Industrial Potentials of Zabljak Municipality - Overview and Resources

Zabljak municipality in Montenegro offers unique industrial potentials with its forest resources, including wood processing, and mineral wealth such as gravel and sand. The area's high-altitude location and natural beauty also make it a promising destination for tourism development.

• Zabljak
• Montenegro
• Industrial potentials
• Forest resources
• Tourism development

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1. PRESENTATION OF INDUSTRIAL POTENTIALS OF ABLJAK November 2019.

2. GENERAL INFORMATION The municipality of Zabljak is located in northwestern Montenegro, in the foothills of the mountain area Durmitor. It has a surface of 445 km2, and, with an altitude of 1456m represents the highest urban settlement in the southeastern Europe. Its coordinates are:43 09 N 19 07 E. The winters are long and cold, summers short and cool and the autumns warmer than springs.The average annual temperature is between 2 and 8 degrees Celsius. There is snow 120 days of the year, greater than 15 centimeters, and the ski terrains, which are at higher altitudes, are covered by snow 150 days of the year and are great for skiing. Snow can be found in higher Durmitor areas all year around, and in the Kalice area, known as Debeli Namet (thick alluvium), which is 200-300 meters long, you can ski in the middle of the summer. abljak is surrounded by 23 mountain peaks of 2200 meters above sea level, 18 mountain lakes, one of them being the famous Black Lake and the Tara Canyon, which is the deepest in Europe. In 1991, in Zabljak, Montenegro was proclaimed as an ecological country, and Zabljak was chosen as its capital. abljak has a population of 3569 citizens. There are 28 settlements within the municipality, organized into 12 local communities, one being a town. However, this number is three to five times bigger if you calculate certain moments of the winter and summer season, when the owners of cottages and tourists come. Agriculture and livestock breeding along with forestry and primary wood processing, are traditional activities of the municipality s population, which nowadays sees its future in tourism and activities connected to it.

3. NATURAL RESOURCES Forests The forests represent one of the most important resources in the municipality of Zabljak. Big surfaces of confer and deciduous forests have resulted in the development of the wood industry, especially wood processing. The total surface area of forests and forest land is 8.517ha of national forests (high economic forests 7.513ha, forests for other purposes 195ha and covered land 809ha) and 756ha of private forests (total of 9.273 ha). The primary function of the high economic forests is the production of wood and other wood products and in the forests for other purposes recreational functions that are protected. The forests are divided into three management units: Tepacke sume , Gornji Saranci , and Donji Saranci .

4. NATURAL RESOURCES Mineral resources Mineral resources that can be found on the territory of the municipality of Zabljak are: gravel, sand and rock. Keeping in mind that the municipality is of glacial origin and that there is an abundance of these raw materials, they are most certainly signifi cant natural resources. The exploitation is done in two quarries: Njegovudja and Razano Polje. Existing raw materials have proven to be good construction material. Until now, only experimental concessions have been allowed.

5. NATURAL RESOURCES Land Land is one of the major factors in agricultural production in this area. Great agricultural surfaces provide the opportunity for agricultural development, livestock breeding and farming. The development of agriculture has stagnated lately because only elderly households are engaged in agriculture and also because of poor marketing and low prices. In theory, organic production has shown itself as economically feasible, both in farming and livestock breeding. There are already some entrepreneurs who have certificates for organic production. Agricultural land is mostly made up of grasslands and field. There is also a smaller surface of agricultural land that is made up of arable land and gardens.

6. WHY INVEST IN ABLJAK? Generally speaking, Montenegro as a small and extremely open economic system has the possibility of easily fitting into the world trends of the flow of direct foreign investment. Therefore, the investment ambient as a whole is improved. According to analysis done in Slovenia couple years ago, on potential places to invest in Montenegro, Zabljak was at the top of the pyramid! That official recommendation, which was given to Slovenian companies, has already launched some Slovenian projects in Zabljak, in the area of communal infrastructure and negotiations are underway for some other. The government of Slovenia, through its Center Development(CMSR) is giving a special contribution to Zabljak s development. for International Cooperation and

7. WHY INVEST IN ABLJAK? Advantages for foreign investors which Montenegro offers: Political, monetary and macroeconomic stability Simple START UP Liberal economic regime for foreign trade, Favorable tax policies International accounting standards Rise in economic freedom Geographic location and climate conditions Montenegro is a member of the World Trade organization and signatory to multilateral and bilateral agreements Agreement on stabilization and association with the European Union, CEFTA 2006, EFTA, Russia, Belarus and Turkey, which enables it the cumulation of origin and duty free trade with about 800 million consumers.

