Study of Options for Long-Term Outsourcing of Sutjeska National...

Study of Options for Long-Term Outsourcing of Sutjeska National Park Assets and Services Draft Report Client: United Nations Development Programme 20 March 2018

Study of Options for Long-Term Outsourcing of Sutjeska National Park Assets and Services DRAFT

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Contents

1 Summary 3

2 Introduction – purpose and goals of the Study 4

3 Overview of current National Park Sutjeska assets/inventory 11

4 Recommended assets and services to be subject of the long-term outsourcing 13

5 Economic analysis of the assets and services recommended to be subject of the long-term outsourcing 35

6 Road map – key steps and procedures recommended to be followed in the process of outsourcing the assets

and services of the NP Sutjeska 75

7 Conclusion and final recommendations 77

8 Assumptions and Limiting Conditions 78

9 Appendix I – Terms and Definitions 80

10 Appendix II – Detailed technical Description of NP Sutjeska’s Assets 81

11 Appendix III- Profitability under different scenarios 166

12 Appendix IV- Market Value of assets suggested for outsourcing 211


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1 Summary

Nacionalni Park Sutjeska (“NP Sutjeska” or “the Park”) is one of the most important natural

reserves in the Balkans Peninsula. It was founded in 1962, due to its natural and cultural

importance, as the Park encompasses the area where the Battle of Sutjeska took place in World

War II. Most important construction in the Park took place during the former Yugoslavia period.

Currently, NP Sutjeska s a public institution, financed from the budget of the Republic of Srpska.

After the war in Bosnia and Herzegovina in 1990s, due to financial constraints, the Park’s infrastructure has gradually started to deteriorate. Efforts led by the World Bank (2002) and by

UNDP (2012) have identified the possibility for long-term outsourcing of some of the Park’s assets to a private partner. The main premise of outsourcing is that the financial burden which is

currently on the budget of the Republic of Srpska could potentially be reduced.

Therefore, United Nations Development Programme (“UNDP” or “the Client”) engaged Deloitte

d.o.o. Belgrade(“Deloitte”), ENOVA Engineering and Consulting Company d.o.o. Sarajevo

(“Enova”) and Advokatska kancelarija Stevan Dimitrijevic (“AK Dimitrijevic”), acting jointly as a

consortium (“the Consortium”, “Consultants” or “we”) to prepare a study named “Study of

Options for Long-Term Outsourcing of Sutjeska National Park Assets and Services“ (“the Study“ or “Outsourcing Study”).

During the course of the preparation of the Study, the Consultants have examined both the legal

and the economical aspects of potential long-term outsourcing of assets currently managed by

NP Sutjeska.

From the legal perspective, we have explored both the Public-Private Partnership (“PPP”) and the concession as potential models of cooperation with a third party. Our analysis resulted in

concession being a favourable model for long-term outsourcing. The main reason for such a

conclusion is that assets that should be the target of long-term outsourcing are of a commercial

nature. As such, it would be difficult to prove that thereis public interest for this project.

From the economic perspective, we the consultants have carried out a wide range of analyis:

the appraisal of market value of assets that could be the subject of long-term outsourcing;

the appraisal of investment necessary to refurbish assets that could be the subject of

long-term outsourcing;

assessment of profitability of the project from the perspective of an average investor using

most common profitability metrics (NPV, IRR); and

assessment of benefits and losses to NP Sutjeska and to the Government of the Republic

of Srpska should assets be outsourced.

Total investment necessary to refurbish the aforementioned assets is 6.8 mBAM. The project is

positive from the perspective of a potential private investor, with positive IRR of 16% and

positive NPVof 3,562 mBAM at the discount rate of 10.20% under the base case scenario.


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2 Introduction – purpose and goals of the Study

2.1 Legal status of NP Sutjeska

General status of national parks in Republic of Srpska is regulated by the Law on National parks

(„Official Gazette of RS“ No. 75/10). It states that national parks and natural values, natural resources and works of created value, including cultural and historical monuments are the

property of the Republic of Srpska and as goods of general interest enjoy special care and

protection.

National parks are managed by public institutions. The public institution manages the natural and

cultural-historical values, land, buildings and other immovable property owned by the Republic of

Srpska, transferred to management and used in accordance with the law prescribed by the public

service system regulations and planning documents. Public institutions are established by the

Republic of Srpska.

National park „Sutjeska“ was constituted by Law on National park „Sutjeska“ („Official Gazette of RS“, No. 121/12, „Sutjeska Law“). Sutjeska Law regulates the boundaries, protection regimes,

management, protection and development issues of Sutjeska.

Sutjeska extends to the municipalities of Foča, Gacko and Kalinovik in the total area of 16,052.34 hectares. Sutjeska is managed by Javna ustanova Nacionalni Park „Sutjeska“ Tjentište („JUNP“) in accordance with the decision regulating the change of the form of the organization of the

Public Enterprise National Park "Sutjeska" to a public institution, adopted by the Government of

Republic of Srpska on 3 February 2011. The founder of JUNP is the Government of Republic of

Srpska. JUNP manages the natural and cultural-historical values, land, buildings and other

immovable property of NP Sutjeska.

JUNP share capital is BAM 29,729,796.00 (approx. EUR 15,000,000) and it is funded by Republic

of Srpska budget and by its own income.

The management, protection and development of Sutjeska is based on the National Park

Management Plan („Management Plan“), adopted by the Government of the Republic of Srpska, on the proposal of the JUNP.

JUNP has the following managing authorities:

Management board and

Director.

Management board and director are appointed by the Government of RS at the proposal of

ministry in charge of the environmental protection, for a four-year period.

The Management board is entitled to:

adopt the JUNP Statute;

decide on JUNP business activities;

review and adopt business reports and annual accounts;

decide on use of funds;

adopt the annual program of protection and operation of the JUNP at the proposal of the

director;

perform other activities.

The director manages JUNP and is an authorized representative of JUNP.


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2.2 Financial situation of NP Sutjeska

Until 2015, NP Sutjeska’saccounting system was subject to IFRS and local accounting standards applicable to business entities. In 2015, NP Sutjeska has switched to the accounting system for

organisations funded from the budget of the Government of RS.Therefore, the analysis presented

below is based on financial statements for 2015 and 2016.

2.2.1 Income statement

In 2016, NP Sutjeska has generated revenues in the total amount of 3.97 mBAM, which is an

increase of 16% when compared to 2015.

More than 29% of total revenues generated in 2016 were revenues from budget of Government

of RS. Furthermore, 24% of total revenues were from logging while 9% of revenues were

generated from hospitality, tourism and trade. When compared to the previous year, the share of

these revenues in total revenues did not change significantly.

Figure 1: Share of revenues in 2015

Figure 2: Share of revenues in 2016

21%

10%

2%

34%

30%

3%

Revenues in 2015

Revenues from logging Revenues from hospitality, tourism and trade

Revenues from hunting and fishing Revenues from budget of Government of RS

Reveneus from non-financial assets Other revenues

24%

9%

2%

29%

33%

3%

Revenues in 2016

Revenues from logging Revenues from hospitality, tourism and trade

Revenues from hunting and fishing Revenues from budget of Government of RS

Reveneus from non-financial assets Other revenues


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Total expenditures of NP Sutjeska in 2016 have decreased by2% when compared to 2015. The

most important expenditures in 2016 relate to business operations (53% of total

expenditures)expenditures of accounting period (34% of total expenditures), and expenditures

from non-financial assets (11% of total expenditures).

Business operation expenditures include salaries and wages, goods and services used and

financial expenditures. Out of total business operation expenditures, 60% representsalaries and

wages. Salary and wage expenditures have decreased byabout 40 kBAM in2016, compared to

2015. About 38%of total business operation consist expenditures represent goods and

servicesexpenditures, which include maintenance expenditures, transportation expenditures and

utilities. Expenditures from business operations in 2016 have decreased by 0.3% comparing to

2015.

Expenditures of accounting period include: amortization, purchasing value of goods in reserves

and other expenses. Amortization expense in 2016 was lower by 1.5% compared to 2015, while

expense of goods and services used were higher by 9.3% for the same period of time.

Expenditures from non-financial assets include: expenditure from the produced goods, materials

reserves and value added taxes expenditure.Expenditures from non-financial assets in 2016 have

increased for 26% comparing to 2015.

Figure 3: Share of expenditures in 2015

34%

19%1%

33%

3%2%1%

5% 2%

Expenditures 2015

Salaries and wages Goods and services used expense

Financial expenses Amortization expense

Purchasing value of goods in reserve Other expenses

Expenditures for produced goods Value added taxes

Materials reserves expenditure


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Figure 4: Share of expenditures in 2016

Operationalexpenditures of NP Sutjeska in 2015 and 2016 are higher than operational revenues,

meaning that in the long run, operational revenues together with the revenues that are currently

being received from the budget of the Government of RSwill not be sufficientto cover the

operational expenditures and the depreciation.

Table 1: Income Statement ofNP Sutjeska for period 2015-2016

BAM '000 2015 2016

Revenues

Revenues from business operations 1,144.62 1,395.11

Revenues from logging 727.37 960.85

Revenues from hospitality, tourism and trade 344.04 357.88

Revenues from hunting and fishing 73.21 76.38

Revenues from budget of Government of RS 1,157.91 1,158.41

Revenues from non-financial assets 1,022.40 1,322.98

Other revenues 87.10 92.91

Total revenues 3,412.03 3,969.41

Expenditures

Expenditures from business operations 2,296.11 2,302.33

Salaries and wages 1,442.14 1,400.04

Goods and services used expense 790.55 867.24

Financial expenses 63.43 35.04

Expenditures of accounting period 1,594.91 1,503.86

Amortization expense 1,392.10 1,370.72

Purchasing value of goods in reserve 107.13 117.07

Other expenses 95.68 16.06

Expenditures of non financial assets 367.25 463.22

33%

20%1%

32%

3%0%3%

5% 3%

Expenditures 2016

Salaries and wages Goods and services used expense

Financial expenses Amortization expense

Purchasing value of goods in reserve Other expenses

Expenditures for produced goods Value added taxes

Materials reserves expenditure


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BAM '000 2015 2016

Debt repayment expenditures - 83.93

Total expenses 4,258.27 4,353.34

Net profit/loss (846.24) (383.92) Source: NP Sutjeska Management

2.2.2 Balance sheet

Balance sheet of NP Sutjeska for the period 2015- 2016, based on the accounting system for

organisations funded from the budget of the Government of RS is presented in the following

table:

Table 2: Balance sheet ofNP Sutjeska for the period 2015-2016

BAM '000

2015 2016

Non-financial assets 276,796.40 275,559.48

Non-financial fixed assets 276,755.15 275,493.83

Produced fixed assets 23,094.38 21,758.29

Buildings and objects 22,894.50 21,606.41

Equipment 199.88 151.88

Nonproduced fixed assets 253,660.77 253,659.16

Land 141,739.91 141,739.91

Other natural resources 111,916.97 111,916.97

Other nonproduced resources 3.89 2.28

Nonfinancial assets in production in process - 76.38

Nonfinancial Current assets 41.25 65.65

Inventories of materials and other resources 41.10 65.50

Advance payments 0.15 0.15

Financial assets 315.51 655.79

Long-term financial assets - 34.59

Short-term financial assets 315.51 621.20

Cash and cash equivalents 164.69 126.30

Short term receivables 84.31 84.92

Short-term deferred assets 66.51 16.19

Financial budgetary relations - 393.78

TOTAL ASSETS 277,111.91 276,215.28

EQUITY 275,217.68 274,059.34

Permanent sources of equity 28,867.34 28,867.34

Reserves 251,421.96 250,737.07

Accumulated net losses up to the level of equity and

reserves (5,071.63) (5,545.07)

LIABILITIES 1,894.23 2,155.94

Long-term liabilities 527.37 435.35

Current liabilities 1,366.86 1,720.59

TOTAL LIABILITES AND EQUITY 277,111.91 276,215.28 Source: NP Sutjeska Man


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Out of total assets of NP Sutjeska in 2016, 51% are related to the land and 40% are related to

other natural resources, while 7% are buildings and objects.

