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Background Experience has shown that the implementation of Annex 9 raises political difficulties, as it directly relates to the organization of public utilities or similar services to be provided by public authorities. Progress has therefore been very slow as the views widely differ between the Entities and the implementation of the Annex requires a common agreement. Madrid Commitments and objectives "The Council requests the Entities and the Commission on Public Corporations to activate the Transportation Corporation established by Annex 9 of the GFAP before April 30 1999, and to take whatever measures are necessary so that the Railway Public Corporation functions properly.
The Council requests further implementation of Annex 9. It requests the Commission on Public Corporations to consider actively and propose to the governments of the Entities the creation of additional Public Corporations, as necessary, and urges those governments to implement the Commission's recommendations. Joint Public Corporations are particularly needed in the fields where close cooperation or common management of infrastructure are necessary to achieve co-ordination, harmonization or economic efficiency. This is the case for all sectors which have a country-wide component, such as transport infrastructure (including roads), telecommunications, energy, broadcast transmission or post.
In the event of failure to proceed as stated above, the High Representative should continue to ask international bodies, such as the UIC, ITU, UPU, UCPTE, and others not to recognize the credentials of the representatives of Bosnia and Herzegovina in those organizations" Present situation - progress to date The recently formed Commission on Public Corporations needs to activate the Transportation Corporation, particularly in the fields of ports and roads. Similarly, the Railway Corporation has to begin effective operation. In addition, new Public Corporations should be created in the fields of power transmission and media. For OHR email addresses and other contact information, please click the Contacts heading. OHR: Paul Monnory, Chairman of the Commission on Public Corporations Funding needs |
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Budgetary support to the Railway Corporation and technical assistance/expertise plus initial budgetary support for the proposed action are needed. Additional information, Remarks: -
Background This is a domain where progress was made in 1998, with the creation by the Entities of a joint Public Corporation under Annex 9 of the Dayton Agreement and the preparation of a Law at the Federation level for the creation of Federation Railways to replace the State Railway Company (ZBH ), which is no longer in conformity with the internal structure of the Country. Madrid Commitments, Objectives The Madrid conclusions stressed the importance of public utilities and rail transport is clearly included. Present situation - progress to date Despite the progresses made in 1998, there is practically no inter-Entity nor international rail traffic. Among the problems to be solved urgently to remedy that situation ,the two crucial matters are:
There can be no solution of the two above mentioned problems without making an inventory of the rolling stock (both Bosnian and foreign) now located on the territory of the two Entities. In order to avoid disputes, this inventory must be made by international experts. The OHR has contacted the International Union of Railways (U.I.C.),which is ready to recruit the experts needed and to coordinate the work (they have a specialized department). This inventory must be made quasi simultaneously on the whole territory of the Country and could be carried out within approximately one week. For OHR email addresses and other contact information, please click the Contacts heading. OHR: Paul Monnory, Chairman of the Commission on Public Corporations Funding needs |
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* See also "Public Corporations - Implementation of Annex 9 of the GFAP" Additional information, Remarks: -
Background The Commission on Public Corporations at a meeting held in July 1998 established a Working Group to examine problems relating to the coordination of electric power transmission. This the most important matter for the safe transmission of power to domestic and foreign customers, and a satisfactory relationship with UCPTE. Madrid Commitments, Objectives "Public Utilities and Implementation of Annex 9:
20. (...) The Council welcomes the decision on the establishment of a Joint Power Co-ordination Center and requests the parties to work further on joint facilities in that sector
21.(...). The establishment of a regulatory body and a regulatory framework in conformity with the Peace Agreement are required for any substantial development of public utilities, and for their subsequent privatization. (...) The Entities must pass legislation, including electricity laws and concession laws, in order to regulate the activities of private operators performing public services." Need to promote the introduction of competition by private providers of services, to develop the appropriate regulatory environment, and to undertake preparations for rapid privatization. This will require support also for entity regulatory bodies and agencies. Present situation - progress to date Much progress was made on the establishment of a Joint Power Coordination Centre "ZEKC" (JPCC) in accordance with the agreement signed by the three currently existing Elektroprivedas on November 3,1998. Energoinvest building in Sarajevo was chosen as the location of the Centre ,which was registered as a business association, established by the Elektroprivredas (EP) . The Statutes, The Book of Rules and manpower requirements have been prepared and approved by the JPCC Board of Directors. The