EU signs funding package for Bosnia and Herzegovina
The European Commission has signed and sent the Financing Agreement for the Energy Support Package to Bosnia and Herzegovina, worth EUR 70 million, that will provide assistance to Bosnia and Herzegovina's most vulnerable households to cope with rising prices and support the transition to energy.
The Council of Ministers of Bosnia and Herzegovina will have to approve and countersign the Agreement in order to receive the first tranche of funding, around EUR 63 million. The Action Plan lists the measures that the BiH authorities will take to use the funds from the Energy Support Package to enable the country s energy transition.
Russia's war of aggression in Ukraine has resulted in significant increases in the prices of households, including energy bills. The Energy Support Package is designed to assist the country meet the current challenges, and the European Union is a loyal friend and partner of Bosnia and Herzegovina. The most vulnerable families will receive more than two thirds of the funds allocated to BiH. Ambassador Johann Sattler said that the EU Delegation EU Special Representative in Bosnia and Herzegovina will bring further savings as an investment into the future and will help improve energy efficiency in households and businesses.
The Energy Support Package for the Western Balkans was announced by European Commission President Ursula von der Leyen during her visit to the region in October 2022. It allocates a total of EUR 1 billion for the region of EUR 500 million in immediate assistance and EUR 500 million in medium to long-term support.
Of the 70 million euro allocated to Bosnia and Herzegovina, EUR 50 million has been allocated to mitigate the impact of high prices. Most vulnerable families should receive a cash payment through FBiH, RS and Brcko District institutions that are responsible for social welfare. A further 10 million euro will be allocated to improve the energy efficiency of 4000 residential buildings, while another 10 million euro will be allocated for around 400 Micro, Small and Medium Enterprises that are facing challenges as a result of the energy crisis.
Grants through the EU's Economic and Investment Plan EIP for the Western Balkans will be available for medium to long-term support. These grants will support energy transition projects, such as the construction of renewable energy projects, and the upgrading of energy transmission systems, district heating and schemes for energy efficiency for old apartment buildings. It will also support energy security by improving gas and electricity infrastructure, including interconnectors. The Energy Support Package can be a good starting point for BiH's energy transition and BiH authorities should use the coming period to design projects to fully benefit from the available funds.