Council of Ministers of Bosnia and Herzegovina Holds Its 32nd Session

COUNCIL OF MINISTERS ADOPTED WORK PROGRAMME 

 

The Council of Ministers of BIH adopted a 2021 Work Programme, which sets forth an accelerated implementation of necessary legislative, socio-economic and social reforms, prioritising the issue-solving, relevant to citizens. Namely, governance, rule of law, security and prosperity.

The Council of Ministers of BIH was determined programmatically to accelerate the reform processes, so that BIH might be able to start accession negotiations with the EU. The most important task of the Council of Ministers of BIH, pursuant to the 2021 Programme, is to detect,  together with of other authority levels in BIH, timely and adequate measures to protect lives and health of citizens, along with safeguarding  real sector and jobs.

The Council of Ministers’ intention is to continue as an integration factor within BIH, as it proved itself as such to-date, as the relations between the Entity-level authorities and those at the BIH level have been notably improved by way of coordination of joint policies.

Securing financial resources from international financial institutions, the Council of Ministers of BIH, in cooperation with Republika Srpska and Federation of BIH authorities, wants to start-up a major investment cycle in public sector as driver to the private sector. In the light of that, the cooperation with the World Bank will continue, as well as with the International Monetary Fund, European Bank for Reconstruction and Development, and European Investment Bank.

The key reform areas for the coming period of time are tightly linked to priorities set in the BIH Economic Reforms to 2022, adopted by both the Council of Ministers and Entity Governments.

The Secretary-General will provide the relevant Work Programme to the BIH Parliamentarian Assembly for information.

ACCEPTANCE OF CHINESE GRANT OF 50,000 SINOFARM VACCINES

The Council of Ministers of BIH adopted a piece of information on conditions for taking-up a grant of the Peoples’ Republic of China intended for a response and containing of Covid-19 contagious disease, cause by new corona virus (Sars-Cov2), and endorsed a Declaration on taking-up obligations as to admission of granted Covid-19 vaccines, to be signed by the Minister of Civil Affairs of BIH.

This way, a preconditions were created for arrival of 50 thousand vaccine doses to BIH, granted by the Peoples’ Republic of China to Bosnia and Herzegovina.

The distribution thereof was made in end-March by the Council of Ministers, with Republika Srpska getting 18,620, the Federation of BIH getting 30,380, and Brčko District of BIH getting 1,000 doses.

FINANCING ANNUAL ACTION PROGRAMME

The Council of Ministers of BIH defined a Proposal Finance Agreement on Annual Action Programme for Bosnia and Herzegovina for year 2020 between the European Union, represented by the European Commission, and Bosnia and Herzegovina, represented by the Directorate for European Integrations of BIH, with a Platform for its conclusion. The Agreement defines that the European Union will finance EUR 64,520,000, out of total EUR 91,520,000, as worth of the evaluated 2020 Annual Action Programme of BIH. The difference of EUR 27,000,000 refers to BIH co-financing of environment-related projects, by way of the approved EBRD loans for water supply reconstruction projects in six municipalities of the Sarajevo Canton, as well as the reconstruction and extension of water supply of the City of Banja Luka.

The Agreement term is 12 year from the date of signing, while the term of operative implementation is six years.

The 2020 Annual Activity Programme was based on two pillars; democracy and rule of law, and competitiveness and growth, and will be implemented through seven projects in five sectors.

Contracts and agreements under the Agreement will be concluded severally, three years from the date of the Agreement at latest. The Ministry of Finance and Treasury will provide the Proposal Agreement with the Platform for its conclusion to the BIH Presidency for further procedure, together with a proposal for the Director of the Directorate for European Integrations as the BIH signatory thereof.

Earlier, a Framework Agreement was signed on an arrangement for implementation of the European Union financial assistance to Bosnia and Herzegovina under the Instrument of Pre-Accession Assistance (IPA II), which, together signing of the finance agreement, created conditions for the operative realisation of the programme.

FRAMEWORK FOR REALISATION OF SUSTAINABLE DEVELOPMENT AIMS IN BIH ADOPTED

The Council of Ministers adopted a document titled ”Framework for Realisation of Sustainable Development Aims in Bosnia and Herzegovina”, which represents a broader framework for realisation of Agenda 2030 and basics for guiding the current and future strategic planning process of all-level authorities in BIH.

