BOSNIA AND HERZEGOVINA

1. BOSNIA AND HERZEGOVINA In cooperation with: INVESTMENT OPPORTUNITIES Presented by Alma Šabeta Head of the Investor Support Unit

2. www.fipa.gov.ba A small country with huge potential Population 3.4 million Possibility to export to about 600 mill. people market without customs duties Strategic location The fastest growth of GDP Competitively priced labor force The most stable currency in SEE

3. *FIPA Source: CB BiH, Agency for Statistics of BiH,*FIPA

4. www.fipa.gov.ba • Investment potentials – • Attractive economic sectors • Energy Sector • Agriculture and Food Processing Industry • Infrastructure and Construction Sector

5. www.fipa.gov.ba ENERGY SECTOR • OVERVIEW: • One of the most powerful and prospective sectors in BiH with a long tradition • Actual capacity of all power plants in BiH is app. 4.000 MW (56% in thermal and 46% in hydropower plants) • Presently there are a four distribution Companies, with18 system distribution regions (they serve approximately1.2 million of consumers, distribution losses remain at the 10% level) • Generation and Consumptionof energy mix in 2008(GWh): • COMPETENT AUTHORITIES (C.P.) • The Energy Policy, Laws and Regulations, and Strategy Development - the State Ministry • Production and transmission of EnergyLaws and Regulations - Entity Ministries • Transmission of Electricity and International Trade - the State Electricity Regulatory Commission • Licensing, Tariffs and Technical Conditions - Entities Regulatory Commissions • Transmission and Market Development - A single transmission company • AVAILABILITY OF RE SOURCES • Small-scale hydro power plants (up to 5 MW): • Planned installed power 286 MW • Expected annual generation 963 GWh • Installed power in operation 37,7 MW • Wind – total estimated power is cca 2.000 MW • Solar energy – use potential cca 70,5 GWh • Geothermal energy – potential cca 90.2 MWt • Biomass – firewood and charcoal are currently growing energy source in BiH

6. AGRICULTURE AND FOOD PROCESSING INDUSTRY • OVERVIEW: • Land • ~ 1.2 million ha of arable land: ~100,000 ha of orchards and vineyards; ~ 500,000 ha of improved grazing land; ~ 850,000 ha of mountain pastures • Climate • ~ predominantly moderate continental (Central BiH); ~ predominantly continental (Northern BiH); ~ Sub-Mediterranean (South BiH) • Rural Development • ~ focus of all governmental institutions in BiH; ~ essential to increase the volume of agricultural production, employment opportunities, incomes and living standards of rural population, to improve environmental protection; ~ 81% of the total land area and 61% of the population classified as rural in BiH • Labor • ~ considering the presence of the rural unemployment and the fact that agriculture employs about 15% of the labor force agricultural labor is abundant and cheap; all categories of experienced workforce (engineers, technicians, skilled workers) require in food processing industry are available under competitive prices www.fipa.gov.ba • DEVELOPMENT AND INVESTMENT POTENTIAL SUBSECTORS • Field Crops • Medicinal and Aromatic Herbs • Fruit, Vegetable and Wine Growing • Livestock and Forage Production • e.g. Company Sigma Prom doo Novi Grad, goat raising & breeding farm • Food Processing • e.g. Agropodrinje Gorazde, construction of storage and the installation of primary treatment, conservation and packing of dry fruit, medical herbs, etc.

7. www.fipa.gov.ba INFRASTRUCTURE AND CONSTRUCTION SECTORS BUSINESS CONDITIONS: ~Long standing tradition and reputation, in-country and abroad; ~State-of-the art solutions in architecture and civil engineering; ~Price competitive, qualified work force; ~All elements of construction (design, high quality construction, buildingmaterials) NEEDS: ~Creation of consortiums required for large scale projects; ~Substantial investments needed, generally and in the equipment and machinery. • PROJECTS: • Infrastructure projects • - Construction of highway V-c Corridor Budapest – Sarajevo – Ploče as a part of the EU’s TEN Network (priority) • - The railway reconstruction as a part of Vc Corridor • - Two ports on river Sava – reconstruction and improvement of waterway transport : Brčko and Šamac (connection to Danube) • Projects as per development plans of mayor cities • Building material production projects • Joint-venture projects: • - Business Zone Gračanica– ŠIRBEGOVIĆ Group • - Commercial and Business Centre BELIRA – Energoplan d.o.o. • - Production of Construction Material – MS ŠAMOT-RS,Sokolac

8. www.fipa.gov.ba Favorable Legislation • FDI Law • National treatment of foreign investors • Repatriation of profits • Protection against nationalization, expropriation • or similar measures • Right to freely employ foreign nationals, subject • to the labor and immigration laws in BiH • Trade and export agreements and regimes • Central European Free Trade Agreement • Free Trade Agreement with Turkey • Preferential export regime with EU and others • 39 Agreements on Promotion and Protection of Investment (Greece included) • 32 Agreements on Avoidance of Double Taxation (Greece included)

9. INVEST IN BOSNIA AND HERZEGOVINA YOUR NEW OPPORTUNITY Sarajevo Office Branilaca Sarajeva 21 Phone: ++387 33 278 080 Fax: ++387 33 278 081 E-mail: fipa@fipa.gov.ba Banja Luka Office Ðure Daničića 1/III Phone/ Fax: : ++387 51 226 180 E-mail: banjaluka@fipa.gov.ba In cooperation with: Mostar Office Rade Bitange 30 Phone /Fax: ++387 36 558 815 E-mail: mostar@fipa.gov.ba www.fipa.gov.ba THANK YOU FOR YOUR ATTENTION www.fipa.gov.ba