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Republika Srpska

Zvornik Municipality

GeneRal infoRMationThe Municipality of Zvornik is situated on the left bank of the Drina River, in the northeast part of Republika Srpska and Bosnia and Herzegovina.

VCurrency

GDPGDP per capitaAverage net wageWage contributionsPersonal Income TaxProfit TaxVATInvestment opportunities

Convertible mark (KM)1 € = 1.955380 KM8,6 billion KM (2012)6.006,00 KM (2012)808 KM (2013)33%10%10%17%www.investsrpska.net

EntitySurface areaPopulationMayorAddressTelephoneFaxWebE-mail

Republika Srpska371,95 km2

63.688Zoran StevanovićSvetog Save 124, 75 400 Zvornik+387 56 232 200+387 56 232 221www.opstina-zvornik.orgzvornik@teol.netinvestirajuzvornik@opstina-zvornik.org

Road network in the Zvornik Municipality (km)

102475022

175

Railway transport BiH-Serbia (Tuzla-Zvornik-Loznica-Ruma railway) Road transport:

• Arterial roads (M19 Bijeljina-Zvornik-Sarajevo and M4 Zvornik-Tuzla-Doboj)• Regional roads (R456 Karakaj-Šetići and R454a Bratunac-Drinjača)• Local roads

GeoStRateGic poSitionZvornik is situated at the intersection of the roads leading to major urban centers in BiH and the region. Zvornik is connected to the road and railway networks of the neighboring Republic of Serbia via four bridges on the Drina River, which constitute border crossings:

• Karakaj – I category international border crossing for road traffic• Šepak – international border crossing for passenger road traffic• Zvornik – international railway traffic border crossing• Zvornik Stari most – frontier traffic border crossing

Source: Decree on Selection of the Border Crossings in BiH, BiH Official Gazette no. 39/12

Why inveSt in ZvoRnik?Zvornik is a developed municipality seeking to revive a long industrial manufacturing tradition and promote development of other entrepreneurial activities by offering both domestic and foreign investors an exceptional location and favorable conditions for a wide range of activities:• Established The ‘Jadar’ Business Zone close to the border crossing to the Republic of Serbia, which operates as a customs

terminal.• Simplified procedures, reduced waiting times and cut costs for starting and operating businesses.• Strategically expressed its commitment to sustainable exploitation of natural resources and use of cultural and historical

heritage in development purposes.

LjubljanaBečBudimpeštaBukureštSofijaMinhen

514697483761560921

SVNAUTHUNROUBGRDEU

huMan ReSouRceS In the Zvornik Municipality, workers with experience in manufacturing, as well as with knowledge and skills acquired in the local, national or regional educational institutions, may be hired at competitive wage levels.

Source: Republika Srpska Employment Bureau – Zvornik Branch Office. The Republic’s Statistics Institute, Republika Srpska Tax Administration

Source: Republika Srpska Employment Bureau – Zvornik Branch Office

Distance to major citiesin the country and the region (km)

Distance to europeancities (km)

SRBSRBSRBSRBCROMNE

TuzlaBijeljinaBanja LukaSarajevoBeogradNovi Sad ŠabacLoznicaZagrebPodgorica

4754

2041401701548330

375343

Number of employeesNumber of registered unemployedAverage net wage (in KM)

7.9064.898

763

7.9325.115

755

7.9225.108

762

2011 2012 2013

age structure of registered unemployed

5%

33%

27%

18%

17%

15 - 20 godina20 - 30 godina30 - 40 godina40 - 50 godina50 - 65 godina

Ratio of average wage in RS and Zvornik

820800780760740720700680

2010. 2011. 2012. 2013.

