10 reasons to invest in Trebinje
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- Arlene Walters
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1 Invest in Trebinje
2 10 reasons to invest in Trebinje The vicinity of the European Union and the market of approx.600 million consumers Liberal Foreign trade regime with most countries Favourable climatic and hydrological conditions for growing Mediterranean cultures The potential for tourism development Qualified workforce The potencial for producing hydro and solar energy Vicinity to The Adriatic Sea 30 km The Market in progress Stimulating tax policy Low operating costs
3 Content Strategic position Labor market Key sectors Business environment Business zone Incentives for investors Successful stories Quality of life Contacts
4 STRATEGIC POSITION
5 The strategic geographic position GDP per capita figure : 3,419 EUR (2012) Strategic position to the European, Middle Eastern and Asian markets
6 Key facts about Trebinje Area Altitude Population Population density per km km m Climate The average temperature Time zone Relief Mediterranean 260 sunny days July 26,5 C January 8 C UTC +1 Dinaric carst
7 The City located at the border Southeastern part of B&H (RS) At the border of Bosnia and Herzegovina, Montenegro and Croatia The economic and cultural center of the region of Eastern Herzegovina 18 local communities The rich cultural and historical heritage City budget for 2016: ,00 BAM of which the expenditures for non-financial assets amount to ,00 BAM
8 Vicinity to the international airport and port It takes less than 2 hours to arrive at European destinations Location Distance(km) Dubrovnik, Croatia (seaport) 31 Čilipi, Croatia (international airport) 41 Tivat, Montenegro (international airport) 93 Mostar, B&H (international airport) 114 Podgorica, Montenegro (international airport) 117 Bar, Montenegro (seaport) 120 Ploče, Croatia (seaport) 130 Sarajevo, B&H (international airport ) 198 Split, Croatia (international airport) 249 Brčko, B&H (riverport) 384 Beograd, Serbia (riverport ) 458 Source:
9 Vicinity to the international airport and port
10 Water resources of the City Trebišnjica River with two hydro power plants Rivulet Sušica and a number of other smaller watercourses Trebinje and Bileda lake rich in fish Pure spring water of high quality A large amount of precipitation Large reserves of groundwater The possibility of irrigation 90% of agricultural land
11 LABOUR MARKET
12 Education Element ary school 4 schools 539 the number of pupils enrolled in 2015/2016 Secondar y Schools 4 schools 1,260 the number of pupils enrolled in 2015/2016 Higher education 4 faculties 606 the number of students enrolled in 2015/2016 Agency for learning Foreign Languages : 3 (Britannica, Cambridge, Cerovac) Foreign Languages: English, Italian, German, Russian, French Source: Visit schools and universities from 7 till 9 March 2016.
13 People as a key success factor The employed total 7, An overview of available workforce The unemployed total 4, SSQ S UD SS and LEB SoHU HS US M.A. (M.Sc) Ph.D. (Sc.D) The employed The unemployed
14 An overview of professional and skills structure available workforce [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [PERCENTAGE] [CATEGORY NAME] [PERCENTAGE] Source: xxxxxx, situation existing at the date of xx.xx.2014.
15 Average salary Average net salary in the Republic of Srpska : 825 BAM* Average net salary in the Republic of Srpska : 830 BAM* Average net salary in Trebinje : 835 BAM* Vacation : 20 days On every fourth year of service : 1 day *2014. year
16 KEY SECTORS
17 Key sectors Tourism Agriculture Energy
18 An overview of enterprises by size Chart Title Large enterprises - over 250 workers Medium -sized enterprises from 50 to 250 workers Small enterprises - from 10 to 50 workers Micro enterprises - up to 10 workers 2% 4% 16% Registered crafts: crafts 152 workshops 91 service trades 46 carriers 78% Source: APIF 2014
19 Significant business entities
20 Economic trends Foreign trade at the end of The total volume of trade :235 million BAM Realized export(power Utility of the RS takes into consideration only HPP export) : 130 million BAM Import at the city level : 105 million BAM Export-import ratio: 123,5% The cover of imports by exports: at the level of the RS 54,5%, at the level of B&H 53,6% The most important export products: elektricity, tools for engineering industry, confectionery products, essential oils, fish.
21 An overview of the tourism sector Key facts Hotels, caterin g facilities Average net salary in BAM Number of employees Source: APIF 2014.
