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Council of Ministers of BIH Holds Its 23rd Session
09/14/2023
The Council of Ministers of BIH defined a Proposal Financing Agreement under 2021-2027 Cross-Border Cooperation Programme of Bosnia and Herzegovina and Serbia among the European Union, Bosnia and Herzegovina and Government of the Republic of Serbia.
The Ministry of Finance and Treasury should provide the Proposal Agreement with Platform for its conclusion to the BIH Presidency for further procedure, with a proposal for the Director of the Directorate for European Integrations as the BIH signatory thereof.
The Agreement defines funding of Bosnia and Herzegovina – Serbia cross-border activity programme for 2021-2027, of total value of EUR 16,223,529.42, and maximum contribution by the EU should be EUR 14 million.
As for the programme implementation, contribution will be made for projects severally in amount of EUR 2,223,529.42 by project end-users, predominantly from levels of authority, and in case the grant beneficiary is one of Bosnia and Herzegovina institutions funds for co-financing will be planned in the Budget of BIH Institutions.
The Activity Programme is to be implemented in accordance with provisions of the Framework Agreement between the European Commission and Bosnia and Herzegovina on implementation arrangements of the European Union financial assistance to Bosnia and Herzegovina within the Instrument of Pre-Accession Assistance (IPA III) for 2021-2027 time period, and in line with the Framework Agreement between the European Union and the Republic of Serbia within IPA III for 2021-2027.
The Cross-Border Cooperation Programme aims promotion of good neighbourly relations, EU integrations and promotion of social-economic development through joint local and regional initiatives, contributing to mutual cooperation and security.
CONTRACT RATIFICATION PROPOSED FOR BANJA LUKA MEDICAL COMPLEX PROJECT
The Council of Ministers of BIH defined a Proposal Decision on ratification of a Financial Contract among Bosnia and Herzegovina, Republika Srpska and the European Investment Bank (Banja Luka Medical Complex project) (FI No 91.071), and will provide it to the BIH Presidency for ratification procedure.
The Financial Contract was signed on June 1, 2023 in Sarajevo, on May 23, 2023 in Banja Luka, and on 14 June 2023 in Luxembourg, in English language.
The project aimis to extend and improve infrastructure of Medical Complex at Paprikovac in Banja Luka, consisting oof the University Hospital Centre of Republika Srpska, Faculty of medicine and Health care of the University in Banja Luka, and Centre for Education and research. A part of the Project is a Medical Campus, covering the Faculty of medicine and Cenrte for education and Up-Grading, and it includes development and furbishing of a new building for 1,400 students.
The project supports the first phase of a long-term infrastructure development plan for the complex for provision of a high quality health care and medical education services for needs of citizens.
The loan term is 25 years, with six-year grace period, and allocation to Republika Srpska.
The total value fo the project is EUR 105,783 million, of which the EIB loan is EUR 75 million, and domestic contribution and other financial resources are about EUR 30,783 million.
The project should be implemented by the end of 2029.
PROPOSAL RATIFICATION DECISION FOR INVESTEMTN GANT AGREEMENT ON WATER SUPPLY PROJECT
The Council of Ministers of BIH defined a Proposal Decision on ratification of an Agreement on Investment Grant for Support to Water Supply and Sanitation Project in BIH, within the Instrument of Pre-Accession Assistance (IPA II) between BIH and the European Investment Bank, to be provided by the Ministry of Foreign Affairs of BIH to the BIH Presidency for the ratification procedure.
The EUR 6 million Investment Grant Agreement for Support to Water Supply ad Sanitation Project in BIH was signed on May 22, 2023 in Sarajevo and on June 15 in Luxembourg in English language.
The project is a part of programme of renovation of water supply sector, made of a series f municipal investments aiming ensuring water supply and sanitation services in the federation of BIH and Republika Srpska.