Please note that Non-financial fixed assets presented in the financial statements above are the

property of the Republic of Srpska. As such, there is ambiguity whether these assets should be

presented in the financial statements of NP Sutjeska. The scope of this Study does not include

the analysis of the accounting treatment of these assets or any accounting advice.

Therefore, the balance sheet presented above is for illustrative purposes only. Detailed analysis

of the legal status of the aforementioned assets is presented in section 4.3 of this Study.

In 2016, total liabilities of NP Sutjeska amounted to over 2.1 mBAM and,compared to 2015,they

increased by14%, mainly due to the increase in current liabilities. Current liabilities include

liabilities towards employees, suppliers and short-term loans.

NP Sutjeska does not have any long-term loans as at the end of 2016.

2.2.3 Staffing

Depending on the needs and organizational activities, NP Sutjeska employs three categories of

employees: full-time employees, seasonal employees and service contract employees. Full time

employees are employed in NP Sutjeska during the whole year.

NP Sutjeska hires additional seasonal employees due to the increase in activities during the

summer period,

Service contract employees are mostly hired in protection of natural resources sectorfor

maintenance of infrastructure and natural resources, as well as in the hospitality sector. Service

contract employees are hired to work in in Hotel “Mladost” and Restaurant “Jezero” as kitchen

staff, waiters, receptionists and other staff. Service contract employees who are hired for the

needs of hotel or restaurant also perform other operations in other NP Sutjeska facilities when

there is such a need. In the period 2014- 2016, the number of full time employees in NP

Sutjeska has increased by4 and the number of service contract employees has increased by14.

Out of all full time employees, 54% are 45 years or older, while only about 1% are between 18

and 29 years old.Overview of the number of employees ofNP Sutjeska by sector and by type of

employment for the period 2014-2016 is given in the table below.


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Table 3: Number of employees in NP Sutjeska for the period 2014-2016, by sector

Sector

2014 2015 2016

Full time

Seasonal workers

Service contrac

t

Full time

Seasonal workers

Service contract

Full time

Seasonal workers

Service contract

Shared services sector

23 3 3 23 6 1 23 4

Protection of natural resources, cultural and other resources and management of resources

33 14 4 31 12 2 35 14

Development of NP, management, presentation and popularization of natural and cultural resources

4 4

5 3

5

Hospitality, tourism and trade

12 14 6 10 13 5 13 19

Total employees 72 35 13 69 34 8 76 37 27 Source: NP Sutjeska Management


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3 Overview of current National Park Sutjeska assets/inventory

3.1 Major assets managed by NP Sutjeska

The accounting value of the total assets ofNP Sutjeska amounts to over 276mBAM, out of which

47% is the value of land and 40% is the value of the forests. Out of total assets, 4% have been

suggested for outsourcing with the accounting value of over 10.8 million BAM. The accounting

values of the assets managed by NP Sutjeska are given in the table below.

Table 4: The accounting values of NP Sutjeska assets

NP Sutjeska assets Location Available for outsourcing?

Accounting value in 2016

(in '000 BAM)

Headquarters building Tjentište No 929.40

Sport courts Tjentište No 1,125.00

Shooting range Tjentište No 103.80

Residential-commercial building Košur No 139.68

Hunter house DobreVode No -

Hunter house Zelengora No 34.21

Hunter house Bogunovac No 34.21

Hunter house DonjeBare No 34.21

Hotel “Sutjeska” Tjentište Yes 1,850.31

Residential house Tjentište No 73.31

Bakery Tjentište No 42.65

Restaurant “Baza” Tjentište No -

Hotel “Mladost” Tjentište Yes 2,781.70

Pavilion A Tjentište Yes 469.37

Pavilion B Tjentište Yes 225.42

Pavilion C Tjentište Yes 198.63

Pavilion D Tjentište Yes 141.96

Pavilion F Tjentište Yes 54.43

Pavilion G Tjentište Yes 54.43

Central house Tjentište Yes 578.45

Restaurant “Jezero” Tjentište Yes 220.83

Buffet Usovački potok No 23.09

Offices Foča No 124.78

Summer house Suha No 4.05

Bungalows Tjentište Yes 53.67

Camp Tjentište Yes 9.02

Info centre Tjentište No 58.67

“Vidikovac” Dragoš sedlo No 1.07

“Vidikovac Beskita” Dragoš sedlo No 3.80

Bungalow Prijevor No 32.42

Museum Tjentište No 464.10

Memorial house Tjentište No 467.28

Memorial monuments Tjentište No 1,454.47

Residence of Broz Tito Tjentište No 0.00

Vacation house of Broz Tjentište No 19.88


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NP Sutjeska assets Location Available for outsourcing?

Accounting value in 2016

(in '000 BAM)

Youth centre Tjentište Yes 68.22

Buffet Popov most No 477.00

Headquarters residential building Tjentište No 404.40

Recreational Swimming lake Tjentište Yes 3,024.00

Butchery “Baza” Tjentište No 2.09

Roads NP Sutjeska No 17,147.92

Land NP Sutjeska No 132,209.31

Forest NP Sutjeska No 111,916.97

TOTAL VALUE OF ASSETS MANAGED BY NP SUTJESKA 276,215.28

Source: NP Sutjeska Management

Please note that assets presented in the table above are the property of the Republic of Srpska.

As such, there is ambiguity whether these assets should be presented in the financial statements

of NP Sutjeska. The scope of this Study does not include the analysis of the accounting treatment

of these assets or any accounting advice.

3.2 Assets of NP that can potentially be subject to long-term

outsourcing

Within the Sutjeska 20/20 study, the possibility of long-term outsourcing of assets managed by

NP Sutjeska was analysed. The Sutjeska 20/20 study recommended that some of the assets

mentioned in table above, are viable for long-term outsourcing.

Headquarter building, Museum, Memorial monuments, Residence of Broz Tito and similar

buildings needed for non-commercial activities of NP Sutjeska will not be subjected to

outsourcing.

Assets of NP Sutjeska that can potentially be subject to long-term outsourcing are:

Hotel “Sutjeska”; Hotel “Mladost”; Central House;

Youth House;

Pavilions A, B,C,D,,F,G;

Restaurant Jezero;

Bungalow;

Camp

Recreational Swimming Lake; and

Sports terrains.

These assets are the ownership of the Republic of Srpska and are managed by NP Sutjeska. They

can be outsourced in order to perform activities in the areas of hospitality services and tourism.

These activities are prescribed as activities that can be subjected to concession according to the

Article 6 of the Law on Concessions of RS.

When subjected to concession, these assets are used for the concession period by the

concessionaire, but remain in ownership of RS.

After the concession period, possession over these assets is transferred back to RS and then,

based on Sutjeska Law, transferred to NP Sutjeska possession and management.


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4 Recommended assets and services to be subject of the long-term outsourcing

4.1 National and international environmental standards relevant for

long-term outsourcing of NP Sutjeska’sassets

4.1.1 National Environmental Standards

In RS, environmental standards relevant for long-term outsourcing of assets and services in

protected areas are defined by the legislation regulating protected areas and NPs. Below is an

overview of existing standards as defined by the Law on Nature Protection of RS (O.G. of RS, No.

20/14), Law on National Parks (O.G. of RS, No. 75/10) and Law on National Park Sutjeska (O.G.

of RS, No. 121/12).

4.1.1.1 NP Management according to Category II

National standards on environmentally sound management of protected areas which also have to

be observed during the long-term outsourcing of asset and services are set down by the RS

legislation on nature protection and related legal regulations governing protected areas, in

particular NP Sutjeska.

According to the Law on Nature Protection of RS (O.G. of RS, No. 20/14), NPs are classified as

Category II. NPs are aimed at preserving the existing natural values and resources, the overall

landscape, geological and biological diversity, as well as satisfying scientific, educational,

spiritual, aesthetic, cultural, tourism, health and recreational needs and other activities in

accordance with the principles of nature protection and sustainable development. The allowed

activities in NPs are activities that do not endanger the originality of nature, as well as activities

that are in the function of education, health-recreational and tourism needs, continuation of the

traditional way of life of local communities, but that do not endanger the survival of species,

natural ecosystems and landscapes, in accordance with the aforementioned Law and the

management plan adopted by the managing authority.

Permitted Activities in NPs

The Law on National Parks (O.G. of RS, No. 75/10) also defines the allowed activities in NPs.

According to Article 10 of the Law, only economic, tourist-catering and scientific research

activities are allowed, provided that they do not endanger the authenticity and natural balance of

the plant and animal world, natural habitats, and hydrographic, geomorphological, geological,

cultural and landscape area values. Construction of facilities and other works related to the

aforementioned activities can be carried out only if they are in accordance with the spatial plan of

the area and the management plan of the NP, and in accordance with Construction Permit issued

by the authorized administrative authority.

Prohibited Activities in NPs

The Law on National Parks (O.G. of RS, No. 75/10) contains a list of activities that are prohibited

in NPs, as follows:

cutting or destroying of trees, shrubs and other vegetation, except for sanitary cutting,

importing of allochthonous species of plants, animals and fungi that live in nature in the

wild, as well as hunting of wild animals, except sanitary and breeding shoots in zones

specified by special regulations,


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uncontrolled collection of medical and aromatic herbs, fungi, forest and other fruits,

construction of facilities or performing other works that pollute land and air, deteriorate

water quality or affect its quantity, spatial and temporal distribution, with the exception of

water supply facilities in zones defined by the spatial plan of the NP,

construction of energy facilities and performing other works, except for the needs of the

NP. Exceptionally, the construction of energy facilities may be allowed, if they are of

interest to RS, with the prior approval of RS Government,

construction of nuclear facilities,

waste disposal,

exploitation of mineral resources,

construction of main and regional roads, unless foreseen by the spatial plan of the NP,

destroying border signs, warning signs and notifications, billboards, tourist signalling and

messages that point to the importance and role of the park,

other activities that destroy the nature or endanger the features of the NP.

