RECAPITULALTION OF POTENTIAL INDUSTRIAL ZONES IN MIDDLE CANTON (SBK)

There are in total 32 industrial/business zones nominated in Middle Bosnia Canton (MBC). Only Dobretiči municipality did not nominate a zone.

NO MUNICIPALITY TOTAL Brown Green Entrepreneur Other green brown 1 4 1 3 2 7 3 1 1 2 3 1 1 4 2 1 1 5 3 1 1 1 6 1 1 Gornji 7 Vakuf/Uskoplje 2 2 8 1 1 9 Kreševo 1 1 10 8 1 1 3 2 1 11 Busovača 2 2 12 Dobretići 0 Total: 32 13 8 5 2 4

Table 2.1. Overview of nominated zones by municipalities of MBC region

One location for potential industrial/business zone was nominated by municpalities Fojnica , Donji Vakuf, Kiseljak and Kreševo each. Municipalities : Gornji Vakuf/Uskoplje, Bugojno and Busovača nominated two locations each. Municipality Novi Travnik nominated three locations. Municipality Vitez nominated four locations. Municipality of Travnik nominated seven and municipality of Jajce nominated eight locations. Out of this number there are 13 brown locations, eight green, seven entrepreneur locations and four other locations (three agricultural and one tourist location).

Surface of nominated green industrial business zones is 422 ha with possibility of expansion of additional 226 ha. Surface of identified brown zones is 649.70 ha with possibility of expansion of additional 16 ha. The surface of entrepreneur brown zones is 9.8 ha and entrepreneur green zones is 21.60 ha with possibility of expansion of additional of 2 ha. The surface of the only touristic zone (Sebešić in Novi Travnik municipality) is 4,000 ha. Average size of green industrial zones is 55.75 ha, brown 49.97, entrepreneur brown zone 4.9 ha, entrepreneur green zones 4.32 ha and agricultural zones 9.01 ha.

Surface Average Average Type of industrial Num Surface for distance from distance business zone (IZ) ber IZ in ha expansi regional road from railroad on in in km communicati ha on in km green 8 422.00 226 0,0 38,13 brown 13 649.70 16 0,0 47,15 entrepreneur-brown 2 9.80 0 0,0 62,2 entrepreneur-green 5 21.60 2 0,0 75,0 agricultural 3 27.30 0 0,0 66,7 4000.0 touristic 1 0 0 0,0 70,0 5130.4 0,0 51,30 Total 32 244 0

Table 2.2. Review of surfaces of nominated industrial / business / entrepreneur zones

On the basis of the presented data on surfaces of nominated industrial / business and entrepreneur zones in MBC municipalities we can conclude that total surface of nominated zones is 5,130.40, in fact only 1,130.4 ha (if we exclude touristic zone Sebešić – Novi Travnik). We consider this limited surface for the needs of the long term development of the economy in MBC. In that sense it would be necessary to initiate with municipalities the proposal to include additional larger locations where industrial / business zones could be realized.

According the review of industrial zones by municipality and type we can note that there is 1 green industrial zone surface of which is 14 ha, three brown zones total surface of 51.10 ha, one entrepreneur green zone of 6.7 ha, and two agricultural zones (Mudrike and Vitovlje) of total surface 9.2 ha. Therefore Travnik municipality identified 7 industrial zones, total surface 81 ha.

In Novi Travnik municipality, total identified industrial zones 3, one green (Neobarje) of 55 ha, one brown (MMK Bratstvo) of 50 ha and touristic zone (Sebesic) of 4000 ha. Total surface of industrial zones in Novi Travnik is 4105 ha.

In municipality Gornji Vakuf-Uskoplje there are two brown zones (Batuški Lug i Kamenica) total surface of 71.10 ha.

In municipality Bugojno there are two identified industrial zones of total surface of 157 ha with possible expansion of 20 ha. Green industrial zone (Bugojno 2) covers 120 ha with possible expansion of additional 20 ha, while brown industrial zone (Bugojno 1) covers area of 37 ha.

