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PUBLIC PRIVATE PARTNERSHIP: MUNICIPALITY OF TUTIN
Center for Processing Forest
Fruits and Medicinal Plants
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The Municipality of Tutin is situated in the South West Serbia, in close proximity to the border with Montenegro, next to main
roads M2 and M22, 190 km 75om Corridor X (highway E75). The municipality has 32,191 citizens and the area of 741
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km2. Tutin is among the highest-altitude municipalities in Serbia (more than 1,000 meters) and there is not one single polluter
within the diameter of 100 km, which makes it a very favorable environment for growing forest fruits, medicinal plants and tea
herbs. There is currently no organized/planned purchase and production of final products based on these resources, but it is
performed by individual buyers. In cooperation with private partner, the local government plans to establish the first Center for
collection, purchase and processing of forest fruits and medicinal plants in this region.
Project
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Tutin
Project ID: Center for Collecting, Purchasing and Processing of Forest Fruits and Medicinal Plants
The Center for collection, purchase and processing of medicinal plants and forest
fruits aims to employ the local population and improve the production and market
placement of these abundant resources. The municipality plans to realize the project
as public private partnership (PPP) without elements of concession. There is an
obligation of establishing an entity for special purpose, the agreement is concluded
for a period from 5 to 50 years.
Documentation
The relevant documentation has not been developed.
Obligations
The Municipality shall provide the land with a location permit and purchase
locations in five local centers, in cooperation with Agriculture cooperative of
Tutin. The private partner shall invest in facilities (warehouse, cold store, processing
and packaging area, drying facilities and office space, as well as the purchase points
in local centers at the existing green markets), required equipment (packaging
machines, grinder, tunnel kiln, calibration machines) and manage Center operations.
Industry
Food industry, trade
Investment form
PPP without elements of concession
Public partner
Municipality of Tutin, Department for Businesses
and Local Economic Development
Investment value
RSD 30 million (EUR 263,200)
Funding structure
Municipality: RSD 5 million (EUR 43,900)
Private partners: RSD 25 million (EUR 219,300)
Projected financial results
(000 RSD)
Revenues
Expenses
Gross income
2014
22,200
19,713
2,487
2015
43,275
38,427
4,848
2016
68,200
60,559
7,641
Market
Supply market: at the moment, there is approximately 33 tons of forest fruits and
medicinal plants collected annually in the municipality of Tutin, and it is estimated
that appropriate incentives would increase these amounts three times within two
or three years.
Placement market: the final products will be marketed to familiar buyers (Pharmacy
institution Belgrade, Melisa Novi Sad), and health food stores from the region.
PPP in Serbia supported by
Šemsudin Kučević
Mayor of Tutin
kabinet@tutin.rs
Mersudin Elesković
Department for Businesses and LED
mersudin.eleskovic@tutin.rs
Municipality of Tutin
7 Husein-bega Gradaščevića street, +381 20 811 111, +381 20 811 035 (fax)
kabinet@tutin.rs, www.tutin.rs