Council of Ministers of Bosnia and Herzegovina Holds Its 109th Session

GRANT FOR IMPROVEMENT OF ROAD COMMUNIATION IN FEDERATION OF BIH

The Council of Ministers of BIH defined a Proposal Grant Agreement – Western Balkans Investment Framework (WBIF) – Safe and Sustainable Transport Programme (SSTP) – (Improvement of road property management project in the Federation of Bosnia and Herzegovina within Investment Programme for construction, reconstruction and rehabilitation of highways in the Federation of Bosnia and Herzegovina between Bosnia and Herzegovina and International Bank for Reconstruction and Development/International Development Association, as leading financial institution for WBIF-. SSTP, with platform for the Grant Agreement conclusion.

The EUR 8.5 million grant co-finances the Improvement of road property management project in the Federation of Bosnia and Herzegovina within Investment Programme for construction, reconstruction and rehabilitation of highways in the Federation of Bosnia and Herzegovina. Financed by the International Bank for Reconstruction and Development in amount of EUR 70 million.

The Project, with its closing date on July 31, 2028, aims improvement of transport connection and strengthening of management of transport network, and the grant funds will be allocated to the Federation of BIH, Federal Ministry of Finance – Public Company Roads of Federation of BIH.

The Ministry of Finance and Treasury should send the Draft Grant Agreement and Platform for its Conclusion to the Presidency of Bosnia and Herzegovina for further procedure, along with a proposal for the Minister of Finance and Treasury as the BIH signatory thereof.

BOSNIA AND HERZEGOVINA INTENDS TO ACCEED TO ECAC BUREAU

The Council of Ministers of BIH defined a Proposal Basics for Accession of Bosnia and Herzegovina to a Convention on Bureau of European Conference of Civil Aviation (ECAC), endorsed the text Convention and proposed the Minister of Foreign Affairs of Bosnia and Herzegovina for the signatory of t declaration on accession.

The Ministry of Communication and Transport of Bosnia and Herzegovina should provide the Draft Basics for accession along with text Convention to the Presidency of Bosnia and Herzegovina for decision-making on accession.

An initiative for accessi9on of Bosnia and Herzegovina to the Convention on ECAC Bureau was started by the Directorate for Civil Aviation of Bosnia and Herzegovina (BHDCA). The final version of the Convention was opened for signing at the margins od the 74th special ECAC meeting of civil aviation directors-general, held in Bern in August 28-30, 2025. The Convention is possible to be acceded to by any ECAC member.

The Bureau will take-up the tole of the ECAC Secretariate, having its legal personality and supportive role to activities and decision implementation taken by ECAC member countries civil aviation directors-general.

The Convention foresees the Bureau to be comprised of a board of parties, executive secretary and his deputy and other staff. The Bureau will be funded from ECAC budget, and its head office. will be in France, therefore depositor of the Convention is the Government of the French Republic.

TO ADVANCE COOPERATION WITH SOUTH-EAST ASIA COUNTIRES

The Council of Ministers of BIH defined the Ministry of Foreign Affairs-tabled Proposal Platform for acceding to Treaty on Amity and Cooperation in the South-East Asia, developed in Denpasar, on Bali in 1976 and its Protocols on Amendments and Supplements from 1976, 1987 and 2010.

The Treaty on Amity and Cooperation in South-East Asia was endorsed and the Ministry of Foreign Affairs of BIH should provide the Proposal Platform for Accession to the Treaty to the Presidency of BIH for the purpose of decision-making on accession, with a proposal for signatory of the Instrument of Accession to be the Minister of Foreign Affairs of Bosnia and Herzegovina.

The general aim for accession to the Treaty is the improvement of cooperation in all areas, primarily with countries of the South-East Asia, ASEAN members, and with other states of the region and Europe acceded to the Treaty (France, Türkiye, Great Britain, Norway, Germany, Denmark, Greece, Netherlands, Spain, Ukraine, Serbia, Luxembourg, USA and EU).