Municipality of Donji Vakuf identified one brow industrial zone covering 140 ha..

Municipality of Vitez identified 4 industrial zones of total surface of 380 ha with possibility of expansion of additional 200 ha. Out of this green industrial zone covers 140 ha and brown zone covers 240 ha.

Municipality of Kiseljak nominated one green industrial zone (Dugo Polje) total surface 27 ha.

Municipality of Fojnica identified one green industrial zone (Šipad Vranica) , total surface 15 ha.

Municipality of Kreševo nominated on entrepreneur green industrial zone (Resnik), surface of 1.2 ha, with possible expansion of additional 1 ha.

Municipality of Jajce nominated in total 8 industrial zones of total surface of 126.83 ha with possibility of expansion of aditional 1 ha. The structure of nominated industrial zones in Jajce municipality comprises of one green zone (Ekonomija Divičani) covering 66 ha, one brown industrial zone (Skela-Bage) covering 19,50 ha, two entrepreneur brown zones of total surface of 9.8 ha and three entrepreneur green zones of total surface of 13.7 ha, one agricultural zone (Prudi) covering 17.83 ha.

Municipality of Busovača nominated two industrial zones of total surface of 26 ha.

Municipality of Dobretići did not nominate a single zone.

ACCESS TO INDUSTRIAL ZONES AND STATUS OF ROAD COMMUNICATIONS

The average distance of green industrial zones from the regional road is 0 km so it can be concluded that all green industrial zones are located next to regional roads. Status of the road communications for most of the green industrial zones is good. Average distance of green industrial zones form the railroads is 38.13 km and this can be considered a relatively short distance. Average distance from the airport is 83.13 km, where green zone Bugojno 2 is the most distant (135 km) and industrial zone Dugo Polje Kiseljak is the closest (40 km). Average distance of green industrial zones form the centre of the municipality is 4.88 km so we can freely say that most of them are very close to the urban municipality area.

Average distance of brown industrial zones from the regional road in MBC is 0.262 km so we can say that the brown zones are also located next to regional roads. Status of road communications for all brown industrial zones in MBC is good and access to the zones is , in that sense, satisfactory. Average distance of brown industrial zones in MBC from the railroad is 47.15 km, form the airport 98.15. Municipalities of Jajce and Bugojno are the farthest (90 km and 135 km). Average distance from the centre of the municipality is 2.73 km, so for the brown industrial zones, as well as for the green, we can say that they are close to the urban areas of the municipality. Approximately the same values are for the other categories of industrial zones, entrepreneur brown and green, agricultural and touristic.

TOPOGRAPHY OF THE TERRAIN OF INDUSTRIAL / ENTREPRENOUR ZONES Topography of the terrain Mildly flat hilly sloaped Total Num Num Num Num ber % ber % ber % ber % Green 75,0 12,5 12,5 100,0 6 1 1 8 T % % % % y Brown 92,3 100,0 12 0 ,0% 1 7,7% 13 p % % e entreprenour-brown 100,0 100,0 2 1 ,0% 0 0,0% 2 of % % in entreprenour-green 80,0 20,0 100,0 4 2 ,0% 1 5 d % % % u Agricultural 66,7 33,3 100,0 0 ,0% 1 1 3 st % % % ri 100,0 100,0 0 ,0% 1 0 ,0% 1 al Touristic % % z Total o 100,0 n 24 5 4 32 e %

Table 2.3. Topography of the terrain of the nominated industrial / entrepreneur zones Topography of the terrain is flat in 6 of total 8 green industrial zones, one green zone has hilly and one has slightly sloped terrain. Twelve of total 13 brown industrial zones are located on the flat terrain while only one is located on slightly sloped terrain. Brown entrepreneur industrial zones are 100 % on the flat terrain, 4 out of in total 5 entrepreneur green industrial zones are on flat terrain which is 80%, only one entrepreneur zone is located on slightly sloped terrain. We can note that most of green, brown, entrepreneur brown and green industrial zones are located on a flat terrain which is favorable for development of industrial zone, i.e. does not complicate development of infrastructure and other structures in the zones.

