Council of Ministers of BIH Holds its 18th Session: Armed Forces of BIH and Helicopter Crews Commented for Engagement in Fire Fighting

The Council of Ministers of BIH considered and adopted information of the Ministry of Security on the situation in Bosnia and Herzegovina caused by forest fires in the period between August 4 to August 28, 2012. 

The Council of Ministers of BIH commented the Armed Forces of BIH and helicopter crews for their engagement in fire fighting.

A consent was granted to the Ministry of Security to seek international assistance in extinguishing fire by use of the European Union mechanisms, and in line with signed-to Memorandums on cooperation in protection and rescue with non-EU member countries. Eventual expenses incurred on accepting the international assistance for fire fighting in Bosnia and Herzegovina will be financed, subject to legislative in force, from the Council of Ministers of BIH Budget reserves, and in accordance with the resources available.

Also, the Council of Ministers of BIH tasked the Ministry of Security to coordinate with Entity competent institutions (relevant Ministries and civil protection units) the fire fighting activities and define Entity and local level institutions’ obligations in that respect.

The Council of Ministers of BIH defined a Proposal Law on Mine Action in Bosnia and Herzegovina, which the Ministry of Civil Affairs will provide to the Parliamentarian Assembly of BIH for consideration.

The Law regulates ways and procedures of mine action in Bosnia and Herzegovina, and defines competent authorities for mien action, financial issues, right and obligations of persons engaged in mien action, inspection and other relevant issues aimed to improve the organisation structure and more effective mine action in Bosnia and Herzegovina.

The Law provides for a transformation of the existing Mine Action Centre into the Mine Action Agency of BIH.

Upon a proposal of the Ministry of Communications and Transport, the Council of Ministers of BIH took a decision on use of transferred special purpose resources realised from a certificate for Use of the Universal Licence for Mobile Telecommunication Systems from 2011 and revenues collected based on allocation of the certificate in 2012.

Mobile telephony operators paid in 2011 KM 17,602,470 to the Single Treasury Account. As these funds were not utilised, a decision was made to transfer them to the next fiscal year. The same level of resources is expected in 2012 from allocated certificates for Universal Mobile Telecommunication Systems.

Under the decision, from the revenues collected in 2011 and 2011, the amount f KM 5,280,741, or 15%, will be allocated for development of telecommunications secotr, for which The Council of Ministers of BIH will issue a separate resolution.

The remaining 85 per cent of revenues, or KM 28,924,199 will be allocated to multi-year capital projects, as follows:

-          For construction and surveillance over the inter-state bridge at Gradiška, on Banjaluka –Gradiška- Okučani motorway, in amount of KM 5,500,000;

-          For construction and surveillance of inter-state bridge at Svilaj, on the corridor V c, in amount of KM 13,2019,235;

-          For development of plan-study documentation for Adriatic-Ionian motorway, section running through Bosnia and Herzegovina, - Počitelj-Neum-Trebinje section - in amount of KM 1,600,000;

-          For preparation and construction of border crossings at the corridor V c motorway, border crossing Bijača, in amount of KM 4,042,535;

-          For preparation and construction of border crossings at the corridor V c motorway, border crossing Svilaj, in amount of KM 2,400,000;

-          For preparation and construction of border crossings at Banjaluka –Gradiška- Okučani motorway, border crossing Gradiška, in amount of KM 3,162,405.

The Council of Ministers of BIH assigned to the Ministry of Communications and transport to form a work group with the Indirect Taxation Administration, to deal with the procedures of elimination of vehicles kept at the ITA warehouse. The work group should investigate the ways to solve the issue of vehicles, which seizure procedure is completed, and to report the Council of Ministers about the solutions within 30 day time.

The Council of Ministers of BIH defined a Proposal Financial Agreement - Technical Assistance for Corridor V c Motorway in BIH (Technical Assistance under the Framework Investments to Western Balkans) between the European Investment Bank and Bosnia and Herzegovina and Public Company Motorways of the FBIH Ltd. Mostar, with basics for conclusion of the Agreement, which the Ministry of Finance and Treasury will provide to the Presidency of BIH for further procedure.

A grant worth EUR 2,000,000 were provided form the EIB budget and European-Western Balkans Joint Fund (EWBJF).

The Agreement funds will be utilised for procurement of consultancy services for implementation of infrastructural projects along the Corridor V c, in order to step-up projects implementation.

The Council of Ministers of BIH defined a Proposal Loan Agreement (University of Bihać Modernisation Project) between Bosnia and Herzegovina, represented by the Ministry of Finance and Treasury, and Raiffainsen Bank international AG, with basics for conclusion of the Agreement, which the Ministry of Finance and Treasury will provide to the Presidency of BIH for further procedure.

Under the Agreement, the Agreement University of Bihać Modernisation Project will receive funds for procurement of equipment and expert services.

Project’s total value is EUR 5,000,000, namely EUR 750,000 grant and EUR 4,250,000 loan funds, with 1.1 annual interest rate, 10.5 year term and one year grace period following the Project completion.

