Investment potential of Mrkonji Grad municipality Position of

Investment potential of Mrkonjić Grad municipality.

Position of Mrkonjić Grad Ø Ø Mrkonjić Grad – Municipality located in the NE part of Bosnia and Herzegovina, in Republika of Srpska. Mrkonjić Grad is located 52 kilometres away from the administrative centre of the City of Banja Luka At the crossroads of important roads: -exit to the highway Belgrade. Zagreb to the North -102 km -exit to the Split harbour to the South 190 km Ø Ø the closest airports are in Banja Luka (64 km), Sarajevo (187 km) and Zagreb (225 km).

Statistics Ø Ø Surface Area of Mrkonjić Grad Municipality /685 km² Land structure: 54% agricultural land, 44% forest, 2% uncultivated land Ø Number of citizens /18. 136 Ø Density/26 inhabitants /km² Ø Ø Average altitude /600 -800 m Climate/continental, average annual temperature is 10°C

The Municipal budget 2012 -2014 in KM (BAM) 10, 946, 592 12, 000 10, 444, 348 8, 842, 490 8, 869, 533 10, 000 8, 699, 775 8, 620, 611 8, 000 6, 000 4, 000 2, 000 0 2012 2013 Income 2014 Costs

Why invest in Mrkonjić Grad Investors can benefit from: Significant natural resources and potentials for development of agriculture and food processing sectors and investment in value added wood products and other wood mass byproducts. Access to the 'Podbrdo' Business Zone, with available plots for greenfield investments ranging from 3, 000 m² to 6, 000 m² in size and multiple facilities for brownfield investments. Favorable geographic location, natural resources and human capital offer solid ground to potential investors in Mrkonjić Grad.

Human resources Favorable age structure of the labor force, with 68. 6% of population of working age. Period 31 March 2015 Labor force 2, 343 (active work force) 3, 545 employees Source Mrkonjić Grad Employment Bureau RS Tax Administration There are two secondary school in Mrkonjić Grad. Secondary School General-Program Secondary School Mechanical Engineering Secondary School Curriculum General program 242 - Mechanical engineering and metal processing - Business, law and commerce 159 - Textile and leather processing - Electrical engineering, Energy TOTAL 2014/2015 Enrollment 125 78 26 630

Economy Ø based on the development of small and medium enterprises, entrepreneurship and agriculture. Companies/Ltd. Sole proprietorships Commercial banks Insurance companies Ø 110 318 5 8 Major sectors of the economy in 2014, by total revenue Economic sector Wholesale and retail trade Electric power generation and distribution Construction Processing industry Total revenue, in KM 133, 263, 000 20, 217, 000 18, 866, 000 18, 055, 000

Prioritety sectors Agriculture -The agriculture sector offers investment opportunities in fruit and vegetable processing plants and meat processing plants in that direction the municipality has provided 60 tones of cold storage for fruit on Kotor.

Prioritety sectors Forestry and wood processing The sector offers potential for new investment in value added products of wood and other wood mass byproducts (e. g. pellets, wood chips etc. ). This has been recognized by investors, 19 wood-processing companies currently operating in the municipality and selling their products (furniture and joinery) on the markets of Bi. H, Serbia, Macedonia and beyond.

Energy sector -4 of registered entities in sector - 200 of employees ZP “Hidroelektrane na Vrbasu” a. d. Mrkonjic Grad installed capacity 110 MW Looking for an investor for 8 SHPP with following concessions: -SHPP Sokočnica 0, 75 MW -SHPP Меdna-Sklop 0, 89 MW -SHPP Ponor 9, 99 MW -SHPP Mrkonjic Grad 0, 43 MW -SHPP Staro Selo 0, 75 MW -SHPP Bjelajce 0, 58 MW -SHPP Mednа 4, 90 МW -SHPP Sana Prizren 3, 50 MW

Tourism Zelenkovac Excursion Area events -jazz festival, rock concerts Balkana Tourisam and Recreational Center Mountain Lisina Habitat for mushrooms -1. 300 Freshwater springs 360

