NERETVA AND TREBISNJICA MANAGEMENT PROJECT The project will be implemented during FY

ComponentGEFGoBiHGoCBeneficiari es Total Project Costs Other donors Total Project Costs and Parallel Financing I. Improved Transboundary Water Resource Management * II. Improved Management and Use of Wetlands Ecosystems and Biodiversity III. High Priority Investments for Water Pollution Control IV. Public Participation and Management of Project Implementation** Total including physical and price contingencies In percent38% 21%20%2%81%19%100% Table 1: Project Costs (in US$ millions)

Croatia Inter-State Water Comitee Bosnia and Herzegovina Coordination Committee TA Ministry of Regional Development, Forestry and Water Management HV PIT Rep.of MRDFWM Rep.of MOE Rep.of MOC Financial Management Procuremen t - MAFWM - MRDFWM - MOE - PMT /PIU Director - PIT MOFTER PMT (Financial Management & Procurement) MAFWM FBiH MAFWM Repubika Srpska sSSSsssss sssSSSSrpska S Srpska Agency for Water Shed of Adriatic Sea Mostar PIT RS Water Directorate Bijeljina/Trebinje PIT MAFWMMOETMunici palities MAFWMMEPPMunicipalities Reporting Relation Working Relation Component 1Components 2&3 Component 4

Council of Ministers of Bosnia and Herzegovina District Brčko Ministry of Security Ministry of Foreign Affairs BH GOVERNMENT STRUCTURE Ministry of Foreign Trade and Economic Relations Ministry of Civil Affairs Ministry of Finance and Treasury Ministry of Defence Ministry of Transport and Comunication Ministry of Foreign Trade and Economical Relation is responsible for Environmental Activities at the State Level with competencies for: International relations Definition of policy, Base principles Coordination of activities and harmonisation of plans of entities and Ministry for Justice Ministry for Human Rights and Refugee

B & H City / Municipality F BH RS 1, City / Municipality I – State level II – Entities III – Cantons IV – Local level ` BiH Government Structure

ISWC and CC On the transboundary level, the existing ISWC and a Coordination Committee (CC) to be established by effectiveness –will be responsible for coordinating and monitoring the joint work under the project including preparation of water management plan, and for giving guidance on solving common problems. The CC will consist of 8 members from BiH (2 representatives of MAFWRM, MOE and Project Implementation Team (PIT) from each entity and the Project Coordinator and Deputy from MOFTER) and 5 members from Croatia (1representatives of MRDAFWM, MOC, MEPPC MFRD and the Director of the Project Implementation Team (PIT)). The CC will report to the ISWC regularly on the progress of implementation of the project joint activities and seek the ISWC guidance on any issue that may arise during implentation of the joint project activities. The CC will be chaired alternatively by a representative from each country every six months. CC will be supported with Technical Advisory Group which will consist of experts from the two countries in water, environment, agriculture, and energy sectors; HPP authorities; municipal representatives; and NGOs. The Technical Advisory Group (TAG) shall be established upon request of CC on a temporary basis to deal with thematic questions, when the need arise.

PMT For implementation of Component 1 - “Improved Transboundary Water Management” – Responsibility of the BiH State level Ministry of Foreign Trade and Economic Relations (MoFTER) and PMT will: coordinate the activities of the implementing agencies across sectors and entities serve as the liaison with Croatia and the World Bank for the activities financed under this component. be responsible for all fiduciary arrangements related to Component 1, part of sub- component 2.3 and part of sub-components 4.3 (management of project implementation for component 1) A Project Management Team (PMT) established within the MOFTER includes four specialists: Project Coordinator, Project Coordinator Assistant, Financial Manager, and Procurement Manager. The main task of the PMT is to prepare and carry out financial management, supervision, reporting, and evaluation during the project implementation period related to the above component/sub-components.

PIT’s In order to ensure that proper attention is given to project implementation, Project Implementation Teams (PIT’s) will be established within two existing water management institutions: –the Agency for Watershed of Adriatic Sea (Agencija za Vodno područje slivova Jadranskog mora) in Mostar, FBiH, –RS Water Directorate in Bijeljina (Direkcija za vode Bijeljina, RS). and –The PITs in each of these institutions will include representatives of relevant Entity Ministries responsible for water, environment and representatives of municipalities. –The PITs will be responsible for implementation of project components 2, 3 and 4, They will also be responsible for all fiduciary arrangements related to components 2 and 3, and their share of component 4, including: the preparation of the technical part of tender documents, technical specifications for goods and services, ToRs for consultants, etc