INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

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1 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

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3 CONTENTS REPUBLIKA SRPSKA (RS - an entity in Bosnia and Herzegovina)AT A GLANCE OPERATING COSTS in RS AVERAGE NET SALARIES DEMOGRAPHY AND SOCIAL STATISTICS UNEMPLOYMENT YOUR INVESTMENT IS SAFE IN BOSNIA AND HERZEGOVINA SECURITY OF INVESTMENTS IN BIH INTERNATIONAL AGREEMENTS, PREFERENTIAL EXPORTING REGIMES, IMPORT DUTIES AGREEMENTS ON AVOIDANCE OF DOUBLE TAXATION AGREEMENTS ON INVESTMENT PROMOTION AND PROTECTION FREE TRADE AGREEMENTS PREFERENTIAL EXPORTING REGIMES CUSTOMS EXEMPTIONS TAX EXEMPTIONS FOR ECONOMIC ENTITIES THAT PERFORM ACTIVITIES IN THE TERRITORY OF REPUBLIKA SRPSKA FREE TRADE ZONES ELECTRONIC PERMITS WHAT DOES THE AGRICULTURAL AND FOOD PROCESSING SECTOR IN REPUBLIKA SRPSKA OFFER TO INVESTORS? BOSNIA AND HERZEGOVINA PROCESSING CAPACITIES FRUIT IN REPUBLIKA SRPSKA VEGETABLES IN REPUBLIKA SRPSKA PRODUCTION REGIONS IN REPUBLIKA SRPSKA PRODUCTION AND EXPORTS OF APPLES Aggregation with other locations for apples in BiH PRODUCTION AND EXPORTS OF PLUMS Aggregation with other locations for plums in BiH PRODUCTION AND EXPORTS OF BERRY FRUIT Aggregation with other locations for berries in BiH PRODUCTION AND EXPORTS OF PEARS Aggregation with other locations for pears in BiH PRODUCTION AND EXPORTS OF CUCUMBERS Aggregation with other locations for cucumbers in BiH PRODUCTION AND EXPORTS OF POTATOES Aggregation with other locations for potatoes in BiH PRODUCTION AND EXPORTS OF CABBAGE AND KALE Aggregation with other locations for cabbage and kale in BiH PRODUCTION AND EXPORTS OF GREEN PEPPERS Aggregation with other locations for green peppers in BiH PRODUCTION AND EXPORTS OF CARROTS Aggregation with other locations for carrots in BiH TRANSPORT INFRASTRUCTURE / LOGISTIC CONNECTIONS COMPETITIVE COSTS OF TRADING LOGISTICS (GENERAL INFORMATION) CONTACT INFORMATION FOR INVESTORS CONTACT INFORMATION

4 REPUBLIKA SRPSKA (RS - an entity in Bosnia and Herzegovina) AT A GLANCE 4 Official name: Republika Srpska (RS) (one of two equal entities in Bosnia and Herzegovina BiH) BiH geographic position: Southeast Europe, bordering with Croatia (932 km), Serbia (312 km), and Montenegro (215 km) Area: 25,053 km2 (49% of territory of BiH) Population: 1,228,423 (Agency of Statistics of BiH - census of population in 2013) BiH Currency and exchange rate: Convertible Mark (BAM-official abbreviation; KM-in daily use). 1 EUR = KM 1.95 (fixed exchange rate) Climate: Moderately continental, mountain, mountain and valley, and Mediterranean climate Relief: Mostly mountainous country with Dinara mountains: On the North, river Sava forms a fertile valley, which is the largest expanse of lowland intersected by low mountains, The Southern part has karst relief, with access to the Adriatic Sea to the southwest. INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

5 Operating Costs in RS Name Unit of measurement Power for commercial users, higher (daily) tariff kwh Power for commercial users, lower tariff kwh Water supply with sanitation for commercial users Waste collection for commercial users District heating for commercial users Prices for mobile telephone conversations for commercial users (in domestic traffic) Prices for mobile telephone conversations for commercial users (in international traffic) Purchase of new business premises Lease of business premises m3 m2 MWh minute minute m2 m2 Average price in 2015 in EUR (including VAT) (winter) (summer) (winter) (summer) from 750 between 5 and 50 1, , Average Net Salaries 2,000 1,500 1,000 Slovenia Czech Republic Croatia Poland Slovakia Hungary Turkey Montenegro BiH Romania Serbia Macedonia Bulgaria Albanija Mining and quarrying Manufacturing Electricity, gas, steam and air... Water supply, sewerage, waste... Construction Wholesale and retail trade; repair of... Transportation and storage Accommodation and food service Information communication Financial and insurance activities Real estate activities Professional, scientific and technical... Administrative and support service... Public administration and defence;... Education Human health and social work activities Arts, entertainment and recretaion Other service activities Agriculture, forestry and fishing Average net salaries by activity in BIH (, December of 2016) 5

6 Demography and Social Statistics Unemployment According to labor force indicators for , the employment rate in BiH is around 32.2%, while the unemployment rate is 25.4%, and in RS the employment rate is around 35.5%, while the unemployment rate is 24.8%. 18% of the population in Bosnia and Herzegovina is employed in the agricultural sector, 31% in non-agricultural, and 51% in servicing activities. Labor force availability in Republika Srpska is high, and a review by degree of education and gender is shown in the following charts 2 : Registered unemployment by degree of education in RS Registered unemployment by gender in RS 21% 11% 1% University equivalent 2% 29% College equivalent Secondary School 52% Highly skilled, skilled Semi-skilled 48% Men 36% Unskilled Women Your Investment Is Safe in Bosnia and Herzegovina Foreign investors rights are guaranteed under the Constitution. Article 57 of the Constitution stipulates that foreign persons may acquire the right of ownership and rights based on investments, under the law. Property related and other rights of the foreign investor, acquired on the basis of invested capital, cannot be constrained or denied by law or another regulation. Foreign persons are guaranteed the right to perform economic or other activities and rights on the basis of doing business, under the conditions that cannot be changed at their expense, free repatriation of profits and invested capital from the Republic. In addition to that, those topics are also regulated under the Law on Foreign Investment of Republika Srpska ( Official Gazette of Republika Srpska, issues No. 25/02, 24/04, 52/11, 68/13), under which foreign investors are ensured national treatment, i.e. foreign investors have the same rights and obligations as residents). The law ensures to foreign investors full legal security and protection of rights acquired by investing, and the rights to free transfer of assets on the basis of investments. Gradual liberalization of investments in virtually all the sectors has been performed, excluding the sector of public information, where the foreign share cannot exceed 49% of value of the capital. Foreign investors may open an account in any commercial bank in domestic and/or convertible currency in BiH Foreign investors may freely employ foreign nationals, on the basis of legislated provisions of immigration and labor law in Republika Srpska Foreign investors are protected from the processes of nationalization, expropriation, requisition, or measures with similar effect; those measures may be performed only in public interest in compliance with laws in Republika Srpska According to BiH and Republika Srpska s Law, foreign investors may freely transfer abroad the profits resulting from their investment. 1 source: 2 source: page 21, December of INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

7 Security of Investments in BiH Low inflation rates deflation amounting to 0.2% was recorded in December of 2016, compared to the same period of last year, which implies that prices were at a lower level in December of 2016 than in the same month of the preceding year, by 0.2%. Stable currency pegged to EURO Value added tax at 17% and corporate income tax at 10% are the lowest in the region and in Europe Hungary VAT rates Corporate Income Tax Croatia Romania Poland Czech Republic Slovakia Bulgaria Serbia Macedonia BiH Turkey Croatia Czech Republic Poland Romania Macedonia Bulgaria Serbia BiH 0% 10% 20% 30% 0% 5% 10% 15% 20% 25% INTERNATIONAL AGREEMENTS, PREFERENTIAL EXPORTING REGIMES, IMPORT DUTIES Agreements on Avoidance of Double Taxation Bosnia and Herzegovina is a signatory of agreements on avoidance of double taxation, and agreements with the following countries are in implementation: Albania, Algiers, Austria, Azerbaijan, Belgium, Montenegro, Czech Republic, Denmark, Egypt, Finland, France, Greece, Croatia, the Netherlands, Iran, Ireland, Italy, Jordan, Kuwait, Qatar, China, Cyprus, Hungary, Malesia, Macedonia, Moldavia, Norway, Germany, Pakistan, Poland, Romania, Slovakia, Slovenia, Serbia, Spain, Sweden, Sri Lanka, Turkey, United Arab Emirates, Great Britain and Northern Ireland. Agreements on Investment Promotion and Protection BiH has concluded bilateral agreements on improvement and protection of investments with the following countries: Albania, Austria, Belgium and Luxembourg, Belorussia, Czech Republic, Denmark, Egypt, Finland, Greece, the Netherlands, Croatia, India, Iran, Italy, Jordan, Canada, Qatar, China, Kuwait, Lithuania, Hungary, Macedonia, Malesia, Moldavia, Germany, Countries of the OPEC, Pakistan, Portugal, Romania, USA, San Marino, Slovakia, Slovenia, Serbia, Spain, Sweden, Switzerland, Turkey, Ukraine, Great Britain. 7

8 Free Trade Agreements BiH is a signatory of the following free trade agreements: CEFTA Free Trade Agreement with the following countries: Albania, Montenegro, Macedonia, Moldavia, Serbia, and UNMIK/Kosovo 3 Free Trade Agreement between BiH and EFTA (Switzerland, Norway, Island, and Lichtenstein) Free Trade Agreement with Turkey, and preferential regime with Iran Stabilization and Accession Agreement, which, in addition to the legal commitment to harmonization of the national legislation with the EU acquis communautaire, also envisages the promotion of economic relations between BiH and the EU, along with the gradual development of a free trade zone between the two parties. Stabilization and Accession Agreement between BiH and the EU, which facilitates a higher degree of cooperation and building of firm relations on all the levels between the EU and BiH, and presents the free trade rules between BiH and EU under which BiH companies would have access to internal markets of the EU Preferential Exporting Regimes Unilateral preferential regimes with the USA, New Zealand, Switzerland, Norway, Japan, Russia, Kazakhstan, Belorussia, Canada, and Australia. Preferential exporting regime with Iran. Customs Exemptions Foreign investors may be exempt from import duties levied on equipment placed in free sales, which represents the invested share of the foreign person. TAX EXEMPTIONS FOR ECONOMIC ENTITIES THAT PERFORM ACTIVITIES IN THE TERRITORY OF REPUBLIKA SRPSKA The Law on Profit Tax ( Official Gazette of Republika Srpska, issues No. 91/06 and 57/12), which has been in effect since January 1, 2007, prescribes certain preferential treatments and exemptions for economic entities that perform activities in the territory of RS, of which the most significant are the following: For machines and equipment that is being depreciated, a deduction is allowed for accelerated depreciation that is calculated at 40% for the first year, 30% for the second year, 30% for the third year Article 11 of the Law; Capital gains or losses incurred in the course of the tax year may be offset, and the net profit or loss is added to or deducted from the tax base, if they are not included in revenues, i.e. expenses - Article 12 of the Law; The tax loss, representing the negative balance between revenues and expenses in the process of determination of the tax base, is transferred and compensated by reducing the tax base in the coming five years, and if the taxpayer has losses in several tax years, the tax loss from the previous tax year is compensated before the tax loss from the more recent tax year - Article 13 of the Law; The tax base of the profit tax is reduced by the value of investment performed in equipment, plants, and real estate of the taxpayer that is performing its own registered productive activity. The reduction is performed in the tax period during which the equipment, plants, and real estate were put in use. The reduction of the tax base cannot be executed for equipment, plants, and real estate acquired as a gift. In case the acquisition of the equipment, plants, and real estate had been performed by financial leasing, the tax base shall be reduced by the value of the repaid principal of the leasing in that tax period. If the taxpayer dispossesses or gives the equipment, plants, and real estate to others to use, within the period of three years from the date of putting it in use, it shall lose the right to tax exemption and shall pay the tax as if the reduction had not been used in the course of the calculation of the base - Article 14a of the Law; The tax base for the profit tax shall also be reduced by the amount of the income tax and contributions paid for newly employed workers, for the minimum of 30 new workers in one business year, for the period of three years from the date of employment of those workers - Article 14b of the Law, 3 Under the OUN Security Council Resolution No INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

9 Withholding tax (Article 28, Paragraph 2 of the Law) shall not be levied on the following revenues: profit repatriated into the country of origin of the foreign legal person, which concerns its permanent location of doing business, under the condition that the foreign legal person owns 10% or more shares in the foreign legal person in Republika Srpska, wherein the profit that is repatriated represents the remaining profit of the legal person after taxes are paid, revenues in the form of interest on deposits, revenues in the form of dividends, interest on credits and loans used by residents for investments in equipment, plants, and real estate for the performance of productive activities; In addition, Article 30 of the Law prescribes that harmonization is to be performed with international agreements concerning taxes on revenues and capital. If the owner of the revenues on which the withholding tax applies is a resident of a foreign state that had concluded an inter-state agreement with BiH concerning taxes on revenues, then the rate that applies on any such source of revenues cannot exceed the tax rate stipulated in the inter-state agreement. Exemptions from paying taxes or lower tax rates apply only if the legal person, the user of revenues, provides to the payer of revenues evidence on acquiring the right to exemption or application of a lower tax rate based on the inter-state agreement, The rate of profit tax amounts to 10% and is calculated and paid on the tax base for the specific tax year, which comprises the executed profits disclosed in compliance with this Law. 9

10 FREE TRADE ZONES The free trade zones in BiH are a part of the customs territory of Bosnia and Herzegovina and have the status of a legal person. The users do not pay VAT or import duties on equipment that is to be used for production. Investments in free trade zones, the transfer of profits and investment transfer are free of charge. Foreign investors may act as co-founders of the free zones, while the export of products produced in a free zone is the precondition for their survival, and therefore for using the benefits of the free zone. Introduction of new and development of existing spaces in free zones may become one of the key ways to attract foreign direct investments in our country. It is evident that the model of free zones that would be the most efficient in contributing to economic growth in our country is the productive type of free zones in which the zone acts as the producer and as the exporter. ELECTRONIC PERMITS The portal contains general information, primarily for foreign investors, and in connection with regulations, procedures, costs of doing business, institutions that are at the disposal of the investors. The portal also facilitates interested foreign investors in communicating and acquiring necessary information by or direct contacts with the Ministry of Economic Relations and Regional Cooperation. In addition to that, the portal contains all the confirmations, decisions, permits that are being issued by Republic administrative authorities. Interested business persons may use the ask a question functionality to acquire information concerning their business. The portal represents the central database of data on registered economic entities in Republika Srpska. Activities are ongoing on establishing the functionality for electronic registration of economic entities in Republika Srpska. WHAT DOES THE AGRICULTURAL AND FOOD PROCESSING SECTOR IN REPUBLIKA SRPSKA OFFER TO INVESTORS? The abundance of fertile uncultivated and unpolluted land with favorable natural and climatic conditions (around 819,000 hectares of unused agricultural arable land), excellent soil quality, longer growth / production seasons, and an enormous wealth of crystal clear water streams, opens possibilities for investors for high quality agricultural production with low operating costs. Republika Srpska, together with the Federation and the District of Brčko (BiH) is ranked highly on the global list of countries producers of raspberries (11th place), plums (12th place), and strawberries (37th place), and also produces significant quantities of high quality vegetable: potatoes, green peppers, cabbage, and cucumbers. Qualified labor force with a competitive price and positive experiences of already present foreign investors in doing business in the region. Attractive locations for investing and simple access to the markets of the EU, the Near East, and Russia, with demand for fruit and vegetables that has been in constant increase in the last 4 years. High quality services for investors in the process of investing, as well as in after care. Short distance between the largest production regions facilitated access to quantities needed for processing or continued distribution. 10 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

11 Options for investment in various spheres of the production chain in the agricultural sector Agricultural production of fresh fruit and vegetables with improved irrigation and protection from hale and frost. That would cover organic production and ecologically harmless agricultural production. Aggregation, prepration, packaging, cold storages, and freezing, as well as logistics for fresh fruit and vegetables (facilities for preparation and packaging of fresh fruit and vegetables, centers for wholesale trading with large cold storage facilities and logistics, transport and distribution centers). Processing centers (dried fruit, fruit jams and jellies, fruit concentrates, pickles (cornishons), finely cut cabbage, processed or preserved potatoes). Bosnia and Herzegovina Processing Capacities Production of improved, certified seeds for the main types of vegetables. Velika Kladuša Bužim Cazin Bihać Bosanska Krupa Novi Grad Bosanski Petrovac Drvar Bosanska Kostajnica Oštra Luka Sanski Most Petrovac Bosansko Grahovo Istočni Drvar Kozarska Dubica Prijedor Ključ Ribnik Glamoč Livno Banja Luka Mrkonjić Grad Gradiška Šipovo Jajce Jezero Kupres RS Kupres Laktaši Tomislavgrad Čelinac Srbac Kotor Varoš Kneževo Dobretići Donji Vakuf Bugojno Prnjavor Travnik Novi Travnik Prozor-Rama Teslić Gornji Vakuf Jablanica Odžak Bosanski Brod Vukosavlje Orašje Šamac Donji Žebar Derventa Modriča Pelagičevo Šamac Doboj Istok Gradačac Distrikt Brčko Doboj Bijeljina Gračanica Usora Doboj Jug Srebrenik Čelić Ugljevik Tešanj Petrovo Lopare Teočak Maglaj Lukavac Tuzla Sapna Kalesija Zvornik Žepće Zavodovići Banovići Živinice Osmaci Zenica Vitez Busovača Fojnica Konjic Kiseljak Kreševo Kakanj Visoko Hadžići Breza Vareš Ilijaš Vogošća Ilidža Istočni Stari Grad Trnovo Trnovo Kladanj Olovo Pale Sokolac Šekovići Vlasenica Milići Pale-Prača Han Pijesak Goražde Rogatica Novo Goražde Bratunac Srebrenica Višegrad Rudo Čajniće Processing centers Posušje Grude Široki brijeg Mostar Istočni Mostar Kalinovik Foča Cold storages - warehouses Čitluk Ljubuški Nevesinje Gacko Čapljina Stolac Berkovići Neum Ljubinje Bileća Ravno Trebinje 11

12 FRUIT IN REPUBLIKA SRPSKA A competitiveness study has shown that the fruit / vegetables sector is one of the three most competitive sectors in BiH, while exports are constantly increasing, both on the global and on the EU market. The analysis of data on the exports of fruits and vegetables in the last 8 years has shown constant growth, wherein raspberries, strawberries, plums, and apples are especially prominent, while amongst vegetables that is the case with cucumbers, green peppers, and cabbage. Excellent entrepreneurial opportunity can also be found in berry fruit, whose share of exports in the total production is 42%, while the average annual growth rate has been 26% for the period under review, of 8 years ( ). Speaking of the fruit production, raspberries are recognized as the most promising fruit, with an excellent margin and price on the global market. BiH is ranked highly as a producer on the global scale based on production of raspberries, at the 11th place. 12 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

13 The largest exports of BiH fruits and vegetables in 2015 were recorded in the Russian Federation, with the share of 21%, Germany, with 17%, Serbia, with 18%, and Croatia, with the share of 15%. 20,000 Quantity of fruit exported in 2015 (in tons) 15,000 10,000 +1% +2% 5,000 0 Russian Federation Serbia Germany Other Counties 86% 40% 73% 72% 38% 51% 38% 57% 52% 291 2,021 12,500 Exports of Apples, Raspberries, Strawberries, and Plums in 2015 (in tons) 10,000 8,000 6,000 4,000 2,000 Apples Raspberries and Strawberries Plum 0 Austria Belgium France Croatia Hungary Gerrmany Russian Fed. Slovenia Serbia Switzerland Sweden Turkey 13

14 VEGETABLES IN REPUBLIKA SRPSKA Speaking of vegetables, cucumbers (cornichons) are recognized as the BiH delicacy that is increasing its share in the global and in the EU market, from one year to the next. Record exports of cucumbers were executed in 2015, and close to 50% of that were exports to Germany. International demand for cucumbers is large (for the German market, the average demand is around 497 thousand tons annually, while the average annual production volume in BiH is around 26 thousand tons). 18,000 17,000 16,000 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,960 1,063 2, ,076 6, ,873 3,946 4, ,342 2, ,259 2,066 1, , ,603 2,785 1, ,497 8, ,002 5, ,672 3,197 2,762 3,152 3,250 1,615 1,460 1,362 1,430 1,071 1,263 1,043 6,000 Quantity of vegetables exported in (in tons) 4,000 2,000 0 Croatia Germany Serbia Other Counties Main partners for BiH in the field of vegetables are Croatia and Germany, and cucumbers have especially high penetration rate in those markets. 14 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

15 51% 58% 53% 80% 35% 54% 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Exports of Apples, Raspberries, Strawberries, and Plums in (in tons) Cucumber Patato Cabbage Austria Montenegro Croatia Norway Gerrmany Slovenia Serbia 15

16 PRODUCTION REGIONS IN REPUBLIKA SRPSKA Production and Exports of Apples Ratio of production and exports of apples Top 10 municipalities in RS with the highest average production of apples for : Production ratio of top locations with the remaining parts of RS 20% 80% Top locations Remaining parts of RS 16 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

17 Production of apples (in tons) in the top 10 municipalities in RS Production share of apples in the top 10 municipalites in RS Novi Grad Kotor Varoš Prijedor Laktaši Rudo Prnjavor Foča Kozarska Dubica Banja Luka Gradiška Remaining parts of RS ,044 1,314 1,522 2,000 4,936 7,207 13,285 8, ,000 10,000 15,000 2% 2% 2% 4% 3%2% 5% 12% 17% 20% 31% Remaining parts of RS Gradiška Banja Luka Kozarska Dubica Foča Prnjavor Rudo Laktaši Prijedor Kotor Varoš Novi Grad *Average annual production of apples in tons for *Share of average production of apples for Production regions for apples: R1 R2 R3 17

18 Aggregation with other locations for apples in BiH The aggregation of other locations with the mapped top locations for apples (the zone that covers a single region is marked on the map with concentric circles) has included municipalities that are located in immediate vicinity, within a circle 75 kilometers in diameter. The locations shown in the table have been added to the existing regions: REGION 1 REGION 2 REGION 3 Kozarska Dubica, Novi Grad, Prijedor Banja Luka, Gradiška, Kotor Varoš, Laktaši, Prnjavor Foča, Rudo Aggregation Kostajnica Srbac, Čelinac Čajniče, Ustiprača-Novo Goražde Production share of regions with aggregation of apples in BiH Production share of regions with aggregation of apples in RS 10% REGION 1 REGION 2 18% 16% 51% 34% REGION 3 Remaining parts of RS Remaining parts of BiH 8% 58% 5% *The share of average production of apples by regions with added locations (aggregation of locations within a circle 75 kilometers in diameter) for Region production (in tons) with aggregation and remaining parts of BiH Region production (in tons) with aggregation and remaining parts of RS 36,298 3,568 24,337 6,970 Remaining parts of BiH Remaining parts of RS REGION 3 REGION 2 REGION 1 7,395 3,568 24,337 6,970 40,000 30,000 20,000 10, ,000 20,000 30,000 *Average annual production of apples in tons per region with added locations and production in the remaining parts of BiH for INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

