aims at the approximation of the Albanian law with
respective EU Directives in the field of environment.
27.1 Horizontal Legislation
27.1.1 Legal Approximation
As regards horizontal legislation, Law No. 10440 of 7.07.2011 “On environmental impact
assessment” and Law No. 10448 of 14.07.2011 “On environmental permits” entered into
force in February 2013. Given that, certain difficulties were encountered during their
implementation, the MoE has taken several measures to enhance implementation of these two
laws:
 Law No 60/2014 “On one amendment to the Law No 10448 of 14.07.2011 “On
environmental permits””. This amendment, which deals with the revision of the
Appendix I to the Law No 10448 of 14.07.2011 “On environmental permits”, clarifies
and details activities/installations that should be equipped with the Environmental
Permits Type A, B and C. This law entered into force on 11 July 2014;
 Decision of Council of Ministers No 419 of 25.06.2014 “On the determination of
specific requirements, conditions and rules for the review of environmental permits
type A, B and C, for the transfer of environmental permits, for the conditions of
environmental permits and the detailed rules for the review by the competent
authorities till the issuance of the permits from National Licensing Centre (NLC)”,
which partially approximates Albanian law with the European Parliament and Council
Directive 2010/75/EU of 24 November 2010 on industrial emissions (integrated
pollution prevention and control). This DCM determines the rules, timeframes and the
responsible institutions in the environmental permits procedure. This DCM entered
into force on 09 July 2014 and is also foreseen in NPEI 2014 - 2020;
 To properly ensure public access to information and participation in decision making
is adopted Decision of Council of Ministers No 247 of 30.04.2014 “On approval of
rules, requirements and procedures for informing and involving the public in
environmental decision-making”, which partially approximates Albanian law with
Directive 2011/92/EU. Another goal of this DCM is to fully align the Albanian
legislation with the requirements of the Aarhus Convention “On Access to


Information, Public Participation in Decision-Making and Access to Justice in
Environmental Matters”. It entered into force on 12 May 2014 and is also foreseen in
the NPEI 2014 - 2020.
Amendments to Law No 10440 of 7.07.2011 “On environmental impact assessment”,
to overcome the procedural problems regarding EIA procedures, arising from the
existing Law. It aims to fully approximate the European Parliament and Council
Directive 2011/92/EU of 13 December 2011 on the assessment of the effects of
certain public and private projects on the environment. After the adoption of these
amendments the EIA requests will not be submitted to the NLC, but directly to the
National Environment Agency (NEA). The draft Law is approved by the Council of
Ministers and is submitted to the Parliament to be discussed in the Parliamentary
Commissions. The draft Law is foreseen to be adopted in September 2014;
Draft Guidance “On the approval of National Methodology of EIA process” is
prepared and will be adopted by the end of 2014. It is also foreseen in the NPEI 2014
- 2020.
27.1.2 Administrative Capacities
In order to further improve administrative capacities of local authorities and other agencies,
as well as with the aim to improve public participation in environmental decision-making
process, MoE has organized two training workshops as follows:
 Based on the MoUs between the MoE and Prefectures, have continued the trainings
on SEA, Integrated Waste Management and Aarhus Convention for the local
authority/government staff. During the reporting period, the following trainings took
place: Berati 6 May, Vlora 15 May, Kukësi 21 May, Gjirokastra 28 May, Korça 11
June, Dibra 25 July.
 Workshop on “Environmental crime and strengthening border control, through
cooperation among environmental agencies”, on 23 May 2014.
27.1.3 Other Activities
In order to improve the enforcement of law, the Environmental Inspectorate has taken several
measures as follows:
 500 inspections regarding the management of urban waste are carried out. For the
violations found are given 132 sentences with fine to the mayors, with a total value of
471,428 € (1 Euro = 140 ALL);
 14 sentences with fine are given to the activities that generate noise, with a total value
of 5,000 €;
 In total, the Environmental Inspectorate has carried out 3552 environmental
inspections. Regarding the violations for failing to compliance, violations of
conditions of the environmental permit and failure to liabilities arising from
environmental legislation, Environmental Inspectorate has given 161 sentences with
fine, with a total value of 530,571 €.
The MoE has continued its efforts to improve work in the field of public information and
consultation in environmental decision-making process, based on 2013 Progress Report
recommendations.
I.
Raising Public Awareness:
 Electronic distribution to hundreds of recipients of the weekly and monthly
Environmental Bulletin;
 Environmental Film Festival in Albania, organized in cooperation with the EU
Delegation, 17 –24 May 2014, along with a series of other activities in the frame of
the International Day for Biological Diversity in various cities;
 Numerous activities in the frame of the World Environmental Day, 5 June 2014:
inauguration of the new rehabilitation & reforestation project in Koder Vile (Durres),
promotional activities in Tirana by environmental NGOs, etc.
II. Environmental Education:
 A first time preparation of a policy draft document of National Program for
Environmental Education, submitted for comments to international organizations with
either previous experience or expertise in the field, such as Regional Environmental
Centre (REC) & UNICEF. It will be submitted to the Ministry of Education and
Sports and Institute of Educational Development in the coming months for comments
and future joint implementation.
III. Public participation in decision-making with respect to new legislation:
Public hearings on the following drafts of legislation took place:
 On Draft DCM “On approval of specific conditions, supporting documents, validity
period, authorization and permit application forms, vetting and decision-making
procedures, as well as authorization and permit templates for use of water resources”,
21 May 2014;
 On Draft DCM “On rules, responsibilities and time limits for environmental impact
assessment procedures”, 8 July 2014.
IV. Public involvement in planning and drafting development programs and plans,
realized through public consultation & round tables on:
 Building resilience in Kune-Vain Lagoon through ecosystem adaptation, 6 May 2014;
 Draft Regional Waste Management Plan for Fier, 21 May 2014;
 Draft Management Plan for Protected Landscape “Potholed Mountain –BizëMartanesh”, 10 June 2014.
27.2 Air Quality
27.2.1 Legal Approximation
During the reporting period, the Draft Law “On protection of ambient air quality” was
approved by DCM No. 316 of 28.05.2014. It was submitted to the Parliament to be discussed
in the Parliamentary Commissions and is foreseen to be adopted in September 2014 (in
compliance with the National Plan for European Integration 2014 – 2020).
Draft DCM “On ambient air quality assessment and requirements for certain related
pollutants”, is expected to be sent for approval to the Council of Ministers after law adoption.
Draft Strategy on Ambient Air Quality in Albania is sent for approval to the Council of
Ministers and is foreseen to be adopted in September 2014.
27.3 Waste Management
27.3.1 Legal Approximation
During the reporting period the following legal initiatives can be reported:
 DCM No.371 of 11.06.2014 “On approval of rules on the consignment of hazardous
waste and hazardous waste consignment note”was adopted;
 DCM No.418 of 25.06.2014 “On separate collection of waste at source”was adopted;
 Draft DCM “On designation of necessary measures for collection and treatment of bio
waste, as well as the criteria and deadlines to reduce the amount of bio waste”, is sent
for comments to the Line Ministries.
27.3.2 Other Activities
Regarding the four projects initiated by the MoE, the work has advanced only for the
following two projects:
 Establishment of a system of return of the packaging waste and the commitment of
producers to promote the collection and recycling system “Reverse Logistics GmbH”
company drafted and presented the feasibility study, as well as is established the
Working Group which has the task to determine the value of stamps for packaged
beverages.
 Reduction of the amount of waste and promotion of 3R activities (Reduce, Reuse,
Recycle). The representatives of Japan International Cooperation Agency (JICA)
presented the work plan for the project, which was approved by the Joint
Coordinating Committee.
Also, in the framework of government strategic objectives, the Ministry of Urban
Development the Tourism (MoUDT) has started the inventory and evaluation process of the
solid dump sites for the entire territory of Albania.
