Executive Summary

The present Progress Report 4 presents the progress of the Agricultural Land Utilisation Project (ALUP), EuropeAid/120769/D/SER/KOS, funded by the EU through its European Agency for Reconstruction (EAR), implemented by the Ministry of Agriculture, Forestry and Rural Development (MAFRD) and assisted by the consultants consortium comprising GFA and BVVG of Germany and DFFE of Denmark.

The general goal of ALUP is to increase productivity and utilisation of agricultural land. The project aims to achieve this by defining 5 project components (“Results”), which respectively relate to (i) legal and regulatory framework, (ii) land consolidation, (iii) spatial planning and environment, (iv) access to land through improvement of the functioning of the land market, and (v) improved coordination mechanisms. In addition, the project is engaged in the assistance to the Kosovo Trust Agency (KTA/UNMIK) in land privatisation issues. Three pilot areas have been established as a part of three of these project results.

Good progress has been made during the reporting period in all project components. Specifically to be mentioned may be that the Land Market component (Result 4.1) preformed well, both in its land valuation component as well in the lease activities. A particular event was the ALUP Mid-term Actor Workshop, which was successful and provided guidance for the ALUP for its second year. Below, all project results are discussed shortly.

 

Concerning Result 1 (Legal Framework), the reporting period was characterised by a long series of municipal workshops on the Law on Agricultural Land (LoAL) and its Administrative Instructions (AIs), all together 11 workshops in which 18 Municipalities participated. Focus was on the contents of the legislation and the division of responsibilities between Central Government and the Municipalities. In addition, one training session was given to the officials of the MAFRD on the same subject.

In the meantime the 6th AI of the LoAL (on grazing) was prepared and signed by the Vice Minister. All AIs are now available to the MAFRD for distribution and implementation.

During the next quarter ALUP will see the departure of the current Kosovar Legal Expert (LSTE 1-1), We are sad to see him go, but a competent replacement has been arranged. Activities will focus on the completion of the municipal training tour on the LoAL, the complicated legal situation on pollution of agricultural lands will be reviewed and the public awareness campaign- scheduled in autumn - will be designed.

 

In Result 2, Land Consolidation (LC), the pilot scheme Shisman (Gjakovë/Đakovica) is coming to an end. Although interest was there, the eventual result will probably be that no exchange of lands will be accomplished.  The baseline survey in Videja village (Klinë/Klina) was continued. This takes time in this village of mixed population  because of the many absentee land owners and the lack of trust of Serbian land owners in the Pristina based cadastre. Still, prospects do not look bad for voluntary land consolidation.

Further, the issue of incomplete land consolidations in 10 municipalities was taken up. It concerns at least 10.000 (but probably more) ha of prime irrigated lands. During the next quarter an inventory will be made and proposals will be prepared for solving this problem on the longer term.

 

Much attention was spent on the sustainability of the current efforts done, particularly on institutional setting and organisation, and the financing of LC. The effective functioning of the newly established Division for Land Use in MAFRD is most desirable in this context.

Lack of continuity threatens land consolidation in Kosovo. ALUP’s Kosovar experts on LC see their contracts expiring at the end of the next Quarter, resulting in loss of knowledge and capacity. The situation has been analysed and the result has been laid down in Annex 8.2 of this report.

The next Quarter will comprise two activities. First, an intense effort to proceed with Videja pilot project and the second is to support the MAFRD in acting on land consolidation.

 

During most of the Reporting Period no international spatial planner was available  in Result 3, Spatial Planning, due to the departure of the expert from the project. In the meantime adequate replacement has been secured.

The data collection and analysis is almost finished. A set of basic maps has been prepared. In addition, soil and water sampling has been done on prevailing pollution in agricultural lands, which come under regular flooding. It appeared that there is no immediate cause for alarm in Klinë/Klina. The soil maps and the land suitability maps have been completed.

The first draft of the Environmental Action Plan has been prepared, and will be discussed. The first version of the Rural Land Management Plan (RLMP) is not yet prepared due to the changes in staff.

Two workshops were held with the ISP, the first to evaluate the cooperation between ISP and ALUP and progress of work, and the second on the spatial plan for Sharr Mouintain National Park, to be prepared by ISP.

