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[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia
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[GPATS 2013] Ivo Ivanovski - Master Presentation of Macedonia

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  • 1. Republic of Macedonia November, 2013
  • 2. Why Macedonia? Competitive Location Excellent Infrastructure Competitive & Educated Workforce Investment Incentives Investor friendly Government Higher Profits & Increased Competitiveness Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 2
  • 3. Location and Transport Infrastructure • Two Pan-European corridors: – East-West Corridor 8 – North-South Corridor 10 • Road network: 4,370 km • Railway network: 925 km • Two international airports: – Skopje – Ohrid • International ports*: – Thessalonica (Greece): 80 km – Durres (Albania): 150 km * Distance from Border Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 3
  • 4. Political and Economic Outlook • Political, monetary and macroeconomic stability; • Strategically located for future business expansion; • First country in SEE to sign a SAA with the EU in 2001; • EU and NATO candidate country; • FTAs with numerous countries; • Business oriented Government; • Welcoming and decisive government ready to serve investors. Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 4
  • 5. Reference 5th BEST IN STARTING A BUSINESS RANKINGS 3rd BEST REFORMER IN THE WORLD World Bank’s Doing Business 2013 Report World Bank’s Doing Business 2012 Report BEST CONSECUTIVE REFORMER OVER THE PAST THREE YEARS IN SOUTH EASTERN EUROPE Based on the World Bank’s Doing Business Reports in 2011, 2012 and 2013 3rd BEST REFORMER IN THE WORLD World Bank’s Doing Business 2010 Report Agency for Foreign Investments and Export Promotion 4th IN TOTAL TAX RATE EASE OF PAYING TAXES 2012 PwC and World Bank Group Study www.investinmacedonia.com 5
  • 6. Ease of Doing Business 2013 Global Rank 126 23 Macedonia 35 Slovenia 46 51 54 55 Slovakia Montenegro Hungary Poland Agency for Foreign Investments and Export Promotion 65 66 Czech Republic Bulgaria 71 72 Turkey Romania 84 86 Croatia Serbia Bosnia and Herzegovina www.investinmacedonia.com 6
  • 7. Best Countries for Business 2012 Forbs Magazine Global Rankings 85 37 38 41 43 45 46 47 49 52 90 60 23 Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 7
  • 8. 2013 Index of Economic Freedom World Rankings Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 8
  • 9. Ease of Paying Taxes 2012 Total Tax Rate World Rankings 102 4 21 28 36 54 63 112 119 137 143 68 PwC and World Bank Group Study Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 9
  • 10. Foreign Investment Regime • Macedonian Constitution guarantees fair treatment of foreign investors • Complete protection of the ownership rights of foreign investors • Republic of Macedonia is member of MIGA • Investment protection treaties with numerous countries • 100% foreign ownership of a company allowed • No restrictions for repatriation of profits Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 10
  • 11. Economic Indicators GDP GROWTH(%) INFLATION Low inflation: average 2% annually over the last 4 years 2009:-0.8%; 2010:1.6%; 2011:3.9%; 2012:3.3%; CURRENCY Macedonian Denar pegged to the DM/€ EXPORT BY YEAR (US$ bn) 3.4 2007 for the last 15 years (€1= MKD 61.3) 2.7 2008 AVERAGE GROSS SALARY IN 2012 4.4 4.0 2009 3.3 3,9 2010 2011 € 498 per month 2012 CREDIT RATINGS 2012 FDI BY YEAR (US$ m) Standard & Poor’s: BB Fitch: BB+ BUDGET DEFICIT & STATE DEBT Agency for Foreign Investments and Export Promotion Budget Deficit, 2012: 3.3 % of GDP State Debt,2012: 33.8 % of GDP www.investinmacedonia.com Source: National Bank of the Republic of Macedonia 11
  • 12. Unbeatable Fiscal Benefits • 10% Corporate & Personal income tax (among the lowest in Europe) • 0% Tax on retained earnings • Double taxation treaties with many European countries • 0% tax for operation in a Technological Industrial Development Zone • Real estate taxes at 2% - 4% • VAT at 18%, with 5% on specific items • FTAs with EU, EFTA, CEFTA countries; Turkey and the Ukraine; providing access to over 650m customers Corporate Income Tax Macedonia* Romania* Personal Income Tax General VAT Rates Macedonia 16% 18% Turkey 10% 18% Czech Republic 19% Czech Republic 20% Hungary 19% Slovakia 20% Poland 19% Ukraine 20% Slovakia* 19% Poland Croatia 20% Romania Turkey 20% Croatia Ukraine Hungary 21% Agency for Foreign Investments and Export Promotion 23% 24% 25% 27% * Flat rate Source: PricewaterhouseCoopers (Taxes at a glance 2012), National Investment Promotion Agencies www.investinmacedonia.com 12
  • 13. Social Security Contributions Social Security Contributions 21.2% 9.2% 1.6% 0.5% 2008 32.5% 19.0% 7.5% 1.4% 0.5% 2009 28.4% 7.3% 18.0% 1.2% 0.5% 2010 18.0% 7.3% 27.0% 1.2% 0.5% 2011 7.3% 17.5% 2012 Pension Insurance Health Insurance 27.0% 1.1% 0.5% Employment Insurance 26.4% Additional Health Insurance Comparison - Social Security Contributions Macedonia Bulgaria Poland Montenegro Croatia Serbia Ukraine Romania Czech Republic Hungary Slovakia 26.4% 30.7% 33.2% 33.8% 35.2% 35.8% 40.3% 44.3% 45.0% 45.5% 48.6% Agency for Foreign Investments and Export Promotion www.investinmacedonia.com Source: PricewaterhouseCoopers (Taxes at a glance 2012), National Investment Promotion Agencies 13
  • 14. Average Gross Monthly Salary Average gross monthly salary in selected countries of Central and Eastern Europe in 2012 €1,525 €993 €660 €498 Serbia €771 €800 Hungary Slovakia €889 €508 Macedonia €727 €846 €1,048 Bosnia and Montenegro Herzegovina Poland Estonia Czech Republic Croatia Slovenia Source: The Vienna Institute for International Economic Studies (wiiw) Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 14
  • 15. Competitiveness for Investments in Macedonia Price Level Index for Investments 81 56 59 62 63 66 70 Romania Bulgaria Serbia Turkey Croatia 88 Poland Turkey 85 Czech Republic Slovenia Slovakia 72 Macedonia 85 100 EU27 Average Price Level Index for Construction 100 56 39 42 42 46 49 Macedonia Serbia Romania Bulgaria Turkey Agency for Foreign Investments and Export Promotion 61 Croatia Hungary 73 74 74 Poland Slovakia Czech Republic Source: Eurostat, December 2012 80 Slovenia EU27 Average www.investinmacedonia.com 15
  • 16. Sustainable Work Force Supply • 41.5% of population under 30 • High intellectual capital – 95+% of high school graduates enrolled in universities in 2012 – Multiple vocational high schools in each city • Tailor-made training programs through Vocational Schools or Universities • 6% of GDP spent on education Number of enrolled students in Colleges and Universities 63.437 57.894 64.779 58.747 Number of graduates in Colleges and Universities 11,197 10,839 56906 10,392 10,232 9,802 2008/2009 2009/2010 2010/2011 Agency for Foreign Investments and Export Promotion 2011/2012 2012/2013 2008 2009 2010 2011 www.investinmacedonia.com 2012 16
