ŠAMAC MUNICIPALITY Investment Brief

ŠAMAC
MUNICIPALITY
Investment
Brief
Šamac Municipality
Šamac Municipality is situated in the northeastern part of Republika Srpska (RS) and Bosnia and Herzegovina (BiH). The
municipality is located on the confluence of the Bosnia River with the Sava River, in the central part of Posavina region,
right on the border with the Republic of Croatia/European Union.
Entity
Republika Srpska
Surface area
172.8 km2
Population
19,146
Population density
110 inhabitants/km2
Arable land
110 km2
Climate
Temperate continental
Number of employed persons
2,432
Number of active job seekers
2,356
Mayor
Savo Minić
Address
Kralja Aleksandra Karađorđevića no. 4
Phone/fax
Phone: +387 54 611 237, Fax: +387 54 620 300
E-mail
[email protected]
Web site
www.opstinasamac.org
Republika
Srpska
Federation of
Bosnia and Herzegovina
Republika
Srpska
Position of Bosnia and Herzegovina (BiH) in Europe
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ŠAMAC MUNICIPALITY
Investment Brief
Exceptionally advantageous geographic position
of Šamac Municipality in BiH
WHY INVEST IN ŠAMAC MUNICIPALITY?
• Exceptionally favorable geostrategic location, right on the border with the Republic of Croatia/European Union and only
60 km away from the border with the Republic of Serbia, together with excellent conditions for developing agriculture and
food industry – copious natural resources, mild continental climate, rivers, tradition in farming and food production, and
availability of skilled labor – make Šamac Municipality an ideal investment location.
• The border crossing with Croatia/EU, equipped to operate as the customs terminal, Šamac River Port and Šamac Free Customs
Zone, along with the highly developed road, railway and river traffic, enable lower costs and faster transport of goods.
• A high level of infrastructural development of Šamac River Port and its connection to railway network by a dedicated rail
track, make this port one of the most suitable commercial ports.
• The municipality offers to investors unused industrial plants and the Industrial Business Zone with 8.85 hectares of a
surface area.
• The local administration is dedicated to provide maximum support to investors through a range of incentives and benefits.
A view of the Šamac River Port
ŠAMAC MUNICIPALITY
Investment Brief
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GEO-STRATETEGIC POSITION
AND INFRASTRUCTURE
• Šamac Municipality lies on the routes east – west (Middle East, Turkey – Balkans, EU) and north – south (Russia – Adriatic).
• Bosanski Šamac/Šamac – Slavonski Šamac, a first-category international border crossing with the Republic of Croatia for
the river, road and railway traffic, is located in Šamac Municipality. The border crossing operates as customs terminal.
• Road infrastructure
• Municipality is served by a dense network of 168 km of roads, of which 9.45 km are arterial roads, 60.26 km are regional
and 98.50 km are local.
• Vicinity of the E-73 Highway: (border with Croatia) Šamac-Doboj-Lašva-Sarajevo-Mostar-Doljani (border with Croatia).
• Future Corridor Vc is around 20 km away. It is a part of the pan-European corridor linked with the TEN network and
is recognized as the major transport project in the region, linking Budapest (Hungary) and the Adriatic (Ploče Port,
Croatia), through Osijek (Croatia) and Sarajevo (BiH).
• Railway infrastructure
The Šamac-Sarajevo-Mostar-Croatian border railway with a connection to the Adriatic (Ploče Port) and the airports in Sarajevo
(cargo) and Mostar, is of utmost significance for the development of entire BiH and the region, and particularly for Šamac.
• River transport
Sava and Bosnia rivers, together with the highly developed port infrastructure, make an integral whole for a river transport.
