EU Enlargement

European Business Club

October 29th, 2014

EU assistance to Economic Development in BiH

Martin SCHIEDER Head of Operations Section for Economic Development,

Trade and Natural ResourcesEU Delegation to Bosnia and Herzegovina

EU Enlargement

Main assistance programmes:

From post war reconstruction to support for EU accession.

PHARE Programme OBNOVA Programme Community Assistance for Reconstruction and Democratic Stabilisation (CARDS) Instrument for Pre-Accession (IPA)

Total support over the past 20 years: € 3.2 billion

EU financial

assistanceto BiH

EU Enlargement

Objective: Support participation in Stabilisation and Association Process and prepare for EU accession.

National IPA programme for Bosnia and Hercegovina:

Instrument for Pre-Accession

(IPA I):

2007 to 2013

Private Sector Development, 8%

Transport, 11%

Acquis and Other Activities (agriculture, food safety, energy, culture, community programmes), 16%

Social Development (health, education,

social inclusion, civil society), 19%

Justice and Home Affairs, 16%

Public Administration Development, 13%

Environment, 17%

MEUR 2007 2008 2009 2010 2011 2012 2013 Total

Transition assistance and capacity building

49,7 66,7 80,5 98,3 91,3 84,7 41,9 513,1

Cross border cooperation

1,0 1,0 1,0 2,2 2,2 2,6 2,6 12,6

50,7 67,7 81,5 100,5 93,5 87,3 44,5 525,7

EU Enlargement

Draft Country Strategy Paper

IPA Priorities for 2014:

Focus: Integrated socio-economic development SME Competitiveness and Innovation

Objective: To strengthen development of SMEs

Programming process

IPA II -ongoing

EU Enlargement

Private Sector Development:

Past assistance - Trade, competition, state aid, IPR (approx. € 23,5 mil)- Industry, eexport promotion, SME's, regional and local economic development (approx. € 24,5 mil),- Tourism (TA + grants), (approx. € 7,5mil).

Current assistance (approx. € 8.5mil)- EU Support for introduction of Quality Management Systems in accordance with ISO 9001 standard (€ 1,9 mil),- Support for development of Feasibility Studies for Business Infrastructure (€ 1,3 mil),- Grants for Local Economic Development (€ 5,2 mil).

Pipeline- Support to SME competitiveness through the transfer of best Small Business Act practice (EBRD, € 2 mil)-IPA 2014 Special measures "Recovering SMEs in flood affected areas" (€ 9 mil)-IPA 2014 "SME Competitiveness Support Facility" (€ 9 mil)

Support to Private Sector Development

EU Enlargement

Best practice from EU projects:

-Export Support Facility (€ 100,000) – Pilot SME grant scheme implemented with Export Promotion Agency (BHEPA). -SME Voucher Scheme (€ 120,000) – Over 100 SME's assisted with introduction of standards, production in improvements, marketing, development of business plans.

- EBRD Small Business Support Programme (€ 2 mil): 136 companies connected with international and local consultants (transfer of know-how, innovative technologies, introduction of standards).

•Grant for Techno-Park in Zenica-laboratory for wood testing.

Support toSME

competitiveness,export and

introduction ofstandards

EU Enlargement

Current initiatives:

Support for the Introduction of Quality Management Systems – "EU QMS BiH Project "

Assistance to SME's in whole BiH to obtain QMS certification in accordance with ISO 9001:2008(public call launched in August on http://www.euqms.ba)- Implemented over past 3 months (started in August)-100 selected out of 271 received applications- majority of client SMEs:

have less than 20 employeesfood processing; wood, metal, construction

-At least 30% of SMEs should be certified by EoY and 30% by end of 2015- 50 local consultants trained for QMS audit

Support toSME

competitiveness,export and

introduction ofstandards-ongoing-

EU Enlargement

EU Support to Business

Infrastructure (“EUSESBI")

- ongoing-

BUSINESS ZONEZONE SIZE(ha)

TOTAL INVESMENT COST EXCL.

VAT(m €)

EMPLOYMENT IMPACT

(No of jobs)

DEMAND DYNAMICS

PLANNED NO OF INVESTORS

BIHAĆBUSINESS PARK KAMENICA

34.3 6.78 1,09517 investors (10 existing)

36

BRČKOBUSINESS PARK BASE McGOVERN

34.58 4.64 1,0004 companies (3 existing)

41

ISTOCNO NOVO SARAJEVOBUSINESS ZONE VRANJES

9.5 1.44 4604 companies(2 existing)

10

LAKTAŠIAGRO- BUSINESS PARK ALEKSANDROVAC

84.18 10.48 1,500 6 investors 30

LJUBUŠKIBUSINESS ZONE ZVIRICI

39.50 3.80 96010 investors (4 existing)

48

MOSTARRRC JUZNI LOGOR

0.28 1.33 50-300 - 25

NOVI TRAVNIKINDUSTRIAL PARK NEOBARJE

50.59 8.86 1,6007 existing investors

50

ORAŠJEINDUSTRIAL PARK DUSINE

17.33 1.19 420 2 investors 10

TESLIĆINDUSTRIAL ZONE LANARA

14.08 2.36 44017 investors(9 foreign)

15

TOTAL284.34

ha€ 40.88 m 7,775 jobs 72 investors 255 investors

2]

Overview of economic and financial impact of 9 Feasibility Studies

Total investment 41MEUR – potential for 8,000 new jobs

EU Enlargement

11 grants to the local partnerships BiH-wide for Improvement of business environment at local level through:

-development of business incubators-entrepreneurial centres- SME grants to fast growing SMEs, women entrepreneurship- reconstruction of laboratory for testing joinery products - establishment of one-stop shops, etc.

Support to Local Economic

Development (LED)

5,2 MEUR

IPA 2011-ongoing-

EU Enlargement

THANK YOU

Martin SCHIEDER Head of Operations Section for Economic Development,Trade and Natural ResourceEU Delegation to Bosnia and Herzegovina