Western Macedonia Investment Profile

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Region of Western Macedonia Investment Profile

June 2018 Contents

1. Profile of the Region of Western Macedonia

2. Western Macedonia’s competitive advantages

3. Investment Opportunities 1. Profile of the Region of Western Macedonia

2. Western Macedonia’s competitive advantages

3. Investment Opportunities

4. Investment Incentives Region of Western Macedonia: Quick facts (I)

Western Macedonia, a region in North - Western Greece, includes the Regional Units of Florina, Grevena, Kastoria and Kozani. •The Region of Western Macedonia covers a total surface of 9451 km2, 7.2% of country’s total. The nature of the region is mountainous, while river Aliakmonas travels down through it. •On the north it borders with Former Yugoslav Republic of Macedonia and Albania, while in Greece borders on the east with the Region of Central Macedonia, on the south with the Region of Thessaly and on the west with the region of Epirus. •It is the only Greek region without sea coast, but on the other side there are a lot of lakes, mountains, picturesque villages and two big ski centers in Florina (Vigla) and Grevena (Vasilitsa). •The Region is well-known for its rich natural resources, such as fossil fuels4.(lignite), Investmentores (asbestos, Incentiveschromite, marble etc.), forests (50% of its total land) that form ecosystems defined by rich biodiversity, as well as pastures, while it also has the greatest surface water potential in Greece (approximately 65% of the country). •Key cities include namely Kozani (the largest city and capital of the Region) , Ptolemaida, Grevena, Florina, Kastoria. Region of Western Macedonia : Quick facts (II)

Demographics and Workforce quick facts

Population: 283,689 (2011)

2.62% of the total Greek population

Main macroeconomic data of the Region of Western Macedonia

2012 2013 2014 2015 2016 GDP* 4,724 4,398 4,530 4,304 n.a. GDP per capita** 16,711 15,707 16,320 15,642 n.a. 4. Investment Incentives Gross fixed capital 1,071 1,071 929 911 n.a. formation* Workforce (‘000) 114.4 112.6 113.9 117.0 118.0

Unemployment 29.7 31.6 27.6 30.8 31.3 Rate (%) *In million euro **In euro Source: Hellenic Statistical Authority Significant performance indicators

Gross Value Added by Industry 2015 (Region of Western Macedonia) Industry/ Sector Gross Value Added (amount in % in total GVA of the Region million euro) Agriculture, Forestry and Fishing 254 6.68%

Mining, energy, water supply and 1555 40.91% waste management Manufacturing 182 4.79% Construction 82 2.16% Trade, transportation and storage, 388 10.21% accommodation and food service activities Information and Communication 38 1.00%

Financial and Insurance activities 86 2.26% 4.Real Investment Estate activities Incentives338 8.89% Scientific, administrative and support 106 2.79% service activities Public administration, education, 672 17.68% health and social work activities Arts, recreation and other service 100 2.63% activities Total 3,801 100.00%

Source: Hellenic Statistical Authority data processed by Enterprise Greece 1. Profile of the Region of Western Macedonia

2. Western Macedonia’s competitive advantages

3. Investment Opportunities

4. Investment Incentives Natural and Cultural Treasures

The nature of the region is mountainous, as 82% of the total surface are mountainous and semi-mountainous areas. The region has two National Parks, sixteen NATURA areas of immense natural beauty and totally 1.707 km2, three ski centers, eight lakes (seven natural and one artificial), gorges, rivers, interesting geological formations, two world trekking paths, remarkable traditional settlements, a great number of archaeological sites and a plethora of Byzantine monuments of international interest. Aliakmonas river is the longest river in Greece, with a total length of 297 km. It flows through the Greek regions of West Macedonia (Kastoria, Grevena and Kozani regional units) and Central Macedonia (Imathia and Pieria regional units). The protected area of Northern Pindos is one of the most important areas at both national and European levels. It uniquely combines natural and man- made environments and geographically unifies the pre-existing National Forests of Pindos (Valia Kalda) and Vikos-Aoos. The mount range of Pindos is the largest in Greece and supplies water to the two thirds of the Greek population. A very important part of the mountain, which stands for its rare beauty and ecological value, is protected by two national parks: the national park of Vikos – Aoos in Epirus and the park of Valia Kalda in Western Macedonia The lake of Kastoria, one of the most beautiful in the Balkans covers an area of about 28 square kilometers and its maximum depth is 9.5 meters. In the region, there are nine streams flowing into the lake. Agricultural Production

