Council of Ministers Holds its 32nd Session

BIH STARTS ELABORATION ON BUDGET 2016 

The Council of Ministers of BIH held a discussion on a Draft Law on Budget of Institutions of Bosnia and Herzegovina and International Obligations of Bosnia and Herzegovina for 2016, prepared by the Ministry of Finance and Treasury.

All Ministries are responsible to provide to the Ministry of Finance and Treasury, in the next two days-time, their written comments to considerations, following which the Ministry will submit the 2016 Draft Budget for final consideration at the next session of the Council of Ministers and then to the BIH Presidency for its initiation

The Draft Budget is based on the Global Framework of Fiscal Balances and Policies  in Bosnia and Herzegovina for 2016-2018, aiming further implementation of austerity measures in the BIH Institutions. Thus, total public spending is drown to the level to enable real revenues generation without impediments in reform implementation, but with a restriction in view of new employment.

Total KM 950 million were planned for institutions funding , same as in previous years, in line with savings measures taken by the Council of Ministers of BIH, while for the foreign debt servicing item planned were total KM 770,637,818.99.

 

UP-DATED PUBLIC INVESTMENT PROGRAMME TOTALS KM 1,875.00 MILLION

 

The Council of Ministers of BIH, upon a proposal of the Ministry of Finance and Treasury, adopted an Up-Dated Public Investment Programme of Bosnia and Herzegovina’s Institutions for 0216-2018, as a support of the Council of Ministers of BIH to BIH Institutions for investment planning and high quality investment decision taking.

The total value of the projects included in he Up-Dated Public Investments programme of BIH Institutions is KM one billion and 875.80 million, out of which KM one billion and 468.75 million will go for capital projects. The projects contributing directly to socio-economic development are valued at KM one billion and 278.58 million.

Especially emphasised projects in the Up-Dated Public Investment Plan of BIH Institutions are those reflecting institutional development plans and needs, however the funding for which have not been secured. The total value of presented priority projects is KM 863.97 million, out of which presented capital projects are worth KM 758,88 million and institutional development projects are valued at KM 105,09 million.

 

REIMBURSEMENTS FOR ENGAGEMENT IN MANAGEMENT AND STEERING BOARDS ABOLISHED

 

The Council of Ministers of BIH defined by majority vote a Proposal Law on Amendments and Supplements to the Law on Salaries and emoluments in the Institutions of Bosnia and Herzegovina, as one of key pieces of legislation in implementation of the Policy of Salaries and Emoluments in the BIH Institutions for 2015-2018, crucial, as well, for realisation of savings and strengthening of financial discipline in the BIH Institutions.

The Amendments annul reimbursements for work in management boards, supervisory and other  bodies, carried out during working hours, and it pertains to all members, employees in the institutions financed by budgets of the BIH Institutions, Entities, the Brčko District of BIH, and Cantons, save for high education institutions.

The Amendments and Supplements to the Law on Salaries and Emoluments in the BIH Institutions, among other things, regulate uniformly police additions to salary of police officers employed with security agencies of BIH, additions for demining operations, as well as flaying and other additions at work posts, in which employees are entitled based on special work conditions. Simultaneously, all employees in the BIH Institutions are equalled in respect to the level of reimbursements during sick leave and maternity leave, regardless of their place of residence.

The time during which designated persons and appointed officials are entitled to reimbursement based on their prolonged labour status is reduced from 12 to maximum six months. This right will be in future to members of the BIH Presidency, Delegates in the BIH Parliamentarian Assembly, Chairman and Deputies Chairman of the Council of Ministers and State-level Ministers and their Deputies.

A significant novelty is the introduction of supervision over the implementation of the Law on Salaries and Emoluments in the BIH Institutions, and imposition of fines ranging KM 5,000.-20,000 for budget institutions managers found in breach of the Law on Salaries and Emoluments.

The Ministry of Finance and Treasury will provide the proposal Law to the Parliamentarian Assembly of BIH for consideration under regular legislative procedure.

 

BIH DEFINES PLANING SYSTEM FOR EU FUNDS WITHDRAWAL

 

The Council of Ministers of BIH defined a Proposal Law on Amendments and Supplements to the Law on Ministries and Other Administrative Bodies of Bosnia and Herzegovina, which set-up a mid-term and annual planning, in addition to ensuring basics for high-quality management of financial development, subject to the Council of Ministers of BIH competences.

