DEVELOPMENT OF THE “LUGOVI” BUSINESS ZONE

1. PROJECT TITLE

DEVELOPMENT OF THE “LUGOVI” BUSINESS ZONE

2. SECTOR

Economic development

3. LOCATION

Šamac

4. BRIEF PROJECT DESCRIPTION

The subject of the investment project is vacant land intended for the development of a business zone in the municipality of Šamac, which represents a significant greenfield investment opportunity for domestic and foreign investors. The land is located on plots K.č. 1700/1 – P.L. 103/47 K.O. Gornji Hasić, with a total area of 170,135 m², and is owned by the municipality of Šamac.

The location is located in an extremely favorable geographical and traffic position, in the immediate vicinity of the regional road Šamac–Gradačac, which provides good connections with important transport routes and markets in the region. The land is 4 km away from the M-17 highway, 9 km from the border crossing with the Republic of Croatia and the European Union, as well as from Luka Šamac, while the railway line Šamac–Sarajevo is 7 km away. Also, the location is 19 km from the E70 Belgrade-Zagreb highway, 26 km from the future Corridor Vc, and only 4 km from the planned Belgrade-Banja Luka highway route, which gives it a special strategic importance for economic development and logistics activities.

The land is intended primarily for the development of production and economic activities, with the possibility of forming a business zone. The Municipality of Šamac is ready to provide investors with the necessary infrastructure, including electricity, water supply and fiber optic internet, as well as bringing infrastructure connections to the selected plot in accordance with the needs of the investment.

In addition to infrastructure support, the local community offers several investment incentives, such as favorable conditions for resolving rent and fees, one-time subsidies for employing 10 or more workers, as well as subsidies for the purchase of machinery and equipment. These benefits significantly reduce initial investment costs and encourage the development of new production capacities.

Thanks to the large land area, good transport connections, the possibility of providing complete infrastructure and the support of the local community, this location represents an attractive investment opportunity for the development of production, logistics and industrial capacities, and has the potential to become a significant economic center in the wider region.

5. PROJECT DETAILS

5.1. WHAT TYPE OF PROJECT IT IS?

The project is a “greenfield” investment, as it is a free, undeveloped land intended for the development of new economic and production capacities.

The subject of the investment is free land for the development of a business zone on plots K.č. 1700/1 – P.L. 103/47 K.O. Gornji Hasić, with a total area of 170,135 m², owned by the municipality of Šamac.

The location is planned for the development of production, industrial and logistics activities, with the possibility of forming a business zone. The large area of the land allows for flexible planning and construction of various production and business capacities, storage spaces, logistics centers and other business facilities.

5.2. PROJECT STATUS

In relation to the spatial planning documentation of the municipality of Šamac, the Šamac Municipal Assembly adopted the Decision on the adoption of the Spatial Plan of the Municipality of Šamac 2013-2033 (2017), while it was amended in 2020. In addition, the Urban Plan for the wider urban area of the Šamac urban settlement was adopted (2021). Specifically for the potential business zone, the Regulatory Plan of the “Free Zone Lugovi” was adopted in February 2024. Although the Regulatory Plan of the business zone adopted a parcelation plan, the cadastral parcelation was not carried out. In the cadastre and land books, the land of the business zone is registered as one cadastral plot under the number 1700/1 K.O. Gornji Hasić. In connection with the construction of the business zone, a Preliminary Design was prepared – architecture, hydro installations and WUR, while in the previous period, geological and geotechnical research and testing were also conducted, on which an Elaborate Report was prepared.

5.3. REASON TO INVEST IN PROJECT

The development of the Lugovi business zone is planned on land designated as 1700/1 K.O. Gornji Hasić. The land area is 170,135 m². The land is fully owned by the Municipality of Šamac. The land in question intended for the development of the business zone is located in a completely flat part of the Republic of Srpska, which represents a significant advantage in terms of future construction and infrastructure equipment. Next to the aforementioned location is a plot of land owned by the Municipality of Šamac, while further on and across the road is agricultural land owned by the Republic of Srpska, which has been granted a concession. An additional advantage of the location is that it is located in an area that is not built on or burdened by existing facilities, which means that the development of the business zone will not require additional costs of expropriation, demolition or relocation of existing capacities.

Thanks to the possibility of future expansion, this location has the potential to become a long-term strategic resource for the municipality, capable of attracting a larger number of investors, both domestic and foreign, while providing sufficient space for new production and service capacities. It is also important to highlight the geostrategic position of the municipality of Šamac, especially when it comes to road infrastructure: the distance to the future Vc corridor is 21 km (European route E-73), the distance to the future Banja Luka-Belgrade highway is 10 km, the E70 highway (Zagreb-Belgrade) is only 10 km away, a dense network of main, regional and local roads, and a 1st category road and freight traffic border crossing with Croatia, which is located in the municipality of Šamac itself. When it comes to railway infrastructure, the railway line Šamac – Sarajevo – Mostar with access to the Adriatic Sea (the port of Ploče in Croatia) enables the transport of goods in all directions.

The location of the future business zone itself will be only 4 km from the junction with the Banja Luka – Belgrade highway, while it is about 8 km away from the border crossing with the Republic of Croatia in Šamac.

6. PROJECT FINANCING

6.1. ESTIMATED PROJECT VALUE IN EURO

6.2. PLANNED SOURCES OF FINANCING

The project is planned to be implemented through private capital investment, i.e. through the purchase of land by the investor and the construction of production, industrial or logistics capacities in accordance with the investor’s business plan.

The investor provides funds for the construction of facilities, the purchase of equipment and the launch of business activities, while the local community provides institutional support and favorable conditions for the implementation of the investment.

6.3. INPUTS BY LOCAL PARTNER

The local community offers investors financial incentives, such as subsidies for hiring workers and support for purchasing production equipment, as well as special subsidies for operating within the business zone.

6.4. INPUTS BY INVESTOR

The investor is expected to provide financial resources for the construction of production or business facilities, as well as for the purchase of necessary equipment and the launch of business activities.

The investor will be responsible for the preparation of project and technical documentation, the construction of production or logistics capacities, the organization of the production process and business management.

In addition to financial investments, the investor provides professional management, technical knowledge and organizational capacities, as well as the employment of the necessary workforce.

7. HAS PHYSICAL LOCATION FOR PROJECT IMPLEMENTATION BEEN IDENTIFIED

Yes, a specific physical location has been determined for the implementation of the project.

Property and legal relations have been resolved, and the owner of the land is the Municipality of Šamac, which allows for easy implementation of the investment through the sale of land to investors.

The location is located near the regional road Šamac-Gradačac, with good connections to important transport routes: 4 km from the M-17 highway, 9 km from the border crossing with the Republic of Croatia and the European Union, 9 km from the Port of Šamac, 7 km from the Šamac-Sarajevo railway, 19 km from the E70 Belgrade-Zagreb highway, 26 km from the future Corridor Vc, and 4 km from the planned route of the Belgrade-Banja Luka highway.

8. HAVE THE ACTIVITIES ON PROJECT IMPLEMENTATION ALREADY STARTED

The subject location for the development of the business zone is a new location, which is still being developed. It is not yet filled. In the previous period, the Šamac Municipal Administration has intensified activities to promote the location, which include detailed development and updating of the investment brief of the Šamac municipality, production of a promotional video about the business zone in Lugovi, production and holding of various presentations with businessmen from both the Šamac municipality and the region with the aim of promoting the investment potential of this location.

In addition to the above, the Municipality of Šamac has adopted the Regulation on the conditions and manner of obtaining subsidies for entrepreneurs and legal entities in 2025, which defines various incentives offered by the municipality for subsidizing new employment, costs of purchasing machinery or equipment, subsidizing costs of building buildings, building new or reconstructing existing buildings, subsidizing (START-UP) packages for performing craft activities that are in short supply in the Municipality (butcher, shoemaker, watchmaker, tailor, plumber).

In addition to the above Regulation, the Municipality of Šamac has also adopted a special Regulation on subsidies for the improvement and development of the “Lugovi” Business Zone in 2025, which includes subsidizing new employment, purchasing machinery and equipment, building production capacities, as well as subsidizing infrastructure connections (supply of electricity, water supply, telephone and internet) to the location of the business entity user. A permanent Public Call for the allocation of the aforementioned incentives in 2025 has been announced for both Regulations, all with the aim of attracting new investors and developing the business environment of the municipality of Šamac.

9. PROJECT APPLICANT AND CONTACT INFORMATION

MUNICIPALITY OF ŠAMAC
Address: Kralja Aleksandar I Karađorđevića 4, 76 230 Šamac
Contact person: Nataša Nenadović, Local Economic Development Service
Email address: natasa.vukovic@opstinasamac.org
Contact phone: 054/490-491