PLGP Draft SOW.pdf

DRAFT

Planning and Local Governance Project (PLGP)

Statement of Work

A) GOAL

The goal of the Planning and Local Governance Project (PLGP) is to provide technical assistance and training to the Government of Albania (GOA) and to Albanian local government institutions – to help the

GOA and local governments successfully implement decentralization legislation, policies and reforms.

B) BACKGROUND

Albania is a parliamentary democracy based on a constitutional and legislative framework that is largely in line with European principles and standards. Since the early 1990s, Albania has taken steps to decentralize political, administrative, and fiscal processes, and local governments have provided increased levels of services to citizens. Despite a degree of progress, Albania has not yet implemented key elements of decentralization. For example, the country lacks a national territorial plan; devolution of authorities and accountabilities to the local level are incomplete; financial and budgetary processes are weak; and resources streams are inadequate.

In 2006, Albania signed a Stabilization and Association Agreement with the European Community, an early step towards membership in the European Union. A key challenge for Albania in achieving its

European aspirations relates to the capacity of the GOA to meet EU standards and Albania’s rising expectations for better service delivery, e.g., electricity, water, sewerage, housing, roads, education, etc.

As a signatory to the European Charter on Local Government, Albania has committed itself to decentralization; however, key Albanian stakeholders have not been fully engaged in decentralization processes. For example, the GOA enacted important changes in laws that affect local governments and local revenues without prior consultation with the Associations of Municipalities and Communes or with mayors. Overall, the GOA needs to improve consultation with local governments and community groups where the interests and needs of citizens and businesses are so directly affected.

While local government responsibilities, autonomy, and accountability have increased, fiscal decentralization has lagged behind. Consequently, local authorities still lack resources needed to carry out major functions for which they are now responsible and for which the public now sees them as accountable, such as the delivery of water/sanitation services. Funds for large capital improvements are mostly beyond the reach of local government budgets. Municipal borrowing has been hampered by legislative limitations on public debt and a lack of transparency in the GOA process for issuing competitive grants. These problems are compounded by a need for local governments to build skills and knowledge around administering local institutions and services in an effective and transparent manner.

C) PLGP OBJECTIVES

To achieve PLGP’s goal stated above in Section A, the project has the following four objectives and corresponding program components:

Objective I: The GOA implements effective government decentralization policies and legislation through collaboration with local governments and non-governmental organizations.

Component I: Support the GOA’s work to implement effective government decentralization policies and legislation.

Objective II: Local governments improve their performance, accountability, transparency, and ability to involve citizens in decision making.

Component II: Improve the efficiency, transparency and accountability of local government operations.

Objective III: The GOA and local governments effectively plan, manage, and finance public services, consistent with EU standards.

Component III: Improve local government management and oversight of selected public utilities to provide services in accordance with EU standards.

Objective IV: The GOA and local governments improve their ability to develop, coordinate, and manage territorial planning.

Component IV: Strengthen the capabilities of the GOA and local governments to plan and manage urban and regional growth.

USAID/Albania will utilize a contract to implement the project through a combination of technical assistance and training.

D) SCOPE OF WORK

Component I: Support the GOA’s work to implement effective government decentralization policies and legislation.

I-A) Component I Problem Statement:

The GOA remains committed to the decentralization process, as indicated in its Decentralization Strategy and the National Strategy for Development and Integration. Following the legal reforms adopted during the last decade, total local government expenditures have grown dramatically from 0.2 percent of the

GDP in 1998 to 4.7 percent in 2009, and discretionary authority over total local government expenditures grew from 5 percent to 57 percent. In general it is widely accepted that decentralization reform in Albania has moved forward.

Since 2005, however, several actions by the central government have adversely affected decentralization reforms. In 2005 the GOA cut the small business tax rate by half, significantly reducing a key source of local government revenue. In 2009 the GOA set limits on local service fees and taxes without apparent reference to actual costs of services that local governments provide. In 2010, the Ministry of Finance imposed a cap on borrowing which limited the ability of local governments to access resources for new investments. Furthermore, the central government fund that allocates grants to local governments is neither transparent nor efficient. For example, the GOA does not define allocation criteria in advance of the budget year and announces awards long after the budget year has begun -- thus disrupting the management of the local budget. Such actions have seriously constrained local finances and illustrate the need for a stronger consultative process between the central and local governments.

