Press Releases
Council of Ministers of Bosnia and Herzegovina Holds Its 152nd Session
08/29/2018
Vijeće ministara Bosne i Hercegovine
The Council of Ministers of BIH took a Decision, upon a proposal by the Ministry of Foreign Trade and Economic Relations, on adoption of a Bosnia and Herzegovina Framework Energy Strategy by 2035, which creates conditions for withdrawal of the IPA and WBIF resources for energy by BIH and for the attraction of other investors to the energy sector.
The adoption of this strategic document guides development of energy sector in Bosnia and Herzegovina by year 2035, which will have a positive impact to starting investments, as well as to market and regulatory reforms in all segments of the energy sector. Its side effects are expected to result in higher employment, decrease of public debt and an increase of competitiveness in BIH.
The documents was drafted in cooperation of competent Ministries, relevant institutions, research centres, associations and social partners and other stakeholders from the energy sector in BIH. It was drafted modularly, and the relevant Entity strategic documents were taken as a basis.
MIGRATION SITUATION
The Council of Ministers of BIH considered and adopted the Ministry of Security-tabled Information on situation in the area of migrations in Bosnia and Herzegovina concerning an increased inflow of migrants to BIH.
Also was adopted the Ministry of Security Information on the current state of affairs in the area of migrations in Bosnia and Herzegovina for the BIH Presidency.
That Information speaks that the BIH Border Police is assisted in its activities on an intensified supervision of the state border and suppression of illegal migration by the SIPA, Directorate for Coordination of Police Bodies of BIH, and Interior Ministry of Republika Srpska. Around 300 policemen were additionally engaged on strengthening of border surveillance.
The “Ušivak” military barracks near Hadžići and “Sedra” Hotel in Cazin will be used in the coming period of time for accommodation of migrants, concretely vulnerable groups and families with children. Also, the “Borik” Students’ Dormitory in Bihać might be used as an accommodation centre after it gets refurbished and humane conditions for accommodation created, while “Agrokomerc” facilities in Velika Kladuša will be used as a temporary accommodation centre.
In time from January 1 to date, the Foreigners’ Affairs Service registered 12,068 illegal migrants, of which 11,191 migrants expressed their intention to seek asylum, while 835 persons sought asylum. The major number of migrants comes from Pakistan, Syria, Iran, Afghanistan and Iraq.
CoM IMPLEMENTS FATF RECOMMENDATION
The Council of Ministers of BIH adopted, upon a proposal by the Ministry of Security, a Money Laundry and Financing Terrorism Risk Evaluation in Bosnia and Herzegovina 2018-2020 and an Action Plan for removal of identified insufficiencies in the AML/FT system.
The adoption of these important AML documents realises the first recommendation of the Financial Action Task Force (FATF).
This way conditions are to be created for a more effective engagement of available financial, technical and human resources in combating financial crime.
The BIH Money Laundry and Financing Terrorism Risk Evaluation in Bosnia and Herzegovina by 2022 and an Action Plan for removal of identified insufficiencies in the AML/FT system was drafted by an earlier formed work group together with tis sub-groups.
The Action Plan contains several precisely defined measures to be implemented by competent institutions by the end of 2019, aiming to strengthen the capacities of AML/FT responsible services.
FUNDS FOR CORRIDOR V c – PART 3
The Council of Ministers of BIH defined a Proposal Loan Contract (Corridor V c Project – Part 3) between Bosnia and Herzegovina and the European Bank for Reconstruction and Development, worth EUR 180 million. The Project plans construction of a motorway section between Paprikuša and Nemila of 5.1 km length, tunnel of 2 km length (Tunnel Ivan) and section long 8.7 km between Mostar South loop and Kvanj Tunnel.
The project is expected to be completed by December 31, 2022.
The two tranches Loan allocated to the Federation of BIH (Public Company Motorways of the Federation of BIH), will be available in the EUR 120 mil. first tranche after the Contract takes effects, and in the second available subsequently. The Loan term is 15 years, including four years of grace period.
