investment brief municipality of prnjavor
Transcription
investment brief municipality of prnjavor
INVESTMENT BRIEF MUNICIPALITY OF PRNJAVOR GEOGRAPHIC POSITION Municipality of Prnjavor is situated in the Northwest part of Republika Srpska and Bosnia and Herzegovina, at the distance of around 50 kilometers from the border with the Republic of Croatia / European Union. Republika Srpska Federation of Bosnia and Herzegovina Republika Srpska 2 Geographic position of BiH in Europe Geographic position of Municipality of Prnjavor in BiH WHY INVEST IN MUNICIPALITY OF PRNJAVOR? Municipality of Prnjavor is characterized by strong entrepreneurial tradition, as well as opportunities for development of agricultural production (especially in the area of dairy production, as the Municipality of Prnjavor is the leader in the production of raw milk in Republika Srpska) and of food processing industry. Small and medium enterprises are the backbone of development in the Municipality. Most of the enterprises are active in the area of metal processing industry, food processing industry, and manufacturing of leather and footwear, but it would also be significant to mention production capacities in the area of wood processing, manufacturing of furniture, and construction materials. • With its entrepreneurial tradition, geographic position at 60 kilometers from the border with EU and key European roads leading from North to South and from East to West, well developed agricultural production, food processing industry and metal processing industry, the Municipality of Prnjavor represents an excellent location for new investments. • For many years now the Municipality of Prnjavor has been the leader in the production of raw milk, with annual production volume of 8-10 millions of liters of raw milk and with opportunities for investments in capacities for milk processing and dairy products with added value. • The Border Crossing in Gradiška, one of two border crossings through which exports from BiH are allowed of goods of plant and animal origin requiring special inspection monitoring (veterinarian and phytosanitary certificates), is only 60 kilometers away from Prnjavor. • During 2014, the municipal administration implemented regulatory reform with the objective of increasing the level of competitiveness of the Municipality and creating a more favorable business environment for investors, through simplification of administrative procedures, shortening of procedures, and reduction in the costs of doing business. The Electronic Registry of Administrative Procedures (e-Registry) is published on the official webpage of the Municipality of Prnjavor. INVESTICIONI SAŽETAK OPŠTINE PRNJAVOR MAIN DATA Area size 631 km² Administrative location Republika Srpska Time zone Middle European (GMT+1) Number of inhabitants: 48,000 inhabitants (according to the 1991 Census) Climate: Moderate continental, belonging to peri-Pannonian region Municipality Mayor: Siniša Gatarić, PhD Address 2 Karađorđeva Street Telephone/fax: +387 51 663-740 E-mail [email protected] Web http://www.opstinaprnjavor.net ACCESSIBILITY AND LOGISTICAL INFRASTRUCTURE The geographic position of the Municipality of Prnjavor facilitates shorter time for goods transport and lower transport costs for investors. Municipality of Prnjavor is located in the very East of the Banjaluka region, on the direction leading from East to West (Near East - the Balkans - European Union), and from North to South (Scandinavian Peninsula - Central Europe - Adriatic Sea). The Municipality is 55 kilometers away from the international highway leading from Belgrade (Republic of Serbia) to Zagreb (Republic of Croatia), and 60 kilometers away from the future transnational corridor Vc that will connect Central Europe with the Adriatic Sea region. . The closest international border crossings1: • Bosanska Gradiška - international border crossing of category I in road transport with the Republic of Croatia (transport of all types of goods and all transport means), distance of 60 kilometers. • Bosanski Brod - international border crossing of category II in road transport with the Republic of Croatia (transport of persons, all types of transport means, and all types of goods, excluding goods subject to excises), distance of 53 kilometers, • Rača - international