The Investors Guide to Serbia 2010 / 2011

The Investors Guide Serbia - 2010/2011

CONTENTS

special edition

the Investors guide Serbia 2010 / 2011

EDITOR IN CHIEF Tatjana Ostojić t.ostojic@cma.rs ASSISTANT EDITORs Philomena O’Brien p.obrien@aim.rs Vesna Milinković v.milinkovic@aim.rs ART DIRECTOR Tamara Ivljanin t.ivljanin@cma.rs ART DIRECTOR’s assistant Ilija Petrović i.petrovic@aim.rs EDITORIAL CONTRIBUTORS Ana Stojanović and Vesna Milinković PHOTOs Slobodan Jotić TRANSLATORS Snežana Bjelotomić, Bojana, Tibor, Gordana ADVERTISING SALES Vesna Vukajlović, v.vukajlovic@aim.rs Marija Savić, m.savic@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.

Segedinski put 72, Subotica “The Investors Guide, Serbia 2010/2011” published by: alliance international media in association with Standing Conference of Towns and Municipalities in Serbia and USAID Kneginje 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 2010

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Foreword 5 Improved Business Climate By Božidar Laganin, Director of the Serbia Investment and Export Promotion Agency (SIEPA) INTERVIEW 8 Saša Paunović, President of the Standing Conference of Towns and Municipalities in Serbia Further Decentralisation is Imperative MUNICIPALITIES 12 Aleksandrovac, Aleksinac 13 Arilje, Aranđelovac INTERVIEW 14 Slobodan Šešum, Economic Attaché at the Embassy of the Republic of Slovenia in Belgrade - Invest in Serbia 16 Bajina Bašta, Babušnica 17 Batočina, Blace 18 Bela Palanka CORPORATE 19 Strategic Investment MUNICIPALITIES 20 Bogatić, Bojnik

21 Boljevac, Bor 22 Bosilegrad, Brus 23 Bujanovac 24 Čačak INTERVIEW 25 R ita I. Lozinsky, CEO and Managing Director of Alumil YU Industry MUNICIPALITIES 26 Ćuprija 27 Crna Trava, Čajetina 28 Ćićevac, Despotovac 29 Dimitrovgrad, Doljevac 30 Gadžin Han, Golubac 31 Gornji Milanovac, Ivanjica ECONOMY 32 O n the International Financial Map By USAID MUNICIPALITIES 34 Jagodina 35 Kladovo 36 Knić 37 Knjaževac 38 Kosjerić, Koceljeva 39 Kraljevo 40 Kragujevac, Krupanj 41 Kruševac, Kuršumlija 42 Kučevo, Lajkovac 43 Lapovo, Lebane 44 Leskovac 45 Loznica 46 Lučani, Ljig 47 Ljubovija, Majdanpek

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48 Mali Zvornik, Malo Crniće 49 Medveđa, Merošina 50 Mionica, Negotin 51 Niš, Niška Banja 52 Novi Pazar, Nova Varoš 53 Osečina, Paraćin 54 Pirot 55 Požega 56 Petrovac na Mlavi, Požarevac 57 Preševo, Priboj 58 Prijepolje 59 Prokuplje, Ražanj 60 Raška 61 Rača 62 Rekovac, Svrljig 63 Smederevo 64 Sjenica, Smederevska Palanka 65 Soko Banja, Surdulica 66 Šabac 67 Svilajnac 68 Trstenik 69 Trgovište, Topola 70 Tutin 71 Ub 72 Užice 73 Valjevo 74 Varvarin, Vladimirci 75 Vlasotince 76 Vladičin Han, Velika Plana 77 Veliko Gradište 78 Vranje 79 Vrnjačka Banja 80 Zaječar 81 Žagubica 82 Žabari, Žitorađa

Foreword

Improved Business Climate Božidar Laganin Director of the Serbia Investment and Export Promotion Agency (SIEPA)

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uring the last nine years, the Government of the Republic of Serbia and the Serbia Investment and Export Promotion Agency (SIEPA) have jointly acted to greatly improve the business atmosphere and overall investment climate in Serbia. We have recognised the need for appropriate laws and a stimulating tax environment not only to support existing companies, but also to attract new business ventures. Above all, continuous, comprehensive economic reforms in Serbia have been sending a firm message to the world about our commitment to entering the European Union. Parallel to that, the EU has started the ratification of the Stabilization and Association Agreement that will initialise our EU candidate country status.

Serbia is moving from strength to strength and potential investors are now in a position to benefit from the continuing improvements in the Serbian business climate that have occurred over the last years, ensuring smooth, long-term, profitable investment opportunities in the country. With its central location at the crossroads of South East Europe, and its duty-free access to a consumer market of over a billion people, many

The Government of Serbia and SIEPA will remain committed to continually updating and upgrading the business climate, providing full support to international companies realising their investment ambitions in Serbia

international investors have taken advantage of the investment opportunities in Serbia with the lowest corporate tax rate in Europe and it’s very high quality of trained and linguistically skilled work force.

Despite the global financial crisis, UNCTAD’s World Investment Prospects Survey 20082010 declared South East Europe and the Commonwealth of Independent States as exceptional regions with an increased interest by foreign investors. Furthermore, Ernst & Young’s Survey on the Attractiveness of South East Europe rated Serbia the second best within the region. Serbia is truly a rare hot-spot in terms of investment locations in the world.

SIEPA is a government organisation dedicated to effectively helping foreign investors and buyers, while raising Serbia’s profile in the minds of international business decision-makers. Our best reference certainly comes from the investors and the extensive list of clients that includes companies like the US’s Coca Cola and Ball Corporation, Knauf (Germany), Japan Tobacco International (Japan), Pompea and Fulgar (Italy), Rauch and Kronospan (Austria), Yura Corporation (South Korea), as well as a number of FIAT suppliers who have started operating in Serbia recently.

The Government of Serbia and SIEPA will remain committed to continually updating and upgrading the business climate, providing full support to international companies realising their investment ambitions in Serbia, even in the hardest of times. Welcome to Serbia!

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ALUMIL is the largest aluminum extrusion group in Greece, with its main industrial complex and head offices situated in the industrial Area, north of Thessaloniki.

Years of experience and innovative solutions have made ALUMIL a world-wide, leading provider of profile systems for architectural and industrial use.

ALUMIL came to Serbia in 2001, and it was the first greenfield investment in Serbia.

Satisfying up to date results encourages the ALUMIL Group to continue investing in this ready to accept foreign investors’area.

In the following years, Alumil plans to increase its production capacities by building another profile extrusion line and a modern, new technology anodizing plant.

Building excellence every day Contact: Alumil YU Industry a.d.

Industrijska Zona bb 22330 Nova Pazova +381 22 321673 +381 22 321244 serbiaorders@alumil.com www.alumil.com

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INTERVIEW Saša Paunović, President of the Standing Conference of Towns and Municipalities in Serbia

Further Decentralisation

is Imperative By regaining their property rights, municipalities and towns will become legal subjects in the full sense of the word. Annually, budgets of towns and municipalities loose close to 103 million euro on account of unregulated property issues

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any municipalities in Serbia have begun to develop economically by deciding to offer municipal land to investors free of charge, by providing various tax incentives or shortening the deadlines for obtaining various permits needed for investors to begin building. According to our interlocutor, Saša Paunović, who is the President of the Standing Conference of Towns and Municipalities in Serbia (SKGO), this is a good way to attract investors, but on the other hand, it is not quite enough.

4What else needs to be done in order for local self-governments to attract investors?

- By exempting an investor from paying the land development fee, local authorities are robbing themselves of an opportunity to invest in these zones. It happens quite frequently that fees are really low and that an investor is obligated to build a certain section of an infrastructural network that is missing. The fees should reflect the realistic expenses associated with building infrastructure, while a town or a municipality should provide well-drafted spatial planning documentation, efficient local admin-

Saša Paunović, President of the Standing Conference of Towns and Municipalities in Serbia istration, take care of the potential investors and have precisely defined procedures for obtaining licences. Of course, all of this needs to be carried out in a transparent way.

Also, potential investors want to know how much time and money they need for certain procedures, starting with the registration of their companies, construction of their facilities, getting connected to local energy and utility systems and hiring.

4How much can municipal presidents and mayors personally help with attracting foreign direct investments? Which municipalities stand out in this respect?

- It is very important for a municipal president to have a pro-active approach, meaning that he or she constantly keeps in touch with investors and uses every single opportunity to approach them. Also, the municipalities that have invested more in marketing have fared better. Of course, you need money for that which not all municipalities have. They probably think that they can8 / The Investors Guide - Serbia 2010 / 2011

not accomplish a visible goal in a short period of time. In those municipalities that have stable leadership, and where there is an inclination to think differently, the effects of investing in the organisation, procedures and marketing become visible quite soon. Knowing the procedures and adhering to them during the talks with investors and during the implementation of the investment are crucial, as is the availability of the information that investors need. The following towns and municipalities are considered very active in this respect - Vranje, Inđija, Pećinci, Subotica, Zrenjanin, Kragujevac and Lapovo.

4The average salary in Svilajnac, i.e. in its economic sector, is 38,000 dinars, while the average salary in Vladičin Han, which used to be one of the industrially most developed municipalities in ex-Yugoslavia, is only 7,000 dinars. How do you explain such a huge difference?

- The fact remains that smaller municipali-

ties that based their development solely on industry, back at the time of ex-Yugoslavia, have fared worst in the period of transition and during the changes that happened in the 1990s. In such municipalities, which were quite dependant on huge industrial systems, privatisation resulted in many problems and many old state-owned companies fell apart. A substantial number of workers were left without their jobs and, now, it is simply impossible for newly formed companies to hire so many people who are out of work. On the other hand, municipalities that did not solely rely on industrial giants had fewer transitional problems.

In the last few years, the municipalities that faired the best were those which used their exceptional geographic position (the proximity of main roads and big markets) to their advantage, since investors deem these municipalities as being more conducive to investing.

Relocating Ministries Relocating ministries or other state agencies to other towns and municipalities will not benefit municipalities that much. Relocation means that citizens or local administration will not have to come to Belgrade to do their business, but to other towns around Serbia. This is a de-concentration rather than much needed de-centralisation. of information from various towns and municipalities in order to carry out a comparative analysis in accordance with the Council of Europe’s standards. The main aim of this exercise was to encourage a wide public discussion in local governments about how to become more effective. In addi-

(so-called applied training) and which is organised by the Standing Conference of Towns and Municipalities (SKGO) or other training institutions that the SKGO collaborates with.

Finally, the project will try to provide support with establishing a participation process when it comes to making plans about municipal infrastructure with the emphasis on issues like gender equality, and building up inter-municipal approach to increase investment efficiency.

Public-private partnerships will also thrive in such conditions, if municipalities are allowed to bring their own property to a joint venture company

4An initiative has been launched for the more successful municipalities to use their know-how and experience to help the disadvantaged ones. Did the Standing Conference of Towns and Municipalities jump on board with this initiative?

- On several occasions, the Standing Conference has launched different initiatives with the aim of towns and municipalities in Serbia exchanging their experiences.

I would like to mention that, in the last two years, we launched a competition where we selected municipalities with the best practices and later communicated this to other municipalities which applied the best practice cases. Also, we have implemented a project where we gave a comparative analysis of individual capacities of each local self-government. We have collected various pieces

tion to that, SKGO has its own communication channels which are used for continuous exchange of experiences and information, presentation of best solutions and for connecting towns and municipalities in order to develop local capacities.

4 At the beginning of the year, GTZ launched a new project called ‘Strengthening Local Self-Government’ which will last until December 2012.

What are the main goals of this project?

- The project is fundamentally geared towards rendering support to Serbian municipalities in defining and developing infrastructure projects through jointly drafting spatial planning documentation and successfully applying for a loan or a donation.

Also, this project is a combination of different municipal projects and includes training that is closely related to writing projects

Infrastructure The idea behind our initiative is for some of the money generated from the sale of Telekom Serbia to be spent on constructing and reconstructing water supply systems, local roads, further development of gas, heating and electricity systems, construction of waste water purifying and disposal systems, utility waste disposal facilities, and other important infrastructure works. All of this will increase the quality of life of the local population, reduce their migration and improve the quality of the environment. Also, having high quality local infrastructure is a pre-requisite for attracting potential investors; it will facilitate local economic development and create new jobs for Serbian citizens.

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4When do you expect the Law on Public Property to be adopted and what will this law mean to local self-governments in a practical sense?

- The fact that local self-governments have no full property rights dates back to the time when the first Law on Assets Owned was adopted, i.e. 1995, when property rights were entirely centralised and were in the hands of the state. If you take into the account the plan that Serbian Government has for this year, especially if we consider promises given by Serbian President, Boris Tadić, Deputy Prime Minister, Božidar Đelić and Minister for Local Self-Government and State Administration, Milan Marković at the 37th SKGO Assembly in December 2009, what needs to be done urgently is to regulate the issues concerning local selfgovernment’s property and this should be considered the priority. The Ministry of Finance, which is in charge of drafting the law, says that the draft is already finished.

Bearing in mind that this is just a draft and that, due to this law being closely linked to the Law on Restitution, the two acts need to be forwarded to the Parliament together with the draft of the latter law being somewhat problematic. We anticipate that both draft laws are going to be subjected to public debates in autumn of this year, and that Serbian Government will discuss them in late 2010.

By regaining their property rights, mu-

projects, the SKGO will provide adequate support in this process too.

From left: Nenad Milenkovic, Mayor of New Belgrade; Saša Paunović, President of the Standing Conference of Towns and Municipalities; Đorđe Staničić, General Secretary of the Standing Conference of Towns and Municipalities in Belgrade nicipalities and towns will become legal subjects in the full sense of the word.

They will make decisions independently from the state government and they will be the ones to decide whether to lease out the property, mortgage it as loan collateral or sell it. To date, local authorities had to wait for the approval from the State Property Directorate and they had to wait four years on average for the Directorate to decide. Annually, budgets of towns and municipalities lose close to 103 million euro on the account of unregulated property issues. In addition to what I have just said, both towns and municipalities will gain insight into which property is cost-effective and which property will lose mon-

development. Public-private partnerships will also thrive in such conditions, i.e. if municipalities are allowed to bring their own property to a joint venture company.

The entire list of liabilities will be now transferred to the local level, which will disencumber state authorities.

Of course, we still don’t know what categories of property will be returned to local self-governments. In my capacity of the President of the SKGO, I will insist on both state and provincial authorities having to offer adequate assistance to municipalities and towns in transferring this property rights, as well as provide necessary information and data in order for municipalities to develop strategies for property management and find the best solution for managing this property in the best manner possible.

Through its bodies and different

I also think that, in the coming period, the SKGO’s presidency should form its own task force for European integrations which will be a counterpart to the former Council ey due to its bad state, providing that local authorities have no money to renovate it. If we were to ascertain the real value of the property, instead of the historical one, we would increase and create new financing sources that will come from charging taxes on property and property income.

Also, this will be beneficial for the real estate market, it will create new jobs and significantly contribute to local economic

4At the fourth session of SKGO’s presidency, the organisation approved of an initiative launched by the European Integration Office for the SKGO’s representatives to be included in the work done by the sub-groups of the Expert Task Force in charge of negotiating with the EU. What plans does the SKGO have in that respect?

- We are going to select the SKGO’s representatives that will be included in the work done by sub-groups of the Expert Task Force from the organisation’s committees. These should be people with excellent negotiation skills corresponding to the negotiation chapters, people who are very familiar with the EU regulations in the given area and also well acquainted with domestic regulation.

We think that before including SKGO’s personnel in the sub-groups, it will be necessary to create a special training format with the European Integration Office. The training will include topics like – the way that the EU functions, the EU institutions and their jurisdiction, EU policy, decision making processes, advisory bodies etc. The second part of the training will pertain to the negotiation process, experiences of other countries and similar areas. I also think that, in the coming period, the SKGO’s presidency should form its own task force for European integrations which will be a counterpart to the former Council. This body should be made of the SKGO’s representatives that are going to be members of the aforementioned sub-groups, in addition to certain members of the SKGO presidency. Aside from that, our representatives, who will undergo training, should hold certain positions in local self-governments, regardless of the pending political changes. n

Downsizing There are different interpretations when it comes to the number of civil servants, and media have been reporting that at least 5,700 civil servants should be laid off.

According to the Law on the Highest Permitted Number of Employees in Local Administration, it is not legally possible to lay off more than 2,200 employees. Over 100 local self-governments have already downsized and over 70% of civil servants who were set for redundancy have resigned on their own accord. The remaining 30% will be further laid off and these are people who work in ten or so local governments.

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Aleksandrovac

A Municipality of Wine

This municipality has extraordinary tourism potential, facilitated by the nearby Kopaonik Mountain and Vrnjačka Spa

T contact Jugoslav Stajkovac, Municipal President Trg Oslobođenja 7, 37230 Aleksandrovac Tel: +381-37-3552-275 Fax: +381-37-751-297 Email: soaleks@ptt.rs www.aleksandrovac.co.rs Languages spoken: Serbian and English

Aleksinac

he municipality of Aleksandrovac is located in central Serbia’s Rasinski district, and the town of Aleksandrovac is the administrative, economic, educational and cultural centre of the municipality. The municipality covers an area of 387 square kilometres. Aleksandrovac’s geographical position and climate are perfectly suited for growing all varieties of grapes, which is why wine cultivation and tourism are the two main development directions in the municipality.

The municipality has extraordinary tourism potential, facilitated by the nearby Kopaonik Mountain and Vrnjačka Spa. 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

Efficient Local Administration The municipality’s vision is to become a community able to ensure a high quality of life and prosperity for all citizens through economic development

contact Ivan Dimić, Municipal President Knjaza Miloša 169, 18220 Aleksinac Tel: +381-18-809-001 Fax: +381-18-804-107 Email: predsednik@aleksinac.org Website: www.aleksinac.org Languages spoken: Serbian and English

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he municipality of Aleksinac is situated in south-easernt Serbia’s Nišavski district and covers an area of 707 square kilometres. It has a population of 57,749. Some 64% of the municipality’s territory is agricultural land, while 36% is hilly or mountainous.

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 12 / The Investors Guide - Serbia 2009/2010

of Viticulture and Wine Making, with a builtin wine cellar. The Tourist Organization of Aleksandrovac can provide all available information about the tourism offerings of Župa.

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 is 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 namely with the companies of Župljanka, BEMIX, UGOP Koznik, Metalac, PPT Armatura, Tehnoguma.

Great airport is 30 kilometres away.

The municipality has implemented the programme of the ‘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 positive conditions,and to 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

Dominant in Agriculture and Food Processing T

he municipality of Arilje is located in western Serbia, in the Zlatibor district. It covers an area of 349 square kilometres. The municipality is 200 kilometres from the airport and city of Belgrade. In terms of the municipality’s transport capacities, there is the M21/1 regional road and the M21 that leads to Montenegro and Bosnia and Herzegovina, which is just 14 kilometres from Arilje. The central Belgrade-Bar railway line runs through the municipality via Požega.

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 status. Over 5,000 of these small production plants in the open produce over 20 million kilograms of raspberries and provide considerable annual revenue. There are no large corporations here, ensuring the area is quite well adapted to market needs, while the ownership transformation of the state-owned sector has been completed

Two industrial zones are equipped with adequate infrastructure. The land on which these zones is located is privately owned and the unemployment rate is constantly falling.

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

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.

Huge Tourism Potential 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

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he city of Aranđelovac is the administrative seat of the municipality of the same name.

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.

The city itself has a favourable location for transportation, with the M-4 A-road traversing the municipality and linking it to the Ibarska A-road and then on to the E-75 motorway (PanEuropean Corridor 10).

About 38% of the local economy is made up of the manufacturing industry, while agriculture, forestry and water management account for 20%. The largest company in the municipality is drinks’ manufacturer AD Knjaz Miloš (mineral water, juices and energy drinks). Aranđelovac’s

famous Bukovička mineral water is among the most highly valued amongst European and worldwide waters. It has refreshing and beneficial effects on the body and a wide range of therapeutic and even preventative properties, if used regularly.

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).There are also a large number of private accommodation options, numerous cafes and restaurants.

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.

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.

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contact Mirjana Alakumović, Municipal President Milan Petrović, Coordinator of the Office for Local Economic Development Svetog Ahilija 53, 31230 Arilje Tel: +381-31-891-255 Fax: +381-31-891-287 Email: arilje@arilje.org.rs Website: www.arilje.org.rs Languages spoken: English and Serbian

Aranđelovac

contact Negoslav Petronijević, Head of Municipal Administration Venac Slobode 10, 34300 Aranđelovac Tel: +381-34-710-100 Mob +381-64-8669-295 Email: soar@eunet.yu Languages spoken: Serbian and English

INTERVIEW Slobodan Šešum, Economic Attaché at the Embassy of the Republic of Slovenia in Belgrade

invest in Serbia “The very idea of such a simple occurrence and the promotion of different regions was excellent. We were able to find out about the full potential that the municipalities in Serbia have to offer, all in one place”

By USAID

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hirty two municipalities and cities took part in the third ‘Invest in Serbia’ competition as part of the investment promotion organised by the USAID’s Municipal Economic Growth Program on March 31st, 2010. The local governments were competing in the following categories: the most successful municipality/city in the promotion of investments in 2010, the best economic data, the best promotional materials, the best performance at the fair, the best partnership project. Vrsac, Leskovac and Uzice won and the winners’ awards were presented by the U.S. Ambassador to Serbia, Mary Warlick, the Minister of Economy and Regional Development Mladjan Dinkic, the Serbian Deputy Prime Minister Bozidar Djelic, and the Minister of the Environment and Spatial Planning

Slobodan Šešum, Economic Attaché at the Embassy of the Republic of Slovenia in Belgrade Oliver Dulic. USAID, NALED, Privredna Banka Beograd, Austrian Airlines, Telenor, VIP Mobile and the Serbian Chamber of Commerce provided significant prizes valued at $200,000.

Representatives from the largest companies, economic attachés from foreign embassies, representatives of international organisations, government officials, and the media were among the 60 judges evaluating the participants. The visual concept of the competition was authentically presented through the simulation of the international airport terminal, with a large model aircraft carrying the symbolic message, ‘Serbia – the Next Investment Destination’.

We talked to one of the judges at the event, Mr. Slobodan Šešum, the Economic Attaché of the Slovenian Embassy in

In Cooperation with Business At the ‘Invest in Serbia’ competition, for the first time, local governments promoted their potentials in cooperation with businesses by sharing booths with companies operating in their communities. Examples of this approach include: Kragujevac and Fiat, Paracin and Holcim, Smederevo and U.S. Steel, Prokuplje and Leoni, Valjevo and Gorenje, Bujanovac and Kondiva, Subotica and Fornetti.

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Belgrade. We asked him about his impressions of the ‘Invest in Serbia’ competition, as well as the opportunities for strengthening cooperation between Slovenia and Serbia.

4As a judge who had the opportunity to visit all the booths at the final competition and evaluate the participation of the local governments and businesses, what were your impressions of the USAID’s ‘Invest in Serbia’ competition?

- The very idea of such a simple occurrence and the promotion of different regions was excellent, in my opinion. We were able to find out about the full potential that the municipalities in Serbia have to offer, all in one place. At the same time, we were able to listen to the experiences of businessmen who work in these municipalities, which is very important.

4Did you make any contacts at the event, and what were the outcomes?

- Yes, I met almost all the representatives from the local governments, and each week I try to visit at least one municipality. So far I have been to Novi Sad, Pecinci and

Sid. As you can see, initially I have concentrated on the municipalities where there are already lots of Slovenian companies.

I wanted to see what it is that those local governments offer and how they do it, and why the Slovenian companies decided to invest in these municipalities. However Slovenian companies are present throughout Serbia, therefore I plan to visit the other local governments. In the next phase I will visit the municipalities where there are no Slovenian companies, to see why this is so.

When touring the local governments I want to meet with as many Serbian local companies to hear their reasons for not investing more in Slovenia. After the talks, I will make a short presentation for the Serbian companies on investment opportunities in Slovenia.

4Does your embassy plan to start cooperating with any of our municipalities?

What would that entail?

- As an embassy we have no plans of formalising cooperation with the municipalities. However, the embassy can help establish contacts between Slovenian companies and their municipalities with the municipalities here in Serbia in order to discuss the possibilities of cooperation. There is a lot of room for cooperation.

4Has the competition attracted the attention of Slovenian investors, and do you think that Serbia is an attractive destination for your entrepreneurs? And if so, why?

- I am confident that the competition has attracted the attention of Slovenian investors.

Serbia is certainly an attractive destination for Slovenian investors. Let me mention a few figures. One third of all Slovenian investments are directed toward Serbia, approximately 1500 Slovenian companies have been registered in Serbia, which indicates that Serbia is an attractive destination for Slovenian businessmen.

The visual concept of the competition was authentically presented through the simulation of the international airport terminal, with a large model aircraft carrying the symbolic message, ‘Serbia – the Next Investment Destination’

Serbia 2010 / 2011 - The Investors Guide / 15

Serbia is attractive for Slovenian companies because language is not a barrier, there are long standing friendly relations dating from the joint state and our two countries are geographically close. This year we have more flights between Ljubljana and Belgrade as well as Portoroz and Belgrade.

4Did you like the concept of the ‘Invest in Serbia’ competition, and what would you like to see at next one?

- The concept is excellent and I think that it was very successful. Local governments can see how other local governments present their advantages and persuade foreign investors. At the next competition, I would like to see representatives of Slovenian companies in those local government areas where there are presently none.

I would like to praise the whole concept of the ‘Invest in Serbia’ competition once again, particularly the cooperation between the local governments and companies. n

Bajina Bašta

A Municipality on the River B contact Miloje Savić, President of the Municipality Dušana Visića 28, 31250 Bajina Bašta Tel: +381-31-865-280 Fax: +381-31-865-282 Email: sobb@nadlanu.com www.bajinabasta.rs Language spoken: English and Serbian

Babušnica

ajina Bašta lies on the River Drina in western Serbia, in an area of the Zlatibor district dominated by the majestic Mount Tara. Bajina Bašta’s 378 villages/hamlets and 29 local communities cover an area of 673 square kilometres and are home to some 29,000 residents.

Nowadays the region is the centre of forestry, hydro power plants and adventure tourism.

