Recalling paragraph XI.2 of the Conclusions of the Peace Implementation Conference held in Bonn on 9 and 10 December 1997, in which the Peace Implementation Council welcomed the High Representative’s intention to use his final authority in theatre regarding interpretation of the Agreement on the Civilian implementation of the Peace Settlement in order to facilitate the resolution of any difficulties as aforesaid “by making binding decisions, as he judges necessary” on certain issues including (under sub-paragraph (c) thereof) measures to ensure implementation of the Peace Agreement throughout Bosnia and Herzegovina and its Entities”;

Further recalling that on 2 August 2000 the City Council of Mostar enacted the Decision on the fee for the management of areas for providing infrastructure pursuant to the Amendment XVI to the BiH Federation Constitution, Amendment I to the Constitution of the Hercegovina-Neretva Canton, article 64 of the Law on Local Self-Government of the HN Canton, article 5 of the Law on distribution of Public Revenues of the HN Canton, article 7, paragraph 2 and article 64 of the Interim Statute of the City of Mostar;

Noting that the fees stipulated in the said Decision provided approximately 50% of the revenues of the budget for the funding of the Administration of the City of Mostar;

Noting further that one of the effects of the subsequently adopted Law on Earmarking and Channeling a part of the Company’s Revenue Effectuated on the Basis of the Use of Hydro-Power Plants (Official Gazette of the Federation of Bosnia and Herzegovina, 44/02) is to re-allocate the revenues provided for under the Decision mentioned in the preceding paragraph to the budget of the municipalities and not to the budget of the Administration of the City of Mostar;

Noting also that this has created a financial crisis for the Administration of the City of Mostar and without  these fees from the stipulated companies to the Administration of the City of Mostar, the latter would collapse financially and, consequently would be unable to render public services in the City of Mostar;

Considering that  steps have already been taken to  establish a Commission  tasked with producing  a comprehensive proposal for the administrative future of the City, including its financing;

Bearing in mind that a unified Mostar City with a functioning City Administration is fundamental to create a democratic and multi-ethnic political process on local level;

Having consideredand borne in mind the totality of the matters aforesaid, the High Representative hereby issues the following:

DECISION

Enacting the Decision on Amendments to the Decision on the fee for the management of areas for providing infrastructure (City Official Gazette of the City of Mostar, 1/2000)

The said Decision shall enter into force as a Decision of the City of Mostar, with effect from the date provided for in Article 3 thereof, on an interim basis, until such time as the City Council of Mostar adopts the Decision in due form, without amendments and with no conditions attached.

The Decision shall come into force forthwith and shall be published without delay in the City Official Gazette of the City of Mostar.

AMENDMENTS TO THE DECISION ON THE FEE FOR THE MANAGEMENT OF AREAS FOR PROVIDING INFRASTRUCTURE

(City Official Gazette of the City of Mostar 1/2000)

Article 1

Article 2 of the Decision is amended as follows:

Paragraphs 2 through to 4 of Article 2 of the Decision shall be deleted.

Article 2

Article 3 of the Decision is amended as follows.

Article 3 in its entirety shall be deleted and a new Article 3 inserted to read as follows:

1.         The amount and method of calculation are defined as follows:

For companies for the generation, transmission and distribution of electric power which are using the hydro power plants in the territory of the City of Mostar, shall be obliged to pay for every kW of installed power of hydro energy plants: 1.70KM  (“Prescribed Fee Rate”).

2.                  The City of Mostar shall within thirty (30) days of these amendments coming in force provide the Council of the City of Mostar with a plan showing its proposal for the utilization of the amounts to be paid pursuant to this Decision in its amended form.

3.                  The amounts payable shall be paid monthly to the benefit of the City of Mostar budget, before the 15^th day of each month for the previous month.  These fees represent budget revenue to the City of Mostar.

4.                  From the 1^st May 2004, the Decision and its amendments in their entirety shall be deemed to be without legal force and effect thereafter.

Article 3

These amendments shall have immediate effect and shall be published in the City Official Gazette of the City of Mostar without delay.