border crossing of category I in road transport with the Republic of Serbia (transport of all types of goods and all transport means), distance of 190 kilometers, • Port of Šamac - international border crossing in river transport (transport of goods and passengers), distance of 100 kilometers, • International border crossings in air transport (airports): Banja Luka (distance of 42 kilometers), Tuzla (distance of 108 kilometers), Sarajevo (distance of 198 kilometers), Zagreb (distance of 197 kilometers), and Belgrade (distance of 255 kilometers). The Municipality of Prnjavor is connected to neighboring municipalities with a road network: • • • • • Primary Road Banjaluka - Prnjavor - Derventa (M-16) in the length of 43 kilometers, Regional Road route Čelinac - Prnjavor - Srbac (R-474) in the length of 40 kilometers, Regional Road Prnjavor - Doboj (R-474), in the length of 10 kilometers, The railroad leading from Doboj to Banja Luka passing through the Southern part of the Municipality, The future Banja Luka - Doboj highway will be passing in the immediate vicinity of the Municipality of Prnjavor (the Southern part), in the total length of 32 kilometers. Municipality of Prnjavor is covered by a dense network of local roads in the length of 546 kilometers (local roads - 396 kilometers and non-categorized roads - 150 kilometers). 1 Classification of border crossings according to Official Gazette of BiH, Issue No. 39/12. INVESTICIONI SAŽETAK OPŠTINE PRNJAVOR 3 BUSINESS OPPORTUNITIES OF THE MUNICIPALITY OF PRNJAVOR CHARACTERISTICS 4 Nominal value of Gross Domestic Product (GDP) - data for Republika Srpska for 2012. Source: www.komorars.ba/pkrs/projekat/6/makroekonomija) BAM 8.59 billion GDP per capita (Republika Srpska) BAM 6,013.00 Positive growth rate of gross domestic product in the first three quarters of 2013 in Republika Srpska Quarter I - growth of 0.9% Quarter II - growth of 1.3% Quarter III - growth of 1.7% Growth rate of scope of industrial production in 2013 (data for Republika Srpska) 4.1% The most developed production capacities in the territory of the Municipality of Prnjavor - sectors Agricultural production Food processing industry Metal processing industry Manufacturing of leather and footwear Scope of trade in 2013 - territory of the Municipality of Prnjavor (Source: Information on Economic Trends in RS and in the Territory of the Chamber of Commerce of Banja Luka for January - December 2013) BAM 248,138,000.00 i.e. 5.31% compared to the Regional Chamber of Commerce of the Region of Banja Luka (covering 21 municipalities from the region of Banja Luka), i.e. 3.41% compared to RS Increase of the scope of trade in 2013 compared to 2012 Municipality of Prnjavor 10.58% Value of exports in 2013 - territory of the Municipality of Prnjavor BAM 157,392,000.00 (growth of 11.8% compared to 2012) Share of exports from the Municipality of Prnjavor in the exports of the Regional Chamber of Commerce of Banja Luka 10.2% Share of exports from the Municipality of Prnjavor in exports from RS 5.9% Value of imports in 2013 - territory of the Municipality of Prnjavor BAM 66,646,000.00 (growth of 16.5% compared to 2012) Share of imports in the Municipality of Prnjavor in the imports of the Regional Chamber of Commerce of Banja Luka 2.9% Share of imports into the Municipality of Prnjavor in RS imports 2.0% • As a result of opening of the market, starting business activity in Republika Srpska creates opportunities for accessing an extremely large market without paying any customs duties. Stabilization and Accession Agreement, the Central European Free Trade Agreement (CEFTA 2006), the European Free Trade (EFTA), free trade agreements and preferential trade agreements, as well as agreements on trade and economic cooperation, are in effect.2 • In the territory of the Municipality of Prnjavor there are 415 enterprises registered, as well as 1,600 agricultural farms3 and 730 entrepreneurs performing independent crafts activity, hospitality, retail, and other types of activities. 