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USAID/Albania 

Operational Plan 

FY 2006 

June 13, 2006 
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Please Note: 

The attached RESULTS INFORMATION is from the FY 2006 Operational Plan and was assembled 

and analyzed by the country or USAID operating unit identified on the cover page. 

The Operational Plan is a "pre-decisional" USAID document and does not reflect results stemming 

from formal USAID review(s) of this document. 

Related document information can be obtained from: 

USAID Development Experience Clearinghouse 

8403 Colesville Road, Suite 210 

Silver Spring, MD 20910 

Telephone: (301) 562-0641 

Fax: (301) 588-7787 

Email: docorder@dec.cdie.org 

Internet: http://www.dec.org 

Portions released on or after July 1, 2006 
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Program Performance Summary FY 2005: I. Democratic Reform 

A. Country Situation: FY 2004 saw breakthroughs on the democratization front but little improvement in 

governance or the rule of law. One significant improvement was due to the 2005 parliamentary elections. 

The OSCE-brokered bipartisan consensus on changes to the electoral law paved the way for muchimproved July 2005 elections, which were judged to be in “partial compliance” with international 

standards. The elections resulted in a peaceful transfer of power - a milestone in Albania’s 

democratization process and its prospects for EU accession. 

Corruption remains one of the most severe problems undermining Albania’s political system. Despite 

Parliament’s enactment of laws aimed at organized crime and conflicts of interest, the Government of 

Albania’s (GOA) ability or will to implement and enforce compliance with laws remained weak. For its part, 

the judiciary continued to be regarded as among Albania’s most tainted institutions. For the third 

consecutive year, Albania’s score and rank in the Transparency International Corruption Perceptions 

Index worsened. 

This was a consolidation year for Albanian decentralization. There were few visible improvements in local 

governance over the last year; neither was there any serious backsliding. The dialogue between central 

and local authorities over fiscal decentralization resumed at the end of 2005, and began to bear fruit in 

agreement over issues like water and budget transfers. The overall media picture is one of stasis, even 

deterioration. There was no change in the aggregate Media Sustainability Index this past year, and other 

indices purport to show a decline in media independence. Albania’s media outlets are still publicly linked 

to or subordinate to politico-economic interests that color their reportage. Defamation remains a criminal 

offense, which has a chilling effect on news reporting. 

B. U.S. Assistance Priorities: U.S. Government (USG) assistance focused on strengthening civil society; 

fostering citizen involvement in economic and political processes and decision making; increasing the 

transparency of information and citizen confidence in the government and in the accuracy of news and 

information; increasing independence of local administration from central government; and strengthening 

government institutions. Our Rule of Law programs aimed at improving legal institutions and establishing 

more transparency and accountability in the government by strengthening government audit and 

accountability mechanisms and fostering judicial integrity. USG programs also supported nongovernmental organizations (NGOs) and other civil society institutions to promote a watchdog function 

and increase involvement in legal and regulatory reforms. 

C. Program Performance: 

Strengthening Civil Society: Driving civil society improvement in Albania were civic monitoring activities 

that proliferated before, during and immediately after the July 2005 parliamentary elections for which 

USAID provided support. Indeed, the USG was the only international donor to support domestic election 

monitoring. One key organization behind the high impact elections activities was the NGO coalition, the 

Albanian Coalition against Corruption (ACAC). With USAID assistance, the coalition secretariat knitted 

together seven NGOs, which mobilized a record 3,000 volunteers who monitored more than a third of 

Albania’s voting centers and all vote-counting centers. The USG also funded the European Network of 

Election Monitoring Organizations (ENEMO), a coalition of NGOs from Central and Eastern Europe. This 

effort ratcheted up international scrutiny while transferring skills to Albanian election watchdogs. 

USAID funded the first election poll in Albania in April 2005, which triggered a robust media response and 

a vigorous debate about polling and the specific findings of this poll. The findings had an impact on civil 

society and political party behavior during the campaign, especially as parties and candidates began to 

shape their campaigns around issues the poll identified as important to voters. The USAID-funded poll 

was the only one to accurately foreshadow the election result. 

Collectively, these activities had a measurable impact on civil society development. The NGO 

Sustainability Index nudged Albania closer to the consolidation threshold. Albania’s overall index score 

had been on a steady climb since 2000. The Freedom House Nations in Transit annual score (2005) 
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shows a similar rise. Most of the NGO sector in Albania remains heavily reliant on donor funds, though a 

few NGOs this year succeeded in diversifying their sources of support, ensuring their self-sustainability. 

Increasing Media Independence and Professionalism: The longstanding issue of media subordination to 

political and economic interests was more in evidence during the election cycle. Yet there was short-term 

improvement in news coverage as the result of a USAID-funded media monitoring effort. With assistance 

from USAID, three ACAC member organizations surveyed media outlets during the lead-up to the 

elections. This prodded media to compete to balance their campaign coverage in order to comply with the 

Electoral Code. The result was a dramatic improvement in media coverage. USAID moved in to 

consolidate the independent TV network ALBNet with material and technical assistance. While the 

network has yet to serve its intended purpose of improve local reporting, USAID-funded activities did 

produce televised debates in twenty electoral districts, contributing to media professionalism at the local 

level. 

USAID continued to sponsor Hapur, the “60 Minutes”-style investigative TV news show, which maintained 

a lower profile this year, as did its USAID-produced counterpart civic action show, Heroes. State TV 

refused to broadcast the shows in Tirana, the nation’s largest market, shrinking visibility and impact. More 

sensationalized copycat news shows proliferated on commercial channels in Tirana, meanwhile, 

displacing Hapur in audience size and impact. This trend will be reversed in 2006. USAID recently 

secured wider dissemination for the show through a contract with a Tirana television station, which will 

now broadcast weekly Hapur episodes in Tirana. USAID will redouble efforts to preserve media 

independence by strengthening ALBNet, and by emphasizing professional ethics through support for the 

Press Council and other associations. 

Strengthening Democratic Local Governance: USAID addressed fiscal de-concentration and local 

government capacity to consolidate decentralization. One negative factor on program impact was the fact 

that local governments were handed the responsibility of preparing voter lists for the 2005 parliamentary 

elections, diverting resources from city operations while giving local authorities new authority. FY 2005 

was however an expansion year for local government assistance. The USG’s local government and 

decentralization program opened regional offices in Shkodër, Pogradec, Fier, and Gjirokastër, and its 

assistance expanded from 10 to 24 target cities. Some 40 Service Improvement Action Plans (SIAPs) in 

23 local governments were prepared this year and will be implemented in 2006. Local services in USAIDtargeted cities improved modestly in quality and coverage - e.g., in sanitation, water, electrification, and 

street repair. 

Support Free and Fair Elections: USAID/Albania’s elections administration program yielded major results 

this year, with a few disappointments. With additional SEED funds from State/EUR/ACE, USAID 

produced computerized maps of all Albania’s polling units based on new satellite images (also done by 

USAID). These maps proved crucial to the electoral process - helping cities update voter lists, giving 

Parliament a means to ratify electoral districts, and guiding the deployment of international monitors. The 

maps were given to the GOA, thus enhancing sustainability of an Albanian mapping capability. Saddled 

with the burden of preparing voter lists, cities came to rely heavily on USAID maps. Were it not for USG 

support, local authorities would not have met Albanian election law’s rigid deadlines. 

