Vojvodina Investments 2010/2011 by CorD Magazine

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Vojvodina Investment 2010 / 2011 | 5

CONTENTS

2010 / 2011

VOJVODINA INVESTMENT

The Guide

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IMPRESSUM EDITOR IN CHIEF Tatjana Ostojić, t.ostojic@cma.rs ASSISTANT EDITOR Vesna Milinković, v.milinkovic@aim.rs ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs ASSISTENT DESIGNER Miloš Aleksić, m.aleksic@aim.rs EDITORIAL CONTRIBUTORS Ana Stojanović PHOTO Slobodan Jotić, Darko Cvetanović LECTOR Pat Andjelkovic TRANSLATORS Snežana Bjelotomić PROJECT MANAGERS Vesna Vukajlović, v.vukajlovic@aim.rs; Marija Savić, m.savic@aim.rs; Snežana Terzić, s.terzic@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

FOREWARD By Branislav Bugarski, Vojvodina Investment Promotion – VIP

PROMOTING SERBIA - Sándor Egeresi, President of the Autonomous Province of Vojvodina’s Parliament

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ATTRACTIVE FOR INVESTORS - Bojan Pajtić, President of the Autonomous Province of Vojvodina’s Government

This issue is audited by

ABC Serbia

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SATISFIED INVESTORS - BEST REFERENCE - Branislav Bugarski, CEO of Vojvodina Investment Promotion – VIP

MUNICIPALITY

30 Ada 31 Alibunar 32 Apatin 33 Bač 34 Bačka Palanka 35 Bačka Topola 36 Bački Petrovac STRONG COMPE- 37 Bečej TITION - Dr. jur. 38 Bela Crkva Christian Otto Neu, C.E.O. 39 Beočin of “DDOR Novi Sad” 40 Čoka 41 Inđija 42 Irig 43 Kanjiža 44 Kikinda 45 Kovačica 46 Kovin 47 Kula 48 Mali Iđoš 49 Nova Crnja 50 Novi Sad 52 Novi Bečej VOJVODINA 53 Novi Kneževac ‘BREAD BASKET 54 Odžaci OF EUROPE’ - Remer Lane, 55 Opovo Marketing and Sales Di56 Pančevo rector, USAID Agribusiness 57 Pećinci Project 58 Plandište 59 Ruma 60 Sečanj 61 Senta 62 Sombor 63 Srbobran 64 Sremska Mitrovica 65 Sremski Karlovci 66 Stara Pazova THE GREEN 67 Subotica CHALLENGE 68 Šid Tourism 69 Temerin 70 Titel THE BIGGEST FDI 71 Vrbas IN VOJVODINA 72 Vršac 73 Zrenjanin REGISTER 74 Žabalj 75 Žitište

The Guide “VOJVODINA INVESTMENT 2010 / 2011” published by: alliance international media in association with Vojvodina Investment Promotion - VIP Knjeginje Zorke 11b, 11000 Belgrade, Serbia; Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 office@allianceinternationalmedia.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2010

SPECIALIZATION REQUIRED By Msc Valentina Ivanic, Director of Centre for Strategic Economic Studies “Vojvodina-CESS,” Novi Sad

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FOREWARD

“V

Vojvodina has established a clear concept of its social and economic development as set out in the Integrated Regional Development Plan of the AP Vojvodina from 2004 defined in the Plan is to advance the framework to attract foreign investments, the result of which was the establishment of the Vojvodina Investment Promotion, with the aim of devising a concept for promoting Vojvodina, bringing in foreign capital, and making sure that it stays here.

So, why am I telling you all this? Because our statistical data shows that there are currently 200 foreign companies operational in Vojvodina, which have invested a total of 5.3 billion euros so far and hired close to 68,000 people. This tells us that we are doing something good, that the potentials that we have here should not be disregarded, and if we present them properly, other companies might come here too. The Guide for Foreign Investors 2010 / 2011 that is in front of you and in whose creation VIP participated for the fourth consecutive time, contains interesting information about the conditions for doing business in Vojvodina’s municipalities, an investment climate fostered by both Vojvodina’s and state authorities, as well as several good practice examples. In the end, I would like to thank everyone who participated in making of this Guide and who wholeheartedly supported it – representatives of municipalities and companies in Vojvodina, the editors and the team of CorD Magazine who put the Guide together, and you, the readers, for taking time to find out more about Vojvodina. We do hope that you will recognize an opportunity for yourself, and we are at your disposal to help you turn that opportunity into profit.

“

ojvodina has always been a region where geographic position, natural and human resources, fertile land intersected by rivers, lakes and canals, long national and economic tradition firmly based on agricultural, and food and metal processing industries fuse in the best possible way, making flat Vojvodina an elevated point on the map of Europe. And the tradition continues to this day. In addition to changes made to state legislation, an ongoing process, Vojvodina has established a clear concept of its social and economic development as set out in the Integrated Regional Development Plan of the AP Vojvodina from 2004. One of the strategies

Sincerely, Branislav Bugarski Vojvodina Investment Promotion - VIP

Vojvodina Investment 2010 / 2011 | 7

INTERVIEW

SÁNDOR EGERESI, PRESIDENT OF THE AUTONOMOUS PROVINCE OF VOJVODINA’S PARLIAMENT

PROMOTING SERBIA The sooner the Law on Public Assets, Property and Other Property Rights and the Law on Financing the Autonomous Province of Vojvodina are adopted the better, since these two laws are an important step towards the materialization of Vojvodina’s autonomy. he validation of true decentralization and regionalization as the basis for democratization and Serbia’s political consolidation is found in everyday life. The real needs that citizens have are, for the most part, met at a local level,” says Sándor Egeresi, President of the Autonomous Province of Vojvodina’s Parliament. Decentralization and regionalization were just some of the issues that we discussed with our interlocutor.

As you said last year, the issues of decentralization and regionalization of Serbia are the issues of not only functionality, but also of Serbia’s future. You also said that countries were only as strong as the authority in their regions. Following the adoption of Vojvodina’s Statute, how wide is Vojvodina’s authority today? The validation of the true decentralization and regionalization, as the basis for

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democratization and Serbia’s political consolidation, is found in everyday life. The real needs that citizens have are, for the most part, met at a local level. The Statute,

Vojvodina has managed to accumulate a sufficient amount of trade in with Bosnia and Herzegovina, Romania, Slovenia, Ukraine, Montenegro, Macedonia, The Netherlands, and Greece as the highest legal act adopted by Vojvodina’s Parliament, has a potential that Serbia needs in order to conduct internal reforms,

and the issue of internal reforms is the issue of defining relations between central and other levels of power, i.e. provincial and local. Following the adoption of the Statute and the Law on Transfer of Jurisdiction, the prerequisites for the better living standard of Vojvodina’s population have been created, because now Vojvodina’s citizens have instruments to help them resolve problems. Also, we have created preconditions for economic development and cheaper and more efficient administration. Nominally speaking, in addition to the current 216, the province also got 153 new competencies, which makes 369 in total, all classified over 20 different areas. It is almost impossible to speak about Vojvodina’s jurisdiction without reverting to the topic of Vojvodina and local self-governments getting their assets back and the Law on Financing of the Autonomous Province of Vojvodina. Fiscal decentralization is the key to true decentralization.

Fiscal decentralization is the key to true decentralization Does Vojvodina have more latitude today in attracting foreign investments? The word ‘autonomy’ doesn’t stand for much and you need to add content to the term. Hence, the sooner the Law on Public Assets, Property and Other Property Rights and Law on Financing the Autonomous Province of Vojvodina are adopted the better, since these two laws are an important step towards the materialization of Vojvodina’s autonomy. I am talking about the importance of steps we need to take in order to assign content to the terms autonomy, regionalization, and decentralization. The Statute says that provincial administration is entitled to conclude inter-regional agreements and to open representative offices in European regions and Brussels, which is quite important in terms of having easier access to European funds and imple-

Novi Sad menting projects that are crucial for future development of the province. Last year’s economic indicators show that Vojvodina’s businesses exported and imported goods to and from 150 countries, with exports car-

ried out to 109 countries and imports from 149 countries. The overall trade exchange between Vojvodina and 17 foreign countries stood at over $100 million. Vojvodina has managed to accumulate a sufficient quan-

Vojvodina Investment 2010 / 2011 | 9

INTERVIEW wine production, etc. The activities of Vojvodina’s Parliament on creating the EU’s Danube strategy and setting up the Danube Region will reach their peak when the first-ever conference of presidents of parliaments of ten countries and eighteen Danube regions takes place in Novi Sad in October 2010. We are building parliamentary cooperation on the territory of the future Euro-region as a democratic infrastructure, i.e. as the basis of support to Euro-regional integrations. The Danube Strategy aims at improving coordination and collaboration in specific areas like advancing synergy in economy, science, technology, ecology, culture, and youth exchange.

tity of trade with Bosnia and Herzegovina, Romania, Slovenia, Ukraine, Montenegro, Macedonia, The Netherlands, and Greece. It is quite realistic to expect that opening representative offices in European regions will lead to even better economic collaboration. Bearing in mind how difficult last year was, with fewer investments than anticipated, what activities are planned for this year in order for Vojvodina to reach the investment level of 2008? Unfortunately, we are going to have a difficult time, and not only in trying to reach the 2008 level. The Vojvodina Chamber of Commerce says that the economy in the province has yet to reach the 1989 level. Before the Socialist Federal Republic of Yugoslavia (SFRJ) disintegrated, Vojvodina’s GDP had been close to Slovenia’s. Today, the situation is devastatingly different. We presume that the Slovenian GDP is 12 times Vojvodina’s. In order for our economy not to regress, the provincial government needs to stimulate advances in technology and invest more money in science, technology, and energy efficiency. It is very important that we be the ones to manage the crisis, and not vice-versa. True decentralization and regionalization is a way to avoid poverty in Serbia becoming a status symbol. The lever that Vojvodina has at its disposal is a regional development policy. Recently at the opening of a two-day presentation from the Austrian province of Styria in Vojvodina’s Parliament, you said that provincial parliament favours an active regional policy, and added that regional integrations are not only Europe’s future, but an unavoidable factor of Europe’s development. What is Vojvodina’s cooperation with other European

It is very important that we be the ones to manage the crisis, and not vice-versa provinces like and how extensive is it? Bearing in mind that the communication between regional parliaments is an integral element of regional stabilization and harmonization with EU policies, in the last decade or so Vojvodina’s Parliament has been working on developing this cooperation with the following counties: Vukovarsko-Srijemski, Istarski, Bacs-Kiskun, Upper Austria, and the Czech region of Olomouc. We have signed cooperation protocols with the parliaments of these regions, with special emphasis given to collaboration between municipal committees, local self-governments, and creating political prerequisites for joint projects in areas like renewable energy sources, waste disposal, improving tourist potentials, spa tourism,

ECONOMIC OFFICES he role that Vojvodina’s economic offices should play is to promote the economic, tourist, and cultural potentials of the province and to be a venue for constructive meetings, a place where economic preconditions for future investments will be created, and where lobbying for joint projects will take place. Vojvodina is a European project, and this is the location of the Central European version of the ‘promised land.’ The colonial dream of freedom is ingrained in Vojvodina. Such a Vojvodina is certainly going to be a good promoter of Serbia in Europe.

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Following the adoption of the Statute, one of the first representative offices that Vojvodina is going to open is in Graz, Styria. When do you expect this to happen and do you plan on opening more such offices? The offer we got from the president of the parliament of the Austrian province of Styria, Dr. Kurt Flecker, to open Vojvodina’s representative office in Graz is a result of our long-standing friendly parliamentary and economic relations. By signing the Statement on Intentions on November 24th, 2009, our two parliaments demonstrated a willingness to strengthen the channels of parliamentary communication and to jointly create prerequisites for better economic and trade exchange, as well as for small and medium enterprises to exchange their experiences and develop cooperation in areas like education (especially higher education), culture, nature preservation, and environmental protection. Based on what has been achieved so far, President Flecker offerred Graz as the first choice for the Autonomous Province of Vojvodina’s office. Bearing in mind that Brussels is the European capital city and the place where all important decisions are made, we plan to open Vojvodina’s office there too. However, we need to open an office in Graz as soon as possible, since this city, as the capital city of our partner region, can be the first, albeit symbolic, border of Vojvodina’s way towards Europe.

• Engineering • Design • Consulting • Construction and assembly • Manufacturing • Testing and certification services Privredno društvo za konsalting, projektovanje I inženjering ● Complete service management from location permit to start-up Delta Engineering was the main designer and constructor on the following projects:

Nestle Ice Cream factory – 1998 - Stara Pazova

IMG – 2005 -Nova Pazova

Alumil YU and Alumil Srb – 2003 and 2004 - Nova Pazova

G N R I A L TIES LI DINA VO

Husqvarna – 2006 - Stara Pazova

Henkel - 2006 and 2007 - Indjija

Volvo – 2007 and 2008 - Stara Pazova

Monbat - 2008 and 2009 - Indjija

Duochem- 2009 and 2010 - Nova Pazova vanja s lo

a us p din

nog po eš

Address: 13, Pariska, 11000 Beograd / Tel: ++381 11 3973442, 2473-475, 2467-059 Mail: office@deltainzenjering.rs, group@deltainzenjering.rs / Web: www.deltainzenjering.rs

INTERVIEW

BOJAN PAJTIĆ, PRESIDENT OF THE AUTONOMOUS PROVINCE OF VOJVODINA’S GOVERNMENT

ATTRACTIVE FO Foreign investment inﬂux mostly depends on the European Union and Russian markets becoming more stable. We expect the most from new projects that have already been launched

H.E. Mr. Ron van Dartel, Netherlands Ambassador to Serbia, Oliver Dulić, Minister of Environmental Protection and Spatial Planning, Bojan Pajtić, President of the Autonomous Province of Vojvodina’s Government and Saša Dragina, Minister of Agriculture in Vrbas By Ana STOJANOVIĆ f we are talking about the influx of FDIs to other parts of Serbia and the region, Vojvodina’s advantage primarily lies in a well-developed infrastructure, and an excellent ratio between productivity, work quality, product quality, and the price that an inves-

12 | Vojvodina Investment 2010 / 2011

tor pays for that ratio,” says Bojan Pajtić, President of the Autonomous Province of Vojvodina’s Government. Today, Vojvodina can freely say that no investor has withdrawn any projects from this area. We are talking to Mr. Pajtić about the expectations with regard to future FDIs and several other issues.

At the March meeting between Vojvodina’s government and foreign investors, you said that foreign companies had invested close to 5 billion euros in Vojvodina so far, and created 68,000 new jobs. You also said that it was the provincial government’s aim for investment volume to go back to

OR INVESTORS the 2008 level, which would double the influx of foreign capital. Now, in April, what are the chances that the government will meet this goal? It is certainly our aim to have as many foreign investments as possible, but the most important thing at the moment is that we have been witnessing many positive tendencies, which in turn, led to several projects being launched, which again will generate new investments. I am talking about the Chinese agricultural machinery producer, YTO, which has a joint investment with Agrovojvodina Mehanizacija. The Danish company, Grudnfos, one of the biggest global pump manufacturers, signed a contract last year about opening a plant in Inđija, and we are yet to see the project take off. These are investors that implement higher levels of industrial processing, which means more added value for us. What is your estimate of the FDI influx in 2010? I think it is quite an thankless task to talk about estimates and prognoses, since we have to bear the full responsibility in everything that we do. Hence, I would not like to put a number to our expectations. The activities on attracting foreign investments are not short-term or quick. You cannot complete them in a week or two, or a month. On the contrary, work on such projects can last even several years. I always cite the example of German company, Draexlmaier. Negotiations with this company about their arrival to Vojvodina lasted three entire years.

Saša Dragina, Minister of Agriculture and Bojan Pajtić, President of the Autonomous Province of Vojvodina’s Government in Vrbas

Italy, Germany, Austria, and Slovenia remain our biggest partners and leading investors in Vojvodina

VIP AND LOCAL SELF-GOVERNMENTS IP works closely with all 45 local self-governments on advancing their capacities for attracting foreign investments. The Fund helps municipal authorities develop business incubators and industrial zones, educates local administration, and devises their appearance before potential investors and at specialized fairs.

Foreign investment influx mostly depends on the European Union and Russian markets becoming more stable. We expect the most from new projects that have already been launched, as well as from Far East investors that we have been prompting to make investments here. Have any of the investors abandoned plans for investing last or this year? The last two years have been very difficult for everybody, since the global economic crisis hit the biggest global economies, and of course we felt the brunt of it. We are glad to say that not a single inVojvodina Investment 2010 / 2011 | 13

INTERVIEW problem with the global public. We still give the impression that the country is politically unstable, although it is to a lesser extent than several years ago. Improving this image is one of the long-term activities that we need to carry out at all levels. Could you single out couple campaigns on attracting foreign investors that would be implemented by the end of this year or that you are currently negotiating? We don’t like to divulge any information about ongoing negotiations until an agreement has been reached. This is a rule we stick to in negotiating with potential investors. I have already mentioned that negotiations are a complex and time consuming process, so it is quite a thankless task to release partial information about something as important. VIP continues to carry out its activities, and the plan for the near future is to have a presentation for Japanese companies that have their headquarters or branch offices in Austria. After that, we will do the same thing in Russia, Shanghai, and Japan.

It is certainly our aim to have as many foreign investments as possible, but the most important thing at the moment is that we have been witnessing many positive tendencies vestor has left Vojvodina. This information is a good indicator, gives us satisfaction, and we feel more obligated because of it. Personally, I haven’t heard of any investors withdrawing from Vojvodina, but each company that is serious about investing undergoes a period of evaluation and decision-making. It is up to us to offer them the best we can, to keep the title of one of the most appealing regions for investing, to continue having success, and to keep investors satisfied here. As we have been told by existing investors, Serbia’s image remains the biggest 14 | Vojvodina Investment 2010 / 2011

Last year, you said that it was in Vojvodina’s strategic interest to create new opportunities for building up institutions, implementing EU standards, and improving overall economic cooperation through cooperation with European regions. At the time you also said that Italy, Germany, Austria, and

Slovenia were the biggest partners. Would you say that investors from these countries are among the leading ones in Vojvodina? Italy, Germany, Austria, and Slovenia remain our biggest partners and leading investors in Vojvodina. These countries still express the biggest interest for investing mostly in retail, financial, metal processing, and construction sectors. For instance, Slovenia has been our traditional partner and their investments have been growing year-on-year. Since 2003, thirty-two Slovenian companies in Vojvodina have made significant investments, which resulted in many new jobs. Some of these companies are: Cimos, Gorenje, JUB, Perutnina Ptuj, Trimo, and many others. Then there are Erste Bank and ATB Sever from Austria, German companies Stada and Linde Gas, as well as Italian companies Pompea and Fondiaria. According to a survey conducted by VIP, the biggest objections that investors in Vojvodina have pertain to customs regulation, having to wait a long time for building and other permits, and unfair competition. Can Vojvodina’s government help remove these obstacles? The objections that you have mentioned could be deemed as compliments for the provincial administration as well, since none of them relate to the competencies that the Province has. When a potential investor draws our attention to a certain problem, we insist that state authorities and other government levels deal with that problem as efficiently as possible. How much say did Vojvodina have in selecting the ‘economic ambassadors’ who were ultimately chosen by the Ministry of Economy? I have to say that Vojvodina had no say in this matter, and I would like to point out at the same time that when we saw the names and CVs of the chosen candidates, we came to the conclusion that all of them were professional and educated people who came from entire Serbia, including Vojvodina.

INTERVIEW

BRANISLAV BUGARSKI, CEO OF VOJVODINA INVESTMENT PROMOTION - VIP

SATISFIED INVESTOR By Ana STOJANOVIĆ

n the last few years, the Vojvodina Investment Promotion - VIP has been working hard on projects geared towards attracting as many foreign investors to Vojvodina as possible. In order to illustrate just how successful the Fund has been, let us say that not a single company that the Fund negotiated with back in 2008 has withdrawn its planned investments in 2009. In the words of the CEO of Vojvodina Investment Promotion, Branislav Bugarski, foreign investors insist mostly on having a predictable business environment and adhering to agreed deadlines. “One of the biggest obstacles we still have to deal with is the poor image that Serbia has in the eyes of foreign investors,” Bugarski says for the Vojvodina Investment Guide.

Foreign investors ﬁnd the following areas the most appealing for investing: agribusiness, including the food processing industry, metal processing and machine building, the automobile-related industry, and the ICT sector 16 | Vojvodina Investment 2010 / 2011

Many people agree that last year was one of the toughest ever. What is your view of 2009 in terms of foreign direct investments made in Vojvodina? Has something changed for the better when it comes to investments in the third and fourth quarter, bearing in mind that the beginning of the year failed to live up to expectations? 2009 was definitely an exceptionally difficult year. Unlike 2008, which was very successful for us because we had many meetings with potential investors, in 2009, especially in the first few months, the meetings were few and far between. This changed for the better in the Q4 when we began researching new projects which we continued in 2010 too. We are very proud of the fact that we managed to keep the projects that we agreed on in 2008, and in 2009, signed relevant contracts, like projects implemented by Grundfors and Bernardi. In mid-2009, you promoted an extensive investment made by the Bernardi Company in the municipality of Pećinci. How is this investment progressing?

S - BEST REFERENCE To tell you the truth, the progress has been very slow. There are several reasons for that, one of them being the global economic downturn. Banks withdrew from certain markets and have been exercising a very conservative policy, which impeded implementation of this project. There have been a few other challenges that affected the speed at which the project has been implemented, but we are hopeful that in the following few months, we are going to see concrete steps made on the development of such a large project, which is significant not only for Vojvodina, but the entire Republic of Serbia too. Has the announced investment by Grundfos in Inđija come through? The first stage has been implemented, a contract on land lease has been signed, and the transfer of funds has been executed. We are waiting for the investor to draw up its planning documentation and start building. We don’t know as yet when exactly that is going to happen, but we can confidently say that the investor is very dedicated to implementing this project, and so we expect that investor will resume its project activities quite soon. Is Vojvodina still the most appealing investment destination in Serbia? In your opinion, what has contributed the most to that? Is it the infrastructure, efficient local administration, or something else? It is actually the synergy of all the things you have mentioned. Vojvodina is closest to the European market, which suits investors. Vojvodina’s infrastructure is well-

VIP’s stand at the Investexpo Fair in Novi Sad, 2009 developed, and the work force is readily available, credible, and productive. All of these aspects contribute to investor success and this is why none of them have yet withdrawn from Vojvodina.

The companies from the Far East can supply both the European and Russian market from Vojvodina What economic branches do you think are the most interesting to investors? Foreign investors still find the following areas the most appealing for investing: agribusiness, including the food process-

VIP’S PLANS FOR 2010 rimarily, we need to implement projects that we already have in the pipeline, which doesn’t depend only on us, but on the investors too. We do hope that we are going to be able to implement most of them. We also hope that we are going to find a sufficient number of new projects to be implemented in 2011. If we consider the information and signals we have been getting from investors, the investment climate will improve and we could count on more projects being realized in 2011. In addition to already working on several projects, we are getting ready for 2011 which, we hope, is going to be even more successful.

ing industry, metal processing and machine building, the automobile-related industry, and the ICT sector. We expect Jugoremedija to be privatised at a certain stage, and, by doing so, we are going to get another important partner in Vojvodina’s pharmaceutical industry. These are the sectors where we can accomplish good results. What municipalities are the most appealing to potential investors at the moment? It is very difficult to answer that question since it is not easy to ascertain which municipality is more interesting to investors. If we are talking about project type, an investor would mostly go for a municipality that has a long tradition in the economic branch that he plans to invest in here. Today, almost all municipalities in Vojvodina have at least one foreign investor present. Not all of them, but most of them. What are the issues that potential investors insist on talking about with VIP? Above all, foreign investors want to be given precise information and have reliability in doing and planning their business operations. Another important prerequisite is sticking to deadlines, i.e. if they are told Vojvodina Investment 2010 / 2011 | 17

INTERVIEW

Presenting Vojvodina’s potentials to representatives of 70 companies, members of the Japanese Chamber of Commerce, 26th March, PriceWaterhouseCoopers, Prague. that something will be done within a certain time framework, this is how it should be. This is what every foreign investor insists on. Of course, they have their own criteria on which they base their decisions when choosing a particular location. Investors are well aware that our legislation is slowly but surely being harmonized with that of the EU, which is very important, since that is an area where they are looking for a chance to be even more competitive via having their production in Vojvodina. What obstacles do you usually face when negotiating with investors? The most difficult thing to do is to get to that initial meeting and a chance to present Vojvodina as an investment destination. However, once we manage to do that, when we show them the investment opportunities, the chances and advantages, coupled with a personal visit from them, our job becomes much easier. One of the biggest obstacles that we still have to deal with is the poor image that Serbia has in the eyes of foreign investors. Hence, it is very important that they hear everything and see for themselves how business is being done here and how many foreign companies are satisfied with their operations here. Has Vojvodina been given a carte blanche to bring foreign investors here and what are the problems that you have to deal with in that respect? Of course, it does. Everybody in Serbia is given leeway to bring investors, as long as 18 | Vojvodina Investment 2010 / 2011

that is done in line with the relevant legislation, which is the same everywhere in Serbia. The support instruments provided by the provincial government are an added advantage. Also, the services that VIP renders in Vojvodina are an instrument that the government of the Autonomous Province of Vojvodina has wisely created in order to raise the province’s competitiveness.

Today, almost all municipalities in Vojvodina have at least one foreign investor present What are you doing to prepare for EXPO 2010 and what are your plans for promoting Vojvodina at Far East markets? As things are at the moment, at EXPO 2010, we are going to exhibit at the joint stand of the Republic of Serbia. This is the stand where all exhibitors, whether we are talking about the city of Belgrade, Vojvodina, or other parts of Serbia, will be individually profiled. We think that this is a very good presentation model. With regards to the Far East, we do have a certain vision and we want to present Vojvodina as a good investment destination mostly to Chinese and Japanese companies. We have been already given an opportunity to do that. We had an

excellent feedback following our presentation for Japanese companies in the Czech Republic, and most recently, the Japanese companies that are operational in Austria too. The companies from the Far East can supply both the European and Russian market from Vojvodina. I’ll give you a few positive examples of that – Japan Tobacco International, Alltech Fermina’s joint investment in Senta, Mitsui and Asahi Brewery (yeast production), as well as a joint venture by the Chinese company, YTO Corporation and Agrovojvodina Mehanizacija, which are going to produce YTO tractors and export them to the EU market. These are all good models that we use as examples for potential investors. How big of an investment influx do you anticipate and what are the most important aspects in this respect? It is really a thankless task to give such estimates. This doesn’t depend solely on VIP, but there are many factors that have a bearing on the size and number of investments made. In the period that is ahead of us, this will also depend on how fast the European and Russian markets recover, how quickly the banking sector will recover, and many other things. Let me mention companies like Fresenius and Carlsberg which have decided to reinvest here and extend their existing production facility. This is very important information for us. As I said, it is not wise to speak about numbers, but, once a project is completed, I would be more than willing to discuss them.

NETWORKING SERBIA 2010 May 21st, 2010. Crystal Ballroom, Hyatt Regency Belgrade

WIRELESS & DIGITALISATION STRATEGY UP TO 2012 Raising Serbian competitiveness regionally and worldwide by using IT KEY NOTE SPEAKERS: • Mrs. Jasna Matić, Minister for Telecommunications and Information Society • Mr. Nebojša Vasiljević, Deputy Minister for Information Society, Ministry of Telecommunications and Information Society • Representatives of the largest telecommunications and IT companies CONFIRMED SPEAKERS 1. Dr Jovan Radunović, President of the Managing Board, RATEL 2. Mr. Goran Ćirić, Director EP of PTT Communications “Srbija” 3. Mr. Slobodan Nedeljković, Assistant to the Minister and Head of Sector for Analytics, Telecommunication, and Information Technologies, Ministry of Interiors of the Republic of Serbia 4. Mr. Klod Kolaro, General Manager, ORACLE 5. Mrs. Iris Džeba, General Manager, IBM 6. Mr. Goran Obradović, General Manager, CISCO 7. Mr. Vladimir Popović, General Manager, SAP 8. Mr. Nenad Saković, General Manager, NES Communications, Premium Distributor of Siemens Enterprise Communications GmbH Munich THEMES: • How can we make Serbia more competitive in the huge market of information technologies? • Strategy and Action plan for the development of broadband access in the Republic of Serbia up to 2012. • Faster harmonization with EU regulations and more efficient application of the law on telecommunications.

For more information on participation and event details, please contact: Tel: +381 11 308 99 77; Fax: +381 11 308 99 88; v.marinovic@aim.rs

SURVEY

COMPETITIVENESS OF ECONOMY OF VOJVODINA AND SERBIA

SPECIALIZATION REQUIRED Export strategy should be based on a change of export structure from products with less additional work towards ﬁnal products and products of higher stages of processing

By MSc Valentina IVANIC, Director of Centre for Strategic Economic Studies “Vojvodina-CESS,” Novi Sad

hen it comes to competitiveness, Serbia has been ranked 93rd among 133 countries, according to the findings of the World Economic Forum1. Such a ranking places the country in the efficiency-driven competitiveness stage. It is interesting that among countries of the former Yugoslavia, Slovenia is the only one in the most advanced development stage, i.e. innovation-driven. Each development stage points to a country’s receptiveness for certain type of investments,

but also to the key factor that improves it, as well as to policies and measures that national and regional governments have to and need to undertake in order to be competitive.

FDIs are the factor that the interviewed entrepreneurs considered to strengthen the competitive positions of both Vojvodina and Serbia Each country used to be in the initial, i.e. the so-called resource-driven stage of economic development at the beginning and used to attract “assets-seeking” type of investments, the motives of which are

INNOVATION hen we talk about non-price competitiveness factors, innovations are only one of them, and only 6.6% of companies have developed this activity to a significant extent. The survey shows that 63% of companies in Vojvodina use basic quality control, while more advanced quality-control systems, such as product testing and TQM, are used by 14.35% and 17.9% respectively.

20 | Vojvodina Investment 2010 / 2011

exhausted once the stock of cheap labour is used up, along with stocks of natural resources (oil, gas, etc.). Since the 1960s, when world trade started to be dominated by industrial products, the factors determining the competitive position of nations have changed from price to non-price competitiveness factors. Non-price competitiveness factors include technology, innovations, quality, standards, and design. As an economy becomes more underdeveloped, or as it approaches the stage of resource-driven competitiveness, it becomes more and more inclined to the concept of pricebased competitiveness. However, natural resources can be exhausted over time, while human capital is brain-drain prone, so that the concept of resource-driven competitiveness is not sustainable in the long run. Hard infrastructure (roads, railroads, airports), market economy institutions, macro-economic stability, investing into health care system, and elementary education are efforts that countries in the stage of resource-driven competitiveness

invest in order to become more receptive to “assets- seeking” investors. Serbia is currently in the stage of efficiency-driven competitiveness and this makes it receptive to “market-seeking” invest-

ments. In the efficiency-driven stage of competitiveness, we notice a trend to move from price-based competitiveness towards quality-based competitiveness. FDIs are horizontal in this stage and they are motivated by the need to satisfy local demand. Policies that governments undertake in this stage are directed towards improvements of the commodity markets, flexibility of the labour market, improvement of the financial market, as well as high (university) education and training. In the efficiency- driven stage of competitiveness, the capacity of companies to take advantage of existing technologies is also very important. Another highly important competitiveness factor in the efficiencydriven competitiveness stage is market size, since thanks to the principle of economy of scale, market size affects productivity. When it comes to small economies such as Serbia, exports are also seen as one of the ways to substitute low domestic demand. Talking about Serbia and motives of market-seeking investors, we have to point out that apart from a population of over 7 million inhabitants (one of the largest markets in central and south-east Europe), one of the arguments is also the membership in CEFTA integration (a market of about 30 million people) and the Free Trade Agreement signed with Russia, which enables entrance into the Russian market with over 150 million consumers. If exports are seen as the way for small economies to overcome problems of the

size of their own market and continue to develop using the advantages of economy of scale, the issue of competitiveness of economies of Serbia and Vojvodina can be raised as an issue of the way in which Serbia and Vojvodina are included in the international division of work. The analyses of the structure of foreign trade exchange of Vojvodina2 in the period from 1990 to 2008 reveal a non-competitive export structure, with a significant share of the zero (food and live animals) and sixth (products grouped according to material) sectors that consists mainly of different semi-processed products. The share of the zero sector grew from 12.3% in 1990 to 17.3% in 2008. Within the analysed period, the share of the fifth sector (chemical products) also grew from 18.5% to 20.6% in 2008, while the share of the sixth sector increased from 13.3% in 1990 to 14.1% in 2008. Compared to 1990, there was a decline in the share of the seventh sector (ma-

chines and means of transport) and the eighth sector (different finished products), which produce products of a higher stage of processing. The share of the eighth sector also declined from 21.9% in 1990 to 13.3% in 2008. If we analyse import structure, there is an unfavourable decline in shares of all the processing industry sectors, which points to the high import dependency of the AP of Vojvodinaâ&#x20AC;&#x2122;s economy. The average share of imports of equipment made up only 18.1% within the last three years, which means that import structure should be improved towards a more significant share of equipment in overall imports within the forthcoming years. Such a change in import structure would affect changes in export structure in the medium run towards an increase of products with a higher value added share. The analysis of the specialisation index of Vojvodinaâ&#x20AC;&#x2122;s exports at the level of groups of products shows that ex-

SECTORS 0 Food and live animals 1 Beverages and tobacco 2 Raw materials,except fuels 3 Mineral fuels and lubricants 4 Animal and vegetable oils and fats 5 Chemicals

1990 -0,40 -0,51 -0,07 0,47 -0,22 -0,23

1998 -0,15 -0,79 0,09 0,45 0,53 -0,09

2008 0,46 0,25 0,17 -0,85 0,78 0,05

6 Manufactured goods classiďŹ ed by materials

-0,24

-0,40

-0,41

7 Machinery and transport equipment 8 Miscellaneous manufactured articles 9 Commodities and transactions,n.e.s.

-0,11 0,30 -0,99

-0,54 0,08 -0,94

-0,26 0,06 0,10

Revealed comparative advantage of the APV / RCA of the APV - trade with the EU (1990,1998,2008)

Vojvodina Investment 2010 / 2011 | 21

INTERVIEW YEAR

Export

Import

1990

0,025

0,131

1998

0,082

0,085

2006

0,029

0,082

2007

0,023

0,059

2008

0,023

0,076

ports had a lower density (concentration) than imports during the analysed period (1990-2008), which is opposite to what had been expected for a small country that should have a higher export density (concentration) rate. Theoretical expectations show that the smaller a country is, the specialisation index of exports should be higher than the specialisation index of imports. The explanation for such expectations is based on the assumptions that a small territory disposes of more modest resources and that it has a small market, which means that it cannot successfully develop all branches of economy, and consequently cannot accomplish successful diversification of production and exports. Michael Porter also claims that there is no country that can be competitive in everything and hence the expectations related to small countries should go in the direction of specialisation, namely committing to

22 | Vojvodina Investment 2010 / 2011

IMPORT STRUCTURE f we analyse import structure, there is an unfavourable decline in shares of all the processing industry sectors, which points to the high import dependency of the AP of Vojvodinaâ&#x20AC;&#x2122;s economy. The average share of imports of equipment made up only 18.1% within the last three years, which means that import structure should be improved towards a more significant share of equipment in overall imports within the forthcoming years. Such a change in import structure would affect changes in export structure in the medium run towards an increase of products with a higher value added share.

certain groups of products that are competitive on international markets. During the observed period (19902008), specialisation indexes of exports (0.025 in 1990, and 0.023 in 2008) are lower than specialisation indexes of im-

The survey on competitiveness factors of Vojvodinaâ&#x20AC;&#x2122;s economy shows that exports are not of such a high significance for the sampled companies ports (0.131 in 1990 and 0.075 in 2008), which points to the fact that Vojvodina has no recognisable product for exports

that would have their place on the international market. The RCA3 analysis results in groups of products that are potential export growth holders and that Vojvodina has a comparative advantage with. During the observed period from 1990 to 2008, there is an evident highest share of products from the zero sector (food and live animals) and the first sector (drinks and tobacco). During the same period, the share of the processing industry declined (sectors from 5 to 8). Comparative advantages have been realised primarily with primary products. Such export structure is not and cannot be a long-term solution, in particular when it comes to agriculture that is very important for Vojvodina since comparative advantages are easily lost in the branch that is exposed to climate conditions. Export strategy should be based on the change of export structure from products with less additional work towards fi-

nal products and products of higher stages of processing. The survey on competitiveness factors of Vojvodina’s4 economy shows that exports are not of such a high significance for the sampled companies. More than 40% of those interviewed said that their exports made up 10% of their overall sales. Only 18.52% of companies that do exports said that their exports were higher than sales on the domestic market. Naturally, it should be taken into account that sampled companies are dominantly small and medium-sized enterprises and that they still have lower significance in foreign trade operations of developing countries. When we talk about non-price competitiveness factors, innovations are only one of them, and only 6.6% of companies have developed this activity to a significant extent. The survey shows that 63% of companies in Vojvodina use basic quality control, while more advanced quality-control systems, such as product testing and TQM, are used by 14.35% and 17.9% respectively. FDIs are the factor that the interviewed entrepreneurs considered to strengthen the competitive positions of both Vojvodina and Serbia, and even 74.7% agreed with that, while 80% of the interviewed saw FDIs as a source of technological progress. The information that interviewed entrepreneurs ranked competitiveness factors at the level of the branch they conduct their business

When it comes to competitiveness, Serbia has been ranked 93rd among 133 countries, according to the findings of the World Economic Forum1 activities in by significance, and that they marked price competitiveness as a significant competitiveness factor (second by significance), is very important since it shows that competition among companies in Vojvodina is still based on price competitiveness and operating costs reduction strategies, instead of on strategies to improve design, quality, new technologies, and innovative approaches to production (non-price competitiveness factors).

SUCCESS IS OUR STRATEGIC ORIENTATION

n 2010, the Novi Sad Fair continues to implement its strategic orientation by organizing fairs intrinsically linked to the country’s development and progress, aimed at a business community that recognizes that a fair is the best place for promotion. Our aim this year is to continue the activities that are going to position the Novi Sad Fair as the partner to regional economy and promote it as a meeting place for economic collaboration. It is especially worth mentioning that domestic and foreign business and economic organizations, funds, state institutions, companies, state and private universities, as well as many other important players in Serbia’s integration into the European market, are all partners of the Novi Sad Fair. The Novi Sad Fair has resources and the potential to become a development centre, a place where European values like corporate social responsibility are fostered. The Novi Sad Fair is also the oldest fair in the country, a safe anchor to its partners, always ready to use its long experience and substantial know-how in the right direction. Thanks to activities carried out by the Central-European Fair Alliance (CEFA), the Novi Sad Fair has managed to establish good cooperation with other fairs to implement joint projects. In that light, as of 2011, the Fair will establish collaboration with partners from Slovenia, who will organize four specialized exhibitions. Specialized events that take place in Master, the Fair’s conference centre, are not only important for the Fair itself, but the centre has become a new destination for conference tourism, making it the country’s leader in this area.

Vojvodina Investment 2010 / 2011 | 23

CORPORATE

DR. JUR. CHRISTIAN OTTO NEU, C.E.O. OF “DDOR NOVI SAD”

STRONG COMPETITION n 2007, Fondiaria SAI bought an 83.3% share in what was then the second-largest insurance company in Serbia, DDOR, for 220 million euros. The experience with privatisation of this insurance company, the overall insurance sector in Serbia, and the company’s operations in this country were just some of the topics that we talked about with Dr. jur. Christian Otto Neu, C.E.O. of “DDOR Novi Sad.”

It seems that 2010 will be the year of the insurance sector in Serbia. What is your view of the current situation in this sector in Serbia? In the previous year, the insurance sector marked a 2.6% growth, which is less than what was expected. This was, of course, caused by the world economic crisis. The crisis is not over yet and unfortunately it will not end anytime soon. Still, there might be some modest overall growth in the sector. Moreover, we think that some of our competitors, whose business models look totally unsustainable to us, will have to change their underwriting policies significantly and we will take advantage of their - by now very obvious – weaknesses.

The regulatory and supervisory bodies have undertaken a series of steps in terms of adapting standards in Serbian insurance to EU standards, but further steps await them

Despite a difﬁcult macroeconomic environment and an ambitious restructuring process, our operating results are acceptable. We have cleaned our portfolio and considerably strengthened our balance sheet 24 | Vojvodina Investment 2010 / 2011

In 2007, Fondiaria SAI bought an 83.3% share in what was then the second-largest insurance company in Serbia – DDOR Novi Sad – for 220 million euros. To what extent are European insurance standards applicable in Serbia today? The regulatory and supervisory bodies have undertaken a series of steps in terms of adapting standards in Serbian insurance to EU standards, but further steps await them. For example, the Law on Compulsory Traffic Insurance has been passed, as well as Changes to the Insurance Law. The regulations are generally good, although sometimes a bit formalistic insofar as they do not permit modernization of operations and cost saving where it would be possible. That being said, I am not certain whether it was necessary to separate insurance and reinsurance activities, which we had to do. The obligation of separating company operations to life and non-life has been prolonged over an additional two years, but this is current practice in European countries as well. Nevertheless, the life insurance market in Serbia is still too small and undeveloped bear the separation, which entails increased expenses. These ultimate consequences will

in the end be borne by the client, i.e. the insured. Do people and insurance companies in Serbia need to be educated with respect to insurance, bearing in mind that the number of life insurance premiums here is the lowest in the region? Investments into insurance in Serbia are generally lower than in other countries, only around 80 euros per capita per annum, which is several dozens of times less than in developed European countries. It is necessary for the industry to invest into informing citizens on the importance of insurance, particularly life insurance. Also, we expect the state to undertake some steps when it comes to introducing tax relief with regard to life insurance. Three years later, how successful do you think the privatization of DDOR was? On taking over DDOR Novi Sad we did not encounter anything unexpected in the company itself, because we had conducted a very thorough analysis prior to entry. We were, however, surprised by the change in the macroeconomic situation in the country and in the world. We could not have anticipated the crisis when we decided on entering this market. I believe that the Serbian market is not what it once was, and that it will not be for a long time. All foreign investors who came to Serbia in previous years, including ourselves, anticipated market growth based on foreign investments, which unfortunately dried up, but this is not only Serbia’s problem, but the problem of the entire region. However, we are not complaining because the situation is the same for all; we just need to adapt to it.

What obstacles did your company have to overcome at the very beginning of its operations in Serbia? Upon arriving in DDOR Novi Sad, we carried out a detailed restructuring process, because with the performance that it had, this company could not adequately respond to the challenges that arose with the arrival of fierce competition. We decided not to renew insurances with those clients who had not paid their premium in the previous period. We cut down those lines of operations that were not sustainable in the technical sense, primarily referring to commissions for the sale of particular insurance classes, which were too high and inadequate. Finally, DDOR was very active earlier, and one of the two largest companies in industrial insurance. This market has significantly

The competition is strong, and in some lines of business it clearly goes beyond the limits of reason diminished because many people have chosen to purchase lower coverage due to the crisis or with the aim of cost reduction. Market share and turnover are very important issues for any company, but ultimately the final operating result is the most important, and it is positive in DDOR. How do you view your competition in the insurance sector? The competition is strong, and in some lines of business it clearly goes beyond the limits of reason. In MTPL we see what I think are cases of desperate cash flow un-

derwriting, i.e the subscription of underpriced or over-commissioned risks just to get the necessary cash to pay old claims. This cannot go on for a long time. Some of these players might be taken over by bigger entities, some may become casualties. In your opinion, what needs to be changed in the Insurance Law? Local legislation will necessarily follow European developments. Most importantly, we will see the substitution of actual static and formula-driven solvency requirements by a modern risk- based capital management approach. Are you satisfied with your company’s business results in 2009, bearing in mind that this was one of the most difficult business years so far? Yes, we are quite satisfied. Despite a difficult macroeconomic environment and an ambitious restructuring process, our operating results are acceptable. We have cleaned our portfolio and have considerably strengthened our balance sheet. In my experience, when the market is facing a crisis, it is wise to exercise a restrictive underwriting policy. We do not have cash flow problems and hence we are not compelled to subscribe underpriced risks. We are in good shape. However, we will continue and even intensify our efforts to increase the efficiency of our company. What kind of insurance premiums are you going to focus on in 2010? We will focus on the development of new products from the group of life insurances, on maintaining our position, and spreading to the Central and South Serbian market in the area of motor vehicle insurance and other retail products.

CORPORATE SOCIAL RESPONSIBILITY DOR Novi Sad is engaged in corporate social responsibility. For example, “DDOR Novi Sad” will invest over 15 million euros into increasing traffic safety, which is the largest non-state investment of that kind ever. “DDOR Novi Sad” has decided to enable several hundred thousand drivers to complete safe-driving training in the upcoming years. The training involves facing the most critical situations at actual speeds in controlled surroundings, and learning how to react during them, thereby preventing danger. We are realizing this program in cooperation with the National Driving Academy. Moreover –as everyone knows– we are seriously sponsoring dozens of cultural, sport, and other social events all over the country.

Vojvodina Investment 2010 / 2011 | 25

INTERVIEW

REMER LANE, MARKETING AND SALES DIRECTOR, USAID AGRIBUSINESS PROJECT

‘BREAD BASKET OF EUROPE’ Serbian producers and processors need to focus on the facts that they are not direct competitors, that the global market is big enough for everyone, and that only through coordination will they be able to achieve greatness and success By Ana STOJANOVIC ou can now buy Serbian retailpacked mushrooms in Tesco in the UK, in Whole Foods in the US, and every year New York restaurants proudly serve fresh Serbian golden chanterelle mushrooms,” said Remer Lane, USAID, for our Guide.

In the last seven years that you’ve spent in Serbia, you have been engaged in putting together and implementing an agribusiness strategy. How would you sum up your experiences so far? In one word? Incredible! At the request and with the support of USAID, I came to Serbia for what was supposed to be for an initial three-week assessment for the fruit industry in 2003. What I found turned out to be so much more. I like to say it’s once in a lifetime that you find yourself in the right place at the right time. Serbia was definitely the place and the time was right. People were eager to do business and the country is blessed with an amazing array of natural 26 | Vojvodina Investment 2010 / 2011

agricultural resources. My origins are in the private sector and I have spent most of my career in the food business. I was able to immediately connect Serbian companies directly with buyers, by-passing traders and bringing more profit for Serbia’s value.

We will be working to attract foreign buyers from all over the region and Europe to come see what amazing values Serbia has to offer Do you think that the Serbian government has a long-term agribusiness strategy or are we just talking about occasional palliative campaigns? Yes, the Serbian Ministry of Agricultural does have a strategy for agriculture based

around EU integration, but it’s important to point out that it’s not always just the responsibility of the Serbian Government. Agricultural strategies are the primary responsibility of the private sector. The government is there to assist and facilitate that strategy wherever possible to help make it successful. For example, in Egypt, my company, Booz Allen Hamilton, was hired by the Horticulture Council, a group of private businesses who had the desire to increase their exports. We prepared an in-depth analysis of Egypt’s resources, the global market for every horticultural crop that could be produced in Egypt, and identified the crops Egypt should produce to achieve their desired COOPERATION SAID has enjoyed an excellent rapport with the Ministry of Agriculture since 2003, working on joint initiatives to address policy constraints, standards implementation, and to facilitate greater market access for Serbian agribusinesses.

goals for increased exports and profitability. Following this strategy development, we coordinated with the Egyptian Ministries of Agriculture and Trade on the implementation plan that was needed to address policy, logistical constraints, agribusiness services, and natural resource constraints that were necessary to achieve the goal. It was not the responsibility of the government to develop the strategy. The private sector must take the initiative and ownership of the strategy if it’s to be successful. Otherwise, it’s just another government directive with no buy-in from the private sector and doomed to failure. Serbia is no exception to this process. In your opinion, what should be the main points in a long-term agribusiness strategy for a country like Serbia? First and foremost, the direction must come from the private sector. It must be their initiatives supported by legitimate research with viable crops that focuses on long-term competitiveness and the implementation of value-added processing. Serbian companies must invest in developing greater value in Serbia rather than exporting raw materials to other countries. Many experts and politicians say that Serbia could easily become one of the agricultural leaders in Europe. Is this a branch that Serbia should focus on? Absolutely. As I stated earlier, Serbia has all the natural resources to be successful. There are reasons that Vojvodina is called the ‘Bread Basket of Europe’ and Sumadija is called the ‘Fruit Basket of Europe.” Serbian producers and processors need to focus on the facts that they are not direct competitors, that the global market is big enough for everyone, and that only through coordination will they be able to achieve greatness and success. We often hear that Serbia could reduce its foreign trade deficit by increasing agricultural export. Do you think the same, bearing in mind that you have assisted many successful Serbian companies in generating trade surplus? I’m not an expert of foreign trade deficits, but certainly one of Serbia’s greatest assets is agriculture and food. It has sustained itself through the economic crisis as one of

the sector leaders in maintaining its trade surplus. However, Serbian products are losing markets and we may have seen the peak. For instance, Serbian competitiveness in frozen raspberries has taken a hit. While export values are up due to higher global

Agricultural strategies are the primary responsibility of the private sector market prices, volumes are significantly down and Serbian exporters are their losing market share to Chile and Poland who are selling less expensive fruit. In my previous experience as a buyer, when the price of a fruit cut too deeply into my profit margin, I began the look for new sources, less expensive alternatives, or even eliminating my purchasing that fruit all together. If Serbia is to continue to be known as a country of raspberries, producers and processors need to work together to address the lack of competitiveness and develop a long-term growth strategy. Both Serbia and Vojvodina used to export mainly primary agricultural produce, and even to this day, we are focused

on exporting wheat and maize. Should we continue to emphasize these two farming cultures or should we also focus on exporting semi-finished and finished agricultural products? Don’t forget sugar. Serbia is reported as being one the most competitive countries in Europe in sugar production. And what about soy? Serbia’s soy enjoys one of the best reputations in Europe. Not to mention the seed business. People come from all over the world to buy Serbia’s grain seeds. I had the pleasure of receiving an invitation to Zemun Polje’s annual presentation. I met Egyptians, Jordanians, Ukrainians, Germans, and many other nationalities. I’m embarrassed to say that I was impressed. I learned a great deal that day about the high respect the Serbian seed business enjoys around the world. Serbian agribusinesses must diversify their businesses to not only supply bulk FDI IN VOJVODINA egarding foreign direct investment results, I mentioned earlier an American investor who has invested in fruit processing in Vovjodina. They are the single largest exporters of fruit to the US market where it is supplied to all major cereal companies. They have invested over $20 million and are now engaged in increasing their capacities.

Vojvodina Investment 2010 / 2011 | 27

INTERVIEW commodities such as those listed above, but to include value-added product ingredients and finished products in order to maintain competitiveness, increase values received by Serbia, and better manage risk through price fluctuations. Have foreign investors expressed any interest in investing in this branch? Yes and many are here now. There’s a company in Vojvodina from the US that has now invested over $20 million in fruit processing. We’ve received inquiries from the US and Canada about Serbia’s soy business. European companies are the largest investors in Serbia’s sugar industry. In the dairy sector through Canadian investment, one of the largest dairy herd operations in Europe is now located in Serbia. These are just some of the larger interests, but there is also a great deal of mid-sized investment in fruit processing, vegetable production and processing, and even confectionary. One of the hold-ups has been the prohibition on foreign ownership of agricultural land. That has now been remedied and we expect an increase in inquiries for foreign investment in agribusiness in Serbia. What are the results and experiences of companies that have already invested in the branch? USAID has been assisting Serbian agribusiness with a number of services for the last seven years. It’s been an incredible experience to see how companies have de-

were paramount to assisting Serbian mushroom companies to take the risk of venturing past their historical trading partners to capture more value for Serbia. Wild forest mushrooms are one of the best examples of a product from Southern Serbia where USAID’s assistance has been far-reaching, affecting the unemployed whose only source of potential income was from harvesting wild products for processors who were able to increase their business opportunities and profits and thereby their employee numbers and wages. You can now buy Serbian retail-packed mushrooms in Tesco in the UK, in Whole Foods in the US, and every year New York restaurants proudly serve fresh Serbian golden chanterelle mushrooms.

There’s a company in Vojvodina from the US that has now invested over $20 million in fruit processing veloped and grown into some of the major agribusiness and food companies in Serbia today. For example, wild forest mushrooms have been a traditional delicacy in Serbia and their value has been captured by Italian Porcini Re-Packers in Italy. Exported in bulk to Italy, Italian packers would brand the porcini as Italian, sell them locally, and export them at several times the purchase price. USAID assisted Serbian processors to learn more about the international market and develop direct contacts with buyers in the U.S. and Europe. Standards, packaging, market trainings, and market linkages 28 | Vojvodina Investment 2010 / 2011

Could you tell us something about your current projects and your plans for next year? USAID is two and a half years into the USAID Agribusiness Project. It’s a five-year project funded with $24 million from the American people. It’s focused on 5 agribusiness sectors: berry fruits, tree fruits, vegetables, wild herbs and mushrooms, livestock, and dairy. We started with a market driven value-chain analysis to identify the weaknesses in each sector and then designed our assistance to address those weaknesses and help improve the overall competitiveness of

each. I am pleased to say that our efforts and results are far ahead of the five-year timeline. Our financial goal was to achieve $72 million in new sales for Serbian companies over five years. Regardless of the financial crisis, this goal has been achieved in just 2. 5 years. This is quite a compliment to Serbian agribusiness. However, it has not been without problems. As I said earlier, strategies must be business-driven to get longterm results and sustainability. Only now, after working with individual companies on market access and education and to obtain the above sales results, have the companies recognized the need to associate themselves for a greater sector purpose. This year, Serbian companies began to form sector associations that will become the driving forces of their industries in the coming years. These associations will develop their sector strategies, manage their local and export promotion, and directly lobby the government on policy issues that affect them. Over the next year, we will continue to support the development and sustainability of these associations, enhance our coordination on export promotion with SIEPA and the Chamber of Commerce, and launch “SOFRA,” a new food show in Belgrade. Serbia is the center of Southeastern Europe and we want to build on that location to develop Serbia into an agribusiness hub. The fair will be in Belgrade on September 23 – 25 at Expo XXI. We will be working to attract foreign buyers from all over the region and Europe to come see what amazing values Serbia has to offer.

ALUMIL

FIRST GREEK GREENFIELD INVESTMENT ALUMIL is the largest aluminum extrusion group in Greece, with its main industrial complex and head ofďŹ ces situated in the Industrial Area north of Thessaloniki. Years of experience and innovative solutions have made ALUMIL the worldwide leading provider of profile systems for architectural and industrial use. Following years of successful operations on the Serbian market, in 2001 the management of the Alumil Company decided that it was the right time to invest in Serbia. Following a relevant survey, we came to the conclusion that Vojvodina offered the best conditions, namely an excellent

Rita I. Lozinsky, Managing Director of ALUMIL YU INDUSTRY a.d. awarded by Vladimir Malbasic president of Srem Chamber of Commerce geo-strategic position, infrastructure, and strong support from local authorities and relevant institutions. So, in the beginning of 2002, a contract on assigning a land plot in the Nova Pazova Industrial Zone was signed. This marked the beginning of the first Greek greenfield investment in Serbian industry, worth 20 million euros. Construction works were completed and production started in 2005. Today, Alumil YU Industry is a successful company, operating on an area covering 7 hectares of land and 20,000 square meters of industrial facilities, with 100 employees. 2008 Alumil YU Industry A.D. was awarded by the Srem Chamber of Commerce for successful development and business. In the upcoming years, Alumil plans to increase its production capacities by building another profile extrusion line and a new modern technology anodizing plant.

Vojvodina Investment 2010 / 2011 | 29

ADA

REGIONAL CENTRE OF METAL PROCESSING AND TEXTILE INDUSTRY Industrial zone is only 75 kilometres from Novi Sad, 150 kilometres from Belgrade, 25 kilometres from the E-5 motorway, 45 kilometres from the Hungarian border, and 65 kilometres from the Romanian border.

ZOLTAN BILICKI, PRESIDENT OF THE MUNICIPALITY OF ADA: “Investors can obtain all documents and permits required to begin work within 20 days’ time.”

he municipality of Ada is situated in North Vojvodina. It lies on the right bank of the Tisa River and belongs to Central Banat. It borders on the following municipalities: Senta, Čoka, Novi Bečej, Kikinda, Bečej, and Bačka Topola. Five towns and villages make up the municipality of Ada: Ada, Mol, Sterijino, Utrine, and Obornjača. Agriculture is the main economic branch here, along with the food processing industry. The municipality is the regional centre of the metal processing and textile industries. It covers an area of 228.6 square kilometres and it has 18,998 inhabitants, mostly Hungarians (76%) and Serbs (17%). Other nationalities make up 7%. The population’s employment structure is as follows: 39.18% of all employed people in the municipality work in processing industry, 31.13% in agriculture, 8.25% in trade, and 21.44% in other branches. The unemployment rate stands at 31%.

one-way regional railway track – BečejAda-Senta, which is currently not functional. There is also the Tisa River, which is open for two-way transport all year around. 800 metres from the centre of Ada, there is a well-designed marina for smaller boats. Also, 700 metres from Ada in the direction of the Tisa River on the right-hand side, there is a runway for small planes and a ground for aircraft models. INDUSTRIAL ZONE The industrial zone is only 75 kilometres from Novi Sad, 150 kilometres from Belgrade, 25 kilometres from the E-5 motorway, 45 kilometres from the Hungarian border and 65 kilometres from the Romanian border. The zone’s total surface is 105 hectares. The municipality owns 45 hectares (in Blocks 8 and 44, according to the general spatial plan), in addition to 40 hectares in the existing zone, while the rest, 70 hectares, is privately owned. The water supply lines, gas supply, electricity, sewage, phone lines, Internet, railway line, and a local road that leads to the R-122 regional road are all nearby. The current price of gas is 0.52 euro/m³ and of water 1 euro/m³, while the lowest land price is 1.1 euro/m². There are industrial plants in the vicinity which belong to ‘’BET SHEMESH Engines LTD’’ (foundry), ‘Potisje’ (tool and machine factory); ‘HEXAGON’ LLC; ‘Akotex’ (textile factory); ‘Panimpex’ (textile factory); Public Utility Company ‘STANDARD,’ and ‘Buza Coop’ (food processing factory).

Agriculture is the main economic branch here, along with the food processing industry

CONTACT Zoltan Bilicki, President of the Municipality of Ada 1, Trg Oslobodjenja, 24430 Ada Tel: +381(0) 24/852-106 Fax:+381(0)24/853-342 E-mail: predsednik@ada.org.rs Website:www.ada.org.rs Languages: Hungarian, English, German

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TRANSPORT INFRASTRUCTURE The municipality has a well-developed transport network. The R-122 regional road (Novi Sad – Horgoš) runs through the municipality from north to south, i.e. to state border with Hungary. The municipality of Ada is located east of the E-5 motorway and is connected to Svetićevo and Bačka Topola via the motorway which branches out into a local paved road running through the village of Utrine. The E-75 motorway is some 38 kilometres away. Local roads are of good quality, which is especially important for transit traffic and its re-location from the centre of Ada. When it comes to railway transport, the municipality has an

DEADLINES AND PERMITS Investors can obtain all documents and permits required to begin work within 20 days’ time.

ALIBUNAR

SIGNIFICANT TOURISM POTENTIAL The municipality encourages development of agriculture, industry, and tourism, as well as creating a favourable environment for advancing private entrepreneurship, and small and medium enterprises he municipality of Alibunar is located in the central part of South Banat, although administratively it belongs to South Bačka County. The municipality covers an area of 602 square kilometres. Geo-strategically speaking, the municipality is located at the intersection of roads leading from Belgrade to the state border with Romania, and from the border with Romania towards Zrenjanin and further on to the north. The municipality is made of 10 small towns and villages, namely: Alibunar, as the municipality’s centre, Banatski Karlovac, Vladimirovac, Dobrica, Ilandža, Janošik, Lokve, Nikolinci, and Seleuš. The municipality’s population is close to 23,000. The municipality of Alibunar has a well-developed network of main, regional and local roads like the E-94 main road (Belgrade – Vršac – state border with Romania), and regional roads leading to Zrenjanin and Plandište. There is a railway network also, with the main track Belgrade – Vršac – state border with Romania. MUNICIPALITY’S ECONOMY The municipality encourages development of agriculture, industry, and tourism, as well as creating a favourable environment for advancing private entrepreneurship, and small and medium enterprises. Bearing in mind its geographic structure, the municipality is mainly focused on agriculture. There are 44,000 hectares of arable land, with 34,000 hectares privately-owned. Crop farming, vegetable growing, and viticulture are the most developed here. The municipality has an excellent tourism potential with the Deliblatska Sand Pit being nearby, as well as bearing in mind its climate and environment.