19 APPLES REGION 1 REGION 2 REGION 3 Locations Kozarska Dubica, Novi Grad, Prijedor, Kostajnica Banja Luka, Gradiška, Kotor Varoš, Laktaši, Prnjavor, Srbac, Čelinac Foča, Rudo, Čajniče, Ustiprača-Novo Goražde Favorable areas for investing -Plant for processing of fruit, production of juices and other products made from fruit -Cold storage for fruit and vegetables -Processing capacities for fruit and vegetables -Distribution center for fruit and vegetables Advantages -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH -Moderate and continental climatic effects, high quality soil, and wealth of water facilitate the cultivation of early spring vegetables which are sold in the market with a high margin and for which the demand in the EU has been growing continuously in the last couple of years -Dynamic business environment and untapped potentials in business zones equipped for receiving new investors in the sector of processing of fruit and vegetables -Availability of facilities and agricultural land for greenfield and brownfield investments and investments in agricultural production Incentives -Municipality of Kozarska Dubica has adopted a Decision on the manner of entry of investors into the business zone with discounts that may represent up to 99% of the purchase and sale price of land in the zone. - Municipality of Novi Grad: Incentive for the sector of small and medium enterprises in the area of employment amounts to BAM 65,000. Incentive for agricultural production in the territory of the municipality amounts to BAM 140,000. -Municipality of Prijedor: improvement of fruit production BAM 40,000, production of vegetables and flowers in closed spaces - BAM 50,000, regress for renewal of agricultural machinery - BAM 15,000, support to introduction of irrigation systems with agricultural producers - BAM 20,000, support to the construction of stable facilities and equipment BAM 10,000, support to construction of warehousing facilities and procurement of equipment for fruit production BAM 20,000 - Agricultural logistics center - Capacities for processing and drying of fruit - Expansion of capacities of the cold storage of 50 tones -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH. -At the disposal to investors there is a logistics center with complete logistics support (warehousing and cooling) with options for using administrative premises (Agricultural zone - Agro zona Nova Topola). -This region holds the number one position in the production of plums, apples, and pears, and the second place in RS based on the production of strawberries and potatoes, for which Bosnia and Herzegovina is ranked highly on the global list of countries based on production of plums (12th globally), with the average market price in BiH which being the lowest of the 10 countries with the highest volume of production of those crops, - Municipality of Kotor Varoš: incentives for agriculture exist in the total amount of BAM 80,000 - Production of fruit and vegetables - Buy-out and processing capacities for fruit and vegetables - Cold storages -Cold storages with capacity of 1,000 kilograms and drying plants are located in two areas of the region, in the part that borders with Serbia, in the territory of the Municipality of Rudo (25 km) and with Montenegro in the territory of the Municipality of Foča (18 km). -The location on the very border with Serbia and Montenegro results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices. -The region is located at the crossing of primary roads leading from Sarajevo towards Serbia and Montenegro, and from Serbia and Montenegro towards the Adriatic Sea. Abundance of fertile uncultivated and unpolluted land with favorable natural and climatic conditions, excellent soil quality, longer seasons of growth / production, and enormous wealth of crystal clear water streams, opens possibilities for investors for high quality agricultural production with low operating costs - Municipality of Rudo Incentive financing for 2016 is envisaged in the amount of BAM 100,000, on the basis of the Decision on incentives for development of agricultural production 19

20 Net salary BAM (2016) BAM (2016) BAM (2016) Labor force at the disposal Locations at the disposal (greenfield/ brownfield) 11,270 persons 30,185 persons 2,889 persons -Municipality of Kozarska Dubica is proposing greenfield investments in the construction of plants for the production and processing of agricultural products, cold storages, and all types of servicing facilities and warehouses with various purposes. Joint investments with the objective of modernization and expansion of production capacities of existing enterprises. It is making available 79 hectares of land in the business zone of Lipova Greda, in the ownership of the municipality. Currently, the Southern part of the zone is regulated, in the area of 21 hectares, with the total of 26 parcels envisaged for sale to investors. The size of a parcel may be adjusted to the needs of the investor. Price of land: BAM 9/m² with discount options -Municipality of Novi Grad proposes two locations for brownfield investments, on which all the necessary infrastructure is already present: Location: Svodna Blatna Area: m m 2 Ownership: Municipality Municipality Business opportunity Lease Lease Price: BAM 1.00/m 2 + PDV BAM 1.00/m 2 + PDV -Municipality of Prijedor is proposing greenfield and brownfield investments, and the construction of a distribution center for fruit and vegetables (buyout, warehousing, and sale) a) In case of the distribution center for fruit and vegetables of the region of Prijedor, the investment would cover the adaptation of the existing facility with area of 450 m2 into a facility intended for the warehousing, processing, packaging, and distribution of fruit. Along with the adaptation of the existing facility, the project design envisages the construction of a new facility, 250 m2 in area, for business premises and plants for the finishing of pilot products. Within the framework of the adaptation, the facility will be regulated in two parts: the first part would concern chambers for warehousing fruits, with capacity of 4X100 t; the second part would be the operating space in which equipment would be installed for packaging and basic processing of fruit. -Municipality of Gradiška is placing at the disposal capacities of the Agricultural and Industrial Zone of Nova Topola, which has available 125 hectares of land, whose owner is the Municipality of Gradiška, and which possesses the basic infrastructure, such as power supply, water supply, sanitation, access roads. In the area of the Agricultural and Industrial Zone of Nova Topola all activities in the value chain may be realized (buyout, processing, value added production, cold storages, warehousing, packaging, and distribution of fruit and vegetables). The land in the zone is exclusively intended for purchase, at the price from BAM 1 to 80 /m² of land. Agricultural and Industrial Zone of Nova Topola has a Regulation Plan. Investing into the zone requires a business plan. Acquisition of the urban planning, construction, and utilization permit, power supply consent, ecological license, and fire protection consent for a facility of 1,000 m² would require BAM 40,000. The period of time necessary for the acquisition of the permits is between 2 and 3 months (much depends on the investor). The assessed cost of constructing a facility in the zone with area size of 1,000 m² is around BAM 100, Municipality of Kotor Varoš is proposing for brownfield and joint investments the Agricultural Center of Obodnik, with area size of 1 hectare, in the ownership of the municipality, where it would be possible to lease and equip existing premises, and where there is a high level of participation by the Municipal Administration of Kotor Varoš. There is a facility of 1,000 m2 of useful area with a number of large and fully constructed rooms with comprehensive infrastructure. -Municipality of Laktaši is suggesting for greenfield investments the Business Zone of Aleksandrovac, with 28.9 hectares of area of land in the ownership of the Municipality of Laktaši. There are several parcels available for construction with area sizes from 5,000-12,000 m2, at the price of BAM 3/m2. A paved road leads through the middle of the Industrial Zone of Aleksandrovac with street lighting (connecting the zone with the M-16 primary road), power supply, water supply, and telecommunication networks which are installed, and organized waste collection. There is a regulation plan adopted, along with the Feasibility Study for the Agricultural Business Park of Aleksandrovac, which plans an expansion of the zone to additional 80 hectares (on the other side of the primary road leading from Banja Luka to Gradiška, and on the transport line connecting that road with the Banja Luka Gradiška highway). -Municipality of Prnjavor is making available for greenfield investments land in the area of 6,340 m², with assessed value of land amounting to EUR 97,248 EUR. There are power supply, sanitation, water supply, telecommunications, and an access road all available on the land. -Municipality of Srbac is proposing, for the purposes of expanding warehousing capacities for the buyout and warehousing of strawberries and berries, wild collection and mushrooms (expansion of a cold storage) a location at the address of 18 Ilićani, with area of 2 hectares, cadastral particle No. 209/2, in the ownership of S.P. Šipurak Dragiša Knežević. Horizontal dimensions of the existing facility (cold storage) are 14.6 x 11 m. -Municipality of Rudo is proposing for greenfield investments, joint investments, reinvesting, production and buyout of fruit and vegetables, land on the location of Rasadnik - Gornji Uvac, in the ownership of the Municipality of Rudo, with area size of 10 hectares. The land can be taken under lease free of charge. Speaking of the infrastructure, it is necessary to ensure an irrigation system (BAM 50,000), install plastic greenhouses for production (BAM 50,000), and build in anti-hale nets (5 hectares x BAM 30,000). The distance from the administrative center of the Municipality to the state border with the Republic of Serbia is 25 kilometers. The Municipality is connected by road transport with the Republic of Serbia and the Republic of Montenegro. -Municipality of Novo Goražde is making available for a brownfield investment a facility in the distribution center of Gradina, in the ownership of the Municipality, with area size of 6,200 m2, and with the corresponding land with the area size of 12,000 m2. The facility was built intentionally for the requirements of wholesale supply of the region. The facility could be ceded for economic activity on the basis of public private partnership or may be bought under financially favorable terms, pending the employment of the inhabitants of the municipality who are registered in the records of the Employment Bureau. Next to the facility there is a cold storage which is in the ownership of the HIP-EKS enterprise from Novo Goražde, with capacity of 2,000 tons of warehousing space and the tunnel for freezing of fruit and vegetables, which provides an opportunity for organization of production and processing of fruit and vegetables 20 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

21 Production and Exports of Plums Top 10 municipalities in RS with the highest average production of plums for : Production ratio from top locations with the remaining parts of RS 40% 60% Top locations Remaining parts of RS 21

22 Production of plums (in tons) in the top 10 municipalities in RS Production share of plums in the top 10 municipalites in RS Zvornik Brod Teslić Foča Lopare Gradiška Kotor Varoš Prnjavor Ugljevik Banja Luka Remaining parts of RS 3,055 3,280 4,030 4,200 4,203 5,581 5,978 6,762 7,155 7,746 35, ,000 20,000 30,000 40,000 5% 5% 6% 7% 5% 4% 3% Remaining parts of RS Banja Luka Ugljevik Prnjavor 40% Kotor Varoš Gradiška Lopare Foča Teslić 8% 8% 9% Brod Zvornik *Average annual production of plums in tons for *Share of average production of plums for Aggregation with other locations for plums in BiH The aggregation of other locations with the mapped top locations for plums (the zone that covers a single region is marked on the map with concentric circles) has included municipalities that are located in immediate vicinity, within a circle 75 kilometers in diameter. The locations shown in the table have been added to the existing regions: REGION 1 REGION 2 REGION 3 REGION 4 Banja Luka, Gradiška Brod, Kotor Varoš, Prnjavor, Teslić Lopare, Ugljevik, Zvornik Foča Aggregation Čelinac, Kozarska Dubica, Laktaši, Prijedor, Srbac Derventa, Doboj, Tešanj (FBIH), Usora (FBIH) Bijeljina, Kalesija (FBIH), Sapna (FBIH) Čajniče, Kalinovik, Ustiprača-Novo Goražde, Goražde (FBIH), Ustikolina - Foča (FBIH) Region production (in tons) with aggregation and remaining parts of BiH Region production (in tons) with aggregation and remaining parts of RS 73,566 Remaining parts of BiH Remaining parts of RS 20,236 6,009 REGION 4 6,009 18,031 REGION 3 18,031 25,118 REGION 2 25,118 19,978 REGION 1 19,978 80,000 60,000 40,000 20, ,000 10,000 15,000 20,000 25,000 30,000 Average annual production of plums in tons per region with added locations and production in the remaining parts of BiH for INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

23 Production regions for plums: R1 R2 R3 R4 Production share of regions with aggregation of plums in BiH Production share of regions with aggregation of plums in RS 14% REGION 1 REGION 2 23% 22% 51% 4% 13% 18% REGION 3 REGION 4 Remaining parts of RS Remaining parts of BiH 7% 20% 28% * The share of average plums production by regions with added locations (aggregation of locations within a circle 75 kilometers in diameter) for

24 PLUMS REGION 1 REGION 2 REGION 3 REGION 4 Locations Banja Luka, Gradiška, Čelinac, Kozarska Dubica, Laktaši, Prijedor, Srbac Brod, Kotor Varoš, Prnjavor, Teslić, Derventa, Doboj, Tešanj (FBIH), Usora (FBIH) Lopare, Ugljevik, Zvornik, Bijeljina, Kalesija (FBIH), Sapna (FBIH) Foča, Čajniče, Kalinovik, Ustiprača-Novo Goražde, Goražde (FBIH), Ustikolina - Foča (FBIH) Favorable areas for investing -Agricultural logistics center -Capacities for processing and drying of fruit -Plant for processing of fruit, production of juices and other products made from fruit -Cold storage for fruit and vegetables -Buyout and processing capacities for fruit and vegetables -Distribution center for fruit and vegetables in the region of Prijedor Advantages -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH. -International Airport in Banja Luka is located in this region, the railroad passes through the region (Prijedor), while the vicinity of river Sava renders the location more interesting because of the possibility of water transport connections with Europe. -The region holds the number one spot in the production of plums, apples, and pears, and the 2nd place in RS based on the production of strawberries and potatoes, for which Bosnia and Herzegovina is highly ranked on the global list of countries based on the production of plums (12th place globally), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of these crops -At the disposal of the investors, there is the logistics center with comprehensive logistics support (warehousing and cooling) with the option of using administrative premises (Agricultural Zone in Nova Topola) -Equipping an existing agricultural industrial center -Buyout of agricultural products Expansion of capacities of the cold storage of 50 tones -Expansion of capacities of a drying plant for 400 kg of plums /24 hours -Drying plant and processing capacities for plums - The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH, which, along with the production capacities, represents an ideal location for the construction of a distribution center, cold storages, and processing capacities with competitive costs of transport of products in a single day to the markets of any European destination, as well as deliveries into the markets of Russia, Turkey, and the Near East -Border crossing of category I is located in the territory of the region (Brod), while rail transport passes through the region. -In the immediate vicinity, along river Sava in Šamac, the commodity and transport center of Luka has been constructed, a port with nodes of land and river transport modes, specifically road transport river transport, and vice versa, which renders the location more interesting because of the possibility of water transport connection with Europe -Drying plant and mini drying plant -Processing capacities for fruit and vegetables -Cold storage and cooling capacities for fruit and vegetables -The region holds the top spot in the production of strawberries, cucumbers, cabbages, green peppers, potatoes, and carrots, compared to total production in RS, and the 2nd spot in the production of plums, for which BiH is highly ranked in the global list of countries producers of plums (12th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of that fruit. -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices. -The region is situated in an attractive geostrategic location on the triple border of Serbia, Croatia, and Republika Srpska, i.e. BiH, and on the crossroads of roads leading to large urban and industrial centers Belgrade, Novi Sad, Inđija, Banja Luka, Šabac, Tuzla, Sarajevo... At around thirty kilometers there is a connection to the Pan European corridor 10, i.e. the E70 highway from Belgrade to Zagreb, which represents the shortest connection between Semberija and those two cities, and, through them, with Western / Central Europe and the South / East of the Balkan peninsula. -Production of fruit and vegetables -Buy-out and processing capacities for fruit and vegetables -Cold storages with capacity of 1000 kilograms and drying plants are located in two areas of the region, in the part that borders with Serbia, in the territory of the Municipality of Rudo (25 km) and with Montenegro in the territory of the Municipality of Foča (18 km). -The location on the very border with Serbia and Montenegro results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices. -Abundance of fertile uncultivated and unpolluted land with favorable natural and climatic conditions, excellent soil quality, longer seasons of growth / production, and enormous wealth of crystal clear water streams, opens possibilities for investors for high quality agricultural production with low operating costs 24 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

25 Incentives -Municipality of Prijedor: improvement of fruit production BAM 40,000, production of vegetables and flowers in closed spaces - BAM 50,000, regress for renewal of agricultural machinery - BAM 15,000, support to introduction of irrigation systems with agricultural producers - BAM 20,000, support to the construction of stable facilities and equipment BAM 10,000, support to construction of warehousing facilities and procurement of equipment for fruit production BAM 20,000 -Municipality of Kozarska Dubica has adopted a Decision on the manner of entry of investors into the business zone with discounts that may represent up to 99% of the purchase and sale price of land in the zone. -Municipality of Kotor Varoš: incentives for agriculture exist in the total amount of BAM 80,000 -Municipality of Ugljevik: Incentives for each newly employed worker in the amount of BAM 2,000 Net salary BAM (2016) BAM (2016) BAM (2016) BAM (2016) -Municipality of Foča: Incentives for agriculture exist in the annual amount of BAM 100,000, in such a manner to subsidize the procurement of machinery, construction of facilities, and buyout of agricultural products Labor force at the disposal 33,925 persons 30,185 persons 30,273 persons 7,853 persons Locations at the disposal (greenfield/ brownfield) -Municipality of Gradiška is placing at the disposal capacities of the Agricultural and Industrial Zone of Nova Topola, which has available 125 hectares of land, whose owner is the Municipality of Gradiška, and which possesses the basic infrastructure, such as power supply, water supply, sanitation, access roads. In the area of the Agricultural and Industrial Zone of Nova Topola all activities in the value chain may be realized (buyout, processing, value added production, cold storages, warehousing, packaging, and distribution of fruit and vegetables). The land in the zone is exclusively intended for purchase, at the price from BAM 1 to 80 /m² of land. Agricultural and Industrial Zone of Nova Topola has a Regulation Plan. Investing into the zone requires a business plan. Acquisition of the urban planning, construction, and utilization permit, power supply consent, ecological license, and fire protection consent for a facility of 1,000 m² would require BAM 40,000. The period of time necessary for the acquisition of the permits is between 2 and 3 months (much depends on the investor). -Municipality of Brod places at the disposal land in the area of 150 hectares, of which 50 hectares are in the ownership of the municipality, where lease of land is possible for the period of 30 years, and 100 hectares are in private ownership with own production. The annual price of lease amounts to BAM 80/ hectare in average. Road transport infrastructure is present at the location. The municipality Is located 1 kilometer away from the state border with the EU (Croatia), 10 kilometers away from the highway leading from Belgrade to Zagreb, and 50 kilometers away from the railroad and 100 kilometers from the airport -Municipality of Lopare is putting at the disposal for brownfield investments, production, and buyout of fruit and vegetables land in the ownership of the Municipality of Lopare which is situated in a number of locations: 1. Cadastral Municipality of Mačkovac 2. Cadastral Municipality of Jablanica, neglected land in the area of 50 hectares, which should be brought to its use 3. Cadastral Municipality of Koraj 1 and Cadastral Municipality of Koraj 2, neglected land in the area of 80 hectares, which should be brought to its use 4.Argicultureal land issued to agricultural producers registered in APIF (land under lease on 230 hectares; price of lease BAM 300 / 1 hectare) Facilities for brownfield investments: 1. Agricultural Cooperative Priboj, former Agricultural Cooperative Ratko Perić Priboj (The cooperative is in bankruptcy proceedings, a portion of facilities has been solved, resolution of property related and legal relations is ongoing) -Municipality of Lopare is putting at the disposal land in Kozja luka, 10 hectares in area, in the ownership of the Municipality, where lease is possible at the price of BAM 1,000. On the location proposed for investments there is all the necessary infrastructure present. The area of the municipality is located at the distance of 18 kilometers from the border with Montenegro, 70 kilometers away from the airport and the railway, and 180 km (around 2 hours) away from a sea port. -Municipality of Novo Goražde is making available for a brownfield investment a facility in the distribution center of Gradina, in the ownership of the Municipality, with area size of 6,200 m2, and with the corresponding land with the area size of 12,000 m2. The facility was built intentionally for the requirements of wholesale supply of the region. 25

26 The assessed cost of constructing a facility in the zone with area size of 1,000 m² is around BAM 100,000 -Municipality of Kozarska Dubica is proposing greenfield investments in the construction of plants for the production and processing of agricultural products, cold storages, and all types of servicing facilities and warehouses with various purposes. Joint investments with the objective of modernization and expansion of production capacities of existing enterprises. It is making available 79 hectares of land in the business zone of Lipova Greda, in the ownership of the municipality. Currently, the Southern part of the zone is regulated, in the area of 21 hectares, with the total of 26 parcels envisaged for sale to investors. The size of a parcel may be adjusted to the needs of the investor. Price of land: BAM 9/m² with discount options - Municipality of Novi Grad proposes two locations for brownfield investments, on which all the necessary infrastructure is already present: Location: Svodna Blatna Area: m m 2 Ownership: Municipality Municipality Business Lease Lease opportunity: Price: BAM 1.00/m 2 BAM 1.00/m 2 + PDV + PDV -Municipality of Prijedor is proposing greenfield and brownfield investments, and the construction of a distribution center for fruit and vegetables (buyout, warehousing, and sale) a) In case of the distribution center for fruit and vegetables of the region of Prijedor, the investment would cover the adaptation of the existing facility with area of 450 m2 into a facility intended for the warehousing, processing, packaging, and distribution of fruit. Along with the adaptation of the existing facility, the project design envisages the construction of a new facility, 250 m2 in area, for business premises and plants for the finishing of pilot products. - Municipality of Kotor Varoš is proposing for brownfield and joint investments the Agricultural Center of Obodnik, with area size of 1 hectare, in the ownership of the municipality, where it would be possible to lease and equip existing premises, and where there is a high level of participation by the Municipal Administration of Kotor Varoš. There is a facility of 1000 m2 of useful area with a number of large and fully constructed rooms with comprehensive infrastructure. -Municipality of Prnjavor is making available for greenfield investments land in the area of 6,340 m², with assessed value of land amounting to EUR 97,248 EUR. Power supply, sanitation, water supply, telecommunications, and an access road are all available on the land, -Municipality of Teslić is proposing for a greenfield investment and production and buyout of products a location of 12 hectares in area in the Business Zone of Lanara, which is a greenfield zone, in the ownership of the Municipality of Teslić. The land can be bought or taken under long-term lease with the right to construct on the land. Total assessed costs (land, lease fee, regulation) amount to around BAM 105 /m² net of construction area that could be reduced depending on the number of employees and other parameters 2. Agricultural Cooperative Dojčin Lukić Lopare (The cooperative is in bankruptcy proceedings, and property related and legal relations have not been resolved) 3. Agricultural Cooperative Bratstvo Koraj (The cooperative is in function and is performing its primary activity for which it is registered, property related and legal relations are resolved, it processes 38 hectares of land) 4. Agricultural Cooperative Agro-Koraj Koraj (The cooperative owns a cold storage, a drying plant, and business premises, and it is dealing exclusively with the buyout of fruit and vegetables) 5. Agricultural Cooperative Agro-Brda Koraj (The cooperative is active in fruit production, of dried plums exclusively, with business premises and a cold storage) -Municipality of Ugljevik is making available for greenfield investments two parcels: 1. Land in the industrial zone of Ugljevik, comprising three individual parcels, with total area of 13,411 m2, in private ownership (which may turn out to be an advantage, as it shortens the procedures of buyout of land), and there are options for purchase and long-term lease. 2. Land in municipal ownership, which is located in the immediate vicinity of the center of Ugljevik, a couple of hundred meters from the M-18 Primary road and the R-459 regional road. Two connected parcels, with areas of 16,244 m2 and 19,847 m2. The parcels are currently recorded as agricultural land, and water and power networks have been extended to the parcels. -The town of Zvornik is making available for greenfield and brownfield investments in the area of hectares of constructed land in the Business Zone of Jadar in the ownership of Republika Srpska and the town of Zvornik, which has the right to manage it. The business zone in Jadar is located in the industrial area of Karakaj and is 4 kilometers away from the center of the town. It is situated immediately next to the border crossing with the function of a commodity customs terminal. The facility could be ceded for economic activity on the basis of public private partnership or may be bought under financially favorable terms, pending the employment of the inhabitants of the municipality who are registered in the records of the Employment Bureau. 26 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