fulfillment of the Stage I of the Agreement , by March 31, 1999, resulted in the release of funding, by the World Bank, for the Second Electric Power Reconstruction Project. It is recognised that some functions would not be fully operational at the beginning of JPCC existence. This is mainly due to the lack of SCADA system implementation and a gradual rehabilitation of 400 kV transmission system. Satellite Communication System linking ZEKC with three Elektroprivreda Dispatch Centers (Sarajevo, Mostar and Trebinje) will be installed. The establishment of a Joint Power Transmission Corporation is being considered. For OHR email addresses and other contact information, please click the Contacts heading. OHR: Paul Monnory, Chairman of the Commission on Public Corporations Nick Vrkljan, Chairman of the Workgroup on the Establishment of a Joint Power Transmission Center Funding needs |
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Additional information, Remarks: -
Background The State Law on Telecommunications which entered into force on 11 September 1998 establishes the Telecommunications Regulatory Agency. Madrid Commitments, Objectives "The Council calls on donors to provide the necessary means to help with establishment of new bodies, such as the Bosnia and Herzegovina Agency, the Telecommunication Agency or Mostar Airport Authority, and to complement these bodies' own budgets or funding." The establishment of the Agency will be a major step forward in the reform of the Telecommunications sector. It will allow for the normalization of International and Inter-entity telephone traffic through the issuing of licenses, the coordination of frequencies and harmonization of technical standards. Furthermore, there is a need to promote the introduction of competition by private providers of services, to develop the appropriate regulatory environment, and to undertake preparations for privatization. This will require support also for entity regulatory bodies and agencies. Present situation - progress to date The Council of Ministers at its session on 4 May adopted the Regulations which are appended to the Telecommunications Law. At the meeting of the Working group in Geneva on 10-11 December 1998 agreement was reached on the structure of the Agency and the general staffing requirements. As not all the appointments to the Management Board have been made the Agency is not yet fully operational. It is expected though, that all the appointments will be made in the near future and it is essential that the Agency will then immediately be able to enter contracts for suitable office space and equipment. In order to ensure the required development of the Agency the Senior Management support should be available from the outset. For OHR email addresses and other contact information, please click the Contacts heading. OHR: Erik MacKinlay, Chairman of the Telecommunications Task Force Funding needs |
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Additional information, Remarks: -
Background In the course of 1999 a great deal of work will be required in order to prepare and execute plans for the restructuring of the postal sector. Assessment studies, Master Plan development, determination of priorities and budgets and extensive training will be required. Madrid Commitments, Objectives The Madrid conference recognized the need for urgent action in the postal sector. Donors are invited to provide technical assistance and equipment in the postal sector. Present situation - progress to date A first draft of the State Post Law was discussed in Bern at the Universal Postal Union in April 1999. A follow-up meeting will be held in June. A draft for a Master Plan has already been prepared by Nepostel (Consultancy part of Netherlands Post, now TNT group). In June 1998 a 2 day seminar was held to introduce the Bosnian postal operators to the latest developments in Europe and make a first assessment of the main bottlenecks in the present system. In June 1999 a 2-day workshop on the subject of Postal Banking will be held in Sarajevo. For OHR email addresses and other contact information, please click the Contacts heading. OHR: Erik MacKinlay, Chairman of the Steering Committee for Posts Funding needs |
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Additional information, Remarks: - The postal sector in Bosnia and Herzegovina is in urgent need of financial support so as to be able to initiate essential changes in the sector. After years of isolation and neglect the sector needs fundamental restructuring. To this end progress is already being made in the field of legislation and in terms of small scale support to allow the most basic of functions to be carried out i.e. (inter-entity) mail exchanges. The aim is to create a postal system in Bosnia and Herzegovina which is compatible with the level and quality of mail services in the rest of Europe. The introduction of new and more profitable services will make the postal sector self financing and possibly even profitable. However, in order to achieve such a level of efficiency a number of fundamental improvements will have to be made, the money for which is not available within the sector and on the basis of present performance will not be available through bank loans either. As has been shown in several other countries the postal sector need not be permanently loss making but given a willingness to introduce new services and by making more effective use of the infrastructure there are very real possiblities to turn posts into a profitable business. Besides the need for change in the post sector in order to make it more efficient (and potentially for it to make a positive contribution to the economy) there are also a number of other factors which should be taken into account when considering financial support for the postal sector e.g.
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