TWINNING LIGHT PROJECT FICHE, BOSNIA AND HERZEGOVINA Project Title Twinning Light Project fiche “Support to independence and empowerment of Communications Regulatory Agency (CRA) of Bosnia and Herzegovina” Project Number Twinning Light Number BA06-IB-TR-01-TL Funding Programme CARDS National Programme 2006 Beneficiaries Communications Regulatory Agency of Bosnia and Herzegovina (RAK) Supervising Authority Directorate for European Integration Maximum Budget 250,000.00 EUR0 TERMS OF REFERENCE 1. BACKGROUND Bosnia and Herzegovina was formerly one of the six federal units constituting SFR Yugoslavia. It gained its independence in 1992, followed by the war which ended up in 1995, when the General Framework Agreement of Pease (GFAP) was signed in Dayton, USA. The GFAP also introduced the Office of High Representative with the role to oversee implementation of the civilian aspects of the Dayton Peace Agreement. Bosnia and Herzegovina is oriented toward European integrations and sees its future in a full EU membership. The European perspective of Bosnia and Herzegovina and other Western Balkan countries was confirmed at Thessaloniki European Council in June 2003. After Bosnia and Herzegovina successfully completed eighteen requirements by the EU Road Map in September 2002, European Commission in November 2003 presented Feasibility Study on the preparedness of Bosnia and Herzegovina to negotiate a Stabilisation and Association Agreement (SAA) with European Union. On 25th of January 2006 European Union has opened a first round of official negotiation for Stabilisation and Association Agreement with Bosnia and Herzegovina. The GFAP did not directly address the field of communications, including media. The need for an institution that would regulate media was recognized at the meeting of the Peace Implementation Council (PIC) held in Bonn in December 1997 and as a result the High Representative established the former IMC, which was entrusted with regulating and licensing of broadcasters, as well with the management and allocation of the frequency spectrum. The telecommunications field had been formerly regulated by a State agency - the TRA. In March 2001, the IMC and the TRA were merged on the basis of a decision issued by the High Representative, by which the Communication Regulatory Agency (RAK) was formed as an independent State-level institution responsible for regulating the two main fields of Page 1 convergent communications: telecommunications and broadcasting; RAK is also in charge of frequency spectrum management. The role of Communications Regulatory Agency was emphasised in B&H Country Strategy Papers (CSP). BiH Feasibility Study under “3.7.6 Culture, audio-visual, telecommunications and postal services, information society” (3.7.6.1 Culture and audio-visual) indicates that "in terms of regulatory bodies, BiH is comparatively advanced in that it has an independent Communications Regulatory Agency (RAK) responsible for issuing licences to the electronic media and overseeing respect for rules and standards in broadcasting. The RAK is financially and organisationally distinct from the Ministry of Communications, but BiH needs to ensure that the independence of the RAK is maintained". Under "3.7.6.2 Telecommunications, information society, postal services" it reads that "co-operation under an SAA could be used to expand and strengthen co-operation in telecommunications and postal services and gradual alignment with the acquis. This would involve, in particular: (i) the development of legal and regulatory aspects of telecommunications [...], (ii) if necessary. the progressive liberalisation of the sector, (iii) the promotion of an investor-friendly environment for the modernisation of the telecommunications network and integration into European and world networks, (iv) institutional reforms suitable for a liberalised environment and (v) the promotion of European standards and regulatory approaches. BiH should also aim at the progressive development of the information society, including co-operation in the area of electronic communications infrastructure. […] Further liberalisation would help BiH accelerate the availability of good quality communication services and the take-up of information and communication technologies". Furthermore, the European Partnership calls for BiH to fully implement agreed Public Broadcasting System (PBS) reforms, and to maintain the independence of the Communications Regulatory Agency. The Country Strategy Paper for BiH emphasises the importance of media reform, and prioritises strategic support designed to bring about durable change in the electronic media landscape. Under Sector Democratic Stabilisation–Civil Society and Media, the MIP 2005-06 indicates objectives as follows: To ensure that the citizens of BiH have access to professional and impartial media in order to increase the mutual understanding among the constituent peoples of BiH; To ensure proper regulation of the broadcasting and telecommunication sectors. And expected results under MIP are the effective empowerment of the Communications Regulatory Agency (RAK) as the regulator of the communications market in BiH, and the assurance of the independence of the RAK. On 21st October 2002 Law on Communications was put in force and finally defined the mandate and responsibilities of RAK. The role of the Agency is to create appropriate regulatory framework which is harmonised with new EU regulatory framework and to assure its implementation in BiH. As to the communications sector regulation, some of the important areas in regulatory framework are tariffs, interconnection, LLU, VoIP, broadband and Digital TV. In order to make sure that the RAK staff is able to carry out the aforementioned tasks, it is necessary to organise additional training in relevant areas, and to procure necessary hardware and software. Page 2 RAK is the only institution in charge of frequency management in BiH. Today, Agency has satisfactory IT infrastructure. Insufficiency is seen in lack of appropriate expert software as the only tool for fulfilling tasks. Since 2000, the Agency has not revised or updated the Frequency Utilisation Plan. Therefore, directives and recommendations by International Institutions were not implemented and introduction of new technologies is lacking in BiH. The successful update of this Plan is the precondition for harmonisation of regulation in communications sector with EU directives, standards and recommendations. Bosnia and Herzegovina has already signed and ratified the EU Transfrontier Convention and will likely sign the EU TV Without Frontiers Directive. The ratification of aforementioned documents is bringing new duties and obligations for RAK, such as advertising limits and provisions for European audiovisual works and independent production. In order to be able to comply with EU Aquis Communitaire, along with RAK rules and regulations, the Agency needs to have functional, modern and capable content monitoring system and equipment for compliance monitoring of broadcasters, and, at the same time, it would greatly benefit from a transfer of know-how provided by a EU Member State that has already developed skills in content and compliance monitoring of the broadcasters’ programming schedules and in running proper market analysis of the sector. As to the Public Broadcasting System of BiH, the new Law on Public Broadcasting System, adopted by BiH bicameral Parliament on August 2005, has been eventually published in the BiH Official Gazette no. 78/05 on 16 November 2005 and entered into force 8 days later. This Law is regulating the complete Public Broadcasting System in BiH, the two entity Public Service Broadcasters (FTV and RTRS) and state level Public Service Broadcaster (BHT) as well as the forth legal entity within the system –The Corporation (a jointly run structure amongst the public broadcasting services with equal rights and obligations towards all three public broadcasting services) with its organizational units in Sarajevo, Banja Luka and Mostar. Some of the responsibilities and competencies of the Communications Regulatory Agency derived from this new Law on PBS are issuing the licence, monitoring compliance with all RAK rules and regulations, assigning frequencies, reviewing and proposing the amount of the RTV Tax to the Parliamentary Assembly of BiH, adopting rules applicable specially to PBS (programming, advertising, etc). In addition, the RAK has been tasked by the Law on Public Broadcasting Service of BiH (BHT and BH Radio 1) which entered force on 5th January 2006, to conduct a fair, open and transparent procedure in order to make a shortlist of candidates for the PBS Steering Board members. The short-listing procedure has been conducted and the list has been forwarded to the Parliament for final appointment. It is expected that the entity laws on public broadcasting services will have the same provisions related to the selection of the Steering Boards. Also in this case, RAK would benefit very much from a transfer of know-how provided by a EU Member State regarding the content and compliance monitoring of the PBS programme schedule and, possibly, the draft of relevant regulation. Linked Activities Currently ongoing project is the Twinning project (CARDS 2002) with Italian regulator Page 3 AGCOM, which started in June 2005, and whose successful end is expected during summer 2006. This project is expected to set ground for some of the projects planned for CARDS 2006. This twinning project's overall objective is to contribute to the completion of the reform of the audiovisual and electronic communications sectors and the establishment of a regulatory practice in BiH within these sectors in accordance with European standards. As to the Project Purpose, it is aimed to a) strengthen the capacities of the RAK to conduct sector analysis, researches and need assessment; b) support the RAK in the drafting of relevant secondary legislation and regulation in order to effectively update the BiH regulatory framework to meet the EU standards; c) transfer relevant competences and know how that will enable the RAK to effectively perform its institutional role in compliance with the Acquis. Project has several components: Analysis of the audiovisual and electronic communications sector in BiH; draft relevant necessary regulations or handbooks of procedures and transfer of competence and know-how and other issues of converged communications sector. Furthermore, the Agency is the beneficiary of CARDS 2005 project: “Building the Network of the monitoring stations in BiH” which consists of three fixed radio monitoring stations with total value of 1.000.000€. The contract is signed on 21.12.2005. 2. DESCRIPTION OF THE ASSIGNMENT 2.1 Beneficiaries 2.2 Ministry of Transport and Communications of BiH DEI - Directorate of European Integration PBS - Public Broadcasting System RTRS FTV PBS (BHT1 and BH Radio1) AEM – Association of Electronic Media PEM – Association of private electronic media AKOP – Association of Cable Distributors Global and specific objectives The global objective is: Empower and ensure proper regulation of the communications sector, fully implement agreed Public Broadcasting System (PBS) reforms, and to maintain the independence of the Communications Regulatory Agency. The specific objectives are: Specific objective is to enable the Communications Regulatory Agency (RAK) to oversee the dynamics of communications market, harmonise BiH regulatory framework with EU standards and increase the know-how of RAK employees. This Twinning Light Project is aimed to empower and enable the transfer of the know-how to Communications Regulatory Agency of Bosnia and Herzegovina in areas of broadcasting, telecommunications and frequency spectrum management. The training method and detailed topics will be defined according to the needs of the Agency and its employees. Page 4 2.3 Requested services Overlook of BiH regulatory framework (RF) and introduce model for harmonisation with EU RF; Transfer of know-how for efficient spectrum management; Transfer of know-how for skills of RAK expert staff upgraded for the regulatory framework harmonisation with EU Transfrontier Convention and EU recommendations, the broadcasters’ compliance monitoring and for proper market analyses; Provide expertise and knowledge in order to prepare a draft of PBS regulatory package (issuance of the licence, monitoring the compliance with the Transfrontier Convention and all RAK rules and regulations, assigning frequencies). Ensure efficient training and transfer of know-how via well organised and structured study tours in the contracting institution. 2.4 Expected results Prepared draft of BiH regulatory framework (RF) harmonised with EU RF along with respective measures; Efficient spectrum management; updated frequency allocation table in accordance with recommendations and directives of ITU and EU; Frequency utilisation plan of BiH prepared; Skills of RAK expert staff upgraded for the regulatory framework harmonisation with EU Transfrontier Convention and EU recommendations, the broadcasters’ compliance monitoring and for proper market analyses; Prepared draft of PBS regulatory package (issuance of the licence, monitoring the compliance with the Transfrontier Convention and all RAK rules and regulations, assigning frequencies). 3. EXPERTS PROFILE The project will be carried out with the help of CARDS “Twinning Light” arrangement and as such the experts should meet the formal conditions as set out in the Twinning Manual (revision May 2005). It is expected that a minimum of six experts provide services to the Communications Regulatory Agency of Bosnia and Herzegovina. Among them, one will act as the Project Leader and the others as short-term experts. The team must be able to cover the specific areas linked to: Public Broadcasting System / Service regulation; Transfrontier Convention provisions; tariff policy, interconnection and LLU-Local Loop Unbundling, VoIP, Broadband and Digital TV; Spectrum management (Frequency allocation table, Frequency Utilisation Plan) and market analysis. The expert team has the obligation to be at least 10 working man-days per month in RAK headquarters in Sarajevo in order to ensure the successful progress and implementation of the project. The expertise required should be able to provide the expected results as mentioned under point 2.3. The profile of the Project Leader should preferably be as follows: - Relevant background (Law or Economy); - At least 5 years of professional experience in the field of broadcasting; Page 5 - Special experience in regulating Public Broadcasting System and/or in dealing with the Transfrontier Convention or the Directive TV without Frontiers; Good knowledge of EU Directives and EU standards and practice relevant to public broadcasting and broadcasting in general; Knowledge of broadcasting regulation, and experience in broadcasters’ compliance monitoring; Experience in applying project management techniques; The knowledge and previous working experience in Balkans is an advantage; Good communications skills; Fluency in English. The Project Leader will be responsible for: - management of the project including reports in accordance with the project plan - preparation of project implementation process - coordination of the short-term experts - supervision of the training programmes - the quality of printed materials - rational use of all resources available A pool of minimum five short term experts should also be proposed. Three experts should be specialised in the following areas of telecommunications: 1. Tariff policy, interconnection and LLU-Local Loop Unbundling, 2. VoIP, Broadband and 3. Digital TV. 4. Fourth expert should have experience in management of radio - frequency spectrum (planning, co-ordination, allocation and monitoring of the use of the radio frequency spectrum). 