27 Within the framework of the adaptation, the facility will be regulated in two parts: the first part would concern chambers for warehousing fruits, with capacity of 4X100 t; the second part would be the operating space in which equipment would be installed for packaging and basic processing of fruit. -Municipality of Laktaši is suggesting for greenfield investments the Business Zone of Aleksandrovac, with 28.9 hectares of area of land in the ownership of the Municipality of Laktaši. There are several parcels available for construction with area sizes from 5,000-12,000 m2, at the price of BAM 3/ m2. A paved road leads through the middle of the Industrial Zone of Aleksandrovac with street lighting (connecting the zone with the M-16 primary road), power supply, water supply, and telecommunication networks which are installed, and organized waste collection. -Municipality of Srbac is proposing, for the purposes of expanding warehousing capacities for the buyout and warehousing of strawberries and berries, wild collection and mushrooms (expansion of a cold storage) a location at the address of 18 Ilićani, with area of 2 hectares, cadastral particle No. 209/2, in the ownership of S.P. Šipurak Dragiša Knežević. Horizontal dimensions of the existing facility (cold storage) are 14.6 x 11 m. -The city of Bijeljina is proposing for a greenfield investment industrial zones in the ownership of the City of Bijeljina, which are intended for the construction of industrial, production and processing capacities, small entrepreneurship, and servicing crafts: 1) Industrial zone hectares (44 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The infrastructure is in the phase of construction. The sales price of construction parcels ranges from BAM /m² (Sub-zone 1 BAM 30 /m², Sub-zone 2 BAM 15 /m², Sub-zone 3 BAM 10 /m²), in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). 2) Industrial zone 3 22 hectares (3.75 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The industrial zone is fully equipped (paved road, power, water supply). The sale of construction parcels is being performed under favorable conditions (the initial price is BAM 20/m² for regulated construction land, in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). 27

28 Production and Exports of Berry Fruit 9, INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

29 87 32 Top 10 municipalities in RS with the highest average production of raspberries and strawberries for : R1 Legend: raspberries strawberries raspberries and strawberries Raspberries production ratio from top locations with the 13+ remaining parts of RS 87% R2 R3 R4 13% R7 R5 R6 Strawberries roduction ratio from top locations with the 68+ remaining parts of RS 32% Top locations Remaining parts of RS 62% Production share of raspberries in the top 10 municipalites in RS Production share of strawberries in the top 10 municipalites in RS Remaining parts of RS Zvornik Srebrenica Bratunac Rudo Lopare Pale Novi Grad Vlasenica Ustiprača-Novo Goražde Foča 2% 2%2% 2% 2% 4% 5% 14% 23% 13% 31% 4% 5% 6% 6% 7% 7% 4% 4% 7% 19% 31% Remaining parts of RS Bijeljina Gradiška Lopare Pale Srbac Zvornik Bratunac Laktaši Berkovići Novi Grad * Average annual production of raspberries and strawberries for

30 Production share of raspberries in the top 10 municipalites in RS Production share of strawberries in the top 10 municipalites in RS Foča Ustiprača-Novo Goražde Vlasenica Novi Grad Pale Lopare Rudo Bratunac Srebrenica Zvornik Remaining parts of RS ,134 1, Novi Grad Berkovići Laktaši Bratunac Zvornik Srbac Pale Lopare Gradiška Bijeljina Remaining parts of RS ,000 1,500 2, ,000 * Average annual production of raspberries and strawberries for Aggregation with other locations for berries in BiH The aggregation of other locations with the mapped top locations for berries (the zone that covers a single region is marked on the map with concentric circles) has included municipalities that are located in immediate vicinity, within a circle 75 kilometers in diameter. The aggregation had covered the location and the quantities of strawberries and raspberries. The locations shown in the table have been added to the existing regions: REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 REGION 6 REGION 7 Novi Grad Gradiška, Laktaši, Srbac Bijeljina Bratunac, Srebrenica, Vlasenica, Zvornik Aggregation Pale Foča, Rudo, Ustiprača-Novo Gorazde Berkovići Kostajnica, Kozarska Dubica, Prijedor 2+ Banja Luka, Čelinac, Prnjavor Lopare Milići, Osmaci, Šekovići Sokolac - Nevesinje Production share of regions with aggregation of berries in BiH 66% 2% 3% 4% 20% 2% 2% 1% REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 REGION 6 REGION 7 4% Remaining parts of RS Remaining parts of BiH 54% Production share of regions with aggregation of berries in RS 1% 6% 9% 5% 9% 12% * The share of average production of berry fruits by regions with added locations (aggregation of locations within a circle 75 kilometers in diameter) for INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

31 Production regions for berry fruits: R1 R2 R3 R4 R5 Legend: raspberries strawberries raspberries and strawberries R7 R6 Region production (in tons) with aggregation and remaining parts of BiH Region production (in tons) with aggregation and remaining parts of RS Remaining parts of BiH 13,090 Remaining parts of RS 648 REGION REGION REGION REGION REGION REGION REGION 4 3,953 REGION 4 3,953 REGION REGION REGION REGION REGION REGION ,000 10,000 15, ,000 2,000 3,000 4,000 5,000 *Average annual production of berry fruits in tons by regions with added locations and production of the remaining parts of BiH for

32 BERRIES REGION 1 REGION 2 REGION 3 REGION 4 Locations Novi Grad, Kostajnica, Kozarska Dubica, Prijedor Gradiška, Laktaši, Srbac, Banja Luka, Čelinac, Prnjavor Bijeljina, Lopare Bratunac, Srebrenica, Vlasenica, Zvornik, Milići, Osmaci, Šekovići Favorable areas for investing -Construction of a distribution center -Plant for processing of fruit, production of juices and other products made from fruit (Investors have at their disposal, on annual basis, more than 30,000 tons of apples, second and third class, for which there are currently no processing capacities, as well as 500 hectares for apples and pears and 60 hectares for plums.) Advantages Advantages -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH, -Moderate and continental climatic effects, high quality soil, and wealth of water facilitate the cultivation of early spring vegetables which are sold in the market with a high margin and for which the demand in the EU has been growing continuously in the last couple of years. -Dynamic business environment and untapped potentials in business zones equipped for receiving new investors in the sector of processing of fruit and vegetables. -Agricultural logistics center -Capacities for processing and drying of fruit (currently there are around 50,000 tons of various fruit, of which apples represent 80% of production) -Buyout and processing capacities for fruit and vegetables -Processing capacities for plums -Drying plant for plums -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH. -At the disposal of the investors, there is the logistics center with comprehensive logistics support (warehousing and cooling) with the option of using administrative premises (Agricultural Zone in Nova Topola). -This region holds the number one position in the production of plums, apples, and pears, and the second place in RS based on the production of strawberries and potatoes, for which Bosnia and Herzegovina is ranked highly on the global list of countries based on production of plums (12th globally), with the average market price in BiH which is the lowest of the 10 countries with the highest volume of production of those crops -The international airport in Banja Luka is located in this region, while the vicinity of river Sava renders this location more interesting because of the possibility of water transport connections with Europe -Processing capacities for fruit and vegetables -Cold storage and cooling capacities for fruit and vegetables -Raising raspberry plantations -The region holds the top spot in the production of strawberries, cucumbers, cabbages, green peppers, potatoes, and carrots, compared to total production in RS, and is amongst the 6 leading locations in the production of raspberries and plums, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place) and plums (12th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of that fruit. -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices. -The region is situated in an attractive geostrategic location on the triple border of Serbia, Croatia, and Republika Srpska, i.e. BiH, and on the crossroads of roads leading to large urban and industrial centers Belgrade, Novi Sad, Inđija, Banja Luka, Šabac, Tuzla, Sarajevo... At around thirty kilometers there is a connection to the Pan European corridor 10, i.e. the E70 highway from Belgrade to Zagreb, which represents the shortest connection between Semberija and those two cities, and, through them, with Western / Central Europe and the South / East of the Balkan peninsula. -Cold storage with deep freezing -Construction of a distribution center -Cultivation and buyout of fruit and vegetables -Processing capacities for raspberries and blackberries -Cold storage construction of a new cold storage and/or expansion of existing facilities -The region holds the top spot in the production of raspberries and the second place in the production of cucumbers compared to the total production in RS, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of that fruit. -The geostrategic position of the region is important because of the crossroads of the roads leading to large urban centers in BiH and the region. -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices 32 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

33 Incentives -Municipality of Kozarska Dubica has adopted a Decision on the manner of entry of investors into the business zone with discounts that may represent up to 99% of the purchase and sale price of land in the zone. -Municipality of Novi Grad: Incentive for the sector of small and medium enterprises in the area of employment amounts to BAM 65,000. Incentive for agricultural production in the territory of the municipality amounts to BAM 140,000. -Municipality of Prijedor: improvement of fruit production BAM 40,000, production of vegetables and flowers in closed spaces - BAM 50,000, regress for renewal of agricultural machinery - BAM 15,000, support to introduction of irrigation systems with agricultural producers - BAM 20,000, support to the construction of stable facilities and equipment BAM 10,000, support to construction of warehousing facilities and procurement of equipment for fruit production BAM 20, Municipality of Srebrenica: Incentives in the amount of around BAM 100,000 are allocated in the municipality budget for supporting plant based production, supporting livestock keeping, and supporting small-scale infrastructural projects. The incentive for small and medium enterprises amounts to BAM 50,000 at the annual level -Municipality of Vlasenica: Incentives for agriculture exist in the amount of BAM 80,000 on the annual level Net salary BAM (2016) BAM (2016) BAM (2016) BAM (2016) Labor force at the disposal Locations at the disposal (greenfield/ brownfield) 11,270 persons 28,096 persons 13,026 persons 12,141 persons -Municipality of Kozarska Dubica is proposing greenfield investments in the construction of plants for the production and processing of agricultural products, cold storages, and all types of servicing facilities and warehouses with various purposes. Joint investments with the objective of modernization and expansion of production capacities of existing enterprises. It is making available 79 hectares of land in the business zone of Lipova Greda, in the ownership of the municipality. Currently, the Southern part of the zone is regulated, in the area of 21 hectares, with the total of 26 parcels envisaged for sale to investors. The size of a parcel may be adjusted to the needs of the investor. Price of land: BAM 9/m² with discount options -Municipality of Novi Grad proposes two locations for brownfield investments, on which all the necessary infrastructure is already present: -Municipality of Gradiška is placing at the disposal capacities of the Agricultural and Industrial Zone of Nova Topola, which has available 125 hectares of land, whose owner is the Municipality of Gradiška, and which possesses the basic infrastructure, such as power supply, water supply, sanitation, access roads. In the area of the Agricultural and Industrial Zone of Nova Topola all activities in the value chain may be realized (buyout, processing, value added production, cold storages, warehousing, packaging, and distribution of fruit and vegetables). The land in the zone is exclusively intended for purchase, at the price from BAM 1 to 80 /m² of land. Agricultural and Industrial Zone of Nova Topola has a Regulation Plan. Investing into the zone requires a business plan. -The city of Bijeljina is proposing for a greenfield investment industrial zones in the ownership of the City of Bijeljina, which are intended for the construction of industrial, production and processing capacities, small entrepreneurship, and servicing crafts: 1) Industrial zone hectares (44 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The infrastructure is in the phase of construction. The sales price of construction parcels ranges from BAM /m² (Sub-zone 1 BAM 30 /m², Sub-zone 2 BAM 15 /m², Sub-zone 3 BAM 10 /m²), in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). -Municipality of Bratunac is proposing, for greenfield investments or a joint investment, the industrial zone of Ciglana in the ownership of the Municipality of Bratunac with area size of 3.5 hectares. The process is ongoing for awarding, for long-term lease or transfer of ownership to the future investor, under the conditions that workers are employed. The initial price of the lease of purchase and sale under the Public invitation is BAM 0. The annual lease of area in the Industrial zone of Ciglana amounts to BAM 0.50 / m². Industrial zone of Ciglana has a power supply network, sanitation and telecommunication networks, while the existing toad in the length of several hundred meters needs to be repaired. 33

34 Location: Svodna Blatna Area: m m 2 Ownership: Municipality Municipality Business Lease Lease opportunity: Price: BAM 1.00/m 2 + PDV BAM 1.00/m 2 + PDV -Municipality of Prijedor is proposing greenfield and brownfield investments, and the construction of a distribution center for fruit and vegetables (buyout, warehousing, and sale) a) In case of the distribution center for fruit and vegetables of the region of Prijedor, the investment would cover the adaptation of the existing facility with area of 450 m2 into a facility intended for the warehousing, processing, packaging, and distribution of fruit. Along with the adaptation of the existing facility, the project design envisages the construction of a new facility, 250 m2 in area, for business premises and plants for the finishing of pilot products. Within the framework of the adaptation, the facility will be regulated in two parts: the first part would concern chambers for warehousing fruits, with capacity of 4X100 t; the second part would be the operating space in which equipment would be installed for packaging and basic processing of fruit. Acquisition of the urban planning, construction, and utilization permit, power supply consent, ecological license, and fire protection consent for a facility of 1,000 m² would require BAM 40,000. The period of time necessary for the acquisition of the permits is between 2 and 3 months (much depends on the investor). The assessed cost of constructing a facility in the zone with area size of 1,000 m² is around BAM 100,000. -Municipality of Laktaši is suggesting for greenfield investments the Business Zone of Aleksandrovac, with 28.9 hectares of area of land in the ownership of the Municipality of Laktaši. There are several parcels available for construction with area sizes from 5,000-12,000 m2, at the price of BAM 3/m2. A paved road leads through the middle of the Industrial Zone of Aleksandrovac with street lighting (connecting the zone with the M-16 primary road), power supply, water supply, and telecommunication networks which are installed, and organized waste collection. There is a regulation plan adopted, along with the Feasibility Study for the Agricultural Business Park of Aleksandrovac, which plans an expansion of the zone to additional 80 hectares (on the other side of the primary road leading from Banja Luka to Gradiška, and on the transport line connecting that road with the Banja Luka Gradiška highway). -Municipality of Srbac is proposing, for the purposes of expanding warehousing capacities for the buyout and warehousing of strawberries and berries, wild collection and mushrooms (expansion of a cold storage) a location at the address of 18 Ilićani, with area of 2 hectares, cadastral particle No. 209/2, in the ownership of S.P. Šipurak Dragiša Knežević. Horizontal dimensions of the existing facility (cold storage) are 14.6 x 11 m. -Municipality of Prnjavor is making available for greenfield investments land in the area of 6,340 m², with assessed value of land amounting to EUR 97,248 EUR. Power supply, sanitation, water supply, telecommunications, and an access road are all available on the land 2) Industrial zone 3 22 hectares (3.75 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The industrial zone is fully equipped (paved road, power, water supply). The sale of construction parcels is being performed under favorable conditions (the initial price is BAM 20/m² for regulated construction land, in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). -Municipality of Lopare is putting at the disposal for brownfield investments, production, and buyout of fruit and vegetables land in the ownership of the Municipality of Lopare which is situated in a number of locations: 1. Cadastral Municipality of Mačkovac 2. Cadastral Municipality of Jablanica, neglected land in the area of 50 hectares, which should be brought to its use 3. Cadastral Municipality of Koraj 1 and Cadastral Municipality of Koraj 2, neglected land in the area of 80 hectares, which should be brought to its use 4.Argicultureal land issued to agricultural producers registered in APIF (land under lease on 230 hectares; price of lease BAM 300 / 1 hectare) Facilities for brownfield investments: 1. Agricultural Cooperative Priboj, former Agricultural Cooperative Ratko Perić Priboj (The cooperative is in bankruptcy proceedings, a portion of facilities has been solved, resolution of property related and legal relations is ongoing) 2. Agricultural Cooperative Dojčin Lukić Lopare (The cooperative is in bankruptcy proceedings, and property related and legal relations have not been resolved) 3. Agricultural Cooperative Bratstvo Koraj (The cooperative is in function and is performing its primary activity for which it is registered, property related and legal relations are resolved, it processes 38 hectares of land) 4. Agricultural Cooperative Agro-Koraj Koraj (The cooperative owns a cold storage, a drying plant, and business premises, and it is dealing exclusively with the buyout of fruit and vegetables) 5. Agricultural Cooperative Agro-Brda Koraj (The cooperative is active in fruit production, of dried plums exclusively, with business premises and a cold storage) The future Industrial Zone of Pobrđe with area size of 40 hectares (currently, agricultural land) is included in the Regulation Plan of the Municipality. -Municipality of Srebrenica is proposing for a brownfield investment the construction of Industrial Zone of Potočari, with the area size of the parcel of 21,210 m² and facilities with the area size of 3,150 m², in the ownership of the Neodom Company from Novo Mesto. The construction facility made of AB elements in the construction of the facility shows no traces of erosion. Purchase would be possible at the price of EUR 900,000. Full infrastructure is present at the proposed location. Municipality has competitive advantages in the production of raspberries, for which the production volume ranges around 650,000 kilograms per annum, in average. In the territory of the Municipality there are 5 cold storages with capacities of 400 to 2000 tons. The Municipality is located 15 kilometers from the state border with the Republic of Serbia, which represents an additional advantage for constructing a distribution center for fruit and vegetables. - Municipality of Vlasenica puts at the disposal of investors the Industrial Zone of KULA-Zeban, for production and cultivation. In the territory of the Municipality there is organized production of raspberries on the area of 30 hectares, plastic greenhouse production and production of fruits (plums, pears, and apples), with the cold storage for raspberries and several smaller drying plants. -The town of Zvornik is making available for greenfield and brownfield investments in the area of hectares of constructed land in the Business Zone of Jadar in the ownership of Republika Srpska and the town of Zvornik, which has the right to manage it. The business zone in Jadar is located in the industrial area of Karakaj and is 4 kilometers away from the center of the town. It is situated immediately next to the border crossing with the function of a commodity customs terminal. It leans on M19 and M4 primary roads and the loading station on the international railroad connecting the Republic of Serbia with Zvornik and then Tuzla. 34 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

35 BERRIES REGION 5 REGION 6 REGION 7 Locations Pale, Sokolac Foča, Rudo, Ustiprača-Novo Gorazde Berkovići, Nevesinje Favorable areas for investing -Cold storages and cooling capacities -Processing of fruit, production of juices and other products made from fruit -Drying plants -Production and standardization of production of berries (Global gap, HACCP) -Cold storages -Construction of irrigation systems -Establishing new plantations of berries raspberries -Establishing plastic greenhouse production of vegetables and fruit - Processing capacities for fruit and vegetables Advantages -In the territory of the region there is the Center for Improvement of Agricultural Production in the Hilly and Mountain Area, the only center of that kind in BiH and the broader region, including Serbia and Croatia. -Abundance of fertile uncultivated and unpolluted land with favorable natural and climatic conditions, excellent soil quality, longer seasons of growth / production, and enormous wealth of crystal clear water streams, opens possibilities for investors for high quality agricultural production with low operating costs -The geostrategic position of the region connected with the capital city of Bosnia and Herzegovina, and the distance of 25 kilometers, as well as with all the key institutions, along with well-developed road, rail, and air cargo transport, facilitates the transport of products in a single day to the markets of the EU, Central, and East Europe, Turkey, the Near East, and Russia, and represents an excellent location for investors who want to expand their business operations -The primary road Sarajevo Pale Podromanija Sokolac Zvornik Belgrade (M19) crosses through the area of the Municipality, as well as the Podromanija Rogatica Višegrad Užice (M19.3) road that represents the route of the future fast road that is planned, as a connection to Corridor Vc -This region holds the second position in the production of pears, and the fourth place in the production of raspberries and apples compared to total production in RS, for which Bosnia and Herzegovina is ranked highly on the global list of countries based on production of raspberries (11th position), with the average market price in BiH being the lowest of the 10 countries with the highest volume of production of those crops. -Cold storages with capacities of 1000 kilograms and drying plants are located in two areas in the region, in the part that borders with Serbia in the territory of the Municipality of Rudo (25 kilometers) and with Montenegro in the territory of the Municipality of Foča (18 kilometers). -The location on the very border with Serbia and Montenegro results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices -The region is located at the crossroads of primary roads leading from Sarajevo towards Serbia and Montenegro, and from Serbia and Montenegro towards the Adriatic Sea -The region is located in an area with simple access (50 to 80 kilometers) to the market of Montenegro and the Adriatic Sea and the Port of Ploče (Croatia/EU), the border belt with Croatia (EU), a position on the European highways E73 and E65 and the border crossing of Bijača, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phytosanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH to EU. -This region holds the second position based on the production of carrots and the fifth place in the production of potatoes, compared to total production in RS. The land is available for greenfield investments, as well as for the buyout and processing of ware potatoes 35

36 Incentives -Municipality of Sokolac: Incentives: compensation for lump sum rent and regulation of city construction land is paid in installments during the period of 5 and 10 years, to perform regress of interest on agricultural credits, as well as preferential treatment and exemptions when paying utility fees and utility charges -Municipality of Foča Incentives for agriculture exist in the annual amount of BAM 100,000, in such a manner to subsidize the procurement of machinery, construction of facilities, and buyout of agricultural products. -Municipality of Rudo Incentive financing for 2016 is envisaged in the amount of BAM 100,000, on the basis of the Decision on Incentives for Development of Agricultural Production. In 2016, the Programme Management in the Service of Red Gold Project was implemented programme management was adopted in the production of berries, and a new tunnel was made for freezing vegetables in the existing cold storage. An application for a project was submitted to the SWG (analysis of land and equipment for sorting raspberries and production of juices and jams made from raspberries and other fruit). The aforementioned investments represent an integral part of the Strategy of Sustainable Development of the Municipality of Rudo. Net salary BAM (2016) BAM (2016) BAM (2016) Labor force at the disposal 4,466 persons 5,221 persons 2,887 persons Locations at the disposal (greenfield/ brownfield) -Municipality of Sokolac is proposing several locations for greenfield, brownfield and joint investments: -Business Zone of Podromanija, Bjelosavljevići, on the road leading to the Municipality of Rogatica, with area size of 43 hectares, with 108 parcels in private ownership, favorable for all greenfield investments that do not have a negative effect on the environment. The land is located in zone III, and purchase is possible at the price of BAM 3 /m2. -Land with the area size of hectares is being given under lease for the period of 8 to 12 years, with optional extension. It is situated on three locations: Glasinačko polje (51.70 hectares), Luburić polje ( ha), and Poljak polje (78.67 ha). The maximum area size that may be given under lease for economic companies and entrepreneurs is 200 hectares, and for natural persons it is 30 hectares. Annual prices of lease of one hectare are distributed by classes: I BAM 90/hectare, II BAM 80/hectare, III BAM 70/hectare, IV BAM 60 / hectare, V BAM 50/hectare, VI, VII, and VIII BAM 30/hectare. -Municipality of Foča is putting at the disposal land in Kozja luka, 10 hectares in area, in the ownership of the Municipality, where lease is possible at the price of BAM 1,000. On the location proposed for investments there is all the necessary infrastructure present. The area of the municipality is located at the distance of 18 kilometers from the border with Montenegro, 70 kilometers away from the airport and the railway, and 180 km (around 2 hours) away from a sea port. -Municipality of Rudo is proposing for greenfield investments, joint investments, reinvesting, production and buyout of fruit and vegetables, land in the location of Rasadnik - Gornji Uvac, in the ownership of the Municipality of Rudo, with area size of 10 hectares. The land may be taken under lease free of charge. The projects would require water management consent, project development, and acquisition of consent may be finalized within the deadline of 3 months, with costs of BAM 1,000. There is an adopted Plan of the Municipality of Rudo and the Zoning Plan of the Municipality s Center. - -Municipality of Berkovići is providing, for greenfield investments, the Business zone of Viduša, in the ownership of the Municipality of Berkovići. The infrastructure of the business zone is yet to be regulated. There is an adopted Physical Space Regulation Plan of the Municipality of Berkovići and the Regulation Plan of the Business Zone of Viduša. The municipality expressed its need for investments in processing capacities, taking into account that currently there is only production in individual areas, in the absence of processing capacities, cold storages, and drying plants. -Municipality of Nevesinje has available for greenfield investments and buyout of fruit and vegetables land in the industrial zone of Kilavci, with total area size of 3 hectares in the ownership of the Municipality. Purchase is possible through a public auction with the initial price of around 36 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

