Council of Ministers of BIH Holds Its 20th Session

2021-2023 DEVELOPMENT-INVESTEMNT PROGRAMME OF BIH INSITTUTIONS ADOPTED 

The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-proposed Public Investment Programme/ Development Investment Programme of Institutions of Bosnia and Herzegovina for 2021-2023, containing 255 projects, worth total KM 3 billion and 883.71 million.

Out of the sum, KM one billion and 134.51 million refers to 123 on-going projects, KM 86.15 million to 19 approved projects, and KM 2 billion and 663.05 million refers to 113 proposal projects.

Out of total value of all projects, KM 3 billion and 497.62 million refer to investments to capital projects, and KM 392.09 million is for investments to institutional projects.

The value of the projects directly contributing to socio-economic development is KM 2.8 billion.

 

NEGOTIATIONS WITH EIB FOR CONSTRUCTION OF POPRIKUŠA-MEDAKOVO SECTION OF CORRIDOR V c

 

The Council of Ministers of BIH endorsed the Ministry of Finance and Treasury-tabled Initiative, and set a negotiating delegation for conclusion of a Finance Contract between Bosnia and Herzegovina and the European Investment Bank for Corridor V c Poprikuše – Medakovo Project.

The project refers to construction, in the major part of the section, of about 35km long motorway on the Corridor V c, connecting Hungary and Eastern Croatia with Bosnia and Herzegovina and Adriatic Sea. This project is a part of an extensive Corridor V c Construction Programme, aimed to increase functionality of the existing road corridor North-South, along with a simultaneous construction of modern infrastructure and increased road safety and capacity.

The Medakovo-Poprikuše section consists of Medakovo-Ozimice and Ozimice-Oprikuše sub-sections.

The EUR 340 million-worth proposed loan, allocated to the Federation of BIH, includes a six-year grace period and 19 –year repayment term.

 

TO START NEGOTIATIONS FOR CONSTRUCTION OF VLAŠIĆ WINDMILL

 

The Council of Ministers of BIH endorsed the Ministry of Finance and Treasury-tabled Initiative, and set a negotiating delegation for conclusion of a Finance Contract between Bosnia and Herzegovina and the European Investment Bank for Vlašić Windmill Project.

The Project, planned to be constructed in 2020-2024, refers to construction of a 50 MW windmill on the Vlašić Plane, and its power production will serve the needs of BIH electro-energy system.

The EUR 36 million-worth loan, allocated to the Federation of BIH has 20-year term, including a four-year grace period.

 

MEDICAL COOUNTER-MEASURES FOR CONTAINING COVID-19 FREED FROMM INDIRECT TAXES

 

The Council of Ministers of BH took the Ministry for Civil Affairs-proposed decision on freeing from indirect taxes medical counter-measures for containing and prevention of Covid-19 infection.

The decision sets forth freeing from customs, VAT and other indirect taxes on imported vaccines, medicines, medical material and oter medical counter-measures, procured under  the Agreement on Joint procurement fo Medical Countermeasures for BIH, Contract on procurement of vaccines with global Alliance for Vaccines (GVI), concluded on September 18, 220, and other contracts, under which BIH procures medical counter-measures for prevention and containment of Covid-19, during the state of natural or other emergency situation in the territory of BIH.

The Decision regulates procedures and requirements for import of medical counter-measures.

The Ministry of Civil Affairs concluded an Agreement on mutual rights and obligations in respect on procurement of vaccines through an Instrument for global access to vaccines against COvid-19, with the Federal Ministry of Health, Ministry of Health and Social Welfare of Republika Srpska and Department for Health and Other Services of the Brčko District of BIH, on September 15, 2020.

 

13.333 ILLEGAL MIGRANTS REPORTED IN Q1-3

 

The Council of Ministers of BIH adopted separate reports of the Ministry of Security on migrations in Bosnia and Herzegovina for this August and September.

