Adoption of Memorandum of Understanding – formal base for usage of the PAR fund resources.

The implementation of Public Administration reform in Bosnia and Herzegovina is long, complicated and exceptionally expensive process. Reforming of the massive administrative apparatus demands significant funds which state alone hardly can provide. From that reason and with the goal of giving help and support to the reform process, the international partners – Donors decided to ensure certain financial resources on disposal. With a view to that, it was decided on establishing of the Public Administration Reform fund – PAR fund, in which those resources will be consigned. The international initiators of providing support over the PAR fund are: the UK Department for International Development (DFID), the Swedish International Development Co-operation Agency (Sida), the Netherlands Ministry for Development Co-operation and the Delegation of the European Commission (EC).

Each Donor agreed to contribute 1.5 million Euros to the PAR Fund that will support the Governments in Bosnia and Herzegovina, during the period from 2006 to 2009. The Fund represents a basis for projects of public administration reform, and the funds from this source will be allocated to the projects, when they are approved. (More about PAR fund u can find in our category About us, in the text PAR Fund – decentralized use of help)

Public Administration Reform Coordinator’s Office in BiH, as a central body in the public administration reform process, took over the obligation of creating conditions for establishment and functioning of the PAR fund. In that respect, and in cooperation with BiH Governments as beneficiaries and international partners, PARCO created document fully named ‘Memorandum of Understanding between the UK Department for International Development (DFID), the Swedish International Development Co-operation Agency (Sida), the Netherlands Ministry for Development Co-operation and the Delegation of the European Commission (EC) and the Council of Ministers of BiH, and Governments of Federation of BiH, Republic of Srpska and Brcko District of BiH, for the establishment of public administration reform fund – PAR fund’ This Memorandum regulates the establishment of the fund with the agreed funds, and through it the Donors and the Governments coming to the following understandings: Goals of the PARF and scope of the MoU; Responsibilities and representing; Contributions; Organizational structure, consultations and decision making; Disbursements; Procurement; Reporting; Review and evaluation; Audit; Non – compliance / Force majeure; Corruption; Modification, Donor accession and withdrawal; Dispute settlement; Entry into effect.

After its finalization, Memorandum has been send on adoption to the Governments in BiH. With the adoption of this Memorandum by the BiH Presidency, on its 17th session, held on June the 6th 2007, the adoption process has been concluded. Governments of FBiH, RS and Brcko District have also adopted the Memorandum, and with that act expressed willingnes and readiness for active participation in the public administration reform process in BiH.

In the 14th, conclusive paragraph of Memorandum, named 'Entry into effect' it is stated that 'This MOU enters into effect for a given Donor on the date of signature by that Donor and after the Council of Ministers of BiH and the Governments of the Federation of BiH, Republic of Srpska and Brcko District of BiH shall have signed it.’ In that respect, PARCO is taking activities on the high – level event organization, with the presence of Chairman of BiH CoM, Entity Prime ministers and the Brcko District Major, where this MoU will be formally signed. After that, Donors will also sign MoU. That will assign the beginning of its implementation and fulfillment of its basic intention – establishing of the public administration reform fund.

The document 'Memorandum of Understanding for establishment of PARF', together with the Governments' Conclusions on adoption, you can find and download in our category Documents / Memorandum of understanding