Other assistance to the Central Elections Commission (CEC) had an impact. Election officials received 

training from USAID experts on voting and counting procedures - instrumental in the context of the new 

electoral law. USAID trained poll watchers and observer NGOs on a potentially problematic feature of the 

law: the centralization of vote counting. USAID published all CEC voting and counting procedure 

manuals, which were placed in all 4,800 polling places and all 100 zonal counting centers. This 

information reduced irregularities despite changes to electoral rules. Jointly with the CEC, USAID 

produced a multimedia voter information campaign that explained the new voting procedures while urging 

people to vote. 

The outcome of assistance was an election regarded by observers as improved in most respects, one 

that produced an orderly transfer of power: a watershed moment for Albanian democracy for which the 

USG can make a claim of attribution. The European Union (EU) specifically cited the electoral process 
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improvement as the primary reason for the expediting of Albania’s association with the EU. 

Political Parties Strengthened: FY 2005 saw the advent of a USAID-funded political party Leadership 

Academy, the signing of compacts between a USG partner and all major political parties to adopt the One 

Member One Vote (OMOV) principle in their party bylaws. That principle was put into practice by the 

Socialist Party in the selection of its new leadership following the party’s defeat in July 2005. 

Promote and Support Anti-Corruption Reforms: The first year of USAID’s new institutional tack to 

anticorruption yielded results, particularly from support to the High Inspectorate for the Declaration and 

Audit of Assets (HIDAA). The asset disclosure law, enacted in 2004, obliges officials to file declarations of 

assets annually. USAID deployed an on-site advisor to the Inspectorate to train inspectors and assist the 

agency in developing a case management system in order to expedite and improve audits. Modest 

results were apparent despite serious obstacles, including lack of political will and poor quality of 

information received from banks and government institutions. Eight officials were dismissed as the result 

of audits, two audits were referred to prosecutors for investigation in FY 2005, and one official was 

imprisoned. 

The lynchpin of USAID’s anticorruption program is support for watchdogs and key justice associations. 

The Citizens Advocacy Office (CAO), to whom USAID provides direct institutional support, proved a 

visible advocate for judicial reform by launching class action lawsuits and coming out in favor of multiple 

reforms, including one aimed at the High Council of Justice (HCJ). In order to improve the CAO’s longterm sustainability prospects, USAID helped CAO forge a partnership with Transparency International 

and create a Board of Friends made up of major businesses and donors. USAID supported the National 

Chamber of Advocates (NCA), the professional association for the Albanian lawyers. This project made 

strides with the approval of a revised Code of Ethics to provide for sanctions against lawyers who violate 

its provisions. With USAID prodding, the NCA is set to establish disciplinary committee to enforce the 

Code. 

USAID support to watchdogs and associations produced results in terms of NGO strength and public 

awareness. Both the NGO Sustainability Index and Freedom House Nations in Transit indicators show a 

second consecutive year of gain. Both reports cite CAO’s watchdog activities as one reason for improved 

advocacy and sector sustainability. In terms of public awareness, surveys show a much greater degree of 

sophistication about the extent of corruption and its effects. At the macro level, however, there was little 

change in accepted indices. Transparency International’s Corruption Perceptions Index (CPI) reported 

that Albania suffered a decline (from 2.5 to 2.4) in the perceptions score and global rank. Perceptions 

may indeed worsen as demand for action against corruption becomes more intense, regardless of the 

government response, as there is a time lag between government action and change in perception. 

Improve Justice Sector/Legal Framework: USAID’s assistance to pilot courts and national court 

administrative institutions continued with case management training for the Vlora and Kavaja pilot courts. 

USAID also continued court administration courses in partnership with the School of Magistrates; trained 

Court chancellors on court administration; continued to automate civil and criminal case management in 

Shkoder, Vlore and Kavaja; and trained court personnel. USAID delivered and installed 80 copies of the 

updated legal acts database throughout the judiciary and developed a Customer Bill of Rights and 

Responsibilities, now posted in all pilot courts. The result was improvement in the efficiency and 

transparency in the USAID-supported courts. Despite USG efforts, there was no change in the macro 

measures of legal system performance. The Nations in Transit Index shows a slight drop in the aggregate 

score on legal and judicial reforms. 

In addition to support to institutions, USAID provided assistance to support the enactment and 

implementation of key anticorruption laws, including the Conflict of Interest Law, Media Law, Code of 

Administrative Procedures, and Freedom of Information (FOI) Law. In cooperation with the Ombudsman, 

USAID helped to establish an interagency working group on FOI regulations. USAID recently gave a 

grant to the Albanian Media Institute to formulate a Code of Ethics for Journalists and to set up a Council 

to monitor implementation of this Code. The resulting impact is so far limited, since these laws have yet to 

be successfully implemented. 
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USAID partners contributed to enforce women's legal rights through training for sitting judges and 

students of the Magistrates School on family law, anti-trafficking, and domestic violence. USAID delivered 

a Family Law Bench Book, an Anti-Trafficking Resource Manual, and Gender Legislation Booklet - all 

“how-to” manuals aimed at legal professionals. The USAID-funded Women’s Legal Rights Initiative (WLR) 

developed a Domestic Violence bill which offers new protections to women and children in particular. 

II. Economic Reform Assistance 

A. Country Situation: Continued macroeconomic stability and structural reforms, migrant remittances, and 

increased productivity in 2005 helped Albania achieve significant economic growth, a low level of inflation, 

a decrease in budget deficit and external debt, and an increase in foreign currency reserves. While the 

gross domestic product had been expected to maintain a growth rate of 6%, the International Monetary 

Fund recently downgraded its expectations because of worsening power shortages in late 2005. The per 

capita GDP in 2004 was $2,400, a 23.1% increase from the previous year, and the average annual 

inflation was 2.3%. Public revenue slightly increased to 24.8% of GDP in 2004. Sound financial sector 

policies succeeded in expanding banking intermediation and reducing cash transactions. Bank credit to 

the private sector has grown significantly. 

Despite these impressive achievements, Albania continues to be one of the poorest countries in the 

southeastern region of Europe. About one-fourth of the population lives below the poverty line of $2 per 

capita per day, and the official unemployment rate remains high at 14.6%. Foreign direct investment was 

still among the lowest in the region at $340 million at the end of 2004. Albania’s weak competitiveness 

has stymied broad-based export-driven expansion of the economy. The investment environment remains 

unfavorable due to severe infrastructure deficiencies, weak governance and institutions, unresolved 

property issues, lack of a highly skilled work force, and a large informal economy. The lack of a reliable 

and adequate supply of energy continues to be a major constraint to Albania’s economic growth. The total 

level of bank credit to the private sector, though expanding rapidly, is still the lowest in the region. 

The Albanian Power System relies on hydro-power more than 95% of its electricity generation and 

therefore depends highly on rainfall. Lack of investment in new generation facilities, poor maintenance of 

existing facilities, and limited capacity for energy imports has significantly reduced energy supply in 

Albania at the same time that demand is growing. These problems are compounded by weak institutional 

capacity to effect necessary reforms of the energy sector and inefficient management of the state-owned 

Albanian Power Corporation (KESH). As a result, Albania continues to face serious energy crises that 

threaten the sustainability of its economic growth. 

B. U.S. Assistance Priorities: In 2005, USAID assisted Albania in addressing the issues of SME 

development, unemployment, poverty, trade competitiveness, and foreign direct investment through an 

integrated program. USAID’s program supported the sustained growth of SMEs through (1) improving 

private sector competitiveness; (2) strengthening the financial services sector and increasing access to 

capital; and (3) improving economic policy and the business environment. USAID’s assistance aimed to 

enhance the competitiveness of Albanian enterprises in domestic and foreign markets, increase exports, 

encourage domestic and foreign investments, create jobs, and reduce poverty. 

