1. PROJECT TITLE
Development of Aleksandrovac Business zone, Laktasi
The initiative is part of the sector of industry and small-and medium-sized enterprises (SMEs)
Municipality of Laktaši in the north-western Republic of Srpska, close to Banja Luka airport and Gradiška – Banja Luka motorway. In close vicinity of the border with Croatia, i.e. the EU, to the north. The Municipality of Laktaši is only 20 km from Banja Luka, the administrative and university center.
4. BRIEF PROJECT DESCRIPTION
Owing to its strategic location at the border between Banja Luka and Gradiška, and its development orientations, this Municipality is among the most progressive in the Republic of Srpska. With the population of 34,210, this Municipality is among the larger in the Republic of Srpska by number of inhabitants.
By following development strategies, the Municipality has been systematically promoting entrepreneurial initiatives during the last ten years. Therefore, this project would contribute to positioning Laktaši as a business friendly environment and a unique investment location. The process started with the existing Laktaši Industrial Zone which
is already 80% completed and located only 1 km to the east of the location of the future Aleksandrovac Agribusiness Park. As a result, the Municipality of Laktaši is one of the municipalities with most companies and a below-average unemployment rate. However, there are still 2,265 persons seeking employment at the territory of the Municipality (according to the data of the Employment Bureau – Laktaši Office, as of 31 December 2016).
Availability of young educated labor force, insufficiently used agricultural resources, renewable energy sources, good position and favorable trends at the market provide an opportunity to make a step forward in developing the value chain of agriculture and food production. So, a modern export-oriented agribusiness park is planned in Aleksandrovac, open to other supporting and green industries, small-and medium-sized enterprises and service activity sector. The Aleksandrovac business zone is considered one of the main instruments of support to a sustainable local economic growth in the Municipality of Laktaši, as well as in the catchment area.
The following utility infrastructure is available in the zone:
- internal transport network,
- communal waste removal,
- water supply and sewerage network,
- electricity supply and
- telecommunication network.
5. PROJECT DETAILS
5.1 What type of project is it?
The Aleksandrovac business zone is a location for greenfield investments.
The Municipality of Laktaši is the owner of building parcels at the business zone which are sold at the price of 6.00 BAM/m². Currently, eight companies are investing and operating in the zone. The business zone covers the area of 28.9 ha, and there are several unoccupied building parcels of area ranging from 5,000 to 12,000 m².
The zone has a direct exit to the Banja Luka-Gradiška motorway and it is very close to the M-16 trunk road and Banja Luka international airport
5.2 Project status
The project is in the phase of implementation.
5.3 Reasons to invest in the project
A potential investor could develop a business enterprise in the Aleksandrovac business zone and generate profit by doing so. Depending on the sector they intend to engage in, the potential investor would receive all necessary information (qualified labor force, number of potential suppliers, competition in the proximity, etc.). That would also contribute to job creation and fulfilment of development objectives of the Municipality, simultaneously contributing to a balanced development of the Republic of Srpska.
6. PROJECT FINANCING:
6.1 Estimated project value in €
The Municipality of Laktaši has provided utility infrastructure, and it is an obligation of the investor to pay for the connections and utility services.
6.2 Planned sources of financing
The investment is financed exclusively by the potential investor.
6.3 Inputs by local partner
For several decades, the Municipality of Laktaši has been continuously implementing business environment creating reforms which have encouraged the development of private entrepreneurship. Since then, the number of active economic entities, number of the employed, total revenue and profit have been constantly growing in the territory of the Municipality.
We provide numerous benefits to investors during their investing and obtaining all necessary permits and documents, which largely facilitates the investment and start of a successful business:
- Financial benefits in the forms of reduced municipal fees for the construction of production and agricultural facilities and possibility of settlement of liabilities in instalments. By a municipal decision, the investors are offered benefits in paying the fees for development land building up and rent. This allows investors to obtain about 50% discount on those liabilities for production facilities and to pay that amount in instalments upon providing a bank guarantee, i.e. to pay 20% of the price within 8 days, and to pay the remainder after a grace period of twelve months, in instalments over four years.
- The procedure to obtain a building permit has been improved to shorten the time needed to obtain location requirements and building approval.
- The Municipality approves incentives for the operation of economic entities in the form of a subsidy on a portion of the interest rate on loans for small enterprises and entrepreneurs at 4% interest rate on loans in the amount from BAM 10,000.00 to BAM 100,000.00.
- The Municipality has introduced a fast procedure of issue of the decision on performance of entrepreneurial activity, which takes one day.
- Economic Council was established as a form of formalized dialog between the municipal administration and the private sector, which has resulted in a higher degree of involvement of the economy into the operation of local administration.
- The Municipality holds the international ISO 9001:2008 standard for public service management quality in local administration.
- The Municipality is involved in the process of Business Friendly Certification (BFC SEE), the certification of business-friendly municipalities.
6.4 Inputs by investor
7. Has physical location for project implementation been identified
The 28.9 ha location is an agricultural area of greenfield type, situated in the settlement of Aleksandrovac, to the north of the Banja Luka international airport in Mahovlјani. The main utility infrastructure, except sewerage and wastewater treatment, is already present in the business zone.
Existing infrastructure on the location:
Transport infrastructure: There is a road within the zone, and an access road connecting the M – 16 trunk road with the Banja Luka – Doboj motorway.
Water supply: The location of the Aleksandrovac zone will be supplied from the Maglajani water supply system.
Sewerage: Sewerage infrastructure has not been built in the rural part of the Municipality of Laktaši (including Aleksandrovac). Wastewaters are directed to watertight septic tanks. There is no built system of separators for purification close to the Aleksandrovac business zone, and a separate collector system is planned.
Electric power infrastructure: The area of the Aleksandrovac zone is covered by an electric power system for a continuous supply with electric power (110 kWh substation).
Telecommunications: The Aleksandrovac zone has telecommunication infrastructure.
Existing facilities on the location: There are no facilities on the location, because the land is currently used as arable.
8. Have the activities on project implementation already started
The Municipality of Laktaši has adopted a regulation plan. Parcel area ranges from 3,000m² to 10,000m².
9. Project applicant and contact information
MUNICIPALITY OF LAKTAŠI, REPUBLIC OF SRPSKA, BIH
Address: Karađorđeva 56, 78250 Laktaši
Tel.: +387 (0)51-334-213
Contact person: Dragan Kelečević