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E 75

E 75

E 75

Kanjiža

PUBLIC PRIVATE PARTNERSHIP: MUNICIPALITY OF KANJIŽA

Logistic-Distribution Center
for Agricultu...
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Municipality of Kanjiža - Public private partnership: Logistic-distribution center for agriculture

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Municipality of Kanjiža - Public private partnership: Logistic-distribution center for agriculture

  1. 1. E 75 E 75 E 75 Kanjiža PUBLIC PRIVATE PARTNERSHIP: MUNICIPALITY OF KANJIŽA Logistic-Distribution Center for Agriculture E 70 E 70 E 70 The Municipality of Kanjiža is located in the upper north of Serbia at the gateway to European Union, on the right bank of river Tisa near the Hungarian border. ItEis only 30 km from Corridor X (highway E 75) and the EU border via regional road R 119, and 185 75 E 75 km from Belgrade. It has a population of 25,764 and covers the area of 399 km2. The territory of Kanjiža offers excellent opportunities for the development of agricultural production - 28,000 ha of fertile arable land, 2,500 ha growing vegetables and fruit. Significant agriculture potential remain under-used due to relatively poor organization among individual producers, lack of capacities for organized collection of fruit and vegetables and their efficient distribution, i.e. placement to domestic and foreign markets. The construction of agricultural distribution center with adequate facilities and cold store aims to address this need. Project E 75 Project ID: Logistic-Distribution Center for Agriculture Agricultural distribution center will take up the area of 3 ha, within the industrial park Horgoš. The Center will be the spot of purchase, sorting, packaging and sale of topquality primary agricultural goods grown in the Municipality of Kanjiža. The project involves the construction of warehouse, cold store, product packaging and processing facility, forming a sorting facility etc. Possible form of project realization is public private partnership without the elements of concession, with the obligation of establishing an entity for special purpose. The agreement is concluded for a period from 5 to 50 years. Trade, distribution Investment form PPP without elements of concession Public partner Municipality of Kanjiža Investment value RSD 288 million (ca. EUR 2.5 million) Funding structure Municipality: RSD 49.1 million (EUR 0.4 million) Private partners: RSD 239.2 million (EUR 2.1 million) Projected financial results Documentation Industry (000 RSD) Revenues: Expenses: Gross income: A detailed regulation plan has been developed for the clean industry zone in Horgoš. Obligations 2014 180,800 163,684 17,116 2015 250,080 219,766 30,314 2016 375,000 320,889 54,111 The Municipality shall provide land with all accompanying documentation, within the existing, partially infrastructurally equipped municipal industrial park in Horgoš. In addition to being in charge of Center management, the private partner shall invest in developing the infrastructure of objects (energy installations, water, sewerage and road infrastructure), purchase of equipment for storing (cold store) and manipulation of goods. Market Supply market: the distribution center will cover the agricultural producers from the Municipality and the District. At the moment, there is more than 5,000 tons of vegetables produced in the Municipality. It is expected that the Center could accept 3,275 tons in the first year, which could rise up to 4,300 and later to 4,725 tons annualy in the years to come. Placement market: the products will be placed on the local and regional markets to well-known buyers from the country (Belgrade Wholesale Market, Mercator etc.) and it is expected that placement would be increased in foreign markets as well. Mihalj Njilaš Mayor predsednik@kanjiza.rs Mladen Marinković Head of Department of Economy mladen.marinkovic@kanjiza.rs PPP in Serbia supported by Municipality of Kanjiža 1 Trg Glavni, + 381 24 875 166, +381 24 873 016 (fax) office@kanjiza.rs, www.kanjiza.rs

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