The Project components financed by the EIB include Prozor-Rama, Široki Briejg, Mostar, Gračanica, Tešanj, Gornji Vakuf-Uskoplje in the FBIH, and Priejdor, gecko, Šipovo, Brod, Foča, čelinac, Sokolac and Bileća in RS. The projects in FBIH will be in implementation in 2022-2024 and in RS in 2022-2024.
The total value of the project fo rhte federation nof BIH is estimated at EUR 121.3 million, of which the EIB loan is EUR 60 million, with domestic contribution by the Entity and end-users us EUR 40.3 million, in addition to contribution of IPA 2008 of EUR 2.8 million, IPA 2009 of EUR 10.8 million, VIBF resources by the European Commission for the Municipality of Jajce of EUR 1.5 million, SIDA grant of EUR 2.9 million, and the IPA Investment Grant 2018 of EUR 2.9 million.
The total value of the project for RS is estimated at EUR 100 million, of which the EIB loan us EUR 50 million, Entity and end-beneficiaries contribution is EUR 30.9 million, IPA 2010 is EUR 12.4 million, SIDA grant funds are EUR 3.2 million, VBIF funs of the European Commission for the City of Zvornik are EUR 0.6 million, and funds form the IPA Investment Grant are EUR 2.9 million.
MULTI-ANNUAL PROJECT OF VEHICLE PROCUREMENT FOR OSA APPROVED
The Council of Ministers of BIH took a decision to approve multi-annual project “Procurement of official specialised vehicles for needs of Intelligence-Security Agency of Bosnia and Herzegovina” for 2024-2026 time period, of total value of KM six million.
The finances are intended for procurement of 100 passenger cars and two vans.
The multi-annual project will be financed from the BIH Institutions Budget, namely KM 2,500.000 for 2024 and 2025 each, and KM 1.000.000 for year 2026.
FUNDS FOR PROCUREMENT ADN INSTALLATION OF SPECIAL EQUIPMENT FOR OSA
The Council of Ministers of BIH took a decision to approve a multi-annual project “Procurement and installation of special equipment for needs of the intelligence-Security Agency of Bosnia and Herzegovina” for 2024-2026 time period, in total amount of KM 18 million.
The funds are intended for procurement of electronic systems for data collection and up-grading of telecommunications and internet supervision system.
The multi-annual project will be financed form the BIH Institutions Budget, in amount of KM six million for each of the implementation years.
REGULATION ON OFFICIAL VEHICLES FOR SPECIALISED PURPOSES IN AGENCY FOR PROTECTION OF PERSONAL DATA
The Council of Ministers of BIH granted tis consent to a Proposal Regulation on official vehicles for specialised purposes in the Agency for Protection of Personal Data in Bosnia and Herzegovina.
The regulation defines number of vehicles, procurement conditions, use, and officers designated to use them for specialised purposes in the Agency for Protection of Personal Data in Bosnia and Herzegovina. Financial resources in amount of Km 60.000 are required for the regulation implementation, and those will be secured form the BIH Institutions Budget.
PIECE OF INFORMATION ON VISIT BY ECRI COMMITTEE TO BOSNIA AND HERZEGOVINA
The Council of Ministers adopted a piece of information on visit by the European Committee for Fight against Racism and Intolerance (ECRI) to Bosnia and Herzegovina, and tasked the Ministry fir Human Rights and Refugees of BH post the piece of information at its web site.
During its visit to Bosnia and Herzegovina in May, 22-26, 2023, the ECRI Committee held several thematic meetings with representatives of institutions, international community. NGO sector and civil society, and visited the Municipality of Srebrenica and the Elementary School in Nova Kasaba.
Two priority recommendations were highlighted as to improvement of level of human rights protection in Bosnia and Herzegovina, namely a need to find mechanism for implementation of the European Court for human Rights award in file “Sejdić-Finci against Bosnia and Herzegovina” , and implementation of further activities by competent education authorities in Bosnia and Herzegovina to the end of annulling discrimination and segregation in education.
The ECRI Committee will draft a report on monitoring visit to Bosnia and Herzegovina and provide it to Bosnia and Herzegovina authorities for reflection, and to the Council of Europe Committee of Ministers for adoption.