8. WHY INVEST IN ABLJAK? Incentive measures offered from the state level for existing businesses and new investors Links on state authorities pages: REGULATION http://www.mipa.co.me/files/documents/1513766929- Uredba%20o%20podsticanju%20direktnih%20investicija%2028122015.pdf ON INCITEMENT OF DIRECT INVESTMENTS - PROGRAM OF INCENTIVES FOR BUSINESS DEVELOPMENT - https://www.bizniszona.me/program-podsticaja- razvoja-biznisa-biznis-zone/ LAW ON FREE ZONES - ( Slu beni list RCG br. 42/04 od 22 juna 2004 godine, Slu beni list CG : 11/07 od 13 decembra 2007 godine, 76/08 od 12. decembra 2008 godine i br. 40 od 30 juna 2016 godine) REHULATION ON SUBSIDIES FOR EMPLOYMENT OF CERTAIN CATEGORIES OF UNEMPLOYED PERSONS- http://www.podaci.net/_gCGO/propis/Uredba_o_subvencijama/U-szoknl04v1211-1340.html CLUSTER INCENTIVE PROGRAM IN MONTENEGRO FOR THE PERIOD 2017-2020. - http://www.azzk.me/dp/doc/Rjesenja/2017/2017-02-17_MEK_klasteri%202017.pdf INDUSTRIAL MODERNIZATION SUPPORT PROGRAM - https://www.irfcg.me/me/2015-01-13-12-23-55/program- podrske-za-modernizaciju-industrije

9. WHY INVEST IN ABLJAK? Incentives that Municipality of abljak offers: The municipality of Zabljak has determined certain incentives for investors through the Decision on compensation for the communal furnishing of land in the sense of: The possibility to pay the agreed compensation for the communal land in rates (25% from the agreed compensation is paid on the day of signing the agreement on the communal furnishing of land, and the rest over the next three years); If the payment of the agreed compensation for the communal furnishing is paid in full, the compensation decreases by 15 %; There is also the possibility of the investor to independently conduct the communal furnishing of the land.

10. WHY INVEST IN ABLJAK? Incentives that Municipality of abljak offers: The real estate tax under the Law on Real Estate Tax (Official Gazette of the Republic of Montenegro 65/01, 69/03 and Official Gazette of Montenegro 75/10, 9/15 and 44/17) is proportional and amounts from 0 , 25% to 1.00% of the market value of real estate. According to valid decision on the real estate tax of the Municipality of Zabljak, the tax rates are minimal. Tax rates range from 0.25% for residential buildings under construction, to 0.54% for secondary residential buildings. Regarding facilities that are important for investment and business development, the rates are also very low, given that the law gives possibility to define rates up to 1% as well: -Business buildings and commercial premises (commercial buildings, commercial premises and flats anteroom in office space) 0.41%; -For production facilities (halls and other production facilities) ...................................0.31%; -For stores and warehouses.............................................................................................0.26%.

11. WHY INVEST IN ABLJAK? Incentives that Municipality of abljak offers: The municipal real estate tax decision also provides tax rate reductions: For a catering facility located in the area of priority tourist locality ,which is operational for 12 months a year, in accordance with Government regulations, the tax rate may be reduced: -for catering facility: - category 4 **** ........................ 20%; - categories over 4 **** ............... 50%. Individuals are exempt from tax payment for land used for agricultural purposes.

