Press Releases
Council of Ministers of BIH Holds Its 175th Session
07/23/2019
Vijeće ministara Bosne i Hercegovine
The Council of Ministers of BIH took a decision, proposed by the Ministry of Finance and Treasury, on temporary financing of the Institutions of Bosnia and Herzegovina and international obligations of Bosnia and Herzegovina for the time period July – September 2019, in amount of KM 237,500,000, as 1/4 of funds approved for financing of the BIH Institutions in 2018.
The decision approves temporary financing of the BIH Institutions and sets the level of funds intended for this purpose, distribution of expenditures by budget users and continuation of multi-annual projects.
The Council of Ministers of BIH defined a Draft Law on Budget of BIH Institutions this January, and sent it to the BIH Presidency for approval.
“STATE PRISON” STARTS OPERATION ON AUGUST 1ST
The Council of Ministers of BIH took the Ministry of Justice-proposed decision on setting the date - August 1st, 2019 - for the start of operation of the Institute for Execution of Criminal Sanctions of Detention and Other Measures.
This will reduce the expenses the state has to pay to the Entities for guarding prisoners, so the prison will be prepared to receive the first prisoners
Earlier, a decision was made on termination of activities of a project Implementation Unit for construction of the Institute for Execution of Criminal Sanctions of Detention and Other Measures and Managing and Supervising Board thereof.
TO PERPARE A COMPREHENSIVE REPORT ON MIGRANTS
The Ministry of Security will prepare and provide for the next following session of the Council of Ministers of BIH a comprehensive report on migrant situation, accompanied by a proposal concrete measures and activities to be taken to the end of decreasing the migrant in-flow to BIH. Following consideration by the Council of Ministers of BIH, the report will be sent to the BIH Presidency.
MID-TERM DEBT MANAGEMENT STRATEGY BY 2021 ADOPTED
The Council of Ministers of BIH adopted a 2018-2021Mid-Term Debt Management Strategy of Bosnia and Herzegovina, proposed by the Ministry of Finance and Treasury, thus fulfilling one more obligation under the Reform Agenda Implementation Action Plan at BIH level.
The Strategy includes the debt structure breakdown, indebtedness projection, and defines mid-term debt management goals and provides guidelines for their achievement. Its basic aim is to secure funds for financing of needs of the State, Entities and Brčko District of BIH, with an acceptable expenditures level of such financing and contingency plans.
ABOUT EUR 14 MIL. SECURED FOR COLLECTION OF WASTE WATERS IN GRADIŠKA
The Council of Ministers of BIH defined a Proposal Financial and Project Agreement between Bosnia and Herzegovina and KfW Frankfurt am Main, worth EUR 10,266,845.46 of grant funds, for collection and treatment of waste waters in Gradiška, in Republika Srpska – phase 1.
Also defined was a Proposal Financial and Project Agreement between Bosnia and Herzegovina and KfW, Frankfurt am Main, worth EUR 3.8 million, for collection and treatment of waste waters in Gradiška in Republika Srpska.
The grant was secured through the Swiss Development Agency SECO, and will be implemented by the German Development Bank KfW, Frankfurt am Main.
The purpose of the projects is to help the city of Gradiška in collection, transport and purification of communal waste waters on environmentally and hygienically appropriate way, implying acceptable expenses, while the ultimate goal is the improvement of living conditions with local citizens and environmental protection.
The Proposal Agreements will be provided to the BIH Presidency for further procedure, and the Minister of Finance and Treasury was proposed for the BIH signatory.
HOUSING FOR ABOUT 2,000 DISPLACED PERSONS AND RETURNEES TO BIH
The Council of Ministers defined a proposal Grant Agreement between the Development Bank of the Council of Europe (CEB) and Bosnia and Herzegovina in relation to the Regional Housing Programme – BIH 6 (2018), proposed by the Ministry of Finance and Treasury.
This is the sixth project for BIH within the Regional Housing Programme, for which the Donor Assembly approved a EUR 14.8 million worth grant in June 2018.
The grant funds were intended for the sub-project financing under the BIH Housing Project titled “Reconstruction/Construction of 235 family houses and construction of 380 apartments in residential buildings for displaced persons and returnees to Bosnia and Herzegovina”.
The project aim is to secure 615 housing units for about 2,000 individuals for their return and reintegration. The sub-projects consist of two components: reconstruction/construction of 235 family houses and construction of 380 apartments in residential buildings for refugees, displaced persons and returnees in Bosnia and Herzegovina.
The Proposal Agreement will be provided to the BIH Presidency for further procedure, and the Minister of Finance and Treasury was proposed for the BIH signatory.
BIH ACCEEDS MULTILATERAL CONVENTION CONCERNING BEPS STANDARDS IMPLEMENTATION
The Council of Ministers of BIH defined a Proposal Platform for accession of Bosnia and Herzegovina to a Multilateral Convention on measures implementation within double taxation avoidance for prevention base erosion and profit shifting (BEPS).
