Sjednice
Council of Ministers of BIH Holds Its 7th Session
03/30/2023
The Council of Ministers of BIH defined the Ministry of Finance and Treasury-proposed Proposal Finance Contract between Bosnia and Herzegovina and the European Investment Bank, “Vlašić” Windmill Project, with Platform for its conclusion.
The “Vlašić” windmill construction project, will be co-financed by the European Investment Bank in amount of EUR 36 million loan with 20 year term, including four-year grace period. Funds will be allocated to the Federation of BIH, and the Power Utility of Federation of Bosnia and Herzegovina is the Project Implementation Unit.
The project presumes delivery, installation and putting into operation of wind aggregates of installed power of 50 MW, construction of foundations, delivery and installation of electric equipment and transformers for wind aggregates and towers, construction of sub-station of high voltage, construction of access roads, cable tranches, montage site and platforms for cranes, including various consultancy services.
The project realisation is planned for 2024.
TO EXTEND FUDNS WITHDRAWAL DEADLINE FOR POČITELJ-BIJAČA PROJECT ON CORRUIDOR V c
The Council of Ministers of BIH defined a proposal amendment No. 2 to Nov. 11, 2014 Finance Contract - Corridor V c, Počitelj-Bijača Project, between Bosnia and Herzegovina and the European Investment Bank, amended on Sept. 29, 2018, No. SERAPIS No 2013-0476, Contract No FI No 83.975, with Platform for the amendment conclusion.
Under the amendment No. 2, a deadline from funds withdrawal is being extended to October 30, 2024, since funds had not been withdrawn within the previous deadline, Oct. 30, 2022, set by amendment 1. The original deadline was Oct. 30, 2018.
The expected finalisation of works on the Project is June 2023.
FINANCE AGREEMENT FOR CROSS-BORDER COOEPATION BIH – MONTENEGRO 2021-2027
The Council of Ministers of BIH defined a Proposal Agreement to Finance 2021-2027Activity Programme of Cross-Border Cooperation Bosnia and Herzegovina – Montenegro among the European Union, represented by the European Commission, Bosnia and Herzegovina, represented by the Directorate for European Integrations, and Government of Montenegro, represented by the Office for European Integrations.
Bosnia and Herzegovina signed a Framework Agreement on special arrangements for implementation of the European Union financial assistance to Bosnia and Herzegovina on July 18, 2022 within instrument of Pre-Accession Assistance III. The realisation of the Agreement will be made through signing of several finance agreements.
The 2021-2027 Cross-Border Cooperation Programme Montenegro – BIH was signed by the Delegation of European Union on August 18, 2022.
The Finance Agreement provides that out of total estimated Project value of EUR 9,734,117.64, European Union finances EUR 8,4000,000.00, and the difference of EUR 1,334,117.64 will be financed by the grant beneficiaries.
The funds withdrawal term is 12 years from the Agreement taking effect, while the operative execution term is six years from taking force thereof.
The general aim of the 2021-2027 Cross-Border Cooperation Programme Montenegro – Bosnia and Herzegovina is the promotion of good neighbourly relations, incitement of EU integrations, and advancement of social and economic development through joint local nada regional initiatives. The Programme area covers more than 30,022 km2, i.e. 56 municipalities in Bosna and Herzegovina and 14 in Montenegro.
SUPERVISORY BODY FOR IMPLEMNTATION OF REVISED STRATEGY FOR WORK ON WAR CRIME FILES
The Council of Ministers of BIH took the Ministry of Justice-proposed decision on setting-up a new Supervisory Body for implementation of revised Strategy for Work on War Crime Files. Under the Decision, six members, six alternate members and two members without right to vote were designated in the Body.
