1. NAME OF THE PROJECT

TREBINJE FREE ZONE

2. LOCATION

Trebinje is the southernmost city of Bosnia and Herzegovina and the Republic of Srpska. It is located in the valley of the river Trebišnjica, on the tri-border of Bosnia and Herzegovina, Montenegro and Croatia. The altitude of the city is about 275 m. Trebinje is located at an important crossroads, and it is 27 km from Dubrovnik, 115 km from Mostar, 360 km from Banja Luka, 70 km from Nikšić, 38 km from Herceg Novi, 230 km from Sarajevo. Today’s territory of the City of Trebinje covers an area of 904 km2. Trebinje has 31,433 inhabitants, of which more than 75% live in the urban area. There are three border crossings in the vicinity of the city, two with Montenegro (toward Nikšić and Herceg Novi) and one with Croatia (Dubrovnik). The free zone will be formed on one part of the site of the Novo Trebinje economic zone, which stretches between the main road M-6 (road to Mostar) and the main road M-20 (road to Dubrovnik). With the changes to the part of the Novo Trebinje Zoning Plan, the formation of a Free Zone is planned directly next to the roundabout at the Western Bypass.

trebinje
trebinje

The total area of the Trebinje free zone is 118,635 m2.
All the infrastructure that is needed for economic activity, i.e. communal, traffic, energy and telecommunications, has been brought to the area of the free zone, but it has not been developed in the zone itself.
The owner of the land is the City of Trebinje with 1/1 part of the ownership right.
For the establishment of a free zone in Trebinje, approvals were obtained from the Government of Republic of Srpska and the Council of Ministers of Bosnia and Herzegovina.

3. MORE DETAILED PROJECT DATA

WHAT TYPE OF PROJECT IS THIS?

Greenfield

PROJECT STATUS

The Council of Ministers of Bosnia and Herzegovina, at the session held on 30.03.2022, adopted the Decision on the designation of a part of the customs area as Trebinje Free Zone (Official Gazette of BiH No. 38/22) on the proposal of the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina.
The City of Trebinje provided the funds needed for the first phase of investment, which refers to investments in basic infrastructure.

GOALS OF ESTABLISHMENT

The main goal of the establishment of the Trebinje Free Zone is to encourage economic activity in Trebinje, as well as the investment of domestic and foreign capital and the organisation of production for placement on the domestic market and in exports. The goal and motives of the founders are:

  • utilisation of existing spatial capacities (land that is not currently used) and employment of the existing workforce,
  • engagement of domestic companies in capacitating the Free Zone,
  • connecting the economy of the region with the users of the Free Zone,
  • development of activities that complement existing productions,
  • increasing exports and thereby strengthening the market position of the region,
  • creation of conditions for employment of young highly skilled personnel,
  • introduction of new high-profit, export-oriented

Legal provisions stipulate that the following activities can be performed in the Free Zone:
– production of goods and provision of services,
– foreign trade transactions,
– wholesale trade of goods and retail trade for foreign exchange,
– banking and other financial affairs,
– property and personal insurance business and reinsurance business,
– tourist services

REASONS FOR INVESTING IN THE PROJECT

  • Good geographical location, close to the border with Montenegro and Croatia,
  • Proximity to the EU market, proximity to the port, proximity to the highway
  • Construction of the airport in Trebinje
  • There is a workforce ready for retraining in accordance with production needs,
  • Benefits offered by the City and the Republic of Srpska for starting production,
  • The distance of the zone from the nearest railway station is 70 km, from the seaport 30 km, from the airport 45 km,
  • There are available locations owned by the City for the construction of commercial facilities,
  • Proactive and efficient local administration,
  • Issuance of a construction permit within three days from the moment of submission of complete documentation,
  • Favorable climatic and hydro conditions for growing Mediterranean crops,
  • Potential for tourism development,
  • Potentials for the production of hydro and solar energy,
  • Developing market,
  • Low operating costs,
  • Stimulating tax policy
  • Liberal foreign trade regime,
  • Reduction of fees for land development for production facilities by 25% compared to the price valid in that construction zone,
  • Reduction of the rent fee by 99% for the construction of production facilities.
4. PROJECT FINANCING

It is estimated that the investment in the basic infrastructure will amount to about BAM 4,000,000.00

SOURCES OF FINANCING

City of Trebinje, Government of Republic of Srpska, interested investors and loan funds.

5. PROJECT APPLICANT WITH CONTACT INFORMATION

CITY OF TREBINJE
Address: Vuka Karadžića br.2
Mayor: Mirko Đurić
E-mail: grad@trebinje.rs.ba
Contact person: Dražen Bošković, Deputy Mayor

Telephone: +387 59 274-400
E-mail: drazen.boskovic@trebinje.rs.ba