Sjednice
Council of Ministers of Bosnia and Herzegovina Holds its 42nd Regular Session
07/22/2021
The Council of Ministers of BIH endorsed the Ministry of Finance and Treasury initiative, and appointed a negotiating delegation for conclusion of a Loan Agreement between Bosnia and Herzegovina and the International Bank for Reconstruction and Development for USD 75 mil. Health System Improvement Project.
At the relevant negotiation, the BIH delegation should point out at a need for reduction of the planned, yet too high management and monitoring costs of the Project, amounting to USD 5 million, because the funds might be directed to development needs of health institutions in BIH.
The Project aim the increase of health services quality, as well as finances of BIH health systems, with a more effective management, as the key topics. The funds will be directed to, among other things, the improvement of effectiveness and quality of health service for the benefit of BIH citizens.
It is a soft loan, with 35-year term, allocated to Republika Srpska and the Federation of BIH, and the exact proceeds shares will be agreed during negotiations.
The Ministry of Finance and Treasury of BHI will, after completing the negotiations, provide a Proposal Agreement to the Council of Ministers for consideration.
RECONSTRUCTION OF NEUM-STOLAC ROAD INCLUDED INTO FBIH ROADS MODERNISATION PROJECT
The Council of Ministers of BIH defined a Proposal Amendment 1 to 2016 Finance Contract for Modernisation of Roads in the Federation of BIH, concluded between the European Investment Bank and Bosnia and Herzegovina in Sarajevo and Luxembourg.
The EUR 50 million Contract for modernisation of roads in the Federation of BIH refers to construction of new sections and slow lanes, renewal of concrete layer, elimination of back spots and rehabilitation of tunnels and bridges, including the Crnaja tunnel, for the aim of improvement of safety of road traffic on 35 sections in the federation of Bosnia and Herzegovina, long total 290km.
The Amendment proposes a prolongation of terms for use of the funds by February 23, 2023, while the deadline for completion of works is being extended to November 30, 2022. Over 85% of funds was withdrawn thus far.
The project is being simultaneously restructured by inclusion and financing of the 1.3 km long Neum – Stolac (Vidovo Polje) road reconstruction, and due to impossibility to solve property right issues, certain sub-projects were excluded, namely, Bosanski Petrovac-Drvar, construction of slow lane and the Republic of Croatia/Izačić – Bihać border, round cross-road Kamenica.
The proposal Amendment will be provided to the BIH Presidency for further procedure, with a proposal for the Minister of Finance and Treasury as the BIH signatory.
PROJECT OF WATER SUPPLY AND SANITARY INFRASTRUCTURE RECONSTRUCTION AND DEVELOPMENT CONTINUES IN REPUBLIKA SRPSKA
The Council of Ministers of BIH defined a Proposal Amendment 3 to a Finance Contract concluded between the European Investment Bank, Bosnia and Herzegovina and Republika Srpska in September 2010, with subsequent amendments (water supply and sewage in RS) (fi 25.741 – serapis 2008-0556).
It is a loan worth EUR 50 million, covering 24 municipalities in Republika Srpska, and it will be directed to construction and reconstruction of water supply and sanitary infrastructure for the aim of protection of public health and environment from polluted waters.
The Project includes the protection of financial and operative sustainability of water supply companies and development of local capacities for preparation and management of investment programmes.
the Amendment 3 proposes an extension of deadline for use of loan proceeds until June 30, 2022, and 82% of which was withdrawn to date.
The Proposal Amendment will be provided to the BIH Presidency, and the Ministry of Finance and Treasury is the proposed BIH signatory.
FUNDS WITHDRAWAL FROM PROJECT OF WATER SUPPYL AND DREINAGE OF WASTER TO JUNE 30, 2022
The Council of Ministers of BIH defined a Proposal Amendment 4 to a Finance Contract concluded between the European Investment Bank, Bosnia and Herzegovina, and the Federation of Bosnia and Herzegovina in August 2008 in Luxembourg, with a subsequent amendments (water supply and sewage in the Federation of BIH).
