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FBiH Govt. on EU support for mitigating the negative consequences of energy crisis


MOSTAR, November 24 (FENA) - At today's meeting, the Government of the Federation of Bosnia and Herzegovina accepted the information on the potential budget support of the European Union (EU) to Bosnia and Herzegovina to mitigate the negative socio-economic impact of the energy crisis. 

With the conclusions reached today, the FBiH Government supports the Council of Ministers of BiH in the process of adopting the Action Plan/Road Map prepared by the EU Delegation to BiH, to create the conditions for signing a contract within the framework of the Energy Support Package, announced the Press Service of the FBiH Government.

As stated in the information, during the visit of the President of the European Commission (EC) Ursula von der Layen to our country on October 28 this year, an energy package for the Western Balkans worth 500 million euros was presented, of which 70 million is intended directly for mitigating the consequences of the increase in energy prices for the economy and vulnerable households in Bosnia and Herzegovina.

According to the position of the EU Delegation, of the total amount of funds intended for BiH, it is planned that they will be divided between the entities and the Brčko District, in the ratio of 66 percent for the FBiH, 33 percent for the RS and one percent for the Brčko District.

Budget support is a mechanism that functions in such a way that the beneficiary state pays the funds to the end users, and then the EC reimburses them to the state according to a pre-agreed scheme. In this case, BiH, if it fulfills the condition for the payment of the first tranche through the adoption of the Action Plan/Road Map, can expect the allocation of 90 percent of the total amount in the first quarter of 2023, and the remaining 10 percent, as the second tranche, will be paid to BiH during 2024 based on the EC's assessment of the state's progress in implementing the agreed measures.

The first measure includes a subsidy which provides that, out of the total number of 165,000 vulnerable households that would have this support to overcome the consequences of the increase in heating bill prices in 2022/23, 109,000 beneficiaries will apply to the Federation of Bosnia and Herzegovina.

The FBiH Government will appoint a working group for monitoring and implementation of budgetary support from the EU, which will consist of representatives of relevant FBiH ministries, institutions and professional services.

Namely, as stated in the information, financial support for energy efficiency is planned for a total of 4,000 residential buildings in BiH, of which 2,600 are in FBiH. The plan also includes support for 400 micro, small and medium-sized enterprises in BiH to ensure business continuity, and of that number, by the distribution criteria, 264 are in FBiH.

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