Measures for the Protection and Development of NPs

The aforementioned Law also contains a list of mandatory measures for the protection and

development of NPs, as follows:

measures to prevent actions that may disturb the basic characteristics and other features

of the NP,

protection, preservation and improvement of the bio-geographical features of the area,

ecosystems and diversity of the original flora and fauna, of the genetic fund and its

restoration by reintroduction of the species of flora and fauna living in the area of the NP,

and the separation and breeding of seed stands, as well as other representative,

biological, geomorphological, geological, hydrographic and landscape characteristics,

preservation of representative forms of ethnological heritage and other cultural and

historical values,

scientific and research activities,

cultural and educational activities,

presentation and popularization of NP values,

landscaping and construction of facilities for the preservation, restoration and

improvement of natural and cultural and historical values and their presentation, as well

as rehabilitation and revitalization of the endangered parts of NPs,

establishment and development of tourist, recreational and other development functions in

the use of natural and cultural-historical values of NPs, by ensuring the protection,

preservation and improvement of these values.

According to the Law on National Park Sutjeska, the Spatial Plan of the Special Purpose Area of

the NP will determine the measures of protection and development for each zone and regime of

protection. The Spatial Plan has not yet been adopted by the National Assembly of RS.

Protection Regimes for NP Sutjeska

The Law on National Park Sutjeska regulates the protection regimes for NP Sutjeska. According

to the Law,the protection regimes of degrees I, II and III will be determined depending on the

degree of preservation of natural values. Three protection regimes are as follows:


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degree I of protection regime is determined for parts of the NP which are characterised by

original, unchanged or slightly modified ecological systems of exceptional scientific and

practical importance,

degree II of protection regime is determined for parts of the NP which are characterisedby

partially changed eco-systems of great scientific and practical significance,

degree III of protection regime is determined for parts of the NP which are

characterisedby partially changed or changed eco-systems.

The type of protection and the activities that may be performed according to each of the

aforementioned protection regimes are described in the table below.

Table 5: Type of protection and activities that can be performed according to the degree of protection regime

Degree of

protection

regime

Type of protection and activities that can be performed according to the

degree of protection regime

Degree I of

protection regime

Such areas must be strictly protected by allowing the spontaneous development of

natural succession and other ecological processes, the preservation of habitats,

living communities and populations of plants and animals, under wilderness

conditions, or with insignificant influence and presence of man. The only

allowedactivities are those undertaken for the purpose of scientific research and

controlled education and activities prescribed by Article 11, paragraph 2 of the

Law on National Parks .

In case of accidental situations, interventional activities may be undertaken with

the prior consent of the Ministry of Spatial Planning, Civil Engineering and Ecology

RS (“Ministry”) and the Republic Institute for the Protection of the Cultural,

Historical and Natural Heritage of RS.

Degree II of

protection regime

Such areas must be protected by allowing limited and controlled use of natural

resources and cultural heritage. The allowed activities are those which enable the

improvement of the state and presentation of the NP, without affecting its primary

values, as well as activities prescribed by Article 11, paragraph 2 of the Law on

National Parks.

Degree III of

protection regime

Such areas must be protected by allowing selective and limited use of natural

resources and controlled interventions and activities in the area, if they are in line

with the objectives of the NP management or in accordance with the inherited

traditional forms of performing economic activities and living, including

construction for tourism purposes, as well as activities prescribed by Article 11,

paragraph 2 of the Law on National Parks.

According to the Law on National Park Sutjeska, the zones and protection regimes of the degrees

I, II and III in NP Sutjeska have to be determined by the Spatial Plan of the Special Purpose Area

of the NP.

4.1.2 International Environmental Standards

International Union for Conservation of Nature (IUCN) Management Categories

IUCN Management Categories have been developed with the support of the World Commission on

Protected Areas (WCPA). These categories classify protected areas according to their

management objectives, and. are recognised by international bodies and many national

governments as the global standard for defining and recording protected areas and as such are

increasingly being incorporated into government legislation.


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NPs are classified under IUCN Management Category II, which refers to large natural or near

natural areas set aside to protect large-scale ecological processes, along with the complement of

species and ecosystems characteristic of the area, which also provide a foundation for

environmentally and culturally compatible spiritual, scientific, educational, recreational and visitor

opportunities1.The primary objective of protected areas in this category is to protect natural

biodiversity, its underlying ecological structure and supporting environmental processes, and to

promote education and recreation2.The classification of a category II protected area requires that

such areas are managed for conservation by legal or other effective means, and therefore legal

recognition and protection at the national or sub-national level is likely to be present in these

sites.

Forest Stewardship Council (FSC) Certification

FSC forest management certification confirms that the forest is being managed in a way that

preserves the natural ecosystem and benefits the lives of local people and workers, all while

ensuring it sustains economically viability.Certification under the FSC program implies satisfying

pre-defined standards for sustainable forest management. FSC standards are explicitly expressed

in the form of principles, criteria, the application of which implies compliance with national and

international laws and regulations.Certification is achieved by passing an assessment carried out

by an FSC-accredited certification body, with forest management conformity assessed against the

FSC Principles and Criteria3.

Pan European Forest Certification (PEFC)

PEFC is not a standard setter but a mutual recognition scheme. It was set up as an endorsement

process, to assess independent national forestry management schemes against internationally

recognised criteria for sustainable forest management. PEFC bases its sustainability benchmarks

on globally recognised principles, guidelines and criteria developed by international and

intergovernmental bodies with broad consensus from interested stakeholders. Any national

certification system seeking to obtain PEFC endorsement must submit to a comprehensive and

thorough assessment process, including independent evaluation and public consultation. A full

final report of this process is then made publicly available, and national systems are required to

revise their schemes every five years. Obtaining PEFC Sustainable Forest Management

certification demonstrates that management practices meet requirements for best practice in

sustainable forest management, including biodiversity maintenance, protection of workers’ rights, preservation of ecosystem services and habitats4.

Verified Conservation Area (VCA) Standard

To register an area as a VCA, an area-based conservation management plan is required. To

remain registered, annual conservation performance reports are required. The requirements for

these documents are set out in VCA Standard. Plans and reports are publicly listed on the VCA

Registry to verify that the area is being managed to deliver conservation outcomes. Additionally,

for VCAs that are not externally audited, a letter of support from an independent, reputable

conservation professional is required5.

The VCA Registry includes three levels of recognition presented in table below.

1 Dudley, N. (Ed). Guidelines for Applying Protected Area Management Categories. (2008) 2 http://www.biodiversitya-z.org/content/iucn-category-ii-national-park 3 https://ic.fsc.org/en 4 https://www.pefc.org/ 5 http://conserveareas.org/


17

Table 6: Levels of recognition presented according to VCA Standards

Status Requirements

Confirmed (Bronze) Conservation plan, letter of support, and annual performance

reports

Audited (Silver) Conservation plan and annual reports plus audits of the plan and

reports

Champion (Gold) 5 years of audited reports or 10 years of confirmed reports

European Wilderness Quality Standard

The European Wilderness Society is a Pan-European developed the European Wilderness Quality

Standard and Audit System which provides a common European wilderness certification standard

for existing and potential wild areas and wilderness. An area can be assigned one of four

wilderness categories: bronze, silver, gold or platinum. The category assignation is based on over

200 indicators divided into nine principles: 1) wilderness size and zoning, 2) natural processes

and biodiversity, 3) wilderness management, 4) restoration, 5) extractive uses, 6) wilderness

disturbance, 7) control strategies for fire, invasive species, natural catastrophes, 8) research and

monitoring and 9) international relevance. A wild area can evolve into a wilderness area over a

long term process6. The European Wilderness Quality Standard and Audit System fulfills several

requirements, as follows:

Compliance with the Wild Europe Initiative “Discussion Draft: Definitions and Criteria for

Wilderness and Wild Areas”,

Compliance with the IUCN criteria for wilderness areas,

Compliance with the PAN Parks criteria for wilderness areas7,

Standardized Criteria for a Pan European Certification Process,

Compliance with the Verified Conservation Area (VCA) Council.

4.1.3 Conclusions and Recommendations - environmental

As already stated in the analysis of national environmental standards for relevant for long-term

outsourcing of asset and services in protected areas, such standards are regulated by RS

legislation which governs protected areas in general and NP Sutjeska in particular. The Spatial

Plan of the Special Purpose Area of the NP which determines the measures of protection and

development for each zone and regime of protection has not been adopted yet by the National

Assembly of RS. This Plan needs to be adopted in order to enable the determination of protection

regimes in NP Sutjeska and respective protective measures.

The management category of NP Sutjeska as defined by Law on Nature Protection of RS is in line

with the IUCN Management Category II which refers to NPs and promotes the same objectives

and management purposes as in the previously mentioned Law on National Parks and Law on

National Park Sutjeska. In order to improve long-term outsourcing of asset and services in NP

6 http://wilderness-society.org/european-wilderness-definition/european-wilderness-quality-standard-audit-system/ 7 The PAN Parks Foundation was a non-governmental organisation that aimed to protect Europe's wildernesses. The foundation filed for bankruptcy and was liquidated in 2014. PAN Parks set out to protect Europe’s wilderness by creating a network of the large well-managed wilderness protected areas. PAN Parks Wilderness required a minimum of 10 000 ha of an ecologically unfragmented area of land where no extractive uses are permitted, and the only management interventions were those aimed at maintaining or restoring natural ecological processes and the ecological integrity. The certification was based on verification carried out by independent experts, according to PAN Parks quality standards.


18

Sutjeska, it is recommended to implement international environmental standards such as FSC

Certification (in relation to sanitary cutting activities which are permitted and forest management

in this area) and the VCA Standard as a first step. After obtaining these certifications, it is

recommended to go further and apply for the implementation of the European Wilderness Quality

Standard, which has stricter criteria for certification, but fulfills the requirements contained in

VCA standards and IUCN Criteria.

4.2 Review the relevant legislation, track-record and accumulated experiences in the RepublikaSrpska in outsourcing public

resources

Concession process is a more commonly used process than the Public-Private Partnership

process. In RS, there is not much, almost any, practice in Public-Private Partnership. When

outsourcing public resources, especially regarding this project, the concession process is the

process that fits the most.

In regard to concession, RS has a wide-spread practice. Most of concession agreements the RS

concluded are for energy facilities and mining. There are also examples for concluding the

concession agreements in tourist and hospitality activities8.

Regulations in RS that regulate these areas are:

Law on Public-Private Partnership (“Official Gazette of Republic of Srpska”, No. 59/09 and 63/11, “PPP Law”)

Decree on PPP Projects Realization (“Official Gazette of Republic of Srpska”, No. 104/09 and 62/12)

Rulebook on Contents and Guidance of PPP Projects Register (“Official Gazette of Republic of Srpska”, No. 32/10)

Concession Law (“Official Gazette of Republic of Srpska”, No. 59/13, “Concession Law”)

Concession Law of RS regulates the procedure of awarding the concession agreement as

described further in this report.

4.3 Description of the legal status of NP Sutjeska’sassets

The land and buildings of Sutjeska are managed by NP Sutjeska, while they are owned by the

Republic of Srpska.

The real estate that was owned by NP Sutjeska has been transferred by Republic Administration

for Geodetic and Property Affairs decisionto the ownership of the Republic of Srpska.

This transfer has been performed based on the Law on the Transfer of Social Assets Into State

Ownership („Official Gazette of RS“ No. 20/98, 74/07).

All immovable property and land on Sutjeska area is property of Republic of Srpska. NP Sutjeska

is managing the property of Republic of Srpska.