The Supplements to the Law define, among other things, that the Council of Ministers adopts mid-term work programme, as a basis for preparation of three-year Framework Budget Document and mid-term BIH Institutions’ work  plans.

Such planning system is necessary for the operations of funds withdrawal from funds of the EU and other development partners, as well as for the creation of framework for other forms of international cooperation.

The Ministry of Justice will provide the Proposal Law to the Parliamentarian Assembly of BIH for consideration under basic legislative procedure.

 

ARMS FOREIGN TRADE CONTROL ADJUSTED TO BEST EU PRACTICE

 

The Council of Ministers of BIH defined a Proposal Law on control of foreign trade in arms, military equipment and special purposes products, in addition to a Proposal Law on foreign trade control of goods of dual purpose, in order to harmonise these pieces of legislation with the relevant EU directive and best European and surrounding countries’ practice.

Thus, the existing Law on foreign trade control of strategic goods for security of BIH is being split into two “new” pieces of legislation, namely the Law on foreign trade control of arms, military equipment and products of special purposes, and Law on foreign trade control of dual purpose goods.

The development of the Law on foreign trade control of arms, military equipment and special purpose products will establish control of trading with arms and military equipment and products of special purpose for the sake of protection of interests of BIH and for compliance with BIH international obligations.

The Law on control of foreign trade with goods of dual purpose establishes control of trade in goods of dual purpose and sets forth conditions for its export, brokering and transport, including defining bodies responsible for certificate issuing and supervision concerning the dual purpose goods.

The Ministry of Foreign Trade and Economic Relations posted the Draft Law on its web site and conducted public consultations with interested both public and private stakeholders. The Law development included a work group comprised of representatives of all relevant BIH and Entity institutions.

The Ministry of Foreign Trade and Economic Relations will provide the Draft Laws severally to the BIH Parliamentarian Assembly for consideration under basic legislative procedure.

 

EU SET ASIDE EUR 51 MILLION FOR FLOOD RECOVERY

 

The Council of Ministers of BIH defined a Proposal Law on financing of flood recovery special measures programme and flood risk management – part pertaining to Bosnia and Herzegovina, between the European Union, represented by the European Commission, and Bosnia and Herzegovina, represented by the Directorate for European Integrations under the Council of Ministers of BIH.

This EUR 51 million worth Agreement contains five EUR 41 million worth projects to be implemented in BIH, including one cross-border project “Regional recovery and infrastructure improvement targeting flood protection in the basin of the River Sava””, worth EUR 10 million. Bosnia and Herzegovina, as a programme beneficiary, is expected to give tis financial contribution.

Separate implementation contracts must be concluded within three-year time and projects need to be completed within six years from the date of conclusion of the Agreement.

The Ministry of Finance and Treasury will provide the Proposal Agreement to the BIH Presidency, with basics for its conclusion, and Director of the Directorate for European Integrations will be proposed as the BIH signatory.

 

OVER EUR 22.5 MILLION FROM EU FOR STATE ACTIVITY PROGRAMME IN 2014

 

The Council of Ministers of BIH defined a Proposal Agreement on financing a State Activity Programme for Bosnia and Herzegovina in 2014 between the European Union, represented by the European Commission, and Bosnia and Herzegovina, represented by the Directorate for European Integrations under the Council of Ministers of BIH.

The European Union will provide EUR 22,581,834.00 under the State Programme of Activities for BIH, for sectors with agreed-to strategies and sufficient coordination level, while EUR 93,920.00 will be secured from the BIH Institutions budget

The European Union will thereby finance total eight projects divided into  two sectors, namely Democracy and Governance and Rule of Law on Basic Rights.

The second component worth EUR 15 million will be implemented through three projects by two sectors, namely Competition and Innovations, Education and Employment Policy, and Social Policy.

Within this target, total EUR 10 was intended for local and integrated development, whereas the project  will be implemented by the European Union in cooperation with UNDP and International Labour Organisation, while SMEs competitiveness support, worth EUR 4 million, will be jointly implemented by the European Commission and European Bank for Reconstruction and Development.

