The Investors Guide to Central Serbia 2009 / 2010

CONTENTS

SPECIAL EDITION

THE INVESTORS GUIDE: SERBIA 2009/2010

IMPRESSUM EDITOR IN CHIEF Tatjana Ostojić t.ostojic@cma.rs ASSISTANT EDITOR Mark R. Pullen ART DIRECTOR Tamara Ivljanin t.ivljanin@cma.rs EDITORIAL CONTRIBUTORS Mark R. Pullen, Ana Stojanović PHOTO Slobodan Jotić TRANSLATORS Snežana Bjelotomić PROJECT MANAGER Vesna Vukajlović, v.vukajlovic@aim.rs; Tanja Milićević, t.milicevic@aim.rs; Maja Vidović, m.vidovic@aim.rs GENERAL MANAGER Ivan Novčić i.novcic@cma.rs FINANCIAL DIRECTOR Ana Besedić a.besedic@cma.rs EDITORIAL MANAGER Tanja Banković t.bankovic@cma.rs PRINTING / Rotografika d.o.o DISTRIBUTION / FUTURA PLUS The Investors Guide - Serbia 2009/2010 published by: alliance international media Knjeginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 E-mail: office@allianceinternationalmedia.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2009

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INTERVIEW 6 PRIORITISING INFRASTRUCTURE NENAD MILENKOVIĆ, President Of New Belgrade Municipality And Head Of The Standing Conference Of Towns And Municipalities (SKGO) MUNICIPALITY 8 Aleksandrovac, Aleksinac 9 Arilje 10 Aranđelovac 11 Babušnica, Bajina Bašta 12 Batočina 13 Bela Palanka 14 Blace, Bogatić 15 Bojnik 16 Boljevac 17 Bor, Bosilegrad INTERVIEW 18 RECEPTIVE TO INVESTMENT - VESNA PERIĆ, Director Of The Serbian Investment And Export Promotion Agency (SIEPA) MUNICIPALITY 20 Bujanovac 21 Brus, Crna Trava

22 Čačak 23 Čajetina 24 Ćuprija 25 Ćićevac, Doljevac 26 Despotovac 27 Dimitrovgrad 28 Gadžin Han 29 Golubac, Gornji Milanovac 30 Ivanjica, Jagodina 31 Kladovo, Knić 32 Knjaževac 33 Kosjerić 34 Koceljeva, Kragujevac 35 Kraljevo 36 Krupanj, Kruševac 37 Kuršumlija 38 Kučevo, Lajkovac 39 Lapovo, Lebane 40 Leskovac 41 Loznica 42 Lučani, Ljig 43 Ljubovija, Majdanpek 44 Mali Zvornik 45 Malo Crniće, Medveđa 46 Merošina, Mionica 47 Negotin 48 Niš 49 Niška Banja, Novi Pazar 50 Nova Varoš 51 Osečina, Paraćin 52 Petrovac na Mlavi, Požarevac 53 Pirot 54 Požega 55 Preševo

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56 Priboj 57 Prijepolje 58 Prokuplje 59 Rača 60 Raška 61 Ražanj, Rekovac 62 Sjenica 63 Smederevo, Smederevska Palanka 64 Sokobanja 65 Surdulica, Svrljig 66 Svilajnac 67 Šabac 68 Trgovište 69 Trstenik 70 Topola, Tutin 71 Ub 72 Užice 73 Valjevo PWC 74 BARRIERS ‘ALMOST NEGLIGIBLE’ MUNICIPALITY 75 Varvarin, Vladimirci 76 Vladičin Han, Velika Plana 77 Veliko Gradište, Vranje 78 Vrnjačka Banja, Žagubica 79 Vlasotince 80 Zaječar 81 Žabari 82 Žitorađa

INTERVIEW NENAD MILENKOVIĆ, PRESIDENT OF NEW BELGRADE MUNICIPALITY AND HEAD OF THE STANDING CONFERENCE OF TOWNS AND MUNICIPALITIES (SKGO)

PRIORITISING INFRASTRUCTURE “It is up to local authorities to be efficient on matters of spatial planning and the issuing of relevant documents, as well as simplifying and expediting procedures and securing infrastructure that they are in charge of.” entral initiatives launched by the Standing Conference of Towns and Municipalities (SKGO), with regard to the draft Law on Regional Development, are aimed at securing a more substantial role for municipalities in defining the development policy for a particular region – says the head of SKGO and president of New Belgrade, Nenad Milenković. We speak to Mr. Milenković about the draft law and the work that Serbian municipalities still need to do to attract foreign and domestic investments.

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What is your view of the investment potential of Serbian municipalities?

The potential undoubtedly exists, but those responsible for putting that potential to use ought to start thinking like investors and ascertain what exactly it is that they are lacking. Once they do that, they should react fast to expedite certain processes, like educating the workforce, which is of exceptional importance.

Not everything boils down to securing a plot of land, electricity and water supply so that an investor can build a business facility. We need to appeal to investors with our human potential in order to create a better economy in Serbia.

perience they have already gained, they are also known as the municipalities that have successfully accommodated investors in the past.

Those that were not so successful to begin with still have a lot of work to do to convince a potential investor that they provide good conditions for doing business, since the successful municipalities have already proved that.

In your opinion, what do these other municipalities need to do in order to attract

ply to every single such municipality, because a lot hinges on the municipality itself. However, this was certainly one of the more important prerequisites. It is up to local authorities to be efficient on matters of spatial planning and the issuing of relevant documents, as well as simplifying and expediting procedures and securing infrastructure that they are in charge of. I would like to reiterate that we all need to work on improving the education of our workforce, since continuous education is in demand right now. This is the only way that we, as a nation, will remain competitive on both the European and global markets.

Decentralisation should not merely be the aim, but also a mechanism that needs to lead to a more efficient state

What are the most prominent municipalities when it comes to investment potential?

Those that have made the most progress are still ahead of the rest. Aside from the ex-

more investments and what does the Serbian Government need to do in that respect?

The Government needs to invest a lot of effort in improving the infrastructure of Serbia, since there is no good economy without quality roads and fast railways. The municipalities that were the most successful in attracting investments are those that have such infrastructure, i.e. which are in the vicinity of Corridor 10 and the Belgrade Airport. Of course, this doesn’t ap6 / The Investors Guide - Serbia 2009/2010

How much can SKGO help to attract as many investments as possible?

Quite a few of our projects pertain to advancing the capacities of local self-governments. We are helping municipal authorities to take on new jobs and obligations, since delegating jurisdiction to the municipal level has never been accompanied by a possibility of hiring new people that are actually trained to do such a job. The existing administration, which has been in place for decades and has never undergone any reforms, is expected to perform these tasks in an efficient manner. Moreover, as the collec-

tive voice of Serbian towns and municipalities, we are talking to the Serbian government, individual ministries, representatives of international organisations and countries, in order to highlight the problems that Serbian municipalities face in attracting investments.

We also support activities aimed at simplifying the procedures companies need to undertake via an organisation called NALED, of which we are members. I am personally working on linking businesses from the municipality of New Belgrade to other municipalities in Serbia, since I think the business interests of companies from New Belgrade are complementary with those of many other municipalities that can offer something our municipality, as a highly urbanised area, cannot. I believe there are many companies that would like to relocate their headquarters to business premises that New Belgrade has in abundance. There are also production facilities, distribution and processing centres in other municipalities that can offer cheaper land and easier access to required resources.

Which projects would you highlight that SKGO has implemented in the past?

We have implemented quite a few projects and what is really good about all of them is their diversity: some created conditions for more significant civil participation in political life at a local level, others dealt with environmental protection and utility issues, while the most important led to improving capacities of local authorities when it come to providing better quality services. In terms of the depth and scope of achieved results, I would like to single out the Exchange project, which was launched with the aim of providing support to many existing activities in the local self-government sector in Serbia and was

PARTNERS The SKGO programmes are endorsed by quite a few institutions, donors and organisations. These include the European Union, the Swedish government (via SIDA), Germany (via GTZ), Switzerland (via SDC), the United States (via USAID), the Norwegian government, the British government (via DfID), and we should not forget the UNDP and OSCE, since the projects they support often have a regional or international dimension.

actually all about exchanging experiences.

Then there is the project entitled ‘Developing the Network of Task Forces for Supervision of Implementation of the Ethical Code of Conduct for Local Officials’ and ‘Serbia Local Government Reform Programme’ (SLGRP), which had the objective of restoring efficient, appropriate and responsible local governance in 70 municipalities.

What are SKGO’s current projects?

Most of the projects we are implementing at the moment are a continuation of programmes and projects we have been implementing in the last few years, which tells us that these projects have indeed been successful. This also means that SKGO was recognised as a reliable partner in something we call a ‘donor community’. We are currently implementing the Exchange 2 programme, which is financially supported by the EU. Then there is a project entitled ‘Strengthening Capacities of the Standing Conference of Towns and Municipalities’, which is realised in partnership between SKGO, UNDP and the Swedish International Development Agency (SIDA).

Aside from these two programmes, SKGO is implementing the second stage of a programme called ‘Support to Increased Citizen Participation in Serbia’, which is endorsed by the SDC, as well as programmes supported by GTZ – such as ‘Planning for Sustainable Municipal Infrastructure’ and ‘Supporting the Intergovernmental Finance System in Serbia’.

There are also many other projects that I could cite. The Standing Conference will finalise a very important project soon. This involves putting together a database called SLAP 2.0, which will contain information about all municipal projects implemented in Serbia and will be evaluated and financed by foreign and domestic financiers at a later stage. The idea behind this project is to ensure that municipalities don’t do project applications for each individual donor, but rather make Serbia 2009/2010 - The Investors Guide / 7

the whole procedure simpler, since donors will have evaluations that they need to be centralised in one place.

Can you tell us in few words what proposals the SKGO made regarding amendments to the Law on Regional Development?

Our core initiative is made along the lines of securing a more important role for the municipalities in defining development policies in a particular region. Thus, from bottom up and not vice versa, as this law stipulates. Without this, the law would only boil down to administrative measures like setting up government agencies for regional development and their sub-agencies in accordance with the NUTS classification, just as the legislator wants it.

What we want is for this law to allow people living in Serbian regions to have more say in what goes on in their respective region with regard to regional development policy and not only to secure mechanisms for using the EU’s pre-accession funds. This is only possible through ensuring municipalities play a more significant role, since the people who represent citizens come from the municipalities that belong to a certain region. This is concurrent with the main principles that SKGO stands for.

The good thing is that regionalisation and state decentralisation policies in Serbia are not going to be regulated only by this law, judging by the statements of Serbian President Boris Tadić. I think that we are moving in a very good direction that will lead to our country becoming better regulated. Decentralisation should be carried out wherever possible, while in places where the effects of the decentralisation could be negative, things should remain centralised. This middle administration could provide answers to many questions and dilemmas that exist today in reference to jurisdiction and the responsibility of the Serbian state and its municipalities.

ALEKSANDROVAC

TOURISM & WINE A

CONTACT JUGOSLAV STAJKOVAC, Municipal President Trg oslobođenja 7, 37230 Aleksandrovac Tel: +381 (0) 37 552 275 Fax: +381 (0) 37 751 297 Email: soaleks@ptt.rs www.aleksandrovac.co.rs Languages: Serbian & English

ALEKSINAC

CONTACT NENAD STANKOVIĆ, Municipal President Knjaza Miloša 169, 18220 Aleksinac Tel: +381 (0) 18 809 001 Fax: +381 (0) 18 804 107 predsedniksoal@yahoo.com www.aleksinac.org Languages: Serbian & English

leksandrovac is located in central Serbia’s Rasinski County and the administrative, economic, educational and cultural centre of the municipality is the town of Aleksandrovac.

The municipality covers an area of 387 km2 and is home to 29,389. To the west, the municipality borders the Dinaric Alps (Goč, Željin and Kopaonik). The diversity of the municipality’s territory is quite pronounced, with the altitude ranging from 190 to 1,785m/asl. There are several geological formations in the municipality, including Donja Župa and the mountainous region of Gornja Župa. Aleksandrovac’s geographical position was once very popular with warlords and military strategists, while today the municipality is frequented more by nature lovers and tourists. Its climate and land are perfectly suited for growing all sorts of grapes, which is why wine cultivation and tourism are the two main development directions in the municipality.

TOURISM The municipality has extraordinary tourist potential, facilitated by the nearby Kopaonik Mountain, Vrnjačka Spa, Rudenice Monastery, the ruins of the Drenča Monastery and the medi-

aeval town of Koznik, Mitrovo Polje air spa and good road connections between the municipality’s villages. Moreover, the area is home to many vineyards and the annual ‘Župska Vintage’ tourist event, which has been held for the past 45 years.

There is the existing Župa Museum and the future Museum of Viticulture and Wine Making, with a built-in wine cellar. This will be the only museum of its kind in Serbia. The Tourist Organization of Aleksandrovac can provide all available information about the tourist offer of Župa.

ECONOMY The basic features of the municipality’s countryside, population structure and urban infrastructure provide the basis for the further development of the municipality. It also has a local development office to promote economic growth. As 65.4% of the municipality’s territory is agricultural land (78.8% of which is actually arable land), it i s no wonder that agriculture represents the main economic activity in the municipality. Viticulture, fruit and vegetable growing and livestock breeding are the most widespread agricultural activities. Aside from an existing industrial sector that includes machine engineering, textiles and rubber processing companies, private entrepreneurship has been developing significantly in recent years.

MUNICIPALITY WITH VISION T

he Municipality of Aleksinac is situated in southeast Serbia’s Nišavski County and covers an area of 707 square kilometres. It has a population is 57,749. Some 64% of the municipality’s territory is agricultural land, while 36% is hilly or mountainous. The area’s agricultural land lies in the valley of the South Morava River and the lower basin of the River Moravica, which runs through the town of Aleksinac. There is a gas pipeline running straight through Aleksinac and gas system installation is currently being carried out. The Town of Aleksinac (population 17,171) is the municipal, cultural and administrative centre of the municipality. Aside from Aleksinac, the municipality encompasses another 71 villages. The country’s main transport routes are in close proximity to Aleksinac.

These include the main north-south rail line and the E-75 (Corridor 10) Motorway that leads to Southern Europe and the Middle East. The Aleksinac railway station is only three kilometres from the town centre and Niš’s Constantine the Great Airport is 30 kilometres away. Two rivers run through the town: the Moravica and South Morava. The Bovan Reservoir is also near Aleksinac. It covers an area of 110 hectares and contains 59,000,000m3 of water that is used for drinking by the most of the municipality.

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This manmade lake is an ideal tourist resort.

DEVELOPMENT STRATEGY The municipality has implemented the programme ‘Strategic Plan for the Economic Development of the Municipality of Aleksinac’, which was funded through the EU’s Exchange Programme and administered via the European Agency for Reconstruction.

The plan outlines the main activities to be undertaken to create conditions, plan and implement the dynamic economic and social development of the municipality. The municipality’s vision is to become a community able to ensure a high quality life and prosperity for all citizens through economic development. The plan also calls for Aleksinac to have become a contemporary European municipality by 2016, with developed entrepreneurship, economy and agriculture, high quality infrastructure, preserved nature, eradicated poverty, high employment figures, efficient local administration and richly preserved culture and tradition. On 22nd May 2007, the Royal Netherlands Embassy bestowed the title of “Environmental Ambassador” on Aleksinac, along with nine other municipalities considered leaders in the area of sustainable development and environmental protection.

ARILJE

RASPBERRIES,

APPLES, BLUEBERRIES...

Our foreign trade surplus reached €16 million in 2007 he Municipality of Arilje is located in southwest Serbia between the tri-state border of Serbia, Bosnia & Herzegovina and Montenegro.

The municipality belongs to Zlatibor County. It is situated between the rivers Moravica, Veliki and Mali Rzav and covers an area of 349 square kilometres. Arilje’s most important markets are Užice, Čačak, Kraljevo, Valjevo, the border regions of Bosnia & Herzegovina and Montenegro, Belgrade, Sarajevo, Podgorica and Kragujevac. The municipality is 200 kilometres from the airport and city of Belgrade, 250 km from Podgorica and 230 km from Sarajevo. In terms of the municipality’s transport capacities, there is the M 21/1 regional road and the M21 that leads to Montenegro and Bosnia & Herzegovina, which is just 14 kilometres from Arilje. The central Belgrade – Bar railway line runs through the municipality via Požega and is also 14 kilometres from Arilje.

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state-owned sector has been completed and the unemployment rate is constantly falling. According to the Serbian Statistical Office, average monthly net earnings in the municipality in September 2008 were €281. The county’s average was €351, while the state average stood at €395.

INDUSTRIAL ZONE The existing spatial planning documentation shows two industrial zones. Land on which these zones are located is privately owned, though each zone is equipped with adequate infrastructure.

INCENTIVES The sector with the highest development potential in the Municipality of Arilje is processing and the food industry. Local producers can secure sufficient quantities of required raw materials: 15,000,000 kilograms of raspberries, 5,000,000 kilograms of apples, 5,000,000 kilograms of plums and 10,000 kilograms of blueberries annually. We would like to mention a qualified workforce in the food processing sector. The municipal agriculture development fund, available land for investors and fast procedures for issuing various permits, all combine to make the municipality a good investment location.

The procedure for issuing permits is carried out in three stages. The first stage involves acquiring the Act on Spatial Planning Conditions.

This stage lasts between 15 and 30 days. The second step is obtaining a building permit, which can be approved in a maximum of 15 days. The third step is registering construction works, which lasts up to three days. All other activities (such as project writing, technical supervision, etc.) do not come under the municipality’s jurisdiction and the time needed for completing these activities depends mostly on the investor.

MIRJANA ALAKUMOVIĆ, PRESIDENT OF THE MUNICIPALITY OF ARILJE: “The existing spatial planning documentation shows that the municipality boasts two industrial zones”

The procedure for issuing permits is carried out in three stages

ECONOMY Arilje’s economy is almost completely privatised. The dominant branches are agriculture and food processing, as well as the textile industry, wood and metal processing. Raspberry growing in Arilje is known worldwide and has a protected geographical state. The same applies to textile products from Arilje, which bear the quality mark ‘Ariljski Tekstil’ (Arilje’s Textiles). The advantages of the municipality’s economy lie in its developed entrepreneurial spirit and tradition of private entrepreneurship, while the economy is mostly linked to production and is highly diversified. Moreover, the export and foreign trade surplus are growing constantly (in 2007, the foreign trade surplus reached €16 million). There are no large corporations here, ensuring the area is quite well adapted to market needs, while the ownership transformation of the

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CONTACT MILAN PETROVIĆ 53, Svetog Ahilija, 31230 Arilje Tel: +381 (0) 31 891 287 Fax: +381 (0) 31 891 287 Email: arilje@arilje.org.rs Website: www.arilje.org.rs

ARANĐELOVAC

SEEKING SOLID INVESTMENTS “The local government is ready to provide full assistance to both foreign and domestic companies” he City of Aranđelovac is the administrative seat of the Municipality of the same name. It lies along the north-eastern foothills of Šumadija’s densely forested Mount Bukulja (696m/asl) and the source of the River Kubršnica. Much of the town lies along the left side and the banks of the Kubršnica, which extends from the village of Bukovik to the Ćirkovca Stream (approx. 2.5 km). Aranđelovac, city and borough, has a population of 48,129 (2002 census) living in two urban and 18 rural local communities on an area of 376 square kilometres. Bucking the outward migration trend of much of Serbia’s provinces, the population of Aranđelovac has actually increased some 14.3% since 1971 (2002 census). The city itself has developed as an elongated conurbation stretching along both sides of the Topola-ValjevoKragujevac A-road. It has a favourable location for transportation, with the M-4 A-road traversing the municipality and linking it to the Ibarska A-road and on to the E-75 Motorway (PanEuropean Corridor 10).The M-4 A-road and P-202 regional road pass through the Aranđelovac village of Orašac, while the municipality is also linked to the M-23 towards both Kragujevac and Belgrade (via Mladenovac). Plans will also see the M-4 linked to the future E-763 Motorway (Belgrade-South Adriatic). Local education is led through 22 primary and three secondary schools. A total of 68% of the population has completed both with primary and secondary education, while 5.5% have completed higher or university education.

ECONOMY Analysis of income by sector (2005 data) shows the manufacturing industry contributing 38% to the local economy (down 2% on ’02), while agriculture, forestry and water management accounted for 20% (up from 15% in ’02). Meanwhile, the Horeca sector (hotel-restaurant-catering) dropped from 3% in 2002 to just 1% in ’05.By far the largest company in the municipality is drinks’ maker AD Knjaz Miloš (mineral water, juices and energy drinks).

Holding Corporation Šamot produces refractory materials and exploits local mines, while companies Elektroporcelan and DD Elka manufacture ce-

T Aranđelovac has a long term strategy for the tourism sector

ramic components and insulators for electrical circuits. Marble is mined by the Venčac Company, PP Peštan produces PVC pipes and DD Kubršnica produces building materials (brick mounting carriers). Aranđelovac also boasts many smaller private companies.

TOURISM POTENTIAL Tourism has huge development potential in Aranđelovac, with the area currently only served by three hotels (Staro Zdanje, which requires urgent reconstruction, Hotel Šumadija and Izvor), as well as the INO resort and Lovački dom Motel on Mount Bukulja. There are also a large number of private accommodation options, numerous cafes and restaurants. The Municipal authorities have a long term strategy for the tourism sector (developed by agency HOSTING), which envisages the zoning of areas for hotel complexes, themed ethno villages and other tourist facilities. Aranđelovac is renowned for its holiday spirit, mineral springs, entertainment events and cultural content. This includes the popular Marble and Sounds Art Festival, the White Venčac Symposium and the World Ceramics Festival.

HEALING WATERS Aranđelovac’s famous Bukovička mineral water is among the most highly valued European and world waters. It has refreshing, beneficial effects on the human body and a wide range of therapeutic and even preventative properties, if used regularly.

INDUSTRIAL ZONE The municipality has devised an urban plan for the development of industrial zones in the areas of Peštan and Kubršnica, as well as the city itself. A total area of 164.12 hectares has been earmarked for these zones.

PERMITS AND DEADLINES Keen to attract new investors, the local government is ready to provide full assistance to both foreign and domestic companies seeking to invest in Aranđelovac. All construction permits can be obtained within regular deadlines and with the full support of the municipality.

INVESTMENTS TO DATE The biggest investments in the municipality so far have been made by Salford Group (AD Knjaz Miloš), Peštan, Europark et al.

Aranđelovac’s famous Bukovička mineral water is among the most highly valued European waters

CONTACT NEGOSLAV PETRONIJEVIĆ, Head of Municipal Administration Venac Slobode 10, 34300 Aranđelovac Tel: +381 (0) 34 710 100 Mob +381 (0) 64 8669 295 Email: soar@eunet.yu Languages: Serbian & English

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BAJINA BAŠTA

DEVELOPMENT TO COME B

ajina Bašta lies on the River Drina in western Serbia, in an area of the Zlatibor County dominated by the majestic Mount Tara. Bajina Bašta’s 378 villages/hamlets and 29 local communities cover an area of 673km2 and are home to some 29,000+ residents. Bajina Bašta has long been known for its pine wood, white water rafting on the River Drina and the famous tobacco “Bajinovcu”. Nowadays the region is the centre of forestry, hydro power plants and adventure tourism.

of raspberries and different varieties of fruits and vegetables. The revitalisation of the Bajina Bašta Hydroelectric Plant began in June 2009 and will cost an estimated €65.5 million to complete. German banks provided credit of €30 million, while the remaining €35.5 million is to be provided by Elektroprivreda Srbija. The renewal is due for completion by 2013, when the power output will be increased from the current 368 MW to 422MW.

ECONOMY The economy of Bajina Bašta is based on the Bajina Basta (1,000MW) Hydroelectric Power Plant. However, the local privatisation process has produced very poor results and the local community is now searching for ways of developing tourism, trade production, hunting and fishing.

In addition to the hydroelectric plant, the metal industry is represented by IKL and GP Razvoj; there is clothing (textiles and knitwear) production, as well as a number of micro facilities for wood processing. The area surrounding the town of Bajina Bašta is home to orchards and fields

TOURISM POTENTIAL Tara National Park covers an area of 19,175 hectares and boasts over a thousand species of plant, as well as numerous reservoirs beside the rivers Drina and Tara. The park represents a huge opportunity and a very real challenge for the future development of the municipality.

This rare haven of outstanding natural beauty and untouched nature, clean air, clear rivers, and preserved forests, is even home to its own unique tree: the Pančićeva spruce, which grows only in this region. Tara is also home to bear, boar, deer and other animals, both large and small.

DEVELOPING AGRICULTURE

CONTACT MILOJE SAVIĆ, President of the Municipality Dušana Visić 28, 31250 Bajina Bašta Tel: +381 (0) 31 865 280 Fax: +381 (0) 31 865 282 Email: sobb@nadlanu.com www.bajinabasta.rs

BABUŠNICA

The municipality’s development strategy is mainly based on the further development of agriculture

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he Municipality of Babušnica is situated in the Pirotski County and borders the municipalities of Pirot, Bela Palanka, Vlasotince and Crna Trava, as well as bordering EU member state Bulgaria to the east. The municipality has a population of just under 16,000 and covers an area of 529km2. The Town of Babušnica is the municipality’s centre, while the municipality encompasses 52 villages and hamlets. It is located on the M-9 regional road (Leskovac-Pirot section), which is linked to the E-75 motorway (pan-European Corridor 10) and the E-80 motorway (direction of eastern Europe).

Babušnica is 65 kilometres southeast of Niš, 25 kilometres south of Pirot and 55 kilometres northeast of Leskovac. Its territory is mostly hilly, with forests, pastures and arable land. When it comes to the structure of agricultural land here, ploughed fields and vegetable crops cover 51.4%, while pastureland and meadows take up 44.3%. The Municipality of Babušnica is suitable for diverse agricultural production, while the area has an average of 78 head of cattle and 184 sheep per 100 hectares of arable

land. The municipality’s development strategy is mainly based on the further development of agriculture, primarily livestock breeding, crop farming, fruit growing and collecting medicinal herbs, as well as on constructing processing capacities (particularly for organic food). Cattle breeding is the dominant economic branch and, thus, is given priority. However, the municipal authorities will continue advancing dairy production, fruit growing (plums, currants), developing mini-orchards, crop farming (wheat, maize), bee keeping, vegetable growing, organic food production, reclamation of pastures and meadows, construction of small nurseries, plantations and developing experimental land plots. Aside from agricultural activities, there are plans to develop tourism based on the natural eco-system, the Zvonačka Banja springs, the River Jerma Canyon and other locations.

Industrial technology currently used in the municipality is outdated, while privatized production facilities are almost non-operational and employ very few workers.

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CONTACT SLAVOLJUB KOSTIĆ, Municipal President Ratka Pavlovića 1, 18330 Babušnica Tel: +381 (0) 10 685 112 Fax: +381 (0) 10 685 191 Email: sobabusnica@ptt.rs babusnica.opstinesrbije.com Languages: Serbian & English

BATOČINA

FREE LOCATIONS FOR INVESTORS

The Municipality aims to provide all relevant logistics under its jurisdiction he Municipality of Batočina is located in the lower basin of the River Lepenica and along the banks of the Velika Morava River in Šumadijsko-Pomoravski County. The municipality covers an area of 136 square kilometres and has 12,220 inhabitants. Batočina is 105 kilometres from Belgrade and is situated on the E-75 Belgrade-Niš motorway, which is part of pan-European Corridor 10. Batočina is connected to Lapovo, Velika Plana and Jagodina via the R-214 regional road. There are also two very important regional railways running through the municipality: Belgrade – Niš – Skoplje and Lapovo – Kragujevac – Kraljevo.

T RADIŠA MILOŠEVIĆ, PRESIDENT OF THE MUNICIPALITY OF BATOČINA: “Municipal authorities will issue a building permit within 24 hours, while all other approvals will be issued once an investor provides relevant permits from state authorities.”

ECONOMY Small enterprises make up around 90% of all companies here, while there are also four companies classified as medium and large. Most of the companies in Batočina are engaged in wholesale and retail trade, the processing industry (16.7%), as well as agriculture (six companies) and transportation (five companies). In the production sector there are three companies producing plastic and rubber products. The municipality also has several textile and wood processing companies. Batočina has 1,900 unemployed residents (12% of the local workforce). Of this total, some 65% have never been employed before and are seeking first time employment. With adequate training and application of new technologies and standards, unemployed persons could easily find a job. Some 85% of Batočina’s total number of unemployed citizens is between the ages of 18 and 40.

tal of four industrial zones, which are located just below the M-11 regional road (currently undergoing extension to add one more lane).

Investors can invest in production capacities that are in line with the industrial zone’s purpose. The Brzan Industrial Zone covers an area of 17 hectares and all ownership issues have been regulated. Aside from a strategically favourable position, the zone has a water supply system and a gas pipeline. A gas regulation station need only be built to complete the zone’s infrastructure.

One acre of land is provided free of charge for each new employee hired

CONTACT ALEKSANDAR JOVANOVIĆ, deputy municipal president Kralja Petra I 37, 34227 Batočina Tel: +381(0) 34 841 208 Fax: +381(0) 34 842 314 Email: so_batocina@microsky.net Website: www.sobatocina.org.rs Languages: Serbian & English

INDUSTRIAL ZONE The municipal spatial plan envisages a to12 / The Investors Guide - Serbia 2009/2010

INCENTIVES Investors will be offered to lease a location to build production facilities free of charge for a period of 99 years. Investor are also exempt from paying municipal fees, the land development fee, the fee to change the site’s purpose, land utilisation fee and certain local utility fees for a period of between five and ten years, depending on the type of facility to be built and the number of workers an investor will hire. The municipality aims to provide all relevant logistics under its jurisdiction.

PERMITS AND DEADLINES Municipal authorities will issue a building permit within 24 hours, while all other approvals will be issued once an investor provides relevant permits from state authorities. Any contracts that the municipality concludes directly with investors will be considered as greenfield investments, with a possibility of making brownfield investments too. An investor will be assigned as many acres of land as workers hired (one new employee = one acre). The precondition of this incentive is that at least 80% of new employees reside within the Municipality of Batočina.

BELA PALANKA

ENVIRONMENTALLY - FRIENDLY ZONE Agriculture comprises around 44% of the municipality’s GDP, while industry accounts for 32% and other branches close to 24% he Municipality of Bela Palanka is situated in southeast Serbia’s Pirot County. The municipality covers an area of 517 square kilometres and is located between Suva Planina (Dry Mountain) to the southwest and Svrljiške Planine (Svrljig Mountains) to the northeast. The Nišava is the major river running through the municipality. There are also shorter, water abundant rivers like Vrelska / Belopalanačka and Vrelska / Krupačka.

The municipality has two major springs – the Belopalanačko Spring and Modro Oko (which is suitable for swimming). These are the biggest springs in eastern Serbia. There are also three thermo-mineral springs: Belopalanačka Banjica, Krupačka Banjica and Penjsko spring in the Mokransko Abyss. Bela Palanka is located on the Niš – Bulgarian border infrastructure corridor and is 45 kilometres from Niš and 28 kilometres from Pirot. The road network is fairly widespread and links Bela Palanka to a total of 44 villages in the municipality. According to the 2002 census, the municipality has 14,381 inhabitants, with 8,429 of working capacity and 2,489 currently classed as unemployed.

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riculture and create more seasonal and permanent jobs. Companies like DP Budućnost, GP Vrelo, DP Ukras, DP Ponišavlje, DP Femid and DP Prvi maj, which used to employ over 1,500 workers have subsequently been privatised, are not doing as well as expected. Most of these companies have seen the privatisation process annulled and bankruptcy declared. The average salary in the municipality is below the state average and in the first quarter of 2009 it stood at 12,080 dinars a month.

ALEKSANDAR ZIVKOVIC, PRESIDENT OF THE MUNICIPALITY OF BELA PALANKA: “The deadline for issuing permits and relevant documentation is 30 days”

INDUSTRIAL ZONE The Municipality of Bela Palanka doesn’t have an industrial zone, but it did take part in a competition launched by the Office for Underdeveloped Municipalities and was granted funds to write documentation for a future industrial zone.

Agriculture is the leading economic branch

ECONOMY Agriculture is the municipality’s leading economic branch, comprising around 44% of the municipality’s GDP, while industry accounts for 32% and other branches close to 24%. Agricultural production is mostly aimed at producing organic food (in accordance with stringent EU regulations), which has both the geographical indication and trademark. Moreover, the food processing capacity that the municipality is currently lacking could contribute to the further development of ag-

INVESTMENT POTENTIAL The municipality has ore deposits suitable for producing specialised construction materials. It also has a spring called Banjica, which is located in Bela Palanka itself and offers great potential to establish a water factory. There is also potential to utilise renewable energy sources (wind, hydro-electric power plants and oil shale). The main advantages, as outlined in analyses of the municipality’s development and potentials, are the people, the expertise they possess, environmentallyfriendly area, old crafts, small enterprises, multiethnicity, archaeological sites, waterways, medicinal herbs, pastures and a good microclimate.

The deadline for issuing permits and relevant documentation is 30 days.

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CONTACT SONJA ĐORĐEVIĆ 28, Karađorđeva, 18310 Bela Palanka Tel: +381 (0) 18 855 023 Fax: +381 (0) 18 855 188 Mob: +381 (0) 62 255 759 nacelnik.finansija@belapalanka.org.rs Website: www.belapalanka.org.rs Languages: Serbian & English

BLACE

NO STATE OWNERSHIP

he Municipality of Blace covers 306km2 in the Toplica Valley on the eastern slopes of Mount Kopaonik and the southern slopes of Mount Jastrebac. According to the 2002 census, the municipality is home to 13,789 residents, with 5,465 in the town of Blace and 8,294 in the surrounding hamlets. Compared to the 1991 census, the population has contracted by 1,390. Blace is probably among the record holders when it comes to the ratio of refugees to long term residents: 1:3, with about 4,000 refugees to almost 14,000 residents! Although it is on the fringes of the country’s main transport corridors, Blace lies at the heart of the local and regional transport route, sitting on the crossroads of Kosovo, Kopaonik, Kruse vac and Prokuplje, which offers a good transit position.