5. Fifth expert should have knowledge and experience in market analysis with focus on economic analysis of communications sector. All short-term experts should have relevant expertise with at least three years of experience in the respective area of telecommunications, frequency spectrum management and market analysis. The duration short-term experts’ engagement should be defined by the Project Leader during the project implementation. Additional short term experts may of course be involved in the Project for specific topics of issues. The minimum number of days which the experts are expected to provide in RAK headquarters amounts to: Component One 22 days Component Two 80 days The project will be carried out in Sarajevo, in the Communications Regulatory Agency of Bosnia and Herzegovina. The working language of the project will be English. Page 6 4. LOCATION AND DURATION The project will have 8 months duration. It is expected to commence in October 2006. The project will be carried out in Sarajevo and in other locations in BiH as appropriate. In addition it is expected to undertake some support via study visits and traineeship. The MCA will provide working space, office equipment, internet connection and telephone line both for the experts and for the translation assistant in its offices in Sarajevo. The indicative number of days which the experts are expected to provide support to MCA is: The requirements of this Twinning Light Project can be divided into TOTAL for two components: The Component One should have the following Component 1 : 22 person days results: A. Screened current state of regulation and situation in BiH related to broadcasting (PBS), application of the Transfrontier Convention, telecommunications (tariff policy, interconnection and LLU-Local Loop Unbundling, VoIP, Broadband and Digital TV) and frequency spectrum management. 6 person days B. Drafted set of regulatory improvements (see point 2.3.) harmonised with EU standards and best practices, along with recommendations for training sessions which will be taken into account in Phase Two. 10 person days C. A comprehensive report should be written based on the aforementioned activities and analysis. 6 person days The Component Two will consist of five segments in which the Member State Twinning Light Partner needs to provide appropriate training and transfer of the know-how. This may include written materials and handbooks. In drafting the final training and assistance plan, the results and recommendations from Component One shall be taken into consideration: TOTAL for Component 2 : 80 person days D. Training of Agency's staff for successful implementation of the PBS Law and relevant regulatory reforms and analysing and developing PBS regulatory package; 15 person days E. Training RAK experts in monitoring the broadcasters’ compliance to the Transfrontier Convention provision, to the PBS Law provisions and the related RAK rules. 20 person days F. Training of Agency's staff in market analysis with focus on economic analysis of communications sector and financial operations of PBS. 10 person days G. Training of RAK staff in tariff policy, interconnection and LLU-Local Loop Unbundling, VoIP, Broadband and 20 person days Page 7 Digital TV; H. Professional support to Spectrum management in revising and updating of: Frequency allocation table of BiH; Frequency Utilisation Plan BiH; Introduction and management of DTV market in BiH. Sum (Component 1 and Component 2) A minimum of 10-days training should be provided for approximately 20 BC experts (RAK) in the contracting institution from Member State (Twinning Light Partner) 15 person days 102 Total of training / study tour days: 200 5. REPORTING The project progress will be supervised by a Steering Committee which will be chaired by MCA. Members will be invited from other BiH institutions which are involved in the operation of CPs and a representative of the EC Delegation. It is expected that the Steering Committee will meet at least 3 times during the project. The project team will submit inception report one month after the commencement date. It should include detailed elaboration of Background, State of Play of the field that project relates to, methodology and working plan with open issues if any and including proposals for the deployment of the short-term experts as well as recommendations and critical issues (assumption and risks). For each Steering Committee meeting a short progress report (quarterly reports according to Twinning Manual May 05) should be prepared, including information on the achieved progress, plan for the coming reporting period, lessons learned, key issues, obstacles, recommendations. Final report will be submitted not later than one month after the project completion, and should describe overview of the carried out tasks, achieved results, the lessons learned and concrete recommendations for follow-up. All reports are to be approved by the Steering Committee. The reports will be provided in electronic version in minimum 1 week in advance. Hard copies will be produced after approval and handed out to MCA, EC Delegation (2 copies), DEI and MS Partner). 6. BUDGET The budget of this project is 250,000 Euro. A budget of maximum 20.000 EUR should be set aside for the production of training materials and other printed documents as well as for other costs related to training, seminar and awareness raising activities. When planning the project budget, the MS partner should foresee the cost of translating key documents and training materials as well as organising interpretation during the training events. Page 8
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