37 -Agricultural land with area size of 8,061 hectares, which is being given under lease for the period of 8 years at the minimum, at the price of BAM 30-90, depending on the quality of the land. Healthy and clean environment represents a possibility for investing in ecological mixed agricultural production Municipality of Novo Goražde is making available for a brownfield investment a facility in the distribution center of Gradina, in the ownership of the Municipality, with area size of 6,200 m2, and with the corresponding land with the area size of 12,000 m2. The facility was built intentionally for the requirements of wholesale supply of the region. The facility could be ceded for economic activity on the basis of public private partnership or may be bought under financially favorable terms, pending the employment of the inhabitants of the municipality who are registered in the records of the Employment Bureau. Next to the facility there is a cold storage which is in the ownership of the HIP- EKS enterprise from Novo Goražde, with capacity of 2,000 tons of warehousing space and the tunnel for freezing of fruit and vegetables, which provides an opportunity for organization of production and processing of fruit and vegetables BAM 10, depending on the zone in which the location is. In the majority of locations in the industrial zone, the necessary infrastructure is already ensured. The Physical Space Regulation Plan of the Municipality was adopted in 2015, while the Industrial Zone of Kilavci also has an adopted Regulation Plan 37

38 Production and Exports of Pears 24, Top 10 municipalities in RS with the highest average production of pears for : Production ratio from top locations with the remaining parts of RS 20% 80% Top locations Remaining parts of RS 38 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

39 Bijeljina Laktaši Kotor Varoš Kozarska Dubica Prijedor Rudo Prnjavor Banja Luka Foča Gradiška Remaining parts of RS Production of pears (in tons) in the top 10 municipalities in RS ,029 1,918 2,510 3,100 3, ,000 2,000 3,000 4,000 5,000 Production share of pears in the top 10 municipalites in RS 2% Remaining parts of RS 3%3% 3% Gradiška 4% Foča 4% 26% Banja Luka Prnjavor 7% Rudo Prijedor Kozarska Dubica 12% 20% Kotor Varoš Laktaši 16% Bijeljina26+ *Average annual production of pears in tons for *Share of average production of pears for Aggregation with other locations for pears in BiH The aggregation of other locations with the mapped top locations for pears (the zone that covers a single region is marked on the map with concentric circles) has included municipalities that are located in immediate vicinity, within a circle 75 kilometers in diameter. The locations shown in the table have been added to the existing regions: REGION 1 REGION 2 REGION 3 REGION 4 Kozarska Dubica, Prijedor Banja Luka, Gradiška, Kotor Varoš, Laktaši, Prnjavor Bijeljina Foča, Rudo Aggregation Kostajnica, Novi Grad Čelinac, Srbac Lopare, Ugljevik Čajniče, Ustiprača-Novo Goražde Region production (in tons) with aggregation and remaining parts of BiH Remaining parts of BiH 12,357 Remaining parts of BiH Region production (in tons) with aggregation and remaining parts of RS 3,037 3, ,230 1,258 15,000 10,000 5,000 0 REGION 4 REGION 3 REGION 2 REGION 1 3, ,230 1, ,000 4,000 6,000 8,000 * Average annual production of pears in tons per region with added locations and production in the remaining parts of BiH for

40 Production regions for pears: R1 R2 R3 R4 Production share of regions with aggregation of pears in BiH 5+ 5% 29% 50% 3% 13% REGION 1 REGION 2 REGION 3 REGION 4 Remaining parts of RS Remaining parts of BiH Production share of regions with aggregation of pears in RS 21% 20% 5% 8% 46% *The share of average production of pears by regions with added locations (aggregation of locations within a circle up to 75 kilometers in diameter) for INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

41 PEARS REGION 1 REGION 3 REGION 3 REGION 4 Locations Kozarska Dubica, Prijedor, Kostajnica, Novi Grad Banja Luka, Gradiška, Kotor Varoš, Laktaši, Prnjavor, Čelinac, Srbac Bijeljina, Lopare, Ugljevik Foča, Rudo, Čajniče, Ustiprača-Novo Gorazde Favorable areas for investing -Plant for processing of fruit, production of juices and other products made from fruit -Cold storage for fruit and vegetables -Distribution center for fruit and vegetables Advantages -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phytosanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH -The region holds the third position in the production of apples and is amongst the top 10 locations compared to total production in Republika Srpska, based on the production of pears, raspberries, cucumbers, cabbage, kale, carrots, and green peppers, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of these crops -Dynamic business environment and untapped potentials in business zones equipped for receiving new investors in the sector of processing of fruit and vegetables -Agricultural logistics center -Capacities for processing and drying of fruit (currently there are around 50,000 tons of various fruits, of which apples represent 80% of production) -Processing capacities -Equipping an existing agricultural industrial center -Buyout and processing capacities for fruit and vegetables -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH -At the disposal to investors there is a logistics center with complete logistics support (warehousing and cooling) with options for using administrative premises (Agricultural zone - Agro zona Nova Topola). -This region holds the top spot in the production of plums, apples, and pears, and the second place in RS based on the production of strawberries and potatoes, for which BiH is highly ranked in the global list of countries producers of plums (12th place globally), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of these crops -The region is counted as one of the 5 top producers of high quality agricultural products made from fruit and vegetables, such as carrots, green peppers, cucumbers, for which there is a trend of increase in demand in the last couple of years. -Cultivation and buyout of fruit and vegetables -Drying plans and mini drying plant -Cold storage and cooling capacities for fruit and vegetables -The region holds the top spot in the production of strawberries, cucumbers, cabbages, green peppers, potatoes, and carrots, compared to total production in RS, and is amongst the 6 leading locations in the production of raspberries and plums, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place) and plums (12th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of that fruit. -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices. - The region is situated in an attractive geostrategic location on the triple border of Serbia, Croatia, and Republika Srpska, i.e. BiH, and on the crossroads of roads leading to large urban and industrial centers Belgrade, Novi Sad, Inđija, Banja Luka, Šabac, Tuzla, Sarajevo... At around thirty kilometers there is a connection to the Pan European corridor 10, i.e. the E70 highway from Belgrade to Zagreb, which represents the shortest connection between Semberija and those two cities, and, through them, with Western / Central Europe and the South / East of the Balkan peninsula. -Production of fruit and vegetables -Buy-out and processing capacities for fruit and vegetables -Cold storages -The region holds the second position in the production of pears and the fourth place in the production of raspberries and apples, compared to total production in RS, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of that fruit. -Cold storages with capacities of 1,000 kilograms and drying plants are located in two areas in the region, in the part that borders with Serbia in the territory of the Municipality of Rudo (25 kilometers) and with Montenegro in the territory of the Municipality of Foča (18 kilometers). -The location on the very border with Serbia and Montenegro results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices. 41

42 Incentives -Municipality of Kozarska Dubica has adopted a Decision on the manner of entry of investors into the business zone with discounts that may represent up to 99% of the purchase and sale price of land in the zone. -Municipality of Novi Grad: Incentive for the sector of small and medium enterprises in the area of employment amounts to BAM 65,000. Incentive for agricultural production in the territory of the municipality amounts to BAM 140,000. -Municipality of Prijedor: improvement of fruit production BAM 40,000, production of vegetables and flowers in closed spaces - BAM 50,000, regress for renewal of agricultural machinery - BAM 15,000, support to introduction of irrigation systems with agricultural producers - BAM 20,000, support to the construction of stable facilities and equipment BAM 10,000, support to construction of warehousing facilities and procurement of equipment for fruit production BAM 20,000 -Municipality of Prijedor: improvement of fruit production BAM 40,000, production of vegetables and flowers in closed spaces - BAM 50,000, regress for renewal of agricultural machinery - BAM 15,000, support to introduction of irrigation systems with agricultural producers - BAM 20,000, support to the construction of stable facilities and equipment BAM 10,000, support to construction of warehousing facilities and procurement of equipment for fruit production BAM 20,000 -Municipality of Kozarska Dubica has adopted a Decision on the manner of entry of investors into the business zone with discounts that may represent up to 99% of the purchase and sale price of land in the zone. - -Municipality of Foča: Incentive financing for 2016 is envisaged in the amount of BAM 100,000 on the basis of the Decision on Incentives for Development of Agricultural Production. Net salary BAM (2016) BAM (2016) BAM (2016) BAM KM (2016) Labor force at the disposal 11,270 persons 30,185 persons 14,753 persons 2,889 persons Locations at the disposal (greenfield/ brownfield) -Municipality of Kozarska Dubica is proposing greenfield investments in the construction of plants for the production and processing of agricultural products, cold storages, and all types of servicing facilities and warehouses with various purposes. Joint investments with the objective of modernization and expansion of production capacities of existing enterprises. It is making available 79 hectares of land in the business zone of Lipova Greda, in the ownership of the municipality. -Municipality of Gradiška is placing at the disposal capacities of the Agricultural and Industrial Zone of Nova Topola, which has available 125 hectares of land, whose owner is the Municipality of Gradiška, and which possesses the basic infrastructure, such as power supply, water supply, sanitation, access roads. In the area of the Agricultural and Industrial Zone of Nova Topola all activities in the value chain may be realized (buyout, processing, value added production, cold storages, warehousing, packaging, and distribution of fruit and vegetables). The land in the zone is exclusively intended for purchase, at the price from BAM 1 to 80 /m² of land. - Municipality of Lopare is putting at the disposal for brownfield investments, production, and buyout of fruit and vegetables land in the ownership of the Municipality of Lopare which is situated in a number of locations: 1. Cadastral Municipality of Mačkovac 2. Cadastral Municipality of Jablanica, neglected land in the area of 50 hectares, which should be brought to its use 3. Cadastral Municipality of Koraj 1 and Cadastral Municipality of Koraj 2, neglected land in the area of 80 hectares, which should be brought to its use -Municipality of Foča is putting at the disposal land in Kozja luka, 10 hectares in area, in the ownership of the Municipality, where lease is possible at the price of BAM 1,000. On the location proposed for investments there is all the necessary infrastructure present. The area of the municipality is located at the distance of 18 kilometers from the border with Montenegro, 70 kilometers away from the airport and the railway, and 180 km (around 2 hours) away from a sea port. 42 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

43 Currently, the Southern part of the zone is regulated, in the area of 21 hectares, with the total of 26 parcels envisaged for sale to investors. The size of a parcel may be adjusted to the needs of the investor. Price of land: BAM 9/m² with discount options -Municipality of Novi Grad proposes two locations for brownfield investments, on which all the necessary infrastructure is already present: Location: Svodna Blatna Area: m m 2 Ownership: Municipality Municipality Business opportunity: Lease Lease Price: BAM 1.00/m 2 + PDV BAM 1.00/m 2 + PDV -Municipality of Prijedor is proposing greenfield and brownfield investments, and the construction of a distribution center for fruit and vegetables (buyout, warehousing, and sale) a) In case of the distribution center for fruit and vegetables of the region of Prijedor, the investment would cover the adaptation of the existing facility with area of 450 m2 into a facility intended for the warehousing, processing, packaging, and distribution of fruit. Along with the adaptation of the existing facility, the project design envisages the construction of a new facility, 250 m2 in area, for business premises and plants for the finishing of pilot products. Within the framework of the adaptation, the facility will be regulated in two parts: the first part would concern chambers for warehousing fruits, with capacity of 4X100 t; the second part would be the operating space in which equipment would be installed for packaging and basic processing of fruit. Agricultural and Industrial Zone of Nova Topola has a Regulation Plan. Investing into the zone requires a business plan. Acquisition of the urban planning, construction, and utilization permit, power supply consent, ecological license, and fire protection consent for a facility of 1,000 m² would require BAM 40,000. The period of time necessary for the acquisition of the permits is between 2 and 3 months (much depends on the investor). The assessed cost of constructing a facility in the zone with area size of 1,000 m² is around BAM 100,000. -Municipality of Kotor Varoš is proposing for brownfield and joint investments the Agricultural Center of Obodnik, with area size of 1 hectare, in the ownership of the municipality, where it would be possible to lease and equip existing premises, and where there is a high level of participation by the Municipal Administration of Kotor Varoš. There is a facility of 1000 m2 of useful area with a number of large and fully constructed rooms with comprehensive infrastructure. -Municipality of Laktaši is suggesting for greenfield investments the Business Zone of Aleksandrovac, with 28.9 hectares of area of land in the ownership of the Municipality of Laktaši. There are several parcels available for construction with area sizes from 5,000-12,000 m2, at the price of BAM 3/m2. A paved road leads through the middle of the Industrial Zone of Aleksandrovac with street lighting (connecting the zone with the M-16 primary road), power supply, water supply, and telecommunication networks which are installed, and organized waste collection. 4.Argicultureal land issued to agricultural producers registered in APIF (land under lease on 230 hectares; price of lease BAM 300 / 1 hectare) Facilities for brownfield investments: 1. Agricultural Cooperative Priboj, former Agricultural Cooperative Ratko Perić Priboj (The cooperative is in bankruptcy proceedings, a portion of facilities has been solved, resolution of property related and legal relations is ongoing) 2. Agricultural Cooperative Dojčin Lukić Lopare (The cooperative is in bankruptcy proceedings, and property related and legal relations have not been resolved) 3. Agricultural Cooperative Bratstvo Koraj (The cooperative is in function and is performing its primary activity for which it is registered, property related and legal relations are resolved, it processes 38 hectares of land) 4. Agricultural Cooperative Agro-Koraj Koraj (The cooperative owns a cold storage, a drying plant, and business premises, and it is dealing exclusively with the buyout of fruit and vegetables) 5. Agricultural Cooperative Agro-Brda Koraj (The cooperative is active in fruit production, of dried plums exclusively, with business premises and a cold storage) -Municipality of Ugljevik is making available for greenfield investments two parcels: 1. Land in the industrial zone of Ugljevik, comprising three individual parcels, with total area of 13,411 m2, in private ownership (which may turn out to be an advantage, as it shortens the procedures of buyout of land), and there are options for purchase and long-term lease. 2. Land in municipal ownership, which is located in the immediate vicinity of the center of Ugljevik, a couple of hundred meters from the M-18 Primary road and the R-459 regional road. Two connected parcels, with areas of 16,244 m2 and 19,847 m2. The parcels are currently recorded as agricultural land, and water and power networks have been extended to the parcels. -Municipality of Rudo is proposing for greenfield investments, joint investments, reinvesting, production and buyout of fruit and vegetables, land on the location of Rasadnik - Gornji Uvac, in the ownership of the Municipality of Rudo, with area size of 10 hectares. The land can be taken under lease free of charge. Speaking of the infrastructure, it is necessary to ensure an irrigation system (BAM 50,000), install plastic greenhouses for production (BAM 50,000), and build in anti-hale nets (5 hectares x BAM 30,000). -Municipality of Novo Goražde is making available for a brownfield investment a facility in the distribution center of Gradina, in the ownership of the Municipality, with area size of 6,200 m2, and with the corresponding land with the area size of 12,000 m2. The facility was built intentionally for the requirements of wholesale supply of the region. The facility could be ceded for economic activity on the basis of public private partnership or may be bought under financially favorable terms, pending the employment of the inhabitants of the municipality who are registered in the records of the Employment Bureau. Next to the facility there is a cold storage which is in the ownership of the HIP- EKS enterprise from Novo Goražde, with capacity of 2,000 tons of warehousing space and the tunnel for freezing of fruit and vegetables, which provides an opportunity for organization of production and processing of fruit and vegetables 43

44 There is a regulation plan adopted, along with the Feasibility Study for the Agricultural Business Park of Aleksandrovac, which plans an expansion of the zone to additional 80 hectares (on the other side of the primary road leading from Banja Luka to Gradiška, and on the transport line connecting that road with the Banja Luka Gradiška highway). -Municipality of Prnjavor is making available for greenfield investments land in the area of 6,340 m², with assessed value of land amounting to EUR 97,248 EUR. Power supply, sanitation, water supply, telecommunications, and an access road are all available on the land. -Municipality of Srbac is proposing, for the purposes of expanding warehousing capacities for the buyout and warehousing of strawberries and berries, wild collection and mushrooms (expansion of a cold storage) a location at the address of 18 Ilićani, with area of 2 hectares, cadastral particle No. 209/2, in the ownership of S.P. Šipurak Dragiša Knežević. Horizontal dimensions of the existing facility (cold storage) are 14.6 x 11 m. -The city of Bijeljina is proposing for a greenfield investment industrial zones in the ownership of the City of Bijeljina, which are intended for the construction of industrial, production and processing capacities, small entrepreneurship, and servicing crafts: 1) Industrial zone hectares (44 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The infrastructure is in the phase of construction. The sales price of construction parcels ranges from BAM /m² (Sub-zone 1 BAM 30 /m², Sub-zone 2 BAM 15 /m², Sub-zone 3 BAM 10 /m²), in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). 2) Industrial zone 3 22 hectares (3.75 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The industrial zone is fully equipped (paved road, power, water supply). The sale of construction parcels is being performed under favorable conditions (the initial price is BAM 20/m² for regulated construction land, in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). 44 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

45 12 Production and Exports of Cucumbers 7% Top 10 municipalities in RS with the highest average production of cucumbers for : Production ratio from top locations with the remaining parts of RS % 12% Top locations Remaining parts of RS 45

46 Laktaši Gradiška Brod Banja Luka Novi Grad Doboj Modriča Šamac Zvornik Bijeljina Remaining parts of RS Production of cucumbers (in tons) in the top 10 municipalities in RS ,073 2,187 4,821 1, ,000 2,000 3,000 4,000 5,000 6,000 Production share of cucumbers in the top 10 municipalites in RS Remaining parts of RS 3% 4% Bijeljina 12% 4% Zvornik 4% Šamac 4% Modriča Doboj 9% Novi Grad 39% Banja Luka Brod 18% Gradiška Laktaši12+ 2%1% *Average annual production of cucumbers in tons for *Share of average production of cucumbers for Aggregation with other locations for cucumbers in BiH The aggregation of other locations with the mapped top locations for cucumbers (the zone that covers a single region is marked on the map with concentric circles) has included municipalities that are located in immediate vicinity, within a circle 75 kilometers in diameter. The locations shown in the table have been added to the existing regions: REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 Novi Grad Banja Luka, Gradiška, Laktaši Brod, Doboj, Modriča, Šamac Bijeljina Zvornik A g g r e g a t i o n Kostajnica, Kozarska Dubica, Prijedor Čelinac, Prnjavor, Srbac Derventa, Odžak, Vukosavlje Lopare, Ugljevik Bratunac, Milići, Osmaci, Šekovići, Vlasenica Region production (in tons) with aggregation and remaining parts of BiH Region production (in tons) with aggregation and remaining parts of RS 13,625 2,355 4,840 2,693 1, ,000 10,000 5,000 0 Remaining parts of BiH Remaining parts of RS REGION 5 REGION 4 REGION 3 REGION 2 REGION ,355 4,840 2,693 1, ,000 2,000 3,000 4,000 5,000 6,000 *Average annual production of cucumbers in tons per regions with added locations and production of the remaining parts of BiH for INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

47 Production regions for cucumbers: R1 R2 R3 R4 R5 Production share of regions Production share of regions with aggregation of cucumbers in BiH with aggregation of cucumbers in RS 3+ 3% 4% REGION 1 6% 5% 9% 11% REGION 2 REGION 3 19% REGION 4 22% 54% 19% REGION 5 Remaining parts of RS 39% 9% Remaining parts of BiH *Share of the average production of cucumbers by regions with added locations (aggregation of locations within a circle 75 kilometers in diameter) for

48 CUCUMBERS REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 Locations Novi Grad, Kostajnica, Kozarska Dubica, Prijedor Banja Luka, Gradiška, Laktaši, Čelinac, Prnjavor, Srbac Brod, Doboj, Modriča, Šamac, Derventa, Odžak, Vukosavlje Bijeljina, Lopare, Ugljevik Zvornik, Bratunac, Milići, Osmaci, Šekovići, Vlasenica Favorable areas for investing -Construction of a distribution center -Plant for production and processing of vegetables -Cold storage for fruit and vegetables Advantages -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH. -The region holds the third place in the production of apples and is amongst the top 10 locations, compared to total production in RS, based on the production of pears, raspberries, cucumbers, cabbage, kale, carrots, and green peppers, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of those crops -Availability of facilities and agricultural land for greenfield and brownfield investments and investments in agricultural production -Agricultural logistics center -Buyout and processing capacities for fruit and vegetables -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH. -At the disposal of the investors, there is the logistics center with comprehensive logistics support (warehousing and cooling) with the option of using administrative premises (Agricultural Zone in Nova Topola). -The international airport in Banja Luka is located in this region, while the vicinity of river Sava renders this location more interesting because of the possibility of water transport connections with Europe -Cold storage -Logistics center -Production and education center: production of vegetables in closed spaces and in the open and the production of green peppers, tomatoes, and cucumber, cornichons -Construction of a distribution center -Processing capacities -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH -Two border crossings of category I are located in the territory of the region (Šamac and Brod), at the distance of 1 kilometer, while railway traffic crosses through the region On the bank of river Sava in Šamac, the commodity and transport center of Luka has been constructed, a port with nodes of land and river transport modes, specifically road transport river transport, and vice versa, which renders the location more interesting because of the possibility of water transport connection with Europe. -Processing capacities for fruit and vegetables -Cultivation and buyout of fruit and vegetables -The region holds the top spot in the production of strawberries, cucumbers, cabbages, green peppers, potatoes, and carrots, compared to total production in RS, and is amongst the 6 leading locations in the production of raspberries and plums, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place) and plums (12th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of that fruit -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices -The region is situated in an attractive geostrategic location on the triple border of Serbia, Croatia, and Republika Srpska, i.e. BiH, and on the crossroads of roads leading to large urban and industrial centers Belgrade, Novi Sad, Inđija, Banja Luka, Šabac, Tuzla, Sarajevo... -Cold storage with deep freeze -Construction of a distribution center -Cultivation and buyout of fruit and vegetables -The region holds the top spot in the production of raspberries and the second position in the production of cucumbers, compared to total production in RS, and is amongst the 6 leading locations in the production of raspberries and plums, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of that fruit. -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices 48 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

49 Incentives -Municipality of Kozarska Dubica has adopted a Decision on the manner of entry of investors into the business zone with discounts that may represent up to 99% of the purchase and sale price of land in the zone. -Municipality of Novi Grad: Incentive for the sector of small and medium enterprises in the area of employment amounts to BAM 65,000. Incentive for agricultural production in the territory of the municipality amounts to BAM 140,000. -Municipality of Prijedor: improvement of fruit production BAM 40,000, production of vegetables and flowers in closed spaces - BAM 50,000, regress for renewal of agricultural machinery - BAM 15,000, support to introduction of irrigation systems with agricultural producers - BAM 20,000, support to the construction of stable facilities and equipment BAM 10,000, support to construction of warehousing facilities and procurement of equipment for fruit production BAM 20, Municipality of Šamac: Incentives for agriculture: Each year, around BAM 90,000 is allocated from the budget, on the basis of the Rulebook on the Conditions for Using and Allocation of Financing for Development of Agriculture and Villages in the Municipality of Šamac. Incentives for the real sector in the amount of BAM 30,000 to 50,000 are envisaged in the budget and are being awarded on the basis of the Rulebook and the Public Invitation on Allocation of Financing for Employment of Unemployed. - -Municipality of Vlasenica: Incentives for agriculture exist in the amount of BAM 80,000 on annual level Net salary BAM (2016) BAM (2016) BAM (2016) BAM (2016) BAM (2016) Labor force at the 11,270 persons 28,096 persons 18,478 persons 14,753 persons 10,871 persons disposal Locations at the disposal (greenfield/ brownfield) -Municipality of Kozarska Dubica is proposing greenfield investments in the construction of plants for the production and processing of agricultural products, cold storages, and all types of servicing facilities and warehouses with various purposes. Joint investments with the objective of modernization and expansion of production capacities of existing enterprises. -Municipality of Gradiška is placing at the disposal capacities of the Agricultural and Industrial Zone of Nova Topola, which has available 125 hectares of land, whose owner is the Municipality of Gradiška, and which possesses the basic infrastructure, such as power supply, water supply, sanitation, access roads. In the area of the Agricultural and Industrial -Municipality of Brod places at the disposal land in the area of 150 hectares, of which 50 hectares are in the ownership of the municipality, where lease of land is possible for the period of 30 years, and 100 hectares are in private ownership with own production. The annual price of lease amounts to BAM 80/ hectare in average. -Municipality of Lopare is putting at the disposal for brownfield investments, production, and buyout of fruit and vegetables land in the ownership of the Municipality of Lopare which is situated in a number of locations: 1. Cadastral Municipality of Mačkovac 2. Cadastral Municipality of Jablanica, neglected land in the area of 50 hectares, which should be brought to its use -Municipality of Bratunac is proposing, for greenfield investments or a joint investment, the industrial zone of Ciglana in the ownership of the Municipality of Bratunac with area size of 3.5 hectares. The process is ongoing for awarding, for long-term lease or transfer of ownership to the future investor, under the conditions that workers are employed. The initial price of the lease of purchase and sale under the Public invitation is BAM 0. 49