Next period the draft RLMP will become available for discussion. Simultaneously, a basic model will be presented offering a recommended procedure for the preparation of the RLMP and EAP in other municipalities.

 

Result 4.1, Land Market Development comprises two sub-components: leasing of land and land valuation.

Although on this moment  leasing of land is almost exclusively done verbally and per one year, it is envisaged that with increasing profitability of agriculture, safe and legal leasing procedures will be much needed.  For this reason, ALUP prepared several standard lease contracts for a variety of applications. Further, the  paragraphs on lease in the LoAL have been reviewed and some changes were recommended.

A two-day seminar on the valuation of agricultural land was organised by ALUP, in the context of a lager training programme of the Ministry of Economy and Finance (MEF). Number of participants was 43, from municipalities, MAFRD and MEF. As a follow-up selected municipalities will be visited to see and discuss how the acquired insight can be used in practice.

In Klinë/Klina taxation zones of agricultural lands will be identified together with the municipality, and a system of property tax will be proposed. Furthermore, the idea and feasibility of the formation of a Kosovo Real Estate Valuers Association will be investigated.

 

After the concentrated efforts earlier, the activities on Result 4.2,  Dismantling the SOE Sharr Prodhimi  were limited in size during the last reporting period. Meetings were held on the decision how the high pastures should be managed and owned if not sold into private hands. There seems now to be a broad agreement between all stakeholders that the high pastures of the SOE Sharr Prodhimi should be kept in public hands.

Similar to the recommendations of the ALUP expert in this context (December 2006), the proposals by the KTA consultant visiting in January focus on the above scenario. Further, the proposed developments, concentrating on agriculture, tourism and hydropower, are sound. However, it is not yet fully clear whether or not this scenario will indeed be chosen by the Board and eventually by the SRSG.

In principle there is an understanding between ALUP and KTA to assist jointly the municipality in the preparation of a development concept for Dragash/Dragaš, if capacity can be made available by KTA and if decisions are indeed taken on the status of the SOE.

 

The revitalisation of the Inter-ministerial Working Group on the Pollution of Agricultural Lands (WGPol) in the context of Result 5, Inter-institutional coordination is not really successful so far. Although an essential problem in Kosovo and moreover a typical multi disciplinary matter, interest is low and meetings are not well attended. The Permanent Secretary MAFRD was approached to broach this issue in the regular meetings of the Permanent Secretaries and probe interest on that level. Involved in this programme are the MAFRD, the MoH, the MEM, the MESP and several governmental agencies.

No meetings of the Inter-ministerial Committee on Land Administration were held.

 

The issue of Minorities and Gender comprises in the first place the progress in Videja Village on land consolidation. Although progress is made in the baseline survey, it takes time due to the complicated ethnic situation, i.e. a 50-50 % Albanian- Serbian owners with their lands thoroughly mixed. The Serbian owners experience the situation as uncertain, particularly since they are uncertain which cadastre is the “real” Cadastre: the Pristina-based KCA or the Cadastre as kept in Belgrade, and as a consequence are unwilling to change land holdings and registration for fear to lose their lands.

This fear is understood and ALUP will try to react by establishing a concrete and shared perception of the security of ownership provided through the property registers.

No programme is ongoing and/or foreseen in the Northern Municipalities. The project’s efforts to recruit a Serbian rural development expert are not successful so far. No qualified and eligible staff is responding to ALUP’s personnel advertisements.

 

Major issues encountered are discussed in chapter 5.3 in more adequate detail than is possible here. Summarising, the following has our special attention.

Financing and implementation, IPA(RD)

Being about halfway through the project, the consciousness on the need of a follow-up for ALUP and focus on the sustainability and replicability of its results grows. The point addressed here is the availability of funds for the application of ALUP results on a larger scale after termination of the project. ALUP is an implementation project and follow-up has to include investments and if funding cannot be made available, it is feared that these activities will come to a halt with the termination of the project. The role of IPA(RD), featuring high in the ARDP 2007-2013, is essential, but there is confusion about its accessibility.

