The second stage of the MCC Albania Threshold Program (MCCA2), begun in January 2009, 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: MCCA2 works to increase judicial capacity and reduce opportunities for corruption through support for an administrative court system. Key initiatives include providing technical assistance, training, IT systems for court case management, and equipment for a Tirana-based administrative court.
Tax Administration Reform: MCCA2 continues the work begun under stage I of the program in restructuring and modernizing the tax administration with the goal of 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 submit and track standardized business license applications at www.qkl.gov.al.
Territorial Planning: Based on the new Law on Territorial Planning, MCCA2 works to establish a National Territorial Planning Registry that will 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.
Private Sector and Civil Society Engagement: Through capacity building assistance and subcontracts, MCCA2 supports contributions by nonprofit and business associations to assist with policy changes, monitor program-supported reforms, and advocate for improved anti-corruption measures.
Anti-corruption Investigative Efforts: MCCA2 assists in establishing Special Investigative Units in prosecutor’s offices in six districts outside Tirana, in order to strengthen efforts to combat corruption-related and economic crimes. This program component is implemented with assistance by the U.S. Department of Justice.
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STAGE II YEAR 1 RESULTS: January 2009 – January 2010
MCCA2’s first year of implementation has seen remarkable progress in several areas:
The new National Licensing Center was established less than five months after program inception and has proven remarkably successful.
MCCA2 interventions in support of tax reform in Albania have led to: (1) the introduction of a national risk-based audit system that removes tax inspectors’ ability to improperly target businesses for audit, (2) the creation of an Investigation Directorate (which pursues criminal tax-related cases) and an Internal Investigation Directorate (which focuses on internal corruption), and (3) the automation of the remaining regional tax administration offices.
MCCA2 has also actively engaging in capacity building for Albanian civil society organizations in advocacy and monitoring program supported public institution reforms aimed at increasing transparency, efficiency and combating corruption.
For more information on MCCA2 progress, please visit our Publications pages: Newsletter, Fact sheets, Information kits and Success Stories.
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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.
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