The Chair of Bosnia's Council of Ministers, Borjana Kristo, handed over the countersigned Financing Agreement for the EU Energy Support package to the Head of the EU Delegation and EU Special Representative in Bosnia and Herzegovina, Ambassador Johann Sattler. The European Commission will therefore soon disburse the first instalment (90%) of the €70 million package, which will provide assistance to Bosnia and Herzegovina’s most vulnerable households to cope with rising prices as well as support energy transition.

The Council of Ministers Chair Borjana Kristo said, “I would like to thank the European Union and its institutions for once again showing their commitment to our country and providing us with concrete support, which is not only aimed at the structural reforms that are ahead of us, but also, as we are witnessing today, at supporting the most vulnerable population, and at supporting small and medium-sized companies that are the pillar of our economic development”.

Ambassador Sattler underlined that the European Union has consistently shown itself to be a reliable friend and partner to Bosnia and Herzegovina.

“Last winter was extremely tough for the poorest families in Bosnia and Herzegovina as a result of the rising prices resulting from Russia’s war of aggression in Ukraine. This is the first time that BiH authorities have received support to be distributed to the public in this way. As BiH advances on the EU path, the BiH authorities will need to demonstrate that they have the capacity to implement the significant resources that BiH will be entitled to as an EU member. How BiH manages the funds from the Energy Support Package will be an important indicator for any support delivered directly to BiH institutions in the future”.

The Financing Agreement will be sent to the European Commission with a report outlining how the Action Plan for the Energy Support Package, approved by the BiH Council of Ministers on 22 December 2022, will be implemented. The report describes the methodologies and criteria by which the funds will be disbursed by the relevant BiH authorities, as well as the expected number of beneficiaries and timeframe for implementation. Of the €70 million allocated in immediate assistance to Bosnia and Herzegovina, 50 million has been allocated to support vulnerable households, and 20 million to support energy efficiency efforts.

The authorities in the Federation of Bosnia and Herzegovina, Republika Srpska and Brcko District, will work on the disbursement of funds through relevant entity ministries and entity environment protection funds and administrative units in Brcko District.

 The Energy Support Package for the Western Balkans was announced at the end of October last year by European Commission President Ursula von der Leyen at the beginning of her visit to the region. The overall package is worth one billion euros in grants with 500 million allocated as immediate assistance for the region. Another €500 million is allocated as medium to long-term support in grants for investments in support to energy efficiency and energy independence, through improving gas and electricity infrastructure and interconnectors including LNG.