2 3 http://www.investsrpska.net/index.aspx?PageID=403&menuID=368 APIF, as of March 30, 2015. Pre-registration of agricultural farms started on November 1, 2013 and it is still ongoing. INVESTICIONI SAŽETAK OPŠTINE PRNJAVOR HUMAN RESOURCES Periodic adjustments and introduction of new educational profiles in secondary schools are being performed in cooperation with the local community and business people from the territory of the Municipality of Prnjavor, and in line with the demand in the labor market for individual profiles of the labor force. The current numbers of employed and unemployed workers within the territory of the Municipality of Prnjavor: • Number of employed workers: 6,419 • Number of unemployed workers: 2,538 (active job seekers) • Average gross wage: BAM 1,316.00, average net wage: BAM 815.004 ACTIVE JOB SEEKERS - QUALIFICATION AND AGE STRUCTURE Qualification structure Total No schooling 174 75 Od 15 - 18 years of age 0 0 Non-qualified workers 215 85 Od 18 - 20 years of age 82 30 Semi - qualified workers, workers with lower professional qualifications 34 14 Od 20 - 24 years of age 402 181 Qualified workers 1,172 417 Od 24 - 27 years of age 262 143 Secondary school - technicians 694 423 Od 27 - 30 years of age 242 107 Highly qualified specialists 14 2 Od 30 - 35 years of age 353 172 Higher professional qualifications 34 20 Od 35 - 40 years of age 328 135 Higher professional qualifications 180 ECTS 55 32 Od 40 - 45 years of age 220 109 Higher professional qualifications, 240 ECTS 4y, 5y, 6y 142 80 Od 45 - 50 years of age 258 116 Master 300 ECTS 4 3 Od 50 - 55 years of age 236 101 MSc, old curriculum 0 0 Od 55 - 60 years of age 122 47 PhD 0 0 Od 60 - 65 years of age 31 9 65 years of age 2 1 TOTAL 2,538 1,151 TOTAL 2,538 Women 1,151 Age structure Total Women Source of data: Republika Srpska Employment Institute In the Municipality of Prnjavor there are two high schools: • Public Institution Grammar School in Prnjavor, educating students for two profiles: general profile and computer science and information technology profile. • Public Institution High School Center “Ivo Andrić” Prnjavor (www.cssprnjavor.com), educating students for six profiles (21 occupations in total) and introducing new educational profiles in compliance with demands in the labor market. Existing profiles: 4 Economics, law and commerce Geodetic science and civil engineering Machine engineering and metal processing Agriculture and food processing Forestry and wood processing Electrical technology Regional Chamber of Commerce of Banja Luka Region. INVESTICIONI SAŽETAK OPŠTINE PRNJAVOR 5 The closest university center is in Banja Luka (http://unibl.org/), where the majority of students from the territory of the Municipality of Prnjavor are educated, and there they acquire knowledge in one of the following schools of the University: Academy of Arts School of Architecture and Civil Engineering School of Economic School of Electrical Technology School of Machine Engineering School of Medicine School of Agricultural Sciences School of Law School of Natural Sciences and Mathematics School of Mining School of Political Sciences School of Physical Culture and Sports School of Philology School of Philosophy School of Forestry College of Internal Affairs NATURAL RESOURCES The most significant natural resources of the Municipality of Prnjavor comprise land and water. • Of the total area of land amounting to 62,996 hectares, agricultural land represents 42,966 hectares, i.e. 68.20%, followed by forests with 17,387 hectares, i.e. 27.60%. Agricultural land in private ownership covers the area of 37,946 hectares, and the reminder, 5,020 hectares, represents land in public ownership. • Industrial land covers the area of 372 hectares, of which the major part of 322 ha belongs to the future Vijaka Business zone.5 STRATEGIC SECTORS 6 Municipality of Prnjavor is characterized by strong entrepreneurial tradition, as well as opportunities for development of agricultural production and food processing industry. The Municipality of Prnjavor is the leader in the production of raw milk in Republika Srpska. Small and medium enterprises are the backbone of development in the Municipality. In addition, there are production capacities for wood processing, manufacturing of furniture and construction materials. The majority of workers from the territory of the Municipality of Prnjavor and neighboring municipalities are employed in those sectors. Business opportunities are offered to investors in the following sectors: Agriculture and Food Processing Industry There are 28 enterprises registered in the