The implementation period for the Agreement is 12 years, and the period of operative implementation is six years as at its effectiveness. Relevant implementation contracts will be concluded in tree year time from the conclusion of the Agreement.

The Ministry of Finance and Treasury will provide the Proposal Agreement and Basics for its conclusion to the BIH Presidency, and the Director of the Directorate for European Integrations was proposed as the BIH signatory.

 

EUR 60 MIL. FOR MOROTWAY COSNTRUCTION ON CORRIDOR V C

 

The Council of Ministers of BIH endorsed an Initiative of the Ministry of Finance and Treasury and designated a negotiating delegation for conclusion of a Loan Contract (Corridor V c Project) between Bosnia and Herzegovina and the European Bank for Reconstruction and Development, worth EUR 60 million, with 15 term, four year grace period and EURIBOR interest rate.

The loan will be used for construction of sub-sections on the Buna-Počitelj motorway on the corridor V c, of 7.2 km length, and Donja Gračanica-Zenica North sub-section long 2.1 km.

The project will get secured domestic financing necessary for its completion, in amount of KM 16.2 million for the purpose of construction and surveillance over expropriation and designing opšerations.

Following completed negotiations, the Council of Ministers of BIH will be provided by the Ministry of Finance and Treasury a Proposal Contract and Basics for its conclusion, subject to the Law on Borrowing, Debt and Guarantees.

 

CoM ADOPTS ACTION PLAN OT IMPROVE HUMAN RIHGTS PRTECTION IN BIH

 

The Council of Ministers of BIH adopted an Action Plan of the Ministry for Human Rights and Refugees for realisation of conclusions of a Joint Committee for Human Rights, and tasked line Ministries, institutions and bodies of the Council of Ministers for realisation of the Action Plan activities as per planned dynamics.

The Ministry for Human Rights and Refugees will prepare a report and submit it to the Council of Ministers on the Action Plan implementation, by the end of next year.

The Action Plan contains 16 key activities to be implemented this and next year to improve the status of human rights in BIH, including the adoption of new and amendments of the existing human rights protection-related laws.

 

FIRST MEETING OF STABILISATION ANAD ACCESSION ON DEC.11 IN B BRISSELS

 

The Council of Ministers of BIH noted Information of the Directorate for European Integrations and Addendum Information on required preparation for the initial meetings of Bosnia and Herzegovina - European Union joint bodies, with accompanying conclusions, in accordance with the Stabilisation and Accession Agreement.

The first meeting of the Stabilisation and Accession Council will be held on December 11, 2015 in Brussels, The BIH Delegation will be led by Chairman of the Council of Ministers Dr Denis Zvizdić and Deputies Chairman Ministers Vjekoslav Bevanda and Mirko Šarović and Foreign Minister Igor Crnadak.

The European Union delegation will be led by EU High Representative for Foreign Affairs and Security Policy Frederica Mogherini and Commissioner for European Neighbourhood Policy and Negotiations on Enlargement Johannes Hahn.

The Stabilisation and Accession Council will follow the meeting of the Stabilisation and Accession Board.

 

 

1,581 NEW WORK PERMITS FOR PROLONGATION AND NEW EMPLOYMENT OF FOREIGNERS

 

The Council of Ministers of BIH took a decision,  upon a proposal of the Ministry for Civil Affairs, to set annual quota of work permits for employment of foreigners in Bosnia and Herzegovina in 2016.

Total annual quota for prolongation and new employment of foreigners in BIH for 2016 is 1,581 work permits, out of which 885 in the Federation of BIH 600 in Republika Srpska and 95 work permits in the Brčko District of BIH.

For the prolongation of already issued work permits, quota is 970, while the annual quota is 611 work permits for new employment.

 

DECISION ON ANIMAL FODDER HYGIENE HARMONISED WITH EU REGUALTIONS

 

The Council of Ministers of BIH took a decision, upon a proposal of the Ministry of Foreign Trade and Economic Relations, on animal fodder hygiene with “E” mark, as a certificate of partial adjustment to relevant EU regulations.

