USAID Transparent, Effective and Accountable Municipalities Activity in Kosovo Quarterly Performance Report April – June 2021

The project aims to improve procurement effectiveness and transparency by providing comprehensive assistance to all 38 Kosovo municipalities, with more intensive coaching and mentoring in a selected sub-set of 15 focus municipalities. At the central level, USAID TEAM works closely with national-level actors, including the Ministry of Finance, the Public Procurement Regulatory Commission, the National Audit Office, the Procurement Review Body, and the Anti-Corruption Agency. Civil society also plays a key oversight and watchdog role, exposing corrupt practices and working with citizens and local governments as a partner in the process of procurement modernization. The project is organized around three main components and a support fund. Component One focuses on developing, refining, and rolling out models for transparent and accountable municipalities. This component assists local governments in carrying forward anti-corruption reforms, particularly around public procurement, in all 38 municipalities. Through coaching, mentoring, and the introduction of new systems and enforcement mechanisms, USAID TEAM works to increase the capacity of municipal procurement managers, contract managers, internal auditors, and other public officials involved in the procurement cycle. Component Two engages the central level in addressing municipal corruption within the procurement process. USAID TEAM works to increase the capacity of central-level institutions to target municipal corruption, strengthening coordination mechanisms between the central government and municipal internal audit units to detect and address procurement weaknesses. The project also increases the capacity of the Public Procurement Regulatory Commission, especially its Information Technology team, to ensure the proper long-term and sustainable operation and maintenance of the e-Procurement system. During the reporting period from April to June 2021, USAID TEAM made significant progress in implementing its activities. Component One achieved notable successes, including the completion of a Needs Gap Analysis and Corruption Vulnerability Assessment in 15 focus municipalities. This assessment identified key areas for improvement in municipal procurement processes and provided a basis for targeted coaching and mentoring. Component Two also made progress, with USAID TEAM working closely with the Kosovo National Audit Office and the Ministry of Finance's Central Harmonization Unit to strengthen coordination mechanisms between the central government and municipal internal audit units. The project also supported the Public Procurement Regulatory Commission in its efforts to ensure the proper operation and maintenance of the e-Procurement system. In terms of indicator performance, USAID TEAM reported progress towards specific indicators, including the development of a comprehensive procurement manual for municipalities and the establishment of a municipal audit committee in each of the 38 municipalities. The project also reported successes in project management, including the completion of a midterm evaluation and the development of a revised work plan. Looking ahead to the next quarter, USAID TEAM plans to continue its activities, focusing on the implementation of the revised work plan and the achievement of specific indicators. The project will also continue to work closely with national-level actors and civil society organizations to promote transparency and accountability in municipal procurement processes.