Serbia IndZone Toolkit MASTER COPY 2009-03-09 715

8/11/2019 Serbia IndZone Toolkit MASTER COPY 2009-03-09 715

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Industrial Park Development and Establishment Toolkit AECOM

TABLE OF CONTENTS

Foreword..................................................................................................................................................... i

1 Introduction.......................................................................................................................................1

1.1 Evolution and Purpose of Industrial Parks..................................................................................11.2 The Future Role of Industrial Parks in Serbia.............................................................................2

1.3 Obje tives of this Toolkit...........................................................................................................2

1.! Intended "udien e......................................................................................................................3

2 General Principles of Industrial Park Development......................................................................5

2.1 "n Overvie# of Industrial Park $evelop%ent...........................................................................&

2.2 T'pes of Industrial Parks............................................................................................................(

2.3 O#nership and )ana*e%ent of Parks........................................................................................+

2.! In entives in Industrial Parks.....................................................................................................,2.& Fa tors for Su ess...................................................................................................................1-

3 Key e!uirements for Industrial Park Development...................................................................12

3.1 ational Strate*' for Industrial Park $evelop%ent..................................................................12

3.2 Roles and Responsibilities of )uni ipalities............................................................................13

3.3 Publi /Private Partnerships.......................................................................................................1&

" Preparatory P#ase of Industrial Park Development....................................................................1$

!.1 Establish%ent of Industrial Park $evelop%ent Task For e......................................................1+

!.2 $eter%inin* the 0ikel' Feasibilit' of a Proposed Industrial Park............................................1

!.3 )ajor onsiderations for "ssess%ent in the Pre Feasibilit' Sta*e...........................................1,4.3.1 en!hmarkin" a #o!ation$s Competitiveness...................................................................1%

)a roe ono%i Environ%ent.......................................................................................................2-Politi al4 E ono%i and Finan ial Risk........................................................................................2-0e*al and Re*ulator' Fra%e#ork.................................................................................................2-Ta5 Re*i%e...................................................................................................................................21Operatin* osts............................................................................................................................. 21Su%%ari6in* the 7en h%arkin* Pro ess......................................................................................22

4.3.& Industr' (e!tor Evaluation..............................................................................................&3Industr' Se tor "nal'sis...............................................................................................................2&

4.3.3 Market Assessment..........................................................................................................&) 4.3.4 Establishin" the #ikel' Demand *or #and........................................................................&+ 4.3., (ite Evaluation and (ele!tion Criteria............................................................................&-

The Site Sele tion "ssess%ent )atri5..........................................................................................3-Pre Feasibilit' Infrastru ture $esi*n onsiderations...................................................................32

!.! Outline Pre Feasibilit' Stud'...................................................................................................32

!.& Establishin* the Feasibilit' of a Proposed Industrial park........................................................334.,.1 Master Plannin" and In*rastru!ture Plannin".................................................................34

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on ept )aster Plannin*..............................................................................................................3!on ept Infrastru ture Plannin*...................................................................................................3+Road $esi*n and " ess...............................................................................................................3,8tilities......................................................................................................................................... 3,

!.( Finan in* and Invest%ent Plannin*..........................................................................................!-

4.).1 o2 to (e!ure inan!in" *or an Industrial Park.............................................................414.).& (teps Involved in (e!urin" inan!in"..............................................................................4&

!.+ Outline Feasibilit' Stud'..........................................................................................................!3

!. "ppli ation for $esi*nation and 0i ensin* as an Industrial Park.............................................!34.-.1 Appli!ation e uirements................................................................................................444.-.& Essential Conditions *or Obtainin" a Park #i!ense.........................................................444.-.3 Other Pertinent a!tors to be Considered.......................................................................4,4.-.4 Pre*erential Criteria *or the Issuan!e o* Park #i!enses...................................................4) 4.-., 5rants o* Park #i!enses and Park Desi"nation Determinations.....................................4+ 4.-.) evo!ation o* Park #i!enses............................................................................................4+

5 Development P#ase........................................................................................................................."%

&.1 Identifi ation of $evelop%ent Partners....................................................................................!,

&.2 0aun h of the PPP pro ess.......................................................................................................&-

&.3 Traditional IP $evelop%ent Pro ess.........................................................................................&1

&.! $evelop%ent Phase $etailed )aster Plannin*.........................................................................&1

&.& $evelop%ent of 7iddin* $o u%ents.......................................................................................&1

&.( $evelop%ent "*ree%ents........................................................................................................&2

& 'perational P#ase...........................................................................................................................55

(.1 Industrial Park )ana*e%ent.....................................................................................................&&).1.1 Marketin"........................................................................................................................,,$evelop%ent of a )arketin* Plan................................................................................................&&

).1.& #easin"............................................................................................................................,+ 0ease Transa tion Pro ess to Portfolio )ana*e%ent....................................................................&0ease Portfolio )ana*e%ent........................................................................................................&

).1.3 Park e"ulation and Complian!e....................................................................................,%).1.4 inan!ial Mana"ement and eportin"............................................................................)0).1., IT Park 6no2led"e Mana"ement....................................................................................)0).1.) (ervi!es to Tenants..........................................................................................................)&

o%%uni ations...........................................................................................................................(2Insuran e................................................................................................................................ ...... (3

9eneral Park )aintenan e and Repairs........................................................................................(3Se urit'.........................................................................................................................................(3

Glossary 'f (erms...................................................................................................................................&"

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FOREWORD

Industrial parks are a epted #orld#ide as a po#erful %e hanis% for i%provin* lo al e ono%ies. In parti ular4 industrial parks an enable investors to lo ate fa tories4 s ientifi resear h enters4 offi es andretail stores in areas that are full' servi ed on land that is free and lear of en u%bran es4 #here the' antake advanta*e of e5pedited li enses and per%its and other in entives provided b' the state.

In line #ith the re:uire%ents of E8 inte*ration4 Serbia;s on*oin* de entrali6ation pro ess and a *reater e%phasis on the role of lo al *overn%ents in reatin* a supportive business enablin* environ%ent4 the)inistr' of E ono%' and Re*ional $evelop%ent


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1 INTRODUCTION

1.1 Evolution and Purpos o! Industrial Par"s

The use of desi*nated industrial areas to *enerate e ono%i *ro#th is a lon* standin* pra ti e #orld#ide.In e ono%i develop%ent these areas are defined as the real estate


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1.# T$ Futur Rol o! Industrial Par"s in S r%ia

The reation and develop%ent of industrial parks in Serbia #ill be a stron* ontributin* fa tor toresolvin* %an' of the diffi ulties that investors4 parti ularl' forei*n investors4 fa e in the ountr'. Theset'pes of fa ilities4 #hi h are also o%%onl' desi*nated as industrial estates4 te hnolo*' parks4 or s ien e

parks4 have alread' been developed in %an' of Serbia;s nei*hbors4 in ludin* 7ul*aria4 the 6e hRepubli 4 Cun*ar'4 and Ro%ania. In these ountries4 various t'pes of industrial parks have beensu essful in *eneratin* ne# invest%ent4 both do%esti and forei*n4 boostin* e%plo'%ent4 in reasin*%ana*e%ent skills4 in reasin* the sales of lo al suppliers4 brin*in* in ne# te hnolo*'4 and raisin* ta5revenues.

In Serbia4 so%e of the %ore pro*ressive %uni ipalities are alread' a tive in pro%otin* develop%entthrou*h industrial parks and free 6ones. To build on these initiatives4 and to e%ulate the su ess of industrial parks in the re*ion4 the 9overn%ent has further plans for the lar*e s ale develop%ent of industrial estates. The Re*ional $evelop%ent $epart%ent #ithin the )inistr' of E ono%' and Re*ional$evelop%ent


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In addition to providin* a fra%e#ork4 the Toolkit e5a%ines the pro ess of industrial park develop%entand should have a pra ti al value for all those involved in su h develop%ents at the i%ple%entation level.It provides a brief outline of the phases in its develop%ent and operation and *ives an overvie# of theele%ents and a tivities of ea h phase4 in ludin*D the preparator' phase? infrastru ture plannin*?establish%ent of publi private partnerships? finan in* and invest%ent plans? publi private partnerships?%aster plannin* and 6onin*? identifi ation of develop%ent partners? %arketin*? real estate %ana*e%ent?

park re*ulation and o%plian e? and park i%prove%ent and e5pansion.

Finall'4 industrial park develop%ent presupposes an a#areness of the need for a #ide nu%ber of i%prove%ents to the operatin* environ%ent4 in ludin* those of a le*al4 institutional4 politi al4 on eptualand behavioral nature. The intention of this Toolkit is to provide *uidelines #hi h #ill set the pro ess of industrial park develop%ent on the ri*ht tra k.

1.) Int nd d Audi n(

This Toolkit is intended for an'one #ith a stake at industrial park develop%ent in Serbia at national4re*ional and lo al levels. "s a *uidebook that provides a fra%e#ork and a *eneral overvie# of the

pro ess4 rather than a detailed %anual for professional users4 it is intended for a #ide audien eD poli '%akers


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# *ENERAL PRINCIPLES OF INDUSTRIAL PAR+ DE,ELOP-ENT

#.1 An Ov rvi o! Industrial Par" D v lop/ nt

Industrial parks are develop%ents that onsist of %ultiple buildin*s that an be desi*ned to a o%%odatea ran*e of uses fro% #arehousin* to %anufa turin* to retailin*. The' %a' ran*e in si6e fro% s%aller

parks of less than &- he tares to ver' lar*e parks that an e5tend to over 2-- he tares.

In *eneral4 the develop%ent of su h fa ilities is o%ple54 ti%e onsu%in* and e5pensive. It involvessubstantial preli%inar' #ork to establish the need for a park in a parti ular lo ation4 plannin* ho# the

park #ill be laid out4 developin* the infrastru ture that #ill support the park4 lo atin* and sele tin* asuitable developer #ho #ill be able to develop the real estate #ithin the park4 identif'in* investors andleasin* spa e to the%4 and on e the park is o%pleted4 %ana*in* it to ensure that it is %aintained to#orld lass standards.