50 t is making available 79 hectares of land in the business zone of Lipova Greda, in the ownership of the municipality. Currently, the Southern part of the zone is regulated, in the area of 21 hectares, with the total of 26 parcels envisaged for sale to investors. The size of a parcel may be adjusted to the needs of the investor. Price of land: BAM 9/m² with discount options -Municipality of Novi Grad proposes two locations for brownfield investments, on which all the necessary infrastructure is already present: Location: Svodna Blatna Area: m m 2 Ownership: Municipality Municipality Business opportunity Lease Lease Price: BAM 1.00/m 2 + PDV BAM 1.00/m 2 + PDV -Municipality of Prijedor is proposing greenfield and brownfield investments, and the construction of a distribution center for fruit and vegetables (buyout, warehousing, and sale) a) In case of the distribution center for fruit and vegetables of the region of Prijedor, the investment would cover the adaptation of the existing facility with area of 450 m2 into a facility intended for the warehousing, processing, packaging, and distribution of fruit. Along with the adaptation of the existing facility, the project design envisages the construction of a new facility, 250 m2 in area, for business premises and plants for the finishing of pilot products. Zone of Nova Topola all activities in the value chain may be realized (buyout, processing, value added production, cold storages, warehousing, packaging, and distribution of fruit and vegetables). The land in the zone is exclusively intended for purchase, at the price from BAM 1 to 80 /m² of land. Agricultural and Industrial Zone of Nova Topola has a Regulation Plan. Investing into the zone requires a business plan. Acquisition of the urban planning, construction, and utilization permit, power supply consent, ecological license, and fire protection consent for a facility of 1,000 m² would require BAM 40,000. The period of time necessary for the acquisition of the permits is between 2 and 3 months (much depends on the investor). The assessed cost of constructing a facility in the zone with area size of 1,000 m² is around BAM 100,000 -Municipality of Laktaši is suggesting for greenfield investments the Business Zone of Aleksandrovac, with 28.9 hectares of area of land in the ownership of the Municipality of Laktaši. There are several parcels available for construction with area sizes from 5,000-12,000 m2, at the price of BAM 3/m2. A paved road leads through the middle of the Industrial Zone of Aleksandrovac with street lighting (connecting the zone with the M-16 primary road), power supply, water supply, and telecommunication networks which are installed, and organized waste collection. Road transport infrastructure is present at the location. The municipality Is located 1 kilometer away from the state border with the EU (Croatia), 10 kilometers away from the highway leading from Belgrade to Zagreb, and 50 kilometers away from the railroad and 100 kilometers from the airport -Municipality of Derventa has majority ownership over a separated industrial zone with total area size of around 204 hectares, of which around 84 hectares is unoccupied and earmarked for future development and construction (in a specific part of the industrial zone). Traffic lines have been constructed and paved in the immediate vicinity of the Industrial zone. In the zone itself, the power grid, the water supply and sanitation networks have been constructed, and it would be necessary to construct corresponding connections to new facilities. The sale is being performed through an auction, with the initial prices of BAM 10 KM for m² of land -Municipality of Modriča is proposing projects and presenting three locations that are at disposal: 1) Production and education center, on the area of 20.5 hectares, at the lease price of BAM 100 per hectare per annum 2) Business and entrepreneurial center Jabučik, 6,039 m2 in area, with facilities 286 m2 in area, at the lease price of BAM 2 per m2 of the facility per month 3) Construction of a distribution center, on an area of 1.5 hectares, at the lease price of BAM 100 per hectare per annum 3. Cadastral Municipality of Koraj 1 and Cadastral Municipality of Koraj 2, neglected land in the area of 80 hectares, which should be brought to its use 4.Argicultureal land issued to agricultural producers registered in APIF (land under lease on 230 hectares; price of lease BAM 300 / 1 hectare) Facilities for brownfield investments: 1. Agricultural Cooperative Priboj, former Agricultural Cooperative Ratko Perić Priboj (The cooperative is in bankruptcy proceedings, a portion of facilities has been solved, resolution of property related and legal relations is ongoing) 2. Agricultural Cooperative Dojčin Lukić Lopare (The cooperative is in bankruptcy proceedings, and property related and legal relations have not been resolved) 3. Agricultural Cooperative Bratstvo Koraj (The cooperative is in function and is performing its primary activity for which it is registered, property related and legal relations are resolved, it processes 38 hectares of land) 4. Agricultural Cooperative Agro-Koraj Koraj (The cooperative owns a cold storage, a drying plant, and business premises, and it is dealing exclusively with the buyout of fruit and vegetables) 5. Agricultural Cooperative Agro-Brda Koraj (The cooperative is active in fruit production, of dried plums exclusively, with business premises and a cold storage) -Municipality of Ugljevik is making available for greenfield investments two parcels: 1. Land in the industrial zone of Ugljevik, comprising three individual parcels, with total area of 13,411 m2, in private ownership (which may turn out to be an advantage, as it shortens the procedures of buyout of land), and there are options for purchase and long-term lease. The annual lease of area in the Industrial zone of Ciglana amounts to BAM 0.50 / m². Industrial zone of Ciglana has a power supply network, sanitation and telecommunication networks, while the existing toad in the length of several hundred meters needs to be repaired. The future Industrial Zone of Pobrđe with area size of 40 hectares (currently, agricultural land) is included in the Regulation Plan of the Municipality -Municipality of Vlasenica puts at the disposal of investors the Industrial Zone of KULA-Zeban, for production and cultivation. In the territory of the Municipality there is organized production of raspberries on the area of 30 hectares, plastic greenhouse production and production of fruits (plums, pears, and apples), with the cold storage for raspberries and several smaller drying plants. -The town of Zvornik is making available for greenfield and brownfield investments in the area of hectares of constructed land in the Business Zone of Jadar in the ownership of Republika Srpska and the town of Zvornik, which has the right to manage it. The business zone in Jadar is located in the industrial area of Karakaj and is 4 kilometers away from the center of the town. It is situated immediately next to the border crossing with the function of a commodity customs terminal. I 50 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

51 Within the framework of the adaptation, the facility will be regulated in two parts: the first part would concern chambers for warehousing fruits, with capacity of 4X100 t; the second part would be the operating space in which equipment would be installed for packaging and basic processing of fruit There is a regulation plan adopted, along with the Feasibility Study for the Agricultural Business Park of Aleksandrovac, which plans an expansion of the zone to additional 80 hectares (on the other side of the primary road leading from Banja Luka to Gradiška, and on the transport line connecting that road with the Banja Luka Gradiška highway). -Municipality of Prnjavor is making available for greenfield investments land in the area of 6,340 m², with assessed value of land amounting to EUR 97,248 EUR. Power supply, sanitation, water supply, telecommunications, and an access road are all available on the land. -Municipality of Srbac is proposing, for the purposes of expanding warehousing capacities for the buyout and warehousing of strawberries and berries, wild collection and mushrooms (expansion of a cold storage) a location at the address of 18 Ilićani, with area of 2 hectares, cadastral particle No. 209/2, in the ownership of S.P. Šipurak Dragiša Knežević. Horizontal dimensions of the existing facility (cold storage) are 14.6 x 11 m -Municipality of Šamac has at its disposal the following locations: 1. Facility 1,431 m2 in area, yard 1,000 m2 in area, and meadow 9,109 m2 in area, parcel No. 1211/1, in the ownership of the Municipality of Šamac (the location of the former factory of Hrana Produkt company for processing of vegetables and fruit, i.e. development and entrepreneurial zone), with options to purchase or lease the premises. The price of lease of the premises is BAM 1 per m2 at the minimum, and 2. Capacities on the location of the Industrial and Business Zone of Šamac (in the vicinity of the border crossing with the Republic of Croatia). For any information please contact the address of the Municipal Administration of Šamac. The proposed locations are equipped with developed infrastructure, there are power supply, water supply, sanitation, telecommunications, roads 2. Land in municipal ownership, which is located in the immediate vicinity of the center of Ugljevik, a couple of hundred meters from the M-18 Primary road and the R-459 regional road. Two connected parcels, with areas of 16,244 m2 and 19,847 m2. The parcels are currently recorded as agricultural land, and water and power networks have been extended to the parcels. -The city of Bijeljina is proposing for a greenfield investment industrial zones in the ownership of the City of Bijeljina, which are intended for the construction of industrial, production and processing capacities, small entrepreneurship, and servicing crafts: 1) Industrial zone hectares (44 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The infrastructure is in the phase of construction. The sales price of construction parcels ranges from BAM /m² (Sub-zone 1 BAM 30 /m², Sub-zone 2 BAM 15 /m², Sub-zone 3 BAM 10 /m²), in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). 2) Industrial zone 3 22 hectares (3.75 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The industrial zone is fully equipped (paved road, power, water supply). The sale of construction parcels is being performed under favorable conditions (the initial price is BAM 20/m² for regulated construction land, in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). It leans on M19 and M4 primary roads and the loading station on the international railroad connecting the Republic of Serbia with Zvornik and then Tuzla 51

52 31 Production and Exports of Potatoes Top 10 municipalities in RS with the highest average production of potatoes for : Production ratio from top locations with the remaining parts of RS % 31% Top locations Remaining parts of RS 52 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

53 Modriča Teslić Vlasenica Kneževo Doboj Nevesinje Laktaši Banja Luka Gradiška Bijeljina Remaining parts of RS Production of potatoes (in tons) in the top 10 municipalities in RS 3,617 3,900 3,929 4,585 6,072 6,618 15,120 16,230 17,762 22,956 44, ,000 20,000 30,000 40,000 50,000 Production share of potatoes in the top 10 municipalites in RS 31+ 3% 2% Remaining parts of RS 3% Bijeljina 3% 4% Gradiška Banja Luka 5% 31% Laktaši Nevesinje 10% Doboj Kneževo 11% 16% Vlasenica Teslić 12% Modriča *Average annual production of potatoes in tons for *Share of average production of potatoes for Aggregation with other locations for potatoes in BiH The aggregation of other locations with the mapped top locations for potatoes (the zone that covers a single region is marked on the map with concentric circles) has included municipalities that are located in immediate vicinity, within a circle 75 kilometers in diameter. The locations shown in the table have been added to the existing regions: REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 Banja Luka, Gradiška, Kneževo, Laktaši Doboj, Modriča, Teslić Bijeljina Vlasenica Nevesinje Aggregation Čelinac, Kotor Varoš, Prnjavor, Srbac Šamac, Tešanj, Usora, Vukosavlje Lopare, Ugljevik LHan Pijesak, Milići, Šekovići Berkovići Region production (in tons) with aggregation and remaining parts of BiH Region production (in tons) with aggregation and remaining parts of RS 236,174 6,998 5,397 24,657 16,677 57,653 Remaining parts of BiH Remaining parts of RS REGION 5 REGION 4 REGION 3 REGION 2 REGION 1 35,380 6,998 5,397 24,657 16,677 57, , , ,000 40,000 60,000 80,000 *Average annual production of potatoes in tons by regions with added locations and production for the remaining parts of BiH for

54 Production regions for potatoes: R1 R2 R3 R4 R5 Production share of regions Production share of regions 17+ with aggregation of potatoes in BiH with aggregation of potatoes in RS REGION 1 17% REGION 2 24% REGION 3 5% 39% REGION 4 7% 5% REGION 5 1% 4% 68% 2% Remaining parts of RS 17% 11% Remaining parts of BiH *Share of average production of potatoes by regions with added locations (aggregation in the circle 75 kilometers in diameter) for INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

55 POTATOES REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 Locations Banja Luka, Gradiška, Kneževo, Laktaši, Čelinac, Kotor Varoš, Prnjavor, Srbac Doboj, Modriča, Teslić, Šamac, Tešanj, Usora, Vukosavlje Bijeljina, Lopare, Ugljevik Vlasenica, Han Pijesak, Milići, Šekovići Nevesinje, Berkovići Favorable areas for investing -Agricultural logistics center -Processing capacities -Equipping an existing agricultural industrial center -Buyout and processing capacities for fruit and vegetables -Expansion of capacities of tables for washing and sorting Advantages -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) -At the disposal of the investors, there is the logistics center with comprehensive logistics support (warehousing and cooling) with the option of using administrative premises (Agricultural Zone in Nova Topola) -This region holds the number one spot in the production of plums, apples, and pears, and the second place in RS based on the production of strawberries and potatoes -The region is counted amongst the 5 leading producers of high quality agricultural products made from fruit and vegetables, such as carrots, cabbage, green peppers, cucumbers, for which recent years have seen a trend of increase in demand -Cold storage -Logistics center -Construction of a distribution center -Processing capacities -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH, which, along with the production capacities, represents an ideal location for the construction of a distribution center, cold storages, and processing capacities with competitive costs of transport of products in a single day to the markets of any European destination, as well as deliveries into the markets of Russia, Turkey, and the Near East. -Border crossing of category I is located in the territory of the region (Šamac), while rail transport passes through the region. -On the bank of river Sava in Šamac, the commodity and transport center of Luka has been constructed, a port with nodes of land and river transport modes, specifically road transport river transport, and vice versa, which renders the location more interesting because of the possibility of water transport connection with Europe -Processing capacities for fruit and vegetables -Cultivation and buyout of fruit and vegetables -The region holds the top spot in the production of strawberries, cucumbers, cabbages, green peppers, potatoes, and carrots, compared to total production in RS, and is amongst the 6 leading locations in the production of raspberries and plums, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place) and plums (12th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of that fruit -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices -The region is situated in an attractive geostrategic location on the triple border of Serbia, Croatia, and Republika Srpska, i.e. BiH, and on the crossroads of roads leading to large urban and industrial centers Belgrade, Novi Sad, Inđija, Banja Luka, Šabac, Tuzla, Sarajevo... -Cold storage with deep freeze -Cultivation and buyout of fruit and vegetables -Drying plants and processing capacities for fruit and vegetables -Natural, relief based, and climatic conditions, as well as the composition and the quality of soil, represent the basic comparative advantage in the production of potatoes for the entire region -Abundance of fertile uncultivated and unpolluted land with favorable natural and climatic conditions, excellent soil quality, longer seasons of growth / production, and enormous wealth of crystal clear water streams, opens possibilities for investors for high quality agricultural production with low operating costs. -The M-19 primary road crosses through the region, connecting Sarajevo and Belgrade -Processing capacities for fruit and vegetables -Buyout and additional processing of ware potatoes (the Project would cover the production of potatoes by agricultural producers through cooperative relations with the project implementer and the development of the buyout and additional processing center that would perform warehousing, selection, packaging, and sale) -The region is located in an area with simple access (50 to 80 kilometers) to the market of Montenegro and the Adriatic Sea and the Port of Ploče (Croatia/EU), the border belt with Croatia (EU), a position on the European highways E73 and E65 and the border crossing of Bijača -This region holds the second place based on the production of carrots and the 5th place in the production of potatoes compared to the total volume of production in RS. -Mediterranean climate and high quality soil facilitate the cultivation of early spring vegetables (cabbage, ware potatoes) that are sold in the market with a high margin and for which the demand in the EU has been growing constantly in the last couple of years. 55

56 Incentives - -Municipality of Šamac: Incentives for agriculture: Each year, around BAM 90,000 is allocated from the budget, on the basis of the Rulebook on the Conditions for Using and Allocation of Financing for Development of Agriculture and Villages in the Municipality of Šamac. Incentives for the real sector in the amount of BAM 30,000 to 50,000 are envisaged in the budget and are being awarded on the basis of the Rulebook and the Public Invitation on Allocation of Financing for Employment of Unemployed - -Municipality of Vlasenica: Incentives for agriculture exist in the amount of BAM 80,000 on annual level Net salary BAM (2016) BAM (2016) BAM (2016) BAM (2016) BAM (2016) - Labor force at the disposal 32,135 persons 23,900 persons 14,753 persons 3,783 persons 2,887 persons Locations at the disposal (greenfield/ brownfield) -Municipality of Gradiška is placing at the disposal capacities of the Agricultural and Industrial Zone of Nova Topola, which has available 125 hectares of land, whose owner is the Municipality of Gradiška, and which possesses the basic infrastructure, such as power supply, water supply, sanitation, access roads. In the area of the Agricultural and Industrial Zone of Nova Topola all activities in the value chain may be realized (buyout, processing, value added production, cold storages, warehousing, packaging, and distribution of fruit and vegetables). The land in the zone is exclusively intended for purchase, at the price from BAM 1 to 80 / m² of land. Agricultural and Industrial Zone of Nova Topola has a Regulation Plan. Investing into the zone requires a business plan. -Municipality of Modriča is proposing projects and presenting three locations that are at disposal: 1) Production and education center, on the area of 20.5 hectares, at the lease price of BAM 100 per hectare per annum 2) Business and entrepreneurial center Jabučik, 6,039 m2 in area, with facilities 286 m2 in area, at the lease price of BAM 2 per m2 of the facility per month 3) Construction of a distribution center, on an area of 1.5 hectares, at the lease price of BAM 100 per hectare per annum - Municipality of Šamac has at its disposal the following locations: 1. Facility 1,431 m2 in area, yard 1,000 m2 in area, and meadow 9,109 m2 in area, parcel No. 1211/1, in the ownership of the Municipality of Šamac (the location of the former factory of Hrana Produkt company for processing of vegetables and fruit, i.e. development and entrepreneurial zone), with options to purchase or lease the premises. The price of lease of the premises is BAM 1 per m2 at the minimum, and -Municipality of Lopare is putting at the disposal for brownfield investments, production, and buyout of fruit and vegetables land in the ownership of the Municipality of Lopare which is situated in a number of locations: 1. Cadastral Municipality of Mačkovac 2. Cadastral Municipality of Jablanica, neglected land in the area of 50 hectares, which should be brought to its use 3. Cadastral Municipality of Koraj 1 and Cadastral Municipality of Koraj 2, neglected land in the area of 80 hectares, which should be brought to its use 4.Argicultureal land issued to agricultural producers registered in APIF (land under lease on 230 hectares; price of lease BAM 300 / 1 hectare) Facilities for brownfield investments: 1. Agricultural Cooperative Priboj, former Agricultural Cooperative Ratko Perić Priboj (The cooperative is in bankruptcy proceedings, a portion of facilities has been solved, resolution of property related and legal relations is ongoing) 2. Agricultural Cooperative Dojčin Lukić Lopare (The cooperative is in bankruptcy proceedings, and property related and legal relations have not been resolved) -Municipality of Vlasenica puts at the disposal of investors the Industrial Zone of KULA- Zeban, for production and cultivation. In the territory of the Municipality there is organized production of raspberries on the area of 30 hectares, plastic greenhouse production and production of fruits (plums, pears, and apples), with the cold storage for raspberries and several smaller drying plants. -Municipality of Han Pijesak has at its disposal its own agricultural land, which it is making available for -Municipality of Berkovići is providing, for greenfield investments, the Business zone of Viduša, in the ownership of the Municipality of Berkovići. The infrastructure of the business zone is yet to be regulated. There is an adopted Physical Space Regulation Plan of the Municipality of Berkovići and the Regulation Plan of the Business Zone of Viduša. The municipality expressed its need for investments in processing capacities, taking into account that currently there is only production in individual areas, in the absence of processing capacities, cold storages, and drying plants. 56 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

57 Acquisition of the urban planning, construction, and utilization permit, power supply consent, ecological license, and fire protection consent for a facility of 1,000 m² would require BAM 40,000. The period of time necessary for the acquisition of the permits is between 2 and 3 months (much depends on the investor). The assessed cost of constructing a facility in the zone with area size of 1,000 m² is around BAM 100,000 -Municipality of Laktaši is suggesting for greenfield investments the Business Zone of Aleksandrovac, with 28.9 hectares of area of land in the ownership of the Municipality of Laktaši. There are several parcels available for construction with area sizes from 5,000-12,000 m2, at the price of BAM 3/m2. A paved road leads through the middle of the Industrial Zone of Aleksandrovac with street lighting (connecting the zone with the M-16 primary road), power supply, water supply, and telecommunication networks which are installed, and organized waste collection. There is a regulation plan adopted, along with the Feasibility Study for the Agricultural Business Park of Aleksandrovac, which plans an expansion of the zone to additional 80 hectares (on the other side of the primary road leading from Banja Luka to Gradiška, and on the transport line connecting that road with the Banja Luka Gradiška highway). -Municipality of Prnjavor is making available for greenfield investments land in the area of 6,340 m², with assessed value of land amounting to EUR 97,248 EUR. Power supply, sanitation, water supply, telecommunications, and an access road are all available on the land. -Municipality of Srbac is proposing, for the purposes of expanding warehousing capacities for the buyout and warehousing of strawberries and berries, wild collection and mushrooms (expansion of a cold storage) a location at the address of 18 Ilićani, with area of 2 hectares, cadastral particle No. 209/2, in the ownership of S.P. Šipurak Dragiša Knežević. Horizontal dimensions of the existing facility (cold storage) are 14.6 x 11 m 2. Capacities on the location of the Industrial and Business Zone of Šamac (in the vicinity of the border crossing with the Republic of Croatia). For any information please contact the address of the Municipal Administration of Šamac. The proposed locations are equipped with developed infrastructure, there are power supply, water supply, sanitation, telecommunications, roads - Municipality of Teslić is proposing for a greenfield investment and production and buyout of products a location of 12 hectares in area in the Business Zone of Lanara, which is a greenfield zone, in the ownership of the Municipality of Teslić. The land can be bought or taken under long-term lease with the right to construct on the land. Total assessed costs (land, lease fee, regulation) amount to around BAM 105 /m² net of construction area that could be reduced depending on the number of employees and other parameters. New infrastructure is constructed in the zone, comprising water supply, sanitation, telephone, transmission lines for the voltage levels of 10 kv, as well as a paved road. The infrastructure in the zone was constructed by the Municipality and the user pays for it within the framework of the compensation for the regulation of construction land. The costs of connection to specific infrastructure depend on the type of facility and its specific demands 3. Agricultural Cooperative Bratstvo Koraj (The cooperative is in function and is performing its primary activity for which it is registered, property related and legal relations are resolved, it processes 38 hectares of land) 4. Agricultural Cooperative Agro-Koraj Koraj (The cooperative owns a cold storage, a drying plant, and business premises, and it is dealing exclusively with the buyout of fruit and vegetables) 5. Agricultural Cooperative Agro-Brda Koraj (The cooperative is active in fruit production, of dried plums exclusively, with business premises and a cold storage) -Municipality of Ugljevik is making available for greenfield investments two parcels: 1. Land in the industrial zone of Ugljevik, comprising three individual parcels, with total area of 13,411 m2, in private ownership (which may turn out to be an advantage, as it shortens the procedures of buyout of land), and there are options for purchase and long-term lease. 2. Land in municipal ownership, which is located in the immediate vicinity of the center of Ugljevik, a couple of hundred meters from the M-18 Primary road and the R-459 regional road. Two connected parcels, with areas of 16,244 m2 and 19,847 m2. The parcels are currently recorded as agricultural land, and water and power networks have been extended to the parcels. - The city of Bijeljina is proposing for a greenfield investment industrial zones in the ownership of the City of Bijeljina, which are intended for the construction of industrial, production and processing capacities, small entrepreneurship, and servicing crafts: 1) Industrial zone hectares (44 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The infrastructure is in the phase of construction. The sales price of construction parcels ranges from BAM /m² (Sub-zone 1 BAM 30 /m², Sub-zone 2 BAM 15 /m², Sub-zone 3 BAM 10 /m²), in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). 2) Industrial zone 3 22 hectares (3.75 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The industrial zone is fully equipped (paved road, power, water supply). The sale of construction parcels is being performed under favorable conditions (the initial price is BAM 20/m² for regulated construction land, in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). greenfield investments, as well as abandoned facilities for brownfield investments, in order to establish capacities for systemic production of potatoes, cultivation and establishment of new parcels, and construction of cooling capacities, procurement of equipment sorting line and packaging line for potatoes, and to develop the production of berry fruit -Municipality of Šekovići is making available two locations for lease: Bišina barracks, with area size of 2,000 m2, in the ownership of the Municipality of Šekovići, which can be leased at the price of BAM 3 per m2. It owns its own water course, its own power substation, its sanitation, and the access road is gravel in the length of 7 kilometers. The facility of the old primary school in Papraća, with area size of 500 m2, in the ownership of the Serbian Orthodox Church, may be leased at the price of BAM 3 / m2. It has connections to the power grid, the sanitation network, and the access road is the Capade Šekovići Tišča regional road. -Municipality of Nevesinje has available for greenfield investments and buyout of fruit and vegetables land in the industrial zone of Kilavci, with total area size of 3 hectares in the ownership of the Municipality. Purchase is possible through a public auction with the initial price of around BAM 10, depending on the zone in which the location is. In the majority of locations in the industrial zone, the necessary infrastructure is already ensured. The Physical Space Regulation Plan of the Municipality was adopted in 2015, while the Industrial Zone of Kilavci also has an adopted Regulation Plan 57