•Greek saffron is considered one of the best varieties in the world, of excellent quality, aroma and color. In Kozani, flowers from the Crocus sativus plant are cultivated by the Saffron Producers Cooperative, which is based in the village of Krokos. Here, some of the best quality, organic and Protected Designation of Origin-certified saffron is grown and marketed as Krokos Kozanis. Annual production, depending on weather conditions, ranges from 6 to 12 tons of pure red saffron each year. •It is estimated that more than 1,300 different species of mushrooms grow in Grevena; it is therefore logically referred to as the country of mushrooms! Extremely rare European species of mushrooms have been found here. •Western Macedonia has a long history in viniculture and in production of high-quality wines. It produces the significant AOHQ wines (Appellation of Origin of High Quality) and also other local wines. •The main occupation of the Prespa residents today, is the cultivation of beans. Prespa beans are very tasty and considered among the best in the world. •The Florina peppers constitute for years the established local delicacy of the homonymous region and an integral part of the daily diet of the residents. •The world famous Kastoria legumes (beans, lentils, chickpeas) are cultivated in the area for 7500 years Education and research (Ι)

• Τhe University of Western Macedonia (UoWM) was established on 2002 by four departments that had previously formed part of the Aristotle University of Thessaloniki.

The University today consists of three Schools and six Departments, offering undergraduate and postgraduate study programs.

The University of Western Macedonia employs 91 members of teaching and research staff and 51 employees in its administration. There are about 4,000 students (undergraduate and postgraduate students).

• The Technological Educational Institute of Western Macedonia (TEIWM) is a state-run institute of highest education based in Kozani. The institution also operates satellite campuses in the nearby towns of Kastoria, Florina, Grevena and Ptolemaida. It was founded in 1976 as a vocational school, and was accredited as a Higher (1983) and later Highest (2001) Educational Institution.

Source: https://www.uowm.gr Education and research (ΙΙ)

Faculty of Education (based in Florina) Department of Primary Education Department of Early Childhood Faculty of Fine Arts Department of Fine and Applied Arts (Florina) Faculty of Engineering (based in Kozani) Department of Mechanical Engineering Department of Informatics and Telecommunications Engineering Department of Environmental Engineering

Technological Educational Institute of Western Macedonia School of Engineering School of Business and Finance School of Agriculture Technology, Food Technology and Nutrition School of Health and Welfare

Source: https://www. .teiwm.gr Transport Infrastructure

The Region is served by two airports in Kozani and Kastoria, the national highway, the “Egnatia Road” that extends from Panagia (Brown Bear Area) to Polymylos and the railway network.

Airports Kozani Airport “Filippos”

Kastoria Airport “Aristotelis” The Egnatia Motorway (I)

 The section of the Egnatia Motorway crossing Western Macedonia extends from Panagia (Brown Bears Area) to Polymylos and has a total length of approximately 110 km.  The motorway has a four-dimensional cross- section of 24.5m (or 22m in the mountainous difficult sections) with two lanes and an Emergency Lane per direction and separation of the two branches with a central islet.  The total cost for the completion of 110 km of the motorway from Panagia to Polygyros amounts to 933 million € (excluding VAT).  The funding of the projects is made from national and Community funds from the operational program Accession and Road Axes of the 2nd Community Support Framework’’ and "Road Axes, Ports, Urban Development" of the 3rd Community Support Framework.

Source: http://www.egnatia.eu The Egnatia Motorway (II)

 Major Technical Projects : The construction of the project in Western Macedonia has had particular difficulties as the road crossed the mountainous area of Pindos, crossing areas of flora and fauna of particular environmental sensitivity, most notably the brown bear habitat.

