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Municipality of Tutin - Public private partnership: Center for processing forest fruits and medicinal plants
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Municipality of Tutin - Public private partnership: Center for processing forest fruits and medicinal plants


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  • 1. E 75 E 75 E 75 PUBLIC PRIVATE PARTNERSHIP: MUNICIPALITY OF TUTIN Center for Processing Forest Fruits and Medicinal Plants E 70 E 70 E 70 The Municipality of Tutin is situated in the South West Serbia, in close proximity to the border with Montenegro, next to main roads M2 and M22, 190 km 75om Corridor X (highway E75). The municipality has 32,191 citizens and the area of 741 E fr E 75 km2. Tutin is among the highest-altitude municipalities in Serbia (more than 1,000 meters) and there is not one single polluter within the diameter of 100 km, which makes it a very favorable environment for growing forest fruits, medicinal plants and tea herbs. There is currently no organized/planned purchase and production of final products based on these resources, but it is performed by individual buyers. In cooperation with private partner, the local government plans to establish the first Center for collection, purchase and processing of forest fruits and medicinal plants in this region. Project E 75 Tutin Project ID: Center for Collecting, Purchasing and Processing of Forest Fruits and Medicinal Plants The Center for collection, purchase and processing of medicinal plants and forest fruits aims to employ the local population and improve the production and market placement of these abundant resources. The municipality plans to realize the project as public private partnership (PPP) without elements of concession. There is an obligation of establishing an entity for special purpose, the agreement is concluded for a period from 5 to 50 years. Documentation The relevant documentation has not been developed. Obligations The Municipality shall provide the land with a location permit and purchase locations in five local centers, in cooperation with Agriculture cooperative of Tutin. The private partner shall invest in facilities (warehouse, cold store, processing and packaging area, drying facilities and office space, as well as the purchase points in local centers at the existing green markets), required equipment (packaging machines, grinder, tunnel kiln, calibration machines) and manage Center operations. Industry Food industry, trade Investment form PPP without elements of concession Public partner Municipality of Tutin, Department for Businesses and Local Economic Development Investment value RSD 30 million (EUR 263,200) Funding structure Municipality: RSD 5 million (EUR 43,900) Private partners: RSD 25 million (EUR 219,300) Projected financial results (000 RSD) Revenues Expenses Gross income 2014 22,200 19,713 2,487 2015 43,275 38,427 4,848 2016 68,200 60,559 7,641 Market Supply market: at the moment, there is approximately 33 tons of forest fruits and medicinal plants collected annually in the municipality of Tutin, and it is estimated that appropriate incentives would increase these amounts three times within two or three years. Placement market: the final products will be marketed to familiar buyers (Pharmacy institution Belgrade, Melisa Novi Sad), and health food stores from the region. PPP in Serbia supported by Šemsudin Kučević Mayor of Tutin Mersudin Elesković Department for Businesses and LED Municipality of Tutin 7 Husein-bega Gradaščevića street, +381 20 811 111, +381 20 811 035 (fax),