58 14 Production and Exports of Cabbage and Kale 73,293 Top 10 municipalities in RS with the highest average production of cabbage and kale for : Production ratio from top locations with the remaining parts of RS % 14% Top locations Remaining parts of RS 58 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

59 Doboj Nevesinje Novi Grad Zvornik Modriča Banja Luka Šamac Laktaši Gradiška Bijeljina Remaining parts of RS Production of cabbages (in tons) in the top 10 municipalities in RS ,196 1,508 1,994 2,505 2,677 5,038 8,680 4, ,000 4,000 6,000 8,000 10,000 Production share of cabbages in the top 10 municipalites in RS 14+ 3% 2% Remaining parts of RS 3% Bijeljina 4% 14% Gradiška 5% Laktaši 6% Šamac Banja Luka 8% Modriča 29% Zvornik 9% Novi Grad Nevesinje 17% Doboj *Average annual production of cabbage and kale in tons for * Share of average annual production of cabbage and kale for Aggregation with other locations for cabbage and kale in BiH The aggregation of other locations with the mapped top locations for cabbage (the zone that covers a single region is marked on the map with concentric circles) has included municipalities that are located in immediate vicinity, within a circle 75 kilometers in diameter. The locations shown in the table have been added to the existing regions: REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 REGION 6 Novi Grad Čelinac, Prnjavor, Srbac Doboj, Modriča, Šamac Bijeljina Zvornik Nevesinje Kostajnica, Kozarska Dubica, Prijedor Banja Luka, Čelinac, Prnjavor Derventa, Odžak, Vukosavlje Aggregation Lopare, Ugljevik Milići, Osmaci, Šekovići, Vlasenica Berkovići Region production (in tons) with aggregation and remaining parts of BiH Region production (in tons) with aggregation and remaining parts of RS 35, ,280 8,726 6,980 10,081 1,249 40,000 30,000 20,000 10,000 0 Remaining parts of BiH Remaining parts of RS REGION 6 REGION 5 REGION 4 REGION 3 REGION 2 REGION 1 3, ,280 8,726 6,980 10,081 1, ,000 4,000 6,000 8,000 10,000 12,000 *The average annual production of cabbage and kale in tons by regions with added locations and production for the remaining part of BiH for

60 Production regions for cabbage and kale: R1 R2 R3 R4 R5 R6 Production share of regions 2+ with aggregation of cabbages in BiH 2% 16% 11% 55% 13% 1% 2% REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 REGION 6 Remaining parts of RS Remaining parts of BiH Production share of regions with aggregation of cabbages in RS 2% 10% 4% 27% 4% 22% 31% *The share of average production of cabbage-kale by regions with added locations (aggregation of locations in the circle with up to 75 kilometers in diameter) for INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

61 CABBAGE AND KALE REGION 1 REGION 2 REGION 3 REGION 4 Locations Novi Grad, Kostajnica, Kozarska Dubica, Prijedor Banja Luka, Gradiška, Laktaši, Čelinac, Prnjavor, Srbac Favorable areas for investing -Construction of a distribution center -Plant for production and processing of vegetables -Cold storage for fruit and vegetables Advantages -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH. -The region holds the third place in the production of apples and is amongst the top 10 locations, compared to total production in RS, based on the production of pears, raspberries, cucumbers, cabbage, kale, carrots, and green peppers, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of those crops -Availability of facilities and agricultural land for greenfield and brownfield investments and investments in agricultural production -Municipality of Kozarska Dubica has adopted a Decision on the manner of entry of investors into the business zone with discounts that may represent up to 99% of the purchase and sale price of land in the zone. -Municipality of Novi Grad: Incentive for the sector of small and medium enterprises in the area of employment amounts to BAM 65,000. Incentive for agricultural production in the territory of the municipality amounts to BAM 140,000. -Municipality of Prijedor: improvement of fruit production BAM 40,000, production of vegetables and flowers in closed spaces - BAM 50,000, regress for renewal of agricultural machinery - BAM 15,000, support to introduction of irrigation systems with agricultural producers - BAM 20,000, support to the construction of stable facilities and equipment BAM 10,000, support to construction of warehousing facilities and procurement of equipment for fruit production BAM 20,000 -Agricultural logistics center -Buyout and processing capacities for fruit and vegetables -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH. -At the disposal of the investors, there is the logistics center with comprehensive logistics support (warehousing and cooling) with the option of using administrative premises (Agricultural Zone in Nova Topola). -The international airport in Banja Luka is located in this region, while the vicinity of river Sava renders this location more interesting because of the possibility of water transport connections with Europe Doboj, Modriča, Šamac, Derventa, Odžak, Vukosavlje -Cold storage -Logistics center - Production and education center: production of vegetables in closed spaces and in the open and the production of green peppers, tomatoes, and cucumber, cornichons -Construction of a distribution center -Processing capacities -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH -Two border crossings of category I are located in the territory of the region (Šamac and Brod), at the distance of 1 kilometer, while railway traffic crosses through the region -On the bank of river Sava in Šamac, the commodity and transport center of Luka has been constructed, a port with nodes of land and river transport modes, specifically road transport river transport, and vice versa, which renders the location more interesting because of the possibility of water transport connection with Europe. Bijeljina, Lopare, Ugljevik -Processing capacities for fruit and vegetables -Cultivation and buyout of fruit and vegetables -The region holds the top spot in the production of raspberries and the second position in the production of cucumbers, compared to total production in RS, and is amongst the 6 leading locations in the production of raspberries and plums, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place) and plums (12th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of that fruit -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices -The region is situated in an attractive geostrategic location on the triple border of Serbia, Croatia, and Republika Srpska, i.e. BiH, and on the crossroads of roads leading to large urban and industrial centers Belgrade, Novi Sad, Inđija, Banja Luka, Šabac, Tuzla, Sarajevo... 61

62 Incentives -Municipality of Kozarska Dubica has adopted a Decision on the manner of entry of investors into the business zone with discounts that may represent up to 99% of the purchase and sale price of land in the zone. -Municipality of Novi Grad: Incentive for the sector of small and medium enterprises in the area of employment amounts to BAM 65,000. Incentive for agricultural production in the territory of the municipality amounts to BAM 140,000. -Municipality of Prijedor: improvement of fruit production BAM 40,000, production of vegetables and flowers in closed spaces - BAM 50,000, regress for renewal of agricultural machinery - BAM 15,000, support to introduction of irrigation systems with agricultural producers - BAM 20,000, support to the construction of stable facilities and equipment BAM 10,000, support to construction of warehousing facilities and procurement of equipment for fruit production BAM 20, Municipality of Šamac: Incentives for agriculture: Each year, around BAM 90,000 is allocated from the budget, on the basis of the Rulebook on the Conditions for Using and Allocation of Financing for Development of Agriculture and Villages in the Municipality of Šamac. Incentives for the real sector in the amount of BAM 30,000 to 50,000 are envisaged in the budget and are being awarded on the basis of the Rulebook and the Public Invitation on Allocation of Financing for Employment of Unemployed. Net salary BAM (2016) BAM (2016) BAM (2016) BAM (2016) - Labor force at the disposal 11,270 persons 28,096 persons 18,478 persons 14,753 persons Locations at the disposal (greenfield/ brownfield) -Municipality of Kozarska Dubica is proposing greenfield investments in the construction of plants for the production and processing of agricultural products, cold storages, and all types of servicing facilities and warehouses with various purposes. Joint investments with the objective of modernization and expansion of production capacities of existing enterprises. It is making available 79 hectares of land in the business zone of Lipova Greda, in the ownership of the municipality. Currently, the Southern part of the zone is regulated, in the area of 21 hectares, with the total of 26 parcels envisaged for sale to investors. The size of a parcel may be adjusted to the needs of the investor. Price of land: BAM 9/m² with discount options -Municipality of Novi Grad proposes two locations for brownfield investments, on which all the necessary infrastructure is already present: Location: Svodna Blatna Area: m m 2 Ownership: Municipality Municipality Business opportunity Lease Lease Price: BAM 1.00/m 2 + PDV BAM 1.00/m 2 + PDV - Municipality of Gradiška is placing at the disposal capacities of the Agricultural and Industrial Zone of Nova Topola, which has available 125 hectares of land, whose owner is the Municipality of Gradiška, and which possesses the basic infrastructure, such as power supply, water supply, sanitation, access roads. In the area of the Agricultural and Industrial Zone of Nova Topola all activities in the value chain may be realized (buyout, processing, value added production, cold storages, warehousing, packaging, and distribution of fruit and vegetables). The land in the zone is exclusively intended for purchase, at the price from BAM 1 to 80 /m² of land. Agricultural and Industrial Zone of Nova Topola has a Regulation Plan. Investing into the zone requires a business plan. Acquisition of the urban planning, construction, and utilization permit, power supply consent, ecological license, and fire protection consent for a facility of 1,000 m² would require BAM 40,000. T - Municipality of Brod places at the disposal land in the area of 150 hectares, of which 50 hectares are in the ownership of the municipality, where lease of land is possible for the period of 30 years, and 100 hectares are in private ownership with own production. The annual price of lease amounts to BAM 80/ hectare in average. Road transport infrastructure is present at the location. The municipality Is located 1 kilometer away from the state border with the EU (Croatia), 10 kilometers away from the highway leading from Belgrade to Zagreb, and 50 kilometers away from the railroad and 100 kilometers from the airport -Municipality of Derventa has majority ownership over a separated industrial zone with total area size of around 204 hectares, of which around 84 hectares is unoccupied and earmarked for future development and construction (in a specific part of the industrial zone). -Municipality of Lopare is putting at the disposal for brownfield investments, production, and buyout of fruit and vegetables land in the ownership of the Municipality of Lopare which is situated in a number of locations: 1. Cadastral Municipality of Mačkovac 2. Cadastral Municipality of Jablanica, neglected land in the area of 50 hectares, which should be brought to its use 3. Cadastral Municipality of Koraj 1 and Cadastral Municipality of Koraj 2, neglected land in the area of 80 hectares, which should be brought to its use 4. Argicultureal land issued to agricultural producers registered in APIF (land under lease on 230 hectares; price of lease BAM 300 / 1 hectare) Facilities for brownfield investments: 1. Agricultural Cooperative Priboj, former 62 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

63 -Municipality of Prijedor is proposing greenfield and brownfield investments, and the construction of a distribution center for fruit and vegetables (buyout, warehousing, and sale) a) In case of the distribution center for fruit and vegetables of the region of Prijedor, the investment would cover the adaptation of the existing facility with area of 450 m2 into a facility intended for the warehousing, processing, packaging, and distribution of fruit. Along with the adaptation of the existing facility, the project design envisages the construction of a new facility, 250 m2 in area, for business premises and plants for the finishing of pilot products. Within the framework of the adaptation, the facility will be regulated in two parts: the first part would concern chambers for warehousing fruits, with capacity of 4X100 t; the second part would be the operating space in which equipment would be installed for packaging and basic processing of fruit he period of time necessary for the acquisition of the permits is between 2 and 3 months (much depends on the investor). The assessed cost of constructing a facility in the zone with area size of 1,000 m² is around BAM 100,000 - Municipality of Laktaši is suggesting for greenfield investments the Business Zone of Aleksandrovac, with 28.9 hectares of area of land in the ownership of the Municipality of Laktaši. There are several parcels available for construction with area sizes from 5,000-12,000 m2, at the price of BAM 3/m2. A paved road leads through the middle of the Industrial Zone of Aleksandrovac with street lighting (connecting the zone with the M-16 primary road), power supply, water supply, and telecommunication networks which are installed, and organized waste collection. There is a regulation plan adopted, along with the Feasibility Study for the Agricultural Business Park of Aleksandrovac, which plans an expansion of the zone to additional 80 hectares (on the other side of the primary road leading from Banja Luka to Gradiška, and on the transport line connecting that road with the Banja Luka Gradiška highway). -Municipality of Prnjavor is making available for greenfield investments land in the area of 6,340 m², with assessed value of land amounting to EUR 97,248 EUR. Power supply, sanitation, water supply, telecommunications, and an access road are all available on the land. -Municipality of Srbac is proposing, for the purposes of expanding warehousing capacities for the buyout and warehousing of strawberries and berries, wild collection and mushrooms (expansion of a cold storage) a location at the address of 18 Ilićani, with area of 2 hectares, cadastral particle No. 209/2, in the ownership of S.P. Šipurak Dragiša Knežević. Horizontal dimensions of the existing facility (cold storage) are 14.6 x 11 m. Traffic lines have been constructed and paved in the immediate vicinity of the Industrial zone. In the zone itself, the power grid, the water supply and sanitation networks have been constructed, and it would be necessary to construct corresponding connections to new facilities. The sale is being performed through an auction, with the initial prices of BAM 10 KM for m² of land -Municipality of Modriča is proposing projects and presenting three locations that are at disposal: 1) Production and education center, on the area of 20.5 hectares, at the lease price of BAM 100 per hectare per annum 2) Business and entrepreneurial center Jabučik, 6,039 m2 in area, with facilities 286 m2 in area, at the lease price of BAM 2 per m2 of the facility per month 3) Construction of a distribution center, on an area of 1.5 hectares, at the lease price of BAM 100 per hectare per annum - Municipality of Šamac has at its disposal the following locations: 1. Facility 1,431 m2 in area, yard 1,000 m2 in area, and meadow 9,109 m2 in area, parcel No. 1211/1, in the ownership of the Municipality of Šamac (the location of the former factory of Hrana Produkt company for processing of vegetables and fruit, i.e. development and entrepreneurial zone), with options to purchase or lease the premises. The price of lease of the premises is BAM 1 per m2 at the minimum, and 2. Capacities on the location of the Industrial and Business Zone of Šamac (in the vicinity of the border crossing with the Republic of Croatia). For any information please contact the address of the Municipal Administration of Šamac. The proposed locations are equipped with developed infrastructure, there are power supply, water supply, sanitation, telecommunications, roads Agricultural Cooperative Ratko Perić Priboj (The cooperative is in bankruptcy proceedings, a portion of facilities has been solved, resolution of property related and legal relations is ongoing) 2. Agricultural Cooperative Dojčin Lukić Lopare (The cooperative is in bankruptcy proceedings, and property related and legal relations have not been resolved) 3. Agricultural Cooperative Bratstvo Koraj (The cooperative is in function and is performing its primary activity for which it is registered, property related and legal relations are resolved, it processes 38 hectares of land) 4. Agricultural Cooperative Agro-Koraj Koraj (The cooperative owns a cold storage, a drying plant, and business premises, and it is dealing exclusively with the buyout of fruit and vegetables) 5. Agricultural Cooperative Agro-Brda Koraj (The cooperative is active in fruit production, of dried plums exclusively, with business premises and a cold storage) -Municipality of Ugljevik is making available for greenfield investments two parcels: 1. Land in the industrial zone of Ugljevik, comprising three individual parcels, with total area of 13,411 m2, in private ownership (which may turn out to be an advantage, as it shortens the procedures of buyout of land), and there are options for purchase and long-term lease. 2. Land in municipal ownership, which is located in the immediate vicinity of the center of Ugljevik, a couple of hundred meters from the M-18 Primary road and the R-459 regional road. Two connected parcels, with areas of 16,244 m2 and 19,847 m2. The parcels are currently recorded as agricultural land, and water and power networks have been extended to the parcels. -The city of Bijeljina is proposing for a greenfield investment industrial zones in the ownership of the City of Bijeljina, which are intended for the construction of industrial, production and processing capacities, small entrepreneurship, and servicing crafts: 1) Industrial zone hectares (44 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The infrastructure is in the phase of construction. The sales price of construction parcels ranges from BAM / m² (Sub-zone 1 BAM 30 /m², Sub-zone 2 BAM 15 /m², Sub-zone 3 BAM 10 /m²), in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). 2) Industrial zone 3 22 hectares (3.75 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The industrial zone is fully equipped (paved road, power, water supply). The sale of construction parcels is being performed under favorable conditions (the initial price is BAM 20/m² for regulated construction land, in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). 63

64 CABBAGE AND KALE REGION 5 REGION 6 Locations Zvornik, Milići, Osmaci, Šekovići, Vlasenica Nevesinje, Berkovići Favorable areas for investing -Cold storage with deep freeze -Construction of a distribution center -Cultivation and buyout of fruit and vegetables -Processing capacities for fruit and vegetables - Buyout and additional processing of ware potatoes (the Project would cover the production of potatoes by agricultural producers through cooperative relations with the project implementer and the development of the buyout and additional processing center that would perform warehousing, selection, packaging, and sale) Advantages Advantages -This region holds the number one spot in the production of raspberries and the second place in the production of cucumbers compared to the total volume of production in RS, for which Bosnia and Herzegovina is ranked highly on the global list of countries based on production of raspberries (11th position), with the average market price in BiH being the lowest of the 10 countries with the highest volume of production of that fruit. -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices Incentives -Municipality of Vlasenica: Incentives for agriculture exist in the amount of BAM 80,000 on annual level -The region is located in an area with simple access (50 to 80 kilometers) to the market of Montenegro and the Adriatic Sea and the Port of Ploče (Croatia/EU), the border belt with Croatia (EU), a position on the European highways E73 and E65 and the border crossing of Bijača -This region holds the second rank in the production of carrots and the fifth place in the production of potatoes compared to the total volume of production in RS. -Mediterranean climate and high quality soil facilitate the cultivation of early spring vegetables (cabbage, ware potatoes) which are sold in the market with a high margin and for which the demand in the EU has been growing continuously in the last couple of years. Net salary BAM (2016) BAM (2016) Labor force at the disposal 10,871 persons 2,887 persons Locations at the disposal (greenfield/ brownfield) - Municipality of Vlasenica puts at the disposal of investors the Industrial Zone of KULA-Zeban, for production and cultivation. In the territory of the Municipality there is organized production of raspberries on the area of 30 hectares, plastic greenhouse production and production of fruits (plums, pears, and apples), with the cold storage for raspberries and several smaller drying plants. -The town of Zvornik is making available for greenfield and brownfield investments in the area of hectares of constructed land in the Business Zone of Jadar in the ownership of Republika Srpska and the town of Zvornik, which has the right to manage it. The business zone in Jadar is located in the industrial area of Karakaj and is 4 kilometers away from the center of the town. It is situated immediately next to the border crossing with the function of a commodity customs terminal. It leans on M19 and M4 primary roads and the loading station on the international railroad connecting the Republic of Serbia with Zvornik and then Tuzla -Municipality of Berkovići is providing, for greenfield investments, the Business zone of Viduša, in the ownership of the Municipality of Berkovići. The infrastructure of the business zone is yet to be regulated. There is an adopted Physical Space Regulation Plan of the Municipality of Berkovići and the Regulation Plan of the Business Zone of Viduša. The municipality expressed its need for investments in processing capacities, taking into account that currently there is only production in individual areas, in the absence of processing capacities, cold storages, and drying plants. - Municipality of Nevesinje has available for greenfield investments and buyout of fruit and vegetables land in the industrial zone of Kilavci, with total area size of 3 hectares in the ownership of the Municipality. Purchase is possible through a public auction with the initial price of around BAM 10, depending on the zone in which the location is. In the majority of locations in the industrial zone, the necessary infrastructure is already ensured. The Physical Space Regulation Plan of the Municipality was adopted in 2015, while the Industrial Zone of Kilavci also has an adopted Regulation Plan 64 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

65 8 Production and Exports of Green Peppers 1 Top 10 municipalities in RS with the highest average production of green peppers for : Production ratio from top locations with the remaining parts of RS % 8% Top locations Remaining parts of RS 65

66 Zvornik Kozarska Dubica Berkovići Novi Grad Modriča Doboj Banja Luka Gradiška Šamac Bijeljina Remaining parts of RS Production of cabbages (in tons) in the top 10 municipalities in RS ,011 2,490 12,912 1, ,000 4,000 6,000 8,000 10,000 12,000 14,000 Production share of cabbages in the top 10 municipalites in RS 8+ 2% 2% 2% 2% Remaining parts of RS 2% Bijeljina 3% 8% 3% Šamac Gradiška 9% Banja Luka Doboj Modriča 11% Novi Grad 56% Berkovići Kozarska Dubica Zvornik Aggregation with other locations for green peppers in BiH The aggregation of other locations with the mapped top locations for green peppers (the zone that covers a single region is marked on the map with concentric circles) has included municipalities that are located in immediate vicinity, within a circle 75 kilometers in diameter. The locations shown in the table have been added to the existing regions: REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 REGION 6 Kozarska Dubica, Novi Grad *Average annual production of green peppers in tons for *Share of average annual production of green peppers for Banja Luka, Gradiška Doboj, Modriča, Šamac Bijeljina Zvornik Berkovići Kostajnica, Prijedor Čelinac, Laktaši, Srbac Derventa, Odžak, Vukosavlje Aggregation Lopare, Ugljevik Milići, Osmaci, Šekovići, Vlasenica Nevesinje Region production (in tons) with aggregation and remaining parts of BiH Region production (in tons) with aggregation and remaining parts of RS 12, ,937 4,526 3,092 1,082 Remaining parts of BiH Remaining parts of RS REGION 6 REGION 5 REGION 4 REGION 3 REGION 2 REGION ,937 4,526 3,092 1,082 15,000 10,000 5, ,000 8,000 12,000 *Average annual production of green peppers in tons by regions with added locations and production in the remaining parts of BiH for INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

