European union – albania stabilisation and association committee 11 March 2015 table of contents political criteria 3

6.3 AGRICULTURE AND FISHERIES (INCLUDING FOOD SAFETY)

Follow-up of the 2014 Progress Report and the conclusions of the February 2014 and March 2015 Subcommittee meetings with focus on:

• Progress in the implementation of the National Inter-Sectoral Strategy for Agriculture and Rural Development, 2014 – 2020

The National Inter-sectoral Strategy for Agriculture and Rural Development (NISARD) is elaborated in accordance with the framework of the Europe 2020 strategy for smart, sustainable and inclusive growth and the overall strategic goal of Albania to become member of the EU. It is prepared in line with the approach for strategic planning in the EU for the CAP 2014-2020 while maintaining the focus on the specific needs for development of the agriculture and rural areas in Albania.

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  Increasing the competitiveness of agriculture and agro-processing in national, regional and global markets;
  
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  Increasing the size of farms through a comprehensive land consolidation effort and land market development;
  
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  Improving the transfer of technology and innovation system through an enhanced extension service and technology transfer system, including supporting competences and qualification of the farmers with professionalism, experience and trust in a modern economy;
  
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  Improving the organisation of the value chains from farmer to consumer;
  
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  Increasing the quality of products (quality standards, organic products, PDO/PGI);
  
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  Improving the infrastructure systems in agriculture (roads, water supply, irrigation, waste water treatment);
  
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  Continuing the effort regarding preservation of the eco-systems;
  
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  Ensuring sustainable management and utilization of natural resources (land, water, forests, plant and animal resources);
  
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  Mitigate climate changes;
  

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  Improving the living standards in the rural areas:
  

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  Through improvements of basic services (health, social cultural facilities and others);
  
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  Through the diversification of income generating activities and possibilities ensuring the economic and social cohesion between rural and urban areas;
  

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  Institutional development, regulatory development and enforcement.
  

The national inter-sectoral strategy for agriculture and rural development aims to address these challenges.

1. 
   Efficient, innovative and viable agri – food sector capable to sustain the competitive pressure and meeting the requirements of the EU market through a sustainable utilization of resources and
   
2. 
   Viable rural areas providing economic activities and employment opportunities, social inclusion and quality of life to rural residents.
   

The overall objectives of the NISARD are

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  To foster a viable, high quality food production by developing a competitive and innovative agri – food sector able to sustain the competitive pressure in the domestic and EU markets and meeting EU standards and market requirements.
  
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  To achieve sustainable management of natural resources and climate action by forest and water resource management, and introducing agricultural production method protecting the environment and mitigating the impact on the climate.
  
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  To achieve a balanced territorial development of rural areas by fostering diversification of economic activities, job creation and social inclusion, and improving living conditions in rural areas.
  

To achieve these overall objectives a set of specific objectives have been established both as regards specific action supporting each of the overall objectives and cross cutting actions supporting all objectives.

Key interventions will be:

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  Land consolidation and support to enhanced use and management of agricultural land and resources.
  
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  Extension service and technology transfer.
  
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  Modernization of agriculture and agro processing through support schemes developing productivity, product quality and standards.
  
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  Measures supporting a sustainable use of resources.
  
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  Measures supporting diversification and development of economic activities and job creation in rural areas through investments in alternative income generating activities in agriculture and development of SME’s in rural areas.
  
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  Institutional development, regulation and enforcement.
  

Donor support via funding of projects will contribute to the implementation of the strategy.

• National support measures to the agricultural sector

Regarding legislative framework, a new Decision of Council of Ministers No 719 of 31.10.2014 “On establishment and organization of Agriculture and Rural Development Agency” was adopted.

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  Establishing inter-active communication farmer needs-agency
  

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  Support poor famers to increase their potentials;
  
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  Support for the reduction of the production costs;
  
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  Formalize the agriculture sector;
  
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  Increase the collection and storage capacities;
  
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  Give access to the banking system.
  

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  Ensure easy access and transparency
  

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  “One-stop-shop” center created in the premises of the IPARD Agency;
  
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  Website re-designed;
  

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  Successful information campaign
  
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  Processing and payment of 8,770 applications with a disbursed amount 8,354,650 Euro;
  
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  Assessment of 808 applications, declared eligible will be disbursed from 2015 budget.
  

During 2014, the financial support is realized through the implementation of 21 measures, from which 19 measures are direct support measures from the Agriculture and Rural Development fund, and 1 measure to promote crediting of the agriculture sector; 1 investment measure, supporting 50 % of the costs of the project.