The proposal Contract with Platform for its conclusion will be provided to the BIH Presidency for further procedure, and the Minister of Finance and Treasury of BIH was proposed for the BIH signatory.
MACRO-ECOMONIC INDICES FOR JANUARY-MAY 2018: ECONOMIC GROWTH OF 2%, EMPLOYMENT INCREASED FOR 2.1%, PUBLIC SPENDING DECERASED
The Council of Ministers of BIH took note of information of the Directorate for Economic Planning on macro-economic trends for January-May 2018, pointing that Bosnia and Herzegovina made economic growth of 2% in the Q1 of 2018, compared to the same period last year.
This GDP increase represents a sequel of economic growth trends from the last year, in which the economic growth rate in Q1 2018, compared with the Q4 2017 was 0.6 %.
The growth was made in all categories, except for public spending, which was decreased for 0.2%.
In the first five months of 2018 industrial production increased for 4.7%, also followed by the number of employees and import and export of goods values reaching two digit growth figures. The increase of number of employees with a slight increase of salaries, with an increase of small trade in real terms for about 7%
And increase of VAT net revenues points to an increase of private spending, which has the highest share in GDP.
The total number of employees in BIH in April 2018 was 795k and is higher for 2.1% relative to April 2017. The most significant contribution to that increase was made in the industrial production, trade and some services.
POSITIVE EFFECTS OF TEMPORARY SUSPENSION AND TEMPORARY DECREASE OF CUSTOMS TARIFFS IN IMPORT OF CERTAIN GOODS
The Council of Ministers took note of an Analysis of Application of Resolution on Temporary Suspension and Temporary Decrease of Customs Tariffs in Import of Certain Goods by December 31, 2017, prepared by the Ministry of Foreign Trade and Economic Relations of BIH. It was concluded that an increase of export took place in the majority of cases, along with the increased production with all beneficiaries of the privilege. The Analysis that covered 23 beneficiary companies shows that the resolution helped to preserve the existing employment levels in addition to new employment of 1.166 workers. Investments to enhancement of the existing production amounted to KM 53.520.815. The decrease of costs affects the creation of competitive products for both internal and foreign markets.
The Council of Ministers supplements and amends the resolution each year, in accordance to requirements by economic entities, so that the export increase, along with employment and investment trend, are expected to take place in the coming period, as well.
BIH DELEGATION DESIGNATED FOR MEETING OF SUB-COMMITTEE FOR INTERNAL MARKET
The Council of Ministers of BIH adopted Information on holding of the third meeting of the Sub-Committee for Internal Market and Competition, including Consumer Health Protection, on September 20, 2018 in Brussels. A Discussion Document was adopted and consent to the composition of the BIH delegation received endorsement.
FUNDS REDISTRIBUTION
The Council of Ministers of BIH took a decision on redistribution of the Ministry of Justice of BIH budget funds for year 2018 for the benefit of the Project Implementation Unit for the Construction of the Institute for Execution of Criminal Sanctions, Detention and Other Measures of Bosnia and Herzegovina Project, for the Unit operation costs for 2018.
It is about KM 120k for the continuation of work of the Unit in 2018, after July 2018, until when it had had the approved budget funds at their disposal.
The aim is to complete fully the State Prison Project after the technical reception, because monitoring of the financial and technical part of all concluded contracts must be secured.
DECISION ON GRANT FUNDS OF MINSITRY FOR HUMAN RIGHTS AND REFUGEES
The Council of Ministers of BIH took a decision, upon a proposal of the Ministry for Human Rights and Refugees, on allocation of grant funds of the Ministry for Human Rights and Refugees of BIH in the total amount of KM 339.750.
Four projects by NGOs included into human trafficking victims’ protection got total KM 60.000, and the amount of KM 39.750 will be used to support 11 projects of organisations of disabled persons
Also, KM 150k is to be used for support to 18 projects by national minorities’ organisations, and KM 40.00 was intended as a support to five projects by Associations of Families of Missing Persons in BIH. Seven projects by organisations for human rights dealing with human rights promotion in our country will be supported by KM 50.000.