22 The advantages of investing in the sector Vicinity of the Adriatic sea known as the receptive region Natural beauty of the karst(lakes, mountains, villages) The variety of natural tourist values Protection of the environment Healthy food and traditional Herzegovinian cuisine Various cultural-historical heritage (archaeological monuments of the past, ethnology) Competitive prices
23 Increase of tourist arrivals and overnight stays Home arrivals Home overnight stays Foreign arrivals Foreign overnight stays
24 55% increased the number of tourists Total arrivals Total overnight stays
25 Participation in development projects The Wine road of Herzegovina 22 wineries from Mostar, Čitluk, Stolac, Čapljina, Ljubuški and Trebinje are included. Creating new tourism products to revive Herzegovinian villages, encourage planting new vineyards and develop tourism in Herzegovina. Paths of wine and taste of Herzegovina promotion of rural tourism in Herzegovina and Dubrovnik-Neretva region Seenet - South East Europe Network for Energy and Transport (SEENET) is a network of environmental NGOs for sustainable energy and transport in South East Europe. Branding Wines of Herzegovina and Pljevlja cheese - IPA cross-border cooperation project between B&H and Montenegro, with the aim of standardizing the quality of traditional products and penetration into new markets.
26 Participation in development projects Promotion of tourism and traffic signals cooperation between Trebinje i Nikšid on the development of regional tourism through setting up tourism and traffic signals, setting of outdoor interactive totem and improvement of tourist promotion of two cities by mutual promotion campaign. Development of international tourism corridor through Herzegovina and environmental protection in B&H cooperation with the Japanese agency for international cooperation (JICA). Project is focused on the region of southern Herzegovina taking into consideration the great potentials i.e. attendance and the influx of tourists coming from the Adriatic coast, from Croatia and Montenegro. Goal is to increase incomes and employment in the field of tourism.
27 Key vertical and the potential for tourism development Transit, religious tourism and sightseeing Congress and business tourism Gastro tourism and development of DIY (do-it yourself products) handicrafts and souvenirs Stationary sports and recreational tourism (activation of attractive mountain location, intensive development of sports tourism)
28 Revitalization of excursion places and rural areas Development of hunting and fishing tourism, winter and ethno tourism Key vertical and the potential for tourism development Improvement of existing and construction of new facilities for adventure tourism (paragliding, mountain biking, speleological tourism, photo safari, ski-lift) Revitalization of military forts for tourism purposes
29
30 An overview of agricultural sector Key facts Companies Average net salary in BAM Number of the employed
31 Favourable climatic conditions Climate Mediterranean, as well as a variant of mild coastal-continental Very long and hot summers, mild, short and rainy winters Average annual 260 sunny days The average value of sunshine duration : 2006 hours The average annual temperature is 14,5 C Annual amount of precipitation : mm Number of tropical days: 48
32 Tradicional products Favourable climatic conditions ideal for growing fruits, vegetables especially vine. Apple, cherry and plum are the most common fruit crops, and potato is the most common vegetable. The city area is the only vineyard in the RS, and is known for its production of honey, tobacco, medicinal and aromatic plants, and high quality varieties of figs Tipically traditional products for the city of Trebinje are wine and honey Trebinje has unpolluted soil, satisfactory water quality, which is a prerequisite for the production of healthy organic food ( cheese, ham, the poljak bean, early vegetables)
33 Agricultural land 85,800 ha area of the city 20,106 ha area of agricultural land 49% state, 51% private ownership Agricultural land in ha Category Plough fields Arable land Unarable land Orchards Vineyards Pastures Meadow s Surface Source: USAID analysis
34 Monthly overview of precipitation Year. Jan Feb Mar April May Jun July Aug Sep Okt Nov Dec Total ,9 144,4 319,9 132,1 76,6 115,9 33,5 101,9 115,1 26,6 114,6 249,4 1561, ,2 188, ,5 11,1 2, ,6 127,5 264,1 174,5 1518, ,2 87,6 157,7 112,1 40,8 53,7 31,7 7,6 132,8 99,6 231,3 295, ,9 218,8 168,7 51,3 56,3 153,1 48,1 26,5 120,8 335,9 265,5 282,4 2055, ,4 387,7 189,9 91,8 237,4 200,3 4,1 41,6 107,2 253,6 519,1 357,2 2734, ,6 124,2 101,7 58,3 131,7 13,6 52,7 8,2 37,4 180,1 51,9 181,5 1053, ,6 312,5 0,8 288,9 126,1 15,2 63,2 0,8 191,2 244,7 138,3 354,1 1826, ,1 306,4 153,4 126,8 80,4 2,5 139,7 44,2 189,6 259,2 32,9 2017,2 Average monthly 200,5 232,1 179,3 112, ,4 29, ,2 182,2 230,
