OUTCOMES OF GRANT ASSISTANCE FOR BUSINESS ENVIRONMENT by Sanjin Halilovic

OUTCOMES OF GRANT ASSISTANCE FOR BUSINESS ENVIRONMENT More Services and Improved Support for Enterprises

Programme for Local Self-Government and Economic Development - EU ProLocal

May 2019

Published by:

Year of publishing

Deutsche Gesellschaft für

2019

Internationale Zusammenarbeit (GIZ) GmbH

Design Sanjin Halilović

Registered offices: Bonn and Eschborn, Germany

Photography Imrana Kapetanović

Programme for Local Self-government

Jasmin Agović

and Economic Development, EU ProLocal

English translation Ana Kravić

Sarajevo Office Splitska 6

Disclaimer

71000 Sarajevo

This publication was prepared in the frame of the Programme for Local Self-Government

T +387 33 564 520

and Economic Development in Bosnia and Herzegovina, EU ProLocal, funded by

F +387 33 261 566

the European Union and the German Government and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

Banja Luka Office Patrijarha Makarija Sokolovića 3

This publication has been produced with the assistance of the European Union. The

78000 Banja Luka

contents of this publication are the sole responsibility of GIZ and can in no way be taken

T +387 51 434 240

to reflect the views of the European Union.

F +387 51 434 241 info@eu-prolocal.ba www.eu-prolocal.ba www.giz.de

CONTENT INTRODUCTION

SUMMARY

SUCCESS STORIES

GRANT SCHEME

PARTNERSHIPS FOR BETTER BUSINESS ENVIRONMENTS (MEASURE 2)

PARTNERSHIPS FOR ECONOMIC DEVELOPMENT AND INNOVATION (MEASURE 3)

INTRODUCTION Local partnerships for economic development in Bosnia and Herzegovina

By June 2019, the joint programme of the European Union and the German Government “Programme for Local Self-Government and Economic Development in BiH” – EU ProLocal implemented a set of activities aimed at strengthening the competitiveness of small and medium enterprises. Grants were awarded, inter alia, to 57 SME projects and 25 development partnerships, in the total value of four million euros. This publication presents the results of Lot II grants, valued at one million euros, awarded for projects implemented by 17 development partnerships. These partnerships comprised 54 stakeholders in total, including municipalities, business development agencies, trade chambers, clusters, high schools, universities and businesses. They worked together to create a favourable local business environment for small and medium enterprises (Measure 2), because the business environment substantially impacts their competitiveness and, on the other hand, stable and prosperous businesses promote ongoing community development. The idea behind the partnership initiative was to strengthen the cooperation between stakeholders from the public, private and academic sectors in order to stimulate economic growth and innovation (Measure 3). In supporting these improvements in the business environment we were guided by the Small Business Act for Europe, thus contributing to the approximation of SME policies in BiH to those of the European Union. The pages that follow will provide detailed information about the actual results, however we are pleased to note that we have achieved some important goals - such as the establishment of the first Learning Factory and development of the first Sustainable Energy Action Plan. And finally, we must praise the beneficiaries’ serious commitment to delivering on their promises. We addressed the challenges together, with determination and made this journey into a success story. I would also like to extend our gratitude to our colleagues from the EU ProLocal team for their excellent work, as well as to the European Union in BiH and the German Government for their financial support to this programme. Karin Hörhan Menadžerica Programa

Dr. Gligor Stojkov Menadžer za grant i inovacije

SUMMARY Contributing to a better business environment

Implementation of the Programme for Local Self-Government and Economic Development in BiH – EU ProLocal was financed by the European Union with nine million and German Government with four million euros. The Programme was implemented by the German GIZ. The objective of this Programme was to contribute to the dynamics of economic and social development in Bosnia and Herzegovina by strengthening the competitiveness of small and medium enterprises, and the Programme actively fostered a more favourable business environment through technical assistance and grants. Of the total four million euros allocated to grant funding by the European Union, one million euros was awarded for projects focused on creating more favourable local business environments. The resulting changes include strengthening of inter-municipal cooperation and removal of certain obstacles to development of small and medium enterprises through coordinated action of the public and private sector. For example, Investor Information Centres were established in Zenica, Prijedor, Gradiška and Široki Brijeg as one-stop-shops for relevant services and information. Youth from the IT and creative sector in the City of Prijedor now have a coworking space, and the University of Mostar opened a Learning Factory which now provides students with opportunities to develop their skills in a simulated production plant and supports companies in new product development. The Start-Up Academy in Žepče now offers an attractive training model for starting and managing businesses; the CNC training facility allowed the Technical School in Gradiška to register with the relevant institute as an adult education provider for metalworking occupations; the Agriculture Institute of Republika Srpska has completed the preparations for accreditation of 11 laboratory methods which will improve the quality of fresh fruit and vegetables, while the Faculty of Mechanical Engineering in Banja Luka prepared for accreditation of mechanical testing procedures. The Success Stories section of this publication presents particularly interesting and important outcomes achieved with these grants, followed by data sheets for each individual project, with project objectives, description, budget and accomplished results.

SUCCESS STORIES

Employment

Internationalisation

Innovation

Growth and development

EMPLOYMENT Prijedor Circle Hub: Oasis for IT and creative industry

Dragan Inđić is a university-educated graphic designer from Prijedor who entered the world of freelancing a few years ago. He does graphic design and offers his services to clients worldwide via 99designs and Etsy. Today he is one of the users of the coworking space in Prijedor, established last year as part of the Prijedor Circle Hub project supported by the European Union through EU ProLocal. “I graduated from the Academy of Fine Arts in Banja Luka and the knowledge I gained through formal education is really important because it’s highly relevant for this type of work, for example knowledge of aesthetics, composition, drawing, etc. But there was a whole range of skills and knowledge I had to acquire and develop later on, and I continue to learn every day” says Dragan. As a user of services provided by the Development Agency PREDA, Dragan completed advanced training in Adobe Illustrator and InDesign, 3D-modelling and printing in Solidworks. “Of course, not every job I applied for was profitable straight away but I learned a lot, observed my colleagues and their work, tried to improve my style and work. 99design recently gave me Platinum Designer status, which is certainly a big honour and an acknowledgement that I’m moving in the right direction” concludes Dragan. Prijedor Circle Hub became Dragan’s creative oasis and coworking a positive work environment where he turns his ideas into reality by using the 3D printer to actively develop products for placement on Etsy. Training and cooperation with his coworking colleagues has helped him to become more efficient in his work.

Beginnings A review of results obtained through services provided by PREDA to more than 100 young people from IT and creative industries has shown that most youth in search of work tend to leave for larger cities. The goal was to stop that trend. Thanks to grant funding, over the previous year PREDA managed to develop the infrastructure and human capacities of Prijedor Circle Hub and provide the following services: business incubator, coworking space, IT Academy and Start-Up Programme. “At this stage of development we focus on networking, education and testing of business models for young people. We are currently working only with previously identified target groups but in the coming period we will have a more intense focus on the wider community. I must say that the local community’s positive reactions to these activities have exceeded our expectations” says Zoran Dimitrijević, project manager at the Agency. Plans for the future Coworking space in the Prijedor Circle Hub made it possible to provide business mentoring, joint promotion, networking and administrative and legal assistance to entrepreneurs. “Our target group includes all people actively working in the creative industry. We are closest to the British DCSM classification model, which is based on businesses that require creativity, skill and talent and have a potential to grow and create jobs” says Dimitrijević, adding that all end-users are more than happy with created content. The focus of future operations will be to actively involve creative industry participants in actual change processes in the community and the creative industry in local development strategies.

