Sjednice
Council of Ministers Holds Its 46th Session
02/24/2022
Today’s session of the Council of Ministers defined the Ministry of Communications and Transport-tabled Proposal Platform and negotiating team for conclusion of an Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the Republic of Serbia on financing model and drafting of project-technical documentation, in addition to environment assessment administrative procedures, issuing site permits, and civil construction consents for the “”Hydro-technical and digger works for arrangement of the navigation critical sector - Delta Drina and Sava Rivers”.
This way, Bosnia and Herzegovina and Serbia promote their cooperation in reconstruction and modernisation of the international navigation waterway of Sava River. According to the agreement, the Republic of Serbia will draft the project-technical documentation and finance works on the project, and Bosnia and Herzegovina will issue civil construction permit and other required permits for performance of hydro-technical and digger works in parts of the waterway belonging to BIH.
The Proposal Platform will be provided to the BIH Presidency for further procedure, and the Minister of Communications and Transport will be the BIH signatory thereof, as proposed.
SUPPORT TO PROJECT OF PRIVATE SECTOR EMPLOYMENT
The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-proposed Initiative and appointed a negotiating team for conclusion of a Loan Agreement between Bosnia and Herzegovina and the International Bank for Reconstruction and Development (IBRD) – Second Employment Support Project.
The project targets an increase of employment in private sector, and will be supported by IBRD EUR 39 million loan to BIH, with EUR 14 million allocation to Republika Srpska and EUR 25 million to the Federation of BIH.
The project aims an increase of employment through public calls by the Entity employment bureaus, and priority is employment of youth under 30, insufficiently qualified individuals, vulnerable categories, women, and first time job seekers, while a part of funds was intended to self-employment.
The ultimate term is 32 years with 7-year grace period, and the loan conditions will be specified through the negotiations, upon which the Ministry of Finance and Treasury will provide a draft loan agreement with platform for its conclusion to the Council of Ministers of BIH.
TO ENABLE APPLICATION OF SIMPLIFIED RULES ON ORIGIN OF GOODS
The Council of Ministers of BIH defined a Proposal Basics for conclusion of a Protocol on amendments and supplements to a Free Trade Agreement between countries of the European Free Trade Association (EFTA) and Bosnia and Herzegovina, including amendments and supplements to accompanying bilateral agreements on agriculture, proposed by the Ministry of Foreign Trade and Economic Relations.
The conclusion of the protocol would enable temporary application of alternative rules of origin, contained in the revised PEM Convention, which in the case of BIH - EFTA Free Trade Agreement requires specific technical amendments and supplements. Also, certain amendments and supplements are needed to three accompanying bilateral agriculture agreements, namely, with Switzerland, including with Lichtenstein, Norway and Island.
This, BIH should start application of the revised rules on origin of goods with interested countries, so as to enable to economic actors in BH modernised and simplified rules of origin of goods.
The proposal platform will be provided to the BIH Presidency for further procedure, with a proposal to allow a temporary application of the Protocol, including amendments and supplements to the accompanying three bilateral agreements until the end of the relative ratification procedure; the Minister of Foreign Trade and Economic Relations was proposed for the BIH signatory thereof.
SECURED EUR SIX MIL. GERMAN GRNT FOR SMEs
The session defined both a Proposal Grant Agreement and Amendment No. 8 of February 27, 2006 Finance Agreement between KfW, Frankfurt am Main, and Bosnia and Herzegovina, represented by the Council of Ministers of BIH (Beneficiary), in amount of EUR 6,000,000 for mitigation of Covid-19 effects to micro, small and medium sized enterprises, through the European Fund for Bosnia and Herzegovina (EFBIH), phase 2.
The Proposal Agreement defines an additional grant from the Federal Republic of Germany in amount of EUR six million, provided within the mitigation of Covid-19 effects to MSMEs programme, to be earmarked to the European Fund for Bosnia and Herzegovina.
Simultaneously, the proposed Amendment No. 8 of the KfW-BIH Finance Agreement extends the purpose of funds of the European Fund for BIH to the loan programme for Covid-19 effects mitigation, to be available to micro, small and medium enterprises through banks in BIH.
The Proposal Agreement with Platform for its conclusion will be provided to the BIH Presidency for further procedure, and the Minister of Finance and Treasury was proposed for the BIH signatory thereof.
TO ENABLE MORE EFFECTIVE CUSTOMS OPERATIONS TO BIH ITA
The session defined a Proposal Agreement of Understanding between the Conference of United Nations for Trade and Development (UNCTAD) and Council of Ministers of BIH, aimed at modernisation of customs software solutions in BIH, harmonised with relevant European standards.
The concluded Agreement would enable the Indirect Taxation Office of BIH to get UNCTAD grant in form of the most contemporary software platform for processing of customs declarations (ASYCUDA World), with its technical and functional maintenance, as well as with software versions to follow. Technical preconditions are meant to be created for more effective and higher quality operations of the Indirect Taxation Administration in the area of customs.
The Ministry of Communications and Transport will provide the Proposal Agreement and Platform for its conclusion to the BIH Presidency for tis further procedure, and Chairman of the Council of Ministers Zoran Tegeltija was proposed for the BIH signatory thereof.
ENDORSED LOAN CONTRACT FOR SARAJEVO PUBLIC TRANSPORT PROJECT
The Council of Ministers defined a Proposal Loan Contract (GrCF2 V2 – Sarajevo Public Transport - Mobility) between Bosnia and Herzegovina and the European Bank for Reconstruction and Development, and will provide it to the BIH Presidency.
The EUR 17 million Contract merges two earlier endorsed projects in the Sarajevo Canton, pertaining to reconstruction of tram car pool (EUR 10 million) and procurement of a traffic adaptive managing system facilities (EUR 7 million).
Investing EUR 10 million for purchase of new five tramcars would considerably increase the car pool capacity and improve the quality of public line transport to benefit of citizens, by introduction of relevant European standards, together with improved environment protection and improved beneficiary safety.
In addition, EUR 7 million was intended for a purchase of modern traffic management and monitoring system, including a construction of traffic management centre, in order to follow the situation on communications and take appropriate measures to disburden traffic jams.
The loan was allocated to the Federation of BIH, specifically to the Sarajevo Canton Ministry of Traffic.
The loan term is 15 years, including three-year grace period, and the project finalisation is expected by December 31, 2025.
EUR 2.5 MIL. SIDA GRANT FOR SOLID WASTE MANAGEMENT PROJECT IN ŽIVINICE
The Council of Ministers of BIH defined a Proposal Grant Contract (Regional Solid Waste Project in Živinice) between Bosnia and Herzegovina and the European Bank for Reconstruction and Development, referring to an investment grant by the Swedish International Development and Cooperation Agency (SIDA), worth EUR 2.5 million.
The project is to be funded under an earlier agreed-to EBRD EUR five million loan, in addition to currently approved SIDA EUR 2.5 million grant.
The aim of the project is to support the Municipalities of Živinice, Banovići and Kladanj, and the “Eko-Sep”, Ltd. Živinice Power Company in construction of a regional sanitary depo and recycling garden, which is the relevant project for both environmental improvement and local residents.
The Proposal Grant Contract and its Platform will be provided to the BIH Presidency, and the Minister of Finance and Treasury was proposed for the BH signatory thereof.
TECHNICAL AMENDMENTS OF ‘BLUE WATER’ PROJECT FRAMEWORK AGREEMENT
The Council of Ministers of BIH defined a Proposal Amendment of Framework Loan Agreement for ‘Blue Water’ local water supply project, concluded on May 16, 2018 between the Council of Europe Development Bank and Bosnia and Herzegovina.
The amendment specifies technically the monitoring of procurements and distinguishing of the contract jointly financed by the European Bank for Reconstruction and Development (EBRD) and the Council of Europe Development Bank (CEB) from the contract not financed by the EBRD.
The Framework Loan Agreement between Bosnia and Herzegovina and the CEB for EUR 11 million ‘Blue Water’ local water supply project was signed in mid May 2018, for the aim of ensuring the sustainable use of ‘Blue Water’ spring and safe water for about 250,000 inhabitants in five municipalities of the Federation of BIH. The project total value is EUR 30 million, and other from CEB loan funds, the project is outsourced from EBRD, WBIF/IPF and SIDA, while BIH participated with EUR 4.4 million.