The Framework for realisation of sustainable development aims in Bosnia and Herzegovina was adopted by Governments of Republika Srpska, the Federation of BIH and Brčko District of BIH.

Bosnia and Herzegovina, together with 192 member-countries of United Nations, committed, in September 2015, to implement the Agenda 2030 for sustainable development (Agenda 2030), comprised of 17 aims and 169 goals. The sustainable development aims represent a plan for creating better and sustainable future for the whole world.

Adopting the “Framework for Realisation of Sustainable Development Aims in BIH” proves that all-level authorities in BIH are committed to achieve jointly sustainable development aims, in accordance with their constitutional responsibilities, international principles and human rights standards. A commitment of all-level authorities was stressed to strengthen additionally the strategic planning system and development management, and to work diligently on setting-up a system for a long-term coordination, monitoring and reporting in connection with the Agenda 2030.

NO AGREEMENT ON SPECIAL PROTECTION MEASURES

The Council of Ministers of BIH, with five votes for and three against, failed to reach consensus on taking a decision on special protective measures for import of certain products originating from the European Union countries.

The Council of Ministers will come out on the decision in the second round of vote.

PIECE OF INFORMATION ON PUBLIC INDEBTEDNESS LAST YEAR ADOPTED

The level of public indebtedness of Bosnia and Herzegovina as at December 31, 2020 was KM 12 billion and 154.56 million, of which the public debt was KM 8 billion and 662.66 million or 71.27%, while the internal debt was KM 3 billion and 491.90 million or 28.73%, reads the piece of information of the Ministry of Finance and Treasury, adopted by the Council of Ministers of BIH.

Relative to Dec.31 2019. The public debt increased for KM 943.32 million or 8.41%, of which the foreign debt increased for KM 519.89 million or 6.38%, and internal debt increased for KM 423.43 million or 13.80%. In total indebtedness, The Federation of BIH participates with 51.41%, Republika Srpska with 47.91%, BIH Institutions with 0.52%, and Brčko District of BIH with 0.44%.

The share of public debt of BIH in t2020 GDP was 35.08%, which classifies BIH amongst less indebted counties of the region.

Broken down by structure of the foreign debt by creditors, the major part is to the World Bank – IDA and IBRD with 30.74% share, European Investment Bank with 23% share, International Monetary Fund with 10.48% European Bank for Reconstruction and Development with 7.16%, and Paris Club of Creditors with 6.29% share, which represent 77.87% of total foreign debt.

The BUH foreign debt servicing in 2o20 was KM 771.32 million, of which KM 622.38 million was principle payment or 80.69%, while KM 148.9 million or 19.31% was interest payment. In total amount of BIH foreign debt servicing, the Federation of BIH participates with 63%, Republika Srpska with 33.90%, and Brčko District of BIH and Institutions of BIH with 1.20%, and 0.10%, respectively.

TRGOVNSKA GORA-RELATED ACTIVITIES IN IMPLEMENTATION

The Council of Ministers of BIH adopted the Ministry of Foreign Trade and Economic Relations-tabled Activity Report of the Coordination Body, Expert Team and Legal Team for the issue of storing radioactive waste and worn-out nuclear fuel at Čerkezovac site, Municipality of Dvor, Republic of Croatia.

The report gives a chronological review of activities taken by the Coordination, Expert and Legal teams, earlier formed by the Council of Ministers of BIH for the purpose of preparing a comprehensive expert analysis of the state and impact of possible storage site at Trgovska Gora, and proposing protection measures for citizens of 13 municipalities in BIH in the Una River basin its surrounding area, as well as drafting of BIH interests legal protection strategy.

Taking regard of the newly-created situation with frequent earthquakes in the Republic of Croatia, the Council of Ministers of BIH tasked the Ministry of Foreign Trade and Economic Relations to prepare a proposal decision under which the Expert Team would include experts for regional geology, earthquakes and seismologic research, together with experts for hydromechanics and impact evaluators, in addition to activists from the “Green Team” NGO.

The Ministry of Foreign Affairs of BIH was charged to use its diplomatic-consular network and with an expert assistance by the Coordination Body, and Legal and Expert Teams, work actively on intensification and promotion of cooperation with relevant expert and political representatives of the Republic of Croatia, engaged in the construction of the concern-raising storage, all for the aim of exchange of information and relevant documentation necessary for the work of the Expert and Legal Teams.

