Council of Ministers of Bosnia and Herzegovina Holds Its 57th Extraordinary Session

EUROEPAN INTEGRATIONS: PROPOSAL LAW ON ELETRIC POWER REGULATOR, TRAMISSION AND MARKET IN BIH DEFINED 

The Council of Ministers of BIH defined a Proposal Law on Electric Power Regulator, Transmision, and Market in Bosnia and Herzegovina, with a mark “EI”, as a confirmation of s harmonisation thereof with the relevant EU acquis.

The Proposal Law, welcomed by the Energy Community Secretariat, will be sent to the BIH Parliamentary Assembly for consideration under an urgent procedure, accompanied with a tabular review of its harmonisation with the EU acquis and an opinion from competent institutions. Positive opinions were previously granted by the Governments of the Federation of BIH, Republika Srpska and the Brčko District of BIH.

The aim of the Law is to transpose 16 EU Directives and an Electric Energy Integration Package, with a focus to creation of regulated wholesale electric energy market and establishment of a stock exchange of electric energy in Bosnia and Herzegovina, by which one of preconditions would be met for exemption of our country from application of carbon border adaptation mechanism (CBAM).

The proposed legal solutions correspond to the Growth Plan Reform Agenda, and they imply connecting of Bosnia and Herzegovina electric energy market with those of contracting parties to the European Union Energy Community.

The Proposal Law, tabled by the Ministry of Foreign Trade and Economic Relations, creates a legal framework to enable Bosnia and Herzegovina fulfilment of obligations assumed under both the Contact on Accession to the Energy Community and Stabilisation and Accession Agreement. This opens possibilities for investments attraction to renewable sources of energy and cost-effective decarbonisation of electro-energy sector.

The process is directed to an effective use of produced electric energy and secure procurement in conditions of free competition at the market, as it is aligned with new possibilities of contracted sales of electric energy, in addition to a high level of technical equipping of all key stakeholders.

The Proposal Law was developed by a cross-sector work group that included, other than representatives of the state-level Ministry of Foreign Trade and Economic Relations, competent Entity Ministries, State Electric Energy Regulatory Committee, BIH Independent System Operator, and BIH Electro Transmission, in cooperation with the Energy Community Secretariat.

BASIC SALARY HARMONISED WITH LAW AND COLELCTIVE AGREEMENT

The Council of Ministers of BIH took the Ministry of Finance and Treasury-proposed several decisions on the level of basic salary and of vacation allowance for employees in Institutions of BIH for 2026.

A new basics for salary accounting was set in amount of KM 690.86, as high as the vacation allowance, and it was harmonised with the Law on Salaries and Reimbursements in BIH Institutions and Collective Agreement for Employees in BIH Institutions.

The decisions should be in application over Jan. 1-Dec 31, 2026, and in case the Budget for next fiscal year is not adopted by the end of the current year, the new basic salary will apply from the month following to the day of the Budget adoption.

It is about an increase of base salary in respect to 2025 level of KM 631.50, but it has not been applied yet due to the Budget non-adoption, because of which 2024 base salary of KM 600 is still in application.

USD THREE MIL. GRANT FOR JUST TRANSITION PROJECT IN SELECTED COAL-RICH AERAS IN BIH

The Council of Ministers of BIH defined a Proposal Grant Agreement - Energy Sector Management Assistance Programme under the Roof Multi-Donor Trust Fund 2.0 (Just Transition in Selected Coal-Rich Areas in Bosnia and Herzegovina) between Bosnia and Herzegovina and the International Bak for Reconstruction and Development, as the Programme administrator.

It is a USD 3,000,000-worth grant to co-finance the Just Transition in Selected Coal-Rich Areas in Bosnia and Herzegovina Project.

The grant funds will be allocated to the Federation of Bosnia and Herzegovina.

The Proposal Grant Agreement, with Platform for its conclusion, will be sent to the BIH Presidency for further procedure, and the Minister of Finance and Treasury will act as the BIH signatory thereof.

DRAFT DEVELOPMENT-INVESTMENT PROGRAMME OF BIH INSTITUTIONS ADOPTED

The Council of Ministers adopted a Draft Programme of 2026-2028 Public Investments/Development-Investment Programme (PJI/RIP) of Bosnia and Herzegovina Institutions, developed by the Ministry of Finance and Treasury.

