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REPUBLIC OF ALBANIA

Ministry of Agriculture, Food and Consumer Protection

ALBANIAN NATIONAL LAND CONSOLIDATION STRATEGY

Developed in the framework of FAO technical assistance project “Support to the Preparation of

a National Land Consolidation Strategy and a Land Consolidation Pilot Project TCP/ALB/3301”

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Tirana, January 2013

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Table of contents

ALBANIAN NATIONAL LAND CONSOLIDATION STRATEGY .................................................. 1

INTRODUCTION .................................................................................................................................. 4

2. ANALYSIS OF EXISTING SITUATION......................................................................................... 5

2.1. Agriculture and economic factors ............................................................................................... 5

2.2. Structure of private agricultural land and current situation of fragmentation ............................. 5

2.3. Social and demographic factors ................................................................................................... 6

2.4. Land market development ........................................................................................................... 7

2.5. Environmental factors ................................................................................................................. 7

2.6. Land consolidation linkage with rural development and other policies ...................................... 8

2.6.1. Sector Strategy of Agriculture and Food (SSAF), 2007 – 2013 and draft for 2014-20 .... 8

2.6.2. Cross cutting strategy for Rural Development 2007 – 2013 ............................................ 8

2.6.3 Draft Programme for Rural Development 2011-2013 ....................................................... 8

2.7. Legal framework of the current situation .................................................................................... 8

2.8. Restitution and Compensation claims .......................................................................................... 9

2.9. International experience and evolution of LC activities in Albania .......................................... 10

2.9.1. International experience with land consolidation ........................................................... 10

2.9.2. Evolution of land consolidation activities in Albania..................................................... 11

3. STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) ANALYSIS ...... 13

4. OVERALL AND SPECIFIC OBJECTIVES ................................................................................... 15

5. LAND CONSOLIDATION PROGRAM DESIGN ......................................................................... 16

5.1. Principles of land consolidation ................................................................................................ 16

5.2. Procedures for selecting villages for land consolidation projects ............................................. 16

5.2.1. Call for applications for land consolidation ................................................................... 16

5.2.2. Selection of the villages (against published criteria) ...................................................... 16

5.2.3. Preparation of budget for the analysis stage of each selected village ............................. 17

5.2.4. Selection of implementing entity for the analyses stage of each selected village .......... 17

5.2.5. Agreement with communes/municipalities of each selected village .............................. 17

5.3. Land consolidation procedures in individual projects ............................................................... 17

5.3.1 Analysis stage (Stage 1) .................................................................................................. 17

Community workshop to launch project .................................................................................. 17

Election of stakeholder committee ........................................................................................... 18

Cadastre review and map preparation ...................................................................................... 18

Landowners and farmers interviews ......................................................................................... 18

Budget preparation ................................................................................................................... 18

Community development ......................................................................................................... 18

Decision on continuation .......................................................................................................... 18

5.3.2. Re-allotment stage (Stage 2) .................................................................................................. 19

Negotiations .............................................................................................................................. 19

Valuation .................................................................................................................................. 19

Preparation of re-allotment plan ............................................................................................... 19

Adoption of re-allotment plan” ................................................................................................ 19

5.3.3 Surveying and Registration (Stage 3) ...................................................................................... 20

Surveying .................................................................................................................................. 20

Registration .............................................................................................................................. 20

5.3.4. Timeframes ..................................................................................................................... 20

5.4. Institutional roles and responsibilities ....................................................................................... 21

5.5. Preparation of a national land consolidation program ............................................................... 23

5.5.1. Establishment of the institutional/organizational framework of LC and determination of

procedures ....................................................................................................................................... 23

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5.5.2. Establishment of the legal framework ............................................................................ 23

5.5.3. Capacity development .................................................................................................... 24

5.5.4. Public awareness raising ................................................................................................. 25

5.6. Land consolidation as a tool for other purposes ........................................................................ 25

5.7. Establishment of a Land Bank and its use in LC activities. ...................................................... 25

5.8. Implementation phases and funding .......................................................................................... 26

6. STRATEGY OUTCOMES AND EVALUATION CRITERIA ...................................................... 27

7. IMPLEMENTATION PLAN ........................................................................................................... 28

Annex 1: ACTION PLAN on the implementation of the National Strategy for LC (2014 – 2028) .... 29

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INTRODUCTION

1. The Land Reform of 1991, which brought a radical change in land tenure and property rights on

agriculture land (from state to private ownership), is one of the biggest and most important reforms

implemented in Albania so far. Through the application of the Law No. 7501 “on Land”, the

land was divided on an equal basis among cooperative members and state farm workers according

to soil quality and productivity and the number of family members registered in the civil registry in

August, 1991.

2. The land reform had positive impacts as it transferred a critically important asset to rural families.

However, the resulting high level of fragmentation and small size of farms lead to the decrease of

the agricultural production, use of inadequate farming technologies, soil degradation and other

negative impacts over the agricultural sector with major negative effects on the rural population.

Poor rural infrastructure and low incomes in rural areas is a major cause of migration of population

toward urban areas and abroad.

3. This National Strategy for Land Consolidation aims to address the above mentioned issues. It is

based on discussions with interested stakeholders and on the implementation of a land consolidation

pilot project in three villages of Terbuf Commune in Lushnje, supported by the FAO project

TCP/ALB/3301.

4. The need for developing the Strategy is conditioned by the following factors:

a. The establishment of economically viable and competitive farms (family farms) that can meet

the modern market economy requirements;

b. The improvement of the organization of the agricultural sector, and the capacity for efficient

self-management in the agricultural private sector;

c. The development of the agricultural sector due to adequate farm structure and improved rural

infrastructure, and the development of the family-type farms with an orientation toward the

market;

d. The possibility to adopt and implement economic viable and environment-friendly agricultural

practices.

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2. ANALYSIS OF EXISTING SITUATION

2.1. Agriculture and economic factors

5. Over the last 10 years the Albanian economy has benefited from macroeconomic stability and

economic reforms that have provided development opportunities for the private sector and

promoted investments. Albania is a low middle-income country, with per capita income at EUR

3100 in 2009. Albania averaged 5.5% economic growth between 2006 and 2009, making it one of

the fastest growing economies in Europe. The international crisis reduced economic growth to 3.3%

in 2010.

6. In 2010 the agricultural sector (agriculture, hunting, forestry and fishing) accounted for 17.3% of

total GDP. The agricultural sector GVA (gross value added) amounted to EUR 1533, 8 million at

2010 rates.

7. The main source of growth during transition period in Albanian agriculture has been a total of

factors (land, labor and capital) productivity without any significant change in the amount of

factors. Macroeconomic stability and economic liberalization led to reallocation of resources from

less profitable (cereals) to more profitable activities (horticulture and livestock), which allowed

agriculture to generate growth with low rates of investment.

2.2. Structure of private agricultural land and current situation of fragmentation

8. The distribution of agricultural land during the land reform in the early 1990s created a structure

of small and fragmented landholdings. According to the Statistical Yearbook of MAFCP1 (2011),

in Albania there were about 388,697 farm families, the average area of family farms being of 1.26

ha of owned land divided in 4.7 parcels and the average area of parcel being of 0.27 ha.

9. The total area of the agriculture land of 695,000 ha comprises 24% of the entire territory of the

country. Out of the total agriculture area, 561,000 ha or 81% is under private ownership and

134,000 ha or 19% is under public (state) ownership.

10. Cultivated land as of January 1st 2011 was as follows: 409,000 ha of arable crops, 18000 ha of fruit

trees, 46 000 ha of olives, 800 ha of citrus and 10700 ha of pergolas.

11. Currently, there are 134,000 ha of agriculture land under state ownership, of which 108,500 ha is

the undivided agriculture land of former agriculture cooperatives – object of the Law No. 7501,

adopted in 1991 – land that has been refused by rural families due to relatively poor natural

fertility, far distance from dwellings, lack of infrastructure (roads, irrigation), slope, and generally

location in the high mountain areas. Part of the state owned land are also about 25,000 ha of

1 Ministry of Agriculture, Food and Consumer Protection, Statistical yearbook, 2011

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agriculture land of former state farms, which went undivided due to exceeds of per capita norms,

and to serve as land under the disposal of government institutions to carry out their functional

duties.