In the Sutjeska area, only those economic, tourist, catering and scientific research activities that

are licensed in the process of obtaining licenses and that are determined not to endanger the

authenticity and natural balance of the plant and animal world, natural habitats, and

hydrographic, geomorphological, geological, cultural and landscape area values, can be

performed.

8One of the most recent concession agreements is “Concession Agreement for Land Use for the Implementation of the Project "Island on the River Vrbas-TUK" Stara Ada ", Banja Luka” concluded for period starting on 26 February 2016 until 26 February 2046.


19

The construction of facilities and the execution of works for the purpose of performing of the

activities may be carried out only if they are in accordance with the spatial plan of the area and

the Management Plan of the national park and on the basis of the building permit issued by the

competent administration body.

Tourist, catering and other facilities in which these activities are performed should, by their

quality and appearance, provide the visual identity of the national park in a way to affirm its

natural values and specificities and be connected to the infrastructure systems so that they do

not pollute and threaten the nature of the national park.

The outsourcing of the Sutjeska assets may be subject to Public-private partnership or

Concession agreement with Republic of Srpska.

Given that the JUNP is managing the assets owned by RS, there should be a moment where the

assets that will be outsourced are transferred from JUNP to its owner – RS, so that RS can

concede them to the concessionaire. However, the laws regulating this area are silent on the

matter, but since the law allows even construction of energy facilities in the area of national

parks it may be concluded that assets in the national park area can be transferred through

concession to third parties.

Also, the Concession Law does not specifically state the possibility of outsourcing objects in order

to perform hotel and tourist activities or hospitality activities, but in Article 7 of the Concession

Law it regulates the concessions on Build – Operate – Transfer model. This model implies the

build or reconstruction of the facilities, financing the complete object, operating the object and

then, after the concession period, transferring the object to the RS.

Based on the above-mentioned, it may be concluded that these activities might be subjected to

concession, so that the NP Sutjeska assets might be outsourced in this manner.

4.4 Analysis of options for outsourcing of NP Sutjeska’s assets

Generally, current legal framework in Bosnia and Herzegovina offers two basic models for long-

term cooperation between public and private sector:

Concessions where private partners can exploit certain resources or perform activities of

general interest, while paying the concession fee to the public sector; and

Public-private partnerships (PPP) where public and private sector can share risks.

The Study will further analyse these options for long-term outsourcing of the Park’s assets.

Basic features of both models to be further analysed in the Study are presented below.

4.4.1 Concessions in Republic of Srpska

4.4.1.1 General

Article 2 of the Concession Law of RS states that Concession means the right to perform

economic activities using natural resources, public facilities and to perform the activities of

general interest.

The Concession Law allows up to 50-year concessions for:

exploitation of areas and buildings of natural, cultural and historical heritage; and

activities in the field of hotel and restaurant services.

Concession can be granted by the Government of RS or the Government of RS can authorize

local self-governance authorities to grant a concession.


20

The concession granting procedure needs to meet requirements regarding transparency, non-

discrimination, market competition, fair treatment, protection of public interest, efficiency and

environmental protection.

The subject to Concession pursuant to the Article 4 of the Law on Concession can be:

1. Construction and operation or operation of:

roads and associated infrastructure facilities,

railways, navigable channels and ports and

airports;

2. Exploitation of watercourses and other waters;

3. Construction of power plants;

4. Construction and/or exploitation of water accumulations, excluding the transmission of

electricity;

5. Exploration and/or exploitation of energy and other mineral raw materials;

6. Exploration and/or exploitation of crude oil and natural gas;

7. Usage of construction soil;

8. Exploitation of forests and forest areas;

9. Hunting and fishing;

10. Construction, exploitation and management of pipeline transport of oil and gas and

storage in pipelines and terminals;

11. Games of chance;

12. Postal and telecommunication services, excluding common and international

communications mentioned in Article III1 (x) of the Constitution of Bosnia and

Herzegovina;

13. Passenger and freight railway transportation;

14. Public bus transportation of passengers;

15. Usage of healing, thermal and mineral waters;

16. Exploration and/or exploitation of non-metallic mineral raw materials, including all

secondary mineral raw materials defined by different law;

17. Hydro-melioration systems and systems for extracting of materials from watercourses and

water areas;

18. Hospitality / catering activities;

19. Construction of tourist objects infrastructure and suprastructure;

20. Formation and/or usage of riverbeds and banks and lakes;

21. Utilization of agricultural soil;

22. Areas and buildings of natural and built heritage;

23. Other goods established in the Document on Concessions Policy.

There are activities in the Concession Law that include activities that are applicable to the case at

hand - hospitality/catering activities and construction of tourist objects infrastructure and

suprastructure.

The concession agreement can be concluded for a specified period which cannot exceed 50 years.

The deadline to which a concession is granted may be extended in the negotiation procedure, but

not longer than the period of 50 years.

The procedure for granting a concession in RS may be initiated on the basis of:

Initiative of the competent authority9

Initiative of the interested party10

9The competent authority proposes adoption of a decision to initiate the concession granting procedure. 10The potential concessionaire submits its offer for concession.The submitter of the initiative is awarded with up to 10% bonus points.


21

Bids in the direct negotiations11

The advantage of the initiative of the interested party is that the submitter of the initiative is

awarded with up to 10% bonus points when awarding the concession agreement.

Below are tables with the overview of each of the procedures for granting concessions:

CONCESSION GRANTING PROCESS IN RS

(initiative of the potential concessionaire)

STEP RESPONSIBLE

PARTY

DEADLINE COMMENTS

1. The potential concessionaire submits the offer

Interested bidder N/A

2. Performing consultations and acquiring opinions of the institutions and the RS Public Attorney`s Office

Responsible

ministry

RS Public

Attorney`s Office

60 days

3. Adopting decision on starting the concession awarding procedure

Responsible

ministry

N/A

4. The competent authority prepares the tender documents

Competent

authority

N/A

5. The competent authority shall submit a request for approval of tender documents to the Commission for Concessions

Competent

authority

N/A

6. The Commission for Concessions shall issue a decision on approval of tender documents

Commission for

Concessions

30 days

11This option is applicable only in case where there is an agreement between RS or state-owned companies related ot the concession project.


22



STEP RESPONSIBLE

PARTY

DEADLINE COMMENTS

7. Competent authority publishes a call for bidders

Competent

authority

N/A

8. Interested bidders provide their bids

Interested bidders N/A

9. The Commission for Concessions shall open and evaluate the bids

Concession

Commission

N/A

10. After completion of the public opening, the Commission for Concessions proceeds with the evaluation of the bids

Concession

Commission

N/A It is based on the criteria set

forth by the public invitation

and tender documents, and

prepare a ranking list of

bidders.

11. Commission for Concessions submits to the concession grantor a report on the conducted procedure including ranking list of bidders

Concession

Commission

30 days

12. The concession grantor decides about the selection of the successful bidder and concession granting

Competent

authority

N/A

13. Signing of the concession agreement

RS Government /

Interested bidder

N/A The submitter of the initiative is

awarded with up to 10% bonus

points.


23


(direct negotiations)

STEP RESPONSIBLE

PARTY

DEADLINE COMMENTS


The potential concessionaire

should submit its offer for

concession and the appropriate

study.


As for the content of the study,

concessionaire should include

elements for the study

prescribed by the RS

Concession Policy Document.

2. Defining framework for the negotiations

The RS Government should

define minimum of technical,

financial, legal and other

requirements for the concession.

RS Government 60 days

3. Direct negotiations

Responsible ministry needs to

conduct direct negotiations with

potential concessionaire (based

on the requirements defined by

the RS Government).

Responsible

ministry /

Interested bidder

N/A

4. Approval from the RS Concession Commission

The RS Concession Commission

needs to give prior approvals for

the study and for the draft

concession agreement.

RS Concession

Commission

30 – 60 days

5. Approval from the RS Government

The responsible ministry shall

report to the RS Government on

the conducted negotiations and

submit to it a draft decision on

granting a concession and a

Responsible

ministry

60 days It should be noted that the

responsible ministry will also

seek the opinion of the

Attorney General on the draft



24


(direct negotiations)

STEP RESPONSIBLE

PARTY

DEADLINE COMMENTS

draft concession agreement.

6. Approval from the RS Government

RS Government 30 – 60 days


RS Government /

Interested bidder

N/A


(Initiative of the competent authority)

STEP RESPONSIBLE

PARTY

DEADLINE COMMENTS

1. The competent authority proposes adoption of a decision to initiate the concession granting procedure

Competent

authority

N/A Prior to proposing the decision,

the competent authorities shall

hold consultations and obtain

opinions of the authorities, RS

Public Attorney`s Office, state-

owned companies and other

institutions competent for the

issuance of approvals, permits

and authorizations required for

the implementation of the

subject-matter of concession.


Competent

authority

N/A


Competent

authority

N/A


25


Commission for

Concessions

30 days


Competent

authority

N/A

6. Interested bidders provide their bids



Concession

Commission

N/A


Concession

Commission

N/A It is based on the criteria set

forth by the public invitation

and tender documents, and

prepare a ranking list of

bidders.


Concession

Commission

30 days


Competent

authority

N/A


RS Government /

Interested bidder

N/A

4.4.1.2 Concession agreement

Concession agreement as a framework regulating matters between RS and concessionaire,

depending on the subject matter of concessions, contains the following:

subject of concession,

terms and conditions of use of the subject of concession,

concession period,

beginning of concession activity,


26

ownership rights over the assets related to the performance of the concession activities,

including the right over the land on which the concession activities shall be performed and

defining ownership relations after the expiry of the concession contract,

property given for use by the conceding party,

amounts, deadlines, payment method, then method of changing the concession fee,

method and terms of securing funds for financing concession activities and dynamics of

investment,

minimum standards of service quality criteria and methods for determining the price or

tariff for end users,

minimum technical standards which are to be applied as well as environmental protection,

rehabilitation and recultivation of areas degraded during concession activities,

right of supervision by the conceding party,

scope and manner of reporting on the execution of contractual obligations,

right of the conceding party to approve the project documentation, as well as contracts

entered by the concessionaire, with the concession owners or related parties,

type, amount and method of providing security for execution of the concession contract,

insurance policies that the concessionaire must maintain during the concession period,

remedies in the event of failure to fulfil contracted obligations by any of the contracting

parties,

description of the events that are considered as changed circumstances and force

majeure, and conditions for the modification or termination of the contract in the event of

their occurrence,

rights and obligations of the contracting parties with respect to confidential information,

rights to the assignment of the concession contract and the change in ownership structure

of the concessionaire,

method of amending the concession contract,

conditions for termination of the concession contract,

method of transfer of immovable property, equipment and plant to the conceding party in

the state in which the same must be handed over by the end of the concession period,

method of regulating relations in the event of termination of the concession contract and

other elements relevant to the subject of the concession.

The concession fee is an obligatory and constituent element of the concession contracts. It has a

monetary character and it consists of the following:

One-time fee for the entitlement and the same is to be paid after the concession

agreement and

Concession fee for the use which is expressed in percentages depending on the annual

turnover of the concession activity or per unit.