USAID’s energy sector assistance aims to build the Government of Albania’s institutional, operational, 

and managerial capacities to effectively plan and implement restructuring efforts to improve the energy 

sector and foster a favorable environment for business development and investment. The major objective 

of USAID's program is to strengthen the Electricity Regulatory Entity’s (ERE) capacity to function as a 

fully independent and transparent regulatory body that is able to establish open and transparent policies 

and procedures for tariff setting, licensing and oversight as required for a reliable, environmentally sound, 

and financially self-sufficient power sector. USAID also assists KESH to develop the financial and 

operational management capacities to become an effective participant in the Energy Community for the 

South East Europe (ECSEE) and implement the unbundling of its generation, transmission, and 

distribution assets into independent, stand-alone companies. 
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C. Program Performance: 

Improving Private Sector Competitiveness: Thousands of micro-, small and medium-sized enterprises 

have benefited from USAID assistance to improve capacity and obtain credit. Small dairy and livestock 

farmers have moved from subsistence to small and medium-sized commercial production. Dairy 

processors have increased their revenues by improving the quality and quantity of their products. 

Assisted firms realized significant increases in sales in the specialty tourism, dairy and meat processing, 

herbs and spices, and shoes and leather goods sectors. Assisted enterprises realized $114.05 million in 

domestic sales and $44.58 million in exports. Many assisted enterprises reported increase in sales of up 

to 25% in domestic markets and 28% in export markets. These sale results do not include sales by 

several thousands of micro-enterprises that received loans from the micro-finance activities. 

Strengthening the Financial Services Sector and Increasing Access to Capital: USAID helped SMEs 

access commercial credit through its small business assistance activity and the Development Credit 

Authority (DCA) loan guarantee program established near the end of FY 2005. USAID assisted SMEs in 

obtaining 81 bank loans for a total value of $9.57 million and 6,490 non-bank loans for a total value of 

$16.94 million. The USAID micro-lending program has achieved operational and financial sustainability 

and received an A+ rating from Mikrofinanza, an approved rater based in Italy. 

The DCA loan guarantee is a Global Development Alliance (GDA) activity based on a partnership 

between USAID and the biggest commercial bank in Albania, Raiffeisen, through which USAID used 

$650,000 to leverage $12.0 million of credit for Albanian SMEs. Another GDA activity between USAID 

and Opportunity International is helping to expand access to microcredit into the poor northeast region of 

Albania. USAID contributes $850,000 to a total program cost of $1,650,000. 

Technical assistance was also provided to the Bank of Albania (BOA), the Deposit Insurance Agency 

(DIA), and the Insurance Supervisory Authority (ISA) to improve financial sector stability and strengthen 

public confidence in the banking system in order to increase the flow of capital to the private sector. In 

addition to improving the BOA’s internal operations and supervisory capacity, USAID’s assistance has 

played a crucial role in helping BOA and DIA meet targets set by the World Bank. The value of the 

deposits in the banking system continued the positive growth trend that started in 2001, indicating 

growing confidence in the banking system. Bank deposits increased from $3.46 billion in 2003 to $3.71 

billion in 2004. Deposits at the end of the second quarter of 2005 were reported at $4.09 billion. 

Improving Economic Policy and the Business Environment: USAID assisted the GOA to undertake policy 

and regulatory reforms that enhance the competitiveness of enterprises, improve capacity to benefit from 

the free trade agreements, and encourage investment. Efforts also focused on anti-corruption, business 

ethics, reduction of regulatory and fiscal barriers to business development, improvement of the energy 

sector, and maintenance of a sound financial sector. Free trade agreements between Albania and eight 

countries in the region have entered in force, creating more favorable conditions for regional trade. 

USAID also supported the first registration of immovable property and the implementation of the law on 

property restitution and compensation. The registration of 212,000 properties from 2002 to 2004 was 

completed with USAID assistance. 

Improving the business environment for private sector-led growth and investment has proven difficult 

because of persistent widespread corruption and the lack of political will to address simplification of 

business registration, elimination of administrative barriers, and fiscal reforms. The implementation of the 

Millennium Challenge Corporation Threshold Program in Albania and the pro-business and anticorruption policies of the new Albanian Government are expected to rapidly and significantly improve the 

business environment. 

The lack of a reliable and adequate supply of energy at reasonable costs discourages domestic and 

foreign investment and hinders business development. Successful restructuring of the energy sector will 

make a critical contribution to the improvement of the business environment in Albania. During the 

reporting period, the USAID Energy Program continued to focus on the strengthening of ERE’s capacity, 
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the restructuring of the domestic energy market, and the participation of Albania in the regional electricity 

market. USAID’s assistance was instrumental to the improvement of ERE’s core competencies, 

independence, and transparency. According to the result of a survey conducted among stakeholders in 

September 2005, ERE improved to a medium-high level of independence and transparency, compared 

with the previous year. 

In addition to development of methodology and procedures for setting unbundled tariffs and licensing of 

the Transmission System Operator (OST), qualified suppliers, and several independent power producers, 

ERE prepared and secured approval of sample licenses for import and supply activities, and the 

regulations for withdrawing of licenses. It also prepared the general terms and conditions for Power 

Purchase Agreements. Moreover, a workshop for power sector staff on the application of newly approved 

methodologies and models for unbundled electricity tariffs was conducted. These actions will improve the 

efficiency of the domestic energy market and increase the accuracy and transparency of tariff applications 

submitted by KESH and OST. 

USAID continued to support the partnerships between KESH and OST with several U.S. companies and 

utilities. Three meetings between KESH and Idaho Power Company (IPC), as well as between OST and 

three American utilities (PJM, Northwest Utilities Service, and ISO New England) occurred in Albania and 

the United States. Through this partnership, KESH is improving customer service, as well as policies and 

practices related to metering, billing, and collection. OST learned from its American partners the best 

practices in organizing and managing a transmission system. 

The adoption of the Transitional Market Model (TMM) by the GOA in 2004 represents a significant 

milestone for the USAID Energy Program and sets the stage for the TMM's implementation on a 

financially sound basis in compliance with the ECSEE Treaty. USAID supported a workshop on the 

implementation of the TMM that led to the creation of a working group to facilitate the implementation of 

the market model. 

Expanding and Improving Access To Economic & Social Infrastructure: In 2005 USAID supported an 

energy efficiency evaluation of thermal insulation potential in existing building stock to reduce household 

heating demand. Since 2004, the Government of Albania (GOA) has established a budget-funded Low 

Income Household Energy Assistance program which benefits about 190,000 low income households. 

The USAID activity is helping Albanian decision-makers to balance reduced subsidies with energy 

conservation. Improving thermal insulation of houses will result in lower energy consumption and lower 

household energy bills. 

USAID collaborates with other donors in the economic development of Albania. USAID works with the 

European Commission and the Organization for Security and Cooperation in Europe (OSCE) in property 

registration and the implementation of the law on property restitution and compensation, with GTZ in SME 

development, and with International Monetary Fund (IMF) in improvement of the financial services sector. 

The most important collaboration is in the energy sector, with the World Bank playing the coordinating 

role. 

 

III. Social Reform and Humanitarian Assistance 

A. Country Situation: Despite improvements in the past few years, mortality and morbidity levels in 

Albania remain high. USAID and other analyses indicate that severe fiscal constraints make large 

increases in GOA health investment highly uncertain because of “limited absorptive capacities due to 

inadequate management” of existing resources. Extensive legal, regulatory, financial and programmatic 

reforms of the health care system are prerequisite to raising health indicators to levels comparable to 

those of neighboring countries. 