It is a EUR60-million worth Contract for 19 municipalities in the Federation of BIH for water supply nad derain of waste waters project, with more than 76% loan funds withdrawn to date.
Due to delay in a connected project “Watsan BiH””projecting and Development of Facilities for Purification of Waste Water/Drinking Water”, cause by the pandemics cvid-19, the Amendment proposes an extension of deadline for loan funds withdrawal by June 30, 2022.
The Proposal Amendment will be provided to the BIH Presidency with a proposal for the Minister of Finance and Treasury as the BIH signatory.
INITIATIVE OF NATIONAL MINORITIES COUNCIL CONSIDERED
The Council of Ministers of BIH defined a response to an Initiative of the National Minorities Council of Bosnia and Herzegovina, requiring a consideration of a possibility of establishment of a fund at BIH level for assistance to national minorities’ members in emergency situations, like the situation after announcement of Covid-19 pandemics.
The response was prepared by the Ministry of Finance and Treasury and it will be passed to the Joint Committee for Human Rights of the Parliamentarian Assembly of BIH.
NO AGREEEMNT ON MANDATORY APPLICATION OF PREFERENTIAL TREATMENT
The Council of Ministers of BIH, with five votes for and four against, failed to reach a consensus in the second round of vote, concerning a decision on mandatory application of preferential treatment of domestic, proposed by the Ministry of Foreign Trade and Economic Relations.
TO ENABLE TECHNICAL ASUPPORT TO BIH FROM EUROCONTROL
The Council of Ministers endorsed and will pass to the BIH Presidency a Proposal for conclusion of a Special Agreement between EUROCONTROL and authorised state bodies in six FAB CE states for provision of support by EUROCONTROL, following accepting the Ministry of Communications and Transport-piece of information concerning the conclusion of the Agreement.
The conclusion of the Special Agreement creates conditions for Bosnia and Herzegovina to get technical EUROCONTROL support for planning and development of a system and services in air traffic.
Other than BIH, the Special Agreement covers the Republic of Croatia, Czech Republic, Hungary, Slovak Republic, and Republic of Slovenia.
Bosnia and Herzegovina acceded to a FAB CE Agreement in 2011.
PROPOSAL LENDING AGREEMENT BETWEEN AUSTRIA AND BIH
The Council of Ministers of BIH defined a Proposal lending Agreement between the Republic of Austria and Bosnia and Herzegovina.
It is about an Austrian assistance of 135 containers, worth EUR 670,000 for accommodation of persons staying in BIH in the course of migration pressure.
There are 98 residential, nine sanitary, 20 for workers and eight stairs containers, and they will be used for sheltering and for authorised bodies of BIH.
The Proposal Agreement with Platform for the conclusion thereof will be provided to the BIH Presidency for further procedure, and the Minister of Security will be the BIH signatory.
coordination team set-up for safe and controlled return of bih citizens frOm conflict zones in syrIa and iraq
The Council of Ministers took the Ministry of Security-tabled Decision to appoint a coordination team for development of a system and procedures of admission of citizens of Bosnia and Herzegovina from the conflict zones in Syria and Iraq, for the aim of an effective return process and reintegration of the BIH citizens.
The coordination team includes representatives of the BIH Prosecutor’s Office, state Ministries of Security, Foreign Affairs, for Human Rights and Refugees, Civil Affairs, Justice, of the Intelligence-Security Agency, Directorate for Coordination of Police Bodies, and State Investigation and Protection Agency. Among the team members there are also representatives of the Ministries of Interior of Republika Srpska, Federation of BIH and Brčko District of BIH, as well as of the Entity Ministries in charge for health, social welfare and education, in addition members of relevant institutions of the Brčko Disrict of BIH.