2.3. Social and demographic factors

12. In the beginning of 2011 the total population of Albania was 2,831,741 inhabitants with a

population density of 98.5 inhabitants per km2. The total population is composed of 1,421,810

males (50.2%) and 1,409,931 females (49.8%). Approximately 53.7% of the population lives in

urban areas and 46.3% in rural areas. Since 2001, the population continues to decrease due to large

scale emigration and fertility decline2. Of the population 1.3 million living in rural area, almost

50% are women.3

13. According to INSTAT data of the last Census (2011), the total labour force (age 15 to 64) was

made of 1,070,000, individuals, of which men were 560,500 and women 509,500. The employed

labour force was 928,052, of which men were 491,000 and women 437,052, and the unemployed

labour force was made of 142,000 people, of which 69,000 men and 73,000 women. Of the total

number of the employed labour force 928,052 the public sector occupies 165,100, the private non

agriculture sector 256,288 and private agriculture sector 506,664. The number of labour force

employed in agriculture sector has slightly decreased compared to 10 years ago (2002) where this

figure was 526,337, this mainly due to migration of rural population.

14. According to the Labour Force Survey carried out by INSTAT in 2007 and 2009, more women

than men are employed in the private agriculture sector (respectively 37% of males and 60% of

females in 2007 and 33% of males and 56% of females in 2009). This means that the agriculture

sector is very important for the activation of the female labour force4.

15. In 2008 labor productivity in the Albanian agricultural sector was EUR 2,670 per employee which

is rather low. Labor productivity in agriculture represented only 32% of labor productivity in the

rest of Albanian economy. However, during the period 2001-2008 the labor productivity has

increased by about 40% in agriculture sector.

16. Women participation in decision-making structures, their economic empowerment and access to

resources depends to a large extend on their level of education, location (rural vs. urban areas) and

their economic activity and employment status. The work force questionnaire (INSTAT 2009)

shows that women are disadvantaged in their participation in the job market, only 52% of women

aged 15-64 are part of employed population in Albania, while this indicator for men is 73%.

2 INSTAT, 2012, Census of Population and Housing, Preliminary data analysis.

3 MAFCP, 2012, Statistical yearbook 2011, Tirana, Albania 4 INSTAT, 2010, Labor forces survey 2009, Tirana, Albania

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2.4. Land market development

17. A formal market of rural land (sale and rental) is not yet fully developed in Albania. As of 2007,

less than 2% of the rural households had sold land on the formal market since the beginning of

the privatization, and only 3.6% had rented their land. However, there is evidence that the

informal market in rural land is more active. It is estimated that 6% of the households’ farms have

rented out their land and the average farm size is slowly increasing showing that the landowners

are transacting land among themselves.

18. The agricultural land market is still not fully developed as it should be in a market economy.

During the year 2010, about 3600 land transactions have been recorded for a surface of 830 ha

agricultural land with a total registered value of 37.8 million EURO (4.4 Euro/m2). However, it is

reported that many of these transactions are not for the purpose of agricultural development but

for later conversion of land from agriculture to residential use and other uses.

19. Factors constraining the development of the formal rural land market include: the perception of

land as a social safety net; unresolved and conflicting claims to land; time consuming and costly

land transaction process; mistakes in relation to land registration during land reform (names, land

documentation) and weak access to credit. Because land titles are perceived as insecure, banks

often refuse to accept titles as collateral for land purchases.

2.5. Environmental factors

20. As a result of intensive use (and often without right criteria) of natural ecosystems, the

environment in Albania is degraded at large extend. According to the National Environmental

Strategy (2006) and the Environment Sector and Cross Cutting Strategy (2007) the key

environmental problems are water pollution, air pollution, land degradation/soil erosion, and

biodiversity losses (not in order of priority). The protected areas have extended from 9 to 13 %

between 2007 and 2010 and are planned to increase to 17% by the end of 2013.

21. Although rainfall is abundant in Albania, with an annual mean precipitation of approximately

1500 mm per year, only 20% of this precipitation occurs during the crucial growing period

between April and September. As a result of this precipitation trend, crop deficit during June,

July and August ranges from 400-500mm, making irrigation a necessity throughout all of

Albania.

22. Soil erosion, mainly caused by unsustainable forestry, agricultural and pastoral practices, is a

major concern. Erosion affects 24 % of the national territory (on average 37 t ha-1

yr-1

) soil loss,

well above the “sustainablele” 10 t ha-1

yr-1

levels, however more than 60 % of the remaining land

is also highly vulnerable to water erosion which is further accelerated by the illegal forest cutting

that after 1990 destroyed about 300,000 ha of forests since 1990.

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2.6. Land consolidation linkage with rural development and other policies

23. The GoA has its priority to become an EU candidate and later member state and is working to

adjust the structures and the policy to the integration into EU. In the near future the land

consolidation activities can be integrated and financed by the Rural Development programme

(RDP) (investment measures under IPA-RD), which should be extended considering the

objectives of the new rural Development Strategy for the programming period 2014-20 of the

MAFCP as a basis of beginning of the next programming period.

2.6.1. Sector Strategy of Agriculture and Food (SSAF), 2007 – 2013 and draft for 2014-20

24. THE SECTOR STRATEGY OF AGRICULTURE AND FOOD OF ALBANIA constitutes a

national strategy plan for the country’s rural development. The GoA plans to combat

inefficiencies arising from small plots by supporting the development of farmer associations,

improving irrigation infrastructure and strengthening water resource governing bodies, supporting

modernization of equipment and distribution of high-quality inputs and investing in the

development of agricultural knowledge and skills. MAFCP have in 2012 started elaboration of the

new rural Development Strategy for the period 2014-2020.

2.6.2. Cross cutting strategy for Rural Development 2007 – 2013

25. The Cross cutting strategy for Rural Development 2007-2013, based on the law on “Agriculture

and Rural Development” lays the basis for the establishment of the institutions for the

implementation of the agriculture policy measures, including rural development and sets the main

priorities. Among others, the strategy states that farm consolidation will be promoted by a number

of the activities, including measures to encourage the more dynamic farmers to use land that is

currently under-utilized. Land consolidation has been an eligible measure in the EU Council

Regulation on rural Development for 2007-13 and it is expected also to be the case for the next

programming period.

2.6.3 Draft Programme for Rural Development 2011-2013

26. The Draft Programme for Rural Development (RDP) was prepared during 2010-2011 and had

considered the budgetary period IPA till the end of 2013. The overall objective of the current

Albanian RDP is to support the equitable development and to improve the quality of life in rural

regions. The investments planned under the “IPARD-“like” grant schemes will cover the whole

territory of Albania and are focused to: support Investments in Agricultural holdings with a

minimum aid intensity of 50% grants of the investment with public funds and to support to

Investments in Agro-Processing with a minimum aid intensity of 50% grants of the investment.

2.7. Legal framework of the current situation

27. Land consolidation is not covered in the existing legal framework. No legal framework on

systematic land consolidation has been approved and the current legislation generally addresses

issues of agricultural land management, land protection and administration and does not directly

cover any of the main issues linked with the agricultural land consolidation. There is no provision

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in the current legislation to include the consolidation of agricultural land even as a theoretical

concept and the overall assessment is that the existing legal framework does not favor land

consolidation.

28. Some of the main laws such as the Law No.7501 “On Land” (1991) determine the subdivision

and transfer of collective farm and cooperative land to the member of former families on equal

basis. The Law No.8752 “On creation and functioning of land administration and protection

units” (2003) determine the structures of local government units for land protection and

management. The Law No.9244 “On protection of agricultural land” (2004) establishes the

principles, rules and institutions for protection and sustainable improvement, good practices of

agricultural management, etc. However, these laws do not contain any special provisions

addressing the issue of agricultural land consolidation.