The pro ess of plannin*4 desi*nin*4 developin* and %ana*in* industrial parks an be vie#ed as phases4ea h #ith different obje tives and different re:uire%ents.

On e a de ision is %ade b' a proje t sponsor or pro%oter @ su h as a state develop%ent a*en '4 are*ional authorit'4 a %uni ipalit'4 or a private se tor developer/operator that an industrial park is either ne essar' or desirable in order to brin* e ono%i develop%ent in the for% of invest%ent and jobs to are*ion4 the first step is to obtain a li ense for the develop%ent of the industrial park. The purpose of theli ense4 #hi h #ill be issued to the pro%oter of the industrial park4 is to ensure that the park is lo ated inan area that is suitable for an industrial park4 that there is eviden e of de%and4 and that a finan in* planhas been developed. This li ense %ust be supported b' do u%entation that t'pi all' in ludes a feasibilit'stud'4 a %ap of the site of the proposed develop%ent4 lear eviden e that the lo ation #ill not be subje tto restitution lai%s4 and the finan in* plan. The lo ation of the site is riti al4 and there are #ellestablished steps for deter%inin* the viabilit' of a lo ation. The preparator' phase #ill also involve aru ial pie e of anal'sis @ #hat the de%and for spa e in the park #ill be fro% the perspe tive of bothlo al investors and forei*n investors. This #ill for% part of the feasibilit' stud' that has to be arried outto enable the area to be desi*nated as an industrial park and thereb' be o%e eli*ible for state assistan ethou*h the )inistr' of ational Invest%ent Plannin* in developin* the infrastru ture. The results of this#ill be riti al @ if de%and is not apparent4 or its reation is in doubt4 then develop%ent of the park

be o%es :uestionable.

$evelop%ent of the park is infrastru ture heav'. 7ut prior to developin* the infrastru ture4 steps %ust betaken to a :uire the land in :uestion4 develop a %aster plan4 obtain 6onin* approval desi*natin* the landfor industrial develop%ent4 en*a*e in detailed site plannin*4 and prepare plans for the subse:uent sta*esof develop%ent. Si%ultaneousl'4 plans %ust be %ade for off site and on site infrastru ture develop%ent.This #ill entail preparin* detailed tender desi*n do u%ents4 identif'in* developers4 sendin* out re:uestsfor proposals4 evaluatin* the proposals4 en*a*in* a developer4 overseein* the #ork done b' the developer4

and si*nin* off on it. $evelop%ent of the park is nor%all' arried out b' private se tor o%panies4usuall' in so%e for% of publi /private partnership


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Park operations o%e into pla' on a phased basis. learl'4 the %arketin* pro ess needs to be entered intoas soon as develop%ent of the infrastru ture starts and %a' in lude efforts b' the park pro%oter4 or thedeveloper4 or both. The %arketin* fo us #ill be on attra tin* tenants to the park4 and4 dependin* on theobje tives of the park o#ner4 the %arketin* plan %a' tar*et both lo al and forei*n investors. Theoperational phase also in ludes all the %ana*e%ent tasks involved in leasin* plots or buildin*s to

prospe tive tenants4 olle tin* rents4 %ana*in* and olle tin* fees for the usa*e of utilities4 and providin*%aintenan e servi es to ensure that roads and publi path#a's are %aintained4 publi areas are keptlean4 sanitation servi es are en*a*ed4 se urit' servi es are provided4 and relations #ith park tenants arekept satisfa tor'. Often4 the park pro%oter #ill be involved in the %ana*e%ent of the park4 but this ouldalso be done b' the developer under a PPP arran*e%ent. Often these %ana*e%ent tasks are outsour edand arried out b' the private se tor. " *ood e5a%ple of this #ould be the provision of se urit' servi esin the park b' a se urit' o%pan'.

#.# T0p s o! Industrial Par"s

It is useful to provide an understandin* of #hat onstitutes the various definitions for areas that are setaside for industrial develop%ent4 althou*h there are no universall' a epted definitions for ter%s su h asindustrial park4 or industrial estate4 or free 6one4 or spe ial e ono%i 6one. Co#ever4 the follo#in* broadlassifi ations are based in part on those found in 8 I$O do u%ents and various le*al te5ts su h as theSerbian 0a# on Free ones4 the 0a# on Industrial Parks in Ro%ania4 4 and the ":aba Spe ial E ono%iones 0a#.

Industrial +rea "n industrial area is si%pl' an area of undeveloped land that is 6oned for industrial t'pedevelop%ent.

Industrial 6one "n industrial 6one is a par el of land #hi h is 6oned for industrial t'pe develop%ent4and #hi h has infrastru tural servi es installed4 in ludin* an internal road net#ork4 #ater4 ele tri it'4 andtele o%%uni ations fa ilities.

Industrial -state or Industrial Park "n Industrial Estate or Industrial Park is a tra t of land4 #hi h is

6oned for industrial t'pe develop%ent4 and #hi h has infrastru ture servi es installed in ludin* aninternal road net#ork4 #ater4 ele tri it'4 tele o%%uni ations4 and possibl' se#era*e fa ilities. It issubdivided into plots a ordin* to a o%prehensive plan #ith or #ithout built up


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-conomic Processin e ime This ter% refers to an ad%inistrative rather than a ph'si al on ept#hereb' an investor #ho has EPR status an establish a fa ilit' in an' approved lo ation and have thesa%e privile*es and status as an EP investor.

0pecial -conomic 6one 80-69 " lar*e area that has been *ranted dut' free status. "n SE oftenen o%passes a #hole provin e or to#n. SE s %a' ontain industrial estates or free 6ones #ithin their

boundaries.

#.& O n rs$ip and -ana / nt o! Par"s

The hoi e of ri*ht o#nership stru ture is an essential :uestion in industrial park establish%ent4develop%ent and %ana*e%ent. " ordin* to o%%on international pra ti es4 an industrial park an beo#ned b' an individual4 private fir%4 publi entit' or a *roup. Obviousl'4 ea h for% of o#nership arriesits o#n le*al4 ta5 related4 %ana*e%ent and other onse:uen es.

" joint venture is a o%%on #a' of developin* anindustrial park4 but it does not auto%ati all' reate ano#nership stru ture @ the le*al for% it #ill take dependson the joint venture parti ipants; preferen es andne*otiated for%. The involved parties reate ana*ree%ent #hi h spe ifies the finan ial share4appre iation and invest%ent risk.

"nother option #ould be for a publi institution4 a private fir% or an individual to o#n 1--G of the sharesand full' retain the in o%e *enerated b' an industrial

park. The easiest #a' for an o#ner to ensure su ess of an industrial park #ould be to ontra t #ith a developer for an a*reed fee to establish4 develop and4 possibl'4%ana*e the park on e it has been put into operation. On

the other hand4 su h a stru ture i%plies no risk sharin*and re:uires si*nifi antl' hi*her invest%ents fro% theinstitutional o#ner.

$ire t o#nership is *enerall' appropriate onl' for s%allindustrial parks4 sin e lar*e apital invest%ents usuall' arr' *reater risks and %a' have %an' ne*ativeonse:uen es for an individual o#ner. This should be parti ularl' onsidered b' Serbian lo al*overn%ents4 #hi h have little or no e5perien e #ith joint ventures and publi private partnerships and4thus4 tend to o#n and %ana*e the urrentl' e5istin* industrial 6ones b' the%selves. The :uestion of industrial park o#nership in Serbia is additionall' o%pli ated and onditioned b' the issue of lando#nership and a :uisition. urrentl' in Serbia4 %ost of the industrial land o%es fro% individual o#ners.This fa t4 *enerall' per eived as an obsta le to land a :uisition b' publi institutions4 an4 indeed4 be

turned into an advanta*e for Serbian lo al *overn%entsD the' ould onsider partnerships #ith individualland o#ners as a feasible o#nership stru ture under the urrent ir u%stan es.

Partnerships have a lon* histor' as the %ost preferred o#nership stru ture in >estern pra ti es of industrial park develop%ent. " partnership is a for% of asso iation of t#o or %ore individuals4 private or

publi entities. Partnerships an have an' nu%ber of partners4 re*ardless of their le*al status4 nationalit'or an' other fa tors.

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T'pes of publi /private partnerships and their advanta*es and disadvanta*es #ill be dis ussed separatel'in the follo#in* se tion of this hapter.

"n option that has re entl' been onsidered and i%ple%ented in fe# %uni ipalities in Serbia is theestablish%ent of a publi enterprise as a le*al entit' #hi h is separate and apart fro% its o#ners4 #ith alearl' defined s ope of a tivities related to industrial park %ana*e%ent. "n industrial park develop%ent

publi enterprise has a t'pi al %ana*e%ent stru ture and fun tionsD board of dire tors4 e5e utive dire tor4 publi relations4 le*al affairs4 business and proje t plannin*4 plannin* onstru tion and desi*n4 park %ana*e%ent4 finan ial %ana*e%ent4 *eneral ad%inistration and pro%otion.

>hen industrial parks are publi l' o#ned and operated hatever o#nership and %ana*e%entstru ture is adopted4 the transparen ' of %ana*e%ent a tivities is an i%portant deter%inant for attra tin*and keepin* investors.

