7.1  ESTIMATED COST BREAKDOWN

The figures given hereafter are estimates which could be amended by the Commission following more detailed assessments for each component. Actual allocations should be flexible to also take into account the evolution of particular programmes and the progress made by the local authorities in policy reforms.

in million EURO

I  Democratisation and institution building 17,00
Dayton Human Rights Institutions 2,40
Rule of Law 7,80
Customs and Taxation 6,80

II  Sustainable Economic Development 37,00
Private sector development 6,00
Reform of payments bureaus 1,00
ME credits 5,00
Balance of payments 15,00
EIB interest subsidies 8,00
Water and environment 2,00

III  Integrated activities to encourage refugee return 69,00
Integrated programme 44,00
Mortgage credits 10,00
Micro-credits 5,00
SFOR micro-projects 2,00
Advisory service/Quick impact facility 4,00
Mine clearance 4,00

IV  Civil society and social development 15,20
SSO 2,00
Social development 1,90
Education 5,00
Health 3,70
Media 2,40 

V  Support to Programme implementation (ATA) 8,00

Total Million EURO 146,00 

7.2  DIVISION BETWEEN PHARE AND OBNOVA

7.2.1  Estimated allocations under Phare and OBNOVA

The priorities retained will be funded through Budget Lines B7-543 - Phare - and B7-541 - OBNOVA. The estimated split between the two programmes is :

• Phare: EURO 25,20 million
• OBNOVA: EURO 120,80 million

7.2.2  Phare funding

In line with the conditions and steps laid down in the Regional Approach, "Phare assistance will be limited to projects in direct support to the peace agreements, in particular the building of cross-entity links and refugee return".

This will include:

• Support to the Dayton institutions (direct support to the peace agreements)
• Rule of law which will create a secure environment for refugee return
• Institution building in environment and water sectors to foster co-operation between the two entities.
• Education and health (as additional conditions for refugee return).

Programme References:

in million EURO

I  Democratisation and institution building 12,50
Dayton Human Rights Institutions 2,40
Rule of Law 7,80
Customs/ASYCUDA 2,30

II  Sustainable Economic Development 2,00
Water and environment 2,00

IV  Civil society and social development 8,70
Education 5,00
Health 3,70

V Support to Programme implementation (ATA) 2,00 

7.2.3  OBNOVA funding

OBNOVA funding will be used to further "underpin the reconstruction process, to encourage return of refugees, reconciliation and regional economic co-operation, and to create the economic and social conditions that will lay the foundations for the development" ¹² of Bosnia and Herzegovina by supporting CAFAO, economic development activities, integrated assistance activities, social development and media projects.

Programme References:

in million EURO
I  Democratisation and institution building 4,50
Customs/CAFAO 4,50

II  Sustainable Economic Development 35,00
Private sector development 6,00
Reform of payments bureaus 1,00
SME credits 5,00
Balance of payments 15,00
EIB interest subsidies 8,00

III  Integrated activities to encourage refugee return 69,00
Integrated programme 44,00
Mortgage credits 10,00
Micro-credits 5,00
SFOR micro-projects 2,00
Advisory service/Quick impact facility 4,00
Mine clearance 4,00

IV  Civil society and social development 6,30
SSO 2,00
Social development 1,90
Media 2,40

V  Support to Programme implementation (ATA) 6,00

7.3  ADDITIONAL EC FUNDING IN 1999

Bosnia and Herzegovina will also benefit in 1999 from the following grant allocations (estimated EURO 70 million) :

Customs and Taxation (B7-544): EURO 9 million
ECHO: EURO 56,4 million
Mine clearance (B7-661): EURO 1 million (to be confirmed)
Democracy (B7-700): to be defined
LIFE: to be defined

Balance of Payments: EURO 30 million (Community loan)
EIB credit scheme: EURO 100 million (over a two year period) 

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