29. It is clear that under the above conditions it is necessary to have a rapid and direct intervention in

the existing legislation to address the issues related to land consolidation. This intervention

should not only consist of amendments to the existing legislation but also be comprehensive and

complete, in the form of a special law on land consolidation.

30. The experience during the pilot project implementation, as further displayed in section 2.9.2, has

demonstrated a number of difficulties and obstacles, among which those related to the regime of

property rights, particularly in terms of issues linked with the implementation of property

transactions, procedural dynamics of the registration of these transactions at IPRO, which are

crucial both for their importance in relation to the other issues exposed and the level of difficulty

they create until their final solution.

31. Serious obstacles are related to the stipulations in the current legislation on excessively

cumbersome procedures for the implementation and registration of transactions, while the trend

of increasing transactions costs continues (recently, on 10/20/2011 the Council of Ministers

decided to significantly increase the service fees for the transactions effected at IPRO).

32. Specifically, some of the most frequently encountered obstacles in the proceedings for

registration of transactions are related to the fulfillment of certain preconditions, such as the

obligation to submit the authorization from the court for the representation of juvenile members

of the agricultural family once the transaction is formalized. Another obstacle is the need for prior

correction of different inaccuracies between the technical information contained in the legal

documentation of ownership and factual situation on site (total surface, parcel’s configuration,

boundaries, etc).

2.8. Restitution and Compensation claims

33. The issue of restitution and compensation for pre-1945 landowners continue to be unresolved

in Albania preventing many citizens from feeling that their land and property ownership is

fully secure.

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34. Law no. 7698, dated April 15, 1993, on Restitution and Compensation to Former Property

Owners, recognizes the right of ownership to all former owners or their heirs for property

which had been nationalized, expropriated, or confiscated according to legal acts, sub-legal

acts, and court decisions issued after November 29, 1944, or taken illegally by the state by

any other method. It also determines methods and measures for their restitution and

compensation

35. During the period from 1993 till the end of 2011 over 62,000 claims for restitution and

compensation have been analyzed. At the national level, as of today, decisions have been

made on more than 90% of the cases, comprising a total of 55,000 decisions on restitution of

the ownership right, and compensation rights for about 43,000 expropriated subjects. In total

90,459 ha of land has been restituted to the expropriated entities, of which 4,359 ha of

building area, 4,138 ha of agriculture land, 79,879 ha forest area, and 2,083 ha of combined

land5.

36. The administrative control process of the submitted requests is toward finalization, as the

deadline for request acceptance was 31 December 2008. During 2011, the Agency of Property

Restitution (ALRC) has made a total of 1,506 decisions, of which 1,160 decisions belong to the

Ownership Restitution Directorate and 346 decisions belong to the Ownership Compensation

Directorate. Currently, ALRC administers 7,300 requests on recognition/restitution and

compensation of ownership.

37. The fund for financial compensation during the period 2005 till 2011 has been around 27 million

Euro. The physical fund transferred by the Government for physical compensation is 71,000 ha of

forest, 17,000 ha of agriculture land and about 117 state owned buildings.

2.9. International experience and evolution of LC activities in Albania

2.9.1. International experience with land consolidation

38. The practice of the Western European countries shows that there is no commonly adopted

land consolidation model. In some countries land consolidation is based on voluntary

participation of owners (e.g. Denmark) while in others there are more compulsory elements to

land consolidation (e.g., Germany, the Netherlands).

39. Modern practices of land consolidation in Western Europe were developed after the Second

World War. Until the 1980s the focus was mainly on improving agricultural structures by

reducing land fragmentation and providing farm size enlargement. Because problems with

farm structures in Western Europe were largely addressed, the main focus of land

consolidation projects during the last 25 years has shifted to an emphasis on more efficient

use of rural area, balancing the interests of agriculture, landscape, nature conservation,

recreation and infrastructure.

5 Agjencia e Kthimit dhe Kompensimit te Pronave (AKKP), Raport, 2012

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40. Today, land consolidation in most countries of Western Europe is one of the main instruments

for implementation of projects related to development of public infrastructure and

environmental protection, where the EU Water Framework Directive and the Natura 2000

directives provide an opportunity for the use of land consolidation as a useful instrument for

the implementation of the changes in land use defined by these directives.

41. In contrast, several countries in the Central and Eastern European region have introduced land

consolidation programmes in the last decade to address the problems of land fragmentation and

small farm sizes. At the national level the land consolidation function is usually trusted to a

Ministry responsible for Agriculture or its authorized institution. The elaboration of the re-

allotment plan is normally the core part of the field work that can be done by both public

institutions and private contractors.

42. In most EU countries, the cost of implementation of land consolidation projects is co-funded

by the State budget and the EU through the Rural Development Programme.

2.9.2. Evolution of land consolidation activities in Albania

43. The first land consolidation activities in Albania funded by the World Bank (WB) started in

2002 and were based upon the existing legal framework. The project encouraged land

consolidation in four selected pilot communes by subsidizing transaction costs and technical

assistance to facilitate market-based land transactions and conducting a policy study on land

consolidation. Progress was hampered by the lack of a law on land consolidation, high

transaction costs, and a high rate of problems in registration of ownership of agricultural land

(and mismatch between graphical survey information and verbal title information) generated

by the First Registration Program.

44. The implementation of the WB land consolidation pilot project, which was completed in

2004, raised awareness and brought the issue of land fragmentation to the attention of

decision-makers and other stakeholders indicating concrete alternatives to address the current

status of unsustainable agricultural structures and proved that land consolidation may be an

instrument for sustainable rural development.

45. During 2010-2013 a project titled: “Support to the Preparation of a National Land

Consolidation Strategy and a Land Consolidation Pilot Project”, funded by FAO has been

implemented in 3 pilot villages in Terbuf Commune, Lushnje. The project has provided

valuable experiences and outcomes, which have been taken into consideration for the

preparation of this strategy. Field land consolidation activities allowed testing of land

consolidation methodology and contributed to increasing MAFCP and IPRO staff capacities

in the field of land consolidation.

46. In total 715 landowners were identified in the three pilot villages. Out of these, 528 (74%)

were interviewed about their agricultural production and their interest in relation to the land

consolidation pilot project (wish to sell, exchange, purchase or lease land). Based on the

interviews, it was assessed that 444 landowners or as many as 84% of those interviewed were

willing to participate in the project.

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47. As of 31 January 2013, it has been possible to finalize voluntary land consolidation agreements

involving 90 landowners and 135 parcels. It is estimated that in total it will be possible to

finalize agreements with around 160 landowners involving the transfer of approximately 250

land parcels by the end of the project in spring 2013.

48. Despite the considerable interest among the landowners and farmers in the three pilot villages to

participate in the land consolidation pilot, so-far (as of 31 January 2013) only 8 landowners have

fully registered land transactions involving the transfer of ownership of 13 land parcels. It is

estimated that in total it will be possible to finalize the registration of land transactions involving 18

landowners and 25 parcels by the end of the project. Thus, it is expected that by the end of the

project it will be possible to fully register transfer of only 25 out of the estimated agreed transfers of

150 land parcels (17%).

49. The reason why it will be possible to register so few transactions when so many farmers were

initially interested in participating is because of the very complicated transaction procedures for

agricultural land. The land consolidation pilot has been implemented using the normal procedures

for the sale or exchange of agricultural land, as there is no specific land consolidation legislation

adapted to date. The most important registration problems faced in the pilot villages are:

a) Family ownership of agricultural land, since land is not shared individually for each family

member and any potential transaction can not be carried out without the consent of all family

members.

b) Procedures in inheritance cases

c) Discrepancy between title documents (Tapi) issued during land distribution in 1991 and first

registration in 1996.

50. The experiences from the land consolidation pilot clearly document the need for a land

consolidation law in Albania with simplified and cost-effective procedures in order to support the

implementation of a National Land Consolidation program.

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3. STRENGTHS, WEAKNESSES, OPPORTUNITIES AND

THREATS (SWOT) ANALYSIS

51. The analysis of the current situation in Albania regarding the organisation and implementation of land

consolidation process has indicated the following strengths, weaknesses, threats and opportunities on the

basis of which the objectives, aims and implementing measures have been formulated.