Concession fee is a compensation for the awarded concession in accordance with the concession

agreement. Concession fee includes:

On-off fee to be paid when the agreement is signed;

Annual fee to be paid each year during concession period.

Concession fee amount can be determined in accordance with the Rulebook on Determination of

Criteria for Concession Fee Amount and Guarantees Amount for Trade, Tourism and Hospitality

Services (“Official Gazette of RS”, No. 45/07, 63/07 and 101/07).

One-off fee is calculated based on the amount of the investment for the concession project

ranging between 0.5% to 3%, while annual fee is 3% based on the amount of income generated

from the concession activity. Additionally, the concessionaire needs to provide to the government


27

a performance bond issued by a reputable bank amounting between 0.2% and 3% of the value of

the investement.

According to the Article 39 of the Concession Law the selected bidder who has not established a

company with headquarters in the Republic of Srpska must set up a company in accordance with

the regulations of the Republic of Srpska before the conclusion of the concession agreement.

Article 45 of the Concession Law prescribes that the concession agreement shall be terminated in

case of:

termination of existence of subject matter of concession,

upon the expiration of the agreed period,

initiation of bankruptcy or liquidation of the concessionaire,

unilateral termination,

agreement between the concession party and the concessionaire,

on the date of finality of the decision of the Government on establishing of general interest

for the construction of facilities or works on the concession subject in accordance with the

regulations governing the area of expropriation,

with finality of the court decision which annuls or cancels the concession agreement,

abolition, cancelling or annulling of the decision on selection of the preferred bidder and

the concession award, after the conclusion of concession agreement,

fulfilling the conditions prescribed by another law, which result in the termination of the


The Concession Commission (“the Commission”) is a permanent and independent regulatory

body with the status of a legal entity. According to the Article 53 of the Concession Law the

Commission has the following duties:

prepares documents on policy and proposes its adoption by the National Assembly,

supervises the implementation of the policy,

gives a consent to a feasibility study,

gives a consent to the documentation for the tender,

proposes the decision on selection of the most favorable bidder and the concession award,

opens and evaluates submitted bids following the public call for concessions,

gives a consent to the proposal of the concession contract and an annex of the same,

approves the terms and conditions of standard contracts for the provision of public

services,

checks the overall performance of the concessionaire, in accordance with the concession

agreement, including in the continuous supply of services to users, quality of services, the

application of tariffs and other terms of the contract,

decides on complaints of service users, in relation to the amount of compensation and

other conditions under which the concessionaire provides public services, unless this is

under the jurisdiction of another authority by a specific law,

gives a consent to the transfer of the concession contracts and the change in ownership

structure of the concessionaire,

gives prior approval to the establishment of a lien in favor of financial institutions,

keeps a register of concession contracts and

decides on other requirements, in accordance with the responsibilities defined by the Law

on Concessions.

4.4.2 Public – private partnership in Republic of Srpska

4.4.2.1 General


28

Public – private partnership is created for long term partnerships for improvement of public

services where the risks between public and private partner are shared (e.g. risks related to

construction, financing, demand and availability).

Specific objectives to be achieved through a public-private partnership are:

implementation of projects enabling the public partner to better fulfil their obligations and

to use public revenues in a more effective manner;

creation of new sources of revenues, new infrastructure and new services;

allocation of risks between the public and the private sector;

creation of added value by allocation of resources, knowledge and skills of both private

and public sector and

upgrading of productivity, competition, and rational use of economic capacities of both

private and public entities.

Article 7 of the Law on Public-Private Partnership (“Official Gazette of Republic of Srpska” No. 59/09 and 63/11, “the PPP Law”) regulates that the object of a public-private partnership may

be construction, use, maintenance and operation, or reconstruction, use, maintenance and

operation, of property, for the purpose of fulfilment of public needs in the following fields:

a) air, road, river and railway transport including supporting infrastructure facilities,

b) educational, cultural and sport infrastructure,

c) health infrastructure,

d) communal infrastructure,

e) information communication infrastructure,

f) innovation and entrepreneurship infrastructure,

g) management of ecological and solid waste, and

h) other fields of interest for the Republic and local self-governance units.

It is not specifically stated in the PPP Law that hotel and tourist activities fit under its scope.

There is a possibility that these activities can fit under “other fields of interest”, but this is a wide interpretation of the PPP Law. Also, there is a lack of public interest as the outsourced assets will

primarily generate commercial benefit to potential partner.

Current practice of the RS Ministry of Finance was rather restrictive regarding the approval of PPP

projects. Therefore, having in mind that these sort of activities are not specifically mentioned in

the law and potential lack of public interest, there is a risk that the project would not be

approved by the RS Ministry of Finance as suitable for PPP.

The Article 19 paragraph 1 of the PPP Law regulates that in the public-private partnership it is

mandatory to establish distribution of basic risks, such as:

1. Construction risk, which refers to activities, related to the initial state of the property that

is the subject of the contract;

2. Availability risk that applies to cases where during asset management the private partner

is considered as accountable for the provision of services under the given standards or

services specified by the contract; and

3. Demand risk relating to the volatility of demand in relation to the expected at the time of

signing the contract, regardless of the involvement of the private partner, i.e. it is a

common risk borne by private parties in a market economy.

Article 19 paragraph 2 of the PPP Law states that determining the distribution of other risks

(bankruptcy or liquidation of the private partner, etc.) can be regulated in the contract between

the public and private partners.

Participation of the public partner may be in the form of investments, property, rights and money

through payments of regular compensation to the private partner for provided services.


29

Article 13 paragraph 3 of the PPP Law states that agreement may contain several basic

agreements based on the relevant legislation. Mandatory elements of the agreement are:

1. Rights and obligations of public and private partners, as the contracting parties, including

the obligation to provide reliable services to customers at the standards set by the public

partner,

2. Purpose and subject matter of the contract,

3. Clear identification of risks and risk distribution between public and private partners,

4. Method and conditions of providing the financial structure of the project, as well as

conditions under which financial institutions may participate in the project,

5. Minimum standards to be applied during the project designing, standards, quality of

service, and other requirements for the implementation of the project,

6. Method of payment, and the conditions for determining the alignment of compensations,

7. Regulation of tax liabilities,

8. Full transparency and obligation of the public partner to disclose information relating to

the conduct of a public-private partnership project,

9. Right of the public partner to supervision during the project implementation and execution

of the contract,

10. Duration, as well as conditions for renewal of the contract,

11. Definition of ownership upon termination of the contract,

12. Penalties and fees for non-fulfilment of contractual obligations, 13. Termination of the

contract with the right of partners to terminate the contract and procedure in the event of

termination of the contract before the expiry of the date set by the contract,

13. Method of dispute resolution,

14. Measures for facilitating project financing,

15. Description of the events that are considered force majeure,

16. Other elements relevant to the subject of public-private partnerships and

17. Obligation to agree on the audit of contracts after a certain period of time.

Article 20 paragraph 1 of the PPP Law states that project value shall be registered as investment

by the public sector, and property shall be entered in the accounting records of the public sector,

if the public sector: is the contracting authority for the investment, bears the construction risk

and availability risk or demand risk. In this case, the value of investment in the public-private

partnership shall debit the budget of the Republic and be considered financial leasing.

Article 20 paragraph 2 of the PPP Law regulates that project value shall not be registered as

investment by the public sector and shall not be entered in the accounting records of the public

sector in case the private partner bears the construction risk and at least one more of the

remaining two risks mentioned in paragraph 1 of this Article. In this case, the agreement shall be

considered operational leasing by the public sector and be recorded in the budget as purchase of

services from the public partner.

Selection process in Republic of Srpska includes different stakeholders such as:

- Contracting Authority (the government, local self-governance, public institutions, state

controlled companies)

- Ministry of Finance of Republic of Srpska

- Competent ministries (depending on sector where Contracting Authority belongs to)

- The Government of Republic of Srpska

- Public Attorney’s Office.


30

4.4.2.2 Step plan

STEP RESPONSIBLE

PARTY

DEADLINE COMMENTS

1. Submission of the project proposal

Contracting

Authority

N/A Contracting authority shall initiate

the PPP procedure by submitting a

proposal to the Ministry of Finance

and to the relevant ministry, with

the prescribed documentation.

Among other prescribed elements

of a project proposal, it must

contain a study or pre-study of

economic justification.

2. Opinion of the responsible ministry

Responsible

ministry

15 days Within 15 days from the receipt of

the final project proposal, the

responsible ministry shall submit

opinion on the study or pre-study

study to the Ministry of Finance,

as well as the opinion on the

compatibility of the project

proposal with the sectoral

development plans and strategies

or regulations.

3. Information for the RS Government

Ministry of Finance N/A The Ministry of Finance compiles

information informing the RS

Government about the proposal of

the public-private partnership

project and informs Contracting

Authority on the conclusion of the

RS Government regarding the

project and further activities.

4. Making the tender documentation

Contracting

Authority

N/A Contracting authority, before

starting the selection procedure of

the partners, compile the tender

documentation, with all the

attachments.

5. Announcement of the Public call

Contracting

Authority

N/A Contracting authority is obliged to

publish a public call for the

realization of the PPP project in

the RS Official Gazette, on the RS

Government web page and sheets

with international circulation,

which must also contain an


31

STEP RESPONSIBLE

PARTY

DEADLINE COMMENTS

abstract in English.

6. Appointment of a private partner selection Commission

Contracting

Authority

N/A Contracting authority appoints a

Commission for the selection of a

private partner.

7. Submitting a request for participation


8. Qualification phase

Contracting

authority

N/A Upon receipt of requests for

participation from interested

private partners, contracting

authority perform selection based

on the required qualification

conditions given in the tender

documentation.

9. Phase of collecting qualified initial bids

Contracting

Authority

N/A Contracting authority sends,

immediately after the selection,

the invitation to submit bids in

written form to qualified private

partners for the delivery of the

initial offer.

10. Deadline for submission of bids

Interested bidders Minimum 40

days

11. Competitive dialogue

Contracting

Authority /

Interested bidders

The

contracting

authority may

continue the

negotiation /

dialogue

procedures

until it finds a

solution.

Contracting authority lead a

conversation with selected

candidates to the final

identification of the solution.

During the dialogue, the basic

principles of equal treatment must

be respected and none of the

proposers should be privileged in

relation to others.

The dialogue can take place in

several stages - with a declining

number of candidates.


32

STEP RESPONSIBLE

PARTY

DEADLINE COMMENTS

12. Contracting authority shall provide a notice on the completion of the dialogue phase

Contracting

Authority

15 days The contracting authority is

obliged to deliver a notice on the

conclusion of the dialogue phase,

with an indication of the basic

elements of the chosen solution or

selected solutions, within 15 days

to all participants in the dialogue,

by registered mail or otherwise

that can be proved.

13. Call for submission of final bids

Contracting

Authority

N/A The dialogue ends with the call for

submission of the final offer, and

the public partner is obliged to

invite the remaining candidates or

the remaining candidate to submit

the final offer.

14. Delivering the final offer to a private partner

Interested bidders N/A After submitting the final offer,

the offers may be clarified or

updated at the request of the

public partner, or the private

partner may explain, refine and

supplement his offer if it does not

change the basic elements of the

offer, but not in a manner that

could be contrary to the principles

of market competition or which

could have a discriminating effect.

