Invest in Trebinje

10 reasons to invest in Trebinje

The vicinity of the European Union and the market of approx.600 million consumers

The potencial for producing hydro and solar

energy

Stimulating tax policy

Qualified workforce

The Market in progress

Vicinity to The Adriatic Sea – 30 km

The potential for tourism development

Low operating costs

Liberal Foreign trade regime with most

countries

Favourable climatic and hydrological conditions for

growing Mediterranean cultures

Content

• Strategic position

• Labor market

• Key sectors

• Business environment

• Business zone

• Incentives for investors

• Successful stories

• Quality of life

• Contacts

STRATEGIC POSITION

The strategic geographic position

GDP per capita figure :3,419 EUR (2012)

Strategic position to the European, Middle Eastern and Asian markets

Key facts about Trebinje

Area

904 km2

Altitude

245 m

Population

31.433

Population density per km2

37

Climate

Mediterranean 260 sunny days

The average temperature

July 26,5°CJanuary 8°C

Time zone

UTC +1

Relief

Dinaric carst

• Southeastern part of B&H (RS)

• At the border of Bosnia and Herzegovina, Montenegro and Croatia

• The economic and cultural center of the region of Eastern

Herzegovina

• 18 local communities

• The rich cultural and historical heritage

• City budget for 2016: 24.920.000,00 BAM of which the

expenditures for non-financial assets amount to 5.924.760,00 BAM

The City located at the border

Location Distance(km)

Dubrovnik, Croatia (seaport) 31

Čilipi, Croatia (international airport) 41

Tivat , Montenegro (international airport) 93

Mostar, B&H (international airport) 114

Podgorica, Montenegro (international airport) 117

Bar, Montenegro (seaport) 120

Ploče, Croatia (seaport) 130

Sarajevo, B&H (international airport ) 198

Split, Croatia (international airport) 249

Brčko, B&H (riverport) 384

Beograd, Serbia (riverport ) 458

Vicinity to the international airport and port

It takes less than 2 hours to arrive at European destinations

Source: http://www.viamichelin.com/

Vicinity to the international airport and port

• Trebišnjica River with two hydro power plants

• Rivulet Sušica and a number of other smaller watercourses

• Trebinje and Bileda lake rich in fish

• Pure spring water of high quality

• A large amount of precipitation

• Large reserves of groundwater

• The possibility of irrigation 90% of agricultural land

Water resources of the City

LABOUR MARKET

Education

Source: Visit schools and universities from 7 till 9 March 2016.

• 4 schools

• 539 the number of pupils enrolled in 2015/2016

Elementary

school

• 4 schools

• 1,260 the number of pupils enrolled in 2015/2016

Secondary Schools

• 4 faculties

• 606 the number of students enrolled in 2015/2016

Higher education

Agency for learning Foreign Languages : 3 (Britannica, Cambridge, Cerovac)

Foreign Languages: English, Italian, German, Russian, French

People as a key success factor

1564

1608

565

48 16952

702

400

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

SSQ S UD SS and LEB SoHU HS US M.A. (M.Sc) Ph.D. (Sc.D)

An overview of available workforce

The employed The unemployed

7,981

4,748

The

employed

total

The

unemployed

total

[CATEGORY NAME]

[PERCENTAGE]

[CATEGORY NAME]

[PERCENTAGE]

[CATEGORY NAME]

[PERCENTAGE]

[CATEGORY NAME]

[PERCENTAGE]

[CATEGORY NAME]

[PERCENTAGE]

An overview of professional and skills structure

available workforce

Source: xxxxxx, situation existing at the date of xx.xx.2014.

Average salary

•Average net salary in the Republic of Srpska : 825 BAM*

•Average net salary in the Republic of Srpska : 830 BAM*

•Average net salary in Trebinje : 835 BAM*

•Vacation : 20 days

•On every fourth year of service : 1 day

*2014. year

KEY SECTORS

• Tourism

• Agriculture

• Energy

Key sectors

An overview of enterprises by size

Registered crafts:420

131 crafts152 workshops

91 service trades46 carriers

Source: APIF 2014

2% 4%

16%

78%

Chart Title

Large enterprises - over 250 workers

Medium -sized enterprises from 50 to 250 workers

Small enterprises - from 10 to 50 workers

Micro enterprises - up to 10 workers

Significant business entities

Foreign trade at the end of 2014.

• The total volume of trade :235 million BAM

• Realized export(Power Utility of the RS takes into consideration only HPP export) :

130 million BAM

• Import at the city level : 105 million BAM

• Export-import ratio: 123,5%

• The cover of imports by exports: at the level of the RS 54,5%, at the level of B&H

53,6%

• The most important export products: elektricity, tools for engineering industry,

confectionery products, essential oils, fish.

Economic trends

An overview of the tourism sector

38 744 120

Hotels, catering facilities

Average net salary in

BAM

Number of employees

Key facts

Source: APIF 2014.

• Vicinity of the Adriatic sea known as the receptive region

• Natural beauty of the karst(lakes, mountains, villages)

• The variety of natural tourist values

• Protection of the environment

• Healthy food and traditional Herzegovinian cuisine

• Various cultural-historical heritage (archaeological monuments of the past,

ethnology)

• Competitive prices

The advantages of investing in the sector

Increase of tourist arrivals and overnight stays

8697

15570

10549

16045

8762

14663 14582

21067

10952

1812218989

26578

0

5000

10000

15000

20000

25000

30000

Home arrivals Home overnight stays Foreign arrivals Foreign overnight stays

2013. 2014. 2015.

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

2013. 2014. 2015.

Total arrivals Total overnight stays

55% increased the number of tourists

“The Wine road of Herzegovina ” – 22 wineries from Mostar, Čitluk, Stolac, Čapljina,

Ljubuški and Trebinje are included . Creating new tourism products to revive

Herzegovinian villages, encourage planting new vineyards and develop tourism in

Herzegovina.

“Paths of wine and taste of Herzegovina” – promotion of rural tourism in Herzegovina

and Dubrovnik-Neretva region Seenet - South East Europe Network for Energy and Transport (SEENET) is a network

of environmental NGOs for sustainable energy and transport in South East Europe.

“Branding Wines of Herzegovina and Pljevlja cheese ”- IPA cross-border cooperation

project between B&H and Montenegro, with the aim of standardizing the quality of

traditional products and penetration into new markets.

Participation in development projects

“Promotion of tourism and traffic signals” – cooperation between Trebinje i Nikšid on

the development of regional tourism through setting up tourism and traffic signals,

setting of outdoor interactive totem and improvement of tourist promotion of two cities

by mutual promotion campaign.

“Development of international tourism corridor through Herzegovina and

environmental protection in B&H” – cooperation with the Japanese agency for

international cooperation (JICA). Project is focused on the region of southern

Herzegovina taking into consideration the great potentials i.e. attendance and the influx

of tourists coming from the Adriatic coast, from Croatia and Montenegro. Goal is to

increase incomes and employment in the field of tourism.

Participation in development projects

• Transit, religious tourism and sightseeing

• Congress and business tourism

• Gastro tourism and development of DIY (do-it

yourself products) –handicrafts and souvenirs

• Stationary sports and recreational tourism

(activation of attractive mountain location,

intensive development of sports tourism)

Key vertical and the potential for tourism

development

• Revitalization of excursion places and rural areas

• Development of hunting and fishing tourism, winter

and ethno tourism

• Improvement of existing and construction of new

facilities for adventure tourism (paragliding, mountain

biking, speleological tourism, photo safari, ski-lift)

• Revitalization of military forts for tourism purposes

Key vertical and the potential for tourism

development

An overview of agricultural sector

9 793 73

Companies Average net salary in

BAM

Number of the

employed

Key facts

• Climate Mediterranean , as well as a variant of mild coastal-continental

• Very long and hot summers , mild , short and rainy winters

• Average annual 260 sunny days

• The average value of sunshine duration : 2006 hours

• The average annual temperature is 14,5 C

• Annual amount of precipitation : 1800-2700 mm

• Number of tropical days: 48

Favourable climatic conditions

• Favourable climatic conditions ideal for growing fruits , vegetables especially

vine.

• Apple, cherry and plum are the most common fruit crops , and potato is the

most common vegetable.

• The city area is the only vineyard in the RS , and is known for its production

of honey, tobacco, medicinal and aromatic plants, and high quality varieties

of figs

• Tipically traditional products for the city of Trebinje are wine and honey

• Trebinje has unpolluted soil, satisfactory water quality, which is a

prerequisite for the production of healthy organic food ( cheese, ham, the

“poljak” bean, early vegetables)

Tradicional products

Agricultural land in ha

Category Ploughfields

Arableland

Unarableland

Orchards Vineyards Pastures Meadows

Surface 5.775 7.266 12.540 46 175 12.840 1.270

Agricultural land

• 85,800 ha area of the city

• 20,106 ha area of agricultural land‚ 49% state, 51% private ownership

Source: USAID analysis

Year. Jan Feb Mar April May Jun July Aug Sep Okt Nov Dec Total

2006 131,9 144,4 319,9 132,1 76,6 115,9 33,5 101,9 115,1 26,6 114,6 249,4 1561,9

2007 160 210,2 188,9 9 148,5 11,1 2,5 18 204,6 127,5 264,1 174,5 1518,9

2008 125,2 87,6 157,7 112,1 40,8 53,7 31,7 7,6 132,8 99,6 231,3 295,9 1376

2009 327,9 218,8 168,7 51,3 56,3 153,1 48,1 26,5 120,8 335,9 265,5 282,4 2055,3

2010 344,4 387,7 189,9 91,8 237,4 200,3 4,1 41,6 107,2 253,6 519,1 357,2 2734,3

2011 112,6 124,2 101,7 58,3 131,7 13,6 52,7 8,2 37,4 180,1 51,9 181,5 1053,9

2012 90,6 312,5 0,8 288,9 126,1 15,2 63,2 0,8 191,2 244,7 138,3 354,1 1826,4

2013 311 371,1 306,4 153,4 126,8 80,4 2,5 139,7 44,2 189,6 259,2 32,9 2017,2

Average

monthly200,5 232,1 179,3 112,1 118 80,4 29,8 43 119,2 182,2 230,5 241 1768

Monthly overview of precipitation

An overview of average monthly temperature

Year Jan Feb Mar April May Jun July Aug Sep Okt Nov Dec

2006 4,3 5,7 8,1 13,6 17,6 20,9 24,9 22,4 20,5 17,1 9,6 7,5

2007 7,4 8,6 11 15,3 19,4 23,6 27,1 25,9 17,9 14,7 8,5 5,6

2008 7,1 7,6 9,9 13,2 18,8 23,2 25,5 26,7 19,3 16,1 11,5 7,5

2009 6,5 4,6 8,3 14,7 19,1 20,4 23,9 25,1 20,5 13,8 10,6 8,2

2010 5,1 6,3 8,4 13,8 16,5 21 24,8 24,7 18,8 13,7 12,6 6,7

2011 5,7 7,5 9,8 14,7 18 23,1 24,1 26,7 24,2 14,9 10,5 7,4

2012 3,9 3,2 11,7 12,6 17,6 24,4 27,6 27,3 21,5 16,6 13,1 5,3

2013 6,2 6,4 9,1 14,8 17,6 21,5 25,9 26,1 19,4 16 12,4 8

Average

monthly5,8 6,2 9,5 14,1 18,1 22,3 25,5 25,6 20,3 15,4 11,1 7

Agricultural and food production records export increase of traditional products typical for the climate of Herzegovina:

• Wines from wineries “Vukoje”, “Monastery Tvrdoš” and “Anđelid”already have important place on the list of highly recognizable wines, that prove numerous acknowledgements and medals won at the local and international fairs and exibitions in the last few years

• Richness of plants, pastures and quality water provide a healthy environment to bees, therefore honey produced here reaches a very high aromatic level

• Production and sale of medicinal herbs and essential oils is on the increase

• Total amount of produced edible fish is exported

Traditional Products Export Increase

• Agricutural Cooperative “Petrovo polje”, its main activity is viticulture, as well as

production of all traditional and typical products on the organic base.

• Beekeepers Cooperative “Žalfija”, covers the region of East Herzegovina. Its aim

is development of beekeeping sector by encouraging the production, placement

and sell of bee products from this area.

Cooperatives

• The aim of Association of Winegrowers and Wineproducers “Vinos” from East

Herzegovina is to create a worldwide recognizable brand , control the grape

origin and thus geographically protect wines produced in these areas.

• The aim of Trebinje Businessmen Association is faster and more transparent

resolving the problems arising in economic processes .

Associations

• Karst area is mostly covered with karst vegetation

• Potential of high forest excelllent in quality is around 750 000 m3

• Medicinal herbs:

• 2000 plant species

• around 300 species interesting for pharmacology

Herbal Potential

• Development of fruit-growing in the area of karst fields

• Viticulture (Popovo polje, Trebinjsko polje and Lastva)

• Tobacco cultivation in the area of Trebinjska šuma

• Production of early fruit

• Beekeeping and bee products production

• Cattle breeding, mini farms and dairy farm

• Collecting, purchasing and processing of medicinal herbs

• Production of edible fish

• Production of indigenous vegetable species from Herzegovina (the “Poljak” bean)

– organic production

Objectives and Trends

Overview of Energy Sector

8 2077 1238

Company Average net salary in

BAM

Number of employees

Key facts

Hydro Power Plant on the Trebišnjica River is a system consisting of:

• ”HPP Trebinje 1“ is non-diversion hydro power plant which uses water of storage Bileda reservoir. Installed power is 180 MW.

• ” HPP Trebinje 2“ is located directly below the dam Gorica. Gorica storage uses water of the Trebišnjica River from upstream ”HPP Trebinje 1“. Installed power is 8 MW.

• ”HPP Dubrovnik“ was built as diversion facility, located along the very seashore. Installed power is 216 MW.

• ”HPP Dabar“ is power plant in the intial construction phase, its headquarters is in the building of HPP. It is planned to be built as the first hydro power plant of the project “Upper Horizons”.

Hydro Potential

• Stone aggregrate• Art stone• Speleothem• Sand

Mineral Resources

STIMULATIVE BUSINESS

ENVIRONMENT

Liberal Foreign Trade Regime With Most Countries

CEFTA Agreement30 million

Preferential export regime with USA, Australia, New

Zealand , Switzerland, Norway

, Russia, Japan, Canada and Iran

Agreement on Free Trade concluded with Turkey

- 70 million

Prefernatial Trade Agreement concluded

with the EU, 28 countries- 500 million

• CEFTA Agreement offers opportunity of product placement on the internationalmarket.

• Central European Free Trade Agreement *.

• Stabilisation and Association Agreement between European Communities andtheir Member States and Interim Agreement on Trade and Trade-related Issues.

• Agreement on Free Trade concluded with Republic of Turkey

• Regional and Bilateral Agreements on Foreign Trade with theEU, USA, Japan, Switzerland, New Zealand, Norway Iran.

International Agreements

*Signatories of the Agreement are: B&H, Albania, Croatia, ex-YU country Macedonia, Moldavia, Montenegro, Serbia, and United Nations Interim Administration Mission in

Kosovo

Stimulative Tax Policy

A payer who, in the year for which profit tax is identified, realizes over 30% of the total achieved profit by export, is exempted from profit tax for that year and other allowances.

Lower Taxes, Higher Profit

Description B&H Serbia Montenegro

Income tax 10% 10% 12% - 40%

Profit tax 10% 15% 20%

VAT 17% 20% and 8% 25%, 13%, and 0%

NameMeasuring

UnitAverage price in EUR

(with VAT)

Water with sewage m3 1,59

Garbage collection m2 0,28

Central heating MWh 102,07

Electric power kWhHigh tariff 0,067

Low tariff 0,047 – 0,123

Telephone Subscription

SUBSCRIPTION FOR LANDLINES 8,91 – 11,34LANDLINES 0,02 – 0,18 per minute,

SUBSCRIPTION FOR MOBILE PHONE 5,98 – 53,84Mobile 0,08 – 0,14 per minute

Internet Subscription12,56 -131,61

Mobile Internet 5,98 – 23,93

Overview of Energy-Generating Products Prices

for Business Users Located in Trebinje

Overview of Premises/Land Price

Business premises lease:

Arranged by zones:I zone 16 BAM/m2

II zone 12 BAM/m2

III zone 9 BAM/m2

Municipal building land development costs in 2016

Arranged by zones:I zone 126,41 BAMII zone 105,87 BAMIII zone 87,07 BAMIV zone 65,24 BAMV zone47,94 BAM

VI zone 31,54

• 1-3 days necessary for company registration

• 15 days necessary for urban planning permit issuing

• Up to 30 days necessary for construction permit issuing

• 5 days necessary for company closure

• Economic council consisting od representatives of public, private and civil sector contributes to better planning of the city development.

