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Dajana Topic, Eurofast Global |
Under article 14 paragraph 3 Law of the Republika Srpska (RS) budget execution for 2012 ( Official Gazette of the RS, No. 3/12) and the regulation on conditions and implementation of programmes to support investment and employment (Official Gazette of the RS No. 70/12), Ministry of Finance of the RS published a public notice "grant funding for implementation programmes to support investment and employment". Subject to the public notice is the registration of investment projects in the manufacturing sector (new investments in fixed assets), which provides for the hiring of new employees, in the territory of the RS.
These funds shall be provided from the budget of the RS. Investment projects in the field of hospitality and commerce cannot be granted funds. The beneficiary is the investor who has gained the funds in accordance with the regulation.
The total amount of funds that can be allocated is dependent on the fulfillment of these criteria:
The number of new hires;
References list of the investor;
The share of domestic suppliers;
The durability of investments;
The new technology and portability of knowledge and skills to domestic suppliers;
The economic impact of the investment project;
A letter of support or letter of intentions of the municipality or city, which provide incentives and benefits to the applicant in accordance with the regulations of the Republic of Srpska in areas which the investor intends to invest.
Stipulated by the decree, the investment in the manufacturing sector should have a minimum value of KM2 million ($1.3 million) and employ at least 20 workers, for which the funding for each employee shall amount to:
in the territory of developed and middle-income local government of the RS in the amount of KM3,500; and
in the territory of undeveloped and extremely underdeveloped local government of the RS in the amount of KM5,000.
For investment projects with a value of more than KM25 million providing employment for at least 100 new employees, regardless of the level of development of local government in which the investment is made, the funds shall be provided in the amount of 15% of the total investment. Total investments include investments in land, buildings, plant and equipment other than the vehicles.
Grants are awarded subject to various conditions which are also specified in this public notice.
Dajana Topic (dajana.topic@eurofast.eu)
Eurofast Global, Banja Luka Office /B&H
Tel: +387 51 340 680
Website: www.eurofast.eu