15. Decision on the choice of a private partner

Contracting

Authority

N/A After choosing a private partner,

Contracting Authority decides on

the choice of a private partner.

16. Opinion of the RS Attorney Public Office on the draft agreement

Contracting

Authority

N/A Contracting Authority is obliged to

obtain the opinion of the RS

Attorney Public Office on the final

draft of the agreement, prior to

submission to the Government.

17. Submission of the final draft of the agreement to the RS Government

Contracting

Authority

N/A


33

STEP RESPONSIBLE

PARTY

DEADLINE COMMENTS

18. Adoption of decision on compliance

RS Government 30 days The Government or the Ministry of

Finance, within 30 days from the

day of receiving the final draft of

the agreement and

documentation, issues a decision

on compliance of the final draft of

the agreement with the proposal

of the PPP project, the tender

documentation and the provisions

of the regulation on the content of

the public-private partnership

agreement.

If the Government or the Ministry

of Finance finds that there are

deficiencies, deviations from the

prescribed content, it will ask the

public partner to correct and

amend the final draft of the

contract within 15 days.

The Government reserves the

discretion to, regardless of the

approval of the Ministry of Finance

and the competent ministry,

suspend the procedure for the

approval of the agreement, with

the possibility of a fair

compensation for the costs

incurred to the private partner.

19. Conclusion of agreement between Contracting authority and Private partner

Contracting

Authority / Private

partner

N/A

20. Monitoring of the project implementation

Responsible

ministry /

Contracting

Authority

The entire

agreement

period

4.5 Recommendation of the best option for the RS Government to

consider in outsourcing NP Sutjeska’s assets from legal perspective

Concession as an option for outsourcing of the NP Sutjeska’s assets fits better to the characteristics of this project than the public-private partnership procedure.

Disadvantages of the public-private partnership procedure in respect to this project are:


34

lack of public interest as the outsourced assets will primarily generate commercial benefit

to potential partner;

the law limits activities that can be subject to public-private partnerships and the

commercial hotel and tourist services are not specifically stated under its scope;

lack of practice in this procedures in Republic of Srpska; and

it is a more complicated procedure and time consuming.

Concession procedure fits this project more because:

these activities can be subjected to the concession according to Concession Law;

in case of initiative of the interested party, the submitter of the initiative is awarded with

up to 10% bonus points when awarding the concession agreement;

there is a lot of practice in this area in RS;

it is a less complicated procedure.

Noteworthy, as the assets are currently operated by JUNP and are offering services that

would be subject to the concession, before handing over assest to the concessionaire,

possession over the assests should be transferred to RS Government and free so the

concessionaire as new operator may perform activities envisaged by the concession.


35

5 Economic analysis of the assets and services recommended to be subject of the long-term outsourcing

5.1 Technical description of NP Sutjeska’s assets and their current status

In chapter3.1, assets managed by NP Sutjeska that can be subject of long-term outsourcinghave

been identified. These assets include: Hotel Mladost, Hotel Sutjeska, Central House, Youth

House, Restaurant Jezero, Pavilions (A,B,C,D,F,G), Bungalow, Camp, Recreational Swimming

Lake and Sport courts.

Short description of current condition and required reconstruction works on each NP Sutjeska

asset recommended for long-term outsourcing is given in following chapters, while detailed

description of current condition and required reconstruction works on each asset considered for

long-term outsourcing is given in Appendix II – Detailed technical Description of NP Sutjeska’s Assets.

For the purpose of description of current condition and required reconstruction works on each

considered asset, related to construction, interior, facade, electro, hydro and machinery

installations, the following rankingwas used:

Demolished- installationsarenot present in the object, total reconstruction is needed in

order to bring it to operational level;

Poor- installationsarepresent but in non-functional condition, total reconstruction is needed

in order to bring it to operational level;

Relatively good- installation is present with functionality between 50%-80%, partial

reconstruction is needed in order to bring it to operational level; and

Good- installation is present with functionality between 80%-100%, partial

reconstruction is needed in order to bring it to operational level.

5.1.1 Hotel Mladost

Hotel Mladost is situated in central part of the NP Sutjeskaand covers an area of 2,187 m2. Hotel

Mladost is directly connected to main road Foča-Gacko.Parking for guests is provided in front of

Hotel Mladost. Hotel Mladost is located on a sloped terrain, on a lower level in comparison to the

main accesing road, and is on a sloped terrain. Hotel Mladost consists of ground floor, three

upper floors with the guests’ accommodation rooms and the attic.

Picture 1:Hotel Mladost

Environment surrounding Hotel Mladost is regularly maintained with green areas, asphalt

accessing road and parking lot. Outdoor lightening system and installations, and hydro

installations are present around the Hotel.


36

Overview of current condition and required interventions on Hotel Mladostin order to bring it to

operational level is given in table below.

Table 7: Current condition with required interventions on Hotel Mladost

Asset’s component Current condition Required intervention Construction Good Partial reconstruction Interior Relatively good Partial reconstruction Facade Good Partial reconstruction Electro installations Good Partial reconstruction Hydro installations Relatively good Partial reconstruction Machinery installations Demolished Total reconstruction

5.1.2 Hotel Sutjeska

Hotel Sutjeskais situated in NP Sutjeska and located in southern part of the NP Sutjeska. Hotel

Sutjeska covers 1,194 m2. Main road Foča-Gacko is passing through the Hotel’s lot. Comparing to the main road, Hotel Sutjeska is levelled lower and is on a sloped terrain. Parking lot is next to

the hotel building and is shown in picture below together with geographic location of the Hotel.

Picture 2:Hotel Sutjeska- current conditionPicture 3:Location of Hotel Sutjeska

Hotel was built in 1960’s and rebuilt and renovated in years 1982 and 1983. Environment

surrounding the Hotel is deterioratedincluding accessing road and parking lot which is

devastated. Outdoor lightening system is devastated and is in non-functional condition. Hotel

Sutjeska consisted of basement, ground floor, three upper floors with guest rooms and the attic.

Overview of current condition and required interventions on Hotel Sutjeska in order to bring it to


Table 8: Current condition with required interventions on Hotel Sutjeska

Asset’s component Current condition Required intervention Construction Good Partial reconstruction Interior Demolished Total reconstruction Facade Demolished Total reconstruction Electro installations Demolished Total reconstruction Hydro installations Demolished Total reconstruction Machinery installations Demolished Total reconstruction

5.1.3 Central House

Central house is a building located in a central part of NP Sutjeska, covering area of 3,253 m2.It

consists of restaurant and central house building. Central house is directly connected to the main

road Foča-Gacko with parking lot provided in front of the object. Comparing to the main road,

Central House is levelled lower and is on a slope terrain.


37

Picture 4:Current condition of Central House`s exterior

Picture 5: Current condition of Central House`s interiror

Environmentsurrounding the Central House is grassy area, which isregularly mowed and in good

condition. Terraces have not been properly maintained and detritions are evident.

Overview of current condition and required interventions on Central House in order to bring it to


Table 9: Current condition with required interventions on Central House

Asset’s component Current condition Required intervention Construction Poor Total reconstruction Interior Poor Total reconstruction Facade Relatively good Partial reconstruction Electro installations Poor Total reconstruction Hydro installations Poor Total reconstruction Machinery installations Demolished Total reconstruction

5.1.4 Youth House

Youth House is located in central part of the NP Sutjeska and covers area of 3,192m2.Youth

House is directly connected to main road Foča-Gacko. Comparing to the main road, Youth House

is levelled lower and is on a slope terrain. Entrance to the Youth House follows the course of the

terrain and is placed lower on east side. On west side of the object, amphitheatre is located.


38

Picture 6:Current condition of Youth House

Environment surrounding Hotel isdeteriorated including accessing road and parking lot which is

devastated. Outdoor amphitheatre with its stage and sitting area is severely damaged too.

Outdoor lightening system is devastated and in non-functional condition.Two reception halls were

placed in Youth House, larger one had capacity of receiving 400 guestswhile smaller one had

capacity ofreceiving 50 guests. Behind the Youth House circular stage and open type

amphitheatre were builton a slope terrain. Being a part of Youth House amphitheatre is

connected with it.

Overview of current condition and required interventions on Youth House in order to bring it to


Table 10:Current condition with required interventions on Youth House

Asset’s component Current condition Required intervention Construction Demolished Total reconstruction Interior Demolished Total reconstruction Facade Demolished Total reconstruction Electro installations Demolished Total reconstruction Hydro installations Demolished Total reconstruction Machinery installations Demolished Total reconstruction

5.1.5 Restaurant Jezero

Restaurant Jezero is located in northern part of the NP Sutjeska.Restaurant Jezero is located next

to the Recreational Swimming lake andsport courts, and is indirectly connected to main road

Foča-Gacko. Restaurant Jezero is built on slope terrain and is following course of the terraing.

Parking lot for guests is placed in front of the Restaurant Jezero. Restaurat Jezero consists of

basement, ground floor and attic.


39

Picture 7:Current condition of Restaurant Jezero

Overview of current condition and required interventions on Restaurant Jezero in order to bring it

to operational level is given in table below.

Table 11:Current condition with required interventions on Restaurant Jezero

Asset’s component Current condition Required intervention Construction Good Partial reconstruction Interior Good Partial reconstruction Facade Relatively good Partial reconstruction Electro installations Good Partial reconstruction Hydro installations Good Partial reconstruction Machinery installations Demolished Partial reconstruction

5.1.6 Pavilion A

Pavilion A is situated in central part of NP Sutjeska. Pavilion A is directly connected to the road

connectingNP Sutjeska to the main road Foča-Gacko. Pavilion A is built on a slope terrain and is

levelled lower than the road. Natural environment surrounding Pavilion A is regularly maintained

together with accessing paths. Pavilion A consists of ground floor and one upper floor with

guests’ accomodationrooms.

Picture 8:Current condition of Pavilion A`sinterior and exterior

Pavilion A was built in 1975 and renovated in 2006. Object is in functional condition.

Overview of current condition and required interventions on Pavilion A in order to bring it to


Table 12: Current condition with required interventions on Pavilion A

Asset’s component Current condition Required intervention Construction Good Partial reconstruction Interior Good Partial reconstruction


40

Facade Relatively good Partial reconstruction Electro installations Good Partial reconstruction Hydro installations Good Partial reconstruction Machinery installations Good Partial reconstruction

5.1.7 Pavilion B

Pavilion B is located in central part of NP Sutjeska. Pavilion B is indirectly connected tomain road

Foča-Gackoby walking paths. Guest staying in Pavilion B can use parking lot in front of the

Central House, which is connected to Pavilion with walking path. Pavilion B is built on a sloped

terrain and is levelled lower comparing to theaccesing road. Pavilion B consists of only ground

floor.

Picture 9:Facade of Pavilion B

Natural environment surrounding Pavilion B is deterioratedwith visible detritions onaccessing

concrete paths. Outdoor lightening installations are demolished, while condition of underground

installations should be further investigated. Manholes and metal covers for sewage are also

damaged.

Overview of current condition and required interventions on Pavilion B in order to bring it to


Table 13:Current condition with required interventions on Pavilion B

Asset’s component Current condition Required intervention Construction Good Partial reconstruction Interior Good Partial reconstruction Facade Relatively good Partial reconstruction Electro installations Good Partial reconstruction Hydro installations Good Partial reconstruction Machinery installations Good Partial reconstruction

5.1.8 Pavilion C

Pavilion C is situated in central part of NP Sutjeska. Pavilion C is connected to Central House and

the rest of the NP Sutjeska by walking paths. Object is built on a slope terrain and is levelled

lower than the acccesingroad. Pavilion C is surrounded with natural environment and has

accessing paths.


41

Picture 10:Current condition of Pavilion C`sinterior and exterior

Overview of current condition and required interventions on Pavilion C in order to bring it to


Table 14:Current condition with required interventions on Pavilion C

Asset’s component Current condition Required intervention Construction Good Partial reconstruction Interior Demolished Total reconstruction Facade Poor Total reconstruction Electro installations Demolished Total reconstruction Hydro installations Demolished Total reconstruction Machinery installations Demolished Total reconstruction

5.1.9 Pavilion D

Pavilion D is situated in central part of NP Sutjeska and. Pavilion D is indirectly connected to rest

of the NP Sutjeska by walking paths. Parking for Pavilion guests is provided in front of the Central

House. Object is built on a terrain which is close to the river Sutjeska. Pavilion D is surrounded

with natural environment and has accessing paths. Pavilion D is consists of ground floor, one

upper floor and the attic.

Picture 11:Current condition of Pavilion D

Pavilion D was built in 1975 with main function of serving in hospitality and tourism sector.

Pavilion D is currently in non-functional condition.

Overview of current condition and required interventions on Pavilion D in order to bring it to


Table 15:Current condition with required interventions on Pavilion D

Asset’s component Current condition Required intervention Construction Good Partial reconstruction Interior Poor Total reconstruction Facade Poor Total reconstruction Electro installations Demolished Total reconstruction


42

Hydro installations Demolished Total reconstruction Machinery installations Demolished Total reconstruction

5.1.10 Pavilion F

Pavilion F is located in central part of NP Sutjeska. Pavilion F is indirectly connected to the rest of

the NP Sutjeska by walking paths. Parking for Pavilion F guests is provided in front of the Central

House. Object of Pavilion F is built on a slope terrain and is levelled lower than theaccesing road.

Pavilion F is surrounded with natural environment and has accessing paths.

Picture 12:Current condition of Pavilion F`sexterior

Picture 13: Current condition of Pavilion F`s interior

Pavilion F was built in 1980 with main function of serving in hospitality and tourism sector.

Pavilion F is currently in non-functional condition. Overview of current condition and required

interventions on Pavilion F in order to bring it to operational level is given in table below.

Table 16: Current condition with required interventions on Pavilion F

Asset’s component Current condition Required intervention Construction Poor Total reconstruction Interior Demolished Total reconstruction Facade Poor Total reconstruction Electro installations Demolished Total reconstruction Hydro installations Demolished Total reconstruction Machinery installations Demolished Total reconstruction

5.1.11 Pavilion G

Pavilion G is located in central part of NP Sutjeska. Pavilion G is indirectly connected to the rest

of the NP Sutjeska with walking paths. Parking for Pavilion G guests is provided in front of the

Central House. Object of Pavilion G is built on a slope terrain and is levelled lower than

theaccesing road. Pavilion G is surrounded with natural environment and has accessing paths.


43

Picture 14:Current condition of Pavilion G`s exterior

Pavilion F was built in year 1980 with main function of serving in hospitality and tourism sector.

Overview of current condition and required interventions on Pavilion G in order to bring it to


Table 17:Current condition with required interventions in Pavilion G

Asset’s component Current condition Required intervention Construction Relatively good Partial reconstruction Interior Poor Total reconstruction Facade Poor Total reconstruction Electro installations Poor Total reconstruction Hydro installations Demolished Total reconstruction Machinery installations Poor Total reconstruction

5.1.12 Bungalows

Two Camping Houses are located in central part of the NP Sutjeska; on left side of the river

Sutjeska.

Picture 15:Current condition of Bungalow`s interior and exterior

Natural environment surrounding Bungalows is regularly maintained. All of the accessing roads

and paths are well mantained. Bungalows were reconstructed in 2013. Small interior works have

been done after year 2013.

Overview of current condition and required interventions on Bungalows in order to bring it to


Table 18: Current condition with required interventions on Bungalows

Asset’s component Current condition Required intervention Construction Good Partial reconstruction Interior Good Partial reconstruction Facade Good Partial reconstruction


44

Electro installations Good Partial reconstruction Hydro installations Good Partial reconstruction Machinery installations Poor Total reconstruction

5.1.13 Camp

Camp is located in central part of the NP Sutjeska; on left side of the river Sutjeska, above the

Bungalows. Camp is indirectly connected to main road Foča-Gacko through accessing roads and

Hotel Mladost parking lot.Camp is in functional condition and only used during summer season.

Picture 16:Current condition of Camp

Table 19: Current condition with required interventions onCamp

Asset’s component Current condition Required intervention Terrain Good Partial reconstruction Hydro installations Good Partial reconstruction

5.1.14 Recreational swimming lake

Recreational swimming lake is located north-west from the central football pitch and other sport

courts. Being close to sport courts recreational swimming lake could be consideredas one

segment of sports complex.

Pictures below are showing condition of recreational swimming lake in summer time, when it is

full and opened for users.

Picture 17:Location of Recreational Swimming Lake


45

Picture 18:Current condition of Recreational Swimming Lake

Recreational swimming lake was built in 1978 and renovated in 2013. Swimming lake is located

in northern part of the NP Sutjeska, next to the sport courts and Restaurant Jezero. Recreational

swimming lake is in functional condition and openedonly during summer season.

Table 20: Current condition with required interventions on Recreational Swimming Lake

Asset’s component Current condition Required intervention Construction Good Partial reconstruction Hydroinstallations Good Partial reconstruction Machinery installations Good Partial reconstruction

5.1.15 Sport courts

Sport courts are located in northern part of the NP Sutjeska;at the right side of the river

Sutjeska.Sport courts are indirectly connected to main road Foča-Gacko and main parking lot in

NP Sutjeska.

Sport courts were built in1976 and cover around 7,500 m2. Complex of sport courts consists of:

Big football pitch covered with grass;

Athletic track;

Asphalt sports pitch for handball, and basketball/volleyball;

Three pitches for tennis located south from the football pitch;

Terrains for mini golf and bowling.

Sport courts were built in 1976 and are currently in functional condition.

Picture 19: Map of the Picture 20:Football pitch

Sport courts


46

Picture 21: Combined sport courts

5.2 Accounting value of the assets

Accounting value or book value of the assets is an asset value recorded in financial documents of

the company.Accounting value based on the original cost of the asset less accumulated

depreciation cost through the years of use.

Based on the NP Sutjeska Balance sheet for 2016, overview of the accounting values of the

assets suggested for the long-term outsourcing is given in the table below.

Table 21: Accounting value of NP Sutjeska assets recommended for long-term outsourcing

Accounting value of assets suggested for long-term outsourcing

Value (BAM `000)

Share in total assets

%

Hotel "Mladost" 2,781.70 25.62

Hotel " Sutjeska" 1,850.31 17.04

Restaurant "Jezero" 220.83 2.03

Central House 578 5.33

Pavilion A 469.37 4.32

Pavilion B 225.42 2.08

Pavilion C 198.63 1.83

Pavilion D 141.96 1.31

Pavilion F 54.43 0.50

Pavilion G 54.43 0.50

Youth house 68.22 0.63

Bungalow 53.67 0.49

Sport courts 1,125.00 10.36

Recreational swimming lake 3,024.00 27.86

Camp 9.02 0.08

Total value of assets recommended for oursourcing 10,855.00 100.00 Source: NP Sutjeska Management

From the table above it is notablethat, in 2016, total accounting value of NP Sutjeska assets

recommended for long-term outsourcing was 10.8 mBAM. Accounting values of Hotel Mladost,

Hotel Sutjeska and Recreational Swimming Lake had highest share in total accounting value of

NP Sutjeska assets recommended for long-term outsourcing in the same period.

In 2016, accounting value of Hotel Mladostwas 25.6% of total accountingvalue of NP Sutjeska

assets suggested for long-term outsourcing. Hotel Sutjeska`s accounting value was 17.0% of

total accountingvalue of assets suggested for long-term outsourcing, whileaccounting value of


47

Recreational Swimming Lake was 27.9% in totalaccounting value of assets suggested for long-

term in the same period.

On the other side, accounting values of Pavilion F, Pavilion G, Bungalow and Youth House

participated leastin total accounting value of NP Sutjeska assets suggested for long-term

outsourcing.

5.3 Estimate ofmarket value of NP Sutjeska’s assets

5.3.1 Methodology for market value appraisal

Market valuerepresentsthe highest amount of money for which an asset could be sold at a free

market. Market value of the asset is commonly estimated using one or more of the following

approaches:

Market approach estimates the market value of an asset through comparison oftransaction

prices or advertised prices of a similar asset in terms of structure, location and purpose of

use.Market approach is usually applied when there is a liquid market providing a sufficient

number of sales or offering prices of comparable assets that can be independently verified

through reliable sources.

Cost approach is based on the assumption that the investor would not pay more for an

asset than he would pay for to aquirean asset of the same or similar usefulness. The Cost

approach is commonly used for appraisalof assets which are currently being under

construction.

Income approach- is based on the expected future benefits after investing into asset. In

these terms, an asset’s market value can be seen as benefits from future cash flows over

a useful life time of an acquired asset.This approach is applied through utilisation of a

present value method, such as the Discounted Cash Flowthrough which the present value

of estimated future cash flows for the expected life of the asset is determined. Cash flows

are then discounted at a defined discount rate that reflects the relative risk of achieving

the cash flows and the time value of money.

When selecting the valuation approach, we took into consideration the following:

Considering that assets of NP Sutjeska recommended for long-term outsourcing were

constructed on average 45 years ago, when different construction materials and standards

prevailed,estimation of their market value through Cost approach based on currently

prevailing materials and standards would result in their unreasonably higher market value.

Market approach could not be applied since there isn’t a sufficient number of comparable

assets in close vicinity of NP Sutjeska that would allow the Consultants to build a sample

with a suficient number of transactions.

Therefore, Income approach was used for the appraisal of market value of NP Sutjeska’s assets recommended for long-term outsourcing.


48

5.3.2 Key Assumptionsfor Financial Projections

As previously explained in chapter 5.1, some of NP Sutjeska’s assets recommended for long-term

outsourcing are in functional condition requiring partial reconstruction, while some of them are in

non-functional condition and require complete reconstruction in order to bring them to

operational level.

Based on the current condition of assets suggested for long-term outsourcing, estimate of

required level of investment to bring them to operational level was made, being a prerequisite for

generating revenues through their use. With an assumption that estimated investments in assets

recommended for long-term outsourcing will be implemented, projection of revenues and

operational expenses for suggested assets was made for the period of 20 years. Assumptions

which were basis for projection of revenues and operational expenses for considered assetsare

described in chapter 5.5.