The economy of Bajina Bašta is based on the Bajina Basta (1,000MW) hydro-electric power plant. In addition to the hydro-electric plant, the metal industry is represented by IKL and GP Razvoj; there is also clothing (textiles and knitwear) production, as well as a number of microfacilities for wood processing. The area surrounding the town of Bajina Bašta is home to orchards and fields of raspberries and different varieties of fruits and vegetables.

The most profitable area for investment is in tourism. The Tara National Park can be

Zlatko Aleksić, Municipal President Saša Stanković, Deputy to the Municipal President Ratka Pavlovića 1, 18330 Babušnica Tel: +381-10-685-112 Fax: +381-10-685-191 Email: sobabusnica@ptt.rs Website: babusnica.opstinesrbije.com Languages spoken: Serbian and English

reached directly from Bajina Bašta and it covers an area of 19,175 hectares and boasts over a thousand species of plants, 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. Favourable climatic conditions, lots of sunny days, an average altitude of about 1000m and beautiful nature enable a pleasant sojourn, as well as walking and trekking. Lake Perucac on the river Drina and Lake Zaovine in Beli Rzav valley are perfect for water sports, the mountain slopes are good for winter sports, and a variety of game is available for hunting tourism. There are three tourist facilities with accommodation in the park, at Kaludjerske Bare there are two hotels, at Predov Krst there is a hunter’s lodge and at Mitrovac there is a well known children’s camp.

Suitable for Agricultural municipal authorities Production The will continue advancing dairy T

contact

Nowadays the region is the centre of forestry, hydro power plants and adventure tourism

he municipality of Babušnica is situated in the Pirotski district and borders the municipalities of Pirot, Bela Palanka, Vlasotince and Crna Trava, as well as bordering EU member state of Bulgaria to the east.

The municipality has a population of just under 16,000 and covers an area of 529 square kilometres.

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).

The municipality of Babušnica is suitable for a diverse range of 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 econom16 / The Investors Guide - Serbia 2010 / 2011

production, fruit growing, developing mini-orchards, crop farming, bee keeping, vegetable growing and organic food production

ic 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 privatised production facilities are almost non-operational and employ very few workers.

Batočina

Small Enterprise Dominates The municipal spatial plan envisages a total of four industrial zones, which are located just below the M-11 regional road

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he municipality of Batočina is located in the Šumadijsko-Pomoravski district and covers an area of 136 square kilometres. 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-NišSkoplje and Lapovo-Kragujevac-Kraljevo.

Small enterprises make up around 90% of all the 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, as well as agriculture and transportation In the production sector there are three companies producing plastic and rubber products. The municipality also has several textile and wood processing companies.

The municipal spatial plan envisages a total of four industrial zones, which are located just below the M-11 regional road. 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.

The municipality aims to provide all relevant logistics under its jurisdiction.

A Focus on Agriculture T

he municipality of Blace covers 306 square kilometres in the Toplica Valley on the eastern slopes of Mount Kopaonik and the southern slopes of Mount Jastrebac.

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 at the crossroads of Kosovo, Kopaonik, Krusevac and Prokuplje, offering a good transit position.

The primary economic activity in the area is agriculture and Blace is well known for the production and processing of agricultural products.

Quality and skilled labour, a good local road network (each village is asphalt road linked to the centre of the municipality), a good relationship with the large consumer centres, more than 6,500 hectares of orchards of which 5000 hectares are

Blace is proud of its private enterprise and local businessmen who maintain a high level of business operations

plums, 700 hectares of cherries, 500 hectares of apple and pear, with a large number of trees of old varieties of apples and pears, and with 100 hectares under berry fruit. Industrial production is not developed here.

Blace is proud of its private enterprise and local businessmen who maintain a high quality and quantity of business operations. The entrepreneurial spirit of businessmen in Blace and the objective environment for doing business is helping to provide a solid base for more successful performances in the coming period.

The municipality of Blace is also aiming 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.

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contact Radiša Milošević, President of the Municipality Aleksandar Jovanović, Deputy Municipal President Kralja Petra I 37, 34227 Batočina Tel: +381-34-841-208 Fax: +381-34-842-314 Email:aleksandar.jovanovic@sobatocina.org.rs Website: www.sobatocina.org.rs Languages spoken: Serbian and English

BLACE

contact Nebojša Milosavljević, President of the Municipality Nenad Milivojević, Deputy to the Municipal President Karađorđeva 4, 18420 Blace Tel: +381-27-371-110 Fax: +381-27-371-138 Email: blace@blace.org.rs www.blace.org.rs Languages spoken: Serbian & English

Bela Palanka

An Environmentally Friendly Zone Agriculture comprises around 44% of the municipality’s GDP, while industry accounts for 32% and other branches close to 24%

Aleksandar Živković, President of the Municipality of Bela Palanka: “The deadline for issuing permits and relevant documentation is 30 days.”

contact Sonja Đorđević, Head of Department of Finance, Budget and Economic Development 28, Karađorđeva, 18310 Bela Palanka Tel: +381-18-855-023; Fax: +381-18-855-188 Mob: +381-62-255-759 Email: nacelnik.finansija@belapalanka.org.rs Website: www.belapalanka.org.rs Languages spoken: Serbian and English

T

he municipality of Bela Palanka is situated in south-eastern 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 Mountain) 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.

Municipal 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 agriculture 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.

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.

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, environmentally-friendly area, old crafts, small enterprises, multi-ethnicity, archaeological sites, waterways, medicinal herbs, pastures and a good microclimate.

Agriculture is the leading economic branch

18 / The Investors Guide - Serbia 2010 / 2011

Deadlines and permits

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

CORPORATE

Strategic Investment Holcim has invested over 116 million euros so far into introducing the best practices and highest standards in all of its business processes and into expanding production capacities at the Popovac plant

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witzerland-based Holcim, one of the world’s leading suppliers of cement and aggregates such as crushed stone, sand and gravel, as well as ready-mix concrete and asphalt, has been in Serbia since 2002, when it bought a cement plant in the village of Popovac, in the municipality of Paracin, for 60.9 million euros. The acquisition was a strategic investment for Holcim, which saw large potentials in both the factory and the Serbian market as a whole.

Holcim has invested over 116 million euros so far into introducing the best practices and highest standards in all of its business processes and into expanding production capacities at the Popovac plant, where modernisation has included the construction of a new clinker silo, a high-efficiency separator, and a rapid dry-

in Paracin include the expansion of a kindergarten, public lighting placement and the establishment of an entrepreneurial training centre. Apart from making direct CSR investments, Holcim is also encouraging others to engage in CSR activities. Through its ‘Partnership for the Future’ competition, the company has backed 27 educational, cultural, and sustainable development projects by providing financial support for different institutions

Partnership for the Future 2010 awards ceremony

Holcim’s cement plant in Popovac

Holcim’s eight-year experience in Serbia confirms that the country is one of the best investment destinations in South Eastern Europe er. Part of the investment went toward opening the ready-mix concrete plant Beograd-Istok in the Belgrade suburb of Krnjaca. Another part went into buying the exploitation, and sand and gravel river-shipping company DTD Kamenko Gagrcin in Sombor, which brought Holcim into Serbia’s aggregates area and completed its production cycle.

A pioneer in corporate social responsibility (CSR), Holcim has also poured considerable funding into projects ensuring the wellbeing of its employees, their families, and the entire local community, as well as strong partnership relations with customers and suppliers. In the area of community involvement Holcim has invested 2.75 million euros to date. The renewal of the local clinic and pharmacy, the construction of a sports terrain and the reconstruction of the village church are only a small fraction of Holcim’s projects in Popovac, whilst projects

and non-governmental organisations. When it comes to employee development, the basis of Holcim’s success worldwide, Holcim in Serbia has invested 3.5 million euros into employee education to date.

Being a highly environmentally-conscious company, Holcim has also allocated hefty funds toward environmental protection. To date, it has injected over 10 million euros into a series of projects ranging from filters for the prevention of dust emission and devices for continuous measurement of all emissions and immisions to waste water treatment facilities, and a one million euro facility for the preparation of solid recovered fuels that the company plans to start using as an alternative fuel in cement production.

Holcim’s eight-year experience in Serbia confirms that the country is one of the best investment destinations in South Eastern Europe, boasting an excellent geographic poSerbia 2010 / 2011 - The Investors Guide / 19

sition, a competitive and highly-skilled labour force, and a favourable corporate tax policy.

However, Serbia needs to speed up reforms in order to improve its business climate, with plenty of room still left for progress in areas such as land ownership, transparency and the enforcement of laws. Boosting the efficiency of permit issuance and other administrative procedures in the construction industry is an imperative, which is why Holcim is looking forward to the positive effects of the government’s regulatory guillotine project. n

Crisis and Consequences The global financial crisis has also affected Serbia, with its construction industry among the first feeling the adverse impact of the downturn. Despite this, Holcim remains committed to the market and expects that Serbia will now focus on its economic policies ensuring more sustainable growth, while increasing investment in infrastructure development - a good formula for reviving both the economy and the construction sector.

Interview Bogatić

A Special Offer for Investors B

contact Radenko Petrić, President of the Municipality Dragan Grujuć, Assistant to the Municipal President 1, M. Vitomirovića, 15350 Bogatić Tel: +381-15-786-126 Fax: +381-15-786-174 Email: opstinabogatic@nadlanu.com Website: www.bogatic.rs Languages spoken: Serbian, English

BOJNIK

ogatić is a little town and the municipality is located in the Mačva district of Serbia.

In 2002, the population of the town was 7,350, while the population of the municipality was 32,990. The municipality of Bogatić covers an area of 384 square kilometres.

It has developed agricultural production, cattle breeding and vegetable cultivation. It is more and more likely that Bogatić in Mačva will become the tourist centre of that part of Serbia. A number of companies have announced construction of a tourist-recreation complex for rest and recreation that will utilise the geothermal potential of this area. In addition, construction of greenhouses is also in the pipeline. The total surface of the complex is about 20 hectares.

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 has local roads nearby and is around five kilometres from the centre of Bogatić, 15 kilo-

The municipality has an industrial zone in the area of Dublje. The land here is stateowned, with the municipality being the beneficiary

metres from the Šabac-Loznica 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 energy for commercial purposes can be carried out here.

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.

A Healthy Environment The advantages offered by the municipality of Bojnik include fertile arable land, water resources, and a preserved and natural potential

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contact Nebojša Nenadović, President of the Municipality Trg Slobode 1, 16205 Bojnik Tel: +381-16-821-214, extension 115 Fax: +381-16-821-174 Email: office@bojnik.org.rs Languages spoken: Serbian, English

he municipality of Bojnik is located in southeast Serbia’s Jablanički county. It covers an area of 264 square kilometres and has close to 15,000 inhabitants. The Bojnik municipality is located in southern Serbia and it is surrounded by the municipality of Medveđa in the southwest, the municipality of Lebane in the south, the municipality of Leskovac in the east, and the municipalities of Žitorađa and Prokuplje in the north. Bojnik is 23 kilometres from Leskovac, and 45 kilometres from Niš, and is linked to the E-75 (Corridor 10) international motorway.

The advantages offered by the municipality of Bojnik include fertile arable land, water resources, and a preserved and 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 there is also the production of con20 / The Investors Guide - Serbia 2010 / 2011

struction materials.

Bojnik has an industrial zone that is partially equipped with infrastructure. As Bojnik is considered one of the 24 most underdeveloped municipalities in Serbia, potential investors are entitled to apply for loans from the Ministry of the Economy and Regional Development under very favourable conditions.

The industrial branches that are most suitable for investments are food processing, the exploitation of raw materials (decorative stone and its processing), tourist capacities, and water resources. 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 the cold storage plants in Bojnik, SBB Produkt – Beograd and cold storage plants Jugovoće in Donji Konjuvac.

Boljevac

Near the Bulgarian Border The municipality has two industrial zones that cover an area of close to 50 hectares and the municipal authorities are currently working on providing adequate infrastructure

B

oljevac is a town and municipality located in the Zaječar District of Serbia. 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 runs through the municipality and connects the municipality to Corridor 10 and the Bulgarian border.

The climate and land are perfect for developing agricultural production (cattle breeding, growing medicinal herbs, fruit and vegetable cultivation).

The municipality has two industrial zones that cover an area of close to 50 hectares and the municipal 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.

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. Investment recommendations from the municipality include investment 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.

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

Metal and Mining INDUSTRY The municipality of Bor is now implementing intensive measures to create conditions for the development of industry and business

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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 covers an area of 856km2 in the Borsko District.

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, followed by agriculture (14%), transport and communications (14%) and other activities (20%).

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 employing almost 25% of the municipality’s active workforce.

Aside from RTB Bor Holding, important enterprises in the municipality include the equipment and parts factory Bor Ltd., Eurofil Ltd. (a polyester film factory), Abatoire Polet, aluminium and 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 capacity for tourist accommodation.

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.

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contact Dr Nebojša Marjanović, President of the Municipality Slađan Đimiš, Head of the Department of Economic Development and Agriculture 24, Kralja Aleksandra 19370 Boljevac Tel: +381-30-63-412, Fax: +381-30-63-620 Email: privreda@opstinaboljevac.rs Website: www.boljevac.org.rs Languages spoken: Serbian, English

BOR

contact Ljubinka Jelić, Head of the Municipal Administration Moše Pijade 3, 19210 Bor Tel: +381-30-423-980 Fax: +381-30-427-310 Email: sobor@opstinabor.rs www.opstinabor.rs Languages spoken: Serbian, English

bosilegrad

Rich Ore Deposits T contact Vladimir Zaharijev, President of the Municipality Mobile: +381-65-405-99-80 Tel: +381-17-878-845 Živko Stoilkov, Independent Expert Associate for Urban Planning Mobile: +381-63-461-945 17540 Bosilegrad Tel: +381-17-877-006 Fax: +381-17-877-167 Email: z.stoilkov@gmail.com Website: www.bosilegrad.rs Languages spoken: Serbian and English

brus

he Municipality of Bosilegrad is situated in the very south-east of Serbia, some 400 kilometres from Belgrade and 132 kilometres from Sofia. The municipality is connected to neighbouring regions via the BosilegradVlasina 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 consists of forests.

There are also several potential tourist locations, including Lisinsko Lake, several hamlets, ethnocentres, health and spa locations and hunting and fishing grounds.

The municipality is currently able to offer potential investors land in the Rasadnik resi-

Zoran Šljivić, President of the Municipality Zoran Mirković, Deputy to the Municipal President Kralja Petra I/120 37220 Brus Tel: +381-37-826-840 Fax: +381-37-826-966 Email: predopstinebrus@nadlanu.com Languages spoken: Serbian and English

dential/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 the 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.

A Focus on Tourism and Agriculture The municipality boasts the Jug (south) industrial zone, which houses six factories employing close to 1,500 workers

contact

Investors can obtain the required permits in the shortest possible legally-defined deadline

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rus is a town and municipality located in the Rasina District of Serbia. It covers an area of 606 square kilometres. The municipality lies 234 kilometres from the Serbian capital of Belgrade, 80 kilometres from Niš and 50 kilometres from Kruševac.

The area’s main economic branches are tourism and agriculture, with the Kopaonik Mountain resort covering 70% of the municipality’s territory. Well-developed facilities for tourists are located at the Kopaonik ski resort, including an information centre in the resort village. Kopaonik lies near the main transportation routes in Serbia.

The closest airport is in Nis. 22 / The Investors Guide - Serbia 2010 / 2011

The municipality boasts the Jug (south) industrial zone, which houses six factories employing close to 1,500 workers. The zone has adequate infrastructure and utility facilities.

The Municipality of Brus offers potential investors all the available capacities for obtaining relevant documentation. Also, dependant on how big an investment is the municipality will also accommodate investors by offering favourable payment conditions, such as payments in instalments.

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.

Bujanovac

A Great Business Environment In order to attract investors, and in accordance with municipal jurisdiction, administrative procedures have been simplified and funds have been invested into the development of local infrastructure

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he city of Bujanovac is located in the centre of traffic routes, next to a main road and railroad line, and part of international Corridor E10, connecting Belgrade-Skopje-ThessalonikiAthens. The city is also located close to three international airports. The border crossing with Macedonia, Cukarka, is 23 km from the city. The territory of Bujanovac municipality occupies an area of 461 square kilometres. About 30% of the territory is lowland, and the remaining 70% is highland.

This part of the country is blessed by natural beauty, mineral treasures and tourist attractions. In the territory of Bujanovac municipality, under the protection of the state, is the natural resource of great importance ‘Dolina Pcinje’ (Pcinje Valley), which is under the second category of protection.

Bujanovac municipality is rich with mineral and thermal springs of the sodium bicarbonate type. These springs are considered high quality spa water. In addition to the chemical properties, the geothermal property of this water is also important (temperatures are from 43 degrees celsius). The thermal mineral water in Bujanovac Spa, the Rakovacki spring, is of particular importance. The thermal waters in Bujanovac are an important incentive for the development of spa tourism.

land is: Zone 1 – €13.47, Zone 2 – €10.65, Zone €3 -8. Prices have not changed in two years.

Benefits for Investors The reduction of the amount invested in infrastructure is prescribed, if the investor uses his funds to carry out construction work in connection with community infrastructure. There is a possibility of paying by instalments, as well as a 20% discount for cash payment. In the recent past, in order to attract investors, and in accordance with municipal jurisdiction, administrative procedures have been simplified and funds have been invested into the development of local infrastructure.

Potential investors are offered locations to invest in, help with administrative procedures, mediation in communication with competent institutions and help with making contact with local suppliers. Bujanovac has an office for local economic development, which contributes to the improvement of work performance of all people employed in local administration. On June 8th, 2010, Bujanovac municipality became one of the certified municipalities of the National Alliance for Local Economic Development, as a municipality with a favourable business environment.

Necessary documentation is issued in the urbanism department. As an example of what is required: for the construction of a factory the following documentation is necessary: urban plan, issued in 30 days, price €1000; location permit, issued in 7 to 15 days, price €145; construction permit, issued in 8 days, price €120; certificate on start of construction work (2000m2), issued in 7 days, price €20 and certificate of occupancy, issued in 7 days, price €110.

Significant investors who have invested in the Bujanovac municipality include: Lagado, Kondiva, Heba, Bivoda, Simpo and DIB.

Shaip Kamberi, President of the Municipality: “A reduction of the amount invested in infrastructure is prescribed, if the investor uses his funds to carry out construction work in connection to community infrastructure.”

Bujanovac has an office for local economic development

Industrial Zones One industrial and one production business zone exist in the Bujanovac municipality. The industrial zone occupies an area of 60 hectares, and 25.5 hectares are equipped with community infrastructure. The production business zone occupies an area of 72 hectares and has electrical power. The advantage of this zone is access from the regional road R125 and main road M1.

Compensation for the regulation of construction

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contact Fazila Azemović, Manager of the Office for Local Economic Development Karađorđa Petrovića 115, 17520 Bujanovac Tel: +381-17-654-517 Fax: +381-17-654-517 Mobile: +381-62-410-330 Email: kler-bujanovac@hotmail.com Website: www.bujanovacinfo.org Languages spoken: Serbian, English, Albanian, Turkish, Russian, German

čačak

A Long Tradition of Agriculture and Industry The Construction Land Act offers incentives involving lease fees and land development fees

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VELIMIR STANOJEVIĆ MAYOR OF ČAČAK: “Čačak is ready. Come and let’s develop together.”

he town of Čačak is located in the heart of Central Serbia, in Moravički County.

The town covers an area of 636 square kilometres. The transport network is 505 kilometres long and is of a good quality. The planned construction of the Belgrade-Čačak-South Adriatic motorway will link the town to other regional centres and make other markets more accessible. Čačak is 144 kilometres from Belgrade, and these two cities are connected via the M-22 road (the so-called Ibarska motorway), which runs through the Čačak’s suburb of Preljina. From where it branches out to two roads – the M-22 main road in the direction of Kraljevo and Novi Pazar and the M-5 road which connects Čačak and Užice to Montenegro, via Zlatibor Mountain, and to Bosnia, on the other side. The closest port is in Belgrade which is a distance of 150 kilometres, while the Port of Bar is 348 kilometres away. A section of the Belgrade-NišSofia railway runs through the town, as do the Belgrade-Bar and Stalać-Požega railway lines.

The following airports are in the close proximity to Čačak: Lađevci (35 kilometres away), Ponikve (80 kilometres away) and Nikola Tesla (160 kilometres away).

tools (used for cutting metal, non-metal and timbers), chemical processing, manufacturing thermal appliances, as well as products made of timber, metal and combined materials, and timber and agricultural processing. Of Čačak’s territory, 68.5% is covered in arable land. A favourable geographic position, numerous sunny days and a fertile valley in the locality of the West Morava have helped agriculture and rural tourism to develop is this area.

INDUSTRIAL ZONE

The town of Čačak has an industrial zone which stretches along the right bank of the West Morava River, from the railway bridge to the road bridge on the M-5 main road. The current industrial zone is fully equipped in terms of energy, transport and communication infrastructure. It is also directly linked to the main transport routes and is quite close to the town’s centre. The town’s Local Economic Development Office has a database containing detailed information regarding potential industrial zones located in urban and rural areas, which are divided into locations suitable for greenfield investments and brownfield investments. The urban locations are included in Čačak’s detailed regulation plan.

The shortest time in which an investor can obtain required permits is 30 days

contact Vlajisav Papić, Head of the Local Economic Development Office Župana Stracimira 2, 32000, Čačak Tel: +381-32-309-019; 224-024 Fax: +381-32-343-701 Mob: +381-63-601-905 E-mail: socacak@eunet.rs Website: www.cacak.org.rs Languages spoken: English, German and Slovakian

ECONOMY

Čačak’s economy is very diverse. According to data from June 2009, Čačak has 1,697 companies (most of them are privately-owned, small enterprises) and 4,398 shops. The main features of the companies in this area are high flexibility, a capacity for innovation and a willingness to cooperate. When it comes to the economy’s structure, the biggest economy sectors are the agriculture, industry, retail and service sectors. In addition to agricultural production, Čačak is known for its paper industry, production of domestic appliances, cutting 24 / The Investors Guide - Serbia 2010 / 2011

INCENTIVES FOR INVESTORS

The Construction Land Act stipulates incentives in terms of lease fees and land development fees as follows: 25% discount if an investor creates at least 20 new jobs, 50% if he creates at least 50 new jobs and 100% if an investor hires at least 100 people. If no special technical conditions have to be met and if no environmental study is needed, the shortest time in which an investor can obtain required permits is 30 days. The following are the biggest investors that have invested in Čačak so far: Božo Tomić Paper Factory (Bulgaria), Autoprevoz Čačak (Israel), Putevi AD Čačak (Austria); Merkator (Slovenia), SCHOLZ (Austria), Oracle (France), and VAPEKS (Russia).

INTERVIEW Rita I. Lozinsky, CEO and Managing Director of Alumil YU Industry

A 20-Million-Euro Investment The Serbian market is a transitional market and is still developing, and this is the quality that makes it appealing for investing

Rita I. Lozinsky, CEO and Managing Director of Alumil YU Industry

A

lumil has been present in the Serbian market since the early 1990s. We asked Rita I. Lozinsky, CEO and Managing Director of Alumil YU Industry, about the company’s experiences as an investor and what difficulties they faced when they started doing business in the Serbian market.

4You have been present in the Serbian

market since 1995. Could you tell us what obstacles you had to overcome as a greenfield investor?

- Alumil came to the Serbian market in the early 1990s. Our strong engagement with Serbia, and the restless spirit and vision of our founder, Mr. Georg Milonas were instrumental in us viewing this market as conducive to large investments in the period after democratic changes. I think that you know that the value of the total investments made by Greek companies in Serbia so far stands at close to two billion euro.

Although, in its initial stage, Alumil invested 20 million euro, our plan is to have two more investment cycles. I can proudly say that these investments have had a positive effect on the Serbian industry, production, export, employment and technology growth. With regards to the obstacles you’ve mentioned, I can tell you that it wasn’t an easy feat to overcome them. In 2003, we began constructing our aluminium profile production and coating facilities

in Stara Pazova’s industrial zone. We had to obtain a substantial number of permits, establish contacts with numerous state, provincial and municipal organisations, as well as with public utility companies. Although, all of them were quite forthcoming and we were exceptionally well-received by them, the whole process was very lengthy, which led to the construction of our production facilities also lasting longer than we had originally anticipated.

4What is your view of the Serbian mar-

ket today?

- The Serbian market is a transitional market, i.e. it is still developing, and this is the quality that makes it appealing for investing in. We were all hit by the economic downturn, your country included. Today, we have to deal with many more difficulties in our day-to-day operations than before. Although, our business is still a profitable one and yields positive results, I think that it is a substantial success when you manage to maintain your market position despite difficult times.

4 What suggestions would you would like to make in terms of changing Serbian legislation in order to make the country a more appealing investment location?

- Although the Serbian Law on Foreign Investments is quite appealing, I think

that there is enough room to provide even stronger support to investors. Thanks to new legislation, we have become owners of the land which, until now, we had only the right to use. I think that this is an important moment for all the foreign investors who could not comprehend why they were not allowed to own the land in the first place. My key suggestions are the following – continue with the reforms with the aim of reducing administration fees which are imposed on companies, simplify the process of obtaining various building permits since this is crucial for greenfield investments, local authorities should offer to potential investors land plots that already have appropriate infrastructure in place and to give incentives to large industrial consumers in terms of reduced electricity and natural gas prices.

4 We often hear that positive experiences of one investor will draw in other investors. What are your experiences in doing business in Serbia and what advice could you give to investors who would like to invest in Serbia?

- Basically, our experiences with doing business in Serbia are positive. My main advice is be patient! Also, you need to hire local experts who are knowledgeable of the domestic situation. But, most importantly, get to know the mentality of this wonderful n nation, love Serbia and believe in it.

Recovery of construction industry The crisis in construction industry was induced by the overall economic crisis. Hence, we can expect for the construction industry to fully recover following the consolidation of industrial and other types of production. In other words, once the industry and other economic branches get going, the construction will follow suit. Personally, I anticipate positive developments in the latter half of 2011.

