Guide for investors

Content

The city of , Vision...... 1

Serbia has the potential...... 2

Welcome to Leskovac...... 3

Region al leader in agriculture...... 4

Infrastructure...... 5

Human resources...... 6

Business environment...... 7

Estate rents prices and taxes...... 8

Industrial areas...... 9

Map of the industrial areas...... 10

Greenfield potential...... 11

Brownfield potential...... 12

Tourism...... 13

They are recognized Leskovac...... 14

Developed Business...... 15 The City of Leskovac Vision

Local administration of the City Our goal is to provide to all the citizens equal chances for of Leskovac is committed to the dignified life. task of creating all the precon- ditions for economic develop- Economic development, equal prosperity of urban and rural ment and opening new invest- areas, infrastructure modernization, health centers, schools – ment cycle. This process will be all these are preconditions to bring back the old glaze to our enhanced by good municipal city. infrastructure. City of Leskovac is the first City of Leskovac can and must be more interesting and pleas- one in that applied the ant place for living. That is why together we can create attrac- regional management of sol- tive environment for investments and donations, for opening id waste by constructing the new jobs and establishing positive and healthy creative at- sanitary landfill in line with the mosphere. highest standards in the field of environmental protection. Our city has a water supply system “”, too, which solved Our strategic goals: the problems of water supply throughout the region. Leskovac will also build a waste water treatment plant with To develop Leskovac as an economic, cultural, touristic and the support of partners from the European Union. This project regional center of South Serbia; creates preconditions to preserve and protect environment. We work very intensively on research of geothermal resources Efficient, business effective city administration with good in- in the Leskovac valley. This project should significantly help ternal and external communication; achieving the vision of the development of south Serbia as a region of green energy. It will also help that agriculture, as our Protect the environment us the imperative of sustainable eco- strategic priority, could brand the products from this region. nomic development; We strive to build efficient and modern administration with entrepreneurial role. Timely, comprehensive, high quality and continuous service in It is an important part of our vision- to create favorable busi- the field of social activities. ness environment in Leskovac. Welcome to Leskovac. We would like to invite You to come and make sure that Les- kovac is the place where You can… Mayor of Leskovac Slobodan Kocic

1 Serbia has the potential

by Numerous benefits Serbia wants to encourage investors

- 10% corporate profit tax. - Free trade agreements with Russia, Albania, Belorussia, Bosnia and Herzegovina, Croatia, Macedonia, Moldova and Turks. - Imported equipment is exempted from custom duties and other import charges, except for motor vehicles and gambling machines. - 10 years tax relief for investment over 8 million EUR with creation of more than 100 new jobs. - 5 years tax relief for the investment over 80.000 EUR with creation of more than 5 new jobs in the underdeveloped region. - Profit earned on a basis of concession is tax free for period of 5 years. - Profit earned in Serbia can be freely transferred abroad. - In case of employing persons older than 50, the employer is freed from paying all the taxes and contributions on wages. - Foreigners temporarily residing in Serbia for more than two years, can import motor vehicles with out paying custom duties. - Various government subsidies and tax exemptions for creating new jobs.

2 Welcome to Leskovac

City of Leskovac is among 5 most important cities in Serbia: • Number of inhabitants: 156.252 • Area: 1.025km2 • Work force: 92.869 – 59,4% of total -employed 26.914 -unemployed 20.922 • Average monthly salary: 279 EUR net • Gross Domestic Product: 1251 EUR per capita • City budget: 25 601.243 EUR • Five rivers: City of Leskovac as regional center of Southern Ser- bia will: Morava, , , Pusta reka, • Five mountains: • Create business friendly environment for Kukavica, Cemernik , , Stara planina, foreign direct investments • Enable economic development through support of new technologies, SMEs, • Pan-European corridor 10 (highway, railway) agriculture and healthy food production • Distance from international airports: • Develop institutional framework through capacity building of local institutions - Nis 45 km oriented on positive synergies of public private partnership - Sofia 150 km • Create equal opportunities for all citizens - Skopje 160km for good quality of life, living standard, - 288 km education, health protection and housing - Thessaloniki 320 km • Promote entrepreneurial spirit in order to create new jobs • Enforce development activities to improve • Usage of area – 90% look of the city and living environment (agricultural land – 57.600ha and forest – 16.200ha) • Become an open society and pleasant • Natural resources place for living (soil, mineral and thermal water ,wood..) 3 Region al leader in agriculture

The area of the Leskovac city is situated at the high from 210 to 240 above sea level and is located in the fertile basin, bordered by Babicka Gora , Selicevica and Suva planina to the East and Radan mountain and Pasjaca to the West and Kukavica mountain and Cemernik to the South.

