Mission Director David Barth and BiH Minister of Finance Nikola Spiric signed a Memorandum of Understanding (MOU) on Dec. 11, 2013.  This marks the beginning of a new relationship between USAID and the BiH government. 

 

“Since the end of the war, USAID has stood with the people of Bosnia and Herzegovina in rebuilding the country, but our work together is not done. This MOU represents a new partnership that will help to implement local solutions in accountable and responsible ways,” Director Barth said at the signing.

 

This MOU will allow USAID to more easily partner with governmental institutions to program funds through local systems in order to implement local solutions. Direct funding arrangements with local institutions can promote greater sustainability and local ownership. Such direct funding agreements with host country institutions have the potential to reduce Bosnia and Herzegovina’s reliance on foreign contractors and empower the government to deliver better services directly to citizens.

 

“Through all these years USAID gives important support to different segments of life in Bosnia and Herzegovina, and this MOU will enable better and more efficient cooperation,” Finance Minister Spiric said. 

 

“By signing this MOU, we are also challenging the governing institutions of BiH to ensure they have in place accountable, transparent and efficient systems to use these funds effectively,” Barth said. “American citizens are generous people, but they demand that the dollars they contribute here be spent to truly better the lives of the Bosnian people.”

 

Through this MOU, USAID will help strengthen financial, procurement and management systems in institutions at all levels of government.

 

“Together we will work to empower the people of BiH to demand more of their government, elected leaders, and public officials. And we will work together to empower public institutions to be accountable and to respond effectively to these demands,” Barth said.

 

USAID/BiH signed its first direct funding agreement with the Government of Bosnia and Herzegovina in September. That agreement will help the country combat human trafficking. Extensive due diligence was conducted and safeguards were established in order to protect tax payer funds. This MOU helps to put the systems in place in order to facilitate further direct funding agreements between USAID and BiH government institutions, including local governments.