Strengths Weaknesses

• The Government is fully committed to reducing land fragmentation

recognizing it as a serious problem in Albania related to dis–

functional land market, land abandonment, lack of competitiveness,

etc.

• Albania has a stable macroeconomic situation due to economic

reforms undertaken and the possibility of stepping into the intensive

economic development phase.

• The existing national mid-and long-term policies and sector related

strategies are supportive for current and future development of the

agricultural sector.

• Pilot actions in support to voluntary land consolidation approach have

build up the ground to gain a certain degree of experience, to identify

bottlenecks of the process and establish the roadmap and

implementation practices.

• Albania has environmental and other conditions favorable for

intensive agriculture (soil, topography, climate, traditions), especially

for high-value added agriculture products (fruits, vegetables, etc.).

• There is a functional, dynamic and improving market for agriculture

sector including inputs and products.

• Most of the agricultural farms are focused on subsistence farming and,

due to their unfavorable structure, are hindering the competitive and

sustainable development of agricultural sector.

• Albania has weakly functioning of land markets and furthermore the

information on land market is un reliable.

• There is no special legal framework related to land consolidation as

well as there is a lack of funding for the implementation of land

consolidation projects.

• Agricultural land is not accepted as collateral by the banks because of

the insecurity of property rights and the size of the parcels.

• Poor rural infrastructure (roads, water supply, sewerage, water

treatment, irrigation and drainage systems, etc,) is a crucial inhibiting

factor for agriculture development.

• Land transaction procedures are complicated and transactions costs are

high.

• There is no public awareness on land consolidation concept and

process so far, that would have served as a precondition for farmers to

embrace the process.

• There is a lack of information and understanding among farmers,

institutional actors, and government officials on gender perspective

regarding land issues, ownership and rights in particular related to

legal aspects.

Opportunities Threats

• Land consolidation could become a leading force for the transformation

of the Albanian agriculture into a productive and profitable sector.

• The development of rural infrastructures will increase the attractiveness

of rural areas, encourage the development of non-agricultural businesses

in these areas and create the opportunities for new jobs.

• Land consolidation will create better opportunities for small farmers to

increase their profitability, consequently ensure a better livelihood for

themselves and their families.

• Through land consolidation process and incentives (like government’s

subsidy and IPARD scheme) rural areas and farming will become more

attractive for the young generation that will have new perspectives.

• Development of rural infrastructure will create new jobs to prevent

migration from rural areas.

• Albania has the possibility to use the experience gained by other

European countries in the area of land consolidation and profit from EU

co-funding under RDP when it will become a candidate country.

• The country is eligible for EU cross border cooperation programs for

rural development and environmental protection activities, that might be

a funding source of LC projects.

• There is a skeptical attitude of land owners and rural communities

towards land consolidation.

• Severe social and economic problems exist due to continuous rural

areas depopulation, and ageing of rural population.

• Lack of cooperation and activities on land consolidation have been

impeding factors for rural development and environmental protection.

• Lack of gender-equitable representation and participation means that

the voice of women and other vulnerable individuals/groups,

including youth, are not heard and their needs not considered in land

and agricultural initiatives.

• Rural development sector is facing frequent modifications/changes of

the normative framework.

• Cultural and traditional attitudes have an impact in strengthening

gender inequalities in access to, use, and management of resources,

shadowing the key contribution of women in family farms and

agriculture.

• There are no supportive means or incentives for marginalized

individuals and/or groups in rural areas

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52. The situation analysis presented above shows that currently the potential of agriculture sector is not

fully used and the level of investments in agriculture is still low.

53. The extreme land fragmentation in agriculture is one of the main reasons impeding the

modernization process and application of modern agriculture methods. Such factors have a

substantial effect on the production level and efficiency of interventions in the agriculture sector.

54. Small and medium size farms comprise a significant portion of the total number of farms having a

considerable importance for the rural economy, as they represent the main source of income for the

majority of the rural population.

55. The majority of farms are subsistence farms and not market oriented. Such farms are not

competitive due to their small size, high level of plot fragmentation, and low profitability.

56. The land market is underdeveloped and there is a little information on market mechanisms. Often

land is perceived as a social good that provides benefits continuously; thus land owners are hesitant

to enter into land transactions (sale-purchase) which consequently results in a low level of land

mobility. In many cases land owners deal with informal land transactions especially when

exchanging plots among each other. This is because of difficulties in land transactions, high and

lengthy transaction costs, etc.

57. The existing procedures for the land transactions needed for land consolidation in the current

situation without a land consolidation law are very complicated, bureaucratic and expensive. First

and foremost it is necessary to solve issues such as mistakes in the agriculture land reform;

mistakes with names, mistakes considering land documentation (land titles) and first land

registration. Then there are also problems related to the Civil Code, which requires that every

family member must appear in front of the notary for any transaction involving family land

implying high transaction costs, etc.

58. Modernization of agriculture and diversification of activities in rural areas create the bases for a

substantial transformation of labour force from agriculture related activities toward non agriculture

related activities. The improvement of life standards in the rural sector should be supported through

rural development programs that among others aim to create employment opportunities through

diversification and development of income-generating opportunities in and out of agriculture in

rural areas focusing more on environmental conservation and sustainable development.

59. Government projects on the implementation of land consolidation should contribute to the creation

of a “layer” of commercial family farms, create more job opportunities (dairies, slaughterhouses,

sale of fertilizers etc.) and contribute to more agriculture investments and technologies.

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4. OVERALL AND SPECIFIC OBJECTIVES

60. The overall objective of the Strategy is the creation of family farms that are economically

viable, competitive and sustainable. This is to be done in a way that contributes to the

sustainable, inclusive and gender and socially equitable development of the rural and

agricultural sector, economic growth, enhanced food security and reduction of poverty,

rational use of natural resources, environmental protection and restoration of natural areas.

61. The specific objective of the Strategy is to assist farmers to improve farm structures by

providing opportunities to reduce land fragmentation and enlarge farm sizes. The strategy

aims to do this by developing conditions for land consolidation, including a national land

consolidation programme, the adoption of an appropriate legal framework, and the successful

implementation of land consolidation projects.

62. The Strategy is aimed at all farmers, with its primary target group being farming families

(including all their members, male and female, young and old) who have the potential to

drive agriculture production. Other types of farmers are also eligible to participate in land

consolidation projects, and their participation can be important in order to achieve sustainable

impacts.

63. The time frame of the Strategy is a 15 year period from 2014 – 2028, divided into three

major phases:

Phase 1 (2014 - 2016): Preparatory work for the land consolidation programme, legal

framework and additional pilots;

Phase 2 (2017 – 2023): Implementation of land consolidation projects with an emphasis on

improved farm structures;

Phase 3 (2024 – 2028): Extension of land consolidation projects to address broader rural

development initiatives in addition to improving farm structures.

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5. LAND CONSOLIDATION PROGRAM DESIGN

5.1. Principles of land consolidation

64. The key principles of land consolidation are:

a) Voluntary participation – Participation in land consolidation projects should be voluntary and

an expression of the free consent of landowners.

b) Participation, transparency and democratization- Any decision within land consolidation

projects should be taken in a participatory, democratic and transparent way and brought to the

attention of all owners and other stakeholders.

c) Non-discrimination - No one should be discriminated against in land consolidation projects,

including on the basis of gender, religion or ethnicity.

d) Gender equality - Women and men, including youth, should have an equal right to participate in

land consolidation activities. Land consolidation projects should protect and respect the property

rights of all, women, men and youth.

e) Environmental protection and sustainability – Land consolidation projects should protect the

environment and ensure its sustainability, and shall not lead to adverse environmental impacts.

5.2. Procedures for selecting villages for land consolidation projects

65. This section identifies the steps for the process of calls for applications for land consolidation,

selection of villages against published criteria, preparation of the budget for the analytical stage;

selection of the implementing entity, and entering into an agreement with municipalities/communes.