INTERNATIONALISATION Recognisable prunes from BiH

In order to exploit the potential of prunes produced in BiH, the Independent Development Bureau (Nezavisni biro za razvoj - NBR) from Gradačac has linked together all actors in the value chain – producers, processors, distributors and municipal structures – and created an operating platform that will allow prunes from BiH to compete for shelf space in supermarkets in the EU and globally on the basis of their excellent quality. In cooperation with the Municipality of Gračanica, farmers’ cooperatives Gračanka and Brka, Maočanka–Commerce company from Brčko and with expert support provided by the Faculty of Technology in Tuzla, NBR implemented a project to improve the quality of prunes produced in BiH with co-financing provided by the European Union through EU ProLocal Prunes are a product with major market potential, however high quality prunes can be produced only from high quality fresh plums, as even the best drying process cannot compensate for inherent flaws in the fresh fruit. For this reason, in this project NBR delivered an innovative training programme to 100 fruit producers. “We established four new orchards in the municipality of Gračanica and one in Brčko District and started from nothing on 2.5 hectares of land - from soil preparation, procurement of seedlings and planting, through to installation of irrigation and anti-hail systems” explains Nada Dugić, member of the project implementation team. “By doing this and with the ‘learning by doing’ approach we practically demonstrated how a modern plum cultivation process should flow” adds Dugić. The ‘learning by doing’ approach was also used to fully recover eight plum orchards established in the last five years. Training was completed with sessions on proper pruning techniques for several varieties of plums and for trees harvested over a different number of years, and on installation of drip irrigation

systems. Both methods, each in its own way, contribute to higher yields and higher-quality plums. The project supplied the owners of these plum orchards with complete irrigation systems. Although involved in fruit production since 2006, Muhamed Sinanović from the village of Gornja Orahovica believes that there is always room for improvement, which was his motive to participate in this project. “There are many examples but I would mention one, which I immediately applied in practice. It concerns testing of the quality of water I use to prepare plant protection solutions in order to achieve maximum efficiency” says Sinanović. Networking provided by the project helped Sinanović to sell his products to new customers. Namely, after establishing contact with a major buyer of plums from Maoča near Brčko, he managed to sell a large quantity of plums last season and expects this cooperation to continue in the coming season. Lack of drying capacities Rasim Husić, director of ZZ Gračanka, noted that the engagement of all involved in this project has demonstrated that there are capacities and interest in production of prunes. “The project provided support that we farmers have been waiting for, for years, but it also pointed out some issues we need to deal with in the coming period. By this I mean, before anything else, construction and development of capacities for adequate drying of plums” concludes Husić.

INNOVATION The first Learning Factory in BiH

A simulated production plant environment is now available in Bosnia and Herzegovina for the purposes of student education. Namely, the Faculty of Mechanical Engineering, Computer Science and Electrical Engineering at the University of Mostar has opened a Learning Factory. The Factory was officially opened at the International Economy Fair in Mostar in April 2019 and will open its doors to students in the next academic year, 2019/2020. In the words of the dean, prof. dr. Željko Stojkić “This Factory addresses the issue of inadequacy of graduate students’ skills in the labour market, which now increasingly demands not just theoretical but also practical knowledge and skills”. “The purpose of projects such as this one is to tear down the barriers between universities and industry and to give students an opportunity to get used to practical ways of thinking and working in the course of their studies. This will help them to successfully adapt to the conditions awaiting them in the real workplace tomorrow” adds Stojkić. Establishment of the Learning Factory is a result of joint efforts of the University of Mostar and nine small and medium enterprises from metal and plastics sectors in the West Herzegovina Canton and Herzegovina-Neretva Canton: Feal, Miviko, TEM Mandeks, TT Kabeli, Weltplast, Sik, Bilton, Škutor and Femis. The Factory was made possible by the European Union, through grants awarded via the EU ProLocal programme.

Modern curriculum Curricula to be used at the Factory were developed in cooperation with similar universities in Germany and Croatia. But a special contribution came from the businesses involved in the project, as their inputs made sure that the contents of the curricula will match both current and future labour market needs. “Their involvement in curriculum development was crucial as we are trying to educate the people of today for the jobs of tomorrow” says Stojkić. The Factory will provide practical training under basic, advanced and expert models of workplace management under simulated workshop conditions of a metal processing company, as well as training in vibration diagnostics, 3D modelling and 2D sketching. Trade and science Franjo Širić from the partner company Weltplast noted that the industry’s interest in participation in this project was to be expected “since trade and science cannot do without each other.” “With this Factory we gained a partner for professional development of our employees and a space for research and innovation in a realistic work environment, as well as for production and testing of prototypes” concludes Širić. To support the teaching process, partner companies have already jointly produced models of a windmill, scissors and an elevator platform, with an electric bicycle in the making.

GROWTH AND DEVELOPMENT Promotion of natural beauty, history and gastronomy of Herzegovina

Workshops for production of essential oils, perfumes and scented candles from petals of various flowers in the old fashioned way and tasting of traditional Herzegovan dishes prepared with locally produced ingredients are the new additions to the tourist offer in Posušje. “With the rise of awareness of the need to preserve traditional values and heritage, old skills and trades are making a prominent comeback in the recent years. This allowed me to turn my hobby into a small family business, and we named it Narcis” says Nada Šarić from Rakitno near Posušje. Šarić is one of many small entrepreneurs who were given an opportunity by the Three Lakes Development project to turn their business into an attractive product for tourists. The Project was supported by European Union grant funding and implemented by the Entrepreneurship and Business Association − LiNK Mostar in cooperation with the municipalities of Posušje, Jablanica and Prozor-Rama. “In designing this project, LiNK Association wanted to present to the public and promote the previously insufficiently promoted water resources in Herzegovina as a hidden tourism potential, so that by strengthening tourism in these parts we could help the residents make a living and show the guests something new as part of the BiH tourist offer” says Tomislav Majić, president of the LiNK Association. “And so Jablaničko, Ramsko and Tribistovo lakes became part of an integrated tourist offer based on the variety of cultures, customs and traditions in these parts”, adds Alisa Gekić, director of the LiNK Service Centre, and explains that for this purpose they “mapped a total of 132 resources relevant for tourism development ̶ from accommodations and producers of traditional foods to historical, cultural and sacral monuments and outdoor sports activities”.

Strengthening capacities Another place that earned its spot on the tourist map is the campsite Miris ljeta, located on a sandy beach at Jablaničko lake in the village of Ostrožac. Built in a unique place surrounded by many pear, apple and plum trees, it offers tourist accommodations in 25 wooden cottages fully equipped for nature retreats. The owner Derviš Gabela is already convinced of the value of this project. “We realised that linking these three locations has indeed improved the tourist offer and gave the guests another reason to visit and extend their stay; in my case by 30%.” As part of this project, LiNK simultaneously engaged in promotion of tourism potentials and on strengthening municipal capacities for sustainable tourism development. By taking part in this project, Municipality of Prozor-Rama strengthened staff capacities of the Local Development Agency. As noted by Jelena Ćališ, Agency director: „In addition to mapping tourism resources, the project helped us to establish better cooperation with tourism service providers, review potentials from a strategic perspective and define guidelines for further development of tourism.” Promotion of the lake area A web site (www.herzegovina-lakes.com) and Facebook page, together with YouTube and Instagram channels were created to promote this tourist offer through many photos and six attractive videos which show the natural beauty of the lakes and surrounding areas. Information booths for tourists and visitors were put up on the shores of the three lakes. Posušje municipality information booth introduced an innovation for BiH by including apitherapy in its tourist offer.

GRANT SCHEME Strengthening the competitiveness of small and medium enterprises

Measure 1 Improved competitiveness of small and medium enterprises through support to innovation and innovative approaches.

Measure 2 Strengthened municipal management capacities for economic recovery and development through introduction of relevant instruments, localisation of The Small Business Act and inter-municipal cooperation as a multiplier of current good practices.

Measure 3 Enhanced cooperation between the public and private sector in the implementation of economic recovery and economic development measures based on partnerships for promotion of innovation and public-private dialogue.

