Local Government Borrowing

The Challenge of LGUs to use it to Impact Local Economic Development

Implementation Period: July 2011 – August 2012
Donor: Open Society Foundation in Albania
Fund: 26,935 USD
Implemented in: Albania
Implemented by: Co-PLAN

During 2012, Co-PLAN undertook a project to assess the situation regarding local government borrowing in Albania. With the support of OSFA, and in partnership with the MoF, Co-PLAN worked on assessing the situation concerning the LGUsā€™ borrowing trends and possibilities, as well on training opportunities for them. The project, which lasted 1 year, placed aimed to: (1). Provide an overall assessment of the situation regarding the intended use of loans taken/required by the LGUs and their anticipated impact on local economic development; (2). Contribute (along with other actors) in capacity building of staff of local government on matters related to the compilation of feasibility studies and preparation of projects to apply for credit; (3). Assist local governments in the preparation of potential projects to be financed through loans by focusing on the feasibility study of investment and other forms of impact assessment of local economic development projects.

Some of the main results achieved during 2012 were:

  • A needs assessment analysis was conducted through 28 in-depth interviews with LGUs focusing on the intended use of loans taken; evaluation of lending opportunities from the banks and the MoF was also conducted.
  • Assessment findings were compiled into a report and shared in a national roundtable with LGUs, OSFA, banks representatives and donors.
  • A training module was prepared and consulted for all three modules.
  • Three training sessions for LGUs were organized during May ā€“ June 2012; and 3 LGUs were assisted in the assessment of their financial potential.
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