FIPA Activities

Italians are preparing an investment worth around 150 million EUR in BiH

6/21/2016

The Director of the Foreign Investments Promotion Agency of BiH (FIPA) Gordan Milinić and his associates talked with Zdravko Aćimović, Director of Alfa Invest - a partner of the Italian company Pyrox, Turin, for South Eastern Europe, about the planned investments of Pyrox in the amount of about 150 million EUR in the co-generation projects on wood biomass in BiH.

This investment will include 20 underdeveloped municipalities in FBiH and 20 municipalities in RS which dispose of wood waste.

Italian Pyrox has its own technology for the production of electricity and thermal energy on the basis of solid biomass, which can be used to heat homes, greenhouses, and other facilities.

Installing and starting-up of one plant would employ 25 workers, and according to the business plan, each municipality that participates in this project, would have an annual revenue of one million EUR from the sale of electricity and thermal energy.

In addition to the own investors' funds, the project is financially supported by Uni Credit Bank of Italy, and Investment Fund of Ireland. Municipalities would participate in financing of the investment in the amount of 10% to 15%. Except that for this figure, there is a possibility for additional arrangement.

Considering that it is about renewable energy projects, there is additional possibility to withdraw finance from the European funds for this purpose.

It was agreed to organize in mid-July 2016 a meeting between investors and mayors and heads of commercial departments of 40 municipalities where it would be presented opportunities offered by investor, as well as possibilities of municipalities when it comes to potential of the waste from biomass, manners f implementation of the investment, and obligations of both parties.

FIPA will coordinate the organization of the meeting and will provide the necessary services both to investors and municipalities with the aim to contribute to a faster realization of the investment.

Testimonials & Success Stories
 

Global Investment Promotion Best Practices 2012 of the World Bank has cited one example of support that FIPA provides to foreign investors who are running business in Bosnia and Herzegovina in order to contribute to increase the flow of foreign capital in the country.

The article said:  

„The Foreign Investment Promotion Agency (FIPA) of Bosnia and Herzegovina was an early convert to the idea of providing facilitation services to agribusiness investors as a way to maximize the positive impact of agriculture on the economy.

In 2007, for example, FIPA assisted a Dutch food processing company establish a US$1.6 million production facility to process unused milk ingredients into value-added products in Sarajevo to sell to markets in Eastern Europe and the Middle East.

As part of its aftercare program, FIPA assisted the company with its expansion plans. Among other things, the agency helped facilitate veterinary permissions, navigate various bureaucratic hurdles and played an important role in securing funding for the company’s expansion. It also helped develop a network of local suppliers and customers. As a result of these efforts, the Dutch investor developed stronger links with the Bosnian economy, thus increasing the positive spillover effects on the local economy.

Currently a new investment to establish a drying facility for milk powder is under way. This will further expand the processing facilities of unused milk ingredients. This additional planned investment is worth approximately US$2.8 million, thus nearly trebling the company’s original investment in the country“.

 

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