investment guide of the CITY OF PRIJEDOR BOSNIA AND HERZEGOVINA Business friendly environment
page 2 CRO The City of Prijedor - Economic profile CRO PRIJEDOR SER According to the indicators, economic development of the city of Prijedor for the latest 10 years period the largest share of employment and income from local companies and entrepreneurs realize in the manufacturing industries such as mining, wood processing, metal processing, food processing, textile, etc. These are also the important economic activities which, beside to the wholesale and retail businesses, achieve the gratest results of local economy. MNG The most important objectives of local economic development are increasing the competitiveness of the economy in general, especially in promising sectors such as agriculture, inland tourism, energy efficiency and environmental, furthermore, development of human resources and other social infrastructure. BASIC INFORMATION ABOUT THE CITY OF PRIJEDOR GEOGRAPHICAL LOCATION NW part of Bosnia and Herzegovina TOTAL AREA 834 km 2 POPULATION 97.588 NUMBER OF SETTLEMENTS 71 PRIJEDOR DISTANCE FROM THE MAYOR CITIES (in kilometers) SARAJEVO 256 TRIESTE 388 ZAGREB 163 BUDAPEST 479 BELGRADE 357 BRATISLAVA 576 LJUBLJANA 301 TIRANA 715 WIEN 531 MUNICH 709
page 3 WHY TO INVEST IN PRIJEDOR EXISTING FOREIGN INVESTORS our best reference for new investments VICINITY TO FOREIGN MARKETS optimal link between the European East -West, as well as North-South FREE TRADE AGREEMENT AMONG CEFTA COUNTRIES (available market of more than 25 million consumers) FREE TRADE AGREEMENT WITH TURKEY (available market of more than 70 million consumers) LOWER OPERATIONAL COSTS significantly lower than in the EU countries (electricity, utility, telecomunication, construction costs, etc.) NATURAL RESOURCES: fertile soil, forest, minerals, water, etc. SIGNED STABILIZATION AND ASSOCIATION AGREEMENT (between BiH and EU, striving to harmonize European standards and regulations) FAVORABLE LEGAL FRAMEWORK FOR FOREIGN INVESTMENT e.g. transfer of profit abroad is done freely and foreign investments are exempted from payment of customs duties on equipment that is a part of foreign investment BUSINESS ENVIRONMENT INDUSTRIAL HERITAGE the rich history and tradition of doing business in various sectors REGISTERED AROUND 3.000 BUSINESSES potential base of local suppliers and partners QUALIFIED AND COMPETITIVE WORKFORCE the most available workforce is in the field of light industry, manufacturing and crafts LOCAL GOVERNMENT SUPPORT proactive administration, accelerated procedures of registration and issuing permits INFO CENTRE FOR INVESTORS one referent point for all information and services during investment process including aftercare INDUSTRIAL ZONES locations for greenfield or brownfield investments
who invest in prijedor - success stories UK - MINING INDUSTRY CRO - FOOD INDUSTRY IT - WOOD PROCESSING NOR - METAL INDUSTRY MEX - CEMENT INDUSTRY AUT - TEXTILE INDUSTRY IT - FOOTWEAR INDUSTRY CRO - FOOTWEAR INDUSTRY NOR - COW FARM YOUR LOGO SER - MACHINERY INDUSTRY page 4 JOIN TO OUR INVESTORS BUSINESS CLUB
city of prijedor incentives for investors Type of incentives Foundation for development - interest subsidy for entrepreneurs and companies Implementation of certificates ISO, HACCP, FSC, etc. Subsidy for self-employment (start-up), entrepreneurial incubator Subsidy for employment of new workers Subsidy in agriculture - greenhouses, vegetable and fruit growers, organic production, etc. Subsidy to exporters Subsidy to foreign investors Level Local Local Local Local and entity Local and entity Entity State other important info for doing business Type of activities Deadlines for obtaining the construction permits Indicators Within a period up to 15 days, if is documentation is completed Costs of facility construction - instalation included 400-500 /m 2 Labour costs Gross average salary is 676 Working time Holidays Working day / week: 8 hours (includes ½ hour of daily break) / 40 hours Minimum 18 working days Taxes Value added tax: 17% Income tax: 10% Contributions 33% on gross salary page 5
investment opportunities in the city of prijedor The City of Prijedor offering unique investment conditions for domestic and foreign investors and thats implemented through: Locations with necessary infrastructure, Stimulative land prices and favorable rental fees, Customization of offers according to the type of investment and individual requirements, Support to investors during the investment process, Aftercare services for investors, etc. page 6 Industrial zone CELPAK Industrial zone SVALE greenfield locations
industrial zone "celpak" INDUSTRIAL ZONE CELPAK TOTAL LAND AREA: 10,2 ha TYPE OF ZONE: Greenfield CURRENT SITUATION: Industrial zone is in the development phase; Construction allowed in phases PURPOSE: Production, processing, warehouse, trade and services OWNERSHIP: City of Prijedor INFRASTRUCTURE: Partialy completed (access roads, industrial railway, electricity, telecomunication, public utilities) OTHER: Possibility for merging or spliting plots in accordance with investors needs page 7
industrial zone "svale" INDUSTRIAL ZONE SVALE TOTAL LAND AREA: 22 ha TYPE OF ZONE: Greenfield CURRENT SITUATION: Industrial zone is in the planning phase; Construction planned in phases PURPOSE: Production, processing, warehouse, transport, trade and services OWNERSHIP: Mixed public/private INFRASTRUCTURE: Partialy completed OTHER: Possibility for merging or spliting plots in accordance with investors needs page 8
