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. 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. 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.