The second stage of the MCC Albania Threshold Program (MCCA2) is a two-year, $15.7 million agreement between Albania and the United States, funded by the Millennium Challenge Corporation (MCC), and administered by USAID, which aims to strengthen the rule of law, reduce corruption and increase public oversight, thereby improving the business environment in Albania through IT solutions and technical assistance.

The MCC Albania Threshold Program II builds upon the successes achieved during stage I of the MCC Albania Threshold Program, which included the establishment of the National Registration Center and the Procurement Advocate office, the enactment of the new tax procedure law, as well as the introduction of three major e-government services: e-registration,  e-procurement, and e-filing.

The MCC Albania Threshold Program II supports reforms in the following main areas:

Administrative Court System: The program works to increase judicial capacity, reduce opportunities for corruption, and build investor confidence by supporting the planned administrative court system. Key initiatives include providing technical assistance, training, IT systems, and equipment to establish a Tirana-based administrative court.

Tax Administration Reform: The program continues work to modernize tax administration based on the 2008 tax procedures law. Key initiatives include expanding e-filing and taxpayer services, establishing an internal anticorruption investigative unit, conducting tax audits based on risk analysis, strengthening collection and criminal investigation functions, and creating the Taxpayers Advocate and the Tax Consultative Council.

Business Licensing Reform: Following the successful model of the National Registration Center, MCCA2’s activities include establishing and supporting the operation of the National Licensing Center (NLC) in Tirana and other cities, offering one-stop-shop service, easy access to information, and the ability to track standardized business license applications at www.qkl.gov.al.  

Territorial Planning: Based on the new Law on Territorial Planning approved in April 2009, MCCA2 works to establish a National Territorial Planning Registry that will streamline the building planning process as well as increase transparency and reduce opportunities for corruption in planning and permitting processes through the application of IT standards to be piloted also in the municipalities of Tirana, Shkodër, Fier, Vlorë and Pogradec.

Anti-corruption Investigative Efforts: MCCA2 helps establish Special Investigative Units in prosecutor’s offices in districts outside Tirana to strengthen efforts to combat corruption-related and economic crimes. This program component is implemented with assistance by the U.S. Department of Justice. 

STAGE I RESULTS: September 2006 – October 2008   Easier, one day, one-stop business registration (the National Registration Center);  Full and easy access to tender documents, increased competition for public tenders (e-procurement);  Expanded oversight by the business community on public procurement (the Procurement Advocate);  Mission of the tax administration reformed from meeting revenue targets to pursuing revenue through voluntary compliance (the new tax procedure law);  Easy, modern, and transparent services for taxpayers (e-tax and taxpayer services); Improved business climate in Albania.

Last updated: December 29, 2009