The Ministry of Foreign Trade and Economic Relations should cooperate with other responsible institutions, especially the Directorate for European Integrations, in order to intensify contacts with representatives of the European Union in BIH, as well as representatives of the European Commission, towards their more active participation in the coordination processes to provide assistance to the Legal and Expert teams in effective performance of assignments set earlier.

REALISED MORE THAN 60 % ACTIVITIES

The session adopted a piece of information of the Directorate for European Integrations on realisation of the Council of Ministers Action Plan for imp0lementation of a Communication Strategy for public awareness on EU accession process of Bosnia and Herzegovina in 2020.

According to the piece of information, 23 institutions was included in the implementation of the action plan, and they realised 72 out of total planed 117 activities (61.5%), while 21 activities (17.9%) are in the process of realisation, and 24 (20.5%) activities were not realised.

The activities realised are from the area of publication, on-line communication, research, competition ads, competitions, events, and advertising materials.

IMPLEMENTATION OF INTERNATIONAL FINANCIAL CONTRACTS IN 2020

The Council of Ministers of BIH adopted a the Ministry of Finance and Treasury- tabled report on implementation of international financial contracts in 2020, thereby continuing a practice of regular reporting, in order to advance the ultimate effects of the subject projects.

The loan agreements in 2020 were featured by a broader implementation due to intensification of works at the Corridor V c in the Federation of BIH, but also due to the pandemics of corona virus, which has had an effect of speedy approval and implementation of the Rapid Financing Instrument (IMF RFI).

Last year, KM 1.39 billion of loan proceeds were implemented, or 24% of contracted resources, which is a considerable increase relative to 2019, when KM 456.33 million were implemented, or 9.6% of loan funds.

Republika Srpska implemented KM 423.48 million, the Federation of BIH implemented KM 959.54 million, while the Brčko District of BIH implemented KM 6.16 million. At the level of the BIH Institutions, a loan agreement with the Saudi Fund for Development (Reconstruction of Housing Units.) is in implementation.

Simultaneously, KM 9.4 million of grant funds were implemented in BIH, and the major part of it was withdrawn by the BIH Institutions and Republika Srpska. The Federation of BIH has a negative record of grant funds withdrawal, while the Brčko District of BIH, as in earlier years, was not a beneficiary of these grant funds.

US GOVERNMENT-CoMBIH AGREEMENT IN IMPLEMETNATION

The session adopted a report by the Ministry for Human Rights and Refugees on realisation of a Grant Agreement for Development Aims, between the Government of the Untied State of America and Council of Ministers of BIH, which breaks down the funds spending over January-December 2020, and it adopted relevant conclusions proposed by the BIH Council of Ministers Chairman.

The report points at the continued implementation of the US Government-financed Intervention Grant project benefiting eight NGOs manging safe houses, in amount of KM 160,468 specifically for support during the COVID pandemics.

According to data from the safe houses, the number of victims accommodated in safe houses, as well as the number of SOS phone calls last year was increased for about 50% y-o-y. Last year, additional 100k USD was secured for opening of crisis centres for rape victims in BIH, so that the project total value is currently KM 1.912.252 , of which UDAIS contribution is KM 1,494.064 and  the remaining funds is BIH contribution.

The Grant Agreement for Development Aims between the Government of the United States of America and Council of Ministers of BIH, concluded in September 2015, targets to improve functionality and responsibility of relevant institutions and actors in the interest of citizens. The agreement includes capacitating the BIH Gender Agency for solution-finding to gender-based violence.

THE FIFTH MEETING OF SUB-COMMITTEE FOR TRADE, INDUSTRY AND CUSTOMS BETWEEN EU AND BIH

The session adopted a piece of information on holding of the fifth meeting of Sub-Committee for Trade, Industry, Customs, and Taxation between the European Union and Bosnia and Herzegovina. The meeting will be held virtually, on April 22, 2021.

A Discussion Document was adopted for the meeting and consent was given to a proposal Delegation of BIH, while the Directorate for European Integrations should, in cooperation with relevant institutions, take preparatory activities for holding thereof.

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