agricultural sector in the territory of the Municipality of Prnjavor. Business opportunities exist in the following agriculture sub-sectors: • The Municipality of Prnjavor is a leader in the quantity of milk produced for collection in Republika Srpska, with 8-10 million liters of milk produced annually. That opens a business opportunity for constructing capacities for collection, a) storage and processing of raw milk in the territory of the Municipality. For constructing a diary the Municipality of Prnjavor is offering the land in the area size of 6,340 m² with a full infrastructure (power supply, sanitation, water supply, telecommunications, and access road) of an estimated value of € 97,248.00. • Meat production and processing - poultry production is well developed (with more than 2 million heads of poultry and more than 10 million eggs for animal husbandry and consumption produced in 2014), pork production (more than b) 33,000 pigs, fattened swine and swine for animal husbandry) and cattle (more than 16,000 heads). That opens business opportunity for construction of new meat production and processing capacities, in addition to existing capacities in the Municipality of Prnjavor. • Fish production (Ribnjak Co. Prnjavor enterprise with fisheries covering the area of 638 hectares and production volume of around 750 tons annually, of which 500 tons of fresh fish for consumption, and remaining volume of production of c) fish fingerlings). 5 Republika Srpska Tax Administration. INVESTICIONI SAŽETAK OPŠTINE PRNJAVOR Fisheries of the “Ribnjak” Co. Prnjavor Enterprise Metal Processing Industry In the metal processing industry, there are 19 registered enterprises with 450 employed workers. The majority of enterprises from this area are export oriented, and the most significant sub-sectors they are operating in are the following: • Manufacturing of reinforcement and bearing grids, grids for walls, ribbed and smooth bars, • Project design, manufacturing, and installation of hot water and steam boilers and metal constructions, execution and project design of district heating systems and air conditioning systems, • Machine based metal processing. Leather and Footwear Manufacturing In the sector of leather and footwear manufacturing, there are 8 registered enterprises with 731 employed workers, with long tradition. Tourism The Municipality of Prnjavor has large tourism potentials. The nature has gifted the territory of the Municipality of Prnjavor with various natural complexities. The following are the most significant tourism localities attractive to investors: • Spa and Recreation Center “Kulaši Spa” The Kulaši Spa, with its thermal water, represents a real tourism gem in the territory of the Municipality of Prnjavor. • 14 kilometers away from the center of the city, known and recognized as a health center ever since the times of AustroHungarian Empire. The spa water is hyper-thermal, with average temperature levels of 29 degrees Centigrade and alkaline value expressed in 11.8 units. Such a degree of natural characteristics with low mineralization is excreted quickly, removing numerous harmful substances from the organism. Main indications are: kidney and urinary tract diseases, digestive tract diseases, increased blood pressure, diabetes and cholesterol, consequences of injuries, and it has been proven that the water has an effect on skin diseases, especially psoriasis. There are only three sources of water with similar characteristics throughout Europe. • This natural treasure is connected with the center of the Municipality by a regional road, while the Doboj - Banja Luka railroad passes right next to the Spa. In the spa and recreational center, around fifty beds and additional facilities (restaurant, fitness hall, sports fields, swimming pool etc) are available to guests. INVESTICIONI SAŽETAK OPŠTINE PRNJAVOR 7 Kulaši Spa “Vučijak” Horse Farm The oldest enterprise in the territory of the Municipality, founded in April of 1946. It was named after a nearby hill Vučijak. 