EU4BiH – financial assistance
EU PROJECTS IN BIH
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The European Union is Bosnia and Herzegovina's largest trading partner and provider of financial assistance. It is a true partner of BiH, investing in the future of this country so that it comes closer to the EU in all aspects. Since 1996, the EU Delegation in BiH has implemented projects worth more than €3.7 billion in grants for the reconstruction, rule of law, sustainable economy, education & employment, transport, agriculture & rural development and other key areas in BiH. In the decade, the EU Delegation to BiH has implemented around 1,000 projects, with a total worth of close to €1 billion in grants. Funds managed through the EU Delegation in BiH are not the only source of EU funding that Bosnia and Herzegovina benefits from. Bosnia and Herzegovina benefits from different budget sources disbursed through available local and regional funds. The Western Balkans Investment Framework for example has funded 74 projects in the fields of environment, transport, energy, social, and environment worth €732.6 million in grants |
Assistance to Bosnia and Herzegovina implemented through the EU Delegation
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Since 1996, Bosnia and Herzegovina benefited from different EU programmes of support (ECHO, OBNOVA, PHARE, CARDS, etc.). Since 2007, IPA is the main EU financial instrument supporting BiH make political and economic reforms and meet the EU’s standards in all areas. These reforms will provide better opportunities for BiH citizens and allow for the development of standards comparable to those enjoyed by EU citizens. The IPA funds are provided in form of grants and are intended primarily for the institutions to assume their obligations, but they are also available to other beneficiaries (non-governmental organisations, business community, local self-government units, agricultural holdings and other natural persons or legal entities). |
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IPA I (2007 – 2013) Under IPA I the EU provided €610 million for transition assistance and institution building in various areas, SME competitiveness, law enforcement, justice, fight against money laundering, enhancing capacity of parliaments etc. |
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IPA II (2014 -2020) Under IPA II, the EU provided for Bosnia and Hercegovina €530 million to help implement much needed reforms in the area of democracy and governance, rule of law or growth and competitiveness & innovation, environment, education, employment & social policies, migrations etc. |
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IPA III (2021-2027) Through IPA III, the EU provides around €14.2 billion in grants to support candidate countries and potential candidates in key political, institutional, social and economic reforms. The funds allocated to BiH in 2021 amount to €73 million for projects in the field of Energy, Transport, Migration, support to institutions in BiH in respect to the needs stemming from the European integration process, etc. More info HERE. As for IPA 2022, annual action plan is adopted in December 2022 for the total amount for of €45.5 million. Projects are yet to be contracted. |
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Energy support package (IPA 2023) To help alleviate the energy crisis following Russia’s full-scale war of aggression against Ukraine in 2022, the EU has allocated €70 million in grants to support vulnerable families with their energy bills, as well as the households and vulnerable businesses in BiH to improve the energy efficiency and support the transition to a cleaner and greener future. The first tranche of funds is expected to be disbursed in March 2023. |
List of projects funded under IPA I, II and III is available HERE.
Special measures immediate assistance
In case urgency, within the IPA programme the EU adopts ad hoc special measures to provide assistance. To name only few:
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COVID -19 During the COVID-19 pandemic, the EU provided over €95 million in grants to BiH for crisis mitigation and recovery from the pandemic in the health and economic sector (€7.6 million for protective and medical equipment, €13.7 million for the procurement of vaccines, equipment and materials for immunization, cold chain equipment and vehicles for the transport of vaccines and €75 million for socio-economic recovery). |
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Floods 2014 Following the devastating floods in Bosnia and Herzegovina in 2014, the EU provided over €84 million in grants to local communities that suffered severe damage. The funds were used to provide direct support to citizens through construction/reconstruction of housing units and livelihoods to vulnerable families to secure stable and sustainable income. A significant part of these funds were used to increase capacities of BiH in terms of prevention and protection for integrated floods risk management. |
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Migrations Since the beginning of the influx of refugees and migrants in BiH, the EU has been working closely with its international partners and BiH authorities to provide shelter, food, water and sanitation, health, and support the country in strengthening its migration management capacities. Since early 2018, the EU has provided €144 million in grants in assistance directly to BiH and through implementing partners. |
ASSISTANCE TO BOSNIA AND HERZEGOVINA PROVIDED OUT OF REGIONAL FUNDS
The EU is the largest provider of financial assistance for the Western Balkans. In addition to supporting enlargement countries individually for EU membership, the EU provides financial and technical assistance through the Multi-country IPA Programme. For the period 2014-2020 only, the EU provided close to €3 billion in grants for the Western Balkans working together towards the long-term economic recovery, green & digital transition, faster regional integration, private sector development and convergence with the EU. The EU uses several instruments to provide regional support.