#.) In( ntiv s in Industrial Par"s

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Serbia has several stren*ths as a destination for investors. One of the bi**est is its skilled #orkfor e4#hi h offers the added advanta*es of lo# labor osts and hi*h produ tivit'. Serbia is entrall' lo ated#ithin the 7alkans and has *ood a ess to both the E8 and Russia. The lo# rate of orporate ta5 estern Europe J overall labor osts for a *raduate and for skilled staff are appro5i%atel' 3-G of >estern levels. SIEP";s revie# of labor osts for the first si5 %onths of 2--! indi ates that the %onthl'ost of labor in Serbia


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#.2 Fa(tors !or Su(( ss

The su ess or failure of an industrial park depends on a nu%ber of fa tors4 in ludin* several ke' onesD

In addition4 there are other fa tors4 spe ifi all' related to different phases of the pro ess of industrial park develop%ent that ontribute to its su ess or failureD

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Preparatory P#ase

O#nership issues solved Suffi ient natural resour es E5isten e of internal infrastru ture4 transport and

o%%uni ations "vailabilit' of %aster plan and 6onin* "vailabilit' of #ork for e

9ood hoi e of IP develop%ent tea%/task for e Earl' %arketin* for %arket de%and anal'sis on eptuali6ed internal infrastru ture desi*n Pre feasibilit' stud' "vailabilit' of suffi ient funds o%plian e of IP develop%ent proje t #ith E8

standards4 national and lo al strate*ies


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& +E3 RE4UIRE-ENTS FOR INDUSTRIAL PAR+ DE,ELOP-ENT

&.1 National Strat 0 !or Industrial Par" D v lop/ nt

The 9overn%ent of Serbia needs to ensure that the poli '4 le*al and institutional fra%e#ork that supportsindustrial park develop%ent is onsistent #ith the 9overn%ent;s *oals and obje tives for pro%otin*invest%ents throu*h an industrial park re*i%e. The 9overn%ent has a parti ular responsibilit' to ensurethat the future industrial park le*islation and the e5istin* la#s and re*ulations are onsistent. "t presentthe 9overn%ent of Serbia;s support for industrial park develop%ent addresses the follo#in* issuesD

$esi*nation of industrial parks i%plies the provision of servi ed land set aside for industrialdevelop%ent. This is onl' possible throu*h the appli ation of the land le*islation4 in ludin*the le*islation on land o#nership ri*hts4 land a :uisition and titlin*4 6onin*4 utilit'onne tions and the environ%ent?

Industrial parks often ater to forei*n investors. onse:uentl'4 the de*ree of forei*n investor friendliness usuall' e5pressed in the 0a# on Forei*n Invest%ent is i%portant for the su essof industrial 6ones?

The overall ta5 re*i%e and ta5 in entives spe ifi to industrial parks are riti al fa tors in theinvest%ent de ision. In parti ular4 forei*n investors #ill o%pare the ta5 re*i%es of variousountries before %akin* an invest%ent. Therefore4 the *eneral ta5 ode as #ell as la#s on ta5in entives %ust be supportive?

In %an' ases4 industrial parks tar*et lar*er o%panies #ho have an interest in e5portin**oods4 for #hi h ra# %aterials or inputs are often i%ported. These hara teristi s %ake thetrade re*i%e a vital fa tor in the invest%ent de ision. The usto%s ode #ith usto%s tariffs4usto%s ad%inistration and usto%s pro edures is thus an i%portant fa tor for the su ess of industrial parks.

Industrial parks ai% to *enerate e%plo'%ent4 both skilled and unskilled4 so a %odern andfle5ible labor re*i%e is a %ajor plus for an industrial park. Sin e industrial parks and SE str' to attra t forei*n investors4 the rules for #ork per%its be o%e ver' relevant sin e in theearl' operatin* sta*es forei*n investors are often dependent on hi*hl' skilled e%plo'ees fro%their head:uarters to set up the enterprise and train lo al #orkers in its operation.Cead:uarters staff often in ludes te hni ians4 en*ineers4 a ountants and %ana*ers. Theeasier #ork per%its are for forei*n e%plo'ees to obtain4 the %ore attra tive it is for forei*ninvestors to invest in the ountr'.

Strea%lined ad%inistrative servi es o%%onl' used b' o%panies settlin* in industrial parksare ke' non fis al in entives. >eakness in the le*islation on li ensin*4 usto%s4 ta5ation #ill

be ontinuousl' identified and %iti*ated b' the industrial park le*islation.

9eneral business le*islation su h as o%pan' re*istration4 ontra t la# and enfor e%entrules are i%portant for doin* business and short o%in*s #ill ontinue to be identified #ith avie# to addressin* the% as %u h as possible in industrial parks.

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&.# Rol s and R sponsi%iliti s o! -uni(ipaliti s

The pri%ar' role of %uni ipalities is to reate an enablin* environ%ent for business *ro#th andinvest%ent attra tion. In ooperation #ith the ational "llian e for 0o al E ono%i $evelop%ent< "0E$=4 the 8S"I$;s pro*ra% )uni ipal E ono%i 9ro#th proje t has developed a set of riteria4#hi h provide *uidan e to lo al *overn%ents on the onditions that need to be fulfilled in order for the%to be ertified as business friendl' %uni ipalities


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oncessionA In a on ession a*ree%ent4 the private se tor operates under perfor%in* or under developedassets for a li%ited period4 su h as 1-4 2-4 3-4 or &- 'ears4 #ithout a :uirin* an' le*al o#nership over theassets. "n industrial park proje t developed and operated throu*h a on ession has the advanta*e of fosterin* a lon* ter% vie#4 #ith %ediu% ter% i%pa t and %oderate risks. This %odalit' is also relativel':ui k to establish4 #ith the private se tor t'pi all' bein* responsible for ph'si al apital e5penditures.The disadvanta*es are that on essions usuall' entail si*nifi ant invest%ent in entives4 re:uire %oderate

publi re*ulator' apa it'4 and need relativel' %oderate %onitorin* diffi ulties. In Serbia4 on essions#ould re:uire a substantial invest%ent in ne*otiatin* effe tive upfront ter%s #ith the private se tor developers/operators4 in ludin*D

Overall affordabilit' of the available offsite publi infrastru ture4 as #ell as the on site industrial park lands?"ppli able %e hanis% to value publi infrastru ture and land?)ini%u% levels of private industrial park invest%ent and infrastru ture develop%ent?Publi and private obli*ations on ernin* utilit' provision? andRe*ulation of park utilities and servi es both in the 6one and in the lo al %arket if sold there.

uild 'perate (ransfer 8 '(9A The 7OT approa h4 and its variant 7uild4 O#n4 Operate4 Transfer


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) PREPARATOR3 P6ASE OF INDUSTRIAL PAR+ DE,ELOP-ENT

).1 Esta%lis$/ nt o! Industrial Par" D v lop/ nt Tas" For(

"t this sta*e of the industrial park develop%ent proje t4 it is ver' i%portant that a %ultidis iplinar'develop%ent tea% or task for e be reated. It should in lude the developer and e5perts in all relevantareas of industrial park develop%ent. This task for e should be %andated to parti ipate in all sta*es of thede ision %akin* pro ess. The i%ple%entation of this proje t de%ands lose ooperation and oordinationof lo al4 re*ional and national level stakeholders4 #hereas the role of developer is to %ana*e the tea% andensure o%%uni ation a%on* its %e%bers. The task for e should %eet on re*ular basis and ea h %e%ber should influen e de isions pertainin* to his/her individual field of kno#led*e and e5perien e.

If the developer;s role is assu%ed b' the lo al *overn%ent4 the task for e should be appointed b' the)a'or as a te%porar' and advisor' bod' and should in ludeD

)a'or;s assistant for e ono%i affairs/%e%ber of the %uni ipal/ it' oun il in har*e of e ono%i develop%ent?Cead of 0E$ Offi e?Cead of $epart%ent of 8rban Plannin*?Cead of $epart%ent of Finan e?)ana*er of $ire torate for onstru tion?Publi 8tilit' Enterprises )ana*ers?0o al business o%%unit' representatives.

In addition4 it is parti ularl' i%portant that the task for e in ludes people #ith spe ifi e5pertise4 in ke'areas re:uired for su essful a o%plish%ent of the proje t. The ru ial e5perts and their role inindustrial park develop%ent are des ribed belo#D

Dra*t eport Mar!h %/ &00% 1+

,+*D P,+**- 0. The spe ifi responsibilit' of the land planner as a %e%ber of the task for e is liaisin* bet#eenthe developer and the land plannin* e5pert tea%4 in order to translate the developer;s on ept for the proje t into a site

plan #hi h is marketable, efficient and feasible . The a o%plish%ent of this task in ludes lose #ork #ith other e5perts4 su h as %arket resear hers and anal'sts4 *eolo*ists4 en*ineers4 environ%ental spe ialists4 et . The land

planner %ust take into a ount all available infor%ation and find the %ost appropriate solution based on an anal'sis of opportunities and onstraints related to the spe ifi industrial site.

-*GI*-- 0. Site plannin* and buildin* desi*n re:uires a variet' of en*ineerin* kno#led*e. ivil4 %e hani al4ele tri al and o upational safet' en*ineers %ust #ork to*ether #ith ar hite ts to ensure an effi ient and effe tivedesi*n and sound stru ture of the industrial park. The task for e should ensure that en*ineers are appropriatel'represented to provide the ne essar' oordination #ith the en*ineerin* tea% #hi h #ill #ork on industrial park

proje t i%ple%entation. ivil en ineers provide e5pertise in land develop%ent and infrastru ture. Soil and*eote hni al en*ineers are in har*e of the bearin* apa it' of the soils4 soil onditions4 seis%i fa tors4 et ./ec#anical en ineers are in har*e of heatin*4 ventilation4 air onditionin* and other %e hani al #orks. -lectricalen ineers are in har*e of po#er suppl' and o%%uni ations s'ste%s. 'ccupational safety en ineers deal #ithidentif'in* and preventin* potential risks and ha6ards.