Projections of expected revenues and operational expenses for considered assets were based on

historical data related to financial and other operations of NP Sutjeska in the period 2015-2016

as well as assumptions regarding future revenues and operational expenses provided by the

Management of NP Sutjeska. In addition, Central House, Youth House, Recreational swimming

lake and Sport courts, due to their specific usability, are not expected to be self-sustainable.

Therefore, they are assumed to be auxiliary assets of Hotel Mladost and Hotel Sutjeska for the

purpose of enriching the provided services, and consequently all revenues and operational

expenses related to aforementioned assets are allocated equally to Hotel Mladost and Hotel

Sutjeska.

5.3.2.1 Assumptions related to projections of revenues

Projections of expected revenues are based on the following assumptions:

Room revenues:

o The average annual occupancy rate of beds in NP Sutjeska was 25% in the period

2014-2016. Based on the information provided by officials of NP Sutjeska, the

annual occupancy rate of beds could be doubled if assests currently used for

provision of hospitality services were at fully-operational level. However, after

reconstruction, room capacity would be doubled as Hotel Sutjeska would become

operational once again. Therefore it is assumed that occupancy rate of beds will

remain 25% for all available hospitality assets (hotels, pavilions, bungalow and

camp).

The average price for overnight stays in hotels and similar accommodation facilities

in close vicinity of NP Sutjeska is 35 BAM per overnight stay without breakfast.

However, it is assumed that price for overnight stay in Hotel Mladost and Hotel

Sutjeska will remain at current level of 20 BAM per overnight stay per bed without

breakfast and would annually increase by 10% until reaching the price of 35 BAM.

It is assumed that the prices for overnight stay in pavilions and camp will remain at

current level of 15 BAM and 10 BAM respectively per bed per overnight stay and

would annually increase by 10% until reaching the price of 30 BAM and 20 BAM

respectively. It is assumed that the price for overnight stay in bungalow will remain

at current level of 15 BAM per overnight stay and would annually increase by 10%

until reaching the price of 30 BAM. Assumption is based on the expectation that NP

Sutjeska would be mainly visited by youth, environment researchers, hikers and

similar visitor categories preferring cheaper accommodation.


49

Based on the data provided by the representatives of NP Sutjeska, Hotel Mladost

had cca 82 operational beds in period 2014-2016. It is assumed that Hotel Mladost

after investment will have the same bed occupancy rate of 25%, as during the

period 2014-2016. However number of beds will be doubled, so Hotel Mladost will

have 164 beds available for guests’ accommodation. Therefore, it is expected that

increase in bed capacity will result in significant increase in room revenues in

relation to room revenues from the period 2014-2016. Similar to Hotel Mladost,

other hospitality facilities - Hotel Sutjeska, pavilions, bungalow and camp, are

expected to be operating in their full capacities. After required investments Hotel

Sutjeska is expected to have 126 beds, Pavilion A 20 beds, Pavilion B 38 beds,

Pavilion C 30 beds, Pavilion D 12 beds, Pavilion F 8 beds, Pavilion G 14 beds,

Bungalow 8 beds and Camp to have 100 availble camping places.

Food and Beverage revenues from guests staying in the Hotels:

o In period 2014-2016, food and beverage revenues from guests staying in Hotel

Mladost amounted to 151% of the room revenues. Based on these it could be

concluded that NP Sutjeska was mainly visited by guests preferring cheaper

accommodation and quality food, which is also expected to be continued in the

future period considering that territory of NP Sutjeska is suitable for sightseeing,

hunting, camping, etc. Therefore, it is assumed that the food and beverage

revenues from guests staying in hotels Mladost and Sutjeska would remain 151% of

the room revenues for the considered period.

o In period 2014-2016 food and beverage revenues from other guests in Hotel

Mladost amounted to 13% of total revenues of Hotel Mladost i.e. kBAM 38. It is

assumed that food and beverage revenues from other guests in Hotel Mladost and

Sutjeska would remain at the 2016 level, with an annual increase of 3%.

o Current annual growth of food and beverage revenues at Restaurant Jezero is 10%.

Based on data provided by officials of NP Sutjeska these revenues could be doubled

after reconstruction of Restaurant Jezero. Therefore, it is assumed that kitchen

revenues at Restaurant Jezero would be doubled (in line with the increase in the

number of rooms) after its reconstruction and would increase by 10% annually

during the considered period.

o It is assumed that Central House will be used as restaurant, serving food and

drinks during the conferences and events that are expected to be organized at

Youth House. It is expected that one conference/event per month will be organized

in Youth House; therefore Central House will be serving 1 lunchper monthduring

the conference/event,. It is assumed that in average 100 people will be attending

each conference/event. Assumed price of lunch is 20 BAM per person, and

assumed price of drinks is 10 BAM per person.

Conference/events revenues:

o As already desciribed, it is expected that the Youth House will be operating within

the Hotel Mladost and Hotel Sutjeska complex for enrichmentof offerings. It will be

used for organization of conferences/events.It is assumed that the Youth House will

have 1 conference/event per month, for the price of 1,000 BAM per

conference/event.It is assumed that additional 1 conference/event will be organized

in Youth House each year.


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5.3.2.2 Assumptions related to projections of operational expenses

Projections of expected operational expenses are based on the following assumptions:

Employee salary expense:

o In the period 2014-2016, Hotel Mladost had 1 employee per 4 rooms. This ratio is

used for the purpose of projections of number of employees in hotels Mladost and

Hotel Sutjeska, pavilions and bungalows.

o It is assumed that 1 employee will be working on Recreational swimming lake

seasonally or for 6 months per year.

o It is assumed that number of employees at Restaurant Jezero will remain at current

level of 11 employees.

o It is assumed that 1 employee would work at Camp and 1 employee at Sport

courts.

o In the period 2014-2016, average salary in NP Sutjeska was 833 BAM. It is

assumed that salary of 833 BAM would remain in on the samre level in the

projected period, increasing by 1% due to expected inflation and increase in living

expenses.

Food and Beverage expense

o In period 2014-2016, food and beverage expenses in Hotel Mladost amounted to

37.32% of the food and Beverage revenues. It is assumed that food and beverage

expenses in hotels Mladost and Sutjeska and Central house would remain 37.32%

of the food and beverage revenues for the considered period.

o In period 2014-2016, food and beverage expenses in Restaurant Jezero amounted

to 41.30% of the food and beverage revenues. It is assumed that these expenses

would remain 41.30% of the food and beverage revenues for the considered period.

Electrical energy expenses:

o Expenses for electrical energy are estimated based on expected annual

consumption of electrical energy by each considered asset and the market price of

electrical energy in Republic of Srpska of 0.21 BAM/kWh.

Heating energy expenses:

o It is assumed that wood pellets would be used for heating. It is assumed that

calorific value of wood pellets is 4.8 kWh/kg, while the average market price of

wood pellets in Republic of Srpska is 320 BAM/ton. Therefore, expenses for heating

are estimated based on expected annual consumption of heating energy by each

considered asset and the required amount of wood pellets paid according to

average price.

Maintenance expenses:

o Maintenance costs for hotels Mladost and Sutjeska are assumed to be 0.3% of total

operational expenses, for pavilions, bungalows and Restaurant Jezero are assumed

to be 1% of total operational expenses, and for Camp maintainance costs are


51

assumed to be 4% of total operational expenses, all based on historical data related

to maintenance of aforementioned assets.

o Annual maintenance costs for Central House, Youth House, Recreational Swimining

Lake and Sports terains are assumed to amount to 800 BAM, 800 BAM, 5,000 BAM

and 2,500 BAM respectively.

Investment maintenance expenses:

Investment maintenance includes regular reconstruction, repair or replacement of parts of

construction, roof, walls, ceilings, floors, facade, electro installations, hydro and machine

installations. Investment maintenance is assumed to be conducted every 10 years and is

expected to be 5% of initial investment required to bring assets to operational condition.

Based on estimated required investments, expected revenues and operational expenses,

depreciation expense and corporate tax expense, projection of the Cash Flowsfor every asset

recommended for long-term outsourcing was made for the period of 20 years.

Using the required level of investments and Regulation on annual depreciation rates in RS

(“Official Gazzete of RS”, no. 47/16), calculation of annual depreciation expenses for each

individual object suggested for outsourcing was made. In previously mentioned regulation,

annual depreciation rates for objects used for hospitality in tourism sector are ranging from 1.8%

to 10%, depending on the materials they were built from. Based on the types of materials that

most of the NP Sutjeska assets suggested for long-term outsourcing would be built from or

refurbished, the depreciation rate should be between 1.8% and 5%. For the purpose of

calculation of market value of considered assests, the average rate of 3.43% was used. Sports

terrains and recreational swimming lake`s annual depreciation was calculated using rate of

2.50% as stated in aforementioned regulation. Corporate tax rate in RS is 10%.

Estimated Net Cash Flows ofeach NP Sutjeska assets recommended for long-term outsourcing

were then discounted. The discount rate used for discounting cash flows is8.35%. The discount

rate reflects the weighted average cost of capital, both cost of raising capital from equity and

cost of raising capital from debt. The calculation of the discount rate is presented in Appendix III-

Profitability under different scenarios.

Additionally, we present the sensitivity analysis based on discount rate change between-1%

(upper value range i.e. optimistic scenario) and +3% (lower value range i.e. pesimistic scenario).

Sensitivity analysis provides an estimated range of Market values for each appraised asset.

Sum of the discounted Net Cash Flows of each asset recommended for long-term outsourcing

together with required level of investment and residual value of the asset, represents the Market

value of the asset. Residual value reflects the capacity of the remaining service potential of each

considered asset whose economic life is not yet completely exhausted.

Please note that the same assumptions were used both for the appraisal of Market value of the

assets and for long-term business projections from the viewpoint of a potential investor, with the

following differences:

For the projections presented from the viewpoint of a potential investor, we have included

a one-off concession fee of 3% applied to the amount of investment required to refurbish

the assets and an annual concession fee of 3% applied to revenues.

A concession period of 20 years has been assumed. No residual value has been calculated

in this case, as it has been assumed that, after the 20-year period, the assets would

return to the control of the RS.


52

5.3.3 Summary of Market value appraisal

Overview of market value of NP Sutjeska assets recommended for long-term outsourcing is given

in table below.

Table 22: Appraised market Value “as-if” of assets recommended for long-term outsourcing

BAM '000 Lower range Base scenario Upper range

Discount rate 11.35% 8.35% 7.35%

Hotel Mladost 8,660 11,965 13,560

Hotel Sutjeska 3,159 5,459 6,691

Restaurant Jezero 812 1,197 1,395

Pavilion A 61 113 138

Pavilion B 664 958 1,101

Pavilion C 79 214 279

Pavilion D - - -

Pavilion F - - -

Pavilion G 155 238 279

Bungalow 62 97 114

Camp 539 718 804

Appraised Market Value 14,191 20,959 24,361

Source: Consultant calculation *For assets where the sum of discounted net cash flows was negative,market value was appraised as 0

Please note that the appraised market values are based on the “as-if” assumption that the assets have been refurbished. Should there be no investment in refurbishment, the appraised values

would not apply.

5.4 Estimate of the required level of investment into NP Sutjeