1. PROJECT TITLE
Jadar Business zone, Zvornik
Economic development of small-and medium-sized enterprises
The city of Zvornik occupies the area of 371.95 km2 in the northeastern part of the Republic of Srpska and Bosnia and Herzegovina, on a stretch known as central Podrinje, i.e. Birac region. It borders the municipalities of Bratunac, Milici, Vlasenica (to the south), Sekovici, Osmaci, Sapna (to the west), Ugljevik and Bijeljina (to the north) and the Republic of Serbia (to the east). The population of the city of 65,000 is divided in 17,495 households dispersed throughout 61 local communities.
4. BRIEF PROJECT DESCRIPTION
In order to further boost the growth and development of the existing companies and opening of the new, and to initiate manufacturing activities and investment by local and foreign investors, the Municipal Assembly of Zvornik adopted a decision in 2011 establishing Jadar business zone in Karakaj, a suburban settlement very close to the border crossing serving as a goods clearance terminal and to the transport lines leading to Bijeljina and Tuzla. It covers 8.09 ha and has all infrastructure facilities (water supply, sewerage, electric and telecommunications network). Of the total area of the buildings built earlier for the needs of wood processing industry, 7,000 m² can be used. The remaining 18,000 m² are not suitable for use.
5. PROJECT DETAILS
5.1 What type of project is it?
The business zone is a brownfield investment owned by the Zvornik city administration. Complete infrastructure has been developed in the territory of the Jadar industrial zone Zvornik including necessary permits and operating documentation.
The existing infrastructure facilities include:
- Administrative building, area 728 m², in terms of infrastructure fitted with water, electricity, sewerage and a telephone connection with 10 lines. Installations and heating devices for central heating exist but are not operational. The area itself is divided in a restaurant with a kitchen and office spaces ranging from 15 m² to 20 m² fitted with basic office furniture (desks, chairs, closets of older type).
- The Veneer building, area 3,952 m², is one of the newer structures that can be put to use right away with minimum investment – the roof is leaking in one place and there is a small damage in a side wall caused by unprofessional machine handling.
- Coal storage is a building of 1,439 m². There is damage in the roof drains, and the sides are only closed up to 2 m height. Closing them entirely (8 m high) would create a very good hall.
- The Drying building is a special-purpose aluminum-type structure of useful area of 419 m².
- The Bent Parts building, 708 m², is in a poor condition, with dilapidated walls and a leaking roof.
- The New Plant building has damaged electrical installations and no sanitary block, but all 974 m² can be put to use immediately with minimum investment.
- Replacement of glass in the windows and renewal of mortar on the walls can bring about 900 m² of area of the Paneling building into a condition suitable for use.
- The remaining 2,200 m² is an extension and in a poor condition – demolished roof structure with HDF boards.
- The Raw Section building has the area of 2,991 m² and height of 6 m. By replacing carpentry and repairing a broken water supply pipe it can be brought into a condition suitable for use.
- The Plywood building, area 3,730 m², is in a poor condition – the roof is leaking, walls are dilapidated, windows and doors are shattered and removed.
- The Lacquer Workshop is a structure in a relatively good condition. Its area is 1,200 m² and height is 4 to 6 m.
- The following buildings are in a poor condition: Warehouse (950 m²), Finished Products (1,000 m²) and Oil Storage (130 m²).
- Of the total area of the Workshop building (760 m²), about 200 m² can be put to use with some investment.
- The same goes for the Spare Part Warehouse building (130 m²).
- The Crane Girder is a structure of good construction. Its strong concrete columns are 9 m high. Distance between the two rows of the columns is 16.5 m. Building of a roof and closing of sides would result in a very good hall. Total length of the building is 127 m.
5.2 Project status
The entire area of the Jadar industrial zone Zvornik is functional and has all necessary permits for operation. Currently, there are two companies operating here and using a part of the area.
5.3 Reasons to invest in the project
The location of the Jadar business zone is within the Karakaj industrial zone, it has completely developed industrial infrastructure, and several companies of various industry sectors are operating in the vicinity. Business zone location is on a transport hub, i.e. 500 m from the Karakaj border customs terminal, 700 m from railway and terminal, and Bijeljina-Zvornik M-19 trunk road runs along the location. Distance from airports: Banja Luka 224 km, Sarajevo 160 km, Belgrade 140 and Tuzla 50 km. Also, closeness of the city of Zvornik offers future investors quality professional, educational, cultural, sports and other services.
6. PROJECT FINANCING:
6.1 Estimated project value in €
6.2 Planned sources of financing
6.3 Inputs by local partner
We offer numerous investment benefits to investors in obtaining all necessary permits and documents, which largely facilitates investing and starting a successful operation. Calculation of the expenses of fees, taxes and approvals is given using the example of investing in metalworking or wood processing industry. It is assumed that plans include purchasing a 5,000 m² plot of development percentage of 20%, i.e. 1,000 m² where one-story buildings are erected, and employing 30 workers in the machine pool which requires installed electric power of 100 kW.
6.4 Inputs by investor
Potential investors are expected to invest in reconstructing the existing buildings or constructing new production and business buildings, for the needs of which the list of current expenses is given below.
Note: For erecting new buildings in place of the existing ones, no fees are levied for preparation of urban planning documentation, rent or construction land development, because these had already been paid for the existing building. For new buildings larger than the existing, those fees are payable only for the difference in area.
* Power grid connection approval has been paid for the two existing substations, so this only concerns the installation of a new substation (80 BAM + VAT per kW).
7. Has physical location for project implementation been identified
The project is an integral part of the Zvornik Municipality Integrated Development Strategy 2012- 2017. The area of the business zone is 100% owned by the city administration of the city of Zvornik and it has all necessary permits for operation.
The business zone has its own substation with two transformers, 1,000 kW each. Only one cable line runs from them transmitting electricity from one building to the other. Electrical installations are functional in the administrative and Veneer buildings, and damaged in the others. There are no lighting poles for street lights – previously there were flood lights installed on each building.
There is a water supply system with two wells, a 200 m³ water tower, a 40 t/hour pump, a 22 kW1545 rpm engine and installations damaged in several places. The water is potable, but it has not been tested (biologically or chemically) in the last 5 years. All buildings have a hydrant connection.
Sewerage, gas and telephone installations are functional, unlike heating devices.
The business zone is enclosed by a fence of 3 m high concrete columns and mesh wire. For the most part, it is overgrown by European dewberry and bushes due to which potential damage cannot be established.
8. Have the activities on project implementation already started
The project of the Jadar business zone Zvornik is functional and two companies are currently operating in the zone.
9. Project applicant and contact information
ZVORNIK CITY ADMINISTRATION
Public procurement and international cooperation service
Contact: Aleksandar Jevtic, International and Cross-Border Cooperation Officer
Tel: +387 56 232 216
Fax: +387 56 232 221
Cell phone: +387 65 963 695