Presentation of Possible Investments

MUNICIPALITY OF KOTOR VAROS Presentation of possible investments

February 2013 MUNICIPALITY OF KOTOR VAROS Content

Content ...... 2 Where we are? ...... 3 Key indicators ...... 4 Why to invest in Kotor Varos? ...... 5 Development vision ...... 6 Priority fields ...... 7 Traditions and natural beauty...... 8 Offer (Brownfield) ...... 9 Offer (Greenfield) ...... 14 Examples of good practice ...... 18

2 MUNICIPALITY OF KOTOR VAROS Where we are?

Distance between Kotor Varos and regional centers km the time it takes using a car Banja Luka (BiH) 35 0 h 33 min Zagreb (Hr) 221 2 h 41 min Ljubljana (Slo) 361 4 h 00 min Beograd (Srb) 365 3 h 55 min Wienna (A) 593 6 h 03 min Milano (It) 849 8 h 35 min

Bosnia and Herzegovina on the Europe map Lokacija opštine Kotor Varoš na karti Bosne i hercegovine

Municipality of Kotor Varos on the Bosnia and Herzegovina map 3 MUNICIPALITY OF KOTOR VAROS Key indicators!

• The municipality of Kotor-Varos occupies the territory of 560 km2 (56.72% of which is covered with woods, 38% is agricultural land). Rivers and streams make 0.65%. • Moderate continental climate, average monthly temperature from -1,3° C (January) up to 20,2° C (July, August). • Estimate population number is 27.500, approximately 52% are women. • Number of unemployed is 3.290. The structure of the unemployment has different profiles by level and type of education (engineers, economists, lawyers, mechanical, potter, wood processing, construction, tourism and agricultural technicians, skilled craftsmen of various trades and unskilled workers). • There is the possibility of rapid and effective retraining the workforce to the needs of investors. • Natural resources: - Water: numerous sources of drinking water, clean mountain rivers and streams suitable for the cultivation of brown and rainbow trout, the energy potential of about 40 MW, - Clean air is suitable for sports and recreation activities (health resort) - Forests: over 50% of the municipal territory occupied by forest and woodland (oak, hornbeam, beech and fir) with a total annual allowable cut of about 100,000 m³ - Plot: over 30% of the territory is agricultural land (mostly untreated with chemicals), - Ores: deposits of coal and manganese.

4 MUNICIPALITY OF KOTOR VAROS Why to invest in Kotor Varos?

Why Republic of Srpska, Bosnia and Why Kotor Varos? Herzegovina? - Concrete offers, ready-made buildings and - A favorable geographical position; land (Greenfield and Brownfield) with - Availability of natural resources and beauty; available infrastructure; - The long tradition in different - Available and educated workforce manufacturing industries; - Availability of industrial zones, attractive - The long tradition in machine, wood locations and has built a factory; processing, leather and textile industry; - Transparent legislation; - Excellent quality of life; - Low taxes; - Natural resources - An educated and cheap labor force; - The municipal administration is offering - A stable domestic currency pegged to the special benefits to support investors; euro BAM; - More examples of successful practices. - Regional and bilateral free trade; - A clear EU perspective.

http://www.investsrpska.net http://www.fipa.gov.ba

5 MUNICIPALITY OF KOTOR VAROS Development vision

Kotor Varos, a town on Vrbanja, 2020. -The popular business and tourist destination near Banja Luka.

Kotor Varos 2020th -the site of intensive development of small business and competitive products in the areas of agriculture, health and traditional food, tourism, wood, and leather. Urban and rural areas and communities where education and knowledge strongly contribute to economic growth and increasing living standards . This will be achieved by storing and using the very best Kotor Varos have: smart and hardworking people, plenty of clean water (Vrbanja river and its tributaries), unpolluted land, renewable energy and natural and healthy environment. In this way, Kotor Varos will be built as a community that provides quality to its citizens, living and working conditions, where everyone is welcome and is a popular business and tourist destination near Banja Luka .

