What will be the priority areas for development in Albania? - New guideline/ Municipalities, obligation to identify territories with potential
The government has approved a new directive that sets out in detail the procedures for identifying and declaring development zones in the territory of municipalities. This directive comes within the framework of the implementation of Law No. 20/2025, “On the Mountains Package”, which aims to promote sustainable economic, urban and tourist development in areas with untapped potential, especially in the mountainous and rural territories of the country.
According to the document, the process of identifying a development area begins at the local level, under the leadership of the mayor, who assigns a responsible technical structure to map potential development areas. This structure must analyze: Territorial and urban trends in the territory of the municipality; Property ownership data from the State Cadastre Agency; The level of existing development and difficulties in issuing construction permits or other development acts.
After completing the analysis, the municipality prepares a complete documentation file that includes the request for the declaration of the development zone, the accompanying report, the map in the KRGJSH system (manual and digital), as well as the list of possible economic or tourist activities that can be developed in the area. The file is then sent to the minister responsible for local government for review and approval.
Referring to the instruction, the Minister of State for Local Government, after receiving the request from the municipality, verifies the content and legal compliance of the documentation and may request clarifications or additions in case of deficiencies. After the final assessment, the Minister decides whether the request will be proposed to the Council of Ministers for the official declaration of the development zone. In case of refusal, the reason must be communicated in writing to the relevant municipality.
The process also includes several central institutions such as the Agency for Support of Local Self-Government, which will serve as a technical secretariat for following the procedures; the State Cadastre Agency, which must provide data on ownership and assist in mapping the areas; the National Agency for the Information Society, which will guarantee the digitalization and online publication of the process.
A new element of this guideline is the requirement for full transparency from municipalities. Each municipality is obliged to publish on its official website all initiatives and documents related to the declaration of development zones, so that the public, the local community and potential investors have access to the information. Municipalities must also ensure that the process of identification and territorial analysis is carried out in accordance with the principles of public consultation, efficiency and transparency.
Also, the new instruction repeals the previous instruction dated June 19, 2025, which regulated the same field, now bringing a more unified and digitalized procedure for all municipalities.
This guideline is already in force, and is expected to create a clear legal basis for the identification and development of areas with economic, tourist and social potential, contributing to balancing regional development and increasing domestic investment.
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