The Council of Ministers of BIH defined proposal basics for launching a procedure for conclusion of a Finance Agreement between Bosnia and Herzegovina, European Commission and Joint Administration Body in France, concerning an integration of IPA funds within the Mediterranean Transnational Cooperation Programme with the European Regional Development Assistance organised within the European Territorial Cooperation.

The Agreement provides for a merge of the European Fund for Regional Development funds and IPA funds for implementation of the Mediterranean Transnational Programme (MED), which promotes the regional linking policy and cross-border cooperation between EU member countries, EU candidate countries and potential candidate countries.

Under the Agreement, BIH accepts the IPA integrated support within the MED Programme and accepts the assistance disbursement, administration and audit rules and procedures.

The Council of Ministers of BIH defined proposal basics for conclusion of a Grant Agreement within IPA 2012 National Programme for Bosnia and Herzegovina – Part I – Water Supply and Sanitation in RS, between the European Investment Bank and Bosnia and Herzegovina.

The grant, worth EUR 10 million is intended for co-financing of water supply and sanitation facilities improvement in Republika Srpska.

The project refers to the period of 2009-2015 and it includes Municipality-specific programmes for the Municipalities of Prijedor, Kotor-Varoš, Ribnik, Brod, Pale, Sokolac, Rogatica, Trebinje, Zvornik, Gacko, Lopare, Donji Žabar, Gradiška, Han Pijesak, Laktaši, Novi Grad, Šamac, Šekovići, Šipovo, Trnovo, Vlasenica, Vukosavlje, Kozarska Dubica, and Teslić. The list of Muncicipaities may be amended in agreemnet witth the EIB.

The estimaetd project value is EUR 100 million , out of which 50 per accounts for EIB loans.Municipal own funds and other fnds account for EUR 37.5 million, and other than IPA EUR 10 million grant, which is the subject of this Agreemnt, another IPA grant from BIH National Programme for 2010- Part II should be provided in amount of EUR 2.5 million.

The Council of Ministers of BIH considered and accepted an Initiative for negotiations for conclusion of the First Amendment to Dec 27, 2010 Loan Agreement for Financing of Reconstruction and Extension of Gradiška Sanitation System, between Bosnia and Herzegovina, represented by the Ministry of Finance and Treasury, and the UniCredit Bank AG, Vienna, Austria.

The proposed Amendment prolongs the project completion date from June 30, 2012 to Dec. 30 2012, which implies the change of loan repayment schedule, of EUR 2,480,089 as originally defined. 

The Council of Ministers of BIH considered and accepted an Initiative for negotiations for conclusion of a Loan Agreement for Finance and Project, between the KfW, Frankfurt am Main (Lender), Bosnia and Herzegovina, represented by the Ministry of Finance and Treasury (Borrower), Republika Srpska, represented by the Ministry of Finance of Republika Srpska and Hydro Power Plant on Trebišnjica (Project Implementation Agency) for EUR 10 million worth Reconstruction of HPP Trebinje 1 Project – Phase III. 

The project funds consist of EUR 4 million grant and EUR 5 million loan of 12 year term, six month grace period following the inception point for some tranches but by Sec 39, 2016, at latest.

The Phase III will complement the previous Phases I and II of HPP Trebinje reconstruction activity, which will enable this HPP to function in the next 20 years without a need for new investments and with an average annual power generation of over 500 GWh.

Upon a proposal of the Ministry of Foreign Trade and Economic Relations, the Council of Ministers of BIH took a decision to adopt a Strategy of Control of Bovine Spongiform Encephalopathy (BSE).

In BSE related categorisation, Bosnia and Herzegovina has an uncertain status, and in order to change that it has to prove its compliance with the World Organisation for Animal Health (OIE) requirements and it must implement the existing regulations.

This decision will improve controls of animal health, food staffs of animal origin, facilities dealing with animal food, in addition to setting-up a single electronic data base and data processing unit, which would help improving conditions for getting BSE risk controlled status, and that all would contribute to opening ways for various activities, like export and import are.

The Council of Ministers of BIH considered and accepted a report on application of revised Action Plan of Bosnia and Herzegovina on Roma Education Needs for 2011.

The Revised Action Plan identifies four goals and 47 measures for achieving Roma children equality in accessibility to high quality education necessary for their effective social integration.

The Report, drafted by an expert team for the Revised Action Plan implementation monitoring,  indicates a good progress on planned goals, except in the area of preserving  of Roma language, culture and history.

The Council of Ministers of BIH defined proposal basics for negotiations for conclusion of an Agreement between the Council of Ministers of Bosnia and Herzegovina and Government of the Russian Federation on employment of Bosnia and Herzegovina’s citizens in the Russian Federation and citizens of the Russian Federation in Bosnia and Herzegovina. The Ministry of Foreign Affairs of BIH proposed the basics.

The bilateral Agreement on employment would secure encouragement to employment and labour mobility, it would prevent illegal migrations, create new jobs and improve working conditions on the territories of the contracting states.

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