• City is in the process of certification of the local community with favourable business environement (BFC)

Effective City Administration

•Citizen Service Centre (provides fast and efficient service where a citizen can in one place, in shortest possible time, process the request addressed to city administrative service)

•Centre for Permits from Construction and Entrepreneurship Area (shortened procedure of obtaining various permits for construction, i.e. entrepreneuers shops registration)

•Inspection and municipal police services

Local Administration Services

• Agency for Development of Small and Medium-Sized Enterprises(SME)

• Provides support to small and medium-sized enterprises development.• Encourages establishment, business operations and development of

micro SMEs.• Offers help, advice and information, training and consulting services.Agency priorities are as follows:

•Development and implementation of development projects•Offering legal and consulting services to the clients•Promotion of entrepreneurship in the city area•Organization of educational events for potential and existing entrepreneurs

Support to Private Sector

• Business Incubator Trebinje• Helps to entrepreneurs in providing a quality business premises with

necessary infrastructure at starting business under favourable terms• Services of Business incubator can be used by all newly established

companies and individuals who has an intention starting their own business.

• Acceptance criterium is quality of a business idea and an entrepreneur who has to realize that idea.

• Incubator has:• 21 offices, total area 570 m2,• Large hall for seminars with accompanying equipment for

seminars, workshops and similar meetings, capacity around 25 seats.

Support to Private Sector

Access to Capital

Financial Sector (branch offices or subsidiaries)

• 10 banks• 6 microcredit organizations• 9 insurance companies

Financial Institutions

Financial Institution Address Telephone number

Website

NLB Razvojna banka a.d. Svetosavska 3 059 261-479 www.nlbrazvojnabanka.com/

Nova banka a.d. Herceg Stefana Kosače 1 059 260-235 www.novabanka.com/

Sberbank a.d. Banja Luka Kralja Petra Prvog Oslobodioca bb

059 270-220 www.sberbankbl.ba/

Hypo Alpe-Adria Bank a.d. Preobraženska 2 059 273-513 www.hypo-alpe-adria.rs.ba/

Komercijalna banka a.d. Dušanova 21 059 273-674 www.kombank-bl.com/

UniCredit Bank a.d. Banja Luka Kralja Petra Prvog Oslobodioca 22

059 273-140 www.unicreditbank-bl.ba/

Raiffeisen Bank Vuka Midunovida bb 059 270-484 www.raiffeisenbank.ba/

•Health Centre- 8 medical clinics with 15 teams of family medicine and accompanying specialized services.

•General Hospital - 160 beds•Pharmacy•550 workers employed in health sector

•Private practice is in development process:•6 medical clinics•9 dental clinics•10 pharmacies

Public Health and Social Welfare

Health Institutions

Institution Address Telephone number

Website

Public Health Institution, General Hospital Trebinje

Dr Levija 2 059/223-755 www.bolnicatrebinje.com

Health Centre Trebinje Dr Levija 2 059/261-351 www.domzdravljatrebinje.com

Health Vocational School

Vožda Karađorđa 1 059/270-590 centarsrednjihskolatrebinje.org

Institute for Health Protection of the RS, Regional Unit Trebinje

Stepe Stepanovida bb 059/240-004 www.phi.rs.ba

Health Insurance Fund of the Republic of Srpska, Branch office Trebinje

Preobraženska 1 059/270230 www.zdravstvo-srpske.org

BUSINESS ZONE

Business Zone Volujac

Ownership

Type

Area

55% state, 45% private

Brownfield

85 ha

Zone use Industrial (prohibited construction of factories or plants-major polluters)

Number of companies in the area 4

Method of sale Auction

Distance from the zone Highway: 1km, Railway: 70km,

Seaport: 30km, Airport: 45km.

Electric power supply Yes

Voltage Substation 35/10 kV

Water availability Industrial water

Gas availability No

INCENTIVES FOR INVESTORS

Incentives for Investors

Stimulating Employment Loans

• Opportunity of loan funds use in the amount of:– from 30.000 BAM (for family farms) up to 1.000.000.BAM (for enterprenuers and

companies)

– Interest rate 1,5%

– Repayment period from 7 to 10 years,

– Grace period duration from 24 to 36 months and opporunity a credit line regainaccess.

Out of the funds realized pursuant to the Law on fees for use of natural resources forelectric power generation, the loans are awarded for stimulation of employment, on thebasis of the Decision on criteria for loans award and terms for loans use and theProgramme of use of funds realized on this basis..

SUCCESSFUL STORIES

• The privatization was carried out by the concern Swisslion-Takovo ltd Belgrade (Beograd) in 2007.

• After the purchase was performed company changed its name into ”Swisslion industrija alata“ Joint-stock Company Trebinje.

• Production of goods is in the value of 70 million BAM • It is one of the leading companies in the Republic od Srpska.• Swisslion has more than 370 trained workers and that number is constantly increasing

due to the expansion of production range. • It has the most modern product line in Europe. • 12.387.000,00 BAM was invested in Trebinje production capacitites in 2013.• The Company exports to the neighbouring countries, as well as to Australia, Austria,

USA, Sweden, Denmark, Hungary, etc.• Expansion of production lines having area of 3600m2 is planned for storage of finished

products.

Source: www.popovopolje.com

• Popovo polje, Joint-stock Company, established in 1977, is dealing with fruit production.

• Production is based on the use of modern technologies,and the team of agronomists is in charge of products quality following the world standards.

• Orchards are located in the fertile field of Popovo polje, located betweenTrebinje and Ljubinje.

• Apples, sweet cherries and grapes are produced on the plantation, and the products are placed on the local and foreign markets.

• Modern packing department includes complete process from washing to classification by size, weight and quality.

• The fact that apples produced in Popovo polje are already recognizable brand on the many European markets is shown through the data that most of this yearsgrowth, over 1000 tons, will be exported to the European Union.

• The current 75 ha planted by apples is planned to be expanded to 250 or 300 ha until 2020.

Total area cca 130 ha

• Tradition of viticulture in Herzegovina and ideal climatic conditions for grape growing enable achievement of top quality.

• Entire wine grape vintage of 400 tons annually is placed to the prestigious wineries in the surrounding and abroad.

• Assortment:- Vranac- Cabernet- Merlot- Chardonnay- Žilavka- Cardinal

Total areacca 20 ha

• Sweet cherry plantations

• Assortment:-Karina- Kordia- Skeena- Lapins

QUALITY OF LIFE

Trebinje is also a city of sport and it has:

• Sports Hall “Miloš Mrdid“• Small Sports Stadium“Aleksandar Masleša“• Olympic Swimming Pool “Banje“• Football Stadium “Police“• Sports Courts “Srđan Aleksid“• Other small sports facilities• There are 42 registered sport clubs in Trebinje• International Basketball Cup “Dejan Bodiroga“ and Traditional

Summer Sports Camp of the Republic of Srpska are held every year

• Good results are achieved in martial arts, football, basketball and swimming...

Sport-Orientied City

Traditional Cultural Manifestations:• Sveti Sava Ceremonies• Trebinje Summer Ceremonies –Drama Amateurs Festival• Dučid s̍ Poetry Evenings • Mimosa Days • Youth Eco-Camp“Ušde”, • Jumps From the Stone Bridge “Days on the Trebišnjica River”.

Cultural Institutions: • Museum of Herzegovina• Cultural Centre• Public Library• Youth Centre• Institute for the Protection of the Cultural, • Historical and Natural Heritage

City of Culture

• Orthodox Cathedral of St. Transfiguration• Catholic Cathedral of the Birth of Mary• Osman Pasha Mosque• Monastery Hercegovačka Gračanica• Monastery Tvrdoš, Monastery of St.Apostols

Peter and Paul• Church of St.Vasilije (Basil) of Tvrdoš and Ostrog• Monastery Duži• Monument of Petar II Petrovid Njegoš• Museum of Herzegovina• Arslanagid/Perovid Bridge

Sights

CONTACTS

Contacts

Grad TrebinjeVuka Karadžida 2

Trebinje

Telephone: +387-59-273-460

Fax: +387-59-260-742

Email: grad@trebinje.rs.ba

Web: www.trebinje.rs.ba