The coordination team was appointed as a cross-sector expert body of the Council of Ministers of BIH for development of a system and procedures for safe, humane and controlled return and admission of BIH citizens from the conflict zones of Syria and Iraq, and coordination of the process of their reintegration.
The Ministry of Security will immediately upon the decision-taking summon the first meeting, to be held within next 15 days.
ACTION PLAN ADOPTED FOR STRATEGY IMPLEMETNATION FOR PREVENTION OF PROLIFERATION OF ARMS OF MASS DESTRUICTION
The Council of Ministers of BIH adopted the Ministry of Foreign Affairs-tabled Action Plan for implementation of a Strategy of Bosnia and Herzegovina for prevention of proliferation of arms of mass destruction.
This was preceded by an adoption of the Strategy Implementation Supervisory Body Activity Report 2018-2022.
The Ministry of Foreign Affairs will provide the Action Plan to all responsible institutions in BIH, referred to therein.
PLANNED ROUTE FEES
The Council of Ministers of BIH took the Ministry of Communications and Transport-proposed Decision on defining planned amounts of revenues based on service provision in air navigation (rout fees) in the air space of Bosnia and Herzegovina for year 2021.
This is about the planned resources in total amount of KM 67,722,589, including EUROCONTROL costs in amount of KM 3,991,629.
The beneficiaries of revenues from the route fees are the BIH Air Navigation Service Agency (BHANSA) and Directorate for Civil Aviation of Bosnia and Herzegovina.
Other than those in Bosnia and Herzegovina, beneficiaries of the route fees are the Croatian Control of Air Navigation for service provision in a delegated part of the air space.
KM 1 MILLION FOR BORDER CROSSING OSOJE
The Council of Ministers took a Decision, upon a proposal of the BIH Indirect Taxation Administration, on amendments and supplements to a Decision approving construction and furbishing of the Doljani border-crossing, in addition to a Decision to approve the a project of construction and furbishing of the Osoje border-crossing.
These decisions defined the costs of the multi-annual project of construction and equipping of the border –crossing Doljani to be decreased for KM 1 million, and the reserved funds to be redirected to realisation of the Osoje border-crossing construction and furbishing project.
PIECE OF INFORMATION ON “EXPO” AFTER ADOPTON OF IH INSITUTTIONS BUDGET
The Council of Ministers of BIH will reflect on a piece of information, tabled by the Ministry of Foreign Trade and Economic relations on activities implemented in a view of securing participation of Bosnia and Herzegovina at the World Exhibition “EXPO 2020 Dubai”, after the Parliamentarian Assembly of BIH adopts the Budget of BIH Institutions and International Obligations of BIH for year 2021.
DRINA RIVER CATCHMENT MANAGEMENT IN WESTERN BALKANS
The Council of Ministers of BIH adopted the Ministry of Foreign Trade and Economic Relations-tabled apiece of information on realisation of the Drina River Catchment Management in Western Balkans Project (GEF TF0A2317 and SCCFTF0A2320), indicating that all planned activities were successfully implemented in 2020.
The Project was effective from March 2017 and it was completed on April 30, 2021, while the final deadline for financial transactions under the Project is August 31, 2021.
The aim of the Project is to improve mechanisms and capacities for planning and management of cross-border catchment of the Drina River in the Project participating countries, in addition to an adaptation of climate change. A more effective operations of responsible institutions will yield the increasing of living standard of population around the River Drina catchment.
The total value of the Project is USD 8.4 million, and funds were secured in equal shares of 50% form the Special Fund for Climate Change and Global Fund for Environmental Protection, and it will be distributed proportionally along the territory of the River Drina catchment, namely, to BIH it will be USD 3,375,270.00 (37%), to Montenegro USD 2,721,525 (32%), and to Serbia USD 2,635,625.00 (31%).
As to funds planned for BIH, Republika Srpksa should get USD 1,129,875.00, the Federation of BIH should get USD359,875.00, and the Ministry of Foreign Trade and Economic Relations should get USD 1,885,520.
