European Business Club October 29th, 2014 EU assistance to Economic Development in BiH EU Enlargement Martin SCHIEDER Head of Operations Section for Economic Development, Trade and Natural Resources EU Delegation to Bosnia and Herzegovina Main assistance programmes: EU financial assistance to BiH From post war reconstruction to support for EU accession. PHARE Programme OBNOVA Programme Community Assistance for Reconstruction and Democratic Stabilisation (CARDS) Instrument for Pre-Accession (IPA) Total support over the past 20 years: € 3.2 billion EU Enlargement Objective: Support participation in Stabilisation and Association Process and prepare for EU accession. National IPA programme for Bosnia and Hercegovina: Instrument for Pre-Accession (IPA I): 2007 to 2013 MEUR 2007 2008 2009 2010 2011 2012 2013 Total Transition assistance and capacity building 49,7 66,7 80,5 98,3 91,3 84,7 41,9 513,1 Cross border cooperation 1,0 1,0 1,0 2,2 2,2 2,6 2,6 12,6 50,7 67,7 81,5 100,5 93,5 87,3 44,5 525,7 Acquis and Other Activities (agriculture, food safety, energy, culture, community programmes), 16% Environment, 17% Justice and Home Affairs, 16% Transport, 11% EU Enlargement Social Development (health, education, social inclusion, civil society), 19% Private Sector Development, 8% Public Administration Development, 13% Draft Country Strategy Paper Programming process IPA II -ongoing IPA Priorities for 2014: Focus: Integrated socio-economic development SME Competitiveness and Innovation Objective: To strengthen development of SMEs EU Enlargement Private Sector Development: Past assistance - Trade, competition, state aid, IPR (approx. € 23,5 mil) - Industry, eexport promotion, SME's, regional and local economic development (approx. € 24,5 mil), - Tourism (TA + grants), (approx. € 7,5mil). Support to Private Sector Development Current assistance (approx. € 8.5mil) - EU Support for introduction of Quality Management Systems in accordance with ISO 9001 standard (€ 1,9 mil), - Support for development of Feasibility Studies for Business Infrastructure (€ 1,3 mil), - Grants for Local Economic Development (€ 5,2 mil). Pipeline - Support to SME competitiveness through the transfer of best Small Business Act practice (EBRD, € 2 mil) -IPA 2014 Special measures "Recovering SMEs in flood affected areas" (€ 9 mil) -IPA 2014 "SME Competitiveness Support Facility" (€ 9 mil) EU Enlargement Best practice from EU projects: -Export Support Facility (€ 100,000) – Pilot SME grant scheme implemented with Export Promotion Agency (BHEPA). -SME Voucher Scheme (€ 120,000) – Over 100 SME's assisted with introduction of standards, production in improvements, marketing, development of business plans. Support to SME competitiveness, export and introduction of standards EU Enlargement - EBRD Small Business Support Programme (€ 2 mil): 136 companies connected with international and local consultants (transfer of know-how, innovative technologies, introduction of standards). •Grant for Techno-Park in Zenica-laboratory for wood testing. Current initiatives: Support for the Introduction of Quality Management Systems – "EU QMS BiH Project " Support to SME competitiveness, export and introduction of standards -ongoing- EU Enlargement Assistance to SME's in whole BiH to obtain QMS certification in accordance with ISO 9001:2008 (public call launched in August on http://www.euqms.ba) - Implemented over past 3 months (started in August) -100 selected out of 271 received applications - majority of client SMEs: have less than 20 employees food processing; wood, metal, construction -At least 30% of SMEs should be certified by EoY and 30% by end of 2015 - 50 local consultants trained for QMS audit Overview of economic and financial impact of 9 Feasibility Studies ZONE SIZE (ha) TOTAL INVESMENT COST EXCL. VAT (m €) EMPLOYMENT IMPACT (No of jobs) DEMAND DYNAMICS PLANNED NO OF INVESTORS BIHAĆ BUSINESS PARK KAMENICA 34.3 6.78 1,095 17 investors (10 existing) 36 BRČKO BUSINESS PARK BASE McGOVERN 34.58 4.64 1,000 4 companies (3 existing) 41 9.5 1.44 460 4 companies (2 existing) 10 LAKTAŠI AGRO- BUSINESS PARK ALEKSANDROVAC 84.18 10.48 1,500 6 investors 30 LJUBUŠKI BUSINESS ZONE ZVIRICI 39.50 3.80 960 10 investors (4 existing) 48 MOSTAR RRC JUZNI LOGOR 0.28 1.33 50-300 - 25 NOVI TRAVNIK INDUSTRIAL PARK NEOBARJE 50.59 8.86 1,600 7 existing investors 50 ORAŠJE INDUSTRIAL PARK DUSINE 17.33 1.19 420 2 investors 10 TESLIĆ INDUSTRIAL ZONE LANARA 14.08 2.36 440 17 investors (9 foreign) 15 284.34 ha € 40.88 m 7,775 jobs 72 investors 255 investors BUSINESS ZONE 2] EU Support to Business Infrastructure (“EUSESBI") - ongoing- ISTOCNO NOVO SARAJEVO BUSINESS ZONE VRANJES TOTAL EU Enlargement Total investment 41MEUR – potential for 8,000 new jobs Support to Local Economic Development (LED) 5,2 MEUR IPA 2011 -ongoing- EU Enlargement 11 grants to the local partnerships BiH-wide for Improvement of business environment at local level through: -development of business incubators -entrepreneurial centres - SME grants to fast growing SMEs, women entrepreneurship - reconstruction of laboratory for testing joinery products - establishment of one-stop shops, etc. THANK YOU Martin SCHIEDER Head of Operations Section for Economic Development, Trade and Natural Resource EU Delegation to Bosnia and Herzegovina EU Enlargement