Designated members of the Supervisory Body are Halil Lagumđija, High Court and Prosecutorial Council; Željko Bogut, Ministry of Justice of BIH; Damir šapina, Federal Ministry of Justice; Viktor Nuždić, Ministry of Justice of Republika Srpska; Zekerija Mujkanović, Judicial Committee of the Brčko District of BIH; and Lejla Čipelj, Ministry of Security of BIH. Alternate members are Saša Sarajlić, HCPC BIH; Renata Kapetanović, Ministry of Justice of BIH; Semir Huremović, Federal Ministry of Justice; Dario Novković, Ministry of Justice of Republika Srpska; Dejan Đurović, Judicial Committee of the Brčko District of BIH; and Mevludin Mujezinović, Ministry of Security of BIH. Members of the Supervisory Body without voting power are Minka Kreho, Court of BIH, and Ivan Matešić, Prosecutor’s Office of BIH.
Chair of the Supervisory Body will be the representative of the High Court and Prosecutorial Council and Deputy Chair will be the representative of the BIH Ministry of Justice. Meetings of the Supervisory Body might be attended by representatives of the OSCE, Prosecutor’s Office of the International Residual Mechanism for Criminal Courts, Office of the European Union, and other international bodies engaged in following judicial bodies’ operations.
All entities implementing measures from the Revised State Strategy for Work on War Crime Files will report regularity its activities to the Supervisory Body. The Supervisory Body will file quarterly activity reports to the council of Ministers of BIH for adoption. The reports might include proposal measures for improvement of realisation degree of individual strategic measures, i.e. the Supervisory Body might give guidelines for improvement of the Revised Strategy.
NEW MEMBERS OF WORK GROUP FOR PASSENGER DATA EXCHANGE SYSTEM
The Council of Ministers of BIH took the Ministry of Security-proposed Decision on amendment of a decision in setting-up cross-agency Work Group for setting-up of passenger data exchange system.
Under the decision, appointed members are: from the ministry of Security of BIH Halida Tihić and Ivan Veselčić; from federal Police Administration Midhat Zukić from International Airport Mostar, Josip Milas and Duško Bunić from Airports of Republika Srpska.
The background for the decision taking is that members of the Work Group were not able or were prevented in performing activities from their competences. Setting-up of passenger data exchange system is a priority measure from the “Integrated Border Management Strategy” and belonging Implementation Plan for 2019-2023.
BIH SMALL AND LIGH ARMS CONTROL COORDINATION BOARD NEW MEMBERS
The Council of Ministers of BIH took the Ministry of Security of BIH-proposed Decision on amendment of a Decision on Appointment Bosnia and Herzegovina Small and Light Arms Control Coordination Board.
Under the Decision, the Coordination Board got new members: Gordana Blagojević, Ministry of Internal Affairs of Republika Srpska; Slavka Zunjić, Police of the Brčko District of BIH; and Arijana Obradović, Ministry of Security of BIH.
The Decision amending the Decision on appointment of Bosnia and Herzegovina Small and Light Arms Control Coordination Board was taken because of changed representing officers in institutions and police forces, and change of Coordination Board members was sought consequently.
Changes were made according to the request, so the Coordination Board is expected to have tis full operability.
The Coordination Board competences are the supervision of the 2021-2024 Small and Light Arms Control Strategy and its Acton Plan implementation, coordination and initiation of activities with competent bodies in BIH, and activities on preparation of a revised Strategy and its action plan.
The Coordination Board for Small and Light Arms Control in BIH is obliged report the annually the realisation of the Strategy and Action Plan goals to the Council of Ministers.
NEW MEMBERS OF BIH AIR SPACE CONTROL COMMITTEE
The Council of Ministers of BIH took the Ministry of Communications and Transport-proposed decision on amendment of a Decision on BIH Airspace Control Committee.
Under the Decision, new members of the Committee are the BIH Ministry of Defence representatives Vladimir Grujić and Edin Čizmić.
SUPPORT TO CONTINUATION OF “PERSPECTIVE” AND “PREVENTIVE”
The Council of Ministers of BIH adopted a piece of information on implementation of a “Perspective” transition and care taking programme of released personnel, in addition to a “Preventive ” mental health and psycho-social assistance in the Ministry of Defence f BIH and Armed Forces of BIH in 2022.