Privatization. Seven investment schemes, meet the criteria for participation in the second phase of the tenders for granting the right to use and exploit the Egnatia Motorway:

1. ANAS International Enterprise S.p.A. 2.FREYJA HOLDINGS SARL [Macquarie European Infrastructure Fund 5 L.P. / Macquarie European Infrastructure Fund 5 SCSp] 3. ROADIS Transportation Holding S.L.U. – AKTOR Α.Ε. 4.SICHUAN COMMUNICATIONS INVESTMENT GROUP CO., LTD – DAMCO ENERGY S.A. 5.VINCI HIGHWAYS S.A.S – VINCI CONCESSIONS S.A.S – MYTILINEOS HOLDINGS S.A. 6. GEK TERNA Α.Ε. – EGIS PROJECTS S.A. 7. DIOLIKOS KATASKEUASTIKH ΑΤΕ.

Source: http://www.egnatia.eu AIRPORTS OF WESTERN MACEDONIA (I)

Aristotle's State Airport Kastoria is located 10 km from the city of Kastoria in Argos Orestiko. Refurbishments and extensions made at the airport runway rank it among those with international standards that can accommodate large aircraft. Astra Airlines operates flights to Athens every week. However, the mountainous area creates difficulties in transport several times during the winter months.

FACILITIES: One passenger terminal. Aircraft parking spaces: Two B737 aircraft parking spaces. Space for parking light aircraft of 2000 m2 area. AIRPORTS OF WESTERN MACEDONIA(II)

 Kozani National Airport ‘’Filippos’’ is located in Petra, 4 km southeast of the city of Kozani, at an altitude of 634m. and operates since 1950. The area of its buildings is 400 sq. Meters. Kozanis' and Kastorias' airports are the only two public airports in the region of Western Macedonia, Greece.

Airport type: Public Operator: HCAA Location: Kozani Western Macedonia offers an interesting environment for investment... Western Macedonia advantages ..are enhanced by investment incentives Western Macedonia boasts a number of • Under the new Investment Incentives Law L.4399/2016, Western Macedonia enjoys attractive investment comparative advantages related to its: incentives varying from 25 to 45% of the total investment • Great existing transport infrastructure cost, according to the size of the company and the region • Academic-R&D infrastructure & dynamics of the country in which the project will be implemented. • Tourism and Cultural sites • The aid schemes of the Law include: 1) Tax exemptions • Opportunities in the renewable energy 2) Cash grants sources 3) Leasing subsidies • Skilled work force, especially in Tourism and 4) Wage costs subsidy Agriculture 5) Stable corporate tax rate for 12 years 6) Financing of business risk through loans or equity 7) Fast track licensing Operational Program Western Macedonia 2014-2020

Expected impacts Investment incentives quick facts • Support of more than 240 SMEs and promotion of New Investment law L.4399/2016: Subsidies of up to cooperation with research institutions • 50% additional population should benefit from e- 45% for business plans government services Total OP budget: 1,009,936,974.00 € • Creation of 200 new full time equivalent employment Total EU contribution: 264,590,187 € positions • 60 public buildings should receive support for energy efficiency and annual greenhouse gas emissions reduction of 5,550 CO² tons is expected Funding Priorities • Improved anti-flood measures and waste treatment infrastructure for additional 2,000 inhabitants and additional •Strengthening research, technological development and 95,000 from forest fire prevention measures innovation. • Cover more than 70,000 additional people by improved •Enhancing access to, and use and quality of, ICT healthcare services and some 12,800 disadvantaged citizens •Enhancing competitiveness of SMEs by “Health Safety Net” actions •Promoting climate change adaptation, risk prevention and • The construction of 6.7km of new road and 40km of road management. upgrade should be supported •Preserving and protecting the environment and promoting resource efficiency. •Promoting sustainable and quality employment and supporting labour mobility •Promoting social inclusion, combating poverty and any discrimination – ERDF. •Investing in education, training and vocational training for skills and lifelong learning. •Technical Assistance: provision of technical assistance.

