Development and Reconstruction of Facilities of Mljecanica Hospital for Physical Medicine, Rehabilitation and Balneoclimatology




The hospital is located at the foot of Kozara mountain, in the valley of the Mljecanica river, in Medjuvodje, at 13.5 km from Kozarska Dubica, 26 km from Prijedor, 80 km from Banja Luka and 110 km from Zagreb.


Creation of conditions to upgrade and develop the accommodation, diagnostic and therapeutic capacities, to expand the range and introduce new healthcare services and broaden their scope to the level of needs of a modern physical therapy and rehabilitation hospital.


5.1 What type of project is it?

Public-private partnership

5.2 Project status

A feasibility study of construction and reconstruction of Mljecanica Hospital facilities prepared.

5.3 Reasons to invest in the project

In order to ensure a better quality offer and to expand the scope of services provided, the public partner has identified the necessary investments.
By implementing the PPP agreement and putting the land into function for the construction of an apartment complex, a wellness center and a boiler room, the public partner – Mljecanica Hospital would achieve its interest to meet the needs of citizens in the area of treatment and recreation, since there are needs for spa treatment and recreational tourism.
Also, the interest of the public partner in cooperation with the private partner is to implement an investment which will generate higher employment in the entrepreneurial sector.
The private partner would achieve its interests by obtaining the right to build in an attractive location, by expected employment of own capacities in the construction and use of the facilities, as well as by generating profits from continuous use.
From the future private partner, the public partner is requesting a binding offer for financing, building, maintaining and managing the built capacities, all that with no financial participation of the public partner. Another request by the public partner from the private partner is for all built facilities to be transferred, upon expiration of the PPP agreement, to full ownership of Mljecanica Hospital without compensation.
Rheumatic diseases are among the leading reasons for visiting a doctor in the highly industrialized countries and they affect the already significantly disturbed function of organism in persons of the middle and older age more than other diseases. Recent findings about the process of disease development incite interest for the earliest possible diagnosis and therapy application in the earliest possible stage of disease. All this indicates full justification of these investments.


6.1 Estimated project value in €

Total project value is 3,731,748.16 euro, consisting of investments by the public partner of 1,900,910.10 euro and by the private partner of 1,830,838.06 euro.

6.2 Planned sources of financing

Public-private partnership

6.3 Inputs by local partner

In order to expand the capacities and to improve the contents of healthcare services, as well as to introduce the contents and services from the area of spa tourism, the public partner can offer: immovable property for use, i.e. location for construction of facilities, qualified staff and equipment for healthcare service providing, infrastructure and other service activities, use of natural potentials (thermal springs).

6.4 Inputs by investor

The model for implementation of the construction of the spa and recreation complex in Mljecanica is conceived in the way that the company – the future implementing agency of the PPP agreement – bears all costs of construction, maintenance, management, financing and partly use of the facilities, and that the public partner uses the built capacities, for the agreed monthly rent, in the minimum amount of 50% of accommodation capacity in the apartment complex, 50% of the capacities of the wellness center and swimming pool and 100% of the capacity of the boiler room. By the PPP agreement, the public partner would undertake to use the minimum of 50% of the capacities at annual level and to bear the accompanying risk, and be ready to pay for the services up to that level. The public partner would use the remaining capacities and have precedence in that use, and the private partner could use the unused capacities for service providing in the free market.

7. Has physical location for project implementation been identified

The hospital is located at the foot of Kozara mountain, in the valley of the Mljecanica river, in Medjuvodje, not far from Kozarska Dubica. It is connected by an asphalt road to the Kozarska Dubica – Prijedor trunk road, and located at 13 kilometers from Kozarska Dubica and 26 kilometers from Prijedor. By means of this road, the location is more broadly connected to the catchment areas by roads Prijedor – Novi Grad, Prijedor – Banja Luka, i.e. Kozarska Dubica – Kostajnica and Kozarska Dubica – Gradiska. The location of the Institute is 58 km from Gradiska and 80 km from Banja Luka. The bridges in Kozarska Dubica and Gradiska, as well as the proximity of the Zagreb-Belgrade motorway are a significant segment for the planned development of Mljecanica Hospital.

8. Have the activities on project implementation already started

Prepared feasibility study of construction and reconstruction of Mljecanica Hospital facilities.

9. Project applicant and contact information

Trg Republike Srpske 1, 78000 Banja Luka
Contact person: Sinisa Janjetovic, Acting Assistant Minister
e-mail: s.janjetovic@mzsz.vladars.net
tel.: 051/339-445