The piece of information reports that over the seven-year long implementation of the “Perspective”, totally assisted were 170 released individuals and KM 498.78 spent. Unused funds from the Budgets for 2016,-2022 in total amount of KM 1,039,220 will be transferred and joined to funds planned for 2023-2025 period of time.
The Law on Amendments and Supplements to the 2018 Law on Service in Armed Forces of BIH shifted the age limit and length of professional service for soldiers (to 40 years of age and 20 years of military service). According to the BIH Armed forces Joint Staff, new age limit will be reached by 131 soldiers in 2023, 191 soldiers in 2024, 202 soldiers in 2025, 199 soldiers in 2026, 2011 soldiers in 2027, and 214 soldiers in 2028, total 1,148 soldiers.
The Ministry of Defence of BIH has been implementing the “Preventive” Project for seven years now, which is directed at mental health protection and psycho-social assistance and relaxation of members of the Ministry of Defence and Armed Forces of BIH.
INTEREST EXPRESSED FOR INCREASE OF VOTING POWER OF BIH IN IDA
The Council of Ministers of BIH adopted a piece of information by the Ministry of Foreign Affairs of BIH on an expressed interest for an increase of voting share of Bosnia and Herzegovina in the International Development Association, and endorsed a relevant Letter of Intent.
The BIH Governor in the World Bank Group is authorised to sign and send the Letter of Intent to IDA, expressing BIH interest for an increase of voting share in IDA based on voluntary increase of payment in total amount of USD 3,000,000.00 within the tenth IDA replenishment for 2022.2025.
The increase of contribution to IDA on voluntary base supports the international standing of Bosnia and Herzegovina and strengthens its position in the Work Bank Group, as well as to increasing its voting power with IDA.
MIGRATION SITUATION IN BIH IN 2022
The Council of Ministers of BIH adopted a piece of information on migrations situation in Bosnia and Herzegovina in 2022, and tasked the Ministry of Security to pass the piece of information to the BIH Presidency, and Parliamentarian Assembly House of Representatives and its Joint Committee for Defence and Security.
The piece of information provides a breakdown of policy and legislation development, activities by bodies responsible for migration management, it presents the most important statistics and challenges in migration management in BIH, as well as Activities Plan measures implementation for effective migrations management in BIH.
The migrations management is one of key 14 priorities BIH needs to fulfil on its European road, following awarding the candidate status.
The new Strategy defines mid-term development, introduces drafted legal amendments in some migration aspects, and adopts the 4th Migrations Profile of Bosnia and Herzegovina,
The number of illegal migrants in BIH territory was increased in 2022, relative to 2021, while the number of asylum requests remained the same.
The opening of the new accommodation centre “Lipa” for accommodation of all categories of migrants at the site acceptable to local community helped closing of three temporary accommodation centres in the Unsko-Sanki Canton.
The strengthening of BIH Institutions contributed to an effective migrations coordination and management system, so two years from its adoption, 75% of total planned actions are in the process of implementation.
The Ministry of Security BIH is charged to provide information on migrations situation in BIH and provide it to the Council of Ministers of BIH quarterly.
CONSULTATIONS WITH EC ON TEMPORARY BAN OF EXPORT OF WOOD ASSORTMENTS
The Council of Ministers of BIH took note of a piece of information from the Directorate for European Integrations of BIH on consultations held with the European Commission regarding the Council of Ministers of BIH decision to ban temporarily export of certain forest wood assortments, wood for heating and wood products.
The piece of information suggests that at September 21, 2022 consultations, the European Commission representatives pointed at procedural failure to adhere to the Stabilisation and Accession Agreement. They said that according to the Agreement Article 40 paragraph 4, Parties may start applying precaution measures needed to address certain situations when circumstances urge for action, with immediate notification of the other Party.