ZvornikRepublika Srpska

Source: The Republic’s Statistics Institute

education structure of registered unemployedNumber of unemployed

223217213160148128

OccupationMechanical engineering technicianAuto mechanicGraduate economistLocksmithElectrical engineering technicianRoad traffic technician

Level of educationUnskilledSemi-skilledSkilledHighly skilledSecondary school qualificationsTwo-year post-secondary qualificationsUniversity qualifications 180 ETCUniversity qualifications 240 ETCMaster 300 ETCMasterPhD Total

Number of unemployed1.350

491.653

231.460

1071183291801

5.108

vocational specialties in local educational institutions

Source: Department for Economy, Agriculture and Social Affairs of the Zvornik Municipality, http://www.tfzv.org/

Education level

Secondaryeducation

Highereducation

Number of educational institutions

1. Technical School Center2. High and Vocational

Secondary School„Petar Kočić”

1. Faculty of Technology ofthe Sarajevo University

Vocational specialties

• Mechanical engineering and metal working• Traffic• Electric engineering• Chemistry, non-metals and printmaking

• Economics,law and commerce

• Catering and tourism• Health care

• Chemical process engineering• Food engineering• Environmental engineering

• Electrochemical engineering• Technology management

BuSineSS enviRonMent• Small and medium enterprises are predominant in the economy of the Zvornik Municipality.• Zvornik Municipality strives to revive manufacturing and thereby restore its status from the second half of 20th century, when the town ranked as

the third-largest industrial center in BiH: at that time, between 13.000 and 15.000 workers from Zvornik and neighboring municipalities worked in the plants for wood processing, manufacturing of construction materials, exploitation of mineral waters, production of alumina and rubber, as well as in the metal, textile and food factories concentrated in the suburban settlement of Karakaj.

• The number of registered businesses in Zvornik Municipality has been raising as of 2008.

number of enterpreneurs

Number of businesses per the standard business classification

Source, RS Statistics Institute, 2013 Statistics Annual Report

ActivityAgriculture, forestry and fishingMining and quarryingProcessing industryConstructionTrade, wholesale and retailTransportation and storageAccommodation and catering Information and communicationsExpertise, scientific and technical activitiesPublic administrationEducationHealth protection and social workArt, entertainment and recreational activitiesOther services

No.218

13552

192509

10147

132567

114

Source: Department for Economy, Agriculture and Community Activities of Zvornik Municipality.

ActivityCraftsTradeRestaurants, cateringOtherTotal

Regular businesses204252153174783

„JaDaR” BuSineSS Zone• Jointly owned by RS Government and Zvornik Municipality, the latter has

management rights,• Covers 17,58 hectares of developed land in the Karakaj industrial zone,

purchased from a company in bankruptcy,• 4 km from downtown Zvornik,• Adjacent to the border crossing serving as a customs terminal,• Connected with M19 and M4 arterial roads and the loading station on the

international railway line Republic of Serbia – Zvornik – Tuzla,• Available common infrastructure:

Source: RS Statistics Institute, 2013 Statistics Annual Report

number of businesses per the organizational form

number of registered businesses

Organizational formPublic companiesStakeholders companiesLimited liability companiesPartnerships companiesGeneral cooperativesSpecialized cooperativesInstitutionsLegislative and executive bodiesCourt and judiciary bodiesAssociationsFondationsReligious organisations/ communitiesBranch offices of foreign companiesOther organizational formsTotal

No.3

61431

457

4322

1611

1512

738

2008 2009 2010 2011 2012500

750

700

650

600

550

Source: RS Statistics Institute, 2013 Statistics Annual Report

The procedure and conditions for investors to access the services of the “Jadar” Business Zone have been set by the Rule Book on the Terms and Conditions for Leasing the Land and Facilities to Investors:

• Land and facilities may be leased for a period of 5 years, which may be extended to 10 years after the end of the first year since the production started.• The lease amount is proportional to the surface area of the leased property.• The lease amount is lower during the pre-production period, not to exceed 6 months.• An investor may be exempted from up to 60% of the total lease amount if he invests own funds into construction and other works for adaptation of the

facility for its general purpose (electricity, water, sewer system.• Priority is given to investors who create more jobs (at least one employee per 1.000m² of leased space (land), i. e. at least three employees per

1,000 m² of leased operational facilities and whose production is export-oriented.