Source: http://ec.europa.eu 1. Profile of the Region of Western Macedonia

2. Western Macedonia’s competitive advantages

3. Investment Opportunities Reasons to Invest in Western Macedonia

.Natural and cultural treasures: Unique natural beauty combined with long history, religious treasures and friendly people

.A production locomotive : The primary sector, especially agriculture, plays a key role in GDP. The arable plains (40% of them are irrigated) are cultivated intensively, producing cotton, corn, tobacco, grains and tomato etc Tourism .Tourist destination: Popular destination offering an upgraded and diversified tourist product that includes hiking in the mountains, sightseeing, local gastronomy, sea sports etc

.Industrial sites complex: The region disposes industrial zones, providing land and easy Export Oriented Manufacturing licensing procedure for industrial use

. Potential in Renewable energy: The region has a strong wind and solar potential. Τhe energy sector of Western Macedonia, is the "driving force" of Greece, since it produces Energy the largest proportion of electricity.

.Transport infrastructure: The region disposing over substantial infrastructure, capable to support wide investment activity in the area

.Urban infrastructure: The urban infrastructure is well developed, including a sufficient number of hospitals, both private and public, courts of various levels, banks, telecommunications, primary and secondary schools, etc

.Support of the local Authorities: The consistent and unwavering support of the local Authorities , as well as the hospitable and business Tourism Tourism in Western Macedonia: Facts and figures (II)

Tourism data for the Region of Western Macedonia Region and 5***** 4**** 3*** TOTAL Prefecture

Hotels Rooms Beds Hotels Rooms Beds Hotels Rooms Beds Hotels Rooms Beds

Total Greece

788,55 444 67,407 137,210 1,412 104,562 203,203 2,472 96,033 185,560 9,730 407,146 3 Western Macedonia Region

3 61 137 18 416 879 65 1,736 3,659 126 2914 6090 Kozani 1 14 32 1 28 56 19 521 1042 109 3,712 7,111 Grevena

0 0 0 2 55 104 12 344 780 73 1,833 3,490 Kastoria

2 47 105 13 305 659 16 497 1065 87 4,141 8,220 Florina

0 0 0 2 28 60 18 374 772 87 4,141 8,220 Tourism in Western Macedonia

Tourism data for the Region of Western Macedonia HOTELS EXCEPT CAMPINGS

REGION AND 2015 2016 PREFECTURE TOURIST ARRIVALS TOURIST ARRIVALS

GREEK FOREIGN TOTAL GREEK FOREIGN TOTAL

TOTAL GREECE

5,744,134 12,734,567 18,478,701 5,996,434 12,999,947 18,996,381

Western Macedonia Region

106,624 16,311 122,935 104,256 14,510 118,766 Kozani 38,096 3,101 41,197 37,747 2,472 40,219 Grevena 3,531 177 3,708 2,363 99 2,462 Kastoria 51,577 10,555 62,132 50,374 10,579 60,949 Florina 13,420 2,478 15,898 13,772 1,360 15,076 Major tourism attractions

Mastorochoria (NW of Portitsa Bridge – Grevena Lake Orestiada(Kastoria) Dragon Cave (Kastoria) Grevena town)

•Vasilitsa ski center (Grevena) Ancient Eani (Kozani) Dispilio (Kastoria) Small Prespa Lake (Florina) •Vigla Pisoderiou ski center(Florina) Wine Tourism

In the heart of Northern Greece, lies the region of Western Macedonia where it is possible to experience the picturesque Wine Route of the Lakes.

The Wine Routes are a special form of agrotourism aimed at maintaining and promoting this heritage.

There are selected routes for travelers to follow, which pass through the most picturesque viticultural areas and wineries.

Visitors are welcome to taste local wines accompanied by traditional appetizers and tidbits, and to explore the traditional villages, archaeological sites, museums, etc.

This recently developed form of tourism shows consideration for the natural environment and offers visitors the opportunity to learn about each destination through the local wine-making and viticultural traditions.

 The wineries at the Wine Route of the Lakes are: the Vogiatzi Estate and Zande Winery in Velvento Kozani. Investment opportunities in various tourism segments

Therapeutic tourism Eco Tourism Cultural and religious tourism

Development of existing state Wine Tourism Agrotourism & private assets Tourism: Indicative Investment Projects

Enterprise Greece maintains a portfolio of investment projects in all business sectors and Regions of Greece.