4 Protection and use of the 1 The intensive development rich natural heritage in of small family businesses and accordance with ecological competitive agricultural, principles and the principles industrial and tourism of sustainable development products 3 Development of human resources and social 2 Build infrastructure and infrastructure which strongly regulated urban and rural contribute to economic areas growth and increasing quality of life for the whole community

6 MUNICIPALITY OF KOTOR VAROS Priority fields

Development priority areas:: •Finalizing the field of wood processing - Production of furniture •Development in the field of leather-processing, textile, footwear and mechanical production •Development of agricultural production - Production of healthy food •Development of Tourism Possibilities: -Greenfield investments by building plants in the free construction land (purchase or lease); -Brownfield investments through the organization of production in existing buildings (former industrial facilities and other leisure facilities in the state-owned); -Available and skilled workforce, build infrastructure, and the possibility of cooperation with existing producers; -About 700 hectares of available farmland for organic food production and agricultural development owned by the Municipality of Kotor Varos; -Free Facilities former cooperatives and schools to run a business; -Vrbanja river and its tributaries suitable for fish farming (especially brown and rainbow trout) and the construction of new hydro flow (in the area of planed 12); -Nature parks with exceptional hydrographic and landscape characteristics suitable for the development of excursion and spa tourism, hunting and fishing (fly-fishing).

7 MUNICIPALITY OF KOTOR VAROS Traditions and natural beauty

• Tradition in the primary processing of wood (manufacture of lumber); Existing production facilities: 15 companies, 326 employees, export-oriented 9 (Fagus, Arboreko, Silvatika, Primula, Brio, EFM, Go-Timber, Bubic, Edo); • Tradition in the processing of leather, textile and metal products (leather, footwear, leather goods, hosiery, machinery and equipment, metal structures, etc.). Existing manufacturing facilities: 6 companies, over 1500 employees, 4 export-oriented (Sportek, Dermal R, Mechanical design, Sim-technik); • Tradition in farming ("Vlasic cheese") • Over 96 hectares of arable agricultural land and building for the establishment of retail sale, • Registered farms: 620 households (growing fruits, vegetables, grains, livestock) with 1148 working-age members • 4 active associations of agricultural producers (growers, beekeepers, shepherds); • Scenery (Vrbanje River basin, the slopes of mount Vlasic, Uzlomca, Cemernica and Borja) • Natural and culture-historic heritage (parks, waterfalls, old city of Kotor fortress from XIV century). • Diversity and the preservation of flora and fauna-many types of wildlife (bears, roe deer, wild boar, wolf, fox, rabbit).

8 MUNICIPALITY OF KOTOR VAROS Offer (Brownfield)

Former factory building "FAST" Location: urban settlement, business zone PROLEKS

Earlier purpose: Adhesive tape factory, with support facilities Area: 3.400 m2 RESERVED Investor from Italy 79,05 x 41,50 m (production facility) 20,00 x 10,00 m (I floor, offices) Substation: 2 x 630 kW The building was built in 1982 and fully renovated Ownership: Private Offer: Sell property

Extra offer: A building plot - 10.528,00 m²

9 MUNICIPALITY OF KOTOR VAROS Offer (Brownfield)

Former factory building "BOSNA" Location: urban settlement, business zone PROLEKS Earlier purpose: Shoe factory Area: 1.040m², height 6 m Built: 1974 Renovated: 2008 Substation: 101 kW(common for neighborhood and Dermal R), new water and sewage installations, the plot goes underground transmission line. Building land: 4000 m², possibility and subsequent acquisition of land 1000 m² Ownership: private “DUROGEM" d.o.o. Celinac

Offer: Sale or organizing production 10 MUNICIPALITY OF KOTOR VAROS Offer (Brownfield)

The old school

Location: Maslovare - community center, 20 m from the main road M4 (Banja Luka - Doboj)

The space used for the production of doors and safety equipment

Area: 1180 m2 (two floors)

Population of Maslovare: 5000

Ownership: Municipality of Kotor Varos

Offer: Lease for organizing production with a minimum fee 11 MUNICIPALITY OF KOTOR VAROS Offer (Brownfield)

Facilities: old school, home and two objects agricultural cooperatives Location: The community center of Krusevo Brdo and the slopes of Mount Vlasic Earlier purpose Cooperative objects: buying centers of agricultural products Ownership: Municipality of Kotor Varos Offer: Lease for a minimal fee

Old School • Objects can be used to purchase and final processing of agricultural products: the traditional "Vlasic cheese", milk, organic potatoes, white and red onions, beans, organic carrots, oats and others. • Large areas of land in the state and private ownership that has not been treated with chemicals.

