Speech of Prime Minister Edi Rama at a meeting with mayors:
We are having this next meeting on a very important aspect of our work together. It relates to the program of Urban Renaissance across the country, as a very significant bridge of cooperation between the government and municipalities, through which considerable funds have been made available to local units, and a process of significant transformation of the urban development of the country is underway.
We are very aware that this process is far from being concluded, as significant developments in the centres of the new municipalities are only the beginning of a new infrastructure and of a socio-economic development network that should definitely be extended to the rural area of these municipalities.
What we have achieved together in the municipality centres, or in the related infrastructure is a success story acknowledged by everyone. But today I want to focus on the need to deepen further the other components of this program, the irrigation and drainage network for which we have supported 136 projects obtained by the municipalities, and another strategic component for the economic and social development of communities, the network of rural roads associated with the production, as a further incentive to strengthen agricultural markets.
It is important to take into account that there is a difference in how the fund of this program will operate. It is not transferable from year to year. The cycle of projects should be completed within a fiscal year, while on all occasions when projects with an extension of two years are procured, the funds allocated for the budget year should all be transformed in investments by the end of the year, otherwise, as every other fund that is of the state budget and not of the budget of municipalities, they go to waste.
It is necessary to increase the speed and quality of the entire procurement process, since there are not a few projects that are delayed due to delays in the process. Of course, they are not related directly and only with you, but there is no doubt that you are the main player.
540 projects have been financed nationwide for the Urban Renaissance program as a whole, within all components. In order to carry forward the process of full revitalization of the irrigation and drainage network, not only a major investment has been made so far whether in the form of direct financing or in the form of financing of operating costs, or in the form of financing to build in the territory a municipal fleet of new excavators, but another fund was made available to municipalities with the last intervention at the end year, to continue with the intensive work and achieve our 4-year goal to cover 280 thousand hectares of our territory with a completely rehabilitated infrastructure.
Thanks to this whole investment we have experienced a significant change and observed a very significant improvement of irrigation and drainage indicators. But beyond that, what is most important in the long run, we have entered the process of consolidation of the local government as the main factor in ensuring this vital process for the countryside which is irrigation and drainage. We will continue to consolidate the role of local government by deepening further the reforms begun for irrigation and drainage.
The fund made available recently must become effective as soon as possible, and by the month of May we must enter the process of a thorough implementation of the projects belonging to this fund. Meanwhile, some other 25 thousand hectares will be included in the rehabilitation scheme financed with the support of the World Bank, in the municipalities of Lushnje, Divjakë, Roskovec, Patos and Devoll. Here again your cooperation is very important.
It is of fundamental importance to underline also the necessity of deepening further the process of Urban Renaissance in every new municipality with rural infrastructure. We have financed a new package with the 2017 budget for 30 projects submitted by approximately 30 municipalities across the country. This funding includes also the infrastructure that really affects neuralgic highways for further economic and social development of these municipalities.
In parallel to this, we are working with the World Bank on a second package which we hope will be put in motion by 2017, to compensate for the gaps remained from this first wave of applications for some other municipalities.
But I want to emphasize that it is very important that these projects be persuasive also in this component, as they became increasingly persuasive every year in the component of Urban Renaissance in the city. There is a very significant improvement of the quality of the projects on your part, also as a result of the accumulation of a positive experience and of a very close cooperation with the team made available by the government for these projects.
In the case of rural infrastructure, when I talk about convincing projects I do not mean simply the project on road or rural roads because they are much less complex projects than the projects you have implemented in urban centres. I mean the incentive component of the rural economy and of markets. I would like to draw your attention also to a new opportunity which we began to point out during the second half of last year, but which should be more present in our view in your daily work, for the revitalization of collection and processing structures of agricultural products.
With the National Fund of Guarantee for the countryside, and the facilitations opportunities created by an agreement between the government and the European Bank for Reconstruction and Development, and the second-level banks, municipalities can easily be included as key actors in the process of establishing collection points for agricultural products with the highest European standards, in cooperation with communities of agricultural producers.
What you notice in your daily work, what we and I have found following the many contacts in villages across Albania during the last period of last year, it is the demand of farmer communities for collection and trade centres of agricultural products. Let’s not wait for an investor, an entrepreneur from Tirana or abroad to appear in an area where the product is produced with interest to the market, and establish a collection point. Instead, let’s build municipal collection points, the shares of which are held jointly by the municipalities and farmers. This is a routine practice in European countries, which we must launch also here.
I am convinced that many of you can easily do this, just by being directly engaged with the community, create organized interest groups and, in partnership with the municipality, benefit from the loans of the fund to build collection or trade points for agricultural products.
In this way, they can easily succeed not only to repay the loan which is granted with quite favourable conditions, but also to have in the medium or long term, the profit from this activity, just as entrepreneurs who have made these investments until today.
I want to assure everyone that we will continue to concretely strengthen the ties with all municipalities without distinction. I have seen with pleasure that this obligation of ours has become increasingly a reality, also of course following a constant communication with the mayors, regardless of whether they belong to political parties that are in government or in the opposition. I assure you that we are here with a purpose which is common to all of us; make Urban Renaissance a reality for all new municipalities, both in cities and rural areas.
