A Framework Agreement was signed between the State of Bosnia and Herzegovina and the European Investment Bank (EIB) by Minister of Treasury of Bosnia and Herzegovina Institutions Spasoje Túsevljak and EIB Vice-President, Ewald Nowotny on 9th November 2000 in Sarajevo.
This Agreement sets the basis for the EIB's future activities in Bosnia and Herzegovina under the 2000-2007 Lending Mandate for Central and Eastern Europe, which has recently been extended to EIB's activities in the country. The EIB will finance capital investment projects which will contribute further to support the country's reconstruction and strengthen its economic base.
A finance contract between the State of Bosnia and Herzegovina and the EIB was signed on the same occasion for EUR 60 million¹, to be onlent to the Federation of Bosnia and Herzegovina and the Republika Srpska. The loan goes towards a EUR 234 million project for the reconstruction of Bosnia and Herzegovina's power transmission and distribution systems, due for completion within a three-year period beginning 2001. This project is being co-financed by the World Bank and the EBRD.
The project is included in the Quick Start² package endorsed by the Regional Funding Conference for South-Eastern Europe in March 2000. It will mark a further step in EIB's commitment to make an appropriate contribution to the reconstruction and development of Bosnia and Herzegovina's economy.
The European Investment Bank (EIB) was set up in 1958 under the Treaty of Rome to provide loan finance for capital investment furthering European Union objectives. It participates in the implementation of EU policies towards third countries that have co-operation or association agreements with the Union.
To underline its commitment to future post-war reconstruction in the Balkan area, the European Investment Bank (EIB) played an active role in the preparation phase of the reconstruction investment programme, in cooperation with the European Commission and the other multilateral financing institutions. The list of potential infrastructure projects which was published in the Study on Basic Infrastructure Investment in South-Eastern Europe comprises a total of 85 projects totalling EUR 4 billion. Of this total 35 projects are Quick-Start totalling EUR 1.1 billion, in which the EIB has a lead role in 14, totalling EUR 720 million, i.e. 65% of the total. 50 projects are "Near-Start", totalling some EUR 3 billion, of which EIB has a lead role in 18, amounting to some EUR 1 billion, i.e. 33% of the total Near-Start package.
(1)1EUR = 0.87650 USD, 0.596700 GBP
(2) Projects have been grouped into a Quick-Start Package of projects for which implementation is likely to start, or a tender will be awarded up to March 2001; a Near-Term Package of projects which appear prima facie economically justified and do not present major sector or project issues; and a Medium-Term Package of projects requiring further investigation or analysis.