The objective of this work is the collection of detailed information regarding the existing
solid waste dumps for each local authority (municipalities/communes). This work is
purposefully done in the eve of the new territory/administrative division, and its final aim is
the classification of dumpsites according to their potential risk assessed from the tourism and
urban development viewpoint. So far, there are 33 local authorities that have been evaluated
based on written official responses to questionnaires and site visits. The local authorities,
though located throughout the territory of Albania, are chosen depending on their high
touristic values and/or their level of urban development. The selected local authorities are:
Tirana, Vlora, Pogradec, Prrenjas, Tepelena, Gjirokastër, Lezha, Durrës, Berat, Kuçova,
UraVajgurore, Maliq, Korça, Kruja, FushëKruja, Lushnje, Divjaka, Orikum, Himara,
Saranda, Shijak, Kamëz, Vora, Fier, Patos, Elbasan, Belsh, Përmet, Këlcyra, Shkodër, Vau i
Dejës, Rrogozhina and Kavaja.
All the information taken from this process is integrated in a detailed report and national map
on the current situation, which reflects the main findings from the collected data including the
location distances, size and plan of the dumpsite, the demography and future plans of the
area, as well as any other problem raised by each municipality with regards to their waste
management. During the next 9 months the MoUDT is expected to conclude the study for all
Local Authorities in Albania (31 remaining municipalities).
27.4 Water Quality
27.4.1 Legal Approximation
During the reporting period the following legal acts are approved:
 DCM No. 246 of 30.04.2014 “On environmental quality norms for surface waters”,
which fully approximates Albanian law with Directive 2013/39/EU of the European
Parliament and of the Council of 12 August 2013 amending Directives 2000/60/EC
and 2008/105/EC as regards priority substances in the field of water policy;
 DCM No. 267 of 07.05.2014 “On the list of priority substances”, which fully
approximates Albanian law with Directive 2013/39/EU;
 DCM of 30.04.2014 “On approval of the Mati River Basin Management Plan”, which
fully approximates Albanian law with Directive 2000/60/EC of the European
Parliament and of the Council of 23 October 2000 establishing a framework for
Community action in the field of water policy.
 DCM of 30.04.2014 “On urban wastewater treatment”, which fully approximates
Albanian law with Council Directive of 21 May 1991 concerning urban waste water
treatment.
27.4.2 Other Activities
To further improve implementation of the Law No. 111/2012 of 15.11.2012 “On Integrated
Water Resources Management”, a list of measures and actions were undertaken and are ongoing by the MoE in the field of Integrated Water Resources Management (IWRM):
1. Draft DCM “On adopting the specific conditions, supplementary documents,
deadlines, application forms for authorization and permits for use of water resources”
was sent to the National Water Council for prior approval. After this phase, the draft
DCM will be sent for comments to the Line Ministries;
2. Pursuant to the Order of Minister of Environment No. 1729 of 12.03.2014 “On the set
up of the National Registry for the Water Resources Users”, the National Registry of
Water Users was published online at the website of the MoE,
http://www.mjedisi.gov.al/al/programi/uje-dhe-ajer/uje;
3. The database on financial data related to the six River Basin Agencies was published
on-line at the website of the MoE;
4. Particular attention is given to the bilateral and multilateral relations in the field of
management of trans-boundary waters. Important bilateral activities are undertaken
through joint committees with Montenegro. On 17 May 2014, the Drin-Day was
organized, with several activities among the Riparian Countries taking place. In July
2014, a meeting of the working groups established by the bilateral Commissions with
Montenegro was organized. The main focus of the discussions was identification of
the topographic differences between Durres (Albania) –Tivar (Montenegro);
5. Under the process of consultancy selection in drafting and designing of the National
Water Cadastre with the financial assistance of the World Bank, MoE has prepared
the evaluation report short listing the 6 best companies and submitted the report to the
World Bank for ‘no objection’. This will be the main instrument of work in the
Directorate for Water Resources Policy (DWRP) at MoE. This GIS based Cadastre
will have an all-inclusive inventory of water resources in Albania, water balances,
simulation models and water quality parameters, all in accordance with EU
requirements;
6. MoE is in the final stages of selection of the consultancy to assist in drafting the
National Strategy for Integrated Water Resources Management, with the financial
assistance of the World Bank. The evaluation of the technical proposals for the six
companies short listed was completed, and by September will be completed the
financial evaluation as well.
Considerable work has been done in the management of the river basins on central and
regional level:
1. The identification of the sanitary zones for water utilities in all the six river basins
was finalized;
2. MoE is in the process of selecting consultants to draft the two River Basin
Management Plans for Drin –Buna River and the Semani River. The report on
shortlisting the best 6 consultancy companies is under preparation;
3. In order to start implementing the agreement with a French company for drafting of
the River Basin Management Plan for Vjosa River, several meetings took place to
discuss the preliminary phases of the project. A field trip in the whole river basin was
organized in order to identify the characteristics of the basin, with the participation of
the representatives of the French Company, respective River Basin Agency, River
Basin Council and Water Department at the MoE.
27.5 Nature Protection
27.5.1 Legal Approximation
During the reporting period, for the field of nature protection, in accordance with the NPEI
2014 - 2020, the following can be reported:
 Law No. 68/2014 of 3.7.2014 “On some amendments and addenda to the Law No.
9587 of 20.07.2006 'On Biodiversity Protection” was adopted. It fully approximates
Albanian law with the Council Directive 92/43/EEC of 21 May 1992 “On the
conservation of natural habitats and of wild fauna and flora’. This Law entered into
force on 25.07.2014;


An action plan for the implementation in practice and enforcement of Law No. 7/2014
of 30.01.2014 “On the declaration of the hunting ban in the Republic of Albania” was
drafted and approved by the Minister of the Environment on 2 July 2014;
Draft DCM ‘On the deliberate release into the environment of the GMO-s for
purposes other than placing in the market’ was drafted and circulated to the line
ministries for comments.
27.5.2 Other Activities
The preparation and implementation of Management Plans for the Protected Areas has
progressed as follows:
 The preparation of the Management Plan for National Park Prespa was completed in
cooperation with German KfW and was approved by Ministerial Order in June 2014;
 Infrastructure development and rehabilitation of the NP Divjaka - Karavasta, NP
Dajti, NP Lura, MNR Kune-Vain-Tale and PL Buna-Velipoja projects, with
investment from the state budget have started their implementation after the
completion of procurement procedures in early June and signing of contracts of work
with selected companies in late June 2014. The work will be completed by the end of
December 2014;
 Final drafts of 6 Management Plans are elaborated with the assistance provided by
SELEA project IPA 2010. Management Plans for the following protected areas: PL
“Pogradeci Lake”, NP “Bredhi i Hotovës – Dangëlli”, NP “Tomorri Mountain”, NP
“Korab-Koritnik”, PL “Mali me Gropa – Bizë – Martaneshi” and Alps Proposed
National Park which will include the existing National Park Thethi and Valbona and
Strict Reserve Gashi River, are completed. The first five Management Plans will be
approved by the end of 2014;
 Management Plan for the Marine National Park “Karaburuni – Sazani” is prepared in
cooperation with the GEF-UNDP project on “Marine and Coastal Protected Areas”
and is planned to be completed in December 2014;
 Management Plan for the National Park ‘Divjake-Karavasta’is ongoing in cooperation
with JICA. The final draft is completed in June 2014. The plan will be approved in
2014.
 The component of IPA 2013 project Natura 2000, consisting on the implementation of
5 Management Plans of Protected Areas, as well as identification of potential Natura
2000 of SCIs (Sites of Community Interest), is published for expression of interest
with the deadline of 9 September 2014.
27.6 Industrial Pollution Control and Risk Management
27.6.1 Legal Approximation
Concerning industrial accidents, Law No. 60/2014 “On one amendment to the Law No
10448 of 14.07.2011 “On environmental permits””and DCM No 419 of 25.06.2014 “On the
determination of specific requirements, conditions and rules for the review of environmental
permits type A, B and C, for the transfer of environmental permits, for the conditions of
environmental permits and the detailed rules for the review by the competent authorities till
the issuance of the permits from National Licensing Centre (NLC)”, will assist in achieving
the objectives regarding Industrial Pollution Control in Albania.
27.7 Noise
27.7.1 Legal Approximation
During the reporting period the first draft of the DCM “On the limitation of noise emission
from civil subsonic jet aeroplanes”, which fully approximates Albanian law with the codified
version of the Directive 2006/93/EC of the European Parliament and of the Council of 12
December 2006, on the regulation of the operation of aeroplanes covered by Part II, Chapter
3, Volume 1 of the Annex 16 to the Convention on International Civil Aviation, second
edition and Directive 2002/30/EC of the European Parliament and of the Council of 26 March
2002 on the establishment of rules and procedures with regard to the introduction of noiserelated operating restrictions at Community airports, is prepared in cooperation with the
Ministry of Transport and Infrastructure. The Draft DCM is foreseen to be sent for comments
to the Line Ministries by September 2014.