The next ECRI visit is scheduled for early 2027.
PIECE OF INFORMATION AND LETTER OF CONSENT FOR INTERREG 2021-2027 EUROPA PROGRAMME
The Council of Ministers of BIH adopted a piece of information on an Interregional Cooperation Programme, Interreg Europa 2021-2027, concerning signing of a Letter of Consent for Bosnia and Herzegovina participation in the Programme, and tasked the Director of the Directorate for European Integrations of BIH to sign the Letter of Consent.
The Interreg Europa 2021-2027 is a programme of regional cooperation in the European Union, and it represents one of instruments of the European cohesion policy. The focus of the Programme is regional development, and cutting of gaps between the EU regions, in terms of growth, development and quality of life.
The Programme features 27 countries, EU members and Norway and Sweden, and participation was offered this year to additional seven countries, among which Bosnia and Herzegovina.
Singing the Letter of Consent, Bosnia and Herzegovina will agree to the programme contents and obligation of co-financing technical assistance, amounting total EUR 40,510.00 for our country, divided into four instalments though four years.
The Interreg Europa has its budget of EUR 370 million from the European Fund for Regional Development (ERDF), plus EUR 10 million from IPA Programme and EUR five million from the Instrument for Neighbourhood, Development and International Cooperation (NDICI). Partners form Norway and Sweden are financed form their state funds.
After signing of the Letter of Consent, the European Commission will as soon as possible provide a Draft Financial Agreement, to be signed by all IPA and NDICI countries with the European Commission and France, as a seat of the Programme managing body.
SEMI-ANNUAL BUDGET EXECUTION REPORT ADOPTED
The Council of Ministers of BIH adopted a Semi-Annual Budget Execution Report of BIH Institutions and International Obligations of BIH, which will be passed by the Ministry of Finance and Treasury to the BIH Presidency and Parliamentarian Assembly of BIH. The Report will be posted at web sites of the Council of Ministers and Ministry of Finance and Treasury.
The total realised revenues and financial support to BIH Institutions in January-June 2023 were KM 755,378,196 or 57% relative to the planned revenues. Indirect taxes revenues on the Single Treasury Account of the Indirect Taxation Administration were KM 504,293,759, while a transferred surplus from previous years amounted KM 141,100,000.
The total realised expenditures and spending from the BIH Institutions Budget were KM 530,370,579 or 40% relative to 2023 Budget without special purpose funds, i.e. 35% relative to the corrected Budget, which includes additional special purpose funds. The total expenditures and special spending by BIH Institutions were realised in a higher level, compared to the same time period previous year for about KM 96.97 million or 22%. The increase refers to a high implementation of on-going assignments, due to an increase of gross salaries and reimbursements to employees in BH Institutions, based on law and by-laws.
A temporary financing of BIH Institutions in the first quarter of 2023 affected a minimum percentage of expenditures execution with budget users, since they were not able to launch new or extended existing programmes and activities, but rather make-up current necessary obligations and continue realisation of programmes launched last year.
In the first half of 2023, all due obligations based on foreign sovereign debt were made up timely, in total amount of KM 574,652,362.70, out of which the principal payments were KM 470,630,591.80, and interest and other expenditures were KM 104,021,770.90.
According to preliminary data, the level of foreign indebtedness of BIH as at June 30, 2023 was KM 8,182, 908, 233.70.
FOREIGN TRADE OF ARMS, MILITARY EQUIPMENT AND SPECIAL PURPOSE GOODS IN 2019
The Council of Ministers of BIH adopted a Report on issued and denied issuance of permits for foreign trade of arms, military equipment and special purpose goods for 2019, and Report on realisation of issued permits. The Ministry of foreign Trade and Economic Relations of BIH is tasked to provide the reports to the BIH Parliamentarian Assembly.
The report on issued and denied issuance of permits indicates that the Ministry of Foreign Trade and Economic Relations of BIH issued total 681 permits in 2019, and the total value per issued permits was EUR 513,339,325.00, while 11 requests were denied due to incompliance with conditions prescribed by law.
