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Until now, the implementation of EU Funded programmes in Bosnia and Herzegovina has been essentially carried out by the Delegation of the European Commission on behalf of the BiH administration. As BiH moves closer to EU integration with the signing of the Stabilisation and Association Agreement, this situation will change.

Implementation of the Decentralised Implementation System (DIS) will involve the transfer of part of the responsibility for managing the Pre-Accession Assistance from the Commission to the BiH administration, meaning:

  • Public procurement/ tendering, contracting, budgeting and disbursement of community funds will be carried out by an institution established for the purpose; a Central Financing and Contracting Unit (CFCU).
  • Requestand management of funds from the Commission and appropriate financial reportingis carried out by an institution established for the purpose; a National Fund(NF)

The purpose of going from a Centralised to a DecentralisedImplementation System (DIS) is gradually to prepare BiH to take over from theCommission all responsibilities for managing the EU Community Assistance as EUentry approaches. By implementing part of the Commission responsibilities on themanagement of Pre-Accession funds BiH is given the opportunity to practice anddevelop the internal procedures and structures that will be necessary for fullmanagement of the funds later.

Implementation of the DIS is based on the Framework Agreement signed betweenthe Commission and BiH on 20 February 2008. This agreement sets out detailedrequirements and conditions which BiH must meet in order to be a fullbeneficiary of EU assistance. In anticipation of signing the FrameworkAgreement, the Central Financing andContracting Unit (CFCU) and National fund (NF) were established by the Decisionof the Council of Ministers BiH on 2nd March 2006.

 The Central Contracting and Financing Unit(CFCU) is structured within the Ministry of Finance and Treasury. Under theauthority of the Programme Authorising Officer (PAO) the CFCU operates in closecoordination with the various Ministries or Agencies, which will bebeneficiaries of the projects. The role of the CFCU is to carry out the publicprocurement/tendering, contracting, budgeting and disbursement of communityfunds.

The CFCU ensures thatthe EU rules, regulations and procedures pertaining to the procurement ofservices, supplies, works and grants are adhered to and that a proper reportingsystem is functioning.

The CFCU also advisesthe Senior Programme Officers (SPO) within other Ministries on EU external aidimplementation procedures (e.g. procurement and contracting procedures). It is clearhowever that full responsibility for technical implementation remains with

 
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Mon. 6th February 2012
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