The minor rivers of Blatašnica and Barbatovača run through the municipality, while a watery treasure is represented by the Black Lake, which covers and area of around 12 hectares and is powered by the underground currents of the Blatašnica.

The primary economic activity in the area is agriculture and Blace is well known for the pro-

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CONTACT MAYOR NEBOJŠA MILOSAVLJEVIĆ King Peter I 4, 18420 Blace Tel: +381 (0) 27 371 110 Fax: +381 (0) 27 371 138 Email: coblace@ptt.rs www.blace.org.rs Languages: Serbian & English

BOGATIĆ

duction and processing of agricultural products.

Industrial production is not developed, though there is the Fruto factory for processing and producing fruits, metal company 5 December and textiles company TiB. Blace is proud of its private enterprise and local businessman who maintain the high quality and quantity of business operations. The entrepreneurial spirit of businessmen in Blace and the objective environment for doing business are helping to provide a solid base for more successful performances in the coming period. The Municipality of Blace is also seeking to become one of the rare Serbian municipalities that are practically free of state-owned companies, with the majority of local state-owned companies having been privatised in the past four years. The most important upcoming privatisations in the municipality are expected to include the sale of textile company TiB (100% state capital), as well as the few outstanding companies.

Well-known dairy Blacini is also expected to recommence work in 2009, following its complete reconstruction.

WORK ZONE READY Exceptionally low construction land fees he Municipality of Bogatić covers an area of 384 square kilometres. It has developed agricultural production, cattle breeding and vegetable cultivation. The municipality has an industrial zone in the area of Dublje. The land here is state-owned, with the municipality being the beneficiary. The area is in the vicinity of local roads and is around five kilometres from the centre of Bogatić, 15 kilometres from the ŠabacLoznica regional road, 25 kilometres from the motorway and around 90 kilometres from Belgrade airport. The zone has a so-called work area, which is also a demonstration centre for the exploitation of geo-thermal waters. This means that any activity relating to the utilisation of geo-thermal

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CONTACT SLAVKO VLADIMIROVIĆ M. Vitomirovića 1, 15350 Bogatić – municipal administration, Urban Planning Department Tel: +381 (0) 15 786 126 Fax: +381 (0) 15 786 174 opstinabogatic@nadlanu.com www.bogatic.rs

energy for commercial purposes can be carried out here. The remaining section is dedicated to sports and recreational activities. All technical capacities in the work zone will be completed by the end of this year, so potential investors can start applying for relevant permits. According to Radenko Petrić, municipal president, the municipal authorities offer exceptionally low construction land fees and a location that possesses complete utility infrastructure.

Bearing in mind that the urban planning act is regulated in detail, a would-be investor can obtain construction permits within legally defined deadlines, providing they have first applied for an excerpt from the urban planning act.

Investors can obtain construction permits within legally defined deadlines

14 / The Investors Guide - Serbia 2009/2010

BOJNIK

LOANS FOR INVESTORS Municipal authorities issue building permits within eight to 15 days he Municipality of Bojnik is located in southeast Serbia’s Jablanički County. It covers an area of 26 square kilometres and has close to 15,000 inhabitants.

Bojnik is 23 kilometres from Leskovac, while the Leskovac-Skopje regional road runs through the municipality. Bojnik is 45 kilometres from Niš (via Donji Brestovac, which is 20 km away) and the municipality is linked to the E-75 (Corridor 10) international motorway. The advantages offered by the Municipality of Bojnik include fertile arable land, water resources, preserved natural potential suitable for the development of tourism and a healthy environment.

When it comes to industrial branches, there are two cold storage plants and construction materials production.

Bojnik has an industrial zone that is partially equipped with infrastructure. Since

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Bojnik is considered one of the 40 most underdeveloped municipalities in Serbia, potential investors are entitled to apply for loans from the Ministry of Economy and Regional Development under very favourable conditions.

“The industrial branches that are most suitable for investments are food processing, exploitation of mineral raw materials (decorative stone and its processing), tourist capacities, and water resources,” says Nebojša Nenadović, President of the Bojnik Municipality.

Providing that an investor has obtained all required approvals, municipal authorities will issue a building permit within eight to 15 days. The most important investors in the municipality are cold storage plants in Bojnik, SBB Produkt – Beograd and cold storage plants Jugovoće in Donji Konjuvac.

CONTACT DIMITRIJE DIMITRIJEVIĆ, assistant to the municipal president

Trg Slobode 1, 16205 Bojnik Tel: +381 (0) 16 821 150, extension 112 Fax: +381 (0) 16 821 174 Mob: +381 (0) 63 116 1807 Email: predsednik@bojnik.org.rs

ORDER NOW! For only 300 RSD per copy (including P & P)

SERBIAN INVESTORS GUIDE 2009/2010 This unique publication contains information on investment opportunities in all hundred municipalities of Central Serbia. Following publication of the successful annual Vojvodina Investors Guide (distributed in May 2009), alliance international media is issuing the 2nd edition of this unique series offering useful information from Serbian municipalities, including all opportunities, terms and conditions for successful investments.

The Guide also includes all contacts, statements, maps and incentives – based on information directly provided by municipal officials.

This publication is supported by the Standing Conference of Serbian Towns and Municipalities, SIEPA and USAID

PLEASE ORDER YOUR COPY ON: Tel. +381 11 308 99 88; Fax. +381 11 308 99 77 email: office@cma.rs

Serbia 2009/2010 - The Investors Guide / 15

BOLJEVAC

ACCOMMODATING INVESTORS Important water resources located on the territory of the Municipality of Boljevac offer vast possibilities for investments he Municipality of Boljevac is located in eastern Serbia, in the valley of the Crni Timok River. Boljevac municipality covers an area of 827 square kilometres. Some 46% of the municipality’s territory is covered by agricultural land, while 51% is forestland. The M5 regional road (Paraćin – Zaječar – Vrška Čuka) runs through the municipality and connects the municipality to Corridor 10 and the Bulgarian border. There are also regional roads BoljevacSokobanja, BoljevacZaječar, BoljevacKnjaževac and Boljevac-Zlot-Bor. The most important natural resources are forests and waterways, while there is a possibility of installing an irrigation system. The climate and land are perfect for developing agricultural production (cattle breeding, growing medicinal herbs, fruit and vegetable cultivation). There are also mineral raw materials, such as dolomite, clay and bentonite (decorative stone), while there is a possibility of developing regular and eco-tourism.

T DR NEBOJŠA MARJANOVIĆ, PRESIDENT OF THE MUNICIPALITY OF BOLJEVAC: “We recommend investors to set up production in existing facilities.”

nicipal authorities are currently working on providing adequate infrastructure. All ownership and legal issues have been settled and electricity lines are being erected. One company is already using the industrial zone for the production of industrial charcoal. The municipality has set up a business incubator centre dedicated to developing small and medium-sized enterprises, which currently houses 10 units.

POTENTIAL Aside from natural resources (both thermal and spring water sources, natural decorative stone, agricultural capacities), which are available to investors to use, the Boljevac municipal assembly has decided to exempt investors from paying municipal fees – on the basis of the number of workers they employ. Furthermore, the municipality has several other locations to offer in addition to the aforementioned industrial zones, covering an area of 2.5 hectares. We recommend investments in production activities in existing facilities, such as the trout fish farm in Jablanica, sheep and goat farm in Podgorac, the bullock farm in Sumrakovac, etc.

Industrial zones are being set up on 50ha of land

CONTACT SLAĐAN ĐIMIŠ 24, Kralja Aleksandra, 19370 Boljevac Tel: +381 (0) 30 63 412; 63 413 Fax: +381 (0) 30 63 620 Email: privreda@opstinaboljevac.rs Website: www.boljevac.org.rs Languages: Serbian & English

ECONOMY The municipality’s major companies are IMT ‘Agromehanika’ ZZ ‘Sumrakovac’, OD ‘7.juli’, ‘Podgora Dairy’, ‘Petrović Dairy’, PD ‘Sport’, RMU ‘Bogovina’ and PP ’Unimer’.

Important water resources located on the territory of the Municipality of Boljevac offer vast possibilities for investing. The municipality boasts springs with exceptionally high quality drinking water. There is also an underused thermal spring in the village of Krivi Vir, which could be an excellent location for a spa.

INDUSTRIAL ZONE The municipality has two industrial zones that cover an area of close to 50 hectares and the mu16 / The Investors Guide - Serbia 2009/2010

DEADLINES AND PERMITS In line with its jurisdiction and legal authority, the municipality helps potential investors to secure all required documentation within the shortest possible timeframe.

CURRENT INVESTORS Millennium Group, which owns the former PD Sport and a section of the children’s resort in Rtanj, Euroaqua (the water factory Aqua Ultima), East Point (factory for producing heating pellets), BTR – EXP (production of industrial charcoal), Unimer from Boljevac, companies that produce decorative stone and dolomite, etc.

BOR

PROJECTING TO THE FUTURE he City and Municipality of Bor consists of a central urban settlement and 12 satellite villages, with a total of 55,817 inhabitants, according to the last census of 2002, and covering an area of 856km2 in the Borsko County. The diverse local economy consists of 482 companies and about 850 micro firms, mostly operating in trade, processing or services. Bor’s economic structure shows the processing industry (27%) and trade (25%) as the top sectors, with agriculture (14%), transport and communications (14%) and other activities (20%) behind.

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FOUNDATIONS Regardless of the apparent diversity, Bor’s economic activities are dominated by the metal and mining industry, with the RTB Bor mining basin contributing massively to the overall GDP and employeeing almost 25% of the municipality’s active workforce. The local privatisation process has included all social enterprises and large production facilities. To date, eight companies have been sold (trade companies Tehnopromet, Centroistok and trade house Borpromet, project office Borinžinjering, a polyester factory and meat processing factory Polet, construction compa-

ny Sloga and printing house Copper). Some eleven companies in the municipality are still undergoing the privatisation process. Bor’s future economic strategy is based on the development of agricultural production, with the organisation of production clusters; the development of SMEs and the promotion and strengthening of the tourism sector.

Besides RTB Bor Holding, important enterprises in the municipality include equipment and parts factory Bor Ltd. Eurofil Ltd. (polyester film factory), abatoire Polet, alluminium & PVC producers and fitters Albo Ltd. The Municipality of Bor is now implementing intensive measures to create conditions for the development of industry and business, such as the establishment of industrial zones and the creation of favourable conditions for the development of private SMEs; organising and pooling individual agricultural producers and identifying natural values and cultural and historic offers, as well as better organising the tourist accommodation capacity.

Bor is among Serbia’s most developed local economies: a dominant industry within the structure of the municipality, highly developed infrastructure and other factors all aid Bor’s future development.

RICH ORE DEPOSITS

CONTACT MAYOR SRĐAN MARJANOVIĆ Can Pijade 3, 19210 Bor Tel: +381 (0) 30 423 980 Fax: +381 (0) 30 427 310 Email: sobor@ptt.rs www.opstinabor.org.yu Languages: Serbian & English

BOSILEGRAD

Investors can obtain required permits in the shortest possible legally-defined deadline he Municipality of Bosilegrad is situated in the very southeast of Serbia, some 400 kilometres from Belgrade and 132 kilometres from Sofia. The municipality is connected to neighbouring regions via the Bosilegrad – Vlasina regional road and further by the road leading to Vladičin Han, which is some 70 kilometres away and is bisected by a railway line.

The Ribarci border crossing (Serbia-Bulgaria) is located in the municipality, 10 kilometres from the town of Bosilegrad. The municipal authorities are also currently working on restoring the functionality of the Kriva Palanka border crossing with Macedonia. In terms of natural resources, the municipality has substantial ore deposits, while a total of 28% of Bosilegrad’s territory is forestland. There are also several potential tourist locations, including the Lisinsko Lake, several hamlets, ethnocentres, health and spa locations and hunting and fishing grounds.

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The municipality is currently able to offer potential investors land in the Rasadnik residential/business zone, which stretches across 6,640 square metres and is owned by the municipality. This zone boasts adequate infrastructure. There is also a former fruit and vegetable drying facility, which used to comprise part of the Zdravlje pharmaceutical company from Leskovac and is now owned by the municipality, and also a former sock factory and electronic industry facility. These facilities all offer relevant infrastructure.

“Investors can obtain required permits in the shortest possible legally-defined deadline,” says municipal president Vladimir Zaharijev.

Companies that have invested in the municipality to date are Bosil metal (together with Russian partners) and Victoria Group.

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CONTACT ŽIVKO STOILKOV, 17540 Bosilegrad Tel: +381 (0) 17 877 006 Fax: +381 (0) 17 877 167 Mob: +381 (0) 63 461 945 Email: z.stoilkov@gmail.com Website: www.bosilegrad.rs Languages: Serbian, Bulgarian, English & Russian

INTERVIEW VESNA PERIĆ, DIRECTOR OF THE SERBIAN INVESTMENT AND EXPORT PROMOTION AGENCY (SIEPA)

RECEPTIVE TO INVESTMENT

“Our job was made much easier when FIAT invested in Kragujevac. Thanks to this company’s arrival in Serbia, we have received a significant number of inquiries - whether that is from FIAT’s suppliers or other auto industry suppliers that will follow FIAT.”

erbia needs investments, both foreign and domestic, and in order to get the lowdown on what the state is doing to attract more investments to the country and the extent to which local authorities are engaged in attracting investments to their municipalities or towns, we speak to SIEPA director, Vesna Perić.

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How appealing to investors are municipalities in Serbia, with the exception of the Belgrade and Vojvodina municipalities?

I think these municipalities are extremely interesting, since most of the investments so far have been made in Vojvodina and Belgrade. Municipalities located to the south of Belgrade are becoming increasingly appealing and more capable of absorbing foreign investments. SIEPA has visited all of these municipalities and set up various workshops, together with municipal authorities, at which they learned how to communicate with investors. The unemployment rate is particularly high in southern Serbia, which is why we are trying to bring so-called employment intensive industries and investments there to create jobs for as many people as possible.

Following construction of the motorway, all municipalities that are located in close proximity to it will become interesting to potential investors, especially those with time-sensitive production. This is why Serbia needs to work on its infrastructure. I would especially like to point out the City of Kragujevac. Our job was made much easier when FIAT invested in Kragujevac. Thanks to this company’s arrival in Serbia, we have received a significant

number of inquiries - whether that is from FIAT’s suppliers or other auto industry suppliers that will follow FIAT. Despite the global economic crisis that engulfed the auto-industry as well, we recently received a dozen inquiries from FIAT and other similar companies. In mid-July we signed a contract with a company called Leoni. We have given them certain incentives which will result in Leoni hiring at least 1,300 workers in Prokuplje. Slovenian company, Grah Automotive, is expanding and constructing a factory in Serbia. Also, an investment has been made by Kronošpan in Lapovo. I can say that the number of investments made in a certain municipality directly correlates to the way in which the municipal-

SIEPA takes part in fairs dedicated to finding new investments ity reacts to the investor, i.e. to what it can offer, how fast it issues relevant permits, what the infrastructure is like, etc.

What should local governments do to attract more investments to their areas?

It is an imperative for each municipality to have a contact person for investors to work with the Serbian Investment and Export Promotion Agency. We are currently collaborating with close to 50 per cent of municipalities and in certain cases that collaboration is better than in others. However, what often happens is that once the local government

18 / The Investors Guide - Serbia 2009/2010

changes, the people that we train leave with them and we need to establish co-operation all over again. This is one of the problems we face. SIEPA has a database of all investment locations in Serbia and, in conjunction with municipalities, we get data about the land that the municipality has at its disposal, the infrastructure it boasts and so on. Often disused facilities are properly equipped, which makes the investor’s job easier – as they can launch production much faster. The next problem is deadlines for obtaining relevant permits. According to the Act which regulates domestic and foreign investments, as well as the creation of new jobs, funds are appropriated in four instalments. The first instalment is made once the land is bought, the second when the building permit is issued, the third when an investor gets an operating permit and the fourth instalment is made when the investor hires the number of people he initially promised. What often happens is that somebody rents a hall, hires the workers but cannot get any funds from us, since the hall being used has no building or operating permit. This is a big problem, both for us and investors.

Do you find that municipalities’ insufficient capacities represent the biggest obstacle in issuing these permits or is it that most municipalities have a quite flippant attitude towards the issue?

Capacities are the problem and, as you put it so well, flippancy is an issue too. Certain municipalities just don’t have a clue what a foreign investor considers important. We recently attended a conference in Turkey, where we heard of the experiences that other

countries have had in this area. For example, if an investor doesn’t receive a permit from a ministry or local government within three months, it is considered that an investor has received his permit and can proceed accordingly. Such principle should be applied in Serbia too, since an average investor in our country is waiting for something that should be done straight away. Extending the deadline for issuing permits makes Serbia quite uncompetitive. Procedures need to be faster and local governments and municipalities have to be more accommodating towards foreign investors in order to help them as much as they can, in line with the regulations, and to fulfil the real needs that an investor has.

SIEPA is willing to provide assistance to local authorities, providing they do need help from the state level, and to pay due attention to the investor. We really need foreign investments and domestic investors need foreigners to help sell their goods.

Which municipalities could you single out as being particularly active in attracting investors and which municipalities are the most appealing to investors?

The municipalities of Pirot, Vranje, Lapovo, Kragujevac, Leskovac and Vlasotinci are good examples of proactive municipalities. The good thing is that municipalities are finally recognising what they need to do and are setting up offices for local economic development.

How has the economic crisis affected the number of investments made in Serbia?

It certainly did have an effect. At the beginning of the year, when we started to notice the crisis, investor interest fell. However, unlike elsewhere in the world, there were no huge layoffs in our economy. I think that the measures devised by the Ministry of Economy really contributed to companies being able to maintain the number of employees and obtain essential bank loans. We have managed to keep investors interested and maintained communication with them in order to preserve interest. We noticed the number of inquiries growing in April and May. We are currently negotiating about investments worth close to €1.5 billion. The investment made by Kronošpan in Lapovo is of exceptional importance, as it is the first of three planned factories.

What does SIEPA do when it comes to identifying potential new investments?

SIEPA has been taking part in fairs and

conferences dedicated to finding new investments. We are currently looking for fairs that offer 10 to 15 meetings with genuine investors for the fee you pay. We also have very good co-operation with our embassies around the world, as they are sometimes the first stop for a potential investor. We have ambitious plans for next year, with new activities and new markets to contact, and we plan to take municipal representatives to the aforementioned fairs with us. We have done that in the past too. Sometimes we took five to ten of them with us and that is good, as it provides municipalities with an opportunity to see what we do, who we see and what questions potential investors pose. Once they come back home, they can implement these new findings.

What are Serbia’s advantages over other regional countries?

The first is our God-given geographical position, which is such that you can quickly reach a multitude of markets from Serbia.

There are free trade agreements with Russia, Belarus and Turkey, as well as the CEFTA region. So, if you choose to produce in Serbia you can export to these markets customfree. All regional countries give incentives to foreign investors and so do we. Investors are keen on being given subsidies and if you don’t do so they will lose interest. Unfortunately, we don’t receive EU funds like the Czech Republic, Slovakia, Romania or

Serbia 2009/2010 - The Investors Guide / 19

Bulgaria, but we can provide certain incentives. The money that we give comes from the budget and we think that is a good thing, despite certain economic experts saying that it is economically unjustifiable. First of all, if every single country in the region provides incentives, you have to do likewise. On the other hand, every single cent that we give towards the creation of new jobs comes back to us in the matter of a year. And, of course, there is our workforce that we are especially proud of. Our engineers and highly educated workers are reputable and much cheaper.

What are the most frequent questions that investors ask when you present Serbia’s investment potentials?

The first question is: what can you offer us; what can Serbia offer, since every investor has at least three or four other locations in mind as production locations. Our advantage lies in Serbia having a good tax system. There are various tax incentives and we have the National Employment Service, which also offers subsidies for each new hired worker.

They also ask how long it will take for them to get their production off the ground; how much the state will help them; how much the local government and the state itself is tuned into their needs, if we abide by international agreements that we have signed (like CEFTA)... Of course, they are mindful of the political situation and stability.

BUJANOVAC

PLANNING FOR THE FUTURE he Town and Municipality of Bujanovac is a natural hub on the road from Belgrade (360 kilometres to the north) and Skopje, and on to Greece, to the south. The town is the administrative, economic, cultural, health and academic centre of the municipality, which belongs to the Pčinj County.

Bujanovac is situated 400m/asl and has just fewer than 45,000 residents in the municipality. According to the 2002 census, 12,011 live in the town itself, while 31,291 reside in rural settlements.

T ŠAIM KAMBERI, MUNICIPAL PRESIDENT: :All necessary documents would be available between seven and 30 days from the date of application.”

TRANSPORT HUB Bujanovac town is located directly on Corridor 10 road and rail routes, with these crucial pan-European arteries crossing a 20km stretch of the municipality and linking the local economy to Belgrade and beyond in one direction, and Skopje, Thessalonica, Athens and beyond in the other. There are three international airports within easy rich of Bujanovac: Niš (136 km), Skopje (70 km) and Priština (105km), while the border with neighbouring R.Macedonia is only 23 kilometres from Bujanovac.

ECONOMY With a rich and diverse local business structure, Bujanovac has some 795 registered companies and 574 retail outlets. These businesses represent 35 different industrial categories - from production of agricultural products (health food), to mining, the food industry, industrial of nonferrous metals and building materials production, metal processing, furniture production, chemicals, leather and footwear, textiles, plastics, wood processing, tobacco industry, travel agents, healthcare and other tertiary activities. The Strategic Plan of the Municipality of Bujanovac, 2007 to 2017, was adopted at a session of the Municipal Assembly in 2007. The main aim of the plan is to define the further development of infrastructure in order to prevent further economic development slowdowns and environmental protection lapses and, thus, improve the quality of life. Some 7,500 young people are being educated at 12 primary and secondary schools across Bujanovac. The municipalities two senior schools educated around a thou-

sands maturing youngsters each.

FUTURE POTENTIAL The Municipality of Bujanovac offers potential investors land in the village of Veliki Trnovac, Plot # 4, which has a total area of just under two hectares. The site is a mere six kilometres from the centre of Bujanovac. It has water and electricity supply, while the site’s sewer network is located 200 metres from the plot. The road in Veliki Trnovac is a kilometre from the plot and is set to be paved.

Investor incentives • 10-year tax exemption for large investments (~€7.5 million; >100 employees); • 5-year tax exemption for concessions; • A 20 to 80% reduction in the capital gains tax on the value of investments in fixed assets; • Exemption from customs duty on the import of raw materials, unfinished products, components and equipment; • FTA access to the Russian market (150 million people), as Serbia is the only country in the region to have concluded a free trade agreement with Russia, and FTA access to the Turkish Market – MP addition, please check.

• Preferential/tax free access to the southeast European market (CEFTA; 30 million people) • Trade with the U.S. and EU under preferential terms and conditions

The Municipality of Bujanovac is home to the oldest spa in the Balkans, Banja Vrelo

CONTACT FAZILA AZEMOVIĆ, Head of the Bujanovac Municipal Office for local economic development Petrovic Karađorđa 115, Bujanovac 17520 Tel: +381 (0) 17 654 517 Fax: +381 (0) 17 654 517 Mob: +381 (0) 62 410 330 Email: kler-bujanovac@hotmail.com www.bujanovacinfo.org Languages: Serbian, Albanian & English

20 / The Investors Guide - Serbia 2009/2010

INDUSTRIAL ZONE Bujanovac municipality has an existing industrial zone that is operating at full capacity, while there is also a master plan for a new zone to be completed by 2020.

This will be a industrial zone to house businesses in trade and commercial services, situated along the town’s main road, M25-3, an important local artery. Enterprises to be based at the new industrial zone will include industrial producers, manufacturers and craft production, as well as storage, warehousing and production in the business zone. Commercial content will include trade and services, catering and other business and commercial facilities.

BRUS

TOURISM:TOP PRIORITY he Municipality of Brus lies 234 kilometres from the Serbian capital of Belgrade in southeast Serbia. The municipality is 80 kilometres from Niš and 50 kilometres from Kruševac. Brus is situated along the Kruševac-Kopaonik regional road and is some 60 kilometres from PanEuropean Corridor 10. The area’s main economic branches are tourism and agriculture, with the Kopaonik Mountains resort covering 70% of the municipality’s territory. The companies that are active in the municipality of Brus are Foodland, Matejići, Voćar, AS Group, Ju-komerc, Vino Župa, FUD 14.oktobar, as well as a quite successful privately-owned company, VIS Srebrnac produkt.

There are also companies like Pompea Serbia, Javorac, Braća Predolac concrete products’ factory, plastic products’ manufacturer Milan Blagojević and Dobrodole KOP abattoir. The municipality boasts the Jug (South) Industrial Zone, which houses six factories employing

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close to 1,500 workers. The zone has adequate infrastructure and utility facilities. The Municipality of Brus offers potential investors all available capacities for obtaining relevant documentation. Also, depending on how big an investment is, The municipality will also – depending on the scale of an investment - accommodate investors by offering favourable payment conditions, such as payments in instalments, etc. The municipal authorities are keen to assist potential investors obtain the required permits in the most efficient manner and the shortest possible time. Belgian company Vision Europe is the leading investor in Brus, with an investment worth €150 million. There are also companies like Leemans Marie Jean (also from Belgium), which owns two hotels in Brzeć, and Greek company Otway, which is also based in Brzeć.

In terms of domestic companies, the biggest investors are Gemax, WEG, Goran Vujović, Dejzor and others.

SEEKING INVESTMENTS he Municipality of Crna Trava occupies an area of 312km2 in Serbia’s Jablanički County and comprises 25 settlements with a total population of 2569 inhabitants. A sufferer of mass outward migration, just 20 years ago the municipality had a population of 20,000.

Crna Trava borders the municipalities of Vlasotince to the north/northwest, Leskovac to the west, Surdulica to the south/southeast and Babušnica to the northeast. Crna Trava borders EU member Bulgaria to the east.

Crna Trava is one of the poorest municipalities in Serbia. There is almost no business or company operating successfully, which ensures that outward migration is still an issue.

The average age in the municipality is 60, while once famous master builders from the municipality are continuing to relocate to larger cities. The most famous company originat-

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ing from the municipality is construction company Crnotravac, which now has its head office in Belgrade and not Crna Trava.

Despite the assistance Crna Trava has been afforded by the international community and the Government of Serbia, it was insufficient to raise the municipality to the level of the developed municipalities of Serbia.

UNSPOILT NATURE Crna Trava has two primary resources: people and unspoilt nature. Over the years, the municipality has lost the people, but the natural resources remain and have flourished. The area’s acidic but fertile soil, at an altitude of 1,380m/ asl, was identified as an optimum area for the cultivation of blueberries. As such, more than 20 hectares of blueberries have now been planted in the Crna Trava soil, providing both quick profit and long term revenue.

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CONTACT ZORAN ŠLJIVIĆ, President of the Municipality of Brus Kralja Petra I/120, 37220 Brus Tel: +381 (0) 37 826 840 Fax: +381 (0) 37 826 966 Mob: +381 (0) 65 8100 500 predopstinebrus@nadlanu.com www.opstinabrus.org.yu; www.brus.co.yu Language: Serbian & English

CRNA TRAVA

CONTACT SLAVOLJUB BLAGOJEVIĆ, President of the Municipality 16215 Crna Trava Tel: +381 (0) 16 811 118; 811 182 Fax: +381 (0) 16 811 118 Languages: Serbian & English

ČAČAK

READY FOR ALL INVESTMENTS

jubic Field 1 covers 330,000m2, with around 50% still available, and also 100% privately owned and equipped with the main network infrastructure. However, infrastructure requires further extension. The initial price is €40-50 per square metre.

Ljubic field 2 is situated on 1,100,000m2 and about 50% is still available. It is 95% private and 5% state owned. Equipped with the main network infrastructure and require further extension, the asking price for land lease ranges from €40-50 per square metre. The main industrial zone is only one kilometre from the city centre. It passes through the industrial track and is directly connected to the Belgrade – Užice highway, with fully equipped communal infrastructure.

Other available sites include the city fair on 65,000m2, with possible investments in commercial and exhibition facilities and possible combined construction (residential, commercial and content); Milikić Land, private ownership of 50,000m2. Avenue II, privately owned and 35.000m2 of Simovic - Prislonica in private ownership to 20,000 m2. All three sites are designated for commercial facilities.

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VELIMIR STANOJEVIĆ, MAYOR OF ČAČAK: “Our message for investors: let’s grow together.”

The city boasts numerous educational facilities that train its highly skilled workforce. These include the Faculty of Agricultural, the Čačak Technical College and high schools offering technical vocational studies. Čačak is also proud of its Institute for Fruit and Grapes, which is a well known research institute in the whole region.

INCENTIVES Čačak provides potential investors with numerous incentives: there are budgetary incentives designed to encourage job creation, an urban Info Centre helps to strengthen and support the SME sector; adopted planning documents include he plan for the strategic economic development of the City of Čačak, while the City runs a local economic development office and there is a Regional Chamber of Commerce PJ Čačak.

The City of Čačak provides specific incentives relating to reduced land development fees, as follows: 25% reduction if the investor employs at least 50 workers, 50% if it employs at least 100 workers and 100% if it employs at least 200 workers.

Building permits are obtained in a month and a half

CONTACT VELIMIR MITROVIĆ, Assistant Mayor Economic development and environmental protection Župana Stracimira 2, 32000 Čačak Tel: +381 (0) 32 309 030 Fax: +381 (0) 32 309 044 Mob: +381 (0) 64 825 57 54 Email: manager@cacak.org.rs www.cacak.org.rs Languages: Serbian, English, Italian, German & Russian

PUBLIC INVESTORS The City of Čačak is a very good investment location generally. Located at the intersection of roads to Sarajevo, Podgorica, Priština and Skopje, it is able to cover a market of 16 million consumers. Čačak also has a developed tourist information system, a rich cultural heritage and very diverse tourist potential, as well as opportunities for transit, health, cultural (archaeological), hunting and sports/recreational tourism.

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PERMITS AND DEADLINES Obtaining a building permit requires a month and a half from the date of application.

INVESTMENTS TO DATE Česten, Bulgaria; Kavim Public Transportation, Israel; Roads AD Čačak, Austria; CDE F DOO Belgrade Business Jed. Čačak, France; Pantomarket cattleman and Pantomarket - Žitopromet, Montenegro; Mercator, Slovenia; Foamline, Russia; PIMA, Serbia; Scholz, Austria; Tempo, Serbia.

TOURISM FIRST

ČAJETINA

Potential investors are offered incentives, such as reduced utility taxes and the expedited issuing of relevant permits he Municipality of Čajetina is situated in southwest Serbia and covers an area of 647 square kilometres. The municipality has a favourable geographical position and is traversed by regional roads leading to Montenegro and Bosnia & Herzegovina. The Belgrade – Bar railway also passes through the municipality, while the Ponikve airport is nearby. In terms of tourism, Zlatibor Mountain, which is located within the municipality, is the most popular tourist resort. Accordingly, the municipality itself has exceptional potential for mountain tourism and agricultural production of organic food. According to the 2002 census, the municipality has 15,509 inhabitants, 3,529 of whom are currently employment. National Unemployment Service records show that a total of 643 residents of Čajetina are unemployed. The municipality’s revenue is above average for Zlatibor County, while tourism, basic agricultural production and the processing industry (textile, plastics, metal and wood) generate the lion’s share of the municipality’s revenue.

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many sports fields. Agricultural land makes up some 56% of the municipality’s territory.

The most developed agricultural branches are cattle breeding and fruit cultivation.

INDUSTRIAL ZONE A portion of land was allocated for the development of an industrial zone some 20 years ago, while the land boasts adequate infrastructure and the municipality is set to complete the writing of a feasibility study for the Braneško Polje industrial zone. Several investors have already expressed interest in purchasing land within the zone.

INVESTMENT POTENTIAL

A portion of land has been allocated for the development of an industrial zone

ECONOMY Čajetina’s main economic branches are tourism, agriculture, textiles, metal and wood processing. Mount Zlatibor represents the tourist centre of the municipality. There is an open air museum called Staro Selo (Old Village) in Sirogojno, a waterfall in Gostilje, monasteries Uvac and Dubrava, a gallery on the Borova Glava and in Trnava, Tornik ski centre, the Obudovica ski slope, as well as

MILAN STAMATOVIC, PRESIDENT OF THE MUNICIPALITY OF ČAJETINA: “The municipality is ready to assist investors in every way possible and secure the best conditions for the implementation of an investment.”

The top, most profitable area for investment is in tourism, such as the building of tourist capacities and development of recreational activities, as well as in the processing industry, primarily meat and dairy production, which both have a long tradition in this area.

Potential investors are offered incentives, such as reduced utility taxes and the expedited issuing of relevant permits.

PERMITS AND DEADLINES The municipality is ready to assist investors in every way possible and secure the best conditions for the implementation of an investment, depending on the complexity of an investment and business activity, as well as the investor’s willingness to implement the project as soon as possible.

INVESTMENTS TO DATE Simex, Hemel, Alko Bank, Rašica, NIS Petrol, Putevi, Skijališta Srbije.

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CONTACT BILJANA BOŽENIĆ Kralja Aleksandra Prvog 28, 31 310 Cajetina Tel: +381 (0) 31 831 151 Fax: +381 (0) 31 831 447 www.cajetina.org.rs, cajetina@ptt.rs

ĆUPRIJA

TWO INDUSTRIAL ZONES

Investors hiring over 50 workers are exempt from paying the construction land development fee uprija is located at the very heart of the

ĆPomoravlje Region and is 150 kilome-

BORIVOJE KALABA: “The municipality is working on improving the telecommunications grid.”

tres from Belgrade. The town has 22,000 inhabitants and lies on main rail and road routes at the very mouth of the Ravanica and Velika Morava rivers at an altitude of 123 metres asl.