The Foreigners’ Affairs Service got reported 13.333 illegal migrants in the first nine months 2020, which represents a drop for about 40%, compared to the same period in 2019, when 22.211 illegal migrants were reported. The most of illegal migrants reported to the Foreigners’ Affairs Service are the citizens of Afghanistan (3.725), Pakistan (3.045), and Bangladesh (2.551).

Out of total 13.333 illegal migrants reported to the Foreigners’ Affairs Service, 12.588 of them reported their intention to apply for asylum, among which only 209 or 1.66% individuals applied for it. Most of applications for asylum in the first nine months of 2020 were filled by citizens of Iraq, Turkey and Afghanistan.

In September 2020, reported were total 2.041 illegal migrant or 11% less then this August, when 2.290 of them were reported. Decreased was also the number of migrants staying in accommodation centres and in accommodation camp set-up in the Unsko-Sanski Canton. Total 5,946 individuals were accommodated in all accommodation centres, including 1,174 individuals in the “Lipa” campus in Bihać, as at September 30, 2020.

From the outbreak of Covid-19 pandemics, from March to September 30, 2020, 7.086 illegal migrants were sent to preventive isolation facilities, and 332 individuals were sent to symptomatic isolation facilities. Total 295 migrants were tested to the Corona virus, out of which 20 were positive, as at September 30.

 

EUR 751.83 MILLION ODA ASSITANCE LAST YEAR

 

The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-proposed Report “Development Partners Activities Review 2019”.

The Report gives a comprehensive review of project and programmes in the last year, financed by members of the Development Partners Coordination Forum, n addition to status and reforms analyses implemented in Bosnia and Herzegovina in ten sectors.

The Development Partners Coordination Forum members donated total EUR 751.83 million of the official development assistance (ODA) in 2019, of which EUR 258.77 million in grants, and EUR 493.06 million in loans, which is total EUR 68.4 million or 10% moer then in 2018.

The total paid ODA funds in 2019 were EUR 535.86 million, of which EUR 200.66 or 37.4% were grants, and EUR 335.20 million or 62.6% were loans, which represents an increase relative to the previous period. The increase of total ODA paid funds, compared with year 2018 is EUR 108.1 million or 25.3%.

The major lenders were the European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), World Bank, Japan/JICA, and Germany, while the European Union, Germany, United States of America/USAID, Switzerland and UN secured most of grant funds.

The most of the international development support in 2019 was provided to the transport sector (31%), natural environment and climate policy (15%), and competitiveness and innovation (13%).

 

UP-DATED SINGEL LIST OF PRIORITY INFRASTRUCTURE PROJECTS IN BIH

 

The Council of Ministers of BIH adopted a piece of information by the Directorate for European Integrations on up-dating a Single list of priority Infrastructure Projects of Bosnia and Herzegovina, that includes total 143 projects: 25 referring to transport and 118 to natural environment, totally worth EUR 9.44 billion.

The list was formed based on the single list of sector infrastructure projects in the areas fo transport and environmental protection, prepared and agreed to by responsible all-level institutions, engaged in sector work groups. The State Investment Committee of BIH adopted the up-dated list on August 31, 2020.

The adoption of the list enabled the approval of the VBIF grant funds for co-financing fo activities in transport and environmental protection for BIH in amount higher than EUR 211 million in 2015-2020 time span.

A drafting of priority infrastructure projects single list is expected this and next year for energy and social sectors, which would replenish the Single list of infrastructure projects for Bosnia and Herzegovina.

 

AMENDMENT OF AGREEMENT WITH IBRD DUE TO REFERENT RATES TRANSITION

 

The Council of Ministers of BIH defined a Proposal Amendment of a Loan Agreement between Bosnia and Herzegovina and the international Bank for reconstruction adn development 8IBRD), which, together with a Platform for its conclusion, will be sent to the BIH Presidency, along with a proposal for the Minister fo finance and Treasury of BIH as the BIH signatory.

