A guide for entrepreneurs

With a strong and dynamic economy one step away from the EU market, the City of Ljubuški is building a reputation as one of the most attractive locations for investment in the southern part of Bosnia and Herzegovina.

Why invest in Ljubuski?

Dear investors,

It is my pleasure to present to you the investment brochure with all the benefits of investing into the City of Ljubuški.

The City of Ljubuški has recognised the importance of creating a positive
business environment as one of the fundamental prerequisites for attracting investments. The investors in our City have access to excellent business conditions crucial for the provision of services and the development of products competitive in both domestic and international markets.

Our dedication to this goal has already been acknowledged by numerous domestic and foreign investors who have been conducting successful business in our City for many years now.

It is our goal to provide each investor with continuous care. I would, therefore,
like to invite you to come to us with full trust, and together we will make your
investment project an even bigger success.

Vedran Markotić

Ljubuški City Mayor

MAIN BENEFITS OF INVESTING IN THE CITY OF LJUBUŠKI:

– Extremely favourable geographical and traffic location
– Vicinity of two important European corridors (Corridor Vc and Adriatic-Ionic)
– Vicinity of the Port Ploče (possibility of 60.000+ TEU annually)
– Vicinity of the EU market with a population of 500 million
– Quick access to markets with affordable transport costs
– Vicinity of the University of Mostar (technical and ICT faculties)
– Favourable business environment for entrepreneurship
– Well-trained labour force with competitive pricing
– Competitive business costs
– Attractive investment locations
– Continuous support of the City of Ljubuški for the investors
– Vicinity of Međugorje (13 km)
– Quality of life

Where is Ljubuški?

The City of Ljubuški is situated in the southwest part of Bosnia and Herzegovina (BiH) in the West Herzegovina County pertaining to the Federation of Bosnia and Herzegovina at the very border of Bosnia and Herzegovina and the Republic of Croatia (European Union). Good quality transport infrastructure gives access to global markets straight from the City of Ljubuški.

INTERNATIONAL ROAD TRAFFIC

The vicinity of the A1 Motorway (Bijača 12km; Vrgorac 19km) running through Croatia, part of the Pan-European Corridor Vb (connecting the north and south of Europe with Croatian ports) and the future Pan-European Corridor Vc (connecting Central Europe with the Adriatic Sea) provides the investors with a fast access to regional, European and other markets.

INTERNATIONAL AIR TRAFFIC

The City of Ljubuški is connected to regional, European and world markets by air traffic through international airports in Split (140 km), Dubrovnik (161 km), Sarajevo (161 km), and Zagreb (507 km).

INTERNATIONAL RAIL TRAFFIC

The investors have the opportunity to access rail cargo traffic via railway station in Čapljina (17 km) as well as regional, European and other markets via Railtrack 11 from the City of Ljubuški (Sarajevo – Čapljina – port Ploče (CRO)), which is connected to all other parts of BiH, the neighbouring countries and further through the railway track in Sarajevo.

INTERNATIONAL PORTS

The City of Ljubuški is connected with regional, European and world markets by sea and river transport through international seaports in Ploče (28 km) and Split (128 km), and international river port of Brčko (333 km).

INTERNATIONAL BORDER CROSSINGS

Border crossings with the Republic of Croatia

Border crossing Bijača (Ljubuški) – Nova Sela (CRO) / 14 km

Category I border crossing for international road transport – one of two Schengen crossings in BiH (passengers and goods that in line with the contracting parties’ legislation is subject to inspection controls of transport through the joint state border).

Border crossing Zvirići (Ljubuški) – Prud (CRO) / 16 km

Category III border crossing for passenger transport: only people and passenger luggage.

Border crossing Crveni Grm (Ljubuški) – Mali Prolog (CRO) / 9 km

Category III border crossing for passenger transport: only people and passenger luggage.

Border crossing Orahovlje (Ljubuški) – Orah (CRO) / 14 km

Category III border crossing for passenger transport: only people and passenger luggage.

Border crossings with Montenegro

Border crossing Klobuk (BiH) – Ilino Brdo (MNE) / 149 km

Category I border crossing for international road, goods and passenger transport.

 

City of Ljubuški – General Information

Surface (in km2) 292,7 km2
Centre Ljubuški (33 settlements in total)
Population 28,184 (census from 2013)
Population 27,631 (latest estimates on 31.08.2017.)
Terrain Karstic terrain with arable fields
Climate Moderate Mediterranean climate
Altitude 100-300 m
Time zone GMT +1
Currency BAM (1€ =1.95583 BAM)
Budget (€) 4.984.584,55 €
Unemployment rate (%) 35%
Employed population 5.121
Unemployed population 2.752
Average gross salary (€) 611 €
Average net salary (€) 440,22 €
Profit tax (%) 10%
Value added tax (%) 17%
Income tax (%) 10%

Economic Profile of the City of Ljubuški

The business sector is the leader of economic development in the City of Ljubuški. The economy is based on micro and small enterprises, medium enterprises and numerous trades. The total number of economic subjects and entrepreneurs is 933. The City of Ljubuški is in the 19th place in the Federation of BiH on the Development Index, with continued growth. Economic activities in Ljubuški are mainly in relation to the following sectors: wholesale, retail and services (insurance); construction (including stone processing): agriculture and food industry; production (metal industry) and transport and logistics sector (storage).

Resources of the City of Ljubuški

HUMAN RESOURCES

The investors have at their disposal various labour force profiles with professional and technical qualifications. The Secondary School Centre in Ljubuški provides education for general, expert and craft professions. The City of Ljubuški offers all assistance in the organisation of professional training and prequalification in line with the investors’ needs. Students from the City of Ljubuški are attending universities across BiH and the Republic of Croatia.

COMPETITIVE COSTS OF LABOUR

The City of Ljubuški, as an investment destination, boasts competitive gross salaries compared with other neighbouring countries (611 EUR in 2018). The labour market offers young and qualified labour force of technical, Average gross salary in 2018 (in EUR) expert and general profile (engineers, mechatronics technicians, agricultural and tourist technicians, medical technicians, economists, car mechanics, plumber, chefs and waiters).

The City of Ljubuški carries a tradition of agriculture (growing fruit, grapes, olives and beekeeping), processing industry (metal), civil engineering, services (hospitality and wholesale and retail). In terms of employment, the largest companies in the City of Ljubuški are from the sector of civil engineering and service, i.e., commercial activity.

Proof of keeping with the trends is that the students are studying for professions that are in demand on the market. Thirtyfour students have enrolled in 4-year studies for mechatronics technicians and have been approved enrolment in a fouryear study of woodworking and threeyear study of carpentry at the Middle Vocational School in Ljubuški.

AGRICULTURAL RESOURCES

In the City of Ljubuški the investors have at their disposal approximately 12,554 ha of arable land. Clean air, unpolluted soil and favourable climatic conditions of moderate Mediterranean climate are beneficial for investing in agricultural production and food sector. Especially important is the agricultural early potato produce (cultivated on 22 ha surface with expansion tendency) branded in the market as “Early Ljubuški Potato”. The investment in the second phase is currently ongoing which would provide the packaging and sorting facility and early potatoes cooling. This production is export oriented and business expectations are focused on increased export since in 2015 the EU opened its market for this BiH product.

POTENTIAL INVESTMENT SECTORS

Tourist Sector

The City of Ljubuški is in the vicinity of the Adriatic Sea, at the very entrance from Croatia to Bosnia and Herzegovina. The wonderful landscape covered in low vegetation typical of karstic areas, mild Mediterranean climate, the River Trebižat, numerous natural wonders (the Kravica and Koćuša waterfalls, the Vrioštica and Kajtazovina springs), cultural heritage (Herceg Stjepan-Kosača fort, roman military camp Gračine, tombstone necropolis Dilić (UNESCO), Humac Museum), traditional food and cultural events make Ljubuški an attractive tourist destination ideal for nature, rural, cultural, fishing and religious tourism. Tourist centres such as Međugorje, Mostar, Dubrovnik and Split give it the possibility to further advance its transit and excursion tourism.

Potential investment projects include the advancement and the construction of accommodation and hospitality structures and various leisure and service facilities. The landscape and the biodiversity of the area portrayed in a high number of plant and animal species give an opportunity to further develop educational, tourist-leisure and service activities.

Logistics Sector

The central role in the logistics sector development belongs to the excellent geographical and traffic position of the Business Zone “Zvirići” and the vicinity of the port Ploče (15 km). The Business Zone “Zvirići” is located next to the European Corridor Vc (north-south) and the Adriatic-Ionic road (west-east). It is also close to the border crossings with Croatia: border crossing Bijača (which became one of two Schengen crossings in BiH when Croatia joined the EU) and border crossing “Crveni Grm”. The Port Ploče (capacity +60,000 TEU) is an excellent transport connection and a unique geostrategic position at the intersection of important industrial roads which makes it an indispensable link between the Adriatic, Mediterranean and Central Europe.

There are many opportunities for the development and realisation of investment projects in the logistics sector, especially in the construction of logistical-distributive centres in the Business Zone “Zvirići”, Ljubuški, and for investment in the project of intermodal hub that would consist of container and cargo terminals, storage spaces and logistics centre.

Agriculture and Food Sector

The City of Ljubuški has over 6,000 ha of arable land at disposal. Clean environment, unpolluted soil and good moderate Mediterranean climate are ideal for investing in agriculture and food sector.

Opportunity for greenfield investments in storage spaces for fruit and vegetables with a sorting and packaging line in the Business Zone “Zvirići”. Vegetables are mainly, potatoes, tomatoes, cabbages, onions, garlic and watermelon. There is an opportunity of investing in vineries (original sorts blatina and žilavka) and facilities for eco food production.

Entrepreneurship Sector

Business incubator of the West Herzegovina County – HIPod in the business zone “Zvirići” has all the necessary requirements for start-ups, micro and small companies. The users have access to co-working premises with 9 work posts (35.17m2), 7 office spaces for entrepreneurs-beginners; storage/production hall (75 m2); multifunctional hall (151.44 m2) and common and technical rooms.

Using co-working premises, establishing start-ups, location for innovative micro and small companies, especially related to high tech.

Attractive Investment Locations

GREENFIELD SITE BUSINESS ZONE „ZVIRIĆI“ LJUBUŠKI

 

 

BASIC INFORMATION ON THE ZONE  
Ownership structure City ownership
Zone surface (ha) 174 ha
Number of plots 29
Zone purpose Zone A – production and service; zone B – service; zone C- business and storage.
Permitted business
activities in the zone
SME and crafts development
Zone investment
preparedness
Yes
TRAFFIC
CONNECTIONS
DISTANCE (in km)
Access road Main road M6.3 (0 km)
Motorway A1 (3 km)
Railway (industrial rail
track)
Čapljina (15 km)
Airport Mostar (35 km)
Seaport Luka Ploče (15 km); Luka Dubrovnik (100 km)
River port Luka Brčko (333 km)
INFRASTRUCTURE AVAILABILITY OF
INFRASTRUCTURE /
SERVICES
Water Yes
Sewers No
Power supply Yes
Gas No
Telecommunication
network
Yes
OTHER ZONE INFORMATION  
Number of enterprises 4
Enterprises n/a
Number of employed n/a
Local incentives for
investors
Yes
Type of incentive Land price subsidy
Plots available for sale Available for sale 19 plots
Price/m2 6 EUR/m2
Plot size (min/max) 4.000 m2 – 57.000 m2
Permitted construction
coefficient
0,30
Maximum permitted umber of levels /stories P+2
Permitted construction
height (m)
12 m
Minimum distance from
the neighbouring plot
H1/2+H2/2
Plot development Min 30% of plots are
green areas
Maximum permitted
fence/hedge height
max 2,5 m – nont-ransparent fence foot up to 0.5 m
Minimum number of park places max 50% of the construction plot surface
Access road width 5,5 m
Water cost (BAM/m3) n/a
Contact tel. +387 39 835-528
GREENFIELD SITE BUSINESS ZONE „MOSTARSKA VRATA“ LJUBUŠKI