  • 17. Excellent Language Skills • Every child in Macedonia begins to learn English in the first grade of primary school • Two foreign languages are mandatory in high school: English, and either German, French, or Russian • English is also taught for two years at University level • Regional languages (Serbian, Croatian, Bulgarian, Albanian and Greek) are widely spoken Foreign Languages Studied Students in Primary Schools, % of Total Students in Secondary Schools, % of Total English 99% 96.5% French 0.6% 2.8% German 0.3% 0.5% Russian 0.1% 0.2% Agency for Foreign Investments and Export Promotion Source: State Statistical Office of the Republic of Macedonia (Education 2012/2013) and Ministry of Education and Science www.investinmacedonia.com 17
  • 18. INVESTMENT OPPORTUNITIES
  • 19. Investment Opportunities Target Sectors Machine and Automotive components ICT Medical Devices and Pharmaceuticals Agribusiness and Food Processing Energy sector Real Estate & Construction Textile Tourism Filming Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 19
  • 20. Investment Opportunities Machine and Automotive Components Industry • Existing engineering and manufacturing tradition • Legacy of skills available to new investors • Component production started in the 1960’s to supply Zastava, Serbia • Companies primarily supply the aftermarket • Johnson Controls, Johnson Matthey, Kemet, Teknohose, (Free Economic Zones), Kromberg & Schubert, Hi-Tech to supply OEM’s, Van Hool • Markets are Europe, Russia, Turkey, Africa, USA • Most companies have ISO 9001 / TS 16949 quality certification Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 20
  • 21. Investment Opportunities ICT Sector • 4-hour company registration • Electronic fee payments for government services • Digital certificates for employers • Legislation fully harmonized with the EU • Free computer application training VAT lowered from 18% to 5% on most IT products. Analog to Digital TV switched of on June 1st 2013 Released the Digital Dividend on 800Mhz Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 21
  • 22. Investment Opportunities ICT Sector • Best telecommunication networks in the region – the system is 100% digital • Leading multinational hardware and software suppliers (Microsoft, HP, IBM) have local sales and support services in Macedonia • IT skills shortage in Western economies and growing demand for outsourcing services – Macedonia can be your solution! • Availability of well-educated staff at competitive costs • Quality assurance and standardization procedure intitialized Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 22
  • 23. Fixed Telephony Market Overview Fixed telephony market shares by number of lines in Q1 2013 Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 23
  • 24. Fixed Telephony Market Overview 64.56% market share (by fixed lines in Q1 2013) of Makedonski Telekom AD 15.72% market share of second largest fixed operator (by fixed lines in Q1 2013) 75.73% market share (by traffic in Q1/2013) of Makedonski Telekom AD 52.68 calls- average number of initiated monthly calls per user(Q1 2012) 163.86,50 minutes- average monthly usage per user(Q1 2012) 19.65 - Fixed lines per 100 population (404.799 active fixed lines - Q1 2013) 107.883 ported numbers until 31 of March 2013. Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 24
  • 25. Mobile Market Overview – Q1 2013 Share of operators in the total number of active subscribers in Q1/2013 Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 25
  • 26. Broadband market overview – Q1/2013 Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 26
  • 27. Investment Opportunities Healthcare Sector, Medical Devices and Pharmaceuticals • Existing pharmaceutical industry, exports to over 30 countries worldwide • Strong educational system, with an abundance of medical and pharmacy graduates • Supportive regulatory environment • Licensing arrangements in place with many of world’s leading pharmaceutical companies • Available sites at industrial and free economic zones • Manufacturing tradition Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 27
  • 28. Investment Opportunities Agribusiness and Food Processing Industry • Unique combination of Continental and SubMediterranean climates • Environment friendly production practices • Technologies for food processing • Excellent access to regional markets • Strong reputation for quality food products The greatest investment opportunities: • fruits and vegetables – production, storage distribution and processing industries (logistic centers) • wine production • sheep and goat cheese production Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 28
  • 29. Investment Opportunities Textile sector • Esteemed reputation of Macedonian textile producers on the European Union market • High flexibility and readiness to adapt to the demands of foreign markets • Exceptional relation between product quality and costs • Modern equipment • 1-2 days distance to European Union markets • Foreign investment welcomed in the readymade clothing and knit production industries Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 29
  • 30. Investment Opportunities Tourism Summer Destinations •Numerous tectonic, glacial and man-made lakes, 50 in total •Large natural lakes: Ohrid, Dojran and Prespa •Water sports, archeological, wine, eco and rural tourism •In 2012, 7,3% increase of foreign tourists compared with 2011 Winter Destinations •Over 45 mountain peaks exceeding 2.000m •70% of the territory is mountainous and many locations have more than 100 days of snow •Opportunities for development and enhancements of hotels and spa resorts on many locations Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 30
  • 31. Investment Opportunities Tourism Historical and Culture Heritage • 4,293 archeological sites • 992 churches and monasteries • 23,000 icons (2nd most valuable collection in the world) • 228 mosques, inns, Turkish baths and old bazaars, • 47 towers and fortresses Spa tourism • Territory rich with geothermal waters • More than 60 thermal springs • Identified locations for construction of new spa centers and hotels Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 31
  • 32. Investment Opportunities Filming industry Macedonia geographically provides various types of landscapes on locations at very short distances from each other. With annual average of 280 sunny days, Macedonia is one of the best locations for exteriors and locations filming. INCENTIVES A film producer interested in investing funds in Republic of Macedonia for making a feature film, documentary, animation, television film or television series, may acquire the right to refund 20% of direct eligible expenditures paid in Republic of Macedonia. Eligible expenditures 1) Production services 2) Postproduction services 3) Animation services 4) Procurement of goods for film sets and the costumes needed for production of the film/television project. Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 32
