14 Jul 2021

Preparations for the proposed Agriculture Resilience and Competitiveness Project (ARCP) underway

In order to enhance resilience and increase competitiveness of the agriculture sector in Bosnia and Herzegovina on its EU integration path, adapting to climate changes and mitigation of the COVID-19 pandemic impact, the World Bank, in cooperation with local authorities, works on the preparations for the proposed Agriculture Resilience and Competitiveness Project (ARCP). The total amount of loan for Bosnia and Herzegovina is 73 million USD, to be equally split between the two entities of Federation of BiH and the Republic of Srpska.

The project ARCP has been included in the Public Investment Program of the Federation of Bosnia and Herzegovina 2021-2023 with the status of a “nominated project to be considered by Government of the Federation of BiH for funding through ensuring loan proceeds.”   

The proposed Project follows the World Bank’s Country Partnership Framework for Bosnia and Herzegovina and responds to its goal of Improving the efficiency of public services, private sector growth, prevention of natural resources degradation and building resilience to natural shocks. The project is also in line with the WB COVID-19 Crisis Response Approach Paper – Saving Lives, Scaling-up Impact and Getting Back on Track, specifically with its four goals of economic response, ensuring sustainable business growth and job creation, strengthening policies, institutions and investments for rebuilding better.  

The project development goal is to enhance resilience and increase competitiveness towards achieving the standards of EU market accession and will be measured by the following indicators:  

  • Farmers adopting improved agricultural technology;
  • Percentage of agri-food enterprises supported by the project reporting increases in sales;
  • Area provided with new or improved irrigation and drainage services;
  • Food safety and quality standards adopted and implemented by the project beneficiaries and public institutions;
  • Beneficiaries trained in climate smart production practices and/or technologies.

The proposed project will consist of the three project components while the fourth component concerns the project management.   

  • Component 1. Enhancing public support resilience and traceability
  • Component 2. Improving agriculture productivity, adaptation to climate change, and enhancing linkages with markets
  • Component 3. Food Quality and Safety Enhancement
  • Component 4. Project Management

In the course of preparation of the Project, the following final versions of the documents have been agreed upon for the Federation of Bosnia and Herzegovina:

  1. Stakeholder Engagement Plan (SEP)
  2. Environmental and Social Commitment Plan (ESCP)
  3. Environmental and Social Management Framework (ESMF)
  4. Resettlement Policy Framework (RPF)
  5. Labour Management Procedure (LMP)
  6. Environmental and Social Management Plan (ESMP) forIrrigation System in Sub-Project Areas of Klokot – Papari and Bakšaiš in City of Bihać (Final)
  7. Environmental and Social Management Plan (ESMP) for Irrigation System in Sub-Project Areas of Šehovci and Trnova in Sanski Most Municipality (Final)
  8. Environmental and Social Management Plan (ESMP) for Sub-Project Lupoglav and Bistrica field in Žepče Municipality (Final)
  9. Environmental and Social Management Plan (ESMP) for Irrigation System in Sub-Project Area Živinice (Final).

The next steps in the preparation of the Project are the upcoming negotiations between the relevant authorities of Bosnia and Herzegovina and the World Bank and, depending on the outcomes of the negotiations, its subsequent ratification in the legislative bodies of Bosnia and Herzegovina.