Serbia 2010 / 2011 - The Investors Guide / 25

Ćuprija

Two Industrial Zones Investors who hire over 50 workers are exempt from paying the construction land development fee

Ć BORIVOJE KALABA, the President of the Municipality: “Great potential is also available through the competitive workforce.”

contact Borivoje Kalaba President of the Municipality Tel: +381-35-470-248, ext. 102 Mob: +381-63-600-095 Email: info@cuprija.rs Vladimir Đorđević Manager of Project and Local Economic Development Department Tel: +381-35-470-248, ext. 118 & 119 Mob: +381-63-10-65-804 Email: vlada.djordjevic@yahoo.com Address: 13.oktobra, 735230 Ćuprija Website: www.cuprija.rs Languages: Serbian, English, French, German, Italian & Russian

uprija is located at the very heart of the Pomoravlje region and is 150 kilometres 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 above sea level. 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 the pan-European Corridor 10 motorway E-75, which links 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 are just 24 kilometres away, linking the municipality to Montenegro. The international railway lines of Budapest – Thessaloniki and Budapest Sofia traverse the municipality, while Belgrade International Airport is just 160 kilometres away and Niš International Airport is also nearby.

nicipality is working on improving the telecommunications grid.

Total arable land in the municipality covers an area of 29,000 hectares which is mainly used for agricultural production, while the remainder is covered in orchards and vineyards.

Privately-owned companies account for the majority of agricultural activity in the area. Of the total number of enterprises in the municipality, 98% are small and medium enterprises. The potential for tourism is untapped; however there are a number of traditional cultural and sporting events. There is also great potential with the competitive workforce available.

The potential for tourism is untapped; however there are a number of traditional cultural and sporting events

The Municipality’s Economy

The dominant economic components of 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. There are 20 registered cattle farms, with the biggest being PPD Dobričevo. The municipality also boasts several meat processing facilities - a traditional industry of Ćuprija. It also has significant forestry potential, with suitable conditions for setting up a transportation/ trade/ industrial terminal, particularly in the vicinity of the two industrial zones. There are a number of commercial banks in Ćuprija, the roading, gas and electricity infrastructure is well developed and the mu26 / The Investors Guide - Serbia 2010 / 2011

Industrial Zones

The Municipality of Ćuprija has two industrial zones (1 and 2), though both 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 stateowned and part privately-owned. Both zones are suitable for industrial production, trade, catering, arts and crafts and other service-based businesses.

Investor Incentives

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.

Deadlines and Permits

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

crna trava

Unspoilt Nature C

rna Trava is a village and municipality located in the Jablanica District of Serbia.

The Municipality of Crna Trava occupies an area of 312 square kilometres 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/north-west, Leskovac to the west, Surdulica to the south/south-east and Babušnica to the north-east. 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 here, which ensures that outward migration is still an issue.

The average age in the municipality is 60, while the once famous master builders from the municipality are continuing to relocate to larger cities. The most famous company originating from the municipality is construction company Crnotravac, which now has its head office

More than 20 hectares of blueberries have now been planted in the Crna Trava soil, providing both quick profit and long term revenue in Belgrade and not Crna Trava.

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

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 1,380 metres above sea level, 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.

A Focus on Tourism and Agriculture Čajetina’s main industries are tourism, agriculture, textiles, metal and wood processing

T

he municipality of Čajetina is situated in south-western 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 and Herzegovina. The Belgrade-Bar railway also passes through the municipality, and the Ponikve airport is nearby. Čajetina’s main economic branches are tourism, agriculture, textiles, metal and wood processing. Mount Zlatibor represents the tourism centre of the municipality. There is an open air museum called Staro Selo (Old Village) in Sirogojno, a waterfall in Gostilje, monasteries

in Uvac and Dubrava, a gallery on the Borova Glava and in Trnava, the Tornik ski centre, the Obudovica ski slope, as well as 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.

The most profitable area for investment is in tourism, including the building of tourist capacities and the 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.

The municipality is ready to assist investors in every way possible to 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.

Serbia 2010 / 2011 - The Investors Guide / 27

contact Slavoljub Blagojević, President of the Municipality Vatroslav Slavković, Assistant to the Municipal President 16215 Crna Trava Tel: +381-16-811-118; 811-182 Fax: +381-16-811-118 Email: officeledctrava@neobee.net Languages spoken: Serbian and English

čajetina

contact Milan Stamatović, President of the Municipality Bojana Božanić, Assistant to the Municipal President for the Economic Development 28, Zlatiborska, 31310 Čajetina Tel: +381-31-831-367 Fax: +381-31-831- 447 E-mail: cajetina@gmail.com Website: www.cajetina.org.rs Languages spoken: Serbian, English

Ćićevac

Effective Governance Ć

contact Zlatan Krkić, President of the Municipality Dragana Radosavljević, Head of the Municipal President’s Office Karađorđeva 106 37210 Ćićevac Tel: +381-37-811-260, Fax: +381-37-811-260 Mob: +381-63- 8-730-413; Email: kabinetcicevac@gmail.com Languages spoken: Serbian and English

Despotovac

ićevac is a town and municipality located in the Rasina District of Serbia. The 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 - passing 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, production of construction materials, retail, catering, agriculture and transportation.

As of this year, the municipality of Ćićevac is no longer in the group of the 40 underdeveloped municipalities. In addition to the proximity to the highway, railway and river flows, it has contributed to the privatisation of two collectives in Stalac, which are ranked among the best in the country.

The Pojate Industrial Zone (Location 1) cov-

Mališa Alimpijević, President of the Municipality Danilo Nikolić, Assistant to the Municipal President for Economic Development Tel: +381-35-611-117 Fax: +381-35-613-606 Mob: +381-64-877-47-06 Email: danilon@ptt.rs Languages spoken: Serbian and English

ers 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 motorway (Belgrade-Niš), the M-5 regional road (Pojate-Kruševac) and the future E-761 motorway (Pojate-KruševacKraljevo).

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.

Resavska Cave

An Underground World The territory of the municipality of Despotovac is ideal for agricultural production, which is its dominant economic branch alongside mining and forestry

contact

The Pojate industrial zone (Location 1) covers an area of 2.18 hectares and is located directly beside the panEuropean Corridor 10

T

he municipality of Despotovac is located in eastern Serbia, in the Pomoravlje district.

Despotovac and covers an area of 623 square kilometres, and is well connected to neighbouring municipalities and 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 Markovac-SvilajnacDespotovac-Resavica railway line, which is 42 kilometres long.

The territory of the municipality of Despotovac is ideal for agricultural production, which is the dominant economic branch here alongside min28 / The Investors Guide - Serbia 2010 / 2011

ing and forestry. The exceptional geo-morphological composition of the land, coupled with a favourable climate, provides a solid basis for the further development of agriculture and the municipality’s numerous settlements.

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 touristic destination of 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.

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

Dimitrovgrad

On a Major transport Route D

imitrovgrad is a town and municipality covering 483 square kilometres in the extreme southeast of Serbia, in the Pirotski district.

It is only 20 kilometres from Pirot, 90 kilometres from Niš, and 65 kilometres from Sofia.

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

The main economic sectors are 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 Dimitrovgrad municipality has initiated the development of a goods transport logistics centre covering an area of 26.37 hectares at the

Dimitrovgrad municipality has initiated the development of a goods transport logistics centre covering an area of 26.37 hectares at the Gradina border crossing

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.

The area is also rich in mineral and thermal springs and a spa that has been renowned since ancient times and 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, President of the Municipality Balkanska 2, 18320 Dimitrovgrad Tel: +381-10-361-100 Fax. +381-10-361-110 Email: sodimitrovgrad@yahoo.com www.dimitrovgrad.rs Languages spoken: Serbian, English and Bulgarian

Low Construction Land Fees

DOLJEVAC

The Doljevac industrial zone is located along Corridor 10 and the regional roads R-245 (leading to Prokuplje) and R-214 (Niš-Leskovac)

T

he municipality of Doljevac is located in south-eastern Serbia in the extreme north of the Leskovačka Valley in the Nišava district.

Doljevac municipality covers an area of 121 square kilometres. Doljevac offers an environment with very favourable traffic connections and a good geographical location. Through the central part of the municipality, from the north to the south, passes the main railway line and highway Belgrade-Nis-Thessaloniki-Athens, and these links directly connect with the network of international traffic.

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.

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

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 the relevant 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 has been worth €10 million and was made

by Forest Enterprises.

Serbia 2010 / 2011 - The Investors Guide / 29

contact

contact Goran Ljubić, President of the Municipality Kralja Aleksandra bb, 18255 Pukovac Tel: +381-18-810-054 Fax: +381-18-810-055 Mob: +381-63-10-68-254 Website: www.sodoljevac.co.rs Languages spoken: Serbian and English

Gadžin Han

Ideal for Berry Cultivation G

contact Saša Đorđević, President of the Municipality Miloša Obilića bb, 18240 Gadžin Han Tel: +381-18-860-112 Fax: +381-18-541-143 Email: info@gadzinhan.rs Website: www.gadzinhan.rs Languages spoken: Serbian and English

Golubac

adžin Han covers an area of 325 square kilometres in the Nišavski district of southern Serbia.

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.

Suva Planina has the largest number of sheep in Serbia and the majority 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%

Dr Nebojša Mijović, Municipal President Saša Bogićević, Head of the Office of Economic Development Cara Lazara 15, 12223 Golubac Tel: +381-64-85-89-323 Fax: +381-12-678-426 Email: office@golubac.org.rs Website: www.golubac.rs Languages spoken: Serbian, English, Russian and Romanian

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).

Municipal development potential will be realised 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.

Potential for River Tourism T

contact

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

he town and municipality of Golubac are located in eastern Serbia on the right bank of the River Danube. It covers an area of 368 square kilometres.

Golubac is 130 kilometres from Belgrade via the M25.1 regional road (BelgradeKladovo), 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 to six kilometres from bank to bank).

Golubac is located in the area where the Danube is the widest. 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.

Here one will find the largest national park in Serbia. Djerdap gorge, with the Iron Gate is the largest gorge in Europe.

Agriculture and the processing industry 30 / The Investors Guide - Serbia 2010 / 2011

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

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

Gornji Milanovac

A Developed Industrial Centre The main companies in Gornji Milanovac are confectioner and soft drink producer Swisslion Takovo and cookware manufacturer Matalac

T

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 836 square kilometres 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 mu-

nicipality belongs to the Morava district.

Gornji Milanovac is passed by the national Ibarska highway, which connects Belgrade (122 kilometres 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 municipality of Gornji Milanovac is one of the most developed industrial centres in Serbia. There are two developed and welllocated industrial areas. The main companies in Gornji Milanovac are confectioner and soft drink producer Swisslion Takovo and cookware manufacturer Matalac.

A Building Permit in Five Days The economy of the municipality is typified by the processing industry, lumber processing, the production of textile products and production of raspberries and potatoes

T

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 encompasses 48 towns and villages, 42 boroughs and 18 local communities, and is 224 kilometres from Belgrade.

The economy of Ivanjica municipality is typified by the processing industry, lumber processing, the production of textile products and production of raspberries and potatoes. Private property participates with 64% in the realisation of national income, while public and state properties participate with 27%.

The coverage of imports by exports is 92%.

The most important foreign trade partners of the municipality are Spain, Syria and Italy, followed by Montenegro, Bosnia and Herzegovina and Germany. The majority of imports are from Hungary, Austria, Italy and Czech Republic.

98.41% of Ivanjica municipality’s exports and 94.8% of its imports are related to the European Union and the former Yugoslav republics.

According to the data from the National Bank of Serbia, there are 365 active enterprises in Ivanjica municipality. Small enterprises, followed by middle sized enterprises that make almost 5% of the total number of enterprises, make 94.2% of their total number.

The Ivanjica industrial zone has been regulated by the General Spatial Plan and will be located between Senjak and Bukovica. All that remains to be resolved is the ownership rights of certain land plots.

An investor can obtain a building permit in five days, providing all relevant documentation has been submitted.

Serbia 2010 / 2011 - The Investors Guide / 31

contact Dražimir Marusić, President of the Municipality Takovska 2, 32300 Gor. Milanovac Tel. +381-32-720-282 Fax. +381-32-720-280 Email: predsednik@gornjimilanovac.rs www.gornjimilanovac.org.rs Languages spoken: Serbian and English

Ivanjica

contact Radomir Ristić, President of the Municipality Milomir Zorić, Deputy to the Municipal President Venjamina Marinkovića 1, 32250 Ivanjica Tel: +381-32-661-444, Mob: +381-64-88-99-450 Email: soivanjica@sezampro.yu www.ivanjica.rs Languages spoken: Serbian and English

ECONOMY

On the International

Financial Map USAID supports the first local governments’ competition for obtaining an international credit rating

By USAID

C

redit ratings of local Among them three cities stood out. The city of Novi Sad, governments are a proved to have a great development potential with a steady reveMichael Harvey, basic guideline for invesnue growth, which enables investment in further developments of USAID Mission Director tors and creditors. They $75 million a year. The city of Valjevo has, since 2006, had a stashow how good the conble surplus of current revenues over expenditures, which has enditions in the local community are, what the financial and fiscal abled a high level of investment of up to 44% of the total budget policies are, but also what the risks for investors and creditors are. ($10 million), which it plans to hold in the coming period. The city A good credit rating leads to lower borrowing costs for the local of Kraljevo has a high quality of financial management lead by fiauthorities in the capital market in order to raise additional funds to nancial experts, who have demonstrated the skills of modern debt finance rapid development of local communities. management. Novi Sad, Kraljevo and Valjevo were given, as a reFrom the 32 local governments in which the USAID’s Municipal ward, the consulting services of international credit rating agency, Economic Growth Program is implemented, 16 were selected and Moody’s Investors Service, with financial support from USAID. invited to participate in the ‘Competition for the Establishment We talked to Ljiljana Brdarević, the financial specialist of of the First International Credit Rating’, last autumn. Novi Sad, the USAID program and the coordinator of this initiative, about Nis, Leskovac, Subotica, Zrenjanin, Krusevac, Pancevo, Sabac, what the citizens would gain by the establishment of an internaKraljevo, Cacak, Smederevo, Sombor, Valjevo, Sremska Mitrovica, Uzice and Indjija were selected on the basis of size, population, quality of financial management and their achievements in stimulating economic development.

In just two months, the cities were required to prove that during the implementation of the USAID program they improved their knowledge and skills in the area of financial management and that they are ready to access the capital markets. At the final event on February 25th, 2010, all the cities were required to make a 10 minute presentation of their development potential, financial results and plans, achievements and reaMichael Harvey, USAID Mission Director and Slobodan Ilić, Secretary of State sons for investing in their particular comat the Ministry of Finance, with representatives from Novi Sad,Valjevo and Kraljevo munity.

32 / The Investors Guide - Serbia 2010 / 2011

tional credit rating in their cities.

“As far as the citizens are concerned, they will have multiple benefits from the establishment of a credit rating in their local communities. The first benefit is the availability of information about the quality of management of public funds by local authorities, who they choose at the local elections. At the same time,

they receive a forecast of the stability and viability of the existing financing of public needs. Another great benefit is faster development of local communities through greater private investment, both in public services and in the real sector. The final result will be better employment opportunities in the real sector, and an increase in the volume and quality of public services.”

Credit Rating Reduces Business Risk The establishment of an international credit rating may cause an increase in the interest of potential investors, to invest in local governance in Serbia. Determination and disclosure of the credit rating shows that the local authorities have realised the importance of transparent disclosure of the financial capacity, performance and plans, to potential investors, creditors and donors. It also confirms their willingness to use more of the market model of financing capital investment projects by issuing municipal bonds and the establishment of public-private partnerships, to improve public services and the economic environment.

“In declaring the credit rating of the three chosen cities, potential foreign and domestic investors have been sent a message about the amount of the investment risk in the northern, western and central part of Serbia. This will be the first time that local governments in Serbia will appear on the map of international investors, as a new destination for the investment of their capital,” Ljiljana Brdarević explains.

The establishment of an international credit rating may cause an increase in the interest of potential investors, to invest in local governance in Serbia The Ministry of Finance supported this initiative of USAID, to help encourage faster development of the capital markets. The State Secretary of the Ministry, Slobodan Ilic, assessed this as a ‘historic moment’ for the purpose of establishing a transparent way of managing public finances by local government units.

“All the banks, which grant loans to local governments, as well as those which are preparing a strategy for accessing this market segment, supported our action. The increased activity of banks to promote municipal bond issues can be expected only after existing laws are changed, in terms of returning the property to local governments and allowing the public placement of bonds,” Brdarevic concludes. n

JAGODINA

THE TOWN OF THE FUTURE The time needed for a potential investor to obtain the required permits and documents in order to become operational is up to 30 days

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Dragan Marković, Mayor of Jagodina: “Local authorities treating the town as they would their own homes is a prerequisite for the development of every single town and municipality in Serbia, and Jagodina leads by example.”

he town of Jagodina is situated in Central Serbia, in the heart of the Pomoravlje region, 136 kilometres from Belgrade and 100 kilometres north of Niš. The Corridor X runs straight through Jagodina, as does the electric double-track railway which connects Central to South Europe and further on to Asia. There are 52 villages in the Jagodina area and the population here stands at close to 83,000. The education structure of the work-capable population ranges from university graduates to those without qualifications, while the average salary is in the region of 300 euro.

Economy

In addition to its cable factory, Jagodina is also known for being home to one of the oldest Balkan breweries, Jagodinska Pivara (The Jagodinska Brewery), as well as for the meat processing company Juhor which exports to almost all European countries. Jagodina has quite a few privately-owned companies that produce electrical materials, furniture, are engaged in construction and other economic sectors.

Industrial Zones

contact Dragan Marković, Mayor Kralja Petra 6, 35000 Jagodina Tel/Fax: +381-35-221-220 Email: sojagodina@gmail.com Website: www.jagodina.org.rs Language spoken: English and Serbian

An industrial zone covering 150 hectares of land is currently being built only 500 metres from the Belgrade-Niš motorway, and 350 metres from toll booths. The land plots, ranging from one to five hectares, will be given to investors free of charge providing they hire at least 23 people per hectare of allocated land.

The plots include full infrastructure. In addition to this, local authorities have provided a location for yet another industrial zone, stretching across 14.6 hectares which contains a building and a 2,000 square metre production hall that can be also used as storage space. The time needed for a potential investor to obtain the required permits and documents in order to become operational, is up to 30 days.

Tourism

Since 2004 Jagodina, together with its mayor, Dragan Marković Palma, has become one of the leading Serbian towns in social, infrastructure, investment, tourism, cultural and sports development. In 2009 the Business Journalist Club declared Jagodina ‘The Town of the Future’. This flattering title is a result of the local authorities providing the highest social contributions to every single population category, as well as a result of the fact that a total of 250 kilometres of roads in both in rural and urban areas are paved, 10 kindergartens have been fully reconstructed and equipped, as were 45 school buildings, 40 village culture centres, 47 sports grounds and a glorious stadium that seats 14,000. Jagodina also has a wonderful zoo called ‘The Tiger’, which is the only zoo south of Belgrade, as well as a water park and a wax figure museum which is the only one in Serbia. By creating these unique tourist attractions, Jagodina has become one of the leading tourist centres in Serbia where you can relax, enjoy cultural events or have an adventurous holiday. In March this year, the town was again awarded by the Business Journalist Club with ‘The Crystal Prism’ for being ‘The Town of the Future’ in the area of tourism development. Only last year over 200,000 tourists from Serbia and abroad visited the Jagodina water park. Tickets to this attraction are very popular, and moreover tourists usually want to spend the night. In the past several years, as an acknowledgment to Jagodina for investing so much effort with adopting European standards and for its focus on development, several ambassadors have visited the town including those from Europe, America, Russia and Cuba. Once the Megatrend University opens its branch here, the town will also become a university centre, thus rounding off its leadership position in Central Serbia.

An industrial zone, covering 150 hectares of land, is currently being built where land plots will be given to investors free of charge providing they hire a certain number of people

34 / The Investors Guide - Serbia 2010 / 2011

KLADOVO

A Border Municipality New investors are able to receive many benefits, especially for ecologically clean programs and employment on a large scale

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he municipality of Kladovo is located at the far northeast of Serbia. It occupies an area of around 630 square kilometres, and is one of the smaller municipalities in Serbia, and is the smallest municipality in the Bor district.

It borders the municipalities of Negotin and Majdanpek, while the Danube represents its border with Romania and Europe. The municipality of Kladovo was, and still is, connected to the Danube in regards to transport and the economy, with its sailing, fishing, touristic, hydro-energetic potential and other areas. The Danube meanders in this area and forms the shape of a key, and hence the entire area is known as ‘the Key’. The shortest mainland connection to Belgrade (M-25/1 - distance around 250 kilometres) runs along the Danube and so does the shortest connection (M-25) to Negotin, Negotinska Krajina and other parts of eastern Serbia, as well as to Bulgaria. Its position on the Danube, facing Romania and close to Bulgaria, both of them EU members, is a distinct advantage of the Kladovo municipality.

tric power production (15%). The subsequent largest share of people employed in the economy is in trade (10%), and private entrepreneurs in general, regardless of their branch of business (9%). As 14% of the population is employed in healthcare and social services and 8% in education, one can conclude that the educational structure of the labour force is satisfactory. The average income is similar to the average income in Serbia at around 35,000 dinars.

The most important industrial entity in the area is the hydro-electrical power plant in Djerdap I

Economy

The economy of the municipality of Kladovo primarily consists of: industry, agriculture, tourism and catering, along with other economic branches. The most important industrial entity in the area is the hydro-electrical power plant in Djerdap I, which is the largest water power plant in the country and one of the largest in Europe and the world.

This is followed by shipbuilding, metal processing and other industries. Agriculture is an economic branch which has been very important for this area for a long time, due to favourable land relief, the composition of the soil and other natural attributes, as well as those created by people, which are mostly private property. Due to numerous natural and other potentials, tourism is a branch of the economy which needs to be developed even further, in addition to the above-mentioned branches, in order to increase the scope of production and services, followed by an increase in the number of employees. Around 10% of the population is unemployed.

Metal and other processing industries employ the largest number of people (27%), followed by elec-

Dejan Nikolić, President of the Municipality of Kladovo: “The municipality has several industrial zones which are well equipped, as well as plans for a new zone.”

Industrial Zones

The municipality has several industrial zones (in Kladovo and Brza Palanka) which are well equipped, as well as plans for a new one. The Electrical Power Industry of Serbia and other domestic but also foreign (Dutch and Romanian) investors have invested into these zones so far.

Benefits for Investors

New investors are able receive many benefits, especially for ecologically clean programs and employment on a large scale. In this regard, the municipal assembly passed, at the beginning of March 2010, a decision on the criteria and measures for determining the amount of compensation for the regulation of construction land on the territory of the municipality of Kladovo (Official Gazette of the Municipality of Kladovo, number 1/2010).

This decision prescribes a reduction, as well as an exemption from paying this compensation for investors who invest into community infrastructure or in a production or service industry important to the municipality. Reduction is also planned for investors employing small or larger numbers of employees. If investors employ up to five people, the reduction is between 15-25%. For over 20 employees in service industry the reduction is 50%, whereas in the production industry it is as much as 100%.

The municipality and municipal authorities are trying to decrease the length of administrative procedures regarding the construction of facilities and commencement of business activities as much as possible, which will depend on specific programs.

Thus, a general idea of the number of days necessary for this cannot be offered in advance.

Serbia 2010 / 2011 - The Investors Guide / 35

contact Dimitrije Singurilović, Manager of the Department for the Economy and Social Activities Kralja Aleksandra 35, 19320 Kladovo Tel. +381-19-801-450, Fax +381-19-801-563, Mobile +381-64-875-40-06, Email: mitaplaninar@kladovonet.com, Languages spoken: all – expert translators available

Knić

Ideal Conditions for Organic Food

The municipality’s most abundant natural resources include arable land, raw minerals, water potential and favourable conditions for the development of tourism

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contact Borislav Busarac, President of the Municipality Snežana Đokić, Assistant to the Municipal President Opština Knić, 34 240 Knić Tel: +381-34-511-999, Fax: +381-34-510-113 Mob: +381-63-10-88-051 Email: snezana.bankovic@knic.rs Languages spoken: Serbian and English

he municipality of Knić located in the Šumadija district, covers 413 square kilometres and is also located along the BelgradeKraljevo-Skoplje railway corridor. It is linked to the E-75 motorway and the Ibarska regional road via the M-23 and M-23.1, as well as the R-212 and R-212a roads.

The municipality’s most abundant natural resources include arable land, raw minerals, water potential and favourable conditions for the development of tourism.

Investors are advised to invest in agricultural processing systems, that is 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 environ-

ment, as well as excellent potential for the development of rural, agro and eco tourism.

The municipality’s industrial zone stretches across 40 hectares of land and is complete with the 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 and permits.

There is a seven-day deadline for processing a request for the 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.

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

THE INVESTORS GUIDE Serbia 2010/2011 This unique publication contains information on investment opportunities in all one hundred municipalities of Central Serbia. Following the publication of the successful annual Vojvodina Investors Guide (distributed in July 2010), alliance international media is issuing the second edition of this unique series offering useful information from Serbian municipalities, including all the 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 BY: Tel. +381 11 308 99 88; Fax. +381 11 308 99 77 email: office@cma.rs

36 / The Investors Guide - Serbia 2010 / 2011

Knjaževac

The Potential for Tourism Development The project for construction of a tourist centre on Stara Planina (Old Mountain) envisages building tourist resorts covering an area of 400 hectares, and with the capacity of 30,000 beds

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he municipality of Knjaževac is located in Eastern Serbia, near the Bulgarian border. It belongs to the Zaječar region, stretches across 1,202 square kilometres and has 37,172 inhabitants. The town of Knjaževac is 45 kilometres from the nearest motorway, 150 kilometres from the Danube port, 60 kilometres from Niš, 120 kilometres from Sofia and 300 kilometres from Belgrade.

The most important economic branches here are the textile industry, food processing, footwear production, and timber and metal processing. The entire area is exceptionally suitable for the development of agriculture, as well as rural, spa and mountain tourism. The municipality’s main advantage is a cheap and qualified workforce. In 2009 the net average salary in the municipality was 18,977 dinars.

premises in Knjaževac covering 1,580 square metres. The main building is divided into three functional areas. Although initially built to house a bank, the premises can be converted. The bank has obtained a licence to build on the existing roof. The Rogaška Spa sports and rehabilitation centre is four kilometres from Knjaževac.

