NOVEMBER 2000
under USAID Contract No. OUT-LAG-I-803-98-00031-00, Task Order No. 804
BASIS – Evaluation of the Albania Land Market Project
Submitted to:
USAID/Albania
American Embassy
Elbasani Street No. 103
Tirana, Albania
Submitted by:
ARD Consortium
159 Bank St., Third Floor
Burlington, VT 05401 USA
www.ardinc.com
EVALUATION OF THE ALBANIA LAND MARKET PROJECT
Evaluation of the Albania Land Market Project
Richard M. Gaynor
David J. Bledsoe
November 2000
Presented to
USAID/Albania
under the BASIS – Evaluation of the Albania Land Market Project
Contract No. OUT-LAG-I-803-98-00031-00, Task Order 804
ARD Consortium
159 Bank Street, Third Floor
Burlington, VT 05401 USA
Tel: 802-658-3890, Fax: 802-658-4247
ARD, Inc. and Rural Development Institute
Evaluation of the Albania Land Market Project – BASIS IQC
TABLE OF CONTENTS
ACRONYMS ..............................................................................................................................i
SECTION I. INTRODUCTION.............................................................................................1
SECTION II. PROJECT STATUS PURSUANT TO LAND MARKET PROJECT CA
AND LMAP...........................................................................................................................3
A. Objective 1: Prepare Immovable Property Registration Offices.....................................3
B. Objective 2: Acquire Base Maps for Remaining Cadastral Zones .................................3
C. Objective 3: Conduct First Registration for Agricultural and Urban Land ....................4
D. Objective 4: Regularize Rights Where Documentation is Lacking ................................6
E. Objective 5: Finalize First Registration ..........................................................................6
F. Objective 6: Create Digital Archives..............................................................................6
G. Objective 7: Conduct First Registration of Forest, Pasture and Waste Land and Other
Immovable Properties in Public and Private Ownership ................................................7
H. Objective 8: Tirana and Durres First Registration ..........................................................7
I. Objective 9: Public Information and Institutional Linkages...........................................8
J. Objective 10: PMU and IPRS Staff Training..................................................................9
K. Objective 11: Monitor and Provide Technical Assistance by the PMU and Registration
Office Staff to Field Teams and Coordinators Doing First Registration Work ..............9
L. Objective 12: Develop Legal and Institutional Options for the Improvement and
Sustainable Progress of Immovable Property Markets.................................................10
SECTION III. RECOMMENDATIONS FOR NOVEMBER 2000 THROUGH
DECEMBER 2001 ..............................................................................................................12
A. Strengthen the IPRS......................................................................................................12
1. Elevate Position of IPRS in Government................................................................. 13
2. Improve Accounting Systems.................................................................................. 15
3. Financial Plan and Submission to the Government ................................................. 15
4. Operational Plan....................................................................................................... 17
5. Integration of PMU Skills........................................................................................ 18
B. Finish First Registration................................................................................................19
1. Ownership documents.............................................................................................. 20
2. Refine First Registration Procedures ....................................................................... 21
3. Post Project First Registration Plan ......................................................................... 22
C. Improve Public Service and Refine Registration Procedures.......................................23
1. Tirana I Registration Office ..................................................................................... 24
2. Plan for Continued Employee Training ................................................................... 24
3. Develop Strategy for Digitizing and Updating of Maps.......................................... 25
4. Plan for Automating and Networking District Offices............................................ 25
D. Streamline Transaction Procedures...............................................................................26
SECTION IV. RECOMMENDATIONS FOR 2002 AND BEYOND ...............................28
A. Primary Activities.........................................................................................................28
Primary Activity No. 1: Real Property Taxation ............................................................. 28
Evaluation of the Albania Land Market Project – BASIS IQC
Primary Activity No. 2: Real Property Law..................................................................... 29
Primary Activity No. 3: Land Use Planning and Zoning................................................. 30
B. Secondary Activities.....................................................................................................31
Secondary Activity No. 1: IPRS Integrity and Sustainability.......................................... 31
Secondary Activity No. 2: Strengthen Land-Related Environmental Laws, Regulations,
and Procedures................................................................................................................. 32
SECTION V. CONCLUSIONS ............................................................................................33
A. Summary of Recommendations for November 2000 through December 2001............33
1. Strengthen the IPRS................................................................................................. 33
2. Finish First Registration........................................................................................... 34
3. Improve Public Service and Refine Operational Procedures................................... 34
4. Streamline Transaction Procedures.......................................................................... 34
B. Summary of Recommendations for 2002 and Beyond .................................................35
Primary Activity No. 1: Real Property Taxation ............................................................. 35
Primary Activity No. 2: Real Property Law..................................................................... 36
Primary Activity No. 3: Land Use Planning and Zoning................................................. 36
Secondary Activity No. 1: IPRS Integrity and Sustainability.......................................... 36
Secondary Activity No. 2: Strengthen Land-Related Environmental Laws, Regulations,
and Procedures................................................................................................................. 37
APPENDIX 1. LIST OF INTERVIEWEES.......................................................................A-1
Evaluation of the Albania Land Market Project – BASIS IQC i
ACRONYMS
CA Cooperative Agreement
CZ Cadastral Zones
EU/PHARE European Union/Poland and Hungary Assistance for Economic Restructuring
Programme
GIS Geographic Information System
IPRS Immovable Property Registration System
LMAP Land Market Action Plan
LTC Land Tenure Center for the University of Wisconsin
NGO Nongovernmental Organization
PMU Project Management Unit
USAID United States Agency for International Development
Evaluation of the Albania Land Market Project – BASIS IQC 1
SECTION I. INTRODUCTION
In November 1993, the Council of Ministers of Albania approved a Land Market Action Plan
(LMAP) describing activities and reforms to be undertaken in order to stimulate the
development of active real estate markets in Albania. The LMAP’s original goals were (1) to
create a new system for the registration of rights to immovable properties; and (2) to establish the
legal framework for dynamic, accessible and environmentally sustainable immovable property
markets. A Project Management Unit (PMU) was created to assist in the implementation of the
LMAP.
In 1999, the Land Market Action Plan was extended and the goals were restated. The general
goal of the extended LMAP is “to create the institutional bases for dynamic, equitable, and
sustainable immovable property markets that support the effective transition to a market
economy.” The specific goals of the extended LMAP are to:
· create a unified, cost-effective and accessible immovable property registration
system (IPRS) to record, display, update and legally protect private and public
rights to immovable property; and
· develop policy options to support immovable property market development and
to guide immovable property markets to induce more productive and sustainable
use of real property as well as socially acceptable access to immovable property
markets.
The extended LMAP also includes twelve operational objectives that support these two specific
goals.
USAID/Albania has provided assistance to the Government of Albania in carrying out the
activities in the LMAP pursuant to a Land Market Project Cooperative Agreement (CA) with
the University of Wisconsin, first signed on April 24, 1994. To date, USAID has committed
over $13 million to land market development activities in Albania. EU/PHARE has committed
approximately the same amount to support mapping and surveying activities conducted under
the LMAP as part of the effort to create the registration system. The CA terminates at the end
of December 2001.
USAID/Albania asked the authors to conduct an evaluation of the Albania Land Market Project
in order to provide USAID with an assessment of the progress made by the University of
Wisconsin’s Land Tenure Center in achieving the goals and objectives established in the CA
and LMAP. More specifically, the assessment was requested to:
1. evaluate the work completed under the Albania Land Market Project CA;
2. evaluate the current capacity of the IPRS and other associated offices to assume
responsibility for immovable property registration and assess long-term
sustainability of the IPRS;
Evaluation of the Albania Land Market Project – BASIS IQC 2
3. develop a transition plan for phasing out donor support to initial immovable
property registration activities over the period leading up to December 2001, and
the integration of critical functions and capabilities of the PMU into the IPRS; and
4. outline next steps in land market development strategy, with suggested priorities
for programming.
The authors conducted the evaluation during a visit to Albania from October 22 to November
8, 2000. During the visit, we met with representatives of the IPRS, PMU, University of
Wisconsin, the Ministry of Agriculture, and members of Parliament. We also met with
private sector market participants, including local nongovernmental organizations (NGOs),
real estate brokers, bankers, and notaries, and with international donor organizations,
including USAID, EU/PHARE and the World Bank.1
 A complete list of people interviewed
is attached as Appendix 1.
This report is organized into five sections. The second section describes the status of the
Albania Land Market Project. The third contains our recommendations on priority activities
to be conducted between now and the end of 2001 in order to best assure accomplishment of
the overall goals of the CA and the LMAP. The fourth section contains recommendations on
future programming options to be considered by USAID. The recommendations contained in
sections III and IV are restated in list form in the Conclusion (Section V).
 
1 Time did not permit formal interviewing of users of the IPRS (i.e., people whose property had been first registered or who
were endeavoring to have their transactions registered). Some anecdotal information was collected based on informal
interviews.
Evaluation of the Albania Land Market Project – BASIS IQC 3
SECTION II. PROJECT STATUS PURSUANT
TO LAND MARKET PROJECT CA AND LMAP
This section describes the status of the Albania Land Market Project in relation to the outputs
and objectives set out in the CA and LMAP. The discussion of project status is organized
according to the twelve operational objectives contained in the LMAP. Where CA outputs are
not expressly addressed by the LMAP objectives, the CA outputs have been mentioned within
the appropriate LMAP objective.
A. Objective 1: Prepare Immovable Property Registration Offices
All 34 planned district registration offices are open. The authors visited registration offices in
Tirana, Durres, Lushnje, Lac, Lezhe and Shkoder and found them all to be functioning —
transactions are being registered. Some offices lack appropriate amounts of space, and some
were deficient in user service amenities and systems. For example, in some offices, public
signage/information posting was inadequate, waiting areas were cramped and crowded,
service windows were uninviting and isolated customers from IPRS staff, there was no
customer queuing system, and some reception/service areas were difficult to locate and reach.
In short, some registration offices do not create a customer-service-oriented environment.
Others were adequate (but not exemplary) in this regard.
Registration office staff seemed generally adequate in number and training to conduct
registration of subsequent transactions (those transactions occurring after the first registration
of a property). All offices included staff members (in addition to the registrar) that covered
reception/counter service, cashier/finance, registration processing (clerks, lawyer, and
cartographer/engineer), and archiving.
Conclusion: All planned district registration offices are open. Inadequate or inappropriate
space is a problem in some offices. Staffing seems adequate. Transactions are being
registered.
B. Objective 2: Acquire Base Maps for Remaining Cadastral Zones
Base mapping is not yet complete. For urban areas, about three to four percent remains to be
finished. For agricultural/village areas, about 18 percent remains to be finished. Original
estimates put total agricultural land to be mapped at about 840,000 hectares. Actual amounts
are about 5 percent higher. Some remote cadastral zones (CZ) have not been mapped because
PMU mapping staff has not been able to obtain secure access. Several trained and qualified
PMU staff members with specialized mapping expertise have been lost to foreign employers.
The PMU cartography department head estimates that an additional €3.2 million will be
needed (beyond funds already committed) to complete the base mapping, map servitudes on
existing maps (which was not a part of the original plan), and obtain equipment and
automobiles. A request for this additional funding, which would be spent in the latter half of
2001 and first part of 2002, is now being prepared.
