| Special Edition - May 2009 |
 |
Sarajevo Special Edition
This Special Edition of our Newsletter is devoted to the recent successful joint effort between the International Finance Corporation, which is part of the World Bank Group and the Dispute Board Federation. In February this year the IFC and DBF entered into a Memorandum of Understanding to jointly promote the use of ADR in the construction sector in the Balkans through both mediation and Dispute Boards. Additional goals included bringing together leaders in the construction fields in Bosnia-Herzegovina and Serbia and local engineers, lawyers, and government officials to learn the benefits and cost savings of ADR and most importantly to liase with local investors, employers, contractors and government procurement officers in the development of programmes leading to accrediation, certification and the creation of dispute boards on new construction of roads, bridges, highways and other critical infrastructure projects in the region. To this end the DBF and the IFC jointly conducted a programme in the Practical Aspects of ADR in the Construction Sector which was attended by 45 participants from Bosnia-Herzegovina, Serbia, and Montenegro. The DBF has also been asked to develop programs for the region and act as the appointing body for new projects. To this end the DBF is planning further work in the region to effect these new goals and objectives.
- Herbert Wilson Executive Director |
|
The DBF & IFC : Sarajevo April 2009
The use of ADR in the construction sector, specifically the use of dispute boards and mediation are the core of the DBF's world-wide outreach. ADR is also part of the World Bank Group mandate, and is embedded in the day to day operations of its group's institutions: ICSID, MIGA, IFC and IBRD. Indeed the World Bank's MDB form of the FIDIC Contract along with IFC and IBRD credit agreements contain clauses, which refer to Dispute Boards and also provide for the amicable resolution of disputes as well as promoting the use of mediation in all investment related disputes.
To maximise their joint goals of ADR in the construction sector, the IFC and DBF felt that the exploration of sectoral ADR interventions, such as use of ADR in the construction industry would be a valuable exercise in the Balkan region. Lada Busevac, ADR Project Leader for IFC said "The reason for selecting the construction sector is because of the potential that this sector offers to combine ADR with a better investment climate. The construction industry is a driver of around 30 industries and has a multiplier effect on economic growth. A 1% growth rate recorded by the construction industry results in a 1.4%-1.6% growth of the overall GDP, depending on the structure and development level of the entire economy. Therefore, the construction industry not only stimulates employment and economic growth, but also contributes to general progress, and has a stabilizing effect on the national economy". All of this has led to the Dispute Board Federation (DBF), along with the International Federation of Consulting Engineers (FIDIC) to partner with the IFC to develop a pilot initiative in the Balkans and to test the implementation of ADR mechanisms in the sector which will allow for the provision of ADR services to the construction industry at an accelerated pace. Of added benefit in this pilot programme is the fact that the FIDIC contracts in use worldwide for infrastructure construction and other development projects already provide an effective form of dispute resolution which will be amplified by the joint DBF/IFC iinitiative and interventions. These interventions are designed jointly and led by the IFC AS regional offices, with the expert participation for training, certification, capacity building, and public awareness being provided by the DBF.
EurIng Christopher Chilton one of the trainers at the March/April programme in Sarajevo spoke about the practical aspects of dispute resolution through the use of mediation and dispute boards. There were 45 registered participants in the programme and some of the comments included "best programme I have ever attended," "Outstanding instruction", "Real world problem solving at its best." The participants came from all sectors - lawyers, judges, contractors, employers, and procurement officers all of which gained greater knowledge and understanding of the mechanisms of dispute resolution, the idfferent techniques available and "hands-on" practice with actual problems which arise during the construction process. The success of this programme is leading both the DBF and the IFC to develop further projects and programmes and there is an increasing interest to roll out similar projects to other regions. At the moment IFC is implementing ADR
projects in Pakistan, Serbia,
Bosnia-Herzegovina, Macedonia, Morocco, Montenegro, Ukraine, Albania, Cambodia
and Pacific Islands" 
Amir Fejzic (see interview below) of the Association of Consulting Engineers of Bosnia & Herzegovina welcomed the participants and spoke of the efforts in the region to introduce ADR to the construction process. Indeed it was a Memorandum of Understanding between IFC and ACE that brought both groups together in the area of ADR support in the region. Additionally Lada Busevac from the IFC extended her welcome and spoke of the joint efforts of both the IFC and the DBF to jointly train individuals in the Balkan region in the various aspects of dispute resolution that can be successfully used in construction disputes.
Marco Mantovanelli, the World Bank Sarajevo Country Manager for Bosnia-Herzegovina also spoke at the reception following the first days training programme and he noted the need for continued growth in both the construction sector in the region as well as the need for meaningful ADR solutions to assist in the development of the region. The joint efforts of groups such as the DBF, FIDIC, and IFC are leading the way for the many construction and development projects not just in Bosnia-Herzegovina but also in Serbia, Montenegro, and Croatia. It is hoped that continued efforts such as this will be of great benefit to the region.
Based upon the success of this initial piolit programme the DBF is continuing its efforts to establish ADR, particularly mediation and the use of dispute boards in new regional projects in the Balkans and is following up in June with a joint FIDIC DBF event on Intensive Dispute Board Training which is scheduled for June 9 & 10, 2009. The DBF has also been asked to assist in the selection and accrediation of Dispute Boards and Dispute Board Members in both Bosnia-Herzegovina and Serbia over the next several years as part of an on-going effort to develop both regions.
|
Interview with Amir Fejzic 
Amir Fejzic B.Sc, is a traffic engineer with the IPSA Institute LTD in Sarajevo, and is the Secretary General of Association of Consulting Engineers of Bosnia and Herzegovina. He also serves on the Organisation Board of the Bosnia - Herzegovina Congress on Roads. In addition to his involvement with the DBF he actively supports ADR in the construction sector and spoke to the participants in the Sarajevo Programme about the need for ADR in the region. We asked him about what is happening in the region:
What is the biggest challenge that BiH
engineers are facing?
Bosnia and Herzegovina (BiH) plans to build roads with a main motorway in
Corridor Vc which will be key transport link connecting the western Balkans
with each other and, ultimately, western Europe. Roads play a crucial role in
supporting the transition process towards a better economy, as well as
connecting towns and cities, they connect countries and link regions,
supporting trade and tourism alike. This project is helping Bosnia and
Herzegovina create good road infrastructure that can help attract investment.
One of the biggest challenges we face is to integrate with our neighbours.
Bosnia-Herzegovina is also the biggest exporter of energy in the region,
with reforms leading to the creation of Energy Community of South-East Europe
(ECSEE) - the first formal connection of the region with the EU, helping
achieve stable economic development. In energy, the focus will be on the
implementation of existing projects and continued policy dialogue on
re-establishing the central government's authority and facilitating the
country's regional integration along the lines of the Athens treaty. Emphasis
will also be given to the sector commercialisation and in particular bringing
private operations in the electricity generation and distribution activities,
in parallel with the promotion of renewable energy in accordance with best
international practices.
You have been very supportive of ADR in the
region, how do you think this will benefit the Construction Sector?
The DBF Practical ADR Training
Programme has provided participants with a thorough grounding in both Mediation
and Dispute Boards, as well as their procedures and operations. ADR Training
Programmes are helping, for sure, the BH Construction sector to work more
productively, and to release "blocked" financial resources in BiH Economy. I
mean, the BiH Construction sector will save time; money due to attorney fees, court
costs, and experts' fees; increase control over the process and the outcome; preserve relationships and increase satisfaction. The overall effect will be
captured trough the increase of BiH competitiveness.
What is IPSA and can you describe some of its
projects?
IPSA Institute Sarajevo, Bosnia and Herzegovina is
a private and independent consulting company. Since its foundation in 1958, IPSA
Institute has successfully carried out more than 7300 studies and designs.
The range of consulting and
engineering services comprises preliminary design, final design, master
planning, framework planning, tendering, feasibility studies, rehabilitation
measures, analyses of weak points, estimation of costs, feasibility studies,
traffic studies, technical assistance, supervision of construction in
transport, water supply, energy supply, environment protection, buildings and
structure and telecommunication.
What do you see as UKI BiH's role is dispute
resolution?
One
of main goals of UKI BiH (Association of Consulting Engineers of Bosnia
and Herzegovina) is realizing international cooperation of the
Association members in accordance with good business customs, as well as
establishing of positive relations with the bodies of state government and
legislator, and chambers and other local and international institutions caring
about bringing and implementation of the rules in consulting activity. Dispute
resolution could be observed as UKI's fourth goal: establishing by legislative
and other legal regulations professional standards and rules, in accordance
with the rules of the International Federation of Consulting Engineers (FIDIC)
and relative legislative, with the aim of improving the Members' services
quality.
|
|
|
|
|
|
Featured Events
Future combined
FIDIC -DBF and International Finance Corporation related programmes
and events include:
Saigon Intensive
DAB Training
12 & 13 May 2009
Sarajevo Intensive
DAB Training
9-10 June 2009
For a full listing of programmes
and events, brochures and more information and/or to register please go to:
www.dbfederation.org
|
 |
Images from the Sarajevo Programme