This is a thermal spa where the water temperature is 28ºC and the capacity is 60 litres per second. Some 1,000 metres away, there is an Olympic size swimming pool with additional facilities that make use of the thermal water. The swimming pool complex covers four hectares and is state-owned. There is a project for the construction of a tourist centre on Stara Planina (Old Mountain) that envisages building tourist resorts covering an area of 400 hectares with the capacity of 30,000 beds.

There is also a plan to build the Golema Reka ski slope, which would be situated on 150 hectares of ground with a 30-kilometre-long-cable car.

The Knjaževac municipality offers incentives to potential investors especially when it comes to fees and other costs related to construction land lease

Investment Opportunities The ‘Kasarna’ industrial zone is located in the town itself, just off the Niš-Prahovo main road (M-25). A complex of military facilities stretches across 23.21 hectares and offers the ideal location for business facilities, residential buildings and sport halls. Businesses located in Knjaževac include the Džervin Company which is one of the leading juice and wine producers in ex-Yugoslavia. The company has its own fruit and vegetable processing facilities, as well as non-alcoholic and alcoholic beverage production lines and a cold storage facility. The engine and tractor company, IMT Knjaževac has several production lines which include: a thermal processing line with salt baths and a muffle furnace, dye works with a container for colour immersion (capacity 9,000 litres) and two spraying cabinets with water curtains, a water purification facility, and a chemical and metallurgical laboratory with specialised equipment. The company Branka Dimić is owned by its former shareholders and its factory building and surrounding area covers 17,000 square metres. Borska Bank has declared bankruptcy but still owns business

Mladen Radosavljević, President of the Municipality of Knjaževac “Investors can obtain all relevant permits within five days, providing they have submitted the required documentation.”

Incentives The Knjaževac municipality offers incentives to potential investors especially when it comes to fees and other costs related to construction land lease. If an investor hires over 10 people, the land development fee is reduced by 20%.

Deadlines and Permits Investors can obtain all relevant permits within five days, providing they have submitted all the required documentation.

Significant Investors The most important foreign investor in the municipality of Knjaževac is Falc East d.o.o., which employs 1,100 people. The company produces children’s footwear under the brand name of Naturino. It also has plans to export to the EU and US. Falc East was the recipient of the ‘Exporter of the Year 2009’ award.

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contact Dragan Milutinović, Municipality of Knjaževac Development Agency Cara Dušana 19, 9350 Knjaževac Tel: +381-19-731-256 Fax: +381-19-731-256 Mob: +381-64-61-00-406 E-mail: office@ark.rs Website: www.ark.rs Languages spoken: Serbian and English

Kosjerić

Energy From Renewable Sources T

contact Dragan Vujadinović, Municipal President Olge Grbić 10, 31260 Kosjerić c/o Danijela Ilić, Tel: +381-31-783-582 Mob: +381-64-231-82-09 Email: danijelaailic@yahoo.com Website: www.kosjeric-online.com Languages spoken: Serbian and English

Koceljeva

he town and municipality of Kosjerić is in a mountainous area in the Zlatibor district of western Serbia. The municipal area covers 358 square kilometres, of which agricultural land covers 19,682 hectares.

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

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

Kosjerić features 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 in the municipality. There is organised production of raspberries (around 4,000 tonnes per year) and plums. The municipality is

Veroljub Matić, President of the Municipality Branislav S. Mićić, LED Assistant to the Municipal President Nemanjina 74 15220 Koceljeva Telephone: +381-15-556-537 Fax: +381-15-556-587 Mob: +381-64-827-61-02 Email: pomocnik@koceljeva. gov.rs Website: www.koceljeva.gov.rs Languages spoken: Serbian, English and Czech

currently seeking opportunities to organise cultivation/farming of snails, strawberries, mushrooms and fish.

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 a number of business and industrial zones: Kladoroba I and II, City Depot, Tulimirsko Polje Industrial Zone and Brajkovic II Business Park.

The local government believes that rural development in Kosjerić should be turned into organic production, as great opportunities exist for the production of organic food namely suitable land, well preserved nature and the availability of energy from renewable sources.

Useful Assistance and Support Investors opting to set up production facilities in Koceljeva will only be required to pay 20% of their utility expenses

contact

The municipality has a number of business and industrial zones: Kladoroba I and II, City Depot, Tulimirsko Polje Industrial Zone and Brajkovic II Business Park

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oceljeva is a municipality located in the Mačva district of Serbia. The territory of the municipality covers an area of 25,727 hectares.

The town of Koceljeva is 80 kilometres west of Belgrade and Belgrade airport via the M-21 regional road, 30 kilometres from the nearest port on the Sava River, and 30 kilometres from the EU Istanbul and Budapest - South Adriatic terminals.

The municipality’s main economic branches are agriculture, food production and non-metal processing.

The municipality boasts an industrial zone that covers an area of close to 30 hectares. It is fully equipped with infrastructure, and offers a water and electricity supply, telephone land lines, a sewage system etc.

38 / The Investors Guide - Serbia 2010 / 2011

Investors opting to set up production facilities 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.

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.

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

Koceljeva municipality has extremely favourable conditions for rural tourism development.

First of all there is well preserved nature, a mild climate, clean air, unpolluted rivers, and rich flora and fauna. Natural beauty and a rich cultural heritage are enriched with the hospitality of the local population who receive each guest as a friend and offer them rich and healthy natural food.

Kraljevo

Centre of South-western Serbia For new investments and the creation of new workplaces in Kraljevo, incentives will be provided which will be double the current ones, and these incentives will range from 4000 to 10000 euros per new work place

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raljevo, territorially the biggest local selfgovernment in Serbia, occupying the area of 1530 square kilometres, is located 180 kilometres south of Belgrade. It has a favourable geostrategic position at the location where important road and railroad tracks intersect. It represents an economic, trade and industrial centre in south-western Serbia. A rich cultural and historical heritage and natural resources represent an important tourism potential. A favourable business climate and existing resources enable the development of agriculture, trade and industry. This city has a tradition of machine and mechanical industry.

Industrial giants currently in the process of privatisation exist in the city. Infrastructural capacities are well developed, and the city has a faculty of mechanical engineering, which serves as the basis for scientific development and the labour force in the municipality is experienced. This all makes the city attractive to foreign investors, especially in the sector of the mechanical industry. Favourable elements for the development of industry here are production capacities, developed infrastructure, good raw materials, as well as good traffic connections with regional and main roads. The local economy consists of 1,102 companies and 3,892 shops. The most important branches of industry are: machinery, metal, food and timber. Financial services are offered by 23 banks and three insurance companies.

are in the repeated process of privatisation.

Greenfield location: ‘Seovac’ industrial zone is located at the entrance to the city from the direction of Cacak, adjacent to the Ibar highway and four kilometres from the centre of the city.

The zone occupies an area of 153.29 hectares.

The military airport Ladjevci is located around eight kilometres from the zone. The zone has the necessary communal infrastructure (water supply system, sewerage, electrical power, traffic infrastructure, atmospheric sewerage, and the construction of a secondary pipeline network DN250 is underway). The goal of equipping this zone is to meet the needs of entrepreneurs. About 80% of the land is privately owned, while the remaining 20% is owned by the state. The city of Kraljevo owns a two hectare lot in this zone, which can be offered to potential investors.

There is an industrial zone ‘Stari Aerodrom’ (Old Airport), located between the main road Kragujevac-Kraljevo-Cacak, three kilometres from the centre of the city. The total area of these lots is 9.58 hectares, and the party using these lots is the city of Kraljevo. This zone is located in the construction area and is fully equipped with communal infrastructure (water supply system, sewerage, industrial water, electrical power, gas, industrial railroad). Sports airport which can be used for light air traffic is located close to the zone.

The mechanical, metal, food and timber industries are dominant

Opportunities for Investment Brownfield location: Medijapan business production zone is about nine kilometres from the city, and is close to the main road Kraljevo-Raska (Ibar highway). The city has an industrial railroad track. There is a 6000 square meter production hall on the site. The total area of accompanying land parcels is around six hectares. This location has the necessary communal infrastructure.

In terms of ownership status it is public property. Kraljevo industrial giants Wagon production factory (Fabrika Vagona) and Magnohrom factory

Ljubiša JovaŠEVIć, Mayor of Kraljevo “In order for an investor to receive these incentive funds, he has to invest at least 500,000 euros into these areas and open at least 50 new work places.”

Benefits for Investors

contact

For new investments and the creation of new workplaces in Kraljevo, incentives will be provided which will be double the current ones, and these incentives will range from 4000 to 10000 euros per new work place. In order for an investor to receive these funds, he has to invest at least 500,000 euros into these areas and open at least 50 new work places. The most important investors in the city of Kragujevac are: Sicoberi, Mondi Serbia, Aerieast Europe, Sato, Treba, Farmad, Tus and others.

Ljubiša Jovašević, Mayor Trg Jovana Sarića 1, Kraljevo 36000 Tel: +381-36-306-031 Fax: +381-36-306-098 Email: gradonacelnik@kraljevo.org Website: www.kraljevo.org Languages spoken: English and Serbian

Serbia 2010 / 2011 - The Investors Guide / 39

Kragujevac

The Best Host City contact Veroljub Stevanović, Mayor Goran Petrović, Head of the City Investment and Development Directorate Trg Slobode 3, Office no. 203, 34000, Kragujevac Tel: + 381-34-306-127; 306-145 Fax: + 381-34-306-127 Email: g.petrovic@investinkragujevac.com Websites: www.investinkragujevac.com; www.kragujevac.rs Languages spoken: Serbian, English, German and Italian

Krupanj

The Italian company Fiat signed a contract with the Republic of Serbia for joint investment in the Kragujevac company Zastava Automobiles

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ragujevac is the largest city in the district of Sumadija and the fourth largest city in the Republic of Serbia. The total population is estimated at 180,252. The city comprises 57 settlements with 76 local communities. There is land with an excellent traffic infrastructure and a traffic corridor that provides fast and safe connections with surrounding areas, while the Kragujevac-Lapovo highway will link the city to Corridor 10.

The city of Kragujevac has become a mecca for investors. It is a city with a favourable business climate and accelerated local economic development which has been confirmed by the National Alliance for local economic development (NALED) certificate.

The Italian company Fiat, one of the world’s

biggest car manufacturers, signed a contract with the Republic of Serbia for joint investment in the Kragujevac company Zastava Automobiles, which is expected to revitalise the Serbian car industry, and to create new jobs and stimulate a number of other sectors in the city.

In addition, Plaza Centres, a leading multinational company, has begun construction works on a contemporary multi-functional business and shopping centre in the Old Worker’s Colony quarter. The city is one of the biggest building areas in Serbia, and companies such as Mercator, Metro, Tus, Supernova, Nelt, and Forma Ideale are making investments here.

The city has provided more than 70 locations for manufacturing and service activities for small and medium enterprises, in the working areas Petrovac, Skaldište and Denino hill.

Kragujevac has been once again proclaimed the “city of the future” and the best host city in Serbia.

Two Business Zones The municipality recommends that investors opt for raw material and agricultural produce processing facilities, which the municipality has in abundance

K contact Savo Dorić, Municipality President Marsala Tita 2, 15314, Krupanj Tel: +381-15-681-475 ext. 118 & 126 Fax: +381-15-681-103 Email: krupanjso1@nadlanu.com Website: www.krupanj.org.rs Languages spoken: English and others

rupanj is a town and municipality located in the Mačva district of Serbia. The municipality of Krupanj covers an area of 342 square kilometres along the left bank of the River Drina in western Serbia, and encompasses 23 villages. The leading economic branches in Krupanj are agriculture, wood processing and tourism. As the municipality is lacking in 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 40 / The Investors Guide - Serbia 2010 / 2011

can be 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. The municipality recommends that investors opt for raw material and agricultural produce processing facilities, which the municipality has in abundance, as well as using existing production facilities.

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.

Krupanj has a clean and undisturbed natural environment, and its richness in historical monuments offers significant touristic potential.

Kruševac

Example of successful The municipality is working expediting the issuance of privatisation onrequired permits in order to T

he city of Kruševac is situated in central Serbia, just 23 kilometres from the panEuropean Corridor 10 (Belgrade-Niš motorway). Kruševac covers an area of 854 square kilometres.

The nearest international airport is 80 kilometres away 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, mobile and fixed-line telephony networks and internet connections.

Machine processing, chemical/textile industries and the service sector dominate in

shorten the entire procedure as much as possible Kruševac. Local companies that have been successfully privatised include Henkel-Merima and Trayal Corporation, while those currently undergoing privatisation include IMK ‘14.

Oktobar’ and chemical company Župa.

The municipality has vast tourist potential.

Historical sites include the Lazarica church, monasteries Naupare, Đunis, Veluće and others. There are several spas, including 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.

Furthermore, the municipality is working on expediting the issuance of required permits in order to shorten the entire procedure as much as possible.

Favourable Conditions for Fruit Production

contact Desimir Pavlović, Mayor of Kruševac.Miloš Jovanović, Head of the Kruševac City Administration Gazimestanska bb 37000 Kruševac Tel/fax: +381-37-421-567 Email: protokol@krusevac.org.rs Website: www.krusevac.org.rs Languages spoken: English and Serbian

Kuršumlija

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

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uršumlija is located in southern Serbia, occupying an area of 952 square kilometres, and belongs to the administrative district of Toplica. The geographic position of the municipality gives it a general transit character, as the regional road of strategic importance linking Niš to Priština to Peć goes by here.

Kuršumlija’s territory offers attractive and well-preserved nature. This is a hilly and mountainous area with dense forests stocked with forest-fruits, traversed by wild, clean rivers and dotted with numerous spas and springs with clean drinking water.

The most important tourist potential here is in the three spas of Prolom, Kuršumlijska and Lukovska, which boast mineral waters of exceptional quality, favourable climatic conditions and a well preserved environment. The tourist offer-

ing is completed by the famous Đavolja Varoš, a unique natural phenomenon, the Kopaonik mountain range, a mine, and the mountains of 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 that of apple and plum. The existence of large areas of meadows and pastures offers the potential of developing livestock breeding operations, while the exploitation of forest fruits is also well developed.

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

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contact Zoran Vučković, Municipal President Proleterskih brigade bb, 18430 Kuršumlija Tel. +381-27-381-383 Fax. +381-27-381-785 Email: president@kursumlija.org Website: www.kursumlija.org Languages spoken: English and Serbian

Kučevo

Agricultural Production 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 contact Zoran Milekić, President of the Municipality Svetog Save 76, 12240 Kučevo Tel: +381-12-852-178 Fax: +381-12-852-684 Email: sokucevo@kucevo.rs, Website: www.kucevo.rs; Languages spoken: Serbian and English

Lajkovac

T

he municipality of Kučevo is located in the south-east of the Braničevo district and covers an area of 721 square kilometres.

It is traversed by two major transport routes: the Belgrade-Požarevac-Majdanpek-Zaječar road and the Belgrade-Požarevac-MajdanpekPrahovo railway, which ends at the Port of Prahovo on the Danube.

Territorially, Kučevo consists of flatlands, undulating hills and a mountainous section.

The flatlands represent an ancient floodplain around the Pek River, while the mountainous area is represented by the slopes of Homolje Mountain. Half of the territory - 35,320 hec-

Opportunities for Cargo Transport The municipality provides incentives for building permits if an investor wants to set up an SME

contact Dušan Živanović, Municipal President Omladinski Trg 1, 14224 Lajkovac Tel: +381-14-73-109; 71-108 Fax: +381-14-73-332 Mob: +381-63-106-27-23 Email: kabinet@lajkovac.org.rs Website: www.lajkovac.org.rs Languages spoken: Serbian, English and German

tares – is covered by arable, agricultural land, while the other half is largely forested.

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 and 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.

L

ajkovac is a small town and municipality located in western Serbia, close to the town of Lazarevac. It is located in the Kolubara River valley and is near the Ibar motorway, the main route from Serbia to Montenegro. The municipality of Lajkovac covers an area of 186 square kilometres. It is 69 kilometres from Belgrade and 27 kilometres from Valjevo.

Lajkovac’s industrial zone stretches over 104.5 hectares and is suitable for small and medium-sized enterprises (SMEs).

Advantages of the business and commercial zone of Lajkovac include: its proximity to important routes and the oppor42 / The Investors Guide - Serbia 2010 / 2011

tunities for cargo transport (Belgrade-Bar Railway, Ibar motorway); it is only 70 kilometres to Belgrade on the Niš Motorway via Aranđelovac; the Adriatic motorway route which runs along four kilometres of the zone; closeness to the inland navigation routes of the Danube in Belgrade and the Sava in Šabac; closeness to other large towns, business and commercial centres such as Čačak, Aranðelovac, Obrenovac, Ub, Valjevo; and the fact that land prices are lower than in the area of Belgrade and nearby municipalities. Land here is privately-owned and partially equipped with infrastructure. The municipality will provide the required permits and utility services. The municipality provides incentives for building permits, that is, 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.

Lapovo

Municipality of Potential The Lapovo free zone has been established on a site between the international highway and the international rail line tracks

L

apovo is a small town and municipality in central Serbia’s Šumadija district, covering an area of just 55 square kilometres. The municipality of Lapovo contains only two settlements: the Town of Lapovo (Varoš Lapovo) and the village of Lapovo, also called Gornja Stanica (Upper Station).

Lapovo is one of the most promising towns in the surrounding area, thanks to its great geographical location. It is situated at the intersection of the Belgrade-Niš (Corridor 10) motorway and the main regional railway Belgrade-Skopje-Thessalonica-Athens. The municipality has well developed construction, graphics and chemical industries and trade sectors. The last few years have been of spe-

cial importance for 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 stable, secure economy that will make it a significant part of Serbia and Europe.

The Lapovo free zone has been established on a site between the international highway E-75 (Belgrade-Niš) and the international rail line tracks and 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.

Orchard Plantations The municipality of Lebane offers the following comparative advantages to potential investors: a cheap workforce, low land development and land utilisation fees, and high quality agricultural produce

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he municipality of Lebane is located in the south-west of Central Serbia, in the Jablanica River basin – a tributary of the Southern Morava River. The municipality stretches over 337 square kilometres and has 25,000 inhabitants.

The pan-European Corridor 10 motorway is just 20 kilometres south-west of Lebane, while the important city of Niš is only 65 kilometres away.

Total agricultural land in the territory of Lebane is 18,517 hectares - forests occupy 7,987 hectares and infertile land makes up 364 hectares. The climate and soil in the munici-

pality of Lebane provides ideal conditions for growing and storing all kinds of domestic animals and game. Fruit production in the municipality covers 1,500 hectares, of which in the individual sector is 1,350 hectares, 150 hectares is made up of fruit production orchard of apples, pears and cherries.

The Lebane industrial zone, which is located at the very heart of the town, 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 road and utility infrastructure, as well as its own power substation.

The following comparative advantages are offered 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. The biggest investor in the municipality is Por Werner & Weber, which handles the removal and depositing of utility waste from the municipality’s territory.

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contact Dragan Zlatković, President of the Municipality Njegoševa 18, 34220 Lapovo Tel: +381-34-853-516 Fax: +381-34-853-105 Email: office@lapovo.org www.lapovo.org Languages spoken: Serbian and English

Lebane

contact Dr Mića Stanković, President of the Municipality Nenad Jovanović, Assistant to the Municipal President for Economic Development Cara Dušana 116 16230 Lebane Tel: +381-64-852-98-24 Fax: +381-16-843-083 Email: kabinet@lebane.org.rs Website: www.lebane.org.rs Languages spoken: Serbian and English

Leskovac

Food Industry Most Desirable Significant investors in Leskovac include Falke (Germany), Zdravlje Actavis (Iceland), Interlemind (Bulgaria), and Porr Werner & Weber (Austria)…

L Slobodan Kocić, Mayor of Leskovac: “Possible benefits for investors depend on the number of employees.”

eskovac is a city in the Jablanica district. It is located in a fertile basin, surrounded by Babicka Gora (1098 metres), Selicevica (903 metres) and Suva Planina to the east, Radan (1409 metres) and Pasjaca to the west and Kukavica (1442 metres) and Cemernik (1638 metres) to the south. Leskovac municipality is one of the largest municipalities in Serbia with 162,000 citizens covering 1,025 square kilometres. Leskovac municipality is the most scattered municipality in Serbia with 144 settlements. Three settlements are cities, from which Leskovac is the economical, social-political, cultural, and immigration centre of the whole area. The currently population stands at 65,000 citizens. International trains that travel from Europe to Skopje, Thessalonica and Athens pass through the city. The most significant road is the E75 motorway that connects Serbia with Hungary and Macedonian. Sections of two main roads (the M1 and M9) pass through Leskovac. One section of the M1 has been modernised in the past five years.

Economy

contact Bojan Marčić, Program Manager for Local Economic Development Trg Revolucije 45, 16000, Leskovac Tel: +381-16-232-391 Fax: +381-16-216-366 Cell: +381-64-885-4601 E-mail: marcic.bojan@aler.rs, marcic_b@hotmail.com Website: www.gradleskovac.org Languages spoken: English and Serbian

There are four dominant industries in Leskovac: the chemical industry, food industry, textile industry and wood processing industry. These industries are supported by the metal industry, wood industry, electric industry and construction material industry. The most significant investors that have invested in Leskovac include: Falke (Germany), Zdravlje Actavis (Iceland), Interlemind (Bulgaria), Porr Werner & Weber (Austria), Bulcvat (Bulgaria), Sonder Jansen (the Netherlands), Roukis Element (Greece), Idea (Croatia), DCP Hemigal, SKKR ROSSO, the famous trademark of Martini Vesto brand and the following Leskovac companies Mateks, Mesokombinat, MK, Bane Komerc, Mlekara, Strela Kljajic, Tomaco, FungoJug and Drvopromet. In June 2010 Leskovac has been awarded as a city with favourable business surroundings.

Industrial Zones

The eastern industrial zone is located on the 44 / The Investors Guide - Serbia 2010 / 2011

main M1 road. It is also situated six kilometres away from the motorway and it has totally completed infrastructure. Four new working zones designed for greenfield investments and which have partly finished infrastructure, have been formed within this zone, and cover an area of around 60 hectares. The northern industrial zone is located eight kilometres away from the motorway and one kilometre away from the main road. It covers an area of 59.6 hectares and it has complete infrastructure. A new northern zone, owned by the city, which covers an area of 96.93 hectares, will be identified by the enactment of the new General Plan 2010-2019.

The southern industrial zone is located between the main roads of the M1 and M9, and E75 motorway. It covers the area of 110.5 hectares and it has partly complete infrastructure.

Benefits

The option of decreasing rental in accordance with the decision of city of Leskovac assembly is possible dependent on the number of employees, and the price of the workplace: 1. 5 - 20 employees - 1.500 points per employee 2. 20 - 50 employees - 2.500 points per employee 3. 51 - 200 employees - 5.000 points per employee 4. over 200 employees - 7.000 points per employee (1 point = 1 euro per average foreign currency exchange of the NBS) The industries suggested by the city are the food industry and the processing of agricultural products.

Necessary Documentation

With ‘step by step’ analysis, the city has decreased the timeframe for acquiring all necessary documentation to begin construction works, to 86 days, while investors can acquire all other necessary documentation in a short time with the aid of the Agency for Local Economic Development.

Loznica

Industry and Tourism In the following period, a lot of effort will be invested in advancing agriculture which is an important foundation for development of the food processing industry

T

he town of Loznica is the centre of the municipality of Mačvanski County, in Western Serbia.

The municipality covers 612 square kilometres and has 86,413 inhabitants. Loznica has a well developed transport infrastructure on the basis it is only 80 kilometres from Corridor X, while the M-19 main road is also 80 kilometres from the E-70 motorway, which connects the town to Belgrade and Bosnia and Herzegovina. The M-4 road links the town to Southern Serbia. Loznica is 110 kilometres from Belgrade Airport and 130 kilometres from Sarajevo Airport. Railway transportation is via the Belgrade-Ruma-Loznica line which connects the town to Bosnia and Central Serbia.

Economic Potential

The most important industrial branches here include textiles, food processing, metal processing, paper processing, pharmaceuticals, and construction. Loznica’s geographic position is such that, in addition to fully equipped industrial zones which are excellent investment locations, there are also many beautiful tourist resorts such as Gučevo Mountain, the Drina River, the famous village of Tršić, and Koviljača Spa (Banja Koviljača). For this reason, local authorities are keen not only to develop industry, but also tourism. In the following period, a lot of effort will be invested in advancing agriculture which is an important foundation for development of the food processing industry, which is also considered an ancillary branch to tourism and catering.

The industrial zone has relevant infrastructure, the local administration is efficient, the town’s infrastructure is well developed and there is a good level of qualified workforce which all help make the town a business-friendly environment.

The town of Loznica is one of the first three local communities to be certified as having a business friendly environment in Serbia, recognising it as being a very suitable location for investing, and as such is the leader in Western Serbia.

Industrial Zones

The Šepak industrial zone is located on the state border with Bosnia and Herzegovina. It is 1,500 metres from the town centre and is located

between two main roads, the M-4 and M-19. The zone covers 82.66 hectares of land with 30 hectares having full transport, water and sewage infrastructure, including electricity and gas supply, phone lines and internet connections. Currently, plots ranging from 15 acres to 337 acres are on offer. The land plots can be re-distributed, depending on investors’ requirements. The initial price starts between 7.2 and 7.4 euro per square metre of land.

The state provides relevant incentives based on an act adopted by the Serbian government which stipulates disposing of construction land at the prices lower than the market ones. The land development fee is 7.2 euro per square metre.

Vidoje Petrović, Mayor of Loznica: “Investors are given incentives when paying land development fees.”

There are many beautiful tourist resorts such as Gučevo Mountain, the Drina River, the famous village of Tršić, Koviljača Spa (Banja Koviljača) and many others which are all suitable for investing in The business and residential zone, Lagator, is 500 metres from the town centre. The zone covers an area of 20 hectares, with 16 hectares currently available. Land has been divided into plots ranging from 4.2 acres to 320 acres. The land can be re-plotted dependent on the requirements of the investor. The initial auction price ranges from 17.2 to 30 euro per square metre. The state provides incentives, again based on the relevant act adopted by the Serbian government. The land development fee is between 7.9 and 22.2 euro per square metre, depending on whether one or several facilities are going to be built.

