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PUBLIC PRIVATE PARTNERSHIP: CITY OF NIŠ

Production and Education
Facility for Grape Producers
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City of Niš - Public private partnership: Production and education facility for grape producers

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City of Niš - Public private partnership: Production and education facility for grape producers

  1. 1. E 75 E 75 E 75 PUBLIC PRIVATE PARTNERSHIP: CITY OF NIŠ Production and Education Facility for Grape Producers E 70 E 70 E 70 With slightly more than 250,000 citizens, Niš is the third biggest city and a large university center in Serbia. It stretches over 597 km2 in South East part of the country, next to Corridor X (highway E75), two hours away from Belgrade. The region of E 75 E 75 Niš and the surrounding areas has a long tradition in production of grapes based on highly favorable natural conditions. The area covered in vineyards is more than 3,162 ha with more than 20 million fruit vines and annual yield of more than 15,000 tons of grapes. As part of its active policy of encouraging agricultural production and tourism, the City of Niš together with local grape producers, entrepreneurs, tourist organizations and the Center for vineyard cultivation – Niš, started the initiative for establishing a Production and education facility for grape producers. Its main purpose is to encourage and improve grape production and processing, provide assistance to producers in achieving European quality standards, as well as to enrich the touristic offer. Project E 75 Niš Project ID: Production and Education Facility for Grape Producers The project involves reconstruction, expansion and purchase of equipment for the public facility for grape producers, an entity entirely functional in terms of content and space, that would serve for production of grapes and education of producers. The City plans to realize the project as public private partnership without the elements of concession. There is an obligation of establishing an entity for special purpose and the agreement is concluded for a period from 5 to 50 years. Documentation The main and technological projects have been designed and the location permit ensured, to expire during 2014. Adequate space has been allocated to the Department for Agriculture and Rural Development. Industry Agriculture (grape production and processing), tourism Investment form PPP without elements of concession Public partner City of Niš, Department for Agriculture and Rural Development Investment value RSD 80 million (ca. EUR 700,000) Funding structure City - budget: RSD 25 million (EUR 220,000) City - subsidies, donations: RSD 20 million (EUR 175,000) Private partners: RSD 35 million (EUR 307,000) Projected financial results Total revenues: RSD 67.1 million (EUR 589,000) Total expenses: RSD 47.493 million (EUR 417,000) Gross income: RSD 19.607 million (EUR 172,000) Obligations The City shall provide the land, the facility (former elementary school building in the village Kamenica) and ensure the realization of 1st project phase, involving partial reconstruction of facility and purchase of one part of equipment for grape processing. The City has already invested RSD 3.75 million for this purpose. The private partner should invest into the 2nd phase of the project - finalize the adaptation of the facility, purchase the missing equipment for grape processing, organize and manage the further activities of the facility. Market Supply market: local grape producers who have around 50 ha of vineyards. Placement market: the facility products will be sold through three main channels – restaurants in the city and the region, specialized food stores, as well as large retail stores. Zoran Perišić Mayor of Niš mayor@ni.rs Ivan Pavlović Coordinator, Department for Agriculture and Rural Development +381 18 505 697, ivan.pavlovic@gu.ni.rs PPP in Serbia supported by City of Niš 2, 7. juli street, +381 18 504 411, +381 18 504 545 (fax) info@ni.rs, www.ni.rs

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