The European Commission and the World Bank will co-host a Donor Information Meeting in Brussels, January 9-10, 1997 to help donors prepare for the next pledging conference for Bosnia and Herzegovina, scheduled for early in 1997. Implementation of the 1996 reconstruction program in Bosnia and Herzegovina is progressing well and has accelerated markedly in recent months in the face of difficult political circumstances. About US$ 1,200,000 million of the 1996 donor pledges is currently under implementation across the full range of economic sectors. Some US$ 720 million has actually been disbursed to implementing organizations. There are important "real life" accomplishments behind these numbers : trains are running on the rehabilitated Sarajevo-Ploce rail lines; the Sarajevo airport has opened to commercial air traffic; District Heat installations in 20,000 apartments in Sarajevo have been renovated in time for winter. Repairs to 15,000 apartments and private homes are underway, many of which have been completed. Key bridges are being repaired and rehabilitation of three principal power plants and four main transmission lines are underway. Reconstruction is, however, a multi-year effort. With a significant amount of 1996 pledges expected to be under implementation or disbursed by year- end, fresh money will be needed in time to prevent implementation delays. The Information Meeting will be used to review the achievements and status of the 1996 program and to discuss the sectoral priorities, objectives and financial needs of the 1997 program. The meeting will build around several themes : * How can the donor community help to facilitate the safe return of refugees ? * Private sector development and recovery of industry, and * The sustainability of investments over the medium-term to ensure that Bosnians can continue the important work that donors have begun. This will focus on the need to pay attention to ensuring that recurrent costs are funded, and establish appropriate sectoral policies for cost recovery and tax mobilization. In addition to the reconstruction and the need for fresh money, Bosnia is faced with the important and urgent need to continue the normalization of its relationship with external creditors, especially official Paris-Club creditors. It is in the interest of the donor community that Bosnia is able to restore its creditworthiness as soon as possible, so that it can start attracting private capital on an increasing scale. Much will depend on the generosity of the Paris Club to allow for a deep reduction of debt Bosnia and Herzegovina owes to its creditors. EUROPEAN COMMISSIONTHE WORLD BANK International Bank for Reconstruction and Development International Development Association Contacts : World Bank : Washington, Tim CULLEN (202) 473-1782 ***