The business zone offers investors the following benefits:• Faster and simpler issuance of construction permits issued by the municipal administration,• Lower starting and operating costs,• Opportunities for linkages with other companies in the business zone,• Access to incentives and other support instruments,• Free promotion of the company as part of the promotional activities of the business zone.

Companies operating within the „Jadar” Business Zone:Countryof originSerbiaSerbia

Company

EnWo DOOHEMOS

Sector/activity

Wood/pellet manufacturingWood/manufacturing of railway crossties

Permanent jobs4220

Exports as shareof total output

99%99%

the physical plan of the Zvornik Municipality envisages constructionof a commodity logistics center adjacent to the „Jadar” Business Zone

costs of charges, fees and approvalsThe costs charges, fees and approvals were calculated on the example of an investor in the metal- or wood-processing industry. It is assumed that the size of the planned plot for purchase is 5.000m² with the construction ratio of 20%, i.e. with the facilities of 1.000m² of total surface area, as well as that the plant would employ 30 workers in a machine park requiring 100kW of power.

Costs of charges, fees and approvals until issuance of the zoning approval for construction of a production facilityAdministrative fee for the DecisionCosts of verification of urban and technical conditionsTotalCosts of charges, fees and approvals untilissuance of the construction permitDevelopment of the construction land and rentAdministrative fee for the construction permitReal estate cadaster feeUtilities feeFee for preparation of urban documentationRe-zoning of agricultural land as construction landFire and other approvalsEnvironmental permitPower grid connection approvalTotalCosts of charges, fees and approvals until issuance of the inspection certificateAdministrative fee for the inspection certificateTechnical inspection commissionTotalTotal (1+2+3)

New structure in place of an old on

30 KM80 KM

110 KMNew structure in

place of an old on0 KM

385 KM1.180 KM

770 KM1.460 KM

0 KM500 KM50 KM0 KM

3.235 KMNew structure in

place of an old on385 KM900 KM

1.285 KM4.630 KM

Newfacility30 KM80 KM

110 KMNew

facility33.400 KM

385 KM1.180 KM

770 KM1.460 KM

0 KM500 KM50 KM

9.400 KM*47.145 KM

Newfacility

385 KM900 KM

1.285 KM48.540 KM

Note: For building new structures in place of old ones, no fees are levied for the preparation of urban documentation, rent and development of construction land, because these fees had been paid for the existing structures. If new structures are larger than the existing ones, these fees are payable only for the difference in the surface.* Approval for the power grid connection for the two existing transformers has been paid, so this only concerns the installation of a new transformer (80 KM + VAT per 1kW).

Road

Water supply

Sewage systemNatural gas installationPower gridTelecommunications network

√

√

√√√√

√

√

√√√√

Technical characteristicsAccess and internal roadsPipeline with two wells, a water tower and hydrants for each structureTwo manholes and a main collectorNatural gas stationSubstation with two 1.000 kW transformersPre-existing connection with 10 outlets

To the zone Within the zone

inveStoR SuppoRt anD incentiveS• The Municipality of Zvornik continuously implements reforms to create favorable business environment:

• Spatial planning documentation of the Municipality has been completed or its completion is under way.• The municipal administration simplified procedures, reduced waiting times and cut costs for starting and operating businesses:

• real estate tax was cut to 0,15%;• procedure to issue construction-related approvals (location requirements, construction permit and inspection certificate) were reduced to

three steps;• waiting times for issuance of construction-related approvals are shorter than average in Republika Srpska (up to 5 days for location

requirements, up to 3 days for the construction permit and up to 10 days for the inspection certificate, depending on completeness of submitted documentation);

• the rent per 1 m2 of useful area of production and ancillary facilities ranges from 0,5% (Zone 6) to 5% (Zone 1) of the average construction price per 1 m2;

• the documents and actions of legal persons related to labor and labor relations are exempt from the administrative fee;• working hours of the Counter Service Hall of the Administrative Service of the Zvornik Municipality has been extended to help businesses

access its services in a more efficient manner;• certain special concessions for operations out of the “Jadar” Business Zone, whose initial surface area was augmented by 9.4 hectares

through purchase of land from a bankrupt company.• Zvornik Municipality offers investors other services as well:

• it provides information about the procedures and costs of starting a business in Republika Srpska, i.e. assists new investors in acquiring necessary approvals and permits within jurisdiction of higher levels of government;

• provides information and logistical services to businesses when applying for incentive funds allocated by responsible institutions of Republika Srpska and BiH;

• organizes presentations of the programs of the RS Investment-Development Bank and approves projects submitted to that institution;• provides aftercare services to businesses through the Collaborative Network jointly with the Republika Srpska Ministry of Economic Relations

and Regional Cooperation.• Registration of legal entities is conducted in the one-stop-shop of the branch office of the Business Information and Finance Services Agency

in Zvornik, Svetog Save (no house number), within three days, link www.apif.net • Electronic registries with detailed overview of permits and licenses the investors in Republika Srpska and Bosnia and Herzegovina could be

faced with including costs:• Republika Srpska Government: http://www.regodobrenja.net/index.php?jezik=1• BiH Ministry of Foreign Trade and Economic Relations: http://rap.mvteo.gov.ba/egfVwOdlukaJedinice.aspx

• Fiscal and non-fiscal investment incentives are available to investors at all government levels in BiH. The lists of fiscal and non-fiscal investment incentives at the level of Republika Srpska and BiH are available at the following links: • Republika Srpska Government/ Invest Srpska: http://www.investsrpska.net/index.aspx?PageID=436&menuID=215&langid=1• BiH Ministry of Foreign Trade and Economic Relations:

http://www.mvteo.gov.ba/izvjestaji_publikacije/izvjestaji/default.aspx?id=6175&langTag=en-US

coStS of DoinG BuSineSS• Average fuel price is lowest in the region at 2,78 KM/l.• The territory of the Zvornik Municipality is served by power transmission facilities of 400kV, 110kV, 35kV, 10kV and 0,4kV voltage levels. The

average price of electricity is 0,085 KM/kWh.• Distribution and sales of natural gas used for generation of heat is conducted through the measurement and regulation station in the center of

the town, with one branch connected to the natural gas network of the Republic of Serbia.

investor contact persons

cost of utilities

Source: AD “Vodovod i komunalije” Zvornik

Natural gasPrice (KM)942,00

Unit1.000 Sm3

Length of existing gas network (m)6.956,825.402,81

28.505,31

Pressure500 mbar 200 mbar

3 bar

Cost of heating (KM) with VAT7,90

Unit1 m2 of heated business premises

Telecommunication servicesLandline telephonyMobile telephony - PostpaidInternet – ADSL Flat (8192/512 Kb/s)

Connection cost (KM)29,000,851,00

Monthly subscription (KM) 16,4015,0060,00

Type of service

WaterSewage systemWaste disposal

Industrial zone2,66/m3

0,89/m3

25,60/ container 1,1 m3

89,00/ container 5 m3

10,00/ bin 0,1 m3

Town2,66/m3

0,89/m3

0,67/m3

Price (KM) excl. of VAT per unit

Mr. Danijel DragičevićTel: +387 56 232 201danijel.dragicevic@opstina-zvornik.org

Ms. Dušica SavićTel: +387 56 232 226dusica.savic@opstina-zvornik.org

Ms. Biljana MilićTel: +387 56 232 244biljana.milic@opstina-zvornik.org

natuRal ReSouRceS anD cultuRal anD hiStoRicalheRitaGe in the SeRvice of SuStainaBle DevelopMent The 2012-2017 Integrated Development Strategy of the Zvornik Municipality elaborated in detail the potential of exploitation of natural resources and cultural and historical heritage for the purposes of development promotion.

The Drina River flows along the whole length of the territory of the Zvornik Municipality (49 km).Together with its reservoir and its tributaries, it offers a considerable power generation and tourism potential.