Information for Investors

The land utilization fee is paid on a monthly basis. There are incentives provided for the land development fee and they are: a 0.3% discount for each new job an investor creates, but not lower than 60% of the total price. The fee can be paid in 36 monthly instalments, and there is a 20% discount for paying in cash.

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contact Ljiljana Nikolić, Head of the Local Economic Development Office Karađorđeva 2, 15300 Loznica Tel: +381-15-879-293 Fax: +381-15-882-921 Mob: +381-64-640-53-74 E-mail: ljnikolic@loznica.rs Website: www.loznica.rs Languages spoken: English and Serbian

Lučani

Raspberries, Plums and Apples

This municipality is famous for its trumpet festival Sabor Trubača (The Trumpeters’ Assembly), which could be an interesting investment opportunity in itself contact Slobodan Jalović, President of the Municipality Mr Miloš Velanac, Assistant to the Municipal President JA 5, 32240 Lučani Tel: +381-32-817-151 Fax: +381-32-817-151 Mob: +381-63-660-281 Email: led.solucani@sezampro.rs Website: www.lucani.rs Languages spoken: Serbian, English, German, Russian and French

Ljig

T

he municipality and town of Lučani is situated in western Serbia, in the Dragačevo region within the Moravica district of Serbia. The municipality stretches across 454 square kilometres and can be reached from a number of directions Čačak, from Kraljevo, Požega, and Ivanjica. The roads and railroads are functional and they connect this part of Serbia with Belgrade (135 kilometres away) and Montenegro. 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.

The municipality is well-known for its fruit production including raspberries, plums, apples, and potatoes. Lučani is also famous for its trum-

pet 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 industry, 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. 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.

Good Transport Access The municipality has developed profitable projects and devised developmental documents for the accelerated procedure of constructing tourist facilities

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contact Miroslav Maksimović, Municipal President Luke Spasojevića 7, 14240 Ljig Tel: +381-14-85-030 Fax: +381-14-85-044 Email:drmaksimovic@ptt.yu Website: www.ljig.rs Languages spoken: English and Serbian

jig is a town and municipality in central Serbia’s Kolubara district. It covers an area of 279 square kilometres and is surrounded by the mountains of Rajac and Rudnik.

Ljig has an excellent geographical position and good transport access. The municipality is linked via the Ibarska Highway, 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 has a very favourable position for agriculture. The municipality has over three hundred registered orchards, 80% of which are plum plantations.

The area of the municipality has a large number of companies operating in the field of industrial production, with building materials production, metal processing, the food industry 46 / The Investors Guide - Serbia 2010 / 2011

and tourism represented.

Sites of specific potential include thermal mineral springs with substantial reserves as deep as 850 metres.

The municipality has developed profitable projects and devised developmental documents for the accelerated procedure of constructing tourist facilities: the spatial plan of the municipality of Ljig led to the adoption of the regulatory plan for Ljig Spa and Rajac Mountain, as well as the creation of an industrial zone on 175 hectares of land.

The industrial zone site shall be in the vicinity of the Ibarska Highway, 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.

Ljubovija

Raspberries and Tobacco The industrial zone, which already houses a number of companies, offers the potential for the realisation of numerous projects and the municipality is seeking serious investors

T

he municipality of Ljubovija is located in western Serbia on the right bank of the River Drina. Ljubovija belongs to the Mačva district.

The municipality is relatively small, covering just 356 square kilometres.

The municipality has a favourable geographical position and is located on the main BelgradeBajina Bašta road, which is western Serbia’s main communication route. Belgrade is 210 kilometres away via Šabac, and 158 kilometres away via Valjevo, Osečina and Pecka.

Agriculture remains the most important economic activity in the municipality, providing the greatest contribution to the average income among all economic activities. Though the percentage of the population engaged in agricultural activities is constantly decreasing, it remains the most prevalent. 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 there is the same level of popularity and success in tobacco growing.

The municipal territory includes land that the local authorities are ready to offer potential investors. The industrial zone, which already houses a number of companies, offers potential 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 available warehousing space, halls and office space, as well as some workforce capacities in a number of companies and agricultural co-operatives

Inexpensive, Well-trained Workforce M

ajdanpek is a town and municipality in the Bor district of Serbia. Majdanpek’s main advantages are its natural resources, geographical position and a 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.

A 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.

Mining is a developed industry here and other industries also present include copper processing, wood processing, agriculture, tourism and other services. Entrepreneurship is still in its developmental phase and the service sector prevails over production.

Majdanpek’s industrial zone currently covers an area of 80 hectares, though the municipal authorities plan to extend it to include an

contact Milovan Kovačević, Municipal President Vojvode Mišića 48, 15320 Ljubovija Tel: + 381-15-661-960 Fax: +381-15-662-870 Tel/Fax: +381-15-661-411 www.ljubovija.org Languages spoken: Serbian and English

Majdanpek

The municipality’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

additional 22.5 hectares.

Some 15% of the zone’s land is 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 tertiary economic activities.

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 eight days.

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contact Dragan Popović, President of the Municipality Svetog Save bb, 19250 Majdanpek Tel: +381-30-581-240 Fax: +381-30-581-580 Email: predsednistvo@opstinamajdanpek.rs Website: www.majdanpek.rs Languages spoken: Serbian and English

Mali Zvornik

Good Energy Potential The municipality’s economy is based on small scale industrial capacities and the utilisation of local natural resources

T contact Branko Radić, Head of the Department of the Municipal Economy Kralja Petra I 38, 15318 Mali Zvornik Tel: +381-15-471-859 Fax: +381-15-471-885 Mob: +381-64-80-46-210 Email: opstmzv@ptt.rs Website: www.malizvornik.org Languages spoken: Serbian and English

Malo Crniće

he municipality of Mali Zvornik is situated in central Podrinje, in western Serbia. The municipality stretches across 184 square kilometres.

Mali Zvornik has a relatively favourable transport and strategic position; it stretches along the main road between Belgrade and Bjelovar, which is the main transportation route in Western Serbia. 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 raw minerals.

Development of the tourism sector is supported by Mali Zvornik’s beautifully preserved nature, Drinsko Lake, Radaljska Spa, its rich historic and cultural heritage, a distinctive local cultural identity, good quality agricultural produce and food, quality mineral springs and potential for the development of health and spa tourism at Radaljska Spa. 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 and mining (83.8%), while the rest is engaged in nonproduction sectors.

The municipality’s dominant economic branches include industry, mining, agriculture, fishery, trade, construction, transport, catering, tourism, arts and crafts, and financial services.

Short Breaks and health Holidays

The greatest natural resources of this municipality are fertile land, water resources and areas of unspoilt nature

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contact Dr Esidol Perić, Municipal President Marsala Tita 80, 12311 Malo Crniće Tel: +381-12-280-009 Fax: +381-12-280-006 Email: predsednik@opstinamalocrnice.org Website: www.opstinamalocrnice.org Languages spoken: English and Serbian

alo Crniće municipality is among the smaller municipalities in Serbia and belongs to the Branicevo district. It covers an area of 279 square kilometres and has 18,610 inhabitants residing in 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 hills, while at its end tower the Homolje mountains.

The adoption of the 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 municipality are fertile land, water resources and areas of unspoilt nature.

Local authorities have adopted a decision to 48 / The Investors Guide - Serbia 2010 / 2011

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 made to adopt local strategies for the sustainable development of Malo Crniće for the period between 2010 and 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 council leaders and the municipal coordinator. This document presents the needs of the municipality and its inhabitants in the coming years.

Malo Crniće also has potential for the development of tourism based on nature trips, short breaks and health holidays (rural, ethnic, ecological, recreational and hunting).

Medveđa

Adriatic Stroinvest Invest Support of investors in the ¤ 4.5 Million municipality of Medveđa M

edveđa municipality is located in southern Serbia’s Jablanički county on an area of 524 square kilometres.

The municipality boasts economic zones with industrial facilities, which are situated on the right bank of the River Jablanica and are 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 carbon dioxide gas. The site already has a water supply and energy network.

Support of 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 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 materials.

is evident in the effective local administration, which ensures that investors can obtain construction permits within 60 days

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, MB Farmakom Šabac, the 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 five-star hotel at Sijarinska Banja. This greenfield investment is worth €4.5 million.

Fruit Plantations The general spatial plan envisages the development of an industrial zone with partial infrastructure (with water and electricity supply, a sewage system and telephone landlines)

M

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 materials production, food processing, warehousing, construction material depots and a cold storage plant.

The municipal population is mainly engaged in agricultural production within the prevailing fruit industry: the famous Oblacinska cherry planted on about 1,500 hectares; plum cultivar Stanley, strawberries, raspberries and blackberries; production of vegetables under greenhouses: tomatoes, peppers, cucumbers, etc.

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 (with water and electricity supply, a sewage system and telephone landlines).

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contact Slobodan Drašković, Municipal President Jablanička 48, 16240 Medveđa Tel: +381-16-891-197 Fax: +381-16-891-106 Email: somedvedja@yahoo.com Dejan Simić, Head of the Medveđa Local Economic Development Office Tel: +381-16-891-138; 891-257 Fax: +381-16-891-106 Mob: +381-63-119-18-06; +381-64-863-80-82 Email: dejan.simic@ptt.rs; somedvedja@yahoo.com www.medvedja.org.rs Languages spoken: Serbian, English, French, Russian and German

Merošina

contact Slobodan Todorović, Municipal President Cara Lazara 17, 18252 Merošina Tel. +381-18-892-004; Fax: +381-18-892-035 Email: predsednikopstmer@jotel.co.rs Website: www.merosina.org.rs Languages spoken: Serbian, English and Russian

Mionica

Natural Surroundings This municipality doesn’t have an industrial zone, but municipal authorities are efficient with issuing the relevant permits. This procedure usually takes up to 15 days

contact Milan Matić, President of the Municipality Vojvode Mišića 30, 14242 Mionica Tel: +381-14-62-020; 62-666 Fax: +381-14-62-241 Email: somionica@ptt.rs Website: www.mionica.org.

Languages spoken: Serbian, Russian, English and French

Negotin

The 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 highway, which is just 20 kilometres from Mionica. There is also the BelgradeBar 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.

Tourism in the municipality of Mionica is varied. Mionica is widely known for its well-developed tourist facilities, and types of tourism include spa, mountain, cultural and historical.

Advantageous Harbour on the Danube The municipality’s greatest potential lies in the River Danube and its favourable geographical position, which makes it suitable for wind farms and agriculture

contact Radmila Gerov, President of the Municipality Trg Stevana Mokranjca 1, 19300 Negotin Tel: +381-19-544-000, Fax : +381-19-541-386 E-mail: ouc.negotin@yahoo.com Website: www.negotin.rs Languages spoken: Serbian & English

In recent times the development of rural tourism has become more popular and several ethnic centres designed to accommodate tourists have been established.

There are several construction projects (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 biggest investors to date are Slovenian Cimos, Voda-voda, MB Consulting, Delta and others.

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he municipality of Negotin is the geographic heart of the Negotinski district and covers an area of 1,089 square kilometres beside the tri-state border between Serbia and neighbouring EU countries Romania and Bulgaria.

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 makes it suitable for wind farms and agriculture.

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The Negotin municipality has an industrial zone that covers an area of 46.5 hectares and is intended for production activities, storage facilities, warehouses and other commercial properties. A section of the zone covering 29.5 hectares has constructed roads, running water and an 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 bring to fruition the 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.

The biggest investor in the municipality is certainly the Greek company Neochimiki L.V. Lavrentiadis S.A., which acquired the Prahovo chemical company three years ago.

Niš

The Regional Centre of South-eastern Serbia The technology park in Niš is known for its production of electronic equipment and electrical components for the car industry and IT sector

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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 district and the regional centre of southeastern Serbia. It is located on the crossroads of the most important Balkan and European transport routes.

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 mo-

Spa Centre The most significant potential and the greatest opportunities for investments are in the area are of health tourism, sport tourism, congress tourism, hotels and catering

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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 145 square kilometres 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 12 kilometres from Niš’s Constantine the Great airport.

This spa town boasts a thermo mineral spring with natural mineral water and mineral-rich mud.

torway 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.

The city of Niš will assign each investor with a personal assistant to provide assistance throughout the entire investment process.

All required permits will be issued within two months.

Subsidies for investors are from 2,000 to 10,000 euros for newly opened jobs, for greenfield and brownfield projects in the field of manufacturing, service or research and development.

The biggest investors to date are Philip Morris International, OMV, EKO Petrol, Lukoil, Interex, Metro, Mercator, Mina Corporation, Mr. Bricolage, McDonalds and others.

contact Miloš Simonović, Mayor of Niš Milan Ranđelović, Head of the Local Economic Development Office Obrenovićeva 38, First Floor, 18000 Niš Tel: +381-18-209-239 Fax: +381-18-209-240 Mob: + 381-64-833-00-30 Email: kler@ni.rs Website: www.kler.ni.rs Languages spoken: Serbian, English, Spanish and Bulgarian

Niška Banja The local mineral water, sourced from five individual springs, belongs to the group of groundalkali 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 infrastructure 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 (artificial lakes, hotel, catering and sports facilities); recreation centre Lozni Kalem (Aqua Park); sports complex Vrtop (tennis courts, Wellness Centre); ethno village Koritnik.

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contact Zoran Vidanović, Municipal President Sinđelić 3, 18205 Niška Banja Tel: +381-18-45-48-108, Fax: +381-18-45-48-629 Email: vzoran@gu.ni.rs; pitanja@goniskabanja.org.rs Website: www.goniskabanja.org.rs Languages spoken: Serbian and English

Novi Pazar

Centre of the Sandžak Region

Novi Pazar’s economy is dominated by retail activities, the processing industry (primarily textile and leather processing and furniture making), as well as transport and tourism

contact Dr Meho Mahmutović, Mayor Edin Kalač, Head of the Department of the Local Economic Development Stevana Nemanje 2 36300 Novi Pazar Tel: +381-20-313-644, extension 147 Fax: +381-20-331-942 Email: edin.kalac@novipazar.org.rs Website: www.novipazar.org.rs Languages spoken: Serbian and English

Nova Varoš

contact Branislav Dilparić, President of the Municipality Milovan Glavonjić, Assistant of the Municipal President Karađorđeva 32, 31320 Nova Varoš Tel: +381-33-62-140, 62-142 Fax: +381-33-62-140, 62-142 Email: ounvaros@gmail.com Website: www.novavaros.rs Languages spoken: Serbian and English

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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 Highway. 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

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.

Novi Pazar’s advantages lie in an educated workforce, expeditious issuing of required permits and various simulative measures.

The economic branches considered suitable for investing are as follows: the processing industry (particularly textile and leather processing), agriculture, organic food production and tourism.

Sporting and Recreational Tourism Areas suitable for investment include timber processing, the cultivation and processing of medicinal herbs, meat, milk and dairy production, fish ponds, bottling of natural water and tourism

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he municipality of Nova Varoš is situated in south-west Serbia at the very heart of the Zlatibor district. 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.

Nova Varoš has exceptional natural tourist potential with such features as well preserved countryside, over 500,000,000 cubic meters of top quality water in many lakes and springs, villages that are suitable for rural tourism and 52 / The Investors Guide - Serbia 2010 / 2011

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 route, ensuring its suitability for transit tourism.

The municipality has good hydro-potential and quality timber. 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.

The following industrial branches are suitable for investment: timber processing, the cultivation and processing of medicinal herbs, meat, milk and dairy production, fish ponds, bottling of natural water, tourism (building tourist facilities on Zlatar Mountain), growing and processing potatoes and carrots, livestock breeding, etc.

Osečina

Famous for Plums Key trade partners are Austria and Germany, accounting for the largest share of exports from the municipality, with key export products being made of fruits and vegetables

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he western Serbian town and municipality of Osečina is bisected by the main ValjevoLoznica road and planned railways connecting these same municipalities. Osečina is 32 kilometres northwest of Valjevo, via Loznica, and 130 kilometres south of Belgrade.

The municipality occupies an area of 319 square kilometres, with agricultural land covering 21,100 hectares and forests occupying 9,151 hectares.

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 agricultural 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 foods.

Key trade partners are Austria and Germany, accounting for the largest share of exports from the municipality, and key export products are made from fruits and vegetables. One of the best examples is the investment of the Austrian company Grunewald International which, through joint investment with a family-owned company founded Nikolic Podgorina Frucht in the field of fruit processing and production of fruit concentrates.

A Long Industrial Tradition P

araćin is located in central Serbia by the River Crnica. It is 156 kilometres from Belgrade via the international highway E-5 (Corridor 10), 130 kilometres from Bulgaria and 190 kilometres from the border with Romania. The city itself lies at the intersection of the most important international highways and Corridor 10, at the beginning of the international road E-761 to Zaječar and Bulgaria, and at the junction of the E-760 road towards Kruševac and Montenegro.

The main rail line towards northern Europe, Belgrade-Niš, also passes through Paraćin.

The municipality covers 542 square kilometres, of which 58.12% is agricultural land, 0.03% forest and 38.75% has other uses.

According to its geographical position, Paraćin forms part of the Great Morava city triad, together with Ćuprija and Jagodina.

The economy of Paraćin has a long industrial tradition of over 120 years and is renowned

contact Nenad Stevanović, Municipal President Karadjordjeva 78, 14253 Osečina Tel: +381-14-51-130 Fax: +381-14-51-158 Email: nenad.stevanovic@osecina.co.rs; soosecina@ptt.rs Website: www.osecina.com Languages spoken: Serbian and English

Paraćin

Paraćin has several industrial zones at very good locations and with more or less complete infrastructure, electricity, gas power and water 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 amount of space and ample resources for the development of eco-tourism, the exploitation of forest fruits, and the bottling of water.

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.

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contact Saša Paunović, Municipal President Tome Živanovića 10, 35250 Paraćin Tel: +381-356-30-07; Fax: +381-355-631-65 Email: opstina@paracin.rs Website: www.paracin.rs Languages spoken: English and Serbian

Pirot

A Fusion of Traditional and Contemporary When it comes to construction activities in the free zone, users are exempt from paying land development fees, and local administration fees and costs pertaining to issuing various documents

Vladan Vasić, President of the Municipality of Pirot: “The municipality’s Local Economic Development Office provides complete logistic support to potential investors.”

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he municipality of Pirot is located in the very centre of the Balkan area, halfway between Niš and Sofia, on the international road leading to the Middle East. Pirot is known for its favourable geo-strategic position and good road and railway links. There is the international road E-80, Corridor 10, the M-9 main road, and the electric railway track Niš-Pirot-Sofia (which is a branch of the circular railway track Budapest-Belgrade -Skopje-Athens, and the Ljubljana-ZagrebBelgrade-Skopje Athens track). Airports in Niš and Sofia are 70 kilometres from Pirot. The municipality’s population is close to 64,000 and it covers an area of 1,235 square kilometres. The municipality’s advantages are the following: a good geographic position, having a master spatial plan, an established geographic information system, an available workforce, greenfield and brownfield investment locations, the municipality having a certificate for providing a favourable business environment, the Stara Planina nature’s reserve, and its natural resources (water springs, forests, meadows and pastures). There are 433 companies and 1,311 entrepreneurs in Pirot.

Economy

contact Marija Đošić, Head of the Local Economic Development Office Srpskih Vladara 82 18300 Pirot Tel:+381-10-305-532; 305-542 Fax: +381-10-313-901 E-mail: ler@pirot.rs Website: www.pirot.rs Languages spoken: Serbian, English and French

The main economic branches here are the rubber processing industry, the textile industry and the food and chemical processing industry. The most successful companies are Tigar Tyres (2,300 employees), Tigar AD (2,023 employees) and Prvi Maj (1,500 employees). The municipality of Pirot is one of the few municipalities in Serbia that has its own local brands such Kačkavalj (a type of cheese) and the Pirot rug. In order to preserve the rug weaving tradition, the municipality has implemented a project called the ‘Establishment of the Rug Weaving Cooperative’, which resulted in hiring more weavers, higher output and relevant market validation. The biggest foreign investors here are Michelin Tyres, Hellenic, Eko Themann Group and Tuš.

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Industrial Zones

The Beg Bašča industrial zone is currently being worked on. Works are almost completed on 6.5 hectares of the land (out of total of 25 hectares).

The auction for leasing land here with available subsidies will take place in September 2010. In addition to this zone, there are several other available zones: Božurato (12.9 hectares, with 30% of the land available) and Sredorek and Barje Površina (29.6 hectares, with 70% of the land available).

There is also a company called Slobodna Zona AD that operates in Pirot which is disposing of 17 hectares of land with the relevant infrastructure in place. The municipality owns a stake in this company and this is one of the first public private partnerships in the country. Judging by the results, this is the most successful industrial zone in Serbia.

Special Incentives for Investors

In order to attract more investments in this area, the authorities are currently drafting an act regarding investment incentives in industrial zones which harmonises the previous act with the relevant acts of the Serbian government concerning land lease. When it comes to construction activities on the outskirts of the free zone, its users are exempt from paying land development fees, local administration fees and costs pertaining to issuing various documents, and the costs of issuing permits for being included in the infrastructure network. The municipality’s ‘Local Economic Development Office’ provides complete logistic support to potential investors.

Deadline for Obtaining Permits

According to the municipality of Pirot’s urban planning department, the procedure for issuing building permits, registering construction work and issuing operational permit for construction of industrial facility lasts at least 30 days, out of which the procedure in the local administration lasts between three to five days.

Požega

A Tax-free Zone is Under Preparation Incentives here include the speedy resolution of property-legal relations, prompt issuance of all necessary permits and benefits regarding the payment of municipal taxes

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he municipality of Pozega is located in the Zlatibor district in western Serbia, occupying an area of 426.5 square kilometres. Pozega is located 168 kilometres south of Belgrade, 21 kilometres from Uzice and 34 kilometres from Cacak. It is at a distance of 41 kilometres from the airport at Ponikve.

Pozega is located at the intersection of the main roads of the MP5 and MP21 (BelgradeUzice-Podgorica with its branch to Sarajevo and Valjevo-Pozega-IvanjicaSjenica), as well as on the intersection of planned highways E763 BelgradeSouthern Mediterranean and E761 PozegaVisegrad (as part of the road Sarajevo-PozegaSofia). After Belgrade, Pozega is the biggest railway crossroad on the railroad between Belgrade and Bar, with a branch to Stalac.

Visegrad. A water pipeline Ø 800mm and water pipeline Ø 100мм runs through the zone. There are two sewage collectors; a regional gas pipeline Ø 386мм also goes through the zone, with a main measurer and control terminal; there is a power station (400 kWh and 35 kWh) located 1300 metres from the zone, and two power lines (10 kWh) go through the zone. The zone is located adjacent to the railroad between Pozega and Cacak. The construction of an industrial railway, 600 metres from the railroad station Pozega is planned.

The zone has phone and cell phone coverage.

The existing railroad station has a customs department. The existing and the planned industrial zones are located within the area covered by the general urban plan, 1.2 -1.6 kilometres from the city centre. The construction of an industrial park is being co-financed from the national investment plan.

The recommendations for brownfield locations are: the lot of the old bakery with an area of around 36,700 square meters; the ‘Petar Lekovic’ barracks, which are planned for business and housing by the general regulation plan; a favourable location can also be found within the large Budimka company business complex.

There are two greenfield locations: one is part of the industrial-business zone with available lots which are privately owned, there are also lots owned by the municipality, but they are small and not adjacent to each other; the other is part of the detailed regulation plan of the industrial-business, tax-free zone in Pozega, where the first phase of realisation includes around 27 hectares for different business activities. The entire land in this zone is privately owned.

The main economic branches are the metal industry, wood processing, construction, textiles, food and agriculture

Economy The main economic branches are the metal industry, wood processing, construction, textiles, food and agriculture. Agricultural land occupies an area of 9500 hectares. The municipality is rich with limestone used for the production of construction materials (sand, lime), marble ‘plavi tok’ – with two deposits Kalenici and Tvrdici, quarries producing stone for road construction, clay for the production of construction materials.

There are large deposits of gravel and stone in this area. Pozega is abundant in high-quality drinking water (the water supply system called Rzav), as well as thermal mineral waters in the regions of Banja Roga and S.Dobrinja.

Industrial Zones The urban plan of the municipality of Pozega defines the area for industrial zones. The available space in the industrial area is 85 hectares.

The available area in the future tax-free industrial zone will be 210,000 square meters. The future tax-free zone is located adjacent to the main roads MP5 and MP21, and is 1400 metres from the future highway E764 Horgos-Pozega and 150 metres from the highway E761 Pozega-

For Investors Incentives which the city/municipality is offering are those of high-quality and reliable information, the speedy resolution of property-legal relations, prompt issuance of all necessary permits; and benefits regarding the payment of municipal taxes.

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Milovan Mićović, President of the Municipality : “There are two greenfield locations: one is part of the industrial-business zone with available lots which are privately owned.”

contact Goran Simović, Deputy President of the Municipality of Pozega Trg Slobode 9, 31210 Pozega Tel: +381-31-811-181 Fax: +381-31-811-151 Mobile. +381-69-89-77-851; +38165-55-000-95 Email: zamenik.predsednika@pozega.org.rs; simovic01@nadlanu.com

Petrovac na Mlavi

Hunting and Fishing Good possibilities for development and investment in Petrovac na Mlavi exist in the areas of forestry, raw minerals and coal

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contact Radiša Dragojević, Municipal President Srpskih Vladara 165, 12300 Petrovac na Mlavi Tel: +381-12-331-280 Fax: +381-12-331-283 Mob: +381-64-86-79-800 Email: info@petrovacnamlavi.rs Website: www.petrovacnamlavi.rs Languages spoken: Serbian and English

Požarevac

he municipality of Petrovac na Mlavi is located in the central part of the Mlava river basin, between Gornjacki canyon and Stiska plain (Stiska ravnica) in the north. It occupies an area of 655 square kilometres, and has 34 settlements with around 46,000 inhabitants. It is located on one of the most important routes in Branicevski district which connects Bor, Zagubica and Petrovac on one side, and Pozarevac and the highway between Belgrade and Nis on the other. Petrovac is located 110 kilometres from Belgrade, 37 kilometres from Pozarevac, 48 kilometres from Zagubica and 94 kilometres from Bor. The land in the municipality is highly favourable for the development of animal husbandry, farming and vegetable growing, which gives the potential of opening different types of processing plants.

