The European Commission adopted the second part of the National Programme for Bosnia and Herzegovina under the IPA-Transition Assistance and Institution Building component in 2008, which will provide financing for a maximum amount of € 54 million to support the country to make progress in key reform areas.

The programme consists of 21 projects to support Bosnia and Herzegovina’s political and economical reform process as well as the country’s alignment with EU standards.

Projects in the political field include the development of an integrated social protection and inclusion strategy for vulnerable groups, the provision of equipment for courts and prosecutors’ offices, support to prepare for the decentralised management of EU funds and to de-mining activities. Moreover, € 3,5 million are allocated for the support to civil society in BiH. In the economic field, the programme supports local economic development, the health care system, and the reform of the education sector. In addition, financing is foreseen for the support of BiH’s trade policy, its agriculture and food safety policy, its environmental institutions, and for the implementation of the BiH integrated border management strategy and action plan and the alignment of the Indirect Taxation Authority of BiH with European legislation. Last but not least, the programme finances Bosnia and Herzegovina’s participation in Community Programmes.

Other donors and Bosnia and Herzegovina will provide co-financing for 16 out of 21 projects. The Community contribution under IPA represents 70% of the total budget allocated to this programme.  Improved donor co-ordination has resulted in a division of labour in certain areas where member states or other donors are carrying out projects which would otherwise have been considered for financing.

The first part of the National Action Plan, totalling €12.5 million, was adopted on 9 October 2008 and covered five projects which had been identified for having the highest political priority or which required continuous EC financing. Those projects are related to the police reform process, support to the State Court and Prosecutor’s Office to fight war crimes and organised crime, the construction of a State high-security prison, a project preparation facility which enables the BiH authorities to submit good quality project proposals and a project on EU awareness.