Mira Vucetic Prsic and Igor Prsic, Lawyers

Vladmir Djelic, (L) Lawyer, Zoli Abravanel, (C) Judge Commercial Court Belgrade, EurIng Faruk Dizdarevic (R), Civil Engineer

Predrag Subotic (L), Engineer, Violeta Brdar (C), Nikola Matic (R), Engineer

Ratka Stjepovic (L), Consultant IFC, Zoran Dimkic (R), Consultant Tahal

Munir Ramic (L), Euro Asfalt, Franjo Milos (L), Housemilos
Igor Matijevic IFC, ADR Regional Manager for Serbia

Samira Sauvage (L), IFC, ADR Project Manager for Bosnia and Herzegovina, Lada Busevac (L), IFC ADR Project Leader
 Igor Matijevic (L), IFC, and Shezana Petrovic (CL), Lawyer, and Shezana Stojanovic (CR) Judge Municipal Court Belgrade, and Marina Klaric Zivkovic (R), Judge District Court Belgrade
 Dr Cyril Chern (L), Barrister, Riny Bus (C), Head of Development Cooperation at the Netherlands Embassy Sarajevo, Lada Busevac (R), IFC
 Sarajevo City View

Milos Marisavljevic (L) IFC and Marco Mantovanelli (R), WB
 Training Day 1 & 2
 Sarajevo at night

Zoran Djordjevic
 Samira Sauvage (L) IFC, Jonathan Varoqui (CL), DBF, Amir Fejzic (CR), IPSA, Lada Busevac (R), IFC
 Zlatko Cengic, Unioninvest
|
|