The city of Leskovac is located where natural communications with intersection of all directions leading to the valleys of the Juzna Morava, Veternica, Jablanica and Vlasina rivers flow in or out.

In the south of Serbia, in the region known for its natural beauties, fresh air and clean cold water, there is a centuries long tradi- tion in small fruit and mushroom picking.

Valley is suitable for agricultural production especially for vegetable production. Agricultural potential of the region provides op- portunities for investment in capacities for production of healthy food.

Available natural recourse

Plaugh land and 6% vegetable garden 6%

Orchards 9% 64% Vineyards 15%

Grassland

Pastures

Available human resources in agriculture Vegetable producers 1% 2% 6% Cattle beeders

Tabaco processors 45%

Veterinarians 46%

Food producers

4 Infrastructure

Transport infrastructure

The road network of the city of Leskovac consists of 614 km of categorized roads. Since the total length of roads, 68% of roads are covered with modern road- way, of which belongs to the local road network 38.3% (152 kilometers).

The state of road network is as follows: % of roads with modern Road class Length (km) Modern road surface surface Trunk roads 64 64 100

District 153 104 68

Local 397 152 38,3

Total: 614 320 52,1

Railway Belgrade-Nis-Skopje-Athens passes through the territory of the city. The number of passengers and goods loaded shows that Leskovac still not used sufficiently the advantages of their involvement in the railway system of the country, especially in terms of commodity transportation, and industrial area of Leskovac is not directly involved in the railway network over the ap- propriate number of industrial tracks.

Water management infrastructure On the territory of the city there are five public water supplies, the total length of main feed is 87 km, 480 km of distribution network, with nearly 23,250 water connections, while the length of sewerage network is 125 km. On the territory of Leskovac are built twelve small reservoirs and 6 of them intended for irrigation and 6 to create solutions for chemical spraying of vineyards.

5 Human resources

At the end of 2007, Leskovac was on the second place in Serbia by the absolute number of available workforce. Total number of unemployed people registered in the National labour market service was 20.922 Among that number, 14732 are medium skilled workers, 4907 low skilled workers and 567 high skilled with master degree.

Total number of employees in the city of Leskovac is 26.914 in 2007. Enterprises, institutions, cooperatives and organizations count 20.733 employed persons. Private entre- preneurs and Independent activists employ 6181 persons.

Educational infrastructure of the City of Leskovac consist of 24 primary schools, 12 secondary schools, 2 colleges (economical and technical sciences) and faculty of technology.

6 Business environment

The City of Leskovac has developed institutional framework for local Size of the enterprises economic development. Local Economic 1% Development Agency offers business and legal support: 4% -Marketing and promotion Small -Business retention, expansion and attraction Big -Contacts and direct support local business 95% community -Strategic planning process support Medium -Incentives and finance -Workforce development -Economic development projects preparation and supervision Number of enterprises total 837 -Advisory function Enterprises by size: -Maintenance and improvement of relations with central institutions in charge for economic - Small -796 development - Medium - 32 -Creation and maintaining relevant data base - Big - 9 All institutional capacities will be at Your disposal.

