Investment Guide for the South-East Planning Region

This document is prepared as part of the Project “Expanding the functions of the Centres for development of the planning regions towards the implementation of activities/services for support of the private sector” financed by the Ministry of Local Self- Government.

Provisioned by: Centre for development of the South – East planning region Str.”Boro Djoni” No. 10 2400 Strumica Republic of Macedonia

The e-investment guide was prepared by Knowledge Center, Skopje.

Team: PhD, Andrijana Bogdanovska G. MBA, Branko Djurovic MA, Meglena Dimitrova

Lector: Dejan Vasilevski

It is our pleasure to present you the Investment Guide for the South-East Region of Republic of Macedonia. Its main aim is to outline the opportunities for investment in the South-East Region, the national and regional policies, the measures for support of investments, and the characteristics of the existing industrial zones and investment locations available in the region.

Geographically, the South-East Region includes the territory of the south-east part of Macedonia, or more precisely, the region of Strumica-Radovish and Gevgelija-Valandovo Valley, following the flow of the river Strumica and Vardar. The region borders Greece to the South and Bulgaria to the East, whereas on the North and West, it borders with the East and Vardar Planning Region.

According to population projections for 2014, the region has 173.457 citizens, or 8,48% of the total national population. The Region covers a total area of 2.835 км2, or a 10, 9 % from the total area of the country. The population density is 61, 2 inhabitants per km2. In terms of administrative division, the South-East planning region consists of ten municipalities: Bogdanci, Bosilovo, Valandovo, Vasilevo, Gevgelija, Dojran, Konche, Novo Selo, Radovish, and the Municipality of Strumica.

Developed with a purpose of providing all required information about the country, the region, and its municipalities, and enabling investors to make informative decisions, the Investment Guide consists of four sections. The first section provides an overview of Republic of Macedonia (geography, political system, and economy), outlying the advantages of the country

4 as a favourable location for your investment. The second part provides an overview of the business environment, containing detailed information on the legal and institutional frameworks for doing businesses in Republic of Macedonia. This section starts with the legal forms for establishing a business, followed by a description of the legal framework for doing business, taxation, management of the workforce, licences for state construction land, and real- estate, along with the opportunities for receiving a financial assistance for the investors.

The third section contains general information about the South-East Region profiling its advantages and outlying the opportunities it offers as a favourable location for your investments. The fourth part presents each of the ten municipalities and their investment potentials, containing general data each Municipality, including a short information of the Municipality, its traffic connections, human capital, local economy, and a special emphasis on the industrial zones and investment locations.

The Investment Guide is prepared as a part of the project “Expanding the functions of the Centres for development of the planning regions towards the implementation of activities/services for support of the private sector” financed by the Ministry of Local Self- Government. The project is implemented by the Centre for development of the South-East planning region of Republic of Macedonia.

I firmly believe that this Guide will provide you with useful information and will help you make informative decisions for investing in some of the industrial zones and/or locations in the South-Eastern region of the Republic of Macedonia.

Respectfully yours, Zulieta Gjurkova Director Centre for development of the South-East planning region

TABLE OF CONTENT ...... 6 LIST OF TABLES ...... 6 TABLE OF FIGURES ...... 7 DATA ABOUT CONTACTS OF MUNICIPALITIES IN SOUTH-EAST PLANNING REGION ...... 10 INVEST IN MACEDONIA ...... 12 1 PROFILE OF REPUBLIC OF MACEDONIA ...... 16 1.1 INTRODUCTION ...... 16 1.2 POLITICAL SYSTEM AND GOVERNMENT...... 18 1.3 ECONOMY ...... 19 2 DOING BUSINESS IN REPUBLIC OF MACEDONIA ...... 26 2.1 STARTING A BUSINESS ...... 26 2.2 LEGAL FRAMEWORK FOR DOING BUSINESS ...... 30 2.3 TAXES ...... 31 2.4 TRADE AND TAXES / EXPENSES ...... 35 2.5 WORKFORCE...... 36 2.6 FINANCIAL SUPPORT FOR BUSINESSES ...... 38 3 SOUTH-EAST REGION ...... 42 3.1 ADVANTAGES OF INVESTING IN THE SOUTH-EAST REGION ...... 42 3.2 GENERAL INFORMATION ABOUT THE SOUTH-EAST REGION ...... 42 3.3 GEOGRAPHICAL CHARACTERISTICS OF THE REGION ...... 45 3.4 ROAD NETWORK ...... 47 3.6 POPULATION...... 49 3.7 ECONOMY ...... 54 3.8 UTILISATION OF COMPUTERS AND INTERNET ...... 56 3.9 AGRICULTURE AND LIVESTOCK ...... 57 3.10 QUALITY OF LIFE ...... 58 3.11 TOURISM ...... 59 4 MUNICIPALITIES IN THE SOUTH EAST REGION...... 64 4.1 MUNICIPALITY BOGDANCI ...... 66 4.2 MUNICIPALITY BOSILOVO...... 78 4.3 MUNICIPALITY VALANDOVO ...... 88 4.4 MUNICIPALITY VASILEVO ...... 98 4.5 MUNICIPALITY GEVGELIJA ...... 108 4.6 MUNICIPALITY DOJRAN ...... 122 4.7 MUNICIPALITY KONCE ...... 132 4.8 MUNICIPALITY NOVO SELO ...... 140 4.9 MUNICIPALITY RADOVIS ...... 152 4.10 MUNICIPALITY STRUMICA ...... 162

Table 1-1 Macro-economic figures...... 19 Table 1.1. Macro-economic figures ...... 19 Table 3-1 General information for the municipalities in the South – Eastern Region ...... 43 Table 3-2 Basic information for the South-Eastern Region ...... 44 Table 3-3 A – Roads (highways, express roads, arterial roads) ...... 47 Table 3-4 Р1 – Regional roads ...... 48 Table 3-5 Р2 – Regional roads ...... 48 Table 3-6 Р29 – Regional roads ...... 48 Table 3-7 Local road network 2010-2014 (km) ...... 48 Table 3-8 General information according to the level of education ...... 50 Table 3-9 General information according to the level of education ...... 50 Table 3-10 Activity rate of the population at the age of 15, and above ...... 51 Table 3-11 Unemployment rate (%) ...... 51

Table 3-12 Number of unemployed people (active employment seekers) in the South-Eastern planned region according to the level of education...... 52 Table 3-13 Average net salary per employee, 2014 (in Denars) ...... 53 Table 3-14 Gross-domestic product (in MKD) ...... 54 Table 3-15 Gross- investment in basic assets, by regions, 2013 ...... 54 Table 3-16 Number of households that used computer and internet ...... 56 Table 3-17 Persons at the age of 15-74 who used computer and internet ...... 57 Table 3-18 Area by categories for use (hectares) ...... 57 Table 3-19 Tourism ...... 59 Table 4-1 Transport network ...... 67 Table 4-2 Features of the free construction sites- Bogdanci ...... 71 Table 4-3 Features of the free construction sites- Bogdanci ...... 72 Table 4-4 Features of the free construction sites for investment in hotel complexes: Bogdanci ...... 73 Table 4-5 TRANSPORT NETWORK ...... 79 Table 4-6 Features of the free construction sites– Robovo ...... 83 Table 4-7 Transport network ...... 89 Table 4-8 Transport network ...... 99 Table 4-9 Features of the free construction sites– GRADASORCI ...... 104 Table 4-10 Transport network ...... 109 Table 4-11 Features of the free construction sites– Rakita ...... 113 Table 4-12 Features of the free construction sites– Delenica ...... 115 Table 4-13 Features of the free construction sites– Blokotehna ...... 116 Table 4-14 Features of the free construction sites– Purchase and Distribution Center ...... 117 Table 4-15 Free locations for construction of hotel complexes – Gevgelija ...... 119 Table 4-16 Transport network ...... 123 Table 4-17 Features of the free construction sites– Dushanovac ...... 127 Table 4-18 Characteristics of the free locations in these tourist development zones – Dojran ...... 128 Table 4-19 Transport network ...... 133 Table 4-20 Features of the free construction sites– Konce ...... 137 Table 4-21 Transport network ...... 141 Table 4-22 Features of the free construction sites– Borisovo ...... 145 Table 4-23 Features of the free construction sites– MOKRINO-MOKRIEVO ...... 147 Table 4-24 Features of the free construction sites ...... 149 Table 4-25 Transport network ...... 153 Table 4-26 Features of free construction locations ...... 159 Table 4-27 Transport network ...... 163 Table 4-28 Features of the free construction sites ...... 172 Table 4-29 Features of the free construction sites ...... 172 Table 4-30 Features of the free construction sites ...... 177

Figure 1.3-1 Location of Republic of Macedonia in Europe ...... 21 Figure 3.4-1 Road network of Republic of Macedonia by regions ...... 47 Figure 3.5-1 Age structure of Republic of Macedonia by regions ...... 49 Figure 3.5-2 Population pyramid of the South-East region ...... 49 Figure 3.5-3 Activity rate of population in the Republic of Macedonia by regions ...... 51 Figure 3.5-4 Active job seekers by age and gender ...... 52 Figure 3.5-5 Passive jobseekers by age and gender ...... 52 Figure 3.6-1 Active business entities (2014) ...... 55 Figure 3.6-2 Active business entities 2014 ...... 55 Figure 3.6-3 Active business entities by number and sector for South-East region (2014) ...... 56 Figure 3.6-4 External trade 2014 ...... 56 Figure 3.7-1 Internet and computer ...... 57 Figure 3.8-1 Structure of agricultural area ...... 58 Figure 3.8-2 Structure of livestock ...... 58 Figure 4.1-1 Population pyramid – Bogdanci (2014) ...... 68 Figure 4.1-2 Unemployed people - Bogdanci ...... 68

Figure 4.1-3 Active job seekers ...... 69 Figure 4.1-4 Passive jobseekers ...... 69 Figure 4.1-5 Active business entities -Bogdanci ...... 70 Figure 4.1-6 Number of business entities in the dominant industries– Bogdanci ...... 70 Figure 4.1-7 Industrial zones and locations for investment – Municipality of Bogdanci...... 71 Figure 4.1-8 Urban plan outside the township for construction of the purchase distributive centers for fresh fruits and vegetables, production and distribution ...... 72 Figure 4.1-9 Location of the industrial zone Barta – Municipality Bogdanci ...... 73 Figure 4.1-10 Urban plan outside the township for construction of the religious building and hotel complex 74 Figure 4.2-1 Population pyramid – Bosilovo (2014) ...... 80 Figure 4.2-2 Unemployed people - Bosilovo (2015) ...... 80 Figure 4.2-3 Active job seekers ...... 81 Figure 4.2-4 Passive jobseekers ...... 81 Figure 4.2-5 Active business entities -Bosilovo ...... 82 Figure 4.2-6 Number of business entities in the dominant industries– Bosilovo ...... 82 Figure 4.2-7 Industrial zones and locations for investment – Municipality Bosilovo...... 83 Figure 4.2-8 An extract from the urban plan of the village Robovo, Bosilovo ...... 84 Figure 4.2-9 Images of the industrial zone„Robovo“ ...... 84 Figure 4.2-10 Images of the industrial zone HAZALI ...... 85 Figure 4.3-1 Population pyramid – Valandovo ...... 90 Figure 4.3-2 Unemployed people - Valandovo ...... 90 Figure 4.3-3 Active job seekers ...... 91 Figure 4.3-4 Passive jobseekers ...... 91 Figure 4.3-5 Active business entities -Valandovo ...... 92 Figure 4.3-6 Number of business entities in the dominant industries– Valandovo ...... 92 Figure 4.3-7 Industrial zones and locations for investment – Municipality Valandovo...... 93 Figure 4.3-8 Location of the industrial zone RABROVO ...... 94 Figure 4.3-9 Images of the industrial zone RABROVO ...... 94 Figure 4.4-1 Population pyramid – Vasilevo ...... 100 Figure 4.4-2 Unemployed people - Vasilevo ...... 100 Figure 4.4-3 Active job seekers ...... 101 Figure 4.4-4 Passive jobseekers ...... 101 Figure 4.4-5 Active business entities -Vasilevo ...... 102 Figure 4.4-6 Number of business entities in the dominant industries– Vasilevo ...... 102 Figure 4.4-7 Industrial zones and locations for investment – Municipality Vasilevo ...... 103 Figure 4.4-8 Location of the industrial zone„GRADASORCI“ ...... 104 Figure 4.4-9 Images of the industrial zone„GRADASORCI“ ...... 104 Figure 4.4-10 Images of the industrial zone Vladevci ...... 105 Figure 4.5-1 Population pyramid – Gevgelija ...... 110 Figure 4.5-2 Unemployed people - Gevgelija ...... 110 Figure 4.5-3 Active job seekers ...... 111 Figure 4.5-4 Passive jobseekers ...... 111 Figure 4.5-5 Active business entities -Gevgelija ...... 112 Figure 4.5-6 Number of business entities in the dominant industries- Gevgelija ...... 112 Figure 4.5-7 Industrial zones and locations for investment – Municipality Gevgelija ...... 113 Figure 4.5-8 Detailed urban plan of the industrial zone Rakita ...... 114 Figure 4.5-9 Images of the industrial zone Rakita ...... 114 Figure 4.5-10 Satellite map of the industrial zone Delenica ...... 115 Figure 4.5-11 Images of the industrial zone Delenica ...... 115 Figure 4.5-12 Satellite map of the industrial zone BLOKOTEHNA ...... 116 Figure 4.5-13 Images of the industrial zone Blokotehna ...... 116 Figure 4.5-14 Urbanistic plan of the commercial complex Purchase and Distribution Center ...... 117 Figure 4.5-15 Images of the commercial complex Purchase and Distribution Center ...... 117 Figure 4.5-16 Urban plan of the Technological Industrial Development Zone Gevgelija ...... 118 Figure 4.5-17 Images of the Technological Industrial Development Zone Gevgelija ...... 119 Figure 4.5-18 Images from the locations for construction of hotel complexes – Gevgelija ...... 119 Figure 4.6-1 Population pyramid – Dojran ...... 124 Figure 4.6-2 Unemployed people - Dojran ...... 124 Figure 4.6-3 Active job seekers ...... 125

Figure 4.6-4 Passive jobseekers ...... 125 Figure 4.6-5 Active business entities -Dojran ...... 126 Figure 4.6-6 Number of business entities in the dominant industries– Dojran ...... 126 Figure 4.6-7 Industrial zones and locations for investment – Municipality Dojran ...... 127 Figure 4.6-8 Urban plan of the industrial zone Dushanovac...... 128 Figure 4.6-9 Images of the industrial zone Dushanovac ...... 128 Figure 4.6-10 Urban plan – touristic zone Sungurli Dere ...... 129 Figure 4.6-11 Urban plan – touristic zone Karac ...... 129 Figure 4.7-1 Population pyramid ...... 134 Figure 4.7-2 Unemployed people - Konce ...... 134 Figure 4.7-3 Active job seekers ...... 135 Figure 4.7-4 Passive jobseekers ...... 135 Figure 4.7-5 Active business entities -Konce ...... 136 Figure 4.7-6 Number of business entities in the dominant industries– Konce ...... 136 Figure 4.7-7 Location of the tourist settlement Mantovo ...... 137 Figure 4.7-8 Images of the tourist settlement Mantovo ...... 137 Figure 4.8-1 Population pyramid – Novo Selo ...... 142 Figure 4.8-2 Unemployed people - Novo Selo ...... 142 Figure 4.8-3 Active job seekers ...... 143 Figure 4.8-4 Passive jobseekers ...... 143 Figure 4.8-5 Active business entities -Novo Selo ...... 144 Figure 4.8-6 Number of business entities in the dominant industries– Novo Selo ...... 144 Figure 4.8-7 Industrial zones and locations for investment – Municipality Novo Selo ...... 145 Figure 4.8-8 Images of the industrial zone„BORISOVO“...... 146 Figure 4.8-9 Urban plan of the industrial zone BORISOVO ...... 146 Figure 4.8-10 Images of the industrial zone MOKRINO-MOKRIEVO ...... 147 Figure 4.8-11 Urban plan of the industrial zone Brod-Zubovo ...... 148 Figure 4.8-12 Images of the industrial zone Brod-Zubovo ...... 148 Figure 4.8-13 Urban plan of the industrial zone ONAA STRANA ...... 149 Figure 4.9-1 Population pyramid – Radovis ...... 154 Figure 4.9-2 Unemployed people - Radovis ...... 154 Figure 4.9-3 Active job seekers ...... 155 Figure 4.9-4 Passive jobseekers ...... 155 Figure 4.9-5 Active business entities -Radovis ...... 156 Figure 4.9-6 Number of business entities in the dominant industries– Radovis ...... 156 Figure 4.9-7 Industrial zones and locations for investment – Municipality Radovis ...... 157 Figure 4.9-8 Images of the industrial zone „Radovis“ ...... 158 Figure 4.9-9 Images of the industrial zone Podares ...... 158 Figure 4.10-1 Population pyramid – Strumica ...... 164 Figure 4.10-2 Unemployed people - Strumica ...... 165 Figure 4.10-3 Active job seekers ...... 165 Figure 4.10-4 Passive jobseekers ...... 165 Figure 4.10-5 Active business entities -Strumica ...... 166 Figure 4.10-6 Number of business entities in the dominant industries– Strumica ...... 166 Figure 4.10-7 Industrial zones and locations for investment – Municipality Strumica...... 167 Figure 4.10-8 Images of the industrial zone „URBAN BLOK 42“...... 168 Figure 4.10-9 Detailed urban plan of the industrial zone „URBAN BLOK 42“ ...... 169 Figure 4.10-10 Detailed urban plan of the industrial zone Sever ...... 170 Figure 4.10-11 Images of the industrial zone Sever ...... 171 Figure 4.10-12 Detailed urban plan of the industrial zone AGROBERZA ...... 171 Figure 4.10-13 Images of the industrial zone AGROBERZA ...... 172 Figure 4.10-14 Detailed urban plan of the industrial zone URBAN BLOK 19 ...... 173 Figure 4.10-15 Images of the industrial zone URBAN BLOK 19 ...... 173 Figure 4.10-16 Detailed urban plan of the industrial zone URBAN BLOK 17 and 17/1 ...... 174 Figure 4.10-17 Images of the industrial zone URBAN BLOK 17 and 17/1 ...... 174 Figure 4.10-18 Detailed urban plan of the industrial zone URBAN BLOK 15 ...... 175 Figure 4.10-19 Images of the industrial zone URBAN BLOK 15 ...... 175 Figure 4.10-20 Detailed urban plan of the industrial zone Sacevo ...... 176 Figure 4.10-21 Images of the industrial zone Sacevo ...... 176 Figure 4.10-22 Detailed urban plan of the industrial zone URBAN BLOK 18 ...... 177

MUNICIPALITY BOGDANCI MAYOR: ANASTASIJA OLUMCHEVA Т/F: 034/222-333; 034/221-077 Е-mail: [email protected] WEB: www.bogdanci.gov.mk

MUNICIPALITY BOSILEVO MAYOR: LJUPCHO KOLEV Т/F: 034/371-600; 034/371-600 Е-mail: [email protected] WEB: www.bosilovo.gov.mk

MUNICIPALITY VALANDOVO MAYOR: NIKOLCHE CHURLINOVSKI T/F: 034/382-007; 034/382-044 Е-mail: [email protected] WEB: www.valandovo.gov.mk

MUNICIPALITY VASILEVO MAYOR: VANCHO STOJANOV Т/F: 034/354-444; 034/353-007 Е-mail: [email protected] WEB: www.opstinavasilevo.gov.mk

MUNICIPALITY GEVGELIJA MAYOR: IVAN FRANGOV Т/F: 034/213-843; 034/611-373 Е-mail: [email protected] WEB: www.gevgelija.gov.mk

MUNICIPALITY DOJRAN MAYOR: BORCHE STAMOV Т/F: 034/225-278; 034/225-278 Е-mail: [email protected] WEB: www.dojran-info.com

MUNICIPALITY KONCHE MAYOR: BLAGOJ JOVANOV Т/f: 034/630-325; 034/630-327 Е-mail: [email protected] WEB: www.konce.gov.mk

MUNICIPALITY NOVO SELO MAYOR: BLAZO VELKOV Т/F: 034/355-202; 034/355-702 Е-mail: [email protected] WEB: www.novoselo.gov.mk

MUNICIPALITY RADOVISH MAYOR: SASHKO NIKOLOV Т/F: 032/635-007; 032/630-290 Е-mail: [email protected] WEB: www.radovis.gov.mk

MUNICIPALITY STRUMICA MAYOR: ZORAN ZAEV Т/F: 034/348-030; 034/320-544 Е-mail: [email protected] WEB: www.strumica.gov.mk

Republic of Macedonia offers many advantages for the potential investors:

Macedonia has liberated the foreign policy politics to a high extend and has signed couple of bilateral agreements that allows the local producers free access to the EU and other markets that makes Republic of Macedonia high competitive and export platform. Through three multilateral (Act for stability and association EFTA and CEFTA) and two bilateral agreements for free trade (with Turkey and Ukraine) there is duty free access to market with more than 650 million users.

The investors in Macedonia have benefit from the favorable tax politics, with one of the lowest tax rates in Europe (flat corporate and personal income tax of 10%, as well as tax of 0% for retained profit). Besides this, Macedonia has couple of investment and development zones with tax exclusion of the corporate profits for a period of ten years, for new employments, value added tax and other facilities.

Republic of Macedonia is one of the most competitive locations in Europe regarding the operational costs.

The potential investors can benefit from the good strategic location of the Republic of Macedonia, which is on a crossroad of two major European corridors (Corridor X and Corridor VIII). Taking this into consideration, the goods can be transferred in only one day to the countries of Central and East Europe, as well as Turkey, or maximum of two days for Western European countries.

One desk system for company registration in 4 hours.

National infrastructure for wireless internet, digital telecommunications system, highways network and two international airports with regular connections with the European capitals.

Universities are prepared to collaborate with the investors for providing the necessities for the required skills.

The majority of the citizens of the Republic of Macedonia speak English language, whereas French and German languages are incorporated in the education system. The languages of the region are used in everyday business environment.

Macedonia has young (42% under 30 years), educated and highly qualified labor force with strong work ethics and experience in the industry.

Macedonia offers stable monetary environment with one of the lowest inflation rates in the region and stable currency (denar).

The Republic of Macedonia is a country- candidate for EU and NATO membership.

1 PROFILE OF REPUBLIC OF MACEDONIA

1.1.1. GEOGRAPY AND CLIMATE

The Republic of Macedonia is situated in South Eastern Europe, in the central part of the Balkan Peninsula, and has a geographical area of 25.713 km2. It is defined by high mountain ranges at its extremities, between which are stretched wide and flat valleys. The river Vardar is flowing through the center of the country. Most of country’s territory lies at a latitude of between 40° and 42°. The country borders Serbia and Kosovo to the North, Bulgaria to the East, Greece to the South and Albania to the West. As a central Balkan country bordering five neighbours, the Republic of Macedonia has a range of potential trading partners, and is party to a great amount of through-travel. Moreover, the Republic of Macedonia is the main transit route for the delivery of goods from Greece, through the Balkans to Eastern, Western and Central Europe, and through Bulgaria towards the East. The Republic of Macedonia operates at Central European Time (GMT + 1). The Republic of Macedonia has a transitional climate from Mediterranean to continental. Along the river valleys of the Vardar and Strumica Rivers, the climate is temperate Mediterranean; in the interior, the climate is mainly continental with hot and dry summers, and cold and wet winters. Republic of Macedonia is a country rich in with natural treasures and beauty. The number of sunny days exceeds 240, making the solar energy a potentially useful method of power generation. The mountains make up 75% of the territory and are rich with endemic forest diversities (e.g. Macedonian pine); there is a strong water potential; high quality grass lands, and breath taking caves. Macedonia also has three large tectonic lakes and over 35 smaller mountain glacier lakes. The river network spreads throughout the whole territory, irrigating the fertile alluvial soil where highly regarded fruits and vegetables are grown. There are also hot and salty springs and waterfalls, and mineral deposits such as the Alshar mine, where the unique Lorandite can be found. 1.1.2. POPULATION

According to official data from the census conducted in 2002, the Republic of Macedonia has 2.022.547 citizens (2.063.723 according to an estimate in 2014). The population density is 80 citizens per km2.The majority of the population are Macedonians (64.18%), with the second largest group being Albanians (25.17%), then Turks (3.85%), Roma (2.66%), Serbs (1.78%), Bosniaks (0.84%) Vlachs (0.48%) and other ethnic groups (1.04%). The official language is Macedonian. In the municipalities where there are ethnic groups which comprise more than 20% of the entire population, besides Macedonian language, the official language of the ethnic group is also used. The main political, administrative, and economic center of the Republic, is Skopje, a home of 668.518 citizens. Other larger cities include: Bitola (80.550); Kumanovo (76.272); Prilep (69.704); Tetovo (52.915); Veles (43.716); Ohrid (42.033); Shtip (40.016) Gostivar (35.847); Strumica (35.311); etc. Macedonia has 84 municipalities; the number of populated areas is 1776, out of which 34 are cities. 1.1.3. HISTORY

Macedonia has a turbulent history. Its name, history, and territory very often a subject of claims from the neighbouring countries. The history of the country is often related to antique Macedonia and with the reign of Alexander the Great (356-323 B.C). His empire covered a territory from Europe to Egypt and India. In the second century B.C.,

PROFILE OF REPUBLIC OF MACEDONIA

Macedonia became a province of the Roman Empire and after its split in the year 395, fell under the East Roman Kingdom - Byzantine Empire. In the 7th century Macedonia was inhabited by the Slovenes, which quickly fell under the regime of the Byzantine and Bulgarian Empires. The first Macedonian kingdom is established in the 10th century by King Samoil; however, soon after his defeat in the battle of Belasica by the Byzantine Emperor Vasilije, Macedonia again came under the reign of the Byzantine Empire. In the 14th century, all Byzantine territories, including the territory of Macedonia, were annexed to the Ottoman Empire till the beginning of the 20th century. After the fall of the Ottoman Empire and the Balkan wars (1912-1913), the political map of the Balkans dramatically changed. The Treaty of Bucharest from 1913 divided Macedonia on three parts among Greece, Serbia and Bulgaria. With the Treaty of Versailles, signed at the end of World War I, Macedonia became part of the Kingdom of the Serbs, Croats and Slovenes, a territory which became the Kingdom of Yugoslavia. During World War II, Macedonians together with the other Yugoslav people fought against the Axis powers. They joined the partisans of Josip Broz Tito and in 1944 liberated their country from the occupying forces. By the end of World War II, an independent Republic of Macedonia was formed and became one of the six republics within the Socialistic Federal Republic of Yugoslavia (SFRY). During the 1990s, the increased political freedom as well as the increased tension among the Yugoslav nations led to a collapse of the Federation. At a Referendum for sovereignty, the citizens of Republic of Macedonia voted for independence and established their own country on 8th of September, 1991. In November 1991, the Macedonian Parliament issued the Constitution of the Republic, and in 1993 Macedonia became a member of the UN, under the name Former Yugoslav Republic of Macedonia. 1.1.4. INTERNATIONAL RELATIONS The Republic of Macedonia entered the UN in 1993 and become a member of the Council of Europe in September 1995, while in November 1995, the country became a part of the NATO Partnership for Peace program. In January 1996, Republic of Macedonia established diplomatic relations with the European Union, and it 2001 it signed the Stabilization and Association Agreement. Republic of Macedonia is a member of the World Bank since 1999 and a member of the International Development Association from 1993. In the year 2003, Macedonia became a member of the World Trade Organization (WTO). Republic of Macedonia is also a member of: CEI, EBRD, FAO, IAEA, IBRD, IFC, IMF, Interpol, IOC, IOM (observer), ISO, OSCE, UNCTAD, UNESCO and many more.

