Press Releases
Council of Ministers of BIH Holds Its 177th Session
09/19/2019
Vijeće ministara Bosne i Hercegovine
The Council of Ministers of BIH defined a Proposal Investment Grant Agreement, worth EUR 19 million, between Bosnia and Herzegovina and the European Investment Bank for Corridor V c construction of Zenica North – Zepče South Section – Sub-Section 4: Ponirak – Donja Gračanica, Part I; Ponirak – Vraca ) exit from “Zenica” tunnel) – LOT 1A.
The project includes construction of a new 2.8 km long motorway section, which would shorten considerably the distance along the North-South corridor between Nemila and Zenica.
The Project is expected to increase availability and promote both regional and local development by the increase of average daily traffic for more than 23%, in addition to linking the existing road M17 with the Corridor V c.
The total Project costs were estimated at EUR 101 million, of which EUR 50 million accounts for EIB loan, EUR 26 million for EBRD loan, and EUR 19 million for the Western Balkans Investment Fund, which will be financed through the European Investment Bank, while other sources of financing account for EUR six million.
EUR TWO MILLION GRANT FOR DECERASE OF WATER LOSS FROM WATER PIPELINE PLAVA VODA
The Council of Ministers defined a Proposal Grant Contract )Regional Water Pipeline Plava Voda, between Bosnia and Herzegovina and the European Bank for Reconstruction and Development, which refers to an investment grant from SIDA – EBRD II Communal Environment and Climate Programme.
It is a EUR 2 million grant to finance development of short-term and mid-term measures for non-invoiced water, i.e. for water loss from the Plava Voda regional pipeline, to the end of securing a reliable and long-term water supply for the Municipalities of Travnik, Zenica, Busovača and Novi Travnik.
The Proposal Contract will be sent for further procedure to the BIH Presidency, and the Minister of Finance and Treasury of BIH was proposed or the BIH signatory.
EUR 5 MILLION TO ŽIVINICE, BANOVIĆI AND KLADANJ FFOR CONSTRUCTION OF REGIONAL SANITARY DUMP
The Council of Ministers defined and will provide to the BIH Presidency a Proposal Loan Contract (Živinice regional Solid Waste Dump Project) between Bosnia and Herzegovina and the European Bank for Reconstruction and Development, and the Minister of Finance and Treasury was proposed for signatory.
The EUR 5 million worth loan beneficiary is the Public Enterprise “Eko-Sep“, Ltd. Živinice, together with Zivinice, Banovići and Kladanj for development of a regional sanitary dump and recycling yard. The Project is expected to be finalised by December 31, 3021.
The Loan term is ¸15 year, including a three-year grace period for principal repayment.
EU SUPPORT TO BIH - MONTENEGRO CROSS-BORDER COOPERATION PROJECTS
The Council of Ministers pf BIH defined a Proposal Agreement on Financing Bosnia and Herzegovina - Montenegro Cross-Border Cooperation Activities Programme 2018-2020, among the European Union, Bosnia and Herzegovina sand Government of Montenegro.
The total estimated costs of the Programme are EUR 1,411,764. The EU contribution was defined to amount EUR 1,200,000 of IPA funds, and the Programme beneficiaries’ contribution in amount of EUR 211,764.The Agreement implementation deadline is 12 years, while the operative implementation deadline is six years from taking effect thereof.
The key Programme aim is the sustainable development of a borderline area between Bosnia and Herzegovina and Montenegro.
The proposal Agreement will be sent to the BIH Presidency, with a proposal for the Director of the BIH Directorate for European Integrations of BIH as signatory.
BIH AND CROATIA STRENGTHEN COOPERATION IN MAINTENANCE OF ROAD BRIDGES AT BORDER
The Council of Ministers defined a Proposal Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the Republic of Croatia on maintenance and rehabilitation of road bridges at state border.
The agreement defines regular and extraordinary maintenance, and rehabilitation of 10 bridges at the state border across the Rivers of Sava and Una, in addition to Maljevac and Korane border crossings.