DrinaDrinjača

Surfacearea

of the basin17.886 km2

435 km2

Installed powerof the planned

hydro power plant93,4 MW25,4 MW

Medianannual

flow387 m3/s

6,54 m3/s

Average annual power generation of the planned

hydro power plant396,5 GWh97,8 GWh

Specific flow

21,64 m3/s15,03 m3/s

Zvornik Measurement Station – Jaroslav Černi Institute, Elektroprivreda of Republika Srpska

the physical plan of Republika Srpska envisages a possibility of opening of the waterway from the Zvornik Municipality to the confluence with the Sava River, along with construction of hydro power plants.

investment opportunities:The Zvornik Lake, which was created by building a dam and which is currently featuring small beaches, numerous weekend cottages and a number of tourist facilities in its coastal area, offers opportunities for development of fishing and sport-recreational activities on water (swimming, boating, kayaking and canoeing, rafting, log-rafting, water skiing).

The architectural complex – Old Town Zvornik (Đurđev grad) was declared a national monument of BiH. Its restoration and construction of ancillary facilities would create a tourist complex that would meet the demands of the modern tourism at the country level (transit and culture tourism, city vacationing etc.)

The Roman quarry in Dardagani is an exceptionally valuable archeological site. It is the largest and best-preserved Roman stone monument of a pit type in the Balkans, and likely in all of Europe. The inside pit consists of hundreds of meters of galleries and corridors bearing traces of Roman stonework and stone masonry. The goal of the Zvornik Municipality is to develop the site as a venue for culture and scientific tourism.

Vitinički Kiseljak is the location with nine mineral springs of varying quality, capacity, medicinal properties and taste, whose beneficial effects on human health had been recognized in late 18th and early 19th century and later substantiated through chemical and biological tests. The Zvornik Municipality invested considerable resources into the refurbishment of the springs, but accommodation capacities that would permit development of curative and/or spa tourism are still missing.

600050004000300020001000

02010 2011 2012

Tourist visits Overnight stays

Number of recorded tourist visits and overnights, 2013 Statistics Annual Report

MoSt pRoMinent coMpanieS in the ZvoRnik MunicipalityThe alumina producing plant exporting 100% of its output (methalurgic alumina of the SANDY type, zeolite, hydrate and water glass/sodium silicate) to the EU market. It employs over 1000 workers and is linked with many small firms in Zvornik and neighboring municipalities.

“Smrčak” Company for Harvesting, Processing and Trade in Mushrooms, Medicinal Herbs, Forest Fruits, Fruit and Vegetables exports 98% of its products.

The “Studen-prom” is a company for processing of snails and production of snail meat, as well as for processing of assorted berries, which possessec necessary certificates and meets the conditions for exports to the EU market.

The “Daž” Company, with its Alexandria brand, is among the leaders in the confectionnery sector in BiH and it is dedicated to production of high-quality, safe and biologically valuable foods.

The «Vitinka» Company encompasses two plants for bottlling of mineral and spring waters, and for production of non-alcoholic beverages and concentrates with installed capacities and product qualities that place it among the best in BiH.

“Obuća” doo for manufacturing of footwear employs 360 workers and exports 90% of its products (LOHN jobs).

The basic activity of the “Tisa Mod” Company, which employs 56 workers, is garment manufacturing for export markets (100%).

The “Global enterijeri” is a company that employs 20 and manufactures and sells furniture on its 3,800 m2 of display area.

The Wood Center “Mega sistem” for production, trade and services has considerable turnover and 32 employees. www.megasistem.ba

AD “Zvornik putevi” is a leading company in road and road facilities construction and maintenance in BiH.

“Enikon-mont” Company designs, produces and installs equipment for industrial, chemical and power plants and employs 45.

“Zo-Ži” is among the leading manufacturers of wire mesh binor girders in BiH.

AD “Drina trans” is the most successful public road transport company in Republika Srpska, with 219 employees.

“Zvorničanka”– retail company with retail stores in Zvornik, Bratunac, Vlasenica and Srebrenica with over 170 employees.

SMRČAK

food production and processing

textile and footwear industry

Wood industry

construction

transport

trade

STUDEN-PROM

TISA-MOD

ENIKON-MONT

"ZO-ŽI" doo

DAŽ doo"Aleksandrija"