EU aid to Bosnia-Herzegovina is given in the form of grants with no obligation other than the political commitment of the beneficiary. It is important to emphasise this particular aspect of European aid for the following reasons:

• control over the use of funds is much more complex when it is given as a grant rather than a loan to be repaid by the beneficiary. The Commission therefore has to monitor every stage of the aid implementation very closely and this may involve long drawn out procedures;

• the Commission may take decisions in the interests of Community taxpayers to prevent irregularities or misuse of funds in the various programmes;

• the Commission is bound to apply the principle of political conditionality very strictly. In no way is aid given to those who do not respect the terms of the Dayton/Paris peace agreement.

Co-ordinating international efforts

Hardly a week after the signature of the peace accords on December 21st and 22nd 1995, the European Commission, together with the World Bank organised the first donor conference. If international efforts were to be efficient, a frame of reference had to be created within which all actions could be co-ordinated. The evaluation of war damage undertaken by engineers from the International Management Group (created and supported by the EC) acts as a reference point for all donors.

The European Union set the ball rolling by announcing its 1 billion ECU contribution to the international reconstruction effort for the period 1996 to 1999. And the ball is still rolling. On the Commission's initiative, the major donors met again in Brussels in April 1996, July 1997 and in May 1998. More than 50 countries are taking an active part in the co-ordinated reconstruction effort in Bosnia.

The supervision of the implementation of the civil aspects of the Dayton/Paris agreement has been assigned to the Office of the High Representative (OHR). Nearly half of its running costs are funded by the Commission, in addition to the support given to specific projects the OHR undertakes such as co-ordinating international agencies.

Green light for economic recovery 4th donors' conference

The fourth donors' conference which was held in Brussels last May 7th and 8th , confirmed the commitment of the 48 countries and 30 international organisations which are the mainspring of the reconstruction effort, since the objective of 1.1 billion dollars has been exceeded (1.250 billion dollars have been pledged). "It's a real success" declared François Lamoureux, Deputy Director-General, European Commission DGIA. "The European Union, which provides 50% of the aid to Bosnia-Herzegovina, is satisfied with the overall improvement in the situation", stressed François

Lamoureux, "but the EU is still concerned by the slowness with which the Dayton accords are being implemented, especially as regards the return of refugees, co-operation with the Court of The Hague and co-operation between the two Entities that make up the country".

The Conference opened with the announcement of the agreement concluded between the authorities of Bosnia-Herzegovina and the International Monetary Fund (IMF); this agreement means that at last measures can be envisaged with a view to reflating the country's economy. It will now be possible to implement the programme of external aid in a macro-economic framework at national level, whereby the whole population of Bosnia-Herzegovina will benefit.

IMG's architects and engineers plan the reconstruction

The IMG offers considerable operational support to the international community. Its team of engineers and architects co-ordinates, supervises and assesses the reconstruction projects, where it attaches particular importance to the long-term financial feasibility of the projects. The know-how and responsibilities of IMG will be progressively transferred to the national and local authorities in Bosnia-Herzegovina.

The International Management Group (IMG) was created in 1993 with the support of the European Commission. It is today playing a leading role in the co-ordination of reconstruction activities.

IMG's 145 engineers and architects evaluate needs, establish priorities, inform donors and local authorities and facilitate the start up of projects by preparing documents, supervising sites and evaluating progress. IMG has built up an essential database for the co-ordination of activities of the various donors in the reconstruction field, whether it be roads, bridges, houses, public buildings, water installations or telecommunications.

IMG engineers and architects supply essential information to donors and are a driving force behind various Task Forces established for each sector (housing, transport, water and sanitation, power and telecommunications). Relevant local authorities are represented in these task forces as are the main donors under the auspices of the OHR.

Reconstructing the city of Mostar

The administration of the city of Mostar was entrusted to the European Union following the Washington agreement of 1994, which put an end to the conflict between Croats and Bosniaks. This is very much a unique experience for the EU, and a first in the framework of the Union's Common Foreign and Security Policy. The European Union administration of Mostar (EUAM) started on 23 July 1994, just after the end of the hostilities, in a city divided by a confrontation line between Croats and

Bosniaks. The level of destruction was startling: more than 5,000 buildings destroyed, industry and infrastructures devastated, 2,000 people killed, 26,000 refugees or displaced persons.

Starting from the principle that peace could only be consolidated by considerable economic aid, the Commission drew up a vast reconstruction plan for the city. The work undertaken has made it possible to rebuild the basic infrastructures in key sectors, such as water supplies, electricity, public transport, telephone networks, as well as completely restoring the hospital and health centres, and repairing more than 6000 houses, 25 schools and 8 nursery schools, the rebuilding of the airport and six bridges, including those of Carinski (144 metres), Hasen Brkic (112.5 metres) and Aviator (133 metres).

The European Administration of Mostar has also invested in the socio-cultural sector, which was totally destroyed by the war. Families and children suffering from the trauma of their experiences have been able to obtain psychological help, and elderly people without resources were given support. Artistic exhibitions, concerts and sports competitions have been organised to help rebuild the social fabric torn apart by the war.