PROFILE OF REPUBLIC OF MACEDONIA

Macedonia is a republic with a multiparty parliamentary democracy, and a political system divided on legislative, executive, and judicial powers.

Legislative power Executive power Judicial power

Assembly President of the Republic Constitutional Court One chamber assembly Institution of the Republic which The Assembly consists of 123 Elected on the base of general and safeguards the constituality of MPs which are elected under popular vote with a mandate of laws and protects the human proportional mandatory system five years. rights. held every four years. Adopts laws, budgets, appoints the The President represents the Members of the Government and Republic and is performing the other positions from the executive function of a Supreme commander and judicial power, validates of the military forces. international agreements, and makes a decision for war.

Local government President of the Government Supreme Court of Republic of Macedonia 84 municipalities with elected Leader of the party, or coalition, The highest court of the Republic, mayors and councils! It has which won the majority of MPs which ensures unity in the legislative and executive powers seats, nominated by the President, application of the laws in the on local level. elected from the Assembly. courts.

Government Cabinet of Ministers nominated by Court of Appeal Three regional courts of Appeal. the President of the Government, Decide on the claims which and elected by the Assembly of challenge the decisions of the the Republic with the majority of Primary Courts. votes.

Primary Courts The Government suggests laws, 27 primary courts which decide on the budget of the Republic and civil and criminal cases. other acts of regulation adopted by

the Assembly; it develops policies

for implementing laws and other regulations, adopted by the Assembly, and is responsible for their successful realization.

PROFILE OF REPUBLIC OF MACEDONIA

1.3.1 EMERGING TRENDS

Republic of Macedonia strategically works on its economic development and the creation of a favorable business environment. The country has a long-term macroeconomic stability and low inflation (in average is 2% in the past ten years), balanced public finances with low budget deficit and a stable exchange rate. In the past couple of years the reforms implemented in the labor market, along with active employment programs, decreased the unemployment rate from 36% to 25%. The main macro-economic indexes are presented in Table 1.1. In the “Doing Business 2016” report of the World Bank, Republic of Macedonia is ranked at 12th position in the world according to the ease of doing business – a progress of 41 places comparing to the rank in 2012. Macedonia is ranked first on this index (ease of doing business) compared to 25 economies in Europe and Central Asia. According to the Global index of competitiveness developed by the World Economic Forum „Global Competitiveness Index of the World Economic Forum“ for 2015-2016, Macedonia is in the category of efficiency driven economies at the 60th position, with an improvement of 30 places compared to the same report for 2012- 2013. In the 2015-2016 report, Macedonia is among the first ten most competitive European developing economies. According to the Agency for Credit Rating „Standard and Poor’s“, the credit rating of Macedonia at the end of 2013 was BB-/ stable/B.

Table 1-1 Macro-economic figures Table 2.1. Macro-economic figures 2009 2010 2011 2012 2013 2014 2015 GDP growth rate (%) -0,4 3,4 2,3 -0,5 2,9 3,5* 3,2* GDP per capita (euro) 3300 3459 3665 3680 3948 4126* Inflation (%) -1,6 3,0 2,8 4,7 1,4 -0,5 -0,5* Unemployment (%) 32,2 32,1 31,4 31,0 29,0 28,0 25,5* Net Trade exchange -1699,8 -1602,2 -1838,0 -1946,7 -1748,1 -1762,0 (million euro) Export of goods f.o.b. 1937,0 2534,9 3214,9 3124,0 3235,2 3723,0 (million euro) Import of goods (million euro) 3636,8 4137,1 5052,9 5070,6 4983,3 5485,0 Foreign Direct Investments 136,9 156,9 344,6 131,1 229,4 197,4 (million euro) Public tax percentage from GDP 55,9 57,8 64,2 68,2 64,3 70,2 70,4* * Data from the second and third quarter for 2015 Source: National Bank of Republic of Macedonia (2015)

1.3.2 STRATEGIC INDUSTRIES

There are several industries of strategic importance for Republic of Macedonia as are: agriculture, food processing industry, metallurgy, and textile industry, production of automotive parts, construction, chemical industry and ICT sector. Agriculture is one of the most important sectors of the Macedonian economy accounting for 10, 1% of the GDP value for 2014. The production of fresh and high quality agriculture products is an excellent base for development of the food processing industry. In general, the food processing industry has a strong reputation based on the quality and reach of its products (access to regional and global markets). Main Macedonian products

PROFILE OF REPUBLIC OF MACEDONIA are fruits, vegetables, wine, sheep and goat cheese. The share of the food processing industry as a percent of the industrial production is 11, 75% in 2014; it has 23.704 employees, which accounts for 3, 33% from the overall employments in the industry. The geological structure of the land in Republic of Macedonia is rich with raw materials and minerals which constitute a good base for a well-developed sector of metallurgy. According to latest data, metallurgy generates 11,59% of the value of the industrial production. The basic sources for resources in this industry are the mines of lead, zinc, copper, Ferro, nickel, and Ferro silica mines. As a sector, metallurgy represent a base for industry development and is a significant contributor for economic growth of the country, currently employing 15.252 employees (2014). The existing tradition and high quality human capital enabled the automotive components industry to continue its development. The production of automotive components which started in 1960 with the Serbian company “Zastava”, has re-profiled and modernized in the past decade with the entrance of foreign investors such as “Johnson Controls”, “Johnson Matthey”, “Van Hall”, “Dräxlmaier”, “Kemet”, “Amphenol” and others that have invested in opening of production capacities in the free economic zones. Today, automotive components produced in Macedonia are sold on the markets in Europe, Russia, Turkey, Africa etc. The textile industry is a traditional manufacturing sector in the Republic of Macedonia which generates 17% of the annual value of GDP (2014). Macedonian textile is highly valued and recognized product on the global markets. The available capacities in the industry have the required infrastructure, modern technology, and qualified employees. The textile industry is a labor-intensive industry, employs 35% of the total workforce in the manufacturing, and participates with 17% in the total annual exports (2014). The newest and fastest growing industry branch is the ICT sector. In pace with the global trends, the Macedonian telecommunications market is rapidly developing, especially in the mobile segment. The Act for electronic communications, from 2005 is harmonized with the EU regulation providing stable and consistent regulation of the sector and full liberalization of the market aiming to attract investments from domestic and foreign operators. In 2014 this industry gave employment to 13.579 and has 3, 4% GDP share.

1.3.3 TRADE EXCHANGE

Republic of Macedonia has achieved a high level of trade liberalization, which is derived from:  its membership at the World Trade Organization (WTO) from 2003;  its membership at CEFTA – Acts for free trade with Albania, Bosnia and Herzegovina, Serbia, Montenegro and Croatia;  Acts for free trade with Turkey and Ukraine, as well as the EFTA countries;  Agreement for stability and association with EU from April 2001, that gives Macedonia free connection; As a member of WTO, Macedonia committed itself to respect the three basic principles of trade conduct: (1) transparency of law, (2) equal rights and privileges for domestic and foreign companies and citizens and (3) the principle of the most most-favoured nation. The Law on Customs Tariff is fully-harmonized with customs systems introduced by the World Customs Organization and the Combined Nomenclature of the European Union. In the period 2009-2014, the Macedonian economy doubled its exports; however, its imports grew as well– Table 1.1. The fact that the trade net-exchange is not changing indicates that the export is growing with a higher annual rate compared to the imports which on medium term can result into significant improvement of the net trade exchange. Main export products of Republic of Macedonia are: automotive components, ferronickel, fuel oil and processed products, machines and appliances, products from iron and steel, tobacco, textile products, wine, medicine, fruits, vegetables, tinned food. The main export partners are: Germany, Great Britain, Serbia, Greece, Bulgaria, Italy, China, Turkey, and Romany. The domination is from EU28 countries.

PROFILE OF REPUBLIC OF MACEDONIA

Main import products are platinum and leaguers of platinum, oils and oils derived from bitumen minerals (except for raw minerals), electrical energy and other metals form platinum group and their leaguers, unmanufactured or in dust shape. The main import partners are: Great Britain, Germany, Bulgaria, Italy, Serbia, China, Russian Federation, Ukraine, Croatia, and Slovenia. 1.3.4 TRANSPORT

Republic of Macedonia is a continental country with a strategic location on the crossroad of two major Pan-European corridors (Corridor 8 and Corridor 10), that connects Central Europe with Adriatic, Aegean and Black Sea. The neighbouring countries are a potential market of estimated 30 million people, while Europe as a Figure 1.3-1 Location of Republic of Macedonia in Europe market covers a population of 80 million. Macedonia has an extensive network of paved highways and secondary roads. The network is well planned and of high quality. The total length of the road network is 14.182 km, out of which 242 km are classified as highways, 911 km are arterial roads, 3.771 km regional, and 9.258 km are local roads. The length of the open railway trucks in Republic of Macedonia is 696 km. The main north-south connection from Belgrade to the Thessaloniki port is passing through Macedonia. In 2015 there were some major investments in the railway network by buying modern trains from China (PRC). The Macedonian airport system consists of two airports for international airline traffic (the airport Aleksandar Veliki – Alexander the Great in Skopje, and Sv. Apostol Pol - Saint Apostol Paul, in Ohrid) five sport airports with grass runways (Skopje-Stenkovec, Kumanovo, Shtip, Bitola, And Prilep) which are appropriate for any type of sports aviation, and there are also six airports for airplanes of trade aviation, through which are mainly conducted services with regard to agriculture and forestry (there is only one in use). 1.3.5 TELECOMMUNICATIONS

Republic of Macedonia has a well-developed telecommunication network with density that corresponds with the average in the region – 20 lines on population of 100. The former state monopoly “Macedonian Telecom” was privatized in 2001 and sold to “Madyar Telecom”. At the moment there are two mobile operators covering the market: “T-Mobile” Macedonia (subsidiary of “Macedonian Telecom”) and VIP (subsidiary of “Mobilkom” Austria). The mobile network covers 99% of the population with penetration higher than 100%. According to the register of operators that broadcast program packages and data, the number of operators of public electronical communication networks that are providing services through cable infrastructure is 54. Additionally, there are three operators that are providing services through IPTV – platforms, one operator that provides service through DVB-T platform and one operator that provides service through DVB-S- platform. (Source http://www.avmu.mk/ - Agency for Audio and Audiovisual Media Services – updated on 27.22.2015)

PROFILE OF REPUBLIC OF MACEDONIA

Republic of Macedonia follows the trends of the digital economy. The Law for data in electronic form, as well as the Law on digital certificates are adopted in 2001, while in the past decade all necessarily laws were changed to accommodate the use of digital certificates. According to the data from the State Statistical Office, in the first quarter of 2015, 69, 4% of the households had access to internet from their home - one percentage point higher in comparison to the same period in 2014. The participation of households in the broadband internet from the total number of households has increased from 67, 7% in 2014 to 69, and 0% in 2015. Almost all (99, 5%) from the households with internet access had broadband (fixed or mobile) internet connection. In the first quarter of 2015, out of the total population aged 15 to 74, 69.2% used a computer, whereas 70, 4% used the internet. The internet is mainly used by pupils and students, who make up 94.7% of the total number of users. In the first quarter of 2015, 71, 2% of the internet users used mobile phone, or a smart phone, for internet access outside the home and work. According to data from the State Statistical Office, 93, 5% of the businesses with ten and more employees had a broadband access to internet in 2015 (through fixed or mobile connection). More than half of the businesses (59, 1%) had access to internet through portable device, using the mobile network (3G/4G). Mobile internet (through portable devices notebook, lap top, smartphone, PDA-phone etc.), was used by 11, 4% of the employees in the businesses. Half (49,8%) of the businesses use social media ( “Facebook”, “LinkedIn”, “Twitter”, “Present.li”, “YouTube”, “Flicker”, “Picasa”, Wiki – tools etc. ). Other data for 2015, indicate that around 52% of the businesses have a web site, while 79% of those which have, have provided a description of their products/services and pricelists on the internet, 40, and 2% have listed links/references to their social media profiles, and 16, 4 % have made an online purchase, or a reservation. 17, 7% of the businesses have used ERP- software packages for electronic and automatic information trade regarding their business, whereas 21, 6% have used software application for Customer relationship management (CRM). In 2014, 7,7 % of the businesses with ten or more employees have used e-trade, i.e. they were buying or selling goods and services through computer networks (web or EDI), 3, 6 % sold products and eservices while 5,9 % bought. 1.3.6 ENERGY

Republic of Macedonia is striving to become self-sufficient in electrical energy. The total annual generation of electricity amounts to slightly above 6,000GWh and it is derived from thermal and hydroelectric sources. The energy production covers 65% of the domestic needs for electrical energy. In line with EU policies, the State Electricity Utility has been recently restructured into 4 independent units: two for generation, one for transmission and one for distribution of electricity. The distribution company has subsequently been privatised in 2006 and 90% of the shares were sold to EVN (Austria). The capacities for generation of electrical energy generation are still in dominant property of the state and the private investment in this sector has been in general small in the past period.

PROFILE OF REPUBLIC OF MACEDONIA

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2.1.1 FOUNDING A COMPANY The Constitution of the Republic of Macedonia guarantees the equal treatment of all market participants, along with the right of foreign investors to acquire ownership of property and their right to free transfer of invested capital and profits. According to the Company Law (Official Gazette No. 28/2004) , there are two types of legal entities in the R.of Macedonia:  Sole Proprietors (physical entity who executes some of the trade activities as part of his/her occupation)  General Partnership (legal entity in which one or more persons invest money, objects, and/or rights which they exercise for joint working, and share the profit and the loss of the work). Depending on the form legal entities can be classified into the following types:  Limited liability company (Ltd);  Joint stock company (JSC);  Limited Partnership;  Publicly traded company.

2.1.2 FORM OF TRADE COMPANY (TYPES OF TRADE COMPANIES) The most frequently used legal entity in R. Macedonia is the limited liability company (DOO). A Limited Liability Company (DOO) is a company where one, or more physical and/or legal entities, participate with one share, according to a previously agreed capital structure of the company. A Ltd. can be established by one, or several physical and/or legal entities (up to total of 50). When a limited liability company is established by a single legal, or one phisical entity, it is called a limited liability company established by a sole individual (DOOEL). In the legal exchange with third persons, the founders of the company are not personally responsible for the liabilities of the company, but they take the risk for its operations up to the threshold of their share in it. In a legal exchange with third persons the limited liability company accounts for its liabilities with all its property. Another form of legal entity which is most frequently present is the Sole Proprietor, where a physical entity is personally responsible for the liabilities, with all his/her property. 2.1.3 STEPS FOR REGISTERING A COMPANY 2.1.3.1 Necessary documents for registering a company The introduction of the one-stop-shop system in R. Macedonia for registration of companies, ensures the unity of all legally relevant data on founding and operating a business in the country. In order to register a company in R. Macedonia, a person has to submit a request using a prescribed existing form in order to register the company at the Central Register. In cases, when the founder is a legal entity, there is a need of a verified copy of the registration document of the legal entity, and in cases when the founder is a physical entity, a verified copy of a proof of identity (ID car d) also needs to be submitted.

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A limited liability company (DOO) is established by a founder’s contract. In the case where the founder is a single individual, then the company is formed with a statement. The agreement, the statement, and the other accompanying documents (as envisaged by the Company Law) should be prepared by a lawyer (registration agent), and the same need to be submitted at the Central register of R. Macedonia. Before drafting all required documents, founders need to investigate the availability of the company’s name, decide on the location of the head office, assess the required initial investment, and decide in which bank the company will open a bank account.

2.1.3.2 Submitting the documentation The company’s registration form accompanied with all required documents is submitted to the Central Register of R. Macedonia, or to some of its branches located in the larger cities of R. Macedonia. Entities for which entry in the commercial register is mandatory are obliged to file the registration form in the commercial register within fifteen days as of the date the requirements for filing the registration form in n accordance with the Company Law, and other laws. In case these procedures are not followed, after the expiration of three months, counting from the day of fulfilling the conditions for submitting the registration form, the Central register will not accept the data, and will reject the registration form, unless stated otherwise, in accordance with the Company Law. As a new service, the Central Register provides electronic submission of documents or e-Registration. The procedure can be completed in three steps: obtain a certificate, prepare documentation and submit registration. The registration is done without any costs to the Central Register. One can use authorized registration agents for finalizing the procedure for e-registration of the company. 2.1.3.3 Duration of the registration procedure According to the information found on the web site of the Central Register, it takes three days to register a legal entity through the one-stop-shop system in Macedonia 2.1.3.4 Costs for registering a legal entity Registering a Limited Liability Company DOO/DOOEL in average costs about 12.000 MKD. The administrative tax for registering a Limited Liability Company DOO/DOOEL in paper form through the offices of Central Register is 2.399 MKD. The fee for the appraiser of the non-monetary contribution in a limited liability company, joint stock company, limited partnership, and limited partnership by shares, depends on the type of property being appraised. The notary fees depend on the number of founders. A stamp costs in the range of 500-1000 MKD. The fee for legal service of an authorized person – lawyer – is not fixed and depends on the type of company being registered, the number of founders, and the specificities connected with the organizational goal. At the one-stop-shop system you can check whether there is already a company with the same, or a similar name. The procedure lasts one day. After you complete the registration procedures, you need to open a bank account at the bank of your choice. Needless to stay, the founder and manager of the company should meet the requirements of the Company Law. The electronic registration of legal entity through the system e-Registration is free of charge for all types of legal entities.

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2.1.3.5 Necessary permissions for starting a business and authorized institutions to issuing them In Republic of Macedonia there is a National classification of activities with standardized names and codes. Majority of the activities do not require any special licence or a certificate, but there are exceptions for which you need a licence to do the job issued by an authorized institution. Information in regards to licences can be found at the Central Register, the relevant ministries, and the Law offices.

2.1.3.6. Documents received after registration The one-stop-shop system made the procedure for registration of legal entities in Republic of Macedonia faster and easier. After completing the procedure for registration at the Central Register, the new-established legal entities receive the following items:  ID number of the company (EMBS);  Tax number of the company (DB);  Document for customs record;  Document for registered primary (main) activity in accordance with the national classification of activities; and  Bank account number in a bank of your choice. In addition to these documents, the for-profit entities need to register for Value Added Tax (VAT). 2.1.4 CORE/CHARTER CAPITAL The Core/Charter Capital of the company (which consists of the sum of primary shares) is set to a minimum of 5.000 EUR, in denar counter-value according to the official rate of exchange of the National Bank of the Republic of Macedonia. Contributions may be in cash (monetary contributions), in contributions in kind (real estate and movables) and rights with property value that may be appraised and expressed in cash (non- monetary contributions), or they may consist solely of cash, contributions in kind, or rights. As an exception, partners in a general partnership, or general partners in a limited partnership, may contribute labour and services. The non-monetary contributions are appraised (in order to determine its monetary value) by an authorized court assessor. The fee for the appraisal is 50 EUR, and in accordance with the value appraised. The Core/Charter Capital is noted before submitting the registration form at the Central Register. In such a case the monetary investments are paid to the temporary account of the company, and the non-monetary investment is assessed by an authorized court appraisal. In accordance with the latest amendments of the Company Law, the co-founders can complete the investment within a period of one year, starting from the day of the registration. Hence, before submitting the statement for registration of the company, the co-partner has no liability to complete both the monetary and non- monetary investment. 2.1.5 STRUCTURE OF THE COMPANY 2.1.5.1 Director of the Company Any physical person engaged with a work contract can be appointed as a Director of the Company. He/she can be a national of R. Macedonia, or a foreigner. A director cannot be a person, against whom there is an effective court procedure, by which he/she is partially or completely forbidden to perform the duties of the director’s position, whilst this decision is still valid. 2.1.5.2 Nominal managing structure in accordance with the law In line with the provisions of the Company’s Law, the nominal managing structure of a Limited Liability Company is made out of the following bodies:

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 The board of co-partners made out of all founders to whom all decisions refer to (every founder has a right to vote, in accordance with his/ her investment); and  The director who represents the company in the relationship with third persons. 2.1.5.3 Compulsory registration of companies in the country A company needs to be registered in accordance with the Company Law in order to be able to conduct a business activity in R. Macedonia. Foreign companies and foreign individual traders can conduct business activity in R. Macedonia through their branch offices (registered at the Central register) acting on behalf of the foreign company. 2.1.5.4 Laws referring to foreign companies The foreign companies in R. Macedonia (active through their registered branch offices) function in line with the national laws, and in their manner of conducting business are equal to domestic physical and legal entities, unless stated otherwise according to certain international agreements. In case where a foreign physical or legal entity is a founder of a company in R. Macedonia, the newly established company acquires the status of a domestic legal entity after its registration at the Central Register, and operates in accordance with the Macedonian laws and regulations. 2.1.5.5 Modes of closing a company, and restoring invested means The required period for closing a company (liquidation) lasts 22 days. The company can stop working:  after the expiry date for which it was founded;  by a decision of the co-partners; and  by a court decision. In these cases a company is liquidated. The liquidation procedure is conducted when the company is solvent and lasts between 4 and 5 months. The property which remains after closing all liabilities of the company is divided between the co-partners (founders) and in accordance with the share they had in the company. When the company is insolvent, bankruptcy proceedings are conducted. The bankruptcy proceedings last between 2 months and 1 year, depending on the type, the property, and the debts of a company.

DOING BUSINESS IN REPUBLIC OF MACEDONIA

2.2.1 LEGAL FRAMEWORK FOR ACTIVITIES AND STRUCTURE OF LEGAL ENTITIES The Company Law (Official Gazette No. 28/2004) is the primary law regulating the activities and structure of the legal entities. The law regulates different types of companies, outlining the procedures of their establishment and registration, the size of their primary capital, the period of existence, the manner of management and representation, the rights, the obligations and the liabilities of the founders, as well as their mutual relations, the manner of allocation of the profit along with the coverage of an eventual loss, the obligation to have accountancy, the obligation to have company books, the obligation to prepare annual accounting and financial reports, the keeping of company books, accounting documents, the manner in which the company can be deregistered, and other important issues for the organization and the work of the companies. 2.2.2 ASSETS OF TRADE COMPANIES The registered company as a legal entity, can acquire rights and undertake liabilities, can also acquire ownership of movable (vehicles, computers) and immovable items (business premises, land), as well as to acquire other rights that have a property value. 2.2.3 TREATMENT OF A FOREIGN LEGAL ENTITY UPON REGISTRATION A company (established by foreign, physical or legal entities) with the registration at the Central Registry receives a status of a national legal entity. The new established company works under Macedonian legislation. 2.2.4 REGULATION OF THE OWNERSHIP, AND THE OWNERSHIP RIGHTS FOR FOREIGN CITIZENS IN REPUBLIC OF MACEDONIA All national and foreign physical and legal entities have a right to ownership in accordance with the Constitution of Macedonia and the conditions of the Law on Property and other ownership rights (Official Gazette of R. Macedonia No. 18/2001).  Foreign physical and legal entities can acquire the right to ownership of immovable items under conditions applicable for the national physical and legal entities;  Foreign physical entities can acquire the right of ownership by inheriting immovable property in R. Macedonia, under reciprocity conditions.  Foreign physical and legal entities can acquire the right of ownership of living and business premises in R. Macedonia under reciprocity conditions.  Foreign physical and legal entities can acquire the right to a long-term lease (but not ownership) of construction and agricultural land, under reciprocity conditions, previously obtained permission by the Ministry of Justice, opinion of the authorized ministry (the Ministry for Agriculture, Forestry and Water and the Ministry for Transport and Communications), and the Ministry of Finance. As stated in the preceding sections, the company acquires a status of a national legal entity, and loses the status of a foreign legal entity upon completing the registration. 2.2.5 PRICE REGULATED GOODS AND SERVICES There is a small number of price regulated products and services. This group covers products, such as energy, which price is regulated by an independent regulatory body, i.e. the Regulatory Commission for Energy of Republic of Macedonia established in 2002, by the Law on Amending the Energy Law (Official Gazette No. 94/02). The Commission decides on the Energy price on the base of its own calculations and established methodologies. 2.2.6 PROTECTION OF COMPETITION In order to prevent unfair competition, all legal entities which work against the legal provisions and do not abide by the principles of consciousness and trustworthiness (by submitting unrealistic statements for the

DOING BUSINESS IN REPUBLIC OF MACEDONIA origin of products, the process of production, etc.) will be prohibited to conduct their activities, and might be obliged to compensate the damage. These provisions are in accordance with the Law against Unfair Competition (Official Gazette e 80/99). The law for protection of competition (Official Gazette 4/2005) ensures free competition at the national market and defines all prohibited forms of limitations and infringement of competition.