The municipality covers an area of 287 square kilometres and has close to 40,000 inhabitants in 17 towns and villages. Ćuprija is located near pan-European Corridor 10 motorway E-75, which linkst the municipality to Austria, Hungary, Greece, Bulgaria, the Middle East (via Turkey) and onto the Asian sub-continent. Ćuprija is also in the vicinity of the E-761 regional road (towards Bulgaria), while the Pojate crossroads is just 24 kilometres away, thus linking the municipality to Montenegro.

International railway lines Budapest – Thessaloniki and Budapest Sofia traverse the municipality, while Belgrade International Airport is just 160 kilometres away and the Niš International Airport is also not too far away.

the two industrial zones. There are a number of commercial banks in Ćuprija, while the road, gas and electricity infrastructure is developed and the municipality is working on improving the telecommunications grid.

Privately-owned companies account for the majority of agricultural activities. Total arable land in the municipality covers an area of 28,000 hectares, while the remainder is covered in orchards and vineyards. There are 20 registered cattle farms, with the biggest being PPD Dobričevo. The municipality also boasts several meat processing facilities, which represents a traditional industry of Ćuprija.

INDUSTRIAL ZONES

ECONOMY

T h e Municipality of Ćuprija has two industrial zones (1 and 2), though they currently lack adequate infrastructure.

Industrial zone 1 (Dobričevo – Batinac) stretches across 80 hectares. It is in close proximity to the E-75 motorway and is privately-owned.

Industrial Zone 2 (Zmič) covers 165 hectares and is part state-owned and part privatelyowned. Both zones are suitable for industrial production, trade, catering, arts and crafts and other service-based businesses.

The dominant economic branches in the municipality include wholesale and retail (46.5%), the processing industry (21.9%), transport, storage and communication (8.7%) and real estate (8%).

The municipality has fertile agricultural land and is suitable for cattle breeding. It also has significant forestry potential, suitable for setting up a transport / trade / industrial terminal, particularly in the vicinity of

The municipal authorities have adopted a detailed regulation plan for the Dobričevo – Batinac industrial zone, while the municipality has also decided to exempt any investor hiring over 50 workers from paying a construction land development fee.

The deadline for issuing relevant documents is 45 to 60 days.

The zones are suitable for industrial production, trade, catering, arts and crafts and other service-based businesses

CONTACT BORIVOJE KALABA, President of the Municipality of Ćuprija Tel: +381 (0) 35 470 248, ext. 102 Mob: +381 (0) 63 600 095 Email: info@cuprija.rs VLADIMIR ĐORĐEVIĆ, head of design and development Tel: +381 (0) 35 470 248, ext. 118 Mob: +381 (0) 63 10 65 804 Email: vlada.djordjevic@yahoo.com Ulica 13.oktobra 7, 35230 Ćuprija Website: www.cuprija.rs Languages: Serbian, English, French, German, Italian & Russian

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INCENTIVES

ĆIĆEVAC

INDUSTRIAL ZONE READY Municipal authorities will assign construction land free of charge, providing that certain prerequisites have been met he Municipality of Ćićevac lies in Central Serbia on the confluence of the South and West Morava rivers. It is surrounded by the Mojsinjske Mountains and two very important transport corridors – the Belgrade – Niš railway and the Belgrade-Niš Corridor 10 motorway – pass through the municipality. The Pojate – Kruševac regional road also runs through the town of Ćićevac. The municipality is 180 kilometres from Belgrade and 80 kilometres from Niš, with the dominant economic branches being wood processing, construction materials production, retail, catering, agriculture and transportation. The Pojate Industrial Zone (Location 1) covers an area of 2.18 hectares and is located directly beside pan-European Corridor 10. Location 2 stretches across 27 hectares of land and is in the vicinity of the E-75 mo-

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torway (Belgrade – Niš), the M-5 regional road (Pojate – Kruševac) and the future E-761 motorway (Pojate-Kruševac-Kraljevo). The industrial zone has adequate infrastructure (electricity, roads and regional gas pipeline). Municipal authorities will assign construction land free of charge, providing that certain prerequisites have been met (value of the investment; number of new jobs to be created). “Permits are issued within three days of the submission of relevant documentation,” says Zlatan Krkić, municipal president. The municipality’s most significant investors are Putevi-invest from Užice, Vojvoda Prijezda, Simpo-drvo, DU-KO, and Agro-mil.

The municipal authorities are currently talking to Austrian company Kelag about construction of mini hydro-electric power plants on the South and West Morava rivers in Stalać.

The industrial zone has adequate infrastructure

WORTHY INVESTMENT DESTINATION

CONTACT DRAGANA RADOSAVLJEVIĆ, head of the municipality president’s office Karađorđeva 106, 37210 Ćićevac Tel: +381 (0) 37 811 260, Fax: +381 (0) 37 811 260 Mob: +381 (0) 64 877 49 02 kabinetcicevac@gmail.com Website: www.cicevac.rs Languages: Serbian & English

DOLJEVAC

The biggest greenfield investment here to date was worth €10 mill he Municipality of Doljevac is located in southeast Serbia in the extreme north of the Leskovačka Valley. The municipality’s dominant economic branch is agriculture.

The Doljevac Industrial Zone is located along Corridor 10 and regional roads R-245 (leading to Prokuplje) and R-214 (Niš-Leskovac).

The zone is just a few hundred metres from the customs office in Doljevac and 20 kilometres from the Niš Airport. It boasts complete infrastructure. Here the average price of construction land ranges from €400 to €500 per hectare.

“The municipality has very low construction land fees and 50% lower tax rate. There are also exemptions from paying land fees for substantial investments creating a significant number of jobs in the municipality,” says mu-

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nicipal president Goran Ljubić Međarac.

It takes up to three days to issue permits, while the registration of building works can be carried out in two days’ time at the most – providing the investor submits documentation required by the Law on Construction and Urban Planning. In cases of major commercial construction endeavours requiring a defined urban planning project, the municipal authorities can expedite the work of the relevant commissions.

The biggest greenfield investment here to date was worth €10 million and was made by Forest Enterprises. Investors in Doljevac can also apply for favourable investment and employment loans offered by the Republic of Serbia’s Development Fund, the National Employment Service, the Ministry of Agriculture and other state authorities.

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CONTACT JOVICA PEŠIĆ, Kralja Aleksandra bb, 18255 Pukovac Tel: +381 (0) 18 810 054 Fax: +381 (0) 18 810 055 Mob: +381 (0) 63 10 68 254 Email: jocapesic@gmail.com Website: www.sodoljevac.co.rs Languages: Serbian & English

DESPOTOVAC

RECOMMENDING TOURISM INVESTMENTS he Municipality of Despotovac is located in eastern Serbia, alongside the Velika Morava River. The municipality is partly mountainous and hill land (Kukčajske Mountains), while its western area offers arable land suitable for agricultural production. The River Resava runs through the municipality. Despotovac municipality covers an area of 623 square kilometres and has 32,848 inhabitants living in 30 towns and villages.Despotovac is well connected to neighbouring municipalities, with roads covering a total distance of 199 kilometres – 161 kilometres of which are roads of the highest quality. The municipality is also in the vicinity of pan-European Transport Corridor 10. The town of Despotovac is around 130 kilometres from Belgrade and 140 kilometres from Niš. There is also the MarkovacSvilajnac-DespotovacResavica railway line, which is 42 kilometres long. The municipality is linked to the Belgrade-Niš (Corridor 10) motorway via the following roads: Despotovac-SvilajnacMarkovac (35 kilometres), DespotovacĆuprija (22 kilometres) and DespotovacJagodina (35 kilometres). Despotovac is almost equidistant from both the Belgrade and Niš international airports. According to official data from 2002, the municipality’s per capita revenue totalled 93,478.98 dinars.

T MALIŠA ALIMPIJEVIĆ, PRESIDENT OF THE MUNICIPALITY OF DESPOTOVAC: “We recommend investments in the following branches: mining, forestry, agriculture and tourism.”

ments. The only large company in the County is the public enterprise PEU Resavica brown coal mine, which employs over 1,000 miners.

Medium-sized companies include Kovilovača (stone processing; 50 employees), Dam Mont (production of machinery, machine parts and steel constructions; around 80 production employees and 20 assembly employees) and Zastava Metal (metal processing; close to 100 employees).The municipality recommends that investors consider the following branches: mining, forestry, agriculture and tourism. Beljanica Mountain, the only limestone mountain in eastern Serbia, boasts an attractive landscape and hydrology potential, highlands with possible ski resort locations, as well as many waterfalls. The Resavska Cave offers insight into the underground world and depicts a history of prehistoric human settlements in this part of Europe.

Two kilometres northwest of Despotovac lies the Manasija Monastery (known also as the Resava Monastery).

It was built on the right bank of the River Resava in a picturesque canyon at the foot of Mount Beljanica.

Manasija was founded by Despot Stefan Lazarević. It is dedicated to the Holy Trinity and was built between 1407 and 1418. The monastery is also Despot Stefan’s mausoleum.

It takes up to 30 days for the municipal authorities to issue all required permits and documentation

CONTACT DANILO NIKOLIĆ Tel: +381 (0) 35 611 117 Fax: +381 (0) 35 613 606 Mob: +381 (0)64 877 47 06 Email: danilon@ptt.rs DUŠAN MILANOVIĆ, dipl ecc.

Mob: +381 (0) 64 51 59 529 Email: ler.despotovac@gmail.com Website: www.despotovac.rs

ECONOMY The territory of the Municipality of Despotovac is ideal for agricultural production, which is the dominant economic branch alongside mining and forestry. The exceptional geomorphological composition of the land, couple with a favourable climate, provide solid prerequisites for the further development of agriculture and the municipality’s numerous settle26 / The Investors Guide - Serbia 2009/2010

INDUSTRIAL ZONE The Municipality of Despotovac does not have an industrial zone.

PERMITS AND DEADLINES It takes up to 30 days for the municipal authorities to issue an investor all required permits and documentation.

DIMITROVGRAD

CRITICAL CROSSROADS imitrovgrad is a town and municipality covering 483 square kilometres in the extreme southeast of Serbia, on the upper part of the River Nišava in the Pirotski County. It is only 20 kilometres from Pirot and 90 kilometres from Niš, though it is closer to the Bulgarian capital of Sofia (65km), as Dimitrovgrad is situated on the border with neighbouring EU member state Bulgaria. According to the 2002 census, the Municipality of Dimitrovgrad has 11,748 inhabitants: 6,968 in the town of Dimitrovgrad, 3,147 in satellite villages and 1,623 in the other settlements. The municipality has a population density of 24 inhabitants per square kilometre.

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TRANSIT ROUTE Two routes of international importance run through the town: the international arm of pan-European Corridor 10 and the rail line Niš - Dimitrovgrad Sofia. This is the main transport route inking Europe and the Asian continent, while Gradina border crossing with Bulgaria is just five kilometres from Dimitrovgrad.

ECONOMY Dimitrovgrad has about 60 enterprises employing just over 950 workers. These companies work in numerous sectors, including production of ready-made animal fodder, bakeries, clothing, manufacturing, finishing and fur dying, manufacture of leather, footwear, paper and cardboard, packaging products from rubber, metal products and the production of television and radio transmitters The municipality also has 212 small businesses employing 413 workers.

These are mainly offering services or operating as agencies, trade agents and the like.

LOGISTICS CENTRE Dimitrovgrad Municipality has initiated the development of a goods transport logistics

centre covering an area of 26.37 hectares at the Gradina Border Crossing. Projects for the construction of infrastructure, including water and sewage, have been designed, while the site has also been divided into plots. The municipal authorities have also initiated the procedure of compiling a detailed regulation plan for the complex industrial zone BELEŠ, to cover a surface area of 5.95 hectares.

BEAUTY HOTSPOT Dimitrovgrad is surrounded by pure nature and plenty of clean water. Located on the beautiful hillsides of the lowland mountain massif, the municipality boasts numerous springs and streams, which form the basin of River Nišava.

The lower course of the beautiful River Jerma Valley and its tributary of the River Poganovska are of particular importance to the development of local tourism. The area is also rich in mineral and thermal springs and a spa that has been renowned since ancient times.

The area offers excellent opportunities for the further development of transit tourism, particularly with sites like the Monastery of St. Jovan Bogoslov (a World Heritage site) and the Roman Zvonačka Spa.

DR. VESELIN VELIČKOV, MAYOR OF DIMITROVGRAD: “Dimitrovgrad Municipality has initiated the development of a goods transport logistics centre covering an area of 26.37 hectares at the Gradina Border Crossing”

It takes up to 30 days for the municipal authorities to issue all required permits and documentation

REVIVAL REQUIRED The past fifteen years have seen the economy of Dimitrovgrad experience great losses. The area’s biggest companies ceased to operate and a great many workers have remained jobless since. With the exception of small production facilities, shops and restaurants, Dimitrovgrad has no significant economy as yet.

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CONTACT Mayor, Dr. Veselin Veličkov Balkanska 2, 18320 Dimitrovgrad Tel: +381 (0) 10 361 100 Fax. +381 (0) 10 361 110 sodimitrovgrad@yahoo.com www.dimitrovgrad.rs Languages: Serbian, English & Bulgarian

GADŽIN HAN

SUBSTANTIAL

MINERAL RESERVES Gadžin Han has 84 registered private enterprises and 701 retail outlets adžin Han covers an area of 325 square kilometres in the Nišavski County of southern Serbia. The municipality has 34 villages and hamlets and, according to 2002 census, has 10,667 inhabitants, which marks a huge decrease of some 9,000 residents since the census of 1971.

Gadžin Han Municipality is ranked among Serbia’s “oldest” municipalities, with some 56% of local residents aged over 50. The municipality’s entire rural area is being heavily affected by strong outwards migration trends, while the only settlement in the municipality with in excess of 1,000 inhabitants is the town of Gadžin Han itself.

Some 64% of the municipality’s population represent the workforce, while almost 46% of the total population are based in agricultural. Arable fields and gardens occupy over half of all land; pastureland covers 27% of the territory, while the remaining land boasts vineyards, orchards and meadows. Around 84% of the municipality’s land is privately owned.

According to the quality of soil and climatic conditions, this area is suitable for cultivating strawberries, raspberries, blackberries and cherries; corn and tobacco. It also offers ample opportunity for the development of cattle breeding, with 37.2% of the total agricultural land covered by meadows and pastures.

Dry Mountain (Suva planina) has the largest number of sheep in Serbia and the majority

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MAYOR SAŠA ĐORĐEVIĆ: “The municipality’s industrial capacity is significantly underexploited at present.”

of the mountain belongs to Gadžin Han municipality.

Significant reserves of mineral raw materials have been found on the territory of the municipality. These include calcite ores (99.7% purity and 98% whiteness) with established reserves of 1.6 million tonnes or 36 years of exploitation. There is also granite, with sufficient reserves for 30 years of exploitation.

The area is heavily forested, with woodland – predominantly beech forests – covering 11,691 hectares (33.4% of the territory).

Some 2,600 workers (1,000 qualified) in the municipality are employed, while Gadžin Han has 84 registered private enterprises and 701 retail outlets.

The municipality’s industrial capacity is significantly underexploited at present, employing a total of just 400 workers. This sector includes electrical installation materials facility ‘Elid’ Donji Dušnik, electrical engineering armature factory AGH Gadžin Han, utility equipment industry operator Resor Gadžin Han and PVC products company Zateks d.p.

Municipal development potential should be realized through the creation of industrial zones in Gadžin Han. The local Master Plan envisages an area of 10 hectares for industrial zones on a site located only 18 kilometres from Nis and the E-75 and E-80 motorways.

All necessary permits for investors can be obtained within 30 to 90 days.

Gadžin Han Municipality is ranked among Serbia’s “oldest” municipalities

CONTACT MAYOR SAŠA ĐORĐEVIĆ Miloša Obilića bb, 18240 Gadžin Han Tel: +381 (0) 18 860112 Fax: +381 (0) 18 541143 Email: sogadzinhan@bankerinter.net www.gadzinhan.rs

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GOLUBAC

EUROPEAN-STANDARD

MARINA he Town and Municipality of Golubac is located in eastern Serbia on the right bank of the River Danube. It covers an area of 368 square kilometres and, according to the 2002 census, has 9,913 inhabitants.Golubac is 130 kilometres from Belgrade via the M25.1 regional road (Belgrade – Kladovo), which is the most important transport route in the municipality (the so-called Đerdapska highway).

The River Danube is the main waterway in the area and the great river is at its widest in the Golubac region (five-six kilometres from bank to bank).

In order for river tourism to develop further here, river banks and harbours require development. Plans are in place to construct a marina in Golubac that will be in line with relevant European standards.

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Agriculture and the processing industry represent the dominant economic branches in Golubac. “The municipality has assigned a site near the M.25.1 regional road to be used as an industrial zone,” says municipal president Nebojša Mijović. Water, electricity and sewage systems are all nearby, while a fibre optic cable is currently being laid.

The local authorities recommend stone, wood, fruit and vegetable processing as the branches of most appeal to investors.

The biggest investor in the municipality to date is Rino Tuttobene from Belgium.

INCENTIVES The municipality offers reduced land development and land utilisation fees, while the deadline for issuing relevant permits is two to three days.

SWISSLION & METALAC

CONTACT SAŠA BOGIĆEVIĆ, 12223 Golubac Mob: +381(0) 64 85 89 323 Fax: +381(0)12 678 426 Email: infogolubac@gmail.com Website: www.golubac.rs Languages: Serbian, English, Russian & Romanian

GORNJI MILANOVAC

The main companies in Gornji Milanovac are confectioner and soft drink producer Swisslion Takovo and cookware manufacturer Matalac he Municipality of Gornji Milanovac is located in Western Serbia. Covering part of southwest Šumadija and bordering the Gruž and Pomoravlje regions, Gornji Milanovac’s municipal area of 836km2 includes the vast mountains Rudnik, Suvobora and Maljen.

The municipality has two urban settlements (Gornji Milanovac and Rudnik) and 61 rural settlements, with a total population of 47,641. The highest populated boroughs are Koštunica and Pranjani, while the smallest are Vraćevšnica and Gornji Milanovac.

The municipality belongs to the Morava County.

Gornji Milanovac is passed by the national Ibarska A-road, which connects Belgrade

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(122 km away) to Čačak, Užice and Zlatibor – in Serbia – and with Montenegro’s Adriatic coast.

This strategic road also links Gornji Milanovac to famous nearby spas (Mataruška Spa, Vrnjacka Spa and Ribarska Spa), mountain ski centres (Goc, Kopaonik and Jastrebac), cultural and historic monuments (Stenica, Ziča, Ljubostina and Lazarica), as well as the towns of Trstenik and Krusevac, which is linked to Corridor 10 highway Belgrade - Nis - Skopje - Đevđelija – Thessaloniki- Athens.

The main companies in Gornji Milanovac are confectioner and soft drink producer Swisslion Takovo and cookware manufacturer Matalac.

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CONTACT MAYOR DRAŽIMIR MARUSIĆ Takovska 2, 32300 Gor. Milanovac Fax. +381 (0) 32 720 280 Tel. +381 (0) 32 720 282 predsednik@gornjimilanovac.rs Languages: Serbian & English

IVANJICA

AMBITIOUS OUTLOOK

he Municipality of Ivanjica is situated in an area of southwest Serbia known as the Starovlaško-Raška Plateau. The municipality stretches across 1,090 square kilometres of arable and woodland, making it the sixth largest municipality in Serbia. Ivanjica is 224 kilometres from Belgrade and borders the municipalities of Novi Pazar, Sjenica, Nova Varoš, Arilje, Lučani, Kraljevo and Raška. Due to its specific climate, akin to the climates of European air spas, the municipality has a health clinic specialising in the treatment of blood disorders. Ivanjica is linked to the BelgradeSouth Adriatic regional road via Arilje and Požega (42km away), to Čačak via Guča and to Kaona via Kraljevo. Moreover, the municipality is connected to the Ibarska A-road via Javor, Sjenica and Novi Pazar. According to the 2002 census, the municipality has a population is 35,445 residents living in a total of 11,040 households. Ivanjica encompasses 48 towns and villages, 42 boroughs and 18 local communities. Back in 2000, some 10,789 citizens were employed in Ivanjica. However, by 2008 that figured had dropped to just 6,080. The dominant economic branch in the municipality is the

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CONTACT RADOMIR RISTIĆ Municipal President Milomir Zorić Venjamina Marinkovića 1 32250 Ivanjica Tel: +381 (0) 32 661 444, Mob: +381 (0) 64 88 99 450 Email: soivanjica@sezampro.yu www.ivanjica.rs Languages: Serbian & English

JAGODINA

GOOD INVESTMENT CONDITIONS

he City and Municipality of Jagodina covers 470km2 at the heart of central Serbia, just 130 km from Belgrade and 100km from Niš.

Situated beside Corridor 10’s strategic BelgradeSkopje-Thessalonica-Athens motorway, the Town of Jagodina is the centre of the Pomoravlje County. The territory of Jagodina has a total of 83,000 inhabitants, with 50,000 residing in the urban town and the remaining 33,000 living in 32 secondary settlements. Jagodina has a developed beer industry and a brewery tradition dating back over 150 years. Other relevant sectors include meat and meat-produce production, furniture manufacturing, etc. The municipality has a total of 12,313 unemployed citizens, of which 8,417 are active jobseekers. The average net monthly salary in Jagodina is €220.

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CONTACT MAYOR DRAGAN MARKOVIĆ Kralja Petra 6, 35000 Jagodina Tel/Fax +381 (0) 35 221 220 Email: kabinet_jag@ptt.rs Languages: Serbian & English

processing industry, principally wood and textiles.

Textile companies are the most successful companies here, with Javor-Ivanjica taking the lead.

However, the number of employees was significantly reduced following the company’s privatisation and Javor-Ivanjica even closed down its facilities in neighbouring villages. Ivanjica has a total of 362 SMEs (95% are small enterprises). Most of these companies are engaged in the processing industry (32.6%), retail, transportation and storage (29%). Some 61.4% of them are limited liability companies, followed by partnerships and shareholder companies (22.2%).The local development strategy is seeing the municipality working on developing agriculture, mainly the cultivation of potatoes, raspberries, plums, apples, mushrooms and medicinal herbs, as well as the production of animal fodder. Also on the municipality’s list of priorities are cattle breeding, dairy production and organic food production. The municipal authorities are also planning to develop the forestry sector, as over 50% of the territory is woodland, as well as advancing wood and textile processing and tourism.

PERMITS IN JUST 30 DAYS The city has an industrial zone covering an area of 150 hectares just 500 metres from Corridor 10. The City of Jagodina offers free land, utili30 / The Investors Guide - Serbia 2009/2010

ties and complete infrastructure within the industrial zone to serious investors agreeing to employ a minimum of 23 employees per hectare of land occupied. All necessary permits for the construction of a facility can be obtained within the shortest time possible, no later than 30 days. Contracts under such conditions have already been signed with companies from Hungary and the United States, while the Municipality is also in the final stages of agreeing further investments with companies from Austria, Greece and France.

TOURISM & SPORT Jagodina is also a venue of tourism and sport.

The town boasts the only aqua park in Serbia, the only waxworks museum in Serbia – one of only six in Europe and the Tiger Zoo. In terms of sport, it is home to Football Club Jagodina and women’s handball club RK Jagodina – both competing in Serbia’s super leagues.

KLADOVO

DANUBE & TOURISM ladovo is a town and municipality in the Bor County of eastern Serbia. Situated on the right side of the River Danube, Kladovo town and municipality has a population of 23,622 - according to the 2002 census - with some 9,111 living in the town of Kladovo itself. Kladovo municipality covers 630km2 and includes the towns of Kladovo and Brza Palanka, as well as 21 villages. Due to many archaeological sites and the nearby Đerdap Hydro-electric Power Plant, Kladovo town is a popular tourist destination, especially during the summer months. The town is bordered by the River Danube, to the north and northeast, and by a range of low mountains to the south and southwest. The main eeconomic activities in the municipality are linked to the hydro-electric power plant, with other businesses have principally began to support the building and operation of the power plant. The Municipality Kladovo has began developing a sustainable development strategy, which is a strategic plan of the municipality, as well as setting down rules and running

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activities aimed at prompting future development. The strategy is implemented within the EXCHANGE 2 Programme and is expected to be adopted in September 2009. Kladovo municipality’s village communities are partly supported by family members working overseas in the countries of western Europe, while agriculture is more of an ancillary activity than an income generating sector. Kladovo belongs to the municipalities identified as having the greatest tourism sector potential.

The proximity of the River Danube, coupled with the area’s cultural/historic specificity and folklore features, Kladovo offers visitors rare, unique and attractive tourist facilities yearround. Kladovo can be proud of numerous cultural and historic monuments, such as Lepenski Vir, Diana Fort, ruins of the bridge, Trajan Table and Fort Fetislam. Meanwhile, Đerdap National Park, fishing and hunting areas, traditional events, hotels and opportunities for marine tourism on the Danube are just some of the attractive tourist possibilities in Kladovo.

RURAL, AGRO AND ECO TOURISM he Municipality of Knić covers 413 square kilometres and is also located along the Belgrade – Kraljevo – Skoplje railway corridor. It is linked to the E-75 motorway and Ibarska regional road via the M-23 and M-23.1, as well as the R-212 and R-212a roads. vThe municipality’s most abundant natural resources include arable land, mineral raw materials, water potential and favourable conditions for the development of tourism. Investors are advised to invest in agricultural processing systems, i.e. the processing of animal and vegetable raw materials, dairy products, fruit and vegetable drying facilities, cheese production, meat, fruit and vegetable processing, bread making and confectionary production. Knić offers almost ideal conditions for the production of organic food in a clean environment, as well as excellent potential for the development of

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rural, agro and eco tourism.The municipality’s industrial zone stretches across 40 hectares of land and is complete with required infrastructure. Land in the industrial zone is not owned by the municipality and only 10% of the zone is currently occupied.

“The main condition a potential investor is required to fulfil is possession of complete documentation needed to secure relevant acts, approvals, permits, etc.,” says municipal president Borislav Busarac. There is a seven-day deadline for processing a request for issuance of the urban planning act, an excerpt from the urban planning document and registration of construction works, while a construction permit is issued over a period ranging from one month up to six months.

Up to a month is required to obtain an operating licence.

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CONTACT MAYOR DEJAN NIKOLIĆ Kralja Aleksandra br.35, 19320 Kladovo Tel. +381(0)19 801 450; 801 451 Fax: +381 (0) 19 801 563 Email: dnikolic@kladovonet.com www.kladovo.org.rs Languages: Serbian & English

KNIĆ

CONTACT SNEŽANA ĐOKIĆ, assistant to the president of the municipality of Knić, Opština Knić, 34 240 Knić Tel: +381 (0) 34 511 999 Fax: +381 (0) 34 510 113 Mob: +381 (0) 63 10 88 051 Email: snezana.bankovic@knic.rs Website: www.knic.rs

KNJAŽEVAC

NUMEROUS INCENTIVES ON OFFER

he Municipality of Knjaževac is located in eastern Serbia along the border with Bulgaria.

It belongs to Zaječar County, covers an area of 1,202 square kilometres and has 37,172 inhabitants. The town of Knjaževac is 55 kilometres from the nearest motorway, 160 kilometres from the the River Danube’s Kladovo Harbour, 60 kilometres from Niš, 120 kilometres from Sofia and 300 kilometres from Belgrade. Knjaževac’s predominant economic branches are textile industry, footwear production, wood and metal processing and the food industry, while the whole area has exceptional potential for the development of agriculture, village and spa tourism. According to the latest data, the average net monthly salary in the municipality of Knjaževac is among the lowest in Serbia, amounting to just 19,244 dinars. The municipality has 5,332 citizens registered as unemployed.

INDUSTRIAL ZONE The local spatial plan envisages the development of an industrial zone on the site of the former Knjaz Miloš Obrenović Military Barracks. The zone will cover an area of 23 hectares and represents an ideal location for business facilities, residential buildings, sports facilities, etc. The land earmarked for the industrial zone has adequate utility infrastructure, water and electricity supply and is traversed by an access road, while the former barracks are at the disposal of investors and certain modifications could see this military facility become functional once more. The site’s land has an estimated value of over 67 million dinars.

INCENTIVES Knjaževac’s municipal authorities offer incentives for potential investors, particularly when it comes to land development fees and charges for leasing construction plots. If an investor hires more than 10 people to work in a facility that will benefit the municipality, the land development fee is reduced to just 20% of the usual fee. However,

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MLADEN RADOSAVLJEVIĆ, PRESIDENT OF THE MUNICIPALITY OF KNJAŽEVAC: “We have prepared quite a few incentives for potential investors.”

if an investor fails to utilise the leased land for the original purpose and doesn’t hire workers within a space of 15 months, then the full fee will be applied. Wherever a projected facility is of interest to the municipality is determined by a decision of the president of the municipality on the basis of recommendations provided by the municipal council. If an investor needs to pay for the constructing of utility infrastructure elements then said investor is exempt from paying an equal amount of the fee, i.e. the exemption depends on how much money an investor has spent on utility infrastructure. Land leased by the municipality to an investor with the aim of facilitating the construction of production or processing facilities and the hiring new workers, includes certain incentives such as exemption from paying a percentage of the lease fee (0.5% per new employee), while the remaining fee can be paid in instalments, with a minimum of 20% to be paid no later than 15 days after signing a contract. The remaining fee should be paid in four equal annual instalments, with the interest rate determined by the National Bank of Serbia. These discounts are valid only if an employee in the investor’s facility has been employed there for at least four years, since the beginninga of the company’s operations.

PERMITS AND DEADLINES All relevant permits will be issued to an investor within five days, provided said investor has completed the required documentation.

TOP INVESTORS Falc East from Civitanova Alta, Italy, is the biggest investor in the municipality of Knjaževac. This Italian company bought Leda footwear factory – since renamed Falc East Knjaževac d.o.o. Then there is Citadel Group, Belgrade, which bought the Džersi cheese factory from Knjaževac, as well as textile companies Azzaro and Beba Kids.

All relevant permits will be issued within five days

CONTACT LJILJA MILENKOVIĆ Miloša Obilića 1, 19350 Knjaževac Tel: +381 (0) 19 733 119 Fax: +381 (0) 19 732 730 Mob: +381 (0) 63 404 553; 65 40 45 530 Email: soknjazevac@ptt.rs Website: www.knjazevac.rs Languages: Serbian & English

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KOSJERIĆ

AIMING TO BE BEST Municipal regulations have been developed with the aim of supporting investors The Town and Municipality of Kosjerić is a mountainous area in the Zlatibor County of western Serbia. The municipal area covers 358km², of which agricultural land covers 19,682 hectares.

The population is 14,001, though Kosjerić suffers from an outward migration trend. Kosjerić is 420 m/asl and has a semi-continental climate.

The main Belgrade-Bar railway passes through Kosjerić and is linked to the local industrial railway to cement factory Kosjerić.

As well as the main road linking Novi Sad - Šabac - Valjevo - Kosjerić - Požega - Užice - Prijepolje - Bijelo Polje and further to the south, Kosjerić is connected to the Ibarska Magistrala (Celije), linking it to Lajkovac, Valjevo, Pozega and Užice.

ECONOMY According to records from 2006, Kosjerić has 569 registered companies, predominantly private and shareholder firms, which are mainly concentrated in the service sector, metal construction and the chemicals industry.

Agricultural production is extensive and widespread on the territory of the municipality. There is organised production of raspberries (around 4,000 tonnes per year) and plums. The municipality is currently seeking opportunities to organise cultivation/farming of snails, strawberries, mushrooms, fish, etc. Tourism in Kosjerić is mainly based on rural tourism activities, while the number of guest beds is growing year on year in line with the increasing number of guests. The municipality has 325 registered employees classed as unqualified, 65 deemed semi-qualified, 330 with junior school education, 278 with the high scool graduates, five with further education diplomas, 41 with higher national dipomas and 19 university graduates.

INDUSTRIAL ZONE The municipality has a number of business and industrial zones. Kladoroba I: located between the main road M-21 and the Belgrade-Bar railway, this brownfield site covers an area of 1.59 hectares.

Kladoroba II: located alongside main road M21,

between the road and the Belgrade-Bar railway, this greenfield site covers an area of 3.2 hectares.

City Depot: earmarked for the development of a residential and business complex, this brownfield site (0.75ha) is situated between Živojina Mišić and Mileva Kosovac streets.

Tulimirsko Polje Industrial Zone: centrally located, this site includes a number of greenfield plots.

Brajkovic II Business Park: lying to the east of the main road M-21, this site offers opportunities for greenfield investments.

PERMITS & DEADLINES Municipal regulations have been developed with the aim of supporting investors, including options such as paying land fees in up to 36 installments.

Investors who employ new workers could benefit from reduction of up to 70% of the calculated amount. With the right conditions, an investor can obtain approvals and permits issued by local authorities and public enterprises in a period of just eight days. After obtaining necessary documentation in the municipality, a permit is issued within 48 hours.

Starting from economic and human resources, Kosjerić is looking to become a leader in Serbia by establishing a competitive business climate for entrepreneurs and investors in the development of agriculture based on rural areas and institutional activities. The local government believes that rural development in Kosjerić should be turned to organic production, as great opportunities exist for the production of organic food – suitable land, preserved nature and the availability of energy from renewable sources (wind and water).

DRAGAN VUJADINOVIĆ, PRESIDENT OF THE MUNICIPALITY OF KOSJERIĆ “Kosjerić has substantial experience with investors”

The municipality has a number of business and industrial zones

INVESTMENTS TO DATE Kosjerić has substantial experience with investors, such as INTER KOP, Sabac, Sapir Ltd. Belgrade, juniper berry-transport from Ruma, Putevi Užice Ad and VUMO Belgrade, which has established a factory for the production of fruit brandy with protected geographic origin.

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CONTACT DRAGAN VUJADINOVIĆ, Municipal President Olge Grbić 10, 31260 Kosjerić c/o Danijela Ilić, Tel. +381 (0) 31 783 582 Mob: +381 (0) 64 23 18 209 danijelaailic@yahoo.com www.kosjeric-online.com Languages: Serbian & English

KOCELJEVA

READY TO REACH AGREEMENT he Town of Koceljeva is 80 kilometres west of Belgrade and Nikola Tesla Airport, via the M-21 regional road, 30 kilometres from th nearest River Sava port and 30 kilometres from the EU – Istanbul and Budapest – South Adriatic terminals.

