Regional Workshop Basel Protocol on Liability and Compensation January 1820, 2005, Warsaw Poland

1

Regional Workshop - Basel Protocol
on Liability and
Compensation (January
18-20, 2005, Warsaw/ Poland)

• -FINANCIAL LIMITS AND INSURANCE-
• Federal Ministry of Physical Planning
  and Environment
• Bosnia and
  Herzegovina

2
CURRENT LEGISLATION IN BOSNIA AND HERZEGOVINA
(BiH)

• Law on Waste Management stipulates that
  trans-boundary movements of wastes must be
  accompanied by financial or other guarantees in
  accordance with requirements of the destination
  or transit countries (article 44)
• Private insurance companies and international
  companies experienced in trans-boundary waste
  movements have been consulted during the drafting
  of the secondary legislation

3
CURRENT LEGISLATION IN BiH - contd.

• Implementing Regulation - Decree on Financial
  Guarantees for Trans-boundary Movement of Wastes,
  enacted in 2005
• Specifies Financial Guarantees covering "All
  Risks including Risk of Rejection"
• Currently allows two types of instruments to
  cover liability
• Insurance (currently preferred option)
• Bank Guarantee (Bank Surety "Financial
  Guarantee")
• Additional instrument for future consideration a
  dedicated Governmental Trust/Revolving Fund?

4
CURRENT LEGISLATION IN BiH - contd.

• The Decree specifies that the Financial
  Guarantees applied must correspond to the costs
  of alternative environmentally sound disposal and
  associated transport, or return of waste to the
  original holder, should the initially intended
  disposal of waste turn unfeasible
• Key provision Financial Guarantees applied must
  be in accordance with requirements of the
  destination or transit countries
• Multiple trans-boundary movements of the same
  type waste,
• by the same exporter and using the same
  routes, are typically covered by a single,
  general financial guarantee for the total
• waste amount to be transported during a year

5
CURRENT APPROACH TO LIABILITY ESTABLISHMENT

• Specific level of liability (Financial Guarantee)
  is established on an individual basis, based on
• waste type and quantity
• related experience of insurance companies
• prior consent of waste importers in
  destination/transit countries
• Proposed level of liability is subject to
  approval by the Ministry

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BASEL PROTOCOL ON LIABILITY AND
COMPENSATION

• Bosnia and Herzegovina has no record of incidents
  or damage resulting from trans-boundary waste
  transports
• Minimum limits according to Annex B of the
  Protocol?
• Establishment of actual insurance level for
  individual cases will initially have to be made
  taking experience of other, primarily EU
  countries into account