Simple and cost-effective procedures should be developed for these steps.

5.2.1. Call for applications for land consolidation

66. The MAFCP announces a call for applications on an annual or otherwise periodic basis, with a

suitable deadline.

67. The MAFCP establishes a number of criteria for the efficient implementation of the land

consolidation strategy due to the limited capacity and financial resources as well as different

land tenure situation in the villages

68. Interested communes/municipalities respond to the calls for applications by preparing project

applications with the participation of their local farmer communities. The communes/municipalities

submit their applications to the MAFCP.

5.2.2. Selection of the villages (against published criteria)

69. The right process for selection of the participating villages is very important to guarantee the

effectiveness of the land consolidation program, sustainability and a positive impact of the process

for the majority of land owners

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70. Villages will be selected based on predefined list of selection criteria and defined formats mentioned

in call for proposals depending on strategy objectives or program objectives set by the Government

and published by MAFCP.

71. The Land Consolidation Section (LCS) in MAFCP approves or disapproves the project

applications based on the information submitted, assessment of the villages and available

information and then ranks the approved applications and selects the top-ranked

communes/municipalities.

72. The LCS has to carry out a comprehensive analysis of the potential project areas during the

selection phase in order to identify the different potential problems and to assess the

opportunities for land consolidation (interest among local stakeholders, land mobility etc.)

5.2.3. Preparation of budget for the analysis stage of each selected village

73. The budget will be prepared by the LCS in the MAFCP.

5.2.4. Selection of implementing entity for the analyses stage of each selected village

74. The MAFCP shall determine whether the implementing entity that carries out the land consolidation

activities (technical issues, meetings, landowner interviews, etc) in a village is its Public Extension

Service or a private contractor.

75. In the case of implemention by the private sector, the process for selecting the implementing entity

shall be transparent and competitive. There will be a tender issued and the company that wins the

tender for the first stage also wins an option for the second stage.

5.2.5. Agreement with communes/municipalities of each selected village

76. The MAFCP enters into an agreement on Cooperation with local government units and

project implementing entity. The number of actors will vary depending on the source of

project funding, etc.

5.3. Land consolidation procedures in individual projects

5.3.1 Analysis stage (Stage 1)

77. Land consolidation methodology shall ensure simplified and cost-effective procedures

envisaging the following steps:

Community workshop to launch project

78. After the selection of the villages, the MAFCP organizes a community workshop with the

participation of all land owners, family farms members and other beneficiaries to launch the

land consolidation project.

79. In this workshop project activities, benefits and expected results are explained; the initial

level of landowner’s interest is tested; land consolidation procedures are clarified, a local

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stakeholder’s committee composed by land owners and other farmers from the project area

communities is elected. The implementing entity should be present in this workshop in order

to hear the comments and proposals of the local community.

80. The Land Consolidation Commission (LCC), (as refer to chapter 5.4) is invited to participate

in the project launching workshop.

Election of stakeholder committee

81. At the initial community workshop landowners should select the local stakeholder committee which

will represent the general interests of the different groups of landowners throughout the project

implemention. Women and youth must have their balanced and equitable representation at the

committee level.

Cadastre review and map preparation

82. The implementing entity prepares the ownership map (Plan 1) and reviews and revises

cadastral and ownership information during the individual interviews with the landowners.

Landowners and farmers interviews

83. The implementing entity shall:

(a) conduct interviews with all landowners and farmers, both women and men, in the project village

and identify their individual interests and needs with respect to land consolidation;

(b) analyze the results of interviews with landowners and farmers, and prepare a baseline report with

an assessment of the posibilities for land consolidation in the project community including a land

mobility map.

Budget preparation

84. The implementing entity will collect relevant information for the LCS, to allow it to prepare a

budget for the re-allotment stage (Stage 2).

Community development

85. Where appropriate, land consolidation should be seen in a local community development context. The

implementing entity organizes community meetings at village level with local government, various

groups of stakeholders and individual/group interviews on community development, aiming to link the

land consolidation project with community development

Decision on continuation

86. The LCS will adopt a decision to continue project implementation or not depending on the

landowner’s expression of interest. The project implementation entity submits a baseline

report with Plan 1, Land Mobility Map and proposed budget for the implementation phase as

annexes for approval before starting the next stage of the project. The LCS can take the

decision to continue the project based on the baseline report from the implementing entity. In

this way the LCS supervises and controls the process and project funds.

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5.3.2. Re-allotment stage (Stage 2)

87. In order to obtain a clear and cost-effective registration and implementation of land transactions as

one interconnected land re-parceling/re-allotment plan and not as the sum of bilateral agreements,

the following activities will take place:

Negotiations

88. The implementing entity facilitates the detailed negotiations between the involved landowners and

stakeholders in the project area leading to the draft re-allotment plan. Upon finalization of the

negotiations, each landowner signs a “Land re-parcelling agreement” with indication of final re-

allotment parameters (improved location, distance and shape of land parcels), a description of the

parcels sold, purchased or exchanged (cadastral no., size, land quality etc.) and corresponding parcel

values (prices).

Valuation

89. In agricultural LC projects the LCS and the implementing entity may decide to carry out valuation

of land parcels in order to establish the foundation for the agreements between landowners. In case

of implementation of state and public large infrastructure projects, official valuation based on the

existing law on expropriation is obligatory in order to provide a fair compensation to landowners.

Preparation of re-allotment plan

90. The implementing entity prepares draft land re-parceling/re-allotment plan (Plan 2) as a result of the

voluntary agreements which is a sum of all re-parcelling agreements signed by landowners and

present it to the LCC.

91. The implementing entity organizes public consultations regarding the draft re-parceling/re-allotment

plan. In every agricultural land consolidation project and Environmental Impact Assessment (EIA)

should be carried out according to existing legislation by private licensed experts contracted by LCS

in order to make sure that land consolidation will not have adverse environmental impacts.

92. All parcels as a part of LC project will undergo through error corrections as regarding land

registration.

Adoption of re-allotment plan

93. After completion of negotiations among land owners and finalization of the re-allotment plan (Plan

2), a public meeting will be organized where the plan will be presented in front of the LCC and all

local stakeholders can be present and learn about the outcome of the project, ask questions and even

complain if they feel something has gone wrong or was not fair.

94. The plan should be publicly available for 1-2 weeks before the meeting in order to allow landowners

to have a look and think about issues before the meeting. Furthermore, the draft plan should be sent

to members of the LCC in advance of the meeting.

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95. The LCC prepares the decision presenting the list of participating properties and evidencing

references in the agreements signed by the participants. In this meeting all issues and all unclear

questions regarding the re-allotment plan (Plan 2) by the representatives of the LCS of the MAFCP

will be presented and clarified.

96. The LCS and project implementing entity make sure that all necessary documentation is available in

advance and guaranteed by the LCC prior to making the final decision at the public meeting. After

clarifying all issues and answering all questions, the LCC approves the re-allotment plan (Plan 2)

that is the result of the land consolidation project during the public meeting.

97. After the decision is made by the LCC, all following operations will be purely technical and

not involve the land owners as the change of property rights has occurred and has been

approved by the commission.

5.3.3 Surveying and Registration (Stage 3)

Surveying

98. The MAFCP will bid the process for private companies, institutions or licensed surveyors for a

fixed price to deal with the provision of the service on the implementation of technical operations in

the field. These comprise a surveying operation only for agriculture parcels that are divided under

the project that will involve the preparation of documents for registration of re-allotment plan.

Registration

99. Registration of all transactions as a single land re-parcelling/re-allotment plan adopted by LCC

makes project procedures cost and time efficient due to simultaneous change of property rights of

participating landowners. LC agreements will be registered according to the new LC law.

100. The MAFCP is responsible for the presentation and registration to the IPRO of the adopted land re-

parcelling/re-allotment plan.

5.3.4. Timeframes

101. The implementation period of agricultural land consolidation projects has to be 3 years at least. The

FAO pilot project in Terbuf Commune shows that the period needed for staff mobilization,

activities initiation, resolving the problems and obstacles, having transactions and their registration

is about 3 years.

