IN NUMBERS • Surface area: 501 km² • Population: 18.472 (2011 census) – increased for 12% since 2003 census • Elevation from 30 to 2100 MASL • Valleys - up to 200 MASL – 140,5 km² • Hills - up to 600 MASL– 81 km² • Mountains above 650 MASL – 275 km² • Highest peaks – Garač (Peak Bobija) 1436 MASL, Ponikvica (Peak Kula) 1927 MASL and Maganik (Petrov Peak) 2127 MASL

COMPARATIVE ADVANTAGES • Strategic geographic location • Transport connections • Defined industrial (business) zones • Development resources • Efficient local administration • Incentive measures and subventiones STRATEGIC GEOGRAPHIC LOCATION TRANSPORT CONNECTIONS • 18 km from capital city • 25 km from International Airport (Golubovci) • 70 km from International Seaport (Bar) • 20 km from highway Bar – Boljare which is in construction • 10 km from future Adriatic – Ionian highway (Italy – Slovenia – Croatia – Bosnia and Hercegovina – Albania – Greece) • Rail transport DEFINED INDUSTRIAL (BUSINESS) ZONES • 2007 year - Spatial Plan was adopted with defined industrial (business) zones • 2014 year – Spatial – urban Plan was adopted with defined additional industrial (business) zones • The biggest zones are along the major roads: European route E762 Sarajevo – Podgorica – Tirana (12 km) – 100 m from both sides Regional road Bogetići – Danilovgrad – Spuž – Podgorica (11 km) – 100 m from both sides

IMPORTANT BUSINESS ZONES - POTENTIALS

DANILOVGRAD – ŽDREBAONIK MONASTERY • Built infrastructure • Religious tourism and accommodation capacities (Ždrebaonik Monastery) • Agricultural and production capacities • Wood and stone production • Near the river IMPORTANT BUSINESS ZONES - POTENTIALS

MARTINIĆI – GRADINA • Brown field investments (former factories) • Eco food and eco tourism • Construction and ornamental stone finds - mines • Historical and cultural heritage (Martinić hillfort, Spuž fortress) IMPORTANT BUSINESS ZONES - POTENTIALS

BANDIĆI • Organic food production • Hiking and biking tourism • Eco and etno tourism • Wine, honey and meat production • Tourism IMPORTANT BUSINESS ZONES - POTENTIALS

GLAVE ZETE – OSTROG MONASTERY • Agriculture • Religious tourism (Ostrog Monastery) • Accomodation capacities • Food production • Hand – made production IMPORTANT BUSINESS ZONES - POTENTIALS

STUDENO • Mountanious tourism • Hiking and biking tourism • Hunting tourism • Accomodation capacities • Eco and etno villages • Air spa IMPORTANT BUSINESS ZONES - POTENTIALS

GOSTILJE • Eco food production • Village tourism IMPORTANT BUSINESS ZONES - POTENTIALS

VUKOTICA – PONIKVICA • Excursion, hiking and hunting tourism • Accommodation capacities • Organic production • Milk and meat production • Forestry production • Lake Ponikvica NATURAL RESOURCES • Agricultural land: cca 17.302 ha (38 % of arable surface and the rest is occupied by pastures / Over 200.000 heads of all kinds of livestock) • Forests: forest complexes Studeno, Ponikvica, Prkeornica, Štitovo, Garač / The annual allowable cut cca 14000 m³ of gross timber mass • Architectural - structural stone / The finds are: Maljat, Vinići, Visočica, Klikovače, Suk, Jovanovići, Slatina etc • Waters: River Zeta and its tributaries: Sušica, Morava, Gračanica, Kulendrija, Matica and Rimanići stream • Hunting and fishing: Natural characteristics of the area provide conditions for breeding and hunting of wild animals and fish CULTURAL RESOURCES

• Shrines: Ostrog Monastery, Ždrebaonik Monastery and cca 45 village churches. • Archeological sites: Gradina, Crkvine, Frutak, Spuška glavica s bridge, Zurska church׳Old buildings: Bridge of Mirko Petrović, Adžija • • Speleological sites: caves Patalina, Studendula, Nezbroj etc. • Vacation resorts: Glava Zete, Studeno, Ponikvica, Vukotica • Cultural institutions: Cultural Center, Art Colony, Museum and Gallery at Rsojevica CULTURAL RESOURCES THE ENERGY SECTOR