ECONOMY

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ities in Koceljeva will only be required to pay 20% of their utility expenses. Investors are offered additional incentives if they choose to invest in the municipality’s settlements. According to Verobljub Matić, President of the Municipality of Koceljeva, the municipality’s message to investors is “come and we can always reach an agreement”.

PERMITS AND DEADLINES The municipal authorities guarantee the issuance of relevant permits and approvals in the shortest possible time. When it comes to acquiring permits from the state authorities, the municipality will provide investors with useful assistance and support.

INVESTMENTS TO DATE The biggest investors in the municipality of Koceljeva to date are Rauch, Alas Holding, ZA Fruit d.o.o. and Rostfenix d.o.o.

BRANISLAV S. MIĆIĆ, LED Assistant to the Mayor Nemanjina 74, 15220 Koceljeva Telefon: +381(0)15 556 537 Fax: +381(0)15 556 587 Mob: +381(0)64 827 61 02 pomocnik@koceljeva.gov.rs Website: www.koceljeva.gov.rs Languages: Serbian, English & Czech

The municipality’s main economic branches are agriculture, food production and nonmetal processing. According to the National Employment Service, the municipality has 1,500 unemployed workers, almost a half of whom possess a high school education. The municipality boasts an industrial zone that covers an area of close to 30 hectars. It is fu infrastructurally equipped, offering water and electricity supply, telephone land lines, a sewage system, etc).

INCENTIVES Investors opting to set up production facil-

KRAGUJEVAC

BUSINESS CENTRE The municipality boasts well developed infrastructure he City of Kragujevac is the economic, cultural, educational and political centre of the area. It lies 140 kilometres from Belgrade via the E-10 motorway. The municipality covers an area of 835 square kilometres and has several industrial and business zones linked to the KragujevacBatočina motorway.

All relevant permits can be obtained within legally defined deadlines, providing that an investor possesses all relevant technical documentation.

The most important investors in Kragujevac are FIAT, Plaza Centres, Supernova - MTK Immobilen, TPV Šumadija, NP co., Metro Cash & Carry, Delta M, Mercator, YU – Broker group, Tuš, Forma Ideale, Novi čelik, AIK banka, Global finance, Nelt, Family sport KG, 034 and over 200 oth-

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CONTACT GORAN PETROVIĆ Trg Slobode 3, office no. 203 34000 Kragujevac Tel: + 381 (0) 34 306 127; Fax: + 381 (0)34 306 127 concact@investinkragujevac.com www.kragujevac.rs Languages: Serbian, English, German & Italian

er companies.

“Kragujevac has well developed road and rail infrastructure and offers easy access to gas, electricity and heating supplies, as well as a contemporary telecommunications network and waste water purifying system,” says Kragujevac Mayor, Veroljub Stevanović.

“The municipality offers the following specific incentives to investors: – a rebate of €2,500 per employee for an investor hiring between 20 and 50 employees; an increased rebate of €5,000 per employee for an investor hiring between 51 and 200 employees, €7,000 for hiring in excess 200 employees, etc.

When it comes to hi-tech industries, this financial incentive can go up to €15,000 per university graduate employee.”

The most important investors in Kragujevac are FIAT

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KRALJEVO

INDUSTRIAL & OPERATIONAL ZONES An investors’ relief package is being prepared The City of Kraljevo lies in the heart of THE Šumadija region, 180 kilometres south of Belgrade, 185 km noRth of Pristina, 400 km from the Adriatic coast and 600 km from the Aegean Aea. Kraljevo has a population of 121,707.

ECONOMY

According to statistics from the NBS, Serbia’s central bank, there are a total of 1,102 businesses operating in Kraljevo. These include five big companies, 45 medium-sized firms and 1,052 small enterprises. The further development of industry is favoured by existing infrastructure, a good base of raw materials and excellent transport connections.

The city area boasts 47.4% of agricultural land and 46.8% of forestland.

INDUSTRIAL ZONE

Kraljevo boasts several industrial zones. Industrial Zone 4 is specialised in the production industry and covers 264.32 hectares. It is connected to the city by wellmaintained road routes and lies between the Kragujevac-KraljevoČaćak A-road and the Western Morava River. The zone has complete communal infrastructure and a small airport for sporting aviation and smaller aeroplanes. Plots within the zone are owned by private companies.

Zone 5 (Sijace polje) is a business-residential area covering 264.66 hectares, while Zone 10 (Seovac) is an industrial-service area of 153.29 hectares, located along the ČačakKraljevo A-road, around four kilometres from the centre of Kraljevo.

Some eight kilometres away, in Ladjevci, lies the Morava Military Airport, which is currently being converted to cater for mixed air traffic. In 2007, the infrastructure of the airport was redeveloped to suit the needs of business. This industrial zone was the subject of a General and Detailed Urban Plan, while land property is divided between private and public ownership (ratio of 80-20%). The city owns a two hectare parcel in this zone, which can be offered to potential investors for a lease price of between €2,000 and €3,000 per 100m2.

Zone 11 (Gornja Ada) is a service-storage space of 64.23 hectares, while Zone 12 (Kulagica Ada) has 223.10 hectares of land.

According to the General Urban Plan, this area has been earmarked for the development of a servicestorage area with residential and business capacities.

Zone 16 (Donja Kruševica) is intended for agriculture and residential purposes and covers an area of 210.35 hectares.

In addition to the aforementioned zones, investment opportunities in Kraljevo are additionally strengthened by six trade areas and two operational zones.

LJUBIŠA SIMOVIĆ, MAYOR OF KRALJEVO: “The city has good traffic connections via regional and A-roads”

...existing infrastructure, a good base of raw materials and excellent transport connections

INCENTIVES

An investors’ relief package is currently being prepared by the municipal authorities.

INVESTMENTS TO DATE

The most significant operators in the municipality are consortium Dragon Ltd., Dombas, Sicoberi, Mondi Serbia, Aeroeast, Sato, Treba, Farmad, TUŠ and Styria Federn.

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CONTACT LJUBIŠA SIMOVIĆ, Mayor of Kraljevo Trg Jovana Sarica 1, 36000 Kraljevo Tel +381 (0) 36 306 024 Fax: +381 (0) 36 306 098 Email: gradonacelnik@kraljevo.org www.kraljevo.org Languages: Serbian & English

KRUPANJ

PROMISED LAND FOR INVESTORS

All documentation required to implement an investment and commence construction works are provided quickly and efficiently he Municipality of Krupanj covers an area of 342 square kilometres along the left bank of the River Drina in western Serbia.

Leading economic branches in Krupanj are agriculture, wood processing and tourism.

Since the municipality is lacking sufficient tourism facilities, potential investors are advised to consider investing in the construction of such facilities. The municipality is the owner of two business zones ideal for commercial activities. Location 1 and Location 2 both have appropriate infrastructure and are leasable for a period of 99 years, with the construction land development fee included in the lease. The zones can be divided into several smaller portions. Land at Location 1 can be

T CONTACT MILAN JOVANOVIĆ Marsala Tita 2, 15314 Krupanj Tel: +381 (0)15 681 475 ext. 118 & 126 Fax: +381 (0)15 681 10 Email: krupanjso1@nadlanu.com Website: www.krupanj.org.rs Languages: Serbian & English, et al

KRUŠEVAC

CITY WITH TRADITION he City of Kruševac is situated in Central Serbia, just 23 kilometres from pan-European Corridor 10 (Belgrade – Niš Motorway). Kruševac covers an area of 854 square kilometres and has 131,368 inhabitants. The nearest international airport is 80 kilometres in Niš, while the Port of Belgrade is 200 kilometres away. The city lies on two rivers: the Western Morava and the Rasina.

A reservoir was built 20 kilometres from Kruševac on the River Rasina and is home to the Majdevo water factory. In terms of infrastructure, 85% of the municipality’s territory is serviced by water supply and sewage systems. There is also the Pojate-Kruševac gas pipeline, a well developed road and rail transport infrastructure, the Rosulje airport (currently under construction), mobile and fixed-line telephony networks and internet connections (wireless, ADSL, cable). The municipality has vast tourist potential. Historical sites include the Lazarica Church, monasteries Naupare, Đunis, Veluće and others. There are several spas, includ-

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CONTACT MILOŠ JOVANOVIĆ, Head of the Kruševac City Administration Gazimestanska bb 37000 Kruševac Tel/fax: +381(0) 37 421 567 protokol@krusevac.org.rs www.krusevac.org.rs Languages: Serbian & English

leased for a price of €1,800 per hectare (a total of 32 hectares are available), while land at Location 2 costs €1,550 per hectare to lease.

Both locations are near the town centre.

“A new general urban planning document will enable potential investors to obtain required permits quickly and efficiently. We recommend that investors opt for raw materials and agricultural produce processing facilities, which the municipality has in abundance, as well as using existing production facilities,” says Krupanj Municipality President Savo Dorić. All documentation needed to implement an investment project can be obtained in just a few days from the submission of a request to the relevant departments in the municipality.

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ing the Vrnjačka and Ribarska spas and other health and tourism facilities. Moreover, the forested Jastrebica Mountain is just 20 kilometres away and Kopaonik Mountain’s major ski centre and winter sports resort is just 90 kilometres away. Machine processing, chemical/textile industries and the service sector dominate in Kruševac. Local companies that have been successfully privatised include Henkel – Merima and Trayal Corporations, while those currently undergoing privatisation include IMK ‘14. oktobar’ and chemical industry Župa. The municipal authorities have commenced construction of an industrial zone. The Ministry for the National Investment Plan has given approval to the municipality’s investment programme and local authorities are set to begin defining tangible proposals for potential investors.

“Furthermore, the municipality is working on expediting the issuance of required permits in order to shorten the entire procedure as much as possible,” says Desimir Pavlović, Mayor of Kruševac.

KURŠUMLIJA

READY FOR INVESTORS uršumlija is located in southern Serbia, along the upper River Toplica and its tributaries Kosanić and Banjska, and on the southeast slopes of Mount Kopaonik and the northwest slopes of the Mount Radan. Occupying an area of 952 km², Kuršumlija municipality belongs to the administrative County of Toplica and borders the municipalities of Brus, Blace, Prokuplje, Medveda, Podujevo and Leposavić.

There are total of 21,608 inhabitants in the municipality. The geographic position of the municipality gives it a general transit character, as the territory of the municipality is passed by the regional road of strategic importance linking Niš to Priština to Peć. Moreover, Kuršumlija municipality is connected to Brus, Kruševac and Belgrade via the regional route through Blace, while the railway Njivice-Prokiplje-KuršumlijaKosovo Polje runs through the Toplica Valley and Kosanić.

Kuršumlija’s territory offers attractive, well-preserved nature.

This is a hilly/mountainous areas with dense forests stocked with forest fruits, traversed by wild, clean rivers and dotted with numerous spas and springs with clean drinking water.

Kuršumlija has many natural resources aiding the development and intensification of different forms of tourism that have yet to be utilised. The most important tourist potential is presented by the three spas Prolom, Kuršumlijska and Lukovska, which boast exceptional values in terms of mineral water, favourable climatic conditions and preserved environment. The tourist offer is completed by the famous Đavolja Varoš, a unique natural phenomenon anywhere in the world, Kopaonik Mountain range, a mine, the mountains Radan, Sokolović and Pilatovice, as well as diverse hunting opportunities. The municipality consists of 37,500 hectares of arable land, which offers ample opportunity for the development of agriculture. Furthermore, the municipality offers extremely favourable conditions for fruit growing, especially apple and plum. The existence of large areas of meadows

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and pastures offers the possibility of developing livestock breeding operations, while exploitation of forest fruits is also well developed.

The development of agriculture has created opportunities for capacity building in terms of mini food producing plants, dairies, and kiln and refrigeration facilities.

The previous period saw many companies unsuccessfully privatised and forced into bankruptcy, though one of the few companies still operating with relatively good results is tourist company Planinka, which was transformed into jointventure company. Planinka is the owner of restaurants in Lukovska town and spa. Planinka has exploited the waters of the Prolom Spa, bottling and successfully marketing the water as Prolom Voda. The most abundant natural resource in Kuršumlija municipality is wood, with forestland covering some 52,400 hectares and providing a basis for the development of the wood processing industry.

The municipality has yet to install infrastructure in the industrial zone, but a total of 3,439 workers are available to potential investors. Of these, 1,554 represent an unqualified workforce, 1,736 have secondary education, while 86 have completed higher education and 63 are university graduates. The Municipality of Kuršumlija is rich in cultural and historical heritage. At the mouth of Kosanić, on the site of the spa, lie the remains of a basilica from the early Byzantine period (VI and VII century). At the entrance to the city are the ruins of the first church founded by Serbian King Stefan Nemanja: Sv.Bogorodice Monastery, while on the hill above the town is the endowment of Stefan Nemanja: the Monastery of St. Nikola (built from 1165-1168).

The municipality belongs to the circle of the most underdeveloped municipalities in Serbia and has the status of the top ranked municipality among priorities of the national development policy. However, the status of underdeveloped municipality does not prevent Kuršumlija from using its natural potential to reach a significant position in the Republic.

MAYOR ZORAN VUČKOVIĆ : “The municipality belongs to the circle of the most underdeveloped municipalities in Serbia and has the status of the top ranked municipality among priorities of the national development policy. “

Kuršumlija’s territory offers attractive, wellpreserved nature

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CONTACT MAYOR ZORAN VUČKOVIĆ Proleterskih brigade bb, 18430 Kuršumlija Tel. +381 (0) 27 381 383 Fax. +381 (0) 27 381 785 Email: sokucevo@kucevo.rs, sokucevo@yahoo.com www.kursumlija.org

KUČEVO

TARGETING INVESTORS he Municipality of Kučevo is located in the southeast of Braničevo County in eastern Serbia and includes the middle and lower sections of the “golden” River Pek. The Municipality covers an area of 721 square kilometres and is traversed by two major transport routes: the Belgrade - Požarevac - Majdanpek - Zaječar road and the Belgrade - Požarevac Majdanpek - Prahovo railway, which ends at the Port of Prahovo on the Danube. Territorially, Kučevo consists of flatlands, undulating hills and a mountain section. The flatlands represent an ancient floodplain around the River Pek, while the mountainous area is represented by the slopes of Homolje Mountain. Half of the territory - 35,320 hectares – is covered by arable, agricultural land, while the other half is largely forestland. The municipality is home to 24,944 inhabitants, 6,818 of whom live in the town of Kučevo: the administrative, cultural and economic centre of the municipality.

The village of Neresnica is the second largest

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CONTACT MAYOR ZORAN MILEKIĆ Save St. 76, 12240 Kučevo Tel: +381 (0) 12 852 178 Fax: +381 (0) 12 852 684 Email: sokucevo@kucevo.rs, www.kucevo.rs; www.mojekucevo.org Language: Serbian & English

LAJKOVAC

settlement in the municipality, with 4,232 inhabitants. Natural resources (forests, stone and quartz quarries) have determined the structure of the economy in the municipality Kučevo.

The lowland slopes of Mount Homolje are rich in wildlife, which have been traditionally hunted for centuries and nowadays represent a very important factor for the development of the municipality. Agricultural production – including crop farming, sheep rearing and cattle herding – is the most important economic activity, while wood processing, lime and stone quarrying and the tourism sector are also important. The local economic structure includes 50 companies and 404 retail outlets. Of all companies, the majority deal in trade (54%), followed by the processing industry (22%) and agriculture & forestry (10%). The municipality is open to all foreign and domestic investors and is ready to provide all required permits and documentation for new investors in the shortest possible period.

IDEAL FOR SMALL & MEDIUM ENTERPRISES The municipality provides incentives for building permits he Municipality of Lajkovac is located in western Serbia, in the vicinity of the Ibarska A-road, and covers an area of 186 square kilometres. The municipality is 69 kilometres from Belgrade and 27 kilometres from Valjevo.

According to the 2002 census, Lajkovac has a total workforce of 10,599 and a total of 3,395 employed citizens. Lajkovac’s industrial zone stretches over 104.5 hectares and is suitable for small and mediumsized enterprises (SMEs). The zone encompasses two sites (Lajkovac and Jabučje I) and is near the Ibarska A-road, just 65 kilometres from Belgrade. Land here is privately-owned

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CONTACT DUŠAN ŽIVANOVIĆ, Municipal President Omladinski trg 1, 14224 Lajkovac Tel: +381(0) 14 73 109 Fax: +381(0) 14 73 332 Mob: +381(0) 63 106 27 23 Email: kabinet@lajkovac.org.rs Website: www.lajkovac.org.rs Languages: Serbian, English & German

and partially equipped with infrastructure. The municipality will provide required permits and utility services. There is also a plan to build an industrial railway line that will be linked to the Belgrade-Bar railway, as well as several roads. The zone also has a reloading unit and the Adriatic transport route is just four kilometres from the industrial zone. The municipality provides incentives for building permits, i.e. if an investor wants to set up an SME, the land utilisation fee can be reduced by over 50%, depending on the number of workers that will be hired. The most important investor here is Vindija from Varaždin.

The most important investor here is Vindija from Varaždin

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LAPOVO

STRATEGIC CROSSROADS Lapovo is a small town and municipality in central Serbia’s Šumadija County, covering an area of just 55 km. According to the 2002 census, the population of the town was 7,422 and the municipality had a total of 8,228 residents.

Lapovo is one of the most prospective towns in the surrounding area, thanks to its great geographical location. It is situated at the intersection of Belgrade-Niš (Corridor 10) motorway and the main regional railway Belgrade-SkopjeThessalonica-Athens. One of the region’s main railway intersections is situated right in the town of Lapovo and plays a very important role in the local community.

The municipality has developed construction, graphics, chemicals industry and trade sectors.

The last few years have seen special importance given to the development of private enterprise, which employs around 2,500 Lapovo workers.

With an advanced road network, development of communal services and protected primary health care, coupled with the municipality’s natural conditions for further development and the new economic environment being created, Lapovo Municipality is set to gain a sta-

ble, secure economy that will make it a significant part of Serbia and Europe. The Lapovo Free Zone has been established on a site between international highway E-75 (Belgrade-Niš) and the international rail line tracks. This great location is 108 km from Belgrade, beside major transport arteries connecting Europe to the East and leading to the Adriatic seaport of Bar on one side and Greece’s Thessalonica seaport on the other. The site offers remarkable opportunities for development and investments in new production facilities and many other services. The Lapovo Free Zone covers an area of approximately 80 hectares, with the possibility of further enlargement.

There are two halls of 250 square metres and one hall of 1000 square metres, while electricity and gas facilities are also nearby.

The Municipality of Lapovo offers substantial benefits to companies hiring significant numbers of workers, depending on the level of investment and other conditions.

Lapovo also offers great opportunities for investments in hunting grounds and fishing, thanks to the proximity of resorts in vicinity of the Great Morava River.

ADVANTAGEOUSLY LOW PRICES

CONTACT DRAGAN ZLATKOVIĆ, Mayor of Lapovo Njegoševa 18, 34220 Lapovo Tel: +381 (0) 34 853 516; Fax: +381 (0) 34 853 105 Email: office@lapovo.org www.lapovo.org Languages: Serbian & English

LEBANE

Lebane’s industrial zone covers an area of 12 hectares he Municipality of Lebane is located in the southwest of Central Serbia, in the River Jablanica basin – a tributary of the Southern Morava River). The municipality stretches over 337 square kilometres and has 25,000 inhabitants. Pan-European Corridor 10 motorway is just 20 kilometres southwest of Lebane, while the major city of Niš is only 65 kilometres away. The Lebane industrial zone, which is located at the very heart of the town of Lebane, covers an area of 12 hectares and includes constructed facilities covering 17,662 square metres (individual surface areas range from 150 to 10,866 square metres). The zone boasts an adequate

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road and utility infrastructure, as well as its own power substation.

“We offer the following comparative advantages to potential investors: cheap workforce, low land development and land utilization fees and high quality agricultural produce. Permits can be obtained within legal deadlines and in line with the Law on Spatial Planning and Construction,” says Mića Stojanović, municipal president. The biggest investor in the municipality is Porr Werner & Weber, which handles the removal and depositing of utility waste from the municipality’s territory.

The biggest investor in the municipality is Porr Werner & Weber

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CONTACT NENAD JOVANOVIĆ, Assistant to the municipal president for economic development Cara Dušana 116, 16230 Lebane Mob: +381(0) 64 852 98 24 Fax: +381(0) 16 843 083 Email: kabinet@lebane.org.rs Website: www.lebane.org.rs Languages: Serbian & English

LESKOVAC

CENTRE OF SOUTHERN SERBIA

Leskovac boasts quite appealing market access, with close to 30 million consumers within a 300-kilometre radius eskovac is the regional centre of southern Serbia. Covering an area of 1,025 square kilometres, the municipality has 153,064 inhabitants and an average net monthly salary of €293. There are a total of five mountains in the municipality: Kukavica, Čemernik, Suva planina, Stara planina, and Radan, as well as five rivers: Morava, Veternica, Jablanica, Pusta reka and Vlasina. Natural resources, including fertile land, mineral deposits, thermal springs and forests, are abundant in the municipality. Leskovac is also a transit centre, situated at the very crossroads of regional roads - towards Priština, Pirot and Bosilegrad – and pan-European Corridor 10 (motorway and railway). Leskovac is accessible by numerous international airports, lying 45 kilometres from Niš airport, 150 kilometres from Sofia airport and 160 kilometres from Skopje airport, while Belgrade is 288 kilometres away and Thessaloniki 320 kilometres. Leskovac boasts quite appealing market access, with close to 30 million consumers within a 300-kilometre radius. The municipality also benefits from national CEFTA membership and customs-free agreements, with access to 60 million people, and the Free Trade Agreement with the Russian Federation, which itself represents a market of 150 million people.

Leskovac ranks second in Serbia when it comes to available workforce, which stands at 20,727 people. Of these, 567 are university graduates, 946 possess junior college diplomas, 13,786 are high school graduates and 3,907 have completed middle school. There are total of 4,222 companies registered in the Municipality of Leskovac. This includes 837 limited liability companies, 796 small enterprises, 321 medium-sized enterprises and nine large companies. According to ownership structure, 61 companies are partly state-owned shareholder companies, 711 are privately-owned, 35 are public enterprises, 20 companies have mixed ownership and ten are completely state-owned. Of the town’s companies, 169 are engaged in the process-

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SLOBODAN KOCIĆ, MAYOR OF LESKOVAC: “Land lease incentives are available for investors hiring more than five workers.”

ing industry, 39 in textiles and wood processing, 32 are engaged in food production and 18 are active in the metal processing industry.

INDUSTRIAL ZONES The municipality has three industrial zones.

The North industrial zone stretches across 59.6 hectares and is one kilometre from the nearest regional road and eight kilometres from the motorway. Almost 70% of the zone is utilised, with constructed facilities occupying a total of 25.1 hectares. The zone has a mixed ownership structure.

The East industrial zone covers an area of 247.1 hectares and is located beside the M-1 regional road, near the rail track. The zone is 60% utilised and the ownership of this zone is also mixed (partly state-owned, partly privately-owned).

The South industrial zone covers 110.5 hectares and is situated between the M-1 and M-9 regional roads and the E-75 motorway. The international Belgrade – Athens rail line also runs through the site. The zone is 25% utilised and mostly privately-owned.

Land lease incentives are available for investors hiring more than five workers, submitting a valid business plan, defining the employment dynamics and providing appropriate guarantees. Incentives are as follows: an investor hiring between five and 20 employees receives €1,500 per employee; for an investor hiring between 20 and 50 employees, the incentive goes up to €2,500 per employee, from 50 to 200 employees the incentive goes up to €5,000 per employee, while an investor hiring over 200 people receives €7,000 per employee.

It takes exactly 94 days for an investor to receive relevant permits, i.e. this is how much time passes between an investor submitting a request for issuance of spatial planning act and actually being granted an operating licence. Actavis, Interlemind, Bulcvat, Interugos, Idea, and Porr Werner Weber have been the biggest investors in the municipality of Leskovac to date.

The municipality has three industrial zones

CONTACT MILORAD MLADENOVIĆ Pana Đukića 9-11 16000 Leskovac Tel: +381(0)16 200 804; 200 805 Fax: +381(0)16 252 522 Email: kabinet@gradleskovac.org; milorad.mladenovic@gradleskovac.org Web: www.gradleskovac.org; www.cityofleskovac.org Languages: Serbian, English, French & Italian

40 / The Investors Guide - Serbia 2009/2010

LOZNICA

TOWN OF POSSIBILITIES The municipality’s investment potential lies in the industrial zone – covering an area of 85 hectares – and the Lagator business and residential zone, which stretches over 20 hectares he town and municipality of Loznica is located in western Serbia. The municipality covers an area of 612 square kilometres and has 90,340 inhabitants. Loznica is 100 kilometres from the E70 motorway (Belgrade-Zagreb) and is in close proximity to pan-European Corridor 10. The municipality is also traversed by two regional roads: the M-19 and M-4. The state border with Bosnia & Herzegovina is just 1.5 kilometres from the centre of Loznica, while the state border with Croatia is around 100 kilometres away. The Belgrade – Ruma – Loznica railway connects the town to both Bosnia and Central Serbia, while the municipality is 120 kilometres from Belgrade’s Nikola Tesla Airport and 130 kilometres from Sarajevo international airport.

ECONOMY The most important industries here are textiles, wood and metal processing, machine production, construction material production and others. When it comes to accessing local markets, Serbia has 7.5 million inhabitants, Bosnia & Herzegovina and Croatia have a combined total of nine million inhabitants, while Russia – with which Serbia has concluded a Free Trade Agreement – and the CEFTA region encompass close to 210 million consumers. Investments in the machine processing industry are recommended here, due to the educational background of the workforce. In December 2008, the number of unemployed residents stood at 11,382, while the average gross monthly salary in February 2008 was €320 (€240 net). Two thirds of the unemployed people in the municipality have completed high school education. There are a total of 3,248 companies here, most of which are privately owned. A good geo-strategic position, including the proximity of the state border with Bosnia & Herzegovina, is one of the reasons why Loznica is attractive for investing. The municipality also has many natural resources, an available workforce and an efficient admin-

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istration. Furthermore, the fact that Loznica has town status brings many incentives for investors and offers significant potential for the development of tourism.

INDUSTRIAL ZONE The municipality’s investment potential lies in the industrial zone – covering an area of 85 hectares – and the Lagator business and residential zone, which stretches over 20 hectares. The Šepak industrial zone is just 1.5 kilometres from the centre of Loznica, on the border with Bosnia & Herzegovina. This zone stretches across 82.66 hectares of land, with 30 hectares infrastructurally equipped and the remaining 52.66 hectares being prepared for the installing of infrastructure. The initial lease fee for a period of 99 years is set between €7.2 and €7.4 per square metre.

Various investment incentives ensure that the land lease fee here could be as low as €1 per square metre, while the land development fee is €7.5 per square metre.

INCENTIVES The municipality will reduce the lease fee by €3,000 for each new employee an investor hires (up to 200 employees) and €5,000 for each new employee if an investor hires in excess of 200 workers. Land development incentives range from a 0.3% reduction in the fee for each new job created (not less than 60% of the total price), to payment in instalments and a 20% discount for cash payments.

PERMITS AND DEADLINES The municipality has adopted a detailed regulatory plan that ensures an investor can obtain all required permits and documentation within a 30-day period.

INVESTMENTS TO DATE The biggest investors in the municipality to date are Golden lady, Chabros, OMV, Lukoil, Farmakom MB, EkoHelenik Petroleum, Delta, and DIV Chabros.

VIDOJE PETROVIĆ, MAYOR OF LOZNICA: “A detailed regulatory plan enables required permits to be issued quite quickly.”

Employment incentives are offered to investors

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CONTACT LJILJANA NIKOLIĆ Karađorđeva 2 15300 Loznica Tel: +381(0)15 879 293 Fax: +381(0)15 882 921 Mob: +381(0)64 640 53 74 Email: ljnikolic@loznica.rs Website: www.loznica.rs Languages: Serbian & English

LUČANI

GUČA: TOURIST HOTSPOT he western Serbian Municipality of Lučani stretches across 454 square kilometres and covers most of the Dragačevo geographical region. Lučani is well connected to the rest of Serbia and neighbouring Montenegro both via road and rail links. The municipality currently has around 25,000 inhabitants, with almost half of the workforce active in agriculture.

A quarter of the available workforce works in industry,while a quarter is employed in the remaining economic branches. Lučani is famous for its trumpet festival: Sabor trubača (The Trumpeters’ Assembly), which could be an interesting investment opportunity in itself. The dominant branches in the municipality are agriculture, the processing indus-

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CONTACT MILOŠ VELANAC JNA 5, 32240 Lučani Tel: +381(0) 32 817 151 Fax: +381(0) 32 817 151 Mob: +381(0) 63 660 281 Email: led.solucani@sezampro.rs Web: www.lucani.rs Languages: Serbian, English, German, Russian & French

LJIG

Lučani is well connected to the rest of Serbia and neighbouring Montenegro

MORE THAN ŠLJIVOVICA! jig is a town and municipality in central Serbia’s Kolubara County. It covers an area of 279km2. The Town of Ljig has a population of around 3,000, with a total of 14,629 residents in the municipality. Ljig has an excellent geographical position and transport access. The municipality is linked, via the Ibarska A-road, to Belgrade (80 km), Čačak (70 km) and Kraljevo (120 km); and via a regional road to Valjevo (38 km). Locally, Rajac Mountain is only 10 km away and Banja Vrujci is just nine kilometres away. Ljig is situated 150m/asl and has a very favourable position for agriculture. It is renowned for its top quality homemade šljivovica (plum brandy) and famous plum orchards. The municipality has over three hundred registered orchards, 80% of which are plum plantations.

The municipality has a large number of companies operating in the field of industrial production, with building materials production, metal processing, the food industry and tourism represented. Underexploited capacities exist in the fields of leather processing and agriculture goods. Sites of specific potential include stone and aggregate deposits; thermal mineral springs with substantial reserves as deep as 850

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CONTACT MIROSLAV MAKSIMOVIĆ, Municipal President Vojvode Mišića 116, 14240 Ljig Tel: +381 (0) 14 85 044; 85 015 Fax: +381 (0)14 85 030; 84 144 www.ljig.rs

try, the chemical industry and several smaller industries. The municipality’s workforce has a diverse educational background and the municipality has a large industrial zone with complete infrastructure.

“Municipal authorities provide all sorts of incentives depending on the number of workers that an investor hires and we are ready to take any kind of investment, with the exception of socalled dirty technologies,” says Municipal President, Slobodan Jolović.

Plans are also in place to construct an industrial park here and it is worth mentioning that the municipal authorities are issuing permits to potential investors in the shortest time possible.

42 / The Investors Guide - Serbia 2009/2010

metres. Ljig has great tourist potential. The industrial zone site should be in the vicinity of the Ibarska A-road, while there are also plans for the development of rural tourism in the municipality’s outlying villages. Moreover, local Ljig authorities are set to commence work on repairing the municipality’s section of the main BelgradeUžice-Adriatic coast road, which will significantly improve the area’s investment potential.

Ljig Spa, one of only eight spas holding all necessary licenses, has a confirmed regulatory development plan with separated areas for the construction of apartments, hotels, chalets, sports fields, camp sites and rural tourism. Investment projects for Ljig Spa include the building of a covered hotel pool, construction of a hotel complex, redevelopment of the existing conference centre and building of sports fields, as well as the upgrading of the existing medical building, an apartment building with three-star resort facilities and construction of public baths and an aqua park. Investment plans on Mount Rajac are already in progress. Investments are hoped to be lured in rural tourism facilities and excursion organising, as well as congress, recreational, educational and winter tourism.

LJUBOVIJA

RASPBERRIES & TOBACCO he Municipality of Ljubovija is located in western Serbia on the right bank of the River Drina. It borders five other Serbian municipalities: Mali Zvornik to the northwest, Krupanj to the north, Osečina to the northeast, Valjevo to the east and Bjelovar to the south.

Across the Drina, Ljubovija borders Bosnia’s Republika Srpska – municipalities of Bratunac and Srebrnica. Ljubovija belongs to the Mačva County, which also includes Šabac, Bogatić, Loznica, Vladimirci, Koceljevo, Mali Zvornik and Krupanj. The municipality is relatively small, covering just 356 square kilometres. According to the 2002 census, the town of Ljubovija has a population 4.130, while the municipality has a total of 17,232 inhabitants. The municipality has a favourable geographical position and is located on the main Belgrade – Bajina Bašta road, which is western Serbia’s main communication route. Belgrade is 210km away via Šabac, and 158km away via Valjevo, Osečina and Pecka.

Agriculture remains the most important economic activity in the municipality, providing the greatest contribution to average income among

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all economic activities. Though the percentage of the population engaged in agricultural activities is constantly decreasing, it remains the most numerous. Moreover, agricultural yields are increasing thanks to the introduction of new varieties, modern mechanisation and technology to vegetable farming and fruit growing operations.

Almost all households are currently involved in growing raspberries, while the same records of success records available for tobacco growing.

Municipal territory includes land that the local authorities are ready to offer potential investors.

The future industrial zone, which already houses a number of companies, offers possibilities for the realisation of numerous projects and the municipality is seeking serious investors. The industrial zone is located along the main M-19 (Zvornik – Bjelovar) road and the border with neighbouring Republika Srpska. The aforementioned area of the industrial zone includes free capacities: warehousing space, halls and office space, as well as some workforce capacities in a number of companies and agricultural co-operatives

RESOURCES & INFRASTRUCTURE ajdanpek’s main advantages are its natural resources, geographical position and cheap, well-trained workforce. The municipality covers an area of 932 square kilometres. The most important transport routes here are the M-24 and M-25.1 regional roads, the R-104, R-104A and R-106 roads.

There is the 54-kilometre-long section of the River Danube runs through the northern part of the municipality, while the E-75 motorway (pan-European Corridor 10) is 131 kilometres away via Požarevac and 170 kilometres away via Paraćin.