The purpose of the Amendment Agreement is is hte implementation of a transition   in respect to LIBOR (World bank Initiative for transition of referent rates) of the IBRD and International Development Association (IDA).

The roof change will provide borrowers certainty that the economic benefits of agreement made with the World Bank at the moment o signing of the loan and finance agreements will be maintained during the term of the agreements. In the absence of the roof amendment, both borrower and the World Bank would be exposed to unpredictable market risks.

Namely, as at January 1, 2022, the referent banks on London inter-bank market will not be obliged any longer to mach LIBOR, and similar gradual rescinding may be expected for EUROBOR in future. LIBOR and EURIBOR are referent rates for the World Bank financing, and their disappearance or mismatch would create disharmony in financing and landing programmes, thus undermining World Bank’s ability to work on its development programme and offer finances under law price.

Te Initiative for the Word Bank referent rate transition was endorsed by executive directors of the Bank on March 12, 2020, for the purpose of maintenance of balance of financing costs and borrowing to finance the World Bank.

The implementation of the Initiative for the World Bank referent rate transition requires an overall amendment of 13 loan and finance agreements, signed in 1996-2019, modifying general conditions and agreements in order to include provisions on a shift of LIBOR and EUROBOR under circumstances when they are no ore and commercially unacceptable for the World Bank.

 

TO ENABLE EFFETIVE OPERATION OF STANDING ORGANSIATION OF BALKAN MEDICAL TASK FORCE

 

The Council of Ministers of BIH defined a Proposal platform to start a procedure of negotiations for the concluding of an Agreement between the Government of the Republic of North Macedonia and Council of Ministers of the Republic of Albania, Council of Ministers of Bosnia and Herzegovina, Government of Montenegro, Government of the Republic of Serbia, and Government of the Republic of Slovenia on host country arrangements concerning the status of the Standing Organisation of Balkan Medical Task Force and its personnel.

The aim of the Agreement is to enable the Standing Organisation BMTF to perform its duties effectively through a gradual functional operative seat in Skopje.

Estimated finances required for the implementation of the Agreement is EUR 10,000 annually of the common budget of the BMTF Organisation, and it will be provided from the Ministry of Defence of BIH regular resources planned in the Budget of BIH Institutions.

The Ministry of Defence of BIH is tasked to provide the Proposal Platform to eth BIH Presidency for further procedure, with a proposal for the Minister of Defence of BIH as the BIH signatory thereof.

 

BIH AND TURKEY TO REGULATE REIMBURSABLE JOBS FOR DIPLOMATIC STAFF FAMILY MEMBERS

 

The Council of Ministers defined a Proposal Platform for negotiations for conclusion of an Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the Republic of Turkey on carrying out reimbursable activities by the supported family members of diplomatic mission and consular offices staff.

The Agreement regulates the performing of paid activity in the host country, based on reciprocity and in compliance of the host country legislation.

In the sense of the Agreement, the supported family members are spouse, unmarried children tp 21 years of age, unmarried children enrolled to university and unmarried children physically or mentally handicapped. The supported family members allowed performing reimbursable activities will not enjoy immunity from civil or administrative accountability.

The Ministry of Foreign Affairs of BIH is tasked ot provide the Proposal Platform to the BIH Presidency for further procedure, with a proposal for the Minister of Foreign Affairs of BIH as the BIH signatory thereof.

 

BIH AND UK TO REGULATE REIMBURSABLE JOBS FOR DIPLOMATIC STAFF FAMILY MEMBERS 

 

The Council of Ministers defined a Proposal Platform for negotiations for conclusion of an Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the United Kingdom of Great Britain and Northern Ireland Republic of Turkey on employment of supported family members of diplomatic mission and consular offices staff.

The Agreement is based on reciprocity principle and compliance of the host country legislation, and it refers to the supported family members of diplomatic or consular staff, and those are children, spouse, unmarried partner of a diplomatic or consular mission staff-member, if recognised as such by the sending country and Ministry od Foreign Affairs of the host country.