27.8 Chemicals
27.8.1 Legal Approximation
In the area of Chemicals, MoE pursuant to legal initiatives foreseen in the NPEI 2014 - 2020,
under the assistance of the project funded by the European Union “Technical Assistance for
Strengthening the Capacity of the Ministry of Environment in Albania for Law Drafting and
Enforcement of National Environmental Legislation”(SELEA) Project, presented on 15 July
2014 the first draft of the Law “On chemicals management”, which approximates Albanian
law with Regulation (EC) No 1907/2006 of 18 December 2006 concerning the Registration,
Evaluation, Authorisation and Restriction of Chemicals (REACH). The adoption is planned
by the end of 2014.
Draft DCM “On the approval of regulation on classification, labelling and packaging of
chemical substances and mixtures”, which aims to approximate Albanian law with
Regulation (EC) No.1272/2008 ''On classification, labelling and packaging of substances and
mixtures (CLP)”, including its Annexes I-V, as well as a Guideline “On harmonized
classification and labelling for certain hazardous substance”, which approximates Albanian
law with Annex VI of Regulation 1272/2008/EC, are prepared as well.
27.8.2 Administrative Capacities
In frame of ECRAN Project, under Chemicals/Industrial Emissions Component, the 1st
Regional Workshop of IED/Chemicals was held on 13 - 15 May 2014 in Montenegro.
Representatives from the MoE, the NEA and the Tirana Regional Environment Agency
participated in this workshop.
27.8.3 Other Activities
The UNEP Project "Albania: Review and improvement of the National Action Plan for the
Stockholm Convention on Persistent Organic Pollutants", is under implementation. The first
inception workshop is foreseen to be held during the last week of September 2014.
27.9 Climate Change
27.9.1 Legal Approximation
Related to the EU climate, a schedule for the alignment of remaining climate acquis is
provided in the NPEI 2014-2020. A detailed schedule for the period beyond 2016 will be
provided by the end of 2014 under IPA 2013 project implementation.
The first Draft DCM “On prevention and reduction of Fluorinated Greenhouse Gases”, is
prepared based on the most recent Regulation (EU) No 517/2014 of the European Parliament
and of the Council of 16 April 2014 on fluorinated greenhouse gases and repealing
Regulation (EC) No 842/2006. MoE was assisted by a TAIEX Expert Mission, held on 23-27
June 2014. Representatives from MoE, General Directory of Customs, NEA, NOPIU
participated in this Expert Mission.
27.9.2 Administrative Capacities
In the framework of the Low Carbon South East Europe (LOCSEE) Project, the Second
Albanian National Working Group meeting was held in Tirana on 2 May 2014. The NWG
sessions involved representatives from the Ministry of Energy and Industry, the Polytechnic
University, the NGO Ekolevizja, the NEA and the MoE.
Based on the Order of Prime Minister No. 155 of 25.4.2014 “On establishing and functioning
of inter-ministerial working group (IWG) on climate change” the first meeting of IWG was
held on 27 June 2014, in the premises of the MoE, led by the Deputy Minister of MoE.
Representatives of 10 Line Ministries participated in the meeting. The main agenda’s topics
were related to Climate Change Policies under EU and UNFCCC, national intended
contributions to the 2015 international climate agreement, as well as the institutional
challenges on mitigation of GHG and adaptation to climate change. Participants expressed
willingness to better cooperate but at the same time the need to clearly identify the role of
each institution in the field of climate change.
In framework of ECRAN Project, under Climate Component the following events took place:
1. The “High Level Conference and Seminar on Adaptation to Climate Changes”, held
on 2-3 July 2014, in Skopje, Macedonia. Representatives from the sectors which
cover climate change, water, forests in the MoE, representatives from NEA and Line
Ministries such as the Ministry of European Integration and the Ministry of Urban
Development and Tourism participated in this event;
2. A Regional Workshop “On Ozone Deplete Substances and Fluorinated gases”under
the ECRAN Climate Component was held in Tirana on 27-28 May 2014.
Representatives of the MoE, General Directory of Customs, National Environment
Agency and NOPIU participated in this workshop.
Albania participated in the fortieth sessions of the Subsidiary Body for Implementation (SBI
40) and the Subsidiary Body for Scientific and Technological Advice (SBSTA 40), as well as
the June session of the Ad Hoc Working Group on the Durban Platform for Enhanced Action
(ADP) that took place from 4-15 June 2014 in Bonn, Germany.
MoUDT and Ministry of Energy and Industry, in cooperation with the National Housing
Agency, IFC-Residential Energy Efficiency program, UNDP and UNECE, organized a two
day workshop "Energy efficient housing for sustainable development", held on 7-8 July 2014
in Tirana.
In framework of SELEA Project, a one day workshop “On Climate Change Adaptation &
Collaboration between Environmental Agencies”was organized on 20 May 2014 in Tirana.
27.9.3 Other Activities
Based on the GHG scenarios from Second National Communication (2009) the climate
section of the Environmental Cross-Cutting Strategy and the Strategy for Development and
Integration was prepared. It highlights the reduction of greenhouse gas emission by 8% in
2020, as compared to the baseline scenario (Present projection of GHG emissions for
2020 is 18,000GgCO2eq. This projection will be revised during 2014/2015 in the
framework of the Third National Communication (TNC) of the UNFCCC). In case of
mobilization of international funding for NAMAs, GHG emission reduction can be increased
to 16% compared to baseline scenario.
The national intended contributions to the 2015 international climate agreement will be part
of National Climate Change Strategy to be developed under IPA 2013 project, based as well
on the TNC scenarios.
MoE is working to introduce by September 2014, to the Government the need for
establishing a sector to cover the issues on Climate Change.
Regarding the preparation of the National Adaptation Plan, under the regional project
“Climate Change Adaptation in the Western Balkans countries”, by the end of September
2014 it is expected to be hired the international expert based in the ToR provided for this
reason.
Under the TAIEX expert mission, supported by DG CLIMA and ECRAN project has been
developed as well a draft project fiche on “Implementation of the EU F-gases and ODS
Regulations in Albania”. As IPA 2014 for Albania is finalised and agreed with the relevant
Brussels authorities, this draft project fiche will be introduced under IPA 2015 or under EU
Integration Facility 2014 as part of IPA 2014 project fiche.
27.10 Institutional Framework
27.10.1 National Environment Agency (NEA)
During the reporting period the laboratory of NEA implemented the following monitoring
programs:
1. Monitoring of the quality of the surface waters in Albania (rivers, lakes and coastal
areas). Determination of heavy metals in the rivers of Drini, Mati, Ishem, Seman,
Gjanica and Vjosa with frequency 1 time/ year.
This monitoring program is implemented for the first time by combining monitoring
of rivers, lakes and coastal areas for all the basic physical - chemical parameters and
continues expanding the monitoring parameters, such as the determination of Ntotal at
all stations specified in the monitoring program and determination of chlorophylla in
lakes monitoring.
2. Monitoring of air quality in Tirana, Elbasan, Durres, Shkodra, Vlora and Korca
Another air quality monitoring station in Tirana is added to the monitoring network in
Albania.
Accreditation of the Laboratory of NEA is expanded with three new parameters of
water quality under ISO 17025, as follows:
 Electrical Conductivity;
 Determination of suspended substances;
 Determination of ammonia
Accreditation is expanded with the parameters: Determination of Ntotal l and
determination of the trace elements (heavy metals) of water quality.
For the accreditation process, NEA laboratory participates in proficiency schemes
interlaboratory tests at international level for ensuring quality of analytical work in the
laboratory.
3. Determination of organic components in the sample waters
As the laboratory of NEA has the necessary equipment to make possible
determination of organic components, GC/GC-MS is working in determination of
PAH (polyaromatic hydrocarbons) and OC pesticides.
4. Report to the European Environmental Agency
NEA actually reports to the European Environment Agency for water quality
parameters in rivers, lakes, coastal areas, air quality and waste, respecting deadlines.