  • 33. INVESTMENT PROJECTS TOURISM
  • 34. Tourism Development Zone Dojran 1 Possible Planning Purposes : • Tourist settlement with bungalows • Small catering and commercial units • Rehabilitation center for alternative treatment Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 34
  • 35. Tourism Development Zone Dojran 1 EVALUATION OF POSSIBLE SPACE FOR PLANNING PURPOSES (contents) Project No. 1 P (ha) 12 hа Relief CONDITIONS The location is on flat terrain ALTITUDE ~165 m STRUCTURE OF LOCATION IN RELATION TO THE LAKE The location is on the coast CURRENT SITUATION Institution in charge TRAFFIC CONNECTIONS THE LOCATION IS NEAR THE REGIONAL ROAD R604 AND IS ACCESSIBLE) Agency for Promotion and Support of Tourism WATER PIPING INFRASTRUCTURE THERE IS WATER INFRASTRUCTURE AND SEWERAGE INFRASTRUCTURE COLLECTOR www.macedonia-timeless.com ELECTRICAL INFRASTRUCTURE THERE IS ELECTRICAL INFRASTRUCTURE Tourism Development Zones TDZ offer: tax incentives, training and education for new employees. Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 35
  • 36. Tourism Development Zone Dojran 2 Possible Planning Purposes : • Tourist settlement with bungalows • Small catering and commercial units • Rehabilitation center for alternative treatment Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 36
  • 37. EVALUATION OF POSSIBLE SPACE FOR PLANNING PURPOSES (contents) Project No. 2 P (ha) 20 hа Relief CONDITIONS The location is on flat terrain ALTITUDE ~170 m STRUCTURE OF LOCATION IN RELATION TO THE LAKE The location is on the coast CURRENT SITUATION Institution in charge TRAFFIC CONNECTIONS THE LOCATION IS NEAR THE REGIONAL ROAD R604 AND IS ACCESSIBLE) Agency for Promotion and Support of Tourism WATER PIPING INFRASTRUCTURE THERE IS WATER INFRASTRUCTURE AND SEWERAGE INFRASTRUCTURE COLLECTOR www.macedonia-timeless.com ELECTRICAL INFRASTRUCTURE THERE IS ELECTRICAL INFRASTRUCTURE Tourism Development Zones TDZ offer: tax incentives, training and education for new employees. Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 37
  • 38. Tourism Development Zone Ohrid 1 Possible Planning Purposes : • Hotels • Trade units • Sport and recreation Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 38
  • 39. Tourism Development Zone Ohrid 1 EVALUATION OF POSSIBLE SPACE FOR PLANNING PURPOSES (contents) Project No. 3 P (ha) 60,56 hа Relief CONDITIONS The location is on flat terrain ALTITUDE ~690 m STRUCTURE OF LOCATION IN RELATION TO THE LAKE The location is on the coast CURRENT SITUATION Institution in charge TRAFFIC CONNECTIONS THE LOCATION IS 150 METERS AWAY FROM THE REGIONAL ROAD R501 Agency for Promotion and Support of Tourism WATER PIPING INFRASTRUCTURE THERE IS WATER INFRASTRUCTURE AND SEWERAGE INFRASTRUCTURE COLLECTOR www.macedonia-timeless.com ELECTRICAL INFRASTRUCTURE THERE IS ELECTRICAL INFRASTRUCTURE Tourism Development Zones TDZ offer: tax incentives, training and education for new employees. Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 39
  • 40. Tourism Development Zone Struga 1 Possible Planning Purposes: · Small trade units · Sport and recreation · Motodrom Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 40
  • 41. Tourism Development Zone Struga 1 EVALUATION OF POSSIBLE SPACE FOR PLANNING PURPOSES (contents) Project No. 4 P (ha) 16.26 hа Relief CONDITIONS The location is on flat terrain ALTITUDE ~700 m STRUCTURE OF LOCATION IN RELATION TO THE LAKE The location is on the coast CURRENT SITUATION TRAFFIC CONNECTIONS THE LOCATION IS NEAR THE REGIONAL ROAD R420 AND IS ACCESSIBLE WATER PIPING INFRASTRUCTURE THERE IS WATER INFRASTRUCTURE AND SEWERAGE INFRASTRUCTURE COLLECTOR ELECTRICAL INFRASTRUCTURE Agency for Foreign Investments and Export Promotion Institution in charge Agency for Promotion and Support of Tourism www.macedonia-timeless.com THERE IS ELECTRICAL INFRASTRUCTURE www.investinmacedonia.com 41
  • 42. Spa Tourism • • • Region rich with geothermal waters with healing effects More than 60 thermal springs Identified locations for construction of new spa-wellness centers, hotels and resorts Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 42
  • 43. Spa Tourism Locations with strong indications of geothermal water • Raklis – Radovis – Borehole with yield of 2l/sec and temperature 25ºС • Toplec and Nikolic – Dojran – Natural spring with temperature 40ºС • Banjice – Tetovo – Natural springs with yield of 10l/sec and temperature of 27-30ºС • Proevci, Kumanovska Banja – Kumanovo – Estimates of up to 100ºС from the primary collector Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 43
  • 44. Spa Tourism • Sabota Voda – Veles – Borehole with yield 3.5 – 4.0l/sec and temperature of 3048ºС, estimates of up to 110ºС for the primary collector • Mariovo – Prilep – Numerous spring appearances, temperature varies from 20-23ºС • Kezhovica –Shtip – 2 boreholes with yield 4.5 l/sec and temperature 63 ºС • Majdan and Toplic – Kavadarci – No temperature available due to the mixture of hot and cold water Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 44
  • 45. Ski Centres in Macedonia POPOVA SAPKA PONIKVA MAVROVO KRUSEVO PELISTER KOZU F GALICIC A Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 45
  • 46. Popova Sapka Ski Center OVERVIEW • Popova Sapka is situated in the northwestern part of Macedonia on 1,780 metres above the sea level, just 35 kilometres from the capital Skopje. • Pre-feasibility study is already completed and four phases were identified to complete this project Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 46
  • 47. Popova Sapka Ski Center Current situation • Total ski terrain length of 55km • Currently there are 10 lifts • Capacity of 2900 skiers per day • Housing • Hotels – 600 beds • Private accommodation – 3000 beds Parking space for 549 cars • • Relatively dense and unstructured resort village Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 47
  • 48. Popova Sapka Ski Center PHASE 1: Existing area optimization • Build two new lifts (Pods 3 & 4) and remove eight existing lifts • Keep lifts Sv. Ilija and Aerodrom • Total mountain capacity > 3400 skiers per day • Improvements needed in the base area: new parking area increase of the quality of the existing beds new mountain restaurants/ skier services. Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 48
  • 49. Popova Sapka Ski Center PHASE 2: Building new village • Start developing “Aerodrom flats” to create a new village • As soon as beds are available at the new village, build two new lifts (Pods 1 & 2) and remove Sv. Ilija and Aerodrom • Finally build lift in Pod 5 • Total mountain capacity: 7130 skiers/day • A total of over 4000 new beds (3000 skier beds at least) and some additional 300 parking stalls Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 49
  • 50. Popova Sapka Ski Center PHASE 3: New village completion • Complete Village and add new parking and connecting lift • Two new lifts will be added. • The village will keep increasing in size to almost build-out stage (nearing 6000 beds) • A new parking 3km before the existing Popova Sapka needs to be developed to accommodate all the skiers • A connecting lift from the new village to the bottom of Pods 4 & 5 should be built • Total mountain capacity: 10190 skiers/day Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 50
  • 51. Popova Sapka Ski Center PHASE 4: Build out • Two new lifts are to be built • A new lift coming from Tetovo city center could be built, bringing the skiers and pedestrians to the recently developed village center. • Total mountain capacity of 13,010 skiers/day Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 51
  • 52. Popova Sapka Ski Center PROJECT DETAILS • Currently ski center Popova Sapka is managed by ELEM, a state company producing electricity. • They are seeking a partner to develop Popova Sapka using PPP model. Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 52
  • 53. National Park Galicica - Recognized as National Park in 1958 - Encloses an area of 25.000 hectares Ski center PROJECT OVERVIEW - Bordered by Lake Ohrid (695 m), Lake Prespa (850 m), with the highest peak Magaro (2255 m) • • Ski slopes start at 1600 m up to 2200 m (5 km of ski lifts and 12 km of ski slopes) Capacity of 5000 skiers per day - Balkan Lynx (indigenous specie) • Land concession 7,290,000 m² • Project will be developed in 4 phases (Possibilities for PPP or private investor) Tourism opportunities: - Lake tourism - Leisure tourism - Medical tourism DEVELOPED INFRASTRUCTURE • 40 km from the airport to the ski center • Existing hotels 7 km away from the ski slopes Proximity to City of Ohrid with 250.000 tourists per year Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 53
  • 54. National Park Ponikva - 1560 meters above sea level - Winter and summer recreational and tourist center - Tourism potentials of the Osogovo region (locations for construction of accommodation and tourist service facilities) Ski center summer activities Winter and Skiing, mountaineering, paragliding • 2 ski lifts • Peaks Ponikva – 1560 m Retki buki – 1760 m - Hunting: Sultan Tepe (King’s top) – 2085 m Lodges and famous hunting grounds (deer, mouflon, wild pig, doe, etc.) Ruen – 2250 m • Tourist recreational trails - Nature and Food: Intact beauty and high quality, authentic ecologically clean food Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 54
  • 55. National Park Mavrovo New locations for construction of additional commercial premises and hotels Ski center Planned expansion of the ski-resort National Park Mavrovo Existing Capacities Recognized as a National Park in 1949 The largest in Macedonia (over 73,000 ha) Tourist resort at the foothill of Mount Bistra 70 cm average snow cover (November-April) Alpine & Nordic Skiing - From beginner to expert slopes -30 km trail length (“Peaceful Valley”–7.5 km) Agency for Foreign Investments and Export Promotion 3 chair lifts & 11 ski lifts with total length of 5,700 meters and capacity of 11,100 skiers/hour The highest ski lift tops at 1,860 meters 15 km ski trails & Night skiing Hiking & Biking - 52 peaks over 2000 m - 500 km new trails with maps and guides Hunting & Fishing - Mavrovo Lake (rich in famous lake trout) - Hunting grounds Paragliding Kayaking - Radika river www.investinmacedonia.com 55
  • 56. INVESTMENT PROJECTS ENERGY SECTOR • Government strongly committed to developing the energy sector through public and private investments • National strategy based on diversifying the sources and types of energy use • Focus on completing the strategy for the exploitation of renewable sources of energy
  • 57. Energy Sector Strategic Projects Gas Transmission System • Complete feasibility study for expanding the national gas transmission system • Rapid investment in completing the national gas transmission system with support from international financial institutions – €250 – €350 M • Strong commitment to supporting the development of regional gas transmission pipelines • Focus on diversifying the source of gas available to consumers in the country Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 57
  • 58. Energy Sector Strategic Projects Gasification of the Republic of Macedonia Planned routes and possible connections for construction Existing condition of pipeline in the Republic of Macedonia •Total length of pipeline - 98 km pipe, Ø 530 mm and of 54 bar; • Capacity 800 million m3 per year up to 1000 million m3 per year; • Connected cities – Kriva Palanka, Kratovo, Kumanovo and Skopje. Total potential consumption in 2020 approximately 1300 million m3/year Potential consumption • in households, service sector and industry in 2020 - 500 million m3/year • in energy sector in 2020 - 800 million m3/year Potential consumption in households, service sector and industry in the cities · 2017 · 2040 170 million m3/year 1.136 million m3/year Planned Activities – Gas Transmission System Phase I - priority sections with lengths Kavadarci-Prilep-Bitola – 97 km • Stip-Radovis-Hamzali-Strumica-R. Greece – 110 km • Skopje-Tetovo-Gostivar branch to Kicevo – 110 km Agency for Foreign Investments and Export Promotion Phase II - priority sections with lengths • Gostivar-Kicevo-Ohrid-Struga-Kafasan – 114 km • Bitola-Ohrid – 64 km • Hamzali-Novo Selo-border of R. Bulgaria – 25 km and other small sections in length of 250 km www.investinmacedonia.com 58
  • 59. Energy Sector Strategic Projects Gas transmission (distribution) system Existing gas transmission (distribution) system • Kumanovo • Strumica Planned gas transmission (distribution) system SKOPJE PRILEP GOSTIVAR TETOVO STIP BITOLA 2015 80 million m3/year 2015 7 million m3/year 2015 3 million m3/year 2015 6 million m3/year 2015 2 million m3/year 2015 7 million m3/year 2040 500 million m3/year 2040 48 million m3/year 2040 23 million m3/year 2040 42 million m3/year 2040 24 million m3/year 2040 47 million m3/year €80M €27M €21M €26M €18M €31M Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 59
  • 60. INVESTMENT PROJECTS ENERGY SECTOR HYDRO POWER PLANTS
  • 61. Energy Sector Strategic Projects Hydro Power Plants • PPP with PE “ELEM” for the construction of a combined cycle heat and power plant (investment value ≈ €250M) – CHP Energetika • An ongoing tender procedure – under the auspices of the IFC advisory services for HPP “ Cebren and Galiste ” (investment value ≈ €600M) • HPP “Boskov Most” (investment value ≈ €90M) • Vardar Valley system of HPPs along the Vardar river (investment value ≈ €1.5B) CHP ENERGETIKA 300MW(e),150MW (h) 2.000 GWh(e), 500 GWh(h) €250M Agency for Foreign Investments and Export Promotion HPP BOSKOV MOST H=44.4 m 68.2 MW 117.55 GWh €107M VARDAR VALLEY 200 MW (e) €1.5B www.investinmacedonia.com 61
  • 62. Energy Sector Strategic Projects HPP Cebren Technical parameters: Average discharge:26.00m3/s Average production:840/786 GWh Installed flow:231/208m3/s Number of units:3 Installed capacity:333/347 MW Construction period:6 years Project Project costs:€340M HPP Galiste Technical parameters: Average discharge:28.90m3/s Average production:262.50 GWh Installed flow:180m3/s Number of units:3 Installed capacity:193.50 MW Construction period:7 years Project Project costs:€200M Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 62
  • 63. Energy Sector Strategic Projects Small Hydro Power Plants • Potential for construction of 400 SHPPs with total installed capacity of 250 MW and average annual electricity production of 1200 GWh • Completed tender procedure and signed 68 concession contracts for production of electricity from SHPPs with total installed capacity of 58 MW Expected annual production of 227 GWh and projected investment value of €103M • Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 63
  • 64. INVESTMENT PROJECTS ENERGY SECTOR Thermal Power Plants
  • 65. TPP Bitola • The Thermal Power Plant Bitola is located 8 km east of the city of Bitola and about 15 km north from the Greek border. The total installed capacity is 675 MWel and the power plant is the country’s major energy source. About 70% of the total energy produced in the Country, is generated in TPP Bitola • The Power Plant with the 3 units has been operate for 20 years (each unit has a capacity of 225 MWel and consumes about 2 mil.t of lignite annually) The Project consists of three phase: Revitalization and modernization of the turbines, generators and automation in TPP Bitola Investment costs: €56.83M Revitalization and modernization of the boilers and lowering of the NOx in TPP Bitola and modernization of the cooling towers Investment costs:€97.5M Revitalization and modernization of TPP Bitola with lowering of SОx and dust Investment costs:€154.25M Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 65
  • 66. Energy Sector Strategic Projects Combined heat power plants CHP Energetika-installed power 300 MW (e), 150 MW (h) - consumption 300-450 million m3 Project costs:€44M TEC Negotino - installed power 210 MW (e) consumption 300-450 million m3 TEC Oslomej - installed capacity 125 MW (e) - consumption 200 million m3 Project costs:€300M Small combined heat plants - Opportunity to invest in small combined heat plants by building a pipeline network in the Republic of Macedonia Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 66
  • 67. TPP Mariovo TECHNICAL PARAMETERS • • • Installed capacity-electricity 300 MW Electricity generation 2.000 GWh Project cost : €350M Fuel domestic coal Geological reserves 111 mil. t Heating value 7800 KJ/kg Humidity 42 % Ash 21 % Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 67
  • 68. INVESTMENT PROJECTS ENERGY SECTOR MINES
  • 69. Coal Deposit Mariovo Coal (lignite) deposit located south of the city of Prilep. • Extensive investigations and technical documentation was prepared during 19651985 • The latest investigations in 2010 presented 97 mil. t of coal in total • Approximately 62 mil. t are exploitable with underground exploitation, according to the latest ongoing project for opening of this mine • Planned capacity: 2,000,000 t coal annually • Quality: LHV= 8300 kJ/kg (1982 Kcal/kg) • This project in combination with new TPP would meet the increasing needs of installed capacity and energy Project cost : €126M Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 69
  • 70. Coal Deposit Suvodol • The deposit is situated in the exploitation field of mine Suvodol and it spreads over approximately 3 km2 respectively 1/3 of the entire area affected with main coal seam (10 km2). • About 70% of the total electricity generation in Republic of Macedonia is provided by TPP Bitola, operates on base of the determined coal reserves located in the Suvodol mine. Simultaneous opening of the Deep underlying seam Suvodol and Open pit mine Brod-Gneotino will provide coal reserves for extension of working life of TPP Bitola until 2030. Technical parameters: Geological reserve:55 mil.t Exploitation reserve:50mil.t Heating value:7542KJ/kg Humidity:44.49% Ash :19.72% Project cost:€41.55M Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 70
  • 71. Coal Deposit Zivojno • • • Ongoing investigations on this coal site, in their final stage. It is expected to yield on this Ongoing investigation of this coal site, is in the final stages. It is expected to yield final accurate parameters regarding the coal and the surrounding road strata. According the Techno-economical Elaborate from January 2013 there are certain possibilities for coal excavation with deep exploitation, with excavation of 1 million ton of coal annually. The estimated total geological coal reserves in the Zivojno deposit, the possibility for their exploitation, and the vicinity of MPC Bitola (approximately 20km) or construction of a new appropriate TP capacity, justifies the efforts for its usage over a longer time period. Technical parameters: Quantity: ≈100,000,000t coal (total geological reserves old estimates) Heating value: 7452KJ/kg Humidity:46.5% Ash:19,14% Agency for Foreign Investments and Export Promotion Project cost:€103.5M www.investinmacedonia.com 71
  • 72. Coal Deposit Popovjani • TPP Oslomej is located near Kichevo, with an installed capacity of 125 MW, using coal as a basic fuel from open pit mine Oslomej, located near the power plant • The coal deposit Popovjani could be used for the extending life cycle of the existing TPP Oslomej • With exploitation of this coal deposit, a 10-year prolongation of the TPP Oslomej's operating life cycle could be achieved Technical parameters: Geological reserves : 11.4 mil.t Exploitation reserves : 9 mil.t Heating value : 6159 KJ/kg Humidity : 57.09% Ash : 12.39% Project cost:€40 M Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 72
  • 73. INVESTMENT PROJECTS Renewable Energy • Measurement of wind potential; Preparation of a feasibility study • Study for Reliability of the Power System and Connection of Wind Power Plants • Solar potential: the annual solar radiation is 1385 kWh/m2 • Climate characteristics - continental climate with hot and dry summers, and high intensity of solar radiation
  • 74. Wind Park-Bogdanci First phase: construction of access road, substation and 36.8 MW of installed capacity of wind-turbine and secondary annual production of 100 GWh Installed capacity of 32-40MW The necessary area needed for installation of the total capacity is up to 90 ha Expected costs: €55.5M Second phase: construction and the installation of the remaining windturbine of about 10-20 MW Technical parameters: Average wind speed:7.1m/sec Rotor diameter:80-95m Voltage level:110kV Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 74
  • 75. Solar Power Plant • • • • • Possible sites for placing the Solar Field : Near coal depot in TPP Bitola,with total area of 390.000 m2 Total annual generation – 25Gwth(el) Planned technology: 1. Parabolic Trough or 2. Linear Fresnel Envisaged Variants: 1. Solar system (without auxiliary fuel) (≈45 MWth) 2. Hybrid system (integration with 2 units in TPP Bitola) The Project will be realized during the period of 2014 – 2016 Expected costs ≈ €30M Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 75
  • 76. Ongoing projects • Rehabilitation of 400 kV substations Skopje 4, Skopje 5, Bitola 2 and Dubrovo (loan from EBRD) €6.5M • 2x110 kV OHTL HEC Vrutok – SS Tetovo 1 (loan from EIB) €3M • Procurement of high voltage equipment for 400 kV and 110 kV level • New SCADA/EMS and backup national dispatching center (EBRD loan saving and MEPSO funds) • Project for development of transmission network (loan from IBRD) €20.7M – New 2x110 kV OHTL SS Bitola 3 – Bitola 4 – Rehabilitation of 110 kV OHTL SS Skopje 1 – SS Tetovo 1 – Project i.e. unbinding of the substation and rehabilitation 110 kV SSs – Project for telecommunication – procurement and installation of OPGW Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 76 76
  • 77. INVESTMENT PROJECTS INFRASTRUCTURE & REAL-ESTATE
  • 78. Infrastructure Strategic Projects Motorway - Corridor 8 Package 1 •Total length of road sections to be constructed is 138 km •Concession project includes building, maintenance, collection of tolls and management of road sections. •Total cost of Concession Project is estimated at €434mn Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 78
  • 79. Infrastructure Strategic Projects Motorway - Corridor 8 Package 2 • Total length of road sections to be constructed is 141 km • Concession project includes building, maintenance, collection of tolls and management of road sections • Total cost of Concession Project is estimated at €558M Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 79
  • 80. Infrastructure Strategic Projects Railroad - Corridor 8 Package 3 • Construction of toward Bulgaria the railroad • Total cost of Concession Project is estimated at €420M Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 80
  • 81. The Project includes Sections Gostivar – Tetovo - Skopje (М4), Gostivar - Kafasan (border with R. Albania) and Kriva Palanka – Romanovce (towards border with R. Bulgaria) which are part of the pan – European Corridor VIII. Section Stenkovec – Blace which is defined as Route 6a (SEETO Project Code MACRD031) in the South East Europe Core Regional Transport Network Development Plan 2011 Connection with the following cross border projects Motorway on Route 6a - Kosovo (under UNSCR 1244/99); Upgrade of the Corridor VIII - Republic of Albania and Republic of Bulgaria. Length and approximate costs for construction Road Sections Length (Kms) Cost (€m) Road Sections Length (Kms) Cost (€m) Road Section: Stenkovec-Blace 13 km € 69.1 Road Section: Kriva Palanka-Romanovce 60 km €272.7 Road Section: Kafasan(Albanian Border) and Trebenishte-Ohrid and Podmolje-Struga 128 km € 489.4 Road Section: Kochani-Shtip 28 km € 56.3 Road Section: Miladinovci-Shtip 50 km € 104.6 Existing Section Gostivar-Tetovo-Skopje (M4) 55 km 0 Existing Section: Skopje Bypass 26.5 km 0 TOTAL 196 km € 558.5 Existing Section: Miladinovci-Skopje 11 km 0 (Hipodrom) TOTAL Agency for Foreign Investments and Export Promotion 177.5 km www.investinmacedonia.com € 433.6 81
  • 82. Privatization of Macedonia Post • Liberalization and development of the postal market (a new Law on Post Services was adopted in compliance with EU directives). • A study for defining the privatization model of AD “ Makedonska posta ” with determined scope (percentage) of the privatization and the timeframe for its realization is being prepared. • The future minority shareholder (49%) would manage AD “Makedonska posta” Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 82
  • 83. Real Estate & Construction Real estate project City Skopje Skyscrapers Hotels (3 hotels in the center of the city; 1 hotel near to the airport) Shopping and business centers, including golf terrain Sport and recreational center Business center Locations available as a result of land transformation of army barracks (commercial and business centers and residential areas) Ohrid Hotels (along the lake cost) Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 83
  • 84. Real Estate Opportunities Skopje The Second Best City For Real Estate Investment In Europe • Area: 13,710 m2 • Short proximity to city center • Possible Planning Purposes: – Hotels – Residential buildings – Commercial buildings – Sports and recreation facilities Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 84
  • 85. PRIVATIZATION PROJECTS
  • 86. Privatization Projects JSC “OHIS” – Skopje • 75.6% of shares owned by the state • Each interested investor must have sales revenues in 2009 and 2010 that exceeds €2,000,000 for each year and the structure of the criteria for evaluation are: - Offered price (starting price of the share):10% . - Reputation/creditworthiness of the bidder): 30 %, - Business plan in the first 5 years: 60% (Investments in the first 5 years: 30% and number of additional new employments in the first 3 years:30 %) • Is based in an industrial zone within Skopje (occupies 74,1 ha) • Largest local chemical producer (detergents, soaps, chemicals, etc.) • Locally available skilled workforce • Strong brand recognition of chemical products on regional markets • The nature of the industry compels significant improvements in the environmental conditions and standards • 897 employees Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 86
  • 87. Privatization Projects TKP “Prilep” • 84% of common and 100% of preferred shares owned by the state • 1183 employees • Strong tradition in producing cigarettes since 1875 • Production capacity of 4.65 billion sticks per year • Producer of cigarettes with local and regional brands with internal management of all stages of production (production, fermentation, processing, packaging) • Local supply of tobacco with over 6000 contractors • Cooperation with BAT, Phillip Morris, SOCOTAB, Japan Tobacco etc. Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 87
  • 88. Privatization Projects JSC “EMO” – Ohrid • 65 % of the shares are owned by the Government of the Republic of Macedonia • 1419 employees • Established in 1972 and for the last 30 years has been a leading Macedonian manufacturer and supplier of electro-mechanical components and systems with design, manufacturing, and installation capability • Strong brand name in the region, Middle East, Africa, and Russia with 45% of sales for export • Locally available highly qualified workforce Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 88
  • 89. Privatization Projects JSC “Eurokompozit” – Prilep • 100% of the shares are owned by the Government of the Republic of Macedonia • 373 employees on 30.06.2013 • Extensive expertise and experience in production of special purpose products since 1952 • Civilian production program [wound products, spare parts for locomotives, honey comb, molding composites] • Military production program [rocket launchers, ballistic helmets and vests, mortar shells, bayonet, upgrades of military vehicles] • Partners include Hyundai Heavy Industries, Haeffly Test AG, Passoni – Villa, Koncar, etc. • Eurokompozit is ISO 9001 certified and its product are UL approved • Total sales revenue (2012): €2.382M • Net Profit/Loss (2012): €822,786 • Liabilities (31.12.2012): €978,1996 Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 89
  • 90. Agribusiness and Food Processing Industry
  • 91. Agribusiness and Food Processing Industry • Agribusiness is one of the fastest growing sectors with more than 10% increase over the past three years • More than 400.000 people make whole or part of their income from agriculture activities • Sector comprises 16% of national GDP • For the last three years (2010, 2011 and 2012) there has been an increase of exports for 10,2 % in average. • In 2012 ​the export of processed agricultural products was 40.5 thousand tons or 46.1 million EUR • Excellent supply • 297 agricultural enterprises • 192 082 family owned agricultural holdings • EU Standards applied Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 91
  • 92. Investment Opportunities Agribusiness and Food Processing Industry Industrial Crops • Tobacco Largest agribusiness export contributor - €85M (in 2011) 27 332t produced in 2012 Mainly production of oriental aromatic tobacco • Poppy Production in accordance with international agreements 200t produced in 2011 • Sunflower 4 765 t produced in 2012 1 270 ha production area in 2012 Satisfied only 10% of domestic consumption of edible oil Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 92
  • 93. Investment Opportunities Agribusiness and Food Processing Industry Vegetables • Harvesting area of more than 50,000ha • More than 900,000t annual production • 30% growth of exports in 2011 Production of vegetables (2012) TOMATOES Area in ha: 5,614 Production in tons:145,818 WATERMELONS Area in ha: 5,691 Production in tons: 127,592 POTATOES Area in ha: 13, 204 Production in tons:168,859 PEPPERS Area in ha: 8, 626 Production in tons: 166,247 BEANS Area in ha: 9, 080 Production in tons: 5, 849 CABBAGE Area in ha: 3,734 Production in tons: 94,233 Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 93
  • 94. Investment Opportunities Agribusiness and Food Processing Industry Fruits Total exports for fruit in 2012 has been estimated up to 104.845 tons daily flow of 26.2 million EUR. Annual production of fruits in 2012 was 150,489 tons 14,000 ha of orchards Grapes 240,461t annual production of grapes in 2012 33,400ha of vineyards in 2012) €12,3M of exports in 2012 Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 94
  • 95. Investment Opportunities Agribusiness and Food Processing Industry Wine Production • Winegrowing and wine production accounts for ~20% of total agricultural GDP • More than 80 existing wineries – – Total capacity: 250 million litters Production: 100,000,000l • Domestic cellars purchased 126,857,000kg wine grapes in 2012 • Domestic consumption of ~15l per inhabitant • Major export markets: Germany, Slovenia, Serbia, USA, Russia, China Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 95
  • 96. Investment Opportunities Agribusiness and Food Processing Industry Project 150 new wineries Criteria The following criteria have been taken into consideration for providing land locations that would be adequate for construction of new wineries: • Proximity of the wine grapes production regions • Accessibility to the road infrastructure • Presence of sufficient quantities of wine grape production Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 96
  • 97. Investment Opportunities Agribusiness and Food Processing Industry Project 150 new wineries • 66 available locations in 6 municipalities • Starting bidding price of €1/m² Municipality Negotino 21 Kavadarci 12 • Starting bidding price of €0.1/m² for 99 Rosoman year lease • Average location size: 3000m² – 4000m² No. of Locations Resava 8 8 • State aid in the form of co-financing Ohrid available 9 Bitola 8 Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 97
  • 98. Investment Opportunities Purchasing and Distribution Centers Criteria The following criteria have been taken into consideration for providing land locations that would be adequate for construction of purchasing and distribution centers for agricultural products: • Proximity of the agricultural production regions • Accessibility to the road infrastructure • Presence of sufficient quantities of agricultural production Locations • East region: Sveti Nikole and Radovis • Tikves region: Negotino • South-east region: Valandovo, Gevgelija, Demir Kapija and Bogdanci • South-west region: Resen and Bitola • Skopje region: Kjojlija Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 98
  • 99. Purchasing and Distribution Centers East region 1.Sveti Nikole Size Initial price per m2 15 ha 1 EUR • Climatic conditions of the East region are favorable for the production of garden and fruit crops, especially due to the presence of natural geothermal water springs. • The most produced agricultural crops in the East region are the following: 2.Radovis 60,000 m2 1 EUR – Peppers: ~9,000t – Tomatoes: ~5,000t – Plums: ~5,500t – Size Initial price per m2 Sour cherries: ~about 2,000t Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 99
  • 100. Purchasing and Distribution Centers Tikves region 3.Negotino Size Initial price per m2 9 ha 1 EUR • Large number of sunny days and fertile soil in the Tikves region play an especially significant role in the production of grapes and fruits with high quality • Production in Tikves region: – – Peaches: ~5,500t – Agency for Foreign Investments and Export Promotion Grapes: ~72,000t Plums: 14,800t www.investinmacedonia.com 100
  • 101. Purchasing and Distribution Centers South-east region 4.Valandovo Size Initial price per m2 6.8 ha 1 EUR 5. Gevgelija Size Initial price per m2 9 ha 1 EUR • South-east region is qualified as a south – warm region which is adequate for production of early vegetables • The most produced agricultural crops in this region are the following: – Tomatoes: ~80,000t (production during winter and summer periods) – Cucumbers/gherkins: ~30,000t – Peppers: 70,000t – Cabbage: 50,000t – Melons: 30,000t 6.Bogdanci Size Initial price per m2 2.3 ha 1 EUR 7.Demir Kapija Size Initial price per m2 4 ha 1 EUR Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 101
  • 102. Purchasing and Distribution Centers 8. Kjojlija Size Initial price per m2 500,000m2 1 EUR Skopje region • West region is characterized by cooler climatic conditions and lower temperatures, therefore the crops ripe later than in the south part of the state. • The most produced agricultural crops in the West region are the following: − − − − Agency for Foreign Investments and Export Promotion Peppers: ~1,7000t Tomatoes: 13,600t Potatoes: 39,600t Apples: ~8,000t www.investinmacedonia.com 102
  • 103. Purchasing and Distribution Centers South-west region 9. Bitola Size Initial price per m2 9 ha 1 EUR 10. Resen • South-west region (Ohrid, Prespa, Pelagonia) is characterized by a more moderate climate compared to the North part of the state. • Climatic conditions in this part are favorable for the development of orcharding. Size Initial price per m2 6.2 ha 1 EUR • The following agricultural crops are the most produced in the South-west region: – – Sweet cherries: ~1,200t – Agency for Foreign Investments and Export Promotion Apples: 90,000t Sour cherries: ~1,700t www.investinmacedonia.com 103
  • 104. Purchasing and Distribution Centers 8 1 2 3 7 4 6 5 10 Agency for Foreign Investments and Export Promotion 9 www.investinmacedonia.com 104
  • 105. Technological Industrial Development Zones - TIDZs
  • 106. Free Zones Free Zone Rankovce Area Size: 40 ha; Corridor 8 Free Zones Skopje 1 & 2 Area Size: 145 + 95 ha; E-75 Highway; Next  to  the  Int’l  Airport Free Zone Tetovo Free Zone Stip Area Size: 95 ha; Distance from Skopje - 35 km Area Size: 208 ha; The largest Free Zone; Excellent logistic support Free Zone Radovis Area Size: 10 ha; Main Road M6 Free Zone Strumica Area Size: 23 ha; Free Zone Kicevo Area Size: 30 ha Free Zone Gevgelija Area Size: 50 ha; 85 km from the port of Thessaloniki Free Zone Struga Area Size: 30 ha; Next  to  the  Int’l  Airport;; 170 km from Durres port Free Zone Prilep Area Size: 68 ha; Between Prilep and Bitola (4th and 2nd largest city) Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 106
  • 107. Technological Industrial Development Zones - TIDZs Infrastructure Benefits • Electrical grid outlet, new power substation in place • Telecommunications network • Central heating • Lighting • Fire safety system - Airport Fire Department minutes away • Security monitoring system • Water, sewage and waste treatment plant • Gas pipeline Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 107
  • 108. Technological Industrial Development Zones - TIDZs Fiscal Benefits TAX RATES TAX TIDZs 0% Corporate tax 10% 10% for the first 10 years Personal income tax Value added tax Outside TIDZs 0% for the first 10 years 0% 0.1% - 0.2% 0% TIDZs Outside TIDZs Raw materials 0% Up to 15% Equipment 0% 5% - 20% 0.1% - 0.2% Excise taxes CUSTOMS DUTY 18% Property tax PRODUCT 5% - 62% • • • • • • Management of existing (established) Free Zone Development of planned Free Zone Subsidy of up to €500,000 towards building costs Incentives in line with EU regulation Green Customs Channel available at border for rapid export from Zone to EU countries Land in a TIDZ in Macedonia is available under long-term lease for a period of up to 99 years Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 108
  • 109. TIDZ “Skopje 1” • €55mn investment • over 500 employees • catalyst production JOHNSON MATTHEY TEKNOHOSE Foreign Investments Agency for and Export Promotion ANNOUNCING BEGINNING OF CONSTRUCTION WORK IN TIDZ “SKOPJE 1” • $40mn automotive components plant; • 150 employees initially – increasing to 500; • Integrated circuits JOHNSON CONTROLS PRODIS GROUP ANNOUNCING BEGINNING OF CONSTRUCTION WORK IN TIDZ “SKOPJE 1” KEMET SIGNING OF THE AGREEMENT VAN HOOL www.investinmacedonia.com SIGNING OF THE AGREEMENT 109
  • 110. TIDZ “Stip” FORTUNE 100 COMPANY $40B Turnover PROJECT SCOPE • 2nd project in Macedonia • $20M Investment • 1400 employees • Construction of cut & trim plant for car seats “Macedonia was chosen because of its international competitiveness, because of our positive existing corporate experience here and above all because of the support and professionalism that we have received from all Government institutions during the analysis process.” Steven Meylemans Project Manager Johnson Controls CONSIDERED COUNTRIES • Macedonia, Moldova and Tunisia Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 110
  • 111. Investment Projects outside of TIDZs SIZE OF INVESTMENT SIZE OF INVESTMENT • €20M • over $4M • 2000 employees • 150 new full time jobs + 300/350 new seasonal jobs • Production of cable installations • Start of operations Q2 2012 • Tobacco facility in Kavadarci • Fortune 500 company “ We are very satisfied with the support provided by the Macedonian Government and its institutions and Bitola municipality. The decision for investment in Macedonia represents an important step in our expansion as part of the strategy for international output.” Martin Passern Managing Director Kromberg & Schubert Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 111
  • 112. Testimonials “Macedonia offers the company just-in-time delivery and minimal freight costs.” Philippe Simon VP of Global Electronics Johnson Controls “This will be JM’s ‘mega-European plant’ and the largest ever single investment project.” Colin Jaffray, Director, Strategic Planning Johnson Matthey PLC Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 112
  • 113. Invest Macedonia at Your Service… • One-stop shop and project management approach • VIP Investment tour • Locations • HR Companies, construction, real estate, tax advisory and consulting • Universities and Reference Company visits • Creating linkages with local and central Governments • Navigate the legal requirements • Ensure success! Agency for Foreign Investments and Export Promotion www.investinmacedonia.com 113
  • 114. Thank You! AGENCY FOR FOREIGN INVESTMENTS AND EXPORT PROMOTION OF THE REPUBLIC OF MACEDONIA ul.Nikola Vapcarov br. 7 1000, Skopje Republic of Macedonia Tel.: + 389 2 3100 111 Fax: + 389 2 3122 098 fdi@investinmacedonia.com www.investinmacedonia.com

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