industrial zone "autotransport" INDUSTRIAL ZONE AUTOTRANSPORT TOTAL LAND AREA: 3,5 ha FACILITY AREA: From 1.000 to 2.000 m 2 TYPE OF ZONE: Brownfield CURRENT SITUATION: Industrial zone is in use; Construction allowed in phases PURPOSE: Production, processing, warehouse, transport, trade and services OWNERSHIP: City of Prijedor INFRASTRUCTURE: Completed (internal asphalt roads, electricity, telecomunication, public utilities) OTHER: Possibility for establishment of different type of industries and flexibility of interior in accordance of investors needs page 9 page 7
industrial zone "nova vatrostalna" INDUSTRIAL ZONE NOVA VATROSTALNA TOTAL LAND AREA: 5,3 ha FACILITY AREA: 15.000 m 2 TYPE OF ZONE: Brownfield CURRENT SITUATION: Industrial zone is in use; Possibility for partial rent or buying PURPOSE: Production, processing, warehouse, transport, trade and services OWNERSHIP: Private property INFRASTRUCTURE: Completed (internal asphalt roads, developed drained system, hydro and electro network with two transformers of each 1000 kva) OTHER: Possibility for establishment of different type of industries and flexibility of interior in accordance of investors needs page 10
business area "automax" BUSINESS AREA AUTOMAX TOTAL LAND AREA: 1,5 ha FACILITY AREA: 2 x 900 m 2 TYPE OF ZONE: Brownfield CURRENT SITUATION: Business area is in use; Possibility for partial rent, buying or joint venture PURPOSE: Production, processing, warehouse, transport, trade and services OWNERSHIP: Private property INFRASTRUCTURE: Completed (internal asphalt road and additional surface, electricity - transformer with 2 x 630 kva, water supply, sewage, mini heating plant, elevator) OTHER: Possibility for establishment of different type of industries and flexibility of interior in accordance of investors needs page 11
industrial area "lasta company" INDUSTRIAL AREA LASTA COMPANY TOTAL LAND AREA: 7,5 ha FACILITY AREA: 8.000 m 2 + TYPE OF ZONE: Greenfield and brownfield CURRENT SITUATION: Industrial area is in use; Possibility for partial rent or buying PURPOSE: Production, processing, warehouse, transport, trade and services OWNERSHIP: Private property INFRASTRUCTURE: Completed (internal asphalt road, industrial railway, electricity - transformer with 2 x 630 kva, water supply, sewage) OTHER: Possibility for establishment of different type of industries and flexibility of interior in accordance of investors needs page 12
business friendly certificate Business Friendly Certification of municipalities in South East Europe aims to create a business-friendly environment, incorporating efficient administration, transparent local government, adequate infrastructure and partner relations with the businesses City of Prijedor is the first municipality in Bosnia and Herzegovina awarded with international certificate International quality stamp - BFC Confirmation of successful and proactive relationship with investors For investors this means: - safe investment destination - partnership with local government - business success and company development - competitiveness, advantages and benefits page 13 www.bfc-see.org
they said about us... ArcelorMittal Prijedor works already 10 years and together with ArcelorMittal Zenica makes the largest investment in BiH. Activation of mine at Omarska was achieved in 2004 at a time when Bosnia and Herzegovina was a country with a very high risk investment as the burden of the recent history and present problems in the functioning of the state. Our experience has disproved many skeptics because we were able to develop an organization-level global standards with local institutions and its own staff. Support of the municipality of Prijedor was unambiguous and clear with desire to succeed on both sides and provide a new perspective for generations to come. The risk that we understand and what we faced on the path of development of the company we shared with partners, local institutions and as an epilogue evident path of development, production increase, the number of employees and so on. We believe that Prijedor now has a clear orientation in support of their investors and attracting pointing out their potential, natural, human and other resources. Our message can be very short and clear, "If the company ArcelorMittal made a success in Prijedor, you can do it same thing as well." Mr. Mladen Jelaca, CEO of Arcelor Mittal Prijedor page 14 www.bfc-see.org
they said about us... If we say that the city of Prijedor near the border and that's good conected with EU, that we have a fast and efficient import and export, good security situation and the coexistence of all citizens of Prijedor, good urban infrastructure and cooperation with the city government and the mayor, then it means that it is a pleasure to doing business in Prijedor Mr. Miroslav Turnsek, CEO of Mira Joint Stock - Members of KRAŠ Group The company CEMEX has established in Prijedor through the buying of property of company GIK "Mrakovica" in bankruptcy 2006 th year. Selection of Prijedor to the center of our logistics business is a logical considering that CEMEX's most important business activities in BiH related just to the northwest Bosnia. Beside of strategic position, Prijedor also have excellent transport links by roads and railway. From the first meeting with the mayor of Prijedor, I witnessed unreserved support to entrepreneurs who want to develop their business in the territory of the City of Prijedor. Tight cooperation with the local community and business development has been going on for eight years. Mr. Velimir Vilovic, director of sale and logistic - CEMEX d.d. Croatia page 15 www.bfc-see.org
investigate us contact CITY OF PRIJEDOR Trg Oslobodjenja 1 79101 Prijedor - RS, BiH T:: +387 52 245 101 F:: +387 52 245 104 E:: gradonacelnik@prijedorgrad.org W:: prijedorgrad.org AGENCY PREDA-PD Aleja kozarskog odreda bb 79101 Prijedor - RS, BiH T:: +387 52 240 410 F:: +387 52 241 601 E:: infocentar@preda.rs.ba W:: preda.rs.ba