Economic governance, regulatory reform, public participation, and pro-poor development in Albania

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Ensuring appropriate public utility access and regulation is a key issue for Albania in its efforts to combat informality, reduce regional disparities, promote social inclusion and meet its MDG targets and prepare for EU accession. Inclusive governance mechanisms are needed to ensure that competing interests concerning public utilities are articulated in a transparent manner, that compromise solutions to investment and pricing decisions that reflect the interests of all relevant stakeholders are found, and that trade-offs between economic growth, consumer protection, poverty reduction, and environmental quality are appropriately managed. Legal and institutional mechanisms will be put in place, capacities of Government, utility regulators and consumer associations will be built and participatory methodologies for inclusive debate and decision-making will be established, to address the non-income dimensions of poverty by improving access to electricity and water services.

Read more about this JP on the Albanian MDG-F DEG JP website.

Main Outcomes

More transparent and accountable governance; Greater participation in public policy and decision-making; Increased and more equitable access to quality basic services; Regional development to reduce regional disparities; and Accelerated environmental sustainable development.

Main Achievements

  • The joint programme has produced a report to help regulatory bodies better monitor the provision and efficiency of public utilities.
  • A model water contract between water utilities and consumers developed by the joint programme is being introduced by all water utility companies, which will regulate the relationship between the parties and eventually improve the quality of the water and sewerage service in Albania.
  • Consumer complaints management system established and web-based National Consumer Complaints Management System launched. The JP has conducted a capacity needs assessment to support consumer rights awareness, and is preparing a number of awareness activities including a documentary and media training. A study on the effectiveness of support to the poor has been drafted to support pro-poor utility policies; a survey conducted on willingness to pay is being used to guide price increases.

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