1. PROJECT TITLE
Project Soca – Cultivation of Shiitake and Champignons in an underground facility
The facility Soča is placed on a favourable location in the municipality Novo Goražde in the eastern part of the Republic of Srpska, that is, Bosnia and Herzegovina on the highway Belgrade (Serbia) – Dubrovnik (Croatia). The facility is connected to quality roads that lead to big shopping centers in BiH (Sarajevo, Mostar…), then with the cities on the relation Belgrade – Dubrovnik, that is, the Adriatic sea, and then with big shopping and especially tourist places in Serbia, Croatia and Montenegro.
4. BRIEF PROJECT DESCRIPTION
Project Soča – cultivation of shiitake and champignons in an underground facility is based on finding the possibilities for starting the facility Soča for economic purposes. The elaboration on the possibilities for the production of champignons and shiitake has been done for the facility. In addition to that, there is a well-developed energy infrastructure (electricity, coal), water supply system and other utility services.
Project Soča is located in the municipality Novo Goražde. The facility is equipped with heating system, cooling system and ventilation for supplying a room with fresh air and blowing out dirty air. Moreover, there is a complete electro installation, for illumination as well as for electric motor drive. The facility has a system for supplying with industrial water and drinking water, as well as sewage network and 12 sanitary blocks that are equally placed. The whole facility is under the ground, with a good access road and a possibility to control the access to the facility.
In addition to that, the facility offers a possibility for other economic activities.
5. PROJECT DETAILS
5.1 What type of project is it?
Project Soča, which is owned by the municipality Novo Goražde, is assigned for an economic activity within public-private partnership or it can be granted to concession according to the legislation in force.
5.2 Project status
Project Soča is a business idea, and the elaboration for the production of mushrooms: champignons and shiitake.
5.3 Reasons to invest in the project
The facility is located in the vicinity (100 m) of a motorway M20 that connects Belgrade (Serbia) with Dubrovnik (Croatia) with all supporting infrastructure. The location of the facility is 100 km away from the airport and railway, 250 km away from the harbor Ploče in the Adriatic sea and about 270 km away from the harbor Brčko on the river Sava.
The upper part of the river Drina is a region that has a good source of raw for the production of mushrooms. In the vicinity of the facility Soča there is a cold storage with the capacity of 2000t, which ensures the storage of mushrooms at a controlled temperature.
In addition to the facility, there is a well-developed energy infrastructure (electricity, coal), water supply system and other utility services.
Within the said region, there is no serious capacities for the production of champignons, nor for the cultivation of shiitake.
Relatively low investments into the construction facilities (adaption) will have a positive impact on the reduction of the fixed costs, and along with that on the price of the finished products.
Professional, quality workforce with ensured places for living, that, with an additional education, will be able to achieve high productivity and to ensure required quality for consumers.
Deficit of champignons, especially shiitake on the market of BiH and in the countries in the region: Serbia, Montenegro, Croatia, Slovenia, Romania, Bulgaria, Macedonia, Greece and Albania.
The Republic of Srpska stimulates the development of agriculture and food-processing industry by the economic policy measures.
A long-term strategy of the EU envisages the investment of capital into the Balkans, primarily into agricultural production and food-processing industry.
In BiH in the recent period, a number of hypermarkets were built or they are still being built.
6. PROJECT FINANCING:
6.1 Estimated project value in €
The value of the project for the production of champignons and shiitake is about 3.100.000 euros.
The financial value of the project includes: design of the compost bin for champignons and shiitake, design of the facility Soča, design of the growing rooms for champignons and shiitake, thermo-technical installations, equipment needed for production cycles and primary processing, permits and acceptance, design and other costs.
6.2 Planned sources of financing
6.3 Inputs by local partner
The municipality Novo Goražde through public-private partnership model for starting the production of champignons and shiitake or for some other adequate production activity, assigns the facility Soča as the owner with the supporting infrastructure. In addition to the facility, the municipality assigns a complete elaboration with technical and technological specifications and a developed plan for financing.
The facility Soča is an underground facility with two storeys with the overall area of 12.000 m2, out of which 10.000 m2 represents the industrial part, and 2.000 m2 is a space for offices, restaurant, ambulance and workshop. The facility is organized into 8 blocks which are mutually connected by horizontal communications. The blocks are tunnels which are 8m wide and 4 – 9.5m high. The facility has all the necessary infrastructure (electricity, drinking water supply and industrial water supply – connection to utility infrastructure, road infrastructure with connections to the main roads).
6.4 Inputs by investor
An investor should provide financial assets for: design of a compost bin for champignons and shiitake, design of the facility Soča, design of the growing rooms for champignons and shiitake, thermo and technical installations, equipment for the production cycles and primary processing.
7. Has physical location for project implementation been identified
The facility Soča is located at the centre of the village Kopači in the municipality Novo Goražde – in the eastern part of the Republic of Srpska, BiH.
Coordinates of the facility are: 430 40’50,22”N – 190 01’10,71” E
From the construction point of view the facility is in an excellent condition.
8. Have the activities on project implementation already started
The elaboration for starting growing champignons and shiitake has been done for these purposes. The elaboration includes a complete analysis of the market, technical and technological analysis and financial analysis with the estimated values of the gain.
9. Project applicant and contact information
THE MUNICIPALITY NOVO GORAŽDE
Division for economy and social activities
Head of the Division: Tomislav Čarapić
Address: Božidara Goraždanina, 64
73110 Novo Goražde
The Republic of Srpska, BiH
Telephone: +387 58 430 095, +387 58 430 064
Fax: +387 58 432 100
Web site: www.novogorazde.rs.ba