Value of privatized companies in Leskovac municipality (EUR) 6.000.000 5.000.000 4.000.000 3.000.000 2.000.000 1.000.000 0 2002 2003 2004 2005 2006 2007 2008 7 Estate rents prices and taxes

Reduced amount of estate rents is avail- Administrative taxes able to the investor for business and pro- duction space which: Endorsement about amount of remuneration for reassign of agriculture -commits that employs more than 5 worker to construction land ...... 7.63 Eur -enclose the business plan Endorsement for right to practice entrepreneurial activities: 2 -make a statement about the number Trade,shops, restaurants...... ………………………0.93 Eur/m and dynamics of employing of worker Craftsman( production and service)...... ……..0.52 Eur/m2 -commits that lays down guarantee Extension and transformation on activities...... …………5.59 Eur means equal to rents Registration of new activity...... ………………………………….5.81 Eur Temporary suspense of activity...... …………………………..3.23 Eur Claim to reduction of rents amount are Permanent suspense of activity...... …………………………..3.87 Eur realized in the dependence from the Endorsement for advertisement setup...... ………………….5.91 Eur number of employed labor forces, and towards the price of working places: Urban planning taxes -from 5 to 20 employed 1.500 EUR per employee Endorsement on technic documentation for building licence: 2 -from 20 to 50 employed House up to 100m ...... …………………………….....5.38 Eur 2.500 EUR per employee House over 100m2 ...... …….…………………… 6.45 Eur -from 51 to 200 employed Commercial building up to 100m2...... ………………. 21.50 Eur 5.000 EUR per employee Commercial building over 100m2-300m2...... ………. 32.26 Eur -over 200 employed Commercial building over 300 m2...... …………….. 0.11 Eur/m2 7.000 EUR per employee

Zone Type of building EUR /m2 Price of construction land House Industry Commercial (EUR / 100m2) Basic criteria for the establishing value I zone 7,35 34,10 45,75 3000 of the other construction land establish- II zone 6,80 31,60 42,50 2500 es towards areas deter-mined Decision about the construction land for which III zone 6,30 29,20 39,20 2000 are establish the lowest prices according IV zone 5,75 26,80 35,95 1800 the table: V zone 5,50 25,25 34,35 1300 VI zone 5,25 24,35 32,70 1000

8 Industrial areas

NORTHERN INDUSTRIAL ZONE Distance from: Equipped infrastructure: City centre 1 km Electric power Yes Northern industrial zone is unique complex with total area of Trunk road 1 km Water supply system Yes 59,6 ha. Usage of areas is over 70%.Property within industrial Highway 8 km Phone line Yes zone is mixed (state, private and socially owned). Total area Railway 1.5 km Internet Yes Police department 1 km Gas pipeline No under Fire department 1 km Sewage system Yes Remote heating sys- Hospital 1 km Yes constructed facilities is 25,1 ha. tem Business association of existing companies is established. Road infrastructure Yes Railway Yes

EASTERN INDUSTRIAL ZONE Eastern industrial zone is on the trunk road M-1 Nis- Skopje City centre 3 km Electric power Partially with available access on it. Trunk road 0 km Water supply system Yes Highway 7 km Phone line Partially 1.5 Property is mixed ( mostly private and partially state owned). Railway Internet Patrially km Total area of the eastern industrial zone is 247,1 ha. Usage of Police department 4 km Gas pipeline No 4.5 Sewage system Yes area is 60%. Fire department Remote heating sys- km No Hospital 5 km tem Four new business sites of 69 ha present possibilities for Road infrastructure Yes Greenfield investments. Railway Yes

SOUTHERN INDUSTRIAL ZONE Southern industrial zone is between the trunk road M-1 Nis- City centre 6 km Electric power Yes Skopje and highway E –75. Trunk road 0.5 km Water supply system Yes Highway 4 km Phone line Partially International railway Belgrade- Athens is passing through this Railway 0.5 km Internet Partially zone. Police department 6 km Gas pipeline No Fire department 6.5 km Sewage system Partially Property is mixed (mostly private and partially state owned). Remote heating sys- Hospital 7km No tem Total area of the southern industrial zone is 110.5 ha. Usage Road infrastructure Yes of area is 25%. Railway Yes

9 10 Greenfield potential

NEW ZONE 2 New zone 2 is located in the Eastern industrial zone, within the New Strategic zone. Land area: 16,26 ha Ownership: Mixed

Distance from: Town centre - 3000m Regional road M1 - 20m Highway - 8000m Railway - 1500m Air port - 45km Port - 300km

Available infrastructure: • Water supply • Sewerage • Road connection

Planned infrastructure: • Electrical network: TS 110/10 kV on the western side of the zone, and TS 10/0,4 kV will be constructed at each location • Pipeline (Gas) network • Internal roads • Telecommunication infrastructure

Price of construction land: 8-10 €/m2 Price of communal infrastructure: 34,33 €/m² The predominant purpose: business activities of SME through the organization of the industrial park. Conditions for the building are defined for Working zone 10 - New strategic zone.