8 • It represents a branch of the Slovenian horse farm in Lipice and is amongst the most famous horse farms from the times of former Yugoslavia. • Today on the horse farm there are around fifty heads of Lipica type horses, and the special characteristics is the existence of several animal husbandry lines and varieties, guaranteeing a large genetic potential for this prestigious type of horses. Horse Farm „Vučijak“ The Municipality of Prnjavor is a pleasant place for living and working. It is recognizable for multi ethnic and multicultural environment and it justifiably carries the nickname of “Little Europe” due to a number of minorities living in the territory of the Municipality (Ukrainians, Poles, Czechs, Italians, etc) who have well established cultural and business cooperation with their countries of origin. INVESTICIONI SAŽETAK OPŠTINE PRNJAVOR INVESTMENT LOCATIONS • For constructing a diary, the Municipality of Prnjavor offers the land in the area size of 6,340 m² with a full infrastructure (power supply, sanitation, water supply, telecommunications, and access road) with an estimated value of € 97,248.00. • The Vijaka Business Zone, on the area of 322 hectares, is situated in the vicinity of the Banjaluka - Prnjavor - Derventa (M-16) Primary Road and the crossroads of Primary Road M-16 and Regional Road - 474 (Čelinac - Prnjavor - Srbac, Srbac - Prnjavor - Doboj). The Physical Space Regulation Plan for the Vijaka Business Zone has been adopted, and the settling of ownership issues on the subject land is ongoing. The Zone is intended for greenfield investments. UTILITY COSTS 6 Water supply BAM 1.50/m³ + 17% VAT Sanitation BAM 0.90/m³ + 17% VAT Waste disposal – industrial consumers BAM 220.00 + 17% VAT (for a large container 5 m³) BAM 42.00 + 17% VAT (for a small container 1.1 m³) Waste disposal – craft stores BAM 0.42/m² of useful area + 17% VAT Waste disposal – retail stores and bakeries BAM 0.54/m² of useful area + 17% VAT Waste disposal – hospitality industry and petrol pumps BAM 0.72/m² of useful area + 17% VAT Power BAM 0.1712/kWh + 17% VAT SERVICES AND ADVANTAGES PROVIDED TO INVESTORS BY THE MUNICIPALITY OF PRNJAVOR In order to improve the business environment and efficiency of services for investors, the Municipality of Prnjavor has: • Implemented the regulatory reform creating improved conditions for investors through: • Reduction in costs and risk of doing business through simplifying administrative procedures and reducing costs of services provided by the Municipal Administration, • Enabling transparent access to information through establishment of the E-registry available on the official web page of the Municipality (http://81.93.87.14:550/eregistar/egfVwOdlukaJedinice.aspx). • Formed the Economic Council of the Municipality of Prnjavor to work together, through public and private sector dialogue, on improving entrepreneurial spirit and competitiveness of enterprises, and economic and social development of the municipality. • Municipality of Prnjavor disburses on a continuous basis incentives for agricultural development to agricultural producers from the territory of the municipality, specifically by providing incentives and regress for interest on agricultural credits. Total funds envisaged in the 2014 Prnjavor Municipality Budget for those purposes amount to BAM 468,000.00. • Municipality of Prnjavor established an Investor servicing program for existing investors (aftercare program). The Municipality of Prnjavor is planning its growth and development strategically. The 2012-2020 Municipality of Prnjavor Development Strategy7 envisages a whole set of projects directed towards achieving an improvement in the business environment and meeting investors’ needs, including environmental protection. In its work, the Municipality is applying the quality management system in compliance with requirements of the ISO 9001:2008 standard, with the objective of transforming into a modern, user friendly and efficient local administration. By creating a better business environment for investors, shortening the period of time needed for processing applications from 30 days to 10 days, and bringing the services closer to investors, the Municipality of Prnjavor has, within a short period of time, transitioned from the ranks of underdeveloped municipalities in Republika Srpska and Bosnia and Herzegovina to the ranks of developed municipalities with favorable business environments. 