1. PROJECT TITLE
PUTTING INTO OPERATION THE OLD HOSPITAL FACILITY IN ŠAMAC
2. SECTOR
The facility has been used as a hospital in previous years, is suitable for the development of a center for the elderly, and could possibly serve as a production facility.
3. LOCATION
Šamac
4. BRIEF PROJECT DESCRIPTION
The project concerns the commissioning of a former hospital building located in an urban area of the city, which is currently out of use and in a visibly dilapidated state. The building represents a significant but underutilized public resource, the revitalization of which could have great economic, urban and social significance. The basic idea of the project is to secure private capital investment in the reconstruction, modernization and new use of the building through a model of sale, long-term lease or public-private partnership.
The location of the building is one of its greatest advantages. It is located in an urban area with developed infrastructure, access to roads, public transport and other utilities. Due to its location and size, the building has the potential to become a significant urban and economic center. Although it is currently in poor physical condition and requires significant investment in reconstruction or adaptation, the existing structure can represent a good basis for the development of various commercial, public or mixed-use facilities.
The investment concept envisages several possible usage models. The facility can be adapted into a business or administrative center, a health or social center, an educational institution, a hotel or tourist complex, a residential and commercial facility, as well as a center for service activities. The choice of the final purpose would depend on the investor’s interest, economic justification and urban conditions. Given the spatial capacities and potential of the location, there is a possibility of developing a multifunctional complex that would unite several different facilities.
The public-private partnership model is a particularly suitable approach for the implementation of this project, as it allows for the combination of public interest with the financial and management capacities of the private sector. In this case, the public partner would provide the property and institutional support, while the private partner would invest funds in the reconstruction, management and development of new facilities. This model can enable the long-term sustainability of the project, reduce costs for the public sector and create new economic activities.
The implementation of the project would have several positive effects for the local community. First of all, the renovation of the abandoned and dilapidated building would improve the urban appearance of the city and prevent further degradation of the space. In addition, the investment could lead to the creation of new jobs, the development of service and economic activities, as well as an increase in local budget revenues. The project could also contribute to attracting new investments and strengthening the economic dynamics of the urban area.
Given the above potentials, the project of sale or lease of the former hospital building represents a significant investment opportunity. A properly designed cooperation model and clearly defined investment conditions can enable this currently unused space to be transformed into a functional, economically viable and socially beneficial facility.
5. PROJECT DETAILS
5.1. WHAT TYPE OF PROJECT IT IS?
The project is a brownfield investment, as it concerns an existing facility and land that was previously in operation, but is currently not actively used and requires reconstruction, adaptation or modernization.
The subject of the investment is a facility on the plot k.č. 1292/1 K.O. Šamac, with a total area of 19,187 m², with 604 m² of enclosed space. The facility is owned by the Municipality of Šamac and was previously used as a hospital, and then as a production facility.
Given the existing infrastructure and location in the city center, the facility has the potential for reconstruction and adaptation into a facility for providing services to the elderly and infirm, or the development of a social or health care institution.
The investment can be realized through the sale of the facility or a public-private partnership model, depending on the interests of potential investors and the defined cooperation model.
5.2. PROJECT STATUS
The project is currently in the business idea and initial investment preparation phase. The facility and land have been identified as a potential investment location owned by the Municipality of Šamac, with a defined primary purpose and future use options.
A basic analysis of the location and infrastructure facilities has been carried out for the project, while further investment preparation, depending on the implementation model and investor interests, will include the preparation of the necessary project and technical documentation, a possible feasibility study, as well as defining the terms of cooperation in the case of a public-private partnership or sale.
The existing facility is equipped with infrastructure, with connections to the water supply and sewage network, electricity, telecommunications, public lighting and asphalt access, which represents a good basis for future reconstruction and investment.
5.3. REASON TO INVEST IN PROJECT
Investing in this project represents an attractive business opportunity due to several economic and locational advantages.
First of all, a significant advantage is the favorable location in the city center of Šamac, with developed transport and utility infrastructure. The facility is located near the main transport routes: the M-17 highway (600 m), the border crossing with the Republic of Croatia and the European Union (3.8 km), the Šamac Port (3.8 km), the Šamac-Sarajevo railway (1.7 km), as well as the future Corridor Vc (21 km). This connection significantly increases the accessibility of the location and its investment potential.