Evaluation of the Albania Land Market Project – BASIS IQC 4
Conclusion: Base mapping could be nearly complete (excluding some remote or insecure
areas) by December 2001.
C. Objective 3: Conduct First Registration for Agricultural and Urban Land
Measured in terms of the number of CZs for which first registration records have been
completed and turned over to the registration offices, first registration is about 50 percent
complete. About 1,440 CZs out of 3,046 have been delivered. Delivery of each CZ requires
draft kartela preparation, public posting and comment, resolution of conflicts and claims
(though some conflicts may remain unresolved), final kartela preparation, final index map
preparation and delivery of bound kartelas. About 1,000 additional CZs are in the first
registration process. Completion of these CZs would bring completion to 79 percent.
Measured in terms of the total number of properties to be registered (estimated by the PMU to
be approximately 3,000,000), first registration is about 44 percent complete, with the kartelas
for about 1,321,600 properties having been delivered. Many additional properties are in the
first registration process (within the 1,000 additional CZs). Assuming that the average
number of properties per delivered CZ was to remain constant, completion of the properties
within the 1,000 underway CZs would bring the completion total to 75 percent.
Early efforts at first registration focused upon agricultural land, where title documents were
substantially clear and available for processing. Attention was next turned to apartments
within urban CZs (or portions of CZs). Again, title documents for apartments have been
relatively clear and available.
Difficult properties exist in districts having significant numbers of nonagricultural, non￾apartment, or non-state parcels (that is, stand-alone residences or commercial parcels). Many
of these difficult properties await first registration. The characteristics that make these
properties difficult to register include:
1. the need to organize and review a large number of hipoteka documents;
2. the unavailability of Restitution Commission and Privatization Agency documents;
3. the existence of Restitution Commission decisions that cloud titles because of a
failure to join interested third parties or to conform to registration system parcel
determinations;
4. the existence of court decisions that cloud titles because of a failure to join
interested third parties or to conform to registration system parcel determinations;
and
5. a complete lack of documents that establish title.
Several approaches are being used to resolve the first registration of difficult properties.
Where relatively simple but time-consuming culling and parsing of hipoteka documents is
Evaluation of the Albania Land Market Project – BASIS IQC 5
required to establish title, the first registration staff has been so engaged. Rather than
systematically working through the properties by CZ, however, the process has frequently
been prompted by an attempt to register a transaction before first registration has occurred.
That is, presentation of purchase and sale documentation for registration has prompted first
registration of some properties and has provided staff with information to allow them to sort
through the hipoteka documents and create a chain of title.
Where Restitution Commission or Privatization Agency documents have been unavailable,
first registration staff have begun (and, in some cases, successfully completed) negotiations
for access to those documents. Where attempts to obtain documents have been unsuccessful,
the registration of properties in the corresponding CZs has been blocked. In some cases, the
local commissions or agencies want money in exchange for making the documents available.
Where Restitution Commission or court decisions have clouded title or not conformed to
PMU parcel demarcation, properties have been preliminarily registered in the name of one of
the parties and flagged to indicate a problem. Here, subsequent court action may be required
to render clear title.
Where there are no ownership documents at all for a parcel, property occupants can attempt to
establish title by way of declaration and providing supporting documentation. If this process
fails or if no occupier comes forward to establish title, the property is registered in the name
of the state. About 30 percent of all properties registered within the system are registered to
state ownership. This total includes both the properties having unclear title and actual state
properties (including schools, roads, buildings, and plots). An inventory of state properties is
planned as a future activity. For many of the “state properties” that are in fact possessed and
occupied by private entities, it is expected that title will be resolved at the time of any
subsequent transaction.
In the districts visited, the number and severity of difficult properties varied. In one district,
two CZs have been blocked from registration because of an inability to obtain documents
from local agencies. About a quarter of this district’s urban CZ parcels are non-apartment
properties that will be difficult to register. Also in this district, an estimated 15 to 20 percent
of all privately occupied properties will be registered in the name of the state because
privatization documents do not exist. In another district, about 20 percent of all properties
have been blocked from first registration because restitution and privatization documents have
not been made available. In this same district, about 30 percent of the rural properties have a
conflict between the tapi holder and another claimant, and some properties are blocked from
first registration because PMU first registration staff cannot obtain access to the properties for
survey and measurement. In a third district, there are about 15,000 non-apartment properties
within nine urban CZs that will require time-consuming first registration efforts. In a fourth
district’s urban CZs, there are about 17,000 hipoteka documents (related to subsequent
transactions of privatized properties) to be parsed as a part of first registration. Assuming that
perhaps 13,000 properties might be represented by these documents and about 300 work days
from November 2000 through December 2001, about 43 first registrations will need to be
completed each day to complete first registration for the 13,000 properties.
Evaluation of the Albania Land Market Project – BASIS IQC 6
At current rates of completion, first registration of many of the difficult properties will likely
remain unfinished by December 2001. As the effort and amount of coordination required to
register difficult properties increases (by virtue of the easier cases being cleared first),
completing first registration of the final properties will become marginally more costly. In
any event, there is probably a lack of sufficient PMU staff in district offices to complete first
registration by December 2001.
Conclusion: First registration of many of the difficult properties will likely remain unfinished
by December 2001. A rough estimate would put the number of unregistered properties
between 20 and 35 percent of all properties at the end of 2001. It is important to note,
however, that even if the PMU meets its objectives, 10 to 20 percent of the properties will not
be first registered. (This percentage is included in the 20-35 percent of all properties not
registered by December 2001.)
D. Objective 4: Regularize Rights Where Documentation is Lacking
In some 600 villages, property was privatized by way of restitution rather than allocation, and
the local Land Commissions did not issue tapis or other ownership documents to landholders.
In some of these areas PMU field teams have compiled property occupation data and have
prepared parcel maps. The information has been entered into parcel books and the books
have been provided to local government officials in an attempt to encourage them to issue
ownership documents. Ownership documents have not yet been issued by these local entities.
Conclusion: Some of the ownership information has been gathered and made available to
local governments. Since local government agencies have failed to issue ownership
documents, these properties will probably not be registered by December 2001.
E. Objective 5: Finalize First Registration
The status of first registration is discussed under Objective 3 above.
Objective 5 contemplated the establishment of verification commissions to assist in the
monitoring of the public display and other first registration activities. The commissions were
to include: the elder of the village or town, representatives from the commune or
municipality, the cadastre office, and the urbanistic office, the District Registrar and the PMU
District Coordinator. No verification commissions have been established. When necessary,
PMU staff, in cooperation with local representatives, has verified and corrected posted first
registration information.
Conclusion: First registration of many properties will likely remain unfinished by December
2001.
F. Objective 6: Create Digital Archives
Approximately 30 percent of the index maps have been digitized. Despite the loss of trained
and qualified PMU staff, PMU management believes that digitization of substantially all
Evaluation of the Albania Land Market Project – BASIS IQC 7
index maps will be complete by December 2001. Some of the final corrections resulting from
public display and verification have not been entered into the digitized maps. Also, it is seen
as troubling by PMU mapping staff that IPRS staff has no capability or interest in updating
the digitized maps to reflect subsequent property transactions. The digitized maps will
quickly be out of date as corrections continue and transactions (partitions, for example)
increase.
All initially prepared kartelas have been entered into the database (by virtue of preparing the
property lists for public display). Again, some of the final corrections resulting from public
display and verification have not been entered into the kartela database. The kartela database
is not delivered to the IPRS when the final first registration kartelas are delivered to the IPRS.
Therefore, the kartela database will quickly be out of date as corrections continue and
transactions increase.
Integration of the digitized maps and the kartela database has begun for some of the rural
CZs, although little overall progress has been made because neither all the base maps nor all
the kartelas have been entered into the database.
Conclusion: The PMU estimates that all digitization and data entry of maps and kartela will
be complete by December 2001, to the extent that the maps and kartela are complete.
Digitized maps will quickly become outdated (although hardcopies will likely be updated to
some extent by IPRS). The kartela database will also become outdated as transactions
continue.
G. Objective 7: Conduct First Registration of Forest, Pasture and Waste
Land and Other Immovable Properties in Public and Private Ownership
The base mapping of 1,121 CZs has been completed, and the gross designation of plots has
been added to these maps. The total number of forest, pasture, waste and other land parcels is
unknown. Some estimate of the total is needed to determine progress. In any event, some
resolution of administrative boundaries will be required to complete the mapping and parcel
designation.
Conclusion: First registration of many of these properties will likely remain unfinished by
December 2001.
H. Objective 8: Tirana and Durres First Registration
Measured in terms of the number of CZs delivered to registration offices, first registration of
Tirana/Durres is about 63 percent complete. Another 86 CZs in Tirana/Durres are in the first
registration process. Completion of these CZs would bring completion to approximately 97
percent.
Many of the CZs underway but not complete or not yet underway within the Tirana/Durres
corridor contain difficult properties. This reality was recognized by the LMAP when it noted
that these properties, “combined with the difficulties in coordinating and enforcing urban
Evaluation of the Albania Land Market Project – BASIS IQC 8
regulation, have created an environment which will require particular attention and
procedures to complete first registration.” With this reality in mind, the LMAP put forth a
number of activities under this objective. They included:
· the identification of potentially valid claims of ownership and other interests in
immovable property;
· development of the necessary institutional CAs to ensure that ownership
documents would be made available to the PMU;
· development for “parcelizing” all of the records;
· priority PMU support (directly and through contract staff) to the Tirana and Durres
district registration offices for first registration;
· development, in cooperation with all relevant agencies, of the legal and regulatory
basis for documentation of public property rights; and
· development, in cooperation with the Ministry of Justice, of standardized
adjudication procedures for resolving competing claims.
Some of these activities have not yet been undertaken. Accomplishing these activities would
probably help speed first registration in the Tirana/Durres CZs. For example, having express
institutional CAs in place would, in fact, make it easier to obtain documents that establish
immovable property rights. As another example, having a standardized adjudication process
in place by which controversies are heard and resolved would make dispatching with
competing claims quicker and less costly and would yield more standardized results.
Conclusion: First registration of many of the difficult properties within the Tirana/Durres
CZs will likely remain unfinished by December 2001, although the majority of legal
properties will have undergone first registration. Illegal constructions have not been
addressed during the first registration process.
I. Objective 9: Public Information and Institutional Linkages
The slated public information events have occurred as scheduled. Although many property
owners have not come forward with ownership documentation, those property owners
undertaking a transaction subsequent to privatization seem to be generally aware of the IPRS
requirements and process. The volume of transactions conducted within the district
registration offices indicates that there is significant familiarity with the registration
requirements.
Cross-institutional links with other public entities appear to be weak in some places, despite
an avowed knowledge by most public ministries and agencies of the existence, importance
and function of the IPRS. Evidence of the weaknesses is shown by the failure of the various
ministries to coordinate their activities with the IPRS. Additional signs of weakness are
shown by the Restitution Commission and court decisions that conflict with the principles of
registration, the inability to obtain documentation from the Restitution Commissions and
Privatization Agency, controversies with the Ministry of Defense over base map ownership,
and with the Ministry of Transport over property takings that do not comport with IPRS
parcel designations.
Evaluation of the Albania Land Market Project – BASIS IQC 9
The cross-institutional link with the Chamber of Notaries appears to be strong, with the
notaries being informed about IPRS procedures and requirements. PMU staff members have
forged some strong connections to NGOs. The Foundation for Conflict Resolution and
Reconciliation of Disputes, and the Center for Habitat Development (Co-Plan) are examples.
