PERMITTIG- PURPOSE, SIGNIFICANCE AND STREAMLINING -

Neum, April 26, 2018.

What is the purpose of issuing permits?

PURPOSE OF ISSUING PERMITS

• All countries have an interest to protect their environment, population, landscape...

• Construction of buildings can have a negative effect on these interests

• By issuing permits countries protect the interests of the whole community

ALL COUNTRIES IN THE WORLD ISSUE PERMITS, THE MAIN DIFFERENCE IS EFFICIENCY!

DOING BUSINESS 2018 –WORLD BANK REPORT

• The World Bank uses the efficiency of issuing permits as a metric for assessing the overall ease of doing business in a given country

• The Report analyzed the process of issuing construction permits for a warehouse in a total of 190 countries

• 3 permits, 16 steps, 193 days

BOSNIA AND HERZEGOVINA

166th Place out of 190 countries

166

126

106

100

78

26

10

Bosnia andHerzegovina

Croatia

Albania

Slovenia

Crna Gora

Macedonia

Serbia

Ranking out of 190 countries in the world

Ease of obtaining permits

Energy facilities?

WORK METHODOLOGY

• Under the auspicies of entity ministries of energy, more than 10 working subgroups have been formed

• Technicall assistance provide by USAID EIA i GIZ ProRE

• More than 100 representatives of competent instutionsfrom both entities were included in the process

• Analyzed areas:

CONCESSIONS AND PUBLIC INTEREST

SPATIAL PLANNING CONSTRUCTIONWATER

MANAGEMENT

ECOLOGY/ ENVIRONMENT

FEED-IN TARIFF SYSTEM

ACQUISITION OF LAND

ENERGY SECTOR PERMITS

RESULTS

• Report on the Existing Permitting Regime

• Baseline Report – harmonisation, transparency and efficiency

• Report on the InternationaI Best Practice for Permitting

• Case Studies for the construction of energy facilities in practice

• Detailed Legal Analyses of all sectors

• Individual and Institutional Capacity Needs Assessment Report

• Guidelines for Investors

ENERGY FACILITIES PERMITTIG IN BIH

• More than 20 permits

• More than 100 steps (opinions, approvals, various administrative decisions and supporting documents)

• Up to 2 years of legal deadlines

In practice the process can last for more than 5 years!

How to improve?

RECOMMENDATIONS

Recommendation Level

Example

Strategic(43)

Adopting strategies, Spatial Plans, Action Plans

Legislative(68)

Eliminating permits, harmonizing laws

Regulatory(25)

Adopting a rulebook, harmonizing a rulebook with a law

Training and education of employees, optimisation of

procedures

Guidelines for investors

• More than 100 recommendations for both entities

Improving Legislative Framework

Institutions and Investors Capacity

Building

KEY RECOMMENDATIONS

• Adopt the missing spatial planning documents

• Improve and harmonize legislative framework

• Ensure efficiency in resolving legal-property issues

• Reduce the number of fees and their ammounts

• Improve institutional and individual capacity and cooperation of all stakeholders

• Increase competent authorities‘ transparency

• Explain the permitting procedure in the guidelines for investors

• Establish e-permitting system

• Establish one-stop-shop sistem

Effects of recommendations in

practice?

IMPORTANCE OF IMPLEMENTING RECOMMENDATIONS

• BiH needs new investments

• It is necessary to improve BiH ranking in issuing permits (166th place)

• Implementing these recommendations will create new revenues, new jobs and ensure BiH energy security

• Meeting national and EU targets

THANK YOU FOR YOUR ATTENTION!