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AGREEMENT
ON IMPLEMENTATION OF ENTITY OBLIGATIONS
SET FORTH BY THE FINAL ARBITRAL AWARD FOR BRCKO
24 October 2000
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The Government of the Brcko District of Bosnia and Herzegovina, represented
by Mayor Sinisa Kisic
The Government of the Federation of Bosnia and Herzegovina (FED),
represented by Prime Minister Edhem Bicakcic
The Government of the Republic of Srpska (RS), represented by
Deputy Prime Minister Ostoja Kremenovic
Under the auspices of the Deputy High Representative and Supervisor of
Brcko, Ambassador Gary Matthews
With a view to implementing the Final Award issued by the International
Arbitration Tribunal for Brcko dated March 5, 1999 establishing the Brcko
District of Bosnia and Herzegovina (hereinafter: the Brcko District) as a
single administrative unit under the exclusive sovereignty of Bosnia and
Herzegovina;
Agreeing that the Brcko District has fulfilled its obligations under the
Addendum to the Supervisory Order on the Financial System of the Brcko
District of Bosnia and Herzegovina dated June 21, 2000;
In furtherance of the Memorandum of Understanding dated September 19, 2000
Sign the following
Agreement
- District Revenues: With the exception of pension and health
care contributions, which will be addressed in separate Agreements, the
Governments of the Federation of Bosnia and Herzegovina and Republika Srpska
(hereinafter: the Entities) agree that all public revenues, including but
not limited to taxes, contributions, donations, fines, fees and rents from
District owned property collected within the Brcko District or on behalf of
the Brcko District - regardless of whether the aforementioned revenues have
been currently identified by payment bureau accounts as revenues of the
Brcko District - are the property of the Brcko District.
- Harmonization of Payment Bureau Accounts: To insure that
revenues due to the Brcko District are properly accounted for and deposited
in the appropriate accounts of the Brcko District, the District Revenue
Agency, in cooperation with the Entity payment bureaus, shall promptly
harmonize payment bureau accounts.
- Tax and Revenue Reform: The Entities recognize that
meaningful reform of the District's current tax structure and methods for
establishing and collecting other government revenues, (including fines,
fees, contributions, rents, etc.) is essential in developing the area's
economy and promoting the District's financial self-sufficiency. Further,
the Entities acknowledge that the District must have considerable latitude
in these areas based on its urgent need to generate revenues within the
District. The District understands that tax and other revenue reforms must
be generally compatible with reforms to be undertaken elsewhere in Bosnia
and Herzegovina.
- Abolishment of Payment Bureaus: Entities shall ensure that
the branch offices of the payment bureaus located within the Brcko District
are included in the overall dismantling plans for the payment bureaus and
active assistance is provided to the Brcko District in the transition
period. In particular, the Entities acknowledge that payment bureaus
employees within the District are employees of the Entities and that said
employees shall receive the same post-employment benefits (i.e.: severance,
training and job placement) as all other employees of the payment bureau
system.
- Veterinary and Plant Inspections: The Entities agree that
veterinary and plant inspections services at the Brcko border crossing shall
be performed by employees of the Brcko District Government's Department of
Agriculture and Forestry. The Brcko District Government shall abide by
minimum inspection standards set by the Entities and shall have the
authority to establish inspection fees and retain all revenues derived from
the service.
- District Owned Property: The Entities acknowledge that
under the Brcko Arbitral Award, publicly owned property is owned by the
Brcko District and that said property is a significant source of revenue.
Accordingly, the Entities agree to give full cooperation to the Brcko
District Government in helping the Brcko District to identify all properties
rightfully owned by the Brcko District and insuring that any existing rental
agreements are valid, competitive and paid to the District's unified
account.
- Public Employees of the Brcko District: The Entities
acknowledge that a significant reduction in the workforce of the public
sector in the Brcko District will occur upon adoption of the District's
final staffing plan and annual budget. Accordingly the Entities agree to
develop a plan on reassignment or post-employment benefits (i.e.: severance
packages, early retirement schemes, training and job replacement) for laid
off employees. In particular the Entities agree to fund a six-month
severance package of 350 KM per month (plus customary social service
benefits) for each laid off employee. The RS shall provide severance funding
for laid off employees that previously worked under RS jurisdiction. The FED
shall provide severance funding for laid off employees that previously
worked under FED jurisdiction.
- Reimbursement for Electric Utility Salary and Operational
Expenses: The Entities acknowledge that the Brcko District has incurred
salary and operational expenses for its administration of Electric utilities
since the District was established and agree to reimburse without delay the
District for these expenses.
- Reimbursement for Health Care Salary and Operational
Expenses: In addition to the Agreement on Health Care and Health Insurance
the Entities acknowledge that the Brcko District government has incurred
salary and operational expenses for its administration of heath care
services since the District was established. Accordingly, the Entities agree
to immediately reimburse the District Government for these expenses.
- This Agreement shall be implemented at the same time at
which the Brcko District Budget shall be adopted.
Brcko, 24 October 2000
For the Brcko District Government
Mayor Sinisa Kisic
For the Government of the Federation of Bosnia and Herzegovina
Prime Minister Edhem Bicakcic
For the Government of Republika Srpska
Deputy Prime Minister Ostoja Kremenovic
Deputy High Representative, Supervisor of Brcko
Ambassador Gary Matthews
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