INDUSTRIAL ZONE Majdanpek’s industrial zone currently covers an area of 80 hectares, though the municipal authorities plan to extend it to include an additional 22.5 hectares. Some 15% of the zone’s land is

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privately owned, while 85% is state-owned and the zone has partial infrastructure. Municipal authorities plan to construct industrial zone facilities (Phase II) for use by companies engaged in secondary and tertiary economic activities.

Moreover, some 30 to 100 hectares of the zone are suitable for light processing industries, warehousing, services and other teritary economic activities.

INCENTIVES “Investors are exempt from paying local taxes and fees for a period of between one and three years, depending on the economic branch in question and the number of local workers to be hired,” says Municipal President, Dragan Popović. Deadlines for issuing required permits are as follow: Act on Spatial Planning – up to 30 days; environmental impact evaluation – up to six months; building permit and registration of construction works – up to 8 days.

A 54km long section of the River Danube runs through the northern part of the municipality

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CONTACT MIROSLAV NENADOVIĆ, Municipal President Vojvode Mišića 48, 15320 Ljubovija Tel: + 381 (0) 15 661 960 Fax: +381 (0) 15 662 870 Tel/Fax: +381 (0) 15 661 411

MAJDANPEK

CONTACT VESNA MARTINOVIĆ, deputy municipal president Svetog Save bb, 19250 Majdanpek Tel: +381(0) 30 581 240 Fax: +381(0)30 581 580 Email: zamenik_predsednika@ opstinamajdanpek.rs Website: www.majdanpek.rs Languages: Serbian & English

MALI ZVORNIK

BORDER MUNICIPALITY The municipality has an industrial zone and offers various incentives for investors he Municipality of Mali Zvornik is situated in central Podrinje, western Serbia.

The municipality stretches across 184 square kilometres and, according to the 2002 census, has 14,076 inhabitants. Mali Zvornik has a relatively favourable transport and strategic position, though its potential is quite underexploited. The municipality also has an important transit and border position, linked as it is to neighbouring Republika Srpska (Bosnia) via three bridges – rail, road and pedestrian. The municipality’s good energy potential is offered by the River Drina and hydro-electric capacities (the Zvornik hydro-electric power plant and mini reservoir on the River Radaljska). The area boasts abundant natural resources, a sufficient workforce, developed wood and metal processing industries and mineral raw materials.

Development of the tourism sector is supported by Mali Zvornik’s beautifully preserved nature, Drinsko Lake, Radaljska Spa, its rich historic and cultural heritage, distinctive local cultural identity, good quality agricultural produce and food, quality mineral springs and possibilities for the development of health and spa tourism at Radaljska Spa.

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MILAN TODOROVIĆ, PRESIDENT OF THE MUNICIPALITY OF MALI ZVORNIK: “We would like to recommend investments in the production and processing of organic food,”

and mining (83.8%), while the rest is engaged in non-production sectors. Industry represents the greatest portion of the economic structure: 48%, followed by trade: 18%, agriculture: 10 - 25% and construction: 8%. Tourism, as an economic branch with almost completely untapped potential, accounts for 3.5%. The municipality’s dominant economic branches are industry, mining, agriculture, fishery, trade, construction, transport, catering, tourism, arts and crafts, financial services and other.

INDUSTRIAL ZONE Mali Zvornik has an industrial zone that investors can use to build their own facilities, as well as incentives offering exemptions from paying certain municipal fees or making available loans from the municipal development fund. We would like to recommend the following branches for investing: production and processing of organic food, bottling of natural mineral water, production of electricity and construction materials, and wood processing.

Possibility of obtaining municipal development fund loans

CONTACT BRANKO RADIĆ Kralja Petra I 38 15318 Mali Zvornik Tel: +381(0)15 471 859 Fax: +381(0)15 471 885 Mob: +381(0)64 80 46 210 Email: opstmzv@ptt.rs Website: www.malizvornik.org Languages: Serbian & English

ECONOMY The municipality’s economy is based on small scale industrial capacities and the utilisation of local natural resources. Most of the working population is employed in industry 44 / The Investors Guide - Serbia 2009/2010

INCENTIVES The municipality can issue building permits in the shortest possible time, providing an investor has acquired necessary permits and approvals from state ministries and public enterprises.The top investors in Mali Zvornik to date are PP ‘MN’, PP ‘Zajača ing’, ‘Tehnika’, private investors Darko Tadić from Belgrade and Slaviša Veselinović from Ljubovija, ‘VIR’ and ‘Frutiko’.

MALO CRNIĆE

SMALL MUNICIPALITY; GREAT AMIBITIONS alo Crniće municipality is among the smaller municipalities in Serbia and belongs to the Branicevo County. It covers an area of 279km2 and has 18,610 inhabitants reisding in the the municipality’s 19 settlements. Malo Crniće includes a wide, fertile valley banking the main flow of the River Mlava, which widens through the valley. The valley entrance is surrounded by low hilland, while a its end towers the Homolje mountains. At the centre of the muncipality lies the small town of Mali Crnić, which is in close proximity to neighbouring municipal centres of Požarevac, Petrovac, Kučevo, Veliko Gradište and Žabari. More than 3,500 residents of Malo Crniće Municipality are currently working temporarily in the European Union. The adoption of strategic planning documents of the Municipality of Malo Crniće are proof that the municipality is aiming to keep pace with development trends and preparing to welcome Serbia’s Euro-Atlantic integration. The greatest natural resources of this

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municipality are fertile land, water resources and areas of unspoilt nature. Local authorities have adopted a decision to develop the Spatial Plan of the Municipality of Malo Crniće. An integral part of this decision relates to the programme to develop the Spatial Plan in accordance with the Law on Planning and Construction. Moreover, a decision has been taken to adopt local strategies for the sustainable development of Malo Crniće for the period 2009 - 2013. The final draft strategy was developed in conjunction with a local partnership team, the coordinator of working groups, working groups and regional development experts, along with the council leadership and municipal coordinator. This document presents the needs of the municipality and its inhabitants in the coming years. Malo Crniće leaders have also identified opportunities for the development of tourism based on nature trips, short breaks and health holidays (rural, ethnic, ecological, recreational and hunting).

FULLY SUPPORTING INVESTORS edveđa Municipality is located in southern Serbia’s Jablanički County on an area of 524.23 square kilometres. It has a total of 10,760 inhabitants and is traversed by the Priština-Leskovac regional road. The municipality boasts economic zones with industrial facilities, which is situated on the right bank of the River Jablanica and is fully equipped in terms of infrastructure. The site of the Banja Sijarinska spa resort has been earmarked as the location for construction of factories – one for the production of mineral water and one for liquid CO2 gas. The site already has a water supply and energy network.

Support to investors in the Municipality of Medveđa is evident in the effective local administration, which ensures that investors can obtain construction permits within 60 days.

Taxes in Medveđa are the same as in other parts of Serbia. However, plans envisage a

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10-year tax exemption for investments in excess of €7.5 million that create 100 new jobs, as well as exemption from excise duties on equipment and raw material.

“Depending on the type of operations the investor intends to set up and whether it is a geenfield or brownfield investment, the deadline for obtaining necessary permits ranges from 15 to 30 days,” says Slobodan Drašković, president of the municipality.

MB FARMAKOM Šabac, new owner of the Lece Mine in Medveđa, has commenced operations. This was a brownfield investment worth nine million Euros and the new owners intend to employ 200 new workers in the first phase. Russian investor, Adriatic Stroinvest, has begun construction of a luxury 5-star hotel at Sijarinska Banja. This greenfield investment is worth €4.5 million.

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CONTACT DR ESIDOL PERIĆ, Municipal President Marsala Tita 80, 12311 Malo Crniće Tel: +381 (0) 12 280 009 Fax: +381 (0) 12 280 006 www.opstinamalocrnice.org

MEDVEĐA

CONTACT SLOBODAN DRAŠKOVIĆ, Municipal President Jablanička 48, 16240 Medveđa Tel: +381 (0) 16 891 197 Email: somedvedja@yahoo.com Dejan Simić Jablanička 48, 16240 Medveđa Tel: +381 (0) 16 891 138; Fax: +381 (0) 16 891 106 Mob: +381 (0) 63 119 18 06; Email: dejan.simic@ptt.rs; www.medvedja.org.rs Languages: Serbian, English, French, Russian & German

MEROŠINA

DOMINANT AGRI SECTOR

The Oblačinsko Lake, which covers an area of 23 hectares and reaches depths of 4.7 metres, has the greatest tourism potential in the municipality erošina Municipality covers an area of 193 square kilometres and has 14,812 inhabitants. The Niš-Prokuplje regional road runs through the very heart of the municipality and links it further to the Belgrade-Niš motorway (pan-European Corridor 10), which represents one of the municipality’s main advantages. Fruit farming represents the dominant economic branch here, while the privately-owned companies that represent the local industrial sector are mainly located in a designated industrial zone at the foot of Mramorsko Hill. These companies cover metal and construction mate-

M CONTACT SLOBODAN TODOROVIĆ Cara Lazara 17, 18252 Merošina Tel. +381(0)18 892 004; Fax: +381(0)18 892 035 predsednikopstmer@jotel.co.yu Website: www.merosina.org.yu Languages: Serbian, English & Russian

MIONICA

rials production, food processing, warehousing, construction material depots and a cold storage plant. The Oblačinsko Lake, which covers an area of 23 hectares and reaches depths of 4.7 metres, has the greatest tourism potential in the municipality. There is also the Mali Jastrebac Mountain, which is just 12 kilometres from the centre of Merošina. The mountain is ideal for hiking, winter sports, camping and hunting.

The General Spatial Plan envisages the development of an industrial zone with partial infrastructure (it has water and electricity supply, a sewage system and telephone landlines).

TOURISM & AGRICULTURE The municipality is quite efficient when it comes to issuing required permits and can offer good sites for the construction of various facilities he Municipality of Mionica is 80 kilometres south of Belgrade in western Serbia.

It covers an area of 329 square kilometres and has a population of 16,785. Over 60% of the municipality’s population is engaged in agriculture. There are several regional roads in close proximity to the municipality, including the important Ibarska A-road, which is just 20 kilometres from Mionica. There is also the Belgrade-Bar railway and a small airport seven kilometres away in Divci. The municipality has beautifully preserved nature, which offers good potential for the development of tourism, as well as the development of organic food production. There are several construction projects

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CONTACT MILAN MATIĆ, President of the Municipality of Mionica Vojvode Mišića 30, 14242 Mionica Tel: +381(0)14 62 020; 62 666 Fax: +381(0)14 62 241 Email: somionica@ptt.rs Website: www.mionica.rs, Languages: Serbian, Russian, English & French

(rehabilitation facilities, swimming pools) going on in nearby Vrujci, where the water has healing powers and is beneficial to the treatment of rheumatism, nervous tension and high blood pressure. There are also thermal springs in Lepenica (two kilometres from Mionica) and a sports and recreational centre is currently being built there.

Mionica doesn’t have an industrial zone, but municipal authorities are quite efficient in issuing relevant permits. This procedure usually takes up to 15 days.

The municipality has three industrial zones

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The biggest investors operating in the municipality to date are Slovenian Cimos, Sinalco from Germnay, Voda-voda, MB Consulting, Delta and others.

RENEWABLE ENERGY

NEGOTIN

Negotin’s industrial zone stretches across 46.5 hectares and is suitable for production facilities, warehousing and storage he Municipality of Negotin is the geographic heart of the Negotinski County and covers an area of 1,089 square kilometres beside the tristate border between Serbia and neighbouring EU countries Romania and Bulgaria. Negotin is 260 kilometres from Belgrade, 160 kilometres from Niš, 65 kilometres from Bor and 60 kilometres from Zaječar. Negotin is also 136 kilometres from the nearest motorway, though it is just 10 kilometres from the Prahovo Harbour on the River Danube, which is arguably the most important comparative advantage of the municipality.

ECONOMY The privatisation process is still in its infancy in the municipality, though the largest company here – chemical company Prahovo – was privatised two years ago. Small enterprises account for a significant share of the total economic activity in the municipality, while there are around 1,000 private entrepreneurs and over 200 companies registered in the municipality. The municipality’s greatest potential lies in the River Danube and its favourable geographical position, which make it suitable for wind farms and agriculture. The Danube, one of the most important natural resources in the municipality of Negotin, is about 10 km from the town itself and represents an important European waterway, which offers great opportunities for the development of industry, transportation and tourism.

INDUSTRIAL ZONE The Negotin municipality has an industrial zone that covers an area of 46.5 hectares and is intended for production activities, storage facili-

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ties, warehouses and other commercial properties.

A section of the zone covering 29.5 hectares has constructed roads, running water and electrical supply, while plans for the remaining 17 hectares envisage the construction of a sewage system and continuation of the existing water system, electricity grid with public lighting, roads and telephone lines. The National Investment Plan has granted financial assistance to realise plans for the industrial zone. The advantages of the industrial zone lie primarily in its vicinity to main roads, the local railway station and the Prahovo Harbour on the Danube (part of pan-European Corridor 7). The industrial zone is situated 136 km from Corridor 10 and 150 km from the Niš Airport.

INCENTIVES The land lease fee for the industrial zone is 1 dinar per square metre. The low level of this fee reflects the efforts of the municipal authorities to entice as many investors as possible to the municipality.

PERMITS & DEADLINES The municipal administration will provide necessary support to potential investors, particularly when it comes to issuing permits.

INVESTMENTS TO DATE The biggest investor in the municipality is certainly Greek company Neochimiki L.V. Lavrentiadis S.A., which acquired the Prahovo chemical company two years ago. Several investors have expressed interest in building wind farm power plants on Popadija Mountain, as well as considering investing in smaller factories. Quite a few investors have already invested in agricultural production and leased arable land.

The Harbour on the River Danube is the most important comparative advantage of the municipality

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RADMILA GEROV, PRESIDENT OF THE MUNICIPALITY OF NEGOTIN: “The land lease fee for the industrial zone is 1 dinar per square metre.”

CONTACT OLGA PREDIĆ Trg Stevana Mokranjca 1 19300 Negotin Tel: +381(0)19 544 171; 544 000; 542 024 Fax : +381(0)19 541 386 E-mail: ouc.negotin@yahoo.com Website: www.negotin.rs Languages: Serbian & English

NIŠ

REGIONAL INDUSTRIAL CENTRE The city authorities will build and redevelop the required infrastructure for an investor wanting to develop untapped production capacities he City of Niš covers an area of 596.71 square kilometres and has over 250,000 inhabitants. It is the administrative centre of the Nišavski County and the regional centre of southeast Serbia. It is located on the crossroads of the most important Balkan and European transport routes.

INDUSTRIAL ZONE The General Spatial Plan for the City of Niš envisages 12 investment locations (of a total of 26) for industrial and service activities. The total surface of these 12 locations is 687 hectares.

The Donje Međurovo Industrial Zone stretches across 10 hectares and is equipped with most of the required infrastructure. The technology park in Niš is known for its production of electronic equipment and electrical components for the car industry and IT sector. The Sever industrial zone is located at the intersection of the pan-European Corridor 10 motorway and the rail lines Belgrade–Niš–Sofia–Istanbul and Belgrade– Niš–Thessaloniki–Athens. This zone covers an area of 174 hectares and is mostly privately-owned.

The zone has complete infrastructure and a partially developed secondary network.

INCENTIVES The City of Niš will assign each investor with a personal assistant to provide assistance throughout the entire investment process. The construction land lease is 0.5% lower for an investor hiring workers for a period of at least four years. The lease is paid in five equal annual instalments, with the interest rate determined by the National Bank

T MILOŠ SIMONOVIĆ, MAYOR OF NIŠ: “The City of Niš will assign each investor with a personal assistant to provide assistance throughout the entire investment process.”

of Serbia. The city authorities will build and redevelop the required infrastructure for an investor wanting to develop untapped production capacities. There are special incentives for investing in the Donje Međurovo Industrial Zone. The lease fee here depends on the number and location of a land plot. In the case that an investor leases an entire plot in the Donje Međurovo zone, the fee is just 2,000 dinars.

An investor is granted a two-year-grace period beginning on the day that the lease contract is signed, with an investor having to pay at least 20% of the fee that has been ascertained in the public auction. The remaining 80% is paid after expiry of the grace period in six equal semiannual instalments. The deadline for utilising construction land is set between two and five years, depending on the agreed duration of the lease. In case an entire location is leased, the deadline can be extended.

PERMITS AND DEADLINES All required permits will be issued within two months.

INVESTMENTS TO DATE Total investments made in the city of Niš in 2006 were valued at 150,509,490.00 dinars, with the most money invested in new capacities, reconstruction, construction works, imported equipment and maintenance activities.

The biggest investors so far are Philip Morris International, OMV, EKO petrol, Lukoil, Interex, Metro, Mercator, Mina Corporation, Mr. Bricolage, McDonalds and others.

Special incentives are envisaged for investing into the Donje Međurovo

CONTACT MILAN RANĐELOVIC, MBA, Head of the Local Economic Development Office, Niš Obrenovićeva 38, first floor 18 000 Niš Tel: +381(0)18 209 239 Fax: +381(0)18 209 240 Mob: + 381(0)64 833 00 30 Email: milan.randjelovic@gu.ni.rs Website: www.kler.ni.rs Languages: Serbian, English, Spanish & Bulgarian

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NIŠKA BANJA

TOURISM & RECREATION iška Banja is located 10km southeast of Niš, near the confluence of the rivers Nišava and South Morava. It has a temperate-continental climate, covers an area of 145km2 and is home to just over 15,000 residents. Niška Banja’s transport infrastructure includes well developed road, rail and bus lines. Rail and road routes are part of the main Balkan routes Belgrade-Niš-Sofia-Istanbul and Belgrade-Niš-Skopje-Thessalonica-Athens.

Niška Banja is 12km from Niš’s Constantine the Great Airport. This spa town boasts a thermo mineral spring with natural mineral water and mineral-rich mud. The local mineral water, sourced from five individual springs, belongs to the group of ground-alkali homoeothermic waters (36-38 ° C), slightly mineralised and with a capacity of 56 litres per second.

The spa’s clinical centre is located in a sunken area of green forests stretching over an area of more than 70 hectares. The most significant potential and the greatest opportunities for investments are in the area of health tourism, sport tourism, congress tourism, hotels and catering.

Plans have been devised to construct infrastruc-

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ture for tourism development. So far, the municipality has co-operated with the European Agency for Reconstruction, USAID and the Government of Denmark through the project LEDIB. Potential locations for investment include the sports recreation centre Ada Ženeva (construction of artificial lakes for recreation and water sports, along with a hotel, catering and sports facilities); recreation centre Lozni Kalem (Aqua Park with outdoor and indoor swimming pools, specialised restaurants, hotels with leisure centres, a conference centre and grounds for recreation and sports); construction of recreational sports complex Vrtop (open-air and covered tennis courts, cafe and restaurant with gym and Wellness Centre); Ethno village Koritnik (construction of an ethno village with appropriate hotel and catering facilities, artificial lake and opportunities for hunting, hiking and extreme sports, such as paragliding, shooting, mountain biking, skydiving). Other needed tourist and tourism/recreation facilities include the Bojanine Vode complex on Stara Planina (ski centre, mountain chalets, catering and other contents).

APSOLUTE CENTRE OF SANDŽAK

CONTACT ZORAN VIDANOVIĆ, Municipal President; c/o Marina Jović Sinđelić 3, 18205 Niška Banja Tel: +381 (0) 18 45 48 108, Fax: +381 (0) 18 45 48 629 vzoran@gu.ni.rs; sonbanja@bankerinter.net www.goniskabanja.org.rs Languages: Serbian & English

NOVI PAZAR

Ideal location for textile industry investments ovi Pazar is the economic and cultural centre of the Sandžak Region. The municipality has a population of around 125,000, while the town of Novi Pazar has a distinctive culture, history and tradition. The municipality is located 290 kilometres south of Belgrade, on the road to Podgorica and the Adriatic Sea via the Ibarska A-road. The whole area has abundant natural resources.

Plans are in place to reconstruct the Novi Pazar-Sjenica and Novi Pazar-Tutin regional roads, while the National Investment Plan has confirmed it will grant funds for construction of the Belgrade – Bar motorway that will pass between Sjenica and Novi Pazar. Works are set to be completed by 2016.

Novi Pazar’s economy is dominated by retail activities, the processing industry (primarily

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textile and leather processing and furniture making), as well as transport and tourism.

The local private sector is quite well developed and extremely diverse, with the number of small and medium-sized enterprises currently standing at 6,000.

The industrial zone is still state-owned, but the process of privatising this land is currently underway. The zone is equipped with relevant infrastructure.

“Our advantages lie in an educated workforce, expeditious issuing of required pevrmits and various stimulative measures,” says Mirsad Đerlek, Mayor of Novi Pazar. The economic branches considered suitable for investing are as follows: the processing industry (particularly textile and leather processing), agriculture, organic food production and tourism.

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CONTACT EDIN KALAČ, Head of the Local Economic Development Office; Stevana Nemanje 2 36300 Novi Pazar Tel: +381(0) 20 313 644, ex. 147 Fax: +381(0) 20 331 942 edin.kalac@novipazar.org.rs Website: www.novipazar.org.rs Languages: Serbian & English

NOVA VAROŠ

ENVIRONMENTALLY FRIENDLY

This is an excellent location for the development of health, sports and recreational tourism BRANISLAV DILPARIĆ, PRESIDENT OF THE MUNICIPALITY OF NOVA VAROŠ: “The municipality will issue all relevant permits within 30 days.”

he Municipality of Nova Varoš is situated in southwest Serbia at the very heart of the Zlatibor County. It borders Zlatara, Golije, Javor, Čemernica, Mučanj, Murtenica and Zlatibor mountains. The River Lim runs through Nova Varoš’s southwest section. The municipality is predominantly a mountainous region, with a pronounced gradient of territory. There are three lakes on the River Uvac –Uvačko, Zlatarsko and Radoinjsko lakes with a hydro-electric power plant. The municipality covers an area of 581.47 square kilometres and has 19,982 inhabitants. It is linked to neighbouring municipalities via regional roads, while the Belgrade – Bar railway runs 15 kilometres from Nova Varoš.

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ECONOMY Nova Varoš has exceptional natural tourist potential, included a well like preserved countryside, over 500,000,000m3 of top quality water in many lakes and springs, villages that are suitable for rural tourism and the Zlatar Mountain, which is ideal for the development of health, sports and recreational tourism. The municipality lies right in the middle of the Belgrade – Adriatic Sea road, ensuring its suitability for transit tourism. The mountains of Zlatibor and Tara are already among the most popular tourist destinations in Serbia, while there is also a possibility of establishing co-operation with the nearby municipalities of Prijepolje, Priboj and Sjenica, which share natural resources and exceptional cultural heritage with Nova Varoš. Other attractive tourist locations

are Zlatar, Pešter, the Mileševa Monastery, the Banja Monastery, the Davidovica Monastery, church log cabins and Sopotnica. The municipality has good hydro-potential and quality woods. As a mountainous and environmentally clean region, Nova Varoš is suitable for the production of organic food (especially meat, milk and dairy products, potatoes, carrots, raspberries, forest and medicinal herbs). The most developed industrial branches in the municipality are wood processing, plastic materials processing and the machine parts industry (car parts, hydraulics and pneumatics). Most of the workforce has completed high school education.

INCENTIVES The following industrial branches are suitable for investing: wood processing, cultivation and processing of medicinal herbs, meat, milk and dairy production, fish ponds, bottling of natural water, tourism (building tourist facilities on Zlatar Mountain), construction of a sports hall at 1,000 metres altitude that needs to be finished, growing and processing potatoes and carrots, livestock breeding, etc.

Nova Varoš has exceptional natural potential for the development of tourism

CONTACT MILOVAN GLAVONJIĆ Karađorđeva 32, 31320 Nova Varoš Tel: +381(0) 33 62 140; 62 142 Fax: +381(0)33 62 140; 62 142 Email: ounvaros@gmail.com Website: www.novavaros.rs Language: Serbian & English

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PERMITS AND DEADLINES The municipality will issue all relevant permits within 30 days.

INVESTMENTS TO DATE The biggest investments in Nova Varoš to date are represented by Interkomerc Belgrade (production of briquettes) and Etno point Belgrade (constructing an ethno-village).

OSEČINA

PRIMARILY AGRICULTURE he western Serbian town and municipality of Osečina are bisected by the main Valjevo - Loznica road and planned railways connecting these same municipalities. Osečina is 32 kilometres northwest of Valjevo, via Loznica, and 130 kilometres south of Belgrade. The small town of Osečina has around 3,500 residents, while the municipality as a whole has over 15,000 inhabitants.

The municipality occupies an area of 319km², with agricultural land covering 21,100 hectares and forests occupying 9,151 hectares. According to 2004 figures, the municipality had 1,826 residents registered as employed and Osečina boasts 14 primary schools and a secondary school.Apart from the central town of Osečina, which also houses the municipal headquarters, one other noteworthy settlement is the village of Pecka, which has around 500 inhabitants and is located around 15 kilometres from Osečina via the regional road to Ljubovija. Some 75% of the municipality’s working population is engaged in agriculture, while agriculture is a secondary activity for more than 1.000 inhabitants. Osečina has about 3,300 ag-

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ricultural households, 2,800 of which are registered. The municipality’s geographic structure can be divided into three areas: mountain area covers around 60% of the territory, undulating lowlands covering about 20%, while hilly mountain rises cover the remaining 20% of the territory. The most common types of fruit grown commercially in Osečina are plum, raspberry and blackberry. There are also great opportunities for livestock farming, particularly sheep breeding. The whole area is rich in herbs and natural habitats, wild fruits and many types of edible fungi, making it ideal for the production of healthy food. On the basis of a submitted planning document, Osečina has received funds from the National Investment Plan for projects: construction of a main drainage tunnel to clear vegetation up to the bus station; building of open sports fields and children’s playgrounds; installing heating and a ventilation system for the hall of the Osečina sports centre; the project “Change the picture of Serbian villages Rural development”. Osečina hosts the popular annual Plum Fair each August.

HUGE OPPORTUNITIES P

araćin has 58,301 inhabitants and is located in central Serbia by the River Crnica. It is 156 km from Belgrade via international highway E-75 (Corridor 10), 130km from Bulgaria and 190km from the border with Romania. The municipality covers 542 square kilometres, of which 58.12% is agricultural land, 0.03% forest and 38.75% other.

Paraćin Municipality’s economy has a long industrial tradition of over 120 years and is renowned for the production of textiles, glass, cement, confectionery, food products and building materials, as well as electric power equipment and textile equipment. The municipality has a strong agriculture sector, small industries, trade and tourism.

The municipality is rich in raw materials for the local Novi Popovac cement factory, gravel from the Great Morava and stone/limestone for the needs of the glass factory.

There is a huge space and ample resources for the development of eco-tourism, the exploitation of forest fruit, bottling water, etc. Paraćin has several industrial zones at very good locations and with more or less complete infrastructure, electricity, gas power and water. The main

zones are near the city centre or along the main roads. The Old Glavica (2km from city centre), “bank” at Sinđelić bb, the Hall at the motorway junction (at the exit from Paraćin), two locations of Dejan Stanojević - Zmic (along the road to Ćuprija), IMPEX d.o.o. at Vidovdanska bb (1.5 km from the railway station), Location KAMGARN, with the textile mill complex, situated across the railway track, 1.5 km from the city centre, “Professional” warehouse, located near the entry ramp for motorway towards Niš, “Scandinavia” Moravia Street, just behind the railway station, 1 km from the city centre (available Lend area 1 ha), commercial buildings of Serbian glasswork Paraćin (basement, ground floor and three floors covering a total area of 4x309 m2), Workshop Optic Glass, Serbian glassworks – Paraćin and several other attractive places. The companies that have invested in Paraćin so far are Holcim d.o.o. Switzerland (cement), Dalle Carbonare s.p.a. Italia (textiles), ROFIX d.o.o.

Austria (building materials), Rubin Bulgaria (glass), Pionir Paraćin, etc.

All necessary permits could be approved and issued in a period from seven to 30 days.

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CONTACT NENAD STEVANOVIĆ, Municipal President Karadjordjeva 78, 14255 Osečina Tel: +381 (0) 14 51 130 Fax: +381 (0) 14 51 158 nenad.stevanovic@osecina.co.rs www.osecina.com Languages: Serbian & English

PARAĆIN

CONTACT SAŠA PAUNOVIĆ, Municipal President Tome Živanovića 10, 35250 Paraćin Tel: +381 (0) 35 63 007; 35 563 601 Fax +381 (0) 35 563 165 www.paracin.rs

PETROVAC NA MLAVI

MINERAL DEPOSITS & THERMAL SPRINGS

The municipality has assigned land plots along the regional road for the construction of production facilities he Municipality of Petrovac na Mlavi covers an area of 655 square kilometres and has 46,414 inhabitants. The municipality has signficiant coal, sand and gravel deposits, as well as modest reserves of contruction materials. The Mlavsko-Petrovački basin has substantial lignite and dark brown coal deposits, while on the Homolja Mountain there are deposits of limestone sand. The municipality has an extensive hydrographic network (the rivers Mlava, Busur, Vitnovnica and Šetonjska, which are environmentally clean). There are also three small manmade lakes called Busur, Korenica and Ždrelo, which are used to regulate torrents

T CONTACT RADIŠA DRAGOJEVIĆ, Municipal President Srpskih vladara 165 12300 Petrovac na Mlavi Tel: +381(0)12 331 280 Fax: +381(0)12 331 283 Mob: +381(0)64 86 79 800 Email: Info@petrovacnamlavi.rs www.petrovacnamlavi.rs Language: Serbian & English

POŽAREVAC

FOOD & ENERGY T

CONTACT MAYOR MIODRAG MILOSAVLJEVIĆ Drina 2, 12000 Požarevac Tel: +381 (0) 12 539 601 Fax: +381 (0) 12 539 622 Email: mmilosavljevic@pozarevac.org.yu www.pozarevac.rs Languages: Serbian & English

and as flood protection. Ten kilometres from Petrovac, towards Žagubica, there is a thermo-mineral spring with exceptionally high quality water (40 degrees Celsius) that can be used for medicinal purposes in treating chronic illnesses, as well as as bottled water. Agriculture and the food production industry mark the dominant economic branches in the municipality. We would also like to emphasise the production of honey, livestock breeding and viticulture. The municipality has assigned land plots along the regional road for the construction of production facilities. The deadline for issuing operating permits is six months.

he City and Municipality of Požarevac is located in eastern Serbia’s Braničevo County, 80km from Belgrade. It covers an area of 481km2 and is home to around 75,000 residents. Due to its geo-strategic position and land configuration, the municipality has a developed traffic and transport network, encompassing all forms of transport except air travel. Požarevac is located on a very important rail route (Belgrade-Bor-Zaječar), which connects it to the Timok area and the whole of eastern Serbia. Požarevac lies at the confluences of the rivers Velika Morava and Danube and Mlava-Danube. It offers exceptional conditions to utilise waterways as transport routes to connect to other parts of Serbia. The transportation of goods by river is handled through three local ports: Dubravica, Kostolac and Ram. The municipality offers excellent farming opportunities, with rich agricultural land covering 73.6% of the total area – of which arable fields account for 97.8%.

Coal lignite is the most important energy potential of the area and is set to retain its dominant role of energy in the long term. Kostolac basin has four lignite layers with a Kj/Kg value of 2,400.

Pozarevac is one of Serbia’s most important cities. Renowned for food and energy production, 52 / The Investors Guide - Serbia 2009/2010

various services and infrastructure capacities are also developed in Požarevac. Agriculture, together with plant and animal rearing, is represented on 38,000 hectares of arable land. The food industry is particularly developed and industry flag bearers in the municipality include Bambi, Žitostig, MIP, Fruit Product, et al.

The metal industry here produces parts for agricultural machinery, but is also represented by the repair industry in the Kostolac and Požarevac.

The city is currently undergoing development of an SME economy, with construction and agricultural production in the ascendency.

The Development Fund of the Republic of Serbia has placed priority on programmes contributing to the development of rural settlements, tourism, export incentives and agricultural production. Moreover, the Spatial Plan has placed special importance on the Kostolac Basin, while the Republic of Serbia plans to support work on the Great Morava in order to extend navigation infrastructure towards central Europe. Finally, the Spatial Plan of Serbia calls for construction of main circular road covering Pozarevac-ŽagubicaBor, while the Požarevac ring road has already been completed.

PIROT

LOGISTICAL SUPPORT Investors building within the boundaries of the free zone are exempt from paying various fees he Municipality of Pirot has a good geostrategic position and is well connected to road and rail routes, with the E-80 international road, pan-European Corridor 10 and the M-9 regional road all passing through the municipality. There is also the Niš – Pirot – Sofia railway (a section of the Budapest – Belgrade – Skopje – Athens and Ljubljana – Zagreb – Belgrade – Skopje – Athens rail routes). Finally, the airports of Niš and Sofia are just 70 kilometres from Pirot. The municipality has a population of 64,000 and covers an area of 1,235 square kilometres. The municipality’s advantages include a favourable geographic position, a detailed General Spatial Plan, an established Geographical Information System, available workforce, greenfield and brownfield locations, investor incentives, an efficient local administration, a long tradition of industry and arts & crafts, profitable and investment oriented utility systems, the Stara Planina Nature Park and natural resources including springs, forests, pastures and meadows.

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ECONOMY The dominant economic branch in Pirot is the processing sector, namely rubber, textile, food and chemical processing. The biggest companies in the area are Tigar Tyres (2,300 employees), Tigar AD (2,023 employees) and Prvi maj (1,500 employees). Pirot is also famous for its own brands of cheese, rugs and carpets. There are 9,284 jobseekers in the municipality.

INDUSTRIAL ZONE The local authorities are currently finalising infrastructure at the Beg Bašča Industrial Zone. The first stage (completing infrastructure on 6.5 hectares of the 25 hectare site) is expect-

ed to be completed by the first half of 2010.

Aside from this zone, the General Spatial Plan envisages the following industrial/work zones: Božurato (12.9 hectares, 30% available) and Sredorek & Barje (29.6 hectares, 70% available). There is also the ‘Free Zone AD’, offering 17 hectares of available land and infrastructure.

