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Municipality of Doljevac - Public private partnership: Commercial-green market center Pukovac

Municipality of Doljevac - Public private partnership: Commercial-green market center Pukovac






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    Municipality of Doljevac - Public private partnership: Commercial-green market center Pukovac Municipality of Doljevac - Public private partnership: Commercial-green market center Pukovac Document Transcript

    • E 75 E 75 E 75 PUBLIC PRIVATE PARTNERSHIP: MUNICIPALITY OF DOLJEVAC Commercial-Green Market Center Pukovac E 70 E 70 E 70 The Municipality of Doljevac is located in the South East part of Serbia, in close proximity to Corridor X (highway E75), 265 km away from Belgrade. It has 18,463 citizens and covers the area of 121 km2. Doljevac has highly favorable conditions for the development of E Th E 75 agriculture and food-processing.75 e annual yield includes around 26,000 tons of grains, 15,000 tons of vegetables, 11,000 tons of grapes and 7,500 tons of fruits. These resources are currently not entirely utilized, coming as a result of a fragmented approach of individual producers and lack of communication among them. By initiating the project for the construction of Commercial-Green Market Center Pukovac, in cooperation with partners from the private sector, the Municipality aims to improve the placement of farmers’ products in terms of quantity and quality, improve their competitiveness in the region and improve the economic power of farmers and their associations. Project E 75 Doljevac Project ID: Commercial-Green Market Center Pukovac The project involves modernization of existing green market operations by covering the market space, setting up the counters – both open and closed, construction of shops, dairy market facilities, cafe and a restaurant for celebrations on the second floor, market management offices. After the reconstruction of the market, it should transform into a distribution center significant for the broader area of the South East Serbia. The Municipality opted for the public private partnership model (PPP) without the elements of concession. There is an obligation to establish an entity for special purposes, while the agreement may be concluded for a period from 5 to 50 years. Documentation The Municipality provided the project-technical documentation, location and construction permit which shall expire in late 2013. Industry Trade Investment form PPP without the elements of concession Public partner Municipality of Doljevac Investment value RSD 96.7 million (EUR 850,000) Funding structure Municipality: RSD 9 million (EUR 80,000), Projected financial results (000 RSD) Revenues Expenses Gross income Private partners: RSD 87.8 million (EUR 770,000) 2014 10,102 6,577 3,525 2015 12,876 6,600 6,276 2016 14,650 6,700 7,950 Obligations The municipality shall provide the location with accompanying permits and its infrastructure equipping. The Municipality has already equipped the existing market plateau with water and sewerage network, paved the plateau and acquired the projecttechnical documentation and permits for developing the Center. The private partner should invest in the planned facilities and necessary equipment, and be in charge of the Center operational management - lease of counters at the market, space for sale of bulky goods, stores for consumer goods, parking space, and other hospitality services. Market Supply market: the Center will primarily serve the agricultural producers from the municipal and the close region. It is expected that, upon full activation of the Center, the current number of 1,000 market users will rise to around 6,000. Placement market: agricultural goods will be marketed through the Center to the local and nearby regional market. Goran Ljubić Mayor opstina@opstinadoljevac.rs Milena Stevanović LED Office klerdoljevac@gmail.com PPP in Serbia supported by Municipality of Doljevac 121 Nikole Tesle street, +381 18 810 054, +381 18 810 055 (fax) www.opstinadoljevac.rs