and investment potentials of Laktaši Municipality The business environment and investment potentials of Laktaši Municipality

Republic of Srpska Area 25,053 km2 (49% BiH territory) Population (cenzus 2013) 1,170,342 Administrative center Banja Luka Time zone GMT+1 (CET) Callcode +387 Internetdomain rs.ba Currency Convertible Mark (BAM) BAM 1 = EUR 1.95 GDP (2015) EUR 4,679,858,000 GDP per capita (2015) EUR 3,306 Average salary (2015) EUR 426 Inflation rate 0% Sovereign debt rating (Moody*s) B3/stable

The position of the municipality Laktaši compared to European cities City Distance Zagreb 160 km Sarajevo 250 km Ljubljana 300 km Belgrade 306 km Budapest 400 km Vienna 536 km Prague 820 km Milan 780 km Berlin 1244 km International airport Banja Luka – 3 km Highway Railway network

Strategic location and moderate continental climate Location Southeast Europe Northwestern part of BiH Western part of Republic of Srpska Area 388 km² Population 34.210 /11.293 households Population density 85 Climate Moderate continental Average temperature 12 °С Average annual rainfall 1010 l/m2. Time Zone GMT +1

Population and workforce Avaiable workforce 22% Number of employed 9.688 Number of employed in the private sector above 80% 28.000 students 5.000 graduate students Available in the wider area (Banja Luka)

Development strategy of Laktasi Municipality for the period 2014-2024. Vision The place of good ideas – a step ahead of others in entrepreneurship, food production and preservations of health Strategic objective 1 Competitive economic structure which optimally implemented key investment, agricultural and touristic potentials with a steady development of the municipality Strategic objective 2 Infrastructure arranged, attractive and tolerant social environment which provides premium quality of life in the local community Strategic objective 3 Well-preserved environment and energy awakened environment which sustainable use natural resources

Ideal location for establish business In the South-East Europe 3 1 2 Strategic position with access to 600 million customers. The ideal location for setting up a business in South-East Europe. A modern infrastructure ensures fast and safe transport of goods to the European Union and Middle East countries. 4 5 6 Business friendly environment and efficient local administration. Qualified and skilled workforce. Competitive labor costs. Availability of suitable industrial and business zones.

Free trade area Republic of Srpska is beneficery of free trade agreements and enjoys a preferential export regime with many countries and world: Central European Free Trade Agreements (CEFTA) Тrade Agreement with EU Free trade agreement with Turkey Free trade agreement with EFTA (Schwizerland, Norway, Iceland and Lichtenstein) Uniteral preferential regime with the USA,New Zeland, Switzerland, Norway, Japan,Russia, Kazakhstan, Canada and Australia

Total income economy Municipality of Laktasi 2015. in BAM 1.072.095.609,00 Profits 36.516.107,00 Exports 149.087.000,00 Imports 364.916.000,00 Coverage of imports by exports 40,85% Share of total export of Republic of Srpska 5,44% Share of total import of Republic of Srpska 8,25% Companies with headquaters in Laktasi Municipality 512 Enterpreneures (Sole proprietorships) 732 Other legal persons 175 Organizational unites of banks,microcredits organizations, insurance companies 15

Foreign investors already present 500 million EUR invested by domestic and foreign investors over the last eight years The most important investors are coming from Austria, Netherlands, Slovenia, Serbia, Switzerland and Croatia. They already invested in Laktaši

Attractive business environment Business friendly environment and efficient local administration Over 40 million EUR invested in the overall improvement of local community and development of the private sector (in this millenium) A large number of small and medium enterprises in all economic sectors - over 500 legal entities with headquarters in the municipality Local Economic Conuncil established to foster dialog between public and private sector Developed comunal infrastructure

Key economic sectors Key sectors: Trade (45% registered businesses), Metal and wood processing (23% registered businesses), Processing industry Food industry Construction

