Three decades after Dayton: Public corporations envisioned by Annex IX still missing

The Dayton Peace Agreement, negotiated in the United States and signed in Paris in December 1995, ended the Bosnian War (1992–1995) — the deadliest conflict of the Yugoslav breakup, marked by ethnic cleansing, the siege of Sarajevo, and the Srebrenica genocide. The accord stopped the fighting and defined Bosnia and Herzegovina as a single state divided into two entities – the Federation of Bosnia and Herzegovina and the Republika Srpska – each with broad autonomy. Its annexes laid the foundations for peace and reconstruction, including Annex IX, which envisioned joint public corporations to manage key infrastructure sectors and promote state integration.

Miro Lazovic, former President of the Assembly of the Republic of BiH, said the implementation of the Annex XI was blocked from the start, mainly by authorities in Republika Srpska (RS). He noted that neither the Federation nor state institutions approached the issue seriously, adding:

“The main reason is the deliberate policy of the RS, which sees no gain for the entity if BiH as a state does not weaken.”

Kasim Trnka, a constitutional law expert, emphasized that Annex IX had an integrative purpose, unlike other Dayton provisions that deepened ethnic divisions.

“The failure to implement Annex IX represents a violation of an international treaty... The responsibility lies primarily with domestic political actors," he stressed.

The Case of BHŽJK

The Bosnia and Herzegovina Railway Public Corporation (BHŽJK) was the only significant structure created under Annex IX. It was established to coordinate inter-entity railway operations and develop a foundation for future integration of other transport systems. However, its full operational capacity was never achieved. Unresolved issues include the management of routes, signaling standards, and international traffic.

“Despite the existence of the technical infrastructure, the full operational capacity of BHŽJK has not yet come to life," according to the experts within BHŽJK

Mehmed Konakovic, a transport engineer and infrastructure expert, said the lack of political will is the main obstacle:

“There is infrastructure – railway terminals, logistics centers, digitalization of the system. The technical prerequisites are there, but the problem is institutional. Political will simply does not exist.”

He warned that BiH cannot fully access European funds for infrastructure without a single operational transport corporation.

Fragmentation of the Energy and Utilities Sectors

Although Annex IX also covered energy, postal, and utility sectors, these areas remain fragmented and under entity control. Konakovic underlined that BiH can only rationally use its energy resources and access European investments through state-level corporations.

“Their non-implementation is not the result of technical problems, but of conscious political obstruction," according to Trnka.

Muharem Cero, former member of the State Property Commission, described the problem as both political and institutional:

“If the parties to Annex IX do not want to implement their obligations, the entire system remains paralyzed, and citizens suffer from the lack of functional and integrated public services.”

He added that the responsibility is twofold – political resistance and the lack of initiative from state and federal institutions.

Unused Potential

Experts note that the technical basis for integration exists, but the absence of political coordination prevents the establishment of state-level corporations. Without them, BiH misses opportunities for international cooperation, European funding, and infrastructure modernization.

The Register of Legal Entities established by BiH institutions includes bodies like Elektroprenos BiH, the Independent System Operator, and the Air Navigation Services Agency, showing that functional joint entities are possible when political consensus exists.

Annex IX remains one of the few Dayton mechanisms aimed at integration, but it has never become operational. Experts agree that only with political will, inter-entity coordination, and engagement from international guarantors could Bosnia and Herzegovina realize the annex’s potential and create efficient, unified public service systems. As things stand, the country continues to operate with fragmented and partially functional infrastructure.