USAID/Kosovo Economic Governance Activity 2nd Quarterly Performance Report (Year 3)

The Activity has three objectives: (1) Business Environment Improvement, (2) Strengthened Public Financial Management, and (3) Enhanced Strategic Communications. In the area of building legalization, the Activity's primary partner municipalities (Pristina and Graçanicë/Gračanica) continued receiving and processing legalization applications, resulting in an increased number of buildings successfully formalized in the Cadaster. The estimated market value of formalized buildings in the two primary partner municipalities as of September 27, 2021, is 180.8 to 219.8 million Euros, which is double the estimated market value of formalized buildings in the previous quarter. The Activity successfully concluded the Legalization Motivational Campaign in the two primary partner municipalities, resulting in a 296% increase in citizen applications for building legalization. Following the selection of the secondary partner municipalities for Activity legalization support in the previous quarter, the Activity completed its first round of outreach activities in six municipalities. The Activity continued to provide technical assistance and support to all eight secondary partner municipalities by reviewing the administrative process and providing recommendations for improvements on a regular basis. The Activity also continued its successful partnership with the Non-Governmental Organization (NGO) "Voice of Roma, Ashkali and Egyptians", with VoRAE conducting public discussions and information sessions with citizens in twelve municipalities. In trade, the Activity finalized the Ex-Post Evaluation of the Law on Crafts, which clarifies that the law remains mainly unimplemented, with most of the areas covered being regulated by later legislation on consumer protection, business organizations, and other laws. Consequently, both the Ministry of Industry, Entrepreneurship and Trade (MIET) Legal Department and the Activity agreed that the law should be repealed/abolished, following procedural consultations with the Legal Offices of the Prime Minister and the Assembly of Kosovo. To support improvements in the construction permitting process in its primary partner municipalities (Pristina and Graçanicë/Gračanica), the Activity finalized two construction permitting process analyses identifying issues and providing recommendations for municipal administrative improvement. The Activity supported the Ministry of Environment, Spatial Planning, and Infrastructure (MESPI) during preparations for extending the deadline for citizens to submit legalization applications for the final year provided by current law, until September 4, 2021. The Activity also continued supporting MESPI to further refine implementing regulations on legalization to incorporate lessons learned to date in this process. The Activity continued to work closely with the Ministry of Finance, Labor and Transfers (MFLT) to support the implementation of the Kosovo Financial Management Information System (KFMIS) and the Kosovo Macro-Fiscal Projection Model (KMPM). The Activity's efforts in the second quarter of Year 3 resulted in significant progress towards achieving its objectives. The Activity's partnership with the Ministry of Environment, Spatial Planning, and Infrastructure (MESPI) and the Ministry of Finance, Labor and Transfers (MFLT) has been instrumental in supporting the implementation of key reforms. The Activity's work in the area of building legalization has resulted in a significant increase in the number of buildings formalized in the Cadaster, and the Activity's efforts in the area of trade have led to the finalization of the Ex-Post Evaluation of the Law on Crafts.