On September 15, 2026, the second meeting of the Application Evaluation Commission (AEC) for the 2026 Performance-Based Grant (PBG) was held, supported by the Agency for Support of Local Self-Government (ASLSG) acting as the Technical Secretariat.
The meeting was chaired by Mr. Indri Dyrmishi, Head of the AEC, and conducted in two sessions, focusing on finalizing the assessment of financial indicators and the 2025 Performance Measurement System (PMS), as well as the preliminary evaluation of indicators related to forest economy management.
In the first session, the AEC reviewed the final assessment of financial indicators, including appeals submitted by municipalities and the final results of the 2025 PMS indicator. A significant part of the discussion was also dedicated to a comparative analysis of municipal performance between the 2025 PBG and the 2026 PBG.
The analysis highlighted an increase in instances where financial indicators were met: rising from 50 cases in the 2025 PBG to 85 cases in the 2026 PBG—an increase of approximately 70%. According to the indicators, by 2026, 12 additional municipalities meet the criterion regarding arrears, 4 more meet the budget execution criterion, and 19 more meet the criterion for real estate tax revenue collection. Methodological changes applied during the assessment process were also taken into account when interpreting these results.
KVA members acknowledged the importance of this analysis in tracking local government performance and emphasized the need to communicate results and best practices. Discussions also highlighted that the full impact of the Performance-Based Grant needs to be assessed from a long-term perspective, linking financial support to performance, tangible results, and interventions with lasting impact.
In the second session, the Commission proceeded with the preliminary assessment of the Forest Management Plan and the indicator “% of forestry revenue reinvestment”—the latter being applied for the first time under the GBP 2026 framework. Twenty-four applications for Forest Management Plans were reviewed, and specific cases requiring further evaluation by the Commission were analyzed.
Regarding the forestry revenue reinvestment indicator, data reported by municipalities were cross-referenced with data from the Ministry of Environment and the National Forestry Agency. The preliminary assessment revealed that 9 municipalities met the criterion; of these, 7 exceeded the 100% level, while 2 were close to the established threshold. The evaluation process for GBP 2026 will proceed according to established procedures and timelines—including the review of any appeals regarding preliminary evaluations—ensuring a process based on clear and uniform criteria for all municipalities.
The Performance-Based Grant aims to drive improvements in municipal performance and steer financial support toward tangible results and better local-level services.