The Multilateral Convention is the best way to implement minimal BEPS standards for tackling against DTA misuse and improvement of disputes solving, while it offers to countries flexibility in terms of accommodating these standards.
The Proposal platform will be provided to the BIH Presidency for further procedure, and the Minister of Finance and Treasury was proposed for the BIH signatory.
“SARAJEVO PUBLIC TRANSPORT” PROJECT PROPOSAL ENDORSED
The Council of Ministers of BIH endorsed the Ministry of Finance and Treasury-proposed Initiative, and designated a negotiating team for conclusion of a Loan Contract between Bosnia and Herzegovina and the European Bank for Construction and Development for a EUR 35 million worth “Sarajevo Public Transport” Project.
The project improves the quality of regular tramway passenger transport up to European standards, increases safety of passengers and operators, as the tramway lines are the core lines of city public transport in Sarajevo, which transports over 200,000 citizens daily, according to the latest data.
The loan term is 15 years with three-year grace period, and funds were allocated to the Federation of BIH.
IPA BIH STATE PROGRAMME WORTH EUR 175 MIL.
The Council of Ministers of BIH adopted a report on IPA 2019 and IPA 2020 State Programmes for Bosnia and Herzegovina, with an accepted suggestion from the Ministry of Finance and Treasury. The programme total value is EUR 175,157,410.
The 2019 IPA State Programme includes projects in the area of public administration and services reform, land administration, statistics, justice, support to participation in EC programmes, energy, transport, education, employment, and general support through the European integrations process, totally worth EUR 81,657,410. The 2020 IPA State Programme cover the areas of public finances management, support to parliaments, security, environmental protection, SMEs digital transformation, trade, intellectual property, education, employment, social policy, and general support to the European integrations process, all of total value of EUR 93,500,000.
The most of funds in the bi-annual period of time should be directed to support to employment and education, for which funds were planned in amount of EUR 30.4 million, in order to support socio-economic situation, adjust the education system to the labour market demands, improve mobility in education, develop inclusion policies, improved employment rates in local communities.
The Directorate for European Integrations under the Council of Ministers of BIH will provide the Proposals 2019 and 2020 State IPA Programmes to the European Commission, which keeps the right of amending thereof in project proposals.
TO IMPLEMENT ACTIVITIES FOR USE OF ASSISTANCE TO PROJECTS IN EUROPEAN REGIONS
The Council of Ministers of BIH adopted a report on a need to use assistance within the Joint Assistance to Support Projects in European Region (JASPERS), with the accompanying conclusions.
The joint assistance to support projects in European region is the European Commission and European Investment Bank Initiative to provide support to EU member-states and other beneficiary states in connection with project preparation for financing from the European structural and investment funds (ESIF Funds), as well as with the Mechanism for Connecting Europe (CEF) and Instrument of Pre-Accession Assistance.
ADOPTED ACTION PLAN FOR EU ACCESSION COMUNICATION STRATEGY IMPLEMENTATION
The Council of Ministers of BIH adopted the Directorate for European Integrations- proposed Council of Ministers Action Plan for Communication Strategy Implementation for public awareness raising on the process of Bosnia and Herzegovina’s accession to the European Union for year 2019.
It is an activities package by the areas of publishing, on-line communications, research, public advertisements and competitions, events and promotion materials, to be implemented by 22 institutions of the Council of Ministers, within deadlines set and with clearly defined success indices for the purpose of improvement of public awareness in BIH on the EU accession agenda.
HARMONISATION OF RESOLUTIONS ON CAR IMPORTS
The Council of Ministers of BIH took the Ministry of Foreign Trade and Economic Relations-proposed decision on amendment of the Decision on limitation of imports of passenger cars and external pneumatic tyres, with an aim of increasing standards of human health and environmental protection; the decision will be supplemented by an opinion from the Indirect Taxation Administration.
This way the decision is being harmonised with the Ministry of Communications and Transport of BIH decision on lowest technical requirements for newly-produced and used cars by homology of car type and specific car, as well as for car parts, devices and equipment in type homologation, which took effect on June 1 this year.
ATTORNEY’S OFFICE INFORMATION ON REQUEST BY CROATIAN POWER UTILITY
The Council of Ministers of BIH took note of Information of the Chief Attorney’s Office of Bosnia and Herzegovina on a request presented by the Croatian Power Utility for an amicable solution to a dispute against Bosnia and Herzegovina in connection with het Croatian Power Utility investment in construction of the Gacko Mine and Thermal Power Plant, after the previous talks of the Croatian Power Utility and Government of Republika Srpska representatives failed to yield results.
The Council of Ministers charged the BIH Attorney’s Office to follow up the dispute and take timely actions to protect the interests of BIH.
The Croatian Power Utility, referring to an Agreement between the Government of the Republic of Croatia and Government of Bosnia and Herzegovina on reciprocal investment promotion and protection and Energy Charter Contract, indicated in its request the pre-war investment to Gacko Thermal Power Plant, situated in the territory of Republika Srpska, for which it seeks form BIH over EUR 100 million. Although no BIH institution took part in any decision-making that preceded the dispute, Bosnia and Herzegovina, as the international personality, has been passively legitimated in the process.
