PLGP Support for PPPs

Public Private Partnerships (PPPs) provide an opportunity for LGUs to access private financing for purposes of improving the quality and efficiency of public infrastructure and services. For these types of ventures, PLGP has focused efforts in three main directions:

  1. Legislation and Policy Making – Central and local government officials recognize that changes in legislation are required to improve the PPP enabling environment in Albania. As this is one of the areas where both tiers of government agree on the need for improvements, PLGP works to facilitate discussions in this regard and as part of the fiscal decentralization efforts.
  2. General Training and Technical Assistance – PLGP assists partner and non-partner LGUs through general training and publications on PPP concepts, processes and applicable legislation.
  3. Project Specific Technical Assistance – PLGP works with partner LGUs in specific PPP projects by sharing its in-house technical resources as well as cooperating with other USAID and/or other donors’ projects.

At the beginning of 2013, PLGP cooperated with the USAID funded Assist Impact to develop a PPP program to support partner municipalities. Under a USAID funded program, Building Human and Institutional Capacity in Albania, Assist Impact requested proposals from local organizations to work with three local government units to develop feasibility studies for small scale PPP projects and, depending on the feasibility study results, to procure and contract the PPP.

In March, Assist Impact and PLGP completed the evaluation of the project proposals. Three organizations, RDA Korça, URI and Co-Plan, were selected to work in the partner municipalities of Korça, Berat and Fier on PPP projects related to public parking, waste recycling, and public lighting.

The feasibility studies are expected to be completed and presented to the respective municipal councils by July 2013. Following this phase, procurement and contracting of the proposed PPPs are expected to be completed in March 2014.

In early 2013, PLGP organized two workshops on PPPs to raise awareness and capacities at the local level. The first workshop was organized in January and was attended by 30 representatives from PLGP partner communities. The workshop provided participants with an introduction to PPPs for public infrastructure and services. It also presented funded programs in support of PPP initiatives at local levels. The event initiated a thematic discussion on the need to improve existing legislation and/or develop new PPP-specific legal framework.

The second workshop was held in April and was attended by 35 representatives of LGUs and local organizations involved with PPPs in Albania. This workshop enabled participants to find a common definition and rationale for PPP forms, understand effective project selection, and learn more about the PPP process. The workshop reviewed different case studies from international and Albanian experiences, lessons learned, and practical challenges to managing PPPs in Albania.

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