Agjencia Për Mbështetjen e Vetqeverisjes Vendore

On November 25, the National Conference on the Municipal Performance Measurement System was held, an important event that highlighted the results, challenges, and new directions for the development of local governance in Albania.
The activity brought together representatives of central institutions, municipal leaders, international partners, and civil society organizations. In his address, the Minister of State for Local Governance presented the key findings of the 2024 municipal performance report, highlighting significant improvements in financial management and the provision of public services. According to the report, municipalities’ own-source revenues reached 44.4 billion lek, a considerable increase compared to 2015. Likewise, arrears have been significantly reduced, reflecting better fiscal discipline. The presentation emphasized improvements in sectors such as preschool education, irrigation–drainage, and waste management, showing notable progress in cost coverage and service quality. Another key element was the role of the Performance-Based Grant, described as a transformative instrument for strengthening local government capacities and preparing them to absorb European funds. Currently, 61 municipalities already have updated strategic documents that enable them to apply for new development projects. The conference also introduced the initiative to establish an integrated local data system in cooperation with INSTAT and other institutions, which will serve as a foundation for data-driven decision-making and enhanced transparency. International partners from Switzerland and Sweden praised Albania’s commitment to strengthening decentralization and emphasized the importance of continuing performance-based financing policies as a mechanism that fosters capacity-building and accountability among municipalities. The conference concluded with a call to continue interinstitutional cooperation and to strengthen measurement systems as a prerequisite for more efficient, transparent, and citizen-oriented local governance.