INCENTIVE MEASURES

Traže se:

Search

INCENTIVE MEASURES

Acting in accordance with measures of the RS Government and recommendations of the Working Group for drafting a programme of measures to alleviate impact of world economic crisis at the level of the City of Banja Luka, the City Development Agency has proposed a number of programmes, projects and activities in its Plan and Programme proposal.

Having in mind the Programme of measures to alleviate impact of world economic crisis drafted by the Working Group and adopted by the City Assembly, the City Development Agency has drafted its Incentive Measures Plan based on analyses and documents previously adopted by the City Assembly. All the measures have been harmonised with the applicable legal regulations.

Given that not all effects of the crisis, their intensity, direction, and activity progress can be foreseen with certainty, the proposed measures do not have permanent character and are subject to necessary changes depending on the present effects of the crisis. For that purpose, the City Development Agency will continue to monitor the situation progress and take appropriate steps, including the possibility of introducing new measures, increase or decrease in the existing ones, or their cancellation, given the realistic possibilities at the disposal to the City.

Establishing activities of the Guarantee Fund

Activities of the Guarantee Fund as part of the activities of the City Development Agency will be established on the basis of the Law on Creating a Liability, Debts and Guarantees of the RS (Official Gazette of the RS, issue No. 30/07), and the Law on Promoting the Development of Small and Medium-sized Enterprises – consolidated version (Official Gazette of the RS, issue No. 23/09) in order to ensure conditions to promote business operations of small and medium-sized enterprises, and entrepreneurs at the city level. Guarantee portfolio would be intended to cover the risk of commercial banks (by issuing guarantees for their benefit with regard to ensuring part of the loan – 50-70%) on the occasion of approving loans to legal entities, if their projects are profitable, but do not meet some of the requirements set by the banks to be granted the loan. Activities of the Guarantee Fund are intended for facilitating businesspersons’ access to necessary financial assets on the basis of quality development programmes which would be positively evaluated by the Commission (or a Guarantee Board) appointed by the Mayor.

Allocating funds –grants for a business start-up

Following certain criteria, grants are allocated to small and medium-sized enterprises and entrepreneurs for the purpose of purchasing fixed assets, technological business innovation, self-employment and new employments. The project sets separate criteria to rank target groups while using these assets in the amount of KM 3,000 – 5,000.

Education and improvement of small and medium-sized enterprises and entrepreneurs

By conducting trainings with the aim of improving business operations of certain target groups the City Development Agency will:

- Organise trainings for business plan drafting and business start-up,
- Provide expert assistance in drafting business plans,
- Provide assistance in registration process,
- Evaluate and select business initiatives (business plans),
- Organise IT trainings, create websites for new companies,
- Provide consulting services and mentorship in business operations, assist in identifying business partners, organise appearance at fairs, promote entrepreneurs, and the like.

The City Development Agency will consider, in direct contact with Investment and Development Bank of the Republic of Srpska, possibilities of using funds for projects of the City Development Agency (Technological Business Park) which ensure development component, contain elements of saving financial expenditures in the forthcoming period and are on the list of priority projects adopted by the City Assembly.

Establishing a fund for initial business activities and micro-business

due to failure of users to be granted loans in commercial banks. As collateral there would be mortgage on newly-built facilities and newly-purchased equipment which would result in the increase in employment and employment of some workers who were dismissed due to crisis effects, thus avoiding earmarking funds for their social insurance contributions.

Project - Subsidising consulting services for the support to small and medium-sized enterprises in the territory of the City of Banja Luka

Through this project the City Development Agency wishes to subsidise small and medium-sized enterprises for the use of consulting services, thus acting in two directions towards the goal composed of two components:

- Affect the improvement of company’s competitiveness and opening of new work places by using company’s internal reserves or the improvement of managing function, better organisation of production and increase in productivity, improving technological basis, introducing new products, introducing quality standards (ISO/HACCP), efficient planning and implementation of investment projects, spreading to new markets, etc.
- Stimulate growth of local consulting practice in the territory of the City of Banja Luka, thus assisting in establishing a strong and commercially healthy structure for the support to SMEs which will be constantly at disposal of SMEs in this specific field. Target group of this component comprises private-owned consulting companies, free-lance consultants, consultants who are assistants at the University of Banja Luka, professional institutes and other development institutions in the territory of the City.