Location packages for investitors In Mrkonjić Grad, investors can choose between: Two business zones: 'Podbrdo' Business Zone in the Podbrdo neighborhood 'Kula-Rudići' Business Zone in the Kula neighborhood Brownfield investment capacities: DIP 'Manjača' The Bolt Factory

'PODBRDO' BUSINESS ZONE (BZ) Name: 'Podbrdo' Business Zone Ownership Surface area Mrkonjić Grad Municipality 18 hectares 18 Number of land plots Land plot surface area 3, 000 – 6, 000 m 2 Land plots- sold 7 Available land plots Mode of sale Price of land plots up to 5, 000 m 2 Price of land plots larger than 5, 000 m 2 Purpose of the zone 11 Auction 4 KM/m² 3. 3 KM/m² Predominantly manufacturing

‘KULA RUDIĆI' BUSINESS ZONE (BZ) Name: 'Kula-Rudići' Business Zone Ownership Surface area Mrkonjić Grad Municipality 2 hectares Number of land plots 6 Land plot surface area 3, 000 – 6, 000 m 2 Land plots sold 0 Available land plots Mode of sale Price of land plots up to 5, 000 m 2 Price of land plots larger than 5, 000 m 2 Purpose of the zone 6 Auction 4 KM/m² 3. 3 KM/m² Business, commercial and service activities

Brownfield investment options Former DIP 'Manjača' Factory, 100% privately owned, located in the wider municipal area. The site is provided with reliable elecricity and water supply and connected to the sewerage network. The site offers 12, 591 m² of usable area of completed and adapted business premises. Former 'Metalac' Bolt Factory, privately owned, with 12. 000 m² of useable area of buildings provided with a full infrastructure.

Support to investitors provided by Municipality The investor incentives are available through the economic development incentive programs intended to boost the development of SMEs, entrepreneurs and farmers through provision of grants and soft-term credit lines. We were the second RS municipality to introduce fast registration of sole proprietorships in just one day. The urban permit, with all required documentation, can be obtained in one day. Information on charges for preparing and completing the urban permit documentation could be found at: : http//www. mrkonjic-grad. rs/

Foreign investitor in Mrkonjić Grad 'Bema' d. o. o, Business Unit Mrkonjić Grad - footwear factory. Slovenian investment in leather sector. The company employs around 300 workers and exports its entire output. 'R-S Silicon' d. o. o. Bjelajce manufacturing of the metal sillicium. The total investment is valued at approximately 30 million euros, the plan is to employ more than 100 workers. This investment shall be completed by September 2015, when the factory plans to begin operations.

Foreign investitor in Mrkonjić Grad 'MAK Mladost' d. o. o. Mrkonjić Grad textile and clothes manufacture. A Macedonian investment in clothing industry employing over 100 workers. The company sells all its products on foreign markets. 'Silvaco' d. o. o. Baraći - pellet manufacturing. The factory opened in 2014, it employs 34 workers. Its capacity is 3. 2 tons of pellets per hour, all output is exported to the markets of Slovenia and Italy.

Domestic Investitors in Business zone Podbrdo “Storia” d. o. o. Mrkonjić Grad-wood processing “Nobilis” d. o. o. Mrkonjic Grad-wood processing-fuel wood “Mrkonjić-putevi” d. o. o. Mrkonjić Grad-roads construction Fabrika peleta d. o. o. Novi Grad-pellet manufacturing

Nature, Culture, Sport and Tradition

Contact us: Municipality of Mrkonjic Grad Mayor: Divna Aničić Address: Trg Kralja Petra I Karadjordjevic 1 70260 MrkonjićGrad Phone: 00387 50 220 920; 00387 50 220 921 Fax: 00387 50 220 954 Email: kabinet_nacelnika@mrkonjic-grad. rs. ba Web: www. mrkonjic-grad. rs. ba Development Agency Director Goran Todorović Development Agency Address : Svetog Save br. 1 Address Svetog Save br. 1 70260 Mrkonjić Grad Telephone/fax 00387 50 214 257 Telephone/fa 00387 50 214 257 x dam@teol. net Email dam@teol. net Contact person Contact Mr. Goran Todorović, General Manager person