2.2.7 REGISTERING PRODUCTS AND ITS PROTECTION FROM ILLEGAL PRODUCTION AND IMPORT The Law on Industrial Property protects the products from illegal import (acquiring of rights to industrial property). The State Agency for Industrial Property in Skopje is authorized to protect the rights for industrial property. The rights of industrial property include: patent, model and sample, trade and service trademark, and label of origin of the product.  The patent is a legal and industrial property which ensures the protection of innovation (solution for a particular technical problem);  An industrial design (change of look, picture, drawing) is the right to protection of the design of the product by legal means;  A trademark is a right to industrial property which protects the trademark (the graphic part);  The label of origin of the product is the right to industrial property which protects the geographical name and origin (the country, region from where the product originates). The Law on Industrial Property guarantees the rights to industrial property and no person is allowed to use them without previous approval and authorization. 2.2.8 ACCOUNTING PROCEDURES The Republic of Macedonia applies the International Accounting Standards (IAS) published in Official gazette of R. Macedonia No. 159/2009, 164/2009, 107/201 2.2.9 SUBMITTING FINANCIAL REPORTS Annual financial reports are submitted up to the end of February of the current year and for the previous year. They include: balance sheet, profit and loss statement, tax statement and other information. 2.2.10 ACCOUNTANT, AUDITOR AND/OR LAWYER SERVICES The accountants and auditors in Republic of Macedonia are members of different associations. The Association of Chamber of Commerce of Macedonia established the Chamber of Accountants as a seventh chamber of commerce in order to facilitate the provision of advice and financial services to its member companies. The Institute for Authorized Auditors has a register of all authorized auditors and Associations of Auditors, while the lawyers and law offices are associated in the Macedonian Lawyers Association. Besides these associations, the Macedonian Lawyers Association collects information about other trade, local registries, as well as at the offices for local economic development of municipalities. 2.2.11 EXTERNAL AUDITING All medium and large companies are obliged to have an external auditing. Small companies with less than 50 employees are not obliged to contract external auditing.

2.3.1 TYPES OF TAXES All companies that work in Republic of Macedonia are obliged to pay a tax rate on the basis of:  a Value Added Tax;  a Profit Tax;  a Personal Tax; and

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 an Excise Duty.

2.3.2 VALUE ADDED TAX 2.3.2.1 Definition of Value Added Tax (VAT) The Value Added Tax (VAT) is a general tax on expenditure calculated and paid during the phases of production and trade and applied to services as well. 2.3.2.2 VAT-taxpayers VAT taxpayer is a legal and physical entity which performs an activity on the territory of Republic of Macedonia. All taxpayers, which in the previous calendar year came to:  the amount of turnover of 1.000.000 MKD (30.000 EUR), are obliged to register the VAT (including the tax exemption, except the turnover exempted without the right to profit of previous tax); or entities whose turnover is projected, before even the start of the activity, to exceed the amount of 1.000.000 MKD; or entities which during the year exceed the amount of 1.000.000 MKD.  Small trade subjects are given the opportunity to decide whether they want to be registered as VAT payers. In case they decide to stay outside the VAT system, they are taxed as final consumers and have no right to personal tax exemption. 2.3.2.3 Time of taxation occurence The tax debt is paid at the moment when the turnover of goods is completed, i.e. the moment when the service is fully completed. In case the payment is conducted before the turnover, the taxation takes place at the moment when the payment is received. During the import of goods, taxation takes place on the day when the goods enter the country, when we have goods which are not subject to customs payment. 2.3.2.4 Tax rates for the VAT The Value Added tax is calculated by applying proportional tax rates on the tax basis for the tax turnover of goods and services, and import:  General VAT rate of 18%;  Preferential rate of 5%. The preferential VAT rate is applied to the import of food for human consumption, portable water from public systems for water-supply, drainage of urban wastewater and melioration of agricultural land, publications (except for publications mainly used for advertisement purposes, as well as publications with pornographic content), seeds and planting materials for production of agricultural crops, fertilizers, materials for plant protection, foils made of plastic for agricultural use, agricultural machines (Note: It shall be applied until the accession of R. Macedonia to EU), pharmaceuticals and medical devices, intended to alleviate or treat certain disability, exclusively for personal use by the person having that disability, raw oil for production of food for human consumption, first sale of apartments used for living, within the first five years from the construction (Note: this shall be applied from 01 January 2012, to 31 December 2015), transportation of persons and their accompanying luggage, computer software for machines for automatic processing of information and their accompanying parts (computers), public cleaning services and waste management services, and accommodation services with breakfast, half board or full-board with all types of commercial catering objects. 2.3.2.5 Tax exemptions There are certain VAT exemptions. VAT laws in R. Macedonia envisage certain tax exemptions, which include all exported goods and services. Taking into account that the small businesses are not taxpayers, they are given the opportunity to choose whether they will pay VAT. In case they chose this alternative, they lose the right to tax exemptions. List of all other tax exemptions can be found on the website of the Public Revenue Office.

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2.3.3 PROFIT TAX

2.3.3.1 Taxpayers who pay profit tax Profit Tax is paid by resident legal entities both on the profit arising from the activities performed on the territory of Macedonia and from incomes generated abroad.

A legal entity is considered resident if registered in accordance with the Company Law, or if it has a head office on the territory of Macedonia. Residents are taxed on the profit they generate both in the country and abroad, while non-residents are taxed only on the profit they generate from business activity on the territory of Macedonia. 2.3.3.2 Tax basis for calculation of profit tax There are two separate tax basis for profit tax which are subject to filing of two separate tax returns.

The first one is the amount of taxable expenses and understated revenues decreased by any available tax credits and tax reliefs. In this case profit tax is payable on an annual basis regardless whether the corporate taxpayer incurs profit or loss. The second tax base is the amount of distributed profit to individuals (foreign or domestic residents) or to non- resident legal persons by way of dividends or other type of profit distribution. The distributed amount is taxed at the moment of payment, regardless of whether the payment is done in monetary or non-monetary form. 2.3.3.3 Tax rate The profit tax rate is 10%. 2.3.3.4 Tax deductions and exemptions A taxpayer which is a registered user within a technological industrial development zone is exempt from profit tax for a period of up to 10 years from the commencement of the performance of the activity in the zone under terms and conditions and according to a procedure determined by the Law on Technological and Industrial Development Zones; A taxpayer that is obliged, in accordance with the Law on Registration of Cash Payments, to introduce and use approved equipment for registering cash payments, shall be granted a reduction in the calculated corporate tax for the procurement of up to ten fiscal machines, in the amount of their value. 2.3.3.5 Simplified tax regime for trade companies Trade companies classified as small or micro businesses are relieved from the obligation to pay profit taxation for a total income reaching 3.000.000 MKD. Trade companies, which during the year reach a total profit of 3.000.001 to 6.000.000 MKD, are enabled to choose the regime/model of taxation, having the opportunity to pay tax for the total income to the amount of 1%, rather than pay a profit tax of 10% as predicted in the permanent legal decision. Trade companies will not be able to change the chosen taxation model in the next three years including the year when the total income tax is submitted, if in the following three years they reach a total income of 3.000.001 to 6.000.000 MKD per year. 2.3.3.6 Double taxation avoidance Unless differently regulated by the International Double Taxation Avoidance Agreements, all national legal and /or physical entities – registered for business activity; and foreign legal and/or non-resident physical entities with permanent business unit in Republic of Macedonia, when settling the income for the foreign legal entity are obliged to retain and submit the tax on an adequate suspense account simultaneously with the income settlement. The law predicts unilateral measurements for the resident taxpayer of RM, who has submitted a tax for the achieved income abroad, that reduces the calculated tax in the country for the tax amount of the value added

DOING BUSINESS IN REPUBLIC OF MACEDONIA tax paid abroad, up to the amount following the application of the interest rate in accordance with the Law on VAT. The Republic of Macedonia has signed International Double Taxation Avoidance Agreements with more than thirty countries.

2.3.4 PERSONAL INCOME TAX 2.3.4.1 Taxpayers of personal income tax Personal income tax is a tax paid by individuals on the overall net income they earn from various sources in the country and abroad during a calendar year, excluding the tax exempt income. The taxable income comprises of the following types of revenues: Personal earnings - refers to all revenues earned by the taxpayer on the basis of employment and contractual services. Personal income comprises wages and salaries and other allowances on the basis of employment, pensions, income of the members of company management and supervision boards; salaries of officials, MPs and advisors; salaries of professional athletes; allowances for jurors, forensic experts, trustees; allowance for the members of the Macedonian Academy of Sciences and Arts; salary earned abroad on the basis of employment in the country; and every individual income on the basis of contract for occasional or temporary rendering of services to legal entities and individuals. Income from self-employed activity - refers to income realized by individuals from business activities, agriculture or from rendering professional and other intellectual services, such as doctors, lawyers, notaries public, tax consultants, engineers, architects, accountants etc. If several individuals realize income from a joint activity, each shall be liable for the share of the income belonging to him/her, according to the agreement for joint activity. Income from property and property rights - refers to income earned by individuals from lease and sub-lease immovable property, equipment, vehicles and other property. The taxpayer is entitled to a statutory deduction of 25% from the annual gross revenue for the maintenance and management expenses related to the leased property, whereas in case of lease of equipped residential and business premises, the statutory deduction is 30% of the annual gross income. If the taxpayer provides evidence that he incurred costs higher than the stipulated ones, the real costs would be recognized for tax purposes. Income from copyrights and industrial property rights - refers to fees from copyrights and industrial property rights. Depending on the type of artwork (paintings, scientific and professional work, literature translation, artistic work in music, film etc.), the taxpayer is entitled to a statutory deduction in the range from 25% to 60% of the gross income. If the taxpayer provides evidence that he incurred costs higher than the stipulated ones, the real costs would be recognized for tax purposes. Capital revenues - refer to revenues realized from the following:  Dividends and other income realized from participation in the profit of legal entities and individuals;  Interest on loans given to individuals and legal entities;  Interest on bonds or other securities; and  Interest on time savings and other deposits. A resident taxpayer is a physical entity with a permanent residence on the territory of Republic of Macedonia - continuously or with interruption resides for 183 days or more, within a period of 12 months. 2.3.4.2 Tax Base for the personal income tax Tax base is the positive difference from the gross taxable income obtained throughout the taxable year, and the deductions allowed in the Law on Personal Income Tax, such as the following:  Contributions for pension and disability insurance, health insurance and employment;  Contributions for voluntary pension and disability insurance covered by the taxpayer;  Personal relief, which for 2016 is 7.357 MKD per month or 88.284 MKD per year, and  Other recognized expenses that the taxpayer has made while gaining the income.

The personal income tax rate is 10%. Interests for public loans, interests for bonds issued by the Republic of Macedonia and the units of local self-government and interests on savings deposits, current accounts and demand deposits, are not subjects of taxation.

DOING BUSINESS IN REPUBLIC OF MACEDONIA

Capital gains - refer to the gains from sales of securities, share of capital and real estate i.e. the difference between their sales price and purchase price. The tax base is 70% of the earned capital gains. Capital gains are subject to 10% tax payable in advance. Capital losses from sale of securities could be offset against capital gains in the next three years. Capital gains from sales of immovable property sold after three years as of the acquiring date are not subject to taxation Dividends, down payments are taxed by withholding tax with a rate of 10% of gross dividends, i.e. the incomes from the shared profit of the taxpayer. Gains from games of chance refer to income from games of chance and other prize games. The tax is not paid in case the single realized gain is under MKD 10,000; otherwise the tax is payable on the total gain at 10% tax rate. Other income - refer to all other income realized by individuals, which is not included in the above categories; which is not explicitly exempt from personal income tax and is not taxed otherwise. The tax base is 65% of the gross income. Except for incomes with down payment paid tax considered to be final settled tax liabilities, all the remaining types of profits are a part of the annual income of the taxpayer, who by the end of the year is cumulatively taxed according to the annual tax rate, whereupon the amounts of paid advances and used relieves are deductible rates. 2.3.4.3 Tax rate The personal income tax rate is 10%. 2.3.5 EXCISE Excises are paid for the following products: mineral oils; alcohol and alcoholic beverages; tobacco goods and automobiles. To import/export goods with excise liabilities, an excise permit needs to be issued on behalf of the Public Revenue Office in accordance with the Ministry of Finance. The excises are regulated by the Law on Excises. There are certain cases when there alleviations to the excise liability.

2.4.1 GENERAL CONDITIONS FOR CROSS-BORDER TRADE The regional trade of the Republic of Macedonia with regional countries is regulated through bilateral or multilateral trade agreements. The trade with EU member-states (and for the needs of this guidebook-Bulgaria) is regulated with the Agreement for Stabilization and Association between the EU and the Republic of Macedonia (Official Gazette of the Republic of Macedonia 28/2001). Bilateral agreements for investments protection have been signed with about 30 countries, out of which 13 are with the members of the Organization for Economic Co-operation and Development (OECD). Individual Free Trade Agreements have been signed with Turkey and Ukraine and with the EFTA states, and this provides Macedonia with a free customs access to the markets of 650 million customers. In 2006 Macedonia became a member of the Central European Free Trade Agreement, CEFTA, (Official Gazette of the Republic of Macedonia No. 59/2006) that regulates trade among the members of Central Europe. 2.4.2 AMOUNT OF GENERAL CUSTOMS TARIFFS The general customs tariffs in Republic of Macedonia are given in the customs tariff pricelist by the principle of most privileged nation treatment i.e. normal trade (Official Gazette of RM No. 86/2004). Customs tariffs are published annually and in line with the provisions of the World Customs Organization (WCO). Bilateral and multilateral agreements bring better trade conditions, similar to CEFTA and DSA free trade agreements. 2.4.3 PROCEDURE TO RECEIVE IMPORT PERMIT AND CATEGORIES OF PRODUCTS There is a procedure of receiving special permits for import and export of certain products. The general categories of products that require import/export permits are products that focus on:

DOING BUSINESS IN REPUBLIC OF MACEDONIA

 health protection of people, animals and plants;  environment protection;  goods required to fulfil certain meteorological and other conditions;  goods (ready-made products and unused products) for which import the requirement are documents confirming prior checks and other technical documentation;  import of goods that require a permit by NBRM;  import of certain metals, currencies and other; and  Import of army/military equipment. For all of the above mentioned categories there is a specific responsible body, required documents and special regulations. 2.4.4 IMPORT PROHIBITIONS There are no import prohibitions as long as the importer has a permit for the products whose import is regulated with import permits. 2.4.5 PAYMENT OF CUSTOM DUTIES AND EXPENSES Customs duties generally apply to most products imported into Macedonia. Customs duties are paid on the terminal and/ or in the customs offices. For more details, please contact a freight-forward company. 2.4.6 EXEMPT OF CUSTOMS DUTIES When goods are imported for grafting, intended for export to third countries, the company that imports the goods is required to provide a temporary financial guarantee with a minimal customs value. The same holds true if the goods are intended to be sold in the country. A guarantee must be paid at each import; the alternative option is an annual guarantee that is not below EUR 10,000. 2.4.7 DURATION OF THE CUSTOMS PROCEDURE The length of the procedure depends on the type of imported products and depends on the tariff numbers. It depends on whether the importer has all the documents and if they are adequately filled-in along with a submitted bank guarantee for taxes (customs and VAT). 2.4.8 ORGANIZATION OF THE CUSTOMS PROCEDURE It is useful for the importer/exporter to hire a freight-forward company in order to speed up the procedure. Freight-forward companies have the best knowledge of laws, regulations and have all required documents for the importing the goods. All information for the required documents and forms may be found at the Customs Administration. For more details, please visit the website of the Customs Administration, Ministry of Economy, Ministry of Finance, Agency for Foreign Investments and Export Promotion of the Republic of Macedonia (Invest Macedonia) and Macedonian Chambers of Commerce. 2.4.9 SOURCES OF ADDITIONAL INFORMATION More details on the customs procedure, the required documents, forms, and the length of the customs procedure at the terminals can be found on the website of the Customs Administration of the Republic of Macedonia and the website for the One-stop-shop system for permits for import, export, and transit of goods and tariff quotes – EXIM.

2.5.1 EMPLOYING PEOPLE IN A COMPANY 2.5.1.1 Legal Basis The employment relationship in R. Macedonia is regulated with the provisions of the Law on Labor Relations (cleared text, Official Gazette, No. 158.2010); Law on Employment and Work of Foreigners (Official

DOING BUSINESS IN REPUBLIC OF MACEDONIA

Gazette No. 92/07); Law on Protection of Personal Information (Official Gazette No. 7/05 and 103/08); by collective agreement and other legal acts. These laws regulate the rights, obligations, and responsibilities of the employee and the employer, which refer to the employment contract, its modification or termination; working hours; leave and holidays; work discipline; compensation for damage, special protection for certain categories of employees, etc. A main goal of the Macedonian legislation for employment is to create a minimum level of protection for the employees. 2.5.1.2 Types of working arrangements All employment contracts must be in writing. The employer is obliged to inform the Employment Agency in writing, within a period of one day after signing the contract and within a period of eight days after its termination. Employment contracts can be temporary (for tasks that have a specific time frame, and have a fixed deadline) or permanent (for tasks and responsibilities without definite time for execution). The most common and most frequent employment contract in Republic of Macedonia is the contract for an indefinite time which ensures a better protection of employee’s rights and their interests. The employment contract for an indefinite period of time cannot be transformed into temporary contract without a written permission of the employee. 2.5.1.3 Registration of employees After completing the registration of the company, preceding the start of the activities, all employees must be registered at the Employment Agency of Republic of Macedonia. 2.5.1.4 Necessary time for registration of employees Employees can be registered in one day. 2.5.1.5 Minimum number of registered employees The manager must be registered as an employee (that is the minimal legal obligation) and depending on the company needs, all engaged persons should be registered as employees. 2.5.1.6 Minimal obligations of the employer towards his employees The employer is obliged to provide a gross salary that consists of:  Post-tax salary (minimum amount of which is calculated on monthly basis, by the Statistics Office in accordance with the registered activity);  Personal income tax 3.16% of the salary;  Contributions for health insurance, up to 7.32%, and pension insurance up to 18% of the salary;  Other small compensations (insurance for unemployment up to 1.2%, additional health insurance to the amount of 0.5%). All contributions make up to 27% of the total post-tax salary. 2.5.1.7 Amount of average salary on national level The average monthly, post-tax net salary per employee in October 2013 was 21.247 MKD. 2.5.2 REGISTRATION OF INDIVIDUAL FARMERS All physical persons, whose workload does not exceed the agricultural activity of a small-scale farming may be registered as individual farmers. Small-scale activity is agricultural activity performed by the farmer and up to ten employees, including members of his family, and not more than five seasonal workers. The individual farmer is registered in the registry of individual farmers through the local units of the Ministry of Agriculture, Forestry and Water Management. If the activities of the individual farmer exceed the small scale agricultural activity, he is obliged to register as a sole proprietor or as a limited company. A sole proprietor or company, is registered at the Central Registry of RM - regional offices.

DOING BUSINESS IN REPUBLIC OF MACEDONIA

2.5.3 EMPLOYMENT OF FOREIGN CITIZENS Employment of foreign citizens is regulated with the Law on Employment and Work of Foreigners. A foreigner may be employed in a Macedonian company based on previously obtained residence permit and a work permit issued by the Agency of Employment of a written request submitted by the employer or the foreigner. A foreigner may be employed or self-employed in the Republic of Macedonia if he/she possesses:  work permit; and  has a legal residence in the country. The types of work permits and the issuing procedures are regulated with the Law on Employment and Work of Foreigners (Official Gazette no. 70/07). There are three types of work permits:  Personal work permit that enables the foreigner has free access to the labor market (employment, self-employment) regardless of the employer;  Employment permit where the foreigner can be employed only by the employer who filed the application for his work permit; and  Work permit, which is issued for a specific predefined purpose. The entrance, exit, and residence of foreigners is regulated by the Foreigners Law (Official Gazette no. 35/06) under which a foreigner may receive:  Residence for up to three months;  Temporary residence; and  Permanent residence. A foreigner who founded a company in R. Macedonia can get a temporary residence. After five years of temporary residence, provided the foreigner meets all other legal requirements, he/she can obtain a permanent residence.

2.6.1 FINANCIAL SYSTEM

The financial system in Macedonia consists of the National Bank of Macedonia (Central Bank), commercial banks, savings houses, exchange offices, the Deposit Insurance Fund, in addition to insurance companies, investment funds, pension funds, funds management companies, lease companies, brokerage houses and a stock exchange. 2.6.2 BANKS The banking system consists of 17 banks (15 private banks, one branch of a foreign bank and state-owned Macedonian Bank for development support) and four savings banks. According to the Banking Law, a bank must be established as a joint stock company with property in the country. Banks are obliged to follow prescribed supervisory standards for solvency and capital adequacy, risk management, exposure limits, investments, liquidity. Savings houses are limited in their banking activities and services (savings and loans) to physical entities, some of them offer microfinancing. According to the Banking Law, foreign banks can enter the Macedonian banking market through a representative (with the approval of the Governor of NBRM) and a subsidiary or branch (with the permission of the Governor of NBRM). The three largest banks are: Komercijalna Banka AD Skopje, Stopanska banka AD Skopje (where the National Bank of Greece is a major shareholder) and NLB Tutunska Banka AD Skopje (where NLB Ljubljana, Slovenia, is a major shareholder). Together they possess more than 60% of net assets in the banking industry.

DOING BUSINESS IN REPUBLIC OF MACEDONIA

The banking system is still small and has a relatively low level of financial intermediation. Interest rates on bonds were 3.25% in 2013. Average rates on commercial loans were 8.2% in 2013. 2.6.3 DEVELOPMENT FUNDS AND PROGRAMMES There are a many development programs that support the development of businesses at national level, with a focus on the small and medium-sized enterprises (SMEs). A majority of the available funds on the other hand are offered by financial institutions and donors. The Government of R. Macedonia supports the strategic sub-sectors with subsidies and export stimulations. The best way to inform oneself on the different opportunities in this area is by contacting the Agency for Entrepreneurship Support, the Macedonian Bank for Support and Development, the Chamber of Commerce and other international donor organizations. 2.6.4 SUPPORT FOR SMALL AND MEDIUM-SIZED COMPANIES Various government and municipal activities, projects, programs, and donors support the work of the SMEs in Republic of Macedonia. The support comes in the form of training, investment, equipment, marketing, and promotional activities, and is usually given as a grants or long-term credit. As a part of the Government of R. Macedonia, the Secretariat for European Affairs (SEA) is authorized to register all grants which come in a form of projects from the EU. One can get more information on the website of the Central Data Base for foreign aid of the Government of Republic of Macedonia. 2.6.5 SHORT TERM CREDITING OF ECONOMY All commercial banks in Republic of Macedonia offer short-term crediting in form of loans, or debit balance (on the basis of annual turnover). The interest rate of the short-term credits is based on the discount rate set by the National Bank of Republic of Macedonia. 2.6.6 SUPPORT FOR TRADICIONAL CRAFTS Craftsmen in Republic of Macedonia receive support through the credit lines of the commercial banks, and through donors. More information for the available support for this category of economic performers can be obtained Central Data Base for foreign aid of the Government of Republic of Macedonia, the Chamber of Craftsmen of Republic of Macedonia, as well as its regional organization in Strumica.

SOUTH-EAST REGION

 Favourable geographic location – near the border of two EU member states (Republic of Bulgaria and Republic of Greece)  Municipal industrial zones  Trained labor force  High quality living conditions  Geothermal waters  Sectors with potential: o Agriculture and farming o Food industry o Tourism o Wood – processing industry and furniture construction o Engineering

3.2.1 INTRODUCTION

The South-East region stretches in the south-eastern part of Republic of Macedonia, covering the territory of Strumica - Radovish, and Gevgelija - Valandovo valley, more precisely the Valley of Strumica river and the lower part of Vardar river. The region includes the above-mentioned valleys and the massifs of Belasica Mountain to the South, Ograzden to the East, Plachkovica to the North, and Srta in the central part, along the Eastern part of Kozuf Mountain. The valleys of Strumica and Vardar River link the region with the neighbouring countries: Republic of Greece to the South, Republic of Bulgaria to the East, and to the North and the West with the Eastern and Vardar region respectively. The South-East planning region covers a territory of ten municipalities: Municipality of Bogdanci, Municipality of Bosilovo, Municipality of Valandovo, Municipality of Vasilevo, Municipality of Gevgelija, Municipality of Dojran, Municipality of Konche, Municipality of Novo Selo, Municipality of Radovish and Municipality of Strumica. According to data from 2014, 8.4 % of the Macedonian population resides in this region. The region has an area of 2.835 km2, which represents 10.9 % of the total area of the country, with population density of 63.2 citizens per km2.1

1 State Statistical Office of the Republic of Macedonia, “Regions in the Republic of Macedonia, 2015”.

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Table 3-1 General information for the municipalities in the South – Eastern Region Population Area Municipality Populated places (Census 2002) (ha)

Municipality of Bogdanci 8.707 11.438 4

Municipality of Bosilovo 14.260 15.000 16

Municipality of Valandovo 11.890 33.140 29

Municipality of Vasilevo 12.122 22.100 18

Municipality of Gevgelija 22.988 48.343 17

Municipality of Dojran 3.426 13.200 13

Municipality of Konche 3.536 22.370 14

Municipality of Novo Selo 11.567 25.000 16

Municipality of Radovish 28.244 68.000 36

Municipality of Strumica 54.676 32.149 25

Total 171.416 290.740 188 Source: State Statistical Office (2015)

The rich hydrographical network, the great number of sunny days, the climate and the favorable pedagogical conditions characterize the region as predominantly agricultural. The high-quality and abundant production of early gardening plants, such as fresh vegetables and fruits, as well as industrial agricultural plants, provide development of the canned food industry for which the region is famous. In recent years there has been increase in the tourism sector, which has led to increased capacities for accommodation, tourists and overnights in the region. This is mainly due to the revitalization and taking into advantage the Lake Dojran, as a tourist potential.

