The Establishment of the Agency Payments
a. EU Legal Basis:
Since January of 2007, the IPA (Instrument of Pre-accession) has established a series of Community programs. Regulation EC Nr. 1085/2006 of 17 July which focus on creating an Instrument for Pre-accession Assistance (IPA), and the EC Regulation Nr. 718/2006 for the establishment of an instrument for pre-accession assistance. In this context, support for the implementation of national policies on rural development is needed to establish a structure pursuant to which known as the Agency for Agricultural and Rural Development in Albania.
b. National Legal Basis
Rural Agricultural Development Agency, known also as Payments Agency has been established by a proposal of the Minister of MAFCP and a decision of the Albanian Government (1443, dated 31.10.2008, in support of Section 100 of the Constitution, Article 21, law no. 9817, dated 22.10.2007. For Agriculture and Rural Development.’’
The Payments Agency, has the a central structure and local structures. Number of employees constituting the agency reaches currently 81 employees. It is responsible for the administration of program funds for agriculture and rural development funds procured by the state budget for direct support of agricultural production; for infrastructure development of agricultural markets and for the Counterpart fund of project 2KR.
This agency has started to function on 1 January 2009 and is responsible for the implementation of policy measures on agricultural and rural development.
AZHBR it is responsible for managing of program funds for agriculture and rural development, as for the following funds:
- State budget funds for direct support to agricultural production
- State budget funds for the development of agricultural infrastructure markets
- Counterpart Funds
Main Responsibilities of AZHBR
• implementation of policy measures on agricultural and rural development;
• preparation of reports and analysis in accordance with the development of national agriculture;
• establishment and operation of integrated systems management and control;
• establishment and implementation of information systems market information systems;
• creation and maintenance of database needed;
• implementation of measures to monitor and to do internal audit;
• to inspect bodies and farmers who have benefited from funding program for agriculture and rural development.
d. Structures within the Payments Agency (AZHBR)
Internal audit has the responsibility to check if AZHBR actions are in line with governing legislation in terms of implementation of financing operations of the agency. Internal audit supervise also AZHBR internal control, through the system of checks and reviews of internal management once in five years according to standards.
Payments Directorate is responsible for implementing measures for agricultural and rural development. It accepts applications and approves them. It prepares and improves all the manuals and guidelines on practical implementation of schemes for direct support.
Directorate of Finance performs functions like financial accounting and reports payments of projects carried out by group’s and does promulgated verification, manages fees applying management control.
Department of Control determines the methodology and procedures to check the projects announced as groups verification. Organizes and carries out control in the winner applicants in the presence of groups such as verification and analyzes sources of risks and opportunities for projects and activities AZHBR.
Services Directorate deals with identifying the needs for skilled human resources and training. Also organizes the evaluation of performance and provides human resources support services.
Directorate of Agricultural Policy (managing authority)
Authority's program is first to support the agricultural sector and rural development. Managing Authority is the entity within MFCP, which is responsible for: designing of a effective, efficient and correct IPARD project; assist monitoring committee; prepares annual report finalize them and sends to the Commission; consults regularly with Agency of Payments; establishes, maintains and reports through a system information.
2. Measures of direct benefit are:
1. New planting. Planting of fruit trees (apple, pear, cherry, plum, peach, hazelnut, strawberries, citrus and olive blocks) in not less than 4000 m2 from individual farmers and not less than 1 ha for Farmer group; AP pay 50% of the project cost, but no more than 400 thousand ALL per ha. Planting vineyards on the block not less than 5000m2 for individual farmers and not less than 1 ha for Farmer group; AP pay 50% of the project cost, but no more than 600 thousand ALL per ha.
2. Water drops in fruit trees plant, olive groves and intensive citrus plant AP pay 50% of the project, but no more than 300 thousand ALL / ha.
3. Protection of the olive groves from olive insects
: AP pays 20 000 ALL/ ha.
4. Certification of agricultural products bio in cultivated plants: for products destined for the domestic market AP pays no more than 50% of the cost but no more than 20 thousand ALL/ farm / year for products of export support measures is 50% cost of certification, but no more than 70,000 ALL / farm / year.
5. Manufacturing saplings for local types of grapes "Kallmet", "Debinë", "Vlosh" and "Puls", the nursery area for not less than 3000m2: AP pays 1.2 million ALL / ha.
6. Construction of irrigation wells in fruit tree s plants, citrus and olive groves AP pays 50% of the project, but no more than 100 thousand ALL for the well.
7. Plastic sheets for new solar green houses, sized 2000m2 and up, AP pays 300 thousand ALL / ha of greenhouse.
8. For glass green houses with heating for vegetable production, in changing the system using the solar instead fuel; AP pays 1.5 million ALL / ha greenhouse.
9. Livestock farms that breed more than 10 milk cows, AP pays 10 thousand ALL per head. For livestock farms that breeds more than 30 heads of milk cows, the payment from AP is made for up to 30 heads
10. Payment from AP is 500 (five hundred) ALL per head for sheep, for flocks with more than 50 matriculated heads of sheep,. Only farmers able to document with an invoice their sales are beneficiaries
11. AP pays for the bee hive, 500 (five hundred) ALL, to farmers with over 50 hive.
12. For intensive breeding of snails AP pays 50% of the value of fingerling, but no more than 500 thousand ALL per ha.
13. Production of olive oil extra-Virginia: AP pays 100 ALL/ liter.
14. AP support through subsidies the interest rates for loans, which will be for agricultural activities or agro-industry ones, for beneficiaries of announced during the 2008 for credit taken from companies that preserve and process agricultural products, the groups or companies of production and those which trade in agriculture, registered in support of law no. 8088, dated 21.3.1996, "For companies of mutual co-operation", to 2 000 000 (two million) All, but not more than 50% interest and no more than three years in a row.
a. Criteria for use of the fund program for agriculture and rural development are:
• Economic Efficiency
• Effectiveness
• Promote working group of beneficiaries
• the co-beneficiaries
• Promote investment in the blocks from many beneficiaries
• Access to market
