4 PROGRAMME IMPLEMENTATION ENVIRONMENT
4.1 CONSTRAINTS
AFFECTING IMPLEMENTATION
Since 1996,
substantial funding has been allocated to Bosnia and Herzegovina
through the Phare and Obnova programmes. Implementation rates have
not always met with the expectations of the beneficiaries or that of
the European Parliament or the Court of Auditors. A set of reasons
could explain the somewhat slow pace of project implementation for
the 1996 and 1997 programmes :
-
The first are all
related to the local environment in which the programmes are to
be implemented: (1) limited absorption capacity for
institutional related projects, (2) lack of data or designs for
infrastructure related projects, (3) need for de-mining before
project implementation can start in many areas, (4) political
tensions which result in slow decision making on the side of the
beneficiary. The absence of political agreement between the
various entities, the lack of effective institutions able to
approve the projects and the multiplicity of speakers
surrounding divergent interests (opposition between the national
level, the entity level and the local level) prevented in 1996
and 1997 a swift adoption of the basic documents and
consequently delayed the effective implementation of the
projects.
-
In addition,
certain constraints have resulted from the administrative
framework in which the Commission services have had to work. The
management of the programmes by the Commission on behalf of the
local authorities has been hampered by the existence of several
budgetary lines and Regulations (which were inadequate in the
particular post war environment of Bosnia and Herzegovina) as
well as staff limitations both in Brussels and in Sarajevo.
In 1998, significant
steps have been taken to improve the level of implementation: (i)
amendments brought to the OBNOVA Regulation have simplified the
decision-making process for project approval and implementation,
(ii) the management of the programmes has been deconcentrated to the
Commission Representation in Sarajevo supported in its tasks by a
Technical Assistance Unit and monitoring teams. A first assessment
indicates that the deconcentration has already had an impact on the
pace of programme implementation. The contracting in 1998 of EURO
230 million worth of projects can notably be credited to the
deconcentration process undertaken by the Commission combined with
an improved local environment for project implementation.
4.2 CONDITIONALITY
The Commission applies the
conditionality principles to the programmes it manages.
This is notably based
on the Regional Approach adopted in April 1997 which outlines the
political and economic conditions to be fulfilled in order to permit
the development of bilateral relations.
Specific obligations
have also been set for Bosnia and Herzegovina arising out of and
related to the peace agreements. They are as follows:
-
Establishment of functioning institutions as
provided for in the Constitution, and formulation of a foreign
trade and customs policy for Bosnia and Herzegovina;
-
Beginning of a credible process towards free
movement of persons, goods and capital within Bosnia and
Herzegovina;
-
Co-operation with the High Representative
including on Brcko;
-
Evidence of the implementation of a truly
unified City Council in Mostar and of effective functioning of
the UPFM, and cooperation in the establishment and functioning
of the Federation. Dismantling of all structures which the OHR
judges contrary to the spirit and letter of the Peace Agreement.
Evidence of cooperation with the International Tribunal, notably
in bringing Bosnian war criminals to justice before the
Tribunal.
In line with the
conditions and steps laid down in the Regional Approach, Phare
assistance is to be limited to projects in direct support to the
peace agreements, in particular the building of cross-entity links
and refugee return.
Conditionality has
notably been used to maintain the inter-entity character of the
projects and to facilitate refugee return. In order to implement the
conditionality, the Commission closely coordinates with the Office
of the High Representative and the Council. On this approach, the
Commission suspended in 1997 certain non humanitarian projects
intended for Republika Srpska.
4.3 DONOR CO-ORDINATION
Numerous donors and
International Financing Institutions are active in Bosnia and
Herzegovina. Under the chairmanship of the World Bank and the
European Commission, regular donor Conferences have been organised
to ensure maximum impact of the international aid effort. Effective
co-ordination is however best organised at local level through the
Economic Task Force and other more technical forums.
In addition, in order
to ensure the greatest possible synergies between the Community's
projects and those of the Member States, the revised OBNOVA
regulation requires for regular meetings between the Commission and
the Representatives of the Member States to consult, exchange
information and co-ordinate activities.
4.4 COORDINATION WITH OTHER EC
PROGRAMMES
The proposed projects under OBNOVA and Phare will be closely
coordinated with the following programmes:
- CAFAO, under B7-544
- ECHO for refugee return, health, food and social assistance
- Specific aid to the reception and voluntary repatriation of
refugees in the European Union
- Mine clearance budget line
- Democracy related activities
- LIFE in support to the environment
1999
PHARE AND OBNOVA - Table of Contents | Next:
Objectives and guiding principles |