Excellent Farming food industry is particularly well Opportunities The developed and industry flag bearers T

contact Miodrag Milosavljević, Mayor Drinska 2, 12000 Požarevac Tel: +381-12-539-601 Fax: +381-12-539-622 Email: mmilosavljevic@pozarevac.org.yu Website: www.pozarevac.rs Languages spoken: Serbian and English

Small business development in the municipality occurs on a high level, and employs over 56% of the total number of people who are in work in the municipality.

The leaders of economic development in the municipality belong to different areas of the economy including: furniture factory Javor, Mlavaplastika, leather industry IKOP, slaughterhouse October 8, dairy industry Homolje, Borac, a factory for vegetable and fruit processing which owns a mill, bakery and a cold storage facility, a pig farm, construction company Alpina, as well as agricultural cooperatives in the majority of settlements in the municipality.

Good potential for development and investment in the economy of Petrovac na Mlavi municipality exist in the area of forestry, raw minerals and coal, as well as possibilities for the development of hunting, fishing and spa tourism.

The Mlava River and other watercourses represent the potential which should direct the agricultural production towards the production of food raw material that can be processed on the spot or in plants located in the municipality.

he city and municipality of Požarevac is located in eastern Serbia’s Braničevo district, 80km from. It covers an area of 481 square kilometres and is comprised of 24 rural settlements and two urban towns.

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. Other noteworthy rail routes include the connection with Velika Plana-Smederevo and Požarevac-Kostolac.

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 56 / The Investors Guide - Serbia 2010 / 2011

in the municipality include Bambi, Žitostig, MIP, and Fruit Product 73.6% of the total area – of which arable fields account for 97.8%. Most of the land (99.3%) boasts fertile soil types. Agriculture, together with plant and animal rearing, is represented on 38,000 hectares of arable land. The most common crops are wheat, maize and sunflower.

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. Moreover, previous investigations have revealed the existence of three untapped oil and gas fields in the municipality: Maljurevac-Babušinac, BradaracMaljurevac and Ostrovo 1.

The food industry is particularly well developed and industry flag bearers in the municipality include Bambi, Žitostig, MIP, Fruit Product, et al.

Preševo

Great Economic Potential The municipality of Preševo has established a municipal service to assist potential investors and to reduce the time required for administrative tasks

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he municipality of Preševo is located in the extreme south of Serbia, in the Pčinja district. The region’s most important transport corridors run through Preševo’s territory, including pan-European Corridor 10 which connects north and south Serbia, the M-25.2 road, which connects Preševo to Kosovo and Priština Airport (75km), and the Belgrade-Niš-SkopjeThessalonica-Athens railway.

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

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.

Developed economic sectors in Preševo include metal processing, the construction industry, production of building materials, food pro-

duction, tobacco industry and tobacco production. The economy is dominated by private enterprise, with 95% of the municipality’s 500 companies being privately owned.

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 unrealised opportunities, such as agricultural co-operatives, crystal, tobacco processing factories, etc.

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

The municipality of Preševo has established a municipal service to assist potential investors and to reduce the time required for administrative tasks. The municipality has adopted its strategy for the development of Preševo for the period running from 2007 to 2015.

Full Support for Investors 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

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he town and municipality of Priboj is located in south-western Serbia’s Lim River valley, within the border triangle of Serbia, Montenegro and Bosnia and Herzegovina (Republika Srpska).

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 552 square kilometres. Arable land covers a third of the total area, while forestland takes up around 62%.

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 technolo-

gies, heavy industry and the chemicals industry.

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.

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.

The advantages of the municipality include an educated and affordable workforce and an excellent geographical position.

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

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.

The most important investors actively present in the municipality of Priboj are Swisslion Markets, Delta Holdings and Spy & Wellness.

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contact Ragmi Mustafa, President of the Municipality Marsala Tita 36, 17523 Preševo Tel. +381-17-669-137; 660-110 Fax: + 381-17-660-320 Email: kanc.ler-presevo@hotmail.com Languages spoken: Serbian, Albanian, English, German and Turkish

Priboj

contact Lazar Rvović, Municipal President 12. Januara 108, 1330 Priboj Tel: +381-33-445-648 Fax: +381-33-445-446 Email: opstinapb@ptt.rs www.priboj.org.rs Languages spoken: Serbian and English

Prijepolje

WELCOMING NEW INVESTORS

Investors who decide to invest in Prijepolje municipality will benefit from a reduction in income tax during the first two years, in addition to 50% lower utility taxes in the first three years of operations. The time limit for a building permit is 60 days Dragoljub Zindović, President of the Municipality of Prijepolje : “Prijepolje has a long history, influenced by various cultures and civilisations, making it a rich cultural and historical heritage centre.”

P

rijepolje municipality is located in the south-western part of Serbia at the junction of Serbia, Bosnia and Herzegovina and Montenegro. The main roads that pass through Prijepolje towards Montenegro are the M21 through Bjelo Polje and the M8 over Pljevlja, as well as the Belgrade-Bar railway. Belgrade airport is 300 kilometres away, and Sarajevo and Podgorica are 200 kilometres away. Prijepolje municipality therefore is situated in the middle of a market of more than 12.5 million customers.

Economy Prijepolje municipality is characterised predominantly by the manufacturing industry (textile industry), as well as the agricultural and food industry. It’s very rich pasture and arable land is conducive to the development of agriculture. In addition, optimal weather conditions with two nearby rivers, the Lim and Seljašnica, enable the construction of watering systems, which contribute to the development of agriculture. The most developed branches of agriculture in the municipality of Prijepolje are: the production of healthy organic food, animal production, fruit production and vegetable production.

the protection of the Serbian state.

Industrial Zone The Prijepolje industrial zone has a very good location, between the freight train station and the M21 main road which leads to Montenegro. Out of the entire surface area of 50 hectares, 25 hectares are regulated. There is also an industrial zone situated in an industrial park with 13 land parcels covering a total area of 2.5 hectares. The access roads and substations used to power the industrial energy zone were financed by the national investment plan. The realisation of equipment for the industrial zones is underway and works on the construction of a sewerage system and rainwater supply network, whose value amounts to 6,000,000 dinars, have been completed. Works on the construction of roads have also been completed, and that project has been done in cooperation with USAID-MEGA.

Prijepolje municipality is situated in the middle of a market of more than 12.5 million customers

contact Dragoljub Zindović, President of the Municipality Dragiša Rakonjac, Head of the Office of Economic Development Trg Bratstva i Jedinstva1, 31300 Prijepolje Tel. +381-33-711-389 Fax. +381-33-712 297 Email: oprij@ptt.rs www.opstinaprijepolje.rs Languages spoken: Serbian and English

Tourism The city offers a rich diversity of tourism opportunities, such as Mileseva monastery from the thirteenth century, the monasteries of Davidovic and Kumanica, and the monuments of Islamic culture - Ibrahim- Pasha Mosque in Sarampov (from the sixteenth century) and the clock tower in Vakuf (from the thirteenth century). The Prijepolje tourist offering, in addition to its cultural and historical heritage, is further enriched by areas of untouched nature including the gorges of Dubočica, Mileševa, Ticije Polje, Kamena Gora I Jabuka, and the waterfall Sopotnice, which have been declared monuments of nature and are under

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Incentives for Investors Investors who decide to invest in Prijepolje municipality will benefit from a reduction in income tax during the first two years, in addition to 50% lower utility taxes in the first three years of operations. The time limit for a building permit is 60 days.

Current Foreign Partners The Swiss company “EMILIO Stecher AG”, which is engaged in importing, refining and the installation of granite and marble, was the first foreign investor in the municipality of Prijepolje.

It was a greenfield site on the open operation employing 50 workers. According to the announcements of “EMILIO Stecher AG” management, it is expecting further expansion of business and new employment

Prokuplje

Ready to Attract Investors All necessary permits can be obtained in just two weeks, dependent on the level and type of investment

T

he municipality of Prokuplje covers an area of 759 square kilometres in southern Serbia’s Toplica county. Prokuplje’s proximity to the pan-European Corridor 10 and good transport connections also add to its attractiveness.

Apart from the metal, non-metal 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. There are a number of small and mediumsized enterprises (SME) in the municipality of Prokuplje. The greatest number of small companies operates in the field of trade, mining, financial and other services.

The advantages of the municipality of Prokuplje in terms of the development of the

SME sector include the existence of production facilities, the availability of a qualified workforce and the willingness of the municipality to assist in SME development through an 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 boasts three locations for investors, though they are yet to be equipped with appropriate infrastructure. These sites are: Pojate Northern Zone; Berilje - Western Zone; Solun Central Zone.

All necessary permits can be obtained in just two weeks, dependent on the level and type of investment.

Micro and Small Enterprises The municipality of Ražanj has 16,926 hectares of agricultural land, which represents 59% of the municipality’s total surface area

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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. The municipality is part of the Nišavski district and covers an area of 289 square kilometres.

The pan-European Corridor 10 (BelgradeNiš-Thessalonica-Athens) passes through the municipality. The municipality has 23 villages/ hamlets and its central small town of Ražanj is 55 kilometres from Niš toward Belgrade.

Most companies that operate in the municipality are micro-enterprises (one to five employees), with only a few companies in the ‘small’ range of five to 50 employees. The municipali-

ty 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 the non-ferrous metal foundry 14th October, producers of metal constructions Metaloprerada and Gerber-Export, as well as dairy company 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 district.

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 characterised by a large proportion of arable land.

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contact Milan Arsović, President of the Municipality Nikodije Stojanović 2, 18400 Prokuplje Tel: +381-27- 324-040 Email: info@prokuplje.org.rs Website: www.prokuplje.org.rs Languages spoken: Serbian and English

Ražanj

contact Dobrica Stojković, Municipal President SO Ražanj, 37215 Ražanj Tel: +381-37-841-217; Fax: +381-37-841-225 Email: opstinarazanj@gmail.com Website: www.razanj.org Language spoken: English and Serbian

Raška

A Rich Tourist Offering T

Radenko Cvetić, President of the Municipality of Raška: “The main tourist potentials of the municipality of Raska are the Kopaonik and Golija Mountains, Josanica Spa (Jošanička Banja), and the River Ibar.”

he municipality of Raska is located in the south-western part of Serbia, and includes the central part of the Ibar valley, western parts of Kopaonik and eastern slopes of Golija. The municipality has good traffic connections: the railroad line Belgrade-Kraljevo-Raska- Kosovo Polje-Skoplje and the Ibar highway (Ibarska magistrala) Belgrade-Kraljevo-Raska-PristinaSkoplje pass through the Ibar valley. Raska is 252 km from Belgrade, and the closest airport is 160 km away in Nis. The municipality of Raska occupies the area of 670 square kilometres. The municipality has 26,981 inhabitants.

Economy The leading branches of the economy are tourism, agriculture, industry and mining. According to data from 2008, there are 154 companies registered in Raska. 139 are small, 14 are medium and one company is large. The largest number of companies work in the processing industry (33.1%), followed by trade and agriculture, water management and forestry (31.5%) and stone and ore mining. In the processing industry, 21.4% of companies work in wood processing, 14.2% in food processing and 11.9% in the metal industry. The need to further improve the technology of processing by introducing certified quality systems is evident. Furthermore, strengthening of the raw material base is a precondition for production, and thus, significant support to primary agricultural production – the creation of purchase centres, warehouses with coolers and driers - is necessary.

In addition to the food industry, agriculture represents a sector which, bearing in mind the natural characteristics and structure of the population, can represent strong potential and initial stimulus for progressive economic development in the municipality of Raska. Agriculture is primarily characterized by animal husbandry, fruit-growing and beekeeping, with production ranging from extensive to semi-intensive.

About 47.1% of the total area of the municipality of Raska is agricultural land. There are185.7 hectares of land intended for economic activities - the general urban plan for Raska specifies

The municipality envisages itself as a modern tourism municipality with its preserved environment, and cultural and historical heritage 68 hectares, the general urban plan for Baljevac specifies 110 hectares and the general urban plan for Josanicka Banja specifies 7.7 hectares.

Tourism The main tourist potentials of the municipality of Raska are the Kopaonik and Golija mountains, Josanica Spa (Josanicka Banja), the River Ibar, natural rarities and the rich cultural and historical heritage. The rich tourist offering makes the municipality of Raska one of the most attractive tourist destinations in Serbia, both for domestic, as well as for foreign tourists. Kopaonik is known as ‘the mountain of sun’, because of a large number of sunny days experienced during the year. The sub-alpine climate, winter temperatures which are not too low, and around 160 days of snow-cover per year create highly favourable conditions for the intensive development of winter tourism. Located in its shadow, in the Valley of Josanica River, at the altitude of 550 meters, is the Josanica Spa, with five mineral water springs which are among the hottest in our country. These springs are considered very helpful in curing rheumatic illnesses. Golija is one of the most beautiful mountains in Serbia, with large wood-covered areas. It is shaped like a letter ‘S’ and is 32 kilometres in length.

MAB/UNESCO have declared it as the ‘GolijaStudenica’ biosphere reservation. The monastery of Gradac from the 13th century, the monastery of Stara Pavlica from the period before the rule of the Nemanjic dynasty, the monastery of Nova Pavlica from the second half of the 14th century and the monastery of Koncul from the 14th century stand out among the exceptional cultural and historical heritage of the municipality of Raska. The most important festivals and events which attract visitors to this area are the Raska Spiritual Festival (Raske Duhovne Svecanosti), Days of Queen Jelena (Dani Kraljice Jelene), and Rafting Without Borders (Spust Bez Granica). Investors can receive all necessary permits and consents within the prescribed legal deadline.

The municipality of Raska is located in the south-western part of Serbia

contact Radenko Cvetić, President of the Municipality of Raska Predraga Vilimonovića 1, 36350 Raška Tel: +381-36-736-281 Fax : +381-36-736-204 Email: radenko.cvetic@raska.org.rs ler@raska.org.rs Website: www.raska.org.rs Languages spoken: Serbian and English

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Rača

Attractive to Car Part Producers On the basis that the municipality is a mostly agricultural area, there is potential for producing health foods and the processing of agricultural products

R

aca municipality is one of the seven municipalities in the Sumadija district. It is situated in the eastern part of Sumadija and includes the basin of the middle and upper streams of the Raca River. The northern part of the district, namely Raca and Jasenica, are also part of municipality, and offer various natural and economic possibilities. Raca municipality has a favourable geographical position despite not being situated on any international roads. In the 216 square kilometres of its territory, in addition to the town of Raca itself, there are 17 other villages, 16 local communities and four local offices.

Modern roads also contribute to the favourable geographical position of Raca municipality. Sumadija’s modern tarmac main road: Markovac-Raca-Natalinci-Topola-ArandjelovacLazarevac passes through its territory, which connects the Belgrade-Nis motorway to the east with the Ibar main road to the west. Existing roads connect Raca municipality with Kragujevac (32 km), Smederevska Palanka (19 km), Topola (29 km), Arandjelovac (45 km), Mladenovac (54 km), Markovac (10 km), Belgrade (100 km via motorway) and other places.

wheat, plants for industry, vegetables and fodder crops. Farming mostly includes cattle breeding and represents the fodder output for cattle breeding. Considering the fact that Raca municipality is mostly agricultural, there is the potential for producing health foods and the processing of agricultural products.

Industrial Zones There are two industrial zones in Raca municipality according to the Raca 2010 urbanisation plans: Industrial Zone I is situated in the south-west part of the town and is connected to the M4 road that leads from Raca to Topola.

This zone covers 23 hectares, from which somewhat more than 13 hectares are already used.

Industrial Zone II is situated in the southern part of the town, is connected with Vojvoda Pavle Cukic Street, and covers nine hectares, from which somewhat more than two hectares are being used. The most significant investor is Yura Company, which purchased the former Zastava Elektro Factory and currently employs 450 people with plans to employ 1200 people by the end of 2010. Considering that Fiat started its operations in the regional centre of Kragujevac, people from Raca municipality believe that it is necessary to attract investors who will invest in the production of car parts.

Dragana živanović, President of the Municipality: “One of the benefits is a tax release for companies during their first year of business.”

The most significant investor is Yura Company that employs 450 people

Economy There are 46 companies in Raca municipality.

Companies are divided into: agriculture, forestry and water industry (10 companies) i.e. 41.3%; processing industry (6 companies) i.e. 13.0%; retail and wholesale, repairs (11 companies) i.e.

21.7%; and other sectors (19 companies) i.e.

23.9%. Agriculture in Raca municipality plays a very important role in its overall economy. It is the leading industry by volume of production, as well as employment of the active population.

Farming is the basic agricultural sector in the municipality and it includes the production of

Investor Benefits Raca municipality is in the process of enacting decisions that will release potential investors from paying fees for regulating construction lots. Another benefit is that of a tax release for companies during their first year of business.

The timeframe in which investors can acquire necessary permits is two to three months.

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contact Dragana Prokić, Head of the Urbanism and Construction Department Tel: +381-34-751-796 Cell: +381-64-808-40-21 E-mail: dragana.prokic@raca.rs Website: www.raca.rs Languages spoken: English and Serbian

Rekovac

The Municipality in

Central Serbia contact Dr Dragan Prodanović, Municipal President Svetozar Markovic 2, 35260 Rekovac Tel: +381-35-711-004 Fax: +381-35-711-196 E-mail: predsednikrekovac@ gmail.com; sorekovac@gmail. com Website: www.rekovac.org.rs Languages spoken: Serbian and English

Svrljig

The agricultural sector contributes the most to the local GDP, with branches such as fruit farming, viticulture, livestock breeding, crop farming and landscape gardening

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he municipality of Rekovac is located in central Serbia, in southeast Sumadija.

Rekovac covers an area of 366 square metres, which represents 13.95% of the total territory of Pomoravlje county. The municipality comprises 32 settlements.

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 kilometres, of which 120 kilo-

metres 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 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 kilograms per hectare.

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 locations including the monastery Kalenić.

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

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contact Milija Miletić, Municipal President Radetova 31, 18360 Svrljig Tel: +381-63-416-996 Fax: +381-18-821-178 Email: predsednik@svrljig.rs Website: www.svrljig.rs Languages spoken: Serbian and English

vrljig is located in central Serbia, 25 kilometres north-east 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. Svrljig is about 250 kilometres from Belgrade and lies along the main road to Zaječar, Negotin and Bor. It is situated in a valley between the ranges of the nearby Svrljig mountains, which is separated by the river Svrljig Timok. Highland areas cover about 70% of the territory of the municipality.

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.

The municipality of Svrljig adopted a de62 / The Investors Guide - Serbia 2010 / 2011

tailed 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 investment capital.

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

Svrljig is counting on the development of rural and hunting tourism, with its very beautiful natural conditions, and a large area covered by forests and mountains. The municipality of Svrljig is extremely rich in natural resources, but a lack of manufacturing capacity has resulted in low national income in this area.

SMEDEREVO

Centre of Steel For 16 months Smederevo has been working on the realisation of the largest investment in Serbia, construction of a refinery in Smederevo Smederevo is a city in the north-east of Serbia, in the Podunavlje district. It is situated on the banks of the Danube is 46 kilometres away from Belgrade. The basic potential of the city of Smederevo is its extremely good geographic and traffic position between the two European corridors - continental Corridor 10 (motorway) and the Danube 7 (waterway). Smederevo is the regional centre and it is situated on the connecting point between the two priority planned belts of intensive development (Sava-Danube and DanubeVelika Morava). There is also a plan to profile it as a port, as well as a multi-modal traffic knot.

Industrial Zones and Industrial Parks The U.S. Steel industrial zone is located seven kilometres to the south-east of the city, and it is also the most significant position of development of the city. It is linked with the production of raw iron and steel - a segment of black metallurgy. The zone covers an area of around 300 hectares, and has high techno-economic values.

It has its own source of drinking water, waste water that is evacuated via a collector to the Ralja River, a developed power line network, a high level of transport of incoming and departing cargo (a railway station is situated within the zone) and a significant position in the production system linking the country, and region.

The production of industrial and medical gases also takes place at the location at MESSER Tehnogas Company.

Industrial Zone West of the Centre - The traditional zone of the old ironworks, on 21 hectares, also has a multi-structural character and a high level of techno-economic characteristics. It used to be an important agglomerative element in the spatial structure of the city in the starting phases of development, but in time it has become a bottleneck of development in permanent conflict with the surrounding areas and has become an obstacle to the more comprehensive and more appropriate development of banks of Danube River. That is why it is necessary to change its production-in-

dustry function towards tourism and culture by forming different models of cultural projects.

Industrial Zone in Godominsko Polje – This zone is located to the north-east of the city and it is divided into several sub-zones. The existing industrial zone covers the area of 101.3 hectares and the majority of companies are located here. Salinacki Put sub-zone covers 15 hectares and the area is currently being divided to lots, which would, with infrastructure and traffic connections, represent a significant potential with a basic orientation towards development of small and mid-sized companies. The sub-zone located by the main road of the industrial zone has a multipurpose character and it covers the area of 36.86 hectares.

Predrag Umičević, Mayor of Smederevo: “The realisation of the project of constructing infrastructure for the new industrial zone of 84 hectares is in progress.”

New Industrial Zone and Industrial Park A project involving constructing infrastructure for the new industrial zone (84 hectares) is being worked on. The plan of detailed regulation has been enacted and finding solutions to ownership and other project issues is being advanced with the support of the National Investment Plan.

Investors Investors to date include: American US Steel Company, German MESSER-Tehnogas Company, Remar Granpet Zelvoz – the largest Romanian investment in Serbia (reconstruction of railway cars), Austrian company HAWLE VALMAN that produces waterworks armature, Belgian company METECH that produces all types of tin, English company Laurence Walter that produces airplane parts, and English company Mycom that packs mineral compost. For 16 months Smederevo has been working on the realisation of the largest investment in Serbia - construction of a refinery in Smederevo. The memorandum has been signed and a spatial plan for construction of the refinery is finished. The investment will cost over 250 million US dollars and it will secure 500 new workplaces.

The plan is to profile Smederevo as a port and as a multi-modal traffic knot

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contact Zdravka Kovačević Vasić, Head of Local Economic Development Department Omladinska 1, Smederevo, 11 300 Tel: +381-26-221-724 ext: 1610 Fax: +381-26-223-354 Cell: +381-64-844-91-91 E-mail: zdravka.kovacevicvasic@ smederevo.org.rs Website: www.smederevo.org.rs Languages spoken: English and Serbian

Sjenica

Opportunities in Rural Tourism The municipality’s economy is dominated by the processing industry (textiles and textile products, meat and meat products, milk and dairy products) and agriculture contact Muriz Turković, Municipal President Kralja Petra I, 36310 Sjenica Tel: +381-20-741-278 Fax: +381-20-741-288 Email: sosjenic@verat.net Website: www.opstinasjenica.co.rs Languages spoken: Serbian and German

Smederevska palanka

The municipality of Sjenica is situated in the Zlatibor district of Serbia, in the traditional region of Sandžak. Sjenica municipality covers an area of 1,059 square kilometres - making it the largest of the Zlatibor district’s 10 municipalities.

The municipality’s most important road is the Raška-Novi Pazar-Sjenica-Nova Varoš main road, which links the Ibarska highway to the main Zlatibor road.

The municipality’s economy is dominated by the processing industry (textiles and textile products, meat and meat products, milk and dairy products) and agriculture.

There is great potential for the development

Potential for Tourism Development The two largest factories are ‘Gosa’ and ‘Palanacki Kiseljak’, which have become symbols of the town

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contact Nenad Milojičić, President of the Municipality Vuk Karadžić 25, 11420 Smederevska Palanka Tel: +381-26-321-001 Fax: +381-26-321-086 Email: sekretar@verat.net Website: www.smed-palanka.rs Languages spoken: Serbian and English

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 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.

An average water temperature of 26º C and the fact the municipality has vast forests with game animals, provides opportunities for the development of hunting tourism.

he municipality of Smederevska Palanka is located at the confluence of the rivers of Kubršnice and Jasenica, and it is one of the oldest settlements in the region. It has 17 rural and four urban settlements, covering an area of 422 square kilometres.

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

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

Smederevska Palanka has 65 registered in64 / The Investors Guide - Serbia 2010 / 2011

dustrial companies with approximately 7,900 employees. Today, the two largest factories are ‘Gosa’ and ‘Palanacki Kiseljak’, which have become symbols of the town.

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. Stockbreeding, however, has achieved outstanding results.

Potential tourism development could be linked to the local mineral-water spring, which is considered 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.

Sokobanja

A Favourable Climate Sokobanja is one of the oldest tourist destinations in Serbia, with abundant natural resources, scenic countryside, a healthy environment, and a rich cultural and historical heritage

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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 (Knjaževac-SokobanjaAleksinac) and the R-120 road (BoljevacSokobanja-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).

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

The existing municipality’s general spatial plan envisages a site comprising three individual zones: the working zone, the industry zone and the arts and crafts zone.

Land plots that are available to investors include: 15.1 hectares at the Podina site ideal for sports and recreational facilities; there are 9.3 hectares of land suitable for residential and business construction. There is a location stretching across 18.8 hectares in the vicinity of the forest, making it suitable for tourist facilities.

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.

Part of the

Vlasinska Plateau Priorities: preparing development, planning, urban and technical documentation for the purpose of economic development, and organising profitable agricultural production...

S

urdulica municipality is located in the Pčinjski district of south-eastern Serbia, along the Mesurićko area 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. It is located within the network of main roads in Serbia.

On the western side, via Vladičin Han, Surdulica is able to 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).

The largest share in structure of realised in-

come is in the industries of electricity and water production (65.5%), and trade, tourism and catering (13.7%), while a very small part is made up of agriculture, forestry and fisheries (10.3%). In total, in the municipality has 120 registered business entities engaged in activities of the primary and secondary sectors (agriculture, forestry, fisheries, mining, manufacturing, power generation).

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.

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contact Dimitrije Lukić, President of the Municipality Marija Žikić, Head of the Department of Commercial and Economic Development Svetog Save 23 18230 Sokobanja Tel: +381-18-830-030 Fax: +381-18-830-253 E-mail: invest@opstinasokobanja.com Website: www.opstinasokobanja.com Languages spoken: Serbian and English

Surdulica

contact Novica Tončev, Municipal President Kralja Petra I 1, 17530 Surdulica Tel: +381-17-815- 041 Fax: +381-17-815- 270 Email: info@surdulica.org Website: www.surdulica.org Languages spoken: Serbian and English

šabac

Dynamic Economic Development Subdivision of the industrial zone has not been carried out, which gives the investor the option to choose the size and position of a land parcel, in accordance with his requirements

Miloš Milošević, Mayor of šabac: “Support of the local selfgovernment and the simplicity of procedures represent the power of the city’s economical development.”

