What is the Stability Pact?

The Pact is a political initiative to encourage and strengthen co-operation between the countries of South Eastern Europe as well as to streamline existing efforts for assisting South Eastern Europe’s political, economic and security integration in Europe. The Pact does not implement the projects, which were placed under its auspices. It is an instrument to co-ordinate and possibly accelerate the projects of all its partners, such as the European Commission, NATO and OSCE, the International Financial Institutions, the member states of the European Union, other Stability Pact partners such as the United States, Russia, Hungary, Canada, Norway and Switzerland as well as all the countries of South Eastern Europe.

Under the Regional Table, its steering body, the Stability Pact has
3 Working Tables:

• Working Table I is dealing with Democratisation & Human Rights;

• Working Table II with Economic Reconstruction, Development and Co-operation;

• Working Table III with Security (one Sub-table Security and Defence, one Sub-table Justice and Home Affairs).

So far, two Regional Conferences have taken place with the most recent one on 25 and 26 October 2001 in Bucharest: On this event, ministers and high level officials from 37 countries and 32 international organisations renewed their commitment to long term economic and social development for South Eastern Europe. A new set of 27 infrastructure projects secured donor financing of € 2.4 bn.

At a first Funding Conference in Brussels on 30 March 2000, € 2,4 bn were raised, which translated in the so-called Quick Start Package, with a total of 244 regional projects. One year later, 82% of these projects were started, making it one of the fastest assistance packages by the international community.

Stability Pact activities in BiH (see Annexes for details)

Stability Pact Projects in BiH , including regional projects with BiH-participation

Working Table I

Integrated Refugee Return Programme See annexes

58 projects Approx. 23 Mio Euro

Working Table II (Infrastructure)

6 projects Approx. 568 Mio Euro

(of which some projects are regional in character
and some are partially included in the Quick Start
Package) See annexes

Working Table III

5 project categories, some of them regional See annexes

WORKING TABLE I — democracy and human rights

Projects in Bosnia-Herzegovina

Refugee Matters – Regional Return Initiative (BiH, Croatia, Yugoslavia)

Most of the projects identified and funded through various donors in the Quick Start Package, at the Regional Conference in Bucharest and through a range of bi-lateral and multi-lateral programs are now under implementation and are approaching completion. Planning for 2002 is underway but the success of return exceeds available resources by far. (Total current financial engagements are estimated to be at over € 2 bn for the three countries concerned.)

As more than 56'683 so-called " minority" returns were reported for the current year as of 31 September, in addition to 67'000 returns recorded in the year 2000, the International Community recognised that the needs for assistance have increased as well and that reintegration assistance has been an important factor in support to this encouraging trend. Requirements of those not returning also need to be taken into consideration.

These significant gaps in support of return will now need to be addressed through a combination of bi-lateral and multilateral assistance, linked to budgetary support to the government to ensure the implementation of activities and programs on the macro economic and social level with direct and timely impact on refugee and returnee re/integration. The success of the return process and the measures taken, which have promoted and supported return so far, are at stake. A national program (as spelled out in the Protocol on Return priorities), jointly developed by the authorities OHR and UNHCR is regularly being updated and serves as basis for funding of reconstruction and return activities. Close to 20'000 families having returned remain without reconstruction assistance.

The Government of Bosnia-Herzegovina, as a full partner in the Stability Pact "Regional Return Initiative" has endorsed and supported the development of the "Agenda for Regional Action" (AREA), developed in a consultative process over the last 6 months by the countries of the region, donors and international organisations and institutions under the auspices of the Stability Pact. AREA provides a comprehensive roadmap for the implementation of durable solutions within the coming 2-3 years for the remaining 1 million refugees and displaced persons in the region, out of which 700'000 are Bosnians. The enhanced bi-lateral and regional co-operation, between Bosnia, Croatia and FRY will facilitate the realisation of this ambitious goal.

Media

There are 8 media projects where BiH is one of the beneficiary countries for a total of about € 7.5 mn.

Education and Youth

There are 31 education and youth projects where BiH is one of the beneficiary countries for a total of about € 6.6 mn.

Human rights and Minorities

There are 8 projects on human rights and minorities where BiH is one of the beneficiary countries for a total of about € 3.18 mn.

Parliamentary Co-operation

All four projects on parliamentary co-operation involve BiH with a total amount of about € 3.5 mn.

Gender

There are 3 gender projects where BiH is one of the beneficiary countries for a total of about € 1.1 mn.

Local Democracy

There are 4 local government projects where BiH is one of the beneficiary countries for a total of about € 0.8 mn.