BUDGET EXECUTION
The Council of Ministers of BIH adopted the Ministry of Finance and Treasury a Budget Execution Report of BIH Institutions and International Obligations of BIH, to be provided to both the BIH Presidency and Parliamentarian Assembly by the Ministry and posted to web-site.
The total realised revenues, receivables and finances at disposal to the BIH Institutions last year were KM 986,412,011 and were higher for 4% relative to the planned one. Simultaneously, the total realised expenditures and costs were KM 961,130,923 and were higher for about KM 11.6 relative to the previous year. The increase of expenditures refers to increased current expenditures, grants and transfers, while gross salaries and employees’ benefits remained at the same level as in 2012, i.e. a decision of the Council of Ministers of BIH on a decrease thereof continued to be implemented.
All foreign debt liabilities due in 2018 were serviced timely and in the full amount of KM 955,349,067.69.
The session adopted a Budget Execution Report of the Institutions of Bosnia and Herzegovina and international obligations of Bosnia and Herzegovina for Q I-III 2019, which will be posted at the web-site.
The total realised revenues and support for financing the Institutions of Bosnia and Herzegovina in 2019 QI were KM 212,490,480 or 96% of ¼ planned Budget revenues for 2018.
The total realised expenditures and costs in the BIH Institutions Budget in 2019 QI were KM 199,627,707 and were executed in an amount lesser for about KM 15.9 million or 7% in relation to the same period of the year ago, because of the temporary financing of the Institutions of Bosnia and Herzegovina in 2019 QI and consequent considerably less realisation of capital expenditures in relation to the same period the year ago.
For foreign debt KM 125,988,715 was paid, thus fully servicing all the obligations assumed.
AMENDED DECISION ON BIH CUSTOMS LAW IMPLEMENTATION
The Council of Ministers of BIH took a decision, proposed by the Indirect Taxation Administration, to amend the decision on implementation on the Law on Customs Policy, which shifts the beginning of implementation thereof from August 1, 2019 to January 31, 2020.
Also, the Council of Ministers of BIH supported the acceleration of activities implemented to enable certification of electronic signature, i.e. establishment of customs procedures, primarily electronic transit system, as well as the application of electronic customs declarations on import and export customs procedures. Also, the preparations should be finalised for having a certificate for obtaining a confirmation on fulfilment of security requirements (SSCID certificate), set forth under the Law on electronic Signature.
AGRICULTURE REPORT ADOPTED
The Council of Ministers of BIH adopted the Ministry of Foreign Trade and Economic Relations report for the area of agriculture, food and rural development in Bosnia and Herzegovina for year 2018.
According to the report, Bosnia and Herzegovina, adopting 2018 Rural Development Strategic Plan, made a key breakthrough necessary for the use of the EU pre-accession funds, worth about EUR 30 million, of which about EUR 20 million was intended for farmers and food processing industry, and EUR 10 million to capacity building of institutions responsible for the area of agriculture, food safety, veterinary and phytosanitary affairs and fishery.
The European Commission included Bosnia and Herzegovina to both A and B list of countries being permitted the export of all sorts of milk and dairy products to the European Union market, which will certainly affect the export increase.
However, the agricultural-food sector in Bosnia and Herzegovina last year dealt with problems in trade with agricultural products and solving the contentious trade issues, which, among other things, referred to apples export to the Russian Federation, vine export to the European Union, as well as custom impositions by Kosovo to all products originating from BIH.
TO CONTINUE IMPLEMENTING AGREEMENTS WITH NGOs
The Council of Ministers of BIH tasked the Ministry of Justice to continue implementation of an Agreement on cooperation between the Council of Ministers of Bosnia and Herzegovina and non-governmental organisations in Bosnia and Herzegovina, after it adopted an 2018 implementation report.
The implementation of the Agreement strengthens and create special institutional cooperation mechanisms, improving public policies, designed by the Isntituti0ons of Bosnia and Herzegovina, and transparency and accountability.
For the aim of further strengthening of cooperation with the non-government sector in the second half of 2019, a strategy development was planned, after an Advisory Body of the Council of Ministers of BIH
SUGGESTIONS TO STATE STRATEGY FOR WORK ON WAR CRIMES FILES
The Council of Ministers of BIH concluded that suggestions in connections to revised state strategy for work on war crimes files should be provided to the Ministry of Justice in written form, to be considered for the aim of relevant solution finding in the area, following which the Council of Ministers of BIH will reflect on the strategy.
EUROPEAN COURT FOR HUMAN RIGHTS AWARDS IMPLEMENTATION
The Council of Ministers of BIH will hold consultations concerning the drafting process of an action plan for implementation of the European Court for Human Rights awards in files “Zornić vs Bosnia and Herzegovina”, “Sejdić and Finci vs Bosnia and Herzegovina”, and “Pilav vs Bosnia and Herzegovina”, on which it will reflect in one of the following sessions.
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