1. 
   Support for the collection of fruits and vegetables in collection or processing centers, 15% of the sold good;
   
2. 
   Support for the organic farms, 570 Euro/certified farm;
   
3. 
   Improving the technology of cultivation of vineyards with seedlings of indigenous varieties, 4,281 Euro/ha and other cultivars seedlings 3,567 Euro/ha for more than 0.2 ha but not more than 10 hectares;
   
4. 
   Improving the technology of planting and cultivation of medicinal herbs (sage, lawanda, thymus, oregano, rosemary) in value in 1,784 Euro/ha for the area not less than 0.2 ha and not greater than 10 ha;
   
5. 
   Support the production in greenhouses with heating through funding, 50% of the cost of fuel;
   
6. 
   Drip irrigation systems in olive groves, vineyards, orchards, citrus, (only for intensive cultivation forms), 1,784 Euro/ha for not less than 0.5 ha and no more than 10 ha;
   
7. 
   Rehabilitation of existing blocks of old olive groves and / or degraded to the extent of 3,211 Euro/ha, but not more than 300 ha in the whole country;
   
8. 
   Protection from damage by olive groves of olive fly, block and according to the priority areas of production no more than 250 Euro/ha;
   
9. 
   Support milk production EUR 0.07/liter for livestock farms to submit minimum 1,500 liters of milk per month;
   
10. 
    Support livestock farms that breed extensively matriculated cows 71 Euro/head, but not less than 10 heads;
    
11. 
    Support livestock farms breeding more than 100 head of sheep or goats matriculated 8.6 Euro/head, but not more than 2.1 Euro/head;
    
12. 
    Support the meat of small ruminants 2,56 Euro/head for each slaughter in slaughterhouses, and 0.71 Euro/skin delivered to the processing factory in the country;
    
13. 
    Support of pork meat 3,56 EUR/matriculated head for each slaughter in slaughterhouses, and 0.71 Euro for skin delivered to the processing factory in the country;
    
14. 
    Support of beef meat, 14 Euro/matriculated head for each slaughter in slaughterhouses, and 1.4 Euro for the skin delivered to the processing factory in the country;
    
15. 
    Support for bee keepers more than 50 bee hives, 7 EURO/hive;
    
16. 
    Intensive breeding of snails, 50% of the value of rasatit to 500 kg/ha, but not more than 3,567 EUR/ha;
    
17. 
    Support the aquaculture sector, at 25% of the rasatit, but not more than 4.281 EUR/farm and 25% of the food for the fish under cultivation, but not more than 3.567 EUR/farm;
    
18. 
    Support for the delivery of production of mussels in reception centers/processing, the value 0,07 Euro/kg, more than 200 kv and not more than one thousand quintals per year;
    
19. 
    Support, through subsidizing of 70% interest rate for 7 (seven) years in a row, for loans up to 214,072 Euro, for the following activities:
    

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  Storing and processing of agricultural products, livestock, aquaculture and medicinal plants;
  
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  Mechanization of agriculture, livestock and aquaculture.
  
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  Support investment up to 50% of the project, but not more than 107,036 Euro for a company, investing in the following sectors:
  

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  building of premises/facilities for the collection and storage of the product;
  
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  standardization lines and/or processing production;
  
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  agricultural mechanics;
  
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  dig wells, reservoirs for irrigation and troughs
  

20. 
    Supporting production in greenhouses with heating through the support of fuel costs, 71 Euro/ha for greenhouses that use diesel fuel and at 57 Euro/ha for greenhouses that use fuel oil.
    

In the frame of the 3 (three) IPARD-like calls:

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  Albanian farmers and agro-processors submitted in total 255 applications;
  
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  Total applied investment amount of 45,832,722 Euro;
  
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  Total applied grant amount of 23,804,867 Euro.
  

• Preparations for IPARD

The Managing Authority (MA) is Directorate for Programming and Evaluation of Rural Policy (DPERP) within MARDWA, which is responsible for managing the IPARD II programme in an efficient, effective and correct manner within the scope of the responsibilities, defined in the Sectoral Agreement. The MA has the following specific functions: Selection of measures, drafting of the IPARD II programme and its measures, defining in the IPARD II programme the controllability and verifiability of the measures in cooperation with the IPARD Agency, regular review of controllability and verifiability, Selection of measures for each call for applications and financial allocation per call, drafting amendments to the IPARD II Programme to the Commission with a copy to NIPAC, after consultation with the IPARD Agency, and following agreement by the IPARD II Monitoring Committee (MC). MA ensure that the relevant authorities are informed of the need to make appropriate administrative changes when such changes are required following a decision by the Commission to amend the IPARD II programme, ensuring that the appropriate national legal basis for IPARD implementation is in place and updated as necessary.

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  Selection of projects to be implemented in accordance with the criteria and procedures applicable to the IPARD II programme and complying with the relevant Union and National rules, laying down contractual obligations with the recipients in written, incl. information on possible sanctions in the event of non-compliance with those obligations.
  
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  ARDA is responsible for publicity, making calls for applications and publicising terms and conditions for eligibility, upon consultation with the MA, ensuring IPARD II programme publicity and visibility through, publication of list of final beneficiaries, informing recipients of the Union contribution to the projects, guaranteeing that adequate publicity is given by the recipients on Union co-financing for the respective projects, authorization and control of commitments and payments, establish that the applications for approval of operations and subsequent amount to be paid are eligible for assistance claimed, through administrative and, where appropriate, on-the-spot controls, in particular those concerning the regularity and legality of the expenditure, execution of payments, issuing of an instruction to pay the authorised amount to the claimant or their assignee(s).
  
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  Accounting for commitment and payment by recording of all commitments and payments in the separate books of accounts for IPARD II expenditure and the preparation of periodic summaries of expenditure, including the expenditure declarations to the European Commission. The books of account shall also record the assets financed by the IPARD II funds, in particular concerning un-cleared debtors.
  
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  Debt management, setting a system in place for the recognition of all amounts due and for the recording in a debtors' ledger of all such debts, including irregularities, prior to their receipt, internal audit, ensuring that regular specific activities are carried out to provide higher management with independent review of the subordinate systems.
  
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  Other, carrying out follow-up actions to ensure progress of projects being implemented, reporting on progress in implementation of measures against indicators, setting up, maintaining and regularly updating the Programme information system; Irregularity reporting, ensuring irregularity reporting.
  

NAO is a high ranking official in the Ministry of Finance - Vice Minister of the Ministry of Finance. The NAO has established a management structure, which is composed of National Fund and NAO Support Office.

The Audit Authority (AA) is responsible for carrying out audits on the management and control system(s), on actions, transactions and on the annual accounts in line with the internationally accepted auditing standards and preparing annual and final audit opinions on the statements of expenditure. The Agency for Audit of European Union Programs Implementation System, which was established in 2009 with the Council of Ministers Decision No 1020, dated 14.10.2009 and will act as the AA for IPARD. The Agency is an operationally independent institution of all actors involved in the management and implementation of IPA assistance.

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  Staff of the agricultural administration has constantly increased their capacities compliant to EU rules.
  
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  With each call the success rate of number of contracted applications increased from 23% to 49%.
  

The role of this Project is very important considering the impact of agriculture as a very significant economic sector representing 20% of the GDP. Nearly 50% of the total Albanian population live in rural area, thus agriculture is the main source of employment and income.

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  255 small – scale and medium farmers and agro – processors submitted applications with a total applied investment amount of 45.83 million Euro and grant amount of 23.80 million Euro (almost thrice of the total available grant funds). This success indicates both the high demand for capital investments and interest in the IPARD – like grant scheme to boost the Albanian agro – food sector.
  
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  88 farmers and agro – processors succeeded to fulfil all requirements and signed contracts with total EU Contribution of 4,108,501.59 Euro.
  

Manuals of Procedures for the Management Authority are planned to be updated with support from Project IPA 2011, implemented by GIZ during first and second quarter of 2015, in relation to the new structure of the Directorate, as well as the IPA Regulations and Sector Agreement. Human resources policies are formulated and implemented by the sector for Human Resources and IT within the Directorate of Internal Services in MARDWA in cooperation with Public Administration Department in the Ministry of Innovation and Public Administration Procedures for trainings and workload analysis are planned to be updated in the first quarter of the 2015.

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  “an indicative roadmap, which shows the ability of the Albanian authorities to prepare for IPARD implementation.
  
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  An indicative unified action plan for accreditation of management and implementation structure
  
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  A draft CoM decision setting up the authorities, structures and regulating mutual relations among them for IPARD implementation (2014-2020).
  
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  Unification of some standard procedures for IPA implementation with regards to Irregularities and risk management, revision of current Memoranda of Understanding between the NAO with Directorate for Financial Inspection and General Prosecutor for the judiciary follows up of the irregularity management.
  
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  Indicative work load analyses for the year 2015-2016 for the management structures