Memorandum of understanding for the establishment of the Public Administration Reform Fund (PAR Fund) is a document which defines conditions and procedures of financial aid to public administration reform and presents the framework for consultations between donors, Public Administration Reform Coordinator’s Office in BiH, Ministry of Finances and Treasury of BiH, and Public Administration reform coordinators in entities and Brčko District.

Memorandum has been signed in July 2007, on behalf of the BiH authorities chairman of the Concil of Ministries of B&H, prime ministers of entities and the mayor of Brčko District, and in the name of donors ambassadors of the Netherlands, Great Britain and Sweden, as well as the Chief of the Delegation of the European Commission in BiH. The purpose and the MO of the Fund have been harmonised by the Memorandum, and the operational management of the fund has been entrusted to the Public Administration Reform Coordinator’s Office, with legal base in the application of the regulations on public procurements. By signing of the Memorandum, formal conditions were met for the usage of the contents of the Fund, which amount to 4,5 million euro, for the purpose of realisation of reform measures established by the Action Plan 1 of the Strategy for the Public Administration Reform in BiH.