The Ministry of Foreign Trade and Economic Relations representatives presented their arguments and statistics justifying such Decision, and explained the issues causing disturbance in Bosnia and Herzegovina market, including critical products shortages, which were the subject of the decision on temporary ban.
The European Commission will give its formal position on justifiability of referring to the SAA Article 40, and it will provide it after examining the data justifying the adoption of the Decision.
The consultations were attended by the European Commission General Directorate for Neighbourhood and Enlargement, General Direction for Trade, Delegation of EU in BIH, Ministry of Foreign Trade and Economic Relations, Ministry of Foreign Affairs, European Union Mission, and DEIBIH.
EC RECOMEMENDATION FOLLOWING SUB-COMMITE FOR INNOVATIONS, IT SOCIETY AND SOCIAL POLICY 6TH MEETING
The Council of Ministers of BIH adopted the Directorate for European Integrations (DEI) piece of information on the Innovations, IT Society and Social Policy Sub-Committee meeting, held on Oct. 20, 2022.
The European Commission provided a list of recommendations, after the meeting considered issues of the Stabilisation and Accession Agreement implementation, harmonisation of legislation, setting-up strategic framework and strengthening of institutional capacities in the area of IT society and media, social policy and employment, education and culture, and research and innovations. The listed recommendations are ten from the area of IT society and media, 14 from social policy and employment area, 15 from the area of education and culture and four recommendations from the area of research and innovations.
The Council of Ministers of BIH responsible institutions should proceed as to the EC recommendations and report the implementation thereof to the DEI BIH.
The Entity, Cantonal and Brčko District of BIH Governments should also take actions according to the EC recommendations and report it to the DEI.
The DEI BIH is in charge to provide reports it collects to the European Commission.
MACROECONOMIC TRENDS IN 2022
The Council of Ministers of BIH adopted the Directorate for Economic Planning report on macroeconomic trend indices for January-December 2022.
According to a preliminary statistics for 2022, BIH continued the previous year’s economic activities growth trend. In January-September time span, a relative strong real economic growth of 4.4%, was noted, with an increase of physical volume of industrial production of 1.7%in 2022.
Employment data for 2022 are not complete, but in November 2022 an increase of employment was noted for 2.3% relative to the same moth year ago.
An average salary in November 2022 was KM 1,175 and was higher for 14.9% relative to November 2021, with simultaneously continued growth trend of public revenues, as increased for 15.6% in comparison to year 2021.
An increase of foreign exchange was noted in the course of 2022 for 1/3, or KM 10.7 bil., specifically, the export was increased for 25.9% and import for 32.6%, respectively.
REPORT BY COMMITTEE FOR COOPERATION WITH NATO
The Council of Ministers adopted an Activity Report by the Committee for Cooperation with NATO for Jan. 7, 2022 - Dec.30, 2022.
During the reported time period, the Committee held two sessions and unanimously adopted draft “2022 Reform Programme in Bosnia and Herzegovina”. Committee Chairman Josip Brkić held a series of bilateral meetings with highly ranked NATO officials.
IMPLEMENTATIONREPORT ON CONSTRUCTION OF BRIDGE ACCRIOS SAVA NEAR GRADIŠKA
The Council of Ministers of BIH adopted the Ministry of Communications and Transport of BIH-tabled July 1 – December 31, 2022 Implementation Report of an Agreement on Construction of Inter-State Bridge across the Sava River near Gradiška and linking road section to inter-state road E-661, between the Council of Ministers of BIH and Government of the Republic of Croatia.
Since the works planed under the Contract were completed on June 20, 2922, preparations and technical examination of the facility and issuance of needed use permit were made. The issuance of use permits for the bridge and connecting roads in Bosnia and Herzegovina and the Republic of Croatia was finalised on December 27, 2022. Expenditures for the work supervision services by Dec. 31, 2022 were total EUR 1,725,540.57 plus VAT.
ANALYSIS OF BIH FOREIGN TRADE EXCHANGE IN 2022 ADOPTED
The Council of Ministers of BIH adopted the Ministry of Foreign Trade and Economic Relations-tabled analysis of foreign trade exchange of Bosnia and Herzegovina in 2022.