Subsidies are allocated in 50% / 50% ratio.

Technological Business Park of Banja Luka

The Agency has already undertaken a number of activities pertaining to the implementation and establishing a Technological Business Park of Banja Luka, as a very stimulating project for building entrepreneurial infrastructure, with the aim of attracting foreign investors, developing SMEs, increasing export or the substitution of importation. Integral part of the technological business park will be a free zone, business commercial and stimulating zone, technological and development centre, small business zone and other logistic services necessary for the functioning of the park itself. It is our assessment that there may be 6000-8000 workers employed at the Technological Business Park which will be constructed in stages.

Business incubator

We anticipate the implementation of a Business Incubator for Production Activities Project which has been identified as a promising incentive project in the City Development Strategy where the entrepreneurs-beginners will conduct business under favourable conditions for 1-2 years.

Establishing and developing clusters

Establishing new and developing already existing clusters in industries of importance to the economic development of the City of Banja Luka will be encouraged, especially in the wood processing industry, metal processing industry, food processing industry, etc. In the past, the Agency gave significant support to the establishment of two clusters, in the field of furniture production and solar equipment production. It is necessary to provide significant support in the forthcoming period to further development of the clusters.

Mini plants in rural areas

Mini plants in rural areas project is a pilot project identified in the City Development Strategy based on the recommendations of the Rural Development of the Vrbas Canyon, Manjača Plateau and North-West Banja Luka Study. We consider it extremely important because it represents the beginning of rural industrialisation, thus creating conditions for the development of processing plants, primarily concerning agricultural products (milk, meat, fruit, vegetables) but also other rural areas resources, including tourist potentials. The project comprises activities of identifying entrepreneurs interested in modern trends in food processing, the need to introduce standards, modern design and packaging, and the like.

Incentive funds for subcontractors of the Small Business Centre

By creating prerequisites, including getting the premises and their equipping, conditions have been provided for further activities of the Agency’s Small Business Centre. In the forthcoming period, it is necessary to intensify the capacity building activities concerning this part of the Agency, especially in the area of information awareness, education, design, placement and promotion of small business. This refers particularly to traditional crafts, handicraft, youth and women’s entrepreneurship and enterprises starting their activities.

Support to drafting development project documents of interest for the city

A big shortcoming of development initiatives is the lack of project documents which mainly consist of technical projects, assessment of environment effects, analysis of the state of affairs, feasibility study, and business and marketing plans. All projects in the City Development Strategy, as well as the proposed projects in the Rural Development Study, have been delivered as a project proposal with estimated parameters which are insufficient for their operationalisation. The City Development Agency has proposed activities in establishing priorities in drafting strategic development projects and drafting technical and economic documents for their implementation.

Support to the implementation of development projects of importance for the City

In cases where there exists a project proposal delivered by private investor and other institutions the implementation of which might result in the city development, increase in employment or increase in the city budget, the City Development Agency will submit the project proposal to the City Assembly for a certain form of support to its implementation. Such projects already exist as identified through the Rural Development of South and North Banja Luka Study, as well as through the preparation of other projects of entrepreneurial infrastructure and entrepreneurship development.

Attracting and increasing investments by creating a more favourable business environment

We propose drafting an incentive model primarily through the possibility of exercising the right to use land and infrastructure free of charge, employing over 100 workers (applicable to green-field and brown-field investments within the Technological Business Park and the like).

Intensifying activities concerning potential applying and getting IPA funds

By conducting intensified activities, the Agency is preparing for applying to IPA funds, and in that view there have been agreements on cooperation concluded with many neighbouring development agencies.