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PUBLIC PRIVATE PARTNERSHIP: CITY OF ZRENJANIN

Reconstruction of Rusanda Spa
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Zrenjanin
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City of Zrenjanin - Public private partnership: Reconstruction of Rusanda spa

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City of Zrenjanin - Public private partnership: Reconstruction of Rusanda spa

  1. 1. E 75 E 75 E 75 PUBLIC PRIVATE PARTNERSHIP: CITY OF ZRENJANIN Reconstruction of Rusanda Spa E 70 E 70 Zrenjanin E 70 Zrenjanin is the city with the largest territory in Vojvodina – the area of 1,326 km2 is populated with 122,714 citizens. It is located on the riverbanks of Begej and Tisa, on the crossroad of main roads M7 and M24, 50 km away from Corridor X (highway E75) and 90 km E 75 the Belgrade Airport. Rusanda Spa is located in close proximity to the City – it is a resort and from E 75 spa with 150 years of tradition, rich in mineral peloid (mud) and thermo-mineral water (32°C). In the previous period, the Spa resources were used by the Special rehabilitation hospital Rusanda. Annual utilization of hospital capacities (360 beds) is high and amounts to 67.92%.The total number of overnight stays in 2012 was 89,246, out of which 70% was realized through the Republic Health Insurance Fund. The City of Zrenjanin and Special hospital Rusanda plan improve the capacities and operations of the Rusanda Spa, in cooperation with the private partner. Project E 75 Project ID: Reconstruction of Rusanda Spa Documentation The project-related documentation has not been developed. Obligations Industry Health-recreational spa tourism Investment form PPP without elements of concession Public partner City of Zrenjanin, Special rehabilitation hospital Rusanda Investment value RSD 630 million (EUR 5.5 million) Funding structure City of Zrenjanin and Special hospital Rusanda: RSD 343 million (EUR 3 million) Private partners: RSD 237 million (EUR 2.1 million) Projected financial results The project of reconstruction and expansion of Rusanda Spa’s capacities and its work, stipulates that the Special hospital Rusanda SPa would maintain its basic activity – treatment and rehabilitation of patients. However, the newly established entity, founded by Special hospital Rusanda, City of Zrenjanin and private sector partner, would upgrade, expand and enrich the current spa offer (wellness, cosmetics treatment and other hospitality/hotel services). (000 RSD) Revenues Expenses Gross income 2014 105,878 97,913 7,965 2015 187,741 147,128 38,613 2016 278,040 220,355 57,685 The City of Zrenjanin and Special hospital Rusanda shall provide land/locations and the use of mineral resources, with all accompanying legal-property and technicalplanning documents, as well as the construction of required infrastructure. The private partner shall perform reconstruction and construction of accommodation cpacities, construction of wellnes center and purchase of all required equipment. Upon Project realization, the private partner would manage the operations and business of the constructed capacities. Market The project involves activation of additional 150 beds intended for the local market (City of Zrenjanin, Banat area and wider area of Belgrade), and after the initial market positioning, the Spa could count on wider regional expansion (domestic and international). High demand for services of Special hospital Rusanda, which has a high level of capacity utilization even with a slightly lower quality of accommodation – indicates the success of this project. Ivan Bošnjak Mayor kabinet@zrenjanin.rs Duško Radišić Assistant Mayor for LED duskoradisic@gmail.com PPP in Serbia supported by City of Zrenjanin 10 Trg slobode, +381 23 315 0200, +381 23 315 0099 (fax) www.zrenjanin.rs

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