Second Environmental Performance Review of Albania

Chapter 5: Economic instruments and expenditure for environmental protection77Table 5.10: Official development assistance disbursements for environmental protection, 2002-2009,constant 2009 US$ millionsYearEnvironmental protection (all grants)DAC countries, totalMultilateral, totalTotalWater supply and sanitationDAC countries, totalof which grantsMultilateral, totalof which grantsTotalGrand total2002 2003 2004 2005 2006 2007 2008 20091.3 2.5 2.8 2.8 3.7 2.8 2.0 4.43.1 1.7 0.6 2.5 8.4 5.6 5.4 7.34.4 4.1 3.4 5.3 12.1 8.4 7.4 11.716.5 16.4 17.4 23.7 25.1 26.3 28.1 18.310.6 6.6 11.9 15.9 17.4 13.7 22.9 13.75.1 9.8 4.5 6.4 6.0 8.4 8.3 7.7.. .. .. 1.7 0.4 2.6 4.7 6.121.6 26.2 21.9 30.1 31.1 34.7 36.4 25.926.0 30.4 25.3 35.4 43.2 43.1 43.8 37.6Source: OECD Statistics; data extracted on 13 Dec 2011.Table 5.11: Examples of technical assistance projects financed by the United Nations familyProject title Donor Budget, Durationmillion US$Global Solar Water Heating M arket GEF/UNDP 1.88 11/08/2009-11/02/2014Transformation and Strengthening Initiative:Albania Country ProgrammeSupport to respond to the forthcoming EU UNDP 6.12 03/01/2011-04/01/2016accession-related environment requirementsCapacity-building for Ministry of Environment UNEP 0.02 01/01/2009-31/12/2010on multilateral agreementsNational Ozone Depleting Substances (ODS) UNIDO 0.03 08/05/2009-31/01/2011Phase Out Plan (Sixth and Seventh Tranches)Natural Risk Preparedness and M itigation UNESCO 0.14 01/07/2010-31/07/2012With GEF grant funding, which was matched with 5.6 Conclusions and recommendationsthe World Bank’s own funds and other funds, highprofileprojects have been implemented in Albania. Albania already has a range of environment laws thatThese include, most importantly, the US$ 20 million contain “user and polluter pays” principles but it isIntegrated Water and Ecosystems Management not possible to adequately use these laws forProject, completed in 2009, and the ongoing Natural protection of the environment until secondaryResources Development Project which, in addition to legislation is adopted, incorporating the necessary taxthe initial US$ 19.4 million, received an additional rates, fees and charges. It is characteristic of theUS$ 2.5 million from the Swedish International country that there are still no effluent charges inDevelopment Cooperation Agency in 2010 to extend force. However, evidence shows that taxes that arethe scope of its activities. The project was successful levied closer to the source of pollution providein establishing community-based natural resource greater opportunities for innovation than, say,management schemes in communes in upland and product charges. To achieve the desired goals,mountainous erosion-prone lands.secondary legislation needs to have enforceable andmeaningful non-compliance penalties andThe most recent World Bank Group Country enforcement of the law requires there to be clearlyPartnership Strategy (CPS) for Albania, covering the defined competencies within the administration.period 2011-2014, aims to help Albania, in particularto meet its current challenges of reducing At the same time, the “user pays” principle is veryvulnerability to climate change by improving water weak, considering the problems in the collection ofconservation and management, and increasing utility charges. This situation applies to water,disaster preparedness.electricity and waste. As a result, the principle iscompromised and it is very difficult to achieve