The Proposal Amendment with Platform for its conclusion will be provided to the BIH Presidency for further procedure, and the Minister of Finance and Treasury was proposed for the BIH signatory thereof.
EBRD LOAN ENDORSED FOR OVČARI-MOSTAR NORTH-MOSTAR SOUTH CORRRIDOR V c SECTION
The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-proposed initiative, and appointed a negotiating team for conclusion of a Loan Agreement (Corridor V c: Ovčari – Mostar North – Mostar South Section) between Bosnia and Herzegovina and the European Bank for Reconstruction and Development (EBRD).
The EUR 350 million worth loan with allocation to the Federation of BIH, with 15 year term, including three-year grace period, is directed for construction of the Ovčari – Mostar South motorway on the Corridor V c, to be partitioned to sections Ovčari -Mostar North and Mostar North – Mostar South, respectively..
The Ovčari – Mostar North section consists of three parts and includes Ovčari – entrance to the Prenj Tunnel, Prenj Tunnel, and Prenj Tunnel – Mostar North, long total 35km. Finances were planned to be secured from the European bank for Reconstruction and Development, in addition to the European Investment Bank loan proceeds.
Upon finalised negotiations, the Ministry of Finance and Treasury will provide the Proposal Loan Contract with Platform for its conclusion to the Council of Ministers, according to the Law on Borrowing, Debt and Guarantees of Bosnia and Herzegovina.
CONSTRUCTION OF TRAMWAY LINE ILIDŽA-HRASNICA APPROVED
The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-tabled initiative on negotiations for conclusion of a Loan Contract between Bosnia and Herzegovina and the European Bank for Reconstruction and Development for construction of Ilidža-Hrasnica tramway line.
The EUR 20 million loan will be used for construction of Ilidža-Hrasnica tramway line, which would improve the quality of public transport in the Sarajevo Canton, in addition to environment protection.
The loan term is 15 years with three-year grace period and favourable interest rate. The loan is allocated to the Federation of BIH, specifically the Sarajevo Canton and the implementation unit is the Sarajevo Canton Ministry of Traffic.
The project is at a high preparedness level, since the master project was finalised in 2019, after which property relations were settled ad construction permit received. The total budget of this investment project was assessed at IKM 46 million.
AGREEMENT RATIFICATION ON BIH PARTICIPATION AT EU PROGRAMME HORIZON
The Council of Ministers of BIH defined the Ministry of Foreign Affairs-tabled Proposal Decision on ratification of an international agreement between Bosnia and Herzegovina and the European Union on participation of Bosnia and Herzegovina in the EU Programme Horizon Europa - Framework Programme for Research and Innovations, signed to last December in Sarajevo and Brussels.
The agreement, temporarily in effect until the end of ratification procedure, enables scientific-research institutions in BIH to take part in the Horizon Europa Programme and use their research and innovations potentials.
PROPOSAL RATIFICATION DECISIONS UNANIMOUSLY PASSED IN SECOND ROUND OF VOTE
The Council of Ministers of BIH defined unanimously, in the second round of voting and with nine affirmative votes by the Ministers present, several proposal ratification decisions on four agreements and one contract, all to be passed to the BIH Presidency for a further ratification procedure.
These include the Agreement on Financing 2020 Annual Acton Plan between the European Union, represented by the European Commission, and Bosnia and Herzegovina, represented by the BIH Council of Ministers Directorate for European Integrations; Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the Federal Republic of Germany on performing paid activities of diplomatic or consular officers staff family members; Agreement on Amendments and Supplements to Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of Montenegro on border crossings for border area traffic, and Administrative Implementation Agreement for Social Insurance Contract between Bosnia and Herzegovina and the Czech Republic, as well as Contract between Bosnia and Herzegovina and the Czech Republic on social insurance.
