Novi Grad Municipality Novi Grad

Bosnia and Herzegovina

SPA-RECREATIONAL CENTER“Lješljani”

Novi Grad, 23 February 2015.

LOCATION:Bosnia and Herzegovina, Republic of SrpskaNovi Grad municipality, Local community Devetaci

Basic location information:

Thermo-mineral water characterisitcs:

Altitude 211 – 461 m BRC zone surface 595.93 ha Adopted regulatory plan for special area ,,Spa Lješljani” Preserved nature 2 natural wells of thermo-mineral water Power supply network, 20/0.4 kV 50 kA

Temperature 31°- 33° Methan sodium - chloride hydroxide hypothermal

hyperaalkaline mineral water Wide range of use for various conditions and injuries Physical-chemical analyses of water carried in several

scientific-research institutes High alkalinity and mineralization of water Ideal in use for metabolism and digestive system diseases

and conditions, urinal and gynecological system, rheumatic and neural conditions, postoperational and posttraumatic conditions

Best results are in use for dermal diseases and conditions

• Construction of SRC ,,Lješljani” is defined as one of the most important municipal development projects

• There is no current developed and organized offer• Concept is based on year-round offer: health-recreational

services, business/congress tourism, sport-recreational contents, accommodation and gastronomy, eco-ethno tourism, special interests (rafting, hunting, fishing), accompanying contents (shops, souvenirs, boutiques, craft shops).

• Feasibility study defines construction of acommofation units (363 beds), health, welness and spa contents, sport infrastructure and catering infrastructure.

Feasibility study for construction of Spa-recreational center ..Lješljani“

Regulatory plan of special area ,,Spa Lješljani” • The Spatial plan of Republic of Srpska has defined area of Spa

Lješljani as area of a special purpose• Regulated area has surface of 31 ha• Regulatory plan is valid for period 2009 – 2019• Construction zone defined by Plan has surface of 15.560 m2• Approximate costs of arrengement of building land are 716.469

EUR

Costs Profitability

• Preoperational phase (non material investments, property-legal relations, buying of land): € 576.663

• I construction phase (construction and equipping of central building and indoor swimming pool, providing and preparation of labor force, SRC marketing plan implementation): € 5.744.060

• II construction phase (construction and equipping of Wellness hotel, providing and preparation of labor force, SRC marketing plan implementation): € 5.386.511

• III construction phase (construction and equipping of bungalows, providing and preparation of labor force, SRC marketing plan implementation): € 757.611

• TOTAL INVESTMENTS: € 12.464.815

• in the first ten years total revenues would have amounted 47,5 million €

• in the following ten years destination would generate additional 58,8 million €

• the largest revenue in the projected period destination would realize from Wellness hotel, around 56%, the Central building would take share of around 37% in the total revenues.

• Bungalows would bring an additional 6% of revenue• the share of swimming pool is estimated at less than

1%• the Project is solvent at all stages of its operations• Static indicators of financial analysis are satisfactory

in the Project's sixth year• the net present value is positive for each discount

rate that is <9.5%• for the selected discount rate of 9% it amounts 1,07

million KM• the simple payback period is 11 years, and the

internal rate of return is 9.5%.

Owner/Developer:

Novi Grad Municipality Novi Grad, Bosnia and Herzegovinae-mail: projekti@opstina-novigrad.com tel: 00387 52 751 247www.opstina-novigrad.com

Contacts: Developer’s costs and fee: Preparatory phase (non material

investments, property-legal relations, land purchasing) - 4,6% of overal investment costs

Investor: Construction phases (I, II and III) – 95,4 % of overal investment costs

Financing