The municipality owns this zone, which represent one of the first examples of a public-private partnership in Serbia. This is also the most successful zone in Serbia.

INCENTIVES In order to attract as many investments as possible, municipal authorities have decided to grant various incentives for land lease, construction projects and utilising facilities located on the periphery of the Pirot Industrial Park. Investors are exempt from paying fees for land development, as well as fees for issuing various documents and permits (such as utility infrastructure connection fees), providing they build within the limits of the free zone. Pirot’s Local Economic Development Office provides complete logistical support to potential investors.

PERMITS & DEADLINES A minimum of 30 days is required for the municipal Spatial Planning Department to approve and register construction works and issue an operating licence (of these 30 days, the actual procedure in the municipal offices lasts between three and five days).

BRANISLAV KOSTIĆ, PRESIDENT OF THE MUNICIPALITY OF PIROT: “Investors are given special incentives.”

Local authorities are currently finalising infrastructure at the Beg Bašča Industrial Zone

INVESTMENTS TO DATE The biggest investors in the municipality are Michelin, Hellenica, Eko Themann Group and Tuš.

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CONTACT MARIJA ĐOŠIĆ Opština Pirot, Srpskih vladara 82 18300 Pirot Tel: +381 (0) 10 305 532; 305 542 Fax: +381 (0) 10 313 901 Email: ler@pirot.rs www.pirot.rs Languages: Serbian, English & French

POŽEGA

PLANNING AHEAD he Town and Municipality of Požega covers 426 square kilometres in the Zlatibor County of western Serbia. The town has an estimated population of 15,800, while a total of 36,500 citizens live in the municipality as a whole. Požega is located in a valley around the upper course of the Western Morava River and lies on the three small tributaries of the Western Morava: Skrapez, Djetinja and Moravica. The municipality is also traversed by the streams Rzav and Lužnica, as well as two Kamenice rivers. The municipality has an envious geo-strategic position, located as it is at crossroads of western Serbia’s main transport and energy routes, as well as the junctions of the M5 and M21 motorways and planned transport arteries E-763 Horgoš - Požega and E-761 Požega - Višegrad (as part of the international Sarajevo - Požega – Sofia motorway). Požega boasts the largest railway station in the area (16 tracks) and is passed by the Belgrade - Bar railways, as well as national rail lines to Kraljevo and Niš. It is also at the crossroads of the TS 400kV energy line with the branches DV 110 and 35 kV, as well as being the crossroads of a main gas pipeline and the Rzav regional water supply system. Ponikve Airport is just 41 km away.

Industrial production is the leading economic sector in the municipality, representing about 40% of the total income.

The position of Požega supports the development of agriculture. The fertile Požega valley is interlaced with waterways, thus offering ideal conditions for livestock breeding, while the gentle slopes of the surrounding hills are as though created for fruit growing.

The most important natural resources include 9,500 hectares of arable land, marble for the production of building materials (Požega’s two ‘blue flow’ marble sites are at Kalenić and Tvrdići), clay for the production of building materials and significant deposits of gravel sand. Požega has high quality drinking water and thermal mineral water in the region of Banja Roge and Dobrinje.

The greatest potential lies in agricultural production, especially fruit growing, livestock breeding

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MAYOR MILOVAN MIĆOVIĆ: “Industrial production is the leading economic sector in the municipality, representing about 40% of the total income. “

and the existing capacities of the Budimke fruit processing factory, as well as the development of eco-tourism in the municipality’s protected areas. Plans are in place to open new plants to take greater advantage of Požega’s abundant natural resources and excellent geo-strategic position.

INDUSTRIAL ZONE The Urban Plan of the Municipality of Požega envisages the development of an 85-hectare industrial zone and a tax-free zone covering 210 hectares. The site of the future free trade zone is alongside the main roads MP 5 and MP 21, just 1,400m from the path of the future E-763 Horgoš - Požega highway and 150m from the E-761 Požega - Višegrad highway. The industrial zone is passed by water supply pipelines (Ø800mm; Ø100mm), two sewage pipelines and the regional gas pipeline (Ø 386mm), with a main measuring regulation station. The formation of the industrial park is being financed by the National Investment Plan. Only 1,300 metres from the zone is the substation 400kV and 35kV, and through the zone run two power transmission lines of 10kV. The industrial zone is located along the Požega Čačak rail line and the construction of an industrial track planned at a distance of 600m from the Požega train station.

The area is covered by the terrestrial telephone system and has mobile telephone reception. The existing railway station already includes a customs department. There are 2,500 unemployed in the municipality, of all academic profiles. Along with surrounding municipalities located from six to 41 kilometres from Požega, it is possible to hire as many as 8,000 workers.

PERMITS AND DEADLINES The Municipality has enabled exceptionally swift issuance of all necessary permits for construction, as all necessary documents have been adopted over time: development programme, capital investment programme, the Spatial Plan of the Municipality of Požega, General urban plan of the city and 65% of the territory is covered by detailed regulatory plans of the General Urban Plan.

The fertile Požega Valley is interlaced with waterways

CONTACT Mayor MILOVAN MIĆOVIĆ Trg Slobode 9, 31210 Požega Tel. +381 (0) 31 816 257; 31 811 181 Fax. +381 31 811 151 Mob. +381 (0) 809 76 70 Email: predsednik@pozega.org.yu; office@pozega.org.yu www.pozega.org.rs Languages: Serbian & English

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PREŠEVO

PENDING INVESTORS The Municipality of Preševo is located in the extreme south of Serbia, in the River Moravice Valley between Mount Skopska Crna Gora (west) and the eastern slopes of Mount Ruj, bordering Bulgaria. Preševo neighbours the municipalities of Bujanovac and Gnjilane, is south of the state border with the Republic of Macedonia and is open to the Kumanovo Valley.

The region’s most important transport corridors run through Preševo’s territory, including pan-European Corridor 10 and the BelgradeNiš-Skopje-Thessalonica-Athens railway.

The municipality covers 264 square kilometres and has around 36,000 inhabitants in the town of Preševo and 35 villages/hamlets.

Some 12,000 residents are temporarily working abroad, while average monthly per capita income is 15,166 dinars.

Preševo is located in the border zone along Corridor 10, which connects north and south Serbia, and the M-25.2 road, which connects Preševo to Kosovo and Priština Airport (75km).

Preševo’s additional advantages include large agriculture areas, a long tradition of agriculture and livestock breeding and a powerful Diaspora community that maintains dynamic links with Preševo.

ECONOMY Developed economic sectors in Preševo include metal processing, the construction industry, production of building materials, food production, tobacco industry and tobacco production. The economy is dominated by private enterprise, with 95% of the municipality’s 500 companies being privately owned.

The most important industrial players are tobacco bulk purchaser GP Budućnost, fruit juice producer Fluid, milk dairy processors Fontana and Doda, wood processing company Nura and top construction company Saba Belča. Preševo also boast four branches of major banks: Alpha, Komercijalna, ProCredit and OTP.

Preševo has great economic potential in large agricultural areas under irrigation, located just three kilometres from Corridor 10, as well as a large number of unused opportunities, such as agricultural co-operatives, crystal, tobacco processing factories, etc. However, opportunities are also to be found in the municipality’s great and long tradition in agriculture and livestock breeding.

The municipality has carried out all infrastructure preparation for the planned industrial zone and Preševo has 3,595 employees and 6,345 registered jobseekers.

INVESTOR INCENTIVES Preševo offers two types of incentives: those established by the Republican government and those offered by the local municipality. Depending on the degree of local jobs created, investors could benefit from exemptions from paying local taxes and utility fees.

In addition to Serbia’s favourable corporate tax policy of 10%, tax on profit of eight to 18% and personal income tax of 12%, the municipality offers a 10-year exemption for tax on profits when it comes to large investments exceeding € 7.5 million and employing 100 staff, while investors can be awarded between €2,000 and €10,000 per new employee, tax deductions worth 80% of the value of investment in fixed assets and reductions of the tax burden on the basis of hired local staff.

The Municipality of Preševo has established a municipal service to assist potential investors and reduce the time required for administrative tasks. The last five years has seen a lot invested in infrastructure development and the municipality has adopted its Strategy for the Development of Preševo for the period from 2007 to 2015.

Investors can obtain all necessary permits and papers needed to commence operations within 60 days.

RAGMI MUSTAFA, PRESIDENT OF THE MUNICIPALITY OF PREŠEVO: “The Municipality of Preševo has established a municipal service to assist potential investors”

The most important transport corridors run through Preševo

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CONTACT MAYOR RAGMI MUSTAFA Marsala Tita 36, 17523 Preševo Tel. +381 (0) 17 669 137; 660 110 Fax: + 381 (0) 17 660 320 Kanc.ler-Presevo@hotmail.com Languages: Serbian, Albanian, English, German & Turkish

PRIBOJ

COURTING INVESTMENT Potential for the development of SMEs, agriculture and tourism

LAZAR RVOVIĆ, MAYOR OF PRIBOJ: “We ensure the swiftest, most effective and cheapest way to obtain all permits and approvals applicable.”

The Town and Municipality of Priboj is located in southwest Serbia’s River Lim Valley, within the border triangle between Serbia, Montenegro and Bosnia & Herzegovina (Republika Srpska).

Within Serbia, it neighbours the municipalities of Čajetina, Nova Varoš, Prijepolje, Pljevlja, Čajniče and Rudo. A key transport town, Priboj is crossed by the main Belgrade-Bar railway connecting the Serbian capital to Podgorica and the Adriatic coast. Priboj covers an area of 552km2, which constitutes 8.9% of Zlatibor County and 0.9% of the Republic of Serbia.

At the last count (2002 census), the municipality was home to a total of 30,377 inhabitants, 20,000 of which were residents of the Town of Priboj. Arable land covers a third of the total area, while forestland takes up around 62%.

ECONOMY The municipality offers significant industrial facilities, such as the famous ‘FAP’ automotive plant (Formerly known as Track Factory Priboj), and factories Polyester, Epoksida, Faspinija, Sedišta and others. Most of these facilities are currently not operating, while others are in need of revitalisation to improve their industrial capacities. The economic potential of Priboj Municipality is being sought in the development of the SME sector, agriculture and tourism, but also in the development of transport vehicle technologies, heavy industry and the chemicals industry. World-renowned vehicle factory Priboj – FAP is in the process of preparing for privatisation, while the municipality has a busy local economy with nearly 100 companies and 1,200 retail outlets employing close to 8,000 Priboj workers.

under the spa is the huge Murtenica Lake natural reservoir of pure cold water. Below the reservoir, on an area of over 900km2, lies a lake of hot water with a temperature of about 60 °C. Perhaps the first modern analysis of the water from this spa was performed in Vienna in 1878. Since then, it has been classed as one of the world’s leading thermal sources. Ethno, cultural and religious tourism is supported by the majestic Banja Monastery of the Nemanjića Foundation, one of the oldest and most important Serbian monasteries anywhere. The monastery was declared the seat of the fourth diocese by the Studenica Council in 1219, thus becoming the centre of the entire Dabarska Diocese under the guidance of Bishop Hristofor, brother of Saint Sava. The village of Krajčinović houses the old church built by Mehmed Pasha Sokolović over the site of his mother’s grave. As if that weren’t enough, recent excavations near this village have uncovered cultural objects from the Hellenistic Age and Celtic period.

Direct agreements are possible with regard to all local fees and taxes

CONTACT LAZAR RVOVIĆ, Municipal President 12. januara 108, 31330 Priboj Tel: +381 (0) 33 445 648 Fax: +381 (0) 33 445 446 Email: opstinapb@ptt.rs www.priboj.org.rs Languages: Serbian & English

TOURISM HAVEN Priboj’s potential for tourism development lies in the expansion and redevelopment of the Priboj Spa complex, renowned for its thermo mineral springs since Roman times. The spa’s water temperature at source is around 38 °C, while deeper

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BENEFITS Amongst other things, the advantages of the municipality include an educated and affordable workforce, an excellent geographical position (nestled between Serbia, Montenegro and Bosnia & Herzegovina).

The local government offers full support for investors, as does the Serbian state.

PERMITS & DEADLINES The Municipality of Priboj ensures the swiftest, most effective and cheapest way to obtain all permits and approvals applicable under its jurisdiction. Depending on the size and type of investment, direct agreements are possible with regard to all local fees and taxes.

INVESTMENTS TO DATE The most important investors actively present in the municipality of Priboj are ‘Swisslion Markets, Delta Holding and Spy & Wellness.

PRIJEPOLJE

BONUSES FOR INVESTORS rijepolje town and municipality are located in the Zlatibor County of southwest Serbia, central Polimlje area. The municipality has an average altitude of 1200m/asl, covers an area of 830 square kilometres and comprises 82 settlements that are home to 41,188 inhabitants. The town of Prijepolje, according to the 2002 census, has 15,634 inhabitants. Prijepolje is 30 km away from the border with Montenegro and 35 km from Bosnia & Herzegovina. It is connected to Montenegro by the main roads M21 and M8, as well as the Belgrade – Bar railway. It is connected to Bosnia & Herzegovina by the regional road R-114. Prijepolje is 300 km away from airports in both Belgrade and Sarajevo, while it is 200 km from Podgorica. Prijepolje town lies on the banks of the rivers Lim and Mileševka at an altitude of 440m/asl, flanked by the particularly attractive Sokolic and Gradina hills, which are both symbols of the city. Prijepolje has developed textiles, footwear, metal, chemical and construction industries, and relatively developed trading, utility services, agriculture, catering and tourism sectors. The local private sector is growing quickly and Prijepolje currently boasts over 730 registered companies and

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independent retailers. The frontrunners of the economic development of the municipality are textile factory Ljubiša Miodragović, FAP Livnica, shoe factory Limka, clothing industry Iris, chemical industry Elan and construction company Rad. Prijepolje’s industrial zone is well location between the train station and the M21 main road leading to Montenegro. The entire surface area is 50 hectares, of which 25 hectares are equipped with infrastructure. The industrial zone consists of an industrial park and 13 plots totalling 2.5 hectares. Funds from the National Investment Plan are funding construction of access roads and substations. Prijepolje Municipality also has several other locations available for new investments.

The positions of these locations are favourable, with the majority of sites being close to the M21 road and Belgrade - Bar railway.

Being close to two borders allows Prijepolje to supply goods and services to the markets of neighbouring countries. The municipality is available to all investors requiring help to start new businesses. In addition, the municipality is in process of preparing bonuses for investors as an incentive for hiring new workers.

CONTACT DRAGOLJUB ZINDOVIĆ, Mayor of Prijepolje Trg bratstva I jedinstva1, 31300 Prijepolje Tel. +381 (0) 33 714 073 Fax. +381 (0) 33 712 297 www.opstinaprijepolje.rs Languages: Serbian & English

ORDER NOW! For only 300 RSD per copy (including P & P)

SERBIAN INVESTORS GUIDE 2009/2010 This unique publication contains information on investment opportunities in all hundred municipalities of Central Serbia. Following publication of the successful annual Vojvodina Investors Guide (distributed in May 2009), alliance international media is issuing the 2nd edition of this unique series offering useful information from Serbian municipalities, including all opportunities, terms and conditions for successful investments.

The Guide also includes all contacts, statements, maps and incentives – based on information directly provided by municipal officials.

This publication is supported by the Standing Conference of Serbian Towns and Municipalities, SIEPA and USAID

PLEASE ORDER YOUR COPY ON: Tel. +381 11 308 99 88; Fax. +381 11 308 99 77 email: office@cma.rs

Serbia 2009/2010 - The Investors Guide / 57

PROKUPLJE

SME FOCUS

A number of benefits are planned, especially for investors hiring over 100 workers he Municipality of Prokuplje covers an area of 759km² in southern Serbia’s Toplica County and has a total of just under 28,000 inhabitants. Apart from the metal, nonmetals and textile industries, the local economy is dominated by the agro/food sector, particularly agricultural, with the gradual development of the private sector consisting of small businesses and entrepreneurs. Development of a project to choose the most attractive location to build hotels of highstandard category is yet to be planned.

ECONOMY The number of small and medium-sized enterprises (SME) in the Municipality of Prokuplje is growing year on year and there are currently 200 SMEs in Prokuplje. The largest number of small companies operate in the field of trade (32.99%), the mining industry (25.77%), financial and other services (8.25%). The advantages of the Municipality of Prokuplje for the development of the SME sector include the existence of production facilities, availability of a qualified workforce and the willingness of the municipality to assist in SME development through n offer of free urban land. The municipality is ready to attract potential investors by earmarking sites for the further development of SMEs and assisting through the existing office for local economic development, as well as by combining potential partnerships of the public and private sectors (BID zone, Business Incubator Centre) and offering an ecologically clean environment. Prokuplje’s proximity to Pan-European Corridor 10 and good transport connections also add to its attractiveness. Average gross monthly earnings for Toplica County in April 2008 were 31,333 RSD (22,143 RSD net), while Prokuplje’s average stood at 33,873 RSD gross (23,319 RSD net).

INDUSTRIAL ZONE Prokuplje boasts three locations for investors, though they are yet to be equipped with ap-

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MILAN ARSOVIĆ, MAYOR OF PROKUPLJE: “There are concessions for investors depending on the number of workers hired.”

propriate infrastructure. These sites are: Pojate Northern Zone, area 1.25 ha; Berilje - Western Zone, area 10.1875 ha; Solun - Central Zone, area 15.18 ha.

INCENTIVES Firms employing up to 20 workers are granted a three-year grace period on the land lease fee, 30% reductions in land development charges and a three-year grace period for the payment of service charges. For those employing up to 50 workers, there is a five-year grace period on the land lease fee, 35% reductions in land development charges and a five-year grace period for the payment of service charges. Investors hiring in excess of 100 workers will only have to pay their land lease fee after 10 years, compensation for land development is completely relieved and the fee for service charges is paid after 10 years.

Additionally, it is possibile to obtain free utility connection, editing priority construction sites, fast licenses for the start of construction, a series of tax and other reliefs in the initial period of operations, coupled with the possibility of obtaining an interest-free loan from the Development Fund, etc.

PERMITS & DEADLINES All necessary permits can been obtained in just two weeks, depending on the level and type of investment.

INVESTMENTS TO DATE Local company Hisar was bought by Pioneer Subotica. Prokupac, which was originally sold to Slobodan Simić, is expected to merge with Prokupac Belgrade. New Topličanka was sold to YU Business Novi Sad, while Konuks-Koneksa Slovenia became the owner of 70 per cent of the company Nikodije Stojanovic - Tatko.

Grand-engineering from Bor owns FOM, while Eco Station is a greenfield investment. Trgopromet was successfully privatised and Univerzalpromet was bought by F. P. Kosanica from Niš and Crystal was bought by Ekomomik 94th.

the local economy is dominated by the agro/ food sector

CONTACT MILAN ARSOVIĆ, Mayor of Prokuplje Nikodije Stojanovic 2, 18400 Prokuplje Tel: +381 (0) 27 324 040 Email: info@prokuplje.org.rs www.prokuplje.org.rs Languages: Serbian & English

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RAČA

ORGANIC FARMING

It takes up to two months for an investor to obtain all required building permits and documentation he Municipality of Rača is situated in eastern Šumadija and has a favourable geographical position, in addition to being located on important international roads.

Occupying an area of 216 square kilometres, Rača has 12,959 inhabitants and a modern road network that certainly provides a valuable contribution to enhancing the municipality’s good geographical position. The Markovac – Rača - Natalinci-Topola – Aranđelovac Lazarevac road runs through the municipality and is connected to the Belgrade – Niš motoray (Corridor 10) in the east and the Ibarska A-road in the west. The roads that run straight through the heart of the municipality give it an important transit role, since they serve to link the Great Morava and Kolubara Valleys.

The road connecting the municipality to Kragujevac is 32 kilometres long, while the route to Smederevska Palanka is 19 kilometres long. Topola is 29 kilometres away, Aranđelovac 45 kilometres, Mladenovac 54 kilometres and Belgrade 100 kilometres, via the motorway.

ECONOMY Rača is traditionally known for coal mining and the area has significant deposits. The biggest mines are located in Borci and Đurđevo.

The municipality also has mineral resources at its disposal, such as the Lepenička thermal area that belongs to the Šumadija balneo-thermal region. The processing industry is Rača’s most developed sector, with 38% of the workforce engaged in this sector. Some 6.7% of workers are employed in the retail sector, while education and health & social care employ 15.8% and 9.9% respectively. The unemployment rate in the municipality of Rača

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stood at 44.6% in 2006.

INDUSTRIAL ZONE The municipality doesn’t have an industrial zone as such. However, it boasts several smaller plots of land suitable for the construction of small production facilities. These sites are equipped with appropriate infrastructure.

INCENTIVES The Municipality of Rača doesn’t have a special incentive programme for prospective investors at present.

However, the land development fees are as low as possible. The local leadership believes that the municipality has no potential for the development of large industrial complexes, but is rather suited for further development of the primary economic sector: agriculture, processing agricultural produce and the food industry. The Municipality of Rača is one of Serbia’s most environmentally friendly municipalities, thanks to the fact that it has no industrial facilities whatsoever. As such, one investment option could be the production of health food and the development of transit and rural tourism.

The Gradište forest area (40 hectares of mainly linden forests) is also the site of the Karađorđe Memorial Fountain and ethnocomplex ‘Petrovi Dvori’ (on the M-4 road, Rača - Topola). Together with the Church of St. Georgije Velikomučenik, these are the most noteworthy cultural and historic sites in the municipality. Moreover, mineral water springs in the village of Miraševac are suitable for the development of spa tourism.

PERMITS AND DEADLINES Potential investors will be issued all required permits in a maximum of two months.

DRAGANA ŽIVANOVIĆ, PRESIDENT OF THE MUNICIPALITY OF RAČA: “The land development fees are as low as possible.”

Opportunities for the development of spa tourism

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CONTACT DRAGANA PROKIĆ Opštinska uprava Rača Karađorđeva 48, 34210 Rača Tel: +381 (0) 34 751 796 Fax: +381 (0)34 751 175 Email: soraca@nadlanu.com www.raca.rs Languages: Serbian & English

RAŠKA

BIOSPHERE RESERVE The most widespread economic sectors: mining, agriculture, tourism and the lumber industries

RADENKO CVETIĆ, MAYOR OF RAŠKA: “The municipality is offering to build infrastructure for potential investors.”

Raška Municipality is located in southwest Serbia at the confluence of the rivers Raška and Ibar. It spreads over 670km2 along the central part of the Ibar Valley and areas of the Kopaonik and Golija mountains. Raška is home to 26,981 residents. Through its position sprawling the Ibar Valley, Raška is directly connected northwards, by road and rail links, to the West Morava Valley and Šumadija, while to the south it neighbours Kosovo. Through Jošanica Valley to the east, Raška is connected to the Aleksandrovačka Župa region and Toplica County, while to the southwest it is connected through the River Raška Valley to Montenegro and Novi Pazar.

Two towering advantages of Raška are the stunning Dinaric peaks of Kopaonik and Golija.

Mount Kopaonik is home to one of the most important ski centres in Southeast Europe and the Balkans, while the heavily forested Mount Golija has significant biodiversity and hosts the Golija-Studenica Biosphere Reserve, the first UNESCO-MAB registered biosphere reserve in Serbia. Raška is also home to the Jošanička Spa, rich in thermo mineral springs, and is crossed by the rivers Ibar and Raška, as well as numerous smaller, unpolluted mountain rivers.

Additionally, the forested slopes of Kopaonik and Golija hide a multitude of natural wonders, such as Semeteško Lake on Kopaonik. The area also boasts important historical monuments and the monasteries Gradac, Stara and Nova Pavlica and Nikoljac.

ering of wild fruits and herbs. A total of 33,284 hectares is mainly used for intensive agricultural production of cattle breeding and fruit growing. The collection of wild fruits and medicinal plants is still in the development phase, though the potential is huge – given the 24,000 hectares of meadows and pastures within the Golija Biosphere Reserve and Kopaonik National Park.

Seasonally collected are wild strawberries, blueberries, juniper berries, mushrooms and herbs.

Potential profitable investment opportunities in Raška’s agricultural sector would relate to the building of a large collection and distribution centre, refrigerated storage facilities, drying facilities for fruits and medicinal plants and slaughterhouses. Moreover, chances are available in the establishment of larger livestock farms with ample room for free grazing, as required by the European Union.

There is also certification and retail of large quantities of homemade brandy (rakija) stored on farms for years, certification of environmentally clean and organic food on a larger area of land, plants cultivated under plastic houses in temperature controlled environments, as well as possibilities to utilise the hot water mineral springs of Jošanička Spa and take advantage of briquettes from sawdust, available due to the larger number of sawmills in this area.

Necessary permits issued within legal deadlines

CONTACT LJUBINKO LUŽNJANIN Predrag Vilimonovića 1 36350 Raška Tel: +381 (0) 36 736 224 Fax: +381 (0) 36 736 204 Mobile: +381 (0) 63 666 739 ljubinko.luznjanin@raška.org.rs www.Raška.org.rs Languages: Serbian & English

ECONOMY The structure of the municipality’s economy is determined by the natural conditions and natural potential of the region. Therefore, mining, agriculture, tourism and lumber exploitation are traditional branches of the Raška economy. Also present are the food, timber and building materials industries. As well as other branches of strategic importance to the municipality, agriculture is mainly based on livestock breeding, fruit and vegetable cultivation, beekeeping and the gath60 / The Investors Guide - Serbia 2009/2010

INDUSTRIAL ZONE The Master Plan of Raška Municipality envisages the creation of a commercial zone covering 165 hectares of Mount Kopaonik. The area is a privately owned recreational site zone that is to be used for further developments in the tourism sector.

PUBLIC INVESTMENTS The municipality of Raška is offering to build infrastructure for potential investors.

PERMITS & DEADLINES Investors can obtain all necessary permits within the legal deadline.

RAŽANJ

IN THE CORRIDOR

he Municipality of Ražanj has a favourable location at the crossroads of the Balkan and Carpathian mountains and the basins of the Great Morava and Southern Morava rivers. It is neighboured by the municipalities of Kruševac, Aleksinac, Soko Banja, Boljevac, Paraćin and Ćićevac. Pan-European Corridor 10 (BelgradeNiš-Thessalonica-Athens) passes through the municipality.

To the northeast lies Bukovik Mountain and to the north is saddle (WTF?!) Mečka. The municipality has 23 villages/hamlets and its central small town of Ražanj (264m/asl) is 55km from Niš towards Belgrade. The Braljina and Đunis railway stations (10km west of Ražanj Town) are both on the main Belgrade – Niš railway.

The municipality is part of the Nišavski County.

Its area of 289km2 is home to 11,369 inhabitants, equating to 39 inhabitants per km2 (2002 census). The area suffers from a depopulation rate of 17.6 per 1,000 inhabitants.

A total of 62 companies operate in the Municipality of Ražanj. Most are micro en-

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terprises (1-5 employees), with only a few in the ‘small’ range of 5-50 employees. The municipality has no medium or large companies.

Municipal authorities are in favour of the development of the SME and broader private sector.

The greatest number of workers is employed in the processing industry, followed by the wholesale and retail trade sector, health and social work and education.

Companies operating successfully in Ražanj include non-ferrous metal foundry 14th October, producers of metal constructions Metaloprerada and Gerber-Export, as well as dairy DIS. The employment level of 96 employees per 1,000 inhabitants shows how far Ražanj is lagging behind other municipalities in central Serbia and the Nišavski County.

The Municipality of Ražanj has 16,926 hectares of agricultural land, which represents 59% of the municipality’s total surface area. The structure of the agricultural area is characterized by a large proportion of arable land - covering 12,342.69 hectares.

SMALL MUNICIPALITY IN LEVAČ T

he Municipality of Rekovac is located in central Serbia, in southeast Sumadija between the mountains of Gledićkih, to the west, and Juhor, to the east. Rekovac covers an area of 366 km2, which represents 13.95% of the total territory of Pomoravlje County. The municipality comprises 32 settlements that are home to 13,551 inhabitants. The average population density in the municipality is 37 inhabitants per km2. The small town of Rekovac is located about 30 km southwest of Jagodina on the small River Dulenka in the mountainous area known by its historical name of Levač.

The municipality’s territory includes two distinct natural areas: around 3,700 hectares of lowland areas and 32,000 hectares of mountain area.

Rekovac’s transport connections to other municipalities are generally good, though the area has many dilapidated roads that are poorly maintained. The total length of roads in the municipality is 179 km, of which 120 km is modern roadway. Some 70% of the total population live in agricultural households, while a massive 90% of the total working population is engaged in agriculture. Based on this data, it can be concluded that the Municipality of Rekovac is a typically agricultural municipality.

The most important industrial plants in the municipality are DD Holding company Cable Industry Jagodina, Conductors Rekovac and polyurethane factory Blagotin in Belušić, which is operating as part of Zastava Systems from Kragujevac. The Žitomlin industrial bakery from Jagodina is of great importance to the community. The greatest percentage of local workers are employed in the processing sector (43.3% of all employed residents), while the municipality has about 228 independent shops and traders.

The agricultural sector contributes the most to the local GDP, with branches such as fruit farming, viticulture, livestock breeding, crop farming and landscape gardening. The dominant crop is wheat, with an average annual yield of about 2700 kg / ha. Barley and oats are also significant components in terms of improving the quality of animal fodder. Rekovac’s rolling hills and mountain villages lend themselves perfectly to the further development of tourism services. The municipality boasts several well-known tourist events, including the Levački Assembly “Prodjoh Levač, prodjoh Šumadija” at Kalenić Prnjavor, the Art Colony Kalenić at Kalenić Prnjavor, the Days of Janković event and others.

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CONTACT DOBRICA STOJKOVIĆ, Municipal President SO Ražanj, 37215 Ražanj Tel: +381 (0) 37 841 217 Fax: +381 (0) 37 841 225 Email: opstinarazanj@gmail.com www.razanj.org

REKOVAC

CONTACT DR DRAGAN PRODANOVIĆ, Municipal President Svetozar Markovic 2, 35260 Rekovac Tel: +381 (0) 35 711 004 Fax: +381 (0) 35 711 196 E-mail: predsednikrekovac@ gmail.com; sorekovac@gmail. com www.rekovac.org.rs Languages: Serbian & English

SJENICA

RENOWNED AGRI PRODUCE

The Municipality plans to adapt the Dubinje military airport for civilian needs in the coming period he Municipality of Sjenica is situated in a sprawling high valley at the heart of the Sjenička Basin that makes up part of the vast Pešterska Plateau. Located at an altitude of around 1,000m/asl in southwest Serbia’s Zlatibor County, Sjenica municipality covers an area of 1,059 square kilometres – making it the largest of the Zlatibor County’s 10 municipalities.

The municipality’s most important road is the Raška - Novi Pazar - Sjenica - Nova Varoš main road, which links the Ibarska A-road to the main Zlatibor road. Sjenica also has good transport links with Prijepolje, Novi Pazar, Ivanjica and Nova Varoš, though the construction of a road linking Pešter to Tutin, one to Prijepolje and one linking Sjenica to Bijelo Polje are of utmost importance to the municipality. There is also a plan to adapt the Dubinje military airport for civilian needs in the coming period, thus facilitating tourist arrivals. The municipality is situated between two rail corridors: Belgrade - Bar and Belgrade - Kraljevo - Skopje.

Rail lines through the municipality cover a total distance of eight kilometres and lead to the Kumanica border crossing with Montenegro.The municipality’s economy is dominated by the processing industry (textiles and textile products, meat and meat products, milk and dairy products) and agriculture. In 2005, average monthly income per capita was 40,977 dinars. It is worth noting that there is great potential for the development of livestock breeding – as a base for the development of the meat and dairy industry – that is currently insufficiently realised. Products, such as Sjenica’s famous cheese and prosciutto

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MURIZ TURKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF SJENICA: “The municipality offers great opportunities for the development of tourism, especially winter sports.”

are ‘desired goods’ all over Serbia, but capacities for the production of these products is also insufficiently developed. The Sjeničko-Pešterska plateau, with numerous rivers, mountains, lakes, caves, fields and pastures, is one of many unique tourist destinations in Serbia. Accordingly, the municipality has great prospects for the development of rural tourism, based on its preserved and unspoilt nature, healthy food, friendly people and numerous archaeological sites. Sjenica has the cleanest rivers in Serbia. Boasting large stocks of all sorts of freshwater fish, Sjenic’s waterways are particularly appealing to competing anglers and amateur fishermen. There are also thermal springs in Čedova (four larger and 12 smaller thermal water springs with an average ater temperature of 26º C) and the municipality has vast forests with game animals – providing opportunities for the development of hunting tourism. The municipality offers great opportunities for the development of tourism, especially winter sports.

INDUSTRIAL ZONE The Municipality of Sjenica does not have a developed industrial zone at present, but local authorities are currently in the process of selecting the most appopriate location to construct a zone.Municipal authorities provide assistance to prospective investors seeking to obtain required documentation. Industries deemed suitable for investing are the dairy and meat processing industries, principally because these branches’ products are specific to the Pešterska Plateau and are recognisable and renowned all over the former Yugoslavia and the wider region.

Assistance is provided to prospective investors seeking to obtain required documentation

CONTACT MURIZ TURKOVIĆ, Municipal President Kralja Petra I, 36310 Sjenica Tel: +381 (0) 20 741 278 Fax: +381 (0) 20 741 288 predsednikopstinasj@yahoo.com www.opstinasjenica.co.rs Languages: Serbian & German

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SMEDEREVO

DYNAMIC DEVELOPMENT S

mederevo is located in eastern Serbia, along the banks of Europe’s second longest river, the Danube. It is only 46 km from the Serbian capital and covers a total area of 481.7km2.

Smederevo has around 110,000 inhabitants.

The most significant natural advantages of Smederevo are its extremely favourable geostrategic sites, including a port on the Danube that’s able to receive ships from the Black Sea. Smederevo has one of the most developed economies of any cities in Serbia.