INDUSTRIAL ZONE LOCATION 1: Industrial Zone 1 – Alibunar; Total area: 95 acres; Type of ownership: state property; Land purpose: industrial and business zone. LOCATION 2: Industrial Zone 2 – Alibunar; Total area: 3 acres; Type of ownership: state property; Land purpose: industrial and business zone. Industrial zones are registered as ‘undeveloped land’ and are adjacent to the regional road and international railway line. The sites have access to power, water, gas supply systems, telephone lines, and a sewage system. The sites are accessible by road. Land lease is possible and the required planning and regulatory documentation already exists. LOCATION 3: Industrial Zone 3 – Alibunar; Total area: 83 hectares, 60 acres; Type of ownership: state property; Land purpose: industrial and business zone. This industrial zone, also registered as ‘undeveloped land,’ is 3 km from the centre of town and is currently devoid of infrastructure. Access roads connect the site to the transport network and land lease is possible. LOCATION 4: Industrial Zone 4 - Banatski Karlovac; Total area: 2 hectares, 63 acres; Type of ownership: state property; Land purpose: industrial and business zone. This industrial zone, registered as ‘undeveloped land,’ is adjacent to the M-19 main road. Infrastructure connections are linked to neighbouring land plot. The site has direct access to roads and land lease is possible. The process of changing the purpose of the land to a work zone is in progress. INFORMATION FOR INVESTORS If an investor submits all required documents (location permit, project’s blueprint, proof of ownership, proof of paid land development fee and other required fees), the municipal authorities will issue a building permit in up to 8 days.

DANIJEL KIŠMARTON, PRESIDENT OF THE MUNICIPALITY OF ALIBUNAR: “If an investor submits all required documents, the municipal authorities will issue a building permit in up to 8 days.”

There are 44,000 hectares of arable land, with 34,000 hectares privately-owned

CONTACT

Slađana Vukajlović, Technical Secretary Trg Slobode 4 26310 Alibunar Tel: +381 (0)13/642-105 E-mail: alskupstina@hemo.net Website: www.alibunar.org.rs Languages: English and German

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APATIN

APPEALING INVESTMENT DESTINATION The municipality has an industrial zone situated on the banks of the Danube River, with 160 hectares of land and completed utility infrastructure. The land is entirely owned by the municipality.

DR ŽIVORAD SMILJANIĆ, PRESIDENT OF THE MUNICIPALITY OF APATIN: “The most important investment in the municipality is construction of an intermodal goods and transport centre and a port on the Danube River.”

he municipality of Apatin is located in West Bačka the most northwestern part of Serbia, It covers an area of 333 square kilometres and has 32,813 inhabitants. Apatin lies on the pan-European Corridor 7 (along the 42 kilometre-long section), while Corridors 10, 5, and 4 are all nearby, which makes Apatin a very accessible municipality. There is a plan to build a port that will have international status and will be included in the regional integral transport and logistics network. If we consider the municipality’s business, tourist, sport, and recreational facilities, Apatin is considered one of the most developed and most attractive municipalities in Serbia, also in terms of hunting, health, and sport tourism. The town has a spa and wellness centre, while a water park is going to be built in the Junaković Spa.

an industrial park. The most important investment in the municipality is the construction of an intermodal (goods and transport) centre and a port that will both employ between 2,000 and 3,000 people. A feasibility study has been written for this project in four languages. Apatin also has the first international marina in Serbia, which has 400 berths (120 especially made for yachts). Each berth has electricity, water, and lighting. Also, there is a floating petrol station. In addition to this facility, the municipality has a port for passenger ships. INCENTIVES FOR INVESTORS In addition to incentives for both domestic and foreign investors, as stipulated in relevant laws, the municipality provides incentives in terms of payment of utility fees, lease of construction lots, and exemption from paying spatial planning fees and building permits. Industrial branches suitable for investing are those that the Environmental Impact Studies considers environmentally friendly, as well as those stipulated in the Law on Classification of Business Activities.

The municipality has an industrial zone covering 160 hectares of land

CONTACT Contact: Snežana Milešević, local economic development coordinator 29, Srpskih Vladara, 25260 Apatin Tel: +381(0)25 / 772-122 / ext. 618 Mob: +381 (0) 69/2526-028 and +381 (0) 64 2169-941 E-mail: snezana.arh@gmail.com Website: www.soapatin.org Languages: Serbian, English, German and Italian 32 | Vojvodina Investment 2010 / 2011

MUNICIPALITY’S ECONOMY From 2002 to 2008, a total of 21 companies (out of 34) were privatised. According to the Municipal Economy and Finance Department, 15 companies are currently operational and they are mostly engaged in agricultural, food processing, and forestry activities. When it comes to ship building, there are 15 companies, 5 transport companies, and 5 construction companies. INDUSTRIAL ZONE The municipality has an industrial zone covering 160 hectares of land (owned by the municipal authorities), which also has an internal road and complete utility infrastructure on the zone’s outskirts (electricity, water, gas, sewage, cable TV, etc.). Also, there is the possibility of building a free zone and

PERMITS AND DEADLINES An investor can obtain required permits and documents in the shortest time possible, in line with legal deadlines. IMPORTANT INVESTORS The following companies are the most important investors in the municipality of Apatin: Interbrew – Belgium (Apatin Brewery), ATM Industrokomerc – Belgrade (a cold storage facility), Delta Agrar, A.D. Lučić – Prigrevica, KTC (Križevci Shopping Centre), the Plava Ruža catering company (investor Željko Rebrača), Italsvenska SPA – Italy, Fish Apetite, and others.

BAČ

INCENTIVES AND BENEFITS FOR INVESTORS According to the decision made by municipal authorities, the land development fee for facilities in industrial zones is reduced by 50% and this fee applies to the net surface of a constructed facility. he municipality of Bač covers an area of 365 square kilometres. The municipality’s territory is intersected by the Danube-TisaDanube Canal (DTD Canal), which connects the municipality to ports in Bogojevo and Novi Sad. The municipality of Bač is located at the crossroads of the Subotica-Bačka Palanka main road (M-18) and the Novi Sad-Bač regional road (R-102). Bač is in close proximity to the main transport routes, i.e. Corridors 10 and 7. The municipality is 62 kilometres from Novi Sad and 140 kilometres from Belgrade.

MUNICIPALITY’S ECONOMY The most dominant economic branch and the one that brings the biggest revenue to the municipal budget is certainly agriculture. Arable land covers a total of 24,000 hectares and this land is cultivated by agricultural companies, cooperatives, and individual farming estates. The processing industry takes second place, followed by retail, construction, and transport. The processing industry is mostly based on food processing (fruit and vegetable processing, bakery products, mini dairies, abattoirs, butcher shops, fodder production, etc.). One of the foreign investors that has launched a production here is the Slovenia-based company, Perutnina Ptuj. Also, there is a metal processing industry and electrical equipment production in the municipality. With regards to construction, there are quite a few successful companies here (engaged in low and highrise construction), such as Slovan Progres, Bager Promet, and others. The municipality has 7,000 hectares under forests, which is suitable for hunting tourism. INDUSTRIAL ZONE There are facilities in the small business zone in Bač that already have a regular electricity supply. A power station is currently being constructed in the zone that will provide even higher voltage electricity. Each land

plot is connected to a water supply and sewage. There is a gas pipeline network built all around Bačka Palanka and is some 30 kilometres from the zone. The plan is to start building a main pipeline this year, followed by the local gas distribution network that will run through the entire municipality. This gas infrastructure project was written in 2009. Also, there is a telecommunication infrastructure in place (all the way to the very entrance into the zone). The investor bears the costs of phone line installation. INFORMATION FOR INVESTORS The small business zone in Bač (the so-called work zone) covers 24 hectares, and, despite its excellent location, it is underutilized. Hence, local authorities have been engaged in promoting the zone’s competitive advantages, providing benefits for launching production and incentives when it comes to selecting the most suitable land plots, as well as incentives for obtaining required approvals and building permits. According to the decision made by municipal authorities, the land development fee for facilities in the industrial zone is reduced by 50% and this fee applies to the net surface of a constructed facility. It amounts to 2.5 euros / m2 of the constructed facility’s net surface. Also, following the decision made by municipal authorities, the land plots in the industrial zone can be leased out for a period of 80 years, provided that they are used for construction of business and production facilities. The initial lease price is 90 dinars per square metre. The land is divided in land plots according to the relevant urban planning projects, which means that each land plot has relevant planning documents needed for construction of production facilities. Land plots can be merged, depending on the investor’s needs. The lease holder is obligated to complete construction works within 12 months. Currently, there is a mini- abattoir, a drying facility, and a reed processing factory in the industrial zone.

TOMISLAV BOGUNOVIĆ, M.BA., PRESIDENT OF THE MUNICIPALITY OF BAČ: “Land plots in the industrial zone can be leased out for a period of 80 years, provided that they are used for construction of business and production facilities.“

CONTACT Tomislav Bogunović, M.Ba. President of the Municipality of Bač 2, Trg dr.Zorana Đinđića, 21420 Bač Tel: +381(0)21/770-170, Mob: +381(0)63/ 531-529, Fax: +381(0)21 /770-330 Website: www.bac.rs E-mail: predsednik@bac.rs, info@bac.rs Languages: English and Slovakian

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BAČKA PALANKA

BORDER MUNICIPALITY The municipality is 30 kilometres from the E-75 motorway, with regional roads M-7 and M-18 running through it. The Novi Sad – Bogojevo railway track is only 15 kilometres away from Bačka Palanka.

DRAGAN BOZALO, PRESIDENT OF THE MUNICIPALITY OF BAČKA PALANKA: “The biggest foreign investors here are Tarkett Eastern Europe from Germany, Carlsberg from Denmark, Sufle Maltinex Malt Factory from Belgium and Sebastijan Jedinstvo from Croatia.”

he municipality of Bačka Palanka is located in the autonomous province of Vojvodina’s South Bačka County. Occupying an area of 579 km2, Bačka Palanka has an exceptionally favourable geographical position, due to its proximity to the River Danube, which is considered Europe’s main river artery, and to the fact that the municipality lies at the intersection of important roads. The Danube links the municipality to the rest of Europe and the Black Sea, while a network of regional roads links it to major towns and cities, such as Novi Sad, Sombor, Subotica, Šid in Serbia, and Ilok and Vukovar in Croatia. The municipality has a bridge (called 25th May) with two traffic lanes, which connects the municipality with the Republic of Croatia. The municipality’s territory is intersected by many channels of the DanubeTisa-Danube network. The municipality of Bačka Palanka is a border municipality that’s just a river bank away from the Republic of Croatia. The Danube River has both transport and tourist potential. Bačka Palanka’s population is 60,966. The unemployment rate in the municipality is 15% while the average net salary is 35,502.00 dinars.

the following economy sectors: textile industry (Sintelon carpet manufacturer), production of electric installation materials (Nopal), leather processing industry, metal processing (Majevica, a non-metal product manufacturer, and the producer of sheet metal products Jedinstvo Sebastian), food processing industry (Čelarevo Brewery, Bačka Meat Processing Company) and tourism. The companies that have expressed interest in joint investments with foreign investors are A.D. Majevica (foundry, production of agricultural machinery and tools) and A.D. Nopal (production of electric installation materials). INFORMATION FOR INVESTORS The initial lease fee for land owned by the municipality and the town of Bačka Palanka is 2.38 dinars per square metre in the first zone. If an investor wishes to lease land for residential building, he can do so for a period of 99 years and 88 years when it comes to building business facilities. The selling price of the land plot is between 1,142 and 1,543 dinars per square metre (from the extra-quality zone to the third zone), while in the case of Čelarevo it is 206 dinars per square metre and 36.5 dinars per square metre in other municipal towns and villages. The lease price of office premises is 180 dinars per square metre, and 1.5 euros per square metre for leasing a production hall in the industrial zone. The selling price per square metre of a production hall ranges from 300 to 500 euros per square metre. The prices of housing range from 400 to 800 euros per square metre. There are possibilities of installing ADSL and cable and wireless Internet. The biggest foreign investors here are Tarkett Eastern Europe from Germany, Carlsberg from Denmark, Sufle Maltinex Malt Factory from Belgium, and Sebastijan Jedinstvo from Croatia.

The textile industry has a long tradition in the municipality

CONTACT Dragan Bozalo, President of the Municipality of Bačka Palanka 16, Kralja Petra I, 21400 Bačka Palanka Tel: +381(0) 21/7559-192 Fax: +381(0) 21/6045-587 Mobile: +381(0) 63/7799-975 E-mail: predsednikopstine@backapalanka.org.rs Website: www.backapalanka.rs Language: English 34 | Vojvodina Investment 2010 / 2011

TRANSPORT INFRASTRUCTURE The municipality is 30 kilometres from the E-75 motorway, with regional roads M-7 and M-18 running through it. The Novi Sad – Bogojevo railway track is only 15 kilometres away from Bačka Palanka. The distance between the municipality and Nikola Tesla Airport is 100 kilometres, and river transport is carried out via the Bačka Palanka Port. MUNICIPALITY’S ECONOMY The municipality and the town of Bačka Palaka have been traditionally engaged in

BAČKA TOPOLA

AT THE CROSSROADS OF TRANSPORT ROUTES The ﬁrst industrial park and logistics centre (VIP – LC) in Vojvodina has been built in Bačka Topola. he municipality of Bačka Topola is situated in Central Bačka and covers an area of 596 square kilometres. It is at the crossroads of northsouth and east-west transport routes. Bačka Topola is 32 kilometres from Subotica, 40 kilometres from Senta and Bečej, 45 kilometres from Sombor, and 69 kilometres from Novi Sad. The municipality has 38,000 inhabitants. The work-capable population numbers 24,328. Out of the total number of inhabitants, 16,154 live in the town of Bačka Topola, while 22,025 live in 22 of the municipality’s towns and villages. The ethnic structure is as follows: Hungarians 59%, Serbs 30%, Montenegrins 1,4%, Ruthenians 0,8%, and Slovaks 0,5%, while other minorities make up 8,3%.

MUNICIPALITY’S ECONOMY The municipality has a long industrial tradition and boasts several successful companies that could attract a further influx of working capital. Agriculture is the most dominant economic branch, with several industrial sectors also active. Several industrial branches originated from the agricultural sector, including food processing, textiles, and the leather and fodder industry. When it comes to the metal-processing industry, we have a steel foundry, production of wood cutting tools, ironmongery, electrical metal processing, and chain and metal production. Bačka Topola has great tourist potential, especially in terms of sightseeing tourism. Every year, we host the famous Zobnatica Equestrian Games, and on September 15th the annual event Days of Bačka Topola takes place. INDUSTRIAL ZONES The first industrial park and logistics centre (VIP – LC) in Vojvodina has been built in Bačka Topola. The park has a direct access to the railway and there are 15 companies currently operating in the existing industri-

al zone that employ over 1,500 people. The zone is 146 kilometres from Belgrade and 71 kilometres from Novi Sad, while the distance to the town of Bačka Topola is 2 kilometres, the Horgoš-Belgrade-Niš motorway is 5 kilometres away, and the distance to the E-75 motorway is only 2 kilometres. The National Investment Plan envisages construction of several other roads. Surčin airport is 160 kilometres away, the Senta port (on the Tisa River) is 45 kilometres away, while the distance between the municipality and the port of Apatin (on the Danube River) is 52 kilometres. The nearest railway station (the one in Bačka Topola) is 500 metres away. The industrial zone’s gross surface (including roads and other infrastructure) is 124 hectares, with 119 hectares already used. 75 hectares have been sold, 1 hectare is about to be sold (it is already contracted), and 49 hectares are currently available. There is the possibility of extending the zone to include an additional 500 hectares. The existing zone has an already-built infrastructure, and there are plans to construct additional infrastructure. There is an electricity line (in place – 2 MW), gas supply (in place – 23,400 m3/hour), water supply (in place – 800 m3/day), rainfall drain (in place – an open ditch), sewage (in place), phone lines (in place – 100 phone number available), the Internet, ISDN and ADSL (in place). INFORMATION FOR INVESTORS The deadline for issuing permits (provided that an investor submits a project blueprint) is between 30 and 60 days. Local selfgovernment is available to all potential investors. The biggest investors so far have been: Pottker d.o.o., Bačka Topola, 22, Maksima Gorkog (manufacture of metal products), Delta Agrar d.o.o., Belgrade, 86, Omladinskih Brigada (wholesale of grains, seed and fodder), and Prumeks d.o.o., Bačka Topola, Senćanski put bb (wholesale of meat and meat products).

ATTILA BÁBI, PRESIDENT OF THE MUNICIPALITY OF BAČKA TOPOLA: “Local self-government is available to all potential investors.”

CONTACT Monika Kokai, director of VIP-LC d.o.o. 1, Svetosavska, 24300 Bačka Topola Tel: +381(0) 24/713-506 Fax: +381(0) 24/715-918 Mob: +381(0)63/1044-089 kokai.monika@viplc-backatopola.com Website: www.btopola.org.rs Languages: Hungarian and English

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BAČKI PETROVAC

AGRO-INDUSTRIAL CENTRE Once a land plot for construction of an industrial facility is acquired, it takes approximately 60 days for the required urban planning and technical documents to be issued.

VLADIMIR TURAN, PRESIDENT OF THE MUNICIPALITY OF BAČKI PETROVAC: “The initial lease price of this land is 3 euros/m2, in dinar counter-value.”

he municipality of Bački Petrovac is located in south Bačka, between the city of Novi Sad, the municipalities of Vrbas, Bačka Palanka, and Beočin (county of Srem). It covers 158 square kilometres, and disposes of highly fertile land. The municipality’s population is 14,681. It is made up of one town and three villages, i.e. Bački Petrovac and the typically Pannonian villages of Kulpin, Gložan, and Maglić. The transport infrastructure comprises the E-70 and E-75 motorways, the M-7 main road, the R-102 regional road, international railway tracks Belgrade-Novi Sad-Budapest and Belgrade-Zagreb-Ljubljana, the Danube River, and the navigable DTD Canal, with an international airport (Belgrade) being only 90 kilometres away.

MUNICIPALITY’S ECONOMY The municipality’s terrain is flat, and so economically and industrially, Bački Petrovac is classified as an agro-industrial centre. Agriculture is the most developed economic branch here, employing over 40% of the total number of employees, i.e. over 1/3 of the work capable population. The entire region is suitable for agricultural activities, whether it be crop farming, vegetable growing, or cattle breeding. The municipality’s revenue is mostly generated from agriculture. The main industrial branches here are the food processing industry and metal and chemical processing. The food industry, as an extension of agricultural production, is developing. The most significant company in this industrial branch is certainly Marboprodukt, which makes potato crisps and other salty snacks (the company employs 400 people). When it comes to the chemical processing indus-

try, there is the Hemovet Company from Novi Sad, which produces close to 250 tons of plant protection products annually. The metal processing industry is also developed, particularly its stainless equipment segment. INDUSTRIAL ZONES The municipality is made of four populated areas and each of them has relevant spatial planning documentation with special sections designated for work (industrial) zones. The industrial zone in the municipality’s centre, Bački Petrovac, is partially equipped, bearing in mind that the local Bački Petrovac – Gložan road runs through it, with the DTD Canal intersecting the zone’s north part. The plan is to build a port here for barges. In the south section of the industrial zone there is the Novi Sad-Sombor railway line. Also, the zone has a medium-pressure gas system, as well as an electricity supply. INFORMATION FOR INVESTORS Bearing in mind that arable land is mostly privately-owned, municipal authorities have to buy land from private owners, constitute construction plots, and offer these plots to potential investors. The cost of equipping the land with utility infrastructure is 1,000 dinars per square metre of land. The initial lease price of this land is 3 euros / m2 (in dinar counter-value). Once a land plot for construction of an industrial facility is acquired, it takes approximately 60 days for the required urban planning and technical documents to be issued. The following companies have made direct foreign investments in the municipality of Bački Petrovac so far: LOUIS BLOCKX NV from Belgium (a greenfield investment) and NEOGRAFIJA from Slovakia, which bought the Kultura printing company.

The cost of equipping the land with utility infrastructure is 1,000 dinars per square metre of land

CONTACT Vladimir Turan, President of the Municipality of Bački Petrovac 6, Kolarova, 21470 Bački Petrovac Tel. +381 (0)21/780-247 Fax +381 (0)21/780-571 E-mail: opstina@backipetrovac.rs Website: www.backipetrovac.rs Languages: English, Slovakian 36 | Vojvodina Investment 2010 / 2011

BEČEJ

THE MOST FERTILE AGRICULTURAL LAND The following branches are most suitable for investors: agricultural production, metal processing industry, metal products manufacturing, and confectionary. he municipality of Bečej stretches across 487 square kilometres, with apopulation of over 43,000. The municipality’s advantages are the following: excellent geographic position, river, railway, and road transport, , proximity to the E-75 international motorway (Budapest – Athens), 86% of entire land is arable and highly fertile (black soil and meadow black soil), a long tradition in agriculture, metal processing and rubber manufacture, qualified work force, thermal springs, the Local Action Plan (LEAP), the Local Sustainable Development Strategy and the Strategy for Economic Development of the Municipality of Bečej, all written and adopted by local authorities. The municipality plans to complete the Detailed Regulation Plan by June 2010. Bečej has a total of 44,000 hectares of arable land, with over 2,500 registered farms and close to 20 agricultural cooperatives. According to 2008 data, the total number of employees is 9,210, and, according to data from April 2009, there are 4,483 unemployed persons. There are also two thermal springs in the municipality.

INDUSTRIAL ZONE The Bečej industrial zone is distributed between three locations: Location 1 / Block 124 (3.5 hectares), Location 2 / a section of Block 129 (close to 19.5 hectares), and Location 3 / Blocks 130 and 131 (21 hectares). The zone is 120 kilometres from the airport, 500 metres from the R-122 and M-3 regional roads and 30 kilometres from the motorway. There is a railway track passing through the zone, but it is not functional. Also, the Great Bačka Canal is running through the industrial zone, but the canal is navigable only for small boats, while the Tisa River is some 20 kilometres away. Locations 1 and 2 are suitable for industrial facilities, while Location 3 is ideal for port facilities. There are 12 land plots in Block

124, all of them leased to arts and crafts companies. Arable land in Blocks 131 and 135 can be transformed into construction plots. This land is partly owned by the Republic of Serbia and partly by private owners. INFORMATION FOR INVESTORS The industrial zone is fully prepared for greenfield investments. The municipality provides incentives for those investors who create a substantial number of new jobs. The following branches are most suitable for investors: agricultural production, metal processing industry, metal products manufacturing, and confectionary. DEADLINES AND PERMITS It takes up to 8 days for the municipality to issue information on a certain location and a construction works notice. It takes 60 days to obtain a location permit. The conversion of utility rights into ownership rights over a construction land is carried out by the local Land Office, while an investor is required to provide a project’s blueprint along with the report on executed technical control. An investor also needs to submit proof to the public enterprise Stankom from Bečej that he has paid the land development fee. The municipality will give its opinion on the project’s environmental impact, as well as issue a building permit within 30 days from the day an investor has submitted his request. The technical control document and an operational licence will be issued within 7 days from the day that the Technical Control Commission issues its opinion. IMPORTANT INVESTORS The most important investors in the municipality of Bečej are the following: KTC, Linde Gas Srbija, Victoria Group, Phiwa, Union, Kovax, Termo Konstruktor, Motortrading, Kataduzo, Delta Real Estate, Rosiva, and Varomont.

PETER KNEZI, PRESIDENT OF THE MUNICIPALITY OF BEČEJ: “The municipal industrial zone is fully prepared for greenfield investments.”

CONTACT Contact: Dušan Radivojević, a member of the Municipal Council 2, Trg Oslobođenja 21220 Bečej Tel: +381(0)21/6911-720 Mob: +381(0)64/8959-004 E- mail: radivojevic@becej.co.rs Website: www.becej.rs Languages: Hungarian, English

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BELA CRKVA

IMPORTANT FRUIT-GROWING REGION Arable land is the biggest natural resource in the municipality, covering 77% of the municipality’s total territory.

ŽELJKO CRNOGORAC, PRESIDENT OF THE MUNICIPALITY OF BELA CRKVA: “The municipality’s most important economic branches are agriculture and tourism.”

he municipality of Bela Crkva is a Danubian lowland border municipality located in the northeastern part of Serbia, at the southeast tip of Vojvodina and Banat, to be more precise. Geographically, the municipality is surrounded by the hills of the Carpathian Mountains, the Vršačke Mountains, the Danube, and partially by the Pannonian Plain. The municipality of Bela Crkva covers an area of 353 square kilometres and is comprised of 14 smaller towns and villages. The municipality’s population is 20,637. It is 106 kilometres east of Belgrade.

TRANSPORT INFRASTRUCTURE The M 7/1 main road (which starts in Zrenjanin) runs through the municipalities of Sečanj, Plandište, and Vršac, and stretches from Uljma to Bela Crkva, ending at the Kaluđerovo border crossing. The road is only several hundred metres away from Bela Crkva. This secures a good commuting link to central and north Banat on one side and to Romania on the other (further on to Bucharest). The Kovin – Bela Crkva (R-115) regional road links the municipality to the bridge across the Danube River and to Corridor 10 (that runs through rest of Serbia).

Crkva is one of the most important fruitgrowing regions, with 1,500 hectares of land covered in orchards, which is an excellent basis for further development of an agro-industrial complex. In the municipality’s orchards, mostly central European fruit is grown. As for tourism development, the biggest potential lies in seven crystalclear lakes that emerged following the removal of gravel from the Panonnian basin bed. The lakes cover 150 hectares and they draw their water from artesian wells and underground water resources. Also, there is the Labudovo Okno locality, which covers 360 hectares of the Deliblatska Sand Pit, at the place where the pit meets the Danube River. This location is suitable for hunting, fishing, sports, and recreational activities. INDUSTRIAL ZONE The Nera Industrial Park is located in the existing industrial zone, which covers an area of over 14.26 hectares. The zone is perfect for developing business, production, and warehouse facilities. It also has an appropriate infrastructure, such as roads, a water supply system, and electricity. The municipality offers the lowest lease rates.

The Nera Industrial Park is located in the existing industrial zone, which covers an area of over 14.26 hectares

CONTACT Željko Crnogorac, President of the Municipality of Bela Crkva 2, Miletićeva, 26340 Bela Crkva Tel: +381 (0)13/ 851-224 Fax: +381 (0)13/851-346 E-mail:opstinabc@neobee.net Website: www.belacrkva.info Languages: English and Romanian 38 | Vojvodina Investment 2010 / 2011

MUNICIPALITY’S ECONOMY The municipality’s most important economic branches are agriculture and tourism. Arable land is the biggest natural resource in the municipality, covering 77% of the municipality’s total territory. The entire area stretches across 35,345 hectares, with 21,499 hectares covered in plough land, 6,158 hectares in pastures and meadows, 160 hectares in vineyards and orchards, and 2,704 hectares in forests. Bela

DEADLINES AND PERMITS 30 days: issuing an urban planning document needed for construction, additional construction, and reconstruction. 15 days: issuing a certificate confirming that the main project is in line with the Urban Planning Act; Issuing a permit for construction, additional construction, or reconstruction and providing a certificate that the main project was written in accordance with the Urban Planning Act; Registering the commencement of construction, additional construction, or reconstruction; registering laying of foundation.

BEOČIN

AN INDUSTRIALLY DEVELOPED MUNICIPALITY To future investors the municipality of Beočin can offer available areas in a 20 hectare industrial park that has a complete infrastructure, a port, and a cargo railway he municipality of Beočin is located on the banks of the Danube River at the foot of Fruška Gora (its north section), 17 kilometres from Novi Sad. The municipality covers an area of 183 square kilometres. Although, geographically Beočin belongs to Srem County, administratively it is located in South Bačka County, i.e. in the central section of Vojvodina. The municipality covers 18,590.5 hectares and has ten small towns and villages with a total of 16,398 inhabitants. Beočin has an access to road, railway, and river transport. The entire municipality has an excellent geographic position and good commuting links. There is the state route (second class) 107, leading to Novi Sad via Beočin all the way to the border with the Republic of Croatia. Once a bridge across the Danube River near Ledinci is constructed, the entire road transport from Beočin to Novi Sad will improve. MUNICIPALITY’S ECONOMY The municipality of Beočin is one of the most industrially-developed municipalities in Vojvodina, thanks to the cement factory, established 1839, which is also the oldest and the biggest such factory in the Balkans. Following ownership transformation, the multinational company Lafarge became the factory’s majority holder. There are several other large foreign companies operational in Beočin like Alas Rakovac (member of Asamer Holding), which owns a stone quarry. The municipality provides a good base for further development of agriculture and fishery. A good geographic position, a moderate continental climate, and quality land are all suitable for diverse ag-

ricultural production (cattle breeding, crop farming, fruit and vegetable growing, and viticulture). 46.5% of the entire municipal land (18,587 hectares) is agricultural land. This area is ideal for organic food production, so this could be one of the potential investment venues. The municipality is also known for its wines. There are great opportunities for tourism development, especially when we take into account the proximity of the beautiful Danube River and Fruška Gora National Park. Also, there are possibilities for development of entrepreneurial initiatives, based primarily on local nature potentials and market tendencies harmonized with the development of agriculture, industry, tourism, and other needs of the population. Also, the municipality expects a heightened interest in opening small overhaul and wood processing facilities. INFORMATION FOR INVESTORS To future investors the municipality of Beočin can offer available areas in a 20-hectare industrial park, with a complete infrastructure, a port, and a cargo railway which operates within the Lafarge Company. Also, municipal authorities can provide reduced utility and infrastructure costs. Beočin has available land plots in the industrial zone suitable both for industry and retail. In collaboration with the Institute for Agriculture Economy in Belgrade, local authorities have drawn up a document relevant to the municipality’s development and future investors called “Development Strategy for the Municipality of Beočin.” The document is available to potential investors for perusal.

BOGDAN CVEJIĆ, PRESIDENT OF THE MUNICIPALITY OF BEOČIN: “The municipality of Beočin provides a good base for further development of agriculture and fishery.”

To future investors municipal authorities can offer reduced utility and infrastructure costs.

CONTACT Bogdan Cvejić, President of the Municipality of Beocin 25, Svetosavska, 21300 Beočin Tel: +381(0)21/870-537 E-mail: bogdan.cvejić@beocin.rs Website: www.beocin.rs Languages: English, Russian, German

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ČOKA

FAMOUS FOR MEDICINAL HERB PRODUCTION The main economic branches in the municipality are agricultural production, the food processing industry, metal processing, basic tobacco processing, and manufacture of plastic products.