I-B) Component I Tasks and Deliverables:

1. Assist the GOA to clarify and strengthen the process, criteria and transparency for allocating competitive GOA grants to local government entities.

2. Assist the Parliament, the GOA, and local governments in improving communication and collaboration around decentralization of local governance.

3. Assist the Parliament, the GOA, and local governments in improving policies, legislation, and processes that affect local government operations, finances, and use of central government assets under local government jurisdictions.

4. Assist the Parliament, the GOA, and local governments in improving legislation and policies that that will increase the predictability, accuracy and transparency of local government budgetary processes.

5. Assist the Parliament and the GOA in improving legislation and policies that will increase participation of civil society groups, and other stakeholders in issues that affect local communities such as revenue distribution, local finances, and local services.

Illustrative Level of Effort (LOE) for Component I

Suggested Labor Category

Suggested Level of Qualification

Illustrative LOE

(workdays)

Chief of Party = Municipal Finance Expert

Key Personnel, See Section E

Senior 520

Decentralization Specialist (local – full time) Senior 1200

Municipal Finance Expert (int’l or local - STTA) Senior 250

I-C) Component I Expected Results

The GOA process of providing competitive grants to local governments is transparent, effective, and equitable among local government entities.

The GOA, local governments, and other stakeholders utilize formal collaborative processes to make legislative and policy decisions that affect local government finances, services, and operations, and use of government assets under local government jurisdictions.

Policies and legislation improved to increase the predictability, accuracy and transparency of local government budgetary processes.

Civil society groups and other non-governmental organizations participate substantially in local government communications and decisions that affect local communities and citizens.

Component II: Improve the efficiency and management of local government operations.

II-A) Component II Problem Statement:

Over the past few years, local governments have become more aware of their responsibilities and more efficient in providing services. Public opinion surveys reinforce this view, showing that local authorities are more engaged in providing services that improve community life. Local governments, however, continue to face significant challenges in such areas as raising revenue, managing public property, recruiting and retaining quality government workers, and delivering quality services. Many of these challenges stem from a lack of public participation in local government decision-making, a lack of public oversight by civil society organization, and a lack of information and communication technology (ICT) that could build e-government solutions. One of the most significant challenges involves poor collaboration with central government institutions. Local governments, for example, have been unable to obtain timely information on financial resources and asset management because of ineffective collaboration with such institutions as the Immovable Property Registration Office, the General

Directorate of Taxation, and the National Registration Center.

II-B) Component II Tasks and Deliverables:

1. Deliver an analysis within the first 90 days of the contract -- that ranks and recommends candidate municipalities and communes for participation in PLGP Components II, III, and IV. Before the contractor begins the analysis, USAID will approve ranking and selection criteria. Once the analysis is complete, USAID will approve the selected municipalities and communes based on the analysis recommendations. Note that this analysis will be a critical activity needed prior to implementing activities under PLGP Components II, III and IV in cooperation with the resulting “Selected Local

Governments.”

2. Deliver an action plan within the first 6 months of the contract -- on how selected municipalities and communes will utilize information and communication technology (ICT) to improve functions in such areas as financial operations, assets management, and procurement. The ICT Action Plan will be consistent with the budget figure for this subcomponent ($700,000) and is subject to USAID COTR approval. The ICT Action Plan will include specifications for purchasing technologically appropriate hardware and software and a training plan for optimally using the hardware and software.

3. Procure ICT hardware and software to help selected local governments with financial operations, asset management and procurement functions. PLGP will budget approximately $700,000 for the selected municipalities and communes, approximately 20 total, for the purchase of the hardware and software and for training on its use. The Contractor will complete training and ICT purchase and installation within the first 36 months of the project. Subcontracts/sub-awards under this subcomponent are subject to USAID Agency review and CO approval in accordance with ADS, FAR and other applicable regulations.