As far as Western Macedonia is concerned the portfolio of Enterprise Greece includes:

Land plots that could be used for tourism development Mixed use tourism projects under development Tourism facilities for sale or looking for co investors Western Macedonia Industrial Areas

Florina* Type of Area: VI.PE Established: 1983 Size (000sq.m): 1105 Infrastructure: Road, drainage, water, electricity, water treatment. Natural Gas: No Train: Close to the plot Port: No

Kastoria* Type of Area: VI.PA Established: 2009 Size (000sq.m): 302 Infrastructure: Road, drainage, water, electricity, administration buildings Natural Gas: No Train: No Port: No

Kozani (2 Industrial Areas) Type of Area: VI.PE – VIO.PA Established: 2003 - 2007 Size (000sq.m): 709 - 55 Infrastructure: Road, drainage, water, electricity.--- Road, drainage, water, electricity, administration buildings Natural Gas: No – No Train: No – No Port: No -- No Industrial Area of Florina

Distance from Harbor of Thessaloniki: 200 km Borders (FYROM): 13 km Railway Station of Florina: 10 km Highway (E90): 65 km Airport of Kozani: 76 km

Park Size 110 Ha Available* 37.5 Ha Infrastructure Internal road network Drainage system Power grid Sewage system Water system Central waste treatment unit *Lots can be segmented upon request Manufacturing Park of Kastoria

Distance from Railway Station of Kozani: 55 km Borders (Albania): 35 km Airport of Kastoria: 8.5 km Borders (FYROM): 95 km E-90 Highway : 50 km

Park Size 26 Ha Available* 17.6 Ha Infrastructure Internal road network Water system Power grid Sewage system Drainage system *Lots can be segmented upon request Renewable Energy Sources Renewable Energy Sources – Unexploited Capacity Region of Western Macedonia has unexploited capacity in Wind and Solar energy As shown in the attached Maps the potential is tremendous. Solar energy capacity Wind energy capacity Investment opportunities in Greece: RES National Targets and Performance

RES technology Target 2020 Capacity 2016

Wind 7500 2047,17 Solar (PV’s) 4200 2093,52 Small Hydro 350 223,18 Even during the economic Biomass 350 57,68 crisis in Greece, the RES sector was one of the growing economic sectors Geothermal 120 0 where investments were made and employment was created Highly exploited area with growing capacity FEBRUARY 2018

The Greek RES market has grown Region of Western Macedonia with a very strong pace. Total Wind Parks: 61,30 MW installed capacity stood at 1,06 GW in 2008 and 4,6 GW in2015, Small Hydro: 20,06 MW 334% increase within the last 7 PV’s: 98,232 MW years! Biomass: 0,98MW PPC - Western Macedonia

 The country's largest lignite potential is concentrated in three areas - basins along the Florina - Amynteo - Ptolemaida - Kozani - Servia axis.

 Gradually, one of the largest Lignite Centers in the world was created in the Ptolemaida - Amynteo area.

 Four lignite mines are currently operating in the Ptolemaida - Amynteo Lignite Center: the South Field Mines, the Mine of ‘’Kardia’’, the Mine of ‘’Kiriou pediou’’ and the Amyndeon Mine (including the mine in Florina).

 The Lignite Center also includes the Lignite Factory and LIPTOL Steam Power Station.

 There are six lignite-fired power plants from the Ptolemaida- Amynteo Lignite Center.

 Total installed power is 4.438 MW.

 The privatization of PPC in Western Macedonia is under discussion.

Source: https://www.dei.gr/el/oruxeia/ptolemaida-amuntaio TAP in Western Macedonia

The TAP΄s progress

 The construction of the Trans Adriatic Pipeline (TAP) AG in Greece continues to progress on time, on track and on budget. Thanks to the efforts of the 3,100+ people working for the project, work is now underway in all three Northern Greek Prefectures to be traversed by the pipeline: Eastern Macedonia- Thrace, Central Macedonia and –most recently– Western Macedonia, where construction commenced in Pirgoi at the Eordaia Municipality, in late June. With regard to the €32 million socio-environmental investment (SEI) programme that TAP has voluntarily committed to implementing, 47 such investments initiatives have already been committed in all three Northern Greek Prefectures, their total value amounting to €1.3 million  This means that the first step has been made in the area for the implementation of a project of great geo-strategic importance, bringing multiple benefits to local communities. For this reason, the Prefecture is closely collaborating with TAP on all levels in order to ensure safe works and their timely completion.

