1. PROJECT TITLE HOTEL WITH SUPPORTING FACILITIES WITHIN KASTEL FORTRESS. 2. SECTOR Tourism and hospitality industry. 3. LOCATION Banja Luka

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1 1. PROJECT TITLE HOTEL WITH SUPPORTING FACILITIES WITHIN KASTEL FORTRESS 2. SECTOR Tourism and hospitality industry 3. LOCATION Banja Luka 4. BRIEF PROJECT DESCRIPTION Banja Luka s Kastel Fortress, as defined in the Development Strategy of the City, should become the backbone of tourism offer development and the centre of cultural events in the City on the Vrbas river, through reconstruction and rehabilitation of all areas within the fortress divided in 9 functional units. Unit 1 - Hotel with supporting facilities is a section of the fortress complex covering the area within and outside the fortress walls along the Teodora Klokotronisa Street in the west and north, the left bank of the rivulet Crkvena in the east from the bridge to the mouth, and bank of the river Vrbas in the south, to the Patra bridge. The location of the future hotel is in the immediate vicinity of the bridge and covers the area from the entrance in the Kastel at Kapi Kule to the upper terrace of the bank of the Vrbas.

2 5. PROJECT DETAILS WHAT TYPE OF PROJECT IS IT? Brownfield location, owned by the City of Banja Luka. The existing structure needs reconstruction with possible extension by supporting facilities. The new function of the structure is Hotel with supporting facilities. The design is presented below, as per detailed design provided by the City of Banja Luka after international competition for the selection of architectural and urban design for the reconstruction and remodelling of the Kastel Fortress. The design is fully in compliance with the elements laid down by the RS Institute for Protection of Cultural, Historical and Natural Heritage. Architectural Design The structure consists of two construction units which make a unique functional whole consolidated in terms of form and architecture. One section of the whole is the existing Artillery Barracks building, planned for reconstruction and intended mainly for hotel accommodation units, and the second section is newly designed and intended for the necessary supporting facilities required for the normal functioning of this technologically demanding programme. In addition to the basic accommodation function, this area is also intended for holding of various social events, ceremonies, weddings, promotions... The hotel features several main functional units: Accommodation area (total number of accommodation units is 20) Hospitality areas (restaurant, kitchen with supporting area) Public areas The zone of the existing shelter, between the building under reconstruction and Bastion 9, is planned for construction of a ceremony hall suitable for smaller conferences, presentations

3 etc. Together with the restaurant in the basement, this area makes a whole that can accommodate a variety of social events at the same time. Auxiliary areas (cloakroom, toilets, garage, reception desk) The planned area of Bastion 9, which is physically connected with the hotel at the level of underground floor, is intended for holding of various social events - small chamber stage, holding of promotions in the field of cultural life, coffee club for youth and visitors of Kastel etc. PROJECT STATUS The preliminary design was prepared following international competition for the reconstruction and remodelling of the Kastel Fortress, after which the City of Banja Luka funded also the preparation of detailed design. In May 2014, the Commission to Preserve National Monuments of BiH designated the historic site of the Kastel Fortress in Banja Luka as a national monument in Bosnia and Herzegovina. The detailed design was also approved by the RS Institute for Protection of Cultural, Historical and Natural Heritage. Until present, with the support of the European Union which recognised the importance of the project, more than BAM 7 million has been invested in the rehabilitation of Kastel in the form of grant funding as follows: in Unit 2 the section of Cultural Centre with supporting facilities was renovated and in Unit 9 the Historical Museum - Educational Centre with supporting facilities was renovated (shown in photo-attachments below). Unit 2- Cultural Centre with supporting facilities

4 Unit 9 - Historical Museum-Educational Centre with supporting facilities At the same time, the City of Banja Luka invested about BAM 2.1 million. Summary of available documentation: Urban planning approval for Kastel Fortress reconstruction and revitalisation (for all 9 units) Detailed design for Kastel Fortress reconstruction and revitalisation (for all 9 units) Environmental permit Approval of the RS Institute for Protection of Cultural, Historical and Natural Heritage. REASONS TO INVEST IN THE PROJECT The Kastel Fortress is the embryo of emergence of the City of Banja Luka. It occupies the central place in a mental map of the City for both the population of the City and all visitors. The lack of appropriate accommodation capacities for highly demanding tourism needs opens the possibility for hotel facilities within the walls of the Kastel Fortress to be on the list of the most wanted locations for tourist accommodation, smaller conferences, wedding ceremonies and a whole range of other social events. The Kastel Fortress is also the centre for holding cultural events under the motto All Banja Luka events in one place such as: Demo Fest music festival, Kastel Rock Fest, music stage event, Fresh Wave Festival, Dukat Fest international folk dance festival, Summer on the Vrbas and many other several-day cultural and tourism events, which implies that programme participants are mainly travellers who need to stay in Banja Luka and therefore require accommodation. The location planned for the hotel with supporting facilities is fully fitted with infrastructure and has an exclusive view of and access to a section of the littoral zone. Currently there is one hospitality establishment functioning within the fortress, the Kazamat restaurant, without any accommodation capacities.

5 Labour force availability is ensured since Banja Luka is the university, economic, financial, political and administrative centre of the Republic of Srpska and its secondary school capacities include the Secondary School of Hospitality, Commerce and Tourism. 6. PROJECT FINANCING GIVE ESTIMATED PROJECT VALUE IN EURO 5,300, euro Value of the hotel with supporting facilities (4,500, euro) + Bastion 9 area (800, euro), including construction and finishing works, landscaping, technological equipment, water installations, electrical installations, heating installations, lift installations, firefighting equipment) PLANNED SOURCES OF FINANCING Public-private partnership or concession INPUTS BY LOCAL PARTNER 150, euro (infrastructure, urban planning approval, technical project documentation, building permit, environmental permit) INPUTS BY INVESTOR 5,150, euro (Hotel with supporting facilities + Bastion 9; construction and finishing works, landscaping, technological equipment, water installations, electrical installations, heating installations, lift installations, firefighting equipment) 7. HAS PHYSICAL LOCATION FOR PROJECT IMPLEMENTATION BEEN IDENTIFIED The location of the Kastel Fortress occupies the central urban area of the City, covered by the Regulation Plan for the area between the following streets: Bulevar Cara Dušana, Omladinska, Radoja Domanovića, Branka Morače, Patre, Teodora Kolokotronisa and the left bank of the Vrbas (working title: South 7). The concerned land and structure are the ownership of the City of Banja Luka. Supporting infrastructure is available.

6 8. HAVE THE ACTIVITIES ON PROJECT IMPLEMENTATION ALREADY STARTED Technical project documentation has been prepared, and urban planning approval and environmental permit issued for the entire Kastel Fortress complex. 9. PROJECT APPLICANT AND CONTACT INFORMATION CITY OF BANJA LUKA Department of Local Development and PPP Contact: Verica Kunić Tel.: 051/

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