I am very aware of the problems in many rural areas, because this process could not be extended deeply in a relatively very short time to make such a massive reconstruction, but now that the first phase can be considered successfully overcome, and by creating a very positive experience, a further expansion in circles from the centre to the suburbs of the new municipalities will unquestionably become reality.
It is worth noting also the new program of reconstruction which we will launch very soon, and which is based on these three pillars:
National road infrastructure, with an additional benefit for the municipalities also of the rural and tourist infrastructure, where even here cooperation with municipalities will be direct;
Educational infrastructure for the reconstruction of 100 schools that are in poor condition across the territory of Albania. In this regard, cooperation with you is crucial.
Health infrastructure to build 10 modern polyclinics across the country, along with a regional hospital in Fier.
It is a program that aims to inject into our economy a billion dollars over the next three years. The program will start immediately in the following month, with the first priority projects which are now ready, on road infrastructure, education infrastructure and health infrastructure.
We will be in constant touch with all of you. In a preliminary overview of the network of schools to be built, it is about schools across your municipalities. The same is true for large polyclinics, and the rural road infrastructure in view of tourism.
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Discussions
Mayor of Lezhë, Fran Frrokaj:
There are three projects which are very necessary. As far as the urban study is concerned, all municipalities are blocked due to a handicap of the protected areas. I would ask for your support and pay attention also to the by-pass of Shëngjin. If this is solved, it will be an extraordinary solution not just for Lezhë, but for the whole northern part and the Albanians of Kosovo, because it will shorten the road to Velipojë by 22 km.
Prime Minister Rama:
What I want to reiterate is that you have all the options, which actually you do not use, to have a direct impact on facilitating bureaucratic procedures or strengthening your own powers and submit us concrete proposals. Proposals don’t need to be proposals of associations, they might be also of a group of mayors. I assure you that personally I will be not only be attentive, but very happy as well if you submit to the government and the parliament proposals for improvements by a group of mayors, both left and right-wing. Some major claims have been submitted by you. I consider them to be just, as concerning for example an infinite complication of the law on urban planning, but we cannot work separately for each claim. We’ve made some remarks and are intervening, but I don’t want to have tomorrow a mayor or a group of mayors coming to me, rightfully, and say: “this also has to be done”. It’s very useful for us to have you an active part in this aspect. Don’t leave issues wait for the occasion for us to meet, or for a moment of despair due to procedures or unpleasant stories, in order to raise your voice and make us known the issue. These are generally common issues, and if you spur us we will be very grateful to you.
As for the second issue, it is part of the “One billion” Reconstruction program; the diversion on the other side of the road that today takes you to Lezhë in order to reach Shkoder, and the drastic reduction of the distance and time to connect Shëngjin with Velipojë, where the whole issue is included. The program will function with the inclusion of private enterprises. All these projects will be projects of public-private partnership, where privates will commit to fund the project and to conclude it in a period of 2-3 years, while the government will pay off. It’s an innovative form which was not invented by us. It’s a routine practice everywhere in the world, in order not to build by accumulating debts, and benefit of developments which otherwise would be impossible.
Arben Gjuraj, Vice mayor of Shkoder:
There are two main things which are crucial for the rural area in the municipality of Shkoder. Irrigation and drainage infrastructure are very necessary for us, given that a good part of the territory of the Municipality of Shkoder is much affected by the floods. At this point I would say that increased attention, but also investments to improve infrastructure for protection against flood are very important. The rest belongs to the road infrastructure. The road of Dukagjin is one of the poorest quality and it’s in a very bad situation. It connects a large area that has a very important potential of rural development in the municipality of Shkoder, including Theth. There are approximately 120 km of road, which the municipality of Shkoder cannot conclude with the current financial means.
Thank you!
Prime Minister Rama:
Dear vice mayor, I hope that our cooperation with the municipality of Shkoder in view of rural development will be better than that on urban development. First, we are equally willing and assure you of this, to support the Municipality of Shkoder as much as we do for any other municipality, and we are really looking forward for them to submit to us convincing projects. Just as, for two strategic projects for the development of the new Municipality of Shkoder, in my view, we will take the initiative – I hope that you will let us take the initiative and will support us – for the road connecting Shkoder with the beach of Velipoja, and the road of Dukagjin up to Theth. The Project on Velipoje is included in the program funded by the government budget for this year, extended to two years, and which will be implemented by the Albanian Development Fund in collaboration with you.
Meanwhile, the road of Dukagjin to Thethit is part of the “One billion” Reconstruction program, as a strategic road not only to Shkoder, but for the development of the Albanian tourism in general. We are absolutely determined to build these two roads, also because they are much more than municipal roads. They are roads of particular importance from a financial standpoint, and as you rightfully said the municipality would not be able to build them even if we made all funds available.