11 Brownfield potential

FHI ZDRAVLJE - Actavis Leskovac Location: Placed on the south side of town, within the building Block 64, in the Working zone 1 “Zdravlje” and relies on roads Leskovac- Vucje . Land area: 21,22 ha Ownership: Private Distance from: Town centre - 1.5 km Regional road - 4.5 km Highway - 11.5 km Railway - 4 km Air port - 45km Port - 300km The complex is formed in the period 1953 -1983 and is fully infrastructure equipped. The total area of buildings: 41519.00 m2

Year of Number Building Building name: Area (m²): Construc- is ready Remarks: tion: of floors: to use: New plant cosmetic 2700.00 1963 2 YES Factory for pharma- ceutical raw materials 1225.00 1963 2 YES Adapted in 2007 Required adap- Research laboratory 1800.00 1968 3 YES tation Adaptation is in Old cosmetics 1950.00 1968 2 NO progress Herb and para pharmaceuticals 1350.00 1968 2 NO Adapted in 2006 Administrative office building 3200.00 1976 2 NO Adapted in 2008 Factory of medication 9020.00 1980 2 YES

Factory of dialyses 8483.00 1983 1 YES

Factory of solution 2415.00 1986 1 YES

Storage of cosmetic 1500.00 1972 1 YES

The predominant purpose: industrial activities. Urban conditions for building in the Working zone 1 – Zdravlje are defined and the drafting of the plan Detail regulation plan is in progress. 12 Tourism

The City of Leskovac, surrounded with mountains older then Leskovac summer festival is cultural manifestation which is or- five centuries ,canyon of the river Vucjanka, Sijarinska spa ganized every summer by Turistic Organization of Leskovac. ,archeological site , Skobalic city ,Brnjicka cul- During those days, city main street is closed for vehicles, and tural group of the river valley, Etno-arheological in the yard of Sop-Djokic house lot of events are organized with park on the , Gradac and Necropolis in Mala Kopas- participation of many associations, clubs, cultural institutions, nica, and Vlasina lake, represent attractive touristic destina- famous artists from Leskovac. tion of South Serbia. Hotels and capacities On the river of Vucjanka there is an over hundred years old hydro power plant that still produce electrical power. Two monasteries, Presveta Bogorodica (female) and Sveti Jo- van (male), are located twenty kilometers from Leskovac,near Garni hotel Pansion restoran Hotel “Hajat S” Pansion “ Perla” “Djermanovic” “Grosh” the Jasunja village.Both monasteries,with frescos that can not let you impassive,are older than 500 years.

Justinijana Prima (Caricin grad), arranged archeological lo- cation, is located 30 km on the western side. That old roman Motel “Pobeda” Pansion restoran Vila”Mitic” Hotel “Vlaina” “Park” city was the birthplace of imperator Justinijan i, where the first law in the world had been adopted. Number of Number of Destination hotels beds Vila”Mitic” 1 40 Roštiljijada – barbeque festival is organized every year Hotel “Hajat S” 1 129 during second week of September for a last 20 years. Over Garni hotel “Đermanovic” 1 25 300.000 visitors from Serbia and abroad, that come to visit this manifestation during seven days of lasting, bring it to the Pansion restoran “Park” 1 40 top turistic events in Serbia. Pansion restoran “Grosh” 2 140 Pansion “ Perla” 1 16 Since 2010 The Carnival of Leskovac is separate, complete Hotel “Vlaina” 1 62 tourist event. It is held in July. The Carnival of Leskovac is a Motel “Pobeda”- Predejane 1 88 mixture of tradition and modern carnival trends. UKUPNO 9 540