Conclusion: The outputs required under this objective have been delivered. The required
number of contacts with other public institutions was probably insufficient; cross-institutional
links are weak. Some links with other institutions have been forged.
J. Objective 10: PMU and IPRS Staff Training
Training of district PMU and IPRS staff has occurred as planned, as has management training
for the registrars. Training of IPRS staff on database updating and financial management has
not occurred. Training for professional groups (notaries, lawyers, bank employees, and local
government personnel) has not occurred as planned. Training abroad has occurred to the
extent planned. A testing program has been developed and used once. The nominal contents
of a registration manual have largely been created in the preparation of Regulation No. 184:
Regulation for the Work of Immovable Property Registration Office (April 1999, amended
January 2000), Instructions on First Registration in Urban Zones (June 1999) and Manual for
First Registration of Forests and Pastures (August 1999).
Variation in both first and subsequent registration procedures and practices was noted during
visits to district registration offices, although not to an extent to prevent substantially accurate
first registration or registration of subsequent transactions. PMU and IPRS staff, for the most
part, seem basically trained in the rudiments of the existing procedures and processes.
Conclusion: Training has been performed in general conformance with the required outputs
and has generally delivered the requisite level of knowledge and expertise.
K. Objective 11: Monitor and Provide Technical Assistance by the PMU and
Registration Office Staff to Field Teams and Coordinators Doing First
Registration Work
This objective provided for the support of the PMU first registration field teams and included
assistance in mapping, kartela preparation, financial management, identification and
resolution of constraints, organizational and procedural advice, and organization of the overall
work.
Conclusion: Central PMU and IPRS staff has monitored and helped the field teams and
coordinators within the districts.
Evaluation of the Albania Land Market Project – BASIS IQC 10
L. Objective 12: Develop Legal and Institutional Options for the
Improvement and Sustainable Progress of Immovable Property Markets
PMU, LTC, University of Wisconsin authors and others have prepared a variety of studies
and commentary over the life of the project. These materials address the Albanian land
registration system, land tenure situation, land administration, land protection, and property
market. These publications have provided valuable perspectives and have contributed to the
body of literature related to these subjects.
A variety of draft and final laws, regulations, and procedures have also been created over the
life of the project. These include (but are not limited to) the Law on Registration of
Immovable Property, and the Law for the Transfer of Ownership of Agricultural Land,
Meadows, Pastures and Forests.
The CA generally calls for the strengthening of Albanian land market institutions, including:
· capacities for property appraisal,
· flow of real property demand and supply information,
· access by the disadvantaged to property markets,
· legal and land survey services, and
· basic land market legislation.
Of the above, some property appraisal standardization and training has been done, a flow of
demand and supply information has been created within the IPRS (although it is not yet being
systematically gathered and dispersed), private land survey service capacities have been
created, and basic land market legislation has been enacted. Private real estate brokerage
firms have also developed computerized listing services that are good sources of real property
demand and supply information. Individual firms have not yet linked their systems with other
firms to form a more extensive listing service, but such a system is being discussed. There
was no evidence that there has been any increase in access by the disadvantaged to property
markets.
The CA also calls for land policies dealing with:
· land use zoning,
· preservation of agricultural land,
· assuring access to the land market by capital-poor families,
· gradual liberalization of the land market,
· assuring intra-family rights to real property, and
· environmentally sustainable tenure systems for the management of fragile
environments.
Of the above, land policies related to the gradual liberalization of the land market have been
developed (registration, transfer, partition, lease, and others). The Land Market Project has
not been as successful at creating land policies dealing with the other topics.
Evaluation of the Albania Land Market Project – BASIS IQC 11
It is notable that real estate markets in urban and peri-urban areas have been and continue to
be very active. Markets seem to have been self-starting to some extent, especially in peri￾urban areas where illegal occupation and construction have been quite common, and where
agricultural land is being converted into urban use. Market activity has also been stimulated
by privatization, the enactment of several vital land-related laws, and the subsequent (and
ongoing) registration of properties. By contrast, the agricultural land market is sluggish
because of a lack of demand for agricultural land caused in part by very low demand for
locally produced agricultural products. Local agricultural products continue to be more
expensive than products from neighboring countries. Fragmentation of agricultural land
resulting from the privatization of State and collective farms is also blamed by some for
decreasing agricultural production, and, therefore, creating a low demand for agricultural
land. The desire to consolidate agricultural parcels ought to increase agricultural land market
activity in the future.
Conclusion: The drafting of vital land legislation and the implementation of the immovable
property registration system have helped to stimulate Albanian land market activity. Urban
and peri-urban land markets are active; agricultural land markets are less active.
Evaluation of the Albania Land Market Project – BASIS IQC 12
SECTION III. RECOMMENDATIONS FOR NOVEMBER 2000
THROUGH DECEMBER 2001
Our principal recommendation regarding activities during the remaining fourteen months of
the project is that the IPRS, PMU and LTC technical assistance team should focus on a
narrow set of objectives rather than pursuing all of the activities described in the LTC CA and
the Land Market Action Plan. In our view, the highest priority objectives are the following:
· strengthening the IPRS,
· integrating PMU skills,
· finishing first registration,
· improving public service and refining registration procedures, and
· streamlining transaction procedures.
Achievement of these objectives will yield the best results in terms of ensuring the long-term
viability of the registration system, and stimulating real estate markets in Albania. Each of
the objectives is discussed in more detail below.
For the PMU, IPRS and LTC technical assistance team to achieve these objectives, they are
going to need the support and cooperation of the government and various ministries. During
the early years of the project, the Coordinative Working Group provided much of this support,
and served as a means of coordinating the activities of the different ministries represented in
the Group. The Group has ceased functioning in recent years leading to a severe lack of
cooperation among government agencies. We discussed this issue with almost every one we
met during our visit, including the Chief Registrar, the Minister of Agriculture, the Managing
Director of the PMU and members of Parliament. All agreed that reinvigoration of the
Working Group, or a similar coordinating body, should be a top priority. The Minister of
Agriculture said he would initiate a meeting of the Group. If the Minister of Agriculture has
not already convened the Group, steps should be taken immediately to do so. The Group
should recommence regular meetings and should report its findings to the government so that
actions necessary to facilitate the work of the PMU and IPRS will be taken.
In addition to the support of the Coordinative Working Group, successful achievement of
these objectives may require the international donor agencies to play a more active role in
bringing key issues to the attention of government. Donor intervention may be particularly
important in addressing issues such as institutional strengthening of the IPRS and relocation
of the Tirana I registration office. The LTC team will play a key role in stimulating action on
these objectives and seeking donor support when necessary. The LTC team may have to take
the lead on some of these issues if the IPRS and PMU do not have the personnel to do so
themselves.
A. Strengthen the IPRS
The IPRS is a relatively new institution that in the short run will depend on government
support and oversight. The long run goal, however, is for the IPRS to become self-financing
Evaluation of the Albania Land Market Project – BASIS IQC 13
and self-managing. In order for that goal to be achieved, it is important for the IPRS and
technical assistance team to concentrate on the following issues over the remaining life of the
LTC CA:
· elevate the position of the IPRS in government;
· improve the IPRS’s accounting systems;
· prepare and submit a financial plan to the government proposing a timeline and
specific steps to be taken for the IPRS to become self-financing and self￾managing;
· prepare an operational plan so as to improve and formalize administration of the
IPRS central office, and management of the district offices2
; and
· integrate skills from PMU to the fullest extent possible.
1. Elevate Position of IPRS in Government
One of the reoccurring themes we heard during our meetings in Albania was that the IPRS
lacks the institutional strength and status to function effectively within the government
structure. The IPRS is a government "agency” that reports directly to the Council of
Ministers. Since it is neither a ministry, nor subordinate to a ministry, it has become
increasingly isolated from other government agencies, which has greatly diminished its
effectiveness. In some cases the IPRS’s nonministerial status has resulted in a lack of
cooperation from other government agencies. In other cases, government agencies have
actively blocked the IPRS’s proposals to government. Formal clarification and elevation of
the IPRS’s status within the government structure is crucial to increasing its effectiveness and
ensuring long-term sustainability.
There are several ways to strengthen the IPRS’s standing within government, including
elevating it to ministerial status, incorporating it into an existing ministry, or making specific
changes to the IPRS to bolster its standing relative to other government agencies. We
discussed these three alternatives with many government officials and nongovernment
participants in real estate markets. The overwhelming majority favored altering the IPRS but
not making it into its own ministry, or integrating it into an existing ministry.
Most people rejected the idea of elevating the IPRS to ministerial status because they felt that
the IPRS’s narrow mandate (i.e., registration of real estate transactions) was not sufficiently
important to justify its being a stand-alone ministry. In the context of recent economic
reforms, the IPRS has had a relatively high-profile role. This role will naturally diminish over
time as privatization, compensation, and first registration issues are resolved, and the IPRS
settles into the largely routine, administrative task of registering real estate transactions.
Given that the IPRS’s role in policy-making is likely to diminish over time, and is unlikely to
be equivalent to that of other ministries, we agree with those who oppose elevating the IPRS
to ministerial status.
 
2 The financial and operational plans are closely related and though we propose two separate documents, they could also be
combined into one document.
Evaluation of the Albania Land Market Project – BASIS IQC 14
Most people also rejected the idea of making the IPRS part of an existing ministry. They
feared that moving it into another ministry would diminish its independence and impartiality
and make it captive to the broader goals of whichever ministry into which it was moved.
From a substantive perspective, most people felt there was no particular ministry into which
the IPRS would conveniently fit. For example, the Ministry of Agriculture has jurisdiction
over agricultural issues, but the registration system includes both agricultural and
nonagricultural properties. Conversely, the Ministry of Public Works has jurisdiction over
urban properties, but not agricultural areas. The Ministry of Finance was also mentioned as a
possibility, but was not favored because of the fear that, if the IPRS were part of the Ministry
of Finance, the public would avoid using it because of the perception that registration would
be tied too directly to taxation. The only other Ministry that was mentioned as a possibility
was the Ministry of Justice. Many countries have avoided putting their registration systems in
the Ministry of Justice because of the perceived conflict of interest presented by the Ministry
of Justice’s roles in law enforcement and supervision of the notaries and courts. Again, we
agree with those who oppose moving the IPRS into an existing ministry.
Given the overwhelming support for preserving the IPRS as an independent agency, we
recommend taking steps necessary to remedy its current difficulties and to bolster its standing
within government.
A difficulty for the IPRS that should be addressed is its inability to present legislation directly
to the Parliament. Because the IPRS is not a ministry, and the Chief Registrar is not a
member of the Council of Ministers, the IPRS cannot make legislative proposals directly to
Parliament. Proposals must be channeled through either the Council of Ministers or a
particular line ministry. This process has meant that IPRS proposals for important legislative
changes have been delayed, or, in some cases, blocked. There are other nonministerial
agencies such as the Central Bank that have the authority to present legislation directly to
Parliament. We support the idea of giving similar authority to the IPRS.
