The project “Neretva and Trebisnjica River Basin Management” intends to improve water resource management on the river basin and transboundary level, laying the basis for efficient and equitable water allocation amongst users and for improved health of the ecosystems on which the sustainable economic growth of the project area depends. The project has been accepted into the GEF Pipeline and is fully consistent with the European Union (EU) Water framework Directive (WFD). Two countries involved, Bosnia and Herzegovina and Croatia, have expressed their willingness to proceed with the conservation of the Neretva river basin and the wise use of its resources, and to collaborate with each other in the process. GEF and WB will assist the two governments in preparation of the Management Plan for Neretva-Trebisnjica River Basin. Project will be implemented in the period 2006-2011, building on on-going reforms of the countries’ water sector and existing scientific, technical and information capacities of relevant institutions. The role of PAP/RAC in this phase was to assist Bosna-S from Sarajevo in preparing the project proposal to GEF.