Industrial and business zones available 2 Industrial zones: Veliko Blaško Laktaši (fully occupied) 2 Business zones: Aleksandrovac Trn (mostly occupied) Agri-business park Aleksandrovac Possibility of Greenfield and Brownfield investment (Laktaši) Attractive locations and solid infrastructure The possibility of business cooperation with local companies

Overview of industrial and business zones

Business zone “Aleksandrovac” Purpose: production, but it is possible to develop business, trade and service industries Area: 28,9 hа. Ownership: Municipalitys’ Infrastructure available: Water and electricity supply. waste disposal, public lighting, telecommunications network Documentation: Regulatory Plan adopted Price per m2: 6,00 BAM Location: 7 km from the center of municipality Direct access to highway Banja Luka - Gradiska International airport Banja Luka in vicinity Distance to Banja Luka and the EU border 25 km Investors present: Mljekara Banja Luka, Jaksche Plasticna Tehnika, DUKAT Banja Luka, Cablex БХ, Industrija Monouso BH

Business zone “Aleksandrovac”

Business zone “Aleksandrovac”

Business zone “Aleksandrovac”

Agri-business park “Aleksandrovac” Feasibility study - Investment in agricultural business park "Aleksandrovac" Laktasi is acceptable and justified The plan is to open 1.500 new jobs by the end of year 2022 Justification of investment confirm the economic indicators which are suggesting that the effect of investment had a positive impact on the wider socio-economic environment and that the social and economic benefits outweigh the costs of the project. Covers area of 841,837 m2, of which 672 481 m2 or 80% represents plots for investors in agriculture, SMEs, greenhouses and similar agricultural production, sustainable energy and central facilities. In this zone, there are 111 plots whose sizes varying from 4,880 m2 to 8,500 m2, but would be divided or merged if neccessary. Plots for the central objects and objects of power plants are larger, from 11,285 m2 to 20,610 m2.

Agri-business park “Aleksandrovac”

Agro business park Aleksandrovac

Services for investors Investors are provided advantages in investing and obtaining all necessary permits and documents Investment Incentives Financial benefits such as reduction of fees for municipal construction and agricultural production facilities and the ability to pay obligations in installments. The municipality has a decision which offers advantages in the payment of compensation for land and rent - for production facilities with 50% discount and the opportunity to pay the amount in installments The procedure for obtaining a building permit has improved in a way to shorten the time required for obtaining the permits The municipality grants incentives for operations of business entities in the form of subsidies to the interest rate of 4% on loans for small businesses and entrepreneurs amount from 10,000.00 to 100,000.00 BAM

Unit Price in € without VAT Additional Information Utility prices Item Unit Unit Price in € without VAT Number of ponits Additional Information Communal tax (1)*(2)*m2 m2 0,00025 130 objects to 1.000 m2 0,0002 objects over 1.000 m2 Electricity KWh 0,049 Do not have its own substation 0,045 Have its own substation Water m3 1,45 Waste disposal Contanier 5 m³ 48 waste transport t 14 waste disposal Waste collection for businesses Lum sum 25-50

Two of nine spas in BiH are located in the municipality of Laktaši! Turistical resources Two of nine spas in BiH are located in the municipality of Laktaši! Banja Laktaši lens: cardiovascular diseases eye diseases psychiatric and neurological diseases water temperature 30,4C

Turistical resources Spa center Slatina – the biggest investments in area of tourism Spa center Slatina lens: Rheumatic diseases Posttraumatic conditions neurological diseases urogenital diseases Water temperature: 42C

Agriculture Agricultural land spreads over 25 hectares of which 88% is arable land Tradition in primary agricultural production Registered around 900 agricultural holdings In the area of fruit growing, dominant cultures are: apple, pear and plum - branding "Sava garden“ In the area of vegetable growing, dominant cultures are: potatoes, onions, cabbage, tomatoes, peppers and watermelons The possibility of organizing greenhouse production (primarily organic) There are processing capacities in the food industry

Thank you for your attention! Laktaši Municipality