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3.2.2 REGIONAL STATISTIC Table 3-2 Basic information for the South-Eastern Region

Number of municipalities 10

Number of populated places 188

Total population, Census 2002 171.416

Estimate of population, 2014 173.522

Population Density, 2014 63,4

Total number of households, Census 2002 59.499

Average number of household members, Census 2002 3,4

Born alive, 2014 1.888

Deceased, 2014 1.764

Natural growth, 2014 124

Immigrants, 2014 275

Emigrants, 2014 25

Literacy rate of the population at the age above 10, Census 2002 96,0

Activity rate, 2014 66,9

Employment rate, 2014 52,9

Unemployment rate, 2014 20,8

Average paid gross salary per employee, 2014 24.482

Average paid net salary per employee, 2014 16.729

Number of primary schools, 2014/2015 119

Number of secondary schools, 2014/2015 8

Enrolled students in primary schools, 2014/2015 14.276

Enrolled students in secondary schools, 2014/2015 6.098

Number of graduated students, 2014 751

Number of active businesses, 2014 5.969

Number of founded companies, 2013 509

Number of closed companies, 2011 477

GDP per capita, 2012 252.278

SOUTH-EAST REGION

Number of municipalities 10

Number of beds, 2014 6.277

Number of tourists, 2014 124.707

Number of overnights, 2014 401.065

Number of built apartments, 2014 349

Value of conducted construction work, 2014, in thousands of Denars 1.515.367

Number of issued permissions for construction, 2014 224 Source: State Statistical Office, The Regions in the Republic of Macedonia, 2015

3.3.1 TOPOGRAPHY AND CLIMATE Major parts, i.e. 46%, of the plough areas in the South-East Region are found on flat lands, situated from 250 to 300 meters above sea level and are of primary importance for the agriculture in the region. These are the areas spread along the rivers Vardar, Strumica, Trkanja and Kriva Reka. The other 52% of the total surface is sloped, and 2% is with hills. The altitude ranges between 64 and 2.157 meters above sea level. (Highest peak is Zelen Breg on Mt. Kozuf). The particular geographic and topographical position of the South-East region is characterized by two climactic zones. The Sub-Mediterranean zone with high or low overlaps of Eastern continental climate, interlace that gives the region a special earmark - long and hot summers with high temperatures during the day, reduced amount of rain, with lower winter temperatures and winds blowing from all directions. Strumica’s micro-region is characterized by long period of sunny and intensively bright days, which positively impact the fructification. There are around 230 days of sun annually, whereas the sun reflection lasts on average 2,377 hours in a year. There is a fog in a maximum of 20 days. The micro regions of Radovish and Konche are characterized by relatively continental climate. Due to height difference (400-707 meters above sea level) particular climate elements vary between Mediterranean climate in the fields and mountainous climate in the mountains. Gevgelija’s micro-region is characterized by Mediterranean to continental climate, ensuring warm days throughout the year. This micro-region is the sunniest part of the country, with over 240 sunny days per year. 3.3.2 HIDROGRAPHIC CHARACTERISTICS The River Strumica flows through Strumica, Cironska, and Lebnica River until the Bulgarian border. It covers 1,649 kilometers or 6.4% of the territory of Macedonia. Its main tributaries are the rivers Vodocha, Turija, Radovishka, and Podareshka. The total amount of water in this river is estimated to be around 132 million m3. Dojran Lake is the smallest natural lake in Republic of Macedonia, and belongs to the river system of Vardar, which flows into Republic of Greece. The lake is an isolated ecosystem with very specific flora and fauna. From the surface waters, a main river in the region is Luda Mara, characterized with constant flows of water. A reservoir Lake Paljurci is constructed along the river for irrigation of the nearby fields. The reservoir lake has a volume of 2.8 х 106 m3. In Dojran municipality at Luda Mara, there is a similar reservoir lake called Chinarli with an area of 0.25х106 m3.

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3.3.3 FLORA AND FAUNA The richness and heterogeneity of the ecosystem is the base of the biological diversity in the South-East region. It is a result of the specific geographical position, climate, soil, geology and other characteristics of the region, accompanied with the changes that have occurred over the geological periods on its territory. 3.3.4 FORESTS The forest eco-systems in Strumica micro-region cover the territory of Belasica and Ograzden mountains, and are dominated by deciduous forests mostly composed of oak, black and white hornbeam, chestnut and beech trees. There are few evergreen forests mostly found in the higher parts of the mountains, dominated by pine, fir and juniper trees. Mixed forests are found on smaller area and they are not common for the region. The oak, beech, and the ash forests dominate the micro-region of Radovish and Konche. In the municipality of Konche, forests cover 9,429 ha, with additional 2,313 ha of pastures. In the municipality of Radovish, forests cover 21,000 ha. Larger forest complexes are present around Stara and Oravichka River, where oak, beech, and conifers dominate the forestry. Besides wood, other (secondary) forest products are being used such as: oak lichen, cantarion, St. John’s wort, yarrow, the mushroom boletus etc. 3.3.5 AVAILABLE NATURAL RESOURCES The Radovish and Konche regions are characterized by supplies of mineral non-metal raw materials, such as decoration stones used for construction (quartz and clay). Mineral metal raw materials present in Radovish municipality include iron and zinc ore, copper, gold, silver, chrome and uranium, whereas in Konche municipality there is limestone, marble and copper. In Strumica micro-region, the mine for exploitation of feldspad “Hamzali” is of a sodium character, and is the only one found on the territory of Macedonia and the Balkans. The mine for

CaCO3 exportation “Memeshli” is a site of marbled limestone, one of the rare sites in the Republic of Macedonia. An investigation is being conducted on Ograzden Mountain in the immediate vicinity of the populated area Ilovica, where there are indications for potential stores (copper and gold). 3.3.6 CONCESSIONS The Law for Concessions and other types of Public Private Partnerships (Public journal of Republic of Macedonia, No.6/12) regulates the conditions, forms, and procedures for granting concessions. The concession may be in terms of construction, providing public services and use of goods of general interest for the Republic of Macedonia. The Law on Concessions regulates the general conditions for granting concessions. There are special rules determined by the Law of Mineral Resources (Public journal of Republic of Macedonia, No. 132/13), that regulate the conditions for awarding concessions for exploitation of mineral resources and special provisions in the Law for Water (Public journal od Republic of Macedonia, No. 87/08), regulating the concessions of lakes and streams. The Ministry of Economy has developed a system for “e-Concessions” through which it grants concessions for detailed geological research and exploitation of mineral resources after a decision of the Government of Republic of Macedonia to publish a Public Call. The system provides information on the electronic tender documentation, electronic preparation and submission of the required documents and participation in e- auction of all involved parties. Entities participating in the procedure receive notifications through automatic and independent system of mail delivery.

SOUTH-EAST REGION

All public roads according to their national, economic, trade, and traffic importance and their construction are divided into state and municipal roads. According to their national, economic, trade, and traffic importance, as well as their construction, part of the state roads are categorized into highways, express roads, and arterial roads (A-roads), and serve to connect Macedonia with the European road network, maintain the continuity of the international road network (international corridors – E roads), and connect the road network with the international road border crossings, as well as traffic connection with the roads of the neighbouring countries. The state roads are divided into: A – Roads (highways, express roads and arterial roads), P1 – Regional roads of first category, and P2 – regional roads of second category. Figure 3.4-1 Road network of Republic of Macedonia by regions

Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015 Table 3.3. provides a list of all the roads in the South-East region. Table 3-3 A – Roads (highways, express roads, arterial roads) No. Name Route Border crossing with R. Serbia (“Tabanovce”) – Kumanovo – Veles – Negotino – 1 A1 Demir Kapija – Gevgelija – border crossing with R. Greece (“Bogorodica”) and section Gradsko – Prilep (connection with A2) Border crossing with R. Kosovo (“Blace”) – crossroad Stenkovec – ring road Skopje 2 A4 – Petrovec – Miladinovci – Sveti Nikole – Shtip – Radovish – Strumica – border crossing with R. Bulgaria (“Novo Selo”)

SOUTH-EAST REGION

Table 3-4 Р1 – Regional roads No. Name Route Border crossing with R. Serbia (“Tabanovce”) – Kumanovo – Veles – Negotino – 1 P1103 Demir Kapija– Gevgelija – border crossing with R. Greece (Bogorodica) and section Gradsko – Prilep (connection with A2) Border crossing with R. Kosovo (“Blace”) – crossroad Stenkovec – ring road Skopje 2 P1102 – Petrovec– Miladinovci – Sveti Nikole – Shtip – Radovish – Strumica – border crossing with R. Bulgaria (“Novo Selo”) Davidovo (connection with P1102) – Udovo (connection with A1) – Valandovo – 3 P1105 Rabrovo – Dojran – border crossing with R. Greece (Sretenovo) and section Star Dojran – border crossing with R. Greece (Nikolikj) 4 P1108 Gevgelija (connection with P1102) – Moin - Konsko – Smrdliva Voda – SC Kozuf 5 P1109 Gevgelija (connection with A1) – Bogdanci – Furka (conenction with P1105) 6 P1302 Delchevo (connection with A3) – Pehchevo – Berovo – Dabile (connection with A4) Radovish (connection with A4) – Podaresh – Vladimirovo (connection with P1302) – 7 P1310 Berovo –border with R. Bulgaria (GP Klepalo) Strumica (connection with A4)- Rabrovo – Valandovo – Balinci – Marvinci 8 P1401 (connection with A1) 9 P1402 Kuklish (connection with P1401) – Bansko – Novo Konjarevo (connection with A4) Connection with A4 – Radovish – Vladevci – Vasilevo – Strumica (connection with 10 P1403 A4) Table 3-5 Р2 – Regional roads No. Name Route Radovish (connection with P1310) – Plachkovica – Argulica (connection with 1 P2431 P2334) 2 P2432 Strumica (connection with A4) – Veljusa – Vasilevo (connection with P1403) Radovish (connection with A4) – Konche – Zagorci – Leskovica (conenction with 3 P2433 P1103) – Selce –Sofilari (connection with A4) 4 P2434 Connection with P1401 – Rich – connection with P2433 Table 3-6 Р29 – Regional roads No. Name Route 1 P29177 Connection with A1 - Miravci Podaresh (connection with P1310) – Jargulica – Pokrajchevo – Zleovo – 2 P29471 Radichevo – (connection with A4) Table 3-7 Local road network 2010-2014 (km) Republic of Macedonia South-Eastern Region 2010 9.252 969 2011 9.300 977 2012 9.355 957 2013 9471 888 2014 9513 893 Source: State Statistical Office, The Regions in the Republic of Macedonia, 2015

SOUTH-EAST REGION

3.6.1 AGE AND GENDER STRUCTURE OF THE POPULATION With a population density of 63, 2 км2 , the South-East region is on the fifth place compared to the other regions, after Skopje, Polog, North-Eastern and South-Western region. The average age of the population in the South-East region is identical with the national average, which is 38 years. Figure 3.6-1 Age structure of Republic of Macedonia by regions

Source: State Statistical Office, The Regions in the Republic of Macedonia, 2015 Figure 3.6-2 Population pyramid of the South-East region

80+

70-74 Men Women

60-64

50-54

40-44

30-34

20-24

10-14

0-4 8,000 6,000 4,000 2,000 0 2,000 4,000 6,000 8,000 Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015

SOUTH-EAST REGION

3.6.2 EDUCATIONAL STRUCTURE OF THE POPULATION

Table 3-8 General information according to the level of education

Indicators 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Primary education Number of primary schools 119 119 119 119 118 118 119 Teachers in primary school (%) 8,4 7,2 9,2 9,2 9,2 9 9 Enrolled students in primary education 7,9 7,9 7,9 7,8 7,8 7,4 7,4 (%) Number of students per school 139 136 132 129 126 120 120 Number of students in primary 12 11 10 10 10 9 9 education per teacher Secondary education Number of secondary schools 7 7 8 8 8 8 8 Professors in secondary education (%) 6,3 6,3 6,4 6,3 6,4 6,4 6,4 Enrolled students in secondary education 7,4 7,5 7,4 7,4 7,4 7,3 7,3 (%) Graduated students in secondary 6,9[6] 6,8[7] 7,5[8] 7,2[9] 6,9[10] 7,5 7,6 Education (%) Number of students in secondary 16 16 15 14 14 13 14 education per professor High education Index 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Number of enrolled students 4.344 4.380 4.814 / / / / Number of graduated students 596 638 653 795 661 661 751 Number of graduated students per 1.000 3,5 3,7 3,8 4,6 3,8 3,8 4,3 population Source: State statistical office of the Republic of Macedonia (Census 2002 and “The Regions in the Republic of Macedonia2012 and 2014” “Regions in Republic of Macedonia 2015” Table 3.9. Provides the total number of enrolled students in primary and high school in the South-East planned region comparing the same with the national averages for the school years 2008/09-2014/15 Table 3-9 General information according to the level of education Indicators 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Number of enrolled students in primary education in 216.180 210.381 204.439 198.856 195.311 191.051 192.165 Macedonia Number of enrolled students in primary education in the 16.798 16.539 16.148 15.693 15.318 14.899 14.276 South-East region % of enrolled students on 7,77 7,86 7,90 7,89 7,84 7,80% 7,43% national level Number of enrolled students in 93.843 95.343 94.155 93.064 89.884 86.418 83.522 high school in Macedonia Number of enrolled students in high school in the South-East 7.155 7.084 7.026 6.889 6.613 6.415 6.098 region % of enrolled students on 7.155 7,43 7,46 7,40 7,36 7,42% 7,30% national level Source: State Statistical Office of Republic of Macedonia, „Regions in the Republic of Macedonia 2012, 2014 and 2015. In the school year 2014/2015 the number of elementary schools in the South-East region was 119, while the number of high schools was 8. According to the number of graduated students per 1.000 inhabitants equal to 4, 3; the South-East region is at a fifth place compared to the other eight planned regions.

SOUTH-EAST REGION

3.6.3 ECONOMIC ACTIVITY OF THЕ POPULATION Table 3-10 Activity rate of the population at the age of 15, and above SЕ SЕ SЕ SЕ RM RM RM RM Region Region Region Region 2011 2012 2013 2014 Population capable for 1.656.215 140.279 1.669.965 140.857 1.672.460 140.938 1.673.494 140.921 working Activity rate 56,8 71 56,5 70,7 57,2 69,9 57,3 66,9 Employment 38,9 64,4 39 60,9 40,6 56,8 41,2 52,9 rate Unemploymen 31,4 9,3 31 13,8 29 18,8 28 20,8 t rate Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015 Figure 3.6-3 Activity rate of population in the Republic of Macedonia by regions

Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015 In 2014, the South-East region had the second highest employment rate of 52, 9% compared to the other regions. With unemployment rate of 20, 8%, the South-East region is far beyond the national average of 28%. Table 3-11 Unemployment rate (%) South- South- South- SouthEast RM RM East RM East RM East region region region region 2010 2011 2012 2014 Total 32 11,5 31,4 9,3 31 13,8 28 20,8 Man 31,9 12,4 31,8 8,8 31,5 12,6 27,6 21 Women 32,2 10,4 30,8 9,9 30,3 15,2 28,6 20,6 Urban part 31,6 22,4 32,1 19,1 30,8 23,7 29,2 31,2 Man 31,7 24 32,6 17,9 31,5 20,4 29 32,6 Woman 31,5 20,3 31,4 20,6 29,7 27,6 29,4 29,5

SOUTH-EAST REGION

Rural part 32,6 3,7 30,3 3,4 31,4 7,5 26,5 12,4 Man 32,1 4,1 30,7 3,3 31,4 7,8 26,1 12,2 Women 33,6 3,3 29,6 3,6 31,4 7 27,3 12,7 Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015 In 2014, male unemployment rate among men was 21 %, whereas among women it was 20, 6 %. The South-East region has the lowest unemployment rate in rural areas, compared to all other regions (12, 2 5%). The unemployment rate among women in the rural areas is 12, 7%. Figure 3.6-4 Active jobseekers by age and gender

60+ 55-59 50-54 45-49 40-44 Men Women 35-39 30-34 25-29 20-24 15-19 0 100 200 300 400 500 600 700 800 900 Source: Employment Service Agency, Republic of Macedonia, 2015. Figure 3.6-5 Passive jobseekers by age and gender

60+ Men Women 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 200 400 600 800 1000 1200 1400 1600 Source: Employment Service Agency, Republic of Macedonia, 2015. The total number of registered unemployed people is 17.789 (active and passive employment seekers). It can be noticed that the number of unemployed persons is higher among men (10.025) than among women (7.764). Table 3-12 Number of unemployed people (active employment seekers) in the South-Eastern planned region according to the level of education

Total number of registered persons Total Women Man With no education and with primary education 1.002 499 503 Incomplete secondary education 2.333 1.172 1.161

SOUTH-EAST REGION

Completed secondary education 2.594 1.031 1.563 High education (two years after secondary education) 232 105 127 High Education 1.083 656 427 MA / MSc. 50 27 23 PhD 2 1 1 TOTAL 5.929 2.702 3.227 Source: Employment Service Agency, Republic of Macedonia, 2015. In the South-East region, the highest number of unemployed people are the ones with secondary education (2,594), followed by people with no education, or primary education (2,333). The number of unemployed people with high education is as well high (1083). Among men the highest unemployment rate can be found in the group with no education and/or primary education, while among women, the highest number of unemployed are among the ones with completed secondary education (1031). The number of unemployed women with high education (656) is higher than the number of unemployed men with high education (427). Table 3-13 Average net salary per employee, 2014 (in Dinars)

2012 2014 Sectors RM SE Region RM SE Region Agriculture, forestry, fishery 15.641 13.188 15.843 13.871 Mine work, and stone digging 22.180 24.240 : Processing industry 15.300 12.440 16.177 13.021 Electricity, gas, steam supply, and air- 35.818 36.740 : conditioning Water supply, waste management and 18.677 15.034 18.959 15.363 environmental repair Engineering 16.375 11.476 18.589 13.494 Wholesale, and retail trade; repair of cars and 18.982 17.318 19.794 15.576 motor cycles Transport and storage 21.191 14.069 22.923 14.613 Accommodation and catering services 15.063 15.873 15.015 15.093 Information and Communications 35.481 23.481 34.692 29.670 Financial, and insurance activities 37.397 30.436 38.791 31.406 Activities with immovable property 24.998 26.489 : Professional, scientific, and technical activities 28.096 : 29.332 : Administrative and service activities 14.066 12.373 14.503 12.626 Public administration and defence; obligatory 24.966 23.251 25.325 23.259 social insurance Education 21.235 19.652 21.501 19.746 Activities for health and social protection 22.399 19.525 23.736 20.210 Art, entertainment, recreation 17.731 21.045 18.230 19.664 Other service services 23.155 18.620 23.876 17.176 Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015

SOUTH-EAST REGION

The average net salary paid per employee in the South-East region in 2014 was 16.600 denars or 79.4% of the national average. The highest average net salary per employee in the Southeast region was found in the financial sector and health insurance in the amount of 31 406 denars.

3.7.1 GROSS-DOMESTIC PRODUCT In 2013, the South-East region generated 9, 2 % of the national GDP. Compared to the national average of GDP per capita (index=100), the South-East region has an index of 109, 6 and is ranked on the third position after Skopje region, with an index of 143, 5, and the Vardar region with an index of 110, 6. The gross-domestic product per capita is 266.524 denars and is above the national average – Table 3.14.

Table 3-14 Gross-domestic product (in MKD) Gross domestic Gross domestic Structure of Gross domestic product (in product per gross-domestic product per million denars) capita (in denars) product capita MK= 100 Republic of Macedonia 501.891 243.161 100,0 100,0 Vardar 41.260 268.819 8,2 110,6 East 40.449 226.898 8,1 93,3 South-West 39.378 178.726 7,8 73,5 South-East 46.211 266.524 9,2 109,6 Pelagonia 56.530 243.279 11,3 100,0 Polog 37.735 118.672 7,5 48,8 North-East 26.613 151.462 5,3 62,3 Skopje 213.715 348.915 42,6 143,5 Source: State Statistical Office, 2015 Table 3-15 Gross- investment in basic assets, by regions, 2013

Milion denars Structure (%) Republic of Macedonia 119.003 100,0 Vardar 8.179 6,9 East 10.462 8,8 South-West 5.597 4,7 South-East 6.390 5,4 Pelagonia 10.745 9,0 Polog 7.558 6,4 North-East 2.482 2,1 Skopje 67.589 56,8 Source: State Statistical Office, 2015 Observed by regions, according to total national investments in basic assets, South-East region is on the fifth place with participation of 5, 4% (2013).

SOUTH-EAST REGION

3.7.2 ACTIVE BUSINISS ENTITIES Figure 3.7-1 Active business entities (2014)

5000 Micro Small Medium Large 80% Micro Small Medium Large 70% 4000 60% 3000 50% 40% 2000 30% 1000 20% 10% 0 0% 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 Source: State Statistical Office, 2015 According to data from the State Statistical Office, the number of active business entities in 2014 in the South-East region is 5.969 and it participates with 8, 4% from the total number of active business entities in Republic of Macedonia, which is 70.659. Almost 85% from the total number of active business entities in the South-East region are businesses entities with 1-9 employees. Figure 3.7-2 Active business entities 2014

Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015 The structure of business entities by municipalities and dominant industries is given separately for each of the municipalities. In the South-East region, from the total number of 5.969 active business entities, the sector Wholesale and retail trade; repair of cars and motorcycles has the largest number of active business entities (2.394); the food processing industry is second with 694 business entities, third is the transport and storage with 596 active business entities.

SOUTH-EAST REGION

Figure 3.7-3 Active business entities by number and sector for South-East region (2014)

Accommodation and food service activities Transportation and storage Wholesale and retail trade Civil Engineering Manufacturing Agriculture, Forestry and Fisheries

0 500 1000 1500 2000 2500 3000

Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015 3.7.3 TRADE EXCHANGE Business entities in the South-East region have made export in amount of 414, 5 million USD, which is 7, 7 % from the total export of the Republic of Macedonia in amount of 4.934 million USD in 2014. In the same time, the import was with value of 320 million USD, which is 4, 4 % from the total import of the Republic of Macedonia in amount of 7.272 million USD. According to this, the business entities form the South-East region have made surplus from the external trade exchange in amount of 94, 3 million USD for 2014. Figure 3.7-4 External trade 2014

Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015

With regard to the number of households in the region, those who used computers and internet in 2014 are the highest in the South-East region, (with 73% and 71%). Those who use a computer and the internet at the age between 15 and 74, is again highest in the South-Eastern region (78%). Table 3-16 Number of households that used computer and internet

2012 2013 2014 Macedonia South-East Macedonia South-East Macedonia South-East Computer 64 73 67 72 67 73 Internet 58 71 65 70 68 71 Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015

SOUTH-EAST REGION

Table 3-17 Persons at the age of 15-74 who used computer and internet

2012 2013 2014 Macedonia South-East Macedonia South-East Macedonia South-East Computer 60 80 66 76 68 78 Internet 57 80 65 75 68 78 Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015 Figure 3.8-1 Internet and computer

Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015

Regional statistical data indicate that in 2014, the agricultural area in the South-East was 9.5% of the total agricultural area of Republic of Macedonia. According to data on the vineyard area, the South-East region has a territory of 4,408 (ha), which is 20.7% of the total vineyard area, and comes second after the Vardar region. The total area of agricultural land in the South-East region increased from 91,064 (ha) in 2010 to 124.674 (ha) in 2014. Moreover, the total ploughed area increased from 56,907 (ha) in 2010, to 59.264 (ha) in 2014. During the same period, the areas classified as ploughed areas, gardens, and fruit gardens have increased. Table 3-18 Area by categories for use (hectares) Macedonia South-East region Agricultural area 1.263.155 124.674 Ploughing area - total 511.579 59.264 Plough field and gardens 413.249 49.875 Fruit yards 15.309 1.697 Vineyards 23.061 5.618 Meadows 59.960 2.074 Pastures 751.086 65.290 Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015

SOUTH-EAST REGION

Figure 3.9-1 Structure of agricultural area

Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015 Figure 3.9-2 Livestock structure

Source: State Statistical Office, the Regions in the Republic of Macedonia, 2015

In the South-East region there are a great number of cultural events such as summer and winter festivals, concerts, art exhibitions, plays and poetry readings. Among the most important events are the Valandovo Folk Festival, The Strumica Carnival, Smokvijada (Fig Festival) Gevgelija; Day of Leek in the villages of Gradashorci and Vasilevo; The festival of the Smolare Chestnut in Novo Selo; The 1st of May races in the village of Stojakovo,

SOUTH-EAST REGION

Bogdanci; The Festival of old folklore “Gajda” in the villages of Injevo, Radovish; Manifestation “Warm Cultural Wave” (Topol kulturen bran) in Konche; Manifestacion “Dojran handshaking” (Dojranski rakuvanja);Holiday of the Municipality of Bosilovo etc. All municipalities observe religious holidays: Christmas Eve, Epiphany, Saint Trifun, etc. There is also a great number of sport events with many opportunities for sport and recreation.