67 Production regions for green peppers: R1 R2 R3 R4 R5 R Production share of regions with aggregation of green peppers in BiH 36% 1% 1% 3% 9% 37% 13% REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 REGION 6 Remaining parts of RS Remaining parts of BiH Production share of regions with aggregation of green peppers in RS 55% 2% 2% 4% 5% 13% 19% *Share of average production of green peppers by regions with added locations (aggregation of locations in the circle with diameter of up to 75 kilometers) for

68 GREEN PEPPERS REGION 1 REGION 2 REGION 3 REGION 4 Locations Kozarska Dubica, Novi Grad, Kostajnica, Prijedor Banja Luka, Gradiška, Čelinac, Laktaši, Srbac Doboj, Modriča, Šamac, Derventa, Odžak, Vukosavlje Bijeljina, Lopare, Ugljevik Favorable areas for investing -Construction of a distribution center -Plant for production and processing of vegetables -Cold storage for fruit and vegetables -Agricultural logistics center -Buyout and processing capacities for fruit and vegetables -Cold storage -Logistics center - Production and education center: production of vegetables in closed spaces and in the open and the production of green peppers, tomatoes, and cucumber, cornichons -Construction of a distribution center -Processing capacities -Processing capacities for fruit and vegetables -Cultivation and buyout of fruit and vegetables Advantages -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH. -The region holds the third place in the production of apples and is amongst the top 10 locations, compared to total production in Republika Srpska, based on the production of pears, raspberries, cucumbers, cabbage, kale, carrots, and green peppers, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place), with the average market price of raspberries in BiH being the lowest of the 10 countries with the highest production volumes of those crops - Availability of facilities and agricultural land for greenfield and brownfield investments and investments in agricultural production -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phytosanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH. - At the disposal of the investors, there is the logistics center with comprehensive logistics support (warehousing and cooling) with the option of using administrative premises (Agricultural Zone in Nova Topola). -The international airport in Banja Luka is located in this region, while the vicinity of river Sava renders this location more interesting because of the possibility of water transport connections with Europe -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH - Two border crossings of category I are located in the territory of the region (Šamac and Brod), at the distance of 1 kilometer, while railway traffic crosses through the region -On the bank of river Sava in Šamac, the commodity and transport center of Luka has been constructed, a port with nodes of land and river transport modes, specifically road transport river transport, and vice versa, which renders the location more interesting because of the possibility of water transport connection with Europe. -The region holds the top spot in the production of strawberries, cucumbers, cabbages, green peppers, potatoes, and carrots, compared to total production in RS, and is amongst the 6 leading locations in the production of raspberries and plums, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place) and plums (12th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of that fruit -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices -The region is situated in an attractive geostrategic location on the triple border of Serbia, Croatia, and Republika Srpska, i.e. BiH, and on the crossroads of roads leading to large urban and industrial centers Belgrade, Novi Sad, Inđija, Banja Luka, Šabac, Tuzla, Sarajevo INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

69 Incentives -Municipality of Kozarska Dubica has adopted a Decision on the manner of entry of investors into the business zone with discounts that may represent up to 99% of the purchase and sale price of land in the zone. - Municipality of Novi Grad: Incentive for the sector of small and medium enterprises in the area of employment amounts to BAM 65,000. Incentive for agricultural production in the territory of the municipality amounts to BAM 140,000. -Municipality of Prijedor: improvement of fruit production BAM 40,000, production of vegetables and flowers in closed spaces - BAM 50,000, regress for renewal of agricultural machinery - BAM 15,000, support to introduction of irrigation systems with agricultural producers - BAM 20,000, support to the construction of stable facilities and equipment BAM 10,000, support to construction of warehousing facilities and procurement of equipment for fruit production BAM 20,000 -Municipality of Šamac: Incentives for agriculture: Each year, around BAM 90,000 is allocated from the budget, on the basis of the Rulebook on the Conditions for Using and Allocation of Financing for Development of Agriculture and Villages in the Municipality of Šamac. Incentives for the real sector in the amount of BAM 30,000 to 50,000 are envisaged in the budget and are being awarded on the basis of the Rulebook and the Public Invitation on Allocation of Financing for Employment of Unemployed. Net salary BAM (2016) BAM (2016) BAM (2016) BAM (2016) Labor force at 11,270 persons 28,096 persons 18,478 persons 14,753 persons the disposal Locations at the disposal (greenfield/ brownfield) -Municipality of Kozarska Dubica is proposing greenfield investments in the construction of plants for the production and processing of agricultural products, cold storages, and all types of servicing facilities and warehouses with various purposes. Joint investments with the objective of modernization and expansion of production capacities of existing enterprises. It is making available 79 hectares of land in the business zone of Lipova Greda, in the ownership of the municipality. - Municipality of Gradiška is placing at the disposal capacities of the Agricultural and Industrial Zone of Nova Topola, which has available 125 hectares of land, whose owner is the Municipality of Gradiška, and which possesses the basic infrastructure, such as power supply, water supply, sanitation, access roads. In the area of the Agricultural and Industrial Zone of Nova Topola all activities in the value chain may be realized (buyout, processing, value added production, cold storages, warehousing, packaging, and distribution of fruit and -Municipality of Brod places at the disposal land in the area of 150 hectares, of which 50 hectares are in the ownership of the municipality, where lease of land is possible for the period of 30 years, and 100 hectares are in private ownership with own production. The annual price of lease amounts to BAM 80/ hectare in average. Road transport infrastructure is present at the location. The municipality Is located 1 kilometer away from the state border with the EU (Croatia), 10 kilometers away from the highway leading from Belgrade to Zagreb, and 50 kilometers away from the railroad and 100 kilometers from the airport -Municipality of Lopare is putting at the disposal for brownfield investments, production, and buyout of fruit and vegetables land in the ownership of the Municipality of Lopare which is situated in a number of locations: 1. Cadastral Municipality of Mačkovac 2. Cadastral Municipality of Jablanica, neglected land in the area of 50 hectares, which should be brought to its use 3. Cadastral Municipality of Koraj 1 and Cadastral Municipality of Koraj 2, neglected land in the area of 80 hectares, which should be brought to its use 4.Argicultureal land issued to agricultural producers registered in APIF (land under lease on 230 hectares; price of lease BAM 300 / 1 hectare) Facilities for brownfield investments: 1. Agricultural Cooperative Priboj, former Agricultural Cooperative Ratko Perić Priboj (The cooperative is in bankruptcy proceedings, a portion of facilities has been solved, resolution of property related and legal relations is ongoing) 69

70 Currently, the Southern part of the zone is regulated, in the area of 21 hectares, with the total of 26 parcels envisaged for sale to investors. The size of a parcel may be adjusted to the needs of the investor. Price of land: BAM 9/m² with discount options -Municipality of Novi Grad proposes two locations for brownfield investments, on which all the necessary infrastructure is already present: L Location: Svodna Blatna Area: m m 2 Ownership: Municipality Municipality Business Lease Lease opportunity Price: BAM 1.00/m 2 + PDV BAM 1.00/m 2 + PDV - Municipality of Prijedor is proposing greenfield and brownfield investments, and the construction of a distribution center for fruit and vegetables (buyout, warehousing, and sale) a) In case of the distribution center for fruit and vegetables of the region of Prijedor, the investment would cover the adaptation of the existing facility with area of 450 m2 into a facility intended for the warehousing, processing, packaging, and distribution of fruit. Along with the adaptation of the existing facility, the project design envisages the construction of a new facility, 250 m2 in area, for business premises and plants for the finishing of pilot products. Within the framework of the adaptation, the facility will be regulated in two parts: the first part would concern chambers for warehousing fruits, with capacity of 4X100 t; the second part would be the operating space in which equipment would be installed for packaging and basic processing of fruit vegetables). The land in the zone is exclusively intended for purchase, at the price from BAM 1 to 80 /m² of land. Agricultural and Industrial Zone of Nova Topola has a Regulation Plan. Investing into the zone requires a business plan. Acquisition of the urban planning, construction, and utilization permit, power supply consent, ecological license, and fire protection consent for a facility of 1,000 m² would require BAM 40,000. The period of time necessary for the acquisition of the permits is between 2 and 3 months (much depends on the investor). The assessed cost of constructing a facility in the zone with area size of 1,000 m² is around BAM 100,000 - Municipality of Laktaši is suggesting for greenfield investments the Business Zone of Aleksandrovac, with 28.9 hectares of area of land in the ownership of the Municipality of Laktaši. There are several parcels available for construction with area sizes from 5,000-12,000 m2, at the price of BAM 3/m2. A paved road leads through the middle of the Industrial Zone of Aleksandrovac with street lighting (connecting the zone with the M-16 primary road), power supply, water supply, and telecommunication networks which are installed, and organized waste collection. There is a regulation plan adopted, along with the Feasibility Study for the Agricultural Business Park of Aleksandrovac, which plans an expansion of the zone to additional 80 hectares (on the other side of the primary road leading from Banja Luka to Gradiška, and on the transport line connecting that road with the Banja Luka Gradiška highway). -Municipality of Prnjavor is making available for greenfield investments land in the area of 6,340 m², with assessed value of land amounting to EUR 97,248 EUR. Power supply, sanitation, water supply, telecommunications, and an access road are all available on the land. -Municipality of Brod places at the disposal land in the area of 150 hectares, of which 50 hectares are in the ownership of the municipality, where lease of land is possible for the period of 30 years, and 100 hectares are in private ownership with own production. The annual price of lease amounts to BAM 80/ hectare in average. Road transport infrastructure is present at the location. The municipality Is located 1 kilometer away from the state border with the EU (Croatia), 10 kilometers away from the highway leading from Belgrade to Zagreb, and 50 kilometers away from the railroad and 100 kilometers from the airport -Municipality of Modriča is proposing projects and presenting three locations that are at disposal: 1) Production and education center, on the area of 20.5 hectares, at the lease price of BAM 100 per hectare per annum 2) Business and entrepreneurial center Jabučik, 6,039 m2 in area, with facilities 286 m2 in area, at the lease price of BAM 2 per m2 of the facility per month 3) Construction of a distribution center, on an area of 1.5 hectares, at the lease price of BAM 100 per hectare per annum -Municipality of Šamac has at its disposal the following locations: 1. Facility 1,431 m2 in area, yard 1,000 m2 in area, and meadow 9,109 m2 in area, parcel No. 1211/1, in the ownership of the Municipality of Šamac (the location of the former factory of Hrana Produkt company for processing of vegetables and fruit, i.e. development and entrepreneurial zone), with options to purchase or lease the premises. The price of lease of the premises is BAM 1 per m2 at the minimum, and 2. Agricultural Cooperative Dojčin Lukić Lopare (The cooperative is in bankruptcy proceedings, and property related and legal relations have not been resolved) 3. Agricultural Cooperative Bratstvo Koraj (The cooperative is in function and is performing its primary activity for which it is registered, property related and legal relations are resolved, it processes 38 hectares of land) 4. Agricultural Cooperative Agro-Koraj Koraj (The cooperative owns a cold storage, a drying plant, and business premises, and it is dealing exclusively with the buyout of fruit and vegetables) 5. Agricultural Cooperative Agro-Brda Koraj (The cooperative is active in fruit production, of dried plums exclusively, with business premises and a cold storage) -Municipality of Ugljevik is making available for greenfield investments two parcels: 1. Land in the industrial zone of Ugljevik, comprising three individual parcels, with total area of 13,411 m2, in private ownership (which may turn out to be an advantage, as it shortens the procedures of buyout of land), and there are options for purchase and long-term lease. 2. Land in municipal ownership, which is located in the immediate vicinity of the center of Ugljevik, a couple of hundred meters from the M-18 Primary road and the R-459 regional road. Two connected parcels, with areas of 16,244 m2 and 19,847 m2. The parcels are currently recorded as agricultural land, and water and power networks have been extended to the parcels. -The city of Bijeljina is proposing for a greenfield investment industrial zones in the ownership of the City of Bijeljina, which are intended for the construction of industrial, production and processing capacities, small entrepreneurship, and servicing crafts: 1) Industrial zone hectares (44 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The infrastructure is in the phase of construction. The sales price of construction parcels ranges from BAM /m² (Sub-zone 1 70 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

71 -Municipality of Srbac is proposing, for the purposes of expanding warehousing capacities for the buyout and warehousing of strawberries and berries, wild collection and mushrooms (expansion of a cold storage) a location at the address of 18 Ilićani, with area of 2 hectares, cadastral particle No. 209/2, in the ownership of S.P. Šipurak Dragiša Knežević. Horizontal dimensions of the existing facility (cold storage) are 14.6 x Capacities on the location of the Industrial and Business Zone of Šamac (in the vicinity of the border crossing with the Republic of Croatia). For any information please contact the address of the Municipal Administration of Šamac. The proposed locations are equipped with developed infrastructure, there are power supply, water supply, sanitation, telecommunications, roads BAM 30 /m², Sub-zone 2 BAM 15 /m², Sub-zone 3 BAM 10 /m²), in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). 2) Industrial zone 3 22 hectares (3.75 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The industrial zone is fully equipped (paved road, power, water supply). The sale of construction parcels is being performed under favorable conditions (the initial price is BAM 20/ m² for regulated construction land, in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment) 71

72 GREEN PEPPERS REGION 5 REGION 6 Locations Zvornik, Milići, Osmaci, Šekovići, Vlasenica Nevesinje, Berkovići Favorable areas for investing -Cold storage with deep freeze -Construction of a distribution center -Cultivation and buyout of fruit and vegetables Advantages -This region holds the number one spot in the production of raspberries and the second place in the production of cucumbers compared to the total volume of production in RS, for which Bosnia and Herzegovina is ranked highly on the global list of countries based on production of raspberries (11th position), with the average market price in BiH being the lowest of the 10 countries with the highest volume of production of that fruit. -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices Incentives -Municipality of Vlasenica: Incentives for agriculture exist in the amount of BAM 80,000 on annual level -Processing capacities for fruit and vegetables - Buyout and additional processing of ware potatoes (the Project would cover the production of potatoes by agricultural producers through cooperative relations with the project implementer and the development of the buyout and additional processing center that would perform warehousing, selection, packaging, and sale) -The region is located in an area with simple access (50 to 80 kilometers) to the market of Montenegro and the Adriatic Sea and the Port of Ploče (Croatia/EU), the border belt with Croatia (EU), a position on the European highways E73 and E65 and the border crossing of Bijača -This region holds the second rank in the production of carrots and the fifth place in the production of potatoes compared to the total volume of production in RS. -Mediterranean climate and high quality soil facilitate the cultivation of early spring vegetables (cabbage, ware potatoes) which are sold in the market with a high margin and for which the demand in the EU has been growing continuously in the last couple of years. Net salary BAM (2016) BAM (2016) Labor force at the disposal 10,871 persons 2,887 persons Locations at the disposal (greenfield/ brownfield) - Municipality of Vlasenica puts at the disposal of investors the Industrial Zone of KULA-Zeban, for production and cultivation. In the territory of the Municipality there is organized production of raspberries on the area of 30 hectares, plastic greenhouse production and production of fruits (plums, pears, and apples), with the cold storage for raspberries and several smaller drying plants. -The town of Zvornik is making available for greenfield and brownfield investments in the area of hectares of constructed land in the Business Zone of Jadar in the ownership of Republika Srpska and the town of Zvornik, which has the right to manage it. The business zone in Jadar is located in the industrial area of Karakaj and is 4 kilometers away from the center of the town. It is situated immediately next to the border crossing with the function of a commodity customs terminal. It leans on M19 and M4 primary roads and the loading station on the international railroad connecting the Republic of Serbia with Zvornik and then Tuzla -Municipality of Berkovići is providing, for greenfield investments, the Business zone of Viduša, in the ownership of the Municipality of Berkovići. The infrastructure of the business zone is yet to be regulated. There is an adopted Physical Space Regulation Plan of the Municipality of Berkovići and the Regulation Plan of the Business Zone of Viduša. The municipality expressed its need for investments in processing capacities, taking into account that currently there is only production in individual areas, in the absence of processing capacities, cold storages, and drying plants. - Municipality of Nevesinje has available for greenfield investments and buyout of fruit and vegetables land in the industrial zone of Kilavci, with total area size of 3 hectares in the ownership of the Municipality. Purchase is possible through a public auction with the initial price of around BAM 10, depending on the zone in which the location is. In the majority of locations in the industrial zone, the necessary infrastructure is already ensured. The Physical Space Regulation Plan of the Municipality was adopted in 2015, while the Industrial Zone of Kilavci also has an adopted Regulation Plan 72 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

73 Production and Exports of Carrots Top 10 municipalities in RS with the highest average production of carrots for : Production of carrots (in tons) in the top 10 municipalities in RS Production share of carrots in the top 10 municipalites in RS Kneževo Derventa Rogatica Novi Grad Laktaši Oštra Luka Doboj Banja Luka Nevesinje Bijeljina Remaining parts of RS % 3% Remaining parts of RS 3% 3% Bijeljina 4% Nevesinje 7% Banja Luka Doboj 8% Oštra Luka Laktaši Novi Grad 9% Rogatica Derventa 11% Kneževo 14% 18% *Average annual production of carrots in tons for *The share of average production of carrots for

74 Aggregation with other locations for carrots in BiH The aggregation of other locations with the mapped top locations for carrots (the zone that covers a single region is marked on the map with concentric circles) has included municipalities that are located in immediate vicinity, within a circle 75 kilometers in diameter. The locations shown in the table have been added to the existing regions: REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 REGION 6 Novi Grad, Oštra Luka Banja Luka, Kneževo, Derventa, Doboj Bijeljina Rogatica Nevesinje Laktaši Aggregation Kostajnica, Kozarska Dubica, Prijedor Čelinac, Gradiška, Srbac Brod, Modriča, Vukosavlje Lopare, Ugljevik Sokolac, Višegrad Berkovići Region production (in tons) with aggregation and remaining parts of BiH Region production (in tons) with aggregation and remaining parts of RS 15, Remaining parts of BiH Remaining parts of RS REGION 6 REGION 5 REGION 4 REGION 3 REGION 2 REGION ,000 15,000 10,000 5, ,000 *Average annual production of carrots in tons by regions with additional locations and production for the remaining parts of BiH for INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

75 Production regions for carrots: R1 R2 R3 R4 R5 R Production share of regions with aggregation of carrots in BiH 83% 2% 4% 3% 4% 1% 2% REGION 1 REGION 2 REGION 3 REGION 4 REGION 5 REGION 6 Remaining parts of RS Remaining parts of BiH Production share of regions with aggregation of carrots in RS 14% 5% 13% 13% 19% 13% 23% *Share of average production of carrots by regions with additional locations (aggregation of locations within circles with diameters of up to 75 kilometers) for

76 CARROTS REGION 1 REGION 2 REGION 3 REGION 4 Locations Novi Grad, Oštra Luka, Kostajnica, Kozarska Banja Luka, Kneževo, Laktaši, Čelinac, Gradiška, Srbac Derventa, Doboj, Brod, Modriča, Vukosavlje Bijeljina, Lopare, Ugljevik Dubica, Prijedor Favorable areas for investing -Construction of a distribution center -Plant for production and processing of vegetables -Cold storage for fruit and vegetables Advantages -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phyto-sanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH. -The region holds the third place in the production of apples and is amongst the top 10 locations, compared to total production in RS, based on the production of pears, raspberries, cucumbers, cabbage, kale, carrots, and green peppers, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of those crops -Availability of facilities and agricultural land for greenfield and brownfield investments and investments in agricultural production -Agricultural logistics center -Buyout and processing capacities for fruit and vegetables -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, close to the border crossing in Gradiška, which is one of the two border crossings through which exports are allowed of goods of plant and animal origin from BiH that require special inspection supervision (veterinarian and phytosanitary certificate) - BIP (Border Inspection Control), facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH. -At the disposal of the investors, there is the logistics center with comprehensive logistics support (warehousing and cooling) with the option of using administrative premises (Agricultural Zone in Nova Topola). -The international airport in Banja Luka is located in this region, while the vicinity of river Sava renders this location more interesting because of the possibility of water transport connections with Europe -Cold storage -Logistics center - Production and education center: production of vegetables in closed spaces and in the open and the production of green peppers, tomatoes, and cucumber, cornichons -Construction of a distribution center -Processing capacities -The region borders with the EU, and is in the immediate vicinity of the European highways E70 and E73, facilitating lower costs and shorter period of time necessary for transporting agricultural products from BiH -Two border crossings of category I are located in the territory of the region (Šamac and Brod), at the distance of 1 kilometer, while railway traffic crosses through the region -On the bank of river Sava in Šamac, the commodity and transport center of Luka has been constructed, a port with nodes of land and river transport modes, specifically road transport river transport, and vice versa, which renders the location more interesting because of the possibility of water transport connection with Europe. -Processing capacities for fruit and vegetables -Cultivation and buyout of fruit and vegetables -The region holds the top spot in the production of raspberries and the second position in the production of cucumbers, compared to total production in RS, and is amongst the 6 leading locations in the production of raspberries and plums, for which BiH is highly ranked in the global list of countries producers of raspberries (11th place) and plums (12th place), with the average market price in BiH being the lowest of the 10 countries with the highest production volumes of that fruit -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices -The region is situated in an attractive geostrategic location on the triple border of Serbia, Croatia, and Republika Srpska, i.e. BiH, and on the crossroads of roads leading to large urban and industrial centers Belgrade, Novi Sad, Inđija, Banja Luka, Šabac, Tuzla, Sarajevo INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

77 Incentives -Municipality of Kozarska Dubica has adopted a Decision on the manner of entry of investors into the business zone with discounts that may represent up to 99% of the purchase and sale price of land in the zone. -Municipality of Novi Grad: Incentive for the sector of small and medium enterprises in the area of employment amounts to BAM 65,000. Incentive for agricultural production in the territory of the municipality amounts to BAM 140,000. -Municipality of Prijedor: improvement of fruit production BAM 40,000, production of vegetables and flowers in closed spaces - BAM 50,000, regress for renewal of agricultural machinery - BAM 15,000, support to introduction of irrigation systems with agricultural producers - BAM 20,000, support to the construction of stable facilities and equipment BAM 10,000, support to construction of warehousing facilities and procurement of equipment for fruit production BAM 20, Municipality of Šamac: Incentives for agriculture: Each year, around BAM 90,000 is allocated from the budget, on the basis of the Rulebook on the Conditions for Using and Allocation of Financing for Development of Agriculture and Villages in the Municipality of Šamac. Incentives for the real sector in the amount of BAM 30,000 to 50,000 are envisaged in the budget and are being awarded on the basis of the Rulebook and the Public Invitation on Allocation of Financing for Employment of Unemployed. Net salary BAM (2016) BAM (2016) BAM (2016) BAM (2016) - Labor force at the disposal Locations at the disposal (greenfield/ brownfield) 11,270 persons 28,096 persons 18,478 persons 14,753 persons -Municipality of Kozarska Dubica is proposing greenfield investments in the construction of plants for the production and processing of agricultural products, cold storages, and all types of servicing facilities and warehouses with various purposes. Joint investments with the objective of modernization and expansion of production capacities of existing enterprises. It is making available 79 hectares of land in the business zone of Lipova Greda, in the ownership of the municipality. -Municipality of Gradiška is placing at the disposal capacities of the Agricultural and Industrial Zone of Nova Topola, which has available 125 hectares of land, whose owner is the Municipality of Gradiška, and which possesses the basic infrastructure, such as power supply, water supply, sanitation, access roads.in the area of the Agricultural and Industrial Zone of Nova Topola all activities in the value chain may be realized (buyout, processing, value added production, cold storages, warehousing, packaging, and distribution of fruit and vegetables). The land in the zone is exclusively intended for purchase, at the price from BAM 1 to 80 /m² of land. -Municipality of Prnjavor is making available for greenfield investments land in the area of 6,340 m², with assessed value of land amounting to EUR 97,248 EUR. Power supply, sanitation, water supply, telecommunications, and an access road are all available on the land. -Municipality of Srbac is proposing, for the purposes of expanding warehousing capacities for the buyout and warehousing of strawberries and berries, wild collection and mushrooms (expansion of a cold storage) a location at the address of 18 Ilićani, with area of 2 hectares, cadastral particle No. 209/2, in -Municipality of Lopare is putting at the disposal for brownfield investments, production, and buyout of fruit and vegetables land in the ownership of the Municipality of Lopare which is situated in a number of locations: 1. Cadastral Municipality of Mačkovac 2. Cadastral Municipality of Jablanica, neglected land in the area of 50 hectares, which should be brought to its use 3. Cadastral Municipality of Koraj 1 and Cadastral Municipality of Koraj 2, neglected land in the area of 80 hectares, which should be brought to its use 4.Argicultureal land issued to agricultural producers registered in APIF (land under lease on 230 hectares; price of lease BAM 300 / 1 hectare) 77