PIECE OF INFORMATION ON MIGRATIONS FOR APRIL 2021 ADOPTED
The Council of Ministers of BIH adopted a piece of information on situation as to migrations for April 2021, and it will be passed by the Ministry of Security to the BIH Presidency.
In April 2021, the Foreigners’ Affairs Service got reported 1,3881 illegal migrants, which is for15% more than in the previous month. Among migrants, the most numerous are citizens of Afghanistan, Pakistan, Bangladesh and Iran.
An intention to apply for asylum was declared by 1,323 individuals, 14 of them or 1% filled for it.
The Foreigners Affairs Service prescribed in April 61 measure of expulsion, measure of detention for 38 individuals nad restricted movement to 15 individuals.
Total 58 individuals were sent to their countries of origin or to a country accepting them, on voluntarily basis (71%), through the Programme of assisted voluntary return and reintegration (AVRR) 22%, and through a remission agreement.
Total four individuals were returned though the Readmission Agreement with Serbia and Montenegro.
CoM TOOK NOTE OF GRANTS FOR MIGRANTS
The council of Ministers of BIH took note of a donors’ piece of information on granted resources, in equipment and money, for needed support to migrants and asylum seekers in Bosnia and Herzegovina in 2020. The piece of information will be passed to the BIH Presidency. It is about compiled data prepared by donors and international institutions disposing of these resources, since the money is not managed by BIH Institutions.
Through the EU IPA “Special Measures Project for support to response to refugee and migrant situation in BIH“, implemented by the International Organisation for Migrations (IOM) with its partners (UNHCR, UNUCEF and UNEPA), the funds realised from January 1 to December 31, 2020 amounted to EUR 31,207,150, and the vast part of which refers to current expenditures of temporary accommodation centres (43.23%) and cost of provision and preparation of meals in the accommodation centres (23.78%).
Totally spent money for provision of non-food products was 9.84%, for insurance costs 7.55%, and costs incurred by service provision on the part of the Ministry of Security, Foreigners’ Affairs Service, BIH Border Police, Ministry of Interior of the Unsko Sanski Canton in managing migrations was 5.4%, and the rest went to service provision to children 4.8% and other costs 5.76%.
Under the Project “Response to Covid-19 and Challenges for Migrants and Refugees in the Western Balkans”, jointly implemented by IOM and UNHCR, totally EUR 384.050 was spent by IOM in time period April 3-December 31, 2020. The fuds were secured by the EU Service for Foreign Policy Instruments (FPI) through an Instrument for Contribution to Stability and Peace (IcSP).
According to the Danish Refugees Council (DRC) in BIH, the EU Civilian Protection and Humanitarian Assistance (ECHO) spent EUR 4,413,063.09 in 2020 for the project “Secured access to health services and human rights protection for asylum seekers, refugees and migrants”.
In the course of 2020, DRC implemented several projects in BIH, either directly or as an implementation partner to IOM and UNHCR, where grants were made in equipment in total amount of KM 2,151,620.66.
In 2020, UNHCR granted resources, pursuant to a contract on cash support to asylum system, signed with the Ministry of security of BIH, in amount of KM 495,095. Total KM 378,892 were spent in 2020, and unspent funds will be returned to the donor, in accordance with the contract.
INCREASE OF PRODUCTION AND GOODS EXPORT, BUT ECONOMIC STABILISATION REQUIRES INCREASE OF INVESTMETNS AND CONSUMPTION
The Council of Ministers adopted a piece of information by the Directorate for Economic Planning on macro-economic trends in Bosnia and Herzegovina in January-March 2021.
According to the BIH Statistics Agency, in Q1 this year, Bosnia and Hercegovina made an increase of physical volume of industrial production of 7.3% and an increase of goods export of 16.6% relative to the same period of time last year. These are encouraging data in time of global pandemics, despite last year’s low basis (base effect).