The Municipality of Smederevo has 55,000 employed workers. Most industrial activity in the municipality takes place within local industrial zones. The US Steel industrial zone is seven kilometres southeast of the city. It covers an area of 300 hectares and includes high value technoeconomic and spatial characteristics. The same site is home to manufacturer of industrial and medical gases, company Messer-Tehnogas.

The West Industrial zone is situated to the west of the city centre and is the traditional zone of the old forge – covering an area of 21 ha – and also has mono structure characteristics.

Most industrial activity in the municipality takes place within local industrial zones The municipality is planning to change the purpose of the zone to tourist-cultural content. The Godomin Field Industrial Zone, to the northeast of the city, is divided into several sub zones. In terms of position, content and development opportunities, Semderevo’s allocated sub zones could be separated as following: 1) The existing industrial zone area of 101.3 ha, with the largest number of industrial companies.

(2) sub-zone Šalinački put covers an area of 15 ha and is currently being divided up into plots of land, installed with infrastructure equipment and connected to transport arteries.

(3) sub-zone located along the main road to the industrial zone, on a total area of 36.86 ha.

At present, a project to fit infrastructure for a new industrial zone (84ha) is underway, while the local government has adopted a detailed regulatory plan and the resolution of property issues and projects are in progress, with the support of the National Investment Plan.

Agriculture is the dominant economic activity in the area of the municipality of Smederevo.

LONG TRADITION he Town & Municipality of Smederevska Palanka is located at the confluence of the rivers Kubršnice and Jasenica and is one of the oldest settlements in the region. According to the 2002 census, Smederevska Palanka has 56,011 inhabitants (26,100 in the town itself), which is 6.37% less than in 1991. It has 17 rural and 4 urban settlements, covering an area of 422km2.

In addition to pan-European Corridor 10 (Belgrade - Niš – Athens) and a regional road network, Smederevska Palanka has no major roads.

Almost all economic fields are represented in the municipality: industry, agriculture, construction, haulage, commerce, catering, handicrafts, housing-communal activities, financial services, scientific research, etc.

Smederevska Palanka has a long industrial tradition, which was at its peak between 1960 and 1990. More than half of the total number of employees during that period were employed in industry. Today, the two largest fac-

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tories are “Gosa” and “Palanacki Kiseljak”, which have become the symbol of town.

Smederevska Palanka has 65 registered industrial companies with approximately 7,900 employees.

Agriculture comprises one of the major areas of the economic structure of the municipality, though the presence of the Centre for Vegetable Crops – a leading scientific institution in Serbia – has not facilitated the faster development of this branch in Smederevska Palanka. However, stockbreeding has achieved outstanding individual results.

Potential tourism development could be linked to the local mineral water spring, which is deemed to be among the highest quality mineral water springs in Europe, due to its richness in selenium.

A 40-hectare industrial zone is planned in the area of Major Gavrilović Street. The site’s urban development plan has been completed and the zone is largely prepared for new construction.

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CONTACT PREDRAG UMIĆEVIĆ, Mayor of Smederevo Youth 1, 11300 Smederevo Tel: +381 (0) 26 223 354; Fax: +381 (0) 26 221 969 kabinet@smederevo.org.rs; gradonacelnik@smedrevo.org.rs www.smederevo.org.rs

SMEDEREVSKA PALANKA

CONTACT NENAD MILOJIČIĆ, Mayor of Smederevska Palanka Vuk Karadžić 25, 11420 Smederevska Palanka Tel: +381 (0) 26 321 001 Fax: +381 (0) 26 321 086 Email: sekretar@verat.net Languages: Serbian & English

SOKOBANJA

TRADITION OF TOURISM Each investor will be assigned a personal local investment consultant he Municipality of Sokobanja covers an area of 525 square kilometres and is linked to the Belgrade-Niš E-75 Motorway (Corridor 10) via the R-121 regional road (KnjaževacSokobanja-Aleksinac) and the R-120 road (Boljevac-Sokobanja-Aleksinac), which runs 30 kilometres away. The Žitkovac railway station is 35 kilometres from Sokobanja and is connected to the Belgrade – Niš railway. The nearest airport is Constantine the Great Airport in Niš (60 kilometres).

ECONOMY The municipality’s economy is fairly heterogeneous, with local revenue structures showing that the dominant branches here are agriculture, forestry and water supply (which generate over half of the municipality’s revenue), followed by retail trade and industry. Though the municipality’s long tradition in tourism might lead one to expect tourism and catering to generate the most revenue, but that is unfortunately not the case: only eight - 10% of the municipality’s revenue comes from tourist activities.

Sokobanja is one of the oldest tourist destinations in Serbia, with abundant natural resources (thermo-mineral springs and attractive geological features), protected countryside, a healthy environment, rich cultural and historical heritage and a favourable climate.

INDUSTRIAL ZONE The existing General Spatial Plan envisages a site comprising three individual zones: the working zone, the industry zone and the arts & crafts zone. Land plots that are available to investors include: 15.1 hectares at the Podina site (ideal for sports and recreational facilities, such as swimming pools, sports venues, fitness and body building activities, tennis and a bowling alley); there

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DIMITRIJE LUKIĆ, PRESIDENT OF THE MUNICIPALITY OF SOKOBANJA: “Local authorities provide numerous incentives for investors.”

are 9.3 hectares of land suitable for residential and business construction, as well as sports and leisure facilities; a plot of 1.64 hectares located in the north part of the zone has been assigned for construction of hotel complex Podinarija, the construction of which began recently. There is a location stretching across 18.8 hectares in the vicinity of the forest, making it suitable for tourist facilities. A further 3.93 hectares are also suitable for building sports facilities, while the remaining 2.66 hectares could be used for erecting tourist and recreational premises.

INCENTIVES The municipal authorities offer the following incentives to investors: an investor hiring over 50 new staff (in the space of three years) is exempt from paying all utility fees. Those hiring in excess of 80 workers (over a period of five years) and planning to build sports facilities will be allowed to lease municipal land free of charge for a 99-year period. Those investing more than a million euros or hiring over 100 workers are exempt from paying the land development fee.

Furthermore, the land utilization fee will be free of charge for the first year of business operations, with subsequent reductions of 20% for each following year.

DEADLINES & PERMITS Each investor will be assigned a personal investment consultant to guide them through all procedures, thus ensuring that relevant permits can be obtained in the shortest time possible.

The biggest investments have been made in construction activities

CONTACT MARIJA ŽIKIĆ Svetog Save 23, 18230 Sokobanja Tel: +381 (0)18 830 030 Fax: +381(0)18 830 253 invest@opstinasokobanja.com www.opstinasokobanja.com Languages: Serbian & English

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INVESTMENTS TO DATE The past five years have seen the biggest investments made in construction activities in Sokobanja, worth just over €7 million.

SURDULICA

INDUSTRIAL ZONE TO COME Surdulica Municipality is located in the Pčinjski County of southeast Serbia, along the Mesurićko field in the basin of three rivers: Vrle, Jerne and Božićke. It also covers part of the Vlasinska plateau. Surdulica covers 628 square kilometres and includes 41 settlements with an average size of 15.3 km2. In 2003 the municipality had 22,190 inhabitants and the town of Surdulica was home to 10,914. The municipality borders the Municipality of Crna Trava to the north, Vladičin Han to the west, the municipalities of Vranje and Bosilegrad to the south and the Republic of Bulgaria to the east.

Surdulica is located within the network of main roads in Serbia. On the western side, via Vladičin Han, Surdulica can access the South Morava and the main north-south road corridor (M1), as well as rail lines from Niš to Skopje and a major crossing of the east-west road M1-13 (Vladicin SurdulicaHan-gill-Strezimirovci-Bulgarian border).

ECONOMY The municipality has 295 registered companies (77 active). The majority (95%) are small companies. Approximately 65.5% of income is generated from industry, 10, 3% from agriculture, 7.6%

in the building construction and 13.7% in trade, catering and tourism. Most independent shops are privately owned and the average number of employees is two workers per company. Surdulica’s total agricultural area covers 33,645 hectares, of which 13.45% is arable land, 2.79% are orchards, 24.16% meadows and 59.58% pasture land. The ownership structure is extremely favourable, with a high percentage of land in private ownership: 98.34% of arable land, 99.47% of orchards, 94.29% of meadows and 26.64% of pasture land.

Surdulica’s strategic development plan for the period 2007 to 2011 has the following priorities: preparing development, planning, urban and technical documentation for the purpose of economic development; organising profitable agricultural production based on market principles, establishing preconditions for the development of the SME sector; improving economic infrastructure and creating conditions for the development of infrastructure and industrial parks; expansion of regional economic and cultural co-operation, as well as improving services for the purpose of economic development and other.

INVESTMENTS URGENTLY REQUIRED vrljig is located in central Serbia, 25 kilometres northeast of the regional centre of Niš.

Covering an area of 497 square kilometres, the municipality includes 38 villages and the administrative centre of Svrljig town.

According to the 2002 census, the municipality has 17.284 inhabitants, while the town of Svrljig has 6.705 inhabitants. This municipality recorded the lowest average earnings per employee in 2005.

It is situated in a valley between the ranges of the nearby Svrljig Mountains, which is separated by the River Svrljig Timok. Highland area covers about 70% of the territory of the municipality.

Svrljig is about 250 kilometres from Belgrade and lies along the main road to Zaječar, Negotin and Bor. At the end of 2008, the Municipality of Svrljig adopted a detailed regulatory plan for industrial zones, warehouses and service areas on a site between the existing “Progres” and “Herbogala” warehouses. This marked the commencement of activity aimed at preparing for the arrival of in-

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vestment capital.

In order to improve the present economic situation in Svrljig, the Ministry for the National Investment Plan decided to invest more than 34 million dinars in the development of municipal and environmental infrastructure in the municipality. These funds will be invested in the reconstruction of a water supply network and the city landfill, while 15 million dinars has been set aside to fund the reconstruction and construction of roads in the municipality, which is one of the 40 most undeveloped parts of Serbia.

Agriculture is the most important economic sector in Svrljig. It relies on livestock breeding, farming, fruit growing, beekeeping and gathering medicinal plants.

Education is accomplished through a regular and professionally focused high school. The total number of pupils enrolled in the primary school in 2008/2009 was 838. Svrljig’s Dobrila Stambolić Primary School has 744 pupils and all other classes outside Svrljig have a total of 94 pupils. The Dušan Trivunac Dragoš Secondary School in Svrljig has 224 pupils.

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CONTACT NOVICA TONČEV, Municipal President Kralja Petra I, 1, 17530 Surdulica Tel: +381 (0) 17 815 270 www.surdulica.org Languages: Serbian & English

SVRLJIG

CONTACT MILIJA MILETIĆ, Municipal President Tel: +381 (0) 63 416 996 Fax: +381 (0) 18 821 178 Email: sosvrljig@bankerinter.net www.svrljig.rs Languages: Serbian & English

SVILAJNAC

EXCEPTIONAL INVESTMENT APPEAL vilajnac is located in the Pomoravski County, some 100 kilometres south of Belgrade. It borders the municipalities of Velika Plana, Žabari, Petrovac na Mlavi, Despotovac, Jagodina and Lapovo. In terms of transport links, the Markovac – Svilajnac regional road joins the Belgrade-Niš Motorway (Corridor 10) near Markovac, while the Požarevac – Žabari road also leads to this strategic motorway. The Resava and Velika Morava rivers both run through the municipality. The Municipality of Svilajnac has 22 towns and villages and covers an area of 326 square kilometres. According to the latest census, the municipality has over 30,000 inhabitants, with almost a half living in the town of Svilajnac and half residing in smaller settlements.

ECONOMY Agriculture is the main economic activity in the municipality, with the land configuration and favourable micro climate suitable for all agricultural branches. The population of the town itself is more engaged in retail trade, catering and other service-related activities. According to the National Employment Service, there are 1,700 unemployed jobseekers in the municipality, of varying ages and education profiles.

INDUSTRIAL ZONE For the past year and more, the local authorities have made a crucial step towards the development of industry here by constructing an industrial zone on the Veliko Polje location. The zone covers 26 hectares and could be extended further. It has complete infrastructure (electricity, water, sewage, gas, telecommunication lines) and close to 120 million dinars was spent on building this infrastructure.

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DR GORICA DIMČIĆTASIĆ, PRESIDENT OF THE MUNICIPALITY OF SVILAJNAC: “We are willing to accommodate investors.”

INCENTIVES The municipality is willing to lease land to future investors free of charge, providing that the investor’s business activity engages the community and in brings significant benefits to the municipality’s population (creating new jobs, establishing collaboration with local entrepreneurs, etc.). Such co-operation has already been established with two foreign companies: car parts manufacturer Reum GmbH from Germany and the Dutch-Swiss fruit and vegetable processing company Koeleman Foods, which operates in Serbia under the name Tri-Stan Fresh Produce. Both are greenfield investments worth €10 million and €3 million respectively. Reum is currently building its production facilities, while TriStan Fresh Produce has already launched production activities. They are currently constructing a distribution facility that will store vegetables bought from local producers with whom the company co-operates.

A total of 15 hectares of land is available at the Veliko Polje Industrial Zone. Aside from greenfield investment, there are also a number of possibilities to make brownfield investments at facilities of former industrial giants like VIS, Beko and printing company 1. Maj, et al. In this case, local authorities are willing to offer prospective investors various grace periods on the payment of utility taxes. Aside from a favourable geographical position and the proximity of Corridor 10, Svilajnac also boasts an efficient local administration able to issue an investor with required permits in the shortest time possible (between 15 and 30 days).

According to the Serbian Investment and Export Promotion Agency (SIEPA), Svilajnac has been declared one of the most appealing municipalities in Serbia for foreign investments.

Declared one of the most appealing municipalities in Serbia

CONTACT DR GORICA DIMČIĆ-TASIĆ, Municipal President Tel: +381 (0) 35 312 010 PREDRAG MILANOVIĆ, Deputy Municipal President Tel: +381 (0) 35 312 010 Svetog Save 102, 35210 Svilajnac Email: predsednik@svilajnac.rs, soinf@svilajnac.rs www.svilajnac.rs Languages: Serbian & English

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ŠABAC

FULLY PREPARED FOR INVESTORS abac is located in western Serbia, on the right bank of the River Sava (103 kilometres upstream of Belgrade). It occupies an area of 795 square kilometres and has 123,000 inhabitants. The regional roads M-19 (Belgrade – Obrenovac – Šabac – Loznica – Mali Zvornik) and M-21 (Novi Sad – Ruma – Šabac – Valjevo – Užice) pass through the municipality. Moreover, Šabac is jus 20 kilometres from the Belgrade – Zagreb motorway, 60 kilometres from Surčin Airport, 82 kilometres from Belgrade and 73 kilometres from Novi Sad. The distance between Šabac and the state border with Bosnia & Herzegovina is 35 kilometres, while the border with Croatia is 40 kilometres away.

ECONOMY

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Economic activity in Šabac is quite dynamic and generates respectable levels of revenue. This is due to a long tradition of entrepreneurship, trade and industry, coupled with a successfully implemented privatisation process and foreign investments. The support provided by the local authorities is also an advantage, as are simplified procedures. Šabac’s dominant economic branches are the chemical, pharmaceutical and metal processing industries; machine production, food processing, construction and construction materials production, wood processing, upholstery production, textiles and graphics industry. Some 68% of Šabac’s total population is work active; 12% of the local workforce holds a university or a college degree, while 43% are high school graduates. The average gross monthly salary in 2008 was €473 per capita. There are close to 4,500 registered companies, 30 banks and six insurance companies in Šabac.

INDUSTRIAL ZONE The greatest development potential in the municipality is in the Northwest Industrial

Zone, which is deemed to be of national importance. The zone occupies an area of 921 hectares, 600 hectares of which owned by the municipality. It is just three kilometres from downtown Šabac and is located along the M-19 regional road and the River Sava, with pan-European Corridor 10 just 24 kilometres away. The zone is yet to be divided into individual land plots, which means that a potential investor is free to choose which plot to lease, even determining the plot’s size and position.

Municipal authorities are obliged to provide access to complete infrastructure needs (sewage, water supply system, gas distribution network, high voltage electricity and paved roads) within the deadlines stated in contracts concluded with investors.

The local municipal assembly has authored a detailed regulatory plan for the Northwest Industrial Zone, which envisages building industrial railway tracks to enable potential investors to use rail transport, in addition to roads and rivers.

The zone is linked to the Belgrade-Zagreb motorway via the regional road to Sremska Mitrovica. The zone is 24 kilometres from the motorway.

MILOŠ MILOŠEVIĆ, MAYOR OF ŠABAC: “An investor can obtain required permits and documentation within three months.”

Municipal authorities are obliged to provide access to complete infrastructure needs

DEADLINES & PERMITS An investor can obtain required permits and documentation within three months. The municipal authorities in Šabac are the first in Serbia to have been awarded the ISO 9001:2000 certificate, as proof of their efficiency and quality. In 2008 the city was awarded for its adherence to the Law on Free Access to Information of Public Importance.

INVESTMENTS TO DATE The most significant investors in Šabac are U.S. Steel Serbia, Alliance One Tobacco, Interex, Stada, Alas International, Intercell and Mercator.

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CONTACT MILOŠ MILOŠEVIĆ, Mayor of Šabac Gospodar Jevremova 6 15000 Šabac Tel: +381 (0) 15 346 711; 364 100 E-mail: opstina@sabac.org Website: www.sabac.org Languages: Serbian & English

TRGOVIŠTE

DEVELOPMENT YET TO COME Municipal taxes are very favourable compared to other municipalities in Serbia he Municipality of Trgovište is situated in the extreme southeast of Serbia. It covers an area of 370 km2 along the border with Macedonia, while it also borders the municipalities of Bosilegrad, Vranje and Bujanovac. Trgovište’s terrain is typically rural mountain area surrounded by mountains and plateaus to Bele Vode, Dukat, Ćupina Hill, Kozjak and others. The municipality’s centre is the town of Trgovište, which is located at the confluence of three rivers (Tripušnica, Kozjedolska and Lesnička) and the source of the River Pčinja.

Trgovište comprises five local communities and 35 settlements. The municipality has a total of 6,411 inhabitants and the town of Trgovište has 2,300 residents (2002 census). The unique rock formation known as Ðavolja varoš (Devil’s town) is located near the town of Trgovište. At its peak is the Church of the Holy Virgin, which dates from the fourteenth century. The proximity of the Prohor Pčinjski Monastery is also of special importance.

The municipality is connected to Corridor 10 and the regional road R-125, which passes through the River Pčinja Valley towards Bosilegrad.

ECONOMY The further development of Trgovište is based on the areas vast expanses of clean environment. The council is developing fruit growing, vegetable and potato production and the gathering of berries and herbs; honey production and the domestic cottage industry (about 120 tonnes of wild blueberries and about 200 tonnes of mushrooms are reaped annually in the municipality); the Municipality already has good experience in cattle and sheep farming. The municipality has about 13,000 hectares of forestland – mostly beech, oak and pine – that offers good potential for the development of forestry and wood products: the production of pallets, floor coverings (beech and oak), the production of briquettes and laminates. The development of tourism also relies on the local nature: the River Pčinja and its tributaries, the mountain landscape (flora, fauna, villages), a favourable climate and unspoilt nature. Plans

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DR VLASTA PETROVIĆ, MUNICIPAL PRESIDENT: “The further development of Trgovište is based on the areas vast expanses of clean environment.”

also include the development of hunting and fishing, resorts, mountain and rural tourism. As such, it is necessary to construct buildings such as hotels, hunting reserves and camps along the River Pčinja, as well as mountain cabins and more reservoirs for sport and recreation. The development of industry is based on existing industrial capacities and dynamic of ownership changes. The municipality also has mineral resources and follows research reserves and economic justification for exploitation. Canadian company Dundee is already working in the municipality to this end. The municipality boasts reserves of about 120 million tonnes of raw material for the production of Portland cement, though exploitation has not yet started because of the area’s poor transport infrastructure. The construction of several mini-power plants is envisaged on the River Pčinja, as the ecological potential of the municipality brings advantages but also certain limitations when choosing locations for industrial production. The municipality has about 200 registered companies which operate outside the municipality and use the benefits offered by municipality.

INDUSTRIAL ZONE Construction of the Trgovište industrial zone is planed on area of 1.7 hectares. However, it is currently unregulated and unequipped INVESTOR INCENTIVES Trgovište is one of the most undeveloped municipalities in Serbia and those opting to invest here can gain easier access to funds with lower interest rates and longer grace periods. In addition, Trgovište offers free land with complete infrastructure for any investor who employs more than ten workers. Municipal taxes in the area are very favourable compared to other municipalities in the Republic, while all necessary documents for construction can be obtained within 30 days.The opening of the Kriva Palanka border crossing and completion of the Kriva Palanka – Trgovište road are of great importance to Trgovište, as they represent an alternative route to pan-European Corridor 8.

Plans include the development of hunting and fishing, resorts, mountain and rural tourism

CONTACT DR VLASTA PETROVIĆ, Municipal President Kralj Peter I Karadjordjevic 4, 17525 Trgovište Tel / Fax: +381 (0) 17 452 207 Mob. +381 (0) 64 8173 403; 063 704 2648 Email: predopstrgov@ptt.rs www.trgoviste.rs Languages: Serbian & English

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TRSTENIK

WELCOMING INVESTORS he Municipality of Trstenik is located beside the M-5 road in central Serbia, 32 kilometres east of pan-European Corridor 10 and 30 kilometres from the Ibarska A-road, situated on the planned motorway that will link these two strategic routes. Moreover, the rail lines Belgrade–Bar and Belgrade– Thessalonica both pass through Trstenik. The municipality’s advantages lie in its favourable geographic position and moderate continental climate, natural resources, solid local and regional road network, air traffic potential, educated workforce, absence of so-called dirty technologies, clean countryside and developed primary agricultural production.

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INDUSTRIAL ZONE

Trstenik has three industrial zones. The Prva petoletka facility has around 35 hectares of land available and is ideal for metal processing. The Zapadna Morava facility has five hectares of land available to be used for industrial capacities. The Osaonica complex has 10 hectares of land (also suitable for metal processing activities), while the Central Urban Zone is suitable for erecting shopping malls, hotels and other service facilities. The East Working Zone boasts 34 hectares of land that is ideal for retail trade, construction and the metal processing industry.

year grace period for land development fee and free connection to the utility system.

Expeditious issuing of building permits; exemptions from local taxes and other start-up costs, as well as access to loans from national funds like the Agriculture Development Fund and the Fund for Entrepreneurial Development. We would like to recommend that prospective investors opt for the following branches: metal processing (due to a long tradition and qualified workforce), waste waters and solid waste treatment, construction of small hydro-electric power plants on the River Morava. When it comes to agriculture, the most suitable branches for investing are vegetable greenhouses, collecting and processing of medicinal and aromatic herbs, fruit cultivation and vine growing, production of granulated products, macrobiotic food, medicines and dietary supplements based on honey and medicinal herbs, as well as rural, hunting and culture-related tourism.

STEVAN ĐAKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF TRSTENIK: “Local authorities are required to issue a building permit within 24 hours.”

DEADLINES & PERMITS

Providing that an investor has acquired the various permits required from public enterprises and state institutions and has performed an analysis of the project’s environmental impact (if required), the local authorities will issue building and other permits in the shortest time possible, i.e. within 24 hours.

Trstenik Municipality has three industrial zones

INCENTIVES

INVESTMENTS TO DATE

Trstenik offers potential investors the following incentives: delayed payment of land lease after thee years of land utilization; five-

The most important investments in the municipality to date have been made by ELP, OMV and Frikom (Agrokor).

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CONTACT DRAGIŠA TROŠIĆ Municipal Administration of Trstenik 37240 Trstenik Tel: +381 (0) 37 714 333 Fax: +381 (0) 37 712 530 Mob: +381 (0) 63 102 5030 Email: dragisa.trosic@trstenik.rs Languages: Serbian & English

TOPOLA

FAVOURABLE LOCATION he Municipality of Topola is located in central Šumadija, covers an area of 356.4 square kilometres and has 25,292 inhabitants (population density of 71 people per KM2). The municipality’s central location means it’s just 80 kilometres from Belgrade, 42 kilometres from Kragujevac and 90 kilometres from Kraljevo. All roads that pass through the municipality are important transport routes.

These include the regional roads Belgrade – Mladenovac – Topola – Kragujevac – Kraljevo; Topola – Gornji Milanovac and Topola – Aranđelovac. In terms of tourist attractions, Topola has the Oplenac Foundation and Karađorđe’s Town, both located in downtown Topola. The main eco-

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CONTACT ZORA NEDOVIĆ, Coordinator, Local Economic Development Office; Bul. kralja Aleksandra I, 9 34310 Topola Tel: +381(0) 34 811 273 Fax: +381 (0) 34 811 771 Mobile: +381 (0) 63 847 6338 Email: ler@topola.com www.topola.com Languages: Serbian, English & Russian

TUTIN

nomic branches here are agriculture and tourism. The municipality has a favourable geographic position, good roads, unspoilt countryside that’s perfect for tourist activities, organic food production and fruit & vegetable processing facilities.

“The local authorities have various incentives for investors, such as low land development fees,” says the municipality’s president, Dragan Jovanović. Provided a prospective investor has already obtained other required documentation, a building permit will be issued in just one day. So far, the biggest investors in the municipality have been retail, tourism and catering companies, as well as stone and metal processing enterprises and agriculture companies.

FURNITURE PRODUCTION CENTRE Local authorities will issue documents necessary to commence building works within two months he Municipality of Tutin is located in the Sandžak County of southwest Serbia. It stretches across 741 square kilometres and has 30,054 inhabitants. The M-2 (Adriatic motorway) and M-22 (Ibarska A-road) both pass through the municipality. The dominant economic branches here are furniture production, wood processing, agriculture, dairy production, construction and retail trade. The municipality boasts land suitable for an industrial zone, though it doesn’t have adequate infrastructure next.

Local authorities are currently putting together plans and projects to construct a free industrial zone in Leskovo, near the Belgrade – South Adriatic (via Požega and Pešteri) motorway. Tutin authorities will al-

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CONTACT BAJRAM ALJOVIĆ Husein-bega Gradaščevića 7 36320 Tutin Tel: +381 (0) 20 812 025 Mob: +381(0) 63 392 444 Email: razvojtutin@yahoo.com www.tutin.rs Languages: Serbian, English & Russian

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so offer free consultancy services to potential investors, while offering several incentives, such as reduced utility costs and other fees. The branches most suitable for investments are organic food production, gathering/processing medicinal herbs and forest fruits, producing electricity from renewable energy sources, agriculture, construction, furniture production, wood processing, tourism and catering. “Local authorities will issue documents necessary to commence building works within two months,” says Bajro Gegić, municipals president. The biggest investors in Tutin to date have been Dallas, Elan, Jogi, Jasen, 23. Novembar, Holcmann, Braća Dacić, the Zornić Dairy, Hanes and Hydrowind.

UB

GOOD INVESTMENT CONDITIONS he municipality of Ub is located in western Serbia and covers an area of 456.7 km2. It is within close proximity of Belgrade, giving it a geostrategic advantage over other municipalities in the Kolubara County. The municipality has around 34,000 inhabitants (2002 census), with 6,300 living in the Town of Ub and some 27,700 inhabitants in the municipality’s 37 other settlements.

The municipality’s central and north-eastern parts are mainly flatlands; riverbank plains beside the Tamnava, Ub and Kladnica. Ub is a well connected by road to nearby municipal hubs, regional industrial centres and major cities. A network of regional roads link the municipality to the main road M-4, M-21, M-22 and M-19, and onwards to all other cities in the Republic of Serbia.

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ECONOMY The municipality is rich in mineral raw materials, boasting deposits of gravel, sand, heat-resistant clay, lignite and building stone. It also offers water sources that are still untapped. The area configuration and characteristics are suitable for the development of agriculture, with a high percentage of fertile land in the municipality and other forested areas.

The villages surrounding Ub town specialise in agricultural cultivation within plasticized greenhouses. The lower parts of the river valleys offer the most fertile land for agriculture, while the hilly terrain is suitable for orchards.

In 2007 there were 151 active companies in the municipality: 143 classed as small enterprises (up to 50 employees) and eight as mediumsized firms. Ub has a total of 1,851 employees (2007 figures), with 986 in small companies and 865 in medium-sized companies. Average gross earnings per capita in 2007 amounted to 37,496.00 dinars per month. Total income generated in 2007 was 6,715,392,000.00 dinars, while total expenditure accounted for 6,459,137,000 Companies based in the municipality of Ub generated profits worth 256,255,000 dinars. The greatest revenue, expenditure and profit margins were seen in the processing industry, while the greatest losses were in the field of transport and the real estate business. The total value of Ub’s foreign trade ex-

change in 2007 was $6.2 million, 43% of which came from EU countries. Exports were valued at $3.8 million and imports at $2.4 million, creating a foreign trade exchange surplus worth $ 1.4 million. The most important export items are plastic products ($1.3 million), construction materials ($1.1 million) and meat ($ 0.5 million), followed by aluminium, iron and steel products.

Employment growth of 8.8%, or 322 workers, was achieved in 2007. This left a total of 3,988 citizens registered as employed (of which 1,047 were classed as self-employed) and 2,364 unemployed jobseekers in the Ub Municipality.

VLADISLAV KRSMANOVIĆ, MUNICIPAL PRESIDENT: “The municipality offers special benefits for investors hiring new employees”

INDUSTRIAL ZONE The Municipality has adopted an urban plan for an industrial zone to be built on the area of 70 hectares alongside the road Ub - Obrenovac Belgrade. Local authorities only own about five hectares of the 70-hectare site, with the rest belonging to Energoprojekt, Plam Isotherms and the private sector. The zone is fully equipped with communal infrastructure. The Ub East Industrial Zone is to be located along the projected route of the future Zagreb - South Adriatic highway and the required land has already been expropriated.

INCENTIVES The Municipality of Ub has provided incentives for investment through reduced obligations to pay property taxes, local utility charges, fees for reassigning construction land; offering compensation for arranging construction land, compensation for environmental protection and improvement, exemptions from municipal administrative fees and construction land lease charges. In addition, the municipality offers partial compensation for the land use change and urban development plans. The municipality also offers special benefits for investors hiring new employees, while prospective investors can also count on obtaining all necessary permits and documentation in a very short period of time.

More than 2,000 local people are engaged in sport and by year’s end a modern sports hall will be completed. Ub also offers a city pool and lakes Viš in Paljuve and Fazanerija.

The total value of Ub’s foreign trade exchange in 2007 was $6.2 million

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CONTACT VLADISLAV KRSMANOVIĆ, Municipal President 3. October 4, 14210 Ub Tel: +381 (0) 64 816 0713 Email: predsednik@opstinaub.org.rs c/o Stefan Teodosić , 3. October 4, 14210 Ub Tel: +361 (0) 14 411 622 Mob: +381 (0) 64 816 0715 stefan.teodosic@opstinaub.org.rs www.opstinaub.org.rs Languages: Serbian, English, French & Italian

UŽICE

DEVELOPED INFRASTRUCTURE & INDUSTRY žice is the biggest town in western Serbia and the administrative, economic and cultural centre of the Zlatiborski County. The municipality covers an area of 666.72 square kilometres and has a population of 83,022. Užice has a developed transport infrastructure, with construction works soon to be concluded on a gas pipeline and reconstruction of the Ponikve Airport.

ECONOMY Export-oriented industry is the backbone of Užice’s economy. The metal processing industry’s most significant area in Užice is production of copper and semi-finished aluminium products. Other economic branches present in Užice include construction, agriculture, transport, tourism, retail trade, catering, banking, health services and culture-related activities. The municipality has a total of 1,509 companies and 3,248 shops. Great potentials lie in livestock breeding and fruit growing, while Užice is also known for its unique products with protected geographical indication (delicatessen products and local brandy). Some 55% of the municipality’s territory is covered in arable land, while 36.4% is forestland. Užice is one of the most developed municipalities in Serbia, with annual GDP growth of 6.78% significantly higher than the national average of 4.77%. The scope of import and export activities is almost the same, with imports covering 92% of exports. The most significant companies in this area are Aluminium Rolling Mill Impol-Seval, Putevi AD, MPP Jedinstvo and INOS SINMA. INDUSTRIAL ZONE The municipality has a contemporary indus-

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JOVAN MARKOVIĆ, MAYOR OF UŽICE: “City authorities have decided to exempt investors from paying local utility fees.”

trial zone called Sevojno. A total of 90% of products produced at the Sevojno Zone are exported.

The regional road and Belgrade-Bar railway both pass through the zone, which is equipped with complete utility and transport infrastructure. The zone is set to be extended to include an additional 40 hectares of land. Municipal authorities are also working on establishing the Sevojno Free Customs Zone, which will encompass the entire aluminium and copper rolling mill complex and 40 hectares of land located alongside the regional road and railway. Free land plots for greenfield investments are situated in close proximity to the existing industrial zone. Relevant spatial planning documents envisage that this zone be extended in the direction of Požega.

The municipality has a contemporary industrial zone called Sevojno

CONTACT SLAVKO LUKIĆ Dimitrija Tucovića 52, 31000 Užice Tel: +381 (0) 31 513 655 Fax: +381 (0) 31 513 499 Mobile: +381 (0) 65 620 14 36 Email: slavko.lukic@opstinauzice. org.yu; slavkolukic@yahoo.com www.graduzice.org Languages: Serbian & English

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INCENTIVES City authorities have decided to exempt investors from paying local utility fees, as was the case when film director Emir Kusturica constructed a tourist resort called Mećavnik on Mokra Gora Mountain.

The authorities here offer incentives to those investors who plan to invest in the wood and metal processing industries, as well as tourism.

PERMITS & DEADLINES The city authorities have set up a one-stopshop and local economic development office, which will issue required permits within a maximum period of 60 days.

INVESTORS TO DATE The most relevant invesmtnets in Užice to date include Impol Seval (aluminium rolling mill), East Point (copper rolling mill), Putevi Užice, and Jedinstvo Užice.