PREDRAG MIJIĆ, PRESIDENT OF THE MUNICIPALITY OF ČOKA: “MACVAL, MENTA, the Čoka dairy, ATB SEVER Foundry Čoka, and Vinoprodukt – Čoka are the biggest companies in the municipality.”

he municipality of Čoka lies on the left bank of the Tisa River in northern Vojvodina. The municipality is 180 kilometres from Belgrade, 100 kilometres from Novi Sad, 170 kilometres west of Timisoara, and 60 kilometres south of Szeged. The municipality borders with Novi Kneževac in the north, Kikinda in the east and Senta and Ada in the west. Also, the municipality is close to the state border with Romania. The municipality is comprised of eight smaller towns and villages. These are: Čoka, Ostojićevo, Padej, Sanad, Jazovo, Vrbica, Crna Bara, and Banatski Monoštor. Čoka is the centre of the municipality which stretches 321 square kilometres. According to the last census, the municipality has 13,832 inhabitants. Čoka is a multiethnic community with a mostly Hungarian population (7,133 inhabitants or 51.56% of the municipality’s population), followed by Serbs (5,205 or 37.36%), while 10.81% of the population are other nationalities.

class II, III, and IV. The state-owned land covers 12,000 hectares and it is mostly used by agricultural companies that emerged following the privatization of the former agricultural combine and cooperatives. Wheat, maize, and industrial plants (sunflowers, sugar beets) are mostly grown here. There are 2,985 farms in the municipality, each having 2.5 hectares of land at its disposal, on the average. The following companies are operational in the municipality: MACVAL (processing of medicinal herbs and spices), MENTAPadej (additional processing and drying of medicinal herbs and production of pharmaceutical products), the Sever Foundry Čoka, and Vinoprodukt Čoka. The Tisa River, the Great Bustard reserve, the Lederer Family Castle with its old park, a wine cellar dating back to 1903, and hunting and fishing present the biggest tourist potentials in the municipality.

The Tisa River, the Great Bustard reserve, the Lederer Family Castle with its old park, a wine cellar dating back to 1903, and hunting and fishing present the biggest tourist potentials in the municipality

CONTACT Predrag Mijić, President of the Municipality of Čoka 20, Potiska, 23320 Čoka Tel.: +381(0)230/71-000 Fax: +381(0)230/71-175 e-mail: opstina@coka.rs Website : www.coka.rs Languages: English 40 | Vojvodina Investment 2010 / 2011

MUNICIPALITY’S ECONOMY The main economic branches in the municipality of Čoka are: agriculture (especially cattle breeding, vegetable and medicinal herb growing, the food processing industry, i.e. meat processing, dairy and wine production), metal processing, basic tobacco processing, and manufacture of plastic products. The share that processing and production have in the municipality’s revenue is below the state average, with agriculture being dominant. Agricultural land (both arable and non-arable) covers an area of 29,000 hectares, which is almost 90% of the entire municipality’s territory. The land here is of a lower class, with 80% of it being

INDUSTRIAL ZONE Location 1 - Site: Industrial zone – Čoka; Total area: 119.5 hectares; Type of ownership: state property; Intended use: Industrial plants. Čoka’s industrial zone is registered as ‘undeveloped construction land’ and there is a possibility to expand the lot up to 240 hectares. The site is located between Senta and Čoka, just 50 metres from the main road M-24 and railway line and 3 km from the Tisa River. The infrastructure is under construction and the nearest connection points are between 500-1,500 metres from the site. The location has road access. PERMITS AND DEADLINES The shortest period necessary for obtaining all required permits and approvals for construction on the site is five months.

INĐIJA

APPEALING TO INVESTORS Inđija has two fully-functional industrial zones with completed utility infrastructure on an exceptional geographic and transport location.

DEADLINES AND PERMITS If an investor has picked a land plot, designed a construction plan, and carried out an environmental impact analysis, the municipality will issue its approval within 60 days.

The northeast working zone covers an area of 281.42 hectares and is 2 kilometres from the centre of Inđija, just between the town and the E-75 motorway, along the R-109 regional road. The zone has complete utility infrastructure. West of the working zone is the Belgrade – Novi Sad railway line, located on the international Corridor 10. This zone is ideal for developing a duty-free area. Also, there are plots suitable for small businesses and arts and crafts companies, small scale factories, warehouses and storage facilities, commercial propertities, as well as medium and large production complexes. The southeast working zone stretches across 100 hectares and is located 1.5 kilometres from the centre of Inđija, along the M 22/1 regional road, in the direction of Belgrade. This working zone is also fully equipped, utility-wise. There are no underground waters, so the land here is suitable for building large facilities. Also, municipal authorities plan to build a bypass in the zone in order to re-direct traffic from Inđija. There is also the so-called Italian Industrial Zone that covers an area of 98 hectares of industrial land, with available construction plots ranging from 2,000 to 2000,000 square metres. The zone has transport infrastructure, sewage, electricity supply, the most sophisticated telecommunications infrastructure including digital phone lines, as well as local Intranet and Internet services.

WORKING ZONES Inđija has two fully-functional industrial zones with completed utility infrastructure on an exceptional geographic and transport location. Belgrade is 42 kilometres away, Novi Sad 35 kilometres, Belgrade Airport 35 kilometres, with main transport routes, like E-75 and E-70 motorways, M 22/1 and R-109 regional roads and a railway line nearby.

IMPORTANT INVESTORS The most important investors in the municipality are the following: Grundfos, Terra Production, Thyssenkrupp, Monbat, Henkel, TradeUnique, Esca Food Solutions, IGB Automotive, Swisslion, Gombit, Izoretm, Martini, Mercator, Bauerhin, Maxim, Blackoak Outlet Centre, Farmina, Aha Plastic, and many others.

he municipality of Inđija, which stretches across 385 square kilometres, is situated the autonomous province of Vojvodina in north Serbia. In 2008, Inđija was the recipient of the Financial Times Award for the 18th-best location for foreign investments in Europe, ahead of Amsterdam, Madrid, Frankfurt, Budapest, and other European capital cities. The criteria for this award are exactly those that investors look for the most: investment conditions, economic potential, previous investments, a number of newly created jobs, and economic reforms.

INFORMATION FOR INVESTORS We offer the lowest prices of construction land with utility structures, as well as free zones, fast Internet connection, VoiP with foreign countries (at symbolic prices), entire municipal software used for company registration, E-government, resolving problems within 48 hours (the so-called System 48), fast issuing of building permits, qualified work force (which we educate), and the fastest administration staff.

GORAN JEŠIĆ, PRESIDENT OF THE MUNICIPALITY OF INĐIJA: “Inđija has two fully-functional industrial zones with completed utility infrastructure on an exceptional geographic and transport location.”

Investors: Grundfos, Terra Production, Thyssenkrupp, Monbat, Henkel, TradeUnique, Esca Food Solutions…

CONTACT Goran Ješić, President of the Municipality 1, Cara Dušana, 22320 Inđija, Tel: +381(0) 22/561-301; 561-311; E-mail: gjesic@indjija.net; Uroš Ćuruvija, Director of the Land Development Directorate Tel: +381(0)22/561-112 E-mail: direkcija@indjija.net Website: www.indjija.net Languages: English, German, Italian

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IRIG

FRUIT AND WINEGROWING REGION The strategic development aim of agriculture in Irig is too adjust the production structure to natural conditions.

VLADIMIR PETROVIĆ, PRESIDENT OF THE MUNICIPALITY OF IRIG: “The working zone in Irig covers an area of 162 hectares, with 23 hectares owned by municipal authorities and the rest privately owned.”

rig is one of Vojvodina’s smallest municipalities, covering an area of 230 km². The town of Irig is the municipal administrative centre that lies at the highest elevation point in Vojvodina. The municipality of Irig is made up of 12 towns and villages: Vrdnik, Dobrodol, Satrinci, Jazak, Grgeteg, Neradin, Krušedol Selo, Krušedol, Prnjavor, Rivica, Mala Remeta, and Velika Remeta. The municipality is 60 km from Belgrade’s Nikola Tesla International Airport and 20 km from Novi Sad. This multi-ethnic municipality has a population of 12,329, with 1,714 work-capable but unemployed people. Most of the municipality’s population are Serbs (79.49%), followed by Hungarians (6.61%), and Croats (2.34%). Irig is well-connected to all major transport arteries, with the most important route being the M-21 motorway (Novi Sad-RumaŠabac) and the R-130 main road (BeškaIrig-Beočin). The railway route InđijaRuma-Sremska Mitrovica is 12 km away.

mary agricultural production. The metalworking industry is primarily concentrated in Vrdnik, while the Fruška Gora National Park occupies the major part of the municipal territory and is one of the most attractive places both in Serbia and in the entire region. The greatest tourist potential is found in spa tourism and the thermal rehabilitation centre in the village of Vrdnik. Village tourism is starting to develop, especially in the village of Jazak (Jazak ethno house), while eight monasteries on the territory of the Irig municipality make this area particularly attractive. WORKING ZONES The working zone in Irig covers an area of 162 hectares, with 23 hectares owned by the municipal authorities and the rest privately owned. There is a plan to build an infrastructure in this zone, suitable for small enterprises. The zone is located near the M-21 main road (Novi Sad – Ruma – Šabac). Currently, there are eight companies that operate here. The zone has electricity and water supply, and the gas supply pipeline has already been designed (it is supposed to be built this year). Roads leading to the zone will be built as the land plots are leased out. An investor can lease out a land plot (owned by the municipality) for a period of 99 years. All documents and permits can be obtained within 45 days. The regulation plan, the municipal development plan, and the master plan for the Irig industrial zone have all been written. Investors that have already arrived in Irig include Macom, Euromakina, Planten, Paneli, Van Co, Plasta, Alnis, Falc east, Mlineks, Forma, Zdravka, Woodindustri, Jazak, Rotis Group, and Lola Fop.

All documents and permits can be obtained within 45 days

CONTACT Vladimir Petrović, municipality’s president 1, Vojvode Putnika, 22406 Irig Tel: +381(0)22/461-010 Fax: +381(0)22/462-035 E-mail: soirig@neobee.net Website: www.irig.rs Languages: English and Russian 42 | Vojvodina Investment 2010 / 2011

MUNICIPALITY’S ECONOMY Irig’s economy is very diverse, with the most dominant branch being agriculture. The municipality has 1,400 registered farms. Aside from agriculture, there are other economic branches like food and metal processing industries, retail, construction, and catering with developing tourism. The strategic development aim of agriculture in Irig is to adjust the production structure to natural conditions. The municipality, as well as the Fruška Gora region, will develop into one of the most important fruit and wine-growing regions in Serbia. The ultimate goal is to provide top-quality raw material for the processing industry from pri-

KANJIŽA

EXCELLENT GEOGRAPHIC AND TRANSPORT POSITION The municipality has industrial zones located in Horgoš and Kanjiža, stretching across 24 hectares and 3.73 hectares respectively he municipality of Kanjiža is a small border region in north Vojvodina comprised of thirteen towns and villages located on the right bank of the Tisa River The municipality borders with Subotica, Senta, and Novi Kneževac. It is 5 kilometres from Corridor 10, and situated on the EGK 4 Corridor (the Tisa River). The municipality’s territory covers 400 square kilometres, and its population is 27,000. The municipality has very fertile arable land, with substantial oil, gas, and clay deposits, as well as thermal springs.

TRANSPORT INFRASTRUCTURE The municipality has good commuting links to surrounding areas thanks to its geographic position and the fact that relevant transport routes pass through it. The municipality’s territory is intersected by a network of roads like sections of the E-75 international motorway, regional roads M-22.1 and M-24, as well as R-119, R-111, R-119.3, and local uncategorized roads. The municipality has the following railway links: Kanjiža-Horgoš-Subotica, Kanjiža-HorgošSzeged (in Hungary), and Orom-Subotica. Surčin Airport is 200 kilometres away, while Szeged Airport is 35 kilometres away. The municipality also has a passenger border crossing. The port in Senta is some 25 kilometres from the town of Kanjiža. Also, there is a possibility of loading and unloading bulk materials near the town itself. The Tisa River is potentially an international river route, available to all countries lying along the Danube.

and the Tisa River is 18 kilometres. All legal and technical documents pertaining to the industrial park have been drawn up, and the municipality is the owner of the entire industrial zone. When it comes to existing infrastructure, the distance between the industrial park and electricity lines is 0.84 kilometres away, the water supply network 1.8 kilometres, sewage 1.8 kilometres, and gas pipeline system 0.1 kilometre. The border crossing with Hungary is located 4 kilometres from the town. The industrial zone in Kanjiža stretches across 3.73 hectares, and there is a possibility of extending it for further 7 hectares. It is situated near the R-119 regional road, the Kanjiža railway station, and is only 3 kilometres from the Tisa River. The border crossing with Hungary is 20 kilometres from the industrial zone. As with the Horgoš industrial zone, the legal and technical documentation for the Kanjiža industrial zone is in order, and the entire land here is owned by the municipality. Construction works on a sewage system have begun, while municipal authorities are currently drafting plans for the rest of the infrastructure.

MIHÁLY NYILAS, PRESIDENT OF THE MUNICIPALITY OF KANJIŽA: “The industrial branches suitable for investing are the metal processing, food processing, and textile industries, as well as wood processing and production of construction materials.”

An investor can obtain all required permits and documents within a 6-month period

INDUSTRIAL ZONES The municipality of Kanjiža has two industrial zones – in Horgoš and Kanjiža. The industrial park in Horgoš covers an area of 24 hectares and is located near the E-75 motorway and the international Belgrade-Budapest railway line, and the distance between the park

INFORMATION FOR INVESTORS When it comes to benefits for investors, the municipality has a so-called one-stop-shop, and is willing to offer incentives both for greenfield and brownfield investments. The industrial branches suitable for investing are the metal processing, food processing, and textile industries, as well as wood processing and production of construction materials. An investor can obtain all required permits and documents within a 6-month period. IMPORTANT INVESTORS The following companies have invested in the municipality of Kanjiža so far: Tondach – Austria, Tegola Canadese – Italy, and Phiwa, a daughter company of the Germany-based Walther Gruppe.

CONTACT Natalija Srdić, assistant to the municipality’s president 1, Glavni trg, 24420 Kanjiža Tel: +381(0)24/873-249 Fax: +381(0)24/873-016 Mob: +381(0)64/80-62-081 E-mail: predsednik@kanjiza.rs Website: www.kanjiza.rs Languages:English, German, Hungarian

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KIKINDA

SUBSTANTIAL OIL AND GAS DEPOSITS The municipality of Kikinda disposes of two industrial zones and several areas allotted for potential investors.

ILIJA VOJINOVIĆ, PRESIDENT OF THE MUNICIPALITY OF KIKINDA: “There is the possibility for potential investors to obtain relevant permits via a shortened procedure.”

ikinda is an area of 782 square kilometres located in northeast Vojvodina and it comprises 10 smaller town and villages. It is situated in the heart of Central Banat County. The municipality is 135 kilometres from Belgrade, 100 kilometres from Novi Sad, 100 kilometres from Szeged, and 85 kilometres from Timisoara. The distance to the Horgoš border crossing is 75 kilometres, and 60 kilometres to the Đale border crossing (which is next to the railway border crossing with Romania). The road network is well-developed, with M-3, M-24, and R-123 roads all passing through the municipality. Also, a total of 57 kilometres of new roads has been built. The municipality has 67,002 inhabitants, 76.4% of whom are Serbs, 12.8% Hungarians, and 10.7% are of other nationalities.

MUNICIPALITY’S ECONOMY Kikinda is the biggest town along the entire Serbian – Romanian border. Over 4 million people live in nearby regions (in a 120-kilometre-radius). The municipality disposes of such natural wealth as oil, gas, thermomineral waters, clay, and arable land. All of these natural potentials are available to future investors. Kikinda’s economy is export-orientated and has been recording a trading surfeit for years. The most developed industrial branches are: metal processing industry (Cimos Foundry), construction industry (The Toza Marković Company), chemical processing (MSK Kikinda and Hemik), food processing industry (Banini,

Prima), and agricultural processing industry (Agroseme and Standard). The most lucrative are certainly the metal processing and petrochemical industries. The region of Kikinda has the largest oil and gas deposits in Serbia. INDUSTRIAL ZONES The municipality of Kikinda disposes of two industrial zones and several areas allotted for potential investors. These areas cover 150 hectares and have a partial infrastructure. The land is owned by the municipality and there is a detailed regulation plan in place. The zones are located near the M3 and M24 main roads, with the infrastructure currently being built. INFORMATION FOR INVESTORS Deadlines for obtaining required documentation are the following: urban planning act – 30 days; confirmation on the main project in accordance with the Spatial Planning Act and the plan’s excerpt– 15 days; construction, additional construction, and reconstruction permit – 15 days; registration of beginning of construction works – up to 25 days (depending on the stage); and request for technical supervision of a facility and issuing an operating licence –up to 25 days. There is the possibility for potential investors to obtain relevant permits via a shortened procedure.

Kikinda is the biggest town along the entire Serbian – Romanian border

CONTACT Borislav Ćurčić, Project Department GA 4, L3/12, Braće Tatić, 23000 Kikinda Tel/Fax: +381(0)230/410-158 Mob: +381(0)64/8968-095 E-mail: borislav.curcic@kikinda.org.rs Website: www.kikinda.rs Language: English 44 | Vojvodina Investment 2010 / 2011

INVESTORS The most important investors in the municipality are: Walter Group - Germany, Le Belier- France, CIMOS – Slovenia, ASA International - Austria and Timior Colland - Italy.

KOVAČICA

FAVOURABLE PRICE OF LAND Foreign investors ﬁnd Kovačica very appealing because of its close proximity to metropolitan areas. he municipality of Kovačica is situated in the southeastern part of Vojvodina and covers an area of 419 square kilometres. The town of Kovačica is its administrative and geographic centre. Kovačica is 47 kilometres from Belgrade. A 15 kilometre-section of the Tamis River runs through the northwestern part of the municipality, while the eastern part is located in the Deliblatska Sand Pit, which has specific natural and geographic features. The municipality is made up of eight smaller towns and villages: Kovačica, Debeljača, Crepaja, Padina, Samoš, Idvor, Uzdin, and Putnikovo. According to the 2002 census, the m u n i c i p a l i t y ’s population was 27,860. The ethnic structure is diverse – 41.07% of the population are Slovaks, 33.91% are Serbs, 10.52% are Hungarians, 6.99% are Romanians, and 7.51% are of other nationalities. The municipality is an interesting fusion of four languages, alphabets, religions, cultures, and customs. Its statute stipulates equal use of all languages and alphabets of Slovaks, Serbs, Hungarians, and Romanians, and this is something that the municipality is very proud of and is considered a great advantage for the entire population.

INDUSTRIAL ZONES Foreign investors find Kovačica very appealing because of its close proximity to metropolitan areas (Pančevo, Belgrade, Zrenjanin, Novi Sad) and main transport routes (Kovačica is situated on the M-24 regional road and regional railway line Pančevo-Zrenjanin-Kikinda), coupled with its strong business tradition and available workforce. The industrial zone is located on the outskirts of Kovačica near the M-24 regional road (Zrenjanin – Pančevo), Kovačica-Debeljača local road, and the Pančevo-Zrenjanin-Kikinda regional railway. The zone is divided into blocks – blocks no. 43, 44 and 45 stretch across 1.033.900 m2, block no. 2 covers 116.600 m2, while block no. 42 covers 173.604 m2. The infrastructure and utilities include access roads, electricity supply – 500 metres, water supply – 50 metres, telephone / optical lines – 500 metres, and an industrial water supply channel. 31.52% of the zone is currently being used. Agricultural producers are the legal owners of the zone.

MIROSLAV KRIŠAN, PRESIDENT OF THE MUNICIPALITY OF KOVAČICA: “Municipal authorities can issue required permits and documents in the shortest possible time.”

The municipality offers incentives for investors, such as the low price per square metre of land, cheap utility services, and no municipal utility taxes and fees

MUNICIPALITY’S ECONOMY The processing industry and agriculture are the most developed economic branches here. Arable land takes up 84.02% of the entire municipal territory. It is mostly comprised of first-class plough land, and occasional orchards, vineyards, and meadows. Over 4/5 of the arable land is so-called ‘chernozem,’ the most fertile soil in the Pannonian Plain, which yields excellent crops.

INFORMATION FOR INVESTORS The municipality offers incentives for investors, such as the low price per square metre of land, cheap utility services, and no municipal utility taxes and fees. Municipal authorities can issue required permits and documents in the shortest possible time. The most important investors that have invested in the municipality so far are the following: ROLOPLAST (producer of PVC products and window shutters), KONKAB d.o.o. (Herta Bauer and Berthold Feldber from Austria) engaged in cable confectioning, HIPELTEK d.o.o. (production, servicing, and storage of electrical equipment), and AKRIPOL d.o.o. from Slovenia (polymer production).

CONTACT Miroslav Krišan, President of the Municipality of Kovačica 50, Maršala Tita, 26210 Kovačica Tel: +381(0)13/661-122 Fax: +381(0)13/661-047 E-mail: razvoj@kovacica.org , opstina@kovacica.org Website: www.kovacica.org Languages: Slovak, English, Hungarian, Romanian

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KOVIN

EXCEPTIONAL TRANSITIONAL POTENTIAL The municipality’s spatial plan envisages construction of an international port on the Danube River. erritorially, the municipality of Kovin is one of the biggest in Vojvodina and Serbia. It is located in South Banat and covers an area of 725 square kilometres and has 36,802 inhabitants. The municipality has an excellent transport and geographic position, as well as great transit potential. The M-24 main road runs very close to the town of Kovin, and this road has the potential of becoming a motorway. Following the construction of the bridge across the Danube River and the paved road in the direction of Bela Crkva, the municipality has become an important crossroad. Large, industrial centres are in close proximity to Kovin. Belgrade is only 50 kilometres away, Pančevo 34 kilometres, and Smederevo 13 kilometres. Also, there is an airport runway (which was used for military purposes) that can be a potentially important infrastructural facility. In the south, the municipality of Kovin borders on the Danube River (47 kilometre-long border), which is entirely navigable here. Also, the municipality’s spatial plan envisages construction of an international port on Danube.

SLAVKO BRANKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF KOVIN: “The Kovin military airport is currently for sale. The airport has 508 hectares of land and 44 facilities of a combined surface area of 17,000 square metres.”

CONTACT Slavko Branković, President of the Municipality of Kovin 5, JNA, 26220 Kovin Tel: +381(0)13-742-114 Faks +381(0)13/742-322 E-mail: predsednik@kovin.org.rs Website: www.kovin.org.rs Languages: English, Russian, Hungarian, Romanian, German 46 | Vojvodina Investment 2010 / 2011

metres long), and the Deliblatska Sand Pit with 30,000 hectares of land covered in lush forests and abundant flora and fauna are both considered unique natural phenomena in Europe. The Danube River has several outstanding locations for hunting and fishing, nautical tourism, and other recreational activities like the so-called Dunavac, the complex around the Grad Fortress, Ada, and a river sleeve towards Smederevo, the river bank near Gaj and Dubovac, and many swamps that are the natural habitat of numerous species of birds. The spatial plan envisages construction of an international port on the Danube, several marinas, and two wind farms. Also, there are opportunities to invest in construction of new production facilities, since the current industrial zone has been extended to include an additional 500 hectares. The Kovin military airport is currently for sale. The airport has 508 hectares of land and 44 facilities of a combined surface area of 17,000 square metres.

There are opportunities to invest in construction of new production facilities, since the current industrial zone has been extended to include additional 500 hectares

MUNICIPALITY’S ECONOMY Agriculture is the municipality’s main economic potential with 42,950 hectares of high-quality plough land. In addition, there are newly-discovered coal, gravel, and peat deposits. Even with such resources, the municipality is considered underdeveloped. INVESTMENT OPPORTUNITIES The great development potential, particularly when it comes to tourism, lies in the Deliblatska Sand Pit (suitable for hunting tourism and catering) and the Danube River (sports, recreational, and nautical tourism). The section of the Danube River (50 kilo-

INDUSTRIAL ZONE The industrial zone has electricity, a water supply system, a gas supply, and phone lines. It is connected directly to the firstclass national motorway (M-24). Industrial Block 119, located to the rear of the planned port, stretches over 30 hectares. There are various incentives for investors, including a reduced land development fee and favourable land regulation fees, coupled with a reduced fee for unequipped construction plots and various employment incentives. INVESTMENTS TO DATE The following international companies have invested in Kovin so far: West Pharmaceutical Services and Hemofarm STADA (Germany), Pilana and OMV (Austria), Toplana (the Slovak Republic), and Lukoil (Russia).

KULA

AGRICULTURAL AND INDUSTRIAL PRODUCTION Kula municipal authorities have drawn up a tourism development project, which entails construction of a swimming pool, a recreational spa centre, and an artiﬁcial lake with sport grounds, with the aim of fully utilizing the thermo-mineral springs here. he municipality of Kula is situated in West Bačka County between Novi Sad (25 km), Sombor (40 km), and Subotica (60 km). Belgrade is 132 kilometres away, while the border crossing at the state border with Hungary (Bački Breg) is 66 kilometres away. The Danube River, i.e. the port in Bogojevo (at the border crossing with Croatia), is 38 kilometres away. Agricultural land makes up 91.44% (or 43,348 hectares) of the entire land here, with dominant highly fertile black soil and carbonated chernozem. A total of 10,059 hectares of arable land is owned by the municipality. The first-class main road M-3 runs through the municipality, while the E-75 motorway is only 14 kilometres away. The local railway Sombor – Sivac – Crvenka – Kula – Vrbas (58 kilometres long) also runs through Vrbas. The international railway Vienna – Budapest – Belgrade is 10 kilometres away. The municipality has many navigable routes (which are a part of the DTD Canal), namely VrbasBezdan, Bečej-Bogojevo and Kosančić-Mali Stapar, a total length of 52,070 metres.

tre, and an artificial lake with sport grounds, with the aim of fully utilizing the thermo-mineral springs here. All utility prerequisites (like electricity, water and roads) have been met in order to build a sports and recreational centre near the Mountain Lodge that is going to have an artificial lake and stretch over 24 hectares of land. The municipality is ready to lease this land to potential investors for a period of 99 years. Organic food, spas, and sport and recreational centres all have development potential with well-designed and well-constructed facilities sure to bring success to any investor.

SVETOZAR BUKVIĆ, PRESIDENT OF THE MUNICIPALITY OF KULA: “The shortest possible period necessary for obtaining all the required permits and approvals for on-site construction is 15 days.”

Due to the municipality’s natural potential, agricultural production dominates over manufacturing with food processing being most developed

MUNICIPALITY’S ECONOMY Due to the municipality’s natural potential, agricultural production dominates over manufacturing with food processing being most developed (biscuit factory Jaffa A.D. from Crvenka, a sugar plant in Crvenka, and ABC Food a.d. Ruski Krstur). In addition to arable land, there are quite a few thermal springs in Kula which haven’t been frequently used. Kula municipal authorities have drawn up a tourism development project, which entails construction of a swimming pool, a recreational spa cen-

INDUSTRIAL ZONE The Block 66 industrial zone covers an area of 85.85 hectares, with 28 hectares actually taken (under construction) and 57 hectares still available. The Bezdan-Vrbas canal is to the north and northwest of the zone, while the M-3 main road (Kula-Vrbas) runs near its southwest section. The land in Block 66, in Kula, is treated as urban construction land suitable for industrial and arts and crafts facilities, as well as warehouses and depositories. The industrial zones Blocks 3, 4, and 5 and a part of the Block 10 stretch across 78 hectares and are 66 kilometres away from the Bački Breg - Hercegszanto (Hungary) border crossing. These zones can be used for industrial facilities, warehouses, and similar facilities, as well as for residential housing. INFORMATION FOR INVESTORS Land lease for a period of 15 to 80 years is possible, depending on projected use. The shortest possible period necessary for obtaining all the required permits and approvals for on-site construction is 15 days.

CONTACT Svetozar Bukvić, President of the Municipality of Kula 11, Lenjinova 25230 Kula Tel: +381(0)25/722-220 Fax: +381(0)25/722-273 E- mail: svetobukvic@gmail.com Website: www.kula.rs Vojvodina Investment 2010 / 2011 | 47

MALI IDJO

FIRST INVESTOR IN BUSINESS PARK The Small Steps Industrial Park is located in the area between the E-75 motorway, the M-22 regional road, and the south section of the village of Feketić. The park is fully equipped. he municipality of Mali Iđoš covers an area of 18,100 hectares. It is 48 kilometres away from Subotica and 50 kilometres from Novi Sad. The municipality is intersected by the M-22 regional road (Subotica – Belgrade), while the international motorway, E-75 is only a kilometre from the village of Feketić. There is a plan to build an overpass in the close proximity to Mali Iđoš. The state border is very close by, which is an excellent prerequisite for further development of the business park, located in the area between the E-75 motorway, the M-22 regional road, and the south section of the village of Feketić. Mali Iđoš is 145 kilometres from Surčin Airport and 38 kilometres from Čenej Airport. The distance between the municipality and the port in Novi Sad is 50 kilometres. The Belgrade – Budapest railway line runs through the municipality, with both Mali Iđoš and Lovćenac having a railway station.

RÓBERT CSÓRÉ, PRESIDENT OF THE MUNICIPALITY OF MALI IĐOŠ: “An investor can obtain required permits and documents within 30 to 60 days.”

the arrival of local and foreign investors. The company that manages Small Steps d.o.o. was founded in 2004, with the municipality’s assistance and with the aim of developing the park along with local and foreign partners and investors. In 2009, a 1,000 metre-long cable was laid, connecting the power station in Feketić to a future power station in the industrial zone. The water supply network and the Mlinski Road (which was named after the park’s first investor) will have been built by spring of 2010. Also, by the end of 2010, a concrete power station in the industrial zone will have been completed. This year, the very first investor in the industrial zone will build a food processing factory. The current size of the zone is 40 hectares, with 20 hectares having an infrastructure. The concrete goal of developing this industrial park is bringing together local owners of arable land and the entire community in a long-term project with the purpose of purchasing, selling, and renting real estate, designing, constructing, and reconstructing various facilities, engineering, rendering financial and tax consultancy services, market research, foreign trade, and carrying out marketing activities, as well as other various services. The aforementioned services are geared towards raising the overall quality of life in the municipality.

