Agreement on Financial Cooperation between BiH and the FR Germany Signed

 

Vice Chairman of the Council of Ministers and minister of finance and treasury Mr. Dragan Vrankić and German Ambassador to BiH H.E. Joachim Schmidt signed an agreement between the BiH Council of Ministers and the Government of the Federal Republic of Germany on financial cooperation for 2006 totally amounting to 18 million Euros in Sarajevo.  

 

The Agreement will ensure financing of the SCADA Project – rehabilitation of a distribution network, which is an integral part of the Energy Project (IV) financed by the World Bank, the European Bank for Reconstruction and Development and the European Investment Bank.

Ambassador Schmidt stated that this represented an incentive from the FR Germany for the infrastructure and economic efficiency of Bosnia and Herzegovina, expressing his satisfaction over the fact that the Project involves all three suppliers of electric energy in the country.

Minister Vrankić expressed his thankfulness to the German Government for its continued support provided through various projects for Bosnia and Herzegovina, and for its intentions of further cooperation.   

The conditions of financing are: a financial grant of the Federal Republic of Germany in the amount of 6,000,000 Euros for the programme of the energy sector, 1,000,000 Euros for establishing the Fund for studies and professionals, and a loan from KfW-a up to 11,000,000 Euros for the programme of the energy sector.

The funds from the financial grant and loan for the programme of the energy sector in a total amount of 17,000,000 Euros will be allocated to Entities, namely electro distribution companies. /end