The total goods exchange of Bosnia and Herzegovina in 2022 was KM 46.61 billion. The exported goods were KM 17.97 billion, while the imported goods value was KM 28.64 billion, which produced a foreign trade deficit of KM 10.66 billion. In comparison to the year before, the export increased for 25.9 per cent.
The European Union is still the main foreign trade partner of Bosnia and Herzegovina with 63.3% share in goods exchange, followed by CEFTA countries with 14.6% and other countries with 22.1%. The export to the EU increased in 2022 for 27.2%, relevant to the year before. We exported most in Croatia, Germany, Serbia, Italy, Austria and Slovenia, and imported most from Italy, Serbia, Germany, China and Turkey, wand the major coverage of import by export was with Austria (170.5%), Slovenia (127.7%), Croatia (94.1%), Germany (89.1%), Serbia (77.3%), and Italy (56.1%).
COUNTERING MONEY LAUNDERING AND FINANCING OF TERRORISM
The Council of Ministers of BIH adopted a Supplement to 2022-2024 MLFT Risk Assessment, along with its Action Plan for countering money laundering and financing of terrorism in Bosnia and Herzegovina for 2022-2024.
The risk assessment for money laundering and financing of terrorism, which according to FATF recommendations, represents an international standard, was broken down to eight units continuously addressed by responsible institutions classified in eight groups.
All-level responsible authorities made a comprehensive risk analysis, which presented a level of countering money laundering and financing of terrorist activities in BIH, so that measures being undertaken may correspond the assessed risks.
The Supplement Risk Assessment covers, among other things, threats and money laundering assessments, including vulnerability assessment of insurance companies, banking sector and securities market, as well as risk assessment of financing of terrorism.
Eh Action Plan contains key activities with identified problems, activity holders, needed activities of vulnerability decrease, as well as expected outcomes and related measurements.
The Adoption of the Supplement to 2022-2024 MLFT Risk Assessment in Bosnia and Herzegovina and its accompanying Action Plan for Fight against money laundering and financing of terrorism in Bosnia and Herzegovina for 2022-2024 will have a direct effect to continuation of activities in the Moneyval evaluation process.
2021-2025 MIGRATIONS AND ASYLUM STRATEGY ACTION PLAN ADOPTED
The Council of Ministers of BIH adopted the Ministry of Security-proposed 2021-2025 Action Plan for implementation of the Migrations and Asylum Strategy.
The Action Plan contains seven strategic aims divided into concrete activities and measures to be taken within defined deadlines. The aims cover improvement of comprehensive migrations and asylum policy management, increased state border control effectiveness, more effective illegal migrations management in BIH, improvement of asylum system, fight against smuggling of migrants and human trafficking, as well as support to legal migrations and integration of foreigners legally staying in BIH, and strengthening of coordination mechanisms in migrations management.
ENGAGEMENT OF ARMED FORCES RESOURCES IN ASSISTANCE TO CIVIL BODIES
The Council of Ministers of BIH took note of a Decision on engagement of resources of the Armed Forces of Bosnia and Herzegovina in providing assistance to civil bodies through a temporary engagement of engineering units of the Armed Forces of BHI in the area of Gradiška, adopted by the BIH Presidency on Dec. 21, 2022.
The Decision authorises the Minister of Defence to engage MFBIH on assisting civil bodies in Gradiška area, in coordination with the Ministry of Security of BIH.
The Decision refers to ceding and installation of a prefabricated bridge and engagement of labour for the bridge installation in the area of the town of Gradiška. The authorisation for the engagement of SFBIH will last 12 months, with a possibility of its prolongation.
The Ministry of Defence of BIH should, if needed, secure additional resources for implementation of the Decision, in cooperation with the Ministry of Finance and Treasury.
The Ministry of Defence will report the Decision implementation to the BIH Presidency and Parliamentarian Assembly of BIH. (end)