Flood damage 4 billion BAM, official report in two weeks

Preliminary assessment of damage caused by floods in May amounts to 4 billion BAM, said today the head of the team for Post-Disaster Needs Assessment on behalf of the European Union, Ricardo Zapata Marti, NAP reports.

- As far as the EU is concerned, we will place emphasis on effective and rapid use of donor funds. The scale of damage will have consequences on macroeconomic indicators. From the expected GDP of 2.2% this year, it will drop to 1.1% by the end of the year – said Zapata.

It was highlighted that the final report will be presented in two weeks, which is the time needed to carry out additional checks in three sectors: agriculture, housing, and livelihoods.

Zapata emphasized that there will be a larger trade deficit of up to 10% of GDP. He added that it is possible to increase the growth and development rate, particularly in the construction sector once the reconstruction process begins.

- Damage to infrastructure, rivers and river courses, transport. Better management in the future and strengthening cooperation are needed – said Zapata.

Damage in Brčko District amounts to around 60 million euros, and the ratio between the entities RS and FBiH is almost equal in the damage assessment. As Zapata and Andy McGuffie, spokesperson for the EU Delegation, emphasized, the report was done by individual sectors, but not geographically. Interestingly, entity institutions submitted statistical assessments, and the same methodology was used in all sectors. Zapata stressed that these are damage costs, while reconstruction costs depend on ambitions.

- You have reconstruction activities in the short, medium, and long term, and they can last up to five years – said Zapata.

McGuffie said that donor funds will be equally distributed across entities. And 42 million euros from IPA funds are on the way and in the decision-making process.

The date of the donor conference is still not known, but it should be in the first half of July, NAP reports.

The Post-Disaster Needs Assessment, whose preparation was led by the authorities in BiH, with the support of the European Union, the United Nations, and the World Bank, assessed the impact of floods on people's lives and key sectors in the affected areas. Ricardo Zapata Marti, winner of the Nobel Peace Prize in 2007 together with other members of the Intergovernmental Panel on Climate Change (IPCC), was the team leader and coordinator of the assessment preparation.

The Post-Disaster Needs Assessment will be an important reference document for BiH authorities and international organizations when deciding on future aid funds.