78 Currently, the Southern part of the zone is regulated, in the area of 21 hectares, with the total of 26 parcels envisaged for sale to investors. The size of a parcel may be adjusted to the needs of the investor. Price of land: BAM 9/m² with discount options -Municipality of Novi Grad proposes two locations for brownfield investments, on which all the necessary infrastructure is already present: Location: Svodna Blatna Area: m m 2 Ownership Municipalit Municipality Business Lease Lease opportunity: Price: BAM 1.00/m 2 + PDV BAM 1.00/m 2 + PDV -Municipality of Prijedor is proposing greenfield and brownfield investments, and the construction of a distribution center for fruit and vegetables (buyout, warehousing, and sale) a) In case of the distribution center for fruit and vegetables of the region of Prijedor, the investment would cover the adaptation of the existing facility with area of 450 m2 into a facility intended for the warehousing, processing, packaging, and distribution of fruit. Along with the adaptation of the existing facility, the project design envisages the construction of a new facility, 250 m2 in area, for business premises and plants for the finishing of pilot products. Within the framework of the adaptation, the facility will be regulated in two parts: the first part would concern chambers for warehousing fruits, with capacity of 4X100 t; the second part would be the operating space in which equipment would be installed for packaging and basic processing of fruit Agricultural and Industrial Zone of Nova Topola has a Regulation Plan. Investing into the zone requires a business plan. Acquisition of the urban planning, construction, and utilization permit, power supply consent, ecological license, and fire protection consent for a facility of 1,000 m² would require BAM 40,000. The period of time necessary for the acquisition of the permits is between 2 and 3 months (much depends on the investor). The assessed cost of constructing a facility in the zone with area size of 1,000 m² is around BAM 100,000 -Municipality of Laktaši is suggesting for greenfield investments the Business Zone of Aleksandrovac, with 28.9 hectares of area of land in the ownership of the Municipality of Laktaši. There are several parcels available for construction with area sizes from 5,000-12,000 m2, at the price of BAM 3/m2. A paved road leads through the middle of the Industrial Zone of Aleksandrovac with street lighting (connecting the zone with the M-16 primary road), power supply, water supply, and telecommunication networks which are installed, and organized waste collection. There is a regulation plan adopted, along with the Feasibility Study for the Agricultural Business Park of Aleksandrovac, which plans an expansion of the zone to additional 80 hectares (on the other side of the primary road leading from Banja Luka to Gradiška, and on the transport line connecting that road with the Banja Luka Gradiška highway). -Municipality of Prnjavor is making available for greenfield investments land in the area of 6,340 m², with assessed value of land amounting to EUR 97,248 EUR. Power supply, sanitation, water supply, telecommunications, and an access road are all available on the land. --Municipality of Derventa has majority ownership over a separated industrial zone with total area size of around 204 hectares, of which around 84 hectares is unoccupied and earmarked for future development and construction (in a specific part of the industrial zone). Traffic lines have been constructed and paved in the immediate vicinity of the Industrial zone. In the zone itself, the power grid, the water supply and sanitation networks have been constructed, and it would be necessary to construct corresponding connections to new facilities. The sale is being performed through an auction, with the initial prices of BAM 10 KM for m² of land -Municipality of Modriča is proposing projects and presenting three locations that are at disposal: 1) Production and education center, on the area of 20.5 hectares, at the lease price of BAM 100 per hectare per annum 2) Business and entrepreneurial center Jabučik, 6,039 m2 in area, with facilities 286 m2 in area, at the lease price of BAM 2 per m2 of the facility per month 3) Construction of a distribution center, on an area of 1.5 hectares, at the lease price of BAM 100 per hectare per annum - Municipality of Šamac has at its disposal the following locations: 1. Facility 1,431 m2 in area, yard 1,000 m2 in area, and meadow 9,109 m2 in area, parcel No. 1211/1, in the ownership of the Municipality of Šamac (the location of the former factory of Hrana Produkt company for processing of vegetables and fruit, i.e. development and entrepreneurial zone), with options to purchase or lease the premises. The price of lease of the premises is BAM 1 per m2 at the minimum, and the ownership of S.P. Šipurak Dragiša Knežević. Horizontal dimensions of the existing facility (cold storage) are 14.6 x 11 m Facilities for brownfield investments: 1. Agricultural Cooperative Priboj, former Agricultural Cooperative Ratko Perić Priboj (The cooperative is in bankruptcy proceedings, a portion of facilities has been solved, resolution of property related and legal relations is ongoing) 2. Agricultural Cooperative Dojčin Lukić Lopare (The cooperative is in bankruptcy proceedings, and property related and legal relations have not been resolved) 3. Agricultural Cooperative Bratstvo Koraj (The cooperative is in function and is performing its primary activity for which it is registered, property related and legal relations are resolved, it processes 38 hectares of land) 4. Agricultural Cooperative Agro-Koraj Koraj (The cooperative owns a cold storage, a drying plant, and business premises, and it is dealing exclusively with the buyout of fruit and vegetables) 5. Agricultural Cooperative Agro-Brda Koraj (The cooperative is active in fruit production, of dried plums exclusively, with business premises and a cold storage) -Municipality of Ugljevik is making available for greenfield investments two parcels: 1. Land in the industrial zone of Ugljevik, comprising three individual parcels, with total area of 13,411 m2, in private ownership (which may turn out to be an advantage, as it shortens the procedures of buyout of land), and there are options for purchase and long-term lease. 2. Land in municipal ownership, which is located in the immediate vicinity of the center of Ugljevik, a couple of hundred meters from the M-18 Primary road and the R-459 regional road. Two connected parcels, with areas of 16,244 m2 and 19,847 m2. The parcels are currently recorded as agricultural land, and water and power networks have been extended to the parcels. 78 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

79 -Municipality of Srbac is proposing, for the purposes of expanding warehousing capacities for the buyout and warehousing of strawberries and berries, wild collection and mushrooms (expansion of a cold storage) a location at the address of 18 Ilićani, with area of 2 hectares, cadastral particle No. 209/2, in the ownership of S.P. Šipurak Dragiša Knežević. Horizontal dimensions of the existing facility (cold storage) are 14.6 x 11 m 2. Capacities on the location of the Industrial and Business Zone of Šamac (in the vicinity of the border crossing with the Republic of Croatia). For any information please contact the address of the Municipal Administration of Šamac. The proposed locations are equipped with developed infrastructure, there are power supply, water supply, sanitation, telecommunications, roads -The city of Bijeljina is proposing for a greenfield investment industrial zones in the ownership of the City of Bijeljina, which are intended for the construction of industrial, production and processing capacities, small entrepreneurship, and servicing crafts: 1) Industrial zone hectares (44 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The infrastructure is in the phase of construction. The sales price of construction parcels ranges from BAM /m² (Sub-zone 1 BAM 30 /m², Sub-zone 2 BAM 15 /m², Sub-zone 3 BAM 10 /m²), in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). 2) Industrial zone 3 22 hectares (3.75 hectares of city owned land, free). The parcels may be formed depending on the interest of the investors. The industrial zone is fully equipped (paved road, power, water supply). The sale of construction parcels is being performed under favorable conditions (the initial price is BAM 20/m² for regulated construction land, in 60 instalments, interest free, documents for construction may be acquired immediately upon the payment of the first instalment). 79

80 CARROTS REGION 5 REGION 6 Locations Rogatica, Sokolac, Višegrad Nevesinje, Berkovići Favorable areas for investing -Processing capacities for fruit and vegetables -Processing of fruit, production of juices and other products made from fruit -Drying plants -Cold storages and cooling capacities Advantages -The location on the very border with Serbia results in a possibility of supplying already existing investors in the region, providing them with the possibility of increasing the critical mass of various types of fruit and vegetables, and offering them additional quantities at competitive prices. -Abundance of fertile uncultivated and unpolluted land with favorable natural and climatic conditions, excellent soil quality, longer seasons of growth / production, and enormous wealth of crystal clear water streams, opens possibilities for investors for high quality agricultural production with low operating costs Incentives -Municipality of Sokolac is continuously encouraging the development of the private sector and offering to investors incentives in such a manner that the compensation for lump sum rent and regulation of city construction land is paid in installments during the period of 5 and 10 years, interest on agricultural credits is regressed, preferential treatment and exemptions are provided when paying utility fees and utility charges Net salary BAM (2016) BAM (2016) -Processing capacities for fruit and vegetables - Buyout and additional processing of ware potatoes (the Project would cover the production of potatoes by agricultural producers through cooperative relations with the project implementer and the development of the buyout and additional processing center that would perform warehousing, selection, packaging, and sale) -The region is located in an area with simple access (50 to 80 kilometers) to the market of Montenegro and the Adriatic Sea and the Port of Ploče (Croatia/EU), the border belt with Croatia (EU), a position on the European highways E73 and E65 and the border crossing of Bijača -This region holds the second rank in the production of carrots and the fifth place in the production of potatoes compared to the total volume of production in RS. -Mediterranean climate and high quality soil facilitate the cultivation of early spring vegetables (cabbage, ware potatoes) which are sold in the market with a high margin and for which the demand in the EU has been growing continuously in the last couple of years. Labor force at the disposal 5,381 persons 2,887 persons Locations at the disposal (greenfield/ brownfield) -Municipality of Sokolac is proposing several locations for greenfield, brownfield and joint investments: -Business Zone of Podromanija, Bjelosavljevići, on the road leading to the Municipality of Rogatica, with area size of 43 hectares, with 108 parcels in private ownership, favorable for all greenfield investments that do not have a negative effect on the environment. The land is located in zone III, and purchase is possible at the price of BAM 3 /m2. -Land with the area size of hectares is being given under lease for the period of 8 to 12 years, with optional extension. It is situated on three locations: Glasinačko polje (51.70 hectares), Luburić polje ( ha), and Poljak polje (78.67 ha). The maximum area size that may be given under lease for economic companies and entrepreneurs is 200 hectares, and for natural persons it is 30 hectares. Annual prices of lease of one hectare are distributed by classes: I BAM 90/hectare, II BAM 80/hectare, III BAM 70/hectare, IV BAM 60 /hectare, V BAM 50/hectare, VI, VII, and VIII BAM 30/hectare. -Agricultural land with area size of 8,061 hectares, which is being given under lease for the period of 8 years at the minimum, at the price of BAM 30-90, depending on the quality of the land. Healthy and clean environment represents a possibility for investing in ecological mixed agricultural production -Municipality of Berkovići is providing, for greenfield investments, the Business zone of Viduša, in the ownership of the Municipality of Berkovići. The infrastructure of the business zone is yet to be regulated. There is an adopted Physical Space Regulation Plan of the Municipality of Berkovići and the Regulation Plan of the Business Zone of Viduša. The municipality expressed its need for investments in processing capacities, taking into account that currently there is only production in individual areas, in the absence of processing capacities, cold storages, and drying plants. - Municipality of Nevesinje has available for greenfield investments and buyout of fruit and vegetables land in the industrial zone of Kilavci, with total area size of 3 hectares in the ownership of the Municipality. Purchase is possible through a public auction with the initial price of around BAM 10, depending on the zone in which the location is. In the majority of locations in the industrial zone, the necessary infrastructure is already ensured. The Physical Space Regulation Plan of the Municipality was adopted in 2015, while the Industrial Zone of Kilavci also has an adopted Regulation Plan 80 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

81 TRANSPORT INFRASTRUCTURE / LOGISTIC CONNECTIONS Road infrastructure Border crossings Description With Croatia / EU: Gradiška international border crossing for international road transport of passengers and goods that are, under the legislation of the contractual parties, subject to inspection controls in the course of transport over the shared state border Brod - international border crossing of category II in road transport Orašje - international border crossing of category I in road transport (traffic of persons, all types of goods, and means of transport). Through this border crossing trading is also possible with fruit and vegetables that under the legislation of the contractual parties are subject to compliance control with market standards and determination of health safety in the course of transport over a shared state border Brčko and Šamac - international border crossing of category I in road transport Brod - international border crossing of category II in road transport Road corridors With Serbia: Rača - international border crossing of category I in road transport Karakaj international border crossing of category I in road transport European road E-70, route (Ljubljana (SLO) Zagreb (CRO) Belgrade (SRB), representing the highway on corridor X European road E-73, route Budapest (HUN) Sarajevo (BiH) Ploče (CRO/EU) representing the highway on corridor Vc. Future highway Banja Luka Doboj in the length of kilometers that shall connect the Gradiška Banja Luka highway (E-661) with corridor Vc. Primary roads M-4 (Zvornik - Tuzla - Doboj) and M19 (Bijeljina Zvornik Sarajevo) connect to the European road se E-73 (Budapest Sarajevo Ploče which represents the highway on corridor Vc). Railways River transport Ports Airport Railway node in Doboj River Sava navigation route E80-12, of category IV Brčko (river port on river Sava, BiH) Ploče (sea port on the Adriatic Sea, in Croatia) International Airport in Mahovljani which is in the vicinity of Banja Luka, connecting Republika Srpska, through the International Airport Nikola Tesla in Belgrade, with all the more significant cities of Europe and the world Tuzla with prospects for a cargo airport Sarajevo - cargo airport Belgrade cargo airport Zagreb (CRO/EU) cargo airport 81

82 COMPETITIVE COSTS OF TRADING LOGISTICS (GENERAL INFORMATION) TYPE OF COST AMOUNT 1 Documentation for exporting EUR Confirmation that the fruit / vegetables were cultivated in BiH (issued by the External Trade Chamber of BiH) 3 CEMT permit (category 2) EUR 10 (for members of the Chamber) EUR 25 (for others) EUR 500 (category 1 permits are valid for Austria and Italy) or EUR 250 (category 2 permits are valid for the other countries of the EU, excluding Austria and Italy) EUR 3 fee for submitting an application EUR 8 fee for issuance of the permit Total: EUR 510 (for Austria and Italy) EUR 260 (for other EU countries) 4 Phyto permits Depending on the case, for example 20 tons = EUR 30 5 Sanitary permits EUR 28 6 Per diems for drivers (calculated based on one tour) EUR 50 (for EU) 7 Fuel Cold storage average consumption: around liters / 100 kilometers (diesel) Price of fuel in Croatia (EU): around EUR 1.37 / liter 8 Zagreb - Rijeka - category IV: EUR 40 in one direction or around 0.26 EUR per kilometer Source: Croatian Highways, List of Costs for Vehicles of Category 4 Review of assessed general costs of trade logistics (permits for exporting fruit and vegetables from BiH; shipping and transport costs) Border crossings of Gradiška (RS) and Bijača, in compliance with the information on crossing the state border on the grounds of the Contract between the Republic of Croatia and BiH on Border Crossings and the Agreement of the Republic of Croatia and BiH on Cross-border Trade with two border crossings for the exporting of all goods and services in the EU (Republic of Croatia). Speaking of fruit and vegetables, in addition to those two above mentioned border crossings, exporting is also possible through the border crossings of Orašje Županja, Izačić Ličko Petrovo Selo, Gorica Vinjani Donji, and Ivanica Brgat. 82 INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

83 CONTACT INFORMATION FOR INVESTORS Ministry of Economic Relations and Regional Cooperation of Republika Srpska Trg Republike Srpske Banja Luka Bosnia and Herzegovina Теl: Fax: meoi@meoi.vladars.net Republic Agency for Development of Small and Medium Enterprises (RARS) Tel.: Fax: info@rars-msp.org Chamber of Commerce of Republika Srpska (PKRS) Tel , Fax: info@komorars.ba CONTACT INFORMATION Municipality of Brod Svetog save Brod nacelnik@opstina-brod.net Tel.: Municipality of Kotor Varoš Cara Dušana bb Kotor Varoš Radislav Petrušić, Head of the Department for Economy and Social Affairs Tel.: Municipality of Lopare Cara Dušana Lopare loparepd@teol.net Tel.: Željko Kerović, Head of the Department for Economy and Social Affairs Radislav Davidović, Independent expert associate for agriculture Municipality of Derventa Trg Oslobođenja Derventa Vesna Simić Department for Economy and Social Affairs Tel: derv.pri@gmail.com Municipality of Kozarska Dubica Svetosavska Kozarska Dubica Aleksandar Nikoletić Head of the Department for Economy Cell: poljoprivreda@kozarskadubica.org Municipality of Modriča Vidovdanska Modriča nprivreda@modrica.ba Tel.: Alenka Ilovčević, Head of the Department for Economy and Social Affairs of the Municipality City Administration of the City of Doboj Hilandarska Doboj Tel: Fax: Duško Paravac Head of the Department for Economy Tel: poljoprivreda@opstina-doboj.ba Municipality of Laktaši Karađorđeva Laktaši Tel: info@laktasi.net Želimir Mirjanić Head of the Department for Agriculture zelimir.mirjanic@laktasi.net Tel: Municipality of Nevesinje Cara Dušana Nevesinje poljoprivreda.milan@gmail.com Tel.: Milan Govedarica, Independent expert associate for agriculture 83

84 City of Prijedor Trg oslobođenja Prijedor tatjana.maric@prijedorgrad.org Tel.: Municipality of Rudo Đenerala Dragoljuba Draže Mihailovića Rudo poljoprivreda@opstinarudo.com Tel.: Municipality of Novi Grad Petra Kočića br Novi Grad Head of the Department for Economy and Agriculture: Branislav Dmitrašinović branislav.dmitrasinovic@opština-novigrad.com Municipality of Foča Kralja Petra I bb Foča privreda@opstinafoca.rs.ba Tel.: +387(0) (0) Igor Ćurčić Tel.: Municipality of Čajniče Kralja Petra I Oslobodioca br Čajniče ocajnice@teol.net Tel.: +387(0) Municipality of Ugljevik Trg D. Mihajlovića bb Ugljevik opstinau@teol.net Head of the Department for Agriculture: Hajrija Bubic Tel.: Municipality of Prnjavor Karađorđeva br Prnjavor Tel: opstina@prnjavor.ba Dragana Tomaš Head of the Department for Agriculture, Water Management, and Forestry Tel: Žana Pekić, Head of the Department for Local Economic Development and Social Affairs Tel: Municipality of Srbac Mome Vidovića Srbac opstinasrbac@teol.net Tel.: , extension 306 Department for Agriculture Municipality of Banja Luka Trg srpskih vladara Banja Luka privreda@banjaluka.rs.ba Head of the Department for Economy: Radenko Komljenović Tel.: Municipality of Kostajnica Svetosavska Kostajnica poljoprivreda@opstina-kostajnica.com Tel.: Municipality of Ustiprača-Novo Goražde Bozidar Novo Goražde Novo Goražde nacelnik@novogorazde.rs.ba Tel.: Municipality of Tešanj Trg Alije Izetbegovića Tešanj Tel: Municipality of Ravno Trg Ivana Musića bb Ravno Tel: Fax: nacelnik.ravno@gmail.com Services for Economy Marija Proleta Tel: Tel: gospodarstvo.ravno@gmail.com Municipality of Srebrenica Srebreničkog odreda bb Srebrenica Vladan Milovanović, Acting Head of the Department for Economy and Development Tel.: Municipality of Gradiška Vidovdanska 1A, Gradiška Head of the Department for Economy and Agriculture: Branko Stojnić nacelnik.opstine@opstina-gradiska.com Tel: Municipality of Čelinac Prvog Krajiškog proleterskog bataljona Čelinac privreda@opstina-celinac.com Head of the Department for Economy and Social Affairs: Vitomir Kuzmanović Tel.: Municipality of Teslić Karađorđeva 6, Teslić nacelnikprivrede@opstinateslic.com Department for Economy and Agriculture: Borislav Tešić Tel.: +387(0)53/ Municipality of Usora Sivša bb Usora info@usora-opcina.com Tel.: +387 (0) INVESTMENT PROFILE OF THE FRUITS AND VEGETABLES SECTOR OF REPUBLIKA SRPSKA

85 Municipality of Bijeljina Ulica Patrijarha Pavla Bijeljina privredabn@gradbijeljina.org Head of the Department for Economy: Dejan Savić Tel.: +387 (0) Municipality of Kalinovik Karađorđeva Kalinovik kalinovik.opstina@gmail.com Tel.: Municipality of Pale Romanijska Pale privreda@pale.rs.ba vedrana.hrsum@pale.rs.ba Vedrana Hršum Head of the Department for Economy and Social Affairs Tel.: Municipality of Milići Jovana Dučića bb Milići ljiljana.lalovic@opstinamilici.org Head of the Department for Economy and Social Affairs: Ljiljana Lalović Tel.: Municipality of Vukosavlje Muse Ćazima Ćatića bb Vukosavlje odjeljenjepif@vukosavlje.gov.ba Head of Department for Economy, Finance, and Social Affairs Tel.: Municipality of Vlasenica Svetosavska Vlasenica vlservis@teol.net Tel.: Slaviša Mazić Municipality of Kalesija Patriotske lige bb Kalesija Grad opcina@kalesija.ba Tel.: Municipality of Ustikolina - Foča Omladinska b.b Ustikolina op.ustik@bih.net.ba Čengić Mirsad, Head of the Internal Organizational Unit for Economy, Utility Affairs, and Finance Tel.: and Municipality of Berkovići Ul. Poginulih boraca otadžbinskog rata bb Berkovići privredaberkovici@gmail.com Tel.: Municipality of Osmaci Osmaci bb privreda.finansije@osmaci.org Head of Department for Economy, Finance, and Social Affairs: Dalimirka Gordeljević Tel.: Municipality of Sokolac Glasinačka bb Sokolac opstinasokolac@gmail.com Tel.: , Municipality of Zvornik Svetog Save Zvornik zvornik@teol.net Department for Economy, Agriculture, and Social Affairs: Municipality of Sapna 206. viteške brigade bb Sapna o.sapna@opcinasapna.ba o.sapna@bih.net.ba Services for Economy, Budget, and Finance: Nusret Hamidović Tel.: Municipality of Bratunac Svetog Save Bratunac bratopst@teol.net Head of Department: Radenko Radović Tel.: Municipality of Odžak Trg bb Odžak Posavska Tel.: Municipality of Šekovići Josipa Kovačevića bb, Šekovići Tel:056/ Head of Department for Economy, Finance, and Social Affairs: Šivčić Mijomir Municipality of Višegrad Kralja Petra I Višegrad Expert Services of the Municipality Mayor Tel.: Department for Economy and Social Affairs Ana Bogdanović tel.:

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88 COME, SEE, AND INVEST! We are at your disposal to organize your visit to Republika Srpska. The investment profile was developed as part of the Improvement of Business Climate and Access to Market Project (ICAM), which is being implemented by the World Bank Group in partnership with the Embassy of United Kingdom in Bosnia and Herzegovina, the Council of Ministers of Bosnia and Herzegovina, the Federation of BiH Government, and the Republika Srpska Government.