6 7 For industrial consumers “Official Gazette of the Municipality of Prnjavor”, issue No. 14/12. INVESTICIONI SAŽETAK OPŠTINE PRNJAVOR 9 OTHER SERVICES FOR INVESTORS • Registration of legal persons is performed by the Operating Unit of the Agency for Business and Information Technology and Financial Services (Agencija za poslovno-informatičke i finansijske usluge - APIF) in Prnjavor (http://www.apif.net/). • Within the territory of the Municipality of Prnjavor there are 9 banks active in 10 branch offices, 6 insurance companies, 2 notary offices, and 1 shipping company. • Electronic registers with a detailed presentation of permits and licences that the investors in Municipality of Prnjavor, Republika Srpska and Bosnia and Herzegovina need to obtain are available at the following links: Municipality of Prnjavor http://81.93.87.14:550/eregistar/egfVwOdlukaJedinice.aspx RS Ministry of Economic Relations and Regional Cooperation http://www.regodobrenja.net/ Republika Srpska Government http://www.investsrpska.net/index.aspx Registry of Administrative Procedures, BiH Ministry of Foreign Trade and Economic Relations http://rap.mvteo.gov.ba/egfVwOdlukaJedinice.aspx Regional Chamber of Commerce of Banja Luka Region http://www.bl.komorars.ba/stranica.php?id=115&top=110 • Fiscal and non-fiscal incentives for investors at the level of Republika Srpska and BiH are available at the following links: Republika Srpska Government http://www.investsrpska.net/index.aspx?PageID=436&menuID=215&langid=3 10 BiH Ministry of Foreign Trade and Economic Relations http://www.mvteo.gov.ba/izvjestaji_publikacije/izvjestaji/default.aspx?id=6175&langTag=en-US Foreign Investment Promotion Agency in BiH http://www.fipa.gov.ba/informacije/povlastice/strani_investitori/default.aspx?id=141&langTag=en-US IMPORTANT ECONOMIC OPERATORS IN MUNICIPALITY OF PRNJAVOR Agriculture and Food Processing Industry • Mladegs Pak Ltd. - food processing and production, with more than 200 assorted products, • MI Trivas Ltd. - meat processing industry for pork, beef, and all types of poultry, and manufacturing of lasting, semilasting, and canned products, • Ribnjak Co. - production and sale of fresh fish and fish fingerlings, • Bisprom Ltd. - manufacturing and trade enterprise from the sector of agriculture, • Kruna produkt Ltd. - food processing production – pasta products, • Živanić DS Ltd. - production of grains and feed, cultivation and exploitation of the hard line parent flock, incubator station, production of fattened chickens and chicken meat. Metal Processing • Topling Ltd. - leader in project design, manufacturing, and installation of hot water supply and steam supply boilers and metal constructions, execution and project design for district heating systems and air conditioning systems, • Komerc Mali Ltd. - leader in the manufacturing of reinforced and bearing grids, and grids for walls, • Armako Ltd. - manufacturing of reinforcement grids, ribbed and smooth bars, and other products made of steel, • Dis Eurostandard Ltd. - machine based metal processing, manufacturing of metal constructions. INVESTICIONI SAŽETAK OPŠTINE PRNJAVOR Wood Processing • Standard Co. - manufacturing of board and veneers furniture and furniture made from mixed materials, • Export-city Ltd. - manufacturing of upholstered chairs and office furniture for sitting. Civil Engineering • Gradip Co. - all types of civil engineering works (project design, engineering, supervision, construction of high-rise and low-rise facilities, manufacturing of construction materials, stone exploitation and processing) and hotel business, • Planing Ltd. - project design for civil engineering and other facilities. Leather and Footwear Manufacturing • Viale Ltd. - footwear manufacturing. Trade • Metalex Ltd. - manufacturing and trade enterprise, civil engineering and metal processing sector, • Leburić komerc Ltd. - trade enterprise with a well developed wholesale and retail network. 11 INVESTICIONI SAŽETAK OPŠTINE PRNJAVOR CONTACT INFORMATION FOR INVESTORS Person in charge of accompanying investors during their visits: Žana Pekić Тelephone: +387 51 660-224 E-mail:[email protected] Department in charge for issuance of approvals for operations: Department for Local Economic Development and Social Affairs Telephone/fax: +387 51 663-740 E-mail: [email protected] Head of Department: Žana Pekić For more information, visit the official website of the Municipality of Prnjavor: http://www.opstinaprnjavor.net/index.php/ba