An additional advantage is the existing infrastructure equipment, which allows the investor to approach the reconstruction and adaptation of the facility with minor investments in utility infrastructure.
The project is particularly attractive from the point of view of the development of social and health care services, given the growing need for institutions for the care of the elderly and infirm. This type of service has a stable and long-term demand, which represents significant commercial potential for investors.
In addition, the implementation of the project would enable the employment of up to 50 workers, which contributes to local economic development and the creation of new jobs.
By combining a favorable location, existing infrastructure, the possibility of adapting the existing facility and the growing need for social care services, this investment represents a sustainable and economically justified project with significant potential for return on investment.
6. PROJECT FINANCING
6.1. ESTIMATED PROJECT VALUE IN EURO
6.2. PLANNED SOURCES OF FINANCING
The project is planned to be implemented through several possible financing models, depending on the interests and structure of the potential investor. The basic model envisages full financing of the project by a private investor, through the purchase of the facility and land, after which the investor would carry out the reconstruction, adaptation and commissioning of the facility.
As an alternative model, the possibility of implementing the investment through a public-private partnership is envisaged, within the framework of which the local community would transfer the facility and land for use, while the private partner would provide financial resources for the reconstruction, equipment and management of the facility.
Depending on the final cooperation model, other forms of investment may also be considered, such as a long-term lease or concession model, with clearly defined conditions for the use and management of the facility. The main goal is to provide a sustainable financing model that will enable the reconstruction of the existing facility and its commissioning.
6.3. INPUTS BY LOCAL PARTNER
The Municipality of Šamac will, in accordance with its competences, provide institutional and administrative support to the investor, including cooperation in the process of issuing the necessary permits, support in the implementation of the investment and improvement of the business environment. The local community can also provide support in promoting the project and connecting with relevant institutions and partners.
6.4. INPUTS BY INVESTOR
The potential investor is expected to provide financial resources for the reconstruction, adaptation and equipment of the existing facility, as well as for putting the complex into full functional use.
The investor would also be responsible for preparing the necessary project and technical documentation, carrying out construction and reconstruction works, purchasing equipment and organizing the future operations of the facility.
In addition to financial investments, the investor is also expected to provide professional management, technical knowledge and operational capacities necessary for the successful functioning of the facility, as well as employing the necessary workforce. According to estimates, the implementation of the project may enable the employment of up to 50 workers, depending on the final organization and scope of services.
Through its investments and management capacities, the investor would ensure the long-term sustainability of the project and the provision of quality services, while simultaneously achieving economic justification for the investment.
7. HAS PHYSICAL LOCATION FOR PROJECT IMPLEMENTATION BEEN IDENTIFIED
Yes, a specific physical location has been determined for the implementation of the project. The project is planned on the plot of land plot 1292/1 K.O. Šamac, which is located in the city center of the municipality of Šamac, on Cara Dušana Street, at the southwestern exit from the city. The total area of the plot is 19,187 m², while the existing building includes 604 m² of enclosed space.
The location is defined by the valid spatial planning and urban documents of the municipality of Šamac, which allow the use of the space in accordance with the planned purpose and development of service and social activities, with the possibility of reconstruction and adaptation of the existing building.
The property and legal relations at the location in question have been resolved, and the owner of the land and building is the municipality of Šamac, which allows for a simpler implementation of the investment through the model of sale, lease or public-private partnership.
The location has the necessary supporting infrastructure, including connections to the water supply and sewage network, electricity, telecommunications network, public lighting, as well as an asphalt access road to the facility.
An additional advantage of the location is good transport connections. The facility is 600 meters away from the M-17 highway, 3.8 km from the border crossing with the Republic of Croatia and the European Union, as well as from the Port of Šamac, while the Šamac-Sarajevo railway line is 1.7 km away. The planned Corridor Vc is about 21 km away from the location, which further increases the strategic importance and investment potential of this area.
8. HAVE THE ACTIVITIES ON PROJECT IMPLEMENTATION ALREADY STARTED
No.
9. PROJECT APPLICANT AND CONTACT INFORMATION
Municipality of Šamac
Address: Kralja Aleksandar I Karađorđevića 4, 76230 Šamac
Contact person: Nataša Nenadović, Local Economic Development Service
Email address: natasa.vukovic@opstinasamac.org
Contact phone: 054/490-491
