ANNEX
SUPPORT FOR THE OPERATIONAL BUDGET OF THE OFFICE OF THE
HIGH REPRESENTATIVE (OHR) IN BOSNIA AND HERZEGOVINA FROM
JULY 2013 TO JUNE 2014
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IDENTIFICATION
Beneficiary
Bosnia and Herzegovina
CRIS decision number
IPA/2013/24831
Year
2013
EU contribution
EUR 3 747 025
Implementing Authority
European Commission
Final date for concluding
Financing Agreements with a
beneficiary country
The programme is implemented without a Financing
Agreement
Final date for concluding
procurement and grant
contracts
30 November 2014
Final date for operational
implementation
30 November 2017
Final date for programme
closure
30 November 2020
Budget line(s) concerned
22.0203 Interim Civilian Administrations in the Western
Balkans
Programming Unit
DG Enlargement, Unit C1
Implementation Unit/ EU
Delegation
DG Enlargement, Unit C1
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2.1
THE PROGRAMME
PRIORITIES SELECTED UNDER THIS PROGRAMME
Priority axis 1: Political criteria.
2.2
SECTORS SELECTED UNDER THIS PROGRAMME AND DONOR COORDINATION
Acquis related and other Actions
Donor coordination is ensured by the Peace Implementation Council (PIC).
2.3
DESCRIPTION
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Project title
Support for the operational budget of the Office of the High Representative (OHR) in
Bosnia and Herzegovina from July 2013 to June 2014
Overall project objective
The overall objective of the assistance to be provided under this programme is to
support the High Representative in BiH to fulfil his mandate. The mandate of the
High Representative is to oversee all civilian aspects of the implementation of the
Peace Agreement for Bosnia and Herzegovina, initialled in Dayton on 21 November
1995 and signed in Paris on 14 December 1995 (The General Framework Agreement
for Peace or ‘GFAP’). The mandate of the High Representative is set out in Annex 10
of the GFAP. The Peace Implementation Council (PIC), a group of 55 representatives
of governments and international organisations which sponsor and direct the peace
implementation process, has subsequently elaborated on his mandate.
Specific project objective
The specific objective of the assistance to be provided under this programme is to
facilitate the smooth operation of the Office of the High Representative (OHR) in
Bosnia and Herzegovina from July 2013 to June 2014 and to ensure that the activities
of the OHR do not conflict with the tasks and functions of the EU, in particular those
of the EUSR in Bosnia and Herzegovina.
Main results expected
The OHR – in cooperation with the EU - works on the further completion of its
mandate, in particular the fulfilment of the remaining "5+2 objectives and
conditions" not yet completed.
It is expected that the activities of the OHR are well coordinated with the EU.
Beneficiary
The Office of the High Representative (OHR) in Bosnia and Herzegovina
(international organization)
Implementation modalities
The yearly budget of the OHR is approved by the Steering Board of the PIC, which
includes the Commission and several EU Member States, on the basis of the scale and
nature of activities entrusted to the OHR in the period considered. The Steering Board
also approves the mid-year budget review of the OHR, including revised allocations
for each budget item in the budget period.
The programme will be implemented by means of a direct operating grant awarded to
the Office of the High Representative in Bosnia and Herzegovina, on the basis of
Article 190.1(c) of the Rules of Application of the Financial Regulation, which
provides for the award of direct grants “to bodies with a de jure or de facto monopoly
duly substantiated in the award decision”. The European Union has committed to
finance part of the OHR budget until it is completely phased out. To this end, a direct
grant agreement will be concluded with the Office of the High Representative in
Bosnia and Herzegovina in the 3rd quarter of 2013.
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A liquidation phase of an additional six months will follow the final closure of the
operations of the OHR. The funds for the liquidation phase have already been
committed (Commission Decision E/2006/2804 adopted on 15 December 2006). The
Commission disbursed 95% of this amount (or EUR 471 534) to the OHR together
with the contribution to the Operating Budget for 2007. The OHR ring-fenced the
amounts for the Liquidation Budget collected from donors until the PIC finally
decides to close the OHR. Funds allocated for liquidation in Commission Decision
E/2006/2804 will therefore be used at a later stage than initially foreseen.
Selection criteria
The OHR has to have the operational and financial capacity to carry out the tasks
indicated in the OHR Budget agreed by the PIC Steering Board Ambassadors on 10
June 2013.
Award criteria
- Relevance of the action
- Effectiveness and feasibility of the action
- Cost-effectiveness of the action
Indicative amount of the grant
EUR 3 747 025
Maximum possible rate of EU co-financing
53% of the total operational budget of the Office of the High Representative (OHR) in
Bosnia and Herzegovina from July 2013 to June 2014 as approved by the Steering
Board Ambassadors on 10 June 2013. In case the contributions of other donors
amount to less than the foreseen 47% of the approved budget the EU contribution may
exceed 53% of the actual eligible expenditure following a thorough justification and
approval on a case by case basis but in any case may not be higher than EUR 3 747
025.
Overview of past and on-going assistance
The European Union has supported the OHR in Bosnia and Herzegovina since its
creation in 1996. EU contributions to the OHR over the years and up to 30 June 2013
have amounted to approximately EUR 159.3 million, partly through CFSP Joint
Actions, partly through Commission Decisions adopted on the basis of the Council
Regulation (EC) N° 1080/2000 and Council Regulation (EC) N° 1086/2006.
The present proposal is complementary to the EU financial assistance provided to
Bosnia and Herzegovina under the annual allocation of the IPA programme.
2.4
ASSUMPTIONS AND PRE–CONDITIONS
One assumption relating to this Financing Proposal is that, taking into account the
situation on the ground, the OHR will continue to operate uninterrupted until 30 June
2014.
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(i) The grant agreement to be signed with the beneficiary must include the detailed
budget agreed in Sarajevo by the PIC Steering Board Ambassadors on 10 June 2013.
(ii) Should the OHR’s mandate come to an end before 30 June 2014, the EU
contribution will be reduced pro rata.
(iii)
a) The EU contribution to the budget is granted under the condition that OHR
performs the tasks indicated in the OHR Budget (as shown in the explanatory notes
under each of the relevant sections) agreed by the PIC Steering Board Ambassadors
on 10 June 2013.
b) The EU contribution through the Instrument for Pre-accession Assistance to the
OHR budget is granted under the assumption that the OHR ensures full coordination
of its activities with the EU in line with the EU policy in Bosnia and Herzegovina.
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BUDGET
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3.1
INDICATIVE BUDGET TABLE (CENTRALISED MANAGEMENT)
Institution Building (IB)
Total
expenditure
Support to the
OHR budget
for the period
July 2013 to
June 2014
IPA EU
contribution
Total
(IB + INV)
Investment (INV)
Contribution by
other donors
Total
expenditure
IPA EU
contribution
EUR
(a)=(b)+(c)
EUR
(b)
%
EUR
(c)
%
EUR
(d)=(e)+(f)
EUR
(e)
7 069 858
3 747 025
53
3 322 833
47
0
0
Total IPA EU
contribution
Contribution by
other donors
%
EUR
(f)
0
%
EUR
(g)=(a)+(d)
EUR
(h)=(b)+(e)
%
7 069 858
3 747
025
100
Amounts net of VAT
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3.2
PRINCIPLE OF CO-FINANCING APPLYING TO THE PROGRAMME
The total OHR budget approved by the Peace Implementation Council for the period 1 July
2013 to 30 June 2014 amounts to EUR 7 069 858. The total EU contribution to the OHR
under this Financing Proposal amounts to EUR 3 747 025, corresponding to the agreed 53%
EU share of the operational OHR budget for the period from 1 July 2013 to 30 June 2014. The
funds committed under this Financing Proposal will be disbursed according to the provisions
of the grant agreement to be concluded between the Commission and the OHR.
The other donors are supposed to contribute to the approved budget of the OHR as follows:
United States of America (22%), Japan (10%), Russia (4%), Canada (3.03%), the
Organisation of the Islamic Conference (2.5%) and other countries, including EU and Balkan
countries (5.47%). However, Russia declared to reduce its contribution to 1.2%. 2.05% of the
budget is unallocated as a result of China’s withdrawal from the PIC (0.72%) in 2000 and a
decrease of the Ukrainian contribution from 1.48% to 0.148% in the same year.
The EU contribution has been calculated in relation to the total eligible expenditure.
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4.1
IMPLEMENTATION
GENERAL RULES FOR PROCUREMENT AND GRANT AWARD PROCEDURES
Grant award procedures shall follow the provisions of Part One Title VI and Part Two Title
IV Chapter 4 of the Financial Regulation No 966/2012 and Part One Title VI and Part Two
Title II Chapter 4 of its Rules of Application.
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5.1
MONITORING AND EVALUATION
MONITORING
The Commission may undertake any actions it deems necessary to monitor the programmes
concerned.
5.2
EVALUATION
Programmes shall be subject to ex ante evaluations, as well as interim and/or, ex post
evaluations in accordance with Articles 57 and 82 of IPA Implementing Regulation, with the
aim of improving the quality, effectiveness and consistency of the assistance from EU funds
and the strategy and implementation of the programmes.
The results of evaluations shall be taken into account in the programming and implementation
cycle.
The Commission may also carry out strategic evaluations.
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AUDIT, FINANCIAL CONTROL AND ANTI-FRAUD MEASURES
The accounts and operations of all parties involved in the implementation of this programme,
as well as all contracts and agreements implementing this programme, are subject to, on the
one hand, the supervision and financial control by the Commission (including the European
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Anti-Fraud Office), which may carry out checks at its discretion, either by itself or through an
outside auditor and, on the other hand, audits by the European Court of Auditors. This
includes measures such as ex-ante verification of tendering and contracting carried out by the
EU Delegation in the Beneficiary.
In order to ensure the efficient protection of the financial interests of the European Union, the
Commission (including the European Anti-Fraud Office) may conduct on-the-spot checks and
inspections in accordance with the procedures foreseen in Council Regulation (EC, Euratom)
2185/961.
The controls and audits described above are applicable to all contractors, subcontractors and
grant beneficiaries who have received EU funds.
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OJ L 292; 15.11.1996; p. 2
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