Measure 4 Improved competitiveness of target sectors and strengthened business models through addressing shortcomings that limit their development.

* The projects within Measure 1 and Measure 4 are showcased in the publication Outcomes of Grant Assistance for Enterprises (EU ProLocal, 2019). 12

PARTNERSHIPS FOR BETTER BUSINESS ENVIRONMENTS On the following pages we will present the results achieved by nine development partnerships in an effort to create a better business environment through stronger cooperation between municipalities, as part of Measure 2. Implementation of these projects, lasting between 12 and 18 months, involved representatives of municipal, city and cantonal authorities, associations of employers and development agencies. They invested grants received through EU ProLocal in amounts ranging from 50,000 to 100,000 euros and their own funds into activities that resulted in visible changes in numerous areas: from introducing investor support services and development measures aimed at existing businesses and start-up initiatives, through to sustainable tourism development. Specifically, information centres for investors and entrepreneurs were established at the municipal and cantonal level. Inter-municipal cooperation aimed at attracting investments was formalised and investment potentials were promoted. New business support services were introduced, focusing on youth employment. New tourist attractions were presented to promote sustainable tourism development. And the first Sustainable Energy Action Plan in BiH was produced. Implementation of these projects has laid the foundations for future cooperation between the important stakeholders in local economic development.

BUSINESS POINT ZENICA – THE ONE-STOP-SHOP FOR INVESTORS

PROJECT:

OBJECTIVE

Opening of the Entrepreneurship Support Centre

• Establish a system of communication and

in Zenica

coordination between existing LER instruments • Strengthen human resource capacities for

LOCATION:

cooperation with businesses and investors in ZEDA,

City of Zenica

Department for Local and Economic Development of the City of Zenica and the Association of

IMPLEMENTED BY:

Employers

Zenica Development Agency ZEDA

• Digitalise and promote entrepreneurship and investment potentials in Zenica via the Business Point web portal.

PARTNERS: City of Zenica

BUDGET

Association of Employers in Zenica

Total project value: EUR 100.985,95 Grant: EUR 80.450,58

PROJECT IMPLEMENTATION: 12 months

PROJECT ACTIVITIES With the establishment of the Business Point in Zenica, the city acquired a one-stop-shop for all services and information needed by current and future entrepreneurs and investors. Located in ZEDA offices, it provides entrepreneurs in Zenica with a space for business meetings and promotion of their services and products. The project supported a presentation of five companies to the investor community 14

and provided assistance on several occasions. Activities, inter alia, included attendance of 34 companies at the Celje Fair in Slovenia, and 10 companies were included in the collective presentation of Zenicaâ&#x20AC;&#x2122;s economic potentials at the Mostar Fair. Furthermore, the Centre conducted interviews with 150 companies to produce a labour needs assessment for Zenica and financed the retraining of workers for seven companies. Instead of the planned 30, a total of 43 persons, of which 23 were women, participated in the programme and received training for occupations ranging from carpenters, drivers and tailors, to heat exchanger installation technicians and CNC operators. The Centre now provides coordination between various economic development stakeholders in Zenica and contributes to building a new image of this city as an attractive business destination. According to official data, in the course of this project the number of sole trader enterprises increased by 14%, from 1,849 to 2,121. The three workshops, where 60 participants learned how to create a business plan and budget and mastered the basics of marketing, have resulted in actual business ideas. The best ten start-ups received financial subsidies and eight ideas received mentorship support. Furthermore, 17 start-ups received financial subsidies from the project partner, City of Zenica, ranging from 3,000 to 5,000 BAM. Forty civil servants were trained in addressing the challenges of dealing with entrepreneurs. Special focus was placed on the facilitation of compliance with BFC certification requirements, making Zenica one of the cities with a favourable business environment.

RESULTS • Business Point Zenica − Entrepreneurship and Investment Support Centre established • Number of registered sole traders increased by 14%, from 1,849 to 2,121 • Three workshops held for 60 persons interested in starting their own business; financial support provided to ten and mentorship support to eight best business ideas. • Retraining programme implemented for seven companies / 43 persons

COWORKING SPACE IN PRIJEDOR

PROJECT:

PROJECT IMPLEMENTATION:

MOS-LER

12 months

LOCATION:

OBJECTIVE

Prijedor, Gradiška i Kozarska Dubica

• Development and application of common policies and instruments for economic development

IMPLEMENTED BY:

and support to small and medium enterprises in the

Agency for Economic Development of the City of

territory of Prijedor, Kozarska Dubica and Gradiška

Prijedor PREDA-PD BUDGET PARTNERS:

Total project value: EUR 90.630

City of Prijedor

Grant: EUR 72.390

Municipality of Gradiška Municipality of Kozarska Dubica

PROJECT ACTIVITIES With the opening of Investor Information Centres in Prijedor, Kozarska Dubica and GradiĹĄka, anyone interested in investing and establishing business cooperation in this region now has access to a proactive, high quality support service. To support business development, a coworking space was created in Prijedor. With modern equipment, Internet access and a conference/training room, this space can be used by 3-5 people at the same time. Considering its modern audiovisual equipment, it is particularly useful for individuals working in the IT and creative sector. Networking and promotion of creative sector services were a special focus of this project due to its potential for youth employment. A database of all creatives was developed and published on the web platform idealab.rs.ba, where they can consult and learn about their colleaguesâ&#x20AC;&#x2122; work. A series of B2B meetings were organised between the creative and traditional sector, resulting in a number of professional engagements. They designed brochures and posters for the project as well as a video presentation of investment opportunities offered by the partners.

Inter-municipal cooperation was established to attract investments. A real estate market application was developed, providing an overview of available publicly- and privately-owned real estate properties that might be of interest to investors. Six joint projects were prepared and embedded into municipal development strategies: from the organisation of an economy fair and networking of agricultural producers, through to creation of a joint brand - Kozara. 18

Promotion of cooperation between municipalities in planning and implementation of their investment policies was also a topic of the regional conference held in Prijedor, attended by more than one hundred participants from BiH, Serbia, Croatia and Slovenia who came to exchange their experiences and examples of good practice. The project also brought attention to the issue of rural development and, based on experiences from Kozarska Dubica, statutory registration documents were prepared for the Local Action Group (LAG) in Prijedor.

RESULTS • Investor Information Centres opened in Prijedor and Kozarska Dubica • Coworking space opened in Prijedor • Inter-municipal cooperation conference on investment policies held • Creative sector network for Prijedor, Gradiška and Kozarska Dubica established • Statutory registration documents produced for LAG Prijedor, to support rural development • Study visit organised to the BEAR region, dedicated to instruments for attracting investments, and the Istria County in Croatia, dedicated to rural development models

MOBILE APPLICATION FOR SUPPORT TO ENTREPRENEURS

PROJECT:

OBJECTIVE

KOOPLokal – Strengthening the cooperation

• Doprinos jačanju saradnje između Privredne

between the Chamber of Commerce and

komore kao predstavnika poslovne zajednice

municipalities through support to local economic

i jedinica lokalne samouprave te jačanju

development

međuopćinske saradnje na području djelovanja komore Banja Luka

LOCATION:

• Doprinos unapređenju lokalnog privrednog

Prnjavor, Laktaši i Srbac

ambijenta i poboljšanju imidža lokalnih zajednica i privlačenju investicija kroz izgradnju i uvođenje

IMPLEMENTED BY:

instrumenata LER-a

Chamber of Commerce of Republika Srpska

• Doprinos razvoju kapaciteta jedinica lokalne

Regional Chamber of Commerce Banja Luka

samouprave za bolje razumijevanje i reagovanje na dinamiku i izazove privatnog sektora