102. The initiation and key process moments should be in line and timely synchronized with the

agricultural season; thus, interviewing of landowners and final negotiations between owners

should be held over late autumn to winter, when farmers are not busy with agricultural works and

have sufficient time to negotiate and implement all negotiated transactions, including the carrying

out of inheritance procedures, as appropriate.

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5.4. Institutional roles and responsibilities

103. The MAFCP shall remain lead authority for land consolidation and thus assume the overall

responsibility for a future National Land Consolidation Program implementation (legal

framework, preparation of annual plans; providing public announcement for private companies,

providing available financial resources, guaranteeing coordination during the project

implementation, etc.):

a. Coordinate LC strategy implementation and monitoring;

b. Elaborate and regularly adjust the national LC program;

c. Funding, supervision and guarantee for a normal implementation of land consolidation projects;

d. Select and contract entities for the project implementation

e. Ensure methodological support for implementation of land consolidation projects;

f. Conduct the selection of villages for participation based on received applications;

g. Facilitate presentation of the Land re-parceling/land re-allotment plan for its approval by the LCC and

subsequent registration by IPRO.

h. Identify training needs, elaborate and implement capacity building programs;

i. Establish relationship of cooperation with various ministries and partner agencies;

j. Elaborate annual reports on the strategy implementation and present it to the Government for approval.

104. The MAFCP will establish the LCS. The initial number of LCS permanent staff will be 3

persons, including experts with wide range of experiences and skills in agriculture, legal

issues, cadastre, etc. As it is going to be a new section, the financial resources are to be

provided by the MAFCP. In the future, as the land consolidation program extends, the LCS

may increase the number of staff and include specialists with agricultural background,

agriculture engineering, land administration, environment and landscape management, rural

infrastructure, water management, finance and project management skills.

105. A project operating manual shall be elaborated by the LCS including detailed step-by-step

land consolidation project implementation guidance.

106. The MAFCP will set up relations and coordinate with different line ministries and agencies

that would be involved in a land consolidation project, the local government units where the

consolidation projects will be implemented as well as different donors.

107. At the regional level Agriculture and Food Directorates within the MAFCP shall be the

main counterparts of the LCS to support land consolidation activities. Their concrete

contribution will be made at different stages of projects’ implementation in their respective

areas, i.e. in the project launching, selection process, public consultation, etc.

108. The Immovable Property Registration Office (IPRO) and its regional cadastral offices under

the Ministry of Justice, as they are responsible for land titling and registration, maintenance of

records and oversight of surveying and mapping, carrying out the state policy on land relations,

registration, cadastre, geodesy, mapping and geo-informatics, as well as correcting any errors, will

play a crucial role in LC. This institution shall provide initial ownership and cadastral information to

the implementing entity, issue land extracts required for the elaboration and authentication of

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alienation contracts and most important carry out registration of the land re-allotment plan according

to the procedures to be adopted in a new law on land consolidation.

109. Local Government Units (communes/municipalities) represent the general interest of local

communities and submit applications for land consolidation projects. Based on the pilot

project experience, the role of local government units is essential for the success of project

implementation. Specific functions to be performed by the local government units (LGU)

include the following:

- Submit initial application

- Provide documents, data, relevant plans and urban planning maps

- Provide office space and host the local project team of the implementing entity

- Support project implementation during project workshops and in the daily work.

- Participate in the Land Consolidation Commission (LCC)

110. Territorial Adjustment Committees (TAC) (operating at national, regional and local levels)

have authority over land for housing, trade, industry and services within

commune/municipalities boundaries. All residential areas are required to have a General

Adjustment Plan prepared by the national TAC, which sets the yellow line designating urban

centres for a 15- year period.

111. Land Administration and Protection Directories at Qarku level deal with the agricultural

land administration, maintenance, improvement, collection and update of information

regarding land situation, etc. These offices shall provide a lot of information regarding the

unused land, soil categories, etc. to the implementing entity for a land consolidation project.

112. Land Consolidation Commissions (LCC) are new bodies proposed in the strategy. They

are required as part of the efficient procedures for land consolidation through the

simultaneous implementation of all land transactions in a single re-allotment plan. A LCC

will deal with the approval of land consolidation projects and with authorize the registration

of all land transactions included in the approved re-allotment plan.

113. A LCC shall be established for each land consolidation project. It shall comprise five people,

of whom two people shall represent the MAFCP, one person shall represent the relevant

Regional Department of Agriculture, one person shall represent the municipality/commune in

which the project is located, and one person shall represent, and be selected by, the

landowners and farmers who participate in the project. A LCC will be chaired by one of the

representatives from MAFCP.

114. The Local Stakeholder Committee (LSC) shall be elected among landowners and

stakeholders participating in the initial community workshop and should equally represent

and voice the interests of different groups of farmers and landowners, women and men,

during the land consolidation project. LSC serves as local advocacy platform that can

support ensuring a transparent planning process, where nobody is put under pressure to

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participate against his/her will, and represent the general interest of all the members of the

community where the project is being implemented.

115. Implementing entities that carry out the work on land consolidation projects may include the

Public Extension Service under the MAFCP and private sector entities.

116. Implementing entities shall have appropriately certified staff, with the following minimum

qualifications:

(a) Academic level of at least B.Sc. in the fields of: agriculture, land management, law, cadastre or

land surveying or equivalent; and

(b) Experience in cadastre and GIS expertise; and

(c) Certificate upon completion of specified courses on land consolidation.

117. All surveying and cadastral work shall be undertaken by appropriately qualified persons.

5.5. Preparation of a national land consolidation program

5.5.1. Establishment of the institutional/organizational framework of LC and

determination of procedures

118. Aiming to fulfil its objectives, this strategy foresees the following actions:

a) Establish Land Consolidation Section within MAFCP;

b) Establish the legal framework;

c) Training and capacity building;

d) Launch and implementation of new projects,

e) Assist the LCC to establish formal procedures regarding the approval of the re-allotment plan,

f) Approval of applications and coordination of applications for new projects,

g) Establish relations of cooperation with agencies and state institutions,

h) Develop detailed guidance on LC project implementation and procedures

i) Prepare annual work program and ensure necessary funding

5.5.2. Establishment of the legal framework

119. Chapter 2.9.2 demonstrated the need for a new law on land consolidation. The structural

content of the new law on LC should address the following issues:

a) Objectives of implementing the law based on improved sustainable rural livelihoods through more

rational and economic parcel structure;

b) Principles of voluntary land consolidation, such as free choice (voluntariness), transparency,

accountability, respect for individuals, rule of law, efficiency, non discrimination, gender equality, etc.;

c) Way of functioning of the scheme for the process, dynamics of its development towards the

final objectives ;

d) Establishment of the LCC, its composition and functioning; jurisdiction and competencies;

e) Role and responsibilities of MAFCP, central and local government units, IPRO, farmers’ community and

other potential actors in the process;

f) Horizontal and vertical coordination mechanism between the institutional stakeholders involved in LC;

g) Financing scheme;

h) Details on procedures for the implementation and registration of transactions

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120. It is also necessary to amend a number of existing laws and relevant bylaws in the current

legislation, particularly in terms of streamlining administrative procedures.

121. Transaction costs for land consolidation projects must be defined based on the new land

consolidation procedures, after the preparation of the new law on land consolidation and during the

preparations for implementation of the national land consolidation program.

122. Land consolidation is seen as public investment. In this context, the inclusion of a provision in the

new LC law to reduce transaction costs for land consolidation is an objective solution. Specifically,

sanctioning the exclusion from payment of service fees in the IPRO, the reduction to 50% of the

notaries’ service charges, and the exclusion from liability to pay tax on the transfer of property in

case of purchase transactions, for a period of 5 years from the date of entry into force of the law.

This omission within this time period stimulates interested farmers and at the same time significantly

increases the opportunities for successful implementation of the law since its initial stage.

123. There is a special provision in the Civil Code, for the division of land by inheritance, which defines

the minimum limit that cannot be divided further. However, there are evidenced numerous

occasions when several judicial decisions on the inheritance of the first level courts do not properly

reflect this legal restriction and this affects negatively to further fragmentation. For the settlement

of these cases, the Supreme Court should decide on the unification of judicial practice, and it

remains the most convenient way to definitively address this problem.

124. Based on the above, the following specific laws should be amended as follows:

a) Amend the law “On registration of immovable property” to allow LC project implementing entity to carry

out all the administrative procedures of transactions on behalf of participants;

b) Amend the Law No. 8387/1998 “On assignment of property of agricultural land, forest lands, meadows and

pastures” (article 5), to avoid the obligation for the submission of authorization from the court for the

representation of juvenile members of the agricultural family once the transaction is formalized;

c) Amend existing regulations (Government Decree No 713, dated 10/20/2011; Order of the Ministry of

Finance No. 5, dated 01/30/2006) to reduce IPRO service fees and transaction taxes in case of LC;

d) Revise and set new fees for the registration of services related to land consolidation projects.

125. The aforementioned adjustments to the legal framework are in full compliance with the goals

set forth in the newly adopted Government Strategy Reform in the field of the property rights,

which emphasizes the importance of consolidation as an effective tool for reducing the

fragmentation of agricultural land.

5.5.3. Capacity development

126. The elaboration of the training program and training materials based on experiences

accumulated during implementation of the LC pilot projects is a pre-condition for the

successful implementation of a national LC program.

127. The LCS under the MAFCP is responsible for the design and implementation of the training program.

Training program for implementing entity

128. Aiming to fulfill the needs for qualified and capable specialists to deal with land

consolidation, a training program will be developed based on the best local experiences,

revised legal and institutional framework and European experiences and gender issues.

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a) The short training course of 2-3 weeks in land consolidation will provide the attendees with a certificate and

make them eligible to work as land consolidation planners with the right background.

b) The MAFCP will issue the certificates (in conjunction with other institutions as required).

129. Over the long term graduate degree curricula will be developed by the universities for

professional master courses on land consolidation, which will allow graduates to be eligible

to work as LC planners.

Training program for government stakeholders:

130. The training program for government stakeholders will target officials involved in the

strategy implementation. Tailored training course will be prepared and delivered by LCS.

5.5.4. Public awareness raising

131. The MAFCP will design a communication program using multimedia channels to inform

rural communities about the Land Consolidation Program. Specific and targeted efforts will

be made to reach out to women and youth to raise their awareness on property rights and

ensure their meaningful participation in the LC program.

132. The MAFCP will include communication activities in its annual work plans.

5.6. Land consolidation as a tool for other purposes

133. In addition to improving agricultural structures only, where appropriate, LC approaches will

be used for other purposes in conjunction with rural development.

134. In a number of cases, public interventions will result in changes in land use which will

negatively affect farming activities of some farmers (e.g. infrastructure projects etc.) and LC

approaches and land banking can be used to allow farmers to continue farming and even

expand their operations (by acquiring alternative land through the use of LC and Land Bank

approaches). In this case land consolidation procedures can facilitate project implementation,

and diminish the need for expropriation, which will continue to be governed by the law on

expropriation.

135. When Albania will become a member of EU there will be a need to comply with a number of

EU norms such as Natura 2000 Directives and the Water Framework Directive, to take land

out of production. In addition, LC can be used to reduce expropriation costs in connection

with the building of public infrastructure such as highways, irrigation systems, etc.

136. Such land consolidation projects would be initiated by responsible authorities or line

ministries. Institutions such as the Ministry of Environment, Forest and Water Administration

(MEFWA); the Ministry of Transports and Public Works (MTPW) may take a role as project

initiators and propose project implementation sites.

5.7. Establishment of a Land Bank and its use in LC activities.

137. A Land Bank can be a very important instrument that helps in the successful implementation

of land consolidation projects. Land consolidation planning is very difficult when land

mobility is extremely low (very few sellers) where most of the farmers are interested in

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exchanging parcels with the purpose to reduce the number of parcels (fragmentation). In such

conditions it is beneficial to increase land mobility and the land bank might become a very

good instrument to use by increasing the availability of the number of parcels that can be used

in land consolidation transactions.

138. Land banking will be introduced and operations will be progressively scaled-up during the

period of the strategy. Before the launch of a land consolidation project the MAFCP will

consider appropriate purchase of the land from landowners when offered for sale (voluntary

and at market conditions), and hold it temporarily so that it is available for sale or exchange

to farmers participating in the LC project.

139. The MAFCP may create an initial (start up) budget and prepare simple administrative

procedures for land purchase and subsequent sale, often in land consolidation projects. Such

procedures could clearly be defined in an appropriate regulatory way.

5.8. Implementation phases and funding

140. Land consolidation will be implemented according to the phases of the Strategy. (A critical

assumption is that Albania will become candidate country by 2014, therefore becoming

eligible for support under instruments equivalent to IPARD in the EU Financial Framework

of 2014-2020).

Phase 1: 2014-2016

Two additional pilots to be finalized after the new law is enacted (the initial steps of the pilot

project will be carried out in parallel with the law preparation). The purposes of this additional pilot

projects will be to continue develop capacity and further test land consolidation procedures before

scaling up. Estimated total costs will be 14 Million LEK/project without the cost for international

technical assistance that will be an additional cost which MAFCP will seek to get funding from

different donors.

Phase 2 and 3: 2017-2028

Annually 3-4 middle size projects are implemented given that financial sources are earmarked in

the budget on a year to year basis. Projects start is staggered, so that new projects start each year: 3-

4 projects in 2017 (to finish in 2019), another set of 3-4 projects in 2018 (to finish in 2020), a third

set of 3-4 projects in 2019 (to finish in 2021) and so on. Estimated total cost will be 14 Million

LEK/project.

141. These cost estimates will be revised based on the monitoring and evaluation of the additional

pilot projects conducted under Phase 1 (2014-16).

142. The projects are expected to be financed in proportion of 25 % from state budget and 75 %

being external funding (grants) from the EU (as a candidate country).

143. Donor funding for the preparation of the new law, the next round of pilot projects,

preparation of training programs, etc, will be a high priority of MAFCP.

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6. STRATEGY OUTCOMES AND EVALUATION CRITERIA

144. Evaluation criteria are established in order to monitor the implementation of this strategy by means

of regular assessment of the progress made towards the achievement of the aims and objectives

specified in this strategy.

145. By using various mechanisms for achieving organizational objectives coverage and by allocating

the appropriate amount of financial resources from the outset to the implementation of this strategy

the following results will be attained:

a) Reduction in the level of fragmentation of agriculture plots

b) Improvement of capacities dealing with agriculture land management and administration

c) Increased investment in agriculture and development of the formal land market

d) Increased competitiveness of the agriculture sector;

e) Increased agricultural GDP per capita;

f) Improvement of life quality in the rural areas;

g) Increased awareness of land owners on their land and property rights and capacity building on

gender and of gender issues therein;

h) Increased awareness and capacity building of all actors involved on gender issues related to land

consolidation

i) Establish measurable gender sensitive indicators including baseline and progress over the years of

strategy implementation

146. Implementation of the current strategy will be monitored through strategy objectives, number

of implemented projects and achieved results. General indicators of the progress include

various aspects of land consolidation including: the total number of implemented land

consolidation projects, the total area of consolidated land, number of publications, radio and

TV programmes on land consolidation, number of specialists who improved their

qualification and are capable to deal with land consolidation, etc.

147. MAFCP shall develop particular evaluation and monitoring guidelines which will contain the main

requirements and recommendations for project evaluation, based on the following main groups of

indicators:

a) Land tenure indicators: reduction of the total number of parcels, increase of the average

parcel size, increase of farm/holding size, improvement of parcel shapes, and reduction of

distances between parcels, improved specialization and mechanization; etc.)

b) Economic indicators: changes in the agricultural production, changes in farm sales and

consumption, changes in revenues and expenses of farms, access to infrastructure and services

of farmers, etc.

c) Social indicators: number of participating landowners (disaggregated by sex and age), changes

of incomes of beneficiaries, number of youth involved in farming activities (before and after

land consolidation), number of social infrastructures (schools, health services, social and

recreational facilities) developed.