13 They recognized Leskovac

Zdravlje Actavis Actavis in Serbia is one of the largest pharmaceutical companies that comprising of the Zdravlje Actavis (Leskovac), Actavis Trading Ltd.. (Belgrade) - Actavis office for Serbia and Montenegro, as well as Wholesale Zdravlje Trade. Company Zdravlje Actavis is one of the leaders in the pharmaceutical industry in Serbia. Strong local roots in more than half a century long tradition in manufacturing first-class pharmaceutical products and the strength of the global team of Actavis Group are part of the winning formula of our company, which offers its clients quality, reliable and effective medication at affordable prices. With the help of Actavis Group, which since early 2003. invest about 35 million euros in the development of production capacities and introduction of latest technologies for the production of drugs, the company Zdravlje Actavis becomes one of the first domestic manufacturer of pharmaceutical products that apply the highest standards of both domestic (GMP certificate of the Ministry of Zdravlje of the Republic of Serbia) and the European good manufacturing practice (official EU GMP certificate of the Danish Medicines Agency). Miomir Nikolic In parallel with the modernization of the production of solid preparations, which is Managing Director the foundation of manufacturing operations of the company, complete reconstruction of all auxiliary systems, laboratories and warehouses are provided conditions for modern develop- ment, quality control and secure distribution of pharmaceutical company Actavis Zdravlje.

SPEBO clinic Leskovac - Valencia – The special hospital for infertility treatment of the well known Serbian expert in genetics Miodrag Stojkovic begin to work on April 2008. Dr Miodrag Stojkovic has became know within scientific circles worldwide several years ago by cloning the first human embryo at a research facility in New Castle. The cloning was for the hu- man purposes. Then followed his successful work with stem embryo cells for the purpose of treatment of presently incurable diseases such as heart diseases, diabetes, spinal cord injuries, etc. In Leskovac hospital Dr Stojkovic intends to carry out the artificial in- semination of women that cannot conceive. The waiting list contains several hundreds of couples. Dr Stojkovic shall also deal with the stem cells culture and molecular biology in cooperation with the Medical Faculty in and the Military Medical Academy Dr Miodrag Stojkovic (VMA) in Belgrade. The special hospital in Leskovac is equipped with the most sophis- ticated equipment.

14 Developed Business

Moravka PRO - PRIMA NOVA The technological level of production has been brought to the former level of capacity due to a complete overhaul of the appliances of renowned German manufacturers, “BOSCH” and “try Verk. With the purchase of new machinery and equipment “Moravke Pro” at the moment produces about a hundred products from the food group coffee, food additive with vegetables, ice cream, whipped cream, pudding, etc..

STRELA Since the 1991, our company has had a rising line of development and modernization of the equip- ment for collecting, processing and distribution of fresh small fruit and agriculture products. A cold storage house of about 1350 t of storage space for storing frozen goods makes a constituent part of the processing and production centre. The Strela company complies with ISO 9001 and HACCP standards.

DCP Hemigal Company from Leskovac was founded in 1995, Basic activity of the company is production of cosmetics. Today DCP Hemigal offers cosmetics products which satisfy criterias most of consumers by its quality, variety and attraction. Detailed and precise internal control of manufacturing, effective and fast delivery, satisfaction of our consumers make DCP Hemigal biggest and strongest producer in the region.

MESOKOMBINAT PROMET Mesokombinat promet Leskovac is a modern meat-packing industry, registered for import and ex- port of meat. Situated in the village , ten kilometers from Leskovac, where about 8ha fenced land is located with a slaughterhouse processing, tracking facilities and administrative build- ings of the total area over 7,000m2. Capacities of the slaughterhouse are 90 heads of big cattle, 300 pigs and 1,000 lambs a day, while the processing capacity of about 15t per shift, depending on the structure. Mesokombinat-promet in its production program have all kinds of fresh meat, and over 60 types of delicatessen. Particular place have Leskovac Grill meat, product with the longest tradition for preparing specialty barbecue.

15 Developed in Business

design by: Delta Graf Agency for Local Economic Development Mayor of Leskovac phone:+381 16 232 390, 381 16 232 391, fax:381 16 216 366 phone: +381 016 200-804, +381 016 200-850 adress:Trg Revolucije 45, 16000 Leskovac, Republic of Serbia adress: Pana Djukica 9-11, 16000 Leskovac, Republic of Serbia www.fond.org.rs, web: www.gradleskovac.org e-mail:[email protected] e-mail: [email protected]

March 2010