According to the number of beds, the South-East region with 6.088 beds is ranked third after the South- West and Pelagonia region. In 2014 in the South-East region 74.071 domestic tourists have been registered (23, 8%) and 50.636 foreign tourists (11, 9%). The South-East with total number of 401.065 overnights participates with 18, 2% in the total amount of overnights in the Republic of Macedonia and is ranked third after the South- West and Skopje regions. Table 3-19 Tourism

SE SE SE RM RM RM Region Region Region 2012 2013 2014 Number of rooms 26.877 2.298 26.887 2.346 27.422 2.374 Number of beds 70.287 6.088 70.297 6.298 71.225 6.277 Total number of tourists 663.633 106.978 701.794 109.982 735.65 124.707 Domestic tourists 312.274 58.761 302.114 59.977 310.336 74.071 Foreign Tourists 351.359 48.217 399.68 50.005 425.314 50.636 Total number of overnights 2.151.692 305.163 2.157.175 327.279 2.195.883 401.065 Domestic 1.339.946 219.05 1.275.800 231.87 1.273.370 304.148 Foreign 811.746 86.113 881.375 95.409 922.513 96.917 Source: State Statistical Office, The Regions in the Republic of Macedonia, 2015 3.11.1 LAKE TOURISM The South-East region is rich in water resources. There are natural and artificial lakes, waterfalls and many natural springs. All provide excellent conditions for development of sports, recreational and fishing tourism. Dojran Lake is one of the most beautiful natural lakes in Macedonia. Its eco-system is home to over 80 different types of birds, most of which are endemic species. The artificial lake “Mantovo”, situated in the municipality of Konche, makes the region attractve for fishing tourism. The reservoir lakes “Turija” and “Vodocha”, in the municipality of Strumica, and the lake “Paljurci” in the municipality of Bogdanci attract the attention of a great number of visitors, fishing enthusiasts and recreational tourism. 3.11.2 SPA AND RURAL TOURISM The South-East region is rich with thermo-mineral potential, especially with regard to geothermal energy, and provides excellent conditions for relaxation and health recovery. Around 12 km south-east of the city of Strumica, is the village of Bansko and in its immediate vicinity are the thermo-mineral springs of Bansko spa, and remnants from the Roman thermae. This Roman spa is thermo-mineral health recovery source place dating from ancient times, and is one of such rarely preserved Roman monuments in Europe. On a surface of 1,000 m2 ten rooms have been discovered, whose walls with height of 2 to 6.7 meters are preserved. The thermal baths had rooms for changing of clothes, a sauna, and swimming pools with hot and cold water. It used the thermo-mineral waters from Parilo spring 50 meter south of the thermae. The Roman thermae most probably dates from the third century, from the time of the Roman emperor Karakala, famous for constructing and reconstructing thermaes throughout the empire.

SOUTH-EAST REGION

The spa at Bansko is located 250 meters above sea level; it has changing continental climate, and represents the most significant location in the region for spa tourism. Out of the total five thermomineral springs, only the biggest one is professionally piped. It flows into the main bath, so called “Turkish bath”, while the other four flow out freely without any tapping. The temperature of the water in the main spring which supplies the “Turkish bath” is around 71°C and does not vary throughout the year, proving that the water originates deep under the ground without any atmosphere influence. The waters in the spa are considered healing for different types of diseases, mainly rheumatic. In Gevgelija micro-region, 5 km south-west of Gevgelija, with 59 meters above the sea level Negorski spa (Negorski banji) are found. This is the lowest spa in the region. The spa has two springs – Vrela Banja with temperature of 40°С and Studena Banja with temperature of 38°С. The water contains calcium, magnesium, rubidium, caesium, radon and other minerals. The collection of data about the therapeutic power of the mineral waters from Negorski Banji date from 1864. Compared to most spas in Macedonia (which originate from the Roman period), this spa is considered to have been exploited for the first time by Shukri Pasha, who was the first to build two swimming pools. Proofs of the therapeutic power of the water date from 1950, when the spa recovery department was constructed. As part of Negotinski Banji, in fashionably equipped rooms, there is a center for various rehabilitative and physical therapies. The capacity of the complex is 336 beds, and as part of the complex there are also two covered swimming pools and couple of open ones. Situated in the base of Kozuf mountain, Negorski Banji is also surrounded by 36 hectares of ashen forest that creates a natural park. With their clean environment and rich waters, the region , attract the attention of visitors, and this mainly applied to the Smolare and Koleshino waterfalls, situated in the municipality of Novo Selo. Smolare waterfall is located in the lower basin of the Smolarska River, which is a right tributary of the River Struma, at 600 meters above sea level in the region of the village of Smolari. The total height of the Smolare waterfall is 39.5 meters. At the bottom, a long plunge pool is formed, 5 meters long and 11 meters wide with a depth of between 0.5 and 0.7 meters. Koleshino waterfall is located in the lower basin of the River Baba, at 500 meters above sea level. With height of 15 meters, it is one of the highest waterfalls in Macedonia, with width of around 6 meters. It is a tectonic waterfall that was created in granite stones. Opposite the Kolesino waterfall, at a distance of around 100 meters, there are several smaller waterfalls spread in a line at heights of about two to four meters, belonging to his central drainage- basin. 3.11.3 MOUNTAIN AND HUNTING TOURISM The South-Eastern region has an abundance of original natural beauties with a basic potential for development of tourism. The mountain regions of Plachkovica, Ograzden, and Kozuf mountain offer extraordinary conditions for the development of winter, hunting, sport and recreational tourism. Plachkovica mountain is full of endemic plants as well as medicinal plants and spices. The great surfaces covered with forest, the diversity of the flora and the fauna, the diverse types of wild animals and birds attract many fans of hunting, and safari tourism. In Strumica hunting area, precisely in the region of Radovish, there are few hunting centres: “Smiljanci”, “Prnalija” and “Podaresh”. At the territory of the municipality of Bogdanci there are hunting centers rich with wild animals, such as wild boar and rabbits, as well as and birds of the following types: partridge, pheasant, doves, and quails which attract many hunters from Europe. Every year in the municipality of Bogdanci, there is an International grand prix clay-pigeon shooting tournament. Kozuf mountain is located at the border between Macedonia and Greece, and its peak, Zelenbreg, is 2,200 meters high. The visitors of Kozuf admire the clean air, the sun and the natural. With the newest ski center in Macedonia and it is located only 210 km from Skopje, and 130 km from Thessaloniki, on a territory of 2,000 ha. The center is equipped according to highest standards, and has excellent skiing conditions. At the moment, it has two ski lifts with the capacity for 3000 skiers/per hour, one six seater, a restaurant, a sheepfold, 16 apartments, and 16 km-long ski tracks. This is the only ski center in Macedonia that has equipment for artificial snow. The well-built and broad ski terrains, the location, and the natural resources of Kozuf mountain have great potential for the mountain’s development as a new attractive winter tourist destination in Macedonia.

SOUTH-EAST REGION

Except for the winter period, Kozuf is also attractive for the other seasons of the year. The mountain Kozuf offers great conditions for historical tourism, mountain biking, horse riding, paragliding, walking and hunting, and the damp at Tochnica River is planned to be used for fishing and kayaking. 3.11.4 CULTURAL TOURISM The geological, geographical, climactic and natural characteristics of South-Eastern region of the Republic of Macedonia have provided the existence of different civilizations and cultures throughout the centuries, starting from the pre-historic period, the ancient period of Macedonia, the Roman Kingdom, Byzantine, up to the middle-age Christian culture. In the South-Eastern region there are numerous famous historical sites and objects that need to be visited. In the municipality of Valandovo there are: the archaeological site Isar in the village of Marvinci, than “Idomena” – the underground cultural monument originating from the Roman period, somewhere from the end of IV century or the beginning of V century B.C, also Stakina cheshma which dates from the Roman period (III or IV century ad). In the municipality of Vasilevo, there is a prehistoric settlement dating back to the late neolith period that can be found in the archaeological site Stranata, near the village of Angelci, as well as the church “Sv. Petka” in the village of Trebichino, which originates from 1875 and represents a cultural monument with special historical and artistic values. The archaeological site Vardarski Rid (Vardar Hill) at the municipality of Gevgelija is multi-layered and dates from the Bronze Age up to the establishment of the Roman domination in the region. The numerous findings, material goods, construction and objects speak about the development of the Vardar valley, which was most likely named Gortinija. The archaeological findings from the locality Vardarski Rid are preserved at the museums in Gevgelija and Skopje. The monastery “Sveti Stefan” in the municipality of Konche dates from the year 1366. The icons and the iconostasis in the monastery were made by the famous zoographer Dimitar Andonov Papradishki. In the municipality of Novo Selo is the archaeological site “Crveno pole” located near the village of Barbarevo, with a settlement from the Roman and late classical periods with architectonic and sacral remnants which portray life from first till sixth century ad. In the village of Mokrino, a necropolis “Kjeramidarka” is found dating from the 11th century, which contains around 20 tombs with unique jewellery. In Radovish, the church “Sveta Troica” can be visited which was sanctified in 2003. The church can hold 600 worshipers and it represents one of the most beautiful, modern, and richest orthodox churches in the Balkans and beyond. Seven kilometers from Strumica is the village of Veljusa, where the monk Manuil built the monastery in 1078 and dedicated it to the Virgin Mary. The monastery “Sveta Bogorodica Milostiva” has preserved its original architecture until today. The depiction of the church’s life is portrayed in three time periods. The events depicted at the altar, the space below the cupola in the pillars and the walls, the architecture and the chapel date from 1085, the porch dates from 1164, and the naos from 19th century. The complex of churches “Sv. Leontij” is located in the village of Vodocha, 4 km from Strumica. Three churches are preserved at the site (Eastern, Western, and Central), depicting with three phases in the interior, the architectural remnants, the joint objects, the monastery complex, the living room, the trade objects, two bathrooms, and the multi-layered Christian necropolis dating from between 7th till 9th century. The frescoes from Vodocha, dating to 1018 and 1037, are among the masterpieces of middle-age and Byzantine art in general. The famous site Carevi kuli, located above Strumica, with its thick walls, represents a monument for the fall of the middle-age Macedonian country of Tsar Samoil in 1018. Lately, an archaeological site has been discovered, dating back from pre-historic time until the middle ages. According to some opinion, this could be remains from the ancient city of Astraion, which was mentioned first in 183 B.C. and represents a predecessor of the early Christian Tiveriopol and today’s city of Strumica. All findings, along with the discovered pre-historic settlement, point out that this site was occupied by different civilizations in period of around 7000 years.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.1.1 BRIEF DESCRIPTION OF THE MUNICIPALITY

Municipality of Bogdanci spreads at the very south part of the Republic, on the left bank of river Vardar. Morphologically, the municipality is flat in its base with excellent fertile land which makes it one of the best agrarian areas, especially for production of horticultural crops. Municipality of Bogdanci covers an area of 6.700 ha, 1.561,4 ha of which are arable land, 2.107,7 ha are pastures and 2.719,5 ha are forests. It borders the municipalities of Dojran, Valandovo and Gevgelija, and the state border line with Republic of Greece. According to its area, it belongs to the group of small-sized municipalities, but has the largest average population density of all municipalities in the South-East region (78 inhabitants/km2). According to the territorial organization of the local government units of 2005, the territory of Municipality of Bogdanci covers 4 populated surrounding areas: Bogdanci, Stojakovo, Selemli и Gjavato.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.1.2 GENERAL INFORMATION

HQ of the Municipality Bogdanci Address St. "Marshal Tito", no. 62, 1484 Bogdanci Location (latitude - longitude) N 41° 12’ E 22° 34’ Contact Tel. +389 (0)34 222-333; fax. +389 (0)34 221-077 Email [email protected]

Web site www.bogdanci.gov.mk Elevation 65 m Area 114 km2 Population 8.707 Municipality celebration day October 10 (Liberation of Bogdanci)

4.1.3 TRANSPORT NETWORK

Table 4-1 Transport network Indirect access to the A1 motorway Highways, expressways and motorways through regional road R1109 Regional roads that pass through the Municipality Р1109 Distance from the municipal airport (km) Alexander the Great - Skopje 145 km St. Apostle Paul - Ohrid 258 km Airport Thessaloniki, Greece 110 km Sofia Airport, Bulgaria 278 km Distance from the municipal railway Railway Station Gevgelija 10,6 km Railway station Miravci Railway station Stip Distance of the Municipality from port (km) Port of Thessaloniki, Greece 86,8 km Port of Durres, Albania 422 km Port Burgas, Bulgaria 572 km Distance from the municipal border crossing (km) Greece 6,3 km Bulgaria 67,4 km Serbia 177 km Kosovo 183 km Albania 280 km Distance of the Municipality from major cities (km) Skopje 164 km Thessaloniki 86,8 km Sofia 275 km Belgrade 565 km Zagreb 953 km Istanbul 673 km Vienna 1.173 km Budapest 937 km

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.1.4 HUMAN RESOURCES AND EDUCATION

Population: 8.707 inhabitants (according to the census of 2002). Gender structure: 4.377 men, 4.330 women. Ethnic structure of the population: 92,95% Macedonians, 6,03% Serbs, 0,4% other. 4.1.4.1 Age structure of the population (2014) Figure 4.1-1 Population pyramid – Bogdanci (2014)

80+ 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 -400 -300 -200 -100 0 100 200 300 400

Men Women

Source: State Statistical Office, The Regions in the Republic of Macedonia, 2015 4.1.4.2 Active and passive job seekers Number of unemployed people: 407 (as of 31.11.2015 ). Educational institutions: At the territory of the municipality there is one high and two primary schools. Figure 4.1-2 Unemployed people - Bogdanci

Women

Men

0 50 100 150 200 250

Active job seekers Passive jobseekers

Source: Employment Service Agency, Republic of Macedonia, 2015.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.1.4.3 Age structure of the unemployed Figure 4.1-3 Active job seekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 5 10 15 20 25 30 35 40 45 50

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015.

Figure 4.1-4 Passive jobseekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 5 10 15 20 25 30

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015.

4.1.4.4 Educational structure of the unemployed

Unemployed by education Total Men Women Doctor of science Masters of Science 5 2 3 High education 44 19 25 Higher School 8 3 5 Completed secondary education 103 48 55 Incomplete secondary education 69 42 27 Completed eighth and without education 178 87 87 Total 407 201 202

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.1.5 LOCAL ECONOMY

Number of active business entities: 288. Figure 4.1-5 Active business entities -Bogdanci

250 200 150 100 50 0 2009 2010 2011 2012 2013 2014

Micro Small Medium Large

Source: State Statistical Office, 2015 Dominant industries: agriculture, transport, textile industry. The numbers of business entities in the dominant industries are given on Figure 4.1-6 Figure 4.1-6 Number of business entities in the dominant industries– Bogdanci

45 Agriculture, Forestry and Fisheries 40 35 Mining and quarrying 30 Manufacturing 25 20 Civil Engineering 15 10 Transportation and storage 5 0 Accommodation and food service 2012 2013 2014 activities

Source: State Statistical Office, 2015 Main comparative advantages of the Municipality: clean and healthy environment, cross border region, nearby the well developed transport network. Most important local enterprises: Breboteks, Noelplus, Boveks (textile industry); Sofija Bogdanci (graphic and print services), Stocarstvo, Agrolozar, Viviprom, Badjo, Turan, Green houses Milbos, Ekosto (agriculture), Rive transport, Sht, Rel-mark, Rive sped, Pan-stop, Tranzit (transport). Most important foreign investors: Taurus farms (Germany) – cultivation of apple like fruits and fruits with stone cells in flesh. Mineral resources: quartz, feldspar, diabase (non mineral raw materials). Tourism and catering industry: 1 hotel, 6 restaurants and pizza restaurants, 6 coffee bars and 1 night clubs. 4.1.6 INDUSTRIAL ZONES AND LOCATIONS FOR INVESTMENT

There are two industrial zones in the municipality: 1. “Purchase distributive centers” for fresh fruits and vegetables, production and distribution, 2. . Industrial zone Barta and one locations for investment in hotel complexes.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

Municipal contributions for investing in the industrial zones cover reduced fee for preparing the construction land depending on the number of jobs created by the investor accompanied with a strong commitment for maintaining the number of employed people for a period of 5 years (5-20 employees - 25%, 21-50 employees - 50%, 51-100 employees - 75%, more than 100 employees - 100%).

Figure 4.1-7 Industrial zones and locations for investment – Municipality of Bogdanci

Туристичка зона Паљурци Индустриска зона Барта Touristic zone Paljurci Industrial zone Barta

Индустриска зона откупно дистрибутивни центри за свежо овошје и зеленчук, производство и дистрибуција Industrial zone Purchase distributive centers for fresh fruits and vegetables, production and distribution

4.1.7 INDUSTRIAL ZONE PURCHASE DISTRIBUTIVE CENTERS FOR FRESH FRUITS AND VEGETABLES, PRODUCTION AND DISTRIBUTION

Area size: 20.550 м2. Percentage of construction: unconstructed. Ownership: 66% state, 34% private. Location (distance of the industrial zone to the Municipality center): 3, 5 km (Locality Gorni Cair). Infrastructure: accessible roads. Companies working in the industrial zone: No. Table 4-2 Features of the free construction sites- Bogdanci Max Compensation Area No. of allowed Initial price of for arrangement foreseen for Purpose construction Land area height the land (den / of construction construction lot up to m2) land – price (den (m2) attic (m) / m2) GP 1 5.828 3.429 15 61 250 G2,G3,G4 GP 2 3.507 2.153 15 61 250 G2,G3,G4 GP 3 4.188 2.650 15 61 250 G2,G3,G4

MUNICIPALITIES IN THЕ SOUTHEAST REGION

Figure 4.1-8 Urban plan outside the township for construction of the purchase distributive centers for fresh fruits and vegetables, production and distribution

Source: DUP outside the township, Municipality Bogdanci.

4.1.8 INDUSTRIAL ZONE BARTA

Area size: 56.547m2. Percentage of construction: unconstructed. Ownership: state Location (distance of the industrial zone to the Municipality center): 1 km Infrastructure: accessible roads. Companies working in the industrial zone: No. Table 4-3 Features of the free construction sites- Bogdanci Max Compensation Area No. of allowed Initial price of for arrangement foreseen for Purpose construction Land area height the land (den / of construction construction lot up to m2) land – price (den (m2) attic (m) / m2) More information GP 1 56.547 15 61 250 G2,G3,G4 in the Municipality

MUNICIPALITIES IN THЕ SOUTHEAST REGION

Figure 4.1-9 Location of the industrial zone Barta – Municipality Bogdanci

Индустриска зона Барта Industrial zone Barta

4.1.9 LOCATIONS FOR INVESTMENT IN HOTEL COMPLEXES

There are two locations for construction of hotels in the municipal detailed urbanistic plan. For both, municipal contributions apply in order to stimulate investments - reduced fee for preparing the construction land depending on the number of jobs created by the investor accompanied with a strong commitment for maintaining the number of employed people for a period of 5 years (5-20 employees - 25%, 21-50 employees - 50%, 51-100 employees - 75%, more than 100 employees - 100%). Table 4-4 Features of the free construction sites for investment in hotel complexes: Bogdanci Max Compensation Area No. of allowed Initial price of for arrangement foreseen for Purpose construction Land area height the land (den / of construction construction lot up to m2) land – price (den (m2) attic (m) / m2) GP 1 5.470 3.710 15 150 250 B5

GP 4 23.532 19.815 15 150 250 B5

MUNICIPALITIES IN THЕ SOUTHEAST REGION

Figure 4.1-10 Urban plan outside the township for construction of the religious building and hotel complex

Source: DUP outside the township,Municipality Bogdanci.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.2.1 BRIEF DESCRIPTION OF THE MUNICIPALITY

The municipality of Bosilovo is located in the middle part of the fertile Strumica field between the mountains of Ograzden and Belasica. It borders the neighboring municipalities of Strumica, Novo Selo, Vasilevo and Berovo. Bosilovo has a long history of a rural municipality that existed from 1952 until 1963, when it seized existing when rural municipalities were abolished. However, as its first establishment as a municipality was on the Aoril, 10th, 1952, the day is celebrated as the official the Municipality day. According to the territorial organization of the local government units of 2005, the territory of Municipality of Bosilovo covers 16 populated surrounding areas: Bosilovo, Turnovo, Radovo, Ilovica, Shtuka, Sekirnik Borievo, Monospitovo, Robovo, Ednokukjevo, Petralinci, Saraj Gecherlija, Drvosh, Hamzali and Staro Baldovci.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.2.2 GENERAL INFORMATION

HQ of the Municipality Bosilovo Address s. Bosilovo bb; 2431 Bossilovo Location (latitude - longitude) N 41° 26' E22° 43' Contact Tel. +389 (0)34 371-600; fax +389 (0)34 371-600 Email [email protected] Web site www.opstinabosilovo.gov.mk Elevation 250 m Area 149,5 km2 Population 14.26 Municipality celebration day April 10 (first founding of the Municipality of Bosilovo) 4.2.3 TRANSPORT NETWORK

Table 4-5 TRANSPORT NETWORK Highways, expressways and motorways Direct access to the main road A4. Regional roads that pass through the Municipality R1302 Distance from the municipal airport (km) Alexander the Great - Skopje 146 km St. Apostle Paul - Ohrid 271 km Airport Thessaloniki, Greece 160 km Sofia Airport, Bulgaria 221 km Distance from the municipal railway Railway Station Gevgelija 61 km Railway station Miravci 60 km Railway station Stip 80 km Distance of the Municipality from port (km) Port of Thessaloniki, Greece 138 km Port of Durres, Albania 435 km Port Burgas, Bulgaria 555 km Distance from the municipal border crossing (km) Greece 59 km Bulgaria 21,5 km Serbia 178 km Kosovo 196 km Albania 288 km Distance of the Municipality from major cities (km) Skopje 165 km Thessaloniki 138 km Sofia 217 km Belgrade 579 km Zagreb 966 km Istanbul 723 km Vienna 1.187 km Budapest 950 km

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.2.4 HUMAN RESOURCES AND EDUCATION

Population: 14.260 inhabitants (according to the census of 2002). Gender structure: 7.341 men, 6.919 women. Ethnic structure of the population: 95,72% Macedonians, 3, 47% Turks, 0,81% other. 4.2.4.1 Age structure of the population (2014) Figure 4.2-1 Population pyramid – Bosilovo (2014)

80+ 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 -600 -400 -200 0 200 400 600 800 Men Women

Source: State Statistical Office, 2015 4.2.4.2 Active and passive job seekers Number of unemployed people: 1.926 (as of 31.11.2015 ). Educational institutions: At the territory of the municipality there are three primary schools. Figure 4.2-2 Unemployed people - Bosilovo (2015)

Women

Men

0 200 400 600 800 1000 1200

Active job seekers Passive jobseekers

Source: Employment Service Agency, Republic of Macedonia, 2015.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.2.4.3 Age structure of the unemployed Figure 4.2-3 Active job seekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 10 20 30 40 50 60 70

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015.