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148. In the case LC is used for large infrastructure or nature reclamation projects, more indicators are

needed than in the case of “simple” farm restructuring, such as land tenure situation, economic

aspects, environmental and social aspects, etc.

149. Coordination of the land consolidation strategy implementation, monitoring, evaluation and the

strategy adjustment will be performed by the MAFCP.

150. Monitoring the implementation of strategy and evaluation criteria of the strategy derive from the

strategic goals and objectives and allow continuous assessment of strategy implementation progress.

The monitoring process will be fulfilled in three ways: through annual monitoring, periodic

assessment and final evaluation of the strategy.

151. MAFCP will prepare and present to the Government of Albania the annual progressive reports

regarding the strategy implementation. Every five year an interim assessment will be carried out and

at the end of the strategy period will be executed the final evaluation.

7. IMPLEMENTATION PLAN

152. The implementation of the current strategy will go though three closely related phases as presented

below:

Phase 1: Preparatory phase (0-3 years): The first phase includes the period during 2014-2016, and

the main actions involve the initial activities like, legal changes (develop new LC law and amend

existing legislation, and other relevant bylaws), follow up with two more pilot projects after the

finalization of the FAO project, training and certification, preparation of manuals, etc. Also during this

phase the focus will be mainly on the establishment and equipping the land consolidation section;

employment of LC sector staff, discussions with different partners in terms of financial support

options/possibilities, seek additional funding sources; initial steps for the implementation of LC

according to implementation schemes. Further technical assistance will be a high priority of MAFCP

in phase 1.

Phase 2: Starting the program (4th

to-10th

year): After finalizing the activities planned under the

first phase, based on the monitoring and evaluation results and on the actual needs, a new plan of

activities will be prepared as part of the second phase of the strategy. The main actions of the second

phase include land consolidation activities focused on the restructuring of the agricultural sector in the

on-going national land consolidation program.

Phase 3: Introduction of more comprehensive projects (11th

to 15th

year): Towards the end of the

second phase the focus gradually shifts towards implementation of LC projects with public

infrastructure works, and integration of LC to rural development and non-agriculture purposes (nature

protection, restoration and environmental purposes, various projects with resettlement needs), while

still having projects on simple readjustment.

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Annex: ACTION PLAN on the implementation of the National Strategy for LC (2014 –

2028)

1. LEGAL MEASURES

Problem Solution Legal Act Responsibl

e authorities

Time

schedule

Existing legislation does not

provide any special

provisions specifically

addressed to the issue of

land consolidation.

Direct intervention in the

existing legislation for

addressing the issues linked

with LC.

New law on LC. MAFCP & MoJ

2014 - 2016

Legal restriction to obtain a

special authorization from

the court for representation

on behalf of minor family

members (under 18), at the

time of formalizing the

transaction at the notary.

Amending the law to allow

bypassing procedures for

obtaining special authorization

by the court.

The law no.

8337/1998 “On the

Transfer of Ownership

of Agricultural Land,

Forests and

Pastures”, Article.5.

MAFCP & MoJ

2014 - 2016

Excessively cumbersome

procedures for the

registration of transactions.

Amend the law to allow

preferential treatment for LC

project implementing entity to

carry out all the administrative

procedures of transactions on

behalf of participants.

The law “On

registration of

immovable property”.

MAFCP &

IPRO & MoJ

2014 - 2016

Several discrepancies

between the data registered

by IPRO on the registered

surface of the land plot and

the factual on site situation.

Amend the law to allow IPRO

to register actions on transfer

of property rights according to

the will of the family farm,

only to parcels involved in

case of LC, and also the

relevant notes in the card for

the rest of the property, in

order to prevent further action

until the final clarification of

the conflict / inaccuracies

The law “On

registration of

immovable property”.

MAFCP&

IPRO & MoJ

2014 - 2016

Final Version

30

Problem Solution Legal Act Responsible

authorities

Time

schedule

Adoption of a guidance by

IPRO in which should be

clearly defined the

respective procedures, in

case of LC.

New special

guidance (sublegal

act)

IPRO 2014

High level of

transaction taxes and

fees for the transactions

effected at IPRO, in

case of LC.

Amend existing

regulations for reduced

IPRO service fees and

transaction taxes in case of

LC.

Government

Decree No 713,

dated 10/20/2011;

Order of the

Ministry of

Finance No. 5,

dated 01/30/2006;

MoJ

2014

High notary fees in

case of LC.

Revise the existing high

notary fees, aiming

preferential treatment in

case of LC.

Instruction of the

Ministry of Justice.

MoJ

2014

According to existing

legislation the conduct

of measurements is

required by a licensed

surveyor, requiring the

payment of the

respective fees of this

service.

Amend the law to allow

that such measurements to

be conducted free of

charge by a licensed

surveyor, employed

directly by the commune.

The law “On

registration of

immovable

property”.

MoJ 2014

2. Other Measures (Institutional, Methodological, Policies, Capacity Building,

Funding)

No. MEASURES EXECUTING

AUTHORITIES

TIME

SCHEDULE

I. INSTITUTIONAL AND METHODOLOGICAL FRAMEWORK

1.1 Strengthen capacity of LCS, Regional Agricultural Departments,

other agencies and public institutions (IPRO, notaries, tax office,

etc.) in the field of LC, including the implementation of the LC

strategy and design, management and implementation of a LC

programme.

MAFCP. Ministry of

Justice

2014 - 2016

1.2 Develop methodological basis for the implementation of LC

activities (implementation guidelines, evaluation guidelines,

monitoring programs, etc.).

MAFCP 2014- 2016

1.3 Supporting eventual initiatives for the development of the additional

pilot projects

MAFCP 2014 - 2028

1.4 Drawing up a Public Awareness Programme (PAP) on LC

containing the information package and ways to access information.

The PAP will cover technical, social and gender issues, the impact of

campaign on overall rural population and in particular on women,

man and youth, as well as adequate publicity and public relation

MAFCP 2014-2028

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31

No. MEASURES EXECUTING

AUTHORITIES

TIME

SCHEDULE

measures

1.5 Establishing the Land Bank (after relevant legislative acts have been

adopted)

MAFCP, Ministry of

Finance

2020 - 2028

1.6 Prepare appropriate information packages and develop efficient ways

of delivering these packages on LC procedures to inform local

administration and all other actors involved at local level

MAFCP 2014 - 2016

2. TRAINING PROGRAM AND CAPACITY BUILDING

2.1 Elaborate regulation on certification of LC specialists MAFCP 2014 - 2015

2.2 Providing international technical assistance for the preparation of the

LC law and national LC program.

MAFCP, Ministry of

Finance

2014 - 2016

2.3 Elaborate training program for the implementation of LC projects MAFCP 2014 - 2016

2.4 Elaborate curriculum for university and post-university studies in LC

including for the certification of purposes

Agricultural University,

MAFCP

2014 - 2016

2.5 Prepare and develop a full training program on LC and social and

gender related issues. The content of the training package will be

addressed to all levels starting from decision makers, LC project

staff and local people (including women, man, and youth) and will

focus on gender inequalities in relation to land and property rights ,

the gender and social implications of consolidation of agricultural

land, understanding the gender and social dimensions of rural

livelihoods.

MAFCP, local

government units

2014 - 2015

3. FUNDING LC ACTIVITIES

3.1 LC projects implementation Ministry of Finance,

MAFCP

2014 - 2028

3.2 Continuous fundraising activities for the implementation of LC

projects

Ministry of Finance,

MAFCP, Ministry of

Environment, other agencies,

2014 - 2028

3.3 Creation of the Budget for organizing and running of courses and

workshops

MAFCP annually

3.4 Creation of the Budget information activities MAFCP annually

3.5 Fulfillment of requirements for accession to European funds for

funding of the National Land Consolidation Program under the Rural

Development Programme 2014-20.

Ministry of Finance,

MAFCP

2014 - 15