Home of the local community Agricultural cooperatives facility Agricultural cooperatives warehouse 12 MUNICIPALITY OF KOTOR VAROS Offer (Brownfield)

Old school buildings (four buildings)

Location: village Siprage, Grabovacka Rijeka, Grabovica and Savici Infrastructure: roads, water and electricity Ownership: Municipality of Kotor Varos Offer: Lease for a minimal fee

• Objects can be used to launch small-scale production, for the purchase of agricultural products and handicrafts organization Siprage

Grabovacka Rijeka Grabovica Savici 13 MUNICIPALITY OF KOTOR VAROS Offer (Greenfield)

Savanovica vrelo Location: Krusevo Brdo, village Savanovic, Vlasic mountain slopes Purpose: Part of drinking water from wells used to supply schools and residents in the local community Ownership: Private Offer: a partnership with the owner of the land • The source can be used to build factories drinking water ponds and tourist complex.

14 MUNICIPALITY OF KOTOR VAROS Offer (Greenfield)

Building land Banja Luka Plots: k.č. 2347/11 i k.č. 2347/379 Location: urban area 1300 m from the M4 motorway, 20 km from the train station in Celinac, 50 km from the airport Banja Luka.

Infrastructure: water supply available, sewage and electricity networks Total area: 39 258 m² Ownership: Municipality of Kotor Varos Plots are drawn in the plan and are 3 classes as a meadow. Options deferred payment building permits and accelerated procedures making decisions on the allocation of construction land Access time: associated with the main plot through M4, Stefan Nemanja street

highway M4 (Banja Luka - Doboj) access road Stefan Nemanja street lot 15 MUNICIPALITY OF KOTOR VAROS Offer (Greenfield)

Building land Banja Luka Plot: k.č. 705 Location: urban area, 500 m from the main road M4, 19 km from the train station in Čelincu, 50 km from the airport Banja Luka.

Infrastructure: water supply available, sewage and electricity networks

Plot area: 14370 m² Ownership: Municipality of Kotor Varos

Access time: associated with the main Plot through M4, Stefan Nemanja Street and Dositeja Obradovic street

M4 motorway (Banja Luka-Doboj), Stefan Nemanja Street and Dositeja Obradovic street 16 MUNICIPALITY OF KOTOR VAROS Offer (Greenfield)

Building land Banja Luka Plot: k.č. 102/1 i k.č. 102/3 Location: urban center, near the plant: Mechanical structures, 300 m from the main road M4, 17 km from the train station in Celinac, 50 km from the airport Banja Luka.

Infrastructure: Available water and power network

Total area: 18 812 m² Ownership: Municipality of Kotor Varos

Plots are drawn in the plan and are 4 as a field class.

Access time: associated with the main plot by M4 Motorway M4 (Banja Luka – Doboj) Access road 17 MUNICIPALITY OF KOTOR VAROS Examples of good practice

- Municipality of Kotor Varos is successful, open and promising municipality. Attracting, both, foreign and domestic investments. - Realized investments:

18 MUNICIPALITY OF KOTOR VAROS Examples of good practice

Sportek company is 100% Greenfield investment - Italian investor. The company manufactures athletic shoes for the world's biggest brands and parts for the auto industry and cycling. Since 2004. was constructed five (5) factory with ancillary facilities area of about 15,000 m2.

"The municipality of Kotor Varos has always been interesting to invest in further development of the company. In the last 10 years number of workers has increased from an initial 300 up to 1,200 employees in the Sportek company. " Director Sportek d.o.o., Federico Zeccetto,

19 Thank you for your attention and welcome to the Municipality of Kotor Varos!