BOSNIA AND HERZEGOVINA Presented by Alma Šabeta Head of the Investor Support Unit INVESTMENT OPPORTUNITIES Bosnia and Herzegovina In cooperation with:

A small country with huge potential Strategic location The fastest growth of GDP The most stable currency in SEE Competitively priced labor force Possibility to export to about 600 mill. people market without customs duties Population 3.4 million

*FIPA Source: CB BiH, Agency for Statistics of BiH,*FIPA Indicators Nominal GDP (billion EUR) * GDP per capita (EUR) 1,6601,7861,9582,2142,3882,5612,8733,2543,648* Real GDP growth rate (%) * Industrial production growth rate (%) Average net wages (EUR) * Annual inflation rate (%) Annual unemployment rate (%) Currency reserves (mill EUR) 5221,3791,2701,4281,7792,1602,7873,4253,184 Trade balance (billion EUR) Total FDI (mill EUR) ,628701* FDI contribution to GDP (%) * Deposits of households in Commercial Banks, mill EUR ,2731,6292,0972,6412,565 Population (in million)

Investment potentials – Attractive economic sectors Energy Sector Agriculture and Food Processing Industry Infrastructure and Construction Sector

ENERGY SECTOR OVERVIEW: One of the most powerful and prospective sectors in BiH with a long tradition Actual capacity of all power plants in BiH is app MW (56% in thermal and 46% in hydropower plants) Presently there are a four distribution Companies, with18 system distribution regions (they serve approximately 1.2 million of consumers, distribution losses remain at the 10% level) Generation and Consumption of energy mix in 2008 (GWh): Generation Hydro PP Thermal PP Small PP Consumption AVAILABILITY OF RE SOURCES Small-scale hydro power plants (up to 5 MW): Planned installed power 286 MW Expected annual generation 963 GWh Installed power in operation 37,7 MW Wind – total estimated power is cca MW Solar energy – use potential cca 70,5 GWh Geothermal energy – potential cca 90.2 MWt Biomass – firewood and charcoal are currently growing energy source in BiH COMPETENT AUTHORITIES (C.P.) The Energy Policy, Laws and Regulations, and Strategy Development - the State Ministry Production and transmission of Energy Laws and Regulations - Entity Ministries Transmission of Electricity and International Trade - the State Electricity Regulatory Commission Licensing, Tariffs and Technical Conditions - Entities Regulatory Commissions Transmission and Market Development - A single transmission company

AGRICULTURE AND FOOD PROCESSING INDUSTRY OVERVIEW: Land ~ 1.2 million ha of arable land: ~ 100,000 ha of orchards and vineyards; ~ 500,000 ha of improved grazing land; ~ 850,000 ha of mountain pastures Climate ~ predominantly moderate continental (Central BiH); ~ predominantly continental (Northern BiH); ~ Sub-Mediterranean (South BiH) Rural Development ~ focus of all governmental institutions in BiH; ~ essential to increase the volume of agricultural production, employment opportunities, incomes and living standards of rural population, to improve environmental protection; ~ 81% of the total land area and 61% of the population classified as rural in BiH Labor ~ considering the presence of the rural unemployment and the fact that agriculture employs about 15% of the labor force agricultural labor is abundant and cheap; all categories of experienced workforce (engineers, technicians, skilled workers) require in food processing industry are available under competitive prices DEVELOPMENT AND INVESTMENT POTENTIAL SUBSECTORS Field Crops Medicinal and Aromatic Herbs Fruit, Vegetable and Wine Growing Livestock and Forage Production e.g. Company Sigma Prom doo Novi Grad, goat raising & breeding farm Food Processing e.g. Agropodrinje Gorazde, construction of storage and the installation of primary treatment, conservation and packing of dry fruit, medical herbs, etc.

INFRASTRUCTURE AND CONSTRUCTION SECTORS BUSINESS CONDITIONS: ~Long standing tradition and reputation, in-country and abroad; ~State-of-the art solutions in architecture and civil engineering; ~Price competitive, qualified work force; ~All elements of construction (design, high quality construction, building materials) NEEDS: ~Creation of consortiums required for large scale projects; ~Substantial investments needed, generally and in the equipment and machinery. PROJECTS: Infrastructure projects - Construction of highway V-c Corridor Budapest – Sarajevo – Ploče as a part of the EU’s TEN Network (priority) - The railway reconstruction as a part of Vc Corridor - Two ports on river Sava – reconstruction and improvement of waterway transport : Brčko and Šamac (connection to Danube) Projects as per development plans of mayor cities Building material production projects Joint-venture projects: - Business Zone Gračanica – ŠIRBEGOVIĆ Group - Commercial and Business Centre BELIRA – Energoplan d.o.o. - Production of Construction Material – MS ŠAMOT-RS, Sokolac

FDI Law National treatment of foreign investors Repatriation of profits Protection against nationalization, expropriation or similar measures Right to freely employ foreign nationals, subject to the labor and immigration laws in BiH Trade and export agreements and regimes Central European Free Trade Agreement Free Trade Agreement with Turkey Preferential export regime with EU and others 39 Agreements on Promotion and Protection of Investment (Greece included) 32 Agreements on Avoidance of Double Taxation (Greece included) Favorable Legislation

INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW OPPORTUNITY THANK YOU FOR YOUR ATTENTION Sarajevo Office Branilaca Sarajeva 21 Phone: Fax: Banja Luka Office Ðure Daničića 1/III Phone/ Fax: : Mostar Office Rade Bitange 30 Phone /Fax: Bosnia and Herzegovina In cooperation with: