02-12-2024

Strengthening Agricultural Partnership: a Cooperation Agreement signed between Lithuania’s and Albania’s Paying Agencies

In November 2024 a workshop was held at the Albanian Paying Agency (AZHBR) office in Tirana, Albania, with the participation of the representatives of the National Paying Agency (NPA), Lithuania, and the officials from the AZHBR. The two-day event focused on sharing expertise, identifying key challenges, and formalising a framework for future cooperation in sharing experience in management of the EU agricultural funds and Instrument for Pre-accession Assistance in Rural Development (IPARD) programme, thus contributing to the preparation of Albania‘s accession to the EU.

The NPA was represented by the NPA Director Fortunatas Dirginčius and the NPA Deputy Director Tomas Orlickas, and the AZHBR – by its Director Ardita Kuci and her collegues. The joint event started with signing a Cooperation Agreement between NPA and AZHBR, and was then followed by a workshop. The workshop was dedicated to the fraud identification and prevention systems in the field of agriculture and rural development, operating in Lithuania and Albania. This was a collaborative effort aiming to strengthen fraud prevention and improve operational efficiency of both paying agencies.

The goal of the Cooperation Agreement signed between NPA and AZHBR – fostering mutual cooperation between the two agencies, enabling them to exchange knowledge, expertise, and best practices related to the EU rural development programmes.

The exchange of expertise and sharing know-how will cover areas such as rural development measures, direct payments, the Land Parcel Identification System (LPIS), Integrated Administration and Control System (IACS), and risk management, as well as broader EU Common Agricultural Policy issues. Additionally, the Agreement includes collaboration on horizontal issues such as fraud prevention, development of sanctioning systems, and risk analysis.

The Agreement specifies key areas of cooperation, ensuring that with the NPA expertise Albania has the overall management and implementation system in place to use the EU pre-accession funds for rural development. The NPA assistance will support Albania in achieving its goal to join and to successfully integrate into the EU. For that purpose there are specific provisions in the Agreement, that cover joint activities and initiatives, including study visits, conferences, webinars, and workshops to promote continuous learning; joint applications for EU and other international funds; training and capacity building through seminars and on-the-job learning opportunities, contributing to the professional development of staff involved in managing IPARD funds; consultations and expert support on a daily basis.

The Cooperation Agreement signed between NPA and AZHBR marks a significant step in strengthening bilateral relations between Albanian and Lithuanian paying agencies, contributing to the Albania‘s successful preparation for the EU membership. Bottom of Form

The workshop started with introductory sessions. AZHBR outlined its responsibilities related to the IPARD (Instrument for Pre-accession Assistance in Rural Development) programme, while NPA shared insights on its EU fund management practices.

The discussion then moved to mutual cooperation initiatives, embedded in the Cooperation Agreement, that was signed during the event.

The key focus of the workshop was addressing the challenges encountered in the implementation of agricultural support measures. AZHBR presented its fraud detection and prevention system, highlighting issues such as inflated commercial offers, linear pricing practices, and artificial conditions within the "Investments in Physical Assets of Agricultural Holdings" measure. NPA followed with an overview of its fraud prevention mechanisms and highlighted common red flags, including irregularities in the tendering process and fraudulent claims.

Both agencies also exchanged views on the fraud risks within the "Investments in Processing and Marketing of Agricultural Products" measure, with AZHBR pointing out issues such as price inflation, unapproved changes in project location, and failure to comply with visibility rules. NPA shared its approach to preventing fraud and irregularities in this area, emphasizing the importance of rigorous checks and recovery procedures. The discussions focused also on on addressing fraud risks in "Farm Diversification and Business Development" measures. AZHBR presented specific issues related to breaches of contractual obligations and conflicts of interest, while also discussing the identification of red flags in project management. NPA shared its experiences in detecting and preventing fraud in this area, stressing the importance of clear guidelines and stringent monitoring systems. The final session provided an opportunity to discuss how the two agencies could improve their respective fraud prevention systems and identify new avenues for cooperation.

The workshop concluded with a commitment to continue improving fraud prevention and further enhance the efficiency of IPARD management in Albania in accordance with the EU regulations. Both parties agreed that they will continue to collaborate on refining fraud detection techniques, enhancing data-sharing protocols, and ensuring compliance with EU regulations to foster a fair and accountable EU funding system for agriculture and rural development.