DANGER FROM FLOD The following table shows that in 62.5 % of green, 61.5 % of brown, 40 % of entrepreneur green, 66.7 % agricultural and 100 % touristic industrial zones there is no danger of flooding, while in 25 % of green, 23.1 % of brown, 100 % of entrepreneur brown, 60 % of entrepreneur green and in 33 % of agricultural zones there is a danger of flooding. Partial danger of flooding exists in 12.5 % of green, 15.4 % of brown industrial zones. We can say that with most of the nominated industrial zones there is no danger of flooding and for those that can be in danger t the future development depends on solution of this problem which , as arule, requires significant financial funds.

Flood danger Partially existing existing Not existing Total % % % No. reda No. reda No. reda No. % reda Type of Green 25,0 12,5 62,5 2 1 5 8 100,0% industri % % % al zone Brown 23,1 15,4 61,5 3 2 8 13 100,0% % % % entreprene 100,0 2 0 ,0% 0 ,0% 2 100,0% ur brown % entreprene 60,0 40,0 3 0 ,0% 2 5 100,0% ur green % % Agricultura 33,3 66,7 1 0 ,0% 2 3 100,0% l % % touristic 100,0 0 ,0% 0 ,0% 1 1 100,0% %

Table 2.4. Flooding danger in nominated zones

OCCUPANCY OF INDUSTRIAL ZONES It can be concluded that brown industrial zones are 50% occupied. So there is a space for expansion of activity of the existing companies and introduction of new companies in industrial zone.

OWNERSHIP STRUCTURE Ownership structure of industrial zones identified in MBC varies. There are industrial zones that are 100 % publicly owned, industrial zones that are 100% privately owned and those with shares of private and public ownership. In average 64,38% of the green industrial zones are publicly owned while 35.63 % are privately owned. Entrepreneur brown zones are 100 % privately owned while green entrepreneur zones are 46 % publicly owned and 54 % privately owned. Agricultural zones are 26.67 % publicly owned and 273.33 % privately owned, touristic zones are 90 % publicly owned and 10 % privately owned. From this data we can conclude that most of green industrial zones are publicly owned (64.38 %) which is favorable for the development of the industrial zones since the lengthy and expensive process of purchase of land from private owners is avoided. The most of the brown industrial zones is privately owned so we can conclude that more than half (62%) of old economic capacities representing the brown zones has been privatized already. There remains 38% to be privatized. Although brown zones represent ideal places for the development of industrial zones, having in mind already existing infrastructure, most of them are not used in their available capacities due to the fact that privatization did not produce desirable effects.

URBAN PLANNING DOCUMENTS The existence of urban planning documents in identified industrial zones in MBC municipalities is different fore certain categories of industrial zones. Only 37.5% of green industrial zones have urban planning documents while for 50 % those are not existing. Only for one, or 12.5%, it is in the making phase. 53.8 % of brown industrial zones have urban planning documentation , 7.7 % does not have any, and for 38.5% those are in the process of making or review. All entrepreneur brown zones and 60% of entrepreneur green industrial zones do non have urban planning documents. Most of the locations of industrial zones is marked as industrial zone in urban planning documents. There is a small percentage of locations that are marked differently, old military buildings and installations etc.

INFRASTRUCTURE In general, it can be concluded that the infrastructure in brown zones is accessible (except gas). That implies the existence of electrical power, water supply, sewage, utility (waste disposal), telecommunications and internal transport infrastructure. In most of the brown zones there are companies that either own and industrial / business zone or a part of it, or they have rented a space for some of its activities. In this way just 20 to 35% of industrial / business zones are used in MBC while the other part of the zones is empty and as such represent a developing potential.