PROPOSAL DECISION ON RATIFICATION OF PROTOCOL ON ELIMINATION OF ILLICIT TRADE IN TOBACCO PRODUCTS

The Council of Ministers of BIH defined the Ministry of Foreign Affairs-tabled Proposal Decision of ratification of a Protocol on elimination of illicit trade in tobacco products, to be sent to the Presidency of Bih for further procedure.

The Protocol on Elimination of Illicit Trade in Tobacco Products was adopted in December 2012 at the fifth session of the Conference of Parties of WHO Framework Convention on Tobacco Control. The Presidency of BIH took a decision on accession by Bosnia and Herzegovina to the Protocol on January 12, 2026, and authorised the Minister of Foreign Affairs to sign the Instrument of Accession.

BIH AIR SPACE ROUTE FEES DEFINED

The Council of Ministers of BIH took the Ministry of Communications and Transport-proposed Decision on setting planed amount, so revenues based to air navigation service provision (route fees) in air space of Bosnia and Herzegovina.

The Decision sets planned amounts of revenues (en-route resources), based on a Fianal Base of en-route expanses of Bosnia and Herzegovina for 2026, adopted in a total amount of KM 101,869.461 (including planned costs of EUROCONTROL in amount of KM 3,954,284).

According to the Decision, funds are distributed to the following beneficiaries: The Agency for Air Navigation Service Provision of Bosnia and Herzegovina (BHANSA) KM 92,423,862; Directorate for Civil Aviation of Bosnia and Herzegovina (BHHDCA) 2,949,244; and Croatian Air Navigation Control KM 6,496,355.

The en-route funds distribution is made by EUROCONTROL based on a written instruction provided by Director-General of the Directorate for Civil Aviation of Bosnia and Herzegovina. The funds are sent to BHANSA account through the Single Treasury Account with the Ministry of Finance and Treasury of BIH.

The level of collected revenues depends on a real volume of traffic in air space of Bosnia and Herzegovina in 2025. Pursuant to regulations from joint policy of route fees collection, a planned amount of base costs may undergo adjustment mechanism to secure a final return of only real costs of service.

REGUALTIONS ON STANDARDS AND CONDITIONS FOR COSNTRUCTIONA DN EQUIPPING BORDER CROSSINGS

The Council of Ministers f BIH took the Ministry of Security-proposed regulation on standards and conditions of construction and equipping border crossings.

The Regulation sets forth minimum standards and conditions for construction and furbishing of border crossings to enable effective and safe operation by services included into the integrated border management. In case of a cross-government contract missing, the present Regulation will be applied for standards dan conditions of development and furbishing of joint border crossings.

The Regulation makes harmonisation with the European Union and European Parliament and Council Degree 2016/399 Article 15, of March 9, 2016 on the EU acquis relevant to rules for movement of people across borders.

PIECE OF INFORMATION ON DEVELOPMENT OF BIH INSTITUTIONS PROPOSAL FOR REGULAR ANNUAL REPORT ON BOSNIA AND HERZEGOVINA

The Council of Ministers of BIH took note of a piece of information on development process and adopted a Proposal by BIH Institutions for regular annual report on Bosnia and Herzegovina for Aug. 1, 2015 – March 15, 2026, developed by the Directorate for European Integrations of Bosnia and Herzegovina.

The Directorate for European Integrations is due to provide the Proposal by BIH Institutions for Regular Annual Report on Bosnia and Herzegovina, translated to English language, to the European Commission, along with additional information, as appropriate.

DISTRIBUTION OF CURRENT RESERVES IN 2025

The Council of Ministers of BIH adopted a piece of information on distribution and use of current reserve funds for 2025, to be sent to the Parliamentary Assembly of BIH for additional procedure by the Ministry of Finance and Treasury.

Planned current reserve funds for 2025 amount KM 46,740,000, of which KM 42,089,950 was approved and KM 41,258,027.92 implemented.