Sustainability of  the  land consolidation programme

The above unpromising remarks on the financing of a programme of implementation project are the basis of the current main focus of ALUP on sustainability. However, not only the availability of budget for land consolidation (and also for rural spatial planning and land market development) is crucial, but also the capacity of the institutions to take up new tasks adequately. As far as the land consolidation is concerned, the main priority for ALUP is to support the MAFRD in responding to the requests that will be forthcoming, to assist in training the first commission members, to continue to address key issues of methodology and to contribute to identification of donor financing opportunities. A concern is that there is not yet sufficient prospect of the necessary technical and management capacity in the MAFRD to fully and independently implement these first projects.

Rural spatial planning

With the progressing of the rural land management and environmental programme, the lack of a legal basis of this activity starts to become an issue. Of course the Klinë/Klina Rural Land Management Plan and the Environmental Action Plan will be completed in due time, but this initiative should be incorporated in good planning practices in Kosovo. However, there is not a legal basis for  this in the relevant legislation, notably the Law on Spatial Planning, the Law on Environment and the Law on Agricultural Land. Still, it would be very desirable to have such a plan as complementary to the Urban Development Plans, and subordinate to, or as a part of the Municipal Plan.

Future of the assets of the SOE Sharr Prodhimi

Already in the Progress Report 03, the future of the assets of Sharr Prodhimi has been presented under this chapter as a major issue. The uncertainties then voiced are not cleared yet. 

The issue how and to whom KTA will hand over the ownership of these lands (and all other non-privatised SOE lands) after termination of the mandate of KTA remains unclear. Although reportedly the mandate of KTA has been extended for a few months after June 2007, it is the highest time that UNMIK addresses this issue.

Pollution

The issue of pollution of agricultural lands is addressed by ALUP in the context of the LoAL. The Working Group on the drafting of Administrative Instructions, on the advise of  ALUP’s ISTE 1-4 and LSTE 1-1, decided that pollution of agricultural lands should not be addressed by the LoAL but by the Law on Environment since the LoAL is an inadequate vehicle in this respect.

Pollution is a crucial issue in Kosovo. Although hardly any information is available which makes it possible to assess the exact magnitude and extend of the problem, pollution of agricultural lands by mining, industry, agriculture and household garbage is an increasingly prominent problem. It is imperative that the combat of pollution gets the high priority it deserves.

 

On February 8 2007, the Mid-term Actor Workshop was organised, aiming at the appraisal of the results of the first project year and the planning of the second project year. Objective was to evaluate the approach and the progress, to learn from the experiences and to discuss strategic issues, which are relevant for the second year. The workshop was kept rather small, about 70 people were invited, and only those people who in some way or another play their role in the project.


The set up of the programme was threefold:

·           Opening, introduction and short individual presentations by key ALUP experts

·           Discussions in 4 groups on pre-determined strategic questions – more abstract than in daily project practice - resulting in recommendations.

·           Plenary session of the Workshop for presentation and short discussion of the recommendations.

The atmosphere was good and animated, few people left during the workshop, even after lunch, and the inter-active and lively character was appreciated.  The discussion groups comprised the central event, each being charged with a question on a particular aspect of land strategy and its implications for ALUP in its 2nd year. All discussion groups performed beyond expectations and came up with substantial results and recommendations.

 

The Relations with MAFRD continue to be very satisfactory and ALUP makes a point of keeping them like that. Regular informal meetings are held with Mr. Afrim Frrokaj, Head of the Rural Development  Dept., with Mr. Qazim Kukalaj, Permanent Secretary and with  Mr. Binak Krasniqi, Adviser to the Vice Minister.

The cooperation with the Institute of Spatial Planning is fruitful as well and contacts intensified during the past months. Also ALUP maintains friendly and agreeable relations with a number of Agencies, including KTA, KCA, KIA and others

 

Cooperation with other projects has been pursued. Projects to be mentioned here specifically are the IS MAFRD, supporting the MAFRD partly as a follow up of the AMPK, the Sustainable Forest Management Project  and the FAO Land Resources Information System Project.

 

The Project Steering Committee has met on 12 March 2007 under the new chairmanship of Mr. Afrim Frrokaj, Head of the Rural Development. of MAFRD. Further, Mr. Perparim Ameti, Chief Officer KCA, was welcomed as the new member of the SC.