The funds were allocated following a public ad procedure, pursuant to an earlier taken decision on criteria for grant allocation.
A new public call for allocation of KM 10.000 will be published for support to projects by Associations of families of Missing persons in BIH, since only five project proposals were candidate upon a published public ad.
FOREIGNERS EMPLOYMENT HAS NO QUANTITATIVE EFFECT TO LABOUR MARKET IN BIH: 2.593 WORK PERMITS ISSUED IN 2017
The Council of Ministers of BIH adopted the Ministry of Civil Affairs-proposed Annual Report on realisation of Decision on quota of work permits for foreigners’ employment in Bosnia and Herzegovina for 2017, according to which 2.593 work permits were issued, which is 1.33 less in relation to year 2016.
The most of foreigners working in Bosnia and Herzegovina originate from Serbia (26.19%). Turkey (14.58 %), and Croatia (6.25), followed by persons from China (5.01%) and Kuwait (4.24%). The major increase of number of issued work permits, 66.4% in relation to the last year, was registered among citizens of Egypt, while the most notable drop (23.89%) was evidenced among citizens of China.
By qualification structure, year 2017 shows that the major number of employed foreigners are holders of university degree - 1.193 (46.01%), followed by those holding the secondary school degree - 729 (28.11%), and unqualified workers – 245 (9.78%). The major number of work permits in 2017 was issued in trade – 616 (23.80%), processing industry – 312 (14.30%), real estate business – 306 (11.80%) and education – 236 (9.10%).
The quota coverage for the issued work permits to foreign citizens in relation to the proposed quota in 2017 was 55%, while in 2016 it was 67%.
The share of annual number of employed foreigners in relation to number of employees in Bosnia and Herzegovina over the last five years moved between 0.3% and 0.4 %, which shows that the employment of foreign workers has no quantitative effect to the labour market in Bosnia and Herzegovina.
INTERNATIONAL ASSISTANCE FOR AGRICULTURE SECTOR
The Council of Ministers of BIH adopted a Report on international assistance to the agriculture, food and rural development sector in Bosnia and Herzegovina in 2017.
The Ministry of Foreign Trade and Economic Relations will, in cooperation with a Work Group for Planning and Coordination of International Assistance in Agriculture, Food and Rural Development in BIH, continue the activities of palling and coordination of international assistance in this area.
The main donors to this sector are the European Union, Czech, Netherlands, Italy, Japan, Germany, Poland, United States of America, Sweden, Switzerland, and UNDPP and FAO. Many states, EU members, extend targeted assistance to individual sectors. IFIs, such as IFAD and the World Bank, together with member countries, give loans for development of agriculture of Bosnia and Herzegovina.
CONSENT FOR VOTE BY RUSSIAN CITIZENS
the Council of Ministers granted its consent for vote by citizens of the Russia Federation staying in Bosnia and Herzegovina on September 9, for election of deputies in the Federal Assembly of the Russian Federation of the seventh seating, in time from 8.00 am to 8.00 pm in the premises of the Russian Federation Embassy, at 93 Urian Dedina Str., Sarajevo, and early vote on September 7, 2018 in time between 9.00 am and 2.00 pm in the premises of the “Optima Grupa” Company, Ltd., at 37a Kralja Alfonsa XIII Str, Banja Luka. The Ministry of Foreign Affairs of Bosnia and Herzegovina is responsible to inform the Russian Federation Embassy in Sarajevo on granting the consent.
ADMISSION OF US BASKET PLAYER INTO BIH CITIZENSHIP
The Council of Ministers of BIH, upon a proposal by the Ministry of Civil Affairs, took a decision on admission of US female basket player Jonquel Ortflea Thierese Jones into the citizenship of Bosnia and Herzegovina. (end)