Bosnia and Herzegovina and the Republic of Croatia will share equally the costs of the activity.
The overall regulation of property rights, real rights and cadastre records, pertaining to these bridges, will be defined under a specific contract, following the final identification and demarcation of BIH Croatia border.
The Proposal Agreement will be provided to the BIH Presidency for further procedure, with a proposal for the Minister of Communications and Transport to be the BIH signatory thereof.
BETTER PROTECTION AND EXCHANGE FOF CLASSIFIED DATA WITH TUREKY
The Council of Ministers of BIH defined a Proposal Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the Republic of Turkey on mutual protection and exchange of an Agreement on Defence Industry-referred data.
The Agreement on Protection and Exchange of Classified Data regulates and improves the exchange and protection of classified data produced within implementation of both a Framework Agreement between the Council of Ministers of BIH and Government of the Republic of Turkey on military parts of training, technic and science and the Agreement on Defence Industry between the Council of Ministers of BIH and Government of the Republic of Turkey.
The Proposal Agreement will be sent to the BIH Presidency for further procedure, with a proposal for the Minister of Security as the BIH signatory thereof.
US FINANCIAL SUPPORT TO ANTI FAMILY VIOLENCE AND VIOLENMCE AGAINST WOMEN
The Council of Ministers of BIH adopted a Proposal Second Amendment to Grant Agreement for development aims between the Council of Ministers of Bosnia and Herzegovina, represented by the Ministry for Human Rights and Refugees of BIH, and Government of the United States of America, represented by USAID for a more functional and accountable institutions and persons in charge.
The Minister for Human Rights and refugees was authorised to sign the Second Amendment of the Agreement, which provides for securing an additional USD 100.000 (about KM 170,000) from USAID for the following grand programme for NGOs dealing with the issues of violence against women and family violence.
STENGTHENING OF COOPERATION IN ENVIROEMNT PROTECTION WITH AZERBAIJAN
The Council of Ministers of BIH defined a Proposal Platform for negotiation for conclusion of an Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the Republic of Azerbaijan on environmental protection cooperation.
This way, the two states want to strengthen cooperation in the area of prevention of pollution and environment protection through adequate programmes and projects.
They also intend to promote cooperation between government and non-government organisations dealing with environmental protection.
The Proposal Platform will be sent to the BIH Presidency or further procedure, and the Minister of Foreign Trade and Economic relations was proposed for the signatory of the Agreement.
SUPPLEMENT TO CONVENTION FOR PROTECTION OF INDIVIDIALS WITH REGARD TO AUTOMATIC PROCESSING FO PERSONAL DATA
The Council of Ministers of BIH defined a Proposal Platform for launching a procedure for signing of a Protocol amending and supplementing a 1981 Convention for Protection of Individuals with Regard to Automatic Processing of Personal Data.
The aim is to improve and modernise the process considering new challenges in view of protection of individuals with regard to automatic processing of personal data.
The protocol provided for a multilateral legal framework for facilitating of flow of personal data across borders, with effective protection measures, and represents a bridge between different world regions and normative frameworks, including the new legislation of the European Union.
The Ministry of Civil Affairs will provide the Proposal Platform to the BIH Presidency for further procedure, and the BIH Ambassador – Permanent Representative to the Council of Europe was proposed for the signatory thereof.
TO LAUNCH PROCEDURE FOR ACCESSION TO MAC CONVENTION
The Council of Ministers of BIH defined a Proposal Platform for accession of Bosnia and Herzegovina to a Multilateral Convention on mutual administrative assistance in taxation matters (MAC), to be sent to the BIH Presidency for further procedure, with a proposal for the Minister of Finance and Treasury as the signatory thereof.