The decision sets forth general rules on for animal fodder hygiene, and conditions and procedures for tracking animal fodder and conditions and procedures for registration and approval of a project.

The businesses dealing with animal fodder must secure all production phases, processing and distribution, in accordance with regulations in effect in BIH, good hygiene practice and satisfaction of hygiene requirements.

 

KM 3.3 MILLION ON ACCOUNTS FOR FOREIGN DEBT SERVICING

 

The Council of Ministers of BIH took a decision, on a proposal of the Ministry of Finance and Treasury, on purpose and conditions for use of funds accrued at foreign debt service accounts.

The decision defines the purpose and conditions for use of funds accrued at the Bosnia and Herzegovina Insinuations accounts with the Central Bank of Bosnia and Herzegovina for foreign debt liabilities servicing, which amounted EUR 1,694,308.97 as at December 31, 2014.

A part of funds, EUR 39,079.71 will be used for foreign debt related current liabilities, while EIR 1,655,229.29 will be u placed to a special purpose account to be used for emergency debt servicing only in cases when timely debt servicing might be threatened if no other way is possible of funds securing, as proposed under the Law on Borrowing, Debt and Guarantees of BIH.

 

CoM CANCELLS EARLIER DECISION ON PURCHASEOF BUILDINGS IN SARAJEVO

 

The Council of Ministers of BIH took a decision to render null and void a decision of the Council of Ministers of BIH on purchase of a facility for accommodation of institutions of Bosnia and Herzegovina in Sarajevo – Hidrogradnja building at 19 Hamdije Kreševljakovića St., issued in the ”Official Gazette of BIH”, No. 78/14.

The Council of Ministers of BIH appointed a committee to conduct a procedure of a facility purchase for accommodation of BIH institutions in amount of KM 9 million, earlier provided for.

The BIH Attorney’s Office deflected to give its consent for the purchase of the Hidrogradnja building in Sarajevo due to infringing property interests of BIH. Its rationale indicates that the sales procedure might introduce a legal mortgage, since there is a liability secured by mortgage contract for the Hidrogrdnja building.

 

 

SUPPORT OT BIH DEPOSIT SAVERS IN ECHR RULING IMPLEMENTATION

 

The Council of Ministers took note of information of the Ministry of Finance and Treasury on cooperation of BIH and the Republic of Slovenia in implementation of the European Court for Human Rights ruling in case of “old” hard currency deposit savings with the Ljubljanska Banka, in which a support to BIH deposit savers was vowed in exercise of their rights, in accordance with the ruling.

Bosnia and Herzegovina is ready to cooperate with the Republic of Slovenia to implement the ruling as soon as possible in favour of BIH citizens, to whom it will  extend its support in exercising of their rights.

The Ministry of Finance and Treasury continues its activities within an expert group for monitoring of realisation of the European Court for Human Rights ruling.

The Council of Ministers of BIH tasked the Ministry of Foreign Affairs to prepare for the next session a proposal decision appointing expert group members individually for monitoring of the ruling implementation.

 

TO STEP-UP HANDOVER AND REGISTRATION PROCESS OF DIPLOMATIC-CONUSLAR OFFICES OF EX-SFRY BELONGING OT BIH

 

The Council of Ministers of BIH adopted information of the Ministry of Finance and Treasury on implementation of a platform for distribution of diplomatic-consular property of ex-SFRY.

The Ministry of Foreign Affairs is tasked to prepare needed documentation in relation to ex-SFRY complex in Ankara, especially the relevant real estate registration entry for the parcel..

The Council granted its consent to authorised negotiator in the Joint Committee for Annex B Adan Hadžikapetanović to agree legal demarcation at the parcel of the ex-SFRY complex with the Republic of Serbia.

The Ministry of Finance and Treasury and Ministry of Foreign Affairs are responsible to intensify their activities in order to step-up the process of handover and entry of the diplomatic-consular property of ex-SFRY now belonging to BIH.

 

CoM SUPPORT RECOMMENDATIONS FOR IMPLEMENTATION OF ANNEXES TO AGREEMENT ON SUCCESSION ISSUES

 

The Council of Ministers of BIH adopted information of the Ministry of Finance and Treasury and all belonging recommendations from the 4^th meeting of the Joint Committee of High Representatives of ex-SFRY Successor Countries, held in Sarajevo on November 11 -12, 2015.