• Airports
• BiH: Banja Luka – 160 km, Tuzla 70 km, Sarajevo (cargo airport) – 210 km
• Croatia/ EU: Zagreb (cargo airport) – 240 km
• Serbia: Belgrade (cargo airport) 190 km
• Utility infrastructure
In Šamac Municipality the infrastructure is highly developed:
• Electric power distribution
• Telecommunications
• Water supply and sewage
• Facilities for sports, culture and education
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ŠAMAC MUNICIPALITY
Investment Brief
HUMAN RESOURCES
• ‘Nikola Tesla’ Secondary School in Šamac has curriculum for administrative, metalworking, agricultural and medical profiles.
• Tradition in farming resulted in high availability of agri profiles including agriculture engineers, technologists, and agriculture,
mechanics and food-processing technicians. Workers lacking sufficient occupational skills may be employed in farming.
• Specialists for agriculture and other strategic sectors in Šamac Municipality are mainly educated at the University of Banja
Luka, link: http://unibl.org/
Skills level
Year
2013.
2014.
None
SemiSec. Highly Ass.
Skilled
skilled
school skilled degree
Spec.
Univ.
degree
Master
PhD
Total
Total
772
104
804
675
6
56
0
134
4
0
2,555
Women
385
56
250
407
0
32
0
78
2
0
1,210
Total
764
94
828
705
5
49
0
135
4
0
2,584
Women
384
54
262
422
0
29
0
74
3
0
1,228
Unemployed by the level of education in Šamac Municipality and changes in the last two years
50 agriculture technicians, 6 junior agriculture engineers and 12 agriculture engineers are registered at the Šamac Employment Bureau.
Source: RS Employment Bureau
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Investment Brief
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BUSINESS ENVIRONMENT AND THE ECONOMY
Businesses registered in the Municipality:
• 166 companies, of which 11 in agriculture, others are in services and processing sectors.
• 6,000 househods, of which 1,500 are registered as farms (legal and natural persons active in farming and agricultural
processing and recorded in the Farm Register).
• 305 enterpreneurs in the crafts, trade, catering and other sectors.
Resources
• Land, mineral resources and water represent major natural resources of Šamac Municipality. Out of the total surface area of
18,366 ha, arable land accounts for 79.76%.
• Šamac offers substantial non-used industrial plants for brownfield investments. The Municipality has 122.33 ha of land with
facilities and infrastructure, and additional 140 ha of undeveloped industrial land setting out the range of opportunities
available.
• The Municipality offers to investors the Industrial Business Zone of 8 hectares of surface area for greenfield and brownfield
investment and joint ventures.
Strategic sectors
In the Municipality of Šamac the substantial industrial facilities not in use or partially in use is available for greenfield and
brownfield investments in the following sectors:
Agriculture and food processing
• Agriculture is a strategic sector in Šamac Municipality: growing and processing cereals, fruit, vegetables, and meat.
The 2013 output
No.
Crop
Surface area (ha)
Quantity (tons)
1.
Corn
5,100
25,500
2.
Wheat
2,020
7,272
3.
Barley and rye
440
1,540
4.
Tobacco
340
544
5.
Soy
300
450
6.
Vegetables
554
13,737
7.
Orchards
300
300.75
8.
Other fodder crops
2,489
14,445
11,543
63,788.75
TOTAL
Šamac Municipality offers significant investment opportunities in the agriculture and food-processing sector. Surplus farming
output, alongside other advantages, constitutes a valuable foundation for development of processing industry. Investment
potential exists in the following value chains:
• processing of agricultural products with cold storages
• chicken, pork and beef production on existing farms available to potential investors in meat production
• production of table eggs and dairy products
• production of concentrated fodder
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ŠAMAC MUNICIPALITY
Investment Brief
Wood-processing industry
Wood-processing and furniture production represented a pillar of the municipal development (15,000,000 KM of
output and 11,000,000 KM of exports in 2012). Underutilization of several furniture manufacturing plants, along with the
existing tradition and experience, represents investment opportunity that would give impetus to this industrial sector.
Growing and processing of plantation-grown willow wood
In Šamac willow trees plantation cover around 80 ha. Willow trees are used for manufacturing of wicker-work furniture.