0P- IFI ',-0 'F (;- (+0K F' - /-/ - 0


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).# D t r/inin t$ Li" l0 F asi%ilit0 o! a Propos d Industrial Par"

"n industrial park an be onsidered su essful if it %eets the finan ial obje tives of its developers. Itsabilit' to do so is based on its proje ted strea% of in o%e4 #hi h depends on the onditions of the broader

Dra*t eport Mar!h %/ &00% 1-

+ ;I(- (0 are ke' pla'ers in an industrial site develop%ent and are ulti%atel' responsible for its i%a*e. Their #ork in ludes a ran*e of desi*n studies and preparation of tender and ontra t do u%ents in all phases of an industrial

park develop%ent.

-* I '*/-*(+, 0P- I+,I0(0 are in har*e of environ%ental i%pa t assess%ent and the' deter%ine #hether or not to pro eed #ith an industrial park proje t develop%ent. The' also help the developer obtain the ne essar'

per%its and approvals of the #ork pla e environ%ent and the environ%ental aspe t of the industrial park;s inte*rationinto the lo al o%%unit' as #ell as providin* other e5pertise4 as needed.

( +*0P' (+(I'* 0P- I+,I0(0 are needed be ause industrial park operations often involve tru k and other heav' traffi and dire tl' influen e the apa it' of lo al and re*ional roads. The' an also #ork on parkin* issues#ith lands ape planners. Transportation spe ialists are parti ularl' needed in the plannin* phase.

'*0( < (I'* '*( + (' 0 are li ensed professionals4 sele ted in a o%petitive pro edure/:ualifi ation pro ess. 5eneral !onstru!tors supervise #orks4 %ana*e the onstru tion s hedule4 %onitor onstru tion osts4 et .

/+ K-( +*+,>0(0 do resear h and assess the %arket and finan ial feasibilit' of an industrial park develop%ent.The' help deter%ine the si6e4 tar*et %arkets4 on ept and position of the park. Infor%ation olle ted b' %arket

anal'sts an later be used as %arketin* tool to attra t potential investors and attra t finan in*.

FI*+* - 0P- I+,I0(0B- '*'/I0(0 o%%uni ate #ith finan ial institutions and arran*e opti%al finan ialand in entive pa ka*es for the developer.

/+ K-(I*G +*D P< ,I -,+(I'*0 '*00 provide le*al advi e in various areas throu*hout the develop%ent pro ess.

,+*D0 +P- + ;I(- (0 are also ver' i%portant. In addition to lands ape for%s and ve*etation4 lands apear hite ts are in har*e of desi*nin* open spa es #alks4 trails4 #ater features and outdoor re reation areas and4 also4spe if' other features of outdoor spa e4 su h as the position of li*htin*4 outdoor furniture4 si*ns and parkin* areas.The role of lands ape ar hite ts is be o%in* in reasin*l' i%portant #ith the re o*nition of the si*nifi an e .

0P- IFI ',-0 'F (;- (+0K F' - /-/ - 0


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o%petitive %arket and the pro%oter/developer;s abilit' to attra t and retain tenants.Pro%oters/developers need to ondu t %arket and finan ial anal'sis and a site sele tion anal'sis4 the %aino%ponents of feasibilit' deter%ination4 to deter%ine an IP;s future profitabilit' in this o%petitivesettin*.

The industrial park pro%oter %ust be ri*orous in its anal'sis of the %arket area;s e ono%i base and prospe ts for *ro#th. The results of this anal'sis are riti al to identif'in* tar*et se tors for the industrial park and deter%inin* lo ation riteria for the park. Even if pro%oters have pre deter%ined priorit' se torsfor the industrial park4 this anal'sis should be undertaken to support or reje t that deter%ination.)oreover4 the anal'sis4 in the for% of the final feasibilit' stud'4 #ill be subje t to ri*orous appraisal b'the Industrial Park "uthorit' in evaluatin* the li ense appli ation fro% the pro%oter.

This anal'sis is a riti al tool for lo atin* and plannin* a su essful IP. It is an on*oin* pro ess thatdevelopers should update throu*hout the develop%ent period. It is t'pi all' arried out in t#o partsD

" Pre Feasibilit' Stud' #hi h #ill *ive preli%inar' indi ations in re*ard to the feasibilit' of the proposed park. $urin* this pro ess4 it is parti ularl' i%portant to sele t the ri*ht site for develop%ent and to esti%ate the likel' desi*n re:uire%ents for the infrastru ture. The results of this #ill need to be dis ussed a%on*st the %ain stakeholders? and

The Feasibilit' Stud'4 #hi h #ill need to be provided as part of the li ense appli ation to theIndustrial Park "uthorit'.

).& -a'or Consid rations !or Ass ss/ nt in t$ Pr 7F asi%ilit0 Sta

The %ethodolo*' for the %arket assess%ent for an industrial park de%and anal'sis an use three sour esof infor%ation to trian*ulate the de%and s enariosD


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The proposed lo ation;s o%petitive position as deter%ined b' these si5 fa tors #ill not onl' influen ethe investor interest4 but #ill serve as indi ators for the t'pes of invest%ent for #hi h the industrial park is %ost suitable? as ertain fa tors #ill be %ore influential for spe ifi industr' se tors than for others."dditionall'4 the ben h%arkin* anal'sis #ill further infor% the %arket assess%ent and de%and

proje tions for land.

Macroeconomic Environment

The %a roe ono%i health of a host ountr' is one of the fore%ost fa tors that investors onsider in their siteevaluation pro ess. The %a roe ono%i environ%entillustrates #hether or not a ountr' is on a stable path of *ro#th4 #hi h #ill indi ate hi*her probabilit' of *ro#th for the investor.

Political, Economic and Financial Risk

This e5a%ines the various risks asso iated #ithinvestin* both in Serbia and in the proposed lo ation for the park o%pared to o%petitor sites lo all' and innei*hborin* ountries. "ll values anal'6ed are likel' to

be obtained fro% the International ountr' Risk 9uide4#hi h assi*ns nu%eri al values to a predeter%inedran*e of risk o%ponents a ordin* to a #ei*hted s ale.The risk ratin*s represent the ountries as a #hole4despite the fa t that ertain re*ions of a ountr' %i*htarr' si*nifi antl' less risk than others.

Politi al risk %easures the politi al stabilit' of a

ountr'. Politi al risk is a *au*e of *overn%entstabilit'4 so ioe ono%i onditions4 a *overn%ent;sopenness to in#ard invest%ent4 in#ard and out#ardonfli ts4 and other %easures of stabilit'.

E ono%i risk assesses the health of a ountr';se ono%'. It is based on fa tors su h as per apita 9$P4 real 9$P *ro#th4 inflation4 balan ed bud*et4 andurrent a ount as a per enta*e of 9$P

Finan ial risk is based on a ountr';s forei*n debt4 urrent a ount4 international li:uidit'4 and e5 han*erate stabilit'. Finan ial risk assesses a ountr';s abilit' to pa' its #a'. " ountr';s abilit' to finan e itsoffi ial4 o%%er ial4 and trade debt obli*ations is i%portant to ontinued %a roe ono%i stabilit'4 #hi h

is ru ial to the prote tion of invested assets and a fir%;s ontinuin* o%petitiveness in a *iven lo ation.

Legal and Regulatory Framework

In *eneral4 the operatin* hallen*es fa ed b' a business ran*e fro% diffi ulties in se urin* re*istrationsand per%its4 infle5ibilit' of labor la#s and other *overn%ental re*ulations4 se urit' threats4 andorruption in the *overn%ent and the private se tor. >hen en ountered4 these hallen*es i%poseadditional transa tion osts on fir%s4 and thus in rease the ost of doin* business in a parti ular lo ation.This is e5a tl' #here doin* business in an e ono%i en lave4 su h as an n Industrial park4 #hi h provides

Dra*t eport Mar!h %/ &00% &0

ritical Factors for Investment ,ocations

/acroeconomic -nvironment9$P9$P *ro#thInflation0abor for e si6eForei*n dire t invest%ent inflo#

Political) Financial and -conomic isk Politi al stabilit'Repatriation and forei*n e5 han*e poli iesPubli debt holdin*sForei*n invest%ent4 ta5ation and trade re*i%esE ono%i freedo%

,e al and e ulatory Framework 7usiness li ensin* perfor%an e0abor la#sEase of ondu tin* international trade

(a7 e imeorporate N individual ta5"T ta5

'peratin osts0abor 0and and buildin* a :uisition8tilitiesTransport ost

gure at right illustrates the politicalsociated with investing in fivent countries. Political risk is aof government stability,conomic conditions, conflict, and

y.


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breaks on these re*ulations #hile allo#in* the investor to enjo' the benefits of bein* in a ertain lo ation4 be o%es espe iall' attra tive.

0abor fle5ibilit' %easures the re*ulation of e%plo'%ent. It is an i%portant fa tor in helpin* deter%inethe ease #ith #hi h an investor #ill be able to hire4 retain


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Po#er o%panies nor%all' bill industrial usto%ers a ordin* to the si6e of their apa it' de%and4 as#ell as the a%ount of ele tri it' that is a tuall' onsu%ed. " true o%parison bet#een the pri es of

po#er in different lo ations an onl' be %ade b' al ulatin* the osts that a t'pi al fa tor' #ould fa e.

Serbia is ver' o%petitive in its pri e of ele tri it' onsu%ption4 #hi h is a %ajor sellin* point to forei*ninvestors lookin* to lo ate in Serbia. The 2--- -& rehabilitation of the %ajor po#er stations and in reased

produ tion in oal%ines orse >orse >orse 7etter >orse eutral eutral >orse >orse

9$P 9ro#th 7etter 7etter 7etter 7etter 7etter 7etter 7etter >orse 7etter 7etter eutral

9$P Per apita eutral eutral >orse >orse >orse 7etter eutral >orse >orse 7etter >orse

Past F$I >orse 7etter 7etter 7etter 7etter >orse 7etter 7etter 7etter 7etter 7etter

Politi al Risk eutral eutral >orse >orse >orse eutral eutral >orse >orse eutral >orse

E ono%i Risk 7etter eutral >orse eutral >orse >orse 7etter >orse >orse eutral >orse

Finan ial Risk 7etter 7etter >orse eutral >orse >orse 7etter eutral eutral 7etter >orse

Dra*t eport Mar!h %/ &00% &&


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+ssessed,ocationFactors

3 u l 1 a r i a

5 r o a t

i a

5 4 e c #

e p .