Compared with year 2018, the number of issued permits was increased for 15, the value of which was EUR 67, 185,036.0.
The number of refused requests was decreased from 15 in 2018 to 11 in 2019, and the total value of refused requests in 2018 was EUR 1,717,134.00 and in 2019 it was EUR 4,988,097.00.
According to the report, out of the issued 681 permits, realisation did not take place for 33 of them, while the rest was realised fully or partially.
The total value of realised foreign trade with arms, military equipment and special purpose goods in 2019 was EUR 184,732,646.00.
Based on the value ratio between the issued and realised permits in 2019, it comes that the realisation was 27.78%.
The difference between the value of goods indicated in the Report on issued permits, amounting to EUR 513,339,325.00 and value indicated in the Report on realisation of permits, showing EUR 184,732,646.00, stemmed from the application of an average foreign exchange course as at day of permits issuance, relative to the day of permits realisation, and it also owes to partial realisation of permits and cases when permits were not realised until their original expiry dates.
ANNUAL REPORT ON REALISATION PUBLIC FINANCIAL MANAGEMENT STRATEGY
The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-tabled Annual Report on Realisation of Public Financial Management Strategy in Institutions of Bosnia and Herzegovina, with a belonging Annual Action Plan for 2023.
The document indicates, based on collected data, a progress in realisation of the Public Financial Management Strategy in Institutions of Bosnia and Herzegovina in 2022. The results achievement per pillars (Fiscal Framework, Indirect Taxation Revenues, Budgeting, Budget Execution, Internal Control, External Audit), with satisfactory ratio between realised and non-realised targeted values.
Institutions launched majority of planned activities within original deadlines, while a only a few activities planned for 2022 did not start on teem. It reflects results achievement per pillars and measures, while the major part of partial result achievements was expected, considering a multi-annual feature of activities. A full realisation is expected within the Action Plan deadlines.
The Council of Ministers of BIH adopted a 2021-2025 Comprehensive Public Financial Management Strategy in Bosnia and Herzegovina in mid-2022, which contributed considerably to intensification of planned activities, defined under this strategic document, and is expected to improve public finances with all-level authorities of Bosnia and Herzegovina.
CONSENT TO APPOINTEMNT OF DEFENCE ATTACHÉS OF BELARUS, CANADA NAD SLOVAKIA
The Council of Ministers of BIH granted, upon a proposal by the Ministry of Foreign Affairs, its consent for appointment of Colonel Aleksandar Skarinin for Defence Attaché of the Republic of Belarus for Bosnia and Herzegovina, seated in Budapest.
Also, consents were granted for appointment of Brigadier Andre Salloum for Defence Attaché of Canada for Bosnia and Herzegovina, seated in Belgrade, and for appointment of Colonel Milan Skrutek for Defence Attaché of the Republic of Slovakia in Bosnia and Herzegovina.
APPOINTED DIRECTOR OF DIRECTORATE FOR EUROPEAN INTEGRATIONS
The Council of Ministers of BIH appointed Elvira Habota Director of the Directorate for European Integrations (DEI) of BIH for a five-year term, starting from October 3, 2023, upon proposal by the Agency for Civil Service of BIH.
Also, a decision was taken on release of previous DEI Director Edin Dilberović from the post, effectively on October 2, 2023.
AGENCY FOR ANTI-DOPING CONTROL PEVIOUS DIRECTOR RELEASED FROM DUTY AND NEW ACING DIRECTOR APPOINTED
The Council of Ministers of BIH released Mijo Krešoć from his post of Acting Director of the Agency for Anti-Doping control of BIH, upon his own request. The decision on release takes effect as at day of adoption and will be applied form the day of publishing thereof in the “Official Gazette of BIH”.
Also, Nikola Čića as appointed Acting Director of the Agency for Anti-Doping Control of BHI, until the end of relevant job vacancy procedure, for three months at longest. (end)