The current size of the zone is 40 hectares, with 20 hectares having an infrastructure

CONTACT Zita Nagy, Director of Small Steps d.o.o. Industrial Zone, Municipality of Mali Iđoš 32, Glavna, 24321 Mali Iđoš Tel:+381 (0) 24 730 214 E mail: opstina.maliidos@gmail.com small.steps.doo@gmail.com Website: www.maliidos.com , www. kishegyes.com, www.small-steps.biz Languages: Serbian, Hungarian, English, German 48 | Vojvodina Investment 2010 / 2011

MUNICIPALITY’S ECONOMY The main activity in the municipality is agriculture, with most companies and farms growing wheat, maize, and sugar beets. Agricultural production has a great significance for further development of the food processing industry in the municipality, as well as for establishing small and medium arts and crafts enterprises. When it comes to an available work force, most of the people here are trained to work in leather and the food and metal processing industry, since these industrial branches are considered traditional in the municipality. BUSINESS PARK The Small Steps Industrial Park is located in the area between the E-75 motorway, the M-22 regional road, and the south section of the village of Feketić. The park is ready for

DEADLINES AND PERMITS An investor can obtain required permits and documents within 30 to 60 days. The incentive that the municipality can offer is a five-year exemption from paying the fee for displaying a business name. IMPORTANT INVESTORS The most important investors that have invested in the municipality so far are: Wienerberger, Agrokons, Građamont, Montel, Montrom, Chik-Prom, Big-Chick, Agriromagna, and DTD Ribarstvo.

NOVA CRNJA

PROCESSING INDUSTRY AND TOURISM The municipality disposes of four locations suitable for industrial zones he municipality of Nova Crnja is located in northeast Banat, and belongs to Central Banat County. In the west and northwest, it borders with the municipality of Kikinda, in the south with the municipality of Žitište, and in the northeast, Nova Crnja is close to the Romanian border. The main road in the municipality is the M-7 international route. The municipality of Nova Crnja covers an area of 273 square kilometres, and its population is 12,924. According to the National Employment Service, there are close to 1,500 unemployed and qualified persons. Out of the total number of unemployed in the Central Banat County in 2008 (20,523), the unemployed persons living in Nova Crnja make up 6.2%. Out of 8,029 of Nova Crnja’s inhabitants between the ages 15 and 65, 15.7% are unemployed. This percentage is twice as high as desired.

the town by road and it is suitable for the processing industry. 3. The location near the Kaštel Motel, 10 hectares of land, full infrastructure, only several hundred of metres away from the border crossing with Romania on the M-7 road. The zone is suitable for tourism (sports, recreational, or spa tourism), and has thermal springs for which a feasibility study has been written containing data about the water’s composition, quality, and temperature. 4. The fourth location used to belong to the former sugar refinery. It has a complete infrastructure and excellent production halls.

People living in the municipality of Nova Crnja are mostly engaged in agriculture

MUNICIPALITY’S ECONOMY People living in the municipality of Nova Crnja are mostly engaged in agriculture. Over half of the population (52.7%) generates income from agriculture and related activities. According to the 2002 census, most of the working people here are engaged in the processing industry (16%), followed by retail, vehicle repair, and crafts (8.7%), state administration (5.4%), and education (4.2%). The municipality disposes of 2,600 hectares of arable land which is usually leased out. INDUSTRIAL ZONES The municipality has four locations suitable for industrial zones: 1. Close to 6 hectares in Srpska Crnja, with complete infrastructure, 200 metres from the M-7 international route. 2. The Šolaja Zone in Srpska Crnja, 11 hectares of land. This zone is connected to

PERA MILANKOV, PRESIDENT OF THE MUNICIPALITY OF NOVA CRNJA: “Favourable prices of construction land are an advantage to potential investors.”

INFORMATION FOR INVESTORS Favourable prices of construction land are an advantage to potential investors. The branches that the municipal authorities recommend for investing are the processing industry and tourism (due to natural thermal water springs and extensive cultural heritage. Srpska Crnja is the birthplace of the famous Serbian painter and poet, Đura Jakšić. The water in thermal springs reaches temperatures between 60 ºC and 80ºC. There are also opportunities for developing hunting and fishing tourism, due to the fact that the municipality has vast forests and abundant wildlife. DEADLINES AND PERMITS All required permits can be obtained with one month. IMPORTANT INVESTORS The most important investors so far are: the ready-made meals producer Srpsko-ruska kuća (Serbian & Russian House) and the SFIR sugar refining plant – Italy. The agricultural combine in Srpska Crnja is owed by a businessman from Scotland, while a German company has opened its own agricultural company here.

CONTACT Branislav Damjanov, Deputy President of the Municipality 110, JNA, 23218 Nova Crnja Tel: +381 (0)23/815-030 Fax: +381(0)23/815-722 Mob: +381 (0)62/305 765 E-mail: sonc@gimelnet.rs Website: www.sonovacrnja.org.rs Vojvodina Investment 2010 / 2011 | 49

NOVI SAD

CAPITAL CITY OF THE AUTONOMOUS PROVINCE OF VOJVODINA The city of Novi Sad offers several attractive locations in working zones, suitable for a wide range of activities – conducting business, catering, production, storage, secondary and tertiary sector activities....

ovi Sad is the second largest city in the Republic of Serbia and the administrative centre of the Autonomous Province of Vojvodina. It is also a business, cultural, scientific, health, and tourist centre, as well as a multinational and multiconfessional city. Novi Sad is situated in East Europe, between 19º and 20 º east longitudes and between 45º and 46º north latitude. It stretches across the Pannonian Plain, in South Bačka, and lies between 72 and 80 metres altitude. According to the last census, Novi Sad has 299,294 inhabitants. It covers an area of 69,917.2 hectares.

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Novi Sad has an exceptionally good geographic and economic position. It is located on the east tourist route that links North, Central, and West Europe with the Adriatic, Aegean, and Black Seas. Also there are Corridor 7 (the Danube River) and Corridor 10. Novi Sad lies on the E-75 motorway, which is only 50 kilometres away from the E-70 international route. The city is also a railway centre, and has a port which, all combined, speaks volumes about its favourable tourist and geographic position. According to data from the National Bank of Serbia from 2008, there are 7,586 companies in the city, out of which 7,231 are small enterprises, 284 are middle-sized enterprises,

and 71 are large companies. Most of these companies are engaged in retail (42.66%) and industrial processing (18.15%), while the latter sector employs the biggest number of people (18.44%), followed by retail (17.52%). In addition, Novi Sad is an important financial centre, with headquarters of many banks and insurance companies located here. This highly profitable sector employs over 3,000 of Novi Sad’s citizens. One of the most important advantages that Novi Sad has over other cities in the Republic of Serbia is quite a few higher education facilities. The University of Novi Sad is the second biggest university in our country, with over 45,000 students studying there. The educational structure of citizens (over 15 years of age) is better than the state average. 12.43% of Novi Sad’s citizens have a university education, 6.61% possess a junior college diploma, and 51.74% a high school diploma. There are quite a few very successful software companies in the city, which represent a great potential for further development of DEADLINES AND PERMITS he approximate deadline for issuing building permits is close to six months, provided that an investor has submitted a complete documentation. The Serbian Business Registry Agency is in charge of new company registration. It takes five days for the Agency to issue a decision on company incorporation.

NOVI SAD the IT sector and hiring young IT professionals from the University of Novi Sad. The average net salary per employee is 36,394 dinars or 365 euros (February 2010 data). INDUSTRIAL ZONE The city of Novi Sad offers several attractive locations in working zones, suitable for a wide range of activities – conducting business, catering, production, storage, secondary and tertiary sector activities....Depending on the geographic position of a location,

The City of Novi Sad’s Development Strategy was adopted at the end of 2009 and is one of the most important documents when it comes to the way the city authorities function some have full and others have partial infrastructure. There is the possibility of resizing land plots, provided that one land plot occupies at least 2,000 square metres. There are greenfield investment locations in the Free Zone (situated in the Danube port complex). The Novi Sad Free Zone offers the possibility of an investor leasing storage and office space. Potential investors can participate in public auctions at which they can sell or lease land plots. The public enterprise, Novi Sad City Construction and Development, is in charge of organizing auctions. INCENTIVES FOR INVESTORS Novi Sad offers potential investors a highly-qualified work force, a good geographic position, and access to a customs-free market of nearly a billion consumers. Aside from these benefits, city authorities also offer special investment incentives – the land development fee can be reduced by 50%, provided that the investor builds a facility worth over a million euros and that he creates at least 50 new jobs. If an investor is building a production hall or any other kind of production facility, the land development fee can be reduced by 50%, and if

he pays the entire land development fee in one go, the fee will be reduced by 30%. On the other hand, based on an act adopted by the Serbian Government, investors can compete for state grants, which are not available to retail, tourism, catering, and agriculture companies. These funds are available only to those investors who want to invest in the following sectors: production (grant ranges from 2,000 to 5,000 euros per new job, provided that an investor invests at least 3 million euros), services (grants range from 2,000 to 10,000 euros per each new job--an investor needs to invest at least 500,000 euros and hire at least 10 people), and research & development (grants range from 5,000 to 10,000 euros per each new worker, with at least 10 new jobs created).

IGOR PAVLIČIĆ, MAYOR OF NOVI SAD: “Novi Sad offers potential investors a highly-qualified work force, a good geographic position, and an access to a customs-free market of nearly a billion consumers. “

IMPORTANT INVESTORS The most important investors in the city of Novi Sad are: Erste Bank, Banca Intesa, National Bank of Greece, Fondaria, Metro Cash & Carry, Mercator, Merkur, Tuš, Heineken, and Gazprom Neft. DEVELOPMENT STRATEGY The City of Novi Sad’s Development Strategy was adopted at the end of 2009 and is one of the most important documents when it comes to the way the city authorities function since it represents the basis for systematic planning and determining future development directions of the city. The Strategy stipulates creating a business climate that will not only draw in investments and thus create new jobs, but keep the existing investors and raise the number of new entrepreneurs. The city has already fulfilled institutional prerequisites needed for establishing a good cooperation between the economy and local self-government. We have set up the Business Council (made of business people, representatives of the University of Novi Sad, and the National Employment Service) and the Council’s role is to identify the problems that the city’s economy has to deal with and give suggestions how to overcome these problems. Also, there is the Local Economic Development Office which basically operates in two directions--attracting investments and providing assistance to the existing business community.

CONTACT Zoran Ivošević, Head of the Department of Local Economic Development 1, Trg slobode, 21000 Novi Sad Tel/Fax: +381(0)21/480-77-10 E-mail: kler@novisad.rs Website: www.novisad.rs Language: English

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NOVI BECEJ

WELCOMING INVESTORS Potential investors can obtain required permits and documents in the shortest time possible s a municipality situated in the valley of the Tisa River, Novi Bečej is in the very heart of Vojvodina. It covers an area of 60,860 hectares, and as one of the municipalities in Central Banat County, it lies on the left bank of the Tisa River, 66 kilometres from the Danube estuary. Novi Bečej is the only town whose centre is located on the river itself. The municipality of Novi Bečej has a well-developed infrastructure, including road and railway transport, energy, utilities, telecommunication, and IT facilities. Aside from the international river route (the Tisa River), Novi Bečej is connected to the Danube River via a network of canals (near Bezdan) and Bela Crkva. A railway line passes through all towns and villages in the municipality connecting Belgrade and Timisoara via Pančevo, Zrenjanin and Kikinda, and Szeged via Subotica. Also, a number one category regional road that links Novi Sad to Kikinda and further on to Romania runs through the municipality, as do the number two category regional roads – Novi Bečej-Zrenjanin-Belgrade and Novi Bečej-Bašaid-Nova Crnja – Romania. The municipality’s population is 26,924.

MILIVOJ VREBALOV, PRESIDENT OF THE MUNICIPALITY OF NOVI BEČEJ: “The municipality of Novi Bečej disposes of two industrial zones – the East and South Novo Miševo zones.”

also textile, chemical, metal and food processing industries. The municipality has exceptional natural resources that can provide the backbone of future prosperity – arable land suitable for growing oil crops and the production of biomass, forests, meadows and pastures ideal for producing organic food. There are also clay deposits suitable for the production of construction materials, thermal springs (Slano kopovo), the Pearl Island (Biserno ostrvo), natural carbon-dioxide and gas deposits (near the River Tisa, canal network, dam and bridge across the river), as well as an abundant cultural and historical heritage. INDUSTRIAL ZONE The municipality of Novi Bečej disposes of two industrial zones – the East and South Novo Miševo zones. In order to stimulate economic growth, investments. and the preservation of cultural heritage, and to create new jobs and improve environmental protection, investors can be exempt from paying a land development fee, providing they meet certain criteria.

Milivoj Vrebalov, President of the Municipality of Novi Bečej: The municipality of Novi Bečej disposes of two industrial zones – the East and South Novo Miševo zones

CONTACT Tomislav Ratković, Deputy President of Municipality 8, Žarka Zrenjanina 23272 Novi Bečej Tel: +381(0)23/772-320 Fax: +381(0)23/772-550 Website: www.novibecej.rs 52 | Vojvodina Investment 2010 / 2011

MUNICIPAL ECONOMY Although Novi Bečej is mainly an agricultural municipality, there are only a few plants processing agricultural produce (with the exception of the meat processing plant). The most developed industrial branch is the production of construction materials, while there are

DEADLINES AND PERMITS The municipality of Novi Bečej welcomes investors who will be able to obtain relevant permits and documents within the shortest time possible. INVESTMENTS TO DATE The biggest investors in the Novi Bečej Municipality are: Italteks-intimo, Abele Martina, Alego, NEXE Group, construction materials producer Brantner, Otpadna privreda, BD Agro (agriculture and cattle breeding), MK Group, Vital, and MCI.

NOVI KNEŽEVAC

REDUCED RENTAL FEES FOR FUTURE INVESTORS Industrial land plots are suitable for light industries like food processing he municipality of Novi Kneževac is located in the northeast part of the Autonomous Province of Vojvodina in the far north section of Banat County. The state border with Hungary is also the municipality’s north border, which is 21.2 kilometres long. In the south, the municipality borders with Čoka (a 23.4 kilometre long section). In the east, it borders with Romania (a 14.9 kilometre long border), while the Tisa River constitutes its western border (28.3 kilometre long). The river separates the municipalities of Novi Kneževac and Kanjiža. The bridge on the Tisa River (between Novi Kneževac and Kanjiža), along with the one between Čoka and Senta, plays an important role in connecting north Banat to Bačka, both locally and regionally. Also, this section is a part of an international transit route that leads to the Horgoš-Reske border crossing. The regional road HorgošKanjiža-Novi Kneževac-Čoka and the main road Čoka-Kikinda- ZrenjaninPančevo-Kovin-Smederevo link the municipality to the E-75 international route. Currently, a road between Crna Bara and Novi Kneževac is being built, which is a section of the future Banat Highway.

Lepenka Holding Company, and TPS Cimos, based in Kikinda. Aleva is one of the most renowned food producers in Serbia. When it comes to agriculture, all sorts of crops are grown here, in addition to onion, peas, beans, fruit, and other agricultural produce. Due to the municipality’s proximity to Hungarian and Romanian border, there is a great potential for development of tourism, both urban and rural.

DRAGAN BABIĆ, PRESIDENT OF THE MUNICIPALITY OF NOVI KNEŽEVAC: “It takes local authorities 15 days to issue relevant permits.”

INDUSTRIAL ZONES There is a work zone in the municipality, located in the Block 74, which takes up land plots 3120, 3100, 3122 and 514/7, and stretches across 12 hectares. These land plots are suitable for light industries like food processing. The industrial zone has a partial infrastructure. What still needs to be done is to connect the sewage and water supply system to the existing infrastructure. Also, gas, phone lines and electricity all need to be connected.

The industrial zone has a partial infrastructure. What still needs to be done is to connect the sewage and water supply system to the existing infrastructure

MUNICIPALITY’S ECONOMY Municipal authorities recommend the following branches for investing: food processing, agriculture, and production of compost and bio-gas from agricultural waste. The companies that operate in the municipality are Aleva,

INFORMATION FOR INVESTORS Incentives that the municipal authorities can offer to potential investors are a reduced rent fee for land plots, depending on the number of people that an investor hires. If an investor hires a substantial number of unemployed persons who are registered with the National Employment Service, he is eligible for substantial incentives. However, municipal authorities are willing to establish any form of collaboration that is in their and the investor’s best interest. It takes local authorities 15 days to issue relevant permits.

CONTACT Dragan Babić, President of the Municipality of Novi Kneževac 1, Kralja Petra I Karađorđevića 23330 Novi Kneževac Tel: +381(0)230/81-031 Fax: +381(0)230/82-076 Mobile phone: +381 (0)64/8266-800 E-mail: predsednik@noviknezevac.org.rs Website: www.noviknezevac.rs Languages: English and Hungarian

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ODŽACI

INCENTIVES IN PERSPECTIVE The future industrial zones are four kilometres from the town’s centre and they are linked to both regional and main roads and a railway. he municipality of Odžaci is located in northwest Serbia in West Bačka County. In addition to the town of Odžaci, the municipality is comprised of eight villages - Bački Brestovac, Bački Gračac, Lalić, Ratkovo, Deronje, Karavukovo, Bogojevo, and Srpski Miletić. Odžaci, as the municipal centre, has an urban character, judging by its size, population, economic activities, etc., while the other municipal settlements are rural. Odžaci has good infrastructure links with neighbouring municipalities - Sombor, Apatin, Kula, Bač, and Bačka Palanka. All together, these towns make one entity – the West Bačka Danubian region. The Danube River is the most distinct feature of the town’s geographical position. The river runs through the municipality (length: 10 kilometres) and represents the municipality’s western border, as well as the state border with the Republic of Croatia. Odžaci is 36 kilometres from the E-75 motorway, 160 kilometres from Belgrade, and 38 kilometres from the region’s centre, Sombor. The municipality’s territory covers 411 square kilometres.

PREDRAG CVETANOVIĆ, PRESIDENT OF THE MUNICIPALITY OF ODŽACI: “The work force in Odžaci is able and willing to respond to investors’ requests.”

intersected with waterways and with the main focus on agriculture and vegetable growing. The municipality covers an area of 41,115 hectares and 75.50% of the area (i.e. 31,478 hectares) is plough land. The production is mainly agriculture-related, with occasional vegetable growing. Odžaci offers many advantages to potential investors like a well developed road network and connections to neighbouring municipalites, and close proximity to the E-75 motorway and the border with Hungary and Croatia, all important prerequisites for development of international cooperation. The work force in Odžaci is able and willing to respond to investors’ requests. Besides the Danube, Odžaci has other interesting tourist spots suitable for hunting and fishing, such as Štrand Lake in Bogojevo. Odžaci also is known for its archaeological site ‘Crvenokosa Boginja’ (The Redheaded Goddess), dating back to the early Neolithic period.

The municipality of Odžaci is currently preparing both the planning and project documentation for two industrial zones

CONTACT Predrag Cvetanović, President of the Municipality of Odžaci 24, Knez Mihajlova, 25250 Odžaci Tel: +381(0)25/542-411 Fax: +381(0)/542-396 E-mail : protokol@odzaci.info Website: www.odzaci.info Languages: English, Italian and German

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MUNICIPALITY’S ECONOMY The municipality’s economic structure is mainly based on raw-materials found on its territory. Hence, the most developed economic branches are bread and pastry production, fodder production, the chemical industry, production of plastic masses, paper production, brick production, agricultural machinery, and wood processing. As an economic branch, agriculture takes precedent over industry. The municipality’s territory is mostly made of arable land,

INDUSTRIAL ZONES The municipality of Odžaci is currently preparing both the planning and project documentation for two industrial zones. The future industrial zones are four kilometres from the town’s centre and are linked to both regional and main roads, as well as a railway. At this moment, the municipality can offer only land plots that have no appropriate infrastructure. Municipal authorities will decide on incentives for investors once the locations become completely equipped with the required infrastructure. DEADLINES AND PERMITS The shortest possible time for obtaining all required permits and approvals is 60 days.

OPOVO

ORGANIC PRODUCTION The municipality is investing efforts into promoting tourism as the backbone of its development, with special emphasis on integrating agriculture and tourism. he municipality of Opovo is 30 kilometres from both Belgrade and Pančevo and 40 kilometres from Zrenjanin. It covers an area of 203 square kilometres with a population of 11,016. It is located on the left bank of the Tamiš River, which runs through the municipality (29 kilometres of it). The Belgrade – Zrenjanin main road is only 3 kilometres from the municipal centre, as is Corridor 10 (international motorway). The R-124 regional road (VršacPančevo-Zrenjanin) also runs through the municipality and Nikola Tesla Airport is 50 kilometres away.

MUNICIPALITY’S ECONOMY Thanks to its natural resources (fertile land, favourable climate, many waterways), the most developed economic branch here is agriculture, with 60% of the population engaged in it. The Tamiš River, with its deposits of medicinal mud and the municipality’s ethno-cultural heritage, make a solid basis for tourism development. The municipality is investing efforts into promoting tourism, as the backbone of its development, with special emphasis put on integrating agriculture and tourism, all with the aim of accomplishing sustainable development and reducing the unemployment rate, which is currently rather high (44%). An abundant raw-material base and a favourable geographic position facilitate the development of the food processing industry. Close to 10,000 litres of milk is produced at dairy farms in Opovo. Also, pig farmers breed 7,000 pigs annually (700 tons of meat). All of this is suitable for investments in dairy and meat processing facilities. It is important to mention that farmers here also grow so-called white pumpkins, which is synony-

mous for healthy organic food. The pumpkins can be used in production of juices, baby food, as an additive in baking products, sweets, etc. Hence, investing in a facility that would store and process white pumpkins would contribute to a wider use of this healthy food. INDUSTRIAL ZONE There is a plan to build an industrial zone on the territory that belongs to the Baranda local community, which is 2 kilometres from Opovo and 1 kilometre from the village of Baranda. A total of 25 land plots will be available here, covering 15 hectares that would be suitable for building facilities for storing and processing raw-materials and finished products. Also, two land plots have been assigned for a power station and a biodisc. The facilities can take up between 900 and 1,800 square metres, depending on the size of a land plot. The work zone would stretch across 35,490 square metres. INFORMATION FOR INVESTORS The Utva Company in Opovo disposes of a production facility covering 1,600 square metres (or 5.5 hectares of land), which could be of interest to potential investors. The facility has its own energy supply. This used to be the site of a machine building company and is now suitable for investments from companies engaged in metal processing. A potential investor can obtain all required permits and documents in six to seven months. The municipality is known for its medicinal mud (peloids) in the village of Baranda, which is 4 km from Opovo. The main idea is for this mud to be used in a modern spa centre whose construction is envisaged by the municipality’s ‘Plan for Utilizing General Resources.’

MILORAD SOLDATOVIĆ, PRESIDENT OF THE MUNICIPALITY OF OPOVO: “A potential investor can obtain all required permits and documents in six to seven months.”

The Utva Company in Opovo disposes of a production facility covering 1,600 square metres (or 5.5 hectares of land) which could be of interest to potential investors

CONTACT Zoran Tasić, Head of the Economy and Finance Department 10, Borisa Kidriča, 26204 Opovo Tel: +381 (0) 13 681-030; 681-142 Mobile: +381 (0) 63 1060-340 E-mail: zoran.tasic@3dnet.rs Website. www.opovo.org.rs Language: English

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PANČEVO

EXCEPTIONAL STRATEGIC POSITION Both a new set of economic reforms, as well as the proximity of the border with the EU, create a favourable environment that draws in more potential investments.

VESNA MARTINOVIĆ, MAYOR OF PANČEVO: “The most significant foreign investors are Gazprom Neft, Strabag, Messer, Sholz, Austru Bau, and Fluid.”

he town of Pančevo is located in southern Vojvodina at the estuary of the Tamiš and Danube rivers and is the economic, cultural, and administrative centre of South Banat and one of the most important industrial centres in Serbia. The town covers an area of 755 square kilometres. It is only 15 kilometres from Belgrade, and 40 kilometres from Nikola Tesla International Airport. The town’s population numbers 128,477, with as many as 27 different nationalities living here, the majority of whom are Serbs. The work capable population makes 67% of the entire population. 10% of the town’s inhabitants have a junior college or university degree.

INFRASTRUCTURE Since the pan-European Corridors 7 and 10 run through this area, the town of Pančevo has an exceptional strategic position. It also has good-quality road and railway links to Belgrade, since Pančevo is situated on the E-70 motorway. Also, the town lies at the estuary of the Tamiš and Danube rivers. The Danube port makes Pančevo even more appealing for doing business and this is the farthest port upstream for ships of up to 5,000ton capacity, which can sail into the port regardless of the river’s water level. The town’s infrastructure is farily good. It has a total of 150 kilometres of roads and 300 phone lines per 1,000 inhabitants.

CONTACT Vesna Martinović, Mayor 2-4, Trg kralja Petra I , 26000 Pančevo Tel/fax: +381(0)13/346-393; 343 222 E-mail: gradonacelnik@pancevo.rs Website: www.pancevo.rs Local Economic Development Office 2-4, Trg kralja Petra I, 26000 Pančevo Tel/fax: + 381 13 355 480 E-mail: ler@pancevo.rs Website: www.pancevo.rs Languages: all 56 | Vojvodina Investment 2010 / 2011

ECONOMIC POTENTIAL The most important economy branches here are oil processing, production of plastic materials (HIP Petrohemija), mineral fertilizer production (Azotara), agriculture, and the textile and fashion industry. The town of Pančevo makes 1/3 of the province of Vojvodina’s revenue and export. It also has one of the biggest municipal budgets in Serbia. Pančevo is the biggest petro-chemical centre in the Balkans (the oil refinery, Petrohemija), as well as a metal processing centre (air plane manufacturer, Utva, vehicle factory etc.). Also,

the town has a large construction carpentry producer (Tehnomarket), the CAD / CAM technology centre (design and production software), and a light textile and leather processing industry (Passage Group, Modus, Aries Leather). The share of SMEs in overall number of enterprises is 99%. There are close to 5,000 shops and 2,000 companies (60% of them privately owned) in the town. Pančevo has 60,000 hectares of high quality arable land (Stari Tamiš, a part of Almex Group). Also, its skilled work force carries a huge potential. FOREIGN DIRECT INVESTMENTS Both a new set of economic reforms, as well as the proximity of the border with the EU, create a favourable environment that draws in more potential investments. A total of 75% of companies in Pančevo have been privatized, and the most significant foreign investors are the following: Gazprom Neft, Strabag, Messer, Sholz, Austru Bau, and Fluid. CONSTRUCTION LOCATIONS City-owned construction land is not occupied for the most part, while detailed spatial plans have been drawn up. The locations’ advantages are their close proximity to the river and port on the Danube River. If we are talking about infrastructure, there are water and sewage systems in place, as well as a telecommunications network, a high voltage electricity grid, a gas supply (in most locations), and good access to main and regional roads. The following locations are suitable for construction: the Mali Rit zone (64 hectares), the zone near the Topola town quarter and the Danube port (81 hectares), the zone near the Danube, south of Petrohemija’s facilities (190 hectares), and the most southern zone, also near the Danube (90 hectares). Pančevo provides excellent investment potentials due to tax incentives (both on the local and state level), efficient administration, organized assistance to investors, and the free trade regime with Russia and Southeast European countries.

PEĆINCI

EXCLUSIVE WORK ZONES Over 30 greenﬁeld investments, worth 250 million euros, have been made in the municipality of Pećinci so far. he municipality of Pećinci covers an area of 483.65 square kilometres and has 21,506 inhabitants. Favourable transport and geographic positions are just some of the municipality’s potentials. The northern part of the municipality is intersected by the E-70 motorway which is an arm of Corridor 10, an important commuting link with Europe, which connects the municipality with a market of several million consumers. The municipality is 25 kilometres from Belgrade and 15 kilometres from Nikola Tesla International Airport. It is well-connected with the Serbian capital city, while Croatia, Bosnia and Herzegovina, Hungary, and Romania are nearby.

MUNICIPALITY’S ECONOMY There are several economic branches present in the municipality starting with food processing, machine building, chemical, all the way to the construction industry. Lately, the service sector has been developing a lot, particularly cinematography. The municipality has PFI Studios, the largest film studio in this part of Europe. Over 30 greenfield investments, worth 250 million euros, have been made in the municipality of Pećinci so far. Most of the investors come from the EU, including large companies from Slovenia, Austria, Great Britain, Greece, and Hungary, in addition to companies from Israel, Canada, and the US. The most important investors here are: PFI Studios, JUB Boje, Strauss Adriatic (Doncafe Group), Trimo Ing, Agena Tch, Fornetti, Perutnina Ptuj, Naturacoop, ITM Group, Pollino, Termomont, Kleemann Lifts, Lagermax AED, and ID Interactive Design.

which is a great potential for attracting new direct investments. Most of the land plots are located right along the E-70 motorway in the municipality’s centre. There is an exclusive work zone in Šimanovci where close to 30 new greenfield investments have been made so far. The north and southeast work zones stretch across 300 hectares, while the new Šimanovci work zone covers an area of 483 hectares. Land plots are of different sizes, i.e. 1.5, 3, 15, or 185 hectares respectively. The municipality is currently working on building relevant infrastructure in the north and southeast work zones. Internal roads have been built in certain sections. There is a sewage system, and a gas line is going to be connected soon. Works are also being done on the electricity grid and telecommunication installations. Also, there is the possibility of connecting the zone to the water supply system in Šimanovci. INFORMATION FOR INVESTORS Investors in the municipality of Pećinci are fully assisted and supported by local institutions and administration. There is the Municipal Service Centre and Development Agency that will expedite issuing building permits. Also, two strategic documents have been adopted – the Spatial Plan for the Municipality of Pećinci and the Strategy for Local Economic Development, both stipulating key development directions for the municipality. The land development and land utilization fees are lower than in other neighbouring municipalities, as are utility prices. The Spatial Planning, Utility and Housing Affairs Department issues building permits in less than 8 days (which is the legal deadline), provided that an investor has submitted a complete documentation. The time needed for the building permit to be finalized is 30-60 days for simple facilities and 60-90 days for more complex ones.

SINIŠA VUKOV, PRESIDENT OF THE MUNICIPALITY OF PEĆINCI: “The municipality’s spatial plan envisages work zones covering close to 1,800 hectares.”

Investors in the municipality of Pećinci are fully assisted and supported by local institutions and administration

INDUSTRIAL ZONES The municipality’s spatial plan envisages work zones covering close to 1,800 hectares,

CONTACT Radivoj Milošević, Director of the Development Agency 5, Slobodana Bajića, 22410 Pećinci Tel: +381 (0)22/400-734 Fax: +381 (0)22/400-792 Mob: +381(0)64/8983-623 E-mail: radivoj.milosevic@pecinci.org Website: www.pecinci.org Language: English

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PLANDIŠTE

LOCAL SELF-GOVERNMENT PROVIDING FULL SUPPORT The land, with partial infrastructure, is leased out under the best possible conditions to potential investors for a period of 80 years

ZORAN VORKAPIĆ, PRESIDENT OF THE MUNICIPALITY OF PLANDIŠTE: “A potential investor can obtain all required permits, issued by the local authorities, within10 days.”

he municipality of Plandište is one of eight municipalities in South Banat and is a multiethnic community with 20 different nationalities living there. It is situated in southeast Vojvodina at the very border with Romania (along a 30 kilometre section). It covers an area of 383 kilometres, with a population of 13,337 and is comprised of a total of 13 small towns and villages. According to National Employment Service records, 1,401 people in the municipality are unemployed, of whom 636 are unskilled, and 756 have a high school education. 24 people have a university degree (9 of them women). The average revenue per capita is 47,110 dinars, according to the latest data from the Statistical Office in Pančevo. The municipality is only 35 kilometres away from the EU border, i.e from the Vatin-Moravica border crossing. The M 7/1 main road (Novi Sad – Plandište – Timisoara) and the R-125 regional road (Belgrade – Alibunar -Plandište) both run through Plandište. The municipality is 83 kilometres from Belgrade and 125 kilometres from Novi Sad.

MUNICIPALITY’S ECONOMY The main economic branch here is agriculture since the municipality disposes of 33,000 hectares of arable land, of which 13,500 hectares are state-owned and can be leased out to a period of up to 3 years. In addition to agriculture, Plandište has a plastic processing company, as well as a textile company. CONTACT Zoran Vorkapić, President of the Municipality of Plandište 38, Vojvode Putnika, 26360 Plandište Tel: +381(0)13/861-033 Fax: +381(0)13/861-134 E-mail: soplandiste@hemo.net Website: www.plandiste.com Languages: Romanian, Russian, English 58 | Vojvodina Investment 2010 / 2011

INDUSTRIAL ZONES In the last few years, the demand for land with an appropriate infrastructure and suitable for industrial and small enterprise facilities has gone up significantly. There is a plan to build an 26-hectare industrial zone in the vicinity of the M7/1 road (Novi Sad – Timisoara). The land, with partial infrastructure, is leased out under the best possi-

ble conditions to potential investors for the period of 80 years with full support from local authorities. LOCATION 1: Industrial zone for small scale industry, Location - Plandište; Total area: 11 hectares; Type of ownership: State property; Intended use: Construction of petrol station and business premises. This site borders with the regional road M-7/1 (Zrenjanin-Vršac) and is 1 km from the regional road Plandište-Alibunar (in the direction of Belgrade). Power and water supply, as well as a gas pipeline and an optical fibre cable, are a hundred metres from the site, but there is no sewage system. The required planning documentation is currently being written. Up to 70% of this location can be occupied, with the construction index is 1.5. LOCATION 2: Industrial zone for small scale industries, (plot cadastral reg. no. 1395/1 and 1396) – Plandište; Total area: 3.3 hectares, Type of ownership: State property, Intended use: Construction of petrol station and business premises. This site also stretches along regional road M-7/1. Power and water supply connections, as well as a gas pipeline and an optical fibre cable, are a hundred metres from the site and there is no sewage system. However, the necessary planning and regulatory documentation already exists. LOCATION 3: Industrial zone for small scale industries, (plot cadastral reg. no. 2430/1) – Plandište; Total area: 11 hectares, Type of ownership: State property; Intended use: Construction of industrial premises. This site is 500m from regional road M-7/1 and 100 metres from the regional road Plandište-Alibunar (leading to Belgrade). An access road already exists, while power and water supply connection, as well as a gas pipeline and an optical fibre cable, are 100 m from the site. A sewage system does not exist. The construction index is 1.5 and the permitted level of occupation is 70%. A potential investor can obtain all required permits, issued by local authorities, within10 days.

RUMA

WORKING ZONES AS MUNICIPALITY’S ADVANTAGE The Rumska Petlja Industrial Zone is the most attractive location for investing, located at the intersection of the E-70 motorway and the M-21 regional road uma is situated in the heart of Srem at the foot of Fruška Gora between the Danube and Sava Rivers. The municipality covers 582 square kilometres and has 60,006 inhabitants. The number of unemployed persons stands at 5,400, with 50% having a high school diploma and 6% a college or university diploma. In terms of investment potentials, it is the municipality’s geographic position that puts it at the top of the best investment locations in Serbia. Belgrade is only 50 kilometres away, Novi Sad 35 kilometres away, the distance between the town of Ruma and Nikola Tesla Airport is 35 kilometres, while the E-70 motorway and the railway line Corridor 10 are at the town’s outskirts. Corridor 10 connects Ruma to Croatia, Slovenia, and Western Europe on one side, and Macedonia, Bulgaria, Greece, and eastern countries on the other. Aside from the E-70 motorway, the category one state route M-21 (Novi Sad – Šabac) also runs through the municipality of Ruma.

the processing industry (17%), agriculture (12%), construction (8%), transportation, storage, and traffic (8%). INFORMATION FOR INVESTORS The infrastructure network with high-capacity power stations, a good-quality water supply system, gas sub-stations, sewage, and digital telecommunication links put Ruma ahead of many other municipalities in Serbia. Working zones are definitely the municipality’s biggest advantage. There are over 2,000 hectares of available land on Ruma’s territory, which can be used for developing working zones. The Rumska Petlja Industrial Zone is the most attractive location for investing, located at the intersection of the E-70 motorway and the M-21 regional road (Novi Sad – Šabac). This zone covers 308 hectares of land and is entirely owned by the municipality of Ruma. The zone will be split into blocks, with each block having a service road. The infrastructure (gas, water and electricity) will be located in the corridors. Works in the zone will start in 2010 and will develop in line with investors’ needs. Each land plot will cover from 1.5 to 50 hectares. The municipality charges very favourable land development fees, depending on the size of the land plot chosen by investors, their demands in terms of infrastructure, and the number of new jobs that they will create. The main reasons for choosing to invest in the municipality are an exceptional geographic position, a businessminded environment, strong economic potentials, and entrepreneurial culture. Also, municipal authorities are always ready to establish economic cooperation and willing to accommodate future investors in every way they can.

GORAN VUKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF RUMA: “The main reasons for choosing to invest in the municipality are an exceptional geographic position, a business-minded environment, strong economic potentials, and entrepreneurial culture.”

The municipality charges very favourable land development fees

MUNICIPALITY’S ECONOMY Thanks to its geographic position, the municipality has a lot of top-quality arable land. Aside from agriculture, which is quite developed here, other industrial branches that are present in the municipality are leather processing, manufacture of footwear and rubber products, construction materials production, metal processing, printing and food processing industries, transportation, retail, arts and crafts, and catering. When it comes to company structure, most companies in the municipality are engaged in retail (42%), followed by

CONTACT Goran Vuković, municipality’s president 155, Glavna, 22400 Ruma Tel: +381(0)22/478-314; 478-620 Fax: +381(0)22/479-588 E-mail: rumaopstina2@nadlanu.com Website: www.ruma.rs Language: English

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SEČANJ

EXCEPTIONAL NATURAL POTENTIAL ‘The Study on Exploitation and Utilization of Thermo-Mineral Springs in the Municipality of Sečanj’ could be of interest to potential investors.

PREDRAG MILOŠEVIĆ, PRESIDENT OF THE MUNICIPALITY OF SEČANJ: “The municipality is pinning its hopes on making Sečanj’s 52-hectare Northwest Work Zone functional.”

he municipality of Sečanj is situated in the northeast part of Serbia in Central Banat County, in the east of the Autonomous Province of Vojvodina. It takes up 523 square kilometres and has 16,377 inhabitants. Sečanj is the administrative centre of the municipality, which also has 11 villages. The municipality borders with Romania and the municipalities of Žitište, Zrenjanin, Kovačica, Alibunar, and Plandište. Sečanj is located on the first-class state route M-7.1 (Zrenjanin – Vršac) and the Zrenjanin-Sečanj-Plandište-Vršac railway line. The municipality’s villages are well-connected by a network of class II state roads, as well as local roads. Sečanj is 95 kilometres north of Belgrade and 87 kilometres from Novi Sad. It is also only 14 kilometres from the state border with Romania.

no fish processing facilities, so opening such plant would be a good and profitable move that would also lead to creation of new jobs. Tourism in the municipality is mostly based on hunting and fishing. At the same time, there are no organized sites for sport fishing. The municipality has a plan to create a fishing location and open a beach in Krajišnik, as well as one on the Tamiš River. INDUSTRIAL ZONES Currently, the municipality is pinning its hopes on making the Northwest Work Zone in Sečanj functional. The zone covers 52 hectares of land (36 hectares available for lease) and the zone is considered a good resource. Municipal authorities have drawn up a detailed regulation plan, the zone has electricity, and works are being done on connecting it to the gas supply. Other infrastructure (namely water supply and a sewage system) is currently in the project stage. The Zrenjanin-Sečanj-Vršac railway line runs near the north section of the zone, while the first-class state route M-7.1 (Zrenjanin-Sečanj-Vršac) runs along its southern border, which makes this location especially attractive for investors in terms of transport links.

The municipality disposes of natural potentials like arable land, water resources, mineral raw-materials, substantial deposits of clay used in brick production…

CONTACT Dejana Milošević, Head of the Economy Department 57, Vožda Karađorđa 23240 Sečanj, Tel: +381(0)23/842-066, Mob: +381(0)64/802-34-14, E-mail: mdejana@beotel.net, Website: www.sosecanj.rs 60 | Vojvodina Investment 2010 / 2011

MUNICIPALITY’S ECONOMY The municipality disposes of natural potentials like arable land, water resources, mineral raw-materials (oil, gas, geothermal springs), substantial deposits of clay used in brick production, and has all the prerequisites for hunting, fishing, sports, recreational, cultural, and transit tourism development. The main economic activity here is agriculture. There are available capacities for oil plants and crop storage. Fruit-growing constantly developing because of the municipality’s highly fertile soil and there is the opportunity to export to the Russian market. There is also a plan to build a cold storage and fruit processing facility here. The municipality has 5 fish ponds, where it mostly breeds carp. However, there are

INFORMATION FOR INVESTORS ‘The Study on Exploitation and Utilization of Thermo-Mineral Springs in the Municipality of Sečanj’ could be of interest to potential investors. The study covers only those springs that can be economically utilized in terms of available technology today.

SENTA

TECHNICAL ASSISTANCE TO INVESTORS An investor can be granted a 3-year-exemption from paying the land development fee and the fee for displaying his business’s name. he municipality of Senta covers an area of 293 square kilometres. It is 46 kilometres from the Hungarian border and 77 kilometres from the border with Romania. Senta is the sub-regional centre, and it borders on the municipalities of Kanjiža, Novi Kneževac, Čoka, and Ada. The municipality’s population is 25,568. Most of the land (91.5%) is agricultural, 1.5% is covered in forests, and 7% serves other purposes. The E-75 motorway is 33 kilometres from the municipality. In addition, the M-3 main road that connects the Croatian and Romanian border runs through the municipality. There is also the regional Subotica – Senta – Timisoara railway line. The municipality’s main features are a favourable geo-strategic position (on the Tisa River), a port, public warehouses, custom clearance offices, close proximity to state borders with two countries, and the Corridor 10 (E-75 motorway).

land plot 2 – 2.8 hectares, land plot 3 – 0.2 hectares and land plot 4 – 18.9 hectares. The zone is well-connected to the surrounding areas, and aside from local roads, there is the main block road that provides access to land plots inside the complex. The South Industrial Zone has a complete infrastructure – access roads, high voltage electricity supply, water supply system, sewage, gas, phone lines, railway line, and international port and customs clearance offices. We should also mention that the so-called primary utility infrastructure is already in place, while an investor will have to build the secondary infrastructure. Also, the process of changing the land’s purpose still hasn’t been completed. The West Industrial zone covers 38 hectares of land, with 37 hectares already taken, and only 1 hectare available (land plot no. 1).

ANIKO ŠIRKOVÁ, PRESIDENT OF THE MUNICIPALITY OF SENTA: “The municipality of Senta has two industrial zones – South and West.”

Required permits and documents can be obtained within 3 weeks’ time

MUNICIPALITY’S ECONOMY The main advantages of Senta lie in the town’s industrial zones, suitable for greenfield investments, top quality industrial locations and facilities ideal for brownfield investments, as well as skilled human resources with competitive labour wages. Senta is known for its industrial production, and has developed a food processing industry which generates 50% of the municipal revenue. Local companies are open to joint investments. INDUSTRIAL ZONES The municipality of Senta has two industrial zones – South and West. The South Industrial zone has 125 hectares, with 79.5 hectares already occupied and 45.5 hectares available. Land plot 1 covers 23.5 hectares,

INCENTIVES FOR INVESTORS An investor can be granted a 3-year-exemption from paying the land development fee and the fee for displaying his business’s name. Municipal authorities will provide the needed technical assistance at the beginning of an investment process, as well as contacts with various agencies, institutions, and companies. The authorities will also shorten the process of granting permits as much as possible, and organize training sessions for workers with the help of the National Employment Service. Required permits and documents can be obtained within 3 weeks’ time. INVESTORS The biggest investors that have invested in the municipality so far are: Altech-Fermin (USA), JTI (JPN), a sugar refining plant (ITA), Mecafor (FRA), KTC (CRO), Biljemerkant (CRO), and Mercator (SLO).

CONTACT Aniko Širková, President of the Municipality of Senta 1, Glavni trg, 24400 Senta Tel: +381(0)24/813-574 Fax: +381(0)24/812-034 E-mail: info@zenta-senta.co.rs Website:www.zenta-senta.co.rs Languages: English, Hungarian and German

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SOMBOR

IDEAL LOCATION FOR THE FOOD PROCESSING INDUSTRY Sombor’s industrial zone is located along the town’s southeastern limits, and covers an area of 500 hectares.

NEMANJA DELIĆ, MAYOR OF SOMBOR: “If the town authorities or institutions are in charge of issuing required permits, then the issuing period is up to 7 days, provided that an investor submits a complete and accurate documentation.”

he town of Sombor is located in the very northwest part of the Republic of Serbia. The town is 175 kilometres north-west from Belgrade, 100 kilometres northwest of Novi Sad, 60 kilometres southwest of Subotica, 223 kilometres south of Budapest, 345 kilometres southeast of Vienna and 374 kilometres east of Zagreb. Sombor’s population numbers 42,235. Most of the population is engaged in agriculture and hunting and forestry, followed by the processing industry, retail, vehicle repair, health services, and social work. 3,913 inhabitants have a university degree, 3,419 have a junior college degree, while most of the work capable population, i.e. 36,713 of them, have completed a high school education.

TRANSPORT INFRASTRUCTURE The town of Sombor is situated between two pan-European corridors – 7 and 10. The town is connected to the pan-European road Corridor 10, which is only 60 kilometres from Sombor, via regional roads and railway tracks, and to Corridor 7 via its river pier and customs office near Bezdan (the river of Danube). The Corridor 7 section, which runs through the town, is 25 kilometres long. Also, there is a developed network of main roads M17 / 1 and M18, regional roads R101, R105 and R105 / 1 and local roads. Passenger and cargo railway transport is carried out via one-track railway lines that lead to Subotica, Vrbas, Bogojevo, and Apatin.

so has a long tradition in Sombor. There are quite a few successful companies that are engaged in leather, footwear, and knitwear production. A favourable climate and good quality of land, suitable for afforestation, have created an exceptional raw-material potential for development of the wood processing industry. Furniture production, as one branch of the wood processing sector, is the most developed industrial branch in Sombor. Also, the town’s other raw-material capacities are open to investments in order to further develop this industry. So far, the biggest investors here are the following: Ferrariplast –Italy, FioranoItaly, Dukat-Croatia, and KTC-Croatia. INDUSTRIAL ZONE Sombor’s industrial zone is located along the southeastern town limits, and covers an area of 500 hectares. The zone is 185 kilometres from Belgrade, 180 kilometres from Surčin Airport, 60 kilometres from the motorway, 25 kilometres from the border with Croatia, 28 kilometres from the border with Hungary, and 20 kilometres from the Danube River. The zone has a primary gas supply, electricity, running water, wastewater sewage, a road network, and partially-constructed atmospheric sewage, which is connected to drainage canals. The initial lease price of 1m² in the Sombor industrial zone stands at 9,5 EUR/m2 (the price includes the land price of 4,5 EUR/m2 and the required infrastructure price of 5 EUR/m2 , which includes the costs of the road, water supply, sewage, and electricity infrastructure).

The town of Sombor is situated between two pan-European corridors – 7 and 10

CONTACT Mihael Plac, head of the Local Economic Development Office 1, Trg Cara Uroša, 5000 Sombor Tel: + 381(0)25/468-160 Fax: + 381(0)25/468-156 Mob: + 381(0)63/722-87-29 E-mail. klersombor@gmail.com Website: www.sombor.rs Languages: English, German, Hungarian 62 | Vojvodina Investment 2010 / 2011

TOWN’S MUNICIPALITY Sombor disposes of the biggest state-owned arable land in the area, and is an ideal location for investing in agriculture, which provides an excellent raw-material basis for the food processing industry. This has been recognized by foreign investors who have invested substantial funds in the development of the dairy industry. Textile processing al-

DEADLINES AND PERMITS If the town authorities or institutions are in charge of issuing required permits, then the issuing period is up to 7 days, provided that an investor submits complete and accurate documentation. The Local Economic Development Office is the contact point for any questions regarding permits.

SRBOBRAN

TWO INDUSTRIAL ZONES Municipal authorities can offer potential investors state-owned land plots in the south part of its industrial zone, which can be leased for a period of 80 years free of charge provided that an investor hires at least 17 workers who reside in the municipality. he municipality of Srbobran is situated in Vojvodina in the central part of Bačka. It stretches across 284 square kilometres and is comprised of one town and two villages – Srbobran, Turija, and Nadalj. The municipality has 17,855 inhabitants, with 67% of them Serbs, 21.95% Hungarians, and 11.05% belonging to other nationalities. The municipality is 33 kilometres from Novi Sad and close to 100 kilometres from Belgrade. The E-75 motorway, the M-3 and M-22 main roads and the R-129 and R-120 regional roads all run through the municipality. Also, there is a section of the DTD Canal here. The municipality is 70 kilometres from the state border with Hungary, Romania, and Croatia.

for industrial facilities. We ought to mention that land plots here are leased out free of charge. INDUSTRIAL ZONES The municipality of Srbobran has two industrial zones. The first one is in the western part of the municipality along the motorway and the M-3 main road, which covers 60 hectares and has a detailed regulation plan. Infrastructure is currently being built in the zone. The second zone is located in the southern part on the outskirts of the construction zone near Srbobran along the M-22 main road and R-129 regional road. This zone covers an area of 90 hectares. 30 hectares are state-owned with municipal authorities having utilization rights. This zone has a utility infrastructure and the plan is to extend the road network here, construct a water supply system, and build new power stations.

BRANKO GAJIN, PRESIDENT OF THE MUNICIPALITY OF SRBOBRAN: “All required permits are issued within legally defined deadlines, if an investor submits complete documentation.”

There are close to 200 companies and 500 entrepreneurs in the municipality

MUNICIPALITY’S ECONOMY There are close to 200 companies and 500 entrepreneurs in the municipality. The following economic branches are the most developed here: agriculture (production and processing of agricultural produce), wood and metal processing, manufacturing rubber products, construction, transport, and others. The municipality has warm thermal springs. Ground water is usually used to irrigate crop fields, while the Great Bačka Canal is used for water transport. There are oil deposits and larger gas deposits, which are currently being exploited, and when it comes to non-metal raw materials, clay is widely used. Fishing and hunting are also quite popular on the grounds near the canal. The municipality’s geographic position, raw-material base (for food industry), transport infrastructure, and close proximity to the town all make good prerequisites

INFORMATION FOR INVESTORS Municipal authorities can offer potential investors state-owned land plots in the south part of its industrial zone, which can be leased for a period of 80 years free of charge provided that an investor hires at least 17 workers who reside in the municipality. All required permits are issued within legally defined deadlines, if an investor submits complete documentation. The Act on Spatial Planning Conditions (or the excerpt from the spatial plan) is issued in 30 days’ time, while a building permit is issued in 15 days’ time. The following investors have invested in the municipality of Srbobran so far: Austrotherm d.o.o. (Srbobran, Vrbaški put bb), and Phiwa from Subotica.

CONTACT Dragan Šarčev, Head of Municipal Administration 2, Trg Slobode, 21480 Srbobran Tel: +381(0)21/730-020, Fax: +381(0)21/731-079, E-mail: info@srbobran.rs Website: www.srbobran.rs Language: English

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SREMSKA MITROVICA

IDEAL CONDITIONS FOR AGRICULTURE AND TOURISM DEVELOPMENT The municipality has set up several appealing industrial zones, which are going to trigger future development.

BRANISLAV NEDIMOVIĆ, MAYOR OF THE CITY OF SREMSKA MITROVICA: “The Free Zone, located in the port of Leget, plays an important role in the development of Sremska Mitrovica’s economy “

he town of Sremska Mitrovica, along with its suburban areas of Laćarak and Mačvanska Mitrovica, has over 60,000 inhabitants. The municipality covers 762 square kilometes and is comprised of 26 smaller towns and villages, with a population of 86,600. Sremska Mitrovica is only 60 kilometres from Belgrade, 55 kilometres from Novi Sad, 30 kilometres from the Republic of Srpska, and 35 kilometres from Bosnia & Herzegovina. An international motorway (part of Pan-European Corridor 10) runs near Sremska Mitrovica. The Belgrade – Thessaloniki railway passes through the town, while Nikola Tesla Airport is only 40 kilometres away. The town also has a port on the left bank of the Sava River.

MUNICIPALITY’S ECONOMY Basic agricultural production with a welldeveloped agricultural and food processing complex make up the foundation of the municipality’s economic structure. Most people in rural areas are engaged in agriculture and cattle breeding, since this area has highly fertile land and a favourable climate. High-yield maize, quality wheat, and diverse industrial cultures are typical for this area. Full utilization of Sremska Mitrovica’s tourism potential and advancing its tourist offer, as well as quality of services, are priority tasks of both the municipal authorities and people employed in the tourism sector. Archeological sites with the remnants of ancient Sirmium including the Emperor’s Palace, the foundations of the oldest Christian church in Serbia, and a beautiful two-century-old town centre,

all make Sremska Mitrovica a place you must see. FREE ZONE The Free Zone, located in the port of Leget, plays an important role in the development of Sremska Mitrovica’s economy. Thanks to the zone’s infrastructure, favourable conditions, the proximity of the main roads and the Sava River, companies that use the zone are able to establish good cooperation with foreign partners. The most important investors in the last few years have been companies like Metalfer Steel Mill, Moeller, Mitsides Point, and Slaviamed. INDUSTRIAL ZONE Thanks to a prudent policy exercised by municipal authorities, industrial zones are equipped with required infrastructure and house many small industrial facilities. Sremska Mitrovica has several industrial zones, which are going to trigger the municipality’s development. The most import is the North Industrial Zone, which stretches across 13.5 hectares and lies in an exceptionally favourable and attractive location, right next to the E-70 motorway, important regional roads, and the railway line.

The most import is the North Industrial Zone, which stretches across 13.5 hectares

CONTACT Danijela Međedović, Local Economic Development Office coordinator 13, Svetog Dimitrija 22000 Sremska Mitrovica Tel: +381(0)22/610-538, Mob: +381(0)64/889-46-39, E-mail: smkler@gmail.com Website: www.sremskamitrovica.org.rs 64 | Vojvodina Investment 2010 / 2011

INFORMATION FOR INVESTORS Potential investors can acquire land plots under very favourable conditions. If an investor builds a facility that covers more than 2,000 square metres and employs over 100 workers, he is exempt from paying the land development fee. If an investor builds a facility that covers more than 2,000 square metres and hires over 30 workers, he can pay the land development fee over a tenyear period, with a 3-year grace period.

SREMSKI KARLOVCI

TOURISM AND VITICULTURE The Provincial Secretariat for Science and Technology Development provides incentives in terms of giving grants for equipment used by investors that invest in the municipality of Sremski Karlovci. he municipality of Sremski Karlovci is the smallest municipality in the Autonomous Province of Vojvodina. It covers an area of 5,054 hectares and has 8,839 inhabitants. The municipality has an exceptional geographic position. It is situated at the very northeastern part of Srem County at the foot of the Fruška Gora along the bank of the Danube River. Novi Sad is 10 kilometers away, Belgrade 65 kilometres, while Nikola Tesla Airport is only 55 kilometres away.

MUNICIPALITY’S ECONOMY The economy in Sremski Karlovci has great development potential. The economic branches that are present in Sremski Karlovci are quite diverse and include construction materials production, metal processing, textile industry, transport, and retail. Enterprises here are mostly small and medium. Tourist capacities in Sremski Karlovci are also continuously developing. The municipality has two hotels and two privately-owned accommodation facilities, as well as several restaurants with authentic traditional cuisine. One of the most important investment resources in the municipality is arable land. Lately, a lot has been invested in viticulture and wine making. A master plan for development of tourism has been written both for Sremski Karlovci and Fruška Gora.

tail facilities). There are two facilities already built in this zone – one used by the Danube Fishing Association and a fishing equipment retail facility. The second area (covering close to 3 hectares of land) is also suitable for sports and recreational activities, as well as for the construction of a sport hall, football, handball, and tennis courts. The third area (6 hectares) is ideal for a camp site (the beach is nearby), including any facility that is related to tourism, catering, supply, and general-purpose business activities. 1.5 hectares of land is designated for a beach with all auxiliary facilities. Most of this area is covered in forest and there is also a well-equipped camp site. The fourth area (covering 5 hectares) is an ideal location for fishermen and weekend houses. There is a plan to build several bungalows there too, i.e. 30 or so small fisherman huts, each covering 30 square metres. INDUSTRIAL ZONE The municipality has a work zone covered by a detailed regulation plan. Also, there is an area designated for building a sports and recreational complex that has partial infrastructure, i.e. there is a power station, main water supply, and sewage. The Provincial Secretariat for Science and Technology Development provides incentives in terms of giving grants for equipment used by investors that invest in the municipality of Sremski Karlovci. The condition is that investments have to be made in advance technology. An investor can obtain all required permits and documents within legally defined deadlines depending on the type of investment. The most important investor here is NEXE Group from Croatia.

MILENKO FILIPOVIĆ, PRESIDENT OF THE MUNICIPALITY OF SREMSKI KARLOVCI: “A master plan for development of tourism has been written both for Sremski Karlovci and Fruška Gora.”

The municipality has a work zone covered by a detailed regulation plan

TOURISM AS THE BASIC ECONOMIC ACTIVITY Municipal authorities have devised four separate areas for various purposes. The first area covers 3.23 hectares of land and is ideal for tourist and sports activities (like nautical tourism, catering, sport clubs, fishing, accommodation, and re-

CONTACT Vladimir Žeravica, Economy and Agriculture Executive Officer 1, Trg Branka Radičevića 21205 Sremski Karlovci Tel: +381(0)21/6853-000 Fax: +381(0)21/6853-077 E-mail:sremkarl@eunet.rs Website: www.sremski-karlovci.org.rs Language: English

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STARA PAZOVA

THE CENTRE OF SMALL BUSINESS There are four industrial zones in the municipality: the East and North Work Zones in Stara Pazova, an industrial zone in Nova Pazova, and an industrial zone in Krnješevci.

GORAN JOVIĆ, PRESIDENT OF THE MUNICIPALITY OF STARA PAZOVA: “All required building permits can be obtained within two months’ time.”

he municipality of Stara Pazova has an excellent geographic position. It is 30 kilometres from Belgrade and 40 kilometres from Novi Sad. All main transport routes intersect the municipality – the BelgradeZagreb motorway (E-70) – Corridor 10, the Belgrade – Novi Sad motorway (E75), the M-22/1 main road and R-106 and R-121 regional roads. The international railway connects the municipality with Subotica and further on with Munich (northbound), and with Niš and further on with Greece (southbound). Nikola Tesla Airport is 25 kilometres from the centre of Stara Pazova, while Batajnica military aiport is only 8 kilometres away. The Danube River runs along the east outskirts of the municipality which rounds off the municipality’s transport network. The municipality covers an area of 351 square kilometres and has 70,000 inhabitants. Its administrative centre is Stara Pazova. The municipality also has 3 towns: Stara Pazova, Nova Pazova, and Novi Banovci, as well as six villages: Golubinci, Vojka, Stari Banovci, Belegiš, Surduk, and Krnješevci.

INDUSTRIAL ZONES There are four industrial zones in the municipality: • East Work Zone in Stara Pazova – it covers an area of 125 hectares (land plot size ranges from 3.757 m2 to 11.591 m2). It is 500 metres from the E-75 motorway, 30 kilometres north of Belgrade, and 25 kilometres from Nikola Tesla Airport. This zone has road infrastructure, water supply, sewage, optical cables and there is a plan to connect it to the main gas supply in the near future. • North Work Zone in Stara Pazova – covers an area of 100 hectares. The M-22 main road runs near the zone which is 5.5 kilometres from the E-75 motorway, 38 kilometres from Belgrade and 25 kilometres from Nikola Tesla Airport. • Industrial zone in Nova Pazova (Block 25) – stretches across 87 hectares and is located in the town of Nova Pazova. The zone is 22 kilometres from Belgrade, and 20 kilometres from Nikola Tesla Airport. It has a full infrastructure (water supply, sewage, gas, optical cables, electricity, inner roads, and access to the M-22/1 road). • Industrial zone in Krnješevci – the zone stretches across 580 hectares. It is 800 metres from the E-75 motorway, 20 kilometres from Belgrade, and 12 kilometres from Nikola Tesla Airport. The works on infrastructure and urban planning activities have already begun and constitute one of the municipality’s priorities.

The land development fee can be paid in 24 installments

CONTACT Goran Jović, President of the Municipality of Stara Pazova 11, Svetosavska, Stara Pazova 22300 Tel: +381(0)22/310-170, extension 45 Fax: +381(0)22/310-000 E-mail: goran.jovic@starapazova.eu; office@starapazova.eu Website: www.starapazova.eu Languages: English, Slovak 66 | Vojvodina Investment 2010 / 2011

MUNICIPALITY’S ECONOMY The municipality of Stara Pazova has a long tradition in small business. It has over 600 small and medium enterprises and over 2,500 arts and crafts shops. The municipality has diverse industrial branches – metal processing, plastic, rubber, wood processing, construction, and many others. Thanks to its outstanding natural resources, agriculture is one of the most important economic branches in the municipality. The municipality of Stara Pazova has 30,000 hectares of arable land, with emphasis on crop farming.