Another comment we heard frequently is that the IPRS is too susceptible to external political
pressures. One reason for this is that the Prime Minister currently appoints the Chief
Registrar. Thus, changes in the government are likely to result in replacement of the Chief
Registrar, creating an impression of instability and political influence. Some members of
Parliament suggested that the Chief Registrar could be insulated to some extent from political
changes if he or she were appointed by the President and confirmed by Parliament. We do
not know Albanian constitutional law or precedents in other government agencies well
enough to know whether this is a viable option, but we support steps to insulate the Chief
Registrar and the IPRS from political influence. In the long run this will increase the
credibility of the Chief Registrar and the IPRS, which should increase people’s confidence in
and willingness to use the system.
The issue of strengthening the IPRS is one that should be among the first to be discussed by
the Coordinative Working Group when it reconvenes. The Group should consider the options
described above, as well as others, and should submit a list of recommendations to the
government. Without the support of the Group, it is unlikely that the IPRS on its own will be
able to convince government to implement such changes.
Evaluation of the Albania Land Market Project – BASIS IQC 15
2. Improve Accounting Systems
Based on our limited discussions of financial issues at the district and central offices, we
believe the IPRS could benefit significantly from an effort to upgrade its accounting systems.
John Manthorpe, a consultant who reviewed the IPRS’s financial and accounting systems
during two visits to Albania in February and October 1999, concluded that the IPRS uses
sound bookkeeping, accounting, and audit procedures capable of tracking actual and budgeted
revenues and expenses.3
 He also concluded that IPRS staff possesses the skills and are
capable of forming “an effective nucleus to administer the IPRS as a self-financing
institution.” Although we concur with Manthorpe, we found many of the IPRS’s financial
reports to be very difficult to interpret. In some cases they contained obvious inaccuracies
and internal inconsistencies. In addition, it was very cumbersome to generate monthly
financial data because the only way to arrive at monthly figures was to subtract the prior
month’s cumulative data from the current month’s cumulative data.
If the IPRS is to make a credible argument to government that it should be granted increased
financial and administrative autonomy, it must be capable of producing detailed financial
reports that are accurate and easy to understand. Given that the IPRS is going to be faced
with a significant reduction in technical assistance at the end of next year, improvement of the
accounting systems is a high priority. Therefore, we recommend that LTC bring in a
consultant as soon as possible to work exclusively with the IPRS for between two and four
months on refining the IPRS’s accounting systems and financial reporting capabilities. The
consultant would also help prepare the financial and operational plans described in the
following section.
3. Financial Plan and Submission to the Government
The Chief Registrar, PMU and LTC team must use the next fourteen months to develop a
financial plan describing how the IPRS will generate or receive adequate funding from the
government to continue to carry out its activities. The plan should be the centerpiece of a
submission to the government advocating increased fiscal and managerial autonomy for the
IPRS in order to allow the IPRS to attain self-financing status over a period of years. Ideally,
the IPRS would initiate the preparation of the plan and would receive guidance and support
from the Coordinative Working Group and the technical assistance team. Given the
importance of getting the process started, however, it is recommended that the LTC technical
assistance team take an active role in initiating and supporting the process. In addition, it is
recommended that USAID and the other donors send a clear message to the government
regarding the importance of the plan given the significant reduction of financial support
scheduled to occur at the end of 2001.
The IPRS currently operates at a significant deficit, and its budget is subject to many
legislative constraints as well as approval by the Ministry of Finance. In other words, the
IPRS is a long way from being self-financing or self-managing. Under current arrangements,
 
3 Manthorpe, October 1999
Evaluation of the Albania Land Market Project – BASIS IQC 16
the IPRS is permitted to retain 60 percent of the total fee income it collects.4
 (This does not
include the “transfer tax” that each district office collects for every transaction, the entire
amount of which the IPRS provides to the government.) In 1999, the IPRS collected fee
income of 75 million Lek, 45 million of which it was permitted to retain. During the same
period, the IPRS had expenditures (not including capital improvements) of 122 million Lek.
The government financed the 77 million Lek deficit from the national budget.
Some work has been done on analyzing the IPRS’s finances and preparing a plan for moving
it towards self-financing status. Manthorpe, in his October 1999 report, described a plan
whereby the IPRS could become self-financing if it were allowed to retain 100 percent of the
fees it collects rather than 60 percent and if it raised fees by approximately 63 percent over the
next five years. Like Manthorpe, we believe substantial additional work must be done on
preparing a submission to the government outlining the changes that would need to be made
in order for the IPRS to become self-financing. The submission would have to be based on
specific and realistic projections, and would have to be supported by arguments about why the
proposed changes should be desirable to the government.
To assist the IPRS in developing its submission to government, we recommend that the
consultant described in the previous section work with the IPRS on developing a
comprehensive financial plan that would include the following:
· detailed estimates of revenues and expenses for the IPRS for the next five years
based on projected numbers of transactions, fees collected, and proposed staffing
levels for the central and district offices;
· proposals for gradually adjusting fees as necessary to enable the IPRS to become
self-financing (or as close as possible), bearing in mind the public’s ability and
willingness to absorb fee increases;
· proposals for adjusting staffing levels and duties in the central and district offices
in order for the IPRS to become self-financing as closely as possible; (This would
include job descriptions for IPRS employees, and would account for the fact that
smaller district offices should have fewer employees than larger offices, and that,
in the smaller offices, the employees might have to perform a broader range of
responsibilities.)
· a proposal to the government to allow the IPRS to move towards financial and
administrative autonomy by gradually increasing the percentage of fees it is
allowed to retain; (The proposal would include the arguments in support of
allowing the IPRS increased financial autonomy. The proposal would also include
steps the IPRS would take to ensure that revenues would be used to support the
system.) and
· a proposal to the government to allow the IPRS to reclassify its employees (i.e.,
increase salaries) over time in order to be able to attract and retain qualified
specialists.
 
4 There are specific legal constraints on how the IPRS may use the 60 percent of fee income it is allowed to retain. Half of
the 60 percent may be used for “operations,” 30 percent for “investment,” and 20 percent for “bonuses” to supplement staff
salaries. Any part of the 60 percent that is unused is returned to the government.
Evaluation of the Albania Land Market Project – BASIS IQC 17
4. Operational Plan
In addition to the financial plan, we believe it is important for the LTC consultant and the
IPRS to prepare an operational plan that would guide the IPRS’s current and future
administrative activities. The operational plan should address management and operation of
the central office and the district offices.
With respect to the central office, we found that the staff we met was well trained and capable
of fulfilling their duties. The problems they faced related primarily to a lack of formal
administrative structure within the central office and a shortage of staff. In his October 1999
report, Manthorpe presented proposals for organizing and managing the central office. The
proposals included dividing the central office into three directorates: registration; policy and
development; and administration. Manthorpe developed fairly detailed descriptions of the
duties and staffing of each directorate. We believe Manthorpe’s recommendations form a
good starting point for development of an organizational structure for the central office. His
ideas should be refined based on careful consideration by the Chief Registrar and his staff,
with the assistance of the LTC consultant, and should be implemented as quickly as possible.
In addition, the Chief Registrar should attempt to hire additional staff for the central office.
Although we caution against a disproportionate expansion of the central office relative to the
overall size of the IPRS, it appears to us that the central office could use some additional
employees, particularly lawyers and trainers. Currently, the one lawyer in the central office is
responsible for responding to inquiries from the district offices, preparing regulations and
other legislation, and conducting much of the training of district office staff. We understand
that the IPRS budget contemplates the hiring of additional staff and we encourage the Chief
Registrar to do so, even if it means squeezing more people into existing office space.
The operational plan should also describe the relationship between the central office and the
district offices. The decentralized network of 34 district registration offices creates significant
management challenges that are exacerbated by the remoteness of some of the offices, and
poor transportation and communication links. Given these challenges and the inexperience of
some of the district offices, it is particularly important for the Chief Registrar to develop a
formal system whereby the central office will communicate regularly with district offices for
purposes of supporting and monitoring their activities. One suggestion that has been made is
that the district offices be organized into five or six regional groups that would meet twice a
year with the Chief Registrar and other central office staff. This suggestion, as well as other
possible approaches, should be considered carefully, and a formal plan should be adopted and
implemented. Such a plan will help ensure competency and consistency among the district
offices.
The operational plan should also describe guidelines for hiring of staff, suggested staffing
levels for district offices of varying sizes, formal job descriptions, and training programs both
for initial and ongoing staff training. The IPRS would be well served to move to a more
transparent system of hiring, whereby jobs were announced publicly and candidates were
evaluated on the basis of clearly stated objective criteria. District offices should strive to hire
the most qualified and well-trained staff possible. During our field visits we observed that
some district offices are obviously overstaffed. Adjustments may need to be made in districts
Evaluation of the Albania Land Market Project – BASIS IQC 18
with relatively low transaction levels. Staff in smaller offices may need to perform a broader
range of activities to compensate for the smaller number of employees. All employees should
be well trained, and, although training so far has been impressive, a formal program needs to
be developed to ensure that all employees receive adequate initial and ongoing training.
Although this may not necessarily be a part of the operational plan, we suggest that the Chief
Registrar and the technical assistance team produce a comprehensive registration manual to
be distributed to each of the district offices. We observed that most district offices had copies
of the registration regulations; registrars and other employees consulted them regularly. The
regulations contain much of the material for a manual, but there are gaps that still need to be
covered. Ideally, the manual would be organized and user friendly and less legalistic than the
regulations.
5. Integration of PMU Skills
One of the early successes of the project was the establishment of the PMU to conduct first
registration, and, once first registration is completed, to work with the IPRS on the
establishment and ongoing operation of the system. Because the PMU was created several
years before the IPRS, staff at the PMU generally have received more training and have more
experience than their counterparts at the IPRS. It is important to the ongoing success of the
project that the expertise at the PMU be transferred to the fullest extent possible to the IPRS,
whether through cooperation and communication between the two institutions, or gradual
integration of PMU staff into the IPRS.
Although integration of PMU staff into the IPRS has occurred in some of the district offices,
it is unlikely to occur at the central office level because of the significant difference in salaries
paid by the PMU and the IPRS. PMU staff almost universally rejected the idea of going to
work for the IPRS at a lower salary even though the IPRS might offer more stable long-term
employment. As stated above, we believe that as part of the financial plan the IPRS should
make a case to government for raising its salaries, both to attract qualified people from the
private sector and to attempt to retain some of the specialists at the PMU. Without an
increase in salaries, very few if any of the central office PMU staff are likely to move over to
the IPRS.
Given that the integration of staff from the PMU into the IPRS may not occur, it is
particularly important over the next fourteen months that the skills developed at the PMU be
transferred to the IPRS staff to the fullest extent possible. The ideal way to maximize
interaction between the PMU and IPRS staffs would be to locate the PMU in the same
building as the IPRS. The IPRS has proposed renovating the floors above the IPRS office in
the Tirana using World Bank funds and then moving the PMU to those floors. Though we
support locating the PMU with the IPRS, we have reservations about the IPRS’s proposal for
two reasons. First, as discussed in more detail below, we strongly oppose any plan that
includes keeping the Tirana I district registration office in its current location. Second, it is
highly unlikely that the World Bank funds will be available for the renovations to be
completed much before the end of 2001 (when USAID funding to the PMU is scheduled to
end). Moving the PMU must occur much more quickly if it is to be of any use. We therefore
urge the IPRS, PMU and the international donors to explore options, including new space for
Evaluation of the Albania Land Market Project – BASIS IQC 19
the Tirana I office, that would allow the PMU to co-locate with the IPRS as quickly as
possible.