Figure 4.2-4 Passive jobseekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 50 100 150 200 250

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. 4.2.4.4 Educational structure of the unemployed

Unemployed by education Total Men Women Doctor of science Masters of Science 2 0 2 High education 67 39 28 Higher School 19 12 7 Completed secondary education 418 185 233 Incomplete secondary education 260 159 101 Completed eighth and without education 1.160 87 410 Total 1.926 482 781

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.2.5 LOCAL ECONOMY

Number of active business entities: 243. Figure 4.2-5 Active business entities -Bosilovo

200

150

100

0 2009 2010 2011 2012 2013 2014

Micro Small Medium Large

Source: State Statistical Office, 2015

Dominant industries: agriculture, food industry, wood-processing industry Figure 4.2-6 Number of business entities in the dominant industries– Bosilovo

Agriculture, Forestry and Fisheries 40 35 Manufacturing 30 25 20 Civil Engineering 15 10 Transportation and storage 5 0 Accommodation and food service 2012 2013 2014 activities Source: State Statistical Office, 2015 Main comparative advantages of the Municipality: favorable conditions for development of agriculture and stockbreeding, traffic infrastructure and connections. Most important local companies: Dairy Zdravje- Radovo (food industry), AD Agrolozar. - Hamzali (production of grapes and peaches) Dalvina Winery (wine); AD Greenhouses Hamzali (Agriculture); Vistoni - ZP, Paralidovi (production of pallets, crates and other wood packaging) Majstor - Company, Imperial - Bosilevo (construction); Alu dizajn - Turnovo (production of aluminum locks and furniture). Most important foreign investors: Euromax Resources Ltd (Canada) - concession research and potential exploitation of ore (copper and gold) from the Ilovica mine on the mountain Ograzden. Mineral resources: quartz, feldspar, diabase (non mineral raw materials); gold, copper (mineral raw materials). Tourism and catering industry: 4 restaurants and pizza restaurants, и 1 coffee bar.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.2.6 INDUSTRIAL ZONES AND LOCATIONS FOR INVESTMENT

There are two industrial zones in the municipality of Bosilovo: (1) The Industrial zone “Robovo” has an excellent location near the main road A4 that leads towards the Republic of Bulgaria and (2) a new industrial zone named Hamzali Municipal contributions for investing in the industrial zones: The Municipal Council, upon investor’s request, can adopt a decision and allow special advantages and contributions provided the investment is strategic for the region. Figure 4.2-7 Industrial zones and locations for investment – Municipality Bosilovo

Индустриска зона Хамзали Industrial zone Hamzali

Индустриска зона Робово Industrial zone Robovo

4.2.7 INDUSTRIAL ZONE ROBOVO

Area size: 278.600 м2. Percentage of construction: mostly unconstructed. Ownership: 1% state, 99% private. Location (distance of the industrial zone to the Municipality center): 2 km. Infrastructure: accessible roads. Companies working in the industrial zone:: Geotermika, Toma Radovo. Table 4-6 Features of the free construction sites– Robovo Max Compensation Area No. of allowed Initial price of for arrangement foreseen for Purpose construction Land area height the land (den / of construction construction lot up to m2) land – price (den (m2) attic (m) / m2) 9.7 381 381 5,2 \ 316 G2, G4

9.8 1.151 1.151 5,2 \ 316 G2, G5

MUNICIPALITIES IN THЕ SOUTHEAST REGION

Figure 4.2-8 An extract from the urban plan of the village Robovo, Bosilovo

Source: DUP village Robovo, Municipality Bosilovo. Figure 4.2-9 Images of the industrial zone„Robovo“

4.2.8 INDUSTRIAL ZONE HAZALI

Percentage of construction: 10% Ownership: small portion is state-owned, most private. Location (distance of the industrial zone to the Municipality center): 7, 6 км. Infrastructure: accessible roads. Companies working in the industrial zone: AD ORANZERII

MUNICIPALITIES IN THЕ SOUTHEAST REGION

Figure 4.2-10 Images of the industrial zone HAZALI

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.3.1 BRIEF DECSRIPTION OF THE MUNICIPALITY

Municipality of Valandovo is located in the south-eastern part of Republic of Macedonia, on the left river bank of the river Vardar, between Demir Kapija, mountain Plavush and the floodplain of the river Vardar . It borders the municipalities of Bogdanci, Gevgelija, Dojran, Strumica, Demir Kapija and Konche. It as well borders Republic of Greece. Valandovo has the lowest elevation in the country - 226 meters. During Byzantine time the town was known as the Micro Constantinople ( Small Constantinople). The name Valandovo comes from the old Slavic language and means “Beautiful Valley”. Nowadays, Valandovo is known as a town of the pomegranate and the lovely newly composed Macedonian music. According to the territorial organization of the local government units of 2005, the territory of Municipality of Valandovo covers the city of Valandovo and the following 28 populated surrounding areas: Ajranli, Arazli, Bajrambos, Balinci, Barakli, Bashali, Bashibos, Brajkovci, Buluntuli, Vejseli, Gradec, Grchishte, Dedeli, Gjuleli, Josifovo, Kazandol, Kochuli, Marvinci, Pirava, Plavush, Prsten, Rabrovo, Sobri, Tatarli, Terzeli, Udovo, Chalaki and Chestevo.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.3.2 GENERAL INFORMATION

HQ of the Municipality Valandovo Address St. "Ivo Lola Ribar" bb, 2460 Valandovo Location (latitude - longitude) N 41° 19' 022° 33' Contact Tel. +389 (0)34 382-007; Fax. +389 (0)34 382-044 Email [email protected] Web site www.valandovo.gov.mk Elevation 226 m Area 331 km2 Population 11.89 Municipality celebration day November 6 (Liberation of Valandovo) 4.3.3 TRANSPORT NETWORK

Table 4-7 Transport network Highways, expressways and motorways Direct access to the highway A1 Regional roads that pass through the Municipality Р1102; Р1401, Р1105 Distance from the municipal airport (km) Alexander the Great - Skopje 122 km St. Apostle Paul - Ohrid 235 km Airport Thessaloniki, Greece 124 km Sofia Airport, Bulgaria 259 km Distance from the municipal railway Railway Station Gevgelija 25 km Railway station Miravci 15 km Railway station Stip 89 km Distance of the Municipality from port (km) Port of Thessaloniki, Greece 101 km Port of Durres, Albania 399 km Port Burgas, Bulgaria 593 km Distance from the municipal border crossing (km) Greece 27 km Bulgaria 48 km Serbia 154 km Kosovo 160 km Albania 253 km Distance of the Municipality from major cities (km) Skopje 141 km Thessaloniki 101 km Sofia 256 km Belgrade 542 km Zagreb 930 km Istanbul 687 km Vienna 1.150 km Budapest 914 km

4.3.4 HUMAN RESOURCES AND EDUCATION

Population: 11.890 inhabitants (according to the census of 2002). Gender structure: 6.139 men, 5.751 women. Ethnic structure of the population: 82,67% Macedonians, 11,21% Turks, 5,27% Serbs, 0, 74% other.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.3.4.1 Age structure of the population (2014) Figure 4.3-1 Population pyramid – Valandovo

80+ 75-79 Men Women 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4

-600 -400 -200 0 200 400 600 Source: State Statistical Office, 2015

4.3.4.2 Active and passive job seekers Number of unemployed people: 1.071 (as of 31.11.2015 ). Educational institutions: At the territory of the municipality there is one high school and two primary schools. Figure 4.3-2 Unemployed people - Valandovo

Women

Men

0 100 200 300 400 500 600 700

Active job seekers Passive jobseekers

Source: Employment Service Agency, Republic of Macedonia, 2015.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.3.4.3 Age structure of the unemployed Figure 4.3-3 Active job seekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 20 40 60 80 100 120

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015.

Figure 4.3-4 Passive jobseekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 10 20 30 40 50 60 70

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. 4.3.4.4 Educational structure of the unemployed

Unemployed by education Total Men Women Doctor of science Masters of Science 2 0 2 High education 92 41 51 Higher School 7 6 1 Completed secondary education 294 169 125 Incomplete secondary education 116 83 33 Completed eighth and without education 560 87 197 Total 1.071 386 409

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.3.5 LOCAL ECONOMY

Number of active business entities: 357. Figure 4.3-5 Active business entities -Valandovo

300

200

100

0 2009 2010 2011 2012 2013 2014

Micro Small Medium Large

Source: State Statistical Office, 2015 Dominant industries: production of tobacco, food industry, textile industry, wood-processing industry, construction industry. Figure 4.3-6 Number of business entities in the dominant industries– Valandovo

50 Agriculture, Forestry and Fisheries

40 Manufacturing

30 Civil Engineering

Transportation and storage 20

Accommodation and food service 10 activities

0 2012 2013 2014

Source: State Statistical Office, 2015 Main comparative advantages of the Municipality : closeness to the borders with Greece and Bulgaria, favorable climatic conditions and favorable investment conditions. Most important local enterprises: Winery Valandovo (processing of semi-finished and finished products made from grapes), Eco Greenhouses Anska Reka (production of vegetables products) Agripro (poultry), Dairy “Vardarec” s. Udovo (production of milk and dairy products). Most important foreign investors: Agrokor, Croatia (purchase-distribution center). Mineral resources: lime, stone pits (non-mineral raw materials) Tourism and catering industry: 1 hotel, 8 restaurants, 5 coffee bar and 3 night clubs. 4.3.6 INDUSTRIAL ZONES AND LOCATIONS FOR INVESTMENT

In the municipality of Valandovo there is one industrial zone “Rabrovo” which has an excellent location and is in full private ownership. This industrial zone has 48 parcels.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

Figure 4.3-7 Industrial zones and locations for investment – Municipality Valandovo

Индустриска зона Раброво Industrial zone Rabrovo

4.3.7 INDUSTRIAL ZONE RABROVO

Area size: 17.000 м2. Percentage of construction: 30% constructed and 20% under construction. Ownership: 100% private. Location (distance of the industrial zone to the Municipality center): 2 km. Infrastructure: accessible roads, substation, lighting, water and sewer lines. Companies working in the industrial zone: Anel, Konington, Doka textile (textile industry); Agrokor (purchase center). Features of the free construction sites: detailed information can be obtained at the Department of Urban Planning within the Municipality of Valandovo. Purpose of the free construction sites: G2, G3, G4 indicates easy and non polluting industry, services, and warehouses.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

Figure 4.3-8 Location of the industrial zone RABROVO

Figure 4.3-9 Images of the industrial zone RABROVO

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.4.1 BRIEF DESCRIPTION OF THE MUNICIPALITY

The territory of Municipality of Vasilevo occupies the northwestern part of Strumica valley and the middle catchment area of Strumica river. The municipality has good demography and its young and active population is an important precondition for its ecobomic development. The water reservoir Turija is located toward the northwest ridge of Ograzden as well as the regional landfill for municipal solid waste. The agrarian area of Municipality of Vasilevo is 16091 ha, 6773 ha (42.1%) of which are arable land, 1,082 ha (11.2%) are pastures, while 7516 ha (46.7%) are forests. According to the territorial organization of the local government units of 2005, the territory of Municipality of Vasilevo covers 18 populated areas: Vasilevo, Angelci, Varvarica, Visoka Maala, Vladevci, Gradashorci, Dobrashinci, Dukatino, Edrenikovo, Nova Maala, Piperevo, Radichevo, Sedlarci, Sushevo, Trebichino, Chanaklija, Kushkulija and Nivichino.

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.4.2 GENERAL INFORMATION

HQ of the Municipality Vasilevo Address s. Vasilevo bb 2411 Vasilevo Location (latitude - longitude) N 41° 31' E22° 38' Contact Tel. +389 (0)34 354-444; fax +389 (0)34 353-007 Email [email protected] Web site www.opstinavasilevo.gov.mk Elevation 234 m Area 331 km2 Population 12.122 Municipality celebration day December 16 (the day when the firs council was constituted) 4.4.3 TRANSPORT NETWORK

Table 4-8 Transport network Highways, expressways and motorways Direct access to the main road A4 Regional roads that pass through the Municipality Р1403 Distance from the municipal airport (km) Alexander the Great - Skopje 129 km St. Apostle Paul - Ohrid 267 km Airport Thessaloniki, Greece 156 km Sofia Airport, Bulgaria 247 km Distance from the municipal railway Railway Station Gevgelija 57 km Railway station Miravci 63 km Railway station Stip 63 km Distance of the Municipality from port (km) Port of Thessaloniki, Greece 133 km Port of Durres, Albania 431 km Port Burgas, Bulgaria 581 km Distance from the municipal border crossing (km) Greece 55 km Bulgaria 36 km Serbia 160 km Kosovo 166 km Albania 285 km Distance of the Municipality from major cities (km) Skopje 147 km Thessaloniki 133 km Sofia 243 km Belgrade 548 km Zagreb 936 km Istanbul 719 km Vienna 1.156 km Budapest 920 km

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.4.4 HUMAN RESOURCES AND EDUCATION

Population: 12.122 inhabitants (according to the census of 2002). Gender structure: 6.339 men, 5.783 women. Ethnic structure of the population: 82,15% Macedonians, 17,28% Turks, 0,5% other. 4.4.4.1 Age structure of the population (2014) Figure 4.4-1 Population pyramid – Vasilevo

80+ Men Women 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4

-600 -400 -200 0 200 400 600 800 Source: State Statistical Office, 2015

4.4.4.2 Active and passive job seekers Number of unemployed people: 1.784 (as of 31.11.2015) Educational institutions: At the territory of the municipality there are two primary schools. Figure 4.4-2 Unemployed people - Vasilevo

Women

Men

0 200 400 600 800 1000 1200

Active job seekers Passive jobseekers

Source: Employment Service Agency, Republic of Macedonia, 2015.

100

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.4.4.3 Age structure of the unemployed Figure 4.4-3 Active job seekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 10 20 30 40 50 60

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. Figure 4.4-4 Passive jobseekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 50 100 150 200 250

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. 4.4.4.4 Educational structure of the unemployed

Unemployed by education Total Men Women

Doctor of science Masters of Science 1 1 0 High education 27 4 23 Higher School 9 6 3 Completed secondary education 298 132 166 Incomplete secondary education 171 98 73 Completed eighth and without education 1.278 87 458 Total 1.784 328 723

101

MUNICIPALITIES IN THЕ SOUTHEAST REGION

4.4.5 LOCAL ECONOMY

Number of active business entities: 185. Figure 4.4-5 Active business entities -Vasilevo

140 120 100 80 60 40 20 0 2009 2010 2011 2012 2013 2014

Micro Small Medium Large

Source: State Statistical Office, 2015 Dominant industries: agriculture, transport, textile industry. Figure 4.4-6 Number of business entities in the dominant industries– Vasilevo

25 Agriculture, Forestry and Fisheries

20 Mining and quarrying

15 Manufacturing

Civil Engineering 10

Transportation and storage 5

Accommodation and food service 0 activities 2012 2013 2014

Source: State Statistical Office, 2015 Main comparative advantages of the Municipality : ideal locations for development of industries along the highway A4, natural resource of water (water reservoir Turija), production of agricultural and fruit products, the regional landfill of Southeastern region. Most important local enterprises: Miss Stone (catering service) Dijagonala (selling sanitary) Cobi End (selling laminates) Niprom, 11ti Septemvri (Wood Industry); Evromak (purchase of agricultural products). Most important foreign investors: Asa International - Austria, waste management - the concessionaire of the first regional landfill in the country. Mineral resources: lime, stone pits (non-mineral raw materials) Tourism and catering industry: 1 hotel, 1 restaurant and 1 night club.

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4.4.6 INDUSTRIAL ZONES AND LOCATIONS FOR INVESTMENT

Municipality of Vasilevo has the industrial zone “Gradashorci” which is on excellent location, close to the main road A4. Municipal contributions for investing in the industrial zones: The Municipal Council, upon investor’s request, can adopt a decision and allow special advantages and contributions provided the investment is strategic for the region. Figure 4.4-7 Industrial zones and locations for investment – Municipality Vasilevo

Индустриска зона Владевци Industrial zone Vladevci

Индустриска зона Градашорци Industrial zone Gradasorci

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4.4.7 INDUSTRIAL ZONE: „GRADASORCI“

Area size: 654.600 м2. Percentage of construction: 20%. Ownership: 20% state, 80% private. Location (distance of the industrial zone to the Municipality center): 500 m. Infrastructure: accessible roads, substation, lighting, water and sewer lines. Companies working in the industrial zone: Triterol (gas station with a restaurant), Evromak (purchase of agricultural products, food coolers), MT promet (warehouse for storage of agricultural products). Table 4-9 Features of the free construction sites– GRADASORCI Max Compensation Area foreseen No. of allowed Initial price of for arrangement for Purpose construction Land area height the land (den / of construction construction lot up to m2) land – price (den (m2) attic (m) / m2) GP 1.1 10.955 5.433 DUP 61 240 G2,G3,G4 GP 1.2 16.649 8.324 DUP 61 240 G2,G3,G5 GP 1.3 15.839 7.919 DUP 61 240 G2,G3,G6 Figure 4.4-8 Location of the industrial zone„GRADASORCI“

Figure 4.4-9 Images of the industrial zone„GRADASORCI“

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4.4.8 INVESTMENT LOCATIONS FOR CONSTRUCTION OF HOTEL COMPLEX

Municipality of Vasilevo is in its final stage of developing a documentation for the cadastre parcels 1160 and 1162 in the settlement Vladevci earmarked for the construction of hotel complexes. The total area of the site is 30,000 m2. The infrastructure of this site will cover the supply of water through the village water supply network of Vladevci , as well as through its own artesian well within the construction lot . The construction of the wells will be made on the bases of hydrogeological investigations that will determine the capacity and quality of the groundwater. Faecal waste water will drain into absorbing wells within the construction lot. Potential investors can get detailed information from the Municipality of Vasilevo after completion of the urbanistic plan. Figure 4.4-10 Images of the industrial zone Vladevci

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4.5.1 BRIEF DESCRIPTION OF THE MUNICIPALITY

Municipality of Gevgelija is located in the most southern part of Republic of Macedonia, on the border with Republic of Greece. The natural wholeness of Gevgelija valley extends from the north and south side of Macedonian - Greek border. Gevgelija lies in the flat part of the valley, located on the right coast of Kozuv and Pajak Mountain. With its geographical location, Gevgelija has always been at the crossroad of major roads in of the Balkan Peninsula, through which all economic and cultural connections between South and Central Europe were made. Today, there are many luxury hotels and casinos which operate in the Municipality. According to the territorial organization of the local government units of 2005, the territory of Municipality of Gevgelija covers the city of Gevgelija and 16 populated surrounding areas: Bogorodica, Gabrovo, Davidovo, Kovanec, Konsko, Miravci, Miletkovo, Moin, Mrzenci, Negorci, Novo Konsko, Petrovo, Prdejci, Sermenin, Smokvica and Huma.

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4.5.2 GENERAL INFORMATION

HQ of the Municipality Gevgelija Address St. "Dimitar Vlahov" no. 4 1480 Gevgelija Location (latitude - longitude) N 41° 9' E22° 30' Contact Tel. +389 (0)34 213-899; Email [email protected] Web site www.gevgelija.gov.mk Elevation 64 m Area 485 km2 Population 22.988 Municipality celebration day November 7 (Liberation of Gevgelija) 4.5.3 TRANSPORT NETWORK

Table 4-10 Transport network Highways, expressways and motorways Direct access to the highway A1. Regional roads that pass through the Municipality Р1102, Р1108, Р1105 Distance from the municipal airport (km) Alexander the Great - Skopje 138 km St. Apostle Paul - Ohrid 249 km Airport Thessaloniki, Greece 101 km Sofia Airport, Bulgaria 284 km Distance from the municipal railway Railway Station Gevgelija 1 km Railway station Miravci 22 km Railway station Stip 117 km Distance of the Municipality from port (km) Port of Thessaloniki, Greece 178 km Port of Durres, Albania 413 km Port Burgas, Bulgaria 618 km Distance from the municipal border crossing (km) Greece 3 km Bulgaria 73 km Serbia 168 km Kosovo 174 km Albania 270 km Distance of the Municipality from major cities (km) Skopje 156 km Thessaloniki 78 km Sofia 280 km Belgrade 557 km Zagreb 944 km Istanbul 664 km Vienna 1.165 km Budapest 928 km

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4.5.4 HUMAN RESOURCES AND EDUCATION

Population: 22.988 inhabitants (according to the census of 2002). Gender structure: 11.420 men, 11.568 women. Ethnic structure of the population: 96,82% Macedonians, 1,60% Serbs, 0,93% Vlachs, 1,15% other. 4.5.4.1 Age structure of the population (2014) Figure 4.5-1 Population pyramid – Gevgelija

80+ 75-79 Men Women 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 -1000 -500 0 500 1000 1500

Source: State Statistical Office, 2015 4.5.4.2 Active and passive job seekers Number of unemployed people: 1.276 (as of 31.11.2015 ). Figure 4.5-2 Unemployed people - Gevgelija

Women

Men

0 100 200 300 400 500 600 700 800

Active job seekers Passive jobseekers

Source: Employment Service Agency, Republic of Macedonia, 2015

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4.5.4.3 Age structure of the unemployed Figure 4.5-3 Active job seekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 20 40 60 80 100 120 140 160 180 200

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. Figure 4.5-4 Passive jobseekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 10 20 30 40 50 60 70 80 90

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. 4.5.4.4 Educational structure of the unemployed Educational institutions: The municipality has four primary and one high school. Higher education is represented by the State University “Goce Delchev” - Stip and its dispersed studies in law, economics, agriculture, pedagogy, social affairs and tourism.

Unemployed by education Total Men Women

Doctor of science Masters of Science 8 2 6 High education 165 74 91 Higher School 25 18 7 Completed secondary education 336 162 174 Incomplete secondary education 270 198 72

Completed eighth and without education 472 87 198 Total 1.276 541 548

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4.5.5 LOCAL ECONOMY Number of active business entities: 1.190. Figure 4.5-5 Active business entities -Gevgelija

1000 800 600 400 200 0 2009 2010 2011 2012 2013 2014

Micro Small Medium Large

Source: State Statistical Office, 2015 Dominant industries: food industry, textile industry, tourism and catering, construction industry. Figure 4.5-6 Number of business entities in the dominant industries- Gevgelija

Education Administrative and support service activities Professional, scientific and technical activities Activities related to real estate Financial and insurance activities Information and communication Accommodation and food service activities Transportation and storage Civil Engineering Water supply; sewerage, waste management;… Manufacturing Agriculture, Forestry and Fisheries 0 50 100 150 200

Source: State Statistical Office, 2015 Main comparative advantages of the Municipality: favorable geographic location and climate conditions, tradition and well known production of eco-food, skilled work force in the domain of tourism and clothes production. Most important local enterprises: Vipro Victor DOOEL ( Fruit and vegetables production ) ; Pajdakov , Vori ( Canning Industry ) ; Conti - Hidroplast , 7mi Noemvri ( Production of rubber and plastic masses) ; Euroing , Mlaz Inzinering , Mansard Koce DOOEL (construction companies ) , RigoImpeks , Jostela ( Winery ) AgroImpeks ( wholesale ) Lemeks (transport company ) ; Pascalin ( production and export of coffee surrogates ) Kichukov company ( retail ) , Hina ( processing and canning of fruits and vegetables and production of bread and bakery products ) ; Noel DPT Export import (textile industry) . Most important foreign investors: Hotel Flamingo, Hotel Ramada Plaza (Hotels and restaurants); Casino Flamingo, Casino Princess (games of chance) Hotel- Casino Apolina, Casino Senator (hotels, restaurants and games of chance). Mineral resources: Stone pits. Tourism and catering industry: 11 Hotels and motels, 16 restaurants, 6 coffee bars and 3 night clubs.

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4.5.6 INDUSTRIAL ZONES AND LOCATIONS FOR INVESTMENT Municipality of Gevgelija has many developed industrial zones with good infrastructure and signalization, such as: the Industrial zone “Rakita“, the Industrial zone “Delinica”, the Industrial zone “Blohotehna”, the Industrial zone „Commercial complex Purchase and the distribution center“ and „Technological -Industrial Development Zone” Municipal contributions for investing in the industrial zones: The Municipal Council, upon investor’s request, can adopt a decision and allow special advantages and contributions provided the investment is strategic for the region. Figure 4.5-7 Industrial zones and locations for investment – Municipality Gevgelija

ТИРЗ Гевгелија TIDZ Gevgelija

Туристичка зона Негорски Бањи Индустриска зона Блокотехна Turistic zone Negorski Spa industrial zone Blokotehna

Индустриска Зона Стопански Комплекс Откупно Дистрибутивен Центар Индустриска зона Деленица Industrial zone Commercial Complex industrial zone Delenica Purchase and Distribution Center

Индустриска зона Ракита industrial zone Rakita

4.5.7 INDUSTRIAL ZONE „RAKITA“ Area size: 166.000 м2. Percentage of construction: 60%. Ownership: 22,30% state, 77,7% private. Location (distance of the industrial zone to the Municipality center): 2 km. Infrastructure: water supply, accessible roads, substation. Companies working in the industrial zone:: Vipro Gevgelija, Bliznak Kom (food industry). Table 4-11 Features of the free construction sites– Rakita Max Area foreseen Compensation for No. of allowed Initial price of for arrangement of Purpose construction Land area height the land (den / construction construction land – lot up to m2) (m2) price (den / m2) attic (m) 14.2.41 5.217 3.37 12 / / G3 14.2.40 5.474 3.567 12 / / G3 14.2.39 5.603 3.698 12 / / G3 14.2.38 2.685 1.593 12 / / G3 14.2.32 4.044 2.613 12 / / G4 14.2.31 3.961 2.588 12 / / G3

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Figure 4.5-8 Detailed urban plan of the industrial zone Rakita

Figure 4.5-9 Images of the industrial zone Rakita

4.5.8 INDUSTRIAL ZONE DELENICA

Area size: 462.000 м2. Percentage of construction: 80%. Ownership: 24,60% state, 75,40% private. Location (distance of the industrial zone to the Municipality center): 2,50 km. Infrastructure: substation, accessible roads, lighting (partly). Companies working in the industrial zone:: Vori Gevgelija (food industry)

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Table 4-12 Features of the free construction sites– Delenica Compensation Area foreseen Max No. of Initial price for arrangement for allowed Purpose construction Land area of the land of construction construction height up lot (den / m2) land – price (den (m2) to attic (m) / m2)

12.3.62 5.199 3.575 15 / / G2,G3,G4 12.3.63 39.202 32.645 15 / / G2,G3,G4

Figure 4.5-10 Satellite map of the industrial zone Delenica

Figure 4.5-11 Images of the industrial zone Delenica

4.5.1 INDUSTRIAL ZONE „BLOKOTEHNA“

Area size: 234.500 м2. Percentage of construction: 60%. Ownership: 85% state, 15% private.

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Location (distance of the industrial zone to the Municipality center): 4, 5 km. Infrastructure: water supply, sewerage, substation, accessible roads, lighting. Companies working in the industrial zone:: DGPT Euro ing – Gevgelija, Josko Junior Gevgelija. Table 4-13 Features of the free construction sites– Blokotehna Max Compensation Area foreseen No. of allowed Initial price of for arrangement for Purpose construction Land area height the land (den / of construction construction lot up to m2) land – price (den (m2) attic (m) / m2) GP 39 1.853 926,5 10 / / G2, G4 GP 38 2.437 1.218 10 / / G2, G4 Figure 4.5-12 Satellite map of the industrial zone BLOKOTEHNA

Figure 4.5-13 Images of the industrial zone Blokotehna

4.5.2 INDUSTRIAL ZONE COMMERCIAL COMPLEX PURCHASE AND DISTRIBUTION CENTER

Area size: 89.000 м2. Percentage of construction: 50%. Ownership: 100% state. Location (distance of the industrial zone to the Municipality center): 15 km.

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Infrastructure: accessible roads. Companies working in the industrial zone: No. Table 4-14 Features of the free construction sites– Purchase and Distribution Center Max Compensation Area foreseen No. of allowed Initial price of for arrangement for Purpose constructio Land area height the land (den / of construction construction n lot up to m2) land – price (den (m2) attic (m) / m2) GP 1 20.599 11.208 15 / / G4 GP 2 11.049 7.734 15 / / G4

Figure 4.5-14 Urbanistic plan of the commercial complex Purchase and Distribution Center

Figure 4.5-15 Images of the commercial complex Purchase and Distribution Center

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4.5.3 TECHNOLOGICAL INDUSTRIAL DEVELOPMENT ZONE GEVGELIJA

Area size: unspecified– the zone is under construction. Percentage of construction: unconstructed. Ownership: 100 % state. Location (distance of the industrial zone to the Municipality center): 10 км. Infrastructure: accessible roads. Companies working in the industrial zone: No. Features of the free construction sites: detailed information on the planned locations and their uses can be received at the Department of Urban Planning within the Municipality of Gevgelija and the Directorate for Technological Industrial Development Zone in Skopje. Figure 4.5-16 Urban plan of the Technological Industrial Development Zone Gevgelija

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Figure 4.5-17 Images of the Technological Industrial Development Zone Gevgelija

4.5.4 INVESTMENT LOCATIONS FOR CONSTRUCTION OF HOTEL COMPLEXES

Municipality of Gevgelija has adopted a detailed urban plan for the construction of a hotel complex in the locality Dolna korija near Negorski Banji. Negorski Banji is a modern health and tourist center for prolonged treatment and rehabilitation of patients in the field of physical medicine and rehabilitation. The detailed urban plan determines locations for construction of new hotel complexes and health centers. Table 4-15 Free locations for construction of hotel complexes – Gevgelija Compensation for No. of Area foreseen Max allowed Initial price Land arrangement of Purpose construction for construction height up to of the land area construction land – lot (m2) attic (m) (den / m2) price (den / m2) GP 1 60.285 42.199 13,7 / / B5 Figure 4.5-18 Images from the locations for construction of hotel complexes – Gevgelija

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4.6.1 BRIEF DESCRIPTION OF THE MUNICIPALITY

Municipality of Dojran is located in the south part of the Republic of Macedonia, along the Macedonan- Greek border. The municipality is located on the shores of Dojransko Lake through which it borders Republic of Greece to the east and south. It is situated between the mountains Belasica (1.883m) to the north, Krusha (860m,Greece) to the east and Karabalija (697m) to the west. The lake is 9km long and 7km wide . According to the territorial organization of the local government units of 2005, the territory of Municipality of Dojran covers 13 populated surrounding areas: Nov Dojran, Star Dojran, Sretenovo, Furka, Crnichani, Nikolikj, Gjopcheli, Kurtamzali, Durutli, Organdjali, Sevendekli, Dzumabos and Chaushli.

