Selling to the Government
Government expenditures in BiH are significant and amounted to around 40 percent of GDP in 2022. The scope of government procurements is wide as it includes many government-owned enterprises such as public utilities and service providers for telecommunications, electricity and gas utilities, transportation services, and water supply. Foreign investors have criticized government and public procurement tenders for a lack of openness and transparency. BiH amended its law on public procurement in August 2022, but the law is imperfect and still exposes the contracting process to undue influence. Transparency International’s 2022 Corruption Perception Index ranked Bosnia and Herzegovina at number 110 out of 180 countries.
The BiH Public Procurement Agency and Procurement Review Body provides information pertaining to public procurement legislation, including procurement notices. Procurements at all levels of government must conform to the state-level public procurement law.
U.S. companies bidding on foreign government tenders may also qualify for U.S. Government advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters in competition with foreign firms in foreign government projects or procurement opportunities. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agency officials expressing support for the U.S. exporters directly to the foreign government. Consult the Advocacy Center’s program web page on trade.gov for additional information.
Many governments finance public works projects through borrowing from Multilateral Development Banks. These tenders are subject to additional public procurement restrictions. Please refer to the “Project Financing” section in “Trade and Project Financing” for more information.
Financing of Projects
International financial institutions including the World Bank, the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB) are the most important sources of project financing in BiH. These procurements are open to U.S. bidders.
Multilateral Development Banks and Financing Government Sales
Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). A helpful guide for working with the MDBs is the Guide to Doing Business with the Multilateral Development Banks. The U.S. Department of Commerce’s (USDOC) International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
Learn more by contacting the:
Commercial Liaison Office to the European Bank for Reconstruction and Development
Commercial Liaison Office to the World Bank
World Bank
The World Bank has committed $1.6 billion since 1996 to BiH through 66 projects involving rehabilitation of industries, infrastructure, housing, education, health care, and landmine clearance. These funds have been used to purchase goods and equipment, build infrastructure, and obtain the consulting services needed to implement these projects. World Bank borrowers are required to submit timely notification of bidding opportunities and to advertise these opportunities and expressions of interest.
The Development Gateway Market (dgMarket) is a global online marketplace providing information on donor and government-funded tenders. Currently, dgMarket publishes tender notices for projects funded by the African Development Bank, the Asian Development Bank, Europe Aid, EBRD, European Investment Bank, EU member states, Phare/Tacis, and the World Bank. For more information, contact: info@dgmarket.com.
The United Nations publishes UN Development Business, a website which provides information on business opportunities generated through the World Bank, regional development banks, and other development agencies. Development Business is available in either print format or by online subscription. For more information contact the Development Business Liaison Office at Phone: (202) 458-2397; Fax: (202) 522-3316 or E-mail: dbusiness@worldbank.org.
European Bank for Reconstruction and Development (EBRD)
With EUR 3.03 billion ($3.15 billion) since 1996 committed to various projects in the financial, telecommunications, road, railways, and civil aviation sectors, the EBRD is one of the largest lenders in BiH.
Contact Information
European Bank for Reconstruction and Development (EBRD)
Fra Andjela Zvizdovica 1 B-15
71000 Sarajevo BiH
Phone: (+387) (33) 667-945
European Investment Bank (EIB)
The European Investment Bank (EIB) has been active in BiH since 2000 and has funded numerous projects in the industry, railways, and road sectors in the amount of EUR 1.1 billion (approximately $1.4 billion). The EIB provides additional information on its projects and procurement rules online.
U.S. Export Import Bank (Ex-Im Bank)
The Export-Import Bank of the United States is the official export credit agency of the United States. Ex-Im Bank’s mission is to assist in financing the export of U.S. goods and services to international markets. Ex-Im Bank provides working capital guarantees (pre-export financing); export credit insurance (post-export financing); and loan guarantees and direct loans (buyer financing). On average, 85 percent of Ex-Im Bank’s transactions directly benefit U.S. small businesses. Since October 2002, Ex-Im Bank has been open for private sector transactions in BiH and will consider business for short- and medium-term transactions in the private sector.
Contact Information
Export-Import Bank of the United States
811 Vermont Avenue NW
Washington, D.C. 20571
Phone: (202)-565-3477
U.S. Trade and Development Agency (USTDA)
USTDA is an independent U.S. government agency that promotes American private sector participation in developing and middle-income countries, with special emphasis on economic sectors that represent significant U.S. export potential. USTDA helps U.S. businesses compete for infrastructure projects in emerging markets by funding feasibility studies, orientation visits, specialized training grants, and various forms of technical assistance. In the past, USTDA program funds have supported numerous projects in Bosnia in the energy, telecommunications, transportation, and environmental technology sectors.
Contact Information
U.S. Trade and Development Agency (USTDA): Middle East, North Africa, and Europe Region
1000 Wilson Blvd., Suite 1600
Arlington, VA 22209 USA
Phone: (703) 875-4357
Email: mena_europe@ustda.gov
U.S. International Development Finance Corporation (DFC)
The United States International Development Finance Corporation (DFC) is the development finance institution of the United States federal government, primarily responsible for providing and facilitating the financing of private development projects in lower- and middle-income countries. First authorized on October 5, 2018, the independent agency was formed December 20, 2019, by merging the Overseas Private Investment Corporation (OPIC) with the Development Credit Authority of the United States Agency for International Development, as well as with several smaller offices and funds. The DFC was also granted greatly expanded lending authority; its overall lending capacity of $60 billion is more than double that of its predecessor institutions. The DFC’s lending capacity is used to provide loans, loan guarantees, equity investments, technical assistance, and political risk insurance for development projects undertaken primarily in lower-income countries, most often by U.S. businesses. DFC also provides support for emerging market private equity funds to help address the shortfall of capital.
Contact Information
U.S. International Development Finance Corporation (DFC)
1100 New York Avenue, N.W.
Washington, D.C. 20527, USA
Phone: (202) 336-8400
Email: info@dfc.gov