INFORMATION FOR INVESTORS The land development fee can be paid in 24 installments. All required building permits can be obtained within two months’ time. The most important investors in the municipality are Nestle, Alumil, Volvo, Milšped, Mercedes, Yugotub, IMG, Evropa Okovi, Arti, etc.

SUBOTICA

THE MOST SUITABLE LOCATION Interested investors are invited to investigate potentials in the bakery, confectionery, and dairy industries, wine production, production of alcoholic and soft drinks, production of natural juices, organic food production, the graphic industry… he city of Subotica is situated on the northernmost part of Serbia and stretches across 1008 km². The city, with its 18 surrounding settlements, is easy to reach due to the good connection with Corridor X, the W-85 railway, and two international border crossings 10-30 km away. The nearness of the border to the European Union and the well-developed and functioning logistics in production and trade make Subotica the most suitable location in Serbia for investments that target foreign markets. Another great advantage defined by investors already working in Subotica is the reliability and loyalty of local labor force. The region has a long tradition in economy. Dominating industries are agriculture, production and processing of food products, electrical industry, metallurgy and chemical industry, and the service sector. There are over 3000 companies operating on the territory of Subotica, along with more than 4000 entrepreneurs. The total annual income is approximately 1.5 billion euros, while exports amount to about 276 million euros and imports to 438 million euros. The labor market offers young and experienced manpower in various fields.

Technological Parks Public Enterprise to coordinate on-site activities, to follow negotiations with potential investors, and to secure aftercare programs for investors. Offers/incentives for potential investors The incentives the city offers are in line with the newly-adopted Law on Spatial Planning. There are special conditions defined for big investments, which can be determined case by case. Subotica also offers the services of the Free Zone Subotica Ltd, which has the capacity to host production and storing with special customs and VAT incentives. Also, for investors interested in tourism, a detailed Master Plan has been drawn up for the development of tourism around Lake Palić. Due to the variety of economic sectors present, interested investors are invited to investigate potentials in the bakery, confectionery, and dairy industries, wine production, production of alcoholic and soft drinks, production of natural juices, organic food production, graphic industry, clothing and footwear industry, production and processing of plastics, civil engineering, electro-industry, etc. Time frame needed for investors to obtain all necessary permits and documents The time frame for obtaining all necessary permits and documents depends on different parameters and it’s very hard to determine a general frame. However, the best example is the case of the KTC shopping centre from Croatia. After the first contacts with the city administration, it took only 6 months to open the KTC shopping centre in Subotica.

SAŠA VUČINIĆ, MAYOR OF THE CITY OF SUBOTICA: “The time frame for obtaining all necessary permits and documents depends on different parameters and it’s very hard to determine a general frame.”

Subotica is the first city to obtain former military land and barracks from the army

INDUSTRIAL ZONES AND FACILITIES Subotica is the first city to obtain former military land and barracks from the army and has also obtained agricultural land from the state. The land on offer currently lies on a total of 200 ha over four locations (21+123+53+2 ha). The city administration, together with public utilities and enterprises, is determined to facilitate these locations fully according to investors’ needs, and currently detailed planning is in process. The City Assembly formed the Economic-

INVESTORS IN SUBOTICA Investors already present in Subotica: Siemens (Germany), Masterplast (Hungary), Phiwa (Germany), KTC (Croatia), Leonardo (Italy), ATB Sever, (Germany) Fornetti (Hungary), Gebi (local), Subotica Dairy Plant (local), Fidelinka (local), Idea (Croatia), etc.

CONTACT Saša Vučinić, Mayor of the City of Subotica Tel/Fax: +38124666677 E-mail: mayor@subotica.rs Simonida Pavićević, Chief of Local Economic Development Office 1, Trg slobode, 24000 Subotica T: +38124626877, F: +38124525242 E-mail: ler@subotica.rs Web site: www.subotica.rs, www.suboticainvest.com Languages: Serbian, Hungarian, English and German

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ŠID

A MUNICIPALITY WITH A FUTURE The following industrial branches are developed in the municipality of Šid: agriculture, forestry, water supply, ﬁshery, processing, food processing, and chemical industries.

NATAŠA CVJETKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF ŠID: “The road network in the municipality is made up of 19.5 kilometres of motorways, 38 kilometres of main roads, 63 kilometres of regional roads, and 56.5 kilometres of local roads.”

he municipality of Šid borders on the Republic of Croatia and the Republic of Srpska. There are eight border crossings on the municipality’s territory. Aside from the two international border crossings, two are improvised, with temporary facilities that house relevant border services. The railway station in Šid holds a special importance and has a border status. The road network in the municipality is made up of 19.5 kilometres of motorways, 38 kilometres of main roads, 63 kilometres of regional, and 56.5 kilometres of local roads. The E-70 motorway (Belgrade – Zagreb), the M-18 and M18/1 main roads, and the R-106, R-103 and R-128 regional roads all run through the municipality. Also, there is the main railway line Belgrade – Šid – state border that links the municipality to the Republic of Srpska and the Republic of Croatia, as well as the one-track railway Šid-Bjeljina, which connects the Republic of Serbia and the Republic of Srpska. The municipality of Šid has 38,973 inhabitants. 22,922 people are work-capable, and 8,585 have full-time employment. The unemployment rate in 2008 stood at 28.77%. The municipality has a total of 41,316 hectares of agricultural land, 21,768 hectares of forest, and 838 hectares of water. The following industrial branches are developed in the municipality of Šid: agriculture, forestry, water supply, fishery, processing, food processing, and chemical industries.

al road, with a canal at its western outskirts. There is a plan to build a bypass in the east. The zone is privately owned. Industrial zone 2a has 30.62 hectares of land and is located between Šid and Adaševci, near the road. Several companies, like Victoriaoil, LIPA, JIT Tehnic, TIM Izolirka, Trend Commerce, and Grafosrem are already using facilities in this zone. As with the previous zone, there is a plan to build a bypass in close proximity to the location. This zone is also privately owned. Industrial zone 4 (107.81 hectares) is owned by the municipality and it is near the E-70 motorway. Industrial zone 2b stretches across 29.11 hectares of land and is near the eastbound section of the M 18.1 road in the northern part of the construction land area. The Bijeljina – Šid railway line passes next to this location, and a bypass will be built nearby. It is privatelyowned. All zones have partial infrastructure.

There are eight border crossings on the municipality’s territory

CONTACT Nataša Cvjetković, municipality’s president 2, Karađorđeva, 22240 Šid Tel: +381 (0)22/712-544 Fax: +381(0)22/715-708 Mob: +381(0)62/755-909 E-mail: kabinet@nadlanu.com Website: www.sid.org Language: English 68 | Vojvodina Investment 2010 / 2011

INDUSTRIAL ZONES Industrial zone 1a covers 115.09 hectares of land, with the R-10 regional road running next to it. This location is situated between Šid and the state border with Croatia. One facility in the zone is privately-owned. Industrial zone 1b stretches across 113.11 hectares and is located at the north section of the R-103 region-

INFORMATION FOR INVESTORS We can offer potential investors high-quality arable land, suitable for all sorts of agricultural activities, natural, historic, and cultural potentials for development of tourism, an exceptional geographic position, and a processing industry. DEADLINES AND PERMITS An urban planning excerpt can be obtained within 8 days, an urban planning act within 30 days, building permit in15 days, and a registration of construction works in 8 days. IMPORTANT INVESTORS The most important investors in the municipality are the following: cooking oil producer Victoria Oil, manufacturer of insulation materials TIM Izolirka, L.A.A.B. Group (produces and retails plastic packaging), Inter MOL d.o.o. (a petrol station), and Oktan Promet (a petrol station).

TEMERIN

AGRICULTURE AS THE MOST IMPORTANT ECONOMIC BRANCH The municipality of Temerin disposes of 15,748 hectares of agricultural land, which represents 92.8% of the entire municipality’s territory. he municipality of Temerin covers an area of 170 square kilometres and is located in the southeast part of Bačka. In the east, it borders with the municipality of Žabalj, in the north with the municipality of Srbobran, in the west with the municipality of Vrbas, and in the south with the city of Novi Sad. Temerin is only 100 kilometres from the EU border, 80 kilometres from Belgrade, and 7 kilometres from Novi Sad. The most important roads that run through the municipality are the E-75 international motorway, the M-22 (as of recently, it is called the E-5 international route), and the R-120 regional road. All three roads are intersected by the R-104 regional road in the direction of Odžaci-ZmajevoSirig-Temerin-Žabalj. Having Novi Sad, the most developed economic centre in Vojvodina, nearby has certainly contributed to the municipality’s development so far.

INDUSTRIAL ZONE Location 1: Industrial zone – Temerin; Total area: 100 hectares; Ownership: Private and state property; Intended use: Small scale industry. The site is located 2.5 km from the town centre and has access to the power supply system. Water and gas supply systems, as well as access to a fibre optic cable, already exist. Sewerage reticulation is planned. LOCATION 2: Lot B-4 – Temerin; Total area: 220hectares; Ownership: Private and state property; Intended use: Small scale industry. This site is situated alongside regional road R-120, 5 km from the town centre. The site has access to power supply system, while access to water and gas supply systems and access to a fibre optic cable exist. Sewage reticulation is planned in this municipality. LOCATION 3: Lot nearby the road – Temerin; Total area: 200 hectares; Ownership: Private and state property; Intended use: Small scale industry. This site is alongside the regional road R-104 and is partially equipped with infrastructure / public utilities. A power supply system is planned, while water and gas supply systems stretch along the site’s outskirts, connection to sewage reticulation is planned, access to fibre optic cable exists. LOCATION 4: Lot nearby the R-120 road – Temerin; Total area: 350 hectares; Private and state property; Intended use: Small scale industry. This site is located along the projected bypass of the R-120 regional road (Temerin-Bački Jarak). The site is partially equipped with infrastructure and public utilities. The local water supply system and gas pipeline connection are in the site’s vicinity.

AndrÁs Guszton, President of the Municipality of Temerin: “Today, there are close to 1,000 enterprises in the municipality.”

The biggest economic potentials lie in agriculture, the metalworking industry, trade, and services

MUNICIPALITY’S ECONOMY The biggest economic potentials lie in agriculture, metalworking, trade, services, and others. When it comes to the revenue it generates, agriculture is a very important economic branch. The municipality of Temerin disposes of 15,748 hectares of agricultural land, which represents 92.8% of the entire municipality’s territory. Most of this land is plough land and vegetable gardens. Orchards and vineyards comprise 100 hectares. Following agricultural reforms, cooperatives were established and they currently manage 27% of the entire agricultural land, including land owned by the municipality of Temerin (2,746 hectares of it). Today, there are close to 1,000 enterprises in the municipality, employing over 1,700 workers with a tendency of this number to become even higher.

DEADLINES AND PERMITS The shortest possible period necessary for obtaining all required building permits and approvals is six months.

CONTACT András Guszton, President of the Municipality of Temerin. 326, Novosadska, 21235 Temerin Tel: +381(0)21/843-888; Fax: +381(0)21/842-792 E-mail: predsednik@temerin.rs Website: www.temerin.rs Languages: Hungarian and English

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TITEL

IDEAL LOCATION FOR NAUTICAL TOURISM A project has been drawn up stipulating construction of a cargo port in Titel, on the banks of the Tisa River.

MILIVOJ PETROVIĆ , PRESIDENT OF THE MUNICIPALITY OF TITEL: “Both the municipality of Titel and the region have all prerequisites for a stable and profitable agricultural production.”

he municipality of Tisa is located in southeast Bačka at the estuary of the Tisa and Danube rivers. It covers an area of 263.5 square kilometres and is comprised of six small towns and villages - Titel, Lok, Vilovo, Gardinovci, Šajkaš, and Mošorin. The town of Titel lies on three rivers, including the Tisa River (its right bank). This is also where the Begej River joins the Tisa, which, 9 kilometres farther south, flows into the Danube. There is the Emperor’s Swamp near Titel, which is a unique nature reserve. The municipality’s population is 17,050. Titel borders with the city of Novi Sad and the municipalities of Zrenjanin, Inđija, and Žabalj. Although Titel is officially classified as an underdeveloped municipality, it has a well-preserved environment. Titel is the administrative, economic and cultural centre of the municipality. It is 50 kilometres from Belgrade, 40 kilometres from Novi Sad, and 30 kilometres from Zrenjanin. Titel is connected by roads, railway, and rivers to large metropolitan areas, as well as to Corridors 10 and 7. The Danube River is the municipality’s link to Europe and the rest of the world.

plastic products, brick factory, joinery production, a print shop, boat manufacture, etc. A project has been drawn up stipulating construction of a cargo port in Titel, on the banks of the Tisa River. Titel’s unique geographic position could potentially make the municipality a centre of nautical tourism. INDUSTRIAL ZONE The work zone covers an area of 450 hectares, and its stretches 4,500 metres along the Tisa River. It is directly linked to both road and railway routes (the R-110 regional road and the A 16/5 railway track, Novi Sad – Zrenjanin). A full infrastructure (water supply, sewage system, electricity, roads), good transport connections (the R-122 regional road and the E-75 motorway are just 20 kilometres away), the proximity to waterways (Danube – Tisa – Begej), the biggest C-class airport in the Balkans (in Ečka, only 20 kilometres away), a possibility of collaboration with local farmers, existing facilities for metal and plastic processing, a clean environment (organic food production), efficient and fast administration, and a qualified, inexpensive, and young workforce are all good recommendations for investors. The Free Zone in Block 65 covers 50 hectares and has a complete infrastructure.

If an investor submits complete documentation in line with the relevant law, it will take municipal authorities up to 15 days to issue required permits

CONTACT Slavoljub Radić, Head of Cabinet 1, Glavna Titel 21240 tel: +381(0)21/860-186 fax: +381(0)21/861-553 E-mail: uprava@opstinatitel.rs Website: www.opstinatitel.rs 70 | Vojvodina Investment 2010 / 2011

MUNICIPALITY’S ECONOMY Both the municipality of Titel and the region have all prerequisites for stable and profitable agricultural production. Agricultural production has a 65% share in the municipality’s gross income, with crop farming being a dominant activity, followed by cattle breeding and vegetable growing. Also, a great potential lies in processing of agricultural produce. With substantial investments, agriculture could become the generator of the municipality’s development. The municipality has several small and medium enterprises, like a can factory (with a cooling storage), production of metal pieces, manufacture of

INFORMATION FOR INVESTORS If an investor submits complete documentation in line with the relevant law, it will take municipal authorities up to 15 days to issue required permits. Investors have a wide range of professional and business organizations, as well as municipal partners, at their disposal: the Regional Chamber of Commerce, the National Employment Service, the Vojvodina Investment Promotion Fund (VIP), the Serbian Investment and Export Promotion Agency (SIEPA), regional export agencies, and other institutions.

VRBAS

DEVELOPED BUSINESS CENTRE The municipality of Vrbas can offer the following incentives for companies that invest in industrial zones: paying the lease in 36 monthly installments, 50% discount of utility fees if they are paid in full, 50% discount for companies engaged in production, and the possibility of paying utility bills in 120 installments. he municipality of Vrbas is located in South Bačka. It stretches across 376 square kilometres and has 45,755 inhabitants. A favourable geographic and transit position is one of the main reasons why Vrbas is considered the centre of Central Bačka. The municipality is located at the crossroads of roads like Sombor-Vrbas-Bečej, VrbasBačka Palanka, and Vrbas-Subotica. The Novi Sad-Subotica road (the old M-22) is quite close by, as is the E-75 motorway (the new M-22). The international railway line BelgradeBudapest and local railways Novi SadSombor and Sombor-Bečej all run through Vrbas. The municipality’s territory is also intersected by a network of canals which belong to the DanubeTisa-Danube hydro-system. There are 910 shops, 1,214 companies, institutions, and other legal entities in Vrbas, 949 of which are privately-owned.

portant investors here are also linked to agriculture and food processing industry and they are: Sunoko (Nordzucker) from Germany and ASHMORE Global Special Situation Fund from Great Britain. INDUSTRIAL ZONES There are 17 industrial zones (or locations) in the municipality suitable for investing. They are publicly owned, while in rural areas, they are both publicly and privately owned. Business zones have relevant spatial planning documents and they are purely commercial. Their advantages are: favourable price of land plots, payment in installments, full or partial infrastructure, close proximity of the motorway (Corridor 10) and other regional and main roads, the railway, water transport (the DTD Canal), and cities of Novi Sad, Belgrade, and Subotica are nearby.

DR ŽELJKO VIDOVIĆ, PRESIDENT OF THE MUNICIPALITY OF VRBAS: “There are 17 industrial zones (or locations) in the municipality of Vrbas suitable for investing.”

Industry has been developing to a certain extent in the municipality, along with agriculture

MUNICIPALITY’S ECONOMY Vrbas is one of the most developed business, transport, trade, and administrative centres in the area with such renowned companies as Carnex, Vital and the Bačka Sugar Plant. Agriculture is the central economic branch here. Industry has been developing to a certain extent in the municipality, along with agriculture. The land structure here is good, and 90.07% of the entire land is arable. Most of this land is plough land (96.98%). Every third company in the municipality is agriculture-related. The most im-

INFORMATION FOR INVESTORS The municipality of Vrbas can offer the following incentives for companies that invest in industrial zone: paying the lease in 36 monthly installments, 50% discount to utility fees if they are paid in full, 50% discount for companies engaged in production, and paying utility bills in 120 installments. The municipality’s Spatial Planning Department has to issue all required permits and documents in 8 to 15 days, provided that the potential investor submits complete documentation. If he fails to do so, it will take him between 30 and 45 days to obtain permits.

CONTACT Vukašin Vujičić, assistant to municipality’s president 89, Maršala Tita, 21460 Vrbas Tel: +381(0)21/7954– 000 Mob: +381(0)64/8053-004 E-mail: sovrbas@eunet.rs ; vrbas@eunet.rs Website: www.vrbas.net Languages: English, Russian, Hungarian

Vojvodina Investment 2010 / 2011 | 71

VR AC

PHARMACY AS THE LEADING INDUSTRIAL BRANCH The municipality of Vršac has devised two industrial zones – a north industrial zone (120.5 hectares) and a south industrial zone (286.5 hectares).

ČEDOMIR ŽIVKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF VRŠAC: “The municipality offers exclusive incentives for investing in the Industry & Technology Park (ITP). A square metre of the fully infrastructurally equipped land here is 6 euros.”

he municipality of Vršac has a very favourable geo-strategic position. It is only 85 kilometres from Belgrade, 14 kilometres from the border with Romania and the EU, and 35 kilometres from the Danube River (via the DTD Canal). The municipality covers 800 square kilometres and its population is 53,828. The municipality has a developed road infrastructure. It is located on the Belgrade – Timisoara international route. The international railway line Vienna – Budapest – Belgrade – Bucharest also runs through Vršac.

MUNICIPALITY’S ECONOMY The municipality takes 12th place out of a total of 167 municipalities in Serbia and 1st place in Vojvodina when it comes to net average salary. Vršac is the regional centre with dynamic business activity. The most developed industrial branches here are pharmaceutical, chemical, and food industries. The leading pharmaceutical company in the region and wider is Hemofarm Stada, one of the initiators of the Industry & Technology Park. Bearing in mind that the municipality has 557 solvent companies, it is rightly considered a very competitive business environment. Vršac is also one of the biggest agricultural centres in South Banat, with over 60,000 hectares of arable land.

zone (25.9 hectares), and a free zone with customs clearance offices (47.7 hectares). The Industry & Technology Park (ITP) (27 hectares) is suitable for small and medium enterprises, light metal processing industry, as well as textile and chemical industries. It is located inBlock 82 in the southwest part of Vršac along the Belgrade-Vršac-Timisoara (Romania) railway line, on the M1.9 main road (Belgrade – Vršac –Vatin), i.e. some 15 kilometres from the border with Romania. The land here is owned by the municipality and it can be bought or leased out for a period of 99 years. The Park has a complete transport infrastructure, water supply, sewage, a 20-KV-electric grid, and telephone lines. INFORMATION FOR INVESTORS The municipality offers exclusive incentives for investing in the Industry & Technology Park (ITP). A square metre of fully infrastructurally-equipped land here is 6 euros. ITP is the only such park in Serbia suitable for pharmaceutical producers. The most important investors in the municipality are Hemofarm Stada (pharmaceutical industry), Fresenius Medical Care (medical equipment), Zannini East (production of packaging), SMA d.o.o. (production of metal containers), Officina Game East (metal processing), EIX Hotels (catering), and Viator & Vektor (transport and freight forwarding). For the second consecutive year, the Municipality of Vršac has been declared the best investment location in Serbia at the ‘Invest in Serbia’ Fair organized by USAID’s MEGA Program. An investor can acquire all required building permits once he submits project documentation and signs contracts pertaining to the rental of premises in the Industry & Technology Park.

For the second consecutive year, the Municipality of Vršac has been declared the best investment location in Serbia

CONTACT Dejan Mak, local economic development office coordinator 1, Trg Pobede, 26300 Vršac Tel/Fax: +381 13 832-640 (direct line), +381 13 832-465 (switchboard), extension 122, Mob: +381 64 844-30-46 E-mail: dmak@vrsac.org.rs Website: www.vrsac.org.rs Languages: English, French, Romanian 72 | Vojvodina Investment 2010 / 2011

INDUSTRIAL ZONES AND INDUSTRY & TECHNOLOGY PARK The municipality of Vršac has devised two industrial zones – a north industrial zone (120.5 hectares) and a south industrial zone (286.5 hectares). The south zone is a general-purpose work zone (90.6 hectares). There is also a zone suitable for tertiary activities (36.6 hectares), small business (27.9 hectares), a goods & transport

ZRENJANIN

TRANSIT CENTRE Town authorities provide strong support to investors, public enterprises, and business incubators through a one-stop shop. renjanin is 75 kilometres from Belgrade and 50 kilometres from Novi Sad. The town is also 50 kilometres away from the border with the EU (Romania). Such a position makes Zrenjanin an exceptionally important transit centre and a potential transport resource in the north-south and east-west directions. Zrenjanin is in the vicinity of two main roads – the E-70 (leading to Novi Sad) and the E-75 (leading to Belgrade). Zrenjanin is also the biggest town in the Serbian part of Banat. The municipality covers an area of 1,326 square kilometres and the town itself is the administrative, cultural, economic, political, and health centre of Banat. The municipality’s population is 140,000. This is also a multinational community with a high level of tolerance among different nationalities. Four official languages are in use here: Serbian, Hungarian, Romanian, and Slovakian.

MUNICIPALITY’S ECONOMY The town has a long industrial tradition. In the 1980s, it was considered one of the biggest industrial centres in the former Yugoslavia (the first brewery here was opened in 1745). The most developed industrial branches are food production and processing, textile and chemical industries, oil and natural gas, metal processing industry, construction, etc. The average gross salary per capita is 524 euros, i.e. 375 euros net. The population’s education structure is as follows: 25,108 people have a elementary education, 53,741 a high school education, 5,626 people have a junior college diploma, while 6,281 have a university education.

Sustainable Development Strategy 2006 – 2013. The following features set Zrenjanin aside from other local self-governments when it comes to attracting investors: ▪ Industrial zones have required infrastructure (the Bagljaš industrial zone has a complete infrastructure with only one free land plot left, while the Jugoistok zone will be infrastructurally finished by June 2010. The zone covers 71 hectares of land, with 41 hectares still available). ▪ The close proximity to main roads and water routes (This is the most frequented river stop in Europe connected to the Danube/ Rhine/Main water system). Also, the town has the biggest C class airport in the Balkans, with plans to turn it into a cargo airport. Main railway routes are nearby too. ▪ The town has a free trade zone status which brings savings of up to 30%. ▪ An experienced and qualified work force, trained to work in various production, retail, and service sectors (education profiles are adjusted to economy’s needs; the work force has extensive experience in various industrial branches). ▪ City authorities provide strong support to investors, public enterprises, and business incubators through a onestop shop where an investor can obtain information about registering a company and obtaining building permits. ▪ Great potentials for development of agriculture and tourism. 100,000 hectares of top quality agricultural land, favourable climate, long industrial tradition, natural resources, and cultural heritage.

DR MILETA MIHAJLOV, MAYOR: “Zrenjanin provides a good business environment for new investors and existing businesses”

The town has a long industrial tradition. In the 1980s, it was considered one of the biggest industrial centres in the former Yugoslavia

MUNICIPALITY’S ADVANTAGES Zrenjanin provides a good business environment for new investors and existing businesses, which is mentioned in the long-term

INVESTORS The following companies are the most important investors in the municipality: Pompea Spa, Fulgar, Phiwa Walther Group, Bomex 4M, Draexelmaier, LK Armatur, and others.

CONTACT Predrag Stankov, Deputy Mayor for investment and projects 10, Trg slobode, 23000 Zrenjanin Tel: +381 (0)23/511-963 Fax: +381 (0)23/511-962 E-mail: predragstankov@yahoo.com; investments@grad.zrenjanin.rs Website: www.zrenjanin.rs Language: English

Vojvodina Investment 2010 / 2011 | 73

ZABALJ

IN THE HEART OF VOJVODINA The industrial zone is intended for construction of industrial facilities, rendering urban services, warehouses, depositories, and other small business facilities. he municipality of Žabalj is located in the Šajkaška area in South Bačka County and is made up of four small towns and villages: Žabalj, Čurug, Đurđevo, and Gospođinci. All four are connected by paved roads which facilitate transport and provide good traffic links. The roads’ total length is 102 kilometres. The municipality’s population is 27,513. The municipality covers an area of 400 square kilometres and is located in the very heart of Vojvodina. Žabalj is situated west of the Tisa River between the municipalities of Bečej, Srbobran, Temerin, Novi Sad, and Titel. On its east side (in Banat), the municipality borders with Novi Bečej and Zrenjanin.

BRANKO STAJIĆ, PRESIDENT OF THE MUNICIPALITY OF ŽABALJ: “The most important economic branches in the municipality are: agriculture, the processing industry, wholesale, and retail.”

TRANSPORT INFRASTRUCTURE The M-7 main road (Novi Sad – Zrenjanin), the R-122 regional road (Bečej-Titel), and the L-104 local road (Žabalj-Temerin) run through the municipality’s territory. On its 15th kilometre from Žabalj, the M-7 road joins the E-75 international route (Corridor 10). If you take the R-122 regional road, Corridor 10 is less than 10 kilometres away. Railway infrastructure is also well-developed, but is only used to transport cargo. Nikola Tesla International Airport is 80 kilometres from the municipality of Žabalj. There are many waterways in the municipality like the Tisa, Stara Tisa (Old Tisa), and Jegrička rivers and a network of canals called Danube – Tisa- Danube. The Tisa is an international river, suitable both for domestic and international river transport. There is the possibility of building a river marina.

in the municipality are: agriculture, the processing industry, wholesale, and retail. According to the 2005 data from the State Statistical Office, agriculture, hunting, forestry, and water-related business activities made up 42% of the municipal budget revenue, 25% came from the processing industry, 14% from electricity & gas production and supply, and around 5% from transport, warehousing, and transport-related activities. This data clearly shows that agriculture is still the central economic branch. Arable land covers 32,255 hectares (the municipality’s territory stretches across 40,000 hectares). INDUSTRIAL ZONE The Žabalj East Work Zone is an exceptional location, situated on the M-7 main road (Novi Sad – Zrenjanin), 15 kilometres from the E-75 international route and 20 kilometres from Novi Sad, 25 kilometres from Zrenjanin, and 80 kilometres from Belgrade. The zone stretches across 42 hectares and has a Plan for additional regulation and relevant technical documentation. The industrial zone is intended for the construction of industrial facilities, rendering urban services, warehouses, depositories, and other small business facilities.

The most important investors that have invested in the municipality of Žabalj so far are Global Seed from Veternik and Hellenic Sugar Industry

CONTACT Čedomir Božič member of the municipal administration Nikole Tesle 45, 21230 Žabalj Tel: +381(0)21/831-035 Fax: +381(0)21/831-094 E-mail : cedomirbozic@gmail.com Website : www.zabalj.rs Languages: English, German and Russian 74 | Vojvodina Investment 2010 / 2011

MUNICIPALITY’S ECONOMY The most important economic branches

INFORMATION FOR INVESTORS It takes up to 15 days (depending on the facility type) for an investor to obtain information on location, a location permit, and other required documents. It also takes up to 15 days to obtain a building permit. The most important investors that have invested in the municipality of Žabalj so far are Global Seed from Veternik and Hellenic Sugar Industry.

ZITISTE

HUNTING, FISHING, AND SPA TOURISM There are thermomineral springs, containing healing substances, scattered all over the municipality’s territory. he municipality of Žitište is a border municipality. In the east, it borders with Romania. The municipality is 95 kilometres from Belgrade and 75 kilometres from Novi Sad. The M-7 main road that connects Novi Sad with Timisoara passes through the municipality. The municipality of Žitište is made of 12 villages and belongs to Central Banat County. It stretches across 525 square kilometres and has 21,000 inhabitants. The transport infrastructure here is quite developed. The E-75 motorway is 95 kilometres from Žitište, while the E-7 road (Belgrade-SuboticaHungary) is 70 kilometres away. The M-7 main road (Novi Sad–Zrenjanin–Žitište– Timisoara) also runs through the municipality. The Timisoara–Kikinda–Zrenjanin– Belgrade railway is some 18 kilometres away. Also, there is the Begej Canal which is connected with the Tisa and Danube rivers by the Danube-Tisa-Danube Canal. Nikola Tesla Airport is 100 kilometres from the municipality, while the airport in the Romanian town of Timisoara is 55 kilometres away.

thermomineral springs containing healing substances scattered all over the municipality’s territory. There are opportunities for investing in production of biomass and dehydration of agricultural produce, as well as in the food industry, plastic product production, construction materials production, and the textile industry. One of the most important investors here, which has invested 16.5 million euros, is the US food company Van Drunen Farms Europe. INDUSTRIAL ZONES The industrial zone is located on the M-7 main road and is some 35 kilometres from the state border with Romania. The land here is owned by local authorities. Žitište is supposed to get a fully-functional sewage system soon, and once that happens, the industrial zone will be connected to it too. There are two locations in the industrial zone: LOCATION 1 Site: Industrial zone Plastika; Total area: 3 hectares; Type of ownership: state owned; Intended use: construction of industrial plants. The site has access to energy, water, and gas supply. The construction of sewage reticulation is planned. LOCATION 2 - Site: Industrial zone Bioferm; Total area: 15 hectares; Type of ownership: state property; Intended use: construction of industrial plants and small-scale industry premises. The site has access to gas, but the water, sewage, and power systems are not yet available. There are access roads leading to the site.