12. BUSINESS ZONES/INDUSTRIAL LOCATIONS IN ABLJAK The spatial urban plan of the Municipality of Zabljak defines business development zones: 1. Business zone Njegovu a; Njegovu a and sawmill; Njegovu a II; 2. Business zone Vruljci; 3. abljak working zone; 4. Service zone

13. BUSINESS ZONES/INDUSTRIAL LOCATIONS IN ABLJAK Within these zones, available business / industrial sites are: Location:Njegovu a II Address: Njegovu a bb Business zone: Njegovu a 1. Property:Private Size of urban parcel 4 ha Purpose: industry and manufacture

14. BUSINESS ZONES/INDUSTRIAL LOCATIONS IN ABLJAK 2.Location: abljak I Address:Narodnih heroja bb(Klje tina) Business zone: Service zone Property:100% public Size of urban parcel 5.113m2 Purpose: industry and manufacture

15. BUSINESS ZONES/INDUSTRIAL LOCATIONS IN ABLJAK 3.Location: abljak II Address:Narodnih heroja bb(Klje tina) Business zone: Service zone Property:100% public Size of urban parcel 21.527m2 Purpose: industry and manufacture

16. BUSINESS ZONES/INDUSTRIAL LOCATIONS IN ABLJAK 4. Location: abljak III Address:Narodnih heroja bb(Klje tina) Business zone: Service zone Property:100% public Size of urban parcel 2.049m2 Purpose: industry and manufacture

17. BUSINESS ZONES/INDUSTRIAL LOCATIONS IN ABLJAK 5.Location: abljak IV Address:Narodnih heroja bb(Klje tina) Business zone: Service zone Property:100% public Size of urban parcel 1.372m2 Purpose: road traffic (gas station)

18. BUSINESS ZONES/INDUSTRIAL LOCATIONS IN ABLJAK 6. Location: abljak V Address:Narodnih heroja bb(Klje tina) Business zone: Service zone Property:100% public Size of urban parcel 1.418m2 Purpose: industry and manufacture * More information about all industrial locations at link: http://zabljak.me/docs/1572606691- Katalog%20lokacija%20ponuda%20industrijskog%20zemljista%20u%20%20Opstini%20Zabljak- Catalog%20of%20location%20offers%20of%20industrial%20land%20%20in%20the%20%20Municipality%20of %20%20Zabljak.pdf

19. TRAFFIC COMMUNICATION It is very quick and easy to get to Zabljak. In 2010, the road Risan- Zabljak was opened and therefore shortened the way between the south and the north, and now one can reach the coast from abljak in 2-2.30 h. The capital city, Podgorica is about 2h driving distance from Zabljak(120 km). Distance to other regional centres:Belgrade-400km;Sarajevo-167km;Zagreb- 535km;Tirana-270km;Skoplje-337km;Ljubljana-674km, The nearest port is Bar(Montenegro)-197km. It is possible to travel from Bar to Mojkovac by train, and then take the bus to Zabljak. So, the closest railway station is in Mojkovac, 69 km from Zabljak. The nearest airports:Podgorica(120km),Tivat(250km), Dubrovnik(260km).

20. TRAFFIC COMMUNICATION Border crossings If you are driving from Serbia, you can cross the border in Prijepolje, drive through the Montenegrin town Pljevlja and so reach Zabljak (state border crossing Jabuka - 98 km) or you can drive though the Montenegrin town Bijelo Polje and Mojkovac and so reach Zabljak (state border crossing Brodarevo -110 km). If you are travelling from Croatia, from the direction Dubrovnik (state border crossing Debeli brijeg), you arrive by driving through Herceg Novi, Risan and Niksic and so reach Zabljaka (200 km) or driving through Dubrovnik- Trebinje- Niksic- Zabljak (170 km). If you are travelling from Bosnia and Herzegovina, through Foca and crossing at the border in Scepan Polje to Zabljak the distance is 150 km, through Pluzine and Mount Durmitor, the distance is 85 km, and if you cross at the border Meteljka through Gorazde- Cajnice- Pljevlja- Zabljak, the distance is 87 km. If you travel through Trebinje- Vilusi- Niksic to Zabljak, the distance is 170 km, by crossing the borderVracenovici.