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REGIONAL TERITORIAL COOPERATION
European Territorial Cooperation is an EU cohesion policy instrument aimed at resolving cross-border issues and jointly developing the potential of diverse territories in Europe. In the 2014-2020 budget period, the EU allocated 9€.8 billion in grants to territorial cooperation.
Territorial cooperation programmes in which BiH participates:
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Cross-border Cooperation Programme BiH - Montenegro (2014-2020) – Supporting joint actions in the cross-border area between Bosnia and Herzegovina and Montenegro on different topics: environment, tourism, protecting cultural and natural heritage, employment etc. Overall EU funding available for this programme was €8.4 million. | ||
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Cross-border Cooperation Programme BiH - Serbia (2014-2020) – Supporting joint actions in the cross-border area between Bosnia and Herzegovina and Serbia supporting employment, labor mobility, social and cultural inclusion across the border. Overall EU funding available for this programme was €14 million. |
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Interreg Danube Transnational Cooperation Programme The Programme develops coordinated policies and actions in the programme area reinforcing the commitments of the Europe 2020 strategy towards the three dimensions of smart, sustainable and inclusive growth. The total EU budget in 2021-2020 was over €270 million. |
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REGIONAL INVESTMENT SUPPORT
One of the most important financing instruments of regional assistance for BiH is Western Balkans Investment Framework (WBIF). Due to its collaborative nature in line with the ‘Team Europe’ approach, the WBIF is the main vehicle for implementing the EU’s ambitious Economic and Investment Plan for the Western Balkans.
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Western Balkans Investment Framework (WBIF) WBIF is a joint initiative of the EU, financial institutions, bilateral donors and beneficiaries, aimed at improving harmonisation and cooperation in investments for the socio-economic development of the region and contributing to the European perspective of the Western Balkans. Through WBIF, the EU has allocated €2.6 billion in grants to the Western Balkans countries. For BiH alone, the EU has so far funded 74 projects in the fields of environment, transport, energy, social, environment worth €732.6 million in grants. List of projects is available HERE. Currently, the biggest flagship project in BiH funded by the EU through WBIF is Corridor Vc. For the construction of the Corridor Vc alone, the EU has so far provided €566 million in grants. Grants are followed by the most favourable loans worth over €2 billion by International Financing Institutions, European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD). More information about the Corridor Vc is available HERE The EU has provided over €110 million in grants for other flagship infrastructure projects through WBIF. Some of these projects are: Rehabilitation of Brčko Port, demining of the Sava River, construction of Gradiška Bridge over the Sava River, modernisation of the railway section Šamac – Doboj – Rječica, reconstruction of existing asbestos pipes and water supply system in Gradačac, water Network Reconstruction in Visoko, water supply and sewage network rehabilitation in Banja Luka, water supply services upgrading in six municipalities in Sarajevo Canton. Several WBIF instruments are available for the Western Balkans aiming to achieve sustainable energy objectives and foster economic development and prosperity of the region. |
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The Economic and Investment Plan (EIP 2021-2027) The EIP identifies 10 investment flagships and allocates a substantial financial package of up to €9 billion in EU grants for the Western Balkans, with the potential to mobilise up to €20 billion of investments. The EIP supports investments on sustainable transport, clean energy, environment and climate, digital future, competitiveness of the business sector, human capital development. The WBIF is the main vehicle for the implementation of such and ambitious recovery plan for the region. More info about the EIP is available HERE. |
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REGIONAL COOPERATION AND NETWORKING
The EU funds and promotes regional cooperation, networking and sharing of best practices to help enlargement countries better prepare for EU membership, align their national legislation with EU law (acquis) and gradually adapt to EU standards and practices through a variety of regional cooperation initiatives, including:
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REGIONAL HORIZONTAL SUPPORT
TAIEX and Twinning assistance are the EU instruments for sharing EU knowledge at the regional level. Since 1996, the EU supports public administrations with regard to the approximation, application and enforcement of EU legislation as well as facilitating the sharing of EU best practices through its instrument TAIEX (Technical Assistance and Information Exchange) and in the form of twinning projects. So far, TAIEX has supported more than 90 partner countries by mobilising over 40,000 experts in more than 26,000 events. More info about TAIEX and Twining assistance is available HERE.
EU PROGRAMMES
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EU Programmes are intended for the EU member states, but some of them are also open to countries that are on the path to the EU. As such, they are considered one of the most important instruments of the pre-accession strategy, i.e. familiarising EU candidate countries and potential candidates with the EU’s working methods, and their integration into the sectoral policies of the EU in anticipation of accession. From 2014-2020, BiH participated in eight EU programmes, giving the country’s access to multibillion euro funds: Horizon 2020, Creative Europe, Erasmus+, Europe for Citizens, FISCALIS, COSME, Health for Growth, Customs. More information about EU Programme and how to apply is available HERE |
Other ongoing flagship programmes and initiatives funded by the EU:
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Civil Society Facility and Media Programme (CSF) In 2008, the EU established this programme to support civil society and media in the region. Under IPA II (2014-2020) the EU programmed more than €330 million in grants through CSF. The support was provided both through bilateral and regional channels and will continue so under IPA III. In terms of bilateral assistance, CSOs and the media in BiH received €9.1 million in 2014 - 2020. |
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Thematic Programme for Human Rights and Democracy The Thematic Programme for Human Rights and Democracy (formerly known as European Instrument for Democracy and Human Rights - EIDHR) is complementary to the other EU external assistance instruments. It supports CSOs in non-EU countries to become an effective force for political reform and defence of human rights. More information about the projects in BiH funded under CFS and EIDHR from IPA II is available HERE. |
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Regional Housing Programme (RHP) The RHP is a joint initiative by Bosnia and Herzegovina, Croatia, Montenegro and Serbia and contributes to the resolution of the protracted displacement situation of the most vulnerable refugees and displaced persons following the 1991-1995 conflicts on the territory of former Yugoslavia. The EU is the biggest donor, out of a total of €294 million committed, the EU contributed €238 million in grants, i.e. 81% of funds. For BiH alone, the EU has so far approved €65 million. More info about RHP is available HERE. |
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Horizontal Facility for the Western Balkans and Turkey (HF) BiH benefits also from the European Union and Council of Europe cooperation instrument “Horizontal Facility for the Western Balkans and Türkiye” (HF) launched in May 2016. The areas targeted under the HF are at the core of the "Fundamentals First" approach to enlargement policy, namely rule of law, protection of fundamental rights, freedom of media and freedom of expression. More information about the projects implemented under HF I and HF II worth €61 million is available HERE. HF III worth close to €41 million has started in January 2023 and will last until December 2026. More info on how to apply for funds is available HERE. BiH also benefits from the EU/CoE regional programmes iPROCEEDS 2: Co-operation on Cybercrime: targeting crime proceeds on the Internet and securing electronic evidence with a total budget of nearly €5 million and ROMACTED phase II: Promoting good governance and Roma empowerment at local level with a total budget of € 6.5 million. |