Source:www.tap-ag.com Food & Agriculture

The home of the Mediterranean diet is becoming a favourite with foodies from around the world, who enjoy the highest quality ingredients on offer Food & Beverage: An overview (I)

Key Area Products…and some unique characteristics

Krokos: The Greek “crocus” (saffron) is known from the Old Testament and Homer for its therapeutic and aphrodisiac attributes, saffron is used nowadays in medicine, cosmetics, food, beverage industry. Greece is one of the four places in the world, where saffron is cultivated. Saffron arrived three centuries ago in Kozani’s Region.

Feta cheese (PDO), kasseri (hard cheese), kefalotyri and kefalograviera are of the most important traditional dietary products of the prefecture. They are made of high quality milk from sheep and goats living in the alpine pasturelands of the prefecture of Kastoria & Kastoria.

Mushroom products: In Pindos paths has grown over thousand species of mushrooms and their collection is the favorite occupation of the residents.

Red Florina Peppers: After the long trip from South America (Brazil) in Europe by Christopher Columbus in the 16th century, arrived in the West Macedonia region one hundred years later. The Florina peppers constitute for years the established local delicacy of the homonymous region and an integral part of the daily diet of the residents.

Prespa Beans: The main occupation of the Prespa residents today, is the cultivation of beans. Prespa beans are very tasty and considered among the best in the world.

Spoon sweets (Grevena & Florina)

Royal Jelly: The commercial exploitation of all hive products, other than honey, such as royal jelly, propolis, pollen and beekeepers, orientates new beekeepers the Beekeepers' Center of Western Macedonia that started its operation in Kozani. Food & Beverage: An overview (II)

Key Area Products…and some unique characteristics PDO (VLQPRD) & PGI wines: .PDO Amyndeo vineyards .PGI Florina wines .PGI Kastoria wines .PGI Velvendo .PGI Siatista .PGI Kozani wines

By regional Unit: Florina, Kastoria, Kozani

By variety: Xinomavro, Sauvignon Blanc, Malagouzia, Pinot Noir, Sparkling Wine – Xinomavro, Limniona, Merlot, Moshomavro, Malagouzia, Cabernet, Chardonnay, Assyrtiko, Athiri, Prekniariko, Roditis, Syrah, Gewürztraminer Investment opportunities: Food & Beverage

Recent Developments/New Opportunities

• Rural Development Programme (RDP) 2014-2020 focuses mainly on strengthening farm viability and competitiveness, preserving and enhancing ecosystems and fostering the local development in rural areas • Investments in wine, cheese, spoon sweets • Demand for ecologically produced agricultural products rising world –wide Leading Companies in Western Macedonia

Source: ICAP Enterprise Greece

Enterprise Greece is the new, official agency of the Greek State, under the supervision of the Ministry for Economy and Development. Its mandate is to showcase Greece as an outstanding destination for investment and to promote the highly competitive products and services produced in Greece for export. Investment Trade

•Attracts, welcomes, promotes, supports and •Promotes the export of Greek products and retains investment in Greece services internationally through marketing, events, •Promotes Greece internationally as an attractive and trade centres investment destination •Supports Greek producers and service providers •Accepts applications, evaluates and supports with guidance, assistance, information and Greece’s Strategic Investment (Fast Track) projects resources to better reach international markets •Provides investors with the Investor Ombudsman •Connects Greek exporters and entrepreneurs with service potential partners around the world •Informs investors of Greece’s institutional, tax, •Organizes the presence of Greek companies at legal, and financial framework conferences, fora, exhibitions and trade shows in •Supports investors in accessing finance global markets • Partners with related organisations, domestic and •Hosts foreign delegations and visitors to Greece international, to promote Greece as an investment •Partners with related organisations, domestic and destination international, to promote Greece’s export market 109 Vasilissis Sophias Ave. Your partner for growth 115 21 Athens, Greece T. 0030 210 33 55 700 F. 0030 210 32 42 079 E. [email protected]