At the session held on November 17, 2011, the Government of the FBiH has approved the Draft Annex III Memorandum on Understanding for the Establishment of the Public Administration Reform Fund between the Department for International Development of the United Kingdom (DfID), Swedish International Development Agency (SIDA), Ministry for Development and Cooperation of Holland and the European Commission Delegation in BiH, on one side, and the Council of Ministers of BiH, the Government of the FBiH, the Government of the RS, the Government of the Brčko District of BiH and the Ministry of Finance and Treasury of BiH, on the other side.

It has been explained in this Annex Memorandum that by the adoption of the PAR Strategy in BiH and the Action plan 1, which contains a detailed overview of activities for six key horizontal reform areas, established has been the strategic framework for the public administration reform in Bosnia and Herzegovina, with the guidelines for local governments as well as the International Community and donors for the identification of projects for realization of activities from the Action plan. With that purpose, in July of 2007, signed has been the Memorandum on Understanding for the Establishment of the PAR Fund as an instrument of financial support for the public administration reform implementation in BiH. By this document, donors have obliged themselves to ensure the required financial support for implementation of reform measures of the Strategy for the period from 2006 to 2009.

By the Annex I Memorandum, the timeframe period of allocation of funds of the Fund has been extended by the end of 2010, by the Annex II by the end of 2011 and by the Annex III the extension of timeframe period of allocation of funds of the Fund has been proposed by the end of 2014, in order to enable undisturbed and safe financial support of approved projects, whose implementation should begin. The Government has authorized the Prime Minister of the FBiH to sign this Memorandum in behalf of the Federation of BiH.