; u n 1 a r y

I r e l a n

d

@ o r d a n

o m a n

i a

0 l o v a k

i a

0 l o v e n

i a

( u r k e y

< + -

Startin*/0i ensin* eutral 7etter >orse >orse >orse eutral >orse >orse >orse >orse eutral

I%/E5 $o s. 7etter 7etter >orse eutral >orse 7etter eutral 7etter 7etter eutral >orse

0aborFle5ibilit' >orse 7etter >orse eutral >orse >orse 7etter eutral 7etter 7etter >orse

Propert' Re*. >orse eutral >orse eutral eutral eutral 7etter >orse eutral >orse >orse

Ta5 Pro edures 7etter >orse 7etter 7etter >orse >orse >orse 7etter eutral eutral >orse

Std. Ta5 Rates 7etter eutral 7etter 7etter >orse eutral 7etter 7etter 7etter 7etter >orse

0abor 7etter 7etter 7etter 7etter 7etter eutral 7etter 7etter 7etter eutral 7etter

0and Sale 7etter 7etter 7etter /" 7etter /" 7etter 7etter 7etter 7etter /"

7uildin*sorse >orse 7etter 7etter eutral 7etter

Ele tri it' 7etter eutral 7etter 7etter 7etter eutral 7etter 7etter 7etter 7etter 7etter

>ater >orse eutral 7etter >orse eutral eutral >orse /" /" 7etter 7etter

O ean Transport 7etter 7etter 7etter 7etter 7etter 7etter 7etter /" 7etter eutral 7etter

"ir Transport >orse /" 7etter /" >orse >orse /" /" /" 7etter >orse

4.3.2 Industry Sector Eva uation

The Car%oni6ed o%%odit' $es ription and odin* S'ste% orld usto%s Or*ani6ation. The first four di*its involvin* ,, headin*s of the ei*ht or ten di*it har%oni6ed s'ste% are referred to as headin*s4 and these an anal'6ed b' ountr' urrentSerbian a tivit' #ithin the headin*? the presen e of natural resour es? the *eneral o%petitive position#ithin the headin*? the stren*th of the do%esti 4 re*ional4 and #orld %arkets in the se tors


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" ordin*l'4 the o%petitive position of so%e sub se tors %a' i%prove %arkedl' in the future4 #hi h istaken into a ount #hen sele tin* tar*eted se tors. The se tor sele tion pro ess an be depi ted as in thefollo#in* dia*ra%.

E5tensive desk resear h efforts have to be ondu ted as part of the industr' anal'sis e5er ise.Resear hers %ust olle t and anal'6e data and *ro#th patterns #ith respe t to lo al4 re*ional4 andinternational trade flo#s4 F$I inflo#s4 9ross $o%esti Produ t


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7ased on the these indi ators4 ertain sub se tors an be identified as havin* *ood potential for su ess inan industrial park #hile others an be eli%inated.

#ndustry Sector $nalysis

Identifi ation of a se tor #ith potential does not end the pro ess. 9lobal and lo al industr' trends for thetar*eted se tor4 and operatin* profiles of t'pi al s%all and lar*e fa ilities in the se tor in ludin*e%plo'%ent4 si6e of land needed4 and utilit' usa*e %ust also be deter%ined. The follo#in* broadl'

Dra*t eport Mar!h %/ &00% &,

0u= 0ector

5 u r r e n t

P r e s e n c e

5 u r r e n

t - 7 p o r

t s

* a t u r a l

e s o u r c e s

5 o m p e

t i t i v e P o s

i t i o n

D o m e s

t i c / a r

k e t I m p o r t s

e 1

i o n a l / a r

k e t

: o r l d

/ a r

k e t

+ p p r o p r

i a t e n e s s

t o i n d u s t r i a l

p a r k

( a r 1 e t

5 a t e 1 o r y

1- ereals es es es Stron* )ediu% 0i%ited eutral o o11 )illin* produ ts4 %alt4star hes4 insulin4 #heat*luten

es So%e es eutral )ediu% >eak Stron* es es

12 Oil seed4 olea*ifruits4 *rain4 seed4 fruit4et 4 nes

es So%e es eutral )ediu% 0i%ited Stron* o o

13 0a 4 *u%s4 resins4ve*etable saps ande5tra ts nes

So%e er'little 0i%ited >eak )ediu% >eak eutral o o

1! e*etable plaitin*%aterials4 ve*etable

produ ts nesSo%e er'little es >eak >eak >eak Stron* o o

1& "ni%al4 ve*etable fatsand oils4 leava*e

produ ts4 etes es es Stron* )ediu% 0i%ited eutral es es

1( )eat4 fish and seafoodfood preparations es So%e 0i%ited eutral )ediu% 0i%ited Stron* es o

1+ Su*ars and su*aronfe tioner' es es es Stron* )ediu% 0i%ited Stron* es es

1 o oa and o oa preparations So%e So%e o >eak )ediu% 0i%ited Stron* es o

1, ereal4 flour4 star h4%ilk preparations and

produ tses So%e es eutral )ediu% 0i%ited Stron* es es

2- e*etable4 fruit4 nut4et food preparations es So%e es Stron* )ediu% 0i%ited Stron* es es

21 )is ellaneous edible preparations So%e So%e 0i%ited eutral )ediu% 0i%ited Stron* es o

22 7evera*es4 spirits andvine*ar es es es Stron* )ediu% 0i%ited Stron* es es


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overs the ran*e of infor%ation that is re:uired for ea h se tor or subse tor identified as havin* potentialto be attra ted into an industrial park?

9lobal Industr' Trends in the se tor 0o al Industr' Trends in the se tor o%parative advanta*eo%petitive "dvanta*eriti al I%prove%ents e essar' to "ttra t Industr'Operatin* Profile of o%panies in the se tor

o T'pe of Fir%so S%all Operationo )ediu% to 0ar*e Operationo )ultinational invest%ent in e5port oriented food pro essin*o >orkfor e Si6e !- &--o )ana*ers 3 1-o En*ineers 3o Professionals 1 3-o Skilled 1 2!-o 8nskilled 1& 212o et Re:uired 0and &4--- %2 2 hao Peak Po#er $e%and +-- Q " +4--- Q "o )onthl' Po#er 8sa*e 1--4--- k>h ,--4--- k>ho )onthl' >ater 8sa*e 24--- %3 2-4--- %3

0ist of Tar*eted Subse tors.

4.3.3 !arket "ssessment

The purpose of the %arket assess%ent is to identif' and anal'6e the industries fro% the identified tar*et

subse tors that see% %ost likel' to be prospe ts for lo atin* in an industrial park in the near to %ediu%ter%. This is done b' intervie#in* o%panies in the proposed lo ation and in other re*ions in the ountr'to assess the overall business li%ate4 identif' invest%ent trends and e5pansion plans4 and to deter%inelo ation preferen es for ea h se tor. 7ased on these anal'ses4 ertain industries an be identified ashavin* potential to *ro#. 7' utili6in* the ben h%arkin* anal'sis4 supple%ented b' desk resear h inindustrial and trade databases4 and %eetin* #ith private se tor businesspersons4 the t'pe of fir%s that are%ost likel' to lo ate in an industrial park in future 'ears an be deter%ined.

o%pan' intervie#s are ke' for identif'in* industr' se tors and for Mprofilin*; hi*h potential industr'se tors. The :uestionnaire should over a #ide ran*e of infor%ation in ludin*D

o%pan' profile


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These intervie#s #ill infor% the %arket assess%entJthe deter%ination of e5istin* de%and for land andservi es


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o%petitivenessJ Industrial estate *ro#th patterns and lo al level o%petition are i%portantele%ents to predi t the likel' invest%ent levels over a no%inal period. Co#ever4 dire t invest%entde isions are losel' related to the spe ifi attributes of a *iven area and #hether these fa tors %at han investor;s needs. To fine tune invest%ent levels4 the overall o%petitiveness of Serbian industrial

parks has to be evaluated a*ainst other ountries in the re*ion4 as outlined in the Industr' "nal'sisse tion.

Invest%ent levels over the %ediu% and lon* ter%s depend on several stru tural and poli ' fa tors. " lossof o%petitiveness in fa tor osts or la k of a #ell stru tured %arketin* plan #ill likel' redu e thede%and potential for industrial parks. Fa tors that #ill likel' sti%ulate de%and for the industrial parks inthe short ter% in lude the follo#in*D

"vailable servi ed land."bilit' to obtain onstru tion per%its in a ti%el' %anner at reasonable osts.Reasonable level of politi al stabilit'.Proper i%ple%entation of an a**ressive and tar*eted invest%ent pro%otion strate*'.)aintainin* o%petitive produ tion osts in SerbiaJspe ifi all' ener*' and land osts.

Offerin* appropriate servi es to all t 'pes of investors. 4.3.& Site Eva uation and Se ection Criteria

Site sele tion an have a %ajor i%pa t the su ess and the sustainabilit' of an industrial estate. "s sho#non the hart belo#4 the approa h to site sele tion involves si5 steps. Follo#in* definition of site sele tionriteria4 a lon* list of andidate sites is dra#n up. $ata is olle ted for ea h site fro% pri%ar' and se ondar' sour es as #ell as field visits.Finall'4 data are entered into an evaluation %atri5 and :uantitatives ores *enerated for ea h site.