The MAC represents the most comprehensive multilateral instrument enabling all forms of taxation cooperation in combating tax evasion and tax payment avoiding. The Ministry of Finance and Treasury harmonised its position about the MAC Convention, treating both direct and indirect taxes, with positions of the competent Entity and Brčko District of BIH sitntitii0oons, including the Indirect Taxation Administration of BIH.
EUR 100 MILLION WORTH ROAD REHABILITATION INITIATIVE ENDORSED
The Council of Ministers of BIH endorsed an Initiative of the Ministry of Finance and Treasury, and designated a negotiating team for conclusion of a Loan Agreement between Bosnia and Herzegovina and the International Bank for Reconstruction and development for the Republika Srpska Roads Rehabilitation Project.
The Project will support the highway and regional roads rehabilitation and reconstruction programme in Republika Srpska, increase the road network resistance to climate changes, road traffic safety, and will help establish financial sustainability of Public Enterprise Roads of Republika Srpska
The proposed Initiative provides for the International Bank for Reconstruction and Development EUR 100 million loan with allocation to Republika Srpska.
NEW RULEBOOK ON MEASURES FOR SUPPRESSION AND EXTERMIANTION OF RABIES WITH ANIMALS
The Council of Ministers of BIH took the Ministry of Foreign Trade and Economic Relations-proposed Rulebook on measures for suppression and extermination of rabies with animals, drafted by the BIH Veterinary Office.
The new, replacing the 1988 Rulebook, provides, among other things, that all dogs older than three months have to be vaccinated against rabies. Also, it defines that clinically healthy cats and dogs, which hurt people, must undergo a ten-day monitoring with a competent veterinary organisation. The Rulebook also defined venison rabies identification, and defined a possibility of ban on hunting.
CONSUMER HEALTH PROTECTION
The Council of Ministers of BIH took a Ministry of Trade and Economic Relations-proposed Rulebook in maximum allowed amounts of coccidiostatic, for the aim of consumer protection.
The rulebook, prepared by the Veterinary Office of BIH, establishes a coccidiostatics control in poultry products, used as additives in chicken food, which has not been regulated before.
Maximum amount of coccidiostatics in poultry products were prescribe, which would allow inspection bodies to take relevant consumer protection measures.
ALMOST 60% NEW LOANS DIRECTED TO INFRASTRUCTURE PROEJCTS
The Council of Ministers of BIH adopted report on public indebtedness in Bosnia and Herzegovina as at June 30, 2019, which will be provided to the Parliamentarian Assembly and the Ministry of Finance and Treasury.
The public indebtedness of Bosnia and Herzegovina as at June 30 this year was KM 11 billion and 157.49 million, of which the foreign debt is about KM 8.2 billion, while the internal debt is about KM 2.9 billion.
The public debt of BIH proportion to GDP is 31.24%.
In the overall public debt, the Federation of BIH accounts for 59.91%, Republika Srpska accounts for 47.97%, BIH Institutions account for 0.65%, and Brčko District of BIH accounts for 0.47%.
The public debt increased for Km 50.58 million or 0.46% relative to the end of 2018, and foreign debt was decreased for KM 1.49 million, and internal debt was increased for KM 52.34 million.
More than half of liabilities is under new loans, 59.8%, and those were loans taken for the realisation of infrastructure projects, 25.8% were for public sector, and 14.3% new loans were intended for economy sector.
BUDGET EXECUTION REPORT ADIPTED
The Council of Ministers adopted the Ministry of Finance and Treasury-tabled Report Budget Execution of Bosnian d Herzegovina Institutions and International Obligations of Bosnia and Herzegovina for the Q I and II 2019.
The total realised revenues and support for financing of BIH Institutions in the first half of 2019 were KM 443,571,034, while the realised expenditures and costs of the BIH Institutions Budget were KM 416,513,976.
The total expenditures and costs of BIH Institutions were less for about KM 17.6 million or 4% than in the same period of time last year.
