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Municipality of Prijepolje - Public private partnership: Regional cold store
 

Municipality of Prijepolje - Public private partnership: Regional cold store

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    Municipality of Prijepolje - Public private partnership: Regional cold store Municipality of Prijepolje - Public private partnership: Regional cold store Document Transcript

    • E 75 E 75 E 75 PUBLIC PRIVATE PARTNERSHIP: MUNICIPALITY OF PRIJEPOLJE Regional Cold Store E 70 E 70 E 70 The Municipality of Prijepolje is located in South West Serbia, near the border towards Montenegro, at the crossroad of main roads M21 and M8, 230 km from Corridor X (highway E75) and 250 km from Belgrade. The municipal territory of 827 km2 hosts the population of 37,059 citizens. The municipal area and the region have extraordinary comparative E 75 E 75 advantages for the development of fruit production, particularly apples, plums and raspberries, which are said to be the best in the world. There are currently around 1,200 households growing fruits in Prijepolje, annually producing ca. 1,800 tons of fruit on 1,500 ha of orchards. In cooperation with the private partner, the Municipality plans to construct a Regional Cold Store to perform collection, storing and distribution of agricultural goods, in order to improve the cultivation and placement of berries and other fruits in the regional market. Project Prijepolje E 75 Project ID: Construction of Regional Cold Store Project realization involves the construction of infrastructure, facilities and purchase of equipment for the Regional Cold Store with three cooling chambers, one tunnel, sub-cooling and manipulation lines. The Municipality of Prijepolje plans to realize the project through public private partnership (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 Urban project, preliminary and main detailed project have been developed. Obligations Industry Trade, distribution Investment form PPP without elements of concession Public partner Municipality of Prijepolje Investment value RSD 177.9 million (1.6 million) Funding structure Municipality: RSD 72.4 million (EUR 635,100) Private partners: RSD 105.6 million (EUR 926,300) Projected financial results (000 RSD) Revenues Expenses Gross income 2014 269,300 256,467 12,833 2015 401,480 341,101 60,379 2016 401,480 341,101 60,379 The Municipality has provided the land and all required infrastructure - access roads, water and sewerage lines, electricity, telecommunications. The private partner should invest funds in the construction of facilities, purchase of required equipment and manage the cold store operations. Market Supply market: during the first year, the Regional Cold Store is planned to collect and place around 1,800 tons of fruit from the local areas, and 2,600 tons in the following two years. At It is expected that the cold store services will be used not only by fruit producers from Prijepolje, but the ones from surrounding municipalities as well. Placement market: due to product quality, the fruit from this region is already being easily marketed through familiar buyers, such as Master frigo, Zenit, Es-Komerc, Zlatar plast, and upon the construction of cold store, it is expected that the number of buyers will rise. Dragiša Rakonjac Head of Department of Economy and Finance +381 33 711 389 PPP in Serbia supported by Municipality of Prijepolje 1 Trg bratstva i jedinstva, +381 33 712 297 prijepolje.opstina@gmail.com