35 An overview of average monthly temperature Year Jan Feb Mar April May Jun July Aug Sep Okt Nov Dec ,3 5,7 8,1 13,6 17,6 20,9 24,9 22,4 20,5 17,1 9,6 7, ,4 8, ,3 19,4 23,6 27,1 25,9 17,9 14,7 8,5 5, ,1 7,6 9,9 13,2 18,8 23,2 25,5 26,7 19,3 16,1 11,5 7, ,5 4,6 8,3 14,7 19,1 20,4 23,9 25,1 20,5 13,8 10,6 8, ,1 6,3 8,4 13,8 16, ,8 24,7 18,8 13,7 12,6 6, ,7 7,5 9,8 14, ,1 24,1 26,7 24,2 14,9 10,5 7, ,9 3,2 11,7 12,6 17,6 24,4 27,6 27,3 21,5 16,6 13,1 5, ,2 6,4 9,1 14,8 17,6 21,5 25,9 26,1 19, ,4 8 Average monthly 5,8 6,2 9,5 14,1 18,1 22,3 25,5 25,6 20,3 15,4 11,1 7
36 Traditional Products Export Increase Agricultural and food production records export increase of traditional products typical for the climate of Herzegovina: Wines from wineries Vukoje, Monastery Tvrdoš and Anđelid already have important place on the list of highly recognizable wines, that prove numerous acknowledgements and medals won at the local and international fairs and exibitions in the last few years Richness of plants, pastures and quality water provide a healthy environment to bees, therefore honey produced here reaches a very high aromatic level Production and sale of medicinal herbs and essential oils is on the increase Total amount of produced edible fish is exported
37 Cooperatives Agricutural Cooperative Petrovo polje, its main activity is viticulture, as well as production of all traditional and typical products on the organic base. Beekeepers Cooperative Žalfija, covers the region of East Herzegovina. Its aim is development of beekeeping sector by encouraging the production, placement and sell of bee products from this area.
38 Associations The aim of Association of Winegrowers and Wineproducers Vinos from East Herzegovina is to create a worldwide recognizable brand, control the grape origin and thus geographically protect wines produced in these areas. The aim of Trebinje Businessmen Association is faster and more transparent resolving the problems arising in economic processes.
39 Herbal Potential Karst area is mostly covered with karst vegetation Potential of high forest excelllent in quality is around m 3 Medicinal herbs: 2000 plant species around 300 species interesting for pharmacology
40 Objectives and Trends Development of fruit-growing in the area of karst fields Viticulture (Popovo polje, Trebinjsko polje and Lastva) Tobacco cultivation in the area of Trebinjska šuma Production of early fruit Beekeeping and bee products production Cattle breeding, mini farms and dairy farm Collecting, purchasing and processing of medicinal herbs Production of edible fish Production of indigenous vegetable species from Herzegovina (the Poljak bean) organic production
41 Overview of Energy Sector Key facts Company Average net salary in BAM Number of employees
42 Hydro Potential Hydro Power Plant on the Trebišnjica River is a system consisting of: HPP Trebinje 1 is non-diversion hydro power plant which uses water of storage Bileda reservoir. Installed power is 180 MW. HPP Trebinje 2 is located directly below the dam Gorica. Gorica storage uses water of the Trebišnjica River from upstream HPP Trebinje 1. Installed power is 8 MW. HPP Dubrovnik was built as diversion facility, located along the very seashore. Installed power is 216 MW. HPP Dabar is power plant in the intial construction phase, its headquarters is in the building of HPP. It is planned to be built as the first hydro power plant of the project Upper Horizons.
43 Stone aggregrate Art stone Speleothem Sand Mineral Resources
44 STIMULATIVE BUSINESS ENVIRONMENT
45 Liberal Foreign Trade Regime With Most Countries CEFTA Agreement 30 million Prefernatial Trade Agreement concluded with the EU, 28 countries- 500 million Agreement on Free Trade concluded with Turkey - 70 million Preferential export regime with USA, Australia, New Zealand, Switzerland, Norway, Russia, Japan, Canada and Iran
46 International Agreements CEFTA Agreement offers opportunity of product placement on the international market. Central European Free Trade Agreement *. Stabilisation and Association Agreement between European Communities and their Member States and Interim Agreement on Trade and Trade-related Issues. Agreement on Free Trade concluded with Republic of Turkey Regional and Bilateral Agreements on Foreign Trade with the EU, USA, Japan, Switzerland, New Zealand, Norway Iran. *Signatories of the Agreement are: B&H, Albania, Croatia, ex-yu country Macedonia, Moldavia, Montenegro, Serbia, and United Nations Interim Administration Mission in Kosovo
47 Lower Taxes, Higher Profit Stimulative Tax Policy Description B&H Serbia Montenegro Income tax 10% 10% 12% - 40% Profit tax 10% 15% 20% VAT 17% 20% and 8% 25%, 13%, and 0% A payer who, in the year for which profit tax is identified, realizes over 30% of the total achieved profit by export, is exempted from profit tax for that year and other allowances.
48 Overview of Energy-Generating Products Prices for Business Users Located in Trebinje Name Measuring Unit Average price in EUR (with VAT) Water with sewage m 3 1,59 Garbage collection m 2 0,28 Central heating MWh 102,07 Electric power Telephone Internet kwh Subscription Subscription High tariff 0,067 Low tariff 0,047 0,123 SUBSCRIPTION FOR LANDLINES 8,91 11,34 LANDLINES 0,02 0,18 per minute, SUBSCRIPTION FOR MOBILE PHONE 5,98 53,84 Mobile 0,08 0,14 per minute 12,56-131,61 Mobile Internet 5,98 23,93
49 Overview of Premises/Land Price Business premises lease: Arranged by zones: I zone 16 BAM/m 2 II zone 12 BAM/m 2 III zone 9 BAM/m 2 Municipal building land development costs in 2016 Arranged by zones: I zone 126,41 BAM II zone 105,87 BAM III zone 87,07 BAM IV zone 65,24 BAM V zone47,94 BAM VI zone 31,54
50 Effective City Administration 1-3 days necessary for company registration 15 days necessary for urban planning permit issuing Up to 30 days necessary for construction permit issuing 5 days necessary for company closure Economic council consisting od representatives of public, private and civil sector contributes to better planning of the city development. City is in the process of certification of the local community with favourable business environement (BFC)
51 Local Administration Services Citizen Service Centre (provides fast and efficient service where a citizen can in one place, in shortest possible time, process the request addressed to city administrative service) Centre for Permits from Construction and Entrepreneurship Area (shortened procedure of obtaining various permits for construction, i.e. entrepreneuers shops registration) Inspection and municipal police services
52 Support to Private Sector Agency for Development of Small and Medium-Sized Enterprises (SME) Provides support to small and medium-sized enterprises development. Encourages establishment, business operations and development of micro SMEs. Offers help, advice and information, training and consulting services. Agency priorities are as follows: Development and implementation of development projects Offering legal and consulting services to the clients Promotion of entrepreneurship in the city area Organization of educational events for potential and existing entrepreneurs
53 Support to Private Sector Business Incubator Trebinje Helps to entrepreneurs in providing a quality business premises with necessary infrastructure at starting business under favourable terms Services of Business incubator can be used by all newly established companies and individuals who has an intention starting their own business. Acceptance criterium is quality of a business idea and an entrepreneur who has to realize that idea. Incubator has: 21 offices, total area 570 m2, Large hall for seminars with accompanying equipment for seminars, workshops and similar meetings, capacity around 25 seats.
54 Access to Capital Financial Sector (branch offices or subsidiaries) 10 banks 6 microcredit organizations 9 insurance companies
55 Financial Institutions Financial Institution Address Telephone number Website NLB Razvojna banka a.d. Svetosavska om/ Nova banka a.d. Herceg Stefana Kosače Sberbank a.d. Banja Luka Kralja Petra Prvog Oslobodioca bb Hypo Alpe-Adria Bank a.d. Preobraženska Komercijalna banka a.d. Dušanova UniCredit Bank a.d. Banja Luka Kralja Petra Prvog Oslobodioca Raiffeisen Bank Vuka Midunovida bb
56 Public Health and Social Welfare Health Centre- 8 medical clinics with 15 teams of family medicine and accompanying specialized services. General Hospital beds Pharmacy 550 workers employed in health sector Private practice is in development process: 6 medical clinics 9 dental clinics 10 pharmacies
57 Health Institutions Institution Address Telephone number Public Health Institution, General Hospital Trebinje Website Dr Levija 2 059/ Health Centre Trebinje Dr Levija 2 059/ Health Vocational School Institute for Health Protection of the RS, Regional Unit Trebinje Health Insurance Fund of the Republic of Srpska, Branch office Trebinje Vožda Karađorđa 1 059/ centarsrednjihskolatrebinje.org Stepe Stepanovida bb 059/ Preobraženska 1 059/
58 BUSINESS ZONE
59 Ownership Type Area Zone use Business Zone Volujac Number of companies in the area 4 Method of sale Auction Distance from the zone Electric power supply Voltage Water availability Gas availability 55% state, 45% private Brownfield 85 ha Industrial (prohibited construction of factories or plants-major polluters) Highway: 1km, Railway: 70km, Seaport: 30km, Airport: 45km. Yes Substation 35/10 kv Industrial water No
60
61 INCENTIVES FOR INVESTORS
62 Incentives for Investors Stimulating Employment Loans Opportunity of loan funds use in the amount of: from BAM (for family farms) up to BAM (for enterprenuers and companies) Interest rate 1,5% Repayment period from 7 to 10 years, Grace period duration from 24 to 36 months and opporunity a credit line regain access. Out of the funds realized pursuant to the Law on fees for use of natural resources for electric power generation, the loans are awarded for stimulation of employment, on the basis of the Decision on criteria for loans award and terms for loans use and the Programme of use of funds realized on this basis..