$efinition of riteria in advan e is riti al for a transparent4 obje tive

site sele tion pro ess. >hile so%e riteria are universal


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(opo rap#y and 0oil onditions Steeper sites and sites #ith poor soil onditions #ill *enerall'drive up onstru tion osts4 thereb' i%pa tin* the finan ial feasibilit' of the proje t. The topo*raph'and soils onditions should be appropriate for the t'pes of e ono%i a tivit' envisa*ed.

apacity for Future -7pansion. The site should have enou*h roo% to e5pand in the future. Sites#ith va ant adja ent land4 for #hi h no future proje ts are planned4 are *enerall' %ore desirable thansites bounded b' e5istin* residential4 o%%er ial or industrial areas. In hi*h *ro#th %arkets4 theabilit' to e5pand in the future is a riti al fa tor for lon*er ter% finan ial sustainabilit'.

-nvironmental onditions and 0ensitivities . Industrial a tivit' an be har%ful to hu%an health andthe environ%ent. e*ative i%pa ts in lude disease4 air and #ater pollution4 land onta%ination4 andloss of biodiversit'. These i%pa ts of have finan ial i%pli ations for the park and e ono%i i%pa tsfor the so iet' at lar*e. Sites #ith hi*her anti ipated environ%ental osts are *enerall' less desirablethan those #ith lo#er ones.

+ccessi=ility Industrial produ tion4 distribution hannels4 the need to a ess ra# %aterials for

produ tion and the labor pool #ill need to be losel' linked and a essible for the park to besustainable and su essful. The park needs to be in lose pro5i%it' to the trade routes of the ountr'and the re*ion. The park should have ph'si al links


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Dra*t eport Mar!h %/ &00% 31


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Pre%Feasi&ility #n'rastructure (esign )onsiderations

Industrial tenants use several fa tors #hen %akin* the de ision to %ove into an industrial park. One of the %ajor fa tors in de idin* on a spe ifi industrial park is the availabilit' of re:uired infrastru ture for the tenant industr'. Industrial parks allo# industries to share infrastru ture fa ilities and therefore save oninvest%ent and operatin* osts? in turn4 this boosts the botto% line of the o%panies and helps the ountr'to use its resour es %ore effi ientl'. Sharin* and redu in* osts is parti ularl' i%portant #hen it o%es tolar*e s ale4 invest%ent intensive fa ilities su h as solid #aste re ' lin* plants and #aste#ater treat%ent

plants. 7' providin* these servi es to tenants on a user fee basis4 the industrial park enables a ess to the best fa ilities #hile alleviatin* the burden of hi*h initial invest%ent osts. "t the sa%e ti%e4 thead%inistrative bod' or %uni ipalit' that invests in the infrastru ture an to profit fro% its invest%ent b'har*in* usa*e and %aintenan e fees as part of the tenant ontra ts in the industrial park. This enables allosts related to %aintenan e4 repairs and up*radin* to be shared b' several parties and %akes thefinan ial burden %ana*eable.

So%eti%es industrial parks are planned in re%ote4 un onne ted lo ations and re:uire the %uni ipalit' or *overn%ent authorit' to e5tend the re*ional infrastru ture to the site boundar' #hi h reates aninvest%ent #ith no initial returns on invest%ent and %i*ht ause severe bud*et proble%s. The i%pa t of su h invest%ents on the finan ial ondition of the o#ner should al#a's be onsidered arefull'4 usuall'throu*h a benefit ost anal'sis. If the benefits of the industrial park4 su h as e%plo'%ent *eneration4 ne#industr' develop%ent4 %ultiplier effe ts4 user har*es and ta5 re eipts out#ei*h the finan ial osts of developin* and operatin* the #orks4 then the invest%ent should be undertaken. In addition4 #here the%uni ipal or *overn%ent bud*et #ill not allo# for infrastru ture invest%ents4 the %uni ipalit' shouldal#a's onsider advanta*es that an be *ained b' PPP stru tures for infrastru ture develop%ent su h as7OT a*ree%ents.

).) Outlin Pr 7F asi%ilit0 Stud0

>hen a %uni ipalit' adopts the idea of an industrial park as a potential ontributor to e ono%i *ro#th4the first thin* it %ust do is establish a Task For e to deter%ine the viabilit' of the on ept. The Task For e #ill first arr' out4 or o%%ission a pre feasibilit' stud' to %ake an initial deter%ination of theviabilit' of the industrial park proposal. The obje tives of this stud' #ill be to ondu t a baseline surve'

prior to the Feasibilit' Stud' to sele t the site and set out the strate*ies and pre onditions for theFeasibilit' Stud' b' larif'in* %arket onditions4 invest%ent de%and and infrastru tural issues. Thefo us of this should not solel' be on the e5a t lo ation of the proposed industrial park4 but on asubstantiall' #ider re*ion4 be ause it #ill involve obtainin* the intentions of e5istin* o%panies inrelation to %ovin* into the industrial park #hen it be o%es a realit'.

7oth the pre feasibilit' stud' and the feasibilit' stud' preferabl' should be arried out b' third parties4not onl' be ause of the spe iali6ed e5pertise needed4 but parti ularl' to %aintain i%partialit' in %akin*re o%%endations. The pre feasibilit' stud' should ontain the follo#in* ele%entsD

7aseline Surve' of the Re*ion


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)arket surve'4 #hi h #ill in ludeDo o%petitiveness anal'sis of produ ts produ ed in the re*ion?o Preli%inar' identifi ation of potential produ t *roups that have an established do%esti

and forei*n %arket?o )arket onditions for these produ t *roups in ludin* a value hain anal'sis?o "n invest%ent surve' in the re*ion overin* both lo al invest%ent and forei*n dire t

invest%ent.Preli%inar' $e%and Proje tions To for%ulate de%and proje tions4 pro%oters %ust undertake

%ore tar*eted resear h to define the propert' t'pes that #ill be developed and as ertainhistori land absorption rates. The follo#in* data should be olle tedDo Identifi ation of industr' se tors to be tar*eted?o urrent inventor' b' industrial sub t'peo "nnual additions to suppl' and e5pe tations for the futureo 0and area re:uired?o 0ikel' labor levels and t'pes re:uired?o 0ikel' tar*eted nu%ber of fa tories/#arehouses/offi es re:uired.o Cistori va an ' rateso urrent spa e availableo Rental rates and lease ter%so Operatin* re:uire%ents for tar*eted se tors


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the ben h%arkin*4 %arket and de%and anal'sis and the site sele tion pro ess4 there are si*nifi ant and%ajor steps that %ust be arried out as o%ponents of the feasibilit' stud'

4.&.1 !aster ' anning and In%rastructure ' anning

Plannin* an industrial park is a three step pro ess4 as illustrated in the dia*ra% on the ne5t pa*e. Step 1involves the on ept plannin* of the site and the infrastru ture. In Step 24 the plannin* and en*ineerin*spe ifi ations for the bid do u%ents are prepared. "nd in Step 34 the detailed site and infrastru turedesi*n is undertaken.

Initiall' the %aster plan and infrastru ture plan need to be developed at the on eptual level to reate the base for the feasibilit' anal'sis. This on eptual phase then feeds into the preparation of plannin* anden*ineerin* spe ifi ations for the tender bid do u%ents. The level of detail #ill var' #ith the

pro ure%ent %ethod. 8nder the traditional desi*n bid build pro ess4 spe ifi ations are ver' detailed.8nder the desi*n build %ethod4 bidders are *iven %ore lee#a' to desi*n their o#n solutions that #illsatisf' the outputs defined in the tender do u%ents.

The onstru tion o%panies or developers #ho de ide to bid for the proje t #ill prepare the detailed%aster plan and infrastru ture desi*ns for the site. )ost detailed site desi*n #ill be prepared b' ver'spe iali6ed fir%s that for% a onsortiu% #hi h #ill bid for the onstru tion of the proje t. The bid leveldo u%ents #ill be detailed enou*h to *enerate a onstru tion ostin* fro% but #ill not over all aspe tsof desi*n and ever' detail of the site onstru tion.

Dra*t eport Mar!h %/ &00% 34


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)oncept Master Planning

The on ept %aster plan is the initial step in allo atin* ade:uate spa e and reatin* the pro*ra%%in* for the tenants of the industrial park. The on ept %aster plan of an' industrial park should base itself on dataand findin*s derived fro% the park;s feasibilit' stud' or detailed business %odel. The steps of the on ept%aster plannin* %ethodolo*' are outlined in the hart

belo#. The first step in the develop%ent of the %aster plan should be to anal'6e the t'pes of industries the park is bein* fore ast to a o%%odate as tenants. On e theseindustries have been identified4 the planners shoulde5a%ine the re:uire%ents for these industries and de ideon ben h%ark plot si6es for ea h industr' t'pe. Ea hindustr' #ill have a ran*e of o%pan' si6es and the

planners should de ide on plot si6es that #ould beade:uate to house a variet' of o%pan' si6es in an'*iven se tor. The fore ast of the esti%ated nu%ber of o%panies to lo ate in the 6one4 oupled #ith the

planners; de ision on plot si6es4 #ill help define there:uired si6e of the industrial park. This nu%ber #ill *ivethe planners the net leasable land that is re:uired or an

be a o%%odated in the 6one. On e this fi*ure has beenidentified4 the planners need to define the other re:uire%ents and fa ilities that are essential for park operations. This #ill in lude ade:uate a ess roads4 %ajor arterial roads4 ener*' and environ%entalinfrastru ture fa ilities4 a%enities4 %ana*e%ent and ad%inistrative operations4 fire and safet' institutions4open spa es4 and other re:uire%ents. First these fa ilities are lo ated and the plot si6es and nu%bersidentified? then the planners an start to subdivide and plan the site.

The %ain onsiderations of an' #ell desi*ned %aster plan and the onsiderations for an industrial park %aster plan are outlined in the t#o te5t bo5es. Planners should be areful to take these onsiderations intoa ount #hen %aster plannin* the industrial park. These onsiderations #ill affe t the industries and the

#a' the industrial park operates4 espe iall' in re*ards to ir ulation4 ade:uate plot si6es4 pollutionadja en ies4 4and lusterin*.

