News

UPP Technical Workshop on Municipal Finance and Urban Audit

October 25-26, 2018 - Vlore, Albania

On October 25-26, 2018, in Vlore, Albania, the Urban Partnership Program in collaboration with theMunicipality of Vlore welcomed around 40 participants from Albanian and Macedonian cities and municipalities, as well as representatives from the Ministry of Finance from both countries and from the Albanian Association of Municipalities (AAM), to share experiences, challenges, and best practices with their peers, in a trusting and familiar context.

 

The UPP has been fostering financial management and sustainable urban development, as well as supporting capacity building with a network of local experts in the region, through the Municipal Finance Self-Assessment, the Urban Audit and related tools. In the latest UPP survey, 67% of respondents said that the MFSA helped to improve the financial management of municipalities and 82% that the UPP improved the delivery and quality of municipal services to citizens. The success of the program that has involved more than 80 municipalities and 500 practitioners and decision makers is mainly due to regular interactive workshops and events where experts have the opportunity to exchange best practices and discuss solutions to main issues of local finance and development with their peers from neighboring countries and beyond.

 

The main focus of the workshop was the presentation of the new MFSA V2.0 application to participants after the testing phase and before its official launch. As most of them have already worked on the previous version of the MFSA, presenting the new configuration of the web-based platform, how it operates and what are the benefits for the municipalities using the tool, was greatly appreciated. Participants were given a chance to test the MFSA V2.0 together with local experts and tried to identify aspects that could be improved. The received feedback, comments and recommendations for further improvement of this tool were collected and will be presented during the City to City Dialogue. The MFSA V2.0 application is currently being tested with users, revised and customized, and it will soon befully released and disseminated.

 

Workshop participants were welcomed both by Honorable Dritan Leli, the Mayor of Vlore, as well as Mr. Rama, Deputy Mayor of Vlore. Mr. Leli pointed out how important and positive the cooperation with the World Bank has been for the city, and highlighted the essential role played by these types of technical workshops in improving urban development while Mr. Rama, outlined in his keynote address the most important economic growth priorities for the municipality, which included tourism, infrastructure improvement and PPPs. During the first day, participants had a chance to exchange experiences on common topics such as financial management and integrated urban development, financing capital investment projects and furthering citizen participation and transparency for project selection processes. The workshop was also used as a platform to discuss further integration between the MFSA and UA; e.g. what data/information can be used from MFSA as input to UA and vice versa. Urban Planning experts outlined how the UA evolved from identifying territorial and service deficiencies and needs, to fostering international partnerships and regional networking for LED. This was shown through two best practice examples shared by Municipality of Kucove, Albania, and Municipality of Gazi Baba, Macedonia.

 

 

At the end of the first day, participants had the opportunity to hear about the Urban Lab Participatory approach implemented in Ksamil, Saranda in Albania under UPP. Professor Markus Tomaselli, from the University of Technology in Vienna (TU Wien), explained how undertaking the lab and conducting workshops/surveys/questioners with different constituents of Ksamil, a town that highly depends on tourism with its population increasing tenfold during the summer period, brought to light several new, but very important topics and issues to be addressed.

 

The site visits and field trips to Zvernec provided clear insight into infrastructure development and challenges linked to the local economy. Road investment, sewage treatment plant, Petrolifera, gas power plant are among the most important infrastructural projects for Vlore which will allow better living conditions, but also allow increase in attractiveness to tourists and visitors. As a highlight, participants visited lagoon of Narta and island and monastery of Zvernec as they represent important cultural touristic attractions in the area.

 

The second day of the workshop was opened by Professor Dr. Arben Malaj, Honorary Consul of Austria to Vlore who stated how these kinds of workshops are symbols of the need to shift emphasis to the local level, in order to shorten the distance between voters and decision makers and tackle critical global challenges and address EU. During the course of the day, participants had the opportunity to discuss systems of debt management and financing capital projects. Our UA experts led a group exercise where participants discussed capital projects selection and financial sources. Groups worked on sources of funding for capital projects including PPPs, local government budgets, commercial loans, fiscal autonomy, MSIP and other IFIs, and others. For more information please see the full summary report.

 

Participants were inspired by local best practices in Macedonia and Albania as well as the World Bank MSIP and PIUTD programs where the UPP is supporting municipalities in project selection and application for funds.

 

Once again, the cities and municipalities appreciated the opportunity to share and discuss important issues of joint interest, provide suggestions and support to one another, and to pose questions to the Ministries and LGA representatives in a safe environment.



PHOTO GALLERY

Documents:
Final Agenda - Vlore, October 24-26 2018.pdf

DAY 1
Citizen Enagement in Decision Making - S. Kdolsky.pdf
Citizens Engagement, Fier - R. Hyseni.pdf
Citizens Engagement, Prilep - B. Jankuloski.pdf
UPP Survey review, Workshop - Vlore 2018.pdf
Urban Audit, Municipality of Kucova - Xh. Kostreni.pdf
Urban Audit of MGB for LED OF Municipality Gazi Baba - S. Trajkov.pdf

DAY 2
City of Vlore - J. Puka and A. Paparizo.pdf
PIUTD - Tuo Shi.pdf


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Brochures

Testimonials

"The MFSA tool is very useful and can help LGs assess their financial performance and look for additional financing. On the other hand, it is a huge responsibility to translate the budget into strategies that will drive LG's development",
Reisa Duraj, Head of Finance and Treasure Relations Sector of the Shkoder Municipality, Albania

"This capacity building program will enhance knowledge and skills of local governments, particularly of medium and large cities."


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City-to-City

City to City Dialogue - Cities, Drivers of Economy, Vision 2030
Skopje, April 10-12, 2019.

World Bank-Austria Urban Partnership Program (UPP) held its ninth City to City dialogue and technical workshops organized in collaboration with our regional partner NALAS (Network of Local Government Associations in South East Europe) and the City of Skopje, supported by the Swiss SDC and GIZ. The event took place in Skopje, North Macedonia and hosted over 130 participants from South-East Europe countries and beyond, with central and local government officials and technical practitioners from finance, urban and economic development departments, City Leaders, Local Government Associations, the Network of Associations of Local Authorities of South-East Europe, EC representatives and many other development partners and key stakeholders from the region and beyond.

The underlying theme of the Dialogue - Cities as Drivers of Economic Growth, focused on sustainable local economic development, including local finance, urban planning, accountability, and public participation in improving service delivery to citizens.  The event served as a chance to validate the progress of the WB-Austria Urban Partnership Program and the process of city's self-assessment with SEE participants. The Conference also showcased good practices in city management from Ljubljana, Slovenia and Tirana, Albania, and from other cities in SEE and wider Europe.
The first day of this event included technical sessions on municipal finance, urban planning and land development, urban audit, action planning and implementation, borrowing and creditworthiness and lessons learned from World Bank projects, while the second day conference explored the role of the cities and municipalities in the economic development agenda, enhancements to benefit the citizens of South-East Europe and cities’ learning from best practices.

During the Day 1 opening two sessions, several important topics and questions were raised: where do municipalities stand in terms of local governments finances, planning, land and investments programming and where do they need to go as well as what are the main local level advantages, challenges and opportunities. UPP local experts shared experiences from the test-piloting of MFSA 2.0 online version as well as experiences Urban Audit (UA) implementation. Local experts together with several municipal representatives from Kisela Voda, Bar, Gostivar and Gjirokastër shared their views and suggestions on operation and utilization of the online MFSA tool. Following the general presentation of the improved UA framework, the municipalities of Elbasan, Gostivar and Prilep presented their experiences with the UA tool. They stressed that citizens’ engagement in the decision making by focusing on transparency, accountability and participation in MFSA&UA is highly important.

Participants learned that UPP has high representation in SEE - working and having worked with more than 90 municipalities in the region, including 6 capital cities. That means UPP cities represent an impressive 9% of the regional territory and 22.5% of the regional population. The final conclusion was that to move forward, UPP will need to focus more on support to the CIP and implementation of the Action Plans, including dominant action on revenue collection and budget planning and execution, substantial for expenditure control, internal audits, and transparency improvement.

Throughout the day, participants could hear about ongoing studies and technical assistance programs related to municipal finances in the Western Balkans, as well as several panel discussions showcasing the results and experience of action plan implementation based on the MFSA results and the use of MFSA as a tool to facilitate creditworthiness and borrowing capacity for Local Authorities.

The city of Banja Luka, Bosnia and Hercegovina presented their alignment of MFSA action plan implementation with the strategic documents. The existing MFSA action plan had two goals: (i) financial status improvement and (ii) management. City of Rijeka, Croatia, explained how based on the MFSA results, they recognized the main challenges such as the city's weaknesses in planning due to large deviations from the budget plan's execution by more than 10% (the action plan reduced it to 3%). City of Subotica, Serbia explained that MFSA provided the opportunity to determine the financial position and to plan the finance management reform. The City adopted the Financial Management Plan 2016-2020 and set up the expected results for that period. The city administration defined 7 implementation measures: improvement in capital projects planning, budget planning, revenue collection, and improvement of commitments control and cash management control, increase in debt management capacity, improvement of PIFC and implementation and further development of the internal control and audit function.
Key recommendations from the discussion were to ensure the close co-operation with the central government regarding the introduction of property tax (Rijeka), better co-operation with the state in the preparation and planning of local budget guidelines (Subotica) and the need for greater degree of consistency in city management (Banja Luka).

The Day 1 last session of the workshop was dedicated to sharing experiences on creditworthiness and borrowing capacity. Marjan Nikolov, the UPP local expert explained the three main questions mayors should put about their borrowing capacity: Are we creditworthy? How much can we borrow? How much can we invest in the next 5 years? He argued that the order of these questions is an important indicator on how visionary and goal-oriented a Mayor is. Thus, the MFSA can serve as a helpful tool for the credit rating of LGU-s. Anto Bajo, the UPP local expert, shared that in Croatia no consensus exists on the best methodology and the set of indicators (input variables) to be used for credit risk assessment and that no local units bankruptcy instrument exists, which renders the standard credit risk assessment based on historical behavior of local governments, impossible. Following the discussion, Sasho Trajkov from Gazi Baba Municipality stressed the importance of LGU’s economic growth in the process. The situation in the Municipality of Gazi Baba shows that a well-designed and participatory Urban Audit helped the local economy grow, accordingly increasing the tax base and fiscal income. Marjan Junčaj, from City of Podgorica, shared the experience of the capital city of Montenegro in establishing a local level credit reliability model. He argued that borrowing capacities can be developed through different national and local level scenario analysis.
A final remark by Ms. Farvacque-Vitkovic, stated that along with developing capacities to borrow, LGU’s main focus should be ‘why borrow’. In the end, the discussion on creditworthiness is only relevant, if used as means to a higher end- that of making cities more livable and local economies more sustainable.

Participants could also attend the launch of Better Cities, Better World: A Handbook on Local Government Self-Assessments by Catherine Farvacque-Vitkovic and Mihaly Kopanyi, who are World Bank’s leading senior experts on urban development and municipal finance with extensive working experience in more than 30 countries. Ms. Farvacque-Vitkovic explained that this handbook focuses on key urban issues and helps city leaders and municipal staff to address issues through a solutions package. It provides inspirational ideas and clear-cut methodology for starting and guiding the process and for municipal staff capacity building.

 

 

The second day of the conference focused more on the political level discussions and panels, with opening speeches by ministers, mayors and EC representatives. The Mayor of Skopje and newly appointed NALAS President, Mr. Petre Shielgov, opened the conference, followed by speeches by Mr.Suhejl Fazliu, North Macedonia’s Local Government Minister, Mr. Zoran Sapuric, North Macedonia’s Minister tasked with Regulations for Improvement of the Investment Climate for Domestic Companies, Mr. Andrej Zernovski, Foreign Affairs Deputy Minister, Mr. Amer Kapetanovic, RCC Head of Political Department. Last, but not least, the audience could hear a video message from Mr. Johannes Hahn, the European Commissioner for European Neighborhood Policy and Enlargement Negotiations.

Panels presented ongoing regional studies including Western Balkans Urbanization and Territorial Review (WBUTR), financed by the UPP. The WBUTR is a comprehensive analysis of the urban sector in the Region, aiming to inform and support development of integrating urban strategies that increase the impact of sector specific initiatives and enhance the sustainability of urban development (i.e. by fostering regional cooperation, competitiveness, connectivity and economic development). It analyzes urban systems, the economic geography and probable EU accession related development. It also provides actionable recommendations for a faster and more inclusive growth through enhancing competitiveness of leading cities and ensuring national and local access to opportunities in the peripheral and lagging regions. The WBUTR will be published in the Summer 2019.
The highlight of the day was the inspirational story by the Honorable Erion Veliaj, Mayor of Tirana, who spoke of “Cities that should serve the people not the cars” while referring to his great efforts to make Tirana a greener city.

Furthermore, four workshops were organized within the Conference, on the following topics:

1. Smart Cities. Digitalization for LED – during this session, Ms. Jeton Puka from the municipality of Vlorë presented their smart cities experience and chosen strategies and directions 
2. Innovative Strategies and Tools for Planning and Creating Sustainable Cities - TOD and Placemaking => The main objective of the panel was oriented to planning and managing cities for a sustainable development.
3. Sustainable Urban Mobility Planning (SUMP) and Sustainable Energy and Climate Planning (SECAP) - drivers of development and sustainable growth
4. Citizen to Engage in Cities – session presented good practice examples which clearly demonstrated recurring citizen’s participation when they receive feedback and when citizen’s ideas are attended to

The closing remarks of the Conference City to City Dialogue: “Cities as Drivers of Economic Growth – Vision 2030”, were made by Mr.Petre Shilegov and H.E. Mr. Wojciech Jerzy Tyciński, the Ambassador of Poland in North Macedonia.

Cities and municipalities valued the opportunity to participate in another City to City Dialogue which proved to be a successful attempt to summon the Region on a table to discuss achievements, different topics of interest and pressing issues.

PHOTO GALLERY


Documents:


DAY 1

Action Planning Rijeka, Banja Luka and Subotica.pdf
Fiscal Capacity Of MGB - S. Trajkov.pdf
Introduction to MFSA Toolkit.pdf
LGSA Handbook.pdf
Local Government Finances, Planning, Land and Investments Programming in SEE - C. Farvacque - Vitkovic.pdf
MFSA and LSG Creditworthiness, Borrowing and Investment Capacity.pdf
Municipal Finance ofWestern Balkans in the context of decentralization.pdf
Municipal Services Improvement Project - Lessons Learned.pdf
Ocjena kreditne sposobnosti - Anto Bajo.pdf
Transparency, Accountability and Participation in MFSA and UA - Sandra Kdolsky.pdf
UPP results survey C2C Dialogues.pdf
Urban Audit framework - Challenges and Results in the Municipality of Elbasan - E. Kenuti.pdf


DAY 2

Parallel Sessions
Parallel sessions - CONCLUSIONS.pdf

Smart Cities - Digitalisation for LED
Rijeka - Smart City.pdf
Smart Cities - Jeton Puka.pdf
Skopje Smart City Strategy - Ognen Marina.pdf

Innovative Strategies and Tools for Planning and Creating Sustainable Cities - TOD and Placemaking
ToD for Sustainable Belgrade Planning 2019 - Skopje.pdf
Sustainable cities Ljubljana – Urban space and sustainable mobility change - Vladimir Babic.pdf
C2C - 100 Villages - Albania.pdf
Sustainable Cities - 100 Villages - Albania - Fiona Mali.pdf
Placemaking-Sarajevo - Zina Ruzdic.pdf

Sustainable Urban Mobility Planning (SUMP) and Sustainable Energy and Climate Planning (SECAP)
GIZ ORF-EE - Dubravka Bosnjak.pdf
Krusevac SUMP - Jelena Brkovic.pdf
Banja Luka - Jelena Pavlovic.pdf
SCTM presentation - Klara Danilovic.pdf
SECAP Prijedor - Boris Srdic.pdf

Citizen to Engage in Cities
C2C Dialogue Session 12 Parallel Session on CE April 11 - Intro.pdf
C2C Dialogue Session 12 Parallel Session on CE April 11 - Transparency in Croatia - Dario Runtic.pdf
C2C Dialogue Session 12 Parallel Session on CE April 11 - Migration and Local Dev - Alexei Gafeli.pdf
C2C Dialogue Session 12 Parallel Session on CE April 11 - Communtity Forums Model - Gorjan Slavkovski.pdf

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