The GOA is actively encouraging health sector reforms. In 2004, the Council of Ministers approved a tenyear health strategy with the reform of primary health care (PHC) as the foundation. In September 2005, 

the new government program for 2005-2009 was approved by the Albanian Parliament, pledging 

“fundamental reform of the health system at all levels with considerable allocation of public funds.” PHC 
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reforms remain tentative and fragmented. Health resource allocations have been historically highly 

centralized, over-emphasizing costly hospital and specialist care. The poor quality of PHC services and 

endemic corruption have provoked public disdain and low utilization. 

 

B. U.S. Assistance Priorities: USAID’s Health Program is 1) promoting operational PHC models that 

increase capacity to absorb public finance based on higher quality of and greater public demand for 

primary and preventive health services; 2) acquiring and sharing an understanding of health care 

financing and helping the GOA test more efficient ways to invest in the sector; and 3) promoting the use 

of modern methods of contraception to help reduce widespread reliance on pregnancy termination and 

improve spacing and limitation. A USAID health portfolio evaluation was completed in September 2005, 

providing detailed recommendations for strategy refinement. 

 

C. Program Performance: 

Improving Maternal Health and Nutrition and Improving Child Survival, Health and Nutrition: USAID 

increased support for key maternal health services and child survival promotion and services. Model 

services expanded from the pilot region of Berat to four additional regions. PHC centers with one or more 

improved features increased from 18 to 528, and use of PHC services in the enlarged project areas 

increased. A new PHC continuing medical education (CME) curriculum was completed and training 

begun, reaching about 4% of all nurses and midwives at the national level. COPE (Client-oriented 

Provider-efficient) methodology, which was adopted by the Ministry of Health (MOH), was introduced in 

four prefectures for PHC needs assessment, provider and client empowerment, and local team building 

and action plans. The quality improvement program included 856 service providers from 61 health 

centers and 199 health posts. Indices showed subsequent improvements in quality of services. 

A community mobilization campaign was developed and promoted in 30 communities, prompting 

significant increases in demand for PHC services. Given widespread public disdain for PHC, the USAID 

approach to accompany clinical and finance-oriented reforms with effective and widespread PHC 

awareness/demand-generation initiatives is producing good results. 

Supporting Family Planning: Through USAID’s family planning project, sites equipped with trained 

personnel and supplies for family planning services increased from 96 to 170, and knowledge of modern 

methods of contraception and the percent of couples using modern methods increased. Contraceptive 

prevalence rates in the covered areas increased from 8.5% in 2003 to 15% in 2005. During 2005, the 

program reached an additional 32% of centers that did not have access to family planning services and 

modern contraceptives. Service providers at 341 health posts (83% of all service delivery points 

nationwide) now have been trained in supply logistics management. Significant problems remain. Stockouts of key family planning methods continue to be a chronic problem due to poor district and local 

logistics management and administrative delays. The GOA has yet to make its national Contraceptive 

Security Commission and Logistics Management Information System fully functional despite several 

years of external support. 

Preventing and Controlling Infectious Diseases: USAID increased its support for surveillance and control 

of tuberculosis through an umbrella contract. An assessment identified priorities for early detection and 

Directly Observed Therapy Short Course (DOTS) case management, and a tuberculosis (TB) component 

was developed accordingly. Separately, USAID assisted the GOA’s successful re-application to the 

Global Fund for HIV/AIDS, TB, and Malaria (GF). Albania now is eligible to receive considerable GF 

funding for prevention and control of tuberculosis. TB is not especially prevalent in Albania, and the 

objective is to keep it that way. 

Reducing Transmission and Impact of HIV/AIDS: USAID began significant support for the GOA’s AIDS 

program in 2005. Consultant assistance helped develop a national HIV/AIDS monitoring and evaluation 

plan - a critical feature of which was the surveillance of high-risk groups. Directly and through two 

partners, USAID supported design and data collection for a biological and behavioral surveillance survey, 

which included a sample of 1,640 people at risk of HIV/AIDS and sexually transmitted infections (STIs). 

The survey included case detection and treatment and technology transfer for bio-behavioral research, 

rapid testing, and on-going disease surveillance. From all available data, STI and HIV prevalence rates 
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are still low in Albania. 

Financing Primary Health Care: A major achievement during FY 2005 was the testing of a more fully 

functional Health Management Information System (HMIS), which is giving health authorities and 

providers their first sound decision-making tool. PHC centers using standardized patient records, 

automated analyses, and reporting increased from 5 to 50 (about 10% of all centers in the country). This 

new HMIS, tested in Berat and endorsed by the Ministry of Health and HII, was successfully expanded 

during 2005 to more than 320 health centers in five regions. Designed to support health financing system 

reforms, nationwide roll-out is to be completed in 2006. Health care financing reform is a major challenge 

in consolidating PHC improvement and expansion. While continuing to increase PHC capacities, USAID 

is engaged in a policy dialogue with the GOA and other donors, most importantly the World Bank, to seek 

a solution for a single payer system. During the reporting period the GOA signed a decree to grant 

permission to the MOH and HII to begin implementing a single source mechanism which will bring 

transparency to and increase efficiency of PHC financing. 

IV. Other Programs of Significance 

A. Country Situation: Albania is categorized for the fourth consecutive year as a Tier 2 country in the 

State Department’s Trafficking in Persons report. It remains a source country for the trafficking of women 

and children. While there is general agreement on the fact that the border police in Albania and 

neighboring countries are more sensitized about child trafficking, an increasing number of internal 

trafficking cases of “especially ethnic Roma and Egyptian children exploited for forced begging” have 

been noted in the US State Department’s 2005 TIP Report. Regional and international experts consider 

Albania to have significantly decreased as a transit country for trafficking in Western Europe. 

B. U.S. Assistance Priorities: The fight against trafficking in persons remains a regional priority. During the 

reporting period of FY05, USAID/Albania has developed, supported, and implemented the most 

comprehensive anti-trafficking effort in the Balkans. Not only does USAID/Albania have one of the largest 

bilateral anti-trafficking efforts in the Agency, but USAID is also the largest donor in Albania directing 

funds towards prevention of trafficking and better reintegration of former victims of trafficking. USAID 

focuses on the importance of prevention and awareness raising, reintegration and assistance services to 

victims of trafficking, and coordination efforts among local actors. USAID/Albania has taken a leading and 

proactive role in the fight against trafficking, and its strategy is based on the USAID agency-wide antitrafficking approach of addressing the root causes and factors responsible for the phenomenon of 

trafficking of women and children, especially among Albania’s most vulnerable populations. A USAID 

trafficking in persons program evaluation was completed in November 2005, providing detailed 

recommendations for strategy adjustment. 

 

C. Program Performance: 

Anti-Trafficking in Persons: USAID supports two anti-trafficking initiatives in Albania: The Transnational 

Action against Child Trafficking (TACT) and The Albanian Initiative: Coordinated Action against Human 

Trafficking (CAAHT). Both programs have developed a coordinated prevention and reintegration 

approach to address the issue of trafficking in Albania. The TACT project primarily deals with child 

trafficking. The project is implemented along five axes of intervention - prevention, protection, 

reintegration, assisted voluntary return, and coordination. TACT has a transnational and bilateral 

approach, which encourages coordination of anti-trafficking efforts within Albania and across its borders. 

The CAAHT project provides coordination and technical support at the national and regional level to 

leverage existing anti-trafficking activities. This umbrella contract aims to strengthen the capacity of civil 

society to more effectively combat trafficking in Albania. 

The TACT project has expanded its geographic coverage to 17 districts out of 36, sensitized 35,764 

children and community members to the dangers of trafficking in persons, provided followed-up protection 

to 1,229 children, and reintegrated 560 children into school, while seeking comprehensive, sustainable 

solutions to child trafficking. TACT continues to coordinate child protection with its Greek NGO partner, 

Arsis, in Athens and Thessalonica. A strong oral commitment was recently made by the Greek 

Government to join TACT's anticipated follow-on activity, TACT3, and commit 600,000 Euro to its 

implementation over the next three years through Hellenic Aid fund to Arsis in Albania. This action is an 
11

important step forward for the program and its efforts to hold government accountable and get them 

directly involved with Greek, Albanian, and international NGO actors. Inclusion of the GOA as a signatory 

partner in this activity has also been encouraged, and increasingly, TACT has sought the involvement of 

public government institutions. The memorandum of understanding (MOU) between the TACT 

implementer and the Ministry of Labor and Social Affairs strengthened cooperation with public social 

structures at the local and regional levels. TACT also provided ongoing training to State social services 

staff with the aim of exchanging and enhancing current good practices in the fight against child trafficking. 

An MOU was signed in July 2005 between the TACT implementing partner and the General Directory of 

State Police of Albania, which formalizes and expands the existing cooperation between both parties. 

This past year, CAAHT has awarded a total of 23 grants to local and international NGOs in the areas of 

prevention and reintegration, thus establishing at least one anti-trafficking activity in all 12 of Albania’s 

regions. The project brought stakeholders together through 18 bi-monthly Regional Cluster Group (RCG) 

meetings which will continue at a more local and practical implementation level. Through the project 

7,285 people were reached by public awareness and education media campaigns about the risks of 

trafficking in persons and 95 survivors of trafficking received services. A total of 66 officials were 

educated or trained through the project about trafficking in persons. The project exceeded its targets in 

terms of prevention and awareness but fell short of its targets on trainings of officials and number of 

victims assisted. 

There are two ongoing key external challenges stemming from the Albanian environment. First, civil 

society is relatively young and weak in this country. Many Albanian NGOs still having difficulty 

implementing programs to address problems they recognize. A separate challenge from the environment 

is the number of different governmental divisions, NGOs and international agencies involved in providing 

direct assistance to victims of trafficking. They do not systematically share case information nor contribute 

to one consolidated database that can develop dependable, comparable case-based victim profiles and 

data. Both of USAID’s anti-trafficking projects are working to address these issues. 

It is anticipated that given the nature of trafficking and its root causes in rural and urban poverty, 

economic and political instability, corruption, unemployment, poor education, abuse of human rights and 

violence against women and children, anti-trafficking activities should increasingly involve cross-cutting 

elements, including education, health, democracy and governance, agricultural, and microcredit. Followon activities in anti-trafficking will include micro-credit and lending activities in an effort to assist vulnerable 

populations with employment and economic stability. 

USAID efforts in combating trafficking complement other U.S. Embassy initiatives, including those of the 

Department of Justice (DOJ), which are working in the areas of law enforcement, interdiction, 

prosecution, and witness protection in Albania. The DOJ assisted the Ministries of Public Order and 

Justice in the drafting of the recently passed witness protection legislation and strengthen the 

transparency in the courts, while providing assistance to witnesses pending this law’s full implementation. 

The result of these partnerships is a collaborative and comprehensive response to the phenomenon of 

trafficking in persons. 

Fostering Religious Harmony: In its first year of implementation, USAID’s Fostering Religious Harmony 

Program helped to induce Albania’s major religious groups to seek common ground and collaborate in 

visible ways. Interfaith workshops were conducted on everything from conflict resolution to leadership, 

human rights, and cooperation. A grant-making component specifically targeted mixed-faith communities 

with the aim of fostering interfaith teamwork on local development projects. The project spawned 

Albania’s first interfaith summer camp, which afforded 120 youths from Albania’s major religious groups 

the chance to share experiences and concerns while learning about each others’ faiths. Finally, a 

televised interfaith discussion was sponsored and two interfaith advisory committees in two target cities 

were established. 

Human and Institutional Capacity Development: In FY2005, USAID implemented 34 training programs 

were organized and 15 small grants in direct support of USG objectives. Through the Participant Training 

Program, 3781 Albanians participated in training, whether tailored programs, conferences or through 
12

grants. Seventeen Albanians took part in training or conferences in the United States, while another 163 

took part in training programs or conferences in other Western or Central European countries. Of those 

participating in programs abroad, 53% were women. USAID also sponsored 11 in-country training 

programs in which 448 Albanians were trained in tailored programs and 2289 benefited from conference 

support. In addition to training programs, USAID awarded 15 grants to former training program 

participants to implement training related follow-on activities. Whether through carrying out grant activities 

or in-country training programs, many inexperienced local organizations and institutions improved their 

ability to organize and financially manage effective training and development activities. 
13

FY 2006 Program 

SO: 182-0130 Growth of Self-Sustaining Private Enterprises in Target Sectors 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($175,000 AEEB). USAID will continue 

strengthening the government’s capacity to undertake appropriate actions to improve the business 

climate for private sector-led growth and investment. Special efforts will focus on policy and regulatory 

reforms in the areas of trade, finance, and energy, as well as on the promotion of simplified business 

registration, competitiveness, good governance, and business ethics. Principal contractor: Development 

Alternatives, Inc. (DAI) (prime). 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($4,655,000 AEEB, $248,000 AEEB carryover, $159,000 AEEB 

prior year recoveries). Technical assistance and training in technological innovations, business 

management, and marketing will be provided to micro, small and medium-sized enterprises (SMEs) to 

strengthen their competitiveness and market capability. USAID will focus on the following areas: 1) 

transforming leading SMEs into large scale production entities to take advantage of economies of scale, 

resulting in higher productivity, lower production costs and consequently lower competitive prices; 2) 

encouraging investments throughout vertical integration in the targeted sectors; 3) adopting internationally 

recognized quality standards to improve domestic market share and meet international export threshold 

requirements; and 4) penetrating international markets. USAID will expand its assistance to other sectors 

of high growth potential such as fresh and processed horticultural products. A new activity will support 

agricultural marketing by addressing major constraints at the lower end of the market value chains. 

USAID’s efforts will help over 8,000 participating enterprises increase their sales to $120 million in 

domestic markets and $50 million in export markets. Principal contractors, grantees, and agencies: DAI 

(prime), Land O’Lakes, FFF Associates, Training Resources Group (TRG), and Institute for Development 

Research and Alternatives (IDRA) (subs); Chemonics International (prime) and other contractors TBD. 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen the Financial Services Sector & Increase Access to Capital ($800,000 AEEB, $564,000 AEEB 

carryover). In addition to supporting the micro-lending program, USAID will continue to help small and 

medium-sized enterprises access commercial credit through its small business assistance activity and the 

Development Credit Authority (DCA) loan portfolio guarantee program established at the end of FY 2005. 

The value of credit extended to USAID-assisted enterprises will reach at least $20 million. In addition, 

USAID provides technical assistance to the Bank of Albania to improve financial sector stability and 

strengthen public confidence in the banking system in order to increase the flow of capital to the private 

sector. The Bank of Albania will further strengthen its internal operations and its capacity to supervise the 

Albanian banking system. USAID will also continue to assist the Deposit Insurance Agency and the 

Insurance Supervisory Authority. Principal contractors/grantees: Chemonics International and Financial 

Services Volunteer Corps (FSVC)(primes). 

FY 2007 Program 

SO: 182-0130 Growth of Self-Sustaining Private Enterprises in Target Sectors 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($175,000 AEEB). USAID will continue to assist 

the government to undertake policy and regulatory reforms that enhance the competitiveness of Albanian 

enterprises and encourage domestic and foreign investments. Efforts will focus on anti-corruption and 

reduction of regulatory and fiscal barriers to business development, improvement of the energy sector, 

and the maintenance of a sound and well-regulated financial sector. The expected outcome will be the 
14

improvement of Albania’s competitiveness index. Principal contractors/grantees: DAI (prime), and (IDRA) 

(sub). 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($3,145,000 AEEB). USAID will continue efforts to improve the 

competitiveness of the Albanian private sector, building on the results achieved in previous years. 

Emphasis will be increasingly placed on a cluster-based approach in order to maximize the economic 

impact of USAID assistance. Assistance to stimulate investment in vertical integration in targeted sectors 

will be intensified. Industry-wide interventions will be used to address issues such as lobbying for 

changes to government policies and administrative regulations, training activities to bolster the skilled 

labor force and to increase management capabilities, providing general market research for both 

domestic and export markets, and other situations where project activities can simultaneously benefit 

multiple firms in the same industry or in different industries. Over 10,000 private enterprises will benefit 

directly or indirectly from USAID’s assistance to improve the sales of their products and services in 

domestic and international markets. Principal contractors/grantees: DAI (prime), FFF Associates, TRG, 

and IDRA (subs). 

Strengthen The Financial Services Sector & Increase Access to Capital 

Strengthen The Financial Services Sector & Increase Access to Capital ($1,230,000 AEEB). USAID will 

continue to support credit assistance programs that make credit available and accessible to private 

enterprises for technological innovations, product diversification and business expansion. More small and 

medium-sized enterprises will utilize the DCA loan portfolio guarantee program to obtain loans from 

commercial banks. The total value of credit extended to assisted private enterprises is expected to reach 

$22 million. Efforts will be made to further improve the capacity of financial institutions such as the Bank 

of Albania, the Deposit Insurance Agency, the Insurance Supervisory Authority, and the Financial 

Intelligence Unit of the Ministry of Finance to help strengthen Albania’s financial regulatory environment 

and provide a more secure, efficient, and transparent financial system to meet the credit, savings and 

insurance needs of businesses and individuals. Principal contractors/grantees: Chemonics International 

(prime), and FSVC (prime). 

FY 2006 Program 

SO: 182-0210 Increased Involvement of Civil Society in Economic and Political Decision Making 

Establish & Ensure Media Freedom & Freedom Of Information 

Establish & Ensure Media Freedom & Freedom Of Information ($500,000 AEEB). USAID assistance will 

work to create a professional media. Activities include: 1) production assistance to broadcast media on 

televised investigative news shows; 2) assistance to Albania’s first independent television network 

(ALBNET); 3) support to the Union of Journalists to enhance media independence and investigative 

reporting. Assistance will equip journalists with the skills to monitor financial disclosures and expose 

private as well as public sector ethical lapses. Principal contractors/grantees: National Democratic 

Institute (NDI)(prime), Partners for Democratic Change and The International Research and Exchanges 

Board (IREX)(subs). 

Promote and Support Credible Elections Processes 

Promote and Support Credible Elections Processes ($300,000 AEEB). USAID's provision of technical 

assistance for the election process is aimed at updating the civil registry in concert with the European 

Union and Albanian Ministry of Interior, which recently put forward a plan to implement a centralized 

registry with street addresses, utilizing USAID-produced digitized maps. Principal contractor: IFES 

(prime). 
15

Strengthen Civil Society 

Strengthen Civil Society ($1,327,000 AEEB, $56,461 AEEB carryover, $1,560 AEEB prior year 

recoveries). USAID will help nongovernmental organizations (NGOs) increase pressure on the 

Government of Albania to enforce anticorruption measures. In addition to financing domestic monitoring 

of the 2006 local elections, USAID will award grants to 25 NGOs from the Albanian Coalition Against 

Corruption to monitor implementation of anticorruption laws. USAID also aims to strengthen government 

accountability by training two independent Albanian organizations to administer polls with national 

samples ahead of the 2006 local elections. The Peace Corps Small Project Assistance program will 

provide assistance and training to local communities and governments for local economic development. 

Principal grantee: National Democratic Institute (NDI) (prime), PDC (sub). 

Strengthen Democratic Political Parties 

Strengthen Democratic Political Parties ($500,000 AEEB). USAID will provide training and technical 

assistance on a bi-monthly basis to the second class of party activists through a curriculum at the 

Leadership Academy founded by USAID in 2004. This year’s focus will be political party financing. 

Principal grantee: NDI (prime). 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government & Decentralization ($1,400,000 AEEB). USAID assistance in this 

area is aimed at consolidating the decentralization process by enabling local governments to assume 

functions transferred to them by the central government and to improve the quality of locally provided 

public services. Four field offices became operational in FY 2005, and now give assistance to 

municipalities in 22 of the 36 districts. USAID will support citizen participation in local government 

budgeting through the service improvement action planning process. On the decentralization side, 

USAID will help associations formulate policy improvements to give authority to local governments. 

Special attention will be given to debt financing and the harmonization of laws affecting the 

decentralization process for key services. Principal contractor: The Urban Institute (prime). 

FY 2007 Program 

SO: 182-0210 Increased Involvement of Civil Society in Economic and Political Decision Making 

Strengthen Civil Society 

Strengthen Civil Society ($1,754,000 AEEB). USAID plans to continue the civil society watchdog, polling 

and media activities outlined above. As there will be no elections during this period, the program’s 

emphasis will be on monitoring anticorruption reform implementation. Contractors and grantees: to be 

determined (TBD). 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government & Decentralization ($1,500,000 AEEB). USAID plans to continue 

to support activities outlined above. Contractors and grantees: TBD. 

FY 2006 Program 

SO: 182-0220 Legal Systems that Better Support Democratic Processes and Market Reforms 

Promote And Support Anti-Corruption Reforms 
16

Promote and Support Anticorruption Reforms ($1,300,000 AEEB). USAID will give technical assistance 

and training to audit institutions to increase their performance and compliance with anticorruption laws. 

USAID will train staff of the High Inspectorate for the Declaration and Audit of Assets (HIDAA) as well as 

staff from other relevant agencies implementing asset disclosure and conflict of interest laws. USAID will 

continue to assist the government bodies charged with inspecting and supervising the judiciary. USAID 

will help the Albanian bar association create a disciplinary mechanism to regulate and sanction unethical 

behavior of lawyers. USAID will also provide support for legislative reform, and help the Citizens 

Advocacy Office (CAO), a watchdog non-governmental organization, sustain its offices in Tirana and 

Durres and expand to two more cities. USAID will support the Albanian Media Council, a new association 

of journalists and media owners, as a means of promoting professional ethics among journalists. Principal 

contractors/grantees: Casals & Associates (prime), East West Management Institute, Institute for Policy 

and Legal Studies, CAO, and Albanian Media Institute (subs). 

Strengthen the Legislative Function/Legal Framework 

Strengthen the Legislative Function/Legal Framework ($600,000 AEEB, $100,000 AEEB carryover, 

$150,000 AEEB prior year recoveries). USAID will assist and train the Ombudsman and other 

government bodies charged with the implementation of the freedom of information law and administrative 

procedure code. USAID will also help journalists prepare a press law, draft a code of ethics, and assist 

with creating a self-regulatory body to oversee implementation of the code. Finally, USAID will give 

technical assistance and training for the implementation of Intellectual Property (IP) laws to lawyers, 

judges, and prosecutors to increase their knowledge on IP. Principal contractors/grantees: Casals & 

Associates (prime), East West Management Institute, Institute for Policy and Legal Studies, CAO, and 

Albanian Media Institute (subs). 

FY 2007 Program 

SO: 182-0220 Legal Systems that Better Support Democratic Processes and Market Reforms 

Promote And Support Anti-Corruption Reforms 

Promote And Support Anti-Corruption Reforms ($1,035,000 AEEB). The activities funded in FY 2006 will 

continue to receive support in FY 2007. Technical, financial and training efforts will enable HIDAA to 

bring forward cases of fraudulent asset declarations, enable the judicial inspectorates and the chambers 

of advocates to bring forward cases of unethical behavior of judges and lawyers in order to make the 

political and judicial systems accountable for their actions. Contractors/grantees: to be determined (TBD). 

Strengthen the Legislative Function/Legal Framework 

Strengthen the Legislative Function/Legal Framework ($500,000 AEEB). The activities funded in FY 2006 

will continue to receive support in FY 2007. USAID will continue to assist and train the Ombudsman and 

other government bodies charged with the implementation of the freedom of information law and 

administrative procedure code. USAID will also continue to assist with the implementation of the press 

law and the journalists’ code of ethics, once they are approved. Finally, USAID will continue to give 

technical assistance and training for the implementation of IP laws to lawyers, judges and prosecutors to 

increase their knowledge on IP. Contractors/grantees: TBD. 

FY 2006 Program 

SO: 182-0320 Improved Selected Primary Health Care Services at Targeted Sites 

Address Other Health Vulnerabilities 

Address Other Health Vulnerabilities ($800,000 AEEB, $266,000 AEEB carryover). Better local 

management of chronic diseases and disabilities will become part of PHC system reforms in 2006. 

USAID will continue support for GOA health financing reforms to consolidate public funds for PHC into a 
17

"single source payer" and to introduce managerial autonomy and performance-based contracting for PHC 

providers. Operational tests will begin region-wide in Berat and sites in Lezha district. In 2006, a new 

health management information system (HMIS) will be modified and extended nationally to monitor 

resource flows and provider performance, with the goals of supporting insurance reforms and improving 

supervision of the Ministry of Health (MOH). Principal contractors/grantees: University Research 

Corporation (URC)(prime), Bearing Point (sub) and World Council of Hellenes (prime). 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health & Nutrition ($500,000 AEEB, $200,000 AEEB carryover). USAID will 

continue supporting better identification of local PHC needs and the integration of essential peri-natal, 

infant, and child health services into PHC. Integration aims to increase access to higher quality services 

by bringing them closer to consumers, promoting “one-stop shopping” for basic PHC services, increasing 

continuity of care, improving provider performance, reducing missed opportunities, and increasing public 

demand for PHC while reducing reliance on more costly specialist care. PHC centers with the improved 

package of services should increase from 571 in 2005 to 900 in 2006. Principal contractor: URC (prime). 

Improve Maternal Health & Nutrition 

Improve Maternal Health & Nutrition ($450,000 AEEB). USAID will continue to support the integration of 

key maternal health services into the national PHC system. The percent of service providers trained or 

refreshed in PHC's Continuing Medical Education (CME) will increase from four percent of all nurses and 

midwifes at the national level to just over 1,000 nurses and midwifes, or about 12%. Training in quality 

improvement for general practitioners will begin during 2006. Principal contractor: URC (prime). 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent & Control Infectious Diseases Of Major Importance ($100,000 AEEB). USAID will continue 

support for surveillance and control of tuberculosis (TB). During 2006, more than 550 general 

practitioners and 1,000 nurses will be trained in TB early detection and proper DOTS (Directly-Observed 

Therapy, Short Course) case management. TB will be included as an element in the new USAIDsupported PHC's Continuing Medical Education program. Groups will be trained and equipped with TB 

educational materials in 40 communes. Principal contractor: URC (prime) 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission & Impact of HIV/AIDS ($100,000 AEEB, $396,000 AEEB carryover). USAID will 

continue support for the government’s National AIDS Program (NAP) monitoring and evaluation. Based 

on 2005 baseline findings from a sample of 1,640 people at highest risk of HIV and sexually transmitted 

infections (STI) in the capital city, HIV/STD surveillance will be extended outside the capital during 2006 

and the research will be used for policy and behavior change actions. HIV prevention will be integrated 

into PHC services. USAID will continue collaboration with Albanian partners to implement the grant from 

the Global Fund for HIV/AIDS, TB, and Malaria, which includes technology transfer for HIV prevention 

and control to the Albanian Ministry of Health and the Albanian Institute of Public Health. Principal 

contractor: URC (prime). 

Support Family Planning 

Support Family Planning ($300,000 AEEB). USAID will continue support to increase use of modern 

methods of contraception for delaying first births, improving spacing, and reducing unwanted 

pregnancies. By the end of 2006 100% of the districts of Albania will have the capacity to provide family 
18

planning services at PHC sites; the number of service delivery points will increase from 300 in 2005 to 

466. The number of providers trained by Ministry of Health (MOH) master trainers will increase from 100 

to 178 general practitioners and from 204 to 375 nurses and midwifes. Combinations of mass media, 

print materials, and community mobilization will increase awareness of access to family planning methods 

and services and promote demand; campaigns in 2006 are expected to reach 80% of all married couples. 

Technical assistance will support logistics management and the MOH-led Contraceptive Security 

Commission, which aims to achieve uninterrupted supplies of contraception at the national level. Principal 

contractor: URC (prime). 

FY 2007 Program 

SO: 182-0320 Improved Selected Primary Health Care Services at Targeted Sites 

Address Other Health Vulnerabilities 

Address Other Health Vulnerabilities ($700,000 AEEB). Technical assistance will continue for 

improvement of PHC services for priority non-communicable diseases, national roll-out of the HMIS 

system, and health system finance reforms. Contractors and grantees: to be determined (TBD). 

Improve Child Survival, Health & Nutrition 

Improve Child Survival, Health & Nutrition ($618,000 AEEB). Support will continue for a national roll-out of 

integrated, essential PHC services for infant and child health and maternal health. Contractors and 

grantees: TBD. 

Prevent & Control Infectious Diseases Of Major Importance 

Prevent & Control Infectious Diseases Of Major Importance ($100,000 AEEB). USAID will support 

national TB surveillance, technology transfer, and assessments of prevention and treatment actions. 

Contractors and grantees: TBD. 

Reduce Transmission & Impact Of HIV/AIDS 

Reduce Transmission & Impact Of HIV/AIDS ($100,000 AEEB). USAID will continue support to the GOA 

National AIDS Program for monitoring HIV and STI among high-risk people and for analyses of the 

effectiveness of prevention activities. Contractors and grantees: TBD. 

Support Family Planning 

Support Family Planning ($300,000 AEEB). Support will continue to attain nearly 100% of married 

couples nation-wide having access to modern methods of contraception. Contractors and grantees: TBD. 

FY 2006 Program 

SO: 182-0410 Special Initiatives 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($750,000 AEEB, $949,000 AEEB prior year 

recoveries). USAID’s technical assistance and training will focus on legal and regulatory development; 

implementation of the approved transitional energy market model; and managerial capacity building. The 

Albanian Electricity Regulatory Entity (ERE) will be assisted to continue improving its regulatory capacity 

and increase its independence and transparency. Assistance will be provided for the harmonization of 

power sector secondary legislation for domestic and regional electricity markets and for the improvement 
19

of the financial management of KESH (the state-owned power company). An energy management 

training course will be organized for managers and specialists from the energy-related sectors. The 

USAID-supported partnership between ERE and the Indiana State Utility Commission, between the 

United States Energy Association (USEA) and KESH, as well as between Albanian Transmission System 

Operator (OST) and representatives of three utilities in the United States will continue to expose Albanian 

specialists to utility management best practices for metering, billings, and collections. Principal 

contractors: Pierce Atwood, Hunton & Williams, USEA, National Association of Regulatory Utility 

Commissioners (NARUC)(primes). 

