Foreword

Table of Contents

1  INTRODUCTION

2  CONTEXT

2.1  POLITICAL SITUATION
2.1.1  Bilateral Relations between the European Union and Bosnia and Herzegovina
2.1.2  Implementation of the Dayton/Paris Peace Agreements
2.1.3  Recent political developments

2.2  SOCIO-ECONOMIC SITUATION
2.2.1  Macroeconomic developments
2.2.2  Support by multilateral institutions
2.2.3  Future Reform Priorities

2.3  RETURN

3  REVIEW OF PAST EC ASSISTANCE

3.1  OVERVIEW OF PHARE/OBNOVA ASSISTANCE
3.1.1  1996 -- Essential Aid
3.1.2  1997 -- Reconstruction
3.1.3  1998 -- Refugee Return

3.2  OTHER EC FUNDED PROGRAMMES
3.2.1  Humanitarian assistance - ECHO
3.2.2  Others

4  PROGRAMME IMPLEMENTATION ENVIRONMENT

4.1  CONSTRAINTS AFFECTING IMPLEMENTATION

4.2  CONDITIONALITY

4.3  DONOR CO-ORDINATION

4.4  COORDINATION WITH OTHER EC PROGRAMMES

5  OBJECTIVES AND GUIDING PRINCIPLES

5.1  GENERAL OBJECTIVES

5.2  GUIDING PRINCIPLES

5.3  REQUIREMENTS FOR SUCCESS OF THE PROGRAMMES

6  PROPOSED PROGRAMME ORIENTATIONS

6.1  DEMOCRATISATION AND INSTITUTION BUILDING
6.1.1  Dayton Human Rights institutions
    6.1.1.1  Commission for Real Property Claims
    6.1.1.2  Office of the Human Rights Ombudsperson
    6.1.1.3  Human Rights Chamber
6.1.2  Rule of Law
    6.1.2.1  Police Academies in the Federation and the RS
    6.1.2.2  State Constitutional Court
    6.1.2.3  Judicial Reform
6.1.3  Support to the Customs sector
    6.1.3.1  Customs Assistance and Fiscal Office - the CAFAO programme
    6.1.3.2  An automated system for customs data : ASYCUDA++

6.2  SUSTAINABLE ECONOMIC DEVELOPMENT
6.2.1  Macro-Economic Assistance/Support to the Balance of Payments
6.2.2  Structural Reform and private sector development
    6.2.2.1  The ZPP Central Payments Bureaus
    6.2.2.2  Privatisation and Business Environment
    6.2.2.3  Foreign investment and enterprise support
    6.2.2.4  Regional Development
6.2.3  Small and medium sized enterprise credit line facility
6.2.4  Infrastructure development
6.2.5  Water and environment

6.3  INTEGRATED ACTIVITIES TO ENCOURAGE REFUGEE RETURN
6.3.1  Rationale
6.3.2  Enhancing the efficiency of the Commission programme delivery
6.3.3  Proposed programme
    6.3.3.1  Integrated return projects
    6.3.3.2  Quick Impact Employment-Creation Fund and Business advisory service
    6.3.3.3  Mortgage credits
    6.3.3.4  Micro-credits
    6.3.3.5  Micro-projects
    6.3.3.6  Mine clearance

6.4  CIVIL SOCIETY AND SOCIAL DEVELOPMENT
6.4.1  Small-Scale Operations (SSO)
6.4.2  Social Development
    6.4.2.1  Social Protection and Social Safety Net
    6.4.2.2  Social infrastructure
6.4.3  Education
6.4.4  Health sector
6.4.5  Media

7  COST AND FINANCING PLAN

7.1  ESTIMATED COST BREAKDOWN

7.2  DIVISION BETWEEN PHARE AND OBNOVA
7.2.1  Estimated allocations under Phare and OBNOVA
7.2.2  Phare funding
7.2.3  OBNOVA funding

7.3  ADDITIONAL EC FUNDING IN 1999

8  IMPLEMENTATION ARRANGEMENTS

8.1  GENERAL PRINCIPLES

8.2  SPECIFIC MODALITIES REGARDING REFUGEE RETURN

9  MONITORING, EVALUATION AND AUDIT

FOOTNOTES

European Commission
Directorate General External Relations
200, Rue de la Loi
B-1049 Brussels
Belgium
Tel.: +32 2 299 11 11
Fax: +32 2 295 01 38

European Commission Representation Office
to Bosnia and Herzegovina
Dubrovacka, 6
71 000 Sarajevo
Bosnia and Herzegovina
Tel.: +387 71 666 044
Fax: +387 71 666 037

E-mail: eudelbih@bih.net.ba