Due to temporary financing of BIH institutions in the first half of 2019, the execution fo capital expenditures was considerably less than in the same period of time last year. Based on foreign debt, payed was KM 389.69 million, thus all obligations were serviced. The principal repayment was KM 318.34 million, and for interest, service and other fees KM 62.35 million or 16.38 % was paid.
EU MAIN FOREIGN TRADE PARTNER OF BIH
The Council of Ministers of BIH adopted the Ministry and Foreign Trade and Economic relations-proposed Analysis of Foreign Trade Exchange of Bosnia and Herzegovina for Q I and II 2019, featured by an increase of total foreign trade exchange for 2.8 %, along with a drop of export by 0.1% and increase of import by 4.5%.
The total goods exchange in the first half of year was KM 15.6 billion; the value of imported goods was KM 5.83 billion, and of exported goods was KM 9.78 billion, while foreign trade deficit was KM 3.95 billion.
The European Union is still our main foreign trade partner and in a total goods exchange volume it participates with 67%, followed by CEFTA 2006 countries-signatories with 13%, and other countries together with 20%.
The share of export to the EU countries is 75% of total BIH export, and the import from the EU countries is 62% in total BIH import. In the first half of 2019, total goods exchange with the EU increased for 5%, increase of export to the EU was 2%, import from the EU was 8% increased, and a coverage of export by import dropped for 4.7%.
In the first half of this year Bosnia and Herzegovina exported to Germany (KM 859.25 mill.), Croatia (KM 731.76 mill.), Italy (KM 704.96 mill.), Serbia (KM 626.79 mill.), Austria (KM 546.66 mil.), Slovenia (KM 509.24 mill.), Montenegro (KM 196. mill.), and Hungary (KM 143.03 mil).
Simultaneously, Bosnia and Herzegovina imported mostly from Germany (KM 1.97 bill.), Italy (KM 1.13 bill.), Serbia (KM 1.91 bill.), Croatia (KM 989.23 mil.), China (KM 171.33 mil.), Turkey (KM 471.48 mil.), Slovenia (KM 453.73 mil.), and Austria (KM 355.40 mil.).
BIH LIST OF ENVIRONMENT INDICATORS ADOPTED
The Council of Ministers of BIH adopted, upon a proposal of the Ministry of Foreign Trade and Economic Relations, a list of selected indicators for environment in BIH, which is important for setting-up an official progress reporting system according to relevant international standards.
The indicators list enables data collection and indicators creation for uniform monitoring and reporting, as harmonised with appropriate international conventions in this area.
The list was created within a “Capacity building for integration of global environment obligations into state policy and decision-making process development” Project, led by UN Environment Programme (UNEP).
IMPORT TARIFF QUOTES ANAD RAW SUGAR AND ITS PROCESSNIG IN BIH
The Council of Ministers of BIH took the Ministry of Foreign Trade and Economic Relations-proposed Decision on repeating of quantities of tariff quotas in 2019, which refer to import of raw sugar produced from sugar cane for refining.
In accordance with the Law on Customs Tariffs, accommodated requests of domestic producers, as this raw material is not to bee found at domestic market under affordable prices. The imported sugar will be used for refining in facilities set-up in BIH All goods purchased within import quotas will be under a strict customs surveillance of the end-use thereof.
DECISION ON VACATION CASH ALLOWANCE
The Council of Ministers BIH took the Ministry of Finance and Treasury- proposed resolution on the level of vacation cash allowance in the Institutions of Bosnia and Herzegovina for 2020, in accordance with legal obligations for its adoption.
The level of vacation cash allowance will be KM 300, at the same level as in previous years, despite trade union requests for the increase thereof.
The Decision is in accordance with earlier adopted Council of Ministers policy on curbing-up public spending to salaries and allowances of employees in the BIH Institutions.
FUNDS PLANNED UNDER 2019 BIH BUDGET
The Council of Ministers of BIH considered a conclusion form the 5th regular session of the Presidency of Bosnia and Herzegovina, in which KM three million are sought for the finalisation of construction of the Bratunac-Ljubovija border crossing.