63 SUCCESSFUL STORIES
64 The privatization was carried out by the concern Swisslion-Takovo ltd Belgrade (Beograd) in After the purchase was performed company changed its name into Swisslion industrija alata Joint-stock Company Trebinje. Production of goods is in the value of 70 million BAM It is one of the leading companies in the Republic od Srpska. Swisslion has more than 370 trained workers and that number is constantly increasing due to the expansion of production range. It has the most modern product line in Europe ,00 BAM was invested in Trebinje production capacitites in The Company exports to the neighbouring countries, as well as to Australia, Austria, USA, Sweden, Denmark, Hungary, etc. Expansion of production lines having area of 3600m 2 is planned for storage of finished products.
65 Source:
66 Popovo polje, Joint-stock Company, established in 1977, is dealing with fruit production. Production is based on the use of modern technologies,and the team of agronomists is in charge of products quality following the world standards. Orchards are located in the fertile field of Popovo polje, located between Trebinje and Ljubinje. Apples, sweet cherries and grapes are produced on the plantation, and the products are placed on the local and foreign markets. Modern packing department includes complete process from washing to classification by size, weight and quality. The fact that apples produced in Popovo polje are already recognizable brand on the many European markets is shown through the data that most of this years growth, over 1000 tons, will be exported to the European Union. The current 75 ha planted by apples is planned to be expanded to 250 or 300 ha until 2020.
67 Tradition of viticulture in Herzegovina and ideal climatic conditions for grape growing enable achievement of top quality. Entire wine grape vintage of 400 tons annually is placed to the prestigious wineries in the surrounding and abroad. Total area cca 130 ha Assortment: - Vranac - Cabernet - Merlot - Chardonnay - Žilavka - Cardinal
68 Sweet cherry plantations Assortment: -Karina - Kordia - Skeena - Lapins Total area cca 20 ha
69 QUALITY OF LIFE
70 Trebinje is also a city of sport and it has: Sport-Orientied City Sports Hall Miloš Mrdid Small Sports Stadium Aleksandar Masleša Olympic Swimming Pool Banje Football Stadium Police Sports Courts Srđan Aleksid Other small sports facilities There are 42 registered sport clubs in Trebinje International Basketball Cup Dejan Bodiroga and Traditional Summer Sports Camp of the Republic of Srpska are held every year Good results are achieved in martial arts, football, basketball and swimming...
71 City of Culture Traditional Cultural Manifestations: Sveti Sava Ceremonies Trebinje Summer Ceremonies Drama Amateurs Festival Dučidˈs Poetry Evenings Mimosa Days Youth Eco-Camp Ušde, Jumps From the Stone Bridge Days on the Trebišnjica River. Cultural Institutions: Museum of Herzegovina Cultural Centre Public Library Youth Centre Institute for the Protection of the Cultural, Historical and Natural Heritage
72 Sights Orthodox Cathedral of St. Transfiguration Catholic Cathedral of the Birth of Mary Osman Pasha Mosque Monastery Hercegovačka Gračanica Monastery Tvrdoš, Monastery of St.Apostols Peter and Paul Church of St.Vasilije (Basil) of Tvrdoš and Ostrog Monastery Duži Monument of Petar II Petrovid Njegoš Museum of Herzegovina Arslanagid/Perovid Bridge
73 CONTACTS
74 Contacts Grad Trebinje Vuka Karadžida 2 Trebinje Telephone: Fax: grad@trebinje.rs.ba Web:
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