1. PROJECT TITLE

Lipova Greda Business zone, Kozarska Dubica

2. SECTOR

Small- and medium-sized enterprises

3. LOCATION

Lipova Greda business zone is located on both sides of the Kozarska Dubica – Gradiska trunk road and only 10 km from the border crossing Donja Gradina – Jasenovac (Croatia). Proximity of the navigable river Sava adds to the attractiveness of the location due to a possibility of a navigable connection to Europe.

4. BRIEF PROJECT DESCRIPTION

The business zone is intended for the construction of small and medium industrial plants for production and processing activities, and for the development of all types of crafts and service facilities, cooling plants and storages for various purposes. Project purpose is to attract new investments to the zone.

5. PROJECT DETAILS

5.1 What type of project is it?

Greenfield

5.2 Project status

Complete project documentation, regulatory plan and feasibility study have been prepared. The project provides for a phased construction of the zone including the first phase – the smaller, southern part of the zone of 21ha, and the second phase covering development of the larger, northern part of the zone of 48ha. Until present, 50% of the road network planned in the first phase of the zone has been built, without the asphalt surface. A 1000 KW substation has been installed in the first phase. Water supply network has been built for 50% of the area of the first phase of the zone, as well as a dual (fecal and surface runoff) sewerage network for 50% of the first phase. Connection is enabled to the system of optical cables of the Telecom.
The first investor in the Lipova Greda business zone was company Eko-Bel d.o.o. Laktasi which has purchased 4 plots in the business zone until now.
During 2012, a newly built fruit and vegetables processing factory was opened, with the investment worth about BAM 3.5 million. The factory employs 21 workers and more than 800 cooperators from the municipality of Kozarska Dubica and neighboring municipalities.
After Eko-Bel, also the company Dubglass purchased a plot in the zone and built an office building of 500m² of area with the belonging plot of 4,500m² of land.
Izmir-based Turkish company Asiaprefabrik has bought 3 plots in the business zone and is planning to build a 7,000m² facility for manufacturing of containers and prefabricated houses.
This company has already started manufacturing in a leased Eko-Bel’s hall in the business zone. Employment of about 100 is planned after completion of the investment. In February 2017, German company Carl Kuhne bought 4 plots in the business zone and is planning to build a 2,500m² office building and to employ 10 and engage more than 100 cooperators for growing cornichons.

5.3 Reasons to invest in the project

The main advantages are competitive labor price, proximity of a border crossing and Zagreb – Belgrade motorway, cheap electricity. Furthermore, the municipality of Kozarska Dubica takes individual approach to each investor. When a potential investor comes to the municipality of Kozarska Dubica, the administrative service is at their service around the clock. All procedures of obtaining necessary permits have been expedited. Land price in the Lipova Greda business zone amounts to 9 BAM/m² including a possibility of discount by up to 99%.

The municipality of Kozarska Dubica offers discounts to investors entering the business zone as follows:

No TYPE OF DISCOUNT

Discount amount in %
1.  based on the number of the newly employed  
1.1. 10 to 20 new employees

40
1.2. 21 to 30 new employees

50
1.3 31 to 50 new employees

60
1.4. more than 50 new employees

70
2. based on the type of activity  
2.1. investor intending to launch an agricultural produce processing plant or a manufacturing plant of any type

30

 

Exceptionally, an investor intending to launch an agricultural produce processing plant and to engage local farmers on a cooperative basis, is eligible for a discount of up to 70% of the set land price.
The final purchase price of building land is set by discounting the offered price for the investor – highest bidder by an approved cumulative discount from the above table, provided that the cumulative discount amount may not exceed 99%.

6. PROJECT FINANCING:

Investors are provided with all necessary infrastructure (sewerage and special industrial and runoff waters drainage, water, electricity, telephone and internet optical cables) up to the plot, but they must contract the actual connections individually with service providers.
Individual approach is provided for each investor as well as active assistance in preparing necessary documentation.
Land price within the business zone is 4.50 €/m², with a possibility of price discount by up to 99%. The investor will obtain permanent ownership of the land.
A fee for converting agricultural land into development land amounts to 1 €/m², with a possibility for the investor to be exempted from the payment of this fee for some investments.
Investor obligations towards the municipality of Kozarska Dubica is to pay utility fees and building rent which total 1.50-2.00 €/m² of built-up development space pending obtaining of use permit.
All procedures concerning the issue of necessary permits have been shortened as much as possible and issue of a building permit takes 90 days at most.

6.1 Estimated project value in €

6.2 Planned sources of financing

6.3 Inputs by local partner

6.4 Inputs by investor

 

7. Has physical location for project implementation been identified

Lipova Greda business zone is at 7 km from the center of Kozarska Dubica. The area of zone location is 69 ha and consists of two parts, a larger of 46 ha and a smaller of 23 ha, which are divided by the Gradiska – Kozarska Dubica trunk road.
The planned location is owned by the municipality of Kozarska Dubica and it was selected due to its particular geographic position along the Kozarska Dubica – Gradiska – Donja Gradina trunk road which represents a link with the border crossing Donja Gradina – Jasenovac, at about 10 km from the industrial business zone.
The Zagreb – Belgrade motorway is at only 20 km and connects the zone with all major centers in the region and further in Europe (Zagreb 100 km, Belgrade 324 km, Ljubljana 267 km).
Zagreb international airport is at 95 km, and Banja Luka airport at 80 km from the planned location of the Lipova Greda business zone.
Proximity of the navigable river Sava adds to the attractiveness of the location due to a possibility of a navigable connection to Europe.
Lipova Greda business zone is 100% owned by the municipality of Kozarska Dubica.

8. Have the activities on project implementation already started
9. Project applicant and contact information

MUNICIPALITY KOZARSKA DUBICA
Svetosavska no 5
79240 Kozarska Dubica.
Web page of the business zone: www.poslovnazona.ba
CONTACTS:
Radenko Reljic, Mayor of the Municipality
Tel.: 052 416 010, 065 515 027
E-mail: nacelnik@kozarskadubica.org
Miroslav Tica, Head of Department of Economy and Social Affairs,
Tel.: 052 416 020, 065 484 486,
E-mail: privreda@kozarskadubica.org
Kocan Emir, Head of Division of Economy,
Tel.: 052 416 021, 066 712 970
E-mail: privreda@kozarskadubica.org