Funds in the current reserves in amount of KM 43,950,000 were planned for the Council of Ministers of BIH, of which approved was KM 39,495,900, and implemented was KM 38,663,977.92. A major part of the approved current reserve funds was KM 36,500,000, and it refers to an one-time cash assistance to employees with the Institutions of Bosnia and Herzegovina, a material support to employees in Institutions of Bosnia and Herzegovina in several amounts of KM 1,000 net with tax and fees by employee.

For implementation of contractual obligations for car registration plates, personal documents, drivers’ licences and travel documents (material procurement) approved was KM 1,589,000to the Agency for Identification Documents, Evidence and Data Exchange of Bosnia and Herzegovina, for support to rehabilitation from fire in the City of Turla KM 700,000 was approved, and to the Municipality of Vlasenica approved was KM 300,000.

For members of the Collegium of both Chambers of Parliamentary Assembly of BH, planned was KM 360,000, and approved was KM 347,250; For BIH Presidency members planned was KM 1,080,000, and approved and implemented was KM 1,075,300.

For the Chairwoman of the Council of Ministers of BIH and her Deputies, planned was KM 720,000, and approved and implemented was KM 630,000, while for Ministers in the Council of Ministers paned was KM 630,000, and approved and implemented was KM 540,000.

PIECE OF INFORMATION ON TARIFF QUOTAS APPLICATION FOR 2025 ADOPTED

The Council of Ministers of BIH considered and adopted the Ministry of Foreign Trade and Economic Relations-tabled piece of information on application of tariff quotas of customs tariffs for 2025 for import time span from Jan.1 to Dec. 31, 2025.

The piece of information offers a detailed breakdown of import quantities by tariff marks and comparison of real imported quantities with approved quotas, with an analysis of percentage use, according to domestic regulations and international trade agreements (SAA and EFTA)

The analysis of use of tariff quotas in the course of 2025 for 85 tariff marks suggests that about 60% of open import quotas remained almost the same as in the previous year. Exceptionally high use, above 90%, was spotted with quotas for import of live pigs (to 50 kg weight), certain dairy products (e-g- yogurt) and wine.

An increase of import from the European Union is evident with live cattle of 160 kg to 300 kg wight intended for fattening, and with certain alcohol drinks. No import was registered with 22% tariff quotas (total 19 tariff marks), while a fall of import was spotted with 10% of quotas relative to the year before, which is especially evident for import of live lambs and external deboned meat.

The quotas opened based on the Stabilisation and Accession Agreement (SAA), EFTA Agreement and SAA-related Protocol repeat on annual basis, regardless of their use and they serve as a support to economy in Bosnia and Herzegovina.

REPORTS ADOPTED

The Council of Ministers of BIH adopted five reports, as follows:

The Committee for Cooperation with NATO Activity Report for Jule 31, 2025 - January 1, 2026;

Commission for Elimination of Narcotics, Psychotropic Matters, Herbs and Precursors Activity Report for October - December 2025;

Activity Report by the Coordination Body, Expert Team and Legal Team on Disposing of Radioactive Waste and Depleted Nuclear Fuel at Čerkezovaac, Trgovska Goa, the Municipality of Dvor, Republic of Croatia;

Activity Report by the Committee for Water Management-Economic Cooperation of Bosnia and Herzegovina and the Republic of Croatia for 2025;

Activity Report for 205 by the Cross-Sector Work Group for monitoring implementation of the Council of Europe Convention on Forgery of Medical Products and Similar Felonies Threatening Public Health;

Implementation report for Consultations in Development of legal Acts for 2025;

Implementation Report on use of remaining funds under a decision approving 2022 Budget of Institutions of Bonai and Herzegovina and International Obligations of BIH current reserve funds;

2025 Annual Activity Report by the Appellation Committee for Security Checks; and

it took note of a report - monitoring of recommendations implementation based on the BIH Institutions Audit Office-developed “Institutions of Bosnia and Herzegovina Activities in Development of Rulebook on Internal Organisation”.