National Programme for Environmental Monitoring 2015 is being prepared and will
be sent for approval to the Minister of Environment by September 2014.
CHAPTER 28: CONSUMER AND HEALTH PROTECTION
Key achievements
In the field of consumer protection, the Ministry of Economic Development Trade and
Entrepreneurship (MEDTE) has continued efforts to complete the existing legal framework
and furthermore has sent for approval the Strategy “On Consumer Protection and Market
Surveillance 2014-2020”. This Strategy implements the National Plan for European
Integration 2014-2020. A number of activities were organized to improve the enforcement of
legislation and to raise awareness of stakeholders.
The main achievement in the field of public health is the adoption of Law 76/2014 “On some
addenda and changes to Law No. 9636, dated 6.11.2006, ‘Health protection from tobacco
products’ ”, as amended, as well as several Decisions of Council of Ministers (DCM) and
Orders of Minister of Health.
The preparation of HIV/AIDS Control strategy for 2015 -2020 is in process and will be
finished by September 2014. The Immunization Information System is expanded into three
other cities and a national mosquito control strategic plan has been prepared and implemented.
28.1 Consumer Protection
The Minister for Economic Development, Trade and Entrepreneurship approved the Order
No. 305, dated 30.05.2014 “On Standard operation procedures for market surveillance
inspectors”.
A draft DCM “On state market inspectorate” was drafted and sent for comments and opinions
in the line ministries. Currently, the MEDTE is reflecting comments to the draft before it is
sent for approval to the Council of Ministers.
The drafting of the Inter-sectorial Strategy “On Consumer Protection and Market
Surveillance 2014-2020” complying with the Governments’ Programme 2013-2017 was
finalized and sent for approval to the Council of Ministers in July 2014. The draft strategy is
accompanied with the respective action plan, where the objectives and necessary costs for its
implementation are defined in medium and long terms. It is expected to be approved in 2014.
Regarding the enforcement of the Law “On Consumer Protection”, the Consumer Protection
Commission (CPC) held three meetings during June and July regarding the assessment of
unfair contract terms in standard energy contract for consumers, as well as the assessment of
the commercial practices of second level banks related to consumer credits. For the first issue
the Commission has prepared a preliminary report, which was presented to the Energy
Regulatory Entity for discussions.
Regarding the second issue, CPC approved Decision No. 31, dated 29.07.2014, addressed to
second level banks. In it, the banks are ordered to take the measures to ensure the
enforcement of the respective provisions in consumer protection law concerning consumer
credits, as well as to ensure the improvement of their situation in advertising and pre
contractual phases during offering the consumer credits.
Regarding consumer credits, the Bank of Albania, has taken steps to increase awareness
and involvement of the banking sector on issues of transparency and information disclosure
in the consumer credit area, related mainly with the deficiencies on providing the precontractual information to clients/consumers as defined in the regulatory framework, on the
right and obligation in case of repayment (payment) of loans prior to maturity, on the right of
withdrawal from the contract/loan agreement, on the obligation to inform the customer for
any possible change primarily related to the change of terms of contracts, as well as on the
accurate calculation of the effective interest rate.
The cooperation with consumer protection organizations has continued. The Budget Planning
and Monitoring Unit in MEDTE has approved the necessary costs for 2014 – 2015 regarding
the support of consumer organization activities. These activities will consist mainly to the
preparation of information materials (leaflets, brochures, etc.) as well as for the organization
of some awareness activities.
28.2 Health Protection
COMMUNICABLE DISEASES
The draft Law on the Control of the Infectious Diseases is still in the approval procedure,
because of some discussions and consultations with the European Centre for Disease
Prevention and Control (ECDC) in relation to various EU documents.
The preparation of HIV/AIDS Control Strategy for 2015-2020 was in progress and
completion is planned for September 2014. The following stakeholders were involved: the
Ministry of Education, the Ministry of Finance, the Ministry of Justice, the Ministry of
Welfare, and NGO’s (STOP AIDS, Action Plus, People living with HIV, Roma NGO,
ACPD).
The statute of National Immunization Technical Advisory Group (NITAG) and its Terms of
Reference have been drafted and waiting the approval by the Ministry of Health. The group
will advise directly the Minister of Health, who is discussing the composition and ToR with
relevant agencies and experts. The new Immunization Information system already
functioning in Shkodra and Lezha is expanding into three other cities (Gjirokastra, Saranda,
and Vlora) supported by Government and GAVI (The Vaccine Alliance) funds.
A national mosquito control strategic plan was prepared by experts of IPH and other
Ministries and implementation has started at the very beginning of summer season. The plan
foresees the disinfection of all areas such as Butrinti Park, Orikum marshland, Vlora canals
and city, Divjake canals and near the hotels, Bay of Lalzi and forest near it, as well as Lezha
marshland. According to the monitoring process of IPH the results of this plan were positive
bringing a good reduction of mosquitoes.
Recently, with the Ebola virus disease outbreak, IPH in collaboration with MoH has drafted a
coordinated action plan with clear recommendation for each structure (Airport, Border Police
Control, Health Inspectorate, IPH and Hospital) for screening and case management for
Ebola virus disease.
TOBBACCO
The Albanian Parliament approved the Law 76/2014, dated 10.7.2014 “For some addenda
and changes to Law No. 9636, dated 06.11.2006, “Health protection from tobacco products”,
as amended. Among other things, the new law provides a significant increase of the amount
of fines that can be imposed on owners of the premises and their administrators who do not
respect this Law. Also, another novelty is that for the first time, the law provides for
punishment by a fine of ALL 5000 for customers who smoke in places where consumption is
prohibited. The law provides penalties on significant values, starting from ALL 300 000 for
businesses, 50 000 ALL for person, public institutions or administrators and up to 5 000 ALL
for smokers. Revenue from fines will go to the state budget.
Some other activities are carried out in this field as:
 Training of 45 health personnel in schools of Tirana, focusing on young people and
their smoking habits. The training curriculum is part of the curriculum prepared by
health promotion specialists of IPH, under the support of the MoH and WHO. These
trainings started in November 2013 and continued until May 2014.
 Raise the awareness in the media of tobacco damage on health, smoking ban and the
necessity of increasing the price of tobacco. This activity was carried out throughout
all the reporting period.
 According the methodology recommended by WHO, the sector of tobacco control in
IPH, continues to give individual assistance for smoking cessation and for alcohol
consumption. During the reporting period, 12 persons received this assistance.
MENTAL HEALTH
In the field of mental health the following drafts were prepared and are expected to be
submitted to the Council of Ministers in October 2014:
 Draft DCM on the establishment and functioning of the special medical institution;
 Draft DCM on the manner of delivery and organization of mental health care for
persons in residential social care institutions.
During this period the National Mental Health Committee organized two meetings (Tirana,
Korca) aiming the development of regional mental health action planes in implementation of
the key strategic goals of the National Action Plan for Mental Health 2013 – 2022, those of
deinstitutionalization and decentralization. Meanwhile the committee has planned to organize
three other meetings (Shkodra, Vlora and Elbasan) in October 2014, and soon after that, to
present these regional plans to the Minister of Health.
DRUGS
The first Albanian General Population Survey on drug exposure, supported by EMCDDA,
was concluded in July 2014. Approximately 4000 questionnaires based to EMCDDA
standards were collected. At the end of reporting period, the data was being analysed and a
report will follow.
Based on a contract signed between IPH and UNODC (United Nations Office on Drugs and
Crime) the first national study for size estimation of drug users in Albania has started. The
survey instruments were finalized and an international expert visit was carried out (3-4 July).
The field work is planned to start in September 2014.
CANCER
A new Decision of Council of Ministers No 327, dated 28.05.2014 “On instruments and flow
of data reporting by health care providers, public and private” was approved. The decision
defines the format and manner of collection and reporting of data by providers of health care
services, public or private.
A workshop was organized at IPH on 5 June 2014 with focus on cancer screening and early
detection (breast and cervix). Representatives of IARC Lion France and EuroMed project
Milan Italy as well as representatives of Ministry of Health (MH), University Hospital Centre
(UHC) and other partners were in attendance.
An international cancer conference was held on 6 June 2014 in Tirana. It was organized by
the Academy of Sciences, IPH, UHC and MH. The attendees included representatives of
organisers as well as other experts from Western Balkan Countries. Cancer screening (breast,
cervix and colorectal) was one of the two main subjects discussed in the conference.