PARTNERI: Municipality of Laktaši

BUDGET

Municipality of Prnjavor

Total project value: EUR 55.428

Municipality of Srbac

Grant: EUR 44.343

PROJECT IMPLEMENTATION: 12 months

PROJECT ACTIVITIES Banja Luka Chamber of Commerce supported the efforts

As part of this project, the Chamber also worked on

of the Municipalities of LaktaĹĄi, Prnjavor and Srbac to

improving the services it provides to its users. Namely,

introduce new services for entrepreneurs, tailored to their

the Chamber created a standardised package of support

actual needs.

services aimed at improving the image of specific locations

A mobile application for support to entrepreneurs was

and attracting investments. The package consists of three

designed for this purpose. The application includes a

services.

contact form to get in touch with municipal personnel,

First, the Chamber made the application source code

direct access to forms required to obtain public services

available at a 50% discount to 18 municipalities and three

and an overview of competitive advantages of partner

cities located within its area of responsibility. Second, users

municipalities. The application can be downloaded free of

were provided with the design methodology for sector-

charge from the Google Play store. Since the application

specific promotional materials and the InDesign template

is scalable, it will be continuously upgraded with new

for the publication Overview of opportunities for greenfield

features.

and brownfield investments and international cooperation

Two seminars were held to train 30 municipal staff how to

in wood and metal industries and agribusiness in the

use the application and about public-private partnerships

municipalities of Prnjavor, LaktaĹĄi and Srbac. Third, the

and project preparation. They had an opportunity to learn

Chamber added two seminars per year to its training

more about best local economic development practices

plan in order to strengthen local economic development

during the study visit to the chambers of commerce and

capacities.

public administrations in Germany. 21

It also produced nine publications on investment and foreign trade cooperation opportunities in partner municipalities, which were distributed to 1,500 recipients in BiH and 700 recipients across Europe whose addresses were available in the Chamber database, and also published them on partner municipality websites. RESULTS • Three new services introduced as a support package for attracting investments • Mobile application presented together with a free entrepreneurship support tool • Nine publications produced on investment and foreign trade cooperation opportunities in partner municipalities • Study visit to Germany organised for transfer of best practices in the domain of local economic growth and development of inter-municipal cooperation

ATTRACTING INVESTMENTS TO WEST HERZEGOVINA

PROJECT: Improving investment potentials in the West

City of Široki Brijeg

Herzegovina Canton

Municipality of Posušje

LOCATION:

PROJECT IMPLEMENTATION:

West Herzegovina Canton

12 months

IMPLEMENTED BY:

OBJECTIVE

Development Agency of the West

• Increase the number and quality of investor

Herzegovina Canton − HERAG

services • Improve the investment image of West

PARTNERS:

Herzegovina Canton and its municipalities

Municipality of Ljubuški BUDGET

Municipality of Grude

Total project value: EUR 78.968,25 Grant: EUR 63.058,95

PROJECT ACTIVITIES By increasing the number of services available to entrepreneurs and investors and by strengthening the capacities of municipal personnel to provide those services, HERAG, in cooperation with four municipalities in the West Herzegovina Canton, has laid the foundations for improvement and promotion of the investment potential of this region. Intermunicipal cooperation was formalised by a Partnership Agreement. 23

By creating an Investor Information Centre in its offices HERAG formally became a one-stop-shop for this canton, a place where investors can obtain all information relevant for investment decisions, either in person or via their website. Municipal personnel was trained how to foster a favourable business environment an promote municipal investment potentials, and how to manage business zones to retain the current and attract new investors. They were also trained to provide services to investors in line with three new standards related to information, assets and marketing. Concerning the information standard, in order to ensure appropriate and timely flow of information to potential investors, the project produced supplier databases, SWOT analyses and sector-specific studies. Implementation of the information standard resulted in a set of locations and facilities conforming to international standards, a requirement on which all investors insist. The marketing standard concerns promotion of the canton and the municipalities. Promotional materials were produced to this effect: investment brochures for each of the four municipalities, one joint brochure for the entire canton and one promotional video. Opportunities for promotion of investment potentials of this area were used, inter alia, during the study visit to the Istria County in the Republic of Croatia. This visit provided project partners with an opportunity to exchange good practices and experiences concerning the organisation of work with entrepreneurs. A reciprocal visit to the West Herzegovina Canton will be arranged in 2019, when the two regions will sign a cooperation agreement.

RESULTS • Investor Information Centre opened in the West Herzegovina Canton • Information, asset and marketing standards introduced into municipal operations • Seven sets of promotional materials produced for promotion of relevant territories, sectors and investment opportunities • Study visit to the Istria County organised for exchange of good entrepreneurship development practices

FINANCIAL SUPPORT MEASURES FOR ENTREPRENEURS

PROJECT:

PROJECT IMPLEMENTATION:

LocalInterAct Network

12 months

LOCATION:

OBJECTIVE

Laktaši, Prnjavor i Derventa

• Establish mechanisms for advanced municipal and inter-municipal support to exporters based on The Small Business Act

IMPLEMENTED BY: Enterprise Development Agency EDA Banja Luka

BUDGET PARTNERS:

Total project value: EUR 119.217,89

Municipality of Laktaši

Grant: EUR 95.100,43

Municipality of Prnjavor Municipality of Derventa

PROJECT ACTIVITIES Quantitative analysis and value chain analysis are the new analytical tools introduced by the project to the municipalities of Laktaši, Derventa and Prnjavor. These tools were used to produce assessments of their local economies and competitiveness of their key industrial sectors, wood processing and metal processing, together with guidelines for interpretation of results. These documents contain essential data about the economy and provide a baseline for monitoring local economic trends and appropriate responses. This was the first of the three measures introduced with the objective to strengthen the competitiveness of export-oriented companies in these two sectors.

Secondly, financial support measures were developed for export-oriented companies. Prnjavor will provide interest rate subsidies for purpose-specific loans, Derventa will finance the cost of introduction of quality standards, while LaktaĹĄi will focus on targeted professional development and retraining of the unemployed for employers with open job vacancies. And thirdly, specific projects were developed to support exporters: construction of a purchasing centre and subsequent establishment of the market in LaktaĹĄi, creation and employment of a qualified workforce in the metal processing sector in Prnjavor, and increased employment in the processing industry in Derventa. These projects will be implemented in the coming period.

These projects also focused on joint promotion of investment potentials, which was the focus of two study visits to European Union states – Croatia, Slovenia and Austria. Promotional materials were produced for this purpose: investment profiles and flyers for municipalities, as well as individual and joint promotional videos. All materials are available in English and most of them also in German. Shorter versions of these videos were produced in a web-compatible format. The project also laid the foundations for formal inter-municipal cooperation. The first step was the development of a joint tourism development project, which the municipalities can use to apply for donor funding. In order to improve operating efficiency in municipalities, the project provided two laptops to each municipality.

RESULTS • New analytical tools introduced into municipal practices − quantitative and qualitative analysis • Two local economy assessments produced, for the wood processing and the metal processing sector • Financial support measures for companies introduced • Three projects prepared for support to exporters • Promotional materials produced for investment potentials in partner municipalities

START-UP ACADEMY IN ŽEPČE AND GRAČANICA

PROJECT:

PROJECT IMPLEMENTATION:

Improving development potentials through

12 months

introduction of instruments supporting entrepreneurship, inter-municipal cooperation

OBJECTIVE

and investments

• Improve employment opportunities for young people through self-employment

LOCATION:

• Raise the awareness of the opportunities and

Žepče and Gračanica

benefits of self-employment and entrepreneurship • Develop a creative and innovative model for

IMPLEMENTED BY:

audio-visual and printed promotional materials

Žepče Development Agency

• Increase the visibility of the project, StartUp Academy and community entrepreneurship potentials

PARTNERS: Municipality of Žepče

BUDGET

Municipality of Gračanica

Total project value: EUR 81.486,44 Grant: EUR 65.593,00 PROJECT ACTIVITIES After establishing the Start-Up Academy with a mentorship model, Žepče Development Agency now offers an opportunity to all those interested in self-employment to master the theoretical and practical knowledge and skills needed to start and run a business. This contributes to the promotion of entrepreneurial spirit and provides a solution for youth unemployment in Žepče and Gračanica, partner municipalities. 29

The project included the delivery of training with seven training modules to a total of 18 participants from these two municipalities, 12 of which were women. Participants learned, inter alia, how to develop a business model, mastered the basics of marketing and branding and improved their presentation and negotiation skills. Of the 12 ideas produced, the best four ideas were selected and their implementation will be supported by mentoring provided by prominent BiH entrepreneurs. Two business ideas are an innovation for BiH: an application which tracks medications and dosage and alerts ill youngsters, and an aquaponic system for cultivation of fruits, vegetables and fish that provides fresh food throughout the year. The Academy will continue to operate as a permanent instrument for development and support to entrepreneurship in general and will continue to disseminate good start-up business practices to all municipalities interested in this type of programme. 30

To raise awareness about entrepreneurship, a panel discussion was organised under the title “Signpost for entrepreneurship” which gathered eminent names from the world of start-up businesses. A Guide for Starting a Business was presented at this event, containing a list of steps for anyone wanting to start a business and operate in this region, but also intended for public administration personnel responsible for adequate support to developing businesses. An additional contribution of this project to business development is the Online One-Stop-Shop with all information and documents that may be needed by entrepreneurs and investors. RESULTS • Start-Up Academy established and 18 participants trained in Žepče and Gračanica • Mentoring support provided to four business ideas • “Signpost for entrepreneurship” panel discussion organised • Online One-Stop-Shop for entrepreneurs and investors launched (www.akademija.razepce.com) • Guide for Starting a Business prepared

PRESENTATION OF THE THREE LAKES TOURIST OFFER IN HERZEGOVINA PROJECT: Tourism development on the three lakes

Municipality of Posušje

LOCATION:

PROJECT IMPLEMENTATION:

Jablanica, Prozor-Rama i Posušje

12 months

IMPLEMENTED BY:

OBJECTIVE

Entrepreneurship and Business Association −

• Sustainable tourism development on Jablaničko,

LINK Mostar

Ramsko and Tribistovo lakes

PARTNERS:

BUDGET

Municipality of Jablanica

Project value: EUR 98.457,99

Municipality of Prozor-Rama

Grant: EUR 78.226,57

PROJECT ACTIVITIES The project used a strategic approach to sustainable

entrepreneurs, non-governmental organisations active in

tourism development, which resulted in the promotion

this area and representatives of the three municipalities,

of Jablaničko, Ramsko and Tribistovo lakes as a

and were then used for joint preparation of the Integrated

package tourist offer and in the strengthening of relevant

Three Lakes Tourist Offer.

municipal services. This project can serve as an example

Five tour operators in BiH included this integrated offer in

of cooperation between the West Herzegovina Canton

their programmes. To ensure better promotion of the lakes,

and the Herzegovina-Neretva Canton in the field of

a Facebook page and a web page www.herzegovina-

development and strengthening of the tourism sector.

lakes.com were created, together with YouTube and

A total of 132 tourism resources were mapped – from

Instagram channels. Six attractive videos were produced,

accommodations and producers of traditional foods,

showing the natural beauty of the area around the lakes

to historical, cultural and sacral monuments and viable

and its tourist offer.

outdoor activities – and all were recorded in a unified

Information booths are available to tourists and visitors

database. Special focus was given to content that attracts

and provide information about accommodation, beaches,

young people.

gastronomy, outdoor activities, etc. Posušje information

Results of the tourism mapping exercise were used to

booth is thematically linked to an apitherapy chamber,

produce guidelines for further development of tourism in

which is an innovation in BiH in terms of content offered to

this area. The guidelines, inter alia, recommend packaged

tourists.

tourist offers and products, development of a thematic tour

Partner municipalities have signed a Cooperation

and support to small businesses as important links in the

Protocol to express their commitment to continued joint

tourism value chain. Guidelines were presented to tourism

engagement on tourism development.

RESULTS • Integrated Three Lakes Tourist Offer developed based on the mapped tourism resources and tourism development guidelines • Three tourist information booths set up on the three lakes • Social network channels created to promote the tourist offer • Services improved to cover additional 2,000 tourists in 2018

POSUŠJE ON THE MAP OF REGIONAL TOURIST DESTINATIONS

PROJECT:

PROJECT IMPLEMENTATION:

Tourism development

12 months

LOCATION:

OBJECTIVE

Municipality of Posušje

• Contribute to the development of instruments for local economic development

IMPLEMENTED BY:

• Provide support to the tourism sector in the

Municipality of Posušje

PARTNERS:

BUDGET

Association for Economic Development − REDAH

Project value: EUR 58.208,74 Grant: EUR 72.760,93

PROJECT ACTIVITIES By strengthening municipal capacities for tourism development and through creating and promoting its tourist offer, implementation of this project has put the Municipality of Posušje on the map of regional tourist destinations. Specifically, three tourism products were created: Traditional flavours of Posušje, Get to know Posušje and Aromas of Posušje, which in combination provide a unique glance at this area through its history, tradition and gastronomy. New tourism products were developed as a result of mapping of 160 small farmers and most important tourist destinations. This formed the basis for design of potential tours, identification of GPS coordinates, photography and brief interviews with farmers. All data was stored in a unified database. 35

Newly designed tourism products were integrated into the tourist offer of Herzegovina and officially presented at the two-day Blidinje Gastro Festival. This was the first event of its kind, held at the location of Masne luke, which was made into a municipal event centre as part of this project. It was equipped with exhibition tables, open-air heaters and a tent, which remain available to anyone involved in the promotion of values and potentials of Posušje. In addition to local exhibitors, the festival also featured exhibitors from Croatia and Montenegro who were introduced to project partners during their study visit to the Istria County and Gorski Kotar. The study visit also familiarised them with the process of designing distinctive rural and outdoor tourism products and the guidelines for avoiding pitfalls during development of a successful tourist destination./ Moreover, cooperation was established with the tourism cluster from Montenegro, which is already promoting tourist attractions in Posušje, and with LAG Adrion from Makarska, Croatia. The project offered training opportunities to farmers on the topics of branding, promotion and marketing, strategic planning and development of rural tourism, while municipal staff received training in project management. RESULTS • 160 local producers mapped and positioned in the tourism value chain • Three tourism products designed and integrated into the tourist offer of Herzegovina • The location of Masna luka equipped to host promotional events • Promotional materials created for the tourist offer in the Municipality of Posušje

THE FIRST SUSTAINABLE ENERGY ACTION PLAN IN BIH

PROJECT: Small and medium enterprises turn environmental

• Establish public-private dialogue between small

challenges into economic opportunities

and medium enterprises and public administrations • Support promotional activities for Energy Days

LOCATION:

• Support the development of a Promotional

Prijedor, Zenica and Gračanica

Plan focusing on green economy, improved competitiveness and development of the energy services market

IMPLEMENTED BY: City of Prijedor

BUDGET PARTNERS:

Total project value: EUR 73.358

City of Zenica

Grant: EUR 58.686

Municipality of Gračanica PROJECT IMPLEMENTATION: 12 months OBJECTIVE • Strengthen the competences of small and medium enterprises and public administrations for systematic development of green economy in line with Dimension 9 of The Small Business Act

PROJECT ACTIVITIES By producing the Sustainable Energy Action Plan (SECAP)

In order to foster public-private dialogue about the

in September 2018, Prijedor, along with Zenica and

introduction of energy management in companies,

Gračanica, became the first city in BiH to produce this

the project formed an Economic Council joined by the

document and fulfil the obligations arising from the

members of the Energy Council. They will work together

Covenant of Mayors, signed under the auspices of the EU.