The session concluded that these funds were planned under the 2019 Draft Budget of BIH Institutions and international obligations, and will be operative following the adoption of the new Budget.
ACCOMMODATION OF REFUGEES AND FOREIGNERS UNDER SUBSIDIARY PROTECTION
The Council of Ministers of BIH adopted a 2018 Report on accommodation of refugees and foreigners under subsidiary protection in Bosnia and Herzegovina, which will be provided to the BIH Parliamentarian Assembly by the Ministry for Human Rights and Refugees.
Under the Report, 74 individuals had a recognised refugee status, and 38 foreigners were under a subsidiary protection.
The Ministry for Human Rights and Refugees secures accommodation in the Refugee-accommodation centre Slakovac in Mostar, the whereabouts of 22 refugees with their recognised status and the reminder of 90 individuals were accommodated in private arrangement, mostly in the Sarajevo Canton.
For health insurance and health care of refugees and foreigners under subsidiary protection, the Ministry for Human Rights and refugees allocated in 2018 KM 47,146, 85.
For exercising social protection rights of these category, the Ministry provided KM 69,358.52 for limited financial assistance, permanent cash assistance, onetime assistance, child assistance and accommodation in social protection facilities.
Refugees and foreigners under subsidiary protection exercise their right to education, and 28 children attended school in the academic year 2018/19.
IMPLEMENTATION OF READMISSION AGREEMENTS
The Council of Ministers for BIH adopted a report on admission and integration of Bosnia and Herzegovina’s citizens returning to Bosnia and Herzegovina under the 2018 Readmission Agreement, drafted by the Ministry for Human Rights and Refugees.
In year 2018 the return of total 1,034 individuals was registered, while the Ministry for Human Rights and refugees got an announcement for return of 481 individuals.
Relative to the year before, the total return figures decreased, although the return of vulnerable categories, requiring additional assistance, increased.
A share of persons under 18 and over 60 years of age among the returnees is 38% (183 individuals). Most of them returned from Germany (313) and France (90).
According to available Eurostat data, in the EU there are currently 14,700 asylum seekers from BIH.
CONSENT TO POLISH CITIZENS POLLING
The Council of Ministers of BIH granted its consent, under a proposal of the Ministry of Foreign Affairs, for vote by citizens of the Republic of Poland at parliamentarian elections.
Polish citizens residing permanently or temporary in the territory of Bosnia and Herzegovina may vote on October 13, 2019 in the premises of the Embassy of the Republic of Poland.
CONSENT FOR APPOINTMETN OF MILITARY ATTACHĖ FOF THE RUSSIAN FEDERATION
The Council of Ministers of BIH granted tis consent to appointment of Brigadier Vladislav Filippov for military and aircraft attaché of the Russian Federation for Bosnia and Herzegovina, seated in Sarajevo, upon a proposal of the Ministry of Foreign Affairs.
ENDORSEMENT FOR LOANS TO SMEs IN BIH
The Council of Ministers of BIH granted its consent, proposed by the Ministry of Finance and Treasury, to ProCredit Bank, Jsc. Sarajevo for filling a loan request to the Council of Europe Development Bank for an amount of EUR 10 million for partial financing of BIH-based SMEs production investments sub-projects.
The aim is to contribute to creating new permanent and season jobs and keeping the existing ones by way of strengthening of SMEs’ competition standing – end beneficiaries of loans in the whole of BIH.
The Council of ministers took a conclusion confirming that providing the European Investment Bank loan to Intesa Sanpaolo Bank, Jsc BIH is compliant to Framework Agreement between Bosnia and Herzegovina and the European Investment Bank.
It is a EUR 60 million worth loan the European Investment Bank provides to the Intesa SanPaolo Bank, Jsc BIH for financing certain projects in Bosnia and Herzegovina implemented by SMEs, middle-capitalised enterprises, public sector entities and private sector entities, for the aim of increasing competitiveness and up-grading production capacities.
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