14 LEVELS OF NON-TRANSPARENCY: INFORMATION ABOUT CONCESSIONS IS HIDDEN FROM THE PUBLIC, THE CONSEQUENCES ARE CORRUPTION AND ENVIRONMENTAL DESTRUCTION

Sarajevo, June 25, 2024 – In Bosnia and Herzegovina, there are 14 different laws that regulate the field of concessions, and most authorities do not have established public registers, do not publish data on collection and debts of concessionaires, which is why there are huge corruption risks and, in many cases, modest incomes from concessions do not justify the damage caused to the environment.

At today’s professional discussion in Sarajevo, organized by Transparency International in BiH (TI BIH) and the ACT Foundation, activists, experts and representatives of relevant institutions concluded that a serious damage to the public interest exists due to the lack of transparency in allocation, control and collection of public revenues from concessions.

“Laws on concessions at all levels do not ensure the principles of transparency, non-discrimination, integrity, nor protect the public interest, and the significant benefits that concessions can bring to society are mostly absent, while the consequences of harmful contracts are suffered by citizens and the environment. The reform of the entire BH system of concessions entails harmonizing legislation at all levels with the EU Directive on concessions, as well as with each other, while respecting other international obligations, it was stated by Aleksandra Martinovic, Chairperson of the Assembly of Transparency International in BiH, adding that “all principles and provisions of the Law on Public Procurement in terms of transparency, e-procurement, conflict of interest and legal protection should also apply to concessions.”

Lejla Kusturica, director of the ACT Foundation, emphasized the importance of public participation in the decision-making processes on concessions. “We do not want to become a concession colony of either the East or the West, and we believe that the state and all administrative levels must urgently improve the concession legislation in such a way that the concession contracts also protect the public interest, and not, as a rule, exclusively the interest of investors. The first and most important step is the recognition of citizens and civil society organizations as interested parties in concession contracts”, said Lejla Kusturica.

During the discussion, it was said that registers of concession contracts, which are a legal obligation, are generally not up-to-date, incomplete or do not exist at all, and the conditions for obtaining concession rights and performing activities are generally non-transparent, which further complicates monitoring and control.

In this way, the public in BiH is generally deprived of information on what benefits budgets and society have from the exploitation of natural resources, which is why TI BiH created the Register of Concessions, which includes data on concessionaires, concession contracts, the method of calculating fees, paid obligations and debts concessionaires have towards entities, cantons and local communities.

Activists and citizens are faced with great problems in trying to protect the public interest and the environment, especially after the conclusion of the concession contract. This was pointed out by Robert Oroz, an activist from the Ecological and Humanitarian Association “Gotuša”, Fojnica, who said that it is almost impossible to cancel a contract if you are not one of the contracting parties. “That must change, and I am of the opinion that the concession fees are generally very poor in relation to the damage caused to nature,” said Oroz.

Due to the lack of transparency in the allocation, control and collection of public revenue from concessions, it is necessary to urgently integrate the concession system into a unified system of public procurement and that all principles and provisions of the Law on Public Procurement, including transparency, e-procurement, conflict of interest and legal protection, are also refer to concessions. This approach would enable the management of a single electronic register, the creation of unique concession plans and the introduction of standardized fee calculation methods, in order to ensure the effective protection of the public interest and the preservation of the natural environment in Bosnia and Herzegovina.