As far as I know, work is being carried out for the project on the road of Velipoje. There was an existing project, but it had many issues. Work will begin as soon as the project is modified and standardised. We hope that it will begin as soon as possible, and I am sure that people in Shkoder will not think that we’re doing it for the elections, because you’ve been waiting for this road for more than 20 years. Both the movement from Velipoje to Shkoder and that from Velipoje to Shengjin will generate an extraordinary flux of tourists, in addition to significantly increasing local economic growth, and I am sure they will have also an impact on the national economy.
Mayor of Dibër, Muharrem Rama:
Thank you for the investments you’ve made in Diber so far. We have the baths area, a curative area that hosts many tourists, and we need you to support us with investments for arranging the brook of the baths and also the baths. I think this will be very helpful for Diber.
Prime Minister Rama:
I agree on the importance of the baths. It’s not a question of right wing vs. left wing. I’m sure that it is unlikely we won’t have a consensus about the fact that the baths of Peshkopi are very precious, but bring here the project. We finance projects. Bring us the project and we will support you. We have provided and will continue to provide a constant support to Diber. I take the advantage to tell you that the Arbri Highway is in process. The first phase of the process is expected to be concluded this week by the Committee, and then we will move on to the second phase. This is the first project that will be realized with the “One billion” Reconstruction Program, and I am very confident that if procedures don’t betray us, as it happened with the plan of Lezhe or with the excavators, work for the Arbri Highway will begin very soon.
Mayor of Përmet, Niko Shupuli:
I want to mention some issues concerning Permet. I’d ask you to include also the aqueduct in the set priorities because, although water runs under Permet, this city is supplied with water only 1 hour every 24 hours due to the amortized network. As for the roads of a specific tourist feature, I’d like to bring to your attention the Frasher road, not only from a tourist point of you but also for its values. With regard to the road connecting Permet with the customs agency and the road to Korce, both our municipalities of Kelcyre and Permet are of the same opinion. The time to go through Permet to the customs of the Three Bridges, and then continue to Erseke and Korce, can be shorten by approximately 40 minutes with just a 4-5 km road. The projects on the Frasheri road and of the road connected to the customs agency have been submitted and qualified. Looking at the opportunities, I believe that they can be included in the priorities of the Albanian government in terms of investments in regional and national roads.
Prime Minister Rama:
Of course, not just this, but we should do more than this for this area because it is not only a great tourist potential but if we do the right thing, it can have a great economic growth and employment opportunities through the use of the tourist potential. We’re working very well together, and have done a lot. I hope very much than in spring we will be able to light up the stone of Permet with a very special project you are doing with the Ministry of Culture. We’ve taken also this into consideration.
Without wanting to hurt your self-esteem, for I know that residents of Permet are one thing, those of Gjirokaster another thing, and those of Tepelene are completely different, and this is out of question, – Gjirokaster is one of the districts to have much priority with regard to that part of the reconstruction program concerning tourist infrastructure. Therefore, we will have for sure new developments, as we will have in Gjirokaster very soon, in a few days, the launch of a new project to strengthen even more the identity of the city by renewing the entire new part of the city and by unifying it in view of a more harmonic development between the old part and the new part of the city. In addition, there are other projects which we have already started.
As for the aqueducts, I think that this is an issue where not only we don’t agree, but we have a very backward mentality in this aspect. Aqueducts have never worked as responsible enterprises in Albania. They’ve worked as employment offices, and above all, due to a 20-year long mess in terms of organization and competences, they were left adrift after competences were passed on to municipalities. Right now we’ve put upon you a heavy burden, and you know better than me that this is due to the debts, to the lack of investments, etc. But it’s very important that you do your part in the water reform as far as drinkable water is concerned. We didn’t want to be as quick and demanding as we were with energy, because it’s a much more complex process for 1001 reasons. Ultimately, this is about drinkable water, which is vital. Also, we won’t allow that this reform fails. Unlike energy, among others, this is a reform that is made with you, and if you pay attention to all the milestones that we’ve set in the column that relates to your responsibilities, based on performance, you can benefit much more. We don’t finance aqueduct enterprises that continue to accumulate unjustified debts. I can understand the accumulation of debts, when aqueducts need electric power, but I don’t understand it due to theft, to the lack of discipline, which is something you should take care of. This is the approach of the reform. I don’t want to justify the lack of water there, but every investment in aqueducts, which are competence and responsibility of municipalities, as determined in the reform program, will be made based on results. Those who show improved results are entitled to ask for financial support, and we are compelled to provide this financial support. But those who allow their results to get worse cannot receive any support, because they let the money of the people go to waste. So, you must keep this in mind. I know, it is very hard, but ultimately you have chosen to do the difficult things. Had it been otherwise, we wouldn’t need mayors, as things would have been done by themselves.
I thank you and wish you good luck with your job! We’re looking forward to receiving new projects. As for some projects asked by you, which are the reason why we have postponed a little bit the decision, in order to have them improved and complying with the required standards so that we won’t refuse them, please hurry up so that we will terminate the call by this week and continue with new financing, in view of the achievement of your ambitions.