A workshop was organized at IPH on 19 June 2014 with focus on setting-up a population
based cancer registry in Albania. Representatives from Association of Cancer Registries Italy
and Cancer Registry of Slovenia as well as representatives from MoH, University Hospital
Centre were in attendance.
BLOOD TRANSFUSION AND TRANSPLANTS
4 participants from Albania took part in the “Multi-Country Workshop on Increasing Blood
Availability and Providing the Highest Donor and Patient Safety in Transfusion Therapy in
Emergency Special Circumstance”, organized in Bucharest, Romania on 7–9 July 2014. The
activity was organised in co-operation with MoH, Republic of Serbia on behalf of the SouthEastern Europe Health Network RHDC on Accreditation and Continuous Quality
Improvement and RHDC on Blood Products and Safety, Oradea, Romania. This workshop
aimed to increase awareness and political/institutional capacities, among SEEHN member
states, about the harmonized ways for getting the Highest Patient Safety in Transfusion
Therapy in Emergency Special Circumstances (natural disasters as floods, earthquakes
massive traffic accidences) at both levels: pre-hospital (blood centers specialists) and hospital
(clinicians), based on Bioethical principles.
e-HEALTH
The Austrian loan, for the creation of the National Health Electronic Record (EHR) project
between AME International GmbH and the MoH was approved by Law 69/2014, dated
03.07.2014.
For the creation of other e-health components, like Hospital Managment Systems, the
Ministry of Health is negotiating with the World Bank for a comprehensive credit where the
e-health components are an integral part of the negotiation package.
The Ministry of Health held in May 2014 the tender for the Health Facility Inventory List
project, which aims to have complex information for any health centre or hospital, the
building, laboratories, equipment and personnel working near them. The contract with the
winning company “Infosoft Systems” was signed in 06.08.2014.
The Ministry of Health in collaboration with the Social Insurance Fund held in July 2014 the
tender for the e-prescription pilot project in the District of Durres. The contract with the
winning company Fastech was signed in 18.08.2014.
CHAPTER 29: CUSTOMS UNION
Key achievements
Further progress was achieved in approximation of Albanian law with EU acquis and
implementation of the customs legislation in Albania. Among other legislative initiatives
undertaken by the Ministry of Finance and the General Directorate of Customs (GDC), the
Parliament approved in July 2014 the new “Customs Code of the Republic of Albania”.
Law approximation
The Parliament approved Law No 102/2014 of 31.07.2014 “Customs Code of the Republic of
Albania”. This Law implements the National Plan for European Integration 2014-2020 (NPEI),
Chapter 29. It approximates Albanian law with:
 Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9
October 2013 laying down the Union Customs Code;
 Council Regulation (EC) No 1186/2009 of 16 November 2009 setting up a Community
system of reliefs from customs duty;
 Council Directive 2007/74/EC of 20 December 2007 on the exemption from value
added tax and excise duty of goods imported by persons travelling from third countries.
The following acts were approved during the reporting period:
 Decision of the Council of Ministers No 323 of 28.05.2014 “On the opening of
temporary Border Crossing Point at the Pogradeci port, state border between the
Republic of Albania and the Republic of Macedonia at the Pogradeci Lake”;
 Agreement with Union Bank Prot. No. 17578 of GDC of 22.07.2014 “On the
electronic payment procedures from economic operators”;
 Agreement with Aleksandër Xhuvani University of Elbasani, Prot. No 9920 of
GDC of 21.04.2014 on caring out laboratory analysis;
 The Joint Agreement on Transit Facilitation in Albania and Kosovo was signed
during a Task Force meeting held on 19.07.2014;
 The International Agreement between the Commission and DG TAXUD on the
participation of Albania in the Union Programme Customs 2020 was signed on
1.07.2014. The Albanian Government has signed the Agreement on 22.07.2014.
The following legal acts, which implement the NPEI 2014-2020, are expected to be approved
within the last quarter of 2014:
 Draft Law “On an amendment to the Law No 61/2012 of 24.05.2012 “On excises in the
Republic of Albania”, as amended, proposed to better control products for which excise
must be paid;
 Draft DCM “On some amendments and addenda to DCM No 612/2012 “On adoption
of implementing provisions of law on Excises”, as amended;
 Draft DCM “On some amendments and addenda to DCM No 205 of 13.04.1999 “On
Implementing Provisions of Customs Code of the Republic of Albania”, as amended;
 Draft Internal Regulation of GDC, concerning the latest changes in the structure of
GDC.
The Albanian customs legislation on customs valuation of the goods is in line with World
Trade Organisation (WTO) and World Customs Organisation (WCO) acts. In this framework,
Article 70 of the new Law No 102/2014 of 31.07.2014 “Customs Code of Republic of
Albania” is in compliance with article VII of the General Agreement on Tariff and Trade
(GATT Agreement) of WTO.
Customs valuation of the goods by the “Available Data File” is the latest method in the customs
valuation methodology and is updated regularly. This file serves for the revaluation of goods
after there are used other methods of customs valuation, as well as a tool for risk analyses. The
transaction method on imports during May-July 2014 covers 87%. Other customs’ valuation
methods cover 13% of the imports. Concerning customs revenues, 96.2% of the total amount is
ensured by importers’ declarations. Only 3.8% is ensured by customs valuation rules. The rate
of transaction value use is increased, but it still remains low according to the EU standards.
The Albanian Customs Administration is continually working to improve the targeting
process through risk profiles in order to select the consignments with higher risk for physical
control. The percentage of documentary controls for the period May – July 2014 is at a level
of 100% and physical controls at 10.4%.
The risk profiles in the selection module are periodically reassessed (27 profiles during the
reporting period), updated or new ones are set up based on the proposals and/or information
received by different Customs Administration structures and outside of it.
Based on “Commission notice concerning the date of application of the Regional Convention
on pan-Euro-Mediterranean preferential rules of origin or the protocols on rules of origin
providing for diagonal cumulation between the Contracting Parties to this Convention”, OJ of
European Commission No. C 111/7, dated 12/04/2014, and on the Join Committee Decision
No. 3/2013 of the FTA CEFTA-2006, Albania has started to apply the diagonal cumulation
with Montenegro, Macedonia and Serbia since 01.04.2014.
2. Administrative capacity
The following trainings for new employees of customs administration took place during the
reporting period:
 29.3.2014-26.6.2014 - 221 new employees (divided in 9 training groups) were trained
at the Training Centre of Customs and Tax Administration. 62 of them are employed
at GDC and 159 by customs branches. The training module contained 16 training days
dealing with 45 different topics necessary for customs officers.
 During April-May 2014 42 Directors of the GDC and all the Heads of other customs
branches were trained in 7 trainings carried out by the Training Centre of Customs
and Tax Administration and AGNA Group Academy. The trainings were related to
management of time and discipline, group work and communication, positive thinking
and self-trust, laws of success and HR, sell and convincing skills, anticorruption
measures and behaviour of the employees of Customs Administration, Civil Service.

In the framework of IPA AL2011/IB/FI/01 Project were carried out different trainings
focused in the fields of Risk Analysis and Monitoring, protection of IPR, Customs
Laboratory and Post-Clearance Control. Furthermore, were carried out different
trainings with TAIEX, Europe Aid/129640/C/SUP/AL, American Embassy, etc.
The twinning Project “Support to the Albanian Customs Administration” financed
with IPA 2011 funds, in the amount of EUR 1.5 million, was successfully finalized in
July 2014. The objective of this project was to improve the performance of ACA staff
performance and make it compatible with EU standards The assistance provided by
the project covered post clearance control, risk analysis and management, protection
of IPR as well as customs laboratory. During the implementation of the project in
question (January 2013-July 2014) 114 activities were carried out, including four
study visits and two events (kick-off and project closure) as well six steering
committee meetings. The following guidelines, internal regulations, instructions were
prepared in cooperation with the Albanian experts: the “Gaps and Needs” analysis and
SWOT of the present Risk Management System; the Auditing Manual for Post
Clearance Control; the Action Plan for the protection of the Intellectual Property
Rights.
Inter-agency Cooperation
During the reporting period, cooperation between customs authorities and other agencies
improved. For instance, one should note cooperation with Police in organization of Operation
HIT (June 2014) against trafficking of stolen vehicles (organized by Southeast European Law
Enforcement Centre), as well as for organization of Operation ODYSSEUS (May-June 2014)
against trafficking of works of art (organized by WCO).
International Cooperation
It has continued the cooperation with the Export Control and Related Border Security (EXBS)
Program concerning trainings of the customs personnel focused on risk analyzes and customs
violations and as priority the Anti-Smuggling Directorate, excise goods and anti-trafficking
(May 2014). Donations of border control equipments on security (July 2014) has been one of
the important topics as well (July 2014).
Thanks to serious engagement of the Albanian Customs Service, the Ozone Regional
Network for Europe and Central Asia awarded the GDC with a “Merit Certificate” and the
respective “Medal” (May 2014) for prevention and fight against the trafficking of ozone
depleting substances.
Internal Investigation and Anticorruption Directorate
The Internal Investigation and Anticorruption Directorate have represented to the GDC a
program on prevention and fight against corruption. Based on this program, the cooperation
of the Internal Investigation and Anticorruption Directory with the Investigation Directorate,
Internal Audit Directorate and Intelligence Directorate, under Crown Agents assistance, has
been successful and with good results in prevention and identification of corruptive cases.
Also, weekly reports of denounced cases are submitted to the Ministry of Finance.
Concerning the work that the customs branches shall carry out in the fight against corruption,
the Internal Investigation and Anticorruption Directory has set certain priorities:
 Solution of specific issues in group in order to avoid subjective assessment cases by a
single individual;
 Application of Code of Ethics by each customs employee;
 Organization of continuous meetings with business groups and their representatives
(customs agencies) concerning their relations with the customs employees;
 Time reduction of carrying out customs procedures and increasing the correctness and
speed in order to solve issues and complaints of companies;
 Extracting data on daily basis (TIMS) of all the vehicles that pass at customs points
and based on risk analysis to create control-plans for suspected vehicles used for
smuggling, in cooperation with Border Police;
 In order to increase work efficiency, 48-hours shifts should be replaced by 24-hours
shifts;
 Improvement of working customs posts and conditions where there are provided
services to the economic operators in order to avoid irregularities;
 Cooperation with Crown Agents in order to carry out joint controls as well as
increasing the quality in the documentation of offences in the cases of corruptive
phenomena.
CHAPTER 30: EXTERNAL RELATIONS
Key achievements
Albania has continued its efforts to foster trade liberalisation, with a particular focus to trade
in services within CEFTA. Several bilateral agreements are being negotiated. Preparations
are being made for the approximation of the Council Regulation (EC) No 428/2009. Albania
pledged to donate 200,000 Euro in humanitarian aid to Serbia and Bosnia and Herzegovina.
30.1 Commercial policy
Concerning trade facilitation, the Joint Trade Facilitation Self-Assessment between Albania
and Kosovo was organised in Tirana 5 – 8 May 2014. Compliant with WTO Trade
Facilitation Agreement, the full list of measures and commitments grouped into categories, in
accordance with this Agreement is prepared and sent to WTO Secretariat on 19.08.2014
through our Permanent Mission in Geneva
Albania has recently received a request from the Committee of Public Procurement in the
WTO to accede to WTO Government Procurement Agreement (GPA). The Ministry of
Economic Development, Trade and Entrepreneurship and the Public Procurement Agency are
preparing the final position as regard Albania’s future accession to the GPA, taking into
account the recommendations provided by the EU delegation at the meeting held in Tirana on
14 April 2014.
The Ministry of Economic Development, Trade and Entrepreneurship participated actively in
all CEFTA meetings and activities. Currently, the main focus is on the liberalisation of
services. The first meeting of the Albanian negotiating team on trade in services liberalisation
was held on 29 July 2014. The second meeting will be held in early September 2014 in
accordance with the schedule of negotiations.
In the area of BITs, Albania is negotiating bilateral agreements on the reciprocal promotion
and protection of investments with the United Arab Emirates, Canada, Iceland, Turkey,
Slovakia, Morocco, Lebanon and Kosovo (the proposal was submitted in July 2014.
Moreover, negotiations are underway on agreements on economic and technical cooperation
with Bosnia and Herzegovina, Montenegro, Brazil and South Korea.
The Ministry of Defence and Albanian State Export Control Authority (AKSHE) are
preparing amendments to Law No 9707 of 5.04.2007 “On State Import – Export Control of
Military Goods and Dual-use Goods and Technologies”, partial approximation the Council
Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control
of exports, transfer, brokering and transit of dual-use items. In accordance with National Plan
for European Integration 2012-2014, it was due for adoption in Q1 of 2015, with entry into
force in Q2 of 2015.
The draft law is consulted with the involved institutions, as above, and EU experts, in the
framework of EU LTP Program on Dual Use goods, implemented by BAFA (German office
on Export Controls). For this purpose, a workshop was organised in Tirana on 8 – 9 July
2014, which was the second workshop on dual-use goods organised during 2014.
30.2 Development Cooperation and Humanitarian Aid
The International Donors’ Conference for Bosnia and Herzegovina and Serbia after the floods
was held in Brussels on 16 July 2014. Albania pledged to donate 200,000 Euro, 100,000 Euro
to each country. The allocation of funds is being carried out.
CHAPTER 31: FOREIGN, SECURITY AND DEFENSE POLICY
Key achievements
Albania has aligned itself with 37 declarations and common positions of the EU in the field
of CFSP and has continued to align with statement and/or explanation of position/vote of the
European Union (EU) at the United Nations bodies. In this framework, the Missions of the
Republic of Albania were aligned with 116 declarations of EU in different bodies. After
being granted the candidate status, Albania’s objective is to open accession negotiations as
soon as possible. Regarding regional cooperation, Albania actively contributes to regional
cooperation and plays an important role in the reconciliation process in the region. Albania
participated in the meetings of all levels in the framework of regional initiatives – Foreign
Affairs SEECP Ministers meeting in Bucharest 20 June, 25 June 2014 – CEI Foreign Affairs
Ministers meeting, 1 June 2014.
Political dialogue EU-Albania
Albania’s objective is to open accession negotiations with the European Union as soon as
possible, after being granted the candidate status on 24 June 2014, which presented an
encouragement for further resolute efforts in the reforms. The Albanian government is fully
committed to the implementation of reforms, with particular focus on public administration
and judiciary, fight against corruption and organized crime and fundamental rights. Progress
in the fulfilment of the 5 Key Priorities for the opening of accession talks is assessed in a
High Level Dialogue (HLD) with the European Commission.
On 12 May 2014, the Minister of Foreign Affairs of Albania, chaired the 6th meeting of the
Stabilization and Association Council between Albania and the European Union.
On 4 June 2014, Prime Minister of Albania, co-chaired the 3rd Meeting of the High Level
Dialogue (HLD) on the Key Priorities between Albania and the European Commission.
CFSP/CSDP
Albania has continued to actively support the EU foreign, security and defence policy. In this
framework, during the reporting period, Albania aligned itself with 37 declarations and
common positions of the EU in the field of CFSP.
Please refer to Annex 31.1 to find the full list.
During the reporting period, Albania has continued to align with statements and/or
explanation of position/vote of the European Union (EU) at the United Nations bodies in
New York, namely the Security Council, the General Assembly, ECOSOC and the six
committees of the General Assembly, as well as at the other UN institutions. In this
framework, Republic of Albania has aligned 116 declarations of EU in different bodies: 19
declarations of EU in New York, 97 declarations of EU in Vienna.
Please refer to Annex 31.2 and 31.3 to find the full list.
Albania has continued to support actively the EU foreign, security and defence policy.
In the reporting period, the national Armed Forces destroyed/alienated 2,500 tons of
ammunition. For the surplus tons of stockpiled ammunition, pursuant to the “Action Plan for
the demolition and alienation of surplus ammunition and outside of the needs of Organization
and Equipment Table (TOP) of the Armed Forces in 2014”, Ministry of Defence objectives
are that the process to be completed within 31 December 2014 .
In the reporting period, the national Armed Forces destroyed/alienated 40.000 Small Arms
and Light Weapons (SALW).The objective of the Ministry of Defence is to totally destroy
the remaining categorized tons of surplus small arms and light weapons, within September
2014.