Reduce Trafficking In Persons 

Reduce Trafficking In Persons ($1,530,000 AEEB, $264,000 AEEB carryover). USAID will continue to 

fund efforts to decrease child trafficking, focusing along five key axes of intervention: prevention; 

protection; assisted voluntary return; reintegration; and coordination. Ongoing programs include school 

prevention and summer camp/community activities that offer a source of identification, prevention, and 

intervention for children at-risk. Coordination efforts along these axes will continue with a nongovernmental organization partner in Greece, with particular attention given to safe, fast, and voluntary 

return of unaccompanied children detected in Greece. Assistance to combat trafficking in women and 

girls will focus specifically on prevention, reintegration, coordination, and NGO capacity building. The 

activities of 23 grants will be evaluated for impact and potential for sustainability in: social and political 

advocacy; technical assistance to shelters; institutional capacity building; and prevention and 

reintegration activities for victims of trafficking. USAID will continue to fund the maintenance of a 

database, which has compiled a comprehensive set of data on anti-trafficking activities being 

implemented by local actors throughout the country, and will be expanded with input from the 23 

grantees. Support for Regional Cluster Groups (RCGs) involving local, international, and Government of 

Albania (GOA) anti-trafficking stakeholders will shift from a regional to a local approach. Principal 

contractors/grantees: Creative Associates International, Inc. (CAII), Terre des hommes (Tdh)(primes). 

Strengthen Civil Society 

Strengthen Civil Society ($194,000 AEEB carryover). USAID will continue to support interfaith dialogue 

with community initiatives and media related activities. Special attention will be given to women, youth, 

and local religious groups. Religious communities will continue to design and implement small grants. A 

documentary film to promote interfaith tolerance will be made. A regional network of interfaith activities 

will be established and advisory committees will be formed in the remaining target cities. Principal 

contractor: World Learning (prime). 

FY 2007 Program 

SO: 182-0410 Special Initiatives 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($500,000 AEEB). USAID plans to continue its 

technical assistance and training for the legal and regulatory development for ERE and the improvement 

of the national energy market. Principal contractors/grantees: Pierce Atwood, USEA, NARUC (primes). 

Reduce Trafficking In Persons 

Reduce Trafficking In Persons ($1,343,000 AEEB). USAID plans to fund activities to increase the 

capacity of social services and support the creation of a national child protection net. USAID plans to 

reduce the vulnerability of women and children by by empowering minorities and strengthening civil 

society’s involvement in anti-trafficking efforts and improving coordination and information management 

among stakeholders. USAID plans to strengthen RCG participants’ institutional capacity and to increase 
20

collaboration among service providers and anti-trafficking stakeholders. A national trafficking database 

will be further developed. Principal contractors: Tdh (prime) and others TBD. 

FY 2006 Program 

SO: 182-0420 Cross-Cutting Programs 

Program Support 

Program Support ($2,814,000 AEEB, $171,806 AEEB carryover). These activities benefit the total USAID 

program. USAID will continue its training efforts in support of the growth of private enterprise, 

strengthening citizen participation, the rule of law, improved health care, and initiatives in support of 

energy provision, anti-trafficking and religious harmony. Nearly 900 participants will be trained this year 

in-country and abroad. Technical expertise will be provided to assist institutions in the sectors of energy, 

anti-trafficking, local governance, economic growth and health. 

Several training sessions will improve the technological and marketing capacity of private firms in sectors 

such as tourism and agro-business. Training will also assist institutions dealing with agricultural extension 

and those offering loans to the micro, small and medium-sized enterprises. Approximately 275 people 

will receive training that contributes to the growth of private enterprise. 

USAID will increase citizen participation and strengthen the legal system by providing training, technical 

assistance or grants. Specifically, assistance will be provided to nearly 200 participants: to the 

Association of Municipalities and local governments with the aim of providing better local services; to 

political parties and local candidates to improve campaign management skills; and to rural citizens in 

order to increase advocacy skills. Training will be provided for over 30 participants in support of the 

bodies responsible for judicial inspection, the National Chamber of Advocates, and the Ombudsman’s 

office. 

Training programs and grants will be utilized to improve primary health care with interventions designed 

to assist the Albanian Health Insurance Institute with its health information systems, rural health centers 

with contract negotiation and management and health promotion, as well as flow of data for 

contraceptives. Approximately 150 participants will receive training for health related activities. 

Training programs and grants will also focus on issues related to energy, human trafficking, and religious 

harmony. Nearly 300 people will benefit from training or technical assistance in these fields. Principal 

contractor: World Learning (prime). 

The Audit, Evaluation and Program Support (AEPS) program serves as the principal resource for activity 

design, evaluation, and program support. AEPS continues to fund Foreign Service National and U.S. 

Personal Service Contractors positions in support of specific strategic objectives. The Mission also uses 

these funds to train staff and implement the Agency’s performance-based management policies. In 

addition, these funds will be used for the lease and other services related to the relocation of USAID 

offices. 

FY 2007 Program 

SO: 182-0420 Cross-Cutting Programs 

Program Support 

Program Support ($2,273,000 AEEB). USAID plans to continue its training, technical assistance, 

institutional performance assessment and small grants programs. Work in private enterprise is planned to 

support next step efforts in small and medium enterprise development including tourism, meat-processing 

and other agro-business, access to credit and improved business environment. Training programs and 

small grants in support of informed citizen participation and strengthened rule of law in FY 2007 are 

planned to strengthen the ability of institutions and organizations to fight corruption and offer improved 

services to citizens at the municipal level. Resources will also continue to focus on strengthening the 
21

quality of primary health care and access to family planning as well as initiatives in anti-trafficking and 

energy. Principal contractor is: World Learning (prime). 
22

Results Framework 

182-0130 Growth of Self-Sustaining Private Enterprises in Target Sectors 

Program Title: Economic Restructuring and Agriculture Development 

 IR 1: Competitiveness Capacity of Assisted Enterprises Strengthened 

 IR 2: Access of Assisted Enterprises to Financial Resources Increased 

 IR 3: Competitive Bussiness Environment Improved 

182-0210 Increased Involvement of Civil Society in Economic and Political Decision Making 

Program Title: Civil Society 

 IR 1: Citizen Participation in Public Discussions on Key Governance Issues Increased 

 IR 2: Increased Citizen Confidence in Accuracy of News and Information 

 IR 3: Increased Independence of Local Administration from Central Government 

 IR 4: Representative Government Institutions Strengthened 

182-0220 Legal Systems that Better Support Democratic Processes and Market Reforms 

Program Title: Rule of Law 

 IR 1: Legal Sector Institutions Improved 

 IR 2: Complementary Measures for a More Transparent Legal Sysem 

182-0320 Improved Selected Primary Health Care Services at Targeted Sites 

Program Title: Improving Primary Health Care (PHC) in Albania 

 IR 1: Health Resources Efficiently Managed 

 IR 2: Quality of Primary Health Care Services Improved 

 IR 3: Use of Primary Health Care Services Increased 

182-0410 Special Initiatives 

Program Title: Special Initiatives 

182-0420 Cross-Cutting Programs 

Program Title: Cross-Cutting Programs