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he city of Sabac, with a population of 123,000 and an area of 795 square kilometers, is located in North-Western Serbia, on the shores of the international river Sava, with access to the Drina River; it represents the administrative and economic centre of the Macva district. The main roads to intersect the city area are: the M19 (BelgradeSabac-Loznica-Mali Zvornik) and the M21 (Novi Sad-Rumahighway-Sabac-ValjevoUzice). Two railroad lines pass through the city: Sabac-Corridor 10 and Sabac-Zvornik (Bosnia and Herzegovina).

Water traffic utilises the Sava River, with access to the Danube via Corridor 7. The distance of the city from Corridor 10 is 20 km, and the distance from Surcin airport is 60 km.

The leaseholder is under the obligation to bring the land to its operational purpose within five years

Economy

contact Mirjana Mecić-Marinković, Manager of the Office for Local Economic Development Tel: +381-15-346-994 Mobile: +381-64-877-17-70 Email: mirjana.mecic@sabac.org Srđan Stanisavljević, Associate at the Office for Local Economic Development Tel: +381-15-3364-161 Mobile: +381-64-877-17-52 Email: srdjan.stanisavljevic@sabac.org Address: Gospodar Jevremova 6, 15000 Šabac Web: www.sabac.org Languages spoken: Serbian and English

of Sabac. Subdivision of the zone has not been carried out, which gives the investor the option to choose the size and position of a land parcel, in accordance with his requirements. The city has the obligation to supply full infrastructure on this land including sewage, atmospheric sewage, city water supply, distributive gas network, cable sewage, high voltage electricity and an asphalt road to each particular land parcel, within deadlines defined by a contract. The leaseholder is under the obligation to develop the land to its operational purpose within five years. Local parliament passed a Detailed Regulation Plan for the Northwest industrial zone, thus enabling a more intensive economic development policy for the city of Sabac. The Detailed Regulation Plan includes routes for the construction of industrial railroad lines to the Northwest industrial zone. Thus, potential investors will have at their disposal, in addition to land and water transportation, railroad transportation as well. Until the construction of the future highway, which is expected to begin soon, the connection between the industrial zone and the highway running Belgrade-Zagreb is the regional road between the industrial zone and Sremska Mitrovica. On this road, the distance between the industrial zone and the highway is 24 km.

Positive trends in the economy are, among other things, the results of traditionally developed entrepreneurship accompanied by a trading heritage, a long tradition in industrial production, a large number of successfully privatised companies, as well as the presence of foreign investors. Dominant industrial branches in the city’s economy include the chemical industry, pharmaceutical industry, metal processing, the machine industry, food industry, construction and building material industry, timber processing industry and upholstery industry, textile industry and graphical industry. There are around 4500 economic areas and 3000 entrepreneurs.

Private property is the dominant form of ownership. Financial services are offered by 30 domestic and foreign banks and six insurance companies. The most important foreign investors are US Steel, Alliance One Tobacco, Interex, Stada, Alas International, Intercell, and Mercator.

Industrial Zone

The Northwest industrial zone is located on 921 hectares, 600 of which are owned by the city 66 / The Investors Guide - Serbia 2010 / 2011

Tourism

Cultural, athletic and touristic events, festivals, celebrations and concerts are organised in Sabac during the entire year, and amongst the most important are the Sabac Summer Festival, October Salon, the International Swimming Marathon, horse races, Festival “Ruze Lipolista”, the Sabac Fair, Civijada. These events attract a large number of tourists to the city and its surrounding area. In addition to the events, Sabac has a strong potential for developing other forms of tourism, such as rural tourism, hunting, and transit tourism.

Svilajnac

A Trade and afts Centre Up-to-date administration provides and issues all necessary permits for the construction of production facilities within 30 days

S

vilajnac is located around 100 kilometres in a south-easterly direction from Belgrade, in the Pomoravlje district. A seven kilometre long regional road connects Svilajnac with Corridor 10, which represents an exceptional strategic location. There are around 25,511 inhabitants living in the municipality. It has 22 settlements, occupying an area of 326 square kilometres, at an altitude between 100 and 389 metres. The rivers of Resava and Velika Morava pass through the territory of this municipality. Alluvial soil, which is perfect for the production of crops, is predominant.

Economy Svilajnac has always been known as a trade and crafts centre, and until recently, was known as a very important farming and animal husbandry area. Today, it is a municipal centre, located in the fertile Resava and Morava valley, which, due to increasingly important foreign and domestic investments, aims to become an important industrial city. The industrial zone in Veliko Polje, in the municipality of Svilajnac, will soon become the headquarters of three new factories: the German automobile parts production company Raum, the Dutch-Swiss Tri Stan fresh produce company and the meat processing plant Svimes, owned by Globus. In October, the Japanese company Panasonic will begin operations in Svilajnac, from a rented industrial hall, and should start the construction of its own factory by May 2012. In terms of size, this factory will be the eighth largest in the world and the largest in Europe. In Svilajnac, Panasonic will produce led diodes, illumination equipment and electronics. This merchandise will be then exported to Russia and the European Union states.

A domestic investor, Nesa Komerc, is carrying out the construction of a new production hall where pipe radiators, mostly intended for the foreign market, will be produced.

opened, which will also provide space for smaller companies. The new industrial zone is fully equipped in terms of infrastructure, thus the first investors can be expected very soon.

Up-to-date administration provides and issues all necessary permits for the construction of production facilities within 30 days, following an urgent procedure. It was, and still is, one of the advantages local authorities have in attracting investors.

The Japanese company Panasonic, German automobile part production company Reum, Dutch-Swiss company Tri Stan fresh produce, the Israeli spice production company Green Only, and Belgrade company Globus (which is carrying out the construction of a meat processing plant), represent only some of the important investors during the last several years.

Tourism Svilajnac will be the first city in Serbia, as well as in the Balkans, where a Nature Centre will be constructed, with the main exhibits being eight dinosaur replicas.

Over an area of around 3,000 square meters, in addition to workshops and an area for scientific research, there will be the exhibition area with dinosaur replicas, original fossils and a display of the pre-historic animal-world, as well as a 3D movie theatre showing science and documentary movies. The construction should start in the autumn and be finalised by the end of 2012.

Representatives of the local authorities have announced that revenue made from the sale of the exhibition tickets will be invested into scientific and research programs in the field of geology, climatology, ecology and palaeontology.

The municipality (who initiated the project themselves), expect that the centre will be visited by around 120,000 people annually, due to the fact it is on Corridor 10, and is in the tourist region of central Serbia, where Resava cave and Manasija monastery are located.

Dr Gorica DimčićTasić, President of the Municipality of Svilajnac: “Svilajnac has always been known as a trade and crafts centre, and until recently, was known as a very important farming and animal husbandry area.”

The new industrial zone is fully equipped in terms of infrastructure

Industrial Zones The Veliko Polje industrial zone has no available lots due to the arrival of Panasonic. Bearing in mind the undiminished interest of investors, another similar 23 hectare zone will soon be

The construction of an open-field science amusement park with life-sized dinosaur replicas, as well as volcano models, is planned for the future. The goal of the centre is to educate children.

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contact Gorica Dimčić-Tasić, President of the Municipality Svetog Save 102, 35210 Svilajnac Tel: +381-35-312-010 Email: predsednik@svilajnac.rs, soinf@svilajnac.rs Website: www.svilajnac.rs Languages spoken: English and Serbian

Trstenik

Four Industrial Zones The trading company ‘Zapadna Morava’ is now owned by the municipality and the entire 7.5 hectare area is ideal for the development of an industrial zone

T Stevan đaković, President of the Municipality: “In addition to the natural beauty and historical heritage of the area, strong investments in tourism are necessary to ensure a higher number of tourists.”

he municipality of Trstenik is located in the central part of Serbia, around 200 kilometres south of Belgrade and borders the following municipalities: Kraljevo (in the west), Vrnjacka Banja (in the southwest), Aleksandrovac (in the south and southeast), Krusevac (in the east), Rekovac (in the north) and Varvarin (in the northeast). Trstenik is the economic, administrative and cultural centre of the municipality. The municipality occupies an area of 448 square kilometres. The Zapadna Morava river flows through the city. Most settlements in the municipality are located in the fertile valley of the river. The total length of roads in the territory of the municipality of Trstenik is 266 kilometres, and of this 193 kilometres are covered with modern roadway. Main roads cover 19 kilometres, regional roads 70 kilometres and local roads 168 kilometres. The municipality has an airport where tourist planes with up to 18 seats can land. Vrnjacka Spa (Vrnjacka Banja), the centre of Serbian continental tourism, is located 10 kilometres from Trstenik.

which clearly defines strategic courses of development in all aspects of citizens’ life.

Agriculture Fertile land, a favourable climate and a long tradition of agricultural production make agriculture an important economic branch for the municipality of Trstenik. The land is an important natural treasure of this municipality. About 63.1 percent of land is agricultural land - arable land, gardens, vineyards, orchards, pastures and meadows cover most of the territory. A large number of households participate in this type of production, especially after the privatisation of stateowned companies, when part of the active working population returned to this activity. The production of vine planting and vineyards was preserved, while the production of vegetables in open greenhouses, production of berry fruit and flowers replaced traditional farming cultures and animal husbandry.

Fertile land, a favourable climate and a long tradition of agricultural production

Economy

contact DragišA Trošić, Manager of the Department of Economy and Sustainable Development Knjeginje Milice bb, 37240 Trstenik, Tel: +381-37-714-333 Fax: +381-37-712-530 Mobile. +381-63-102-50-30 Languages spoken: Serbian and English

‘Zapadna Morava’, which was in the past a large trading company, is now owned by the municipality, and the entire 7.5 hectare area including infrastructure is ideal for the development of an industrial zone. Once-powerful state-owned companies have left behind 320,000 square meters of commercial property. The general urban plan and the strategy of sustainable development for the Trstenik municipality is defined over four industrial zones.

Two of these zones are equipped with infrastructure. Trstenik is a municipality with a large number of small and medium companies and a long tradition of entrepreneurship in the sector of industry, trade and crafts. Despite a large number of entrepreneurial shops and registered agricultural households, the productivity of small business is low. In 2009, the municipality of Trstenik adopted a strategy of sustainable development in the municipality, 68 / The Investors Guide - Serbia 2010 / 2011

Tourism The proximity of Vrnjacka Banja; the beautiful landscape in the hilly part of the municipality; the Zapadna Morava river (which flows 100 meters from Trstenik city centre); two beautiful monasteries, Ljubostinja and Veluce; historical and archaeological localities, remain completely unused. In addition to the natural beauty and historical heritage of the area, concrete investments in this sector are necessary to ensure a higher number of tourists and increase their expenditure. This sector, with much room for improvement, can have a positive influence on the improvement of other sectors, primarily the small and medium business sector and agriculture.

For Investors Depending on the type of activity and necessary documentation (feasibility study, permits issued by state bodies), permits are issued within two to four months.

Trgovište

A Clean Environment The unique rock formation known as Ðavolja Varoš (Devil’s Town) is located near the town of Trgovište

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he municipality of Trgovište is situated in the extreme south-east of Serbia. It covers an area of 370 square kilometres along the border with Macedonia, while also bordering other municipalities of Bosilegrad, Vranje and Bujanovac. The municipality is connected to Corridor 10 and the regional roads R-125 and R-238.

The further development of Trgovište is based on the vast expanses of clean environment in the area. 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 such as the production of pallets, floor coverings (beech and oak), briquettes and laminates.

The council is developing fruit growing, vegetable and potato production, 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 development of tourism also relies on local nature including the river Pčinja and its tributaries, the mountain landscape (flora, fauna, and villages), a favourable climate and unspoilt nature. The unique rock formation known as Ðavolja Varoš (Devil’s Town) is located near the town of Trgovište.

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.

“Karađorđe’s Town” The local authorities have various incentives for investors, such as low land development fees

T

he municipality of Topola is situated in the centre of Serbia at the crossroads of important traffic routes. Topola is only 80 kilometres south of Belgrade, while Nis in the south-east is 220 kilometres away and Subotica in the north is 280 kilometres away. The total area of the municipality of Topola is 365 square kilometres and it has 25,292 inhabitants.

All roads that pass through the municipality are important transportation routes. These include the regional roads of Belgrade-MladenovacTopola-Kragujevac-Kraljevo; Topola-GornjiMilanovac and Topola-Aranđelovac.

In terms of tourist attractions, Topola has the Oplenac Foundation and also Karađorđe’s Town, both located in downtown Topola. Park Oplenac is a monument of nature which has benefited from the protection of the state. With its abun-

dance of flora (pine, oak, linden, maple), it represents air spa.

The main economic 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 and vegetable processing facilities. The hilly terrains of this area, tilted to the south-west with a moderate climate, have been used for growing grapevines since ancient times.

The local authorities have various incentives for investors, such as low land development fees.

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.

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contact Kralj Petar I Karađorđević 4, 17525 Trgovište Tel / Fax: +381-17-452-207 Mob. +381-64-8173-403; +381-63-704-2648 Email: predopstrgov@ptt.rs Languages spoken: Serbian and English

Topola

contact Dragan Jovanović, President of the Municipality Zora Nedović, Coordinator, Local Economic Development Office Bulevar Kralja Aleksandra I 9,34310, Topola Tel: +381-34-811-273 Fax: +381-34-811-771 Mobile: +381-63-847-6338 Email: ler@topola.com www.topola.com Languages spoken: Serbian, English and Russian

Tutin

Free Consultancy Services The branches most suitable for investments are organic food production, gathering and processing medicinal herbs and forest fruits, and producing electricity from renewable energy sources contact Bajro Gegić, President of the Municipality Husein-bega Gradaščevića 7, 36320 Tutin Tel: +381-20-812-025 Fax: +381-20-811-035 Email: razvojtutin@yahoo.com Languages spoken: Serbian, English and Russian

T

he municipality of Tutin is located in the Sandžak district of southwest Serbia. It stretches across 741 square kilometres and includes 99 towns, villages and hamlets. Tutin is located more than 300 kilometres from Belgrade.

The M-2 (Adriatic motorway) and M-22 (Ibarska highway) both pass through the municipality.

The entire area has a mountainous character.

The richness of pastures in the area of Gornji and Donji Pešter and forests in Mokra Gora, have contributed to the population of this area, primarily engaged in animal husbandry and the processing of wood.

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 yet. 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 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 the documents necessary to commence building works within two months.

The biggest investors in Tutin to date have been Dallas, Elan, Jogi, Jasen, 23. Novembar, Holcmann, Braća Dacić, the Zornić Dairy, Hanes and Hydrowind.

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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 by: Tel. +381 11 308 99 88; Fax. +381 11 308 99 77 email: office@cma.rs

70 / The Investors Guide - Serbia 2010 / 2011

UB

Agriculture and Mining The construction industry is very important here and this sector has a long tradition in the municipality. There are also abundant raw materials for the production of construction materials such as stone, quartz and white clay

T

he municipality of Ub is the second biggest municipality in the Kolubara region in north-western Serbia and it covers an area of 456 square kilometres. The municipality is 50 kilometres from Belgrade, and it borders the municipalities of Vladimirci and Obrenovac in the north and north-east respectively, the municipality of Lajkovac in the east and south-east, the municipality of Valjevo in the south and south-west and the municipality of Koceljeva in the west.

Ub is also well-connected to neighbouring municipalities via a network of regional roads such as the M-4, M-21, M-22 and M-19, which also link the municipality to other Serbian towns.

close down, and the Tamnava-West Field is exhausted, which is all expected to happen after 2020. All of this will be done in accordance with the needs of thermo-electric power plants Nikola Tesla A and B, Kolubara A and Kolubara B. The Zvizdar field is also quite under-utilised, with a feasibility study for this field currently being written. Aside from agriculture and mining, the construction industry is very important here and this sector has a long tradition in the municipality. There are also abundant raw materials for the production of construction materials such as stone, quartz and white clay.

There is an industrial railway track that runs through the municipality that is suitable only for cargo transport. Belgrade’s Nikola Tesla airport is 50 kilometres from Ub, while the Port of Šabac (on the Sava River) is also 50 kilometres away. There is the possibility of developing the transport and affiliated sectors even further once the Belgrade-South Adriatic motorway is built.

The motorway will pass right next to Ub and its construction will begin in late June this year.

In addition to natural and economic potentials, tourism also has the potential to become widely recognised in the region, provided that new investments are made in that sector. The municipality’s tourist attractions are the Dokmirska Church, the Church of the Nativity of the Holy Mother of God and the Church of the Ascension, as well as the Ilić archaeological site near the village of Čučuga, the monument raised in honour of King Peter I, and many other pieces of cultural and historic heritage.

The municipality’s tourist attractions are the Dokmirska Church, the Church of the Nativity of the Holy Mother of God and the Church of the Ascension

Economy

The most important economic branches in the municipality of Ub are agriculture and mining. Arable land covers close to 33 hectares or 72.16% of the entire land area, with quite a lot of ploughed land. Crops (maize and wheat) are regularly grown here. There are also many orchards and vineyards in the Ub area. Another important economic branch is mining. There is a development plan in place for strip mines in the Kolubara brown coal basin, i.e. a plan to open new mines Field C and Field E, as well as to form new strip mines called ’Veliki Crljeni’ once the Tamnava-East Field and Radiljevo mines

Vladislav Krsmanović, President of the Municipality of Ub: “Municipal authorities also provide incentives to investors who create a certain number of new jobs.”

Tourist Potential

Incentives for Investors

The municipality of Ub offers the following incentives to investors: 1) reduction of or exemption from paying property tax, a local utility fee, a land utilisation fee, a land development fee, an environmental protection fee, general administration fees and a land lease fee, 2) co-financing (money is provided from a special budget fund) of the fee that an investor has to pay if he wants to change the land purpose and co-financing of the zoning costs. Municipal authorities also provide incentives to investors who create a certain number of new jobs.

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contact Vladislav Krsmanović, Municipal President 3. October 4, 14210 Ub Tel: +381-64- 816-07-13 Email: predsednik@opstinaub.org.rs Stefan Teodosić, Managing Assistant Mayor for the Economic Affairs Tel: +381-14-411-963 Mob: :+381-64-816-07-15 Email: stefan.teodosic@opstinaub.org.rs teodosic2@gmail.com Website: www.opstinaub.org.rs Languages spoken: Serbian, English, French and Italian

Užice

Centre of Western Serbia Users do not have to pay a fee for regulation of the construction site, as well as administrative taxes of the local self-government

T

Jovan Marković, Mayor of Užice: “The industrial area covers around 125 hectares of the city’s territory.”

he city of Uzice is located in western Serbia and it represents the administrative, commercial, social and cultural centre of that part of Serbia. The main feature of Uzice is its location at the heart of south-eastern Europe and it is equally distant from the largest cities of the region - Belgrade, Sarajevo, Podgorica and Nis. Two significant roads pass through Uzice: the European road E-761, which is the shortest link between Bosnia-Herzegovina and Bulgaria, Greece and Turkey. The road E-763 starts in Timisoara (Romania), passes through Belgrade, and represents the shortest route to the southern Adriatic Sea. The most significant railway in Serbia, Belgrade-Bar passes through Uzice.

It enables low-cost and quick transport of goods and people. In addition to the passenger railway station in the centre of the city, a cargo terminal is also located in the Krcagovo industrial zone.

The airport Ponikve is located in the vicinity of Uzice, 15 kilometres away.

trial zone and, among others, it includes giants such as Rolling Mill and Impol Seval, but there also greenfield and brownfield locations within the Free Zone that are accessible to potential investors.

RZ Sevojno L (greenfield) covers an area of 2.96 hectares and is located on the left side of the main road M5. The industrial zone Sevojno D (greenfield) is directly connected to the main road M5 and railway Belgrade-Bar and it covers an area of 38 hectares, but it lacks communal infrastructure. Bojovica Vodenica covers 0.62 hectares and it has communal infrastructure.

It is located by the M5 main road. Based on the acquired consent from Srbija Putevi public company, the preparations for constructing the third lane of the road are in progress, which will activate this zone. The potential industrial-commercial zone Ada Vrela is located in Vrela settlement and it covers 3.46 hectares. The industrial zone Krcagovo is located in Krcagovo settlement and it covers 14.89 hectares, has complete communal infrastructure and 30 companies work there.

Acquiring necessary permits takes around 60 days

Economy

contact Jovan Marković, Mayor Svetlana Jevđović Matić, Deputy Mayor for Urbanism Dimitrija Tucovića 52, Užice, 31000 Tel: +381-31-590-142, +381-31-513-713 Fax: +381-31-513-499 E-mail: uprava@uzice.rs, svetlana.jm@uzice.rs Website: www.graduzice.org Languages spoken: English and Serbian

Uzice is one of the few cities in Serbia that makes a surplus in trade with foreign countries.

This is confirmed by the fact that the economy of Uzice is healthy, competitive and oriented towards export. Economic activity covers 11 different sectors, but companies from the processing industry, civil engineering and trade have the largest influence on economic fluctuations. The leading sectors are the metal industry, coloured metal processing, the textile industry and wood industry.

Industrial Zones The industrial area covers around 125 hectares of the city’s territory. In the town of Sevojno there is the: Free Zone - Uzice is one of the five cities in Serbia with a ‘free zone’.

The Free Zone is located in the Sevojno indus72 / The Investors Guide - Serbia 2010 / 2011

Benefits for Investors For the construction of production-business buildings within the Free Zone, users do not have to pay a fee for the regulation of the construction site, as well as the administrative taxes of local self-government for supplying information about the location and location permits, the fee for issuing conditions to link to the infrastructure network, which are in authority of the city. During the usage of the newly constructed production and business buildings within the Free Zone, users do not have to pay fees for the period of three years if they employ 30 people, four years if they employ 30-50 people, five years if they employ over 50 people, after the period of issuing the permit for the constructed building. Acquiring the necessary permits takes around 60 days.

Valjevo

Brownfield and greenfield locations Direct foreign investments in Valjevo during the last few years have amounted to 40 million euros. Important investors include Gorenje, Golden Lady, Austrotherm and Inter Marche

V

aljevo is located in western Serbia, less than 100 kilometres south-west of Belgrade. The city centre is located in the valley of the Kolubara River. Valjevo is one of the bigger and more developed cities in Serbia and it occupies an area of 905 square kilometres. Valjevo is the administrative and economic centre of the Kolubara district, with 200,000 consumers. Valjevo has a favourable geographical and traffic position.

It is located close to one of the most important state roads - the Ibar highway. The future highway Belgrade-Southern Mediterranean will also be passing close to Valjevo. Main roads to the Mediterranean Sea, Bosnia and Herzegovina, Macva and Vojvodina also pass through Valjevo.

The Belgrade-Bar railroad passes through the city, connecting Belgrade with Montenegro, and the Mediterranean Sea.

Economy In the structure of the economy the dominant branches are the processing industry, trade, agriculture and others. Specific potentials exist in the food industry, production and processing of fruit, juices, in the sector of animal husbandry and the butchering industry, in the construction sector and the construction materials industry, as well as in the export of these products. An important potential of Valjevo is the possibility of the exploitation of geothermal waters. The basic location and development factors important for the spatial distribution of industry in the area of the city are: industrial tradition, completed production and infrastructural capacities, natural advantages for the development of agricultural production as the raw material basis for the development of the food industry, the presence of regional and main roads, the railroad, and established non-metal deposits (limestone, sand, kaolin, technical stone). The most developed economic branches are the agriculture and food industry, the chemical industry, the metal industry, the construction material industry, the graphic

industry, the textile, leather and footwear industry, gathering and processing of industrial waste, and the timber processing industry.

Industrial Zones The main industrial zone, in the traditional sense, was formed alongside the road and railway route to Belgrade, with the possibility of further expansion and construction of an industrial railway track. According to the plan, the industrial zone is intended primarily for business purposes as well as mixed housing-business purposes. The business use refers primarily to the construction of industrial and construction facilities, production crafts facilities, warehouses, etc. Brownfield locations are: Stefil company (occupies a total area of 19 hectares, the total size of all facilities being 50,000 square meters); Jablanica (occupies the total area of 9.5 hectares, the total size of all facilities being 5,150 square meters).

Special benefits for investors include low business expenses. There are low tax rates, such as 10% profit tax, 8% or 18% VAT, 12% income tax, as well as numerous other incentives for investment including state subsidies for direct investments, which are not negligible and amount to between 2000 and 10000 euros for a new work place, profit tax exemption for a period of 10 years for large investments, as well as income tax and social insurance contributions exemption for employees under 30 or over 45 years of age. When submitting a request to register a business entity, it is necessary to include all required documentation with all taxes paid. The agency for registration issues a decision on the registration of a business entity within five days from the date the request was filed. Direct foreign investments in Valjevo during the last few years have amounted to 40 million euros. Important investors include Gorenje, Golden Lady, Austrotherm, and Inter Marche.

Zoran Jakovljević, Valjevo Mayor: “I believe that one of the greatest potentials lies in the people.

Human resources are to be found in experienced workers from the former large company systems, as well as in educated young experts.”

Special benefits for investors include low business expenses

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contact Tijana Todorović, Manager of the Department for Local Development, Economy and Municipal Affairs Mirjana Teofilović, Department for Local Development and Economy Karađorđeva 64, 14 000, Valjevo Tel: +381-14-294-711 Fax: +381-14-226-112 Email: tijana@valjevo.org.rs mteof@ valjevo.org.rs Website: www.valjevo.org.rs Languages spoken: English and Serbian

Varvarin

Joint Venture Formed In addition to agriculture, Varvarin’s greatest potential lies in the development of tourism

contact Zoran Milenković, Municipal President Trg Marina Marinović, 37260 Varvarin Tel/Fax: +381-37-789-263 Email: sovarvarin@ptt.rs Website: www.varvarin.org.rs Languages spoken: Serbian and English

Vladimirci

V

arvarin is a small town and municipality in the Šumadija region of central Serbia. It is part of Serbia’s Rasina district and covers an area of 249 square kilometres. 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 ranging from secondary raw materials, food production, production of building materials, to commercial services.

A number of 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 the chicken farm Brojler.

Together with the municipality of Ćićevac, Varvarin has formed a joint venture company with the American company L. A. International for the construction and subsequent distribution and maintenance of a gas pipeline network.

In addition to agriculture, Varvarin’s greatest potential lies in the development of tourism. The Varvarin area has all necessary preconditions for tourism including the natural beauty around the Great Morava and Western Morava rivers, the River Kalenić and the forests of 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.

Farms and Gardens The area has significant pure water sources and geothermal water that can be developed for agriculture and tourism

V contact VLADICA MARKOVIĆ, President of the Municipality Svetog Save 34, 15225 Vladimirci Tel: +381-15-513-141 Fax: +381-15-513-146 Email:sovlad@gromnet.net Website: www.vladimirovci.org.rs Languages spoken: English and Serbian

ladimirci is one of the eight municipalities of the Mačva district in the area of the north-western Serbia, on the right bank of the Sava River, between Šabac, Valjevo, Obrenovac, and Belgrade. The territory of Vladimirci is bordered in the northeast by the Sava River, in the south by the territory of Koceljeva municipality, and in the west by Šabac. The southern part of the municipality reaches the Vlašić mountain range. The municipality covers 338 square kilometres. In addition to the town of Vladimirci, there are 28 settlements within the municipality.

The municipality offers favourable opportunities for agriculture, including farming, livestock, vegetables, fruit, and food processing.

Agricultural land covers 27,298 hectares, or 81% of the total territory. Farms and gardens cover 22,732 hectares, orchards 1,920 hectares, vineyards 70 hectares, and meadows 1,548 hectares.

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Wheat and corn are the leading crops, accounting for over 70% of farm output. Fruit growing is prominent, particularly of strawberries, raspberries, blackberries, and plums. Most of the farmers also raise livestock: cattle, pigs, and sheep. Farmers also produce fresh meat, milk, and dairy products.

The area has significant pure water sources and geothermal water that can be developed for agriculture and tourism. According to geological surveys, the territory of the municipality offers hot spring water supplies to a depth of about 1,100 metres.

Vladimirci infrastructure includes 875 kilometres of road networks, 400 kilometres of water-supply pipelines, a fixed telecommunications network with over 6,000 telephone connections, and an electric power network covering the entire municipal area.

Vlasotince

Mini Hydro Electric Power Plant Recommended The industrial zone of the municipality covers an area of 82 hectares. About 30 percent of the location is already occupied Vlasotince municipality is situated in the south-eastern part of Serbia in the area of the middle and lower basin of the Vlasina River. The territory of Vlasotince municipality administratively belongs to the Jablanica district. There are 33,312 citizens living in 48 settlements in the area that covers 308 square kilometres. A significant infrastructure feature is the closeness of the Vlasotince municipality to the Nis-Skopje motorway i.e. the valley of Juzna Morava River, which is connected to Vlasotince municipality via Leskovac. The traffic and geographical position of Vlasotince municipality is transitive in character and an important feature is the proximity of the international Corridor 10 (Belgrade-NisSkopje), for six kilometres through the valley of Juzna Morava. The main road M9 runs through the municipality (through town of Vlasotince), from Pirot towards Pristina, as well as the regional road that leads to Vlasinsko Lake. The closest railway is 16 kilometres away, and the nearest airport is in Nis, 55 kilometres away.

Economy Vlasotince municipality has various natural resources that represent a good basis for an increase in economic strength and the more successful development of the municipality. Vlasotince municipality offers conditions for developing many different economies such as: the textile industry, wood industry, metal industry, construction material industry, graphic industry, the industry of alcoholic and non-alcoholic beverages, civil engineering, crafts, trade and catering, electric industry, wood processing, primary agriculture, fruit and vegetable processing, and tourism. The municipality also has water potential (Vlasina River runs through the town), which gives the potential to develop sports-recreation tourism. Also, there are the conditions for the construction of

mini hydro-electric power plants and renewable energy sources in general.

The Office for Local Economic Development, as a part of the department for the economy, agriculture, water industry, social activities, private entrepreneurship and finances, works to establish and maintain contact with donators and track applications. In a ‘human’ capacity it offers creativity and has work experience in various areas making preparations and monitoring the completion of projects.

Srđan šušulić, President of Vlasotince municipality: “There is the possibility to lend locations (for small and midsized companies) under most favourable terms to potential investors.”

Industrial Zones Vlasotince industrial zone is already defined by the general plan. It covers the area of 82 hectares. Urbanism documentation is prepared and the municipality is actively working on gathering data on the property-ownership status of the lot.

The area is already partly constructed (30%), and several local and international companies have their facilities at locations in the industrial zone.

It is situated six kilometres away from the motorway, and 16 kilometres away from the railway.

The location is close to the main infrastructure corridor and the existing successful industries here are good advertisements for new investors.

The location enables daily commuting from Leskovac, the regional centre of Jablanica district, and Nis, the largest city of southern Serbia, which enables the employment of highly capable and specialised employees.

Considering the future orientation that small facilities should become predominant and the desire to form industrial complexes along the existing roads, the new general plan Vlasotince 2020 envisages the enlargement of the existing industrial zone and commercial areas. The municipality will facilitate the possibility to lend locations, (for small and mid-sized companies) under most favourable terms, to the potential investors.

The municipality also has water potential, which offers the potential to develop sports-recreation tourism

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contact Bojan Cvetković, Head of Municipality Administration Cell: +381-63-112-04-65 Marinko đorđević, Coordinator in Office for Local Economic Development Cell: +381-69-187-79-06 Trg Oslobođenja 12, 16210 Vlasotince Tel: +381-16-875-552; 875-122 Fax: +381-16-875-552; 877-236 E-mail: opsta.uprava@vlasotince. org.rs; officeler@vlasotince.org.rs Website : www.vlasotince.org.rs Languages spoken: English and Serbian

Vladičin Han

An Efficient and Modern Municipality Investment costs in Vladičin Han are very low and the municipality also assists in negotiations with banks, investors, suppliers and distributors contact Nenad Mitrović, Municipal President Svetosavska 1, 17510 Vladičin Han Tel: +381-17-472-360 Fax: +381-17-473-073 Email: info@vladicinhan.org.rs Website: www.vladicinhan.org.rs Languages spoken: Serbian and English

Velika Plana

V

ladičin Han covers an area of 366 square kilometres. It belongs to a group of municipalities in the southern Morava Valley, and includes 51 villages and is close to international borders – it is 67 kilometres south to Macedonia and 52 kilometres 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 333 kilometres from Belgrade, 112 kilometres from Priština, 409 kilometres from Novi Sad, 91 kilometres from Niš and 112 kilometres from Skopje.

Municipal leaders believe that Vladičin Han

World Renowned Veterinary

Centre

Municipal authorities envisage the waiving of the building land development fee for investors

T contact Dejan Šulkić, Municipal President Saša Živojinović, Head of the Department of Commerce and Local Economic Development Miloša Velikig 30, 11320 Velika Plana Tel: 381-26-514-262 Mob: 381-64-860-3203 Email: sovplana@verat.net www.velikaplana.org.rs Languages spoken: Serbian and English

is an excellent investment destination. It offers easy access to consumers, and has a market of a million people within an hour’s drive.

Vladičin Han has an efficient and modern municipal administration and developed infrastructure. All necessary information 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 will meet and help investors, intervening on their behalf with the highest state authorities. The council can provide advice from the most competent people in the most prominent economic, scientific and university institutions in Serbia.

Investment costs in Vladičin Han are very low and the municipality also assists in negotiations with banks, investors, suppliers and distributors, domestic and international financiers, potential partners and customers.

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 the pan-European Corridor 10. It occupies an area of 345 square kilometres. Velika Plana is predominantly an agricultural-industrial area with fertile land.

The Velika Plana Veterinary Centre is world renowned for its selection and breeding of quality livestock. Investments in this area of the economy represent a major development perspective for the municipality.

Velika Plana already is already well developed in the areas of the metal industry, building material and construction operators, trade, tourism and other industries The municipality has two industrial zones: the south industrial zone, with a total area of approximately 27 hectares (approximately 15 hec76 / The Investors Guide - Serbia 2010 / 2011

tares of this is already equipped with municipal infrastructure); and the north industrial zone, which lies just 1.5 kilometres from the ring-road link to the Belgrade-Niš motorway (Corridor 10) and covers a total area of about 65 hectares (20 hectares 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.

The municipal authorities envisage the waiving of the building land development fee for investors. Licenses are obtained in the shortest possible time with respect to the legal terms and legal procedures.

Existing investors in Velika Plana are DEAMA (Italy), PEI (Italy), KEO (Italy) and ASA IBELIK.

Veliko Gradište

Port on the Danube The structure of the local economy includes the sectors of agriculture, tourism and industrial processing. Agriculture plays the most important role in the municipality

T

he municipality of Veliko Gradište is located in eastern Serbia and belongs to Braničevo county. It covers an area of 344 square kilometres 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 the Belgrade-Kladovo A-road and rail line, while Belgrade is about 110 kilometres 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.

CORPORATE

The municipality is also rich in hunting grounds.

Veliko Gradište is surrounded by some of the most picturesque natural scenery - popular Silver Lake (Srebrno Jezero) made of the artificially divided Danube channel, and the captivating mountain river Pek which flows from Serbia’s eastern regions and ends in an estuary at the River Danube not far away from Veliko Gradiste. It’s proximity to Silver Lake, the Danube and Pek make this town a well renowned paradise for fishermen and admirers of nature.

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.

The most significant industrial production facilities are the vegetable oil refinery Dunavka and local industrial bread-making capacities.

The leader of the local metallurgy sector is the company Čelik.

contact Ljiljana Stević, Deputy Municipal President for Economic Development Žitni Trg 1, 12220 Veliko Gradište Tel: +381-12-660-128 Fax: +381-12-661-128 Email: sovgradiste@ptt.rs Web site: www.velikogradiste.org.rs Languages spoken: Serbian and English

GWmoves

any countries M - one philosophy Being closer to the market and personally committed to the customer. For you, as a customer, this means that no matter which goods you plan to transport from one destination to another, Gebrüder Weiss can offer you a fast, cost-efficient and reliable solution for this transport job. nlimited transport services for U our customers Next to many other services Gebrüder Weiss also handles all customs procedures in a reliable and un-bureaucratic fashion for you, from the customs declaration and the customs warehouse to cross-border processing.

They do not only improve processes and enable higher productivity, but they also reduce costs and create some scope for strategic investments in other areas of the company. Gebrüder Weiss are your partner for logistics solutions, which can be seamlessly integrated into your company concept, thus, supporting your success. arehouse outsourcing W Flexible and adequate storage possibilities Your warehouse within the modern logistic facilities of Gebrüder Weiss can be as large as you need it to be. Moreover, you can lower your fixed costs and save on any unproductive vacancies on the basis you only have to pay for the space you actually use. As your warehouse

Individual logistics solutions Consulting, services and branch solutions Made-to-measure logistic solutions are a critical factor for success when it comes to smoothly exchanging goods and information.

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capacities at Gebrüder Weiss can be scaled in real-time, you can easily and economically intercept any seasonal fluctuations.

Gebrüder Weiss take over the entire warehouse logistics including the ordering system, warehouse management and replenishment, order handling with pick-up, packaging and shipping as well as Europe-wide distribution. You can reduce your stock and thus improve your liquidity thanks to our fast and rational logistics procedures. While doing this, you have full control of everything.

Vranje

Town with a Soul

Local authorities provide exemption from paying the local business name fee and the land development fee as incentives for investors

V

Miroljub Sojčić, Mayor: “Local authorities provide the following incentives for investors exemption from paying the local business name fee and the land development fee.”

ranje, is known by many as a town that has soul, and is situated in the very south of Serbia. Vranje is the economic, administrative, health, educational and cultural centre of the Pčinjski country. The municipality of Vranje stretches across 860 square kilometres and is one of the biggest municipalities in Serbia. It is comprised of 105 towns and villages, 32 local communities and 21 local offices. The town of Vranje has an excellent geographic position; it is situated on Corridor 10, and is 48 kilometres from the state border with Macedonia and 74 kilometres from the border with Bulgaria. The Niš and Skopje airports are 120 and 90 kilometres away respectively, which makes the town even more attractive for potential investors.

Economy Vranje has a long industrial tradition, primarily in wood processing, and also in the textile, tobacco, metal processing, machine building, chemical, agricultural, food and footwear industries. The biggest exporters here are Simpo and Alfa Plam, which are also considered the town’s brands.

The arrival of BritishAmerican Tobacco solidified the town’s reputation as one of the most interesting investment locations in Serbia.

The municipality’s development advantages lie in the qualified and versatile workforce (of 50 different professions). The municipality’s educational institutions, the National Employment Service and investors have established a good collaboration on re-training or providing additional trading for the workforce in order to meet investors’ needs.

frastructure, while the infrastructure in the other two zones - Suvi Dol and Bunuševac - will be developed soon.

Information for Investors Local authorities provide the following incentives for investors - exemption from paying the local business name fee and the land development fee. With USAID’s assistance, the local self-government has also set up the Local Economic Development Office, in line with the one-stop-shop principle, where potential investors will receive complete service.

In accordance with the legally defined deadlines and relevant documentation, investors can obtain the required permits in 30 to 45 days. The following companies are the biggest investors in Vranje - British-American Tobacco, Simpo, Sanch, Kenda Farben and Danny Style, as well as numerous small and medium enterprises engaged in leather processing and footwear manufacturing who export their entire production, such as Decathlon and Progetti. In addition to modernising the services provided, local authorities have also relaxed local regulations (this process called ‘The Regulation Guillotine’ was carried out in collaboration with the IFC - World Bank). In addition to these incentives, the municipality, helped by relevant institutions, has invested in the development and application of IT and infrastructure, which are some of the most important development factors.

The biggest companies in Vranje are all located in Radnička Street

contact Boban Stanković, Assistant Mayor for Economy and Local Economic Development Issues Petog Kongresa 1, 17500 Vranje Tel: +381-17-402-334 Fax: +381-17-421-576 Mob: +381-64-890-75-05 E-mail: privreda@vranje.org.rs Website: www.vranje.org.rs Languages spoken: English and Serbian

Industrial Zones In accordance with the master spatial plan, several industrial zones have been developed here. The biggest companies in Vranje are all located in Radnička Street (Alfa Plam, Simpo, Yumko, Sanch, Zavarivač etc.). The privatelyowned companies are mostly located in the industrial zones of Bunuševac and Suvi Dol. The industrial zone in Radnička Street has full in78 / The Investors Guide - Serbia 2010 / 2011

Local administration is continuously educated and ready to implement reforms, which has resulted in Vranje being the recipient of many state and international awards. The National Alliance for Local Development (NALED) has awarded Vranje with a certificate stating that the town has a favourable business environment.

This is the crowning achievement of the longterm effort invested and a validation of the responsibility and reliability that the town’s public sector has. The public sector here is considered to be one of the most proactive in the country.

Vrnjačka Banja

The Centre of Spa Tourism T

he municipality of Vrnjačka Banja is located in central Serbia, in Raška county. The town of Vrnjačka Banja is in the municipality’s centre. Size-wise, the municipality belongs to the group of smaller Serbian municipalities. It is 200 kilometres from Belgrade, 25 kilometres from Kraljevo and seven kilometres from Trstenik.

It is situated between the Goč Mountain (1,216 metres) and the West Morava River. It covers the central area of the West Pomoravlje and is situated on the Kraljevo-Kruševac corridor.

The municipality is connected to Kraljevo and Kruševac via the main railway and road route, and Aleksandrovac is just over Goč Mountain.

Economy Tourism is the main economic branch in Vrnjačka Banja. The town itself is known for its spas which brings important tourist revenue to Serbia. Vrnjačka Banja has six thermal water springs in the town itself, out of which two are homeo-thermo-mineral springs - Topla Voda where the water temperature is 36.5ºC and Beli Izvor. Vrnjačka Banja has wonderful parks which cover over 60 hectares of land and beautiful aristocratic villas that date back to the late 19th and early 20th century.

Investment Opportunities The municipality is open to cooperating with potential investors on projects that are mutually beneficial. Constructing a wellness spa, four- and five-star hotels and a children’s amusement park called Beli Izvor are just some of these projects.

The land where Beli Izvor is supposed to be constructed is in an outstanding location and is located between the Lipovački Creek and the Lipovačka River. There is a paved road leading to the location which has a thermo-mineral spring. The project is just a part of a wider project dedicated to the development of high-end spa facilities.

There is the possibility of building industri-

Although Vrnjačka Banja has significant spa potential and many catering facilities, additional investments should be made in the construction of new hotels

al and production zones which range from five to 30 hectares in size. Also, there is the opportunity for greenfield investments to be made on the Goč Mountain, where sports and recreational facilities, tourist resorts, children playgrounds, mini hotels, and ethno and eco villages can be built. Although Vrnjačka Banja has significant potential in the area of spas and catering facilities, additional investments should be made in the construction of new hotels. Many privatelyowned accommodation facilities and mini hotels have been built already and they provide a high quality level of service. However, Vrnjačka Banja needs medium and large hotels of the highest level, and more modern sports and recreational facilities. Potential investors will find the timber processing industry and organic food production especially interesting in terms of investment potential.

Zoran Seizović, President of the municipality of Vrnjačka Banja: “The municipality is open to cooperating with potential investors on projects that are mutually beneficial.”

Information for Investors The municipality still doesn’t have an act that will regulate incentives for potential investors. The municipal authorities can negotiate incentives for individual investors depending on the size of an investment and the potential for hiring the local population (whether directly or indirectly). Utility systems are also in a need of investment, particularly when bearing in mind that, in 2011, several public enterprises will be restructured. Also, the hotel industry, health and rural tourism, transport, catering and food industry need fresh investment. The Republic of Serbia’s spatial plan and the municipality’s spatial plan, covering the area around the West Morava River, both envisage the construction of three small hydro-electric power plants which is also a great investment opportunity.

The most important investors that have invested in the municipality so far are: the Todor textile company, design and engineering company Interklima, super-market chain Tempo and several construction companies.

There is the possibility of building industrial and production zones which range from five to 30 hectares in size

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contact Mila Stojanović, Head of the Environmental Protection and Local Development Unit Kruševačka 17, 36210 Vrnjačka Banja Tel: +381-36-601-214; Mob: +381-64-8827741 E-mail: milastojanovic@nadlanu.com Website: www.vrnjackabanja.co.rs Languages spoken: English and French

Zaječar

A City of Opportunities Incentives for investments and job creation in Zaječar will be between €4,000 and €10,000 for every new employee

Boško Ničić, Mayor of Zaječar: “Zaječar is a city with a European spirit, its own identity and a vision of future.”

contact NADEŽDA RADENKOVIĆ, Mayor’s Assistant for Projects DUŠAN MLADENOVIĆ, Mayor’s Assistant for Local Economic Development SUZANA VUJIĆ, Head of the Local Economic Development Department Trg Oslobođenja 1, 19000 Zaječar Tel: +381-19-421-199, 444-600, 444-670 Fax: +381-19-421-712 Website: www.zajecar.info; www.lerzajecar.com E-mail: ozajecar@verat.net; office@ lerzajecar.com Languages spoken: Serbian and English

T

he City of Zaječar is the geographic, administrative, economic and cultural centre of the Zaječar Administrative District. Located in Eastern Serbia, it is only 11 km from the border with Bulgaria. The city covers the area of 1,069km2 and has 65,969 residents. Zaječar is built at an intersection of main roads linking it to international Corridor 10. The nearest commercial airport is 100km away in Nis, while Prahovo Port on the Danube is 70 km away. One of the major advantages of the City of Zaječar is that 38.5 million consumers in the markets of Serbia, Bulgaria and Romania can be easily accessed.

with good facilities, as well as great potential for tourism development. The archaeological site “Felix Romuliana” is the only site in Serbia listed on the UNESCO World Heritage Site register.

The existing strategy of local economic development for the city of Zaječar includes a blueprint that allows for the prompt realisation of investments. The document includes key areas identified in the strategic planning process such as: 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 tech.

ECONOMY

INDUSTRIAL ZONE

Zaječar’s environment provides all the natural conditions required for the development of agriculture. Local industry here is diverse and includes: metal processing, food process-

The main existing industrial zone, Timočanka, covers an area of 45,939m2, is wholly city owned, and has 8,518m2 of fully equipped halls.

The industrial zone is located in the second city zone which is only 1.2 km from the city centre, along the Zaječar-Negotin main road, and located 80 km from Corridor 10.

In order to meet the needs of new investors, city staff will issue all necessary permits within a few days of the submission of required, completed documentation ing, glass and porcelain industry, textiles, production of electricity and also mining (an anthracite mine in Vrška Čuka; a lignite mine in Lubnica and a quartz sand mine in Srbokvarc).

Zaječar City is an interesting tourist destination 80 / The Investors Guide - Serbia 2010 / 2011

Zaječar’s Urban Area The master plan provides the development of another industrial zone along the route to Negotin, covering an area of 152,450m2. The city has nearly 20 additional plots that are also suitable for investment locations. Zaječar’s basic advantage, compared to other surrounding communities, is the existence of unutilised capacities from former large enterprises that were responsible for the city’s development. These capacities could be grounds for BROWNFIELD investments. Vacant construction land with accessible infrastructure networks represent capacities

that can be used for possible GREENFIELD investments in the city. Brownfield and greenfield investment opportunities, as well as planned incentives, readiness of the local government to recognize investors’ interests and lend assistance to investment realisation, and the potential for different forms of public/private partnership are the winning combination for a good business environment.

INCENTIVES Investors who hire between 50-100 workers will be released from payment of the land use fee for a period of one year, from 100-200 workers for a period of two years, from 200-300 workers for three years, from 300-400 workers for four years, over 500 workers for five years.

There is always the possibility of negotiations with City Government. The city also provides relief grants to potential investors dependent upon the type and value of investment. Zaječar is one of the four cities supported by the government programme for the revival of big industrial centres. The aim of this programme is to reduce regional disparities, to

revitalise production and to escalate the opening of new factories and jobs. According to this programme incentives for investments and job creation in Zaječar will be between €4,000 and €10,000 for every new employee. In return for support under this programme the investor must invest at least € 500.000 and employ more than 50 workers.

PERMITS & DEADLINES In order to meet the needs of new investors, city staff will issue all necessary permits within a few days of the submission of required, completed documentation.

INVESTMENTS TO DATE Significant investments have been made over the last five years and about 15 million euro has been invested in this period by companies such as Moraviaenergo from the Czech Republic, A.D. Imlek BG - Zaječar (dairy), Telefonika Kable from Poland, United Serbian Breweries (Heineken) Zaječarsko, PD Zaječar, PD Salas, Strabag and FMT Zaječar.

Eco Food and Tourism

In the territory of Homolj, in the municipality of Zagubica, the most important businesses and the leaders of development in the field of industry are castings factory FOZ and IGM Mermer, Nova Osanica and coal mine Jasenovac Krepoljin

T

he municipality of Zagubica is located in south-eastern part of the Branicevo district and the eastern part of Serbia, around 170 km southeast of Belgrade and 83 km from Pozarevac.

The main traffic corridor is the regional road of the R105 Pozarevac-Petrovac-Zagubica-Bor. All the villages in the area of this municipality are connected by a network of local roads.

The municipality is not connected to the railroad, and there is no air transportation.

On the plains of the Zagubica and KrepoljinaKrupaj valley, and where the valleys widen as the rivers leave the plains, in the lowland and the most fertile parts of Homolje, mostly corn and wheat are grown. On the highlands and elevated terraces animal husbandry, farming and fruit production are intertwined; foremost it is a region of cereals, meadows and fruit. In the territory of Homolj, in the municipality of Zagubica, the most important businesses and leaders of development in the field of industry are castings

factory FOZ, IGM Mermer and Nova Osanica which have been privatised, as well as the dark coal mine (RMU) Jasenovac Krepoljin. As a branch of the economy, tourism has only recently, during the last ten years, started to develop in the municipality of Zagubica. Many motels have been constructed thanks to local companies and there are plans for the construction of new motels. As the municipality of Zagubica is economically underdeveloped, and, as such, does not have the necessary funds for more intensive tourism development, future orientation in the development of tourism in Homolj should be based on rural tourism. Homolj is predestined for the production of ecologically clean food of a high biological quality due to favourable climate conditions and an ecologically clean environment. Today, this type of food is becoming the most important element of the economic, trade and touristic offer, and to a large degree the motive for tourist visits, as well.

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žagubica

contact Dragi Damnjanović, Municipal President Trg Oslobođenja 1, 12320 Žagubica Tel: +381-12-643-153 Fax: +381-12-643-237 Email: opstinazagubica@beotel.rs Website: www.zagubica.org.rs Languages spoken: English and Serbian

Žabari

A Well-equipped INDustrial Zone The municipality can offer potential investors unoccupied industrial halls, processing capacities, land, human resources and exemptions from paying various administrative fees contact Miodrag Filipović, Municipal President Kneza Miloša 103, 12374 Žabari Tel: +381-12-250-130 Fax: +381-12-250-232 Mobile: +381-69-250-2301 Email: sozabari@ptt.rs Languages spoken: Serbian and English

Žitorađa

Ž

abari is located in eastern Serbia at the heart of the Lower Pomoravlje district, 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 R-103, R-107 and 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, and Belgrade is 100 kilometres away.

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.

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 station, 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.

Vegetables and Fruit

The P3 industrial zone has complete utility infrastructure (water supply, sewage, phone lines) and its land is privately owned

T contact Dr Miodrag Petrović, President of the Municipality Toplički Heroji 53, 18412 Žitorađa Tel: +381-27-362-931 Fax: +381-27-362-211 Email: opstina@zitoradja.org www.zitoradja.org Languages spoken: Serbian and English

he municipality of Žitorađa is situated in the Toplički district of south-eastern Serbia.

The municipality is 10 kilometres from Corridor 10, which links Serbia to Macedonia, Greece and further onto the Far East, and 35 kilometres southwest of Niš.

Agriculture is the most developed branch of Žitorađa’s economic structure. 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.

82 / The Investors Guide - Serbia 2010 / 2011

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 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 municipality has another industrial zone that is also situated on the R-245 regional road.

It is only five kilometres from Corridor 10 and six kilometres from Žitorađa town.

S LEADERO T N I P G N MEETI

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