1. PROJECT TITLE

DEVELOPMENT OF A PICNIC AREA BY LAKE MEZGRAJA “LUKE” AND CONSTRUCTION OF CATERING AND ACCOMMODATION FACILITIES

2. SECTOR

Sports and recreational tourism, catering and water management

3. LOCATION

Mezgraja settlement, Ugljevik municipality

4. BRIEF PROJECT DESCRIPTION

The project for the development and equipping of Lake Mezgraja Luka represents a significant investment in the development of tourism infrastructure in the area of the municipality of Ugljevik, with the aim of creating a new tourism product in the area of the municipality of Ugljevik and the northeastern part of the Republic of Srpska. Lake Mezgraja covers a total area of approximately 54.5 ha of water and land, created after the exploitation of coal at the open-pit mine of Mezgraja. The reclamation of land, the formation of the water surface and the development of the area around the lake create conditions for the development of sports and recreational, excursion and rural tourism.

The location can be accessed from three directions: from Peljave (municipality of Lopare), Stari Ugljevik (municipality of Ugljevik) and Jasikovec (municipality of Teočak). The project includes the development and leveling of the surrounding terrain, in order to bring the area to its intended purpose and enable its use for tourist and recreational facilities.

As part of the first phase, a picnic area has already been built, which includes a parking lot, a guard house, a toilet block, a kiosk for selling souvenirs and drinks, as well as the accompanying communal infrastructure (water supply, sewage with a biological septic tank and wastewater treatment plant, and electricity infrastructure). A 538.63 m long pedestrian and bicycle path with an ellipse for turning has also been built, with canopies and furniture for picnickers to rest.

The second phase of the project envisages the construction of an additional pedestrian and bicycle path of approximately 833.45 m in length with accompanying facilities (canopies, benches, tables and children’s furniture), the installation of public lighting, the construction of pontoons and docks for sport fishing, as well as the development of green areas and the planting of horticulture.

The total area of the lake and the surrounding land is approximately 54.5 ha, of which approximately 32.3 ha is land. The area has significant potential for further development of tourist facilities, including the construction of catering and accommodation facilities, the development of sport fishing and fish farms.

5. PROJECT DETAILS

5.1. WHAT TYPE OF PROJECT IT IS?

Brownfield investment – the project is being implemented on the site of the former open-pit coal mine “Mezgraja”, which is being rehabilitated and redeveloped for a new purpose, i.e. the development of tourist and recreational infrastructure.

5.2. PROJECT STATUS

The project for the development of the picnic area on Lake Mezgraja Luka is in the implementation phase. The first phase of the development of the picnic area in the eastern part of the lake has been completed, within which the basic tourist and recreational facilities and accompanying communal infrastructure have been built.

The second phase of the project, which relates to the development of the western part of the lake, has not yet been implemented and is planned for the next period. Complete technical documentation has been prepared for the implementation of both phases and a valid building permit has been issued.

5.3. REASON TO INVEST IN PROJECT

The investment potential of the project is reflected in the development of a new tourist and recreational zone on Lake Mezgraja, which will represent a new tourist product in the area of the municipality of Ugljevik and the Majevica region. The development of the lake and the construction of tourist infrastructure create conditions for the development of catering and accommodation capacities, sports and recreational facilities, as well as for the development of rural and excursion tourism.

The location has significant spatial potential (about 54.5 ha) and the basic infrastructure has already been built within the first phase of the development of the picnic area, which allows for a relatively quick continuation of investment activities. The area is accessible from several directions (the municipalities of Ugljevik, Lopare and Teocak), which increases its attractiveness and availability to a wider range of visitors.

The development of tourist facilities at this site will create opportunities for additional private sector investments, especially in the construction of catering facilities, accommodation facilities, sports and recreational facilities and fish farms. There is also a special potential for the development of sports and recreational fishing, which will increase the tourist offer and attractiveness of the area.

The project will also have a positive impact on the local economy, as it will enable additional engagement of the population from the Mezgrajs Municipality (hamlets of Gaj and Kose), which has about 465 inhabitants and is mainly engaged in agriculture. The development of tourism will open up opportunities for the marketing of domestic agricultural products, the development of rural tourism and the expansion of accommodation capacities within agricultural households, which can contribute to increasing the income of the local population and reducing unemployment in rural areas.

6. PROJECT FINANCING

6.1. ESTIMATED PROJECT VALUE IN EURO

The total estimated value of the project for the development of the picnic area and tourist infrastructure on Lake Mezgraja Luka, according to the technical documentation from 2023/2024, is 662,813.50 KM including VAT (approximately 338,890 EUR).

So far, the part of the project that includes the first phase of the development of the picnic area in the eastern part of the lake has been implemented, in the amount of 350,000.00 KM including VAT (approximately 178,950 EUR).

