1. PROJECT TITLE

Infrastructure development for Lanara industrial zone, Teslic

2. SECTOR

Sector of industry and small-and medium-sized enterprises (SMEs)

3. LOCATION

The municipality of Teslic is located in the northern Republic of Srpska. Lanara Industrial Zone is located in the border areas of the municipality to the south of the city.

4. BRIEF PROJECT DESCRIPTION

The municipality of Teslic is still facing the consequences of slowdown of economy and restructuring of its traditional industries. Of the total population of 41,904, about 6,000 are employed, while 4,707 were registered as unemployed in 2013. However, the number of SMEs is growing in Teslic and adjacent areas. The existence of 200 enterprises and 880 entrepreneurs, qualified labor force and tradition in the field of industry, positive trends in spa tourism, construction of corridor 5C in close vicinity, and commitment to ensure accelerated economic development justify the need for the implementation of a set of support measures to local economy in this area. Lanara Industrial Zone is considered one of the instruments for support to sustainable economic growth in this catchment area.
By its regulation plan, the municipality of Teslic intended the area of 70 ha located to the south of the city for industrial and business purposes. This project proposes construction of a modern industrial zone on the land of 14.08 ha within this complex.

The project covers preparatory activities (amending the regulation plan, technical project) and construction of basic infrastructure network as follows:

  • internal transport network,
  • land development,
  • water supply and sewerage network,
  • electricity supply,
  • telecommunication network.

 

The investment is expected to result in 21 parcels fully fitted with modern infrastructure, of the total area of 11.8 ha. Individual parcel area ranges from 2,440 m² to 3,600 m², with a possibility of parcel division into smaller areas, i.e. parcel merger into larger areas.

Lanara Industrial Zone in Teslic will be primarily focused on export-oriented SMEs seeing growth in light technology and production sectors, regardless whether they are domestic or foreign investors.

5. PROJECT DETAILS

5.1 What type of project is it?

The subject of this project is a location of 14.08 ha, greenfield type area, located in the urban part of the city of Teslic.

5.2 Project status

Prepared preliminary design/feasibility study.

5.3 Reasons to invest in the project

The analyses of advantages and drawbacks, demand, technical/technological feasibility and cost-benefit analysis indicate that the investment in Lanara Industrial Zone, Teslic, is acceptable and justified.
The justification of the investment is supported by the economic indicators which indicate that the investment would have a positive impact on a wider social and economic environment. The establishment of infrastructure for the zone would contribute to the improvement of conditions necessary for growth of the local small- and medium-sized enterprises and upgrade the attractiveness of the municipality for foreign investments.
That would also contribute to job creation and fulfilment of development objectives of the municipality.

Impact on employment
It is estimated that at least 300 workplaces would open by project implementation at Lanara Industrial Zone.

Environmental impact
Based on a preliminary environmental impact assessment, it was concluded that the Lanara Industrial Zone Teslic project would not have adverse effects on the environment.

6. PROJECT FINANCING:

6.1 Estimated project value in €

2,768,203.08 EUR

6.2 Planned sources of financing

Expected sources of financing:

  • Financing by EU funds (IPA – Instrument for Pre-Accession Assistance),
  • Municipal budget,
  • Donor funds.

 

6.3 Inputs by local partner

The municipality of Teslic currently has the following package of incentives for investors:

  • favorable prices of business locations in the brownfield location in the built-up zone of Borje;
  • incentives for job creation and employment of the unemployed;
  • exemption from payment of taxes and utility fees for the newly established companies during the period of 1 year;
  • payment of rent for development in several instalments.

 

6.4 Inputs by investor

 

7. Has physical location for project implementation been identified

The location of 14.08 ha which is the subject of this project is an empty greenfield area located in the urban part of the city of Teslic. The main utility infrastructure is already close to Lanara Industrial Zone, but infrastructure has not been built in the territory of the zone to serve for the development of the business zone.

Existing infrastructure on the location:

  • Transport infrastructure: There are no existing roads in the zone, except an earth road.
  • Water supply: A distribution pipeline is laid close to the future Lanara business zone, and this business zone can be connected to it.
  • Sewerage: Close to the future Lanara business zone there is a built sewerage network which could have the function of a recipient of wastewaters from this industrial zone.
  • Electric power infrastructure: The area covered by Lanara Industrial Zone includes an existing substation which meets the needs for electric power.
  • Telecommunications: Lanara Industrial Zone in the territory of the municipality of Teslic has no internal telecommunication infrastructure.
  • Existing facilities on the location: There are no built business facilities in the locality.

 

Existing planning documentation and regulations:

  • Spatial Plan,
  • Utility and Working Zone Regulation Plan.

 

8. Have the activities on project implementation already started

Prepared feasibility study.

9. Project applicant and contact information

MUNICIPALITY OF TESLIC, REPUBLIC OF SRPSKA
Address: Karadjordjeva 6, 74 270 Teslic, Republic of Srpska
Telephone: +387(0) 53-411-500
E-mail: informisanje@opstinateslic.com
www: www.opstinateslic.com