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PUBLIC PRIVATE PARTNERSHIP: MUNICIPALITY OF PRIJEPOLJE
Regional Cold Store
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The Municipality of Prijepolje is located in South West Serbia, near the border towards Montenegro, at the crossroad of
main roads M21 and M8, 230 km from Corridor X (highway E75) and 250 km from Belgrade. The municipal territory
of 827 km2 hosts the population of 37,059 citizens. The municipal area and the region have extraordinary comparative
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advantages for the development of fruit production, particularly apples, plums and raspberries, which are said to be the best
in the world. There are currently around 1,200 households growing fruits in Prijepolje, annually producing ca. 1,800 tons
of fruit on 1,500 ha of orchards. In cooperation with the private partner, the Municipality plans to construct a Regional Cold
Store to perform collection, storing and distribution of agricultural goods, in order to improve the cultivation and placement of
berries and other fruits in the regional market.
Project
Prijepolje
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Project ID: Construction of Regional Cold Store
Project realization involves the construction of infrastructure, facilities and purchase
of equipment for the Regional Cold Store with three cooling chambers, one tunnel,
sub-cooling and manipulation lines. The Municipality of Prijepolje plans to realize
the project through public private partnership (PPP) without the elements of
concession. There is an obligation to establish an entity for special purposes, while
the agreement may be concluded for a period from 5 to 50 years.
Documentation
Urban project, preliminary and main detailed project have been developed.
Obligations
Industry
Trade, distribution
Investment form
PPP without elements of concession
Public partner
Municipality of Prijepolje
Investment value
RSD 177.9 million (1.6 million)
Funding structure
Municipality: RSD 72.4 million (EUR 635,100)
Private partners: RSD 105.6 million (EUR 926,300)
Projected financial results
(000 RSD)
Revenues
Expenses
Gross income
2014
269,300
256,467
12,833
2015
401,480
341,101
60,379
2016
401,480
341,101
60,379
The Municipality has provided the land and all required infrastructure - access
roads, water and sewerage lines, electricity, telecommunications.
The private partner should invest funds in the construction of facilities, purchase of
required equipment and manage the cold store operations.
Market
Supply market: during the first year, the Regional Cold Store is planned to collect
and place around 1,800 tons of fruit from the local areas, and 2,600 tons in the
following two years. At It is expected that the cold store services will be used not
only by fruit producers from Prijepolje, but the ones from surrounding municipalities as well.
Placement market: due to product quality, the fruit from this region is already being
easily marketed through familiar buyers, such as Master frigo, Zenit, Es-Komerc,
Zlatar plast, and upon the construction of cold store, it is expected that the number
of buyers will rise.
Dragiša Rakonjac
Head of Department of Economy and Finance
+381 33 711 389
PPP in Serbia supported by
Municipality of Prijepolje
1 Trg bratstva i jedinstva, +381 33 712 297
prijepolje.opstina@gmail.com