The Ministry of Foreign Affairs of BIH is tasked to provide the Proposal Platform to the BIH Presidency for further procedure, with a proposal for the Minister of Foreign Affairs of BIH as the BIH signatory thereof.

 

BIH AND MONTENEGRO AGREEMENT ON REIMBURSABLE JOBS FOR DIPLOMATIC STAFF FAMILY MEMBERS 

 

The Council of Ministers defined a Proposal Platform for negotiations for conclusion of an Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of Montenegro on carrying out reimbursable activities by certain family members of diplomatic mission and consular offices staff.

Under the Agreement, based on reciprocity and compliance of the host country legislation, the performing of paid activity in the host country would be allowed to spouse/unmarried partner of diplomatic-consular representatives, unmarried children to 26 year of age, i.e. as long as they are on regular education, the individuals allowed to perform reimbursable activities will not enjoy immunity from civil or administrative jurisdiction.

The Ministry of Foreign Affairs of BIH is tasked to provide the Proposal Platform to the BIH Presidency for further procedure, with a proposal for the Minister of Foreign Affairs of BIH as the BIH signatory thereof.

 

TEMPORARY CUT OF CUSTOM TARIFFS

 

The Council of Ministers took the Ministry of Foreign Trade and Economic Relations-proposed decision on temporary suspension and temporary decrease of custom tariffs for import of certain goods until December 31, 2021. The Decision covers 34 tariff marks, and it is only a temporary measure, pursuant to the Law on Custom Tariffs.

Goods covered under the decision are materials and raw materials considered constituent parts used by BIH producers in their own production of final products, for production of export products or they are substitutes for imported products not possible to purchase at sufficient quantity or quality required for production of final products.

 

ACLLOCATED RUTE FEES IN AIR SPACE FOR 2020

 

The Council of Ministers of BIH took the Ministry of Communications and Transport-proposed decision on distribution of revenues earned from service provision of air navigation (route fees) in air space of Bosnia and Herzegovina for year 2020. Decision estimates the total planned revenues from service provision in air navigation was KM 76,840,504, and the BIH Agency for Service provision in Air Navigation (BHANSA) will get KM 76,995,920, including EUROCONTROL costs in amount of KM 4,199,690, while the Directorate for Civil Aviation (DCA) will get KM 2,234,111.

 

The service provider outside Bosnia and Herzegovina, Croatian Aviation Control will get 6,610,473.

 

“PERSPECTIVE” PROGRAMME CONTINUES

 

The Council of Ministers took a decision on amendments and supplements to the Decision on joining funds from the Ministry of Defence of BIH budget to a multi-annual project of transition and care taking of released personnel of the Ministry of Defence of BIH and Armed Forces of BIH – “Perspective” Programme.  The decision was taken for the purpose to create conditions for the continuation, in 2021-2015 time period, of assistance and support of BIH Institutions to released personnel form the Armed forces of BIH and their reintegration from military to civilian life and their new employment.

Previously, the Council of Ministers adopted a piece of information on the “Perspective” Programme and allowed the Ministry of Defence of BIH to implement the multi-annual project in 2016-2025 within the approved resources in amount of KM 2,533,411.

 

TO REGULATE PROCEDURES FOR DOPING CONTROL PAYMENT

 

The Council of Ministers took a decision on kind, level and way of payment of compensation to Anti-Doping Control Agency of Bosnia and Herzegovina, which sets procedures of applying, kind of anti-doping control compensation, level of it, way of payment, and other elements.

The Anti-Doping Control Agency is responsible to apply conventions, VADA Codex and the International Olympic Committee rules, International Para-Olympic Committee and international sports federations, which organise competitions and sports events in BIH, and which, in accordance with the International Anti-Doping Convention, seek reimbursable doping control services.