VALJEVO

GOOD HOST FOR NEW BUSINESS Industrial zones available for a variety of industries

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he City of Valjevo is situated in the northwest of Central Serbia and, along with its municipality, has a population of almost 100,000 (2002 census: 96,761). Valjevo is the economic, cultural and academic centre of Kolubara County. It covers an area of 905km2 and is at the intersection of two important roads that occupy a central position in the road network of western central Serbia: the M-4 and M-21 A-roads. Valjevo is only 98 kilometres from Belgrade.

ECONOMY Valjevo’s most developed sectors are agriculture and the food processing industry, chemicals, metallurgy, building materials, printing, textiles, leather and footwear industries, business co-operatives and the processing of industrial waste; wood processing, construction, trade, tourism and catering, transport and telecommunications, infrastructure and ecology. The local private sector is particularly developed and diverse, consisting of many SMEs, independent craftsmen and trade shops. In the first half of 2009 the municipality had a total of 32,575 employed residents.

INCENTIVES Due to the quality of road infrastructure and relative proximity of the airport and port of Belgrade, Valjevo naturally offers potential investors business opportunities on the Serbian market and internationally. Agreements signed by the Republic of Serbia pertaining to various levels of duty free access to foreign markets (EU, U.S., Russia and Southeast Europe), and covering the widest array of industrial and agricultural products, ensures that Valjevo could prove an excellent choice for future investors. There are also low tax rates (corporate profit tax of 10%; VAT of 8% or 18%; income tax of 12%) and a number of incentives for investment, including public subsidies of €2,000 to €10,000 per new employee for direct investors; a ten-year profit tax haven for large investments, as well as exemption from tax-

ation on salaries and social insurance contributions for workers younger than 30 and older than 45. These combine to provide envious conditions for business start-ups in Serbia. Specific potential exists in the Valjevo food industry; production and processing of fruits or juices and in the field of livestock and butchery. Moreover, opportunities also lie in the field of construction, building materials’ production and exports of goods and services. Another important commercial possibility is the exploitation of local geo-thermal water, as well as the development of religious, health and spa tourism.

INDUSTRIAL ZONES The Municipal Master Plan envisages three industrial zones covering a total area of about 250 hectares. All three industrial zones are earmarked for mainly commercial purposes: building materials’ production, construction, cottageindustry manufacturing and warehousing. There is the possibility of mixed, residential-commercial purposes, commercial facilities, utilities, infrastructure systems and existing housing. New industrial facilities are approved on the basis of environmental conditions – at least 30% of the total area under construction must be set aside for green areas and there must be a minimum of one parking space on each 100m2 of gross building area.

INVESTMENTS TO DATE Slovenian company Gorenje recently leased an additional five acres of land, on which the electrical appliance manufacturer plans to build an extension to its existing production facility, creating 500 new jobs in the process. EPS Factory Austrotherm has invested €3.5 million to carry out the very first greenfield investment in Valjevo. Italian textile company Golden Lady has invested €12 million and employs 500 workers, while Intermarche is another successful investor in Valjevo.

ZORAN JAKOVLJEVIĆ, MAYOR OF VALJEVO: “Low tax rates, and many incentives are the reason for investing in Valjevo”

The Municipal Master Plan envisages three industrial zones covering a total area of about 250 ha

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CONTACT ZORAN JAKOVLJEVIĆ, Mayor of Valjevo Karađorđeva 64, 14000 Valjevo Tel: +381 (0) 14 294 882 Email: gradonacelnik@valjevo.org.rs www.valjevo.org.rs Languages: Serbian, English & Russian

PWC

BARRIERS ‘ALMOST NEGLIGIBLE’

After analysing the pros and cons of a variety of investment locations, top managers of large multinational companies might decide that zinvesting in this part of the Balkans is a good idea

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hether the talk is of “green shoots” for the economy or simply acknowledging the fact that even in globally adverse conditions there are still opportunities for investors, PricewaterhouseCoopers has published an updated version of their Guide to doing business and investing in Serbia. As can be expected, the Guide provides an overview of current legislation and the regulatory environment, as well as chapters on establishing a business, PETER BURNIE the labour environment and taxation. This is PWC a practical book prepared by consultants who are advising companies on a daily basis.

If top managers of large multinational companies read the latest issue of the Guide, they might decide - after analysing the pros and cons of a variety of investment locations - that investing in this part of the Balkans is a good idea. The Guide can also provide foreign investors already doing business in Serbia with the latest tax, legal and financial regulatory information up to June 2009. Additionally, the latest issue of this publication gives a breakdown of the economic, demographic and political situation in Serbia, offering an overview of all the issues that PwC believes could be of interest to potential foreign investors. Commenting on the investment climate in Serbia, the Authors of Doing Business Guide say that since 2001 Serbia has been encouraging foreign investors to invest in the Country, stating that barriers for investments are almost negligible. Peter Burnie, company partner leading Tax and Legal Services at PwC Serbia, explains: “This Guide is snapshot of the Serbian investment climate. It can act as a reminder for those already in business here about how the environment has developed and is also a tool for potential investors and PwC clients worldwide to highlight Serbia and its investment potential.”

The Guide to doing business and investing in Serbia is currently available in English, while a German language version will be available from September. Guides such as these often prompt investors and business people to consider the subject country in a new light. It provides a chance to consider the relative merits of a country for trade, business and investment.

COMPETITIVE DRIVERS FOR SERBIA When we look at trade agreements, Serbia occupies a unique position. The country’s geographical position and its network of free trade agreements enhance Serbia’s competitive position. To high-

light this, one can point to membership of CEFTA, the free trade agreement with Russia and Belarus and the interim trade agreement with the EU. The continued development of these agreements and further progress toward the EU will enable Serbia to cement its position in the heart of Europe with ties to the east. The development of these trade pacts and relationships is also the guiding hand behind much of the regulatory development in the trade arena. Another feature highlighted in the Guide as comparing favourably with regional neighbours is the taxation system. Peter Burnie comments: “there are a number of quite positive features of the Serbian tax system. It particularly rewards capital investment and the generation of new employment through its policy of available tax credits.”

These credits, coupled with a low corporate income tax rate of 10%, make the direct tax costs for corporate taxpayers among the lowest in the region. The headline tax rates for VAT and other indirect taxes are also not out of line with those in the region. This legislative basis provides the framework for a competitive corporate tax regime. The aligning of local accounting standards with International Financial Reporting Standards (IFRS) a number of years ago has also enabled the Serbian financial regulation to move largely in step with international standards, “although the integration of IFRS principles and the documentation requirements for tax compliance is still some way from being complete” notes Burnie.

This highlights one aspect of investing in Serbia that continues to concern business: the level of bureaucracy and the potential for corruption that can follow from complex, opaque and seemingly arbitrary rules. While the possibility for legal redress is of course available – with all investors (foreign or local) being guaranteed equal protection before the law – the path to a legal solution can be long and complex. However, reform is underway.

With the path to the EU firmly in sight, many aspects of Serbian law are being reviewed and new versions of some key business laws are working their way through to parliament.

Ultimately, the ability of Serbia to continue to retain and attract investors during the current economic downturn, or when “green shoots” promote sustained growth, will be how the regulatory environment and business climate is implemented and applied by those who are part of the process: lawmakers, regulators and business people. On this score, Serbia is fortunate to have a relatively well educated and highly skilled workforce available.

The latest Guide to doing business and investing in Serbia can downloaded from PwC Serbia’s website: www.pwc.rs

74 / The Investors Guide - Serbia 2009/2010

VARVARIN

AGRICULTURE & TOURISM arvarin is a small town and municipality in the Šumadija region of central Serbia.

The town has a population of 2.198, while there are 20,122 living in the municipality as a whole (2002 census). It is part of Serbia’s Rasina County. The territory of Varvarin Municipality has an area of 249km2, which represents 4.7% of Rasina County. The municipality has 21 small settlements as well as the town of Varvarin, which is the administrative, economic, educational, cultural, health and transport centre of the municipality.

The municipality has about 70 companies, which are engaged in producing different goods from secondary raw materials, food production, production of building materials, commercial services, etc. Some local companies have entered the privatisation process, which is expected to lead to the increased functionality of factories and increased production in the Municipality of Varvarin. At present, the economic capacity of Varvarin relies on PIK Varvarinsko polje and chicken farm Brojler.

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Together with the Municipality of Ćićevac, Varvarin has formed a joint venture company with American company L. A. International for the construction and subsequent distribution and maintenance of a gas pipeline network. Moreover, a contract was signed with the European Agency for Reconstruction for a donation of €620,000 to reconstruct the local water supply. At the beginning of the year, Varvarin was visited by group of businessmen from Israel interested in construction of the local landfill facility, while there has also been interest from other foreign investors.

In addition to agriculture, Varvarina’s greatest potential lies in the development of tourism.

Tourism in Varvarin has all necessary preconditions in the areas of natural beauty around the Great Morava and Western Morava rivers, the River Kalenić and forests Juhora and Blagotina.

Furthermore, tourism can also be developed to promote the area’s many memorial fountains, springs, excursion sites, historic and cultural monuments, churches and monasteries.

TOURISM PERSPECTIVE

CONTACT ZORAN MILENKOVIĆ, Municipal President Trg Marina Marinović, 37260 Varvarin Tel/Fax: +381 (0) 37 789 263 Email: sovarvarin@ptt.rs www.varvarin.org.rs

VLADIMIRCI

Agricultural communities with potential for hunting tourism development ladimirci Municipality is located about 70 km west of Belgrade in Mačvanski County.

To the northeast it borders the River Sava (28 km); east lies the Municipality of Obrenovac, to the south is the Municipality of Kočeljeva and to the west is Šabac.

The municipality covers 338km2 and has 20,373 inhabitants (1,400 registered unemployed). It’s population is particularly engaged in agriculture, thanks to the fact that 28,298 hectares (or 81%) of agricultural land covers its total territory.

Currently, Vladimirci’s economic power is not proportional to its potential and capacities.

As such, the area is suitable for prospective investments, both in economic and agricultural capacities.

Vladimirci has an extremely heterogeneous network infrastructure, including a road net-

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work covering 898 kilometers, a supply network with a length of about 400 kilometers, a fixed-line telecommunications network with more than 6,000 connections and good coverage of all areas of municipal electricity.

Vladimirci has great proximity to major centres, good road links, a well preserved environment and healthy food. It also has springs of mineral and geothermal waters, cultural facilities and unused buildings, which can be used for the development of hunting and recreational tourism.

The outline of the future economic development of Vladmirci could be agricultural land suitable for organic food production and mineral wealth.

According to geological surveys, the territory of the municipality offers hot spring water supplies to a depth of about 1,100m.

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CONTACT MIJAILO MILOVANOVIĆ, Municipal President Svetog Save 34, 15225 Vladimirci Tel: +381 (0) 15 513 141; 514 483 Tel/Fax: +381 (0) 15 513 146 Email: sovlad@gromnet.net www.vladimirci.org.rs

VLADIČIN HAN

LOW COST INVESTMENT

Offering excellent transport links to major centres

V CONTACT NENAD MITROVIĆ, Municipal President Svetosavska 1, 17510 Vladičin Han Tel: +381 (0) 17 473 073; 472 360; 472 260 Fax: +381 (0) 17 473 073 Email: info@vladicinhan.org.rs www.vladicinhan.org.rs Languages: Serbian & English

VELIKA PLANA

ladičin Han covers an area of 366 km² and has 24,676 inhabitants. Belonging to a group of municipalities in the Southern Morava Valley, Vladičin Han includes 51 villages and is close to international borders (67km southwards to Macedonia and 52km east to Bulgaria).

The town lies on major road and rail links, including the Belgrade - Niš (Corridor 10) Motorway, which leads on to Skopje and further down to Thessalonica and Athens.

Vladičin Han is 333km from Belgrade, 112km from Priština, 409km from Novi Sad, 91 km from Niš and 112 km from Skopje.

Municipal leaders believe that Vladičin Han is an excellent investment destination. It offer easy access to consumers, with a market of a million people within an hour’s drive.

Vladičin Han has an efficient and modern mu-

nicipal administration and developed infrastructure. All necessary information needed can be provided within several seconds, thanks to the municipal database set up to assist in the preparation of starting a business, and all required paperwork for the legal regulation of a business can be obtained within a week. The municipal administration meets and helps investors, intervening on their behalf with the highest state authorities. The council provides advice from the most competent people in the most prominent Serbian economic, scientific and university institutions.

The municipality also assists in negotiations with banks, investors, suppliers and distributors, domestic and international financiers, potential partners and customers.

Investment costs in Vladičin Han are very low, the municipality insists.

EXCELLENT LOCATION Velika Plana Municipality has two industrial zones

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CONTACT CHIEF OF THE DEPARTMENT OF COMMERCE AND LOCAL ECONOMIC DEVELOPMENT Miloša Velikig 30, 11320 Velika Plana Tel: 381 (0) 26 514 262 Mob: 381 (0) 64 860 3203 Email: sovplana@verat.net www.velikaplana.org.rs Languages: Serbian & English

he Municipality of Velika Plana has a very favourable geographical position, lying as it does in the central area of the Republic of Serbia along Pan-European Corridor 10. It occupies an area of 345 km2 and has 50,000 inhabitants.

Velika Plana is predominantly an agricultural-industrial area with fertile land.

ECONOMY The Velika Plana Veterinary Centre is world renowned for its selection and breeding composition of quality livestock.

Investments in this area of the economy represent a major development perspective for the municipality.

Velika Plana already has a developed metal industry, building materials and construction operators, trade and other activities, in addition to overnight tourism capacities of 470 beds.

INDUSTRIAL ZONE The municipality has two industrial zones: the South Industrial Zone, with a total area of approximately 27 hectares (approx. 15ha already equipped with municipal infrastructure); 76 / The Investors Guide - Serbia 2009/2010

and the North Industrial Zone, which lies just 1.5km from the ring-road link to the BelgradeNiš Motorway (Corridor 10) and covers a total area of about 65ha (20ha of which is already occupied for commercial purposes).

The North Zone boasts complete infrastructure in areas of the site that have been under construction, while the undeveloped area relies on existing infrastructure with the possibility of expansion.

INCENTIVES The municipal authorities envisage the waving of the building land development fee for investors.

PERMITS & DEADLINES “Licenses are obtained in the shortest possible time with respect to the legal terms and legal procedures,” said Dejan Šulkić, Municipal President of Velika Plana INVESTORS TO DATE Existing investors in Velika Plana are DEAMA (Italy), PEI (Italy), KEO (Italy) and ASA IBELIK.

VELIKO GRADIŠTE

IMPORTANT RIVER PORT

Tourism and transport require serious investment

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he Municipality of Veliko Gradište is located in eastern Serbia and belongs to Braničevo County. It covers an area of 344 km2 and has a population of 27,000. To the north, Veliko Gradište is bordered by other Danubeside municipalities and a length of the great river separates Veliko Gradište from neighbouring EU member Romania.

The southern part of the municipality is traversed by Belgrade-Kladovo A-road and rail line, while Belgrade is about 110 km away.

Veliko Gradište boasts a river port on the Danube able to cater for all types of ships, while most of the municipality’s area is made up of arable land with gardens, vineyards and crop fields. The municipality is also rich with hunting grounds.

ECONOMY The structure of the local economy includes the sectors of agriculture, tourism and industrial processing. Agriculture plays the most important role in the municipality, marked mainly by the cultivation of corn, wheat, industrial fodder, fruits and vegetables.

Company Ramski Rit has 700 hectares of arable land, pig farms and bullocks, a feed blender, a mushroom plant, etc.

The most significant industrial production facilities are vegetable oil refinery Dunavka and the local industrial bread-making capacities. The leader in the local metallurgy sector is company Čelik ‘. The basis for local tourism development is provided by the rivers Danube and Pek, as well as the stunning Silver Lake.

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he Municipality of Vranje covers an area of 860 square kilometres and the motorway and Budapest-Belgrade-Skopje-Athens railway are just three kilometres from the town. Vranje has a long tradition in the textiles industry, wood processing sector, machinery, metal processing, tobacco and leather processing.

There are several business sections in the town, including industrial zones in Bunuševac, Suvi Dol and Radnička Street, as well as several smaller industrial zones.

Furthermore, “the municipality plans to develop an industrial zone in the village of Pavlovac (in close proximity to Vranje), which will stretch across 100 hectares of land,” says Miroljub Stojčić, Mayor of Vranje.

Municipal authorities provide the following incentives for investors: exemption from

paying local utility fees, land utilisation fees and land lease charges for a period of three to five years; reduced land development fees by 20% to 30%.

The Spatial Planning Act is issued in 10 days, while 30 days is required for municipal authorities to issue a project’s approval.

A building permit can be obtained within 10 days and it takes seven days to complete the registration of construction works.

In order for an investing company to become operational, local authorities need to issue confirmation that a building’s foundations are safe (three days), carry out technical supervision (15 days) and issue an operating licence (10 days).

The most important investors to date are BAT, Canda Farben, Sanch, Hellenic Petroleum, OMV, and Lukoil.

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CONTACT ŽIVOSLAV LAZIĆ, Municipal President Cereal trg 1, 12220 Veliko Gradište Tel: +381 (0) 12 662 120 Fax: +381 (0) 12 661 128 Email: sovgradiste@ptt.rs www.velikogradiste.org.rs Languages: Serbian & English

VRANJE

CONTACT BOBAN STANKOVIĆ 5. Kongres 1, 17500 Vranje Tel: +381 (0) 17 402 334 Fax: +381 (0)17 421 576 Mobile: +381 (0) 64 890 75 05 Email: privreda@vranje.org.rs www.vranje.org.rs Languages: Serbian & English

VRNJAČKA BANJA

SPA TOURISM CENTRE

The municipality is ready to co-operate with potential investors fully

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CONTACT ZORAN SEIZOVIĆ, Municipal President; Kruševačka 17 36210 Vrnjačka Banja Tel: +381 (0) 36 612 300, 612 627 Fax: +381 (0) 36 612 624 Email: vrnjci_spa@ptt.yu www.opstinavrnjackabanja.com Languages: Serbian & English

ŽAGUBICA

rnjačka Banja is the centre of spa tourism in Serbia. There are six thermal springs in the town, two of which have homeopathic thermo-mineral water. The municipality is ready to co-operate with potential investors fully, to mutual advantage.

In terms of tourist facilities, a wellness centre, four and five-star hotels and children’s amusement park called Beli Izvor are all being built on outlying locations.

The Beli Izvor site is situated between the Lipovački Creek and the River Lipovačka. It has paved access and a thermo-mineral spring. All facilities undergoing development are of exceptional quality in

All facilities undergoing development are of exceptional quality in spa tourism

PURE NATURE; GOOD WATER

agubica is located in eastern Serbia and makes up part of the Braničevo County.

The Municipality is spread across 760 square kilometres and is home to 16,919 residents in 17 settlements and villages. The territory of the municipality is marked by the lowland hills and mountainous climbs of the Homolje mountains and valleys where the spring of the River Mlava is sourced. Žagubica is linked to pan-European Corridors 10 and 7, while the main road is the Belgrade – Bor regional road. Žagubica accesses the River Danube via regional roads through Majdanpek and Donji Milanovac. The Municipality’s advantages include a clean environment, great potential for the construction of a mini hydro-electric power plant and opportunities to bottle high quality drinking water. Žagubica has favourable climatic conditions for constructing wind farms, as well as ample natural and cultural resources for the development of tourism, cattle breeding, apiculture and the production of health food. Contemporary Žagubica has minor economic capacities for wood processing, industrial and decorative stone, coal mining,

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CONTACT Dr.Dragi Damnjanović, Mayor of Zagubica Square exemptions 1, 12320 Žagubica Tel: +381(0) 12 443 153 Fax: +381 (0) 12 443 237 Email: opstinazagubica@beotel.rs www.zagubica.org.rs

spa tourism. Plans also envisage the building of an open-air or closed aqua park near the Olympic Pool (in the vicinity of the Snežnik Spring), with accompanying accommodation.

There is a possibility of making Greenfield investments to construct sports and recreational facilities, minihotels, ethno- and eco-friendly villages and hotel accommodation on the Goč Mountain and along the banks of the West Morava River.

Investments can also be made in retirement homes, specialised health clinics, children’s resorts, wood processing capacities and organic food production.

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trout farming and an existing tourist complex near the River Mlava. The Municipality has conducted research and devised a master plan for the exploitation of gold and the development of tourism on Mount Beljanica. Žagubica is yet to develop a bespoke industrial zone, though the educational structure of the population is relatively favourable, boasting experts in all fields.

The municipality offers prospective investors a cheap workforce and has an average monthly salary of 31,000 dinars. Local authorities have developed plans and convenient locations for the construction of a wood processing plant, wind farm, mini-hydroelectric power plant, water bottling facility, the exploitation of decorative and building stone and development of a winter sports and tourism complex in Žagubica and a tourist complex on Mount Beljanica.

The municipality is ready to provide investors with all permits needed to start work on individual projects in a very short period of time.

Various potential investors have expressed interest in the previous period, but potentials are yet to be realised.

VLASOTINCE

FAVOURABLE LEASE CONDITIONS

Vlasotince offers fantastic prerequisites for the development of agricultural production he Municipality of Vlasotince is located in the eastern section of the Leskovačka Valley in southeast Serbia, near the confluence of the rivers Vlasina and South Morava and at the foot of mountains Suva Planina, Kruševica, Čemernik and Ostrozub. The municipality covers an area of 303 square kilometres and, according to the 2002 census, has 33,312 inhabitants living in 48 towns and villages. Vlasotince borders four other municipalities: Gadžin Han to the north, Babušnica to the northeast, Crna Trava to the southeast and Leskovac to the west/ southwest. The international Corridor 10 motorway is five kilometres from Vlasotince in the South Morava Valley. Other important transport routes include the Moravska motorway ring road (the Leskovac-VlasotinceSvođe-Crna Trava route, which rejoins the motorway via the Vlasinsko Lake, Surdulica and Vladičin Han) and the Leskovac-VlasotinceBabušnica-Pirot section. The Municipality of Vlasotnice has diverse natural resources that provide a good basis for the economic development of the municipality. Vlasotince has good quality agricultural land, forests and water resources, which are all favourable for the development of tourism.

INDUSTRIAL ZONE The municipality plans to expand the current industrial zone, while existing companies are being transformed into production facilities generally established alongside relevant transport routes.

Local authorities lease land plots under very favourable conditions (ideal for SMEs), while plans are in place to expand the infrastructure, especially in the industrial zone and the centre of Vlasotince.

The municipality also provides adequate finan-

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cial incentives, applying best practice methods from Europe and Serbia, while continuing to promote Vlasotince’s economy, its natural resources and tourist potential. The industrial zone is a mere five kilometres from the motorway (Corridor 10) and 15 kilometres from the railway, while the M-9 regional road runs through Vlasotince. Local authorities have earmarked 200 hectares of land for the further development of the industrial zone. The land boasts electricity, water supply and a sewage system and several companies are already operational there, currently occupying 20 hectares of land.The municipality offers locations for both greenfield and brownfield investments under very favourable conditions. The local authorities are dedicated to creating an appealing environment for domestic and foreign investors, with the goal of establishing as many small and medium-sized enterprises as possible in economic branches like the textile industry, electrical engineering, construction material production and wood processing.

Agricultural production should also be developed, due to the municipality’s fantastic prerequisites for its development.

DEADLINES & PERMITS An investor can obtain all required permits and documentation within a maximum of two months.

SRĐAN ŠUŠULIĆ, PRESIDENT OF THE MUNICIPALITY OF VLASOTINCE: “All permits will be issued within two months at the latest.”

Ideal location for small and medium-sized enterprises

INVESTMENTS TO DATE The municipality’s most important investments to date include EL-Rad (electrical industry) – Slovenia; Fiorentino (textile industry) – Italy; Gruner (electrical industry) – Germany; Cementni proizvodi (construction industry) – Serbia; Manufactura Europea (textile processing) – Serbia.

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CONTACT BOJAN CVETKOVIĆ Trg oslobođenja 12, 16210 Vlasotince Tel: +381 (0) 16 875 552 Fax: +381 (0) 16 875 552 opsta.uprava@vlasotince.org.rs www.vlasotince.rs Languages: Serbian & English

ZAJEČAR

FREE LAND

One of Zaječar’s major advantages is the south-stream pipeline to pass through Bulgaria he City and Municipality of Zaječar is located in the central part Timočke Krajina and includes Zaječar Valley, the eastern part of Crnorečka, the northern part of Knjaževačka Valley and southern parts of Negotin. The territory of Zaječar covers an area 1069km2 and the city was built at the intersection of main roads, linking it to international Corridor 10 and the border crossing with Bulgaria (7 km away).

The nearest commercial airport is 100km away in Niš, while the Prahovo Port on the Danube is 70 km away. One of the major advantages of the City of Zaječar will be the gas pipeline to pass through Bulgaria, Zaječar to Paračin as part of the so-called South-Stream pipeline.

T BOSKO NIČIĆ, MAYOR OF ZAJEČAR: “all required permits within a few days of submission of documentation.”

ECONOMY Zaječar’s environment provides all natural conditions for the development of agriculture. Local industry is diverse: metal processing, food processing, glass and porcelain industry, textiles, production of electricity and also mining (anthracite mine Vrska Čuka; lignite mine Lubnica and quartz sand mine Srbokvarc).Zaječar City has very interesting tourist destinations and facilities, as well as great potentials for tourism development. The city is currently preparing strategies of local economic development for the City Zaječar and key areas identified in the strategic planning process include rural development, tourism promotion, creating conditions for the development of small and medium enterprises and attracting investment, improving infrastructure, better use of energy and the development of high technologies.

INDUSTRIAL ZONE The main existing industrial zone, Timočanka, covers an area of 45.939m2 and is 100% privately owned, with 8.518m2 of halls, fully equipped.

The zone is located in the second city zone, only 1.5km from the city centre, along the Zaječar - Negotin road, located 80 km from the Belgrade – Skopje motorway, 7km from the Bulgarian border, 110km from Niš airport and 70km from the Danube Port of Prahovo. Zaječar’s Urban Master Plan provides for the development of another industrial zone along the route to Negotin, covering an area of 700,000m2. The city has nearly 20 additional lots that are also suitable for investment locations.

INCENTIVES Incentives offered by the local government include free usage of existing facilities in incubator centres for all investors employing 50 or more workers. Investors could potentially still benefit from the free land (without the halls) and fully equipped infrastructure on an area of 1.20 hectares. The municipality is expecting the following industrial sectors to be further developed: primary agricultural production, processing agricultural products and tourism.

The city owns 20 plots for potential investors

CONTACT NADEŽDA RADENKOVIĆ, Deputy Mayor for projects of importance to the City of Zaječar Dušan Mladenović, Deputy Mayor for local economic development Liberation Square no. 1 19000 Zaječar Tel: +381 (0) 19 421 199, 444 600 Fax: +381 (0) 19 421 712 Email: ozajecar@verat.net www.zajecar.info Languages: Serbian & English

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PERMITS & DEADLINES In order to meet investors’ needs, employees of the City would issue all required permits within a few days of submission of the necessary, completed documentation.

INVESTMENTS TO DATE Significant investments were made during the past five years by companies such as Moraviaehergo from Czech Republic, Kiar Serbia, A.D. Imlek BG - Zaječar (dairy), FKZ – Polish privatisation, United Serbian Breweries (Heineken) Zaječarsko, PD Zaječar privatisation worth €2.4 million, Salaš Italy and FMT Zajecar, among others.

ŽABARI

ORGANIC PRODUCTION

The municipality offers exemptions from various administrative and utility fees abari is located in eastern Serbia at the heart of the Lower Pomoravlje County, along the right bank of the Great Morava River. The municipality stretches across 264 kilometres and has 18,247 inhabitants. It is situated at the junction of regional roads Požarevac – Žabari – Svilajnac (R-103), Smederevska Palanka – Velika Plana – Žabari – Petrovac (R-107) and Aleksandrovac – Mirijevo (R-275). The Belgrade – Niš motorway (Corridor 10) is 11 kilometres away, while the Smederevo Port on the River Danube (Corridor 7) is 50 kilometres away, Požarevac is 30 kilometres away and Belgrade 100 kilometres. These transport factors all give Žabari a comparative advantage other neighbouring municipalities.

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ECONOMY Most of Žabari’s population is engaged in agriculture, due to the municipality’s high quality arable land, and agriculture is the dominant economic branch here.

However, the municipality’s food processing and business facilities are currently underdeveloped and require investment to provide an adequate basis for further economic development and higher value of this area. When it comes to the local revenue structures, agriculture and forestry account for 85.42% of income. Privately-owned companies comprise 90.35% of all companies in the municipality. Gross domestic product is 82,410 dinars per capita. According to the National Employment Service, there are a total of 445 unemployed persons in Žabari and 164 jobseekers looking for first time employment.

INDUSTRIAL ZONE The detailed general regulation plan envisages an industrial zone on the right side of the R-107 regional road (Žabari – Velika Plana). The industrial zone has good transport links, a nearby power sta-

tion, water supply, telephone landlines, engine parts factory Petar Drapšin, a silo, cold storage plant and land that can be purchased from private owners. The Municipality of Žabari can offer potential investors unoccupied industrial halls, processing capacities, land, human resources and exemptions from paying various administrative and utility fees, as well as issuing building permits before legally defined deadlines. We would like to recommend the agribusiness zone with processing facilities, bearing in mind that the municipality has abundant raw materials (vegetables, fruit and various agricultural produce), which shortens the journey from the field to the table quite considerably. As the municipality has carried out land consolidation and reclamation on over 8,500 hectares, all prerequisites for installing a water irrigation system have been met. Also, we should mention other comparative advantages like Žabari’s geographic location and clean countryside. This is suitable for organic food production, bearing in mind that the municipality boasts various types of land, due to its diverse climate, territory and agricultural production. The municipality has two natural lakes (Aleksandrovačko and Polatnjansko lakes) and a conifer forest that covers an area of 26 hectares and two monasteries – built in 1805 (the Pokajnica Church in Velika Plana is built in its likeness) and 1854 respectively. The latter religious object is the third biggest of its kind after the Smederevo and Belgrade facilities. It has sleeping quarters and several thermal springs, making it suitable for the development of rural tourism.

PERMITS & DEADLINES Providing an investor has fulfilled all required conditions, the municipality will issue a building permit within the space of just one day.

Although fairly small and poorly developed, the Municipality of Žabari has the necessary spatial planning documentation.

MIODRAG FILIPOVIĆ, PRESIDENT OF THE MUNICIPALITY OF ŽABARI: “The municipality will issue a building permit within the space of just one day.”

General regulation plan envisages an industrial zone on the right side of the R-107 regional road

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CONTACT MIODRAG FILIPOVIĆ, Municipal President Kneza Miloša 103, 12374 Žabari Tel: +381(0) 12 250 130 Fax: +381(0) 12 250 232 Mobile: +381(0) 69 250 2301 Email: sozabari@ptt.rs www.žabari.org.yu Languages: Serbian & English

ŽITORADJA

RECOMMENDING HUNTING TOURISM

The municipality has good infrastructure, connections to neighbouring municipalities and a readiness to co-operate with investors fully he Municipality of Žitorađa is situated in the Toplički County of southeast Serbia. The municipality is 10 kilometres from Corridor 10, which links Serbia to Macedonia, Greece and further onto the Far East. The municipality is also 35 kilometres southwest of Niš and gravitates towards this major city, which is the economic, political and cultural centre of the area. The municipality’s population is 18,900 and encompasses a total of 30 towns, villages and hamlets.

Agriculture is the most developed branch of Žitorađa’s economic structure, though the municipality does have certain industrial capacities, such as that of former Electronic Industry of Niš (EI Niš) and AD Herkulem. The latter facility has full infrastructure and there is a possibility of extending these facilities, since they are located in an industrial zone. AD Herkulem is currently undergoing privatisation and potential investors can obtain relevant information from the Serbian Privatization Agency or the company itself. In terms of private sector activity, there are 180 privately-owned businesses here and the local authorities have begun writing project documentation for the construction of an ethno-village that will have a hunting lodge. This facility will be offered to potential investors in the form of a concession. Furthermore, our hunting grounds have become increasingly popular with hunters from Italy and Greece in recent years.

INDUSTRIAL ZONE The P3 Industrial Zone is located at the entrance to Žitorađa from the direction of Niš. It is only one kilometre from Žitorađa’s centre, covers an area of eight hectares and is connected to the R-245 regional road. The nearest industrial railway station is only 300 metres from the site. The zone has complete utility infrastructure (water

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MIODRAG PETROVIĆ, PRESIDENT OF THE MUNICIPALITY OF ŽITORAĐA: “It takes five days to obtain an operating licence.”

supply, sewage, phone lines) and its land is privately owned, though the municipality intends to buy the land from private owners and offer it for use by potential investors FREE OF CHARGE, providing they plan to hire more than 50 workers. The aforementioned EI Niš and Herkulem companies, as well as Drvoprerada company, all have facilities here, while Mih-prom company is currently building a production hall in the zone. The municipality has another industrial zone that is also situated on the R-245 regional road (near Badnjevac).

It is only five kilometres from Corridor 10 and six kilometres from Žitorađa town. This industrial zone will be available to investors soon. The municipality is committed to producing organic food both for domestic and foreign markets. More and more attention is being paid to growing vegetables here, especially watermelons, peppers, tomatoes and cucumbers, rather than traditional grain crops. Also, fruit growing is on the up (especially cherries and plums). The municipality requires cold storage plants and fruit and vegetable processing facilities in order to round off this economic activity.

INCENTIVES The municipality is known for its diligent, adaptable and co-operative staff. The procedure for an investor to set up business here is quick and simple. Good quality organic food is being produced in significant quantities, while the whole area is quite appealing to investors, as there is no unfair competition and no large pollutants here, while the area’s unspoilt countryside offer vast possibilities for developing tourism. It takes five days to obtain an operating licence and five days to get a building permit, providing that a potential investor has obtained all other relevant documentation.

The municipality is know for its diligent, adaptable and co-operative staff

CONTACT BOJAN MILČEV Toplički heroji 53, 18412 Žitorađa Tel: +381(0) 27 362 931 Fax: +381(0) 27 362 211 Mob: +381(0) 65 54 49 359 Email: bozze@ptt.rs www.zitoradja.org Languages: Serbian & English

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