DRAGAN MILENKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF ŽITIŠTE: “The industrial zone is located on the M-7 main road and is some 35 kilometres from the state border with Romania.”

The shortest period required for obtaining on-site construction permits and approvals is three months

MUNICIPAL ECONOMY Agricultural production is the foundation of Žitište’s economy. Besides agriculture, there are several smaller industrial plants. The municipality also relies on hunting and fishing for its further development. There are several fish ponds with developed sport fishing. There is also a pheasant farm nearby. Hunting grounds make an excellent addition to the region’s tourist offer. Numerous thermomineral springs are yet to be sufficiently exploited. Municipal authorities have drawn up the ‘Study on Exploitation and Utilization of Thermo-Mineral Springs,’ which shows

INFORMATION FOR INVESTORS Land can be leased for a period of up to 99 years. The required planning and regulatory documentation already exists. The shortest period required for obtaining on-site construction permits and approvals is three months.

CONTACT Igor Salak, assistant to the municipality’s president 15, Cara Dušana, 23210 Žitište Tel: +381(0)23/821-306 Mob: +381(0)62/231-073 E-mail: selakigor@yahoo.com Website: www.zitiste.org Language: English

Vojvodina Investment 2010 / 2011 | 75

TOURISM

THE GREEN CHALLENGE

Supporters of eco and geotourism gladly return to Fruška Gora, and geologists and researchers emphasize that due to its geological heritage, it is also known as “a mirror of geological past.” By Prof. Dr Lazar LAZIĆ i Prof. Dr Vladimir STOJANOVIĆ Photo: Lazar LAZIĆ, Igor MARINOVIĆ, Jaroslav PAP, Vladimir STOJANOVIĆ, Dragan GOJIĆ f you are interested in nature and scenery of primordial beauty, then Vojvodina is certainly the place for you. Use the opportunity to visit Fruška Gora National Park. This Pannonian mount safeguards numerous surprises, such as habitats of rare plants and animals, as well as monasteries of significant historical importance. This vast linden tree-shaded area, the largest in Europe, captivates visitors’ senses every June. Supporters of eco and geotourism gladly return Fruška Gora, and geologists and researchers emphasize that due to its geological heritage, it is also known as “a mirror of geological past.” A climb down the northern foothills leads to the banks of the Danube and other large rivers of Vojvodina. Natural processes of erosion still patiently form marshlands and flood plains. The most important ones have been placed under protection as Ramsar sites. Suggestions for your new discoveries are special nature reserves: Koviljskopetrovaradinski Rit, Gornje Podunavlje, Stari Begej-Carska Bara, Deliblatska Peščara, and Obedska Bara. Alfred Brehm used to fre-

76 | Vojvodina Investment 2010 / 2011

quent the marshes of Gornje Podunavlje, collecting materials for the ornithological collection of the Natural History Museum in Vienna. The Stari Begej-Carska Bara reserve has a long tradition of ecotourism, and southern Banat is home to the Deliblatska Peščara reserve with vast sandy areas. This area has therefore been nicknamed the “European Sahara.” Spreading out in a southerly direction, very close to the banks of the Danube, sandy ecosystems gently turn into the wetlands of Labudovo Okno. This protected Ramsar site is one of the more important bird habitats. Obedska Bara – the “ornithological El Dorado,” situated at the south end of Srem, was put under protection in 1874, immediately after Yellowstone National Park. Travelling through northern Bačka provides easy access to the highest concentration of protected areas located in one place. Constituent parts of that region consist of two preserves (Ludaško Jezero and Selevenjske Pustare), one nature park (Palić), and one special nature reserve (Subotička peščara). These nature districts provide excellent conditions for active holidays, including mountaineering, educational walks through valuable and well-preserved wildlife habitats, bicycle rides along some of the marked cycling tracks in Podunavlje, bird watching, or photo safaris.

QUIET WATERS OF PANNONIA The rivers of Vojvodina provide dynamic charm to its nature. The Danube, with its tributaries, creates a unique natural ambience, with the outskirts abundant in cultural points of interest, easily accessible from Apatin’s recently-completed marina. Navigation will be more exciting if you decide to visit the reserves and nature parks situated on the riverbanks from Apatin to Novi Sad. (Gornje Podunavlje, Karadjordjevo, Tikvara, Begečka Jama, Koviljskopetrovaradinski Rit). Look for refreshments in the form of fishermen’s specialties in one of many famous Danube czardas. The Tisa is a quiet, elegant, and meandering river. In one of its meanders one can find relief from the summer heat, or simply revel in the colours of nature. On the banks of the Tisa are located quiet little towns rich in cultural heritage – Titel, Bečej, Novi Bečej,

in the canal network of the Danube – Tisa – Danube hydro system. Well-known, but also secluded beaches on the Danube, Tisa and Sava rivers, are excellent spots for recreational and sport activities. Should one wish to include entertainment and good company in these activities, then the Štrand beach in Novi Sad is the right place for you. The story of the water’s wealth becomes complete once lakes – the quiet oases – are included. North of Bačka is situated Lake Palić, with a tourist tradition that goes back more than 150 years. Not far from Bela Crkva are located the Belocrkvanska Jezera (lakes). Lake Zobnatica, situated next to the nature park of the same name, plays an important tourist and recreational role. The lakes of Fruška Gora, where peace and tranquility prevail, provide different impressions. Modern lifestyle becomes increasing-

Typical flatland rivers have been gaining more significant roles in the tourism, offering a pleasant and relaxing ambiance - Begej, Tamiš, Krivaja, Jegrička, Bosut... Senta, Čoka, Kanjiža, and Novi Kneževac. In the early summer days, unique swarms of Tisa mayflies take place (Palingenia longicauda), better known as the “Blooming of Tisa.” The Sava River is similar to the Danube in its recreational potential. Its cut-off meander with immediate environment is protected and known as the special nature reserve “Obedska Bara.” Typical flatland rivers have been gaining more significant roles in the tourism, offering a pleasant and relaxing ambiance - Begej, Tamiš, Krivaja, Jegrička, Bosut... Navigation and sports activities are also offered

ly fast and stressful. Therefore, the need for relaxation and health care becomes a necessity, especially under the watchful eye of an expert in one of the therapeutic mineral water spas. We will mention but a few: Banja Kanjiža in Kanjiža (rheumatic illnesses and postoperative orthopedic treatments), Banja Palić (rheumatic illness treatment), Banja Junaković near Apatin (rheumatic and gynecological illness treatment), Banja Vrdnik in Vrdnik (rheumatic illness treatment and rehabilitation), and Banja Rusanda near Melenci (treatment of central and peripheral nervous system illnesses and lesions).

EXCITING HUNTING AND FISHING Vojvodina’s nature provides ample options for hunting tourism. This allows a large number of hunting grounds on agricultural land, in forests, and in fishponds. There are 16 available hunting areas, where hunters can spend the night in the hunting lodges. Podunavlje’s dense forests hide some of the most famous hunting grounds in Vojvodina. Some suggestions relate to the hunting grounds of Kozara, Apatinski Rit, Kamarište, Ristovača, Plavna, Karadjordjevo, and Koviljski Rit. In the forests of Srem are located the renown hunting grounds of Morović, Kućine, Bosutske

Šume, Karakuša, and Kupinik, whereas in southern Banat there are Donje Podunavlje, Deliblatska Peščara and Vršačke Planine, and in northern Bačka is Subotičke Šume. An abundance of surface water in Vojvodina provides exceptional potential in terms of fishing tourism. The most famous fishing areas are situated on the largest rivers: the Danube, Tisa, Sava, and Tamiš. A good catch is also guaranteed on many lakes. If the reason for your visit happens to be also to socialize with fellow fishermen, then a good spot would be the International Fishing Festival in Kanjiža.

Podunavlje’s dense forests hide some of the most famous hunting grounds in Vojvodina. Some suggestions relate to the hunting grounds of Kozara, Apatinski Rit, Kamarište... Vojvodina Investment 2010 / 2011 | 77

TOURISM

ANCIENT TRADITION OF WINEMAKING Grapevines have lived in a loving relationship with Vojvodina for almost two millennia. This story began in 276 when the Roman Emperor Probus planted the first vines on Glavica hill near the ancient settlement of Šuljam. Vojvodina is divided into three vineyard regions: Srem with Fruška Gora vineyards, Subotica – Horgoš region, with Palić and Horgoš vineyards, and Banat, with two sub-regions – Južni

Vojvodina is divided into three vineyard regions: Srem with Fruška Gora vineyards, Subotica – Horgoš region, with Palić and Banat

78 | Vojvodina Investment 2010 / 2011

Banat (Vršac, Bela Crkva and Deliblato vineyards) and Severni Banat (Banat –Potisje and Kikinda vineyards). Fruška Gora vineyards have developed on the fertile slopes of this mount. The jewel of this region is Sremski Karlovci, and vine produced here has been decanted all around Europe – from the Vienna Court to the inns of England. The glory of Sremski Karlovci was brought about due to two special vines: Bermet, where more than 20 herbs and spices are blended, and Ausbruh, a dessert vine derived from raisins. Legend has it that it was on the vine list on the “Titanic.” We recommend a visit to Sremski Karlovci during its famous wine festival in October. Subotica Wine Tradition – The Horgoš region is centuries old. There are numerous festivals in honour of wine: grape-picking days at Palić and Hajdukovo, Sveti Vince... Vršac vineyards spread over the sunny slopes of the Vršac Mountains in South Banat. At the foot of the mountains is situated Vršac, a town with a rich and turbulent past. Legend has it that grape growing and wine making in this area date back to the times of the Dacians. In the XIX century this used to be the largest winegrowing area in Hungary, and one of the largest in Europe, stretching over 10,000 hectares. The village of Gudurica is located at the foot of the mountain, one of the currently more important centres of wine tourism in Vojvodina. The Banat –Potisje region with Čoka, together with the island of Hvar, were the sunniest spots in ex-Yugoslavia. This region is particularly good for winegrowing. Industrial development dates back to the end of XIX century, when the Lederer family bought an estate with the vineyards that still exist today. Wine tourism is related in this area to aristocracy but also to the taunting charm of past times.

LIGHTHOUSES OF SPIRITUALITY Orthodox, Roman-Catholic, Evangelistic, Greek Orthodox… Serbian, German, Hungarian, Slovakian, Šokac, Romanian, Ruthenian… Fruška Gora’s thick forests are only outdone by the bell towers of Orthodox monasteries, built in an unusual combination of Byzantine and Baroque styles. These monasteries have been built since medieval times when they were used as lighthouses in the first Orthodox colonies north of the Sava and Danube rivers. Out of the 35 original monasteries in the wider zone of Fruška Gora recorded in the XVI and XVII centuries, only 15 remain (Beočin, Velika Remeta, Vrdnik – Ravanica, Grgeteg, Divša, Novi Jazak, Krušedol, Kuveždin, Mala Remeta, Novo Hopovo, Petkovica, Privina Glava, Rakovac, Staro Hopovo, and Šišatovac). Fruška Gora’s monasteries are an attraction not to miss during a visit to this area, due to their historical, artistic, and attractive values. Two other monasteries worth mentioning are Bodjani, near Bač, built in Baroque style, with an impressive iconostasis by Hristifor Žefarović, and Mesić monastery, located at the foot of Vršačke Planine.

Baroque Towers – Sremski Karlovci

Staro Hopovo Monastery

Fruška Gora’s thick forests are only outdone by the bell towers of Orthodox monasteries, built in an unusual combination of Byzantine and Baroque styles Spirituality of Roman Catholic tradition in the history of Vojvodina can be experienced in one of the convents. The Franciscan monastery complex at Bač dates back to the XII century. In conformity with its past, the monastery is very picturesque, with especially prominent Gothic and Baroque details, and those from the times of the Ottoman Empire rule. Apart from the icon painted by Dima in 1687, the monastery contains an impressive library of handwritten and printed books. The Franciscan monastery in Subotica shelters remains of Subotica’s old Fortress, and as such has become an inseparable part of the town’s history. Prominent symbols of landscape in Vojvodina are Baroque churches with flowery bell towers. When in an Orthodox Church, carefully view and research paintings by Serbian Baroque artists such as Teodor Kračun, Jakov Orfelin, or Teodor Ilić Češljar. Ask a local priest in one of the Catholic churches to let you hear the impressive sounds of the organs, since they also form an inevitable part of cultural heritage. Jewish tradition and spirituality can be experienced in the Novi Sad’s and Subotica’s synagogues, both erected at the beginning of the XX century, and they are magnificent examples of Secessionist architecture.

“Church of the Virgin Entrance into the Temple” –Bodjani Monastery

Roadside Cross, Djurdjin – Tavankut

THE BIGGEST FDI IN VOJVODINA Anheuser-Bush InBev

Belgium

Manufacture of beer Manufacture of pharmaceuticals Manufacture and retail sale of oil and gas

Apatin

Acquisition

530

Vrsac

Acquisition

485

Novi Sad

Privatization

400 385

Stada

Germany

Gazprom Neft

Russsia

National Bank of Greece

Greece

Financial intermediation

All major cities in Vojvodina

Privatization

Bernardi

Italy

Wholesale and retail

Pecinci

Greenﬁeld

300**

Fondiaria SAI

Italy

Insurance

Novi Sad

Privatization

264

Groupe Credit Agricole

France

Financial intermediation

Novi Sad

Acquisition

264

PepsiCo Inc.

USA

Manufacture of food products

Backi Maglic

Acquisition

210

Merkator

Slovenia

Wholesale and retail trade

All major cities in Vojvodina

Acquisition

204

OTP Bank

Hungary

Financial intermediation

Novi Sad

Acquisition

166

All major cities in Vojvodina

Acquisition

140

Privatization

140

San Paolo IMI S.p.A

Italy

Financial intermediation

Lafarge

France

Manufacture of cement

Beocin

Forging, pressing, stamping and roll forming of metal Manufacture of industrial pumps Real estate, renting and business activities Manufacture of products of wood

Kikinda

Cimos

Slovenia

Grundfos

Denmark

Ocean Atlantic International

USA

Tarkett Sommer

French/ Germany

Erste Bank

Austria

BIG CEE

Israel

Heineken

Netherlands

Manufacture of beer

GTC

Poland

Tondah

Austria

Nova Ljubljanska Banka

Slovenia

Carlsberg

Denmark

Vondel Capital

Netherlands

STG

Italy

Nestlé S.A.

Switzerland

Ultramed Hungary Kft.

Hungary

Phiwa - Walther Group

BD Agro

Germany

Secanj

100 Privatization

1,4

Indjija

Greenﬁeld

80**

Novi Sad

Brownﬁeld

80**

Backa Palanka

Acquisition

78,8

Financial intermediation

Novi Sad

Privatization

73.2

Real estate, renting and business activities

Novi Sad

Greenﬁeld

70**

Novi Sad

Acquisition

Subotica

Greenﬁeld

Kanjiza

Acquisition

Financial intermediation

Novi Sad

Privatization

Manufacture of beer

Celarevo

Acquisition

53 (65)*

Novi Sad

Greenﬁeld

51.25

Sremska Mitrovica

Joint Venture

Indjija

Greenﬁeld

Senta

Greenﬁeld

Zrenjanin

Greenﬁeld

Hotels and restaurants

Subotica

Greenﬁeld

27,5

wholesale and retail trade

All major citie in Vojvodina

Brownﬁeld

3,5

Real estate, renting and business activities Manufacture of bricks, tiles and construction products, in baked clay

Real estate, renting and business activities Manufacture of steel elements Manufacture of food products Physical well-being activities Transport and distribution center

56,5

Canada/Serbia

Farming of animals

Novi Becej

Joint Venture

Manufacture of dairy products

Novi Sad, Subotica, Vrsac

Privatization

31.2

Salford

()* - Reinvestment Amount So Far ** - Investment in the process of realization 80 | Vojvodina Investment 2010 / 2011

Source: VIP

REGISTER PROVINCIAL GOVERNMENT SECRETARIATES/ DEPARTMENTS Parliament of the Autonomus Province Vojvodina bb , Vladike Platona 21000 Novi Sad Tel: +381 (0) 21 456 281 informacije@ skupstinavojvodine.gov.rs www.skupstinavojvodine. gov.rs Executive Council of the Autonomus Province of Vojvodina 16, Mihajla Pupina 21000 Novi Sad Tel: + 381 (0) 21 487 40 00 psinf1@gmail.com www.vojvodina.gov.rs The Provincial Secretariat for Economy 16, Bulevar Mihajla Pupina 21000 Novi Sad Tel: +381 (0) 21 487 42 09, 487 43 00 Fax: +381 (0) 21 456 004, 557 084 www.spriv.vojvodina.gov.rs - Sector for Industry Tel: +381 (0) 21 487 43 09, 456 054 hajnalka.makai@vojvodina. gov.rs - Sector for Transport and Telecomunictation Tel: +381 (0) 21 /487 42 07 sinisa.isakov@vojvodina. gov.rs - Sector for Trade, Tourism and Services Tel: +381 (0) 21 487 44 83, 456 070 varnju.erne@vojvodina. gov.rs The Provincial Secretariat for Architecture, Urbanisam and Construction 16, Bulevar Mihajla Pupina 21000 Novi Sad Tel: +381 (0) 21 487 45 90 Fax: +381 (0) 21 457 737 arhiurb@vojvodina. gov.rs www.arhiurb.vojvodina.gov.rs

Novi Sad Fair 11, Hajduk Veljkova 21000 Novi Sad Tel: +381 (0) 21 483 00 00, 483 00 01 Fax: +381 (0) 21 483 00 99 info@sajam.net www.sajam.net Vojvodina Fund for Developing Agriculture 16, Bulevar Mihajla Pupina 21000 Novi Sad Tel: +381 (0) 21 487 48 75 Fax: +381 (0) 21487 42 53 www.fondpolj.vojvodina. gov.rs Vojvodina Development Fund 11, Hajduk Veljkova 21000 Novi Sad Tel: +381 (0) 21 483 06 66 office@vdf.org.yu www.vdf.org.rs The Guarantee Fund of Vojvodina 11, Hajduk Veljkova 21000 Novi Sad Tel/Fax: +381 (0) 21 489 37 00 office@garfondapv.org.rs www.garfondapv.org.rs AGENICIES Privatization Agency 23/VI, Terazije 11000 Belgrade Tel: +381 (0) 11 302 08 00, Fax: +381 (0) 11 302 08 28 info@priv.yu www.priv.rs Serbia Investment and Export Promotion Agency – SIEPA 3/V, Vlajkovićeva 11000 Belgrade Tel: +381 (0) 11 339 85 50 Fax: +381 (0) 11 339 88 14 office@siepa. gov.rs www.siepa.gov.rs Vojvodina Investment Promotion - VIP 4/I, Zmaj Jovina 21000 Novi Sad Tel: +381 (0) 21 472 32 40, 472 32 45 Fax: +381 (0) 21 472 19 21

office@vip.org.rs www.vip.org.rs CHAMBERS OF COMMERCE Serbian Chamber of Commerce 13-15, Resavska 11000 Beograd Tel: +381 (0) 11 330 09 00 kabinet@pks.rs www.pks.rs Vojvodina Chamber of Commerce 11, Hajduk Veljkova 21000 Novi Sad Tel: +381 (0) 21 557 433 Fax: +381 (0) 21 557 364 info@pkv.rs www.pkv.rs Regional Chamber of Commerce Sremska Mitrovica 4/II, Kralja Petra I 22000 Sremska Mitrovica tel: +381 (0) 22 610 778 fax: +381 (0) 22 610 078 www.rpksrem.co.rs Regional Chamber of Commerce Zrenjanin, 3/I, Kralja Petra I Zrenjanin, 23000 tel: +381 (0) 23 562 979, 535 890 fax: +381 (0) 23 562 693, rpkomora-zr@beotel.rs; zrenjanin@komora.net www.rpkomora-zr.co.rs Regional Chamber of Commerce Kikinda 48, Trg srpskih dobrovoljaca 23300 Kikinda Tel: +381 (0) 230 210 80; 211 73 Fax: +381 (0) 230 401 230 www.rpk-ki. co.rs Regional Chamber of Commerce Novi Sad, 6/VI, I Bulevar Mihajla Pupina 21000 Novi Sad Tel: +381 (0) 21 480 20 88

Fax: +381 (0) 21 466 300 office@rpkns.com www.rpkns.com Regional Chamber of Commerce Pančevo, 1a, Zmaj Jovina 26000 Pančevo Tel: +381 (0) 13 343 255 Fax: +381 (0)13 354 056 rpkpancevo@komora.net www.rpkpancevo.com Regional Chamber of Commerce Sombor, 30, Venac Stepe Stepanovića 25000 Sombor Tel: +381 (0) 25 420 930; 420 780, Fax: +381 (0) 25 423 766 office@rpksombor.co.rs www.rpksombor.co.rs Regional Chamber of Commerce Subotica 15, Senćanski put 24000 Subotica Tel/Fax +381 (0) 24 553 357 subotica@komora.net www.rpk-subotica.org.rs MUNICIPALITY Municipality of Ada 1, Trg oslobođenja 24430 Ada Vojvodina, Serbia Tel: +381 (0) 24 852 106; 853 342 soada@ada.org.rs www.ada.org.rs Municipality of Alibunar 4, Trg Slobode 26310 Alibunar Vojvodina, Serbia Tel: +381 (0) 13 642 105 alskupstina@hemo.net www.alibunar.org.rs

Municipality of Apatin 29, Srpskih Vladara 25260 Apatin Vojvodina, Serbia Tel: ++381 (0) 25 772 122 ou@soapatin.org www.soapatin.org Municipality of Bač 2, Trg Dr Zorana Đinđića 21420 Bač Vojvodina, Srbia Tel: +381 (0) 21 770 170; 770 075 predsednik@bac.rs www.bac.rs Municipality of Bačka Palanka 16, Kralja Petra I 21400 Bačka Palanka Vojvodina, Serbia Tel: +381 (0) 21 755 91 92 info@backapalanka.org.rs www.backapalanka.org.rs Municipality of Bačka Topola 1, Svetosavska 24300 Bačka Topola, Vojvodina, Serbia Tel: +381 (0) 24 713 506; kokai.monika@viplcbackatopola.com www.btopola.org.rs Municipality of Bački Petrovac 6, Kolarova 21470 Bački Petrovac Vojvodina, Serbia Tel: +381 (0) 780 247; 780 378 opstina@backipetrovac.rs www.backipetrovac.rs Municipality of Bečej 2, Trg Oslobođenja 21220 Bečej Vojvodina, Serbia

Vojvodina Investment 2010 / 2011 | 81

REGISTER Tel: +381 (0) 21 691 17 20 radivojevic@becej.co.rs www.becej.rs Municipality of Bela Crkva 2, Miletićeva Street 26340 Bela Crkva, Vojvodina, Serbia Tel: +381 (0) 13 851 224, 851 326 opstinabc@neobee.net www.belacrkva.info Municipality of Beočin 25, Svetosavska 21300 Beocin Vojvodina, Serbia Tel: +381 (0) 21 870 260 bogdan.cvejić@beocin.rs www.beocin.rs Municipality of Čoka 20, Potiska, 23320 Čoka Vojvodina, Serbia Tel: +381 (0) 230 71 011 opstina@coka.rs; www.coka.rs Municipality of Inđija Cara Dušana 1, 22320 Inđija Vojvodina, Serbia Tel: +381 (0) 22 561 301, 561 311 direkcija@indjija.net www.indjija.net Municipality of Irig 1, Vojvode Putnika 22406 Irig Vojvodina, Serbia Tel: +381 (0) 22 461 010 soirig@neobee.net www.irig.rs Municipality of Kanjiža 1, Glavni trg 24420 Kanjiža Vojvodina, Serbia Tel.: +381 (0) 24 875 166 office@kanjiza.rs www.kanjiza.rs Municipality of Kikinda 12, Trg srpskih dobrovoljaca 23300 Kikinda Vojvodina, Serbia Tel: +381 (0) 230 410 100 borislav.cucic@kikinda.org.rs www.kikinda.rs Municipality of Kovačica 50, Maršala Tita 26210 Kovačica

82 | Vojvodina Investment 2010 / 2011

Vojvodina, Serbia Tel: +381 (0) 13 661 122 razvoj@kovacica.org, opstina@kovacica.org www.kovacica.org Municipality of Kovin 5, JNA 26220 Kovin Vojvodina, Srbija Tel: +381 (0) 13 742 114 predsednik@kovin.org.rs www.kovin.org.rs Municipality of Kula 11, Lenjinova 25230 Kula Vojvodina, Serbia Tel: +381 (0) 25 722 220 Email: rzdrnja@so-kula.com www.kula.rs Municipality of Mali Iđoš Glavna 32, 24321 Mali Iđoš Vojvodina, Serbia Tel: +381 (0) 24 730 210 opstina.maliidos@gmail.com www.maliidos.com Municipality of Nova Crnja 110, JNA 23218 Nova Crnja Vojvodina, Serbia Tel: +381 (0) 23 815 030 peramilankov@gmail.com, www.sonovacrnja.org.rs City of Novi Sad 1, Trg slobode, 21000 Novi Sad Vojvodina, Serbia Tel: +381 (0) 21 529 270, 480 77 10 kler@novisad.rs www.novisad.rs Municipality of Novi Bečej 8, Žarka Zrenjanina 23272 Novi Bečej Vojvodina, Serbia Tel: +381 (0) 23 771 135; misa.vrebalov@novibecej.rs www.novibecej.rs Municipality of Novi Kneževac 1, Kralja Petra I Karađorđevića 23330 Novi Kneževac Vojvodina, Serbia Tel: +381 (0) 230 81 031; predsednik@noviknezevac. org.rs www.noviknezevac.rs

Municipality of Odžaci 24, Knez Mihajlova 25250 Odžaci Vojvodina, Serbia Tel: +381 (0) 25 742 411 protokol@odzaci.info www.odzaci.info Municipality of Opovo 10, Borisa Kidriča 26204 Opovo Vojvodina, Srbia Tel: +381 (0) 13 681 030; 681 142 zoran.tasic@3dnet.rs www.opovo.org.rs City of Pančevo 2-4, Trg kralja Petra I 26000 Pančevo Vojvodina, Serbia Tel/Fax: +381 (0) 13 346 393; 343 222 gradonacelnik@pancevo.rs; ler@pancevo.rs www.pancevo.rs Municipality of Pećinci 5, Slobodana Bajića 22410 Pećinci Vojvodina, Serbia Tel: +381 (0) 22 400 700, 400 734 radivoj.milosevic@pecinci.org, opstina@pecinci.org www.pecinci.org Municipality of Plandište 38, Vojvode Putnika 26360 Plandište Vojvodina, Serbia Tel: +381 (0) 13 861 033 soplandiste@hemo.ne www.plandiste.com Municipality of Ruma 155, Glavna 22400 Ruma Vojvodina, Serbia Tel: +381 (0) 22 478 314 rumaopstina2@nadlanu.com www.ruma.rs Municipality of Sečanj 57, Vožda Karađorđa 23240 Sečanj Vojvodina, Serbia Tel: +381 (0) 23 841 111; 842 066, sosecanj@ptt.rs, mdejana@beotel.net

Url: www.sosecanj.rs Municipality of Senta 1, Glavni trg, 24400 Senta Vojvodina, Serbia Tel: +381 (0) 24 813 574 info@zenta-senta.co.rs www. www.zenta-senta.co.rs Municipality of Sombor 1, Trg Cara Uroša 25000 Sombor Vojvodina, Serbia Tel: +381 (0) 25 468 160 klersombor@gmail.com www. www.so-sombor.rs Municipality of Srbobran 2, Trg slobode 21480 Srbobran Vojvodina, Serbia Tel: +381 (0) 21 730 020; info@srbobran.rs www.srbobran.rs City of Sremska Mitrovica 13, Svetog Dimitrija Street 22000 Sremska Mitrovica, Vojvodina, Serbia Tel: +381 (0) 22 610 572, 610 538 osmprotokol@ptt.yu, kler@gmail.com www.sremskamitrovica.org.rs Municipality of Sremski Karlovci 1, Trg Branka Radičevića 21205 Sremski Karlovci Vojvodina, Serbia Tel: +381 (0) 21 685 30 00 sremkarl@eunet.rs www.sremski-karlovci.org.rs Municipality of Stara Pazova 11, Svetosavska 22300 Stara Pazova Vojvodina, Serbia Tel: +381 (0) 22 310 051, goran.jovic@starapazova.eu www.starapazova.eu City of Subotica 1, Trg slobode 24000 Subotica Vojvodina, Serbia Tel: +381 (0) 24 666 677, 626 874 mayor@subotica.rs, ler@subotica.rs www.subotica.rs Municipality of Šid

2, Karađorđeva, 22240 Šid Vojvodina, Serbia Tel: +381 (0) 22 712 122, 712 544 kabinet@nadlanu.com www.opstinasid.org Municipality of Temerin 326, Novosadska 21235 Temerin Vojvodina, Serbia Tel: +381 (0) 21 843 888; kabinetopstina@parabolanet. com www.temerin.rs Municipality of Titel Glavna 1 21240 Titel Vojvodina, Serbia Tel: +381 (0) 21 860 186 uprava@opstinatitel.rs; www.opstinatitel.rs Municipality of Vršac 1, Trg Pobede 26300 Vršac Vojvodina, Serbia Tel: +381 (0) 13 800 500, 832 640 info-sov@vrsac.org.rs, dmak@vrsac.org.rs www.vrsac.org.rs City of Zrenjanin 10, Trg Slobode 23000 Zrenjanin Vojvodina, Serbia Tel: +381 (0) 23 511 963 investments@grad.zrenjanin.rs www.zrenjanin.rs Municipality of Žabalj 45, Nikole Tesle 21230 Žabalj Vojvodina, Serbia Tel: +381 (0) 21 831 035, 832 848 sozabalj@eunet.rs; cedomirbozic@gmail.com www.zabalj.rs Municipality of Žitište 15, Cara Dušana 23210 Žitište Vojvodina, Serbia Tel: +381 (0) 23 821 308, 821 306 predozit@gimelnet.co.yu, selakigor@yahoo.com www.zitiste.org.rs