Minister Vrankić Signs Loan Agreement for Returnees Housing Reconstruction Project with OFID



A Loan Agreement for the Project of Housing Reconstruction in Bosnia and Herzegovina and OPEC Fund for International Development (OFID) in total amount of USD 700,000 was signed today in OFID’s seat in Vienna by Deputy Chairman of the Council of Ministers and Minister of Finance and Treasury Dragan Vrnkić and General Manager of OPEC Fund for International Development Jasir Al-Herbish.

A total cost of the Project is USD 800,000, out of which USD 7000,000 is the loan, and USD 100,000 is Budget contribution from the Entities and Brčko District of B-H. The reconstruction of nearly 700 housing units for 3,000 persons is aimed at a durable resolving the issue of return of refugees and displaced persons, particularly minorities, to all parts of Bosnia and Herzegovina. Also, the intention is to relieve the financial and social burden of subsidising the returns from the Ministry for Human Rights and Refugees.

The Project is comprised of three components, namely: reconstruction of housing units, subsidies, and work and audit costs. The first component (reconstruction of housing units) will be financed entirely from the loan, while the other two components will be financed from Entities and Brčko District allocations.

The allocation of the Loan funds is the following: USD 3,237,500 (46%) goes for the Federation of B-H and Republika Srpska and USD 525,000 (7%) goes for the Brčko District. The Loan terms and conditions are: 20 term, 5 year grace period and 2,5% annual interest rate to the total amount of the Loan.

Brčko District Mayor Dragan Pajić and OFID General Manager Suleiman Al-Herbish signed a Project Agreement between the Brčko District and OFID, while Project Agreements with representatives of the Entities will be signed subsequently. (end)