4. Assist on ways for selected local governments to improve the following: tax collection; alternative methods to increase own-source revenues; management of assets under local government jurisdictions;

and the predictability, accuracy and transparency of local government budgetary processes.

5. Assist selected local governments in raising citizen awareness of local government functions, citizen rights and responsibilities, and citizen participation in local government decision-making.

6. Assist municipal council members, in selected municipalities, in developing skills needed to optimally perform their functions.

7. Assist selected local governments in developing skills for writing proposals on accessing relevant EU funding sources for pre-accession.

Illustrative Level of Effort (LOE) for Component II of Qualification

Illustrative LOE

(workdays)

Chief of Party = Municipal Finance Expert

Key Personnel, See Section E

Senior 260

Tax Expert (local – full time) Senior 1250

Asset Management Expert (local – full time) Mid-level 1100

IT Specialist (local - STTA) Senior 850

II-C) Component II Expected Results:

Selected local government operations, accountability and transparency improve.

Selected local governments have the tools, skills, and procedures needed to increase local revenues, to optimally utilize central government assets under their jurisdiction, and to create accurate and transparent public budgets.

Selected local government revenues increase and budgetary processes improve.

Community groups, civil society groups, and other NGOs increase their participation in selected local government decision-making.

Selected municipal councils perform their roles more effectively.

Selected local governments write effective proposals for accessing relevant EU funding for pre-accession.

Component III: Improve local government management and oversight of publically owned utilities, in accordance with EU standards.

III-A) Component III Problem Statement:

In 2007 the GOA transferred ownership of publically-owned utility companies, such as water treatment and waste management, to municipalities and communes. In practice, several local municipalities and communes jointly own the companies and set up joint supervisory boards that oversee them -- ideally ensuring that they are managed properly and effectively serve communities.

Local governments, however, face serious challenges in jointly overseeing the utility companies. Roles and lines of responsibilities among the joint supervisory boards are not clear, thereby minimizing their authority and effectiveness to provide oversight of policies, costs, performance, and compliance with EU standards and EU environmental standards in particular. Local governments lack plans for exercising effective joint oversight and decision-making -- in such areas as appointing staff, approving budgets, analyzing user fees, and monitoring implementation of their decisions. Local governments also lack effective collaboration with GOA regulatory agencies such as the Water Regulatory Agency and the

Association of Water Supplies. Furthermore, local citizens lack the means to understand and provide input into decisions around utilities that affect them.

III-B) Component III Tasks and Deliverables:

1. Assist selected local governments, and supervisory boards in particular, in developing skills, defining roles, and building knowledge needed to effectively manage and oversee jointly-owned utility companies.

2. Assist the GOA and local governments in ensuring that laws, policies, procedures, and services are consistent with EU standards and environmental standards in particular.

3. Assist in improving interaction and communication among the selected local governments, GOA, Albanian regulatory agencies, civil society groups, and other community NGO’s.

Illustrative Level of Effort (LOE) for Component III of Qualification

Illustrative LOE

(workdays)

Chief of Party = Municipal Finance Expert

Key Personnel, See Section E

Senior 260

Water/wastewater expert (local – full time) Senior 1200

Water/wastewater expert (international - STTA) Senior 300

III-C) Component III Expected Results:

Selected local governments effectively oversee jointly-owned utility companies.

Supervisory boards’ roles in selected local governments are better defined and performance improves.

Selected local governments adopt policies and procedures for utilities that are consistent with EU standards.

Selected local governments, GOA regulatory agencies, civil society groups and other NGOs improve communication and interactions.

Component IV: Strengthen the capabilities of the GOA and local governments to plan and manage urban and regional growth.

IV-A) Component IV Problem Statement:

Albania has experienced unmanaged land development in cities and in key areas that are undergoing rapid growth such as coastal regions. Current efforts to deal with land use and construction include the

National Planning Registry and the Law on Territorial Planning which is projected to be effective in

September of 2011. The law requires local governments to create territorial plans and regulations within two years that will be posted on an internet/GIS based National Planning Registry. The new law also creates the National Territorial Planning Agency (NTPA) whose responsibilities include developing a national territorial plan; coordinating all sectorial planning; and providing regulations, guidance, and training to local governments in developing and implementing development controls.