The Council of Ministers of BIH gave its support for realisation of recommendations adopted, and tasked the authorised BIH negotiators on all annexes to comply with the recommendations and work towards implementation thereof, representing  interests of Bosnia and Herzegovina.

The meeting, which was held after almost seven-year pause in the process, reviewed the state of play across all annexes and made recommendations to accelerate the work on individual areas so as to have the Agreement on Succession Issued implemented in a full.

 

 

50 PER CENT SHARE OF STATE AID GOES TO AGRICULTURE AND FORESTRY

 

The Council of Ministers of BIH adopted an annual report on the state aid in 2014, prepared by the BIH State Aid Council, which indicated that the state aid allocated in 2014 amounted to total KM 292,176,610, The state aid per capital was KM 76.25 last year.

The major part of the state aid was allocated to agriculture and fishery in an absolute amount of KM 143,712,172, i.e. 50 per cent of totally allocated state aid in 2014.

The providers of the state aid are Bosnia and Herzegovina, the Federation of Bosnia and Herzegovina, Republika Srpska, Brčko District of BIH, cantonal, city and municipal administrations though authorised legal persons, and any legal person allocating or managing the state aid.

 

OFFICIAL ANIMAL FODDER CONTROL HARMONISED WITH EU REGUALTIONS

 

The Council of Ministers of BIH adopted, on a proposal of the Ministry of Foreign Trade and Economic Relations, a Regulation on amendments of Regulation on Sampling and Analytical Methods for official control of animal fodder with mark “E”, confirming the harmonisation with relevant EU regulations.

The amendments define methods of analyse for defining contents of animal origin for official control of animal fodder, harmonised with relevant regulations of the European Commission.

The regulation will be implemented b the Veterinary Office of BIH, competent Entity and Brčko District bodies in Ministries and inspection offices by official veterinarians and veterinarian inspectors.

 

OSA MANAGEMENT APPOINTED

 

The Council of Ministers of BIH appointed Osman Mehmedagić as General Manager, Trifko Buha for Deputy General Manager and Damir Bevanda as Chief Inspector of the Intelligence-Security Agency of Bosnia and Herzegovina. (OSA).

The appointments took place after a Joint Committee for OSA Surveillance gave its opinion that legal conditions for new management appointment were met.

 

DEI DIRECTOR APPOINTED

 

The Council of Ministers of BIH appointed Edin Deliberović for Director of the Council of Ministers Directorate for European Integrations, and the most successful candidate, proposed by the Civil Service Agency of BIH, after completing a public job vacancy procedure.

The Council of Ministers of BIH released Nevenka Savić from duty of Director of the Directorate.

 

ACTING DIRECTOR OF HIGH EDUCATION DEVELOPEMNT AGENCY APPOINTED

 

The Council of Ministers of BIH appointed Director Husein Nanić for acting Director of the High Education Development and Quality Insurance Agency  until the appointment of a new Director.

As the term of office of the previous Director ended, the Ministry of Civil Affairs is responsible to take procedure for selection and appointment of the Agency Director, in accordance with the Law on Ministerial Appointments, Appointments of the Council of Ministers of BIH and other appointments in Bosnia and Herzegovina.

 

CoM APPOINTS MEMBERS IN JOINT SEEERING BOARD FOR UN PROGRAMME IMPLEMENTATION

 

The Council of Ministers of BIH appointed Deputies Chairman of the Council of Ministers, Ministers of Finance and Treasury Vjekoslav Bevanda and of Foreign Trade and Economic Relations Mirko Šarović, and Minister of Civil Affairs Adil Osmanović into a Joint Steering Board of United Nations for Strategic Coordination and Monitoring of 2015-2019 UN Programme Implementation.

Thereby requirements were met for formation of the steering board, after the Entity governments appointed their respective representatives.

The Joint Steering Board is a strategic, not technical body, therefore appointments were made at the ministerial level. Its formation stemmed from UN Joint Programme and Budget Framework for Bosnia and Herzegovina (2015-2019); United Nations Framework Development Aid, that the Council of Ministers of BIH adopted in mid-May this year.

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