The third Inter-Municipal Workshop on royalty issues

The third Inter-Municipal Workshop on royalty issues

Alb-EITI and the OSCE Presence in Albania organized the third Inter-Municipal Workshop on royalty Issues on September 25, 2019 in the Berat Municipality.

The workshop was attended by Secretariat Representatives and the MSG EITI-Albania, representatives of the OSCE Presence, leaders and staffs of the municipalities of Berat, Kuçova, Skrapar, Ura Vajgurore; Representatives of Ministry of Finance and Economy, Ministry of Environment and Tourism, Ministry of Justice, ADISA, General Directorate  of Taxation, AKBN, Ministry of Health and Social Welfare /State Agency for Children’s Rights and Protection, Civil Society, FIAA, experts contracted by the OSCE, etc.

In the four respective municipalities operate companies for 59 Mining Permits (in the extraction of limestone, silicon sand, marble limestone, decorative stones etc.); as well as in the Petroleum sector “Shell Upsteram Albania B.V.” in the exploration phase and in the exploitation phase the “Sherwood International Petroleum” Ltd and “Albpetrol” sha. Companies.

Mr. Ardit Kamberi discussed on issues related to well-managed activities transparency of the extractive industries, for the distribution and maximization of the social and environmental impact of the royalty on local units; Strengthening local capacities for the purpose of utilizing Transparency and legal instruments to collect revenue generated from royalty; Discussion for the most optimal scenarios on revising the royalty  distribution formula, for a long-term development platform in extractive industries, initiated by the Albanian Government. The new 2019 EITI International Standard has included in the EITI Report the Environmental and Social impact indicators of the Extractive Industry.

Head of the Department of Good Governance at the OSCE Mission Presence Mrs. Arianna Briganti emphasized the OSCE’s commitment to support a transparent process of sustainable development, as well as environmental and social optimal impacts of the Extractive Industry activity in local units and communities. 

In their remarks the Mayors and Vice-Mayors of the four municipalities articulated the problems of reconciling the value of the royalty with the Regional Directorates of Taxation; Real impacts of Extractive Industry activities on local infrastructure and Environment, requirements for progressive environmental remediation of areas where extractive activity takes place; The need to revise the values ​​and percentages benefiting from the royalty.

The second session of the Workshop, interactive discussions were held between all representatives of local government and representatives of the Ministry of Finance and Economy, Ministry of Environment and Tourism, General Directorate of Taxation, AKBN, regarding the optimization of the royalty benefit process, as well as the reconciliation of all links of sensitive issues related to the environmental and social impacts of the extractive industries.

In the third session of the Workshop, presentations were made by: MSG EITI Representative, Mrs. Hajnaj (Albanian Center for Development and Integration) – Royalty Management and Distribution Project at local level; by A. Sh. D. M .F, Mrs. Kelopatra Gjana; FIAA representative and MSG-EITI member Mr. Përparim  Alikaj, as well as Mrs. Alketa Skëndaj – An expert contracted by OSCE on Presentation of a Platform for Co-operation between Municipalities for Royalty and Pilot Project for this platform.