The Draft holds data on 281 projects of total value of KM three billion and 362.04 million, of which KM 980.45 million refers to 122 on-going projects, KM 135.96 million to 25 approved projects, and KM 2 billion and 245.63 million to 134 projects-candidates.

All the Council of Ministers of BIH institutions should up-date their project data in line with all amendments, including changes in the process of BIH Institutions 2026 Budget drafting, after which the Ministry of Finance and Treasury will send the 2026-2028 Draft Programme PJI/RIP of BIH Institutions to the Council of Ministers for adoption.

The PJI/RIP of BIH Institutions is a planning instrument to enable better use of budget resources and better access to foreign sources of finance for multi-annual projects.

PERMANENT AMFT COORDINATION BODY

The Council of Ministers of BIH took the Ministry oof Security-tabled decision on setting-up a Permanent Coordination Body for prevention of money laundering and financing of terrorism, in addition to prevention of mass destruction arms proliferation in Bosnia and Herzegovina, for the aim of an effective implementation of the Anti-Money Laundering and Financing of Terrorism Law and for improvement of related international cooperation, in accordance with MONEYVAL recommendations.

It is a standing cross-sector body of the Council of Ministers of Bosnia and Herzegovina, comprised of representatives of BIH competent bodies, including State-level and Entity Ministries and the Brčko District of Bih institutions in security, justice, finance, foreign affairs and interior and trade sectors.

Members and alternate members of the Coordination Body are, among others, representatives of the High Court and Prosecutorial Council of BIH, Chief Prosecutor’s Office of BIH, police and law implementation agencies, Indirect Taxation Administration, Corruption Prevention and Combat Agency, as well as Entity banking, insurance, taxation, judiciary and finance institutions and bodies.

The Permanent Coordination Body drafts, among other things, a comprehensive MLFT and mass destruction arms proliferation in BIH risk assessment, in accordance with international standards, and develops an action plan for prevention and mitigation of defined risks and develops relevant strategy.

KM 50,000 APPROVED FOR DISINFECTION AT BORDER CROSSINGS

The Council of Ministers of BIH took the Ministry of Foreign Trade and Economic Relations-tabled decision on approving KM 5,000 from current budget reserves for disinfection services at border crossings, with an accepted correction made at the session.

The decision was taken for the purpose of prevention of foot and mouth disease in BIH, after this extremely contagious disease reemerged in Europe after a long while.

The funds will be, as the first part, earmarked to the Veterinary Office of Bosnia and Herzegovina, for vehicles disinfection measures on their entry to Bosnia and Herzegovina.

A mandatory testing is in force to foot and mouth disease of all artiodactyls (cattle, sheep, goats, pigs) by ELISA test to foot and mouth disease-causing virus before import to Bosnia and Herzegovina.

MOSTAR READMISSION CENTRE USERS GET KM 80,0000

The Council of Ministers of BIIH took a decision to approve the BIH Institutions Budget current reserve finds to the Ministry for Human Rights and Refugees of BIH, with corrections made at the session.

It is about KM 80,000 approved, as the first part, for meeting humanitarian needs of individuals accommodated in the Ministry for Human Right and Refugees-managed centres. The Ministry for Human Rights and Refugees will pay the funds to the City of Mostar Red Cross account, which use the resources for provision of daily meals for individuals accommodated in the Salakovac Refugee Centre and Mostar Readmission Centre.

APPOINTED PRESIDMENET FO COMPETITION COUNCIL

A decision on appointment of Ninela Salihbašić for President of the Competition Council of Bosnia and Herzegovina, starting from June 26, 2025, was taken, upon tht Competition Council of BIH proposal.

The Competition Council president is appointed regularly in a rotation procedure from among the Council members to one year term.

It followed a decision on annulment of the previous 2025 decision on appointment of Vanja Malidžan for President of the Competition Council, on the grounds of the Banja Luka District Court award, which annulled earlier decision of the Government of Republika Srpska on his appointment for member of the Competition Council of Bosnia and Herzegovina from Republika Srpska. (end)

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