The Municipality of Kanjiža in Serbia is proposing a public-private partnership to develop a Logistic-Distribution Center for Agriculture. The center would be located in the municipality's industrial park and include warehouses, cold storage, packaging facilities, and sorting areas. It would purchase, process, package and sell agricultural products from the municipality. The private partner would invest 2.1 million euros and manage the center over 5 to 50 years. The project aims to better organize farmers and improve the distribution of the municipality's abundant agricultural output, particularly its 28,000 hectares of arable land and 2,500 hectares of fruits and vegetables.

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