New Center Saving Businesses Time and Shoe Leather

Albania’s new business licensing procedures have already saved businesses time and shoe leather. In June 2009, USAID and the Government of Albania scored a second-quarter MCC Threshold Program (II) success when they opened the National Licensing Center (Qendra Kobetar e Licencimit or QKL), a new institution, under the Ministry of Economy, Trade, and Energy, aimed at reducing the time, cost and corruption associated with licensing procedures. 

Adopting the one-stop-shop model, QKL allows businesses to apply for licenses in one physical location, sparing them the agony of shuttling among government offices with stacks of notarized documents.  Co-located in the building that houses the National Registration Center –opened in 2007 under the Threshold Program (I) -- the sleek, modern QKL facility is an IT system that combines light-speed connectivity to license approval authorities with silent consent countdowns and features the added transparency of online applications tracking.  The QKL also affords customers clear procedures and published, low fees for their services.  All these measures reduce foot-dragging and petty corruption.

New business licensing procedures adopted in early of 2009 gave the QKL a jump start by shrinking by two-thirds the number of required licenses and establishing criteria for categories of licenses.  USAID and the Government of Albania then worked together to develop and installed an IT system that standardizes applications and award procedures and trained the QKL staff in the new procedures and system.  USAID mounted a visible information campaign complete with billboards and TV spots, and launched a public web portal that disseminates information on license application procedures and award criteria and allows businesses to track the status of their license applications online.  Since opening QKL has processed more than 100 applications for new licenses and are expected to handle a volume of roughly new applications 400 per month.

This represents a significant change in the way Albania does business. At the opening ceremony on June 9, 2009, attended by Albania’s Prime Minister Sali Berisha, MCC Program Officer, Sophia Sahaf, and USAID Albania Director Roberta Mahoney, Ms. Mahoney characterized the new system as a necessary simplification of government that will make it easier for businesses to operate in Albania.

In the coming months, USAID will build QKL capacity, lay the groundwork for QKL branch offices in selected cities, strengthen QKL public information capacities, and reach out to the business community through roundtables.  Software will be refined to add key functions like license renewals and revocations.  USAID contractors will meet weekly with QKL to troubleshoot the IT system and establish relationships with ministries to ensure speedy information flows between QKL and other license approval authorities.

The second stage of the MCC Albania Threshold Program is a two-year, $15.7 million agreement between Albania and the United States, funded by the Millennium Challenge Corporation (MCC), and administered by USAID, which aims to strengthen the rule of law, reduce corruption, and increase public oversight, thereby improving the business environment in Albania through IT solutions and technical assistance.