WORKING TABLE II
economic reconstruction, development and cooperation

Projects in Bosnia-Herzegovina

Economic reforms and business development

Sava River . On 29 November 2001 Bosnia-Herzegovina, Croatia, Slovenia and Yugoslavia signed a letter of intent to establish a Sava River Commission and to elaborate an international treaty for joint management of the Sava River, by summer 2002. This initiative is co-chaired by BiH and the Stability Pact.

Initiative for Social Cohesion : The Initiative for Social Cohesion was initiated in early 2001, and BiH is one of its members. In September 2001, Ministers agreed in Dubrovnik to harmonise legislation and policies in the field of health in South Eastern Europe. Talks have started to establish a Regional School for Public Health.

Two projects of trade insurance in BiH (political risk insurance and supporting B&H exporters) Regional Project / BiH & Albania, Macedonia – Total cost € 55 mn)

IFC Balkan Enterprise Facility : support development of SMEs; support dissemination of knowledge and information relevant to the private sector. Programme started in September 2000 with opening of headquarter facilities in Sarajevo. Field Office in Banja Luka, Belgrade and others are to follow. Regional Project / BiH &Albania, Kosovo, Macedonia (Total cost € 23.4 mn).

Micro Enterprise Banks . Such a bank is succesfully operating in BiH. As a regional project, it also includes Albania, Bulgaria, Kosovo, Macedonia and Romania (Total cost € 42.5 mn).

Bosnia-Herzegovina is a signatory of the Memorandum of Understanding on Trade Liberalisation and Facilitation. Apart from BiH, the MoU was signed on 27 June 2001 by Albania, Bulgaria, Croatia, FYR Macedonia, Romania and Yugoslavia. Its major objective is to establish a complete network of Free Trade Agreements in the SEE region by the end of 2002. The agreements are to meet WTO norms and standards set by the MoU. Negotiations on the conclusions of bilateral Free Trade Agreements have started. As a result, a market of 55 million consumers where trade is liberalised will be established.

Infrastructure

See following project sheets.

• Roads Section of Corridor Vc

• Bridge Reconstruction

• 3^rd Electric Power Reconstruction Project (Quick Start phase)

• Main roads and bridges rehabilitation

• Railways recovery project

• 3rd Electric Power Transmission (extension)

WORKING TABLE III
defence and security — justice and home affairs

Projects in Bosnia-Herzegovina

Several Working Table III initiatives focus on Bosnia-Herzegovina individually, while BiH is at the same time recipient within the framework of various regional projects.

SUB-TABLE ON DEFENCE AND SECURITY

1. Retraining of Redundant Military Personnel

This Stability Pact project aims at integrating military personnel who became redundant as a result of defence reform in Bosnia and Herzegovina. The principal contributor to that project is the World Bank, with co-financing from The Netherlands, Italy and Norway. 680 ex-soldiers have been placed to jobs through this project and 76 firms have been awarded contracts for employing and training these ex-soldiers. The cost of the project is $ 20.47 mn, of which the World Bank is carrying $ 15 mn.

2. Disaster Prevention and Preparedness Initiative

Disaster Prevention and Preparedness Initiative held a workshop in Geneva on 26/27 June 2001 on the basis of a "Regional Report" that had been prepared following 12 country visits. BiH took active part in this workshop and was exemplary in taking charge of two of the priority areas that came out of the workshop. Other regional countries took the example of BiH in sharing between themselves lead responsibilities. The next meeting of DPPI, on the suggestion of BiH, was held in BiH in October 2001.

3. Mine action

Anti-personnel mines represent a permanent danger to people. They are a serious obstacle to refugee return and economic progress in various countries of the region. The Stability Pact therefore seeks to develop an integrated humanitarian de-mining strategy for the region. The aim is to build on work already under way in Bosnia and Herzegovina as well as in other countries. The first meeting of SP mine action initiative took place in Sarajevo in May 2000.

SUB-TABLE ON JUSTICE AND HOME AFFAIRS

2. Fight against criminal activities

   The Anti-Corruption Initiative is a regional initiative which involves BiH. The total cost of the project is € 1.77 mn with funding from Greece, France, US, Norway, Switzerland, Finland, Germany, Sweden, Slovenia. This initiative started in autumn 2000.

3. Judiciary, Police and Police border

The first project provides technical assistance and training/education on Legislative and Judicial Reforms. It is funded by Germany for a total of € 0.2 mn. The direct beneficiaries are civil servants from the Ministry of Justice. The project is underway in co-ordination with the Council of Europe.

The project Multinational Police Training provides training on criminal police and anti-drug task force in BiH. It also concerns border police in BiH, and standby police force and border police in Croatia. It is funded by Germany for a total of € 1.3 mn.