WORK PROGRAMME

The Council of Ministers of BIH adopted a Proposal 2026 Council of Ministers of BIH Work Programme for state aid of Bosnia and Herzegovina.

PIECE OF INFORMATION ADOPTED ON HOLDING NINETH MEETING OF EU-BIH SUB-COMMITTEE FOR TRADE, INDUSTRY, CUSTOMS AND TAXATION

The Council of Ministers of Bosnia and Herzegovina adopted a piece of information on holding of the nineth meeting of the Sub-Committee for Trade, Industry, Customs and Taxation between the European Union and Bosnia and Herzegovina. The piece of information was developed by the Council of Ministers Directorate for European Integrations, which serves also as the Sub-Committee Secretariat.

The Council of Ministers of BIH assigned to the Directorate for European Integrations to make necessary prearrangements for holding of the EU-BIH Sub-Committee for Trade, Industry, Customs and Taxation nineth meeting, in cooperation with responsible institutions in Bosnia and Herzegovina.

Chairwoman of Bosnia and Herzegovina Delegation Brankica Pandurević should, in her introductory note, stress the importance and urgency of issue solving for road transporters and professional drivers from Bosnia and Herzegovina in the European Union. The BIH Delegation Chair should also be available to media for any inquiries as to the Sub-Committee nineth meeting.

KM 200,000 APPROVED FOR 16TH SEASON OF BIH YOUTH GAMES

The Council of Ministers of BIH took the Ministry of Finance and Treasury-proposed Decision to approve the BIH Institutions Budget current reserve funds to Sarajevo Association for Youth Sports and Recreation, in amount of KM 200,000 for organisation of the 16th season of Youth Sports Games of Bosna and Herzegovina. The funds approved will cover costs of organisation of competitions in 54 cities and municipalities, logistic support (transport, accommodation and security) and provision of sports equipment.

The funds beneficiary is obliged to report purposeful spending of funds to the Ministry of Civil Affairs of Bosnia and Herzegovina by Dec. 31, 2026, at latest.

REHABILITATION AND RECONSTRUCTION OF MEDIUM-VOLTAGE AND LOW-VOLTAGE NETWORK IN AEA OF ELEKTROKRAJINA, BANJA LUKA

The Council of Ministers of BIH adopted the Ministry of Finance and Treasury-proposed Initiative for negotiations and conclusion of a Laon Contract (Rehabilitation and Reconstruction of Medium-Voltage and Low-Voltage Network in Area of Elektrokrajina,Ltd, Banja Luka Project) between Bosnia and Herzegovina and the European Bank for Reconstruction and Development.

Under the Project, rehabilitation and reconstruction of the worn out medium-voltage and low-voltage network in responsibility of Elektrokrajina Company, Ltd. Banja Luka, the major distributive centre operator in Republika Srpska, covering 5 cities, 16 municipalities and the surface of 8,890 m2. The planned reconstruction and rehabilitation will cover 700 km of medium-voltage and 1.000 km low-voltage network, including works on replacement of electro-energy facilities, to contribute significantly to reliability of supply, decrease of loss of electric energy and increase of energy efficacy.

The European Bank for Reconstruction and Development provides EUR 38,000.000 loan to Bosnia and Herzegovina, allocated to Republika Srpska. The planned budget for the Project is EUR 30,000,000, plus 8,000,0000 for refinancing of the existing credit arrangement with EBRD.

The designated negotiating delegation will be comprised of the Minister of Finance and Treasury of BIH or his designee – head of delegation, Minister of Finance of Republika Srpska or his designee, Minister of Energy and Mining or his designee, ODS Elektrokrajina, Ltd. Banjaluka Manager or his designee.

The Council of Ministers of BIH tasked the Ministry of Finance and Treasury to act pursuant to the Law on Borrowing, Debt and Guarantees of Bosnia and Herzegovina, upon finalisation of negotiations. (end)

Link for Photos:

https://www.flickr.com/photos/vijeceministara/albums/72177720333232837