BUSINESS ZONE “JADAR”

1. PROJECT TITLE

BUSINESS ZONE “JADAR”

2. SECTOR

Small and medium-sized enterprise sector, processing industry, transport and storage, trade and other service activities.

3. LOCATION

The city of Zvornik is located in the northeastern part of Republika Srpska and Bosnia and Herzegovina. It is located on the border with the Republic of Serbia, with which it has road and rail connections via four bridges on the Drina River:

• Karakaj – international border crossing of category I in road traffic,
• Šepak – international border crossing for passenger traffic in road traffic,
• Zvornik – international border crossing for rail traffic,
• Zvornik Stari most – border crossing for border traffic.

It borders the municipalities of Bratunac, Milići, Vlasenica (to the south), Šekovići, Osmaci, Sapna (to the west), Ugljevik and Bijeljina (to the north) and the Republic of Serbia (to the east) and is the cultural, economic and administrative center of the Birac region. It covers an area of 371.95 km².

The “Jadar” business zone is located within the Karakaj Industrial Zone and is 4 km from the city center. It is located in the immediate vicinity of the Karakaj border crossing, which functions as a goods and customs terminal for freight traffic and the international Serbia-BiH railway with a loading and unloading station. It is directly connected to the M1(110) highway that runs from Bijeljina via Zvornik to Sarajevo and the M1 (115) that leads from Zvornik to Tuzla and further into the interior of BiH. The distance of the business zone from Banja Luka airport is 224 km, Sarajevo 160 km, Belgrade 168 km and Tuzla 50 km.

4. BRIEF PROJECT DESCRIPTION

Business Zone “Jadar”:

• Brownfield location;
• It covers 8.09 ha of built-up land in the Karakaj industrial area;
• 6.48 ha are available to investors;
• It has a built-up common infrastructure that can be adapted to the needs of investors with small investments;
• The procedure and conditions for investors to enter the Business Zone “Jadar” are determined by the Regulation on the conditions and procedures for leasing land and facilities to investors;
• Land and facilities can be purchased or leased for the purpose of organizing production or performing service activities.

5. PROJECT DETAILS

5.1. WHAT TYPE OF PROJECT IT IS?

The Jadar business zone is a brownfield location where three companies currently operate. 10 facilities are available to potential investors.

No	Facility	Facility Area (m²)
1.	Administration building (restaurant with kitchen and offices)	728
2.	Coal storage (hall, warehouse)	1.439
3.	Boiler room	–
4.	Drying plant (aluminum-type purpose-built facility, drying plant)	419
5.	New plant (hall)	974
6.	Panel (hall)	900
7.	Raw material department (hall)	2,991 and 6 m high
8.	Plywood (hall)	3.730
9.	Spare parts warehouse (warehouse)	130
10.	Crane girder (possible to build a hall)	Facility length 127 m and columns 9 m high

The area of available facilities is approximately 13,000 m².

A common infrastructure has been built within the Business Zone.

The Business Zone has its own transformer station with an installed power of 10/04 kW with two transformers of 630 kVA each.

There is a PEHD fi 110 mm water supply with two wells, a water tower with a capacity of 200 m³, a pump that pumps out 40 t/h, a 22 kW or 1545 rpm motor and hydrant connections for each facility.

A sewage network has also been built. There are two manholes within the business zone and a collector outside the business zone.

There are also gas installations and its own gas substation with a pressure of 3 bar.

There is a fixed telephone connection with ten outputs. The area is covered by three mobile phone operators, which offer multiple tariff models for private and business users, including international tariff options. There is no internet connection, although the area is covered by two operators. The monthly subscription price for their ADSL service with IAD/WiFi modem depends on the selected access speed (from 2048/256 kb/s to 30000/3000 kb/s) and ranges from 22.23 KM to 58.50 KM.

A fence made of 3 m high concrete pillars and mesh wire has been built around the business zone.

5.2. PROJECT STATUS

The project is in the business idea phase.

5.3. REASON TO INVEST IN PROJECT

• Developed local government unit with a favorable business environment standard (BFC SEE);
• Administrative, cultural and economic center of the Birac region;
• Favorable geostrategic position;
• Equidistant from all major cities in the country and the surrounding area;
• There are four border crossings with the neighboring Republic of Serbia;
• Qualified labor can be hired at competitive prices;
• Established Education and Employment Council with the aim of harmonizing supply and demand on the local labor market;
• Efficient work of the Economic Council;
• Constant growth in the number of economic entities (1,277 in 2024);
• An annual program for granting incentives for the development of agricultural production is being adopted and implemented;
• An annual program for the allocation of subsidies for employment and self-employment is being adopted and implemented;
• Spatial planning documentation has been developed or is being developed;
• The procedure for issuing permits required for construction has been reduced to three steps (Location Conditions, Construction Permit and Use Permit);
• Shortened deadlines for issuing permits required for construction;
• The fee for the development of urban construction land has been reduced by 25%, and additionally from 30% to 70% for production facilities;
• The amount of rent per 1 m² of usable area of production and auxiliary facilities is from 1% (sixth zone) to 6% (first zone) of the average construction price of 1 m². For the construction of production facilities, the rent is reduced by 1%, except in the sixth zone where the rent is reduced by 0.5%;
• Possibility of paying the rent in several installments;
• The amounts of utility fees and fees for the use of public areas have been reduced by up to 50% and for the placement of advertisements and billboards by up to 70%;
• Exemption from paying utility fees in the first year of business activity;
• Administrative fees are not paid for documents and actions related to the registration of entrepreneurs, as follows: for establishment, for changes in data entered in the register, for cessation of activity, for preparatory actions and for the reservation of a business name, which includes registration and deletion, and for documents and actions related to entry in the register of carriers of persons and goods;
• Low prices for utility services;
• Low real estate tax rate (0.14%, and for investors starting a production activity 0.07%);
• Non-financial support measures for investors when investing.

Information on companies operating in the Zvornik area can be found in the database of legal entities, which is regularly updated and published on the city’s website: https://gradzvornik.org/baze-podataka/

6. PROJECT FINANCING

6.1. ESTIMATED PROJECT VALUE IN EURO

The value of the project depends on the area of the building that is the subject of lease or purchase.

6.2. PLANNED SOURCES OF FINANCING

The City of Zvornik may bear the costs of reconstruction of road and utility infrastructure and co-finance employment.

The investor bears the costs of renting or purchasing a facility, furnishing the facility, purchasing necessary equipment, and the costs of fees and taxes charged in the process of issuing a building permit and starting a business.

The sources, amount, and purpose of the funds are regulated by the contract.

6.3. INPUTS BY LOCAL PARTNER

• If the investor invests his own funds in construction and other works that serve to bring the facility to a general purpose (electricity, water, sewage), the investor may be exempted from up to 60% of the rent.
• The rent is lower during the period of preparation for production, which cannot exceed six months;
• The city ensures the use of common access roads that are not included in the base for paying the rent;
• The city allocates funds for the reconstruction of road and communal infrastructure;
• The city co-finances employment.

6.4. INPUTS BY INVESTOR

The investor bears the costs of renting or purchasing the facility, furnishing the facility, purchasing the necessary equipment, and the costs of fees and taxes charged in the process of issuing a building permit and starting a business.

The table shows the approximate cost of the procedures for the construction of a facility of approximately 200 m² in the Jadar Business Zone.

	Costs of obtaining location conditions, construction and usage permits (KM)	Costs (KM)
I	Fees, taxes and approvals until the issuance of location conditions
	Administrative fee for the Decision	20
	Costs of processing Urban and technical conditions	82
	Costs of preparing Urban and technical conditions by an authorized company	600
	Total	702
II	Costs of fees, taxes and approvals until the issuance of a building permit
	Urban land development	6.400
	Rent	2.100
	Fee for financing the real estate cadastre	660
	Technical documentation	4.000
	Approval of documentation	200
	Environmental permit	40
	Costs of preparing a report for obtaining an environmental permit by an authorized design company	750
	Total	14.150
III	Costs of fees, taxes and approvals until the issuance of a use permit
	Administrative fee for the Decision	100
	Commission for technical acceptance of the facility	1.500
	Total	1.600
Total I + II + III		16.452
Total I + II + III per m² of usable area of the facility approx.:		90

NOTE: When building a new building on the site of an existing building of the same dimensions, there are no costs for determining Urban and Technical Conditions, development of construction land and rent, as well as obtaining consent for electricity connection because this has already been paid for the existing buildings. If the new buildings are larger than the existing ones, fees are paid, but only for the difference in square footage.

7. HAS PHYSICAL LOCATION FOR PROJECT IMPLEMENTATION BEEN IDENTIFIED

The “Jadar” business zone is within the scope of the Spatial and Urban Plan of the City of Zvornik.

8. HAVE THE ACTIVITIES ON PROJECT IMPLEMENTATION ALREADY STARTED

Activities on the implementation of the “Jadar” Business Zone project have begun and three companies are currently operating here.

9. PROJECT APPLICANT AND CONTACT INFORMATION

CITY ADMINISTRATION OF ZVORNIK
Department of Economy and Social Activities
Contact person: Biljana Milić, Head of the Department of Economy and Social Activities
Phone: 056/232-236
Fax: 056/232-221
Mobile phone: 066/077-333
E-mail: biljana.milic@gradzvornik.org