The on ept %aster plan of an industrial park needs to in orporate several different fa tors to be effi ientand industr' friendl'. )ost i%portantl'4 the %aster plan should be effi ient and fle5ible. The plots andallo ated spa es should allo# o%bination and subdivision to reate lar*er or s%aller plots as re:uired b'the tenants. In addition4 these plots should be able to house different industries or a tivities and should befle5ible enou*h to allo# for future unforeseen tenant profiles should the need arise. This affe ts the #a'the a ess and the utilities to the plots are desi*ned as #ell as ho# the adja en ies are planned. Plannersshould al#a's keep future possibilities and fle5ibilit' in %ind #hen desi*nin* an industrial park.

Dra*t eport Mar!h %/ &00% 3,

Master Planning Methodology

Step 1De+elop(ent Pro$r (2

Define Plot U%e% n& %i3er n$e%

Step !Define Acce%% to n& fro(

Site

Step 'Define Are % of t4e ( in

L n& U%e%

Step *Prep re Plot S#)&i+i%ion

n& Ro & L 0o#t

Step ,Deci&e on Ro & 5ier rc40n& &6#%t Plot S#)&i+i%ion

Step .Loc te S#pport L n& U%e%

n& F cilitie%

Step 7I&entif0 Circ#l tion n&

Entr0 n& E-itPro$r ((in$

Step 8Prep re P4 %in$ Pl n for

t4e De+elop(ent

GENERAL MASTER PLANNING CONSIDERATIONS

Le$i)ilit0 n& 5ier rc40 Acce%%Pro$r ((in$Sc le )#il&in$ %c le9 plot %c le9 %#)&i+i%ionetc:2Fle-i)ilit0;onin$Plot co+er $e llo" nce% for )#il&in$ t0pe%

A&e


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Fle5ibilit' should also be onsidered #hen desi*nin* the ir ulation patterns4 roads4 re reational spa es4*reen spa es4 and fa ilities. Roads4 *reen spa es4 fa ilit' lo ations4 and the site boundar' should all allo#roo% for e5pansion. Fa ilities should be desi*ned #ith future han*es4 e5pansion4 relo ation and differentonne tion points in %ind. Roads should be desi*ned #ith possibilities for reroutin*4 e%er*en 'eva uation4 se ure entr' and e5it possibilities and future ontrolled *ates or se tion lose offs4 should theneed ever arise.

"s a parallel to road desi*n4 parkin* should be desi*ned ver' arefull'? as best pra ti e4 no street parkin*should be allo#ed on the sides of the roads or in ul de sa s


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E5pansion e5pe tations and #hen to start the onstru tion of a subse:uent phase.Real de%and and fore asted tenant nu%bers for the follo#in* phases.

Planners should al#a's take into a ount that the attra tiveness of an industrial park is its shared servi esand a%enities? thus4 tenants #ill likel' lo ate if the' see all fa ilities in pla e and utilities operational.Planners therefore4 have to assess the ti%e it takes to build the re:uired infrastru ture and %ove tenants in#hen de idin* on the phasin*.

Phasin* industrial parks help ontrol the si6e of the park4 keep the infrastru ture fun tional and osteffe tive4 and allo#s the park use the its resour es #ithout reatin* a %ana*e%ent burden. Phasin*

be o%es e5tre%el' i%portant #hen infrastru ture is involved. Infrastru ture is a ostl' and %aintenan eintensive invest%ent. It is therefore i%portant to keep the initial invest%ents in infrastru ture in line #iththe e5pe ted tenant nu%bers and proje ted in o%e levels. Infrastru ture should al#a's be e5panded in a%anner that is parallel to the e5pansion of the park;s tenants so that osts to the park developer do not*reatl' e5 eed revenues.

)oncept #n'rastructure Planning

Infrastru ture an be defined as all the funda%ental fa ilities and s'ste%s servin* an industrial park.Infrastru ture in ludes roads4 side#alks4 #ater and #aste#ater s'ste%s4 ele tri al po#er net#orks4irri*ation #orks4 solid #aste olle tion e:uip%ent and fa ilities4 *reen spa es4 and olle tive fa ilitiessu h as fire stations. The steps of on ept infrastru ture plannin* are sho#n in the flo# hart belo#.

Infrastru ture is one of the %ajor fa tors influen in* the feasibilit' of developin* an industrial park.Infrastru ture plannin* is infor%ed b' the %arket assess%ent and industr' profiles4 #hi h define the leveland t'pe of re:uired infrastru ture. En*ineers use this infor%ation to define servi e levels and identif'apital invest%ents. Infrastru ture re:uire%ents depend on the t'pe of industries that #ill lo ate in the

park. Sin e infrastru ture is a lar*e ost ite% in park develop%ent4 the authorit' or %uni ipalit' in har*eof the park has to set realisti tar*ets for infrastru ture develop%ent. Proper on eptual infrastru ture

plannin* allo#s the assess%ent of proble%s and tests for feasibilit' before the %ana*in* authorit'o%%its to parti ular invest%ents.

The initial step in on ept infrastru ture plannin* is understandin* the re:uired profile of infrastru turethat the industries #ill need in the industrial park. For e5a%ple4 a te5tile heav' industrial park #ill need#aste#ater olle tion and treat%ent s'ste%s apable of handlin* te5tile d'es4 #hile a steel plant #ill need

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lar*e a%ounts of ele tri it'. On e the industrial park authorit' has resear hed and olle ted all data for the industries that are likel' to lo ate in the industrial park4 the' should start #orkin* #ith an en*ineerin*tea% that an verif' the olle ted data and start the on ept infrastru ture plannin* of the site. "t thissta*e the en*ineerin* tea% #ill olle t all off site infrastru ture data and #ill deter%ine an' re:uired off @ site invest%ents


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lo*isti s4 %anufa turin* and lean produ tion depend on fast tru k response ti%es and annot afford tru ks#aitin* for one another around do kin* stations or to rea h an entran e or e5it of a plot. In addition4 it is*enerall' *ood pra ti e to desi*n plots preferabl' #ith separate entr' and e5it points #hi h follo# sin*ledire tion ir ular pro*ra%%in* to avoid onfli ts of dire tion fro% %ovin* tru ks.

>hen desi*nin* the roads and road hierar h'4 site desi*ners should also onsider the fa t that #ide hi*hspeed roads are a lar*e invest%ent for an industrial park and that the' should never be overdone or over desi*ned. In the sa%e %anner road hierar h' helps traffi flo#s and allo#s for a ertain %ove%ent

pattern that should not be overlooked. >ide hi*h speed onne tor roads should onl' be pla ed in re:uiredlo ations and if ne essar'. Preferen e should be *iven to t#o lane un separated arria*e roads #henever

possible. In addition4 #hen onsiderin* road jun tions the desi*ners should tr' to avoid roundabouts if possible and if ne essar' the roundabouts should al#a's be desi*ned for tru k peripheral vision andvisibilit'. It is ver' hard for tru k to %aneuver a roundabout at hi*h speeds thus? the roundabouts should

be desi*ned properl' to allo# for s%ooth traffi flo#s and %er*in*.

*tilities

8tilities are riti al o%%on servi es that attra t tenants into an industrial park. 8tilities allo# for tenantsto luster their fa ilities4 avoid burdenso%e infrastru ture and fa ilit' osts and enable the% to have %u h

better s'ste%s that the' #ould not be able to afford other#ise. 8tilit' desi*n is spe ifi to ea h industrial park and should be arefull' undertaken b' :ualified en*ineers and se tor spe ialists. Industries an ran*efro% heav' ele tri users to heav' #ater users4 polluters4 lean industries and others. >hen desi*nin*utilit' s'ste%s4 it is i%portant to spe if' the t'pe of industries that a park is #illin* to house and ai%in*to attra t. >hile te5tile d'in* plants #ould re:uire lar*e a%ounts of #ater and he%i al treat%ent andleanin* fa ilities4 a steel %anufa turer %i*ht re:uire lar*e a%ounts of ele tri it'4 #ater for oolin* its%a hines and the availabilit' of re ' lin* plants to re ' lin* s raps or ele tri it' to operate s%elters. This%akes the utilit' desi*n o%pletel' dependent on the infor%ation *athered in the %arket assess%ent andindustr' profile assess%ent of the feasibilit' stud'. The industr' profiles for a ertain industrial park #illallo# en*ineers to set servi e levels re:uired for the park.If utilities are not ade:uatel' allo ated4 an industrial park #ill run into proble%s of shorta*es or e5 ess

apa it' on ertain utilities and jeopardi6e the su ess of its tenants. 8tilit' shorta*es #ill affe t the produ tion of the tenants #hile e5 ess apa it' #ill ause the park to har*e %ore for shared servi es andalso deplete the resour es of the ountr' unne essaril'. In addition4 #hen de idin* on the utilit' profile of an industrial park4 the %aster plannin* tea% should al#a's onsult the relevant a*en ies4 *overn%ent

bodies4 %uni ipalit' and utilit' providers. Publi private partnerships and private invest%ents should also be onsidered as %eans to provide utilit' servi es.

).8 Finan(in and Inv st/ nt Plannin

"n infrastru ture develop%ent as lar*e and as spread out over ti%e as an Industrial Park #ill re:uire ase:uen ed Finan in* and Invest%ent Plan. The prin iples that appl' to this t'pe of plannin* are asfollo#sD

0on* ter% infrastru ture finan in* is of interest to a narro# ran*e of investors and finan iers. Often thereturns an be lo# hile Industrial Parks are an obvious need in %an' e%er*in* %arkets4 the risk level asso iated #ithfinan in* startup Industrial Parks is hi*h. On e the' are up and runnin*4 risks an subside onsiderabl'.This %akes tiered finan in* the best #a' to *o.