to define measures and initiatives needed to create a

SECAP focuses on public and private sector measures

more favourable business environment and to strengthen

contributing to reductions in CO2 emissions and final

competitiveness.

energy consumption. However, the public sector is

A series of training programmes provided public sector

expected to act as a role model and take charge of

representatives with the knowledge and skills required to

implementation of the majority of measures in the building

negotiate with investors on matters of energy efficiency

sector, public transport, public lighting, etc.

and use of renewable energy, as well as on the monitoring

Furthermore, the document also covers areas where

system for SECAP implementation. Private sector

local authorities can act to create long-term impacts

representatives received training on energy management

on energy consumption (e.g. spatial planning), provide

in companies and project planning.

encouragement to the energy efficiency and energy

The project also provided support to Energy Days in

services market and change consumer behaviours by

Zenica and Prijedor, events dedicated to promotion of

working with the citizens and stakeholders.

energy efficiency and energy savings in everyday life and

The process of developing the SECAP presented an

use of renewable energy in companies.

opportunity for local authorities and companies to work together, thus improving their competences necessary for systematic development of green economy. RESULTS • The first Sustainable Energy Action Plan − SECAP in BiH produced for the City of Prijedor, City of Zenica and the Municipality of Gračanica. • Monitoring and evaluation system developed for SECAP implementation • SECAP Promotion Plan developed 38

PARTNERSHIPS FOR ECONOMIC DEVELOPMENT AND INNOVATION The following pages will present the results achieved by eight development partnerships in removing obstacles to development of entrepreneurship through coordinated efforts of both public and private sectors. In the period of 12 to 18 months, these development partnerships included small and medium enterprises, development agencies, agricultural and farmersâ&#x20AC;&#x2122; cooperatives and high schools and universities. They invested EU ProLocal grants, ranging in value from 60,000 to 100,000 euros, and their own funds to address challenges faced by entrepreneurs: from modernisation of vocational education and introduction of retraining for specific trades, through to networking and strengthening of export potentials. Specifically, the first Learning Factory in BiH is now open and provides students with a simulated environment of a real production plant. Sector clusters were created, together with business models that will strengthen their market position. Preparations for accreditation of new laboratory methods for agricultural and mechanical testing are now completed. Actors in the prune value chain had their capacities strengthened and barriers were removed to facilitate stronger exports. Implementation of these projects has set the foundations for continued cooperation between public and private sector stakeholders on creating the right conditions for economic development and greater innovation.

THE FIRST LEARNING FACTORY IN BIH

PROJECT: Strengthening competitiveness of small and

SIK Ltd. Mostar

medium enterprises through networking and

Škutor Ltd. Mostar

establishment of a Learning Factory

Bilton Ltd. Grude Municipality of Posušje City of Široki Brijeg

LOCATION: Široki Brijeg, Posušje, Grude, Mostar

PROJECT IMPLEMENTATION: 12 months

IMPLEMENTED BY: Faculty of Mechanical Engineering and Computer

OBJECTIVE

Science at the University of Mostar

• Create a learning environment resembling as PARTNERS:

closely as possible that of a real factory and actual

Feal Ltd. Široki Brijeg

working conditions

TEM Mandeks Široki Brijeg

• Create an organisation that will strengthen

TT Kabeli Ltd. Široki Brijeg

competitiveness and innovation in companies

WELTPLAST Ltd. Posušje

through cooperation

Miviko Ltd. Posušje BUDGET

Femis Ltd. Posušje

Total value: EUR 94.372 Grant: EUR 68.892

PROJECT ACTIVITIES The first Learning Factory in Bosnia and Herzegovina was opened in July 2018 at the Faculty of Mechanical Engineering and Computer Science at the University of Mostar. The Factory is a learning environment that simulates as closely as possible the actual working conditions in a factory, thus marking a major step forward towards a new education model at the national level â&#x20AC;&#x201C; that of knowledge production. The curricula were developed in cooperation with similar universities in Germany and Croatia and will provide students with opportunities for practical work as part of their studies and adults with opportunities for professional development. The Factory will provide practical training under basic, advanced and expert models of workplace management under simulated workshop conditions of a metal processing company, as well as training in vibration diagnostics, 3D modelling and 2D sketching. Partner companies are responsible for the practical part of education.

The project also contributed to the creation of a network of project partners, nine companies from West Herzegovina Canton and Herzegovina-Neretva Canton, in the Metal and Plastics Cluster, which was subsequently joined by two new members. Networking should facilitate mutual exchange of knowledge and skills, participation in international value chains, collective presentation at fairs and in complex international deals which may be too challenging for individual companies. As a cluster, the companies will be able to use Factory capacities in cooperation with the academic community for research and innovation in a real production environment and for development and testing of product prototypes. New, jointly developed products are already available: model windmill, scissors and an elevator platform. The Faculty opened a Cluster Coordination Office to keep members regularly informed of various projects and events, and remains available for expert support.

RESULTS â&#x20AC;˘ Learning Factory established at the University of Mostar â&#x20AC;˘ Metal and Plastics Cluster created for the West Herzegovina and Herzegovina-Neretva Canton

WOOD PROCESSING IN SECONDARY EDUCATION IN LJUBUŠKI

PROJECT:

Wood processing company MGI Ekus d.o.o.

Improving competitiveness and creating the

Ljubuški

foundations for future development of the wood PROJECT IMPLEMENTATION:

processing sector in the West Herzegovina Canton

12 months LOCATION: OBJECTIVE

Municipality of Ljubuški

• Increase secondary schools’ training capacities IMPLEMENTED BY:

and introduce new organisational processes

Wood Cluster Hercegovina

through cooperation between public, private and education sectors

PARTNERS: Municipality of Ljubuški

BUDGET

Secondary Vocational School Ruđer Bošković,

Total project value: EUR 74.995

Ljubuški

Grant: EUR 59.758

PROJECT ACTIVITIES Introduction of wood processing study programmes at the Secondary Vocational School Ruđer Bošković in Ljubuški in 2018 created the foundations for education of young carpenters, as well as designers as of 2019, at which time the school also plans to introduce programmes for retraining and professional development of adults. This contributes to the development of knowledge and skills needed on the labour market and to long-term development of the wood processing industry in the West Herzegovina Canton and elsewhere.

Eight students were enrolled in the new study programme and the curriculum was developed in line with the best practices in the European Union, shared with the directors of nine vocational schools from West Herzegovina Canton by the representatives of German and Austrian centres of competence during a study visit. Education focuses on practical training, both in the classroom and in a production plant. School premises were appropriately equipped and the partner company made its production plant and expertise available for this purpose. We expect that this approach to modernisation of vocational education will be followed by schools in Mostar, Tomislavgrad, Konjic and Jablanica. The quality of the teaching process is supported by the IMOS CAD7CAM software, which facilitates detailed planning of the overall furniture production process. The project provided six licences for this software, used not just in the teaching process but also for professional development of employees within the Wood Cluster. Provision of the IMOS CADCAM technology also ensured the standardisation of operations across the Cluster. Standardisation should simplify production processes and create opportunities for development of common products, which would increase the companiesâ&#x20AC;&#x2122; competitiveness and market share and also facilitate exchange of personnel between Cluster members. 44

RESULTS • Wood processing study programme introduced in secondary education in 2018/2019 • Six licences provided for IMOS CAD7CAM 3D design software • Standardisation ensured across the Wood Cluster

DEPARTMENT OF DESIGN AND TECHNOLOGY AT THE UNIVERSITY OF ZENICA

PROJECT:

OBJECTIVE

Development of an innovative education process

• Develop a new study programme based on close

and networking in the wood processing industry

cooperation with companies in the wood processing

in central Bosnia – RIPEUD

sector (also known as dual education) • Internationalisation of studies through

LOCATION:

development of international education and

Zenica, Gračanica, Tešanj, Žepče

business networks • Strengthen excellence in the wood processing

IMPLEMENTED BY:

sector and intensify investments in final processing

Faculty of Mechanical Engineering at the

activities through research, technology development

University of Zenica

and reliance on innovation and advanced technologies

PARTNERS:

• Develop new ideas and strengthen the

Zenica Development Agency - ZEDA

companies’ capacities through development of new

Prograd Holz d.o.o. Žepče

methods in design, technology, production and testing

PROJECT IMPLEMENTATION:

• Harmonise the sector with EU safety and quality

12 months

standards BUDGET Total project value: EUR 97.498 Grant: EUR 77.998 46

PROJECT ACTIVITIES The University of Zenica created the Department of Design and Technology at the Faculty of Mechanical Engineering, which will commence its operation in the academic year 2019/2020 and contribute to addressing skills shortages in the wood processing sector â&#x20AC;&#x201C; which lacks qualified engineers and designers. The curriculum is in line with vocational and dual education concepts and offers professional development opportunities via cooperation with universities across Europe, including student exchange. The benefits of the new department were presented to more than 50 wood processing companies in BiH and in many high schools. The project provided the equipment needed to fully equip the laboratories. IDEA_Lab, known for manufacturing prostheses for children born without hands, was equipped with a 3D scanner. DTD_Lab was equipped with a new compressor for the CNC machine, and FAB_Lab with new machines that will allow first year students to learn about the processing characteristics and behaviour of different types of wood. The project also published the first B/H/S - English dictionary for the wood processing sector.

As a result of training courses delivered as part of the project, partner companies have introduced new methods and technologies such as LEAN and 3D scanning of product designs which shortens the idea-to-prototype time from 3-6 months to seven days. Networking of manufacturers of ethno-style furniture from central Bosnia created a basis for joint market presentation and expansion of markets for these attractive products. With the procurement of a specialised device, the LIND laboratory can now provide furniture testing services to companies for furniture intended for educational and preschool institutions. A newsletter was produced on the topic of school and office furniture standards according to BiH legislation and EU directives. A project negotiated with the Italian company Biesse will result in construction of a 1,500 m2 training centre on the University campus. Upon finalisation, this will be the first public-private partnership project between a BiH university and a major international company. RESULTS • Wood design and technology study programme introduced at the Faculty of Mechanical Engineering at the University of Zenica • Quality improvement and excellence programmes introduced into companies’ production processes • Network of ethno-style furniture producers created in central Bosnia • LIND laboratory equipped with specialised testing device for school furniture

AUTOGENOUS WELDING IN SCHOOL PRACTICE IN DERVENTA

PROJECT:

PROJECT IMPLEMENTATION:

Strengthening competitiveness and innovation in

12 months

the metal processing sector through development OBJECTIVE

of a public-private partnership

• Increase innovation in the education system SECTOR:

through improvements in the teaching process and

Metal processing

practical training in companies, resulting in new employment

LOCATION:

• Strengthen cooperation between the public

Municipality of Derventa

and private sectors by establishing cooperation, exchange of experiences and engagement on

IMPLEMENTED BY:

strengthening competitiveness at the local level

LIR Evolucija Banja Luka

• Promote in-demand occupations in vocational schools and employment opportunities in metal processing companies

Partners: Municipality of Derventa

BUDGET

Metalac-MBM d.o.o. Derventa

Total project value: EUR 66.172,19 Grant: EUR 52.907,05

PROJECT ACTIVITIES By equipping the workshop at the Vocational and

The companies will provide training in the interim period.

Technical School in Derventa with modern autogenous

Metalac MBM, a project partner, trained and employed

welding equipment and by developing the adult retraining

32 new workers in 2018, of which 22 are still employed.

programme for welders, the project provided a solution

According to Employment Institute data, other metal

to the problem of workforce shortages in the metal

processing companies have employed 26 new workers in

processing sector in Derventa.

2018.

Students can now undergo appropriate practical training

The project also implemented a promotional campaign

at school and also have â&#x20AC;&#x2DC;working daysâ&#x20AC;&#x2122; in company

for occupational profiles needed in the metal processing

production plants. In the academic year 2018/2019,

sector, which resulted in Vocational and Technical School

approximately 20 second and third grade students are

in Derventa enrolling a full complement of 40 students into

attending practical training in six companies in Derventa.

its welder and locksmith classes in the first admissions term

This will allow metal processing companies to count

for the academic year 2018/2019, which was not the case

on a qualified workforce able to productively face the

in the previous years.

challenges of working in a production plant immediately

To balance labour supply and demand, the project

after leaving school, and will also reduce employee

introduced the practice of consulting the companies about

training costs by 20%.

their labour needs as an ongoing activity for the future.

The process of training a skilled workforce in Derventa will be completed with the introduction of an adult retraining programme for welders. Once it receives approval from the Ministry of Education of Republika Srpska, the school will offer an intensive course with both theoretical and practical elements, thus giving an opportunity to all interested persons to gain the required knowledge and skills.

RESULTS • Practical training workshop equipped with autogenous welding equipment • Training organised for 20 students in the production plants of six companies • Adult retraining programme created for welders • Promotional campaign implemented for in-demand occupations

CNC OPERATOR TRAINING AT THE HIGH SCHOOL IN GRADIŠKA

PROJECT:

PROJECT IMPLEMENTATION:

Partnership for sustainable transfer of knowledge

12 months

and local economic development OBJECTIVE LOCATION:

• Improve current and introduce new methods and

Gradiška, Derventa

instruments of support and coordination between companies, supporting institutions and local

IMPLEMENTED BY:

authorities

Municipality of Gradiška

• Contribute to improvements in the business environment to stimulate growth and development

PARTNERS:

of companies and develop adequate institutions to

Municipality of Derventa

support the business infrastructure

Technical School in Gradiška

• Increase interest in employment in the sector by

Vocational and Technical School in Derventa

developing practical competences and skills of the

University of Banja Luka

local workforce

TIKT manufaktura Ltd. Gradiška BUDGET

SIM-PROM Ltd. Derventa

Total project value: EUR 104.643,93 Grant: EUR 83.631,40

PROJECT ACTIVITIES The project provided support to the partnership for sustainable transfer of knowledge with the aim of contributing to the development of infrastructure that will strengthen workforce competences. For this purpose, the partnership conducted a survey of companies and analysed the collected data to prepare an Action Plan for increasing exports and competences of the local labour market. To set the foundations for stable increases in the availability of skilled workforce, particularly young people, the partnership ensured that the requisite conditions are in place to modernise vocational education in both municipalities and meet the requirements of one of the leading export sectors (metal processing). Two training modules were developed and workshops were equipped for practical training of CNC operators at the Technical School in GradiĹĄka and the Vocational and Technical School in Derventa. Eight training machines were procured for these workshops, five for the school in GradiĹĄka and three for Derventa. Employees of both schools were trained at the Faculty of Mechanical Engineering in Banja Luka.

Considering that the project helped to register the Technical School in Gradiška with the relevant institute as an adult education provider with nine training programmes for metal processing occupations, training programmes are now available to all interested parties on a commercial basis. 60 people were trained during project implementation. Students from Gradiška and Derventa had an opportunity to visit local companies and learn about actual labour needs, and also visited the Faculty of Mechanical Engineering in Banja Luka where they learned more about the available study programmes. Project partners also launched a media promotion of in-demand and promising industrial occupations. For the first time in many years, the Municipality of Gradiška is witnessing greater student interest in vocational schools than gymnasiums. A testimony to the success of this project can be seen in the inquiries received from neighbouring municipalities concerning the transfer of knowledge and experiences gained. Consultations are now in progress concerning the use of procured equipment by students from Srbac.