All brown industrial / business zones have secured supply of basic infrastructure such as electrical power, water (drinking and technological), sewage system. Above mentioned installations, due to the long term lack of maintenance, are in poor shape and additional investment shall be needed to reconstruct them. With the green zones the situation with the electrical and water supply is somewhat worse but it is continuously improved. More that half of nominated green zones have that issue solved.

We note that 50% of green industrial zones possesses electrical infrastructure, 12.5% is without it and 37.5% possesses only the primary line. Other industrial zones possess electrical energy. We also note that possibility exists that electrical infrastructure in certain number of industrial zones will have to adjust to the newly arising needs of companies that would locate their businesses in these industrial zones.

None of the identified industrial zones possesses gas infrastructure since the area of MBC does not have the primary gas line yet. The existence of certain initiatives for introduction of gas in MBC makes us to conclude that gas shall be available to the companies in certain areas of MBC in the future period (Kresevo started the process of introduction of gas). It should be noted that this area has made a pre-investment project documentation so that , in perspective, we can expect it will have gas line.

Water supply infrastructure is available in most of the identified industrial zones. The worst situation is in the green industrial zones, which is normal since those are new industrial zones which need to be developed. So 25% of green and 20% of entrepreneur green do not possess water supply infrastructure, while in one green industrial zone this infrastructure is under construction. One brown industrial zone (7.7%) and one agricultural zone (33.3%) do not have sufficient water capacities. Having in mind that MBC area is rich in water supply the issue of water supply comes down to construction of adequate water supply infrastructure.

Possibility of waste disposal is possible in more than half of identified industrial zones. In discussions with relevant persons from municipalities it was said that waist can be transported to the municipal waste dump. In seven industrial zones waste disposal is not possible.

Vast majority of industrial zones possesses telecommunication infrastructure. Two industrial zones, one green and one agricultural, which do not have telecommunications infrastructure, it can be installed with not so high costs.

Transport and road infrastructure within industrial zones is not available in 62.5 green zones. In brown, entrepreneur brown and entrepreneur green it is fully available. This situation is natural since green industrial zones need to be equipped with necessary internal road infrastructure while in brown zones this infrastructure is already developed, with minor repairs needed. Transport communications inside the zone Yes No No. % No. % Type of Green 3 37,5% 5 62,5% industrial Brown 12 100,0% 0 ,0% zone Entreprene 2 100,0% 0 ,0% ur brown Entreprene 5 100,0% 0 ,0% ur green Agricultura 2 66,7% 1 33,3% l Touristic 0 ,0% 1 100,0% business residential 0 ,0% 0 ,0% recreation al

Table 2.5. Overview of availability of the transport road communications inside the zones

INTEREST FOR ESTABLISHING INDUSTRIAL ZONES The existence of the interest for establishing industrial zones in MBC municipalities is especially underlined, 100% for green industrial zones, 90.9% for brown industrial zones. It is characteristic that for 62.5% of green industrial zones municipalities start the initiative for the establishment of the industrial zone while in 37.5% the initiative is started jointly by municipality and private sector. Such a great percentage of initiative for establishment of green industrial zones on the part of the municipalities can be considered as a sign of proactive role of the municipalities in the direction of development of business- entrepreneur infrastructure. However, most of the identified green industrial zones did not move further from the initial development, they are just identified as possible locations for business activities. Feasibility studies, accompanying plans, strategies of development for industrial zones, do not egsist.

When brown industrial zones are in question initiative for establishment of the industrial zone is started by the municipality in 23.1% of the cases, and in 61.5% of the cases jointly by the municipality and private sector. Such a high percentage of joint initiative for establishment of industrial zones shows interest for better use of business potential of brown industrial zones which, due to war devastation, unsuccessful privatization and other circumstances, is not used in full. Also, it must be underlined that municipalities are strongly interested for completion of the privatization of the state owned companies which are not privatized and represent brown industrial zones. State owned companies in those industrial zones are burdened with business problems and they use up to 30% of the zone capacity while remaining part remains unused (Vitezit – Vitez).