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4.6.2 GENERAL INFORMATION

HQ of the Municipality Dojran Address St. "Kay November 5th," bb, 1478 Star Dojran Location (latitude - longitude) N 41° 10' E22° 43' Contact Tel. +389 (0)34 225-278; fax +389 (0)34 225-278 Email [email protected] Web site www.dojran-info.com Elevation 146 m Area 132 km2 Population 3.426 Municipality celebration day November 5 (Liberation of Dojran)

4.6.3 TRANSPORT NETWORK Table 4-16 Transport network Highways, expressways and motorways Regional roads that pass through the Municipality Р1109, Р1105 Distance from the municipal airport (km) Alexander the Great - Skopje 147 km St. Apostle Paul - Ohrid 259 km Airport Thessaloniki, Greece 93 km Sofia Airport, Bulgaria 278 km Distance from the municipal railway Railway Station Gevgelija 32 km Railway station Miravci 39 km Railway station Stip 109 km Distance of the Municipality from port (km) Port of Thessaloniki, Greece 74 km Port of Durres, Albania 423 km Port Burgas, Bulgaria 573 km Distance from the municipal border crossing (km) Greece 3 km Bulgaria 68 km Serbia 178 km Kosovo 184 km Albania 276 km Distance of the Municipality from major cities (km) Skopje 165 km Thessaloniki 74 km Sofia 275 km Belgrade 566 km Zagreb 954 km Istanbul 647 km Vienna 1.174 km Budapest 938 km

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4.6.4 HUMAN RESOURCES AND EDUCATION

Population: 3.426 inhabitants (according to the census of 2002). Gender structure: 1.728 men, 1.698 women. Ethnic structure of the population: 77, 09% Macedonians, 11, 73% Turks, 8, 09% Serbs, 1, 72% Roma, 1, 32% other. 4.6.4.1 Age structure of the population (2014) Figure 4.6-1 Population pyramid – Dojran

80+ 75-79 Men Women 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-27 20-24 15-19 10-14 5-9 0-4

-200 -150 -100 -50 0 50 100 150 200 Source: State Statistical Office, 2015

4.6.4.2 Active and passive job seekers Number of unemployed people: 147 (as of 31.11.2015 ). Figure 4.6-2 Unemployed people - Dojran

Women

Men

0 10 20 30 40 50 60 70 80 90

Active job seekers Passive jobseekers

Source: Employment Service Agency, Republic of Macedonia, 2015.

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4.6.4.3 Age structure of the unemployed Figure 4.6-3 Active job seekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 2 4 6 8 10 12 14 16 18

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015.

Figure 4.6-4 Passive jobseekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 2 4 6 8 10 12 14 16

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. 4.6.4.4 Educational structure of the unemployed Educational institutions: At the territory of the municipality there is one primary school

Unemployed by education Total Men Women

Doctor of science Masters of Science 1 0 1 High education 19 6 13 Higher School 2 1 1 Completed secondary education 22 8 14 Incomplete secondary education 20 15 5

Completed eighth and without education 83 87 31 Total 147 116 65

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4.6.5 LOCAL ECONOMY

Number of active business entities: 101. Figure 4.6-5 Active business entities -Dojran

100 80 60 40 20 0 2009 2010 2011 2012 2013 2014

Micro Small Medium Large

Source: State Statistical Office, 2015 Dominant industries: tourism, catering and textile industry. Figure 4.6-6 Number of business entities in the dominant industries– Dojran

25 Agriculture, Forestry and Fisheries 20 Manufacturing 15 Civil Engineering 10 Transportation and storage 5 Accommodation and food service 0 activities 2012 2013 2014

Source: State Statistical Office, 2015 Main comparative advantages of the Municipality : Dojransko Lake, the unique way of fishing with the help of birds, opportunities to develop alternative forms of tourism, built tourist infrastructure. Most important local enterprises: KM Company (food industry, processing of olives); Factory for shock absorbers and spare parts STD (Shock absorbers) Formi Davas, LM Company (transportation of passengers), Hotel Istatov, Hotel Romantik, Hotel Makedonija, Hotel Casino HIT and Hotel Polin (tourism catering industry). Most important foreign investors: Dojran Stil (Greece) - metallurgy. Mineral resources: No. Tourism and catering industry: 7 Hotels and motels, 11 restaurants, 3 coffee bars and 3 night clubs (summer beach nightclubs).

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4.6.6 INDUSTRIAL ZONES AND LOCATIONS FOR INVESTMENT

The municipality of Dojran has the Industrial Zone “Dushanovac” which is on excellent location near the regional road R1105 (Strumica - border with Republic of Greece), 2.5 km from the settlement of Nov Dojran and 3.5 km from the lake shore. Municipal contributions for investing in the industrial zones: The Municipal Council, upon investor’s request, can adopt a decision and allow special advantages and contributions provided the investment is strategic for the region. Figure 4.6-7 Industrial zones and locations for investment – Municipality Dojran

Индустриска зона Душановац industrial zone Dusanovac

Туристичка зона Сунгурли Дере Turistic zone Sungurly Dere

Туристичка зона Карач Turistic zone Karac

4.6.7 INDUSTRIAL ZONE- INDUSTRIAL COMMERCIAL COMPLEX DUSHANOVAC

Area size: 200.000 м2. Percentage of construction: unconstructed. Ownership: 100% state. Location (distance of the industrial zone to the Municipality center): 3 km. Infrastructure: unconstructed. Companies working in the industrial zone:: No. Table 4-17 Features of the free construction sites– Dushanovac Area foreseen Max Compensation for No. of Initial price Land for allowed arrangement of Purpose construction of the land area construction height up to construction land lot (den / m2) (m2) attic (m) – price (den / m2) 1 6.714 3.859 10,20 61 600 G2,G3,G4 2 6.258 3.516 10,20 61 600 G2,G3,G4 3 2.895 1.068 10,20 61 600 G2,G3,G4 4 2.691 1.026 10,20 61 600 G2,G3,G4 5 2.701 1.033 10,20 61 600 G2,G3,G4 6 2.680 1.02 10,20 61 600 G2,G3,G4 7 2.109 669 10,20 61 600 G2,G3,G4 8 2.434 858 10,20 61 600 G2,G3,G4 9 2.478 877 10,20 61 600 G2,G3,G4 10 2.362 790 10,20 61 600 G2,G3,G4

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Figure 4.6-8 Urban plan of the industrial zone Dushanovac

Figure 4.6-9 Images of the industrial zone Dushanovac

4.6.8 LOCATIONS FOR INVESTMENT IN HOTEL COMPLEXES

There are two tourist development zones in Star and Nov Dojran. The characteristics of the investment locations in these zones are provided in the Table 4-18: Table 4-18 Characteristics of the free locations in these tourist development zones – Dojran Area Compensation for foreseen Max allowed Initial price No. of Land arrangement of Purpose for height up to of the land construction lot area construction land constructio attic (m) (den / m2) – price (den / m2) n (m2) TDZ Nov Dojran 100.271 61.819 25 61 600 B5 TDZ Star Dojran 171.346 154.816 25 61 600 B5

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Figure 4.6-10 Urban plan – Figure 4.6-11 Urban plan – touristic zone Karac touristic zone Sungurli Dere

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4.7.1 BRIEF DESCRIPTION OF THE MUNICIPALITY

The former medieval episcopal center Konche is a typical rural municipality located in the central - eastern part of Republic of Macedonia, surrounded by the mountains Konecka and Smrdesnik or Municipalities of Stip, Negotino, Demir Kapija, Valandovo, Strumica, Vasilevo and Radovish. The main economic activities in the municipality are agriculture, stock breeding, water management and forestry. Special emphasis has the production of high quality tobacco of the type “Jaka“with about 1,000,000 kilograms annually, which represents 5 % of the total tobacco production in the country. According to the territorial organization of the local government units of 2005, the territory of Municipality of Konche covers 14 populated surrounding areas: Gabrevci , Garvan , Gorna Vrashtica , Gorni Lipovikj, Dedino, Dolna Vrashtica , Dolni Lipovikj , Dolni Radesh, Zagorci, Konche , Lubnica , Negrenovci , Rakitec and Skorusha .

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4.7.2 GENERAL INFORMATION

HQ of the Municipality Konce Address 2424 Konce Location (latitude - longitude) N 41° 29' E022° 22' Contact Tel. +389 (0)34 630-325 fax: +389 (0)34 630-327 Email [email protected] Web site www.konce.gov.mk Elevation 580 m Area 233,05 km2 Population 3.536 Municipality celebration day July 12 (St. Peter’s day - Municipality celebration Day) 4.7.3 TRANSPORT NETWORK

Table 4-19 Transport network Indirect access to the main road A4 Highways, expressways and motorways through regional road P2433. Regional roads that pass through the Municipality P2433 Distance from the municipal airport (km) Alexander the Great - Skopje 143 km St. Apostle Paul - Ohrid 268 km Airport Thessaloniki, Greece 215 km Sofia Airport, Bulgaria 292 km Distance from the municipal railway Railway Station Gevgelija 113 km Railway station Miravci 104 km Railway station Stip 75 km Distance of the Municipality from port (km) Port of Thessaloniki, Greece 192 km Port of Durres, Albania 432 km Port Burgas, Bulgaria 626 km Distance from the municipal border crossing (km) Greece 119 km Bulgaria 95 km Serbia 174 km Kosovo 180 km Albania 264 km Distance of the Municipality from major cities (km) Skopje 162 km Thessaloniki 192 km Sofia 289 km Belgrade 563 km Zagreb 950 km Istanbul 778 km Vienna 1.171 km Budapest 934 km

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4.7.4 HUMAN RESOURCES AND EDUCATION

Population: 3.536 inhabitants (according to the census of 2002). Gender structure: 1.886 men, 1.650 women. Ethnic structure of the population: 85,10% Macedonians, 14,73% Turks, 0,16% other. Educational institutions: At the territory of the municipality there is one primary school.. 4.7.4.1 Age structure of the population (2014) Figure 4.7-1 Population pyramid

80+ 75-79 Men Women 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-27 20-24 15-19 10-14 5-9 0-4 -150 -100 -50 0 50 100 150 200 Source: State Statistical Office, 2015

4.7.4.2 Active and passive job seekers Number of unemployed people: 354 (as of 31.11.2015 ). Figure 4.7-2 Unemployed people - Konce

Women

Men

0 50 100 150 200 250 300

Active job seekers Passive jobseekers

Source: Employment Service Agency, Republic of Macedonia, 2015.

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4.7.4.3 Age structure of the unemployed Figure 4.7-3 Active job seekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 5 10 15 20 25 30 35

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. Figure 4.7-4 Passive jobseekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 5 10 15 20 25 30 35 40

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. 4.7.4.4 Educational structure of the unemployed

Unemployed by education Total Men Women

Doctor of science Masters of Science 0 0 0 High education 15 7 8 Higher School 2 1 1 Completed secondary education 101 59 42 Incomplete secondary education 23 18 5

Completed eighth and without education 213 87 54 Total 354 172 110

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4.7.5 LOCAL ECONOMY

Number of active business entities: 75. Figure 4.7-5 Active business entities -Konce

60 50 40 30 20 10 0 2009 2010 2011 2012 2013 2014

Micro Small Medium Large

Source: Employment Service Agency, Republic of Macedonia, 2015. Dominant industries: agriculture (production of tobacco), stock breeding, water management and forestry. Figure 4.7-6 Number of business entities in the dominant industries– Konce

20 Agriculture, Forestry and Fisheries

15 Mining and quarrying

Manufacturing 10

Transportation and storage 5

Accommodation and food service 0 activities 2012 2013 2014

Source: Employment Service Agency, Republic of Macedonia, 2015. Main comparative advantages of the Municipality: ecologically clean environment, low cost of land, natural resources. Most important local enterprises: Dairy Eko mleko (production of dairy products). Mineral resources: clay kaolin, quartz, lime and copper (non-mineral raw materials) Tourism and catering industry: No. 4.7.6 INDUSTRIAL ZONES AND LOCATIONS FOR INVESTMENT

There are no potential investment zones in the municipality of Konche; however, the potential investors can prepare local urban planning documentation with the purpose of the facilities G3, G4-light and nonpolluting industry.

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Municipal contributions for investing in the industrial zones: The Municipal Council, upon investor’s request, can adopt a decision and allow special advantages and contributions provided the investment is strategic for the region. Features of the free construction sites: detailed information can be obtained within the Municipality of Konche 4.7.7 LOCATIONS FOR INVESTMENT IN HOTEL COMPLEXES

The Municipality of Konche has adopted a detailed urban plan for construction of tourist settlement on the banks of the artificial lake Mantovo. The project envisages construction of individual vacation houses, a hotel, trim trails and sport pitches. Table 4-20 Features of the free construction sites– Konce Max Compensation Area foreseen No. of allowed Initial price of for arrangement for Purpose construction Land area height the land (den / of construction construction lot up to m2) land – price (den (m2) attic (m) / m2) GP 1 13.000 4.200 17 61 1.000 B5

Figure 4.7-7 Location of the tourist settlement Mantovo

Туристичка зона Мантово Turistic zone Mantovo

Figure 4.7-8 Images of the tourist settlement Mantovo

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4.8.1 BRIEF DESCRIPTION OF THE MUNICIPALITY

Municipality of Novo Selo is located at the southeast end of the Republic of Macedonia and it borders the municipalities of Strumica, Berovo and Bosilovo on the Macedonian side and the municipalities of Petrich and Muries on the Bulgarian and Greek side. Novo Selo is the second largest settlement in the Strumica valley with a physiognomy of a city. The municipality differs from the others by a few unique things: it is the only municipality in the country that borders two European Union countries, and it has the highest waterfall in the Republic of Macedonia (Smolare Waterfall 39.5m). According to the territorial organization of the local government units of 2005, the territory of Municipality of Novo Selo covers 16 populated surrounding areas: Novo Selo, Sushica, Mokrievo, Novo Konjarevo, Koleshino, Mokrino, Smolari, Zubovo, Staro Konjarevo, Drazevo, Borisovo, Samoilovo, Barbarevo, Stinik, Badilen and Bajkovo.

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4.8.2 GENERAL INFORMATION

HQ of the Municipality Novo Selo Address St. "Manush Turnovski" bb, 2434 Novo Selo Location (latitude - longitude) N 41° 24' E22° 52' Contact Tel. +389 (0)34 355-202; Fax. +389 (0)34 355-702 Email [email protected] Web site www.novoselo.gov.mk Elevation 260 m Area 237,45 km2 Population 11.567 Municipality celebration day December 12 (constituting the first Council) 4.8.3 TRANSPORT NETWORK

Table 4-21 Transport network Highways, expressways and motorways Direct access to the main road A4. Regional roads that pass through the Municipality P1402 Distance from the municipal airport (km) Alexander the Great - Skopje 153 km St. Apostle Paul - Ohrid 278 km Airport Thessaloniki, Greece 167 km Sofia Airport, Bulgaria 217 km Distance from the municipal railway Railway Station Gevgelija 68 km Railway station Miravci 59 km Railway station Stip 88 km Distance of the Municipality from port (km) Port of Thessaloniki, Greece 144 km Port of Durres, Albania 442 km Port Burgas, Bulgaria 551 km Distance from the municipal border crossing (km) Greece 66 km Bulgaria 5 km Serbia 185 km Kosovo 191 km Albania 296 km Distance of the Municipality from major cities (km) Skopje 172 km Thessaloniki 144 km Sofia 214 km Belgrade 586 km Zagreb 973 km Istanbul 730 km Vienna 1.194 km Budapest 957 km

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4.8.4 HUMAN RESOURCES AND EDUCATION

Population: 11.567 inhabitants (according to the census of 2002). Gender structure: 5.979 men, 5.588 women. Ethnic structure of the population: 91,92% Macedonians, 0,21% Serbs, 0,29% other. Educational institutions: At the territory of the municipality there are two primary schools.

4.8.4.1 Age structure of the population (2014) Figure 4.8-1 Population pyramid – Novo Selo

80+ 75-79 Men Women 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4

-500 -400 -300 -200 -100 0 100 200 300 400 500 600

Source: State Statistical Office, 2015 4.8.4.2 Active and passive job seekers Number of unemployed people: 1.061 (as of 31.11.2015 ). Figure 4.8-2 Unemployed people - Novo Selo

Women

Men

0 100 200 300 400 500 600 700

Active job seekers Passive jobseekers

Source: Employment Service Agency, Republic of Macedonia, 2015.

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4.8.4.3 Age structure of the unemployed Figure 4.8-3 Active job seekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 5 10 15 20 25 30 35

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. Figure 4.8-4 Passive jobseekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 20 40 60 80 100 120 140

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015.

4.8.4.4 Educational structure of the unemployed

Unemployed by education Total Men Women

Doctor of science Masters of Science 2 1 1 High education 50 22 28 Higher School 8 6 2 Completed secondary education 239 112 127 Incomplete secondary education 175 113 62 Completed eighth and without education 587 87 227 Total 1.061 341 447

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4.8.5 LOCAL ECONOMY

Number of active business entities: 242. Figure 4.8-5 Active business entities -Novo Selo

200

150

100

0 2009 2010 2011 2012 2013 2014

Micro Small Medium Large

Source: State Statistical Office, 2015 Dominant industries: Agriculture, tobacco production, food industry, textile industry, woodprocessing industry, construction industry. Figure 4.8-6 Number of business entities in the dominant industries– Novo Selo

30 Agriculture, Forestry and Fisheries

25 Manufacturing 20 Civil Engineering 15 Transportation and storage 10

5 Accommodation and food service activities 0 2012 2013 2014 Information and communication

Source: State Statistical Office, 2015 Main comparative advantages of the Municipality : the only municipality in the country that borders two European Union countries, has a border crossing. Most important local enterprises: Kolid Foods DOOEL (food industry); Dzovi Company DOOEL (construction industry); Jastreb DOOEL (wood processing industry); Riko-Gradba DOOEL, Piramida DOOEL (construction industry); Alumin - BD DOO (metal processing industry). Most important foreign investors: No . Mineral resources: No. Tourism and catering industry: 1 hotel, 10 restaurants, 1 coffee bar, 1 night club

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4.8.6 INDUSTRIAL ZONES AND LOCATIONS FOR INVESTMENT

Municipality of Novo Selo has four industrial zones: Industrial zone “Borisovo”, Industrial Zone “Mokrino-Mokrievo”, Industrial zone “Brod-Zubovo” and a new one . Industrial zone ONAA STRANA Municipal contributions for investing in the industrial zones: The Municipal Council, upon investor’s request, can adopt a decision and allow special advantages and contributions provided the investment is strategic for the region. Figure 4.8-7 Industrial zones and locations for investment – Municipality Novo Selo

индустриска зона Брод-Зубово industrial zone Brod-Zubovo

индустриска зона Борисово индустриска зона Мокрино-Мокриево industrial zone Borisovo industrial zone Mokrino Mokrievo

индустриска зона ОНАА СТРАНА industrial zone ONAA STRANA

4.8.7 INDUSTRIAL ZONE BORISOVO

Area size: 249.000 м2. Percentage of construction: 30%. Ownership: 20% state, 80% private. Location (distance of the industrial zone to the Municipality center): 6 km to Novo Selo.. Infrastructure: accessible roads, substation, lighting, Companies working in the industrial zone: „ Kolid Foods DOOEL, Sicilija DOOEL and Pot Koleshino. Table 4-22 Features of the free construction sites– Borisovo Compensation Area foreseen Max for No. of Initial price of for allowed arrangement of Purpose construction Land area the land (den / construction height up to construction lot m2) (m2) attic (m) land – price (den / m2) 1-3 2.940 999 G+2 61 300 G2,G3, G4 1-5 2.740 1.156 G+2 61 300 G2,G3, G4 1-7 4.007 1.692 G+2 61 300 G2,G3, G4 1-30 3.210 1.421 G+2 61 300 G2,G3, G4

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Figure 4.8-8 Images of the industrial zone„BORISOVO“

Figure 4.8-9 Urban plan of the industrial zone BORISOVO

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4.8.8 INDUSTRIAL ZONE „MOKRINO-MOKRIEVO“

Area size: 163.029 м2. Percentage of construction: 20%. Ownership: 30% state, 70% private. Location (distance of the industrial zone to the Municipality center): 7, 5 km to Novo Selo. Infrastructure: accessible roads. Companies working in the industrial zone: Dzam Prom DOOEL - wood processing industry and Eco Podgor DOOEL - purchase center for agricultural products. Table 4-23 Features of the free construction sites– MOKRINO-MOKRIEVO Area Max Compensation for No. of Initial price foreseen for allowed arrangement of Purpose construction Land area of the land construction height up construction land – lot (den / m2) (m2) to attic (m) price (den / m2) 1 1.935 867 G+1 61 200 G2,G3, G4 2 2.240 1.418 G+1 61 200 G2,G3, G4 3 2.034 1.226 G+1 61 200 G2,G3, G4 4 1.971 1.139 G+1 61 200 G2,G3, G4 5 1.941 1.170 G+1 61 200 G2,G3, G4 6 2.061 1.042 G+1 61 200 G2,G3, G4 11 1.566 765 G+1 61 200 G2,G3, G4 12 2.454 1.288 G+1 61 200 G2,G3, G4 14 756 357 G+1 61 200 G2,G3, G4 16 831 238 G+1 61 200 G2,G3, G4 19 2.767 1.056 G+1 61 200 G2,G3, G4 20 3.719 1.822 G+1 61 200 G2,G3, G4 21 8.662 4.674 G+1 61 200 G2,G3, G4 23 16.627 12.672 G+1 61 200 G2,G3, G4 24 2.669 1.406 G+1 61 200 G2,G3, G4

Figure 4.8-10 Images of the industrial zone MOKRINO-MOKRIEVO

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4.8.9 INDUSTRIAL ZONE BROD-ZUBOVO

Area size: 39.866 м2. Percentage of construction: unconstructed. Ownership: 100% private. Location (distance of the industrial zone to the Municipality center): 4 km to Novo Selo. Infrastructure: accessible roads. Companies working in the industrial zone: No. Features of the free construction sites: detailed information can be obtained at the Department of Urban Planning within the Municipality of Novo Selo. Purpose for free construction sites: G2, G3, G4 - easy and non polluting industry, services, and warehouses. Figure 4.8-11 Urban plan of the industrial zone Brod-Zubovo

Figure 4.8-12 Images of the industrial zone Brod-Zubovo

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4.8.10 INDUSTRIAL ZONE ONAA STRANA

Area size: 14.200 м2. Percentage of construction: unconstructed. Ownership: 100% state. Location (distance of the industrial zone to the Municipality center): 3 km to Novo Selo. Infrastructure: accessible roads. Companies working in the industrial zone: No. Features of the free construction sites: detailed information can be obtained at the Department of Urban Planning within the Municipality of Novo Selo. Purpose for free construction sites: B5, D2 - hotel complex, light and non-polluting industry. Figure 4.8-13 Urban plan of the industrial zone ONAA STRANA

Table 4-24 Features of the free construction sites Max Compensation Area foreseen No. of allowed Initial price of for arrangement for Purpose construction Land area height the land (den / of construction construction lot up to m2) land – price (den (m2) attic (m) / m2) 1.1 28.077 11.795 G+2 61 200 B5 2.1 3.498 1.520 G+2 61 200 G2 2.2 3.597 1.400 G+2 61 200 G2 2.3 4.825 1.988 G+2 61 200 G2 2.4 4.100 1.495 G+2 61 200 G2

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4.9.1 BRIEF DESCRIPTION OF THE MUNICIPALITY

Municipality of Radovis is located in the southeastern part of the Republic of Macedonia and it occupies the northwestern part of Strumica – Radovis valley. The northern relief terrain of the municipality belongs to Plachkovica mountain while the southern to Smrdesnik mountain. The hilly area of Jurukluk along with the basin of Damjansko field is located to the northwest, and to the southeast is the floodplain of the river Radovishka. The Municipality of Radovish borders many municipalities: Municipality of Konche to the southwest, Municipality of Berovo to the east, Municipality of Vasilevo to the south, Municipality of Stip to the northwest and municipalities of Karbinci and Vinica to the north. According to the territorial organization of the local government units of 2005, the territory of Municipality of Radovish covers the city of Radovish and the following 20 populated surroundings: Oraovica, Podaresh, Jargulica, Pokrajchevo, Zleovo, Vojslavci, Suldurci, Kalugjerica, Injevo, Alikoch, Kodzalija, Buchim, Parnalija, Kozbunar, Smilanci, Shturovo, Supurgje, Kalauzlija, Buchim and Topolnica.

