Approval Granted for Distribution of 14.3 Million BAM in BiH Refunds from COVAX Mechanism

The transfer of a total of 14,290,813 BAM, which were paid to the Global Alliance for Vaccines and Immunization (GAVI) as part of Bosnia and Herzegovina’s participation in the COVAX Mechanism, was approved, namely to the budgets of the Republika Srpska 4,619,901 BAM, the Federation of BiH 9,329,813 BAM and the Brčko District 341,098 BAM.

The principle of distribution is based on the proportional participation of institutions in the payment of funds, taking into account actual costs, the Ministry of Civil Affairs of BiH announced.

They stated that this result comes after a complex and multi-month process of returning funds that were previously paid to GAVI for the procurement of vaccines against Covid-19.

The Council of Ministers of BiH, at the proposal of the Ministry of Civil Affairs, adopted information on activities related to the distribution of unspent funds from the Contract on the Procurement of Vaccines against Covid-19, concluded between that institution and GAVI.

These are funds from the budgets of the entities and the Brčko District that were originally paid to GAVI as part of BiH’s participation in the Kovački Mechanism, and which were returned to the account of the Ministry of Finance and Treasury of BiH after the successfully completed process.

After consultations and coordination with all competent institutions, an agreement was reached on their distribution, with the governments of the entities and the Brčko District expressing their agreement with the proposed proportions, the Ministry of Civil Affairs of BiH announced.

The Ministry of Civil Affairs of BiH led this procedure in cooperation with the Attorney General’s Office of BiH, conducting a series of negotiations and legal procedures to ensure that the funds were returned to the budgets of the entities and the Brčko District, thus enabling their further use.

Following negotiations between the Attorney General’s Office of BiH and GAVI on November 13 last year, GAVI made an additional return of $1,959,973 (3,597,469 BAM).

The working group meeting at which a proposal for the distribution of the remaining funds (total amount in the account 3,615,115 BAM – refund from GAVI plus 17,646 BAM, which represents a positive difference due to the increase in the selling rate) was agreed upon was held on January 15 of this year.

It was proposed that the amount of 3,615,115 BAM be distributed so that the FBiH receives 2,359,947 BAM, the Republika Srpska 1,168,766 BAM and the Brčko District 86,401 BAM.

After submitting the conclusions to the governments of the Republika Srpska, the FBiH and the Brčko District on the agreed principle for the distribution of the remaining funds in the amount of 3,615,115 BAM, the Ministry of Civil Affairs will send a request to the Ministry of Finance and Treasury to make the final return of funds to the budgets of the entities and the Brčko District, which would complete the total return of funds.

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