The 8-10 t yield per hectare, combined with the traditionally trained workforce for processing and with family miniplants, constitutes a sound base for further investment and expansion of this sector.
Metal-processing industry
Several metal-processing companies have reached enviable stage of development and export most of their output to
foreign markets. These include: Bader LLC, E-metal LLC, Baumont, Metal Holland, ID plast. The metal-processing sector
includes production of structural metalwork, construction woodwork, boilers and metal barrels. These companies open
possibilities for greenfield or brownfield investments into accompanying industry sectors.
Textile industry
The former ‘Šit’ Textile Factory in Šamac left behind sound foundations for development of the textiles sector. Trained
workforce and plant facilities, with 4,000 m2 of factory floor surface area, with accompanying infrastructure (installations,
connections) represent an opportunity for reactivating a promising textile production.
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Investment Brief
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Industrial Business Zone
Šamac Municipality offers to investors and Industrial Business Zone with completed design and technical
documentation and developed infrastructure.
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Surface area
8.85 ha, of which 3.8 ha with developed infrastructure
Location
• The zone is directly on the Sava River, around 1 km from the downtown area,
adjacent to the border crossing with the Republic of Croatia/EU and the customs
terminal, Šamac River Port and the railway.
• The zone is located along the M-17 arterial road, and the distance to the BelgradeZagreb highway is 8 km.
Infrastructure
• Road transport infrastructure of M-17 arterial road and the border crossing facilities
developed
• Electric power infrastructure put in place (power line and transformer station 10/04 KV9)
• Water engineering infrastructure: water supply pipes and rain and industrial waters‘
drainage lines in place
• Telecommunications network in place and connected to the Šamac telecommunications
network.
Documentation
Project for Industrial Business Zone infrastructure developed
Ownership
Industrial Business Zone (land and developed infrastructure) is owned by Šamac
Municipality
Cost
• Cost dependent on size and type of investment
• For transparency purposes, each request is subject to consideration and approval by
Šamac Municipality Assembly
Priority sectors
Agriculture processing industry
Access to the zone
Lease or purchase
Investment options
Greenfield, brownfield, public-private partnership
ŠAMAC MUNICIPALITY
Investment Brief
Utility costs for businesses
No.
Type of service
Cost
1.
Electric power
0.052KM/kW of energy consumed
2.
Garbage disposal
10-50KM per legal person
3.
Water supply and sewage
4 KM /m3 of water consumed
SERVICES PROVIDED TO INVESTORS
BY ŠAMAC MUNICIPALITY
Šamac Municipality provides support and work jointly with investors to unlock potentials and realise opportunities:
• Shortened response times for operating licence requests. Investors may expect their requests to be resolved within 15
days and operating approvals to be issued within 30 days.
• Municipal administration and utility companies provide assistance to investors with all procedures for starting and
operating business and obtaining approvals and permits.
• Lower fees and charges for operating licence.
• Lower charges for development of construction land.
• Lower cost for rent of construction land.
• First-year lease of available business space in the Business Zone is for free.
• Payment of 1,000 KM employment subsidy for each new employee.
• Municipal budget provides co-funding through incentive measures for certain types of production, such as incentives
for farming.
• Šamac Municipality provides the aftercare investor services to existing companies through the Collaborative Network
with the Republika Srpska Ministry of Economic Relations and Regional Cooperation.
• Time and costs for issuance of urban permit/ location conditions, construction permit and usage permit:
No.
Description
Time and cost
1.
Duration of procedure
up to 30 days
2.
Issuance of urban permit/location requirements
up to 300 KM per a facility
3.
Issuance of construction permit
up to 50 KM per 1 m2
4.
Issuance of usage permit
4.4 KM per 1 m2
General services
• Registration of legal persons at the one-stop shop of the Business Information and Financial Services Agency (APIF),
Šamac branch office. Link: www.apif.net.
• Branches of four banks, eight insurance companies, a notary and seven freigh-forwarders available at the Municipality.
