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Background At Dayton the parties could not agree on the disposition of Brcko, which was placed under international supervision. The Arbitral Tribunal issued its Final Award on 5 March 1999 (http://www.ohr.int/docu/d990305c.htm). It is fair to say that Brcko will remain a problem area for the international community if the arbitration decision is not implemented carefully and completely. Madrid Commitments "It welcomes the Supervisor's efforts to extend returns into the center of the city and, in particular, his pressing for the rapid return of non-Serb municipal officials, judges, and employees to their homes of origin, as called for in the Council's June 9 Declaration in Luxembourg. The Council expects Republika Srpska and Brcko authorities to cooperate fully in this effort."
"The Council expects the authorities in BiH, including in the Entities, to respect and implement any further decision made by the Arbitrator in 1999." Present Situation -- Progress to Date Over 5,000 minority residents have returned. There have been more minority returns to Brcko than to any other place in BiH, and fully half of all minority returns to the Republika Srpska are to Brcko. The stage is now set for additional returns - this time directly into the center of town, as ordered by the Brcko Supervisor in November, 1998. The international community undoubtedly will have to play a key role in implementing the decision. For OHR email addresses and other contact information, please click the Contacts heading. OHR: Bill Farrand, Deputy High Representative and Brcko Supervisor Funding needs |
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The OHR will request that donors establish a Brcko Trust Fund to support additional initiatives needed to implement the arbitration decision. The Brcko Trust Fund, and the program planning and technical expertise required to implement it, would be managed in partnership between OHR and donors. The Fund would be used to help meet the costs of managing tax and legal system reform, improving the business environment, building transparent and honest self-government, promoting economic development aimed at a self-sustaining economy in Brcko, and nurturing community development, reconciliation, and democratic practices and leadership. Additional information, Remarks: -
Background The Interim Mostar Airport Authority (IMAA), was created under the Arbitration Decision taken on 16 March 1998 by the High Representative. The objective was to open the Mostar airport for the civilian air traffic, following a one year period during which the Croat and the Bosniac officials of Mostar could not agree on the modes for the opening. The Decision had been signed to last for 6 months but was extended for another 6, awaiting the time when the conditions are created to transfer the running of the airport to the City of Mostar. Madrid Commitments, Objectives "The Council calls on donors to provide the necessary means to help with the establishment of new bodies, such as the Bosnia and Herzegovina Statistics Agency, the Telecommunication Agency or Mostar Airport Authority, and to complement these bodies' own budgets or funding" Present situation - progress to date The situation at the airport has lead to the extension of the Arbitration Decision for another six months. The normal deadline to transfer the authority to the City Administration is now 16 September. The Zracna Luka company, designated to operate the airport, is thus still doing so under the supervision of the IMAA. Two international airlines have been attracted so far to regularly run flights to Zagreb and Vienna with a total of six flights a week. The number of passengers is, however, still not considerable. A campaign to promote Mostar Airport as a suitable diversion port for Sarajevo airfield has been launched and got positive response from several carriers. Their decision is however linked to the implementation of already started re-equipping projects that will enhance the security of the flights. The closure of the BiH airspace from 24 March until 12 April and the still prevailing situation in the Balkans area severely jeopardizes the air traffic expectations for the present summer season. As a result, the local Airport Company, which is an exemplary joint institution of both ethnic communities in Mostar, is still unable to be self sustainable and requires urgently financial support to avoid closure. This financial support would phase out as the income from the air traffic increases. For OHR email addresses and other contact information, please click the Contacts heading. OHR: Ambassador Richard Ellerkmann, OHR Mostar; Adrian Rausche, OHR Mostar Funding needs |
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Additional information, Remarks In order to ensure that the Airport is handed over as an incentive to joint City cooperation, certain airport infrastructure operating costs need to be maintained for an interim period until the hand-over is completed. These include costs for improving the actual operational capability and security of the Mostar regional airport. Such support will also secure the investment environment for further development of the Mostar Airport and related economic sectors. A successful jointly administrated hand-over will allow the political issues to be resolved in favor of its economic advantages. The significance of the Mostar airport is twofold: Economically the airport is a turntable for trade, business and tourism for the entire Herzegovina including the RS. As such, the airport has inter-ethnicity and inter-entity significance. Politically, the airport is one of the tools to bring both sides together in joint institutions and increase their willingness to co-operate. It is so far the only multi-ethnically and jointly functioning institution in Mostar and the Herzegovina-Neretva Canton. Rehabilitation and reconstruction-improvement cost are estimated to be: 9'587'218 EUR.
Background: Canton 7 is the only Canton in the Federation of BiH which has not yet established a functioning Cantonal judiciary in accordance with the provisions of the Federation and Cantonal Constitutions. Madrid Commitments, Objectives The objective of this proposal is to ensure the implementation of a functioning, unitary judiciary in Canton 7 as soon as possible in 1999. The funding will assist in construction or remodeling of needed facilities for the courts and provide funds for furniture and equipment. It does not include the possible costs for the envisaged premises of courts which do not have them presently (e.g Mostar Municipal courts and the Central Zone Court). The proposal also includes funds for two international consultants during 1999 to provide advice, assistance and direction for the implementation of the Canton 7 judiciary system. This project was recognized as a priority in the Madrid Document: " II. Rule of Law and Human Rights: (...)
- the immediate elimination of the dual court system in the Herzegovina-Neretva Canton, through full implementation of the Laws establishing an integrated judiciary for this Canton, including the City of Mostar." Present situation - progress to date In August 1998 the High Representative imposed several crucial laws and requested that the court system be implemented by 15 November. In December the Cantonal Assembly passed the necessary laws to establish the framework for a unified judiciary. While the Cantonal Court has a remodeled facility, some of the municipal courts are newly created and some of the existing municipal courts do not have functional offices. There is also a need for furniture and equipment. The Cantonal authorities engaged construction and finance experts to arrive at cost estimates for the needed facilities, furniture and equipment. OHR has not had an opportunity to independently verify these figures. Personnel and overhead costs of the courts are the responsibility of the Canton. For OHR email addresses and other contact information, please click the Contacts heading. OHR: Ambassador Richard Ellerkmann, OHR Mostar;
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To ensure that the implementation is carried out in an efficient manner, it is proposed to have several international advisors or consultants for a one year period to facilitate the project. This would require individuals with experience in court administration and judicial systems. Additional information, Remarks: Funding requirements for the Canton 7 court system are still being developed. This proposal is included to alert Donors that funding for this proposal will be required and the detailed information will be available as soon as the funding criteria is finalized.
Background: Poorly functioning and sometimes missing property and land registers are a serious obstacle to the judiciary in the Mostar area and have created a huge backlog of land cases. UNMIBH Judicial System Assessment Program (JSAP) in Mostar reported the following inadequacies in the property and land registry: (1) the absence of a land register in Prozor (Canton 7); (2) poor conditions of the Land Books which originate from 1890 in the West Mostar Land Registry (Canton 7); and (3) lack of a registry back up system. As the country makes the transition to a market economy and as privatization becomes a reality, the property and land registry will face a substantial increase in its work but so far no additional resources have been provided to cater for that. Madrid Commitments, Objectives UNMIBH JSAP recommends that a pilot program be developed to establish a functioning property and land registry in the Mostar area. On the basis of this plan, a proposal for the modernization of the land registration system would be created using available computer and information technology. This pilot program can then be used as a basis to develop and improve property and land registers in other parts of BiH. Present situation - progress to date It is intended that the experts conducting this land registry study will cooperate with and utilize relevant information that is already available within the UNMIBH JSAP and the CRPC. For OHR email addresses and other contact information, please click the Contacts heading. UNMIBH Lucie Bendova, Judicial System Officer - UN JSAP OHR: Chip Erdmann, Judicial Reform Co-ordinator Funding needs |
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Background Mostar was one of the main industrial zones in the former Yugoslavia. However, the war halted most industrial activities, having a devastating impact on people, employment and production throughout the country. Many industrial facilities were substantially damaged, their equipment destroyed or removed. However, peace and reconstruction process over the last few years dramatically changed the landscape of Bosnia and Herzegovina and brought many benefits to its people. Most of economic activity is currently concentrated in trade, construction and catering. High unemployment is in danger of increasing which means that job seekers (especially skilled and technical ones) must emigrate from the region; therefore job opportunities must be provided, else emigration will increase and the future stability of this area will remain in doubt. Madrid Commitments, Objectives Promotion of medium and small size enterprises. Support and development of entrepreneurial sector. Present situation - progress to date Progressively moving toward a market economy. IC strategy calls for the transition from reconstruction economics into sustainable market economic development based on international and domestic private investment. Sustainable economic growth is essential to political stability. Projects must seek to use initial donor financing to attract private capital investment through development of entrepreneurial sector. The economy of this region stands at the crossing-road. Following the falling apart of big state/socially owned companies, small and medium size private enterprises are exactly those which were given a decisive role in revitalization of economy and creation of new production capacities. Supporting small and medium size enterprises will create new working places and provide sustainable sources of income. Furthermore, returnees would be offered a real economic chance while migrations of people - a qualified labor force necessary for the reconstruction of the country would be prevented. Additionally, there is a need to offer immediate opportunities to young entrepreneurs so that they remain in-country. By the end of 1998, two associations of private manufacturers organized themselves in Mostar. They have been working on representing the private business communities interests independently of political forces. Among their many reform objectives is the opportunity to gain access to short-term loans and support for equipment modernization. For OHR email addresses and other contact information, please click the Contacts heading. OHR: Ambassador Richard Ellerkmann, OHR Mostar;
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Following ILO's Enterprise Development Agency research, modernization of viable SME's equipment is necessary. Additionally, short-term financing of production loans for a two year period is required. Through this credit assistance, SMEs should achieve critical mass in sustainable regeneration of the Canton 7 economy. Additional information, Remarks:
Background Since 1994, it has been a major aim of the IC to have Mostar as a unified City again. The main precondition for this is to have a joint City Administration and a joint Cantonal Government. This cannot be achieved as long as there are no buildings provided in which to accommodate these institutions. The requirement for buildings for joint use stems from the Federation Forum conclusions, dated 16 April 1998. These set of buildings are different from the usual reconstruction project - they are to be common institutions for the Federation. Hence they carry a political significance and necessity and are crucial for a durable reform of the political system in the H-N Canton and for the Federation of BiH. Madrid Commitments, Objectives Annex to the Madrid Declaration in Chapter III, Institutions, paragraph 8, tic 6, as one of the preconditions for endorsing the proposal to make Mostar the Capital of the Federation. Present situation - progress to date OHR(S) has achieved some progress, politically, in abolishing parallel structures and in forming joint institutions. Since 16 December, OHR(S), the City administration and the Cantonal Government are jointly working on identifying buildings for the institutions in question. Funding needs |
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For the following buildings agreement is likely to be reached within the next 2 months:
Additional information, Remarks: Although there is not yet sufficient information available as to what extent, if any, Federal , Cantonal and City authorities can contribute financially to the reconstruction of the buildings, it is realistic to assume that funding at large has to be provided by donors. There is neither sufficient information available on what funds might be required. Estimates established in 1996 and 1997 range from 8 million DM to 12 million DM. The criteria on which these estimates have been established are not fully known but for the purpose of this funding request 10 million DM should be accepted as a rough estimate. Therefore, an independent experts assessment would be required as a first step, accompanied by a feasibility study for which donors' assistance is also requested.
Background Since 1994, it has been a major aim of the IC to have Mostar as a unified City again. The main precondition for this is to have a joint City administration. Though the Mayor and Deputy Mayor have been working with department heads since 1996, the actual City Administration does not function properly due in part to institutional, structural and financial limitations. Madrid Commitments, Objectives It is the objective to have a unified City administration with a single budget operating effectively in managing the affairs of the City of Mostar. This objective is also stipulated in the Annex to the Madrid Declaration in Chapter III, Institutions, paragraph 8, tic 1 as one of the preconditions for endorsing the proposal to make Mostar the Capital of the Federation. Present situation - progress to date OHR has achieved progress in improving the cooperation between the Mayor and Deputy Mayor as well as the heads of departments. Since December, OHR(S) and the City administration have been jointly working on institutional, administrative and economic improvements. A remarkable constructive attitude between the sides has given some encouragement that some progress on substantive city administration issues is viable. However, critical flaws in the City finances are threatening to undo this constructive approach to work that the City has achieved. Running costs like salaries are not being paid out which implies not only a partial shutdown of the present limited City operations, but also the difficulties of the City administration to cope with the challenges it has been identifying as critical for the proper urban and economic development of Mostar. Exacerbating the problem has been the need to find a permanent location for the City administration in the Central Zone. OHR(S) and the City administration are working on resolving these issues, but the critical expertise necessary for organizing the City administration's structure and finances effectively is needed. Only in this way can a joint City administration's future be secured. For OHR email addresses and other contact information, please click the Contacts heading. OHR : Ambassador Richard Ellerkmann
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There is an immediate need to bring the finances of the City administration in order with an effective system of operating the budget and collecting taxes. Therefore, technical assistance in this field is required. Additional information, Remarks: - The Mayor of Mostar has recently approached the World Bank and others in seeking financing for the City administration operational costs in the amount of 1,800,000 EUR. There is an urgent need to address this budgetary hole, for instance on the basis on a loan.
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