• Hidroeneregy – river Zeta (flow 50 km) - Existing HPP Glava Zete (12 GWh) and Slap Zete (3,5 GWh) - Planned HPP Rošca (5 MW) • Alternative sources of energy • Defined zones for building solar farms FOOD PRODUCTION • Milk production and processing (largest dairy in ) • Agriculture – vegetable growing • Indoor agricultural production (existing capacities – 80 000 m²) • Livestock raising (use of existing pig farms' capacities or construction of new ones) • Sheep and goat breeding • Poultry (the largest farm in Montenegro with a capacity of 200 000 chickens) • Beekeeping (House of honey - National center for the development of beekeeping) • Fruit and wine growing • Production of spices and medicinal herbs FOOD PRODUCTION FOOD PRODUCTION BUSSINES STRUCTURE

• Registered active subjects: The number of the registered companies (SC, LLC): 490 The number of the registered enterprenauers: 145 The number of the public companies and institutions: 29 The number of partnerships, NGOs i associations: 64 BUSSINES STRUCTURE

• Structure of the business associations and enterprenauers: Production – 64 Trade – 228 Hospitality facilities – 39 Services – 183 Total number of employees – about 4300 Unemployment rate - below national average EFFICIENT LOCAL ADMINISTRATION

• Simple procedures for investors: 1. Letter of intention 2. Reception by the President of the with associates 3. Determination of a contact person to support the investor

ALL LICENSES AND APPROVALS FROM LEVELS OF THE LOCAL GOVERNMENT ARE AVAILABLE FOR 24 HOURS PRIZES AND AWARDS • The best practice in Local Governments for the tax accounting system (OSCE and Union of ) • The best practice in Local Governments for removing business barriers (OSCE and Union of Municipalities) • The best practice in Local Governments for project preparation and implementation of EU funds (OSCE and Union of Municipalities) • In the first 6 municipalities in Montenegro by degree of competitiveness (Government of Montenegro) • Second place in Montenegro for level of cooperation with NGOs • Second place in Montenegro for level of transparency (USAID and CDT) • 4 people from recieved Manager of the year for South-East Europe awards INCENTIVE MEASURES AND SUBVENTIONES

• Incentive fee for communal equipping of construction land

ZONE I I II III IV COST (€) 50,00 45,00 25,00 20,00/10,00 10,00 INCENTIVE MEASURES AND SUBVENTIONES • REDUCTION OF FEE PAYMENT: TYPE OF FACILITY PERCENTAGE OF REDUCTION

For facilities intended for production, processing and storage 75 % For independent facilities, underground garages and underground garages in the 90 % building For open spaces on a plot that is designed for performing activities 90 % For independent facilities, overground garages and overground garages in the building 85 %

For primary hospitality facilities referred to in Art. 90 of Law on Tourism 75 % Apatment hotels, condo hotels and garni hotels 75 % • POSIBILITY OF PAYMENT IN RATES INCENTIVE MEASURES AND SUBVENTIONES

• PRACTICAL EXAMPLE • In the business zone of the European route E762 Sarajevo – Podgorica – Tirana, 12 km long, for production, processing and storage capacities, the fee is 5 € / m² • In the business zone of the regional road Bogetići – Danilovgrad – Spuž – Podgorica, 11 km long, for production, processing and storage capacities, the fee is 2,5 € / m² INCENTIVE MEASURES AND SUBVENTIONES

• Subsidies for milk producers (3 cents per liter) • Subsidies for agricultural holdings in the mountain area (free solar systems) • Subsidies for farmers (free harvest) • Help and support in the education and introduction of standards • Support for use of EU funds through assistance of the Project Management Unit • Other incentive measures and subsidies from the state level • Distributive – logistic center and customs office – facilitating the import and export of products BUSSINES – FRIENDLY CITY

Trg 9.decembar 81410 Danilovgrad Montenegro Tel: +382 20 812 022 Fax: +382 20 810 140 E – mail: [email protected]