However, the stabilisation of economic situation requires recovery of domestic demand (consumption and investments), with employment growth, which was in this quarter lower for about 1.7% relative to the last year’s.
A significant determinant of economic recovery in BIH will be economic trends in the external surrounding, which are not yet at the expected level.
DECREASED TRADE DEFICIT IN Q1 THIS YEAR
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 I-III, 2021.
The total goods exchange of BIH was KM 7.47 billion over the reported period of time. The value of the goods exported was KM 3.06 billion, and that of the goods imported was KM 4.04 billion, giving a foreign trade deficit of KM 1.34 billion. The trade deficit marks a fall of 19.4% relative to the same period of time last year.
The main features of the foreign trade exchange for this period of time were the increase of total foreign trade exchange of 8%, increase of export for 16.6%, increase of import for 2.7%, and an increase of rate of coverage of import by export by 8.3%.
The main foreign trade partner of our country in this period of time was the European Union, which participates in the total volume of goods exchange with 66.3 %, followed by “CEFTA 2006” countries with 13.4%, while the other counties’ share is 20.3%.
AMENDED LAW IMPLEMENTATION
The Council of Ministers of BIH took the Indirect Taxation Administration-proposed Decision on Amendments of the Decision on BIH Customs Policy Law Implementation, which sets the deadline for application of a Decision on Law Implementation extended from August 1, 2021 to January 1, 2022.
It provided a space for adoption of a new law on customs infringements of Bosnia and Herzegovina, as a prerequisite for the new customs regulations to be fully implemented, ensuring simultaneous implementation of the existing law and the Customs Policy Law.
CONTROLLED PROGRESS OF BIH ISNTITUTIONS IN PUBLIC CONSULTATIONS PROCESS
The Council of Ministers of BIH adopted the Ministry of Justice-tabled 2020 report on implementation of rules for consultations in development of legal regulations, which suggests that BHI institutions made steady progress in the process, proving a higher level of proactivity.
BIH Institutions held 543 consultations last year, which is a slight increase in relation to 2019 when 539 consultations were held, and considerable increase in respect to 2019, evidencing 218 of them.
A web-application eKonsultacije was used by 64 institutions, one more than in 2019, with 56 institutions using it in 2018.
All BIH Institutions registered at the web-platform eKonsultacije appointed their respective coordinators and their proxies.
A slight response of the public in the consultations process is one among challenges requiring an action, and it is coupled with the fact that a very few registered legal and natural persons interested for activities of institutions and development of regulations.
Therefore, the Ministry of Justice of BIH will arrange an education effort on rules of consultations in development of legal acts and possibilities of participation in the processes of public policies development via we-platform eKonsultacije.
APPOINTMENTS
The Council of Ministers of BIH appointed Dražen Primorac for Manager of the Institute for Accreditation of BIH, and Vasilije Hamović for his Deputy for the term of five years, as the best ranked candidates, in accordance to the Civil Service Agency opinion.
The session appointed Džemail Ćibo as Manager of the Legislation Office for a five-year term, in accordance with the Civil Service Agency opinion, as the best ranked candidate at the public job vacancy ad.
TO CONTINUE VACCINES SUPPLY PROCESS ALONG WITH EFFECTIVE VACCINATION PROCESS
Today’s session of the Council of Ministers concluded that 1.596.560 doses of vaccines arrived to Bosnia and Herzegovina to-date, and underlined that the number might reach up to 2 million by the end of August, with vaccines arriving from Covax and EU4Health mechanisms, through direct procurement and from grants.
Chairman of the Council of Ministers Zoran Tegeltija stressed that this created conditions for a more extended vaccination of citizens, emphasising that the procurement of additional doses of vaccines for BIH citizens will continued, provided that all procedures set in this process should be complied by.
Chairman Tegeltija urged all relevant authorities in BIH to step-up the process vaccination, which does not follow the dynamics of vaccines arrival to BIH, because of which citizens refer to other countries for vaccination. (end)