DEMINING IN BIH
The Ministry of Civil Affairs-initiated decision was taken on granting a consent to application extension of a Memorandum of Understanding between the Council of Ministers of Bosnia and Herzegovina and Government of the Republic of Slovenia on International Trust Fund for Demining and Support to Mine Victims (ITF), intended for continuation of smooth funding of demining activities in BIH.
A two-year application extension supports the aims defined under the 2018-2025 BIH Anti-Mine Action Strategy, directed to reduction of mines and increased safety.
BUDGET RESERVE
The Council of Ministers of BIH took a decision to approve funds to the Prosecutor’s Office of Bosnia and Herzegovina from the current reserve January-March 2022.
Under the decision, approved was KM 200,000 for salary correction to the Prosecutor’s Office employees. The BIH Prosecutor’s Office pointed in its request that the funds were planned under the 2022 Budget, still to be adopted.
Simultaneously, the session adopted a decision to approve funds from 2022 current reserve to the High Judicial and Prosecutorial Council of BIH in amount of KM 82,500,000.
The funds are intended for making-up certain fees for expert staff, in accordance with earlier decision of the Constitutional Court of BIH, as well as the correction of salaries thereof, in accordance to the Law on Salaries and Other Emoluments in judicial and legislative institutions at BIH level.
CONSENT TO APPOINTMENETS
The Council of Ministers of BIH granted several consents for appointment of Colonel Saša Nešić for military envoy of the Republic of Serbia to Bosnia and Hrzegovina and Colonel Theoharis Thomaidis for military attaché of Greece to BIH, seated in Sarajevo.
In the second round of vote, a consent was unanimously granted for appointment of Corporal-Sergeant Richard Allancon for assistant defence attaché of the Republic of France with the French Embassy in BIH. Also in the second round o vote, unanimous consent was granted for appointment of Brigadier Gorazd Jurkovič for non-resident attaché of the Republic of Slovenia for Bosnia and Herzegovina, seated in Ljubljana.
EIB LOAN FOR PROJECT FINANCING VIA SANPAOLO BANK
The Council of Ministers of BIH confirmed that a placement of the European Investment Bank loan though Intensa Sanpaolo Bank, Ltd. BIH falls within a Framework Agreement between Bosnia and Herzegovina and the European Investment Bank, regulating the EIB activities in BIH.
The loan worth EUR 20 million of the European Investment Bank is directed to the Intensa Sanpaolo Bank. Ltd. BIH to finance projects in Bosnia and Herzegovina, carried out by SMEs, semi-capitalised enterprises, public sector persons in commitment to generate a higher economic impact and growth.
DECISION ON VACAGION ALLOWANCE
The Council of Ministers of BIH took the Ministry of Finance and Treasury-initiated decision on the level of vacation allowance in Institutions of BIH for year 2022, in accordance with legal obligation for its adoption.
The level of vacation allowance will be KM 300, at the same level as in previous years, despite earlier requests by relevant trade unions for increase thereof.
The decision is in line with the Council of Ministers policy from 2016 on curbing-up public spending to salaries and emblements to employees in the BIH institutions.
VOTE BY HUNGARIAN CITIZENS IN BIH
Upon a proposal by the Ministry of Foreign Affairs, the session granted its consent for organising pooling of citizens of Hungary staying in the territory of BIH, on the occasion of the Hungarian parliamentarian election and referendum.
Hungarian citizens in BIH may vote on April 3, 2022 in the Embassy of Hungary in Sarajevo in time from 6.00 to 19.00 hrs.
SECOND ROUND OF VOTE
The Council of Ministers of BIH, failed, after consultations, to achieve agreement on several items of today’s session agenda, put for the second round of vote, with different ratio of Ministers’ affirmative and negative votes.
Among items not getting consensus there were decisions on amendments and supplements to decisions on multi-annual projects, amendment and supplement to Decision on Visas, Proposal Decision on appointment of members of the State Committee for Cooperation with UNESCO and related level of reimbursement, list of 14 most successful candidates for members of the BIH Regulatory Agency for Communications Board.
The agenda items took off the agenda previously were a Proposal Decision on costs breakdown for participation of Bosnia and Herzegovina in Expo 2020 Dubai and accompanying piece of information, which were not put on vote. (end)