RESULTS • Partnership for sustainable transfer of knowledge established in order to develop the infrastructure needed to strengthen workforce competences • Action Plan developed for increasing exports and competences of the local labour market • Workshops equipped for practical training of CNC operators at the Technical School in Gradiška and the Vocational and Technical School in Derventa • Adult CNC operator training programmes introduced

IMPROVED QUALITY OF PRUNES

PROJECT:

PROJECT IMPLEMENTATION:

Innovation in the prune value chain

12 months

LOCATION:

OBJECTIVE

Municipality of Gračanica and Brčko District BiH

• Improve production quality and innovate the sales of prunes to create additional market value for small and medium enterprises

IMPLEMENTED BY: Independent Development Bureau Gradačac

BUDGET PARTNERS:

Total value: EUR 96.448,34

Municipality of Gračanica

Grant: EUR 76.723

Faculty of Technology in Tuzla Farmer’s Cooperative Gračanka, Gračanica Maočanka–Commerce d.o.o. Brčko

PROJECT ACTIVITIES By strengthening the capacities of all stakeholders in the prune value chain – from fresh plum producers and processors to distributors and municipal structures, the project contributed to quality improvements in production and drying processes and in product presentation.

In order to provide expert support to fruit producers,

training, where they learned how to properly prepare the

the Municipality of Gračanica established its own

soil and seedlings and planted their first plum trees with

Advisory Service. This public-private partnership includes

expert assistance.

representatives from the municipal Department of

The ‘learning by doing’ approach was also used during

Agriculture, Association of Agricultural Producers and

recovery of existing plum orchards. In cooperation with

the Farmers’ Cooperative. The project provided them

owners, 100 plum orchards with more than 100,000

with training on plum cultivation, plum orchard survey

trees were surveyed and measures were proposed for their

and recovery methods and on criteria for selection of

recovery. Eight plum orchards were fully recovered and

appropriate land plots for orchards. Practical training

the project provided complete irrigation systems to their

of fruit producers in integrated and environmentally-

respective owners. For better product presentation, the

friendly plum production and innovative methods for

project supported packaging redesign the for five existing

improving yield and quality was held in four pilot orchards

products and development of new designs for two new

in Gračanica and one in Brčko District, which were

prune products. New designs were officially presented at

established for training purposes and equipped with drip

the 2018 Gradačac Plum Fair and at the Agricultural Fair

irrigation and anti-hail protection. Students from the

in Novi Sad and will be used for further development of

Faculty of Technology in Tuzla also participated in this

territorial marketing. 56

RESULTS • Advisory Service established in the Municipality of Gračanica as a public-private partnership • Four pilot orchards established for practical training of fruit producers in plum cultivation • Eight plum orchards recovered and 80 fruit producers trained in recovery methods using the ‘learning by doing’ approach • Supported redesigns for five products and designs for two new products

TOWARDS QUALITY CERTIFIED FRUITS AND VEGETABLES IN BIH

PROJECT:

Association of Vegetable Producers of

Accreditation of laboratory methods

Republika Srpska

LOCATION:

PROJECT IMPLEMENTATION:

Prijedor, Derventa, Gradiška, Laktaši, Kozarska

12 months

Dubica, Srbac, Teslić, Bijeljina, Ugljevik, Doboj, OBJECTIVE

Modriča

• Accreditation of laboratory methods as a means IMPLEMENTED BY:

of contributing to increased yield, quality, food

Agricultural Institute of Republika Srpska

safety and competitiveness in the domestic fruit and vegetable value chain.

PARTNERS: City of Prijedor

BUDGET

Municipality of Srbac

Total project value: EUR 61.455

Association of Fruit Producers of Republika Srpska

Grant: EUR 48.549,57

PROJECT ACTIVITIES The Agricultural Institute of Republika Srpska has fulfilled the criteria for accreditation under the international ISO/IEC 17025 standard, which defines the required competences for testing and calibration laboratories.

The project supported the necessary preparations for 11 laboratory methods for quality and food safety testing of agricultural plant products, seeds, soil and mineral fertilisers. In parallel, employees of the Institute were trained in the proper use of new methods. The certificate should be issued by the BiH Accreditation Institute in October 2019. The Institute believes that this certificate will serve as evidence of its international competence and estimates that it will result in a 70% increase in the number of users and test samples. Considering that certification guarantees the safety and quality of products and services, it should greatly contribute to the competitiveness of the agribusiness sector. The Institute organised a presentation for around 80 farmers from the partner municipalities of Prijedor, Srbac and GradiĹĄka on the advantages of use of certified laboratories and how this impacts opportunities for higher sales and exports. The presentation also covered trends in the promotion of products with quality certified by accredited laboratories.

To familiarise users with the new services, users received training in controlled treatment of fruit and vegetables with pesticides and the effects of such treatment on product quality. Users were also trained about the importance of good agricultural practices and controlled production models, as well as correct sampling of agricultural products for testing. In addition to engaging with users, the Institute launched a set of promotional activities aimed at raising consumers’ awareness of the importance of quality and food safety of agricultural products. Implementation of this project created the foundation for further cooperation on strengthening the competitiveness of the agribusiness sector.

RESULTS • Preparations completed for accreditation of 11 laboratory testing methods for quality and food safety of agricultural plant products, seeds, soil and mineral fertilisers • Training on the importance of controlled production and correct sampling delivered to fruit and vegetable producers in the municipalities of Prijedor, Srbac and Gradiška

ACCREDITATION OF THE LABORATORY AT THE FACULTY OF MECHANICAL ENGINEERING IN BANJA LUKA PROJECT:

PROJECT IMPLEMENTATION:

Strengthening external and internal quality

12 months

infrastructure in small and medium enterprises to OBJECTIVE

support innovative production

• Establish mechanisms and capacities for various LOCATION:

types of support contributing to innovative product

Gradiška, Banja Luka, Kozarska Dubica i Srbac

development in the metal processing sector

IMPLEMENTED BY:

BUDGET

Faculty of Mechanical Engineering in Banja Luka

Total project value: EUR 105.502,50 Grant: EUR 84.402

PARTNERS: TIKT manufaktura Ltd. Gradiška Municipality of Gradiška

PROJECT ACTIVITIES The Faculty of Mechanical Engineering at the University of Banja Luka has fulfilled the criteria for accreditation of the mechanical testing laboratory according to BAS EN 17025: 2006 for two test methods:

tensile strength and toughness of metal products. In

Availability of mechanical testing services in BiH will result

parallel, Faculty personnel were trained in the application

not only in time savings, but also in financial savings of up

of new methods. The certificate should be issued by the

to 50% compared to the current prices in nearby countries

BiH Accreditation Institute in October 2019, making this

which the companies must pay at the moment.

institution the first accredited mechanical testing laboratory

The project also addressed the issue of workforce training

in BiH.

for profiles needed by the metal processing sector

The project supported the necessary preparations for

in the Municipality of GradiĹĄka. A practical training

accreditation and provided the missing equipment: test

workshop for CNC technologies was equipped for this

tube preparation device, air-conditioner and some lab

purpose at the Technical School. This institution can now

inventory. The laboratory is now equipped with state-of-

provide appropriate practical training to its students and

the-art equipment for complex mechanical testing.

offer training courses to other interested parties on a

With this accreditation the Faculty of Mechanical

commercial basis.

Engineering will be able to provide technical and expert

The project also provided support to the partner company

support to metal processing companies for certification

to commence the introduction of international standards

of their current products, development and launch of

required to enter a new market niche in the aircraft

new products, and will play a part in strengthening their

industry and establish cooperation with major buyers of

competitiveness.

aircraft parts.

RESULTS • Criteria fulfilled for accreditation of the mechanical testing laboratory and two test methods: tensile strength and toughness at the Faculty of Mechanical Engineering of the University of Banja Luka • Capacities created for training of CNC operators at the Technical School in the Municipality of Gradiška