Additionally, the costs of preparing the project and technical documentation, project revision and expert supervision of the execution of the works have been financed in the amount of 50,000.00 KM including VAT (approximately 25,560 EUR).

The remaining investment value for the implementation of the second phase of the project is approximately 262,813.50 KM (approximately 134,380 EUR).

In addition to investments in the basic tourism infrastructure envisaged by the technical documentation, the area around the lake provides an opportunity for additional private investments in the development of catering and accommodation capacities, as well as in the development of fish farms and facilities for sport and recreational fishing. It is estimated that potential investments in the above facilities could amount to approximately 450,000.00 to 1,000,000.00 EUR, depending on the scope and concept of the investment.

6.2. PLANNED SOURCES OF FINANCING

The implementation of the remaining part of the project is planned through the involvement of private capital, with the concession model being the most realistic form of financing and managing tourist facilities at the site in question. This model would enable a potential investor to invest in the development of tourist, catering and recreational facilities in the lake area, with the right to use and manage certain parts of the site in accordance with applicable regulations.

The local community provides the land, the built basic infrastructure and the already implemented tourist facilities within the first phase of the project, as well as institutional support for the implementation of the investment. Potential investors are expected to invest in the continuation of the development of the tourist zone, the construction of additional facilities, and the development of catering, accommodation and sports and recreational activities at the site.

In addition to the concession model, a public-private partnership model can also be considered as a possibility, depending on the interests of investors and the scope of future investments.

6.3. INPUTS BY LOCAL PARTNER

The local partner (Ugljevik Municipality) provided:

  • land and space for the implementation of the project
  • preparation of project and technical documentation
  • construction of basic tourist and communal infrastructure within the first phase (parking, visitor facilities, pedestrian and bicycle path, water supply, sewage and electricity infrastructure)
  • administrative and institutional support for the implementation of the investment

6.4. INPUTS BY INVESTOR

Potential investors are expected to invest in the implementation of the second phase of the project, which includes:

  • construction of an additional pedestrian and bicycle path and tourist furniture
  • installation of public lighting
  • construction of pontoons and docks for sport fishing
  • development of catering and accommodation capacities
  • development of fish farming activities and improvement of sport and recreational fishing

These investments have the potential for the development of tourist and economic activities at the site, as well as for generating commercial income through tourism, catering and recreational activities.

7. HAS PHYSICAL LOCATION FOR PROJECT IMPLEMENTATION BEEN IDENTIFIED

The project is being implemented on the site of Lake “Luke” Mezgraja, which is located in the municipality of Ugljevik, on the southern side of the city. The site covers a total area of approximately 54.5 ha, of which approximately 32.3 ha is land. The project is being implemented on cadastral plots in the cadastral municipality of Mezgraj (1119/20, 119/21, 1119/18, 1119/19, parts 1119/2, 1147, 1369) and the cadastral municipality of Teočak (1448/1, 1448/24, 8928). The land is owned by the municipality of Ugljevik.

The site is defined by the Spatial Plan of the municipality of Ugljevik and is intended for the development of tourist and recreational facilities. The basic communal and tourist infrastructure has been built on the site. Electrical installations in the facilities have been carried out within the picnic area, as well as public lighting along the constructed pedestrian and bicycle path. Water supply installations with a fountain at the picnic area and a biological septic tank for wastewater treatment have also been built.

The facilities and facilities are currently not connected to the electricity and city water supply network, but their future connection is planned. The planned connection to the electricity network is envisaged from the nearby 10/0.4 kV substation, while the connection to the city water supply network is planned from the water supply in the settlement of Mezgraja, hamlet of Mijatovići (cp 1201).

The location has a secured access road, as well as a built parking area for visitors, which allows for the further continuation of investment activities and the development of the tourist offer.

8. HAVE THE ACTIVITIES ON PROJECT IMPLEMENTATION ALREADY STARTED

Yes. Activities on the implementation of the project have begun. Complete project and technical documentation has been prepared for the implementation of the project and a building permit has been obtained for the implementation of works on the development of the tourist and recreational zone.

Within the first phase of the project, works on the development of the eastern part of the picnic area on Lake “Luka” Mezgraja have already been implemented, which include the construction of parking spaces, facilities for visitors, part of the pedestrian and bicycle path, communal infrastructure, lighting, as well as accompanying facilities for picnickers.

The project is currently in the phase of further planning and preparation for the implementation of the second phase of works, which includes the continuation of the development of the tourist infrastructure on the western part of the lake.

9. PROJECT APPLICANT AND CONTACT INFORMATION

MUNICIPALITY OF UGLJEVIK
Mayor of the Municipality of Ugljevik
Project Team of the Municipality of Ugljevik – Team Representative, Aleksandar Krstić, Head of the Civil Protection Department
Phone: 055/773-744; 055/773-770
E-mail: opstinaugljevik@gmail.com