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Industrial Parks in e%er*in* e ono%ies are essentiall' vehi les for Publi Private Partnerships. Thede*ree of private invest%ent into the o%%on infrastru ture


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Pro?ect Preparation ,and +ssem=ly Financinonstruction

,on (ermFinancin

the% se urin* a position in thedevelop%ent

4.(.1 )o* to Secure +inancing %or an Industria 'ark

The ke' to se urin* finan in* is to have a proje t that is pa ka*ed to %eet the *oals of the part' that #ill be investin*. These *oals var' b' institution4 as illustrated in Table belo#.

,ocal or *ationalGovernment

/ulti or i lateralDevelopment Institution

Private Fund

Financial Goals )a5i%i6e finan ial returnsin a %anner onsistent#ith other *oals

)eet the finan ial ter%sasso iated #ith thespe ifi for% of finan e.Re:uire finan ialdis ipline #hile providin*funds at softer rates thano%%er ial sour es.Provide funds underonditions that #ill renderthe re%ainder of the

proje t invest%entfinan iall' feasible for

private investors.

Obtain a returno%%ensurate #ith therisk bein* undertaken.This translates into returnsof 2-G to 2&G in risk'e%er*in* %arkete ono%ies.0ine up other risk sharin*

partners.Se ure a pra ti al e5itstrate*'.$iversifi ation.

-conomic Goals )a5i%i6e e%plo'%entopportunities4 F$I4e ono%i a tivit'4 e5ports4and availabilit' ofinfrastru ture.

I%prove s'ste%s andtransparen ' in theountr'."ssist the 9overn%ent in%eetin* its e ono%i

*oals.

8se this invest%ent as a platfor% for other suitableinvest%ents in the sa%elo ation.

't#er Goals ot to ro#d out privatefinan e.Finan e onl' the ele%entsthat are not o%%er iall'finan able.

ot to ro#d out privatefinan e.I%prove environ%entaland so ial responsibilit' inthe ountr'.

"dvan e orporate So ialResponsibilit' 9oals.

4.(.2 Steps Invo ved in Securing +inancing

Initial Pro?ect Definition and 0copin The basi para%eters of the proje t should be definedDsi6e4 lo ation4 %arket to be addressed4 ost to i%ple%ent4 partners re:uired for i%ple%entation4ti%es ale4 e5pe ted out o%es.

Formation of a common vision a%on*st stakeholders/partners. "ll stakeholders/ partners should be brou*ht on board fro% the initial sta*es of the proje t. These in ludeD

0ando#ner


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Potential investors in o%%on infrastru turePotential users of the Industrial Park

This *roup an for% a (ponsorship 5roup for the proje t. The vision should be en apsulated in ashort do u%ent


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).: Appli(ation !or D si nation and Li( nsin as an Industrial Par"

"n industrial park an be established b' an' person that is *ranted a li ense b' the Industrial Park "uthorit'. "n' le*al person @ a %uni ipalit'4 a joint venture bet#een a %uni ipalit' and a privatedeveloper/operator4 or a private developer/operator #ishin* to establish4 develop4 and operate or %ana*ean industrial park in Serbia %ust sub%it an appli ation to the Industrial Park "uthorit' for revie# andapproval. The Park 0i ense issued b' the Industrial Park "uthorit' onstitutes the ad%inistrative *rant of authorit' that sets out the spe ifi re*ulator' ter%s and onditions *overnin* both the Park and the Park 0i ensee. The issuan e of a Park 0i ense authori6es the Park 0i enseeD


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The Industrial Park "uthorit' is authori6ed to issue a park li ense4 #hen the land4 a tual or proposedinfrastru ture fa ilities4 and a tual or proposed buildin*s and stru tures of the planned park o%pl' #iththe follo#in* essential onditionsD

For ne# develop%ent sitesD


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4.,.( -evocation o% 'ark Licenses

In the event of repeated #illful violations of an' of the provisions of the 0a# or the Re*ulations or theTer%s and onditions b' the park li ensee4 the Industrial Park "uthorit' %a' revoke in #hole or in partthe park li ense after havin* provided the park li ensee #ith four


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2 DE,ELOP-ENT P6ASE

Throu*hout this Toolkit a stron* preferen e has been e5pressed for involvin* the private se tor in thedevelop%ent and operation of Industrial Parks4 #herever possible and #herever %arket onditions allo#.The advanta*es of this approa h have been alread' stated as %a5i%i6in* the i%pa t of publie5penditure4 i%provin* the effi ien ' of develop%ent and operation of the Park4 and leavin* the publise tor free to arr' out its ore role of fa ilitation and re*ulation.

The Feasibilit' Stud' des ribed in Se tion ! of this toolkit #ill have defined the finan ial and %arket para%eters that an be used to %ake the de ision on ho# to develop the Park. The :uestion is #here doesthe border lie bet#een the publi and private invest%ent in the ParkV

Pu=lic Investment Private Investment

ational 7a kboneInfrastru ture

onne tions to ational

Infrastru ture

On siteInfrastru ture

o%%on"d%inistrative

7uildin*s

Individual Investor Fa ilities

W)ini%u% 0evel of Publi Invest%ent

W8suall' Provided b'

Publi Se tor

WStron* $e%and and

>ell $efinedPropert' )arketD

Provided b' PrivateSe tor.

Other#iseD Shared

W8suall' Provided b'

Private Se tor

W)ini%u% 0evel of Private Invest%ent

In e%er*in* %arket e ono%ies the border bet#een Publi and Private Se tor invest%ent #ill usuall' fallso%e#here in the %iddle of the illustration above. If this is the ase4 then the pre ise lo ation of the

border an onl' be deter%ined b' thorou*h %arket onsultation on a spe ifi and #ell des ribedtransa tion that offers private developers/operators ade:uate re#ards for the risk profile of the Park

develop%ent. " si%ple representation of the e5e ution pro ess is illustrated belo#.

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2.1 Id nti!i(ation o! D v lop/ nt Partn rs

On e a de ision is %ade to pursue the PPP route4 it is essential that potential Private Partners areultivated fro% the be*innin* of the pro ess and that onsultation is %aintained until the for%alo%petitive pro ess pre ludes it.

The table belo# indi ates the fun tions and topi s that should be dis ussed #ith potential partners. It is based on the prin iple that the %a5i%u% infor%ation in the %arket #ill help to produ e the best out o%efor the PPP.

Partner Function Partner 0ource (opics for onsultation

$eveloper/Operator E5istin* industr'/lo*isti senters operators.

Shippin* lines #ith0o*isti s Operations.

)i5ed use landdevelopers.Free one Operators.0ar*e %anufa turers #ith

e5 ess land or need for asupplier luster lose b'.

Interest in and kno#led*e of the Serbianinvest%ent environ%ent.

riteria applied to %ake lar*e s aleindustrial real estate invest%ents.

riti al re:uire%ents for su h aninvest%ent in Serbia.E5tent of develop%ent role #illin* to be

undertaken b' the developer/operator.8sual sour es of finan e for su h

develop%ents.Preferred %e hanis%s for re*ulatin* the

develop%ent of the IP>illin*ness to parti ipate in a full and

open pro ure%ent pro ess4 or a li%itedo%petition pro ess.

"ppropriate ti%es ale for the PPPtransa tion.

Finan ial Institution ational $evelop%ent7anks.

)ultilateral donorinvest%ent funds.

E5port redit "*en ies. ational So ial Se urit'

Funds.o%%er ial 7anks.Infrastru ture Funds.)ultilateral Invest%ent

9uarantee "*en ies.

"vailabilit' of funds to finan e IPdevelop%ent.

onditions that #ould atta h to finan e @tenor and interest rates.

eed for soverei*n *uarantees."ppetite for e:uit' and debt parti ipation."vailabilit' of e5port redits and e5port

insuran e.Insuran e re:uire%ents in *eneral.

Professional Servi eFir%s

)ana*e%ent onsultants."r hite t and En*ineersPro*ra% )ana*e%ent

Spe ialists

For% and s ope of re:uired transa tionadvi e.

Feedba k on readiness of the %arket for aPPP approa h

"ppropriate ti%es ale for the pro ess.

Dra*t eport Mar!h %/ &00% 4%


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2.# Laun($ o! t$ PPP pro( ss

The PPP pro ess %ust be announ ed #ith a lear ti%etable. Sti kin* to the ti%etable and providin* lear4o%plete and ti%el' infor%ation are the t#o a tions that #ill boost partner onfiden e and in rease thehan es for su ess. The steps in the PPP pro ess and e5pe ted Ti%in* are sho#n belo#. This indi ates a3 #eek pro ess fro% a positive Feasibilit' Stud' bein* available to losin* the transa tion.

Item (ask (imin A finis# week

1. Internal alidation of PPP strate y :eek &

1.1 alidation of Proposition

1.2 alidation of 7usiness )odel

1.3 onsensus on Transa tion

1.! "pprove Transa tion

2. -7ternal alidation :eek 12.1 Invitation to Pre Test

2.2 )arket Pre Test

3. -7pressions of Interest :eek 1&

3.1 $raft EOI

3.2 Pla e EOI

3.3 Publish EOI

3.! Re eipt of EOI

3.& Evaluation of EOI

3.( onsensus on Short 0ist

". FP Preparation Period :eek 1&

!.1 $raft RFP #ith evaluation %atri5

!.2 "pproval of RFP

!.3 Preparation of Publi ation op'

5. FP (ender Period :eek 2&

&.1 Openin* of Tender Period

&.2 $ata Roo%

&.3 L N " Period

&.! Pre Proposal onferen e

&.& Site isits&.( Sub%ission of 7ids

&. -valuation Period

(.1 "nal'sis of 7ids

(.2 larifi ation of 7ids4 if an'

(.3 onsensus on 7idders

$. +pprovals Process :eek 3

Dra*t eport Mar!h %/ &00% ,0


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Item (ask (imin A finis# week

+.1 "pproval of Rankin*s

+.2 "nnoun e%ent of >inner

%. *e otiation

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Serbia IndZone Toolkit MASTER COPY 2009-03-09 715