Business zone “Mostarska vrata” is located along the regional Ljubuški-Čitluk road and is 4 km away from the intersection Zvirići on the Corridor Vc. The business zone surface if 84 ha with room for expansion. This business zone currently holds 19 companies and it employs 303 persons. The use of the zone so far

 

BASIC INFORMATION ON THE ZONE  
Ownership structure City ownership
Zone surface (ha) 84 ha
Number of plots 86
Zone purpose Production-service / Logistics-distribution
Permitted business activities in the zone Entrepreneurial-crafts
Zone investment preparedness Yes
TRAFFIC CONNECTIONS DISTANCE (in km)
Access road Next to the regional road Ljubuški-Čitluk
Motorway A1 (RH); Corridor Vc; Border crossing Bijača 4km
Railway (industrial rail track) Čapljina (18 km)
Airport Mostar (33 km); Split (123 km); Sarajevo (166 km).
Seaport Port Ploče (31 km); Port Split (133 km)
River port Port Brčko (333 km)
INFRASTRUCTURE AVAILABILITY OF INFRASTRUCTURE / SERVICES
Water Yes
Sewers Yes
Power supply Yes
Gas No
Telecommunication network Yes
OTHER ZONE INFORMATION  
Number of enterprises 19
Number of employed 303
Local incentives for investors n/a
Type of incentive n/a
   
Plots available for sale 41 plots
Price/m2 3-6 EUR/m2
Plot size (min/max) 5.000 m2 – 40.000 m2
Permitted construction coefficient 0,30
Maximum permitted
number of levels /stories
P+2
Permitted construction
height (m)
12 m
Minimum distance from
the neighbouring plot
6 m
Plot development Min 15% of plots are green areas
Maximum permitted fence/hedge height max 2,5 m
Minimum number of park
places
n/a
Access road width 5,5 m
Water cost (BAM/m3) n/a
Contact tel. +387 39 835-543

Frequently asked questions and answers

How can I buy a building plot from the City of Ljubuški?

It is necessary to submit a written request for the purchase of undeveloped construction land (application form in the counter hall) and enclose the copy of the cadastral plan for the requested land. After the competent service has carried out all the legal procedure, the mayor announces a public tender for the sale of real estate owned by the City of Ljubuški through an auction.

How long is a location permit valid?

Location permit is valid for one year from the day of its validity, and within which period the application for a building permit must be submitted.

When can I start building my facility?

The investor can start performing the works after the building permit becomes valid.

What are the costs of doing business in BiH?

The national treatment of foreign investors in BiH and an extremely favorable tax environment – a VAT rate of 17% and a profit and income tax of 10% are among the lowest in the region and Europe.

What are the prices of utility services for economic entities?

Water

 

From 0-15m3 price 1.21m KM
From 15-30m3 price 1.31 KM
Over 30m3 price 1.45 KM

Sewage 0.30 KM per m3
Electricity The amount of electricity tariffs is not fixed, but is determined according to different qualifications.
Waste removal

From 18-77 Euros

Telecommunication services

Fixed phone

Price list J.P. HT Mostar d.d.

http://www.hteronet.ba/poslovni-korisnici/fiksna-telefonija/paketi-telefoninternet/

Mobile phone

 

Price list of J.P. HT Mostar d.d.

http://www.hteronet.ba/poslovni-korisnici/mobilna-telefonija/biznis-tarife/

Broadband internet

Price list of J.P. HT Mostar d.d.

http://www.hteronet.ba/poslovni-korisnici/internet/adsl-internet/cjenik/

*Prices are without VAT

Didn’t find the information you were looking for? Contact us!

Contact information

Grad Ljubuški
Trg dr. Franje Tuđmana 1
88320 Ljubuški
Bosna i Hercegovina

Contact point:
Andrea Ćorić,
Expert Advisor for development projects

Tel: +387 39 835 502
Fax: +387 39 833 810
E-mail: [email protected]
Web: www.ljubuski.ba