Out of 374 local government units, however, only 15 municipalities have plans that are pending approval, and approval should be based on criteria from a national territorial plan that does not yet exist. Several municipalities and communes which face rapid development – around Tirana, Shkoder, Durres and Vlore

– lack key skills and knowledge needed to prepare territorial plans and use the National Planning

Registry. Furthermore, the NTPA itself lacks skills and knowledge to recruit and train qualified staff, develop budgets and strategies, coordinate with other GOA institutions, develop management processes, and provide information to the public on its roles and functions.

IV-B) Component IV Tasks and Deliverables:

1. Deliver an action plan within the first three months for carrying out this component. The plan will review the NTPA’s existing capacities, lines of authorities, and mandate to effectively implement the

Law on Territorial Planning. The action plan will specify activities that the contractor will carry out to help NTPA improve capacities, clarify lines of authorities and exercise its mandate to effectively implement the Law.

2. Assist the NTPA in developing a conceptual framework for the National Territorial Plan in accordance with the Territorial Planning Law and implementing regulations.

3. Assist selected local government planning departments in developing skills and knowledge to draft territorial plans in accordance with the Law on Territorial Planning.

4. Assist selected local government planning departments in developing skills and knowledge to use of the Geographic Information System to review and update plans.

5. Assist civil society groups, businesses, and other NGOs in increasing participation in and oversight of territorial planning.

Illustrative Level of Effort (LOE) for Component IV of Qualification

Illustrative LOE

(workdays)

Chief of Party = Municipal Finance Expert Senior 260

Key Personnel, See Section E

Urban Planning Expert

Key Personnel, See Section E

Senior 500

Urban Planning Expert (local – full time) Senior 1200

Short Term Experts in territorial planning, in environmental compliance (international - STTA)

Senior 600

IV-C) Component IV Expected Results:

NTPA will improve its capacity to exercise its mandate to effectively implement the Law.

NTPA develops a conceptual framework and implements regulations for the National Territorial

Plan in accordance with the Territorial Planning Law.

Selected local government planning departments increase their capacity to draft and review local territorial plans in accordance with the Law on Territorial Planning.

Civil society groups, businesses, and other NGOs in the selected local governments increase participation in and oversight of territorial planning.

E) KEY PERSONNEL

E-1) Chief of Party (U.S. Expat)

The Chief of Party (COP) must be a US citizen committed through the life of the project. The COP is the primary point of contact with USAID/Albania regarding the day-to-day implementation and management of the contract. Minimum qualifications include the following:

Excellent demonstrated track record of successfully leading and inspiring a multi-disciplinary team under difficult and challenging circumstances;

Experience as a COP with similar projects with USAID.

Minimal seven years of demonstrated experience in municipal finance and decentralization reform in developing countries.

Demonstrated track record in negotiating with a range of stakeholders, from high level government officials to NGO leaders and donors.

Education: An advanced degree preferred in one or more of the following areas: public administration, law, management or other subjects related to this project.

Native English language skills

E-2) Urban Planning Expert (U.S. Expat or Third-Country National)

The Urban Planning expert must be a US citizen or a third country national committed for at least 2 years, 3 years preferred. The Expert will be the primary technical specialist for Component IV.

Minimum qualifications include the following:

At least seven years of demonstrated, successful and progressively responsible experience in urban planning.

At least five years of international development experience.

Strong technical skills and knowledge in spatial planning, familiarity with European standards and planning policies.

A demonstrated track record of successfully managing teams of technical experts related with implementation of programs to achieve a complex set of goals in urban and regional planning.

Education: preferred advanced degree in urban planning or related field.

Other key Personnel: TBD

F) ILLUSTRATIVE DELIVERY SCHEDULE (workdays)

Component Year 1 LOE Year 2 LOE Year 3 LOE Year 4 LOE Year 5 LOE LOP LOE

CompI 300 500 500 500 170 1970

CompII 600 800 800 800 460 3460

CompIII 300 400 400 400 260 1760

CompIV 500 700 500 460 400 2560

Total

Project

1700 2400 2200 2160 1290 9750