Albania supported the Decisions of the Council of the European Union concerning restrictive
measures in view of the situation in Ukraine, Syria, North Korea, Myanmar, Egypt and
Bosnia and Herzegovina. The Ministry of Defence, in collaboration with Ministry of Foreign
Affairs, implemented restrictive measures to fulfil its obligations through the authorities
under its responsibility.
Engagement of Albania in the international initiatives / Regional Cooperation
Regarding regional cooperation, Albania actively contributes to regional cooperation and
plays an important role in the reconciliation process in the region.
The one year Albanian Chairmanship of the Adriatic and Ionian Initiative (AII) ended on 31
May 2014.
On 1 June 2014, Albania assumed the one year Chairmanship of the South East European
Cooperation Process (SEECP). In the position of Chairmanship in Office, Albania is fulfilling
the membership of the SEECP Troika, alongside Romania and FYROM.
On 10 July 2014, the Minister of Foreign Affairs of Albania participated at the informal
meeting of the ministers of foreign affairs of the Western Balkans with Commissioner Füle,
in Kotor, Montenegro.
On 12 July 2014, the Minister of Foreign Affairs of Albania participated at the Croatian
Forum “EU integration of the Western Balkan countries; Rule of Law”.
On 14 July 2014, the President of Albania participated at the meeting of Brdo-Brijuni Process
in Dubrovnik.
Albania played a moderate and constructive role in every regional initiative, stressing the
importance of an all-inclusive cooperation and continues to develop very good relations with
neighbouring countries, which an essential part of its process of moving towards the
European Union.
With regard to relations with the Republic of Kosovo, Albania considers them as excellent
ones. Albania welcomes Kosovo’s progress toward its membership in Regional Cooperation
Council (RCC) and its further regional and international affirmation, as status of observer to
the Parliamentary Assembly of NATO, the membership to Commission of Venice-CoE, full
participation to SEECP.
Regarding FYROM, despite the latest developments in the country (the protests of ethnic
Albanians triggered by the Macedonian court decision to sentence 6 citizens of Albanian
ethnicity with life imprisonment), the Republic of Albania is committed to strengthen the
good neighbourly relations and cooperation. Albania continues to maintain a constructive
approach towards the developments in FYROM and supports its sovereignty, integrity and
stability. The current bilateral relations are characterized by a satisfying level of political
dialogue, with frequent contacts on different levels. The Minister of Foreign Affairs of
FYROM has lately expressed his interest to pay an official visit to Tirana, in autumn 2014.
The Republic of Albania pays special attention to the relations with the Republic of Serbia.
Under its foreign policy of “zero problems with neighbours” Albania has expressed its
readiness to engage in an open political dialogue with Serbia, in order to create a sustainable
climate of confidence and respect, as a contribution to security and stability in the region. The
bilateral relations have not seen much progress during the recent couple of years, although
there are broad possibilities of cooperation. The expected visit of the Albanian Prime
Minister to Serbia, will hopefully open a new dimension of political and economic relations
between the two countries. As a sign of solidarity and response to Serbia’s call for support in
the aftermath of the recent floods that hit the country, Albania participated at the International
Donors’ Conference, hosted by the European Commission and expressed its commitment to
make a financial contribution to the relief efforts.
Albania aims to further develop the good-neighbourly relations with Bosnia and
Herzegovina, intensify the political dialogue and contacts on every level. Albania has
supported the integration process of Bosnia and Herzegovina to EU and NATO and has
aligned itself to the efforts of the international community towards the necessary reforms in
the country. Albania has no open issues with Bosnia and Herzegovina. The Minister of
Foreign Affairs of Bosnia and Herzegovina had planned to visit Tirana, in May 2014, but the
visit was postponed due to the heavy floods that hit the country. Albania assisted the
authorities in Bosnia and Herzegovina with rescue and medical teams, in coping with the
consequences of the floods. It also made a financial contribution commitment to the pledges
mobilised by the international community for Bosnia and Herzegovina, during the Donors’
Conference, convened in Brussels, on 16.07.2014.
Relations with Montenegro are dynamic and multidimensional, and also constitute a solid
base for good neighbourly relations. The political dialogue includes all areas of bilateral
relations and regional development issues, too. Albania is interested in opening new ways to
collaborate and reinforce the economic cooperation with concrete ideas and projects for a
common development. Albania supports Montenegro's membership in NATO, as it helps in
strengthening security in the region and is in the interest of all countries. Albania appreciates
the performance of Montenegro's European integration.
The Albanian community in Montenegro is considered as a bridge of friendship and as an
element of stability and internal cohesion. Albanians’ demands such as administrative,
cultural, educational, and infrastructural or functioning of local government will be resolved
through the democratic dialogue with central government in accordance with the Constitution
of the country.
Relations with Republic of Croatia have experienced significant positive progress. There is
a growing political dialogue and a very good bilateral cooperation, particularly on European
Integration issues.
CHAPTER 32: FINANCIAL CONTROL
Key achievements
ALSAI (Albanian Supreme Audit Institution) has continued with the publication of several
documents (in Albanian and English). As regards the “Public Internal Financial Control
(PIFC)” and “Protection of the Euro against counterfeiting”, the Cycle of Trainings for the
development and increase of staff capacities was being implemented during the reporting
period.
32.1 External audit
In October 2013 Sub-Committee on “Economic and Financial Issues and Statistics”
recommended that Albania will take all the necessary steps for the adoption of the amended
State Audit Institution (SAI) law by the Parliament. The Albanian Parliament addressed to
the EU Delegation in Tirana a request for technical support to ALSAI on its draft law. On the
initiative of EUD, a round table was held in Tirana, with the participation of EU audit
experts, MP’s from the Albanian Parliament and Mr. Robert Gielisse, Principal Advisor in
Charge of Public Internal Control, DG-Budget. Next meeting of this roundtable will be held
in Tirana in September 2014.
Based on INTOSAI standard, ISSAI 5600, "Peer Review Guideline" and in the spirit of the
Declaration of Lima, Article 15, "International exchange of ideas and experiences within the
International Organization of Supreme Audit Institutions is an effective means of helping
Supreme Audit Institutions accomplish their tasks", ALSAI has forwarded the request to all
the 28 EU countries SAI’s to conduct a Peer Review in ALSAI.
After the approval of ALSAI’s Law, the ALSAI’s Strategy for the period 2013-2017 and the
action plan will be implemented.
The State Supreme Audit institution is cooperating with the Ministry of Finance to integrate
the ALSAI’s Strategy within the VI-th pillar “Effective Supervision” of the Strategy of
Public Finance Management 2014-2020. The first draft of this strategy, has already been
concluded and sent to the Ministry of Finance.
On 26 June 2014 the Albanian Parliament approved the resolution on the Evaluation of the
ALSAI’s Activity for the year 2013. In the spirit of this resolution and in order to implement
the tasks coming from this resolution for our institution, ALSAI has designed the Action Plan
for the period July 2014-May 2015.
On October 29-30 2014 the State Supreme Audit institution will organize the III-rd Scientific
Conference entitled “National Audit serving National Governance”.
The Conference would be honored by the presence of representatives from partner SAI-s,
esteemed and experienced personalities of Supreme Audit institutions from European
countries that will contribute in bringing together the advanced and professional opinion in
the audit area. Representatives from donor and state institutions as well as civil society will
also take part in this event.
During the period May - August 2014, the ALSAI’s set of publications have been enriched
with 5 new titles:
 ALSAI annual analysis of 2013;
 Public Audit Magazine no. 6 (in Albanian and English language),
 Public Audit Magazine no.7 (in Albanian and English language),
 ALSAI Performance Report 2013 (in Albanian and English language),
 Special Issue of the International Journal of Government on INCOSAI XXI,
 The ALSAI’s Auditors in the written media (volume II), January - June 2014.
As regards strengthening the administrative capacity, during this period of time trainings
have continued to be organized as follows on the table below:
Table 1:
Training
organized by
ALSAI’s
staff
ALSAI’s
staff
SIGMA
SIGMA
NAO
Sweden
NAO
Sweden
ASPA
Topic of the Period
Number
training
days
Different
May-July
topics
2014
Different
May-July
topics
2014
“Audit Basics
12-14 May
in the Public
Sector”
“Annual
22-24 June
Strategic and
Audit
Planning”
of Performance
12-14 May
Audit
of Parallel Audits
22-26 June
General topics
May-June
2014
of Number of
Place of
participants
training
4
25-27
Tirana
3
35
Tirana
3
25
Tirana
3
20
Vlora
3
13
Prishtina
5
4
Tirana
2-3
41
Tirana
32.2 Internal audit
Legal Developments
As regards the legislative developments in the field of internal audit, the Law No. 9720.