 

REGULATION OF OFFICE OPERATIONS IN INSITUTE FOR CRIMINAL SANCTIONS EXECUTION OF BIH

 

The Council of Ministers took the Ministry of Justice of BIH-proposed decision on office operations in the Institute for Execution of Criminal Sanctions, Detention and Other Measures of Bosnia and Herzegovina. The aim is to regulate the office operations in the Institute in a way that provides for timely and smooth relevant specific operations.

 

VIDEO SURVEILANCE OF BORDER CROSSINGS

 

The Council of Ministers of BIH took note of a piece of information of the Ministry of Security on measures taken for setting-up a video-surveillance system at border crossings, to be provided to the BIH Parliamentarian Assembly House of Representatives.

The piece o information says that the BIH Border Police n integrated vide-surveillance system was set up, which covers 50 international border-crossings and seats of all Birder Police organisational units. The system is relevant for further operations of the BIH Border Police, as well as for a decrease of possibilities for corruptive actions.

 

KM 150,000 APPROVED FROM THE CURRENT BUDGET RESERVE IN FIRST HALF OF 2020

The Council of Ministers of BIH adopted a piece of information by the Ministry of Finance and Treasury on the allocation and use of funds from current reserves for I-VI 2020, and will pass to the BIH Parliamentarian Assembly.

According to it, out of planned KM 1,714,000 current reserves in the first half of the year, approved was KM 150,000.

Thus, Km 50,000 was approved to the Ministry of Foreign Affairs for evacuation of BIH citizens from the Republic of Italy, who were necessary to have organised trip back to BIH for the reason of their health protection due to Covid-19 pandemics., and the Ministry of Security got KM 100,000 for support to the Republic of Turkey to recover from earthquake that hit that country in January 2020.

 

NO IRRREGULARITIES FOUND IN FLOUR STAMPS CONTROL

 

The Council of Ministers of BIH adopted a piece of information from the Ministry of Foreign Trade and Economic Relations of BIH on implementation supervision of a regulation on special conditions of registering and marking of marketed flour for January 1-December 31, 2019.

According to authorities from Republika Srpka, Brčko District of BIH and the Federation of BIH, no irregularities were found in control of flour register stamps, and the Regulation provisions were fully adhered to.

 

EIB LOANS TO BIH COMMERCIAL BANKS FOR SUPPORT TO MSMEs

 

The Council of Ministers od BIH confirmed the allocation of the European Investment Bank loans to the Unicredit Bank Ltd. Mostar, Unicredit Bank Ltd. Banja Luka, and Procredit Bank Ltd. Sarajevo is in accordance to a Framework Agreement between Bosnia and Herzegovina and the European Investment Bank.

The European Investment Bank provides loans to the Unicredit Bank Ltd. Mostar, Unicredit Bank Ltd. Banja Luka, and Procredit Bank Ltd. Sarajevo in amount fo KM 65 million for financing of liquidity and qualified investments promoting SMEs, as wel as enterprises of medium market capitalisation, hit by Covid-19 crisis. Load proceeds in amount of Km 25 million are planned for the Unicredit Bank Ltd. Mostar and Unicredit Bank Ltd. Banja Luka, and for the Procredit Bank Ltd. Sarajevo the planned amount fi KM 15 million.

The borrowing commercial banks borne fully all loan repayment risks and financing in targeted sector and ensure the lender all required coverings and guarantees for approval of the loan.

 

88% CONCLUSIONS REALISED

 

The Council of Ministers of BIH implemented 397 out of total taken 452 conclusions in time period from January 1 to June 30, 2020, while 55 conclusions were not implemented.

The Ministries and other institutions are responsible to implement fully conclusions of the Council of Ministers of BIH and inform thereof the Secretariat-General of the Council of ministers as soon as possible, and as to conclusions, the realisation of which requires longer time period for cooperation with other institutions, they should to accelerate their activities on the implementation thereof.

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