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4.9.2 GENERAL INFORMATION

HQ of the Municipality Radovis Address Bull. "Aleksandar Makedonski" no. 7, 2420 Radovish Location (latitude - longitude) N 41° 38’ E22° 28’ Contact Tel. +389 (0)34 635-007; fax +389 (0)34 630-290 Email [email protected] Web site www.radovis.gov.mk Elevation 380 m Area 608 km2 Population 28.244 Municipality celebration day November 6 (Liberation of Radovish) 4.9.3 TRANSPORT NETWORK

Table 4-25 Transport network Highways, expressways and motorways Direct access to the main road A4. Regional roads that pass through the Municipality Р1310, Р1403, Р2431, Р2433, Р29471 Distance from the municipal airport (km) Alexander the Great - Skopje 107 km St. Apostle Paul - Ohrid 232 km Airport Thessaloniki, Greece 177 km Sofia Airport, Bulgaria 256 km Distance from the municipal railway Railway Station Gevgelija 88 km Railway station Miravci 74 km Railway station Stip 40 km Distance of the Municipality from port (km) Port of Thessaloniki, Greece 151 km Port of Durres, Albania 396 km Port Burgas, Bulgaria 590 km Distance from the municipal border crossing (km) Greece 80 km Bulgaria 57 km Serbia 138 km Kosovo 144 km Albania 270 km Distance of the Municipality from major cities (km) Skopje 126 km Thessaloniki 154 km Sofia 253 km Belgrade 526 km Zagreb 914 km Istanbul 740 km Vienna 1.135 km Budapest 898 km

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4.9.4 HUMAN RESOURCES AND EDUCATION

Population: 28.244 inhabitants (according to the census of 2002). Gender structure: 14.352 men, 13.892 women. Ethnic structure of the population: 84,10% Macedonians, 14,38% Turks, 0,25% Serbs, 0,96% Roma, 0,31% other. Educational institutions: At the territory of the municipality there is one high school and five primary schools. 4.9.4.1 Age structure of the population (2014) Figure 4.9-1 Population pyramid – Radovis

80+ 75-79 Men Women 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4

-1500 -1000 -500 0 500 1000 1500

Source: State Statistical Office, 2015 4.9.4.2 Active and passive job seekers Number of unemployed people: 2.853 (as of 31.11.2015 ). Figure 4.9-2 Unemployed people - Radovis

Women

Men

0 200 400 600 800 1000 1200 1400 1600 1800

Active job seekers Passive jobseekers

Source: Employment Service Agency, Republic of Macedonia, 2015.

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4.9.4.3 Age structure of the unemployed Figure 4.9-3 Active job seekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 50 100 150 200 250

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015.

Figure 4.9-4 Passive jobseekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 50 100 150 200 250

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. 4.9.4.4 Educational structure of the unemployed

Unemployed by education Total Men Women

Doctor of science Masters of Science 12 3 9 High education 274 115 159 Higher School 80 40 40 Completed secondary education 896 396 500 Incomplete secondary education 250 183 67 Completed eighth and without education 1.341 87 508 Total 2.853 824 1.283

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4.9.5 LOCAL ECONOMY

Number of active business entities: 894. Figure 4.9-5 Active business entities -Radovis

700 600 500 400 300 200 100 0 2009 2010 2011 2012 2013 2014

Micro Small Medium Large

Source: State Statistical Office, 2015 Dominant industries: tobacco production, food industry, textile industry, wood - processing industry, construction industry, manufacturing of paper and paper packaging. Figure 4.9-6 Number of business entities in the dominant industries– Radovis

Agriculture, Forestry and Fisheries 140

120 Mining and quarrying

100 Manufacturing

80 Civil Engineering 60 Transportation and storage 40

20 Accommodation and food service activities 0 Information and communication 2012 2013 2014

Source: State Statistical Office, 2015 Main comparative advantages of the Municipality: Abundance in various ore concentrated on a small area (copper, gold, silver, iron and lead), favorable climatic conditions (blend of Mediterranean and mild continental climate – 276 sunny days), and a favorable geographical position (equal strategic communication with most major urban centers). Most important local enterprises: Buchim (Mining - copper, gold, silver, etc.); Alfainzhinering (energetics, construction , etc. ) ; Suppliers Andonovi, 6ti Noemvri ( processing and preserving of meat and meat products ) , Mardi , MK Markos, MK Marteks, Dekorteks, Super Hit ( textile industry), AD Jaka Tabak (tobacco industry); Tehnika (construction) Kometal Petre, Semi, Metalpromet (metallurgy) ; Gold Mak (processing of precious metals - gold, silver), 22ri Oktomvri (trade - electrical materials); Roloplastika (processing of plastics and PVC sewer pipes, etc. ) Modern home Bazhe (wood industry and packaging); Valentina promet (trade, construction materials); Flores, Fungi Flora, Best Food (purchase and processing of agricultural products, forest

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MUNICIPALITIES IN THЕ SOUTHEAST REGION fruits); Detonim Buchim (production and sales of explosives); Dairy Gorgievi (processing of milk and production of dairy products) , Di trans DOO (transport). Most important foreign investors: Buchim (Russia) - mining (copper, gold, silver, etc.). Mineral resources: clay kaolin, quartz, granite, lime, iron, copper, lead, zinc, gold and silver. Tourism and catering industry: 5 hotels, 25 restaurants and pizza restaurants, 4 coffee bars, 2 night clubs. 4.9.6 INDUSTRIAL ZONES AND LOCATIONS FOR INVESTMENT

Municipality of Radovish has 2 Industrial zones–Industrial zone “Radovish” and Industrial zone “Podaresh”. Municipal contributions for investing in the industrial zones: The Municipal Council, upon investor’s request, can adopt a decision and allow special advantages and contributions provided the investment is strategic for the region. Figure 4.9-7 Industrial zones and locations for investment – Municipality Radovis

индустриска зона Радовиш industrial zone Radovis

индустриска зона Подареш industrial zone Podares

индустриска зона Долна Рудина industrial zone Dolna Rudina

4.9.7 INDUSTRIAL ZONE „RADOVIS“

Area size: 1.319.000 м2. Percentage of construction: 40%. Ownership: undefined. Location (distance of the industrial zone to the Municipality center): 2 km. Infrastructure: water supply, sewerage, substation, accessible roads, lighting. Companies working in the industrial zone: Best Food, Super Hit, Dekorteks, 6ti Noemvri, Metalpromet, Semi, Dairy Gorgievi, Jaka Tabak and other. Features of the free construction sites: The new detailed urban plan for this industrial zone is under construction.

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Figure 4.9-8 Images of the industrial zone „Radovis“

4.9.8 INDUSTRIAL ZONE PODARES

Area size: 55.300 м2. Percentage of construction: unconstructed. Ownership: 100% state. Location (distance of the industrial zone to the Municipality center): 10 km. Infrastructure: water supply, sewerage, substation, accessible roads, lighting. Companies working in the industrial zone: No. Features of the free construction sites: Detailed information may be obtained at the Department for Urban Planning within the Municipality of Radovish. Figure 4.9-9 Images of the industrial zone Podares

4.9.9 INDUSTRIAL ZONE DOLNA RUDINA

Area size: 92.600 м2. Percentage of construction: unconstructed. Ownership: 100% state. Infrastructure: There is an approachable regional roads, no water, sewerage, electricity Companies working in the industrial zone: No. Distance from main transport centers: Thessaloniki 170 km, Skopje 120 km Distance from the main highway: 800 m. Distance from train station: 36 km Distance from international airport: 98 km

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Distance from nearby cities: Strumica 28 km, Stip 32 km Features of the free locations for construction: The locations with irregular geometric shapes Table 4-26 Features of free construction locations Compensation Area No. of Max allowed Initial price of for arrangement foreseen for Purpose construc Land area height up to the land (den / of construction constructio tion lot attic (m) m2) land – price (den n (m2) / m2) 1.1 2852 1102 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.2 3220 1806 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.3 3777 2030 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.5 1952 867 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.6 1532 690 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.7 1241 698 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.8 1742 690 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.9 1469 599 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.10 1868 1169 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.11 2014 1044 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.12 2207 1227 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.13 2279 1289 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.14 1408 798 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.15 1450 705 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.16 1107 470 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.17 1351 727 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.18 1556 788 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.19 1361 761 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.20 2036 1086 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.21 2455 1401 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.22 3536 1993 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.23 3358 2043 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.24 5015 3062 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.26 4836 3028 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.27 2268 1251 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.28 3558 2028 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.29 5917 3577 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.30 5253 3380 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 1.32 4290 2575 15 m. (G+2) 61 MKD 67 MKD. G2,G3,G4 Detailed information may be obtained at the Department for Urban Planning within the Municipality of Radovish.

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4.10.1 BRIEF DESCRIPTION OF THE MUNICIPALITY

In the southeastern part of Republic of Macedonia, just under the state borders with Bulgaria and Greece the fertile Strumica valley is located and in its western part is the eponymous Municipality of Strumica. The Municipality is characterized by 230 sunny days, favorable climate, healing water and natural rarities. Strumica is the economic and cultural center of southeastern Macedonia, which in recent years grew from agricultural to agrarian - industrial area. Historically, from Astraion to Tiberiopolis and to present day Strumica, the material and spiritual treasure of this city has increased overtime. Tsar’s Towers and other localities just like The Fifteen Holy Hieromartyrs of Tiberiopolis, the Orta Mosque, the late Roman spa in Bansko, the monastery complexes in Vodocha and Veljusa should be seen by any tourist or accidental visitor of Strumica. The Municipality has adopted ISO 9001:2008 (quality management systems) & ISO 14001:2004 (environmental management systems). Further, the Municipality of Strumica has a B1 credit rating issued by the international credit agency Moody’s. According to the territorial organization of the local government units of 2005, the territory of Municipality of Strumica covers the city of Strumica and the following 24 populated surrounding areas: Banica, Bansko, Belotino, Veljusa, Vodocha, Gabrovo, Gradsko Baldovci, Dabilja, Dobrejci, Dorlombos, Zleshevo, Kosturino, Kuklish, Memeshli, Murtino, Ormanli, Popchevo, Prosenikovo, Raborci, Rich, Sachevo, Svidovica, Tri Vodi and Chepeli.

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4.10.2 GENERAL INFORMATION HQ of the Municipality Strumica Address St. "Sando Masev" no. 1, Strumica Location (latitude - longitude) N 41° 26 E 22° 38' Contact Tel. +389 (0)34 348-030;fax +389 (0)34 320-544 Email [email protected] Web site www.strumica.gov.mk Elevation 239 m Area 321,89 km2 Population 54.676 Municipality celebration day December 11 (Patrons and protectors day of Strumica) 4.10.3 TRANSPORT NETWORK

Table 4-27 Transport network Indirect access to the highway A1 Highways, expressways and motorways through the regional road R1401; direct access to the main road A4. Р1302, Р1401, Р1402, Р1403, Р2432, Regional roads that pass through the Municipality Р2434 Distance from the municipal airport (km) Alexander the Great - Skopje 132 km St. Apostle Paul - Ohrid 258 km Airport Thessaloniki, Greece 147 km Sofia Airport, Bulgaria 237 km Distance from the municipal railway Railway Station Gevgelija 48 km Railway station Miravci 38 km Railway station Stip 66 km Distance of the Municipality from port (km) Port of Thessaloniki, Greece 124 km Port of Durres, Albania 422 km Port Burgas, Bulgaria 572 km Distance from the municipal border crossing (km) Greece 46 km Bulgaria 27 km Serbia 163 km Kosovo 169 km Albania 270 km Distance of the Municipality from major cities (km) Skopje 150 km Thessaloniki 124 km Sofia 234 km Belgrade 565 km Zagreb 953 km Istanbul 710 km Vienna 1.173 km Budapest 937 km

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4.10.4 HUMAN RESOURCES AND EDUCATION Population: 54.676 inhabitants (according to the census of 2002). Gender structure: 27.340 men, 27.336 women. Ethnic structure of the population: 91,50% Macedonians, 6,87% Turks, 0,34% Serbs, 0,27% Roma, 0,62% other. Educational institutions: Municipality of Strumica operates with 10 municipal primary schools with 14 regional schools with 5.645 students as well as three high schools with 4.053 students and one private high school, “Yahya Kemal”. Also, there are several institutions of higher education operating at the territory of the municipality:  State University “Goce Delchev” - Shtip with dispersed studies in agriculture, informatics, economics and education Sciences;  Private University “FON” with dispersed undergraduate and post graduating studies in the following faculties: Faculty of Law, Economic Sciences, Philological Sciences and Faculty of Detectives and Security;  Business Academy “Smilevski” with dispersed undergraduate and post graduating studies in Operational Management. 4.10.4.1 Age structure of the population (2014) Figure 4.10-1 Population pyramid – Strumica

80+ Men Women 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4

-3000 -2000 -1000 0 1000 2000 3000

Source: State Statistical Office, 2015

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4.10.4.2 Active and passive job seekers Number of unemployed people: 6.910 (as of 31.11.2015 ). Figure 4.10-2 Unemployed people - Strumica

Women

Men

0 500 1000 1500 2000 2500 3000 3500 4000

Active job seekers Passive jobseekers

Source: Employment Service Agency, Republic of Macedonia, 2015. 4.10.4.3 Age structure of the unemployed Figure 4.10-3 Active job seekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 50 100 150 200 250 300 350

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015. Figure 4.10-4 Passive jobseekers

60+ 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 100 200 300 400 500 600 700

Men Women

Source: Employment Service Agency, Republic of Macedonia, 2015.

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4.10.4.4 Educational structure of the unemployed

Unemployed by education Total Men Women Doctor of science 2 1 1 Masters of Science 26 13 13 High education 451 155 296 Higher School 136 67 69 Completed secondary education 1.517 643 874 Incomplete secondary education 977 549 428 Completed eighth and without education 3.801 87 1.494 Total 6.910 1.515 3.175

4.10.5 LOCAL ECONOMY

Number of active business entities: 2.394. Figure 4.10-5 Active business entities -Strumica

2000

1500

1000

500

0 2009 2010 2011 2012 2013 2014

Micro Small Medium Large

Source: State Statistical Office, 2015 Dominant industries: Agriculture, food industry, textile industry, wood processing industry, construction, production of construction materials. Figure 4.10-6 Number of business entities in the dominant industries– Strumica

250 Agriculture, Forestry and Fisheries

Civil Engineering 200 Transportation and storage 150 Accommodation and food service activities 100 Information and communication

50 Professional, scientific and technical activities Other service activities 0 2012 2013 2014

Source: State Statistical Office, 2015

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Main comparative advantages of the municipality: Proximity and connectivity to the European borders and markets, access to natural gas, arranged industrial zones, developed economy, favorable climatic conditions for agricultural development, rich natural, cultural and historical heritage and high quality of life. Most important local enterprises: AD “Nemetali Ograzden” (non-metallic mineral raw materials), AD IGM “Elenica” (production of terracotta bricks for construction), AD “Sankeram” (production of sanitary ceramics), “Nikov” Dooel (furniture manufacturing), “Savelo” (furniture manufacturing), “Al-mak” Dooel (furniture manufacturing), “Izolmak fibran” (production of expanded polystyrene), ADPS “Edinstvo” (clothing production), AD “Strumica Tabak” (purchase and fermentation of tobacco), AD “Zito Strumica” (production and trade of mill products), AD “Grozd” Strumica (production of distilled liquors, soft drinks and carbonated and mineral water from its own spring), “Mabi trejd Dentina” (vegetable and fruit processing), “Agrokomerc” (vegetable and fruit processing), “Trgoprodukt” (vegetable and fruit processing), “Agrofruktus” (purchase – distribution centers for vegetables and fruits), “Al Maks” (production of edible oil), DTP “Maks” Dooel (packs of powdered and granular products), DPUT “Joka” Doo (milk processing and production of dairy products). Most important foreign investors: A D “Strumica Tabak” - purchase and fermentation of tobacco (Greece); “Plodovi Fruktus” Dooel – purchase - distribution center for vegetables and fruits (Croatia); “Al Maks” - production of edible oil (Turkey). Mineral resources: Presence of non mineral raw materials: feldspar. Tourism and catering industry: 10 Hotels and motels, 27 restaurants and pizza restaurants, 10 coffee bars and 2 night clubs. 4.10.6 INDUSTRIAL ZONES AND LOCATIONS FOR INVESTMENT

Municipality of Strumica has several development industrial zones which have a well-established infrastructure and signalization. The Municipality is responsible for the development and promotion of its zones and offers a set of contributions that apply to all industrial zones. Municipal contributions for investing in the industrial zones:  Reduced the fee for arranging the construction land depending on the amount of investment, number of new jobs, use of domestic raw materials, production of finished or semi - finished products, introduction of new technologies, creation of new product range and the fulfilment of environmental standards;  Logistic support for investors by the municipal administration in securing all the necessary permits and approvals;  Efficient municipal administration working under the international quality standard, ISO 9001: 2008 and the international standard for environmental management ISO 14001:2004. Figure 4.10-7 Industrial zones and locations for investment – Municipality Strumica

ИЗ Блок 42 ИЗ Север IZ Block 42 IZ North

ИЗ Агроберза IZ Agroberza

ИЗ Блок 19 IZ Block 19

ИЗ Блок 15 ИЗ Сарчево IZ Block 15 IZ Sarchevo ИЗ Блок 18 IZ Block 18 ИЗ Блок 17 IZ Block 17

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4.10.7 INDUSTRIAL ZONE URBAN BLOK 42

Area size: 135.000 м2. Percentage of construction: 15%. Ownership: 12% state, 88% private. Location (distance of the industrial zone to the Municipality center): 1,5 km. Infrastructure: water supply, sewerage, gas network, substation, accessible roads, lighting. Companies working in the industrial zone: gas station LUKOIL. Features of the free construction sites: Detailed information may be obtained at the Sector for Urban Planning and Communal Affairs within the Municipality of Strumica. Purpose of the free construction sites: B1 – small commercial and business units. Figure 4.10-8 Images of the industrial zone „URBAN BLOK 42“

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Figure 4.10-9 Detailed urban plan of the industrial zone „URBAN BLOK 42“

4.10.8 INDUSTRIAL ZONE SEVER

Area size: 500.000 м2. Percentage of construction: 35%. Ownership: 15% state, 85% private. Location (distance of the industrial zone to the Municipality center): 1 km. Infrastructure: water supply, sewerage, gas network, substation, accessible roads, lighting. Companies working in the industrial zone:: furniture factory “Savelo”, catering facility – restaurant “Pala”, company for construction and trade “Zikol” DOOEL, dairy factory “Joka”, canning factory “Agro Komerc – 92”, catering facility – restaurant “Emi”, tiles and sanitaryware showroom “Santorini”, gas station “Minka”, appliances/white goods showroom “Elektromehanika”, construction company “Jugosurovina”, furniture showroom “As – Ti - 2007”, company for production, trade and services “Vema”, construction enterprise “Dojrana”, company for trade and distribution of thermal-insulating materials “Izolmak”, company for production, trade and services “Tomi - 98”, DPTU “Super Nova Import”, company for production of metal constructions “Kibo – 2008”, company for production and construction “V_Inzhenering”, Auto repair service VD DOOEL, architecture firm “Geokontrol”, textile factory “Sandi Tekst”. Features of the free construction sites: Detailed information may be obtained at the Sector for Urbanism and Communal activities in the Municipality of Strumica.

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Purpose of the free construction sites: B1 – small commercial and business units. Figure 4.10-10 Detailed urban plan of the industrial zone Sever

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Figure 4.10-11 Images of the industrial zone Sever

4.10.9 INDUSTRIAL ZONE AGROBERZA

Area size: 153.000 м2. Percentage of construction: 20%. Ownership: 80% state, 20% private. Location (distance of the industrial zone to the Municipality center): 1,5 km. Infrastructure: water supply, sewerage, gas network, substation, accessible roads, lighting. Companies working in the industrial zone: Agrofruktus - specialized enterprise for production, trade of fruits and vegetables. Figure 4.10-12 Detailed urban plan of the industrial zone AGROBERZA

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Table 4-28 Features of the free construction sites Compensation Area No. of Max allowed Initial price of for arrangement foreseen for Purpose construc Land area height up to the land (den / of construction constructio tion lot attic (m) m2) land – price (den n (m2) / m2) GP 5 43.020,32 21.510,16 11 3.000 3.800 B1

Figure 4.10-13 Images of the industrial zone AGROBERZA

4.10.10 INDUSTRIAL ZONE „URBAN BLOK 19“

Area size: 267.700 м2. Percentage of construction: 5%. Ownership: 20% state, 80% private. Location (distance of the industrial zone to the Municipality center): 2 km. Infrastructure: water supply, sewerage, gas network, substation, accessible roads, lighting. Companies working in the industrial zone: gas station LUKOIL Table 4-29 Features of the free construction sites Compensation Area No. of Max allowed Initial price of for arrangement foreseen for Purpose construc Land area height up to the land (den / of construction constructio tion lot attic (m) m2) land – price (den n (m2) / m2) GP 2.22 6.469,0 3.318,6 10,2 61 308,3 G2,G3,G4 GP 2.16 3.212,1 2.150,2 10,2 61 308,3 G2,G3,G4 GP 2.17 1.495,5 795,9 10,2 61 308,3 G2,G3,G4 GP 2.22 1.379,2 715,8 10,2 61 308,3 G2,G3,G4 GP 2.20 1.978,4 1.197,3 10,2 61 308,3 G2,G3,G4 GP 2.21 1.763,2 1.022,1 10,2 61 308,3 G2,G3,G4 GP 2.18 2.206,6 1.360,3 10,2 61 308,3 G2,G3,G4 GP 2.19 2.196,7 1.365,7 10,2 61 308,3 G2,G3,G4 GP 2.13 1.469,8 796,9 10,2 61 308,3 G2,G3,G4 GP 2.14 1.012,6 479,2 10,2 61 308,3 G2,G3,G4 GP 2.12 1.759,6 1.002,4 10,2 61 308,3 G2,G3,G4 GP 2.5 1.572,6 879,9 10,2 61 308,3 G2,G3,G4

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GP 2.6 1.160,2 612,4 10,2 61 308,3 G1,G2,G3 GP 2.2 1.986,2 1.217,6 10,2 61 308,3 G1,G2,G3 GP 2.3 1.322,0 693,1 10,2 61 308,3 G2,G3,G4 GP 2.4 1.579,9 887,2 10,2 61 308,3 G2,G3,G4 GP 2.7 2.867,2 1.874,1 10,2 61 308,3 G2,G3,G4 GP 2.8 2.837,7 1.827,7 10,2 61 308,3 G2,G3,G4 GP 2.9 1.666,2 926,3 10,2 61 308,3 G2,G3,G4 GP 1.27 1.848,0 809,3 10,2 61 308,3 G2,G3,G4

Figure 4.10-14 Detailed urban plan of the industrial zone URBAN BLOK 19

Figure 4.10-15 Images of the industrial zone URBAN BLOK 19

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4.10.11 INDUSTRIAL ZONE URBAN BLOK 17 И 17_1

Area size: 314.500 м2. Percentage of construction: 8%. Ownership: 3% state, 97% private. Location (distance of the industrial zone to the Municipality center): 1 km. Infrastructure: water supply, sewerage, gas network, substation, accessible roads, lighting. Companies working in the industrial zone: KSK Mebel, Megasoft, Intrama.. Features of the free construction sites: Detailed information may be obtained at the Sector for Urban Planning and Communal Affairs within the Municipality of Strumica. Purpose of the free construction sites: G2, G3, G4 - easy and non polluting industry, services, and warehouses. Figure 4.10-16 Detailed urban plan of the industrial zone URBAN BLOK 17 and 17/1

Figure 4.10-17 Images of the industrial zone URBAN BLOK 17 and 17/1

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4.10.12 INDUSTRIAL ZONE URBAN BLOK 15

Area size: 126.800 м2. Percentage of construction: 20%. Ownership: 30% state, 70% private. Location (distance of the industrial zone to the Municipality center): 1 км. Infrastructure: water supply, sewerage, gas network, substation, accessible roads, lighting. Companies working in the industrial zone: Zito Strumica. Features of the free construction sites: Detailed information may be obtained at the Sector for Urban Planning and Communal Affairs within the Municipality of Strumica. Purpose of the free construction sites: G2, G3, G4 - easy and non polluting industry, services, and warehouses. Figure 4.10-18 Detailed urban plan of the industrial zone URBAN BLOK 15

Figure 4.10-19 Images of the industrial zone URBAN BLOK 15

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4.10.13 INDUSTRIAL ZONE SACEVO

Area size: 408.400 м2. Percentage of construction: 10%. Ownership: 100% private. Location (distance of the industrial zone to the Municipality center): 3 km distance from the city of Strumica. Infrastructure: The infrastructure is under construction (water supply, sewerage and accessible roads). Companies working in the industrial zone: MULTIHELM (detergent manufacturing plant) Figure 4.10-20 Detailed urban plan of the industrial zone Sacevo

Figure 4.10-21 Images of the industrial zone Sacevo

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4.10.14 INDUSTRIAL ZONE „URBAN BLOK 18“

Area size: 252.063 м2. Percentage of construction: 8,16%. Location (distance of the industrial zone to the Municipality center): 1, 5 km from of Strumica. Infrastructure: The infrastructure is under construction (water supply, sewerage and accessible roads). Table 4-30 Features of the free construction sites Area Compensation Max No. of foreseen Initial price of for arrangement allowed Purpose construc Land area for the land (den / of construction height up to tion lot constructio m2) land – price (den attic (m) n (m2) / m2) 1.18.2 3.202 2.692 15 G2,G3,G4 3.18.2 6.887 4.821 15 G2,G3,G4 6.18.2 82 22 3 G2,G3,G4 8.18.2 913 639 G2,G3,G4 94.18.2 1.628 1.168 15 G2,G3,G4 97.18.2 18.502 12.955 10 B1 other 168.623 115.335 G2,G3,G4

Figure 4.10-22 Detailed urban plan of the industrial zone URBAN BLOK 18

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