Other services
Electronic registries with the detailed overview of permits and licenses needed by investors for Republika Srpska
and Bosnia and Herzegovina are available on the following links:
• Republika Srpska Government:
http://www.regodobrenja.net/index.php?jezik=1
• BiH Ministry of Foreign Trade and Economic Relations:
http://rap.mvteo.gov.ba/egfVwOdlukaJedinice.aspx
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Investment Brief
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Incentives on the level of the Republika Srpska Government
• Republika Srpska Government adopted the decision to shorten the procedures for issuance of the operating licence and
approval. The employment incentives are implemented conjointly with the Republika Srpska Employment Bureau, specifically:
•
•
•
•
funding for salaries and contributions for employment of trainees for up to one year
co-funding for employment of former soldiers of the Army of Republika Srpska
co-funding of employment of unemployed in social need.
subsidies for exports of goods and services.
Lists of fiscal and non-fiscal investment incentives on all levels of government in BiH are available on the following links:
• RS Government//Invest Srpska:
http://www.investsrpska.net/index.aspx?PageID=436&menuID=215&langid=1
• BiH Ministry of Foreign Trade and Economic Relations
http://www.mvteo.gov.ba/izvjestaji_publikacije/izvjestaji/default.aspx?id=6175&langTag=en-US
• BiH Foreign Investment Promotion Agency (FIPA)
http://www.fipa.gov.ba/informacije/povlastice/strani_investitori/default.aspx?id=141&langTag=en-US
MAJOR INVESTORS IN ŠAMAC MUNICIPALITY
By the scale of their output, exports and workforce, the following companies in the agriculture, metal and wood
sectors are the most significant investors in Šamac Municipality:
Agriculture sector
•
•
•
•
•
•
Agropex LLC, Obudovac, animal fodder production
Božić LLC, Brčko, Affiliate Unit Obudovac, animal fodder production
Agrocentar LLC, Obudovac, pork meet production and animal fodder factory
Ekomed LLC, Crkvina, honey and beekeeping equipment producton
‘Braća Pavlović’ LLC, Obudovac, slaughterhouse
Inexkop MMB, Šamac, dairy and animal fodder production
Metal sector
• Metal-Holland LLC, Šamac, metal processing
• Bader LLC, metal processing
• E-metal, LLC, Šamac
Wood-processing industry
•
•
•
•
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Nova forma LLC, Šamac, wood furniture manufacturing
Nova stolarija LLC, Šamac, wood joinery manufacturing
Denis parket LLC, manufacture of parquet floors
Baumont LLC, Obudovac, aluminium and PVC joinery production
ŠAMAC MUNICIPALITY
Investment Brief
Čedomir Borojević, Manager,
MMB-INEXCOOP LLC, Šamac
In the production program of concentrated animal fodder and the primary livestock farming that are
implemented in our company, and with producing sufficient quantities of bulk animal fodder on own
plots, in cooperation with the representatives of our municipality, we achieve programmed goals on
time. Therefore we wish to express our satisfaction with results achieved working conjointly with our
Municipality, both to meet our goals, but also with our overall cooperation.
INVESTOR CONTACTS:
Person in charge to assist investors during site-visits:
Velimir Maslić, Phone: +387 54 611 237, e-mail: [email protected]
Division in charge for issuing operating lincence:
Economic and Business Division
Milan Simić, Division Head
Phone: +387 54 611 237, e-mail: [email protected]
Private entrepreneurship:
Jadranka Aranđić, Phone: +387 54 611 800
For more information, please visit
www.opstinasamac.org
ŠAMAC MUNICIPALITY
Investment Brief
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www.opstinasamac.org
Šamac
Municipality
Kralja Aleksandra Karađorđevića 4,
76230 Šamac, Bosnia and Herzegovina
Phone: +387 (0) 54 611 217
+387 (0) 54 611 800
+387 (0) 54 611 820
+387 (0) 54 611 840
+387 (0) 54 611 860
Faks: +387 (0) 54 620 300
E-Mail: [email protected]