Council of Ministers of Bosnia and Herzegovina Holds Its 79th Session

DRAFT BUDGET DEFINED AND SENT TO BIH PRESIDENCY 

The Council of Ministers of BIH defined unanimously a Draft Law on Budget of BIH Institutions and International Obligations of Bosnia and Herzegovina for year 2017, under which the total revenues for financing of institutions and receivables remain at the level of previous years, in amount of KM 950,000,000.00. The Ministry of Finance and Treasury will forward the Draft Budget Law to the BIH Presidency, responsible for proposing thereof.

The Draft Budget was defined in early November, for the first time, thereby complying to the Council of Ministers of BIH calendar and action dynamics, agreed-to with international financial institutions.

Other than KM 950,000,000.00 intended for financing of BIH Institutions, the budget includes KM 1,011,157,177 for foreign debt servicing.

The Draft Budget is based on the 2017-2019 Global Framework of Fiscal Balance and Policies in Bosnia and Herzegovina, and it follows-up the implementation of austerity measures in the BIH Institution

The total public spending is defined to be at the level allowing real revenues flow for smooth reform implementation.

 

CoM APPROVES SEVERAL MULTI-YEAR PROJECTS

 

The Council of Ministers of BIH took a decision, initiated by the Ministry of Finance and Treasury, approving multi-year project “Projecting, Rehabilitation, Reconstruction and Up-building of ‘Zrak’ Company Facility in Sarajevo” for accommodation of the Directorate for Coordination of Police Bodes.

The amount of KM three million, as required for the reconstruction of “Zrak” facility for accommodation of the Directorate for Coordination of Police Bodies will be secured in 2017, and the multi-year prospect will be implemented in the course of 2017-2019.

Simultaneously, the Council of Ministers took a decision, initiated by the General Affairs Service of the BIH Institutions, to approve a project of purchase of a facility for the needs fof accommodation of BIH Institutions in Sarajevo, and it also took note of a Report non facility purchase procedure.

It is the Union Bank, Ltd. Sarajevo building, of 7,617.00 square meter surface at 6 Dubrovačka St., which total price is KM  22,346,433.66, of which about KM 9 million, earlier secured for this purpose, will be paid in 2016, while the remaining amount will be paid successively over the next four year time, conclusive with year 2020. The purchase of the building will mean annual saving of current KM 1, 7 million rental costs.

The Council of Ministers of BIH took a Decision on Amendment of the Decision approving a project of building purchase for accommodation of BIH Institutions in Mostar, proposed by the Ministry of finance and Treasury.

Also, upon a proposal of the General Affairs Service of BIH Institutions, the Council of Ministers took a decision to approve purchase of a building for accommodation of BIH Institutions in Mostar. With this project realised, annual rental cost saving will amount to KM 440,000.

The Council of Ministers of BIH took a decision on purchase of a building for accommodation of BIH Institutions in East Sarajevo, which will be included into the multi-year investments programme. The funds for the purchase of this facility will be secured successively, starting from year 2017 through 2019.

Upon a proposal of the Ministry of Finance and Treasury, the Council of Ministers of BIH took a decision to approve multi-year “Project for Ensuring Continuation of System Operation after Failure Caused by Catastrophe –Setting-up Plan for Ensuring Continuation of System Operation after Failure Caused by Catastrophe”.

The Funds in amount of KM 1,950,000 will be allocated in time period between 2016 and 2019 for realisation of the project, meant to secure continued operation of the system of the Ministry of Finance and Treasury in case of catastrophe (interruption of operation at the primary location, caused by possible flood, earthquake and similar incidents), and the project includes, among other things, the purchase of equipment and software/licences and securing of software technical maintenance.

 

ADOPTED UP-DATED BIH DEVELOPMENT INVESTMENT PROGRAMME

 

The Council of Ministers of BIH adopted an Up-Dated Public Investment/Development-Investment Programme of the Incautions of Bosnia and Herzegovina for 2017-2019, worth KM 1,754,900,000.00, proposed by the Ministry of Finance and Treasury.

Out of the sum, KM one billion and 380.67 million relate to capital projects, while KM 374.23 relate to institutional projects. The value of the projects which contribute directly to socio-economic development is KM one billion and 165.52 million, while the value of other projects is KM 589.38 million.

The total value of the projects in their implementation is one billion and 351.82 million, and in time span between 2017 and 2019 institutions plan to spend KM 430.82 million for the realisation thereof.

Following the adoption of the Proposal Programme, the BIH Institutions up-dated their projects data, to align them with changes in the project financial realisation, harmonising these with the 2017 Draft BIH Institutions Budget.

 

CoM SUPPORTS SARAJEVO WATER SUPPLY SYSTEM REHABILITATION

 

The Council of Ministers of BIH endorsed an initiative of the Ministry of Finance and Treasury for negotiations on a EUR 30 million Loan Contract for realisation of the Sarajevo Canton Water Supply System Rehabilitation Project between Bosnia and Herzegovina and the European Bank for Reconstruction and Development.

The project will cover the reconstruction of old distribution pipelines, where water losses were registered, and this should contribute to increased security of water supply and decreased water losses.

The project implementation in Sarajevo will create conditions for a gradual improvement of effectiveness of operation and service provision to citizens by the Public Company “Vodovod i kanalizacija Sarajevo” (Water Supply and Sewage Sarajevo).

The loan term is 15 years with three year grace period and favourable EURIBOR interest rate; it is allocated to the Federation of BIH - Sarajevo Canton, while the loan end-user is the Public Company VIK, Ltd. Sarajevo.

 

IPA 2017 FUNDS TO SUPPORT EMPLOYMENT

 

The Council of Ministers of BIH adopted Information of the Directorate for European Integrations on the 2017 State IPA Programme for Bosnia and Herzegovina.

The proposed allocation for Bosnia and Herzegovina within IPA 2017 is about EUR 40 million, and funds are intended for the sectors Democracy and Governance; Rule of Law and Fundamental Rights, with a possibility for an additional support in the area of employment, though sector budget support.

The Directorate for European Integrations will provide the Proposal State 2017 IPA Package for Bosnia and Herzegovina to the European Commission. This BIH proposal package is worth EUR 69,218,000 and is primary intended for support to education, employment and social policy projects, with an emphasis to employment. These projects include public administration, statistic, public finances, justice and fundamental rights and internal affairs.

Upon receipt of eventual European Commission comments to the action documents under the 2017 annual package for BIH, the Directorate for European Integrations will review action documents, in cooperation with the institutions responsible for drafting individual action documents, and resend them to the European Commission, in accordance with the defined deadlines.

 

TO IMPROVE PROCESS OF REPORTING TO EU

 

The Council of Ministers of BIH adopted a Directorate for European Integrations-developed Reporting Guidelines in the European integrations process, and requested all institutions and administrative bodies of Bosnia and Herzegovina to comply with the Reporting Guidelines reporting in the European integrations process.

The Guidelines are a tool to secure an even approach and quality in reporting, thus up-grading the reporting technical quality, concerning materials preparation, presentation and quality.

By the adoption of these Guidelines for Reporting to the European Commission in the European Integrations Process, as they are appropriate at present, the Council of Ministers’ Guidelines of 2013 cease to be valid.

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