Dated 23.04.2007, “On the internal audit in the public sector”, as amended is planned to be
revised again by the Ministry of Finance. By the Order of the Minister of Finance No 60 of
2.07.2014, with the responsibility of reviewing the legal and sub-legal acts of public finance,
within the Ministry of Finance is established an internal working group.
Regarding the revision of Internal Audit Law, during May-August 2014, Central
Harmonization Unit for Internal Audit (CHU/IA), has collected preliminary opinion from
several Internal Audit Units (IAU) in the public sector, regarding their proposals for
amendments. Based on these proposals and other problems faced during the implementation
of the current law, CHU/IA is engaged in the preparation of the draft law.
The main directions in reviewing the internal audit law will be:
 Clarification and specification of the function, role and powers of CHU/IA in the
qualification process, certification and training of internal auditors.
 Strengthening the employment criteria of internal auditors in the public sector;
 Classify internal auditors into three levels and setting the auditors status.
Since the Internal Audit Law is implemented in all public sector institutions, whose activity is
supported by public property and which are financed by the State Budget funds, including
funds from international bodies, a broad range of institutions will be consulted on the law
amendments, such as ALSAI, Line Ministries, and Local Government Units. Moreover, the
proposed legal amendments will be sent for opinion to the respective EU bodies.
Administrative Capacities
Based on the Law No. 9720/2007 “On the Internal Audit in the public sector”, as amended,
during May - August 2014 CHU/IU was engaged in performing 2 rounds out of 7 rounds
planned during the year 2014.
The focus of the training program is the training of the internal auditors employed in the
public sector. In this regard 388 internal auditors are planned to be trained in 7 groups at
different times. The trainings have started in June 2014 and will continue till end of
November 2014. In June 2014 a training of 2 groups took place with 84 participants in
attendance.
The training is considered to be an important step in developing and maintaining high
professional standards among internal auditors employed in the public sector being in line
with international standard and practices in internal audit field.
32.3 Financial Management and Control
Legal Developments
During the reporting period the activities of CHU/FMC focussed on several matters,
including:
 Reviewing the legal bases on public finance;
 Following the activities of the project "Support to the Ministry of Finance for the
development of financial management and control of public funds" funded by SIDA;


Engagement in the development and increase of staff capacities;
Creating the database of controlling and controlled public units, in order to have a full
list of entities in compliance with ESA 2010.
In the field of financial management and control, during the reported period the following
legal acts were approved:
 By Order No 57 of 12.06.2014 “On standard audit trails of public procurement with a
value more than ALL 400.000 without value added tax and the value less than ALL
400.000 without value added tax” the process of reviewing the processes list and audit
trails of public procurements was finalized. This activity was conducted in
cooperation with the Supreme State Audit;
 Instruction No 5/1 of 21.05.2014 “On an amendment to Instruction No 5 of
27.02.2014 “On the payment of arrears dues” was approved;
As part of the working group “On the establishment of the Working Group for the review of
the legal and sub-legal acts on Public Finances”, approved by the Order of the Minister of
Finance No 60 of 2.07.2014, the staff of Central Harmonization Unit for Financial
Management and Control contributed, on revising the below mentioned legal acts in the
public finance field:
 Law No 9936 of 26.06.2008 “On management of budgetary system in the Republic of
Albania”;
 Law No 10296 of 8.07.2010 “On financial management and control”;
 Law No 9720 of 23.04.2007 (As amended with Law No 10318 of 16.09.2010) “For
internal audit in the public sector”;
 Law No 9665 of 18.12.2006 “On state borrowing, public debt and state warranties of
loans in Republic of Albania”.
Central Harmonization Unit for Financial Management and Control coordinated the work on
drafting and discussing the Albanian Public Finance Management Strategy 2014-2020.
Besides the technical working group established at the Ministry of Finance, an inter
institutional working group has been established by the Prime Minister Order No 202 of
25.08.2014 “On the preparation and monitoring of Public Finance Management Strategy, in
the framework of National Development and Integration Strategy 2014-2020”. Participants
from the main institutions contributing in better management of public finances are part of
this working group, such as ALSAI, Ministry of Economic Development, Ministry of Social
Welfare and Youth, Ministry of Integration, Public Procurement Agency etc.
On July 2014 the project "Support to the Ministry of Finance for the development of financial
management and control of public funds", funded by SIDA, organized training with Albanian
Road Authority (ARA) staff about “Business process map and audit trails”
Administrative Capacities
As regarding the administrative capacities, during 21-23 May and 11-13 June 2014,
CHU/FMC in cooperation with ASPA, was involved in the process of training Authorizing
Officers and Executing Officers of central government units. The topics covered were:



Managerial responsibility,
Risk management,
Audit trails and list of processes.
These training activities were held in the ASPA premises.
In July 2014, based on ESA66 2010, a collection of data from general government units has
started with the view of putting together a list of controlling and controlled institutional units.
Protection of the Euro against counterfeiting
With the aim of growing the administrative and professional capacities on 31 March - 4 April
2014 one of the staff members of the National Analysis Centre at the Bank of Albania went
on a study visit to the NAC (National Analysis Centre) at Deutsche Bundesbank. The focus
was on counterfeit analysis.
On 19-23 May 2014 representatives of the National Analysis Centre, being the responsible
authority for the protection of currency against counterfeiting, attended the 11th Euro South
East Conference on continuing institutional cooperation in the fight against euro
counterfeiting. This even was hosted by the European Commission/ European Anti-Fraud
Office (OLAF), together with the Central Bank of Montenegro. It took place in Budva,
Montenegro.
In order to improve the technical capacities in the field of coin examination the National
Analysis Centre has installed the proper equipment for analyzing counterfeit coins in
accordance with OLAF/European Technical and Scientific Center standards and
recommendations.
66
European System of National and Regional Accounts
CHAPTER 33: FINANCIAL AND BUDGETARY PROVISIONS
Key achievements
During the reporting period several legal initiatives were undertaken concerning the customs
and tax procedures. The first draft document of the Medium-Term Budget Program 2015 –
2017 was approved by the Council of Ministers on 2 July 2014. The revised draft document
is foreseen to be approved by the Council of Ministers not later than 22 October 2014.
Customs
The Parliament approved Law No 102/2014 of 31.07.2014 “Customs Code of the Republic of
Albania”. It partly approximates Albanian law with:
 Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9
October 2013 laying down the Union Customs Code;
 Council Regulation (EC) No 1186/2009 of 16 November 2009 setting up a Community
system of reliefs from customs duty;
 Council Directive 2007/74/EC of 20 December 2007 on the exemption from value
added tax and excise duty of goods imported by persons travelling from third countries.
For further information, please refer to Chapter 29 “Customs Union”.
Taxation
Law No 92/2014 “On VAT” was approved. It is partially in compliance with Council
Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.
As regards the reimbursement of VAT, the following legal acts were approved:
 Guideline No 6/3 of 8.05.2014 “On some addenda and amendments to Guideline No
17 of 13.5.2008 “On Value Added Tax”, as amended.
 Guideline No 6/4 of 16.05.2014 “On some addenda and amendments to Guideline No
17 of 13.05.2008 ‘On VAT”, as amended.
 Guideline No 6/2 of 16.05.2014 “On some addenda and amendments to Guideline No
17 of 13.5.2008 “On VAT”, as amended.
For further information, please refer to Chapter16 “Taxation”.
Budgetary
The Prime Minister’s has approved Guideline No 1 of 4.06.2014 “On the way of execution of
the monetary liabilities of the general government units in Treasury account”, with the aim to
discipline the multi-year spending commitments regarding judicial decisions.
The Council of Ministers approved on 2 July 2014 the first draft document of the MediumTerm Budget Program 2015-2017.
In July 2014, the Ministry of Finance issued the Annual Supplementary Guideline No 7/2 of
4.07.2014 “On the preparation of the Medium-Term Budget Program 2015-2017”.