Given that the relocation of the PMU is unlikely to occur in the next two or three months,
IPRS and PMU management should develop mechanisms to increase cooperation and
communication between the two agencies. Ideas to be explored include: conducting regular
meetings during which issues of interest to staff from both agencies could be discussed,
creating committees with representatives from both agencies to address particular problems,
and seconding PMU staff to the IPRS to assist on particular projects. None of these things
will happen without leadership from the Chief Registrar, the Managing Director of the PMU,
and members of the LTC technical assistance team. Increased cooperation and more regular
communication among all parties are essential to facilitating the transfer of skills from the
PMU to the IPRS.
The physical separation of the two agencies is further complicated by the fact that the PMU is
not clearly subordinated to the IPRS or to any other single government agency. On one hand,
the PMU answers to the Ministry of Agriculture because the projects managed by the PMU
are technically agricultural projects, and because the Minister of Agriculture appoints the
Managing Director of the PMU. On the other hand, the PMU is responsible to the IPRS for
conducting first registration. Occasional strained relations or disagreements between the
Ministry of Agriculture and the IPRS have left the PMU stuck in the middle without clear
direction. From a purely institutional perspective, it would be helpful to reposition the PMU
under the IPRS. We understand that such a move may not be practical in the remaining time
of the project, but we think it is worth considering.
One argument against subordinating the PMU to the IPRS is that the PMU’s mandate under
the Land Market Action Plan includes a range of land reform and land market activities that
are outside the institutional authority of the IPRS. Although this is technically true, the reality
is that the PMU long ago ceased working on land reform issues and is now focusing entirely
on first registration. Moreover, the subordination of the PMU to the Ministry of Agriculture
has become less logical as first registration activities have shifted from rural to urban
properties.
Though it may not be practical to reposition the PMU under the IPRS, donor agencies should
be aware that continued funding of the PMU through the Ministry of Agriculture is likely to
inhibit efforts to integrate the PMU and IPRS. For future projects that relate specifically to
registration, the IPRS should be the sole government counterpart.
B. Finish First Registration
The Law on Registration of Immovable Property gives the PMU the authority to conduct first
registration (i.e., the process of systematically preparing registration index maps and kartelas
for a group of properties, and verifying the accuracy of ownership information by inspecting
documents and conducting a public display). Once the PMU completes first registration for
all the properties within a CZ, or for a group of properties within a zone, it delivers the index
maps and kartelas for the completed properties to the appropriate IPRS district office. A
Evaluation of the Albania Land Market Project – BASIS IQC 20
notation is made on the kartela for any property that is the subject of conflicting claims, or for
which there is insufficient documentation to determine ownership. Once a property is turned
over to the IPRS office, that office becomes responsible for processing any transactions that
occur after first registration.
The PMU’s goal over the next fourteen months is to complete first registration for
approximately 80 to 90 percent of the properties in the country, leaving unfinished only
properties in remote regions and properties for which privatization documents have not been
issued. As described in Section I, the PMU has currently completed first registration for
approximately 1,440 of the 3,046 CZs in the country. An additional 1,000 zones are at
different stages of the first registration process. The pace of first registration has slowed
somewhat as the PMU has shifted its focus from agricultural to urban properties. The PMU
began its work in urban areas by focusing on apartments, and is now moving to such non￾apartment properties as single-family homes and commercial and industrial properties. The
first registration of apartments appears to be relatively straightforward and is proceeding
rapidly.
For IPRS to meet its first registration goals and to plan for the IPRS to have the ability to
complete any uncompleted first registration, we recommend that the PMU and LTC technical
assistance team focus on the following three areas over the next fourteen months:
1. Ownership documents — obtaining ownership documents from other agencies,
helping other agencies issue ownership documents in cases when they have not
been issued, and developing procedures for addressing cases in which ownership
do not exist.
2. Refine first registration procedures — streamlining first registration procedures,
especially for non-apartment urban properties.
3. Post-project first registration plan — developing a plan for the IPRS to continue
first registration once the PMU completes its activities.
1. Ownership documents
There are two categories of cases in which the inability of the PMU to obtain ownership
documents has inhibited the first registration process. The first category consists of cases in
which other agencies are withholding documents from the PMU despite the clear legal
obligation of those agencies to provide these documents to the PMU. The PMU needs to take
steps immediately to pressure all uncooperative agencies to provide access to the documents
in accordance with the law. To do this most effectively, we suggest that the PMU make all
requests for documents in writing. Requests that are not honored should be repeated on a
weekly basis until they are honored. The PMU should maintain a chart showing all requests
that have been made and the status of those requests. The PMU should provide a copy of that
chart every week to the members of the Coordinative Working Group, if that group again
becomes active, or directly to the government. Resolving this issue is largely a matter of
enforcing existing legislation and making sure that noncomplying agencies become the focus
of political and legal pressure.
Evaluation of the Albania Land Market Project – BASIS IQC 21
 The second category of cases in which the PMU is having difficulties obtaining documents
consists of properties for which documents do not exist. This category of cases contains three
types of properties: (1) agricultural land in villages in which the local land commissions have
not yet issued tapis to eligible recipients, (2) old urban properties for which documents never
existed, and (3) properties that have been occupied without any legal authorization.
As mentioned in Section I, it is our understanding that there are approximately 600 villages
(distributed across 87 CZs) in which local authorities have not yet issued tapis. In many of
these villages, the delays have been due to political and sometimes legal issues that are not
within the PMU’s ability to control or resolve. Again, we believe the PMU should develop a
systematic way of identifying and charting these areas, and should use the Coordinative
Working Group, or the government directly, to bring pressure to bear on these localities to
issue tapis in accordance with their legal obligations. The PMU might also explore legislative
and institutional options for withdrawing the right and obligation for these dilatory local
entities to issue the tapis and develop a plan for bestowing the authority upon another (less
ineffectual) entity or level of government.
As the PMU has shifted its efforts from first registration of agricultural properties to urban
properties, it has increasingly encountered the problem of trying to verify ownership of old
houses and other urban properties for which ownership documents never existed. We
understand that the PMU has developed proposed legislation that would enable it to confirm
ownership through a process of collecting affidavits and interviewing neighbors. Adoption of
this legislation should be a priority, and should be brought to the attention of the Coordinative
Working Group and the government.
The final type of property for which the absence of documents has caused the PMU
difficulties consists of properties that have been illegally occupied. Illegal occupation is a
widespread problem throughout the country, especially in large urban areas like Tirana and
Durres and the corridor between them. Illegal occupation is so pervasive that it is probably
not possible to completely address the issue in the short run. Questions of illegal occupation
will ultimately require comprehensive consideration by local governments, planning
authorities, and national policy-makers. The best the PMU can hope for in the short run is
guidance on how the PMU should handle illegal occupation in the context of first registration.
We understand the PMU has prepared proposed legislation addressing this issue. Again, the
PMU should bring its proposed legislation to the attention of the Coordinative Working
Group and the government.
2. Refine First Registration Procedures
If the PMU is going to meet its goal of finishing first registration of 80 to 90 percent of the
properties in the country, it is going to have to take measures to accelerate first registration
and conduct it more efficiently. This is especially true for non-apartment urban properties,
which are presenting the PMU with a variety of new issues that had not previously been
encountered. First registration teams in some areas have just begun to wade through hipoteka
documents and prepare draft kartelas. The PMU has difficulty predicting whether this
process can be completed by December 2001 because PMU coordinators in the districts do
Evaluation of the Albania Land Market Project – BASIS IQC 22
not have a clear sense of the number of non-apartment properties in their CZs; nor are they
able to gauge how long it will take to review the hipoteka documents and prepare kartelas.
The PMU has recently advocated shortening the public display period from 90 to 45 days as a
way of expediting the first registration process. Though we are not opposed to that proposal,
it creates a risk that the public review will not be as effective as it should be. The PMU’s
proposal may not be politically popular because of the perception of unfairness if some areas
of the country have a 90-day comment period whereas other areas have only 45 days.
Another way to expedite first registration would be to accept a lower degree of certainty with
respect to ownership information prior to the public display period. In other words, first
registration teams would apply a lower standard of certainty when preparing draft kartelas
and ownership lists for public display, and would rely more heavily on the public review to
verify the ownership information. This approach would have to be accompanied by a
corresponding effort to increase the effectiveness of the public display period by intensifying
public notice and public education and making the public displays more accessible.
Another way of reducing the time that PMU first registration teams spend trying to resolve
cases of unclear ownership would be to refer those cases at an early stage to outside
mediators. The PMU could attempt to establish a more formal relationship with a group such
as the Foundation for Conflict Resolution & Reconciliation of Disputes that could make its
national network of mediators available to help resolve difficult cases. The PMU would have
to provide training to these mediators, but the investment of time in training should pay off in
terms of reduction of time PMU field teams have to spend trying to resolve unclear cases.
Whatever methods are adopted to accelerate first registration, the PMU should conduct a
concentrated follow-on training program over the next four months to ensure that all PMU
coordinators understand revised procedures and apply them consistently. PMU coordinators
have already received considerable training, but new training would focus on how to resolve
difficult situations such as old properties that lack documentation, illegal occupations, and
cases in which there are conflicting legal documents issued by different agencies such as the
National Privatization Agency and the local Restitution Commissions.
3. Post Project First Registration Plan
Over the next six months, the IPRS should closely monitor the PMU’s progress on first
registration because the IPRS will have to develop a plan for handling first registration after
December 2001 if the PMU fails to complete it. The IPRS itself does not have the capacity to
carry on with any significant first registration activities. It is probably inappropriate for the
IPRS to gear up to conduct large-scale first registration since, once first registration is
completed, the staff would no longer be needed. Therefore, the IPRS will either have to be
prepared to retain PMU field teams in certain areas that are not completed by the end of 2001
(which would mean having to find funding for those teams) or to have an orderly procedure
for discontinuing first registration activities.
Even if the PMU succeeds in finishing first registration for 80 to 90 percent of the properties
in the country, some properties will remain unfinished, including groups of properties for
which privatization documents have not been issued, and individual “problem” properties. It
Evaluation of the Albania Land Market Project – BASIS IQC 23
appears that the IPRS district offices have the institutional capacity to handle the first
registration of these properties once documentation is made available or problems are
resolved. All these properties should be within areas covered by registration index maps
delivered to the IPRS by the PMU. Production of new index maps will not be necessary.
Any boundary modifications or parcel mergers or subdivisions should be within the routine
competency of the IPRS staff. The IPRS staff should be able to enter onto the kartela the
court decision or other documentation indicating the resolution of the problem. There appears
to be an adequate supply of private sector surveyors and other experts to the extent they are
needed to address individual cases in the future.
It is important to note that the Law for the Transfer of Ownership of Agricultural Land,
Meadows, Pastures, and Forests prohibits the transfer of ownership of agricultural land until
first registration of the land has been completed. Unless first registration of land is
undertaken during the course of mass first registration, as conducted by the PMU, the owner
must pay for a costly “special” first registration procedure. The high cost of the procedure
essentially prevents special first registration of single parcels not registered during mass
registration efforts. Therefore, it is important that mass first registration of substantially all
agricultural properties be completed so as to permit an active agricultural land market.
C. Improve Public Service and Refine Registration Procedures
Most the district registration offices we visited were functioning relatively smoothly, with the
notable exception of the Tirana I office, which is discussed in more detail below. Offices
varied greatly in size and design, but were clean and user-friendly relative to other Albanian
government agencies. Notwithstanding that the offices are functioning well, there are some
improvements that should be considered, especially to make them more responsive to
servicing the public. Minor, inexpensive improvements to the offices would dramatically
improve their appearance and enhance their image with the public.
One such improvement would be to install additional information signs in the public areas of
the offices. During our site visits, the only information we saw posted in the public areas of
the offices were lists of the tariffs for different registration services printed on A4 paper and
glued to the wall, sometimes in areas that were hard to see. Lists of tariffs should be printed
on larger paper, and should be posted in more prominent locations in the offices. In addition,
every office should have signs indicating hours of operation, and the documents that are
necessary to process different types of transactions. As resources permit, posters containing
important sections of the Registration Law or other relevant legislation or schematic diagrams
that show the process through which a IPRS user must pass would be informative and would
help enhance the credibility of the registration office in the eyes of the public.
In addition to more signs, registration offices could be made more user-friendly by making
simple changes such as enlarging transactions windows (or removing barriers altogether), and
allowing fees to be paid at the same window at which applications are submitted, rather than
making people wait in separate queues for cashiers. We understand that changes of this kind
would make the registration offices unique among government offices in Albania, but the
Evaluation of the Albania Land Market Project – BASIS IQC 24
IPRS is a new institution that should be setting an example of being accessible and responsive
to citizens who use its services.
1. Tirana I Registration Office
Of all the registration offices we visited, the Tirana I office was most in need of
improvements to make it better able to serve the public. The office is located in a shoe
factory that is tucked behind other buildings off the main road, making it very hard to find.
There are one or two directional signs pointing the way to the office, but they are very small
and inconspicuous. More importantly, the office is on the fourth floor of the building, which
makes it very difficult to reach, especially for elderly citizens. During our visit, the weather
was relatively cool, but the trip to the fourth floor would be even more difficult during the
summer when temperatures often exceed 40° C.
Given that the Tirana I office is responsible for processing approximately 30 percent of the
transactions in the entire country, we believe it should be moved to a more accessible location
that would be easier to find. The office should be relocated as soon as possible before
additional funds are invested in renovating or expanding the office. The longer the move is
delayed, the more difficult it will be to find suitable space. We urge USAID, the World Bank
and the EU to assist the IPRS in its efforts to obtain a new location from the government.
Further, the World Bank should condition funding of its proposed Agricultural Services
Project, approximately $1 million of which is to be used to renovate the IPRS Tirana office,
on identification of a new location for the Tirana I office. The Tirana I office, as the busiest
and most important office in the country, should be the most accessible and efficient office in
the system.
In addition to being inaccessible, we found the Tirana I office to be unacceptable from the
standpoint of public service.5
 We visited the office three times during our stay in Tirana, and
each time there were between 50 and 100 people jammed into the reception area. Because
there was no organized queuing system, people were pushing each other and jockeying for
position to try to gain access to the two small transaction windows. The chaotic scene forces
visitors to the office to think that the only way to obtain service is by working around the
system, which creates a perception of corruption even if it is not present. There is no reason
that the flagship office of the new registration system cannot be better run. International
donors should condition future assistance on simple improvements like installation of a
numbering and queuing system, more transaction windows, more signs to inform the public,
and the other public service improvements described in the preceding section. All of these
improvements should be required along with a new location.
2. Plan for Continued Employee Training
Though we found most district registration offices to be functioning relatively smoothly, the
IPRS should develop a plan for continued training of employees. The training plan should be
part of the operational plan described above. We mention it separately here only to
 
5 Our findings are consistent with those of all the other international consultants who have visited the Tirana I office. See
Manthorpe, June 1998, February 1999, and October 1999; Schutan, November 1999; and Ford.
Evaluation of the Albania Land Market Project – BASIS IQC 25
emphasize that the IPRS needs to be diligent about ongoing training of its employees even
after they have received initial training. The central office needs to ensure that district
employees receive the benefit of experience gained from other offices, and that procedures are
applied uniformly throughout the system. Training is particularly important for former
hipoteka employees who have years of experience working in the old system, and may find it
more difficult to adjust to new procedures.
3. Develop Strategy for Digitizing and Updating of Maps
As reported in the discussion of Objective 6 in Section I, approximately 30 percent of the
index maps have been digitized, and digitization of the remaining index maps is proceeding
despite the loss of trained staff. PMU staff believes that the digitization of substantially all
index maps will be completed by December 2001. Despite the PMU’s optimistic projection, a
strategy should be developed to ensure that the most important maps (i.e., those covering the
areas in which markets are most active) are digitized on a priority basis in case there is
insufficient funding to complete digitization of all maps. Such a strategy may already exist,
but it appeared that maps were being digitized on a first come, first served basis rather than
being prioritized.
The digitization strategy should also include a procedure for capturing final corrections
resulting from public display and verification. According to PMU personnel, some maps
being digitized do not include these corrections, which means they are inaccurate as soon as
they are created.
PMU personnel were also troubled by the lack of the necessary expertise at the IPRS to
update digitized maps to reflect boundary changes or parcel divisions or mergers that occur
after first registration. It is unrealistic to expect each district office to have the equipment and
capabilities to revise digital maps. The capacity for updating digitized maps will either have
to be developed in the central office, or, if resources permit, on a regional basis. In any event,
the IPRS should develop a procedure whereby map revisions are communicated to the central
or a regional office and then regularly entered onto the digital versions If such a procedure is
not implemented, the digital maps will quickly become inaccurate and may have to be redone
completely at some future date.
4. Plan for Automating and Networking District Offices
IPRS district offices are currently operating a paper-based registration system. They register
transactions by making changes on the paper kartelas kept in the district offices. District
offices are not equipped to update the computer records created during first registration —
they lack computers, reliable power supplies, and trained staff. From a legal standpoint this is
not a problem because under the Registration Law the paper kartela constitutes the legally
binding record of title. The Law does not require any updating of the digital records. From a
practical standpoint, however, the failure to update the digital records means that the digital
information generated during first registration process will quickly become inaccurate. This
situation may be unavoidable in the short run given the absence of computers and reliable
electricity in most district offices.
Evaluation of the Albania Land Market Project – BASIS IQC 26
The World Bank’s proposed Agricultural Services Project includes funds to support future
automation of the registration system. The automation component of the project is a proposed
three-year program to be implemented in four phases:
Phase I: rehabilitation of the Tirana I registration office, procurement of basic
technology to automate the district IPRS offices, and training in the use of technology;
Phase II: design and development of a model for a fully automated IPRS;
Phase III: implementation and testing of a model for data sharing between two test
sites via a wide area network or the Internet; and
Phase IV: a rollout of the system in all districts, including procurement of networking
technology, implementation of the network, and training.
Given the World Bank’s proposed project, we advise against devoting a significant portion of
USAID project resources to automation of the system. Project resources should be
concentrated on achieving the priority objectives described above, particularly completion of
first registration. Rather than taking the lead role on automation, the PMU, IPRS, and LTC
staff should assist in developing the World Bank’s project to ensure that it is consistent with
the paper-based system, and takes into account practical considerations like unreliable power
supplies and a fragile communication infrastructure in and between district registration
offices.
D. Streamline Transaction Procedures
Real estate markets are clearly becoming more active throughout Albania, despite the fact that
existing legislation makes transactions unnecessarily complicated, time-consuming and
expensive. The existing legislation is based largely on historical procedures and should be re￾examined and streamlined to eliminate unnecessary requirements that do not provide any
benefit to the public.
As an example, existing procedures require a seller to provide the notary with a certificate of
ownership or certified copy of the kartela proving ownership before the notary will draw up a
contract of purchase and sale. The stated reason for this requirement is to allow the notary to
“verify” ownership before notarizing the agreement. This verification by the notary is
unnecessary because the registration office will also be verifying ownership before registering
the sale of the property to the buyer. Existing procedures also require the seller to obtain a
certified copy of the registration index map and, in the case of agricultural property, a
topographical sketch of the parcel, whether or not the transaction involves a change of
boundaries. Similarly, requiring these documents serves no particular purpose and simply
slows the process down and makes it more difficult and expensive.
The net result of all these requirements is that a person wishing to engage in a real estate
transaction must visit the registration office at least twice and pay two sets of fees in order to
engage in a transaction. A seller of agricultural land must also hire a surveyor. Though we
Evaluation of the Albania Land Market Project – BASIS IQC 27
did not conduct a study of all of the costs associated with a transaction, we were told
repeatedly that the time and expense involved are causing people to engage in informal
transactions rather than having them registered in the registration system. This appears to be
especially true for agricultural properties where land values do not justify such high
transaction costs. It appears that some of the requirements imposed by law could be
eliminated and the procedures could be streamlined so that processing transactions would be
easier and cheaper. The IPRS, PMU, and LTC staff should lobby for these kinds of changes
in order to remove barriers to real estate markets.
Evaluation of the Albania Land Market Project – BASIS IQC 28
SECTION IV. RECOMMENDATIONS FOR 2002 AND BEYOND
Two types of recommendations relating to Albanian land markets are discussed below.
Primary recommended activities are those deemed to be of higher importance and most
worthy of funding priority. Secondary recommended activities are of lower importance and
should be given lower funding priority. All of the activities reflect the authors’ opinions and
expertise, as well as the information gathered during our interviews and review of documents.
It should be noted that most of the recommended activities would not directly stimulate land
markets, but rather relate to state revenue generation or land market and land use
regularization now that land markets have begun to function in Albania.
A. Primary Activities
Primary Activity No. 1: Real Property Taxation
Objective: Assist in design and implementation of real property tax system
A number of interviewees (including USAID representatives, PMU staff, IPRS staff, the
director of the Soil Science Institute, two members of parliament, a former Minister of
Agriculture, and USAID technical assistance providers) stressed the need for and inevitability
of a real property tax. Legislative efforts to devolve a variety of rights and responsibilities
(including land use planning and zoning, and taxation) to local governments are underway.
The ability of local governments to obtain tax revenue will be critical as they are called upon
to provide a broader range of services. In addition, real property taxes are sometimes viewed
as a way of pushing properties to their best (or better) uses. Though real property taxes are
not likely to stimulate land markets, implementation of an ill conceived or unfairly
administered system is likely to inhibit them. For these reasons, a real property taxation
activity is recommended and could include the following elements:
1. Assess local revenue needs in light of actual and anticipated devolution of
governmental and administrative rights and responsibilities. Explore possible
limitations on tax rates and use of tax revenues. Examine administrative
approaches to land taxation (valuation, levying, collection, enforcement, and
others). Evaluate payer abilities to bear tax burdens.
2. Provide comparative international information and assist with legislative and
regulatory drafting. Support parliamentary lobbying and education of both
national and local government actors.
3. Aid in designing, planning, and implementing a structure separate from IPRS to
administer, enforce, and collect land tax.
4. Establish valuation standards for use in setting real property tax.
5. Assist in training of tax assessors.
Evaluation of the Albania Land Market Project – BASIS IQC 29
6. Design and conduct extensive public awareness and education campaigns to
communicate the details of the system and to convey the notion that real property
taxation is a method of funding local services and improvements that will increase
the livability of the tax payer’s local community and add order and predictability
to land use decisions and market transactions.
It should be noted that USAID has recently awarded a contract to the Urban Institute to
undertake certain activities in support of local governments. Any future project relating to
real property taxation should be carefully coordinated with the Urban Institute project to avoid
overlap.
Primary Activity No. 2: Real Property Law
Objective: Strengthen real property law and resolve problematic property issues
There remains a need for a variety of discrete tasks designed generally to support land tenure
security and land market regularization. The following tasks are suggested:
1. Support and help broker a legislative resolution to the land compensation dilemma.
Commitments to compensate ex-owners need to be resolved to eliminate tenure
and ownership insecurity. This issue will require financial, administrative,
institutional, and political creativity and will. Some broad but focused assistance
would be helpful in identifying and bridging the varied interests and identifying
possible solutions.
2. Clarify the jurisdiction over and responsibilities related to public land. Determine
the degree to which this jurisdiction will be devolved to local governments. Link
this effort with real property taxation tasks.
3. Mortgage lending is in its infancy in Albania, but will take on increasing
importance as a source of funding for purchase and sale of real estate, and for farm
and business inputs. Some banks are making mortgage loans for the purchase of
urban real property, and such loans are becoming more common. Banks do not yet
have experience with foreclosure or other methods of enforcing mortgages.
Several activities could be undertaken to stimulate and regularize mortgage
lending. First, the Civil Code provisions governing mortgage should be reviewed
to determine their sufficiency as regards priorities, notice of default, cure,
redemption, foreclosure, subsequent sale, and satisfaction. Second, interviews
should be conducted with representatives from the banking, real property
brokerage, notary, and agricultural, and residential and commercial land owner
populations. Third, suitable amendments should be proposed (if necessary) to the
Civil Code or a draft law on mortgage should be prepared. Finally, public and
professional education should be done to familiarize potential creditors, debtors
and other transactional participants with the rights, obligations and procedures
related to mortgage lending.
Evaluation of the Albania Land Market Project – BASIS IQC 30
4. Create a legal real property curriculum for the law school and for continuing legal
education. In countries with widespread private ownership of real property, real
property law is a significant part of overall legal education. Opportunities for
further legal specialization in real property law are also offered in other countries
and should be offered in Albania. Topics could include general property law,
contracts, taxation, bequest and inheritance, and land use and environmental law.
Course materials could include code and case law foundations, legal drafting,
transactional practicum, preparation of standard form instruments, comparative
law information, advocacy and others topics.
5. Judicial and mediator training in real property law. Connected to the foregoing
task, materials could be prepared to train judges and mediators to be better
prepared to hear land-related disputes. Such issues as joining necessary parties,
pleadings, evidence, damages and other remedies should be addressed.
6. Public education on real property law. Ongoing, basic public education in the
many areas of real property law that affect the lives and transactions of real
property owners (contracts, dispute resolution, credit, financing, land use,
environmental rights and responsibilities, and others) would be beneficial.
Primary Activity No. 3: Land Use Planning and Zoning
Objective: Improve the capacity of local government agencies for land use planning and
zoning
Construction and development are rampant in most urban and peri-urban areas, especially in
Tirana and Durres and the Tirana-Durres corridor. This construction, which is sometimes
illegal, is already threatening to overwhelm existing roads, utility systems and other necessary
infrastructure. It is also contributing to significant degradation of soil, water and other
resources, and a loss of parks and other valuable open space. Given the pace of development,
it has been almost impossible for local governments to prepare new land use plans, or enforce
existing regulations.
There is almost universal agreement that local government land use planning and zoning
capabilities, both regulatory and enforcement, are critically in need of support. The challenge
will be to regulate and control development appropriately without stifling future development
and investment in real estate. A planning and zoning activity could include the following
activities:
1. Determine the appropriate level of land use and zoning control, given the limited
resources of local governments, the need to avoid stifling the current willingness to
invest in development, the need to regularize illegal construction, and the need to
extend and expand public service infrastructure (sewer, water, power, and roads). In
short, care must be taken to adopt a level of planning and zoning that is reasonable and
can be implemented.
Evaluation of the Albania Land Market Project – BASIS IQC 31
2. Assist in development of legislation to enable and require local administrations to
prepare and enforce land use plans and zoning regulations. Link this effort with real
property taxation activities.
3. Develop model plans and zoning legislation and work with selected municipalities on
tailoring them for specific use. Initially implement the models only within those
locales that embrace the need and show the willingness to undertake them with vigor
and determination.
4. Ensure that IPRS index maps retain status as “first layer” for any geographic
information systems that might evolve from or be required for planning or zoning
efforts.
Because there is such universal agreement about the need for assistance in the area of land use
planning and zoning, it is likely that other donors will undertake programs in this area.
EU/PHARE is funding approximately €1 million to the Land Research Institute for
development of GIS capabilities. USAID’s project with the Urban Institute may touch on
land use planning and zoning issues. A team from France is also looking at funding activities
related to land use planning and zoning. Finally, the World Bank’s Urban Land Management
Project, which is focused mainly on bringing infrastructure into illegal communities in the
Tirana area, includes funding for technical assistance related to land use planning and zoning.
Any future USAID project will have to be coordinated carefully with these other programs.
B. Secondary Activities
Secondary Activity No. 1: IPRS Integrity and Sustainability
Objective: Protect investment in IPRS by monitoring and coordinating ongoing operation
Significant donor funding has been directed toward real property registration and the creation
of related legislation and institutions. While further funding simply for the sake of registering
any remaining “difficult” properties may not be justified, it may be advisable to fund first
registration of batches or blocks of properties that become available for first registration
because the obstacle preventing first registration has been removed. This would be the case,
for example, if a local government were to issue tapis for a large group of properties for
which tapis had not previously been issued. Limited additional funding of registration-related
activities may also be justified if it becomes clear that the IPRS is in need of specific support
and that the support will assist the IPRS in becoming self-sustaining. Any such support
should be narrowly defined and limited. Accordingly, the following activities might be
funded:
1. Assist in conducting first registration of any blocks of properties that become
unfrozen or for which documentation is created or obtained. The Chief Registrar
should serve as the contact through which the opportunity for such first
registration would become known.
Evaluation of the Albania Land Market Project – BASIS IQC 32
2. Periodically conduct performance audits of selected district registration offices and
activities to determine whether administrative, financial, transactional, staffing,
training, service, and accuracy standards and improvements are being sustained.
An outside consultant, having IPRS approval and support, could conduct several of
these audits in the course of several weeks.
3. Sustain the public education program related to IPRS activities, procedures, and
requirements. Link this task to the general public education task included under
Primary Activity No. 2, above.
4. Make specific recommendations and plans for rectifying flaws or making
improvements. Monitor implementation. IPRS implementation of corrective
measures could be tied to some moderate funding for continued first registration,
capital funding improvements, or equipment acquisition.
Secondary Activity No. 2: Strengthen Land-Related Environmental Laws, Regulations,
and Procedures
Objective: Strengthen legal framework for land-related environmental law
Many interviewees also stressed (and the many obvious signs of environmental degradation
exemplified) the need for the enforcement of existing environmental regulations and the
creation of additional regulations. Development of enforcement capacity is paramount.
Again, given the pace of development, the influx of development capital, and the degree of
individual initiative, the challenge will be one of appropriately regulating environmental
degradation while still nurturing the willingness to invest and develop real property.
Externalities can be internalized only with care and foresight as to the effects. An
environmental project could include the following activities:
1. Review and amend as appropriate environmental regulations that address past and
current land contamination, pollution, or degradation. Pay particular attention to
developing enforcement capacity. Link this activity to tasks related to devolution
to local governments. Retain some national or regional oversight and enforcement
capability.
2. Assist in the development of legislation to enable and require regional and local
administrations to monitor (at a basic level) and enforce environmental
regulations.
3. Develop model monitoring and enforcement plans and work with selected regional
administrations on tailoring them for specific locales. Connect local embrace and
implementation to obtaining the right to tax real property, to the benefits of
owning and regulating public property, or to some other tangible reward or right.
Evaluation of the Albania Land Market Project – BASIS IQC 33
SECTION V. CONCLUSIONS
This section summarizes the recommendations for two periods: (1) November 2000 through
December 2001 (close of the Albania Land Market Project), and (2) 2002 and beyond. Refer
to Section III for a fuller description of the recommendations for the first period; refer to
Section IV for a fuller description of the recommendations for the second period.
A. Summary of Recommendations for November 2000 through December
2001
The highest priority objectives for this period are:
1. Strengthening the IPRS.
2. Finish first registration.
3. Improve public service and refining registration procedures.
4. Streamline transaction procedures.
In support of all of these objectives, two underlying but critical actions need to occur:
· reconvene a functional, representative, and responsive Coordinative Working
Group; and
· prompt the international donor agencies (USAID, World Bank, and
EU/PHARE) selectively to play a more active role in bringing key issues to the
attention of Government of Albania.
1. Strengthen the IPRS
IPRS and technical assistance team should concentrate on the following issues over the
remaining life of the CA:
· elevate the position of the IPRS in government;
· improve the IPRS’s accounting systems;
· prepare and submit a financial plan to government proposing a timeline and
specific steps to be taken for the IPRS to become self-financing and self￾managing;
· prepare an operational plan so as to improve and formalize administration of
the IPRS central office, and management of the district offices; and
· integrate skills from PMU to the fullest extent possible.
Evaluation of the Albania Land Market Project – BASIS IQC 34
2. Finish First Registration
The PMU’s goal over the next fourteen months is to complete first registration for
approximately 80 to 90 percent of the properties in the country, leaving unfinished only
properties in remote regions and properties for which privatization documents have not been
issued. For IPRS to meet its first registration goals and to plan for the IPRS to have the
ability to complete any uncompleted first registration, the PMU and LTC technical assistance
team should focus on the following three areas over the next fourteen months:
· ownership documents — obtaining ownership documents from other agencies,
helping other agencies issue ownership documents in cases when they have not
been issued, and developing procedures for addressing cases in which
ownership do not exist;
· refine first registration procedures — streamlining first registration procedures,
especially for non-apartment urban properties; and
· post-project first registration plan — developing a plan for the IPRS to
continue first registration once the PMU completes its activities.
3. Improve Public Service and Refine Operational Procedures
To improve the levels of public service and refine several important operational procedures,
the following actions should be undertaken:
· make minor, inexpensive improvements (install signage, enlarge transaction
windows, remove barriers, implement queuing systems) to the district offices
so as to dramatically improve their appearance, enhance their image with the
public, and improve their functionality;
· move the Tirana I office as soon as possible to a location that would be easier
to find and more accessible, and improve the office’s public service capacities;
· plan for continued employee training;
· develop a strategy for ongoing digitizing and updating of maps; and
· plan for automating and networking the district offices.
4. Streamline Transaction Procedures
Registration procedures should be re-examined and streamlined to eliminate unnecessary
requirements that do not provide any benefit to the public. Examples include (but are not
limited to):
Evaluation of the Albania Land Market Project – BASIS IQC 35
· eliminate the requirement that the seller provide the notary with a certificate of
ownership or certified copy of the kartela proving ownership before the notary
will draw up a contract of purchase and sale;
· eliminate the requirement that the seller obtain a certified copy of the
registration index map and, in the case of agricultural property, a topographical
sketch of the parcel, whether or not the transaction involves a change of
boundaries; and
· eliminate any other unnecessary procedural requirements and fees.
B. Summary of Recommendations for 2002 and Beyond
Two types of recommendations relating to Albanian land markets were discussed in Section
IV. Primary recommended activities are those deemed to be of higher importance and most
worthy of funding priority. Secondary recommended activities are of lower importance and
should be given lower funding priority.
Primary Activity No. 1: Real Property Taxation
A real property taxation activity is recommended and could include the following elements:
· Assess local revenue needs in light of actual and anticipated devolution of
governmental and administrative rights and responsibilities. Explore possible
limitations on tax rates and use of tax revenues. Examine administrative
approaches to land taxation. Evaluate payer abilities to bear tax burdens.
· Provide comparative international information and assist with legislative and
regulatory drafting. Support parliamentary lobbying and education of both
national and local government actors.
· Aid in designing, planning, and implementing a structure separate from IPRS to
administer, enforce, and collect land tax.
· Establish valuation standards for use in setting real property tax.
· Assist in training of tax assessors.
· Design and conduct extensive public awareness and education campaigns to
communicate the details of the system and to convey the notion that real property
taxation is a method of funding local services and improvements that will increase
the livability of the tax payer’s local community and add order and predictability
to land use decisions and market transactions.
Evaluation of the Albania Land Market Project – BASIS IQC 36
Primary Activity No. 2: Real Property Law
There remains a need for a variety of discrete tasks designed generally to support land tenure
security and land market regularization. The following tasks are suggested:
· Support and help broker a legislative resolution to the land compensation dilemma.
· Clarify the jurisdiction over and responsibilities related to public land. Determine
the degree to which this jurisdiction will be devolved to local governments. Link
this effort with real property taxation tasks.
· Undertake an appropriate mortgage lending activity.
· Create a legal real property curriculum for the law school and for continuing legal
education.
· Undertake judicial and mediator training in real property law.
· Continue public education on real property law.
Primary Activity No. 3: Land Use Planning and Zoning
Undertake a planning and zoning activity that includes the following components:
· Determine the appropriate level of land use and zoning control, given the limited
resources of local governments, the need to avoid stifling the current willingness to
invest in development, the need to regularize illegal construction, and the need to
extend and expand public service infrastructure.
· Assist in development of legislation to enable and require local administrations to
prepare and enforce land use plans and zoning regulations. Link this effort with
real property taxation activities.
· Develop model plans and zoning legislation and work with selected municipalities
on tailoring them for specific use. Initially implement the models only within
those locales that embrace the need and show the willingness to undertake with
vigor and determination.
· Ensure that IPRS index maps retain status as “first layer” for any geographic
information systems that might evolve from or be required for planning or zoning
efforts.
Secondary Activity No. 1: IPRS Integrity and Sustainability
The following activities might be funded:
Evaluation of the Albania Land Market Project – BASIS IQC 37
· Assist in conducting first registration of any blocks of properties that become
unfrozen or for which documentation is created or obtained.
· Periodically conduct performance audits of selected district registration offices and
activities to determine whether administrative, financial, transactional, staffing,
training, service, and accuracy standards and improvements are being sustained.
· Sustain the public education program related to IPRS activities, procedures, and
requirements.
· Make specific recommendations and plans for rectifying flaws or making
improvements. Monitor implementation.
Secondary Activity No. 2: Strengthen Land-Related Environmental Laws, Regulations,
and Procedures
An environmental project could include the following activities:
· Review and amend as appropriate environmental regulations that address past and
current land contamination, pollution, or degradation. Pay particular attention to
developing enforcement capacity. Link this activity to tasks related to devolution
to local governments. Retain some national or regional oversight and enforcement
capability.
· Assist in development of legislation to enable and require regional and local
administrations to monitor (at a basic level) and enforce environmental
regulations.
· Develop model monitoring and enforcement plans and work with selected regional
administrations on tailoring them for specific locales. Connect local embrace and
implementation to obtaining the right to tax real property, to the benefits of
owning and regulating public property, or to some other tangible reward or right.
Evaluation of the Albania Land Market Project – BASIS IQC A-1
APPENDIX 1
LIST OF INTERVIEWEES
Listed below are most6
 of the people interviewed during the authors’ evaluation in Albania.
The list is ordered in the order of the interviews. The names of the District Registrars, District
Coordinators, and other IPRS staff interviewed during visits to registration offices in Tirana,
Durres, Lushnje, Lac, Lezhe, and Shkoder are not listed below.
Mark A. Marquardt
Resident Advisor
Project Management Unit
Land Tenure Center
Instituti I Studimit te Tokave
Rruga Durresit
Laprake, Tirane, Albania
Phone: 355 42 23296
Malcolm Childress
Land Specialist
Land Tenure Center
1357 University Avenue
Madison, WI 53715
Phone: (608) 262-3657
Fax: (608) 262-2141
Kathrine Kelm
Resident Legal Advisor
Project Management Unit
Land Tenure Center
Instituti I Studimit te Tokave
Rruga Durresit
Laprake, Tirane, Albania
Phone: 355 42 23296
Robert Posner
Senior Policy Advisor
U.S. Agency for International Development
U.S. Embassy
Rr. Elbasanit, 103
Tirana, Albania
Phone: 355 42 47285
 
6
 Missing are the interviewees from the Restitution Commission, Urban Institute Urban Land Project, and Legal
Department of IPRS Central Registration Office. Also missing are the ex-General Manager of the PMU and the
ex-Head Statistician of the PMU.
Evaluation of the Albania Land Market Project – BASIS IQC A-2
Dr. Kristaq Jorgji
Project Manager
U.S. Agency for International Development
U.S. Embassy
Rr. Elbasanit, 103
Tirana, Albania
Phone: 355 42 47285
Dr. Maksi Raco, President
Instituti I Modelimive ne Biznes
Bulevardi Zhan D’Ark
Prane Drejtorise se Policise
Kulla kafe (11 kateshe) Nr.3, Ap. 3.3
Tirana, Albania
Phone: 355 42 35953
Ndoc Vata, General Manager
Project Management Unit
Immovable Property Registration System
Instituti I Studimit te Tokave
Rruga Durresit
Laprake, Tirane, Albania
Phone: 355 42 23296
Vladimir Sala, Manager
Economic-Administrative Department
Project Management Unit
Immovable Property Registration System
Instituti I Studimit te Tokave
Rruga Durresit
Laprake, Tirane, Albania
Phone: 355 42 23296
Fatmir Kopella, Manager
Geomatic Department
Project Management Unit
Immovable Property Registration System
Instituti I Studimit te Tokave
Rruga Durresit
Laprake, Tirane, Albania
Phone: 355 42 23296
Evaluation of the Albania Land Market Project – BASIS IQC A￾3
Myzafere Kallabaku, Manager
Registration and Law Department
Project Management Unit
Immovable Property Registration System
Instituti I Studimit te Tokave
Rruga Durresit
Laprake, Tirane, Albania
Phone: 355 42 23296
Kristaq Qirko, Manager
Cartography Department
Project Management Unit
Immovable Property Registration System
Instituti I Studimit te Tokave
Rruga Durresit
Laprake, Tirane, Albania
Phone: 355 42 23296
Mirvjena Laha, Sector Specialist
Registration Sector
Project Management Unit
Immovable Property Registration System
Instituti I Studimit te Tokave
Rruga Durresit
Laprake, Tirane, Albania
Phone: 355 42 23296
Llazar Korra, Agricultural Projects Coordinator
EU/Phare
Sotir Dhamo, Director
Project Coordination Unit
Urban Land Management Project
Ministry of Public Works and Transport
Skenderbej Square
Tirana, Albania
Phone: 355 42 57025
Agim Shehu, Director
Instituti Kombetar I Urbanistikes
National Planning Institute
Rr. Mahamet Gjollesha
Nr. 25
Tirana, Albania
Phone: 355 42 23361
Evaluation of the Albania Land Market Project – BASIS IQC A-4
Besnik Aliaj, Director
Center for Habitat Development
Co-Plan
Str. Dervish Hima, Ap. 4
KP 2995
Tirana, Albania
Phone: 355 42 57808
Shpresa Kurti, Director
National Notaries Association
Tirana, Albania
Dr. Albert Dubali, Chief Registrar
Immovable Property Registration System
Central Registration Office
Rr. Jordan Misja
Ish godina Elektroteknike
Tirana, Albania
Phone: 355 42 34419
J. David Stanfield
Senior Scientist
Land Tenure Center
1357 University Avenue
Madison, WI 53715
Phone: (608) 262-5461
Fax: (608 262-2141
Dervishi Artan, President
Real Estate Immobiliari
Director, Real Estate Brokers Association
Rr. e Kavajes P. 3
Shk. 7, Ap. 66 (Prapa Bankes)
Tirana, Albania
Phone: 355 42 33118
Rasim Gjoka, Executive Director
Foundation for Conflict Resolution and Reconciliation of Disputes
Str. Him Kolli, No. 23/1
Tirana, Albania
Phone: 355 42 32739
Evaluation of the Albania Land Market Project – BASIS IQC A-5
Mariana Semini-Tutulani
Associate Prof. Dr.
Republic of Albania
Magistrates School
Rruga e Elbasanit (Prane)
Fakulteti Gjeologji-Miniera
Tirana, Albania
Phone: 355 42 63914
Prof. Dr. Sherif Lushaj, Director
Soil Science Institute
Rruga Durresit
Laprake, Tirane, Albania
Phone: 355 42 28367
Artan Kadriaj, Manager Credit and Marketing
Mirala Zoto, Mortgage Loan Officer
American Bank of Albania
Rr. Ismail Qemali, No. 27
Tirana, Albania
Phone: 355 42 48753
Howard Sumka, Mission Director
U.S. Agency for International Development
U.S. Embassy
Rr. Elbasanit, 103
Tirana, Albania
Phone: 355 42 47285
Fax: 355 42 32222
Arben Molla, Director
Agricultural Programme Office
Ministry of Agriculture and Food
Skenderberg Square
Tirana, Albania
Phone: 355 42 28355
Dr. Zyhdi Pepa, Assembly Member
Republic of Albania
Member Agriculture Parliamentary Commission
Prime Minister’s Advisor
Kuvendi
Tirana, Albania
Phone: 355 42 34607
Evaluation of the Albania Land Market Project – BASIS IQC A-6
Prof. Dr. Haxhi Aliko, Minister of Parliament
Chair, Committee on Agriculture and Food
Bulevardi Deshmoret e.Kombit, No. 4
Tirana, Albania
Phone: 355 42 34607
Emmanuel Mondon, Project Coordinator
IGN France International
39 ter, rue Gay-Lussac
75005 Paris, France
Phone: 331 42 345656
Stephane Gil, LIS Expert
IGN France International
39 ter, rue Gay-Lussac
75005 Paris, France
Phone: 331 42 345656
James Brokheim, Chief-of-Party
Albanian Watershed Assessment Project
Rr. A.Z. Cajupi, Nr. 7, Ap. 2B
Tirana, Albania
Phone: 355 42 56960
Ronald Ivey, Director Management Consulting
PricewaterhouseCoopers LLP
1616 North Fort Myer Drive
Arlington, VA 22209-3195
(703) 741 1000
V. Roy Southworth, Principal Agricultural Economist
The World Bank
1818 H Street N.W.
Washington, D.C. 20433
(202) 473 9710