Full project description Background The Dayton Peace Accord created a very complex internal political structure for Bosnia and Herzegovina (BiH). Bosnia and Herzegovina's environment is not regulated at the state level, but at separate entity levels -- the Federation of Bosnia and Herzegovina ( FB&H) and the Republic of Srpska  (RS). The responsible environmental body in FB&H is the Federal Ministry of Physical Planning and Environment, while in the RS it is the Ministry of Urbanism, Housing-Communal Work, Civil Construction and Ecology. Overarching these entities is a central government with its Council of Ministers and six state ministries (environmental protection being the responsibility of the Ministry of European Integration) and rotating presidency. Unfortunately, this complex structure is not fully functioning. What makes the situation even more complicated is the environment policy  within each entity, each of which reflects the distinct ideologies and conservative views of those in power. Taxation, customs controls and sector programs are governed at the entity level. This complex model of governance cultivates corruption and patronage, weakens efforts to collect public revenues, and limits employment-creating investments. Each of the 10 cantons comprising FB&H has its own government structure and distinct social- and economic-development policies and strategies. With such a unique government structure, policy questions in RS are more simple than in the FB&H, but policy differences between the two entities are still a major issue. Both the FB&H and RS Ministries are responsible for many other activities, and the environment is not necessary a top priority. In addition, they both lack human, technical and financial resources in the field  (only nine people from each ministry belong to the environment sector). There is no environment protection agency at either the state or entity level, and other environment-related institutions are lacking resources -- human resources, in particular. The environmental permitting system is extremely weak and economic instruments are underdeveloped. Justification Bosnia and Herzegovina is currently undergoing a period of transition towards adopting a market-based economy. In line with this economic transition, it is essential that due consideration is given to the integration of environmental policies with the country's development initiatives. Despite all constraints, both entity’s responsible governmental institutions and agencies, as well as the state responsible bodies, are strongly committed to adopting a policy of environmental management. As Bosnia and Herzegovina adopts a mature approach towards sound environmental management protection practices, then the shift will be towards the use of economic instruments to achieve environmental compliance. At one recent meeting, the State Council of Ministers (the Council of Ministers is at the 'state government' level) endorsed the creation of an environmental protection agency ( EPA) as a main priority and appointed the State Ministry for Foreign trade and Economic Relations as a responsible governmental body for drafting the general Environmental Law -- a legal basis for regulating the establishment of an independent Environment Protection Agency. Unfortunately, due to lack of funding, capacities and personnel, nothing has been done so far. Project description This project will provide assistance to Bosnia and Herzegovina to increase effectiveness in adequately solving a growing number of environmental problems. The project will support this goal by creating grounds for establishing a professional and independent National Environmental Agency. The project will be implemented in two major phases: A "working group" will be set up (with the involvement of representatives from each entity and state level, and international experts), the main assignment for which is to help in drafting the general Environmental Law, and to assess relevant entities/state ministries. This in order to propose the most efficient way for establishment of the National EPA, the division of work and responsibilities between the EPA and other governmental institutions and bodies by way of cooperating on state, entity, canton and inter-ministerial levels. A study tour in Italy will be organised in order to study the Italian-model EPA. Stakeholders The stakeholders to be included in this project will include, but not necessarily be limited to: the Environmental Steering Committee and the Water Steering Committee; entity ministers and deputy ministers assigned with environmental responsibilities; relevant state bodies (State Council of Ministers, Ministry for European Integration, State Ministry for Foreign trade and Economic Relations) selected canton administrations from the Federation of Bosnia and Herzegovina; the Republic of Srpska Coordination Committee for Environment; and international organisations such as the World Bank, OHR, NEAP Secretariat, etc. Project Activity # 1: Working group It is proposed that the Working group will be consisted of following experts: two to three representatives from each entity's responsible ministries; two to three representative from the state's responsible ministries; and two leading international experts Individual ministries and responsible state bodies shall appoint representatives, while the selection of international experts will be the responsibility of the REC and Italian Trust Fund. The primary tasks of the latter two organisations are to review existing strategies, develop new strategies, and to assist the adoption process through relevant bodies. The working group will meet regularly to draft a working schedule. One of the initial tasks of the working group would be to assess relevant entity ministries (staffing/capacities) in order to propose the best way to form the environmental agencies that will incorporate basic "institutional structures" at national, canton and municipal levels, along with other inter-entity institutions like the B&G Environmental Steering Committee. The Working Group shall define all transition-related functions of agencies and other bodies into a working framework for issuing industry permits and licencing other activities. In addition, it will assist in defining the division of work and responsibilities between future agencies and other institutions and bodies mentioned earlier. This shall include assistance in developing procedures for the application, processing and issuing of permits -- in addition to associated objections and reviews. Procedures shall also be developed for permit regulation. This will include administrative enforcement measures such as notices, fines etc., and practical instructions from inspectors and monitoring of licenced enterprises. The working group’s work will set out the proposals for an EPA structure that is based on the premise that it is first necessary to define the role of the EPA within the responsible environment ministry of Bosnia and Herzegovina, and to cite its functions and responsibilities. It is envisioned that the EPA shall be an independent organisation, free of political interference, and with adequate internal resources to perform its functions and complete its work programme. The enforcement of environmental protection laws must be free of corruption (the establishment of a professional and politically neutral agency is essential). Accession to the European Union as a strategic long- term objective for Bosnia and Herzegovina will be assessed on the basis of sound environmental management protection practices, laws and institutions. The Feasibility Study for establishing the EPA should be based on the following: legal legitimacy; independence (no political interference); adequate staffing; adequate financing; and reporting transparency. It is envisioned that the EPA will perform the following: regulation and control of activities for the purpose of environmental protection, monitoring of environmental quality, nature protection management, development of zoning plans at regional and municipal levels, advisory services to local authorities, and liaising with the European Environmental Agency.   The newly established EPA will provide, on an ongoing basis, advice to relevant environment ministries, responsible state- and entity bodies, as well as to local authorities. It is presumed that the EPA will have particular responsibility for issues pertaining to: drinking water; sewage and other effluents, landfill sites for waste disposal, hazardous-waste management, hydrometric programme, environmental monitoring programme, environmental quality databases; state-of-environment reports, environmental impact assessment, zoning, environmental quality objectives, nature protection and the European Environmental Agency. EPA personnel will be formed from existing staff within the Ministry, as well as from various institutes, laboratories and inspectorates. The division of labour within the EPA will focus on: Administrative Functions; information and reporting functions; legislative functions; technical functions; environmental policy planning; and liaison functions. The need for adjustment of structures outside the EPA depends on the amalgamation/reorganisation of other EPA-related institutions. The structures affected by these proposals are: the Environmental Inspectorate; laboratories; other relevant institutes and ministries; and sanitation authorities and municipalities, themselves. The specific tasks listed in the terms of reference are as follows: Draft a general Environmental Law as a legal foundation for the establishment of a National Environmental Protection Agency. Identify and assess the complete current Environmental Agency-related institutional structures within the government sectors, ministries, state institutions, local governments, etc. Define the division of labour and responsibilities between the EPA and other institutions/departments/bodies with regard to:    - administrative functions;    - information and reporting functions;    - legislative functions;    - technical functions;    - environmental policy planning; and    - liaison functions. Expected Results The project should deliver: a proposal for the establishing, functioning and staffing of an Environmental Protection Agency; suggestions for institutional requirements and structures to be established and/or adjusted outside the EPA; a detailed, prioritised action plan specifying the activities, actors and timing to implement the proposal and/or to adjust the functions, tasks and procedures which may not yet be in place; costs estimate of implementation and operation of the EPA and schemes for covering these costs; and. a proposed equipment list to support implementation.    Project Activity # 2: Study Tour The countries of South Eastern Europe have expressed their wish to learn from the experiences of other countries gained during economic transition and integration with international structures. This programme activity offers a possibility for institutional and policy development by visiting the Italian Environmental Protection Agency. The Italian EPA, an organisation with well-established legal, institutional and policy functions is well capable of assisting the Bosnian process of capacity building and institutional development. The REC, in cooperation with Italian Environmental Protection Agency, will organise a one-week onsite visit for a group of 15 Bosnian experts on the premises of the Italian Environmental Protection Agency. This programme will empower participants with valuable working experience and insight on a national government environmental protection institution and encourages an exchange of views and experiences between environmental experts in Bosnia and Herzegovina and Italy. The tour of the Italian Protection Agency will reveal the structure of the EPA, its functions, its relations with the relevant laboratories, inspectorates, institutes, ministries, etc. Several good examples of EPA project implementation and organisational work will also be highlighted. In particular, the Italian hosts will demonstrate onsite  practices and procedures such as: administration, information and reporting, technical, liaising, etc.   A team of experts of REC (Head Office and Country Office Bosnia and Herzegovina) and the Italian Environmental Protection Agency (those responsible for implementation and monitoring of all project phases) will carry out these activities. Expected Results and Deliverables The project should deliver: an organised Study Tour of the Italian EPA; practical experience with BiH environmental professionals and experts; established cooperation between Italian and BiH environmental professionals and experts; and improved cooperation between the Italian and BiH ministries of environment.

Home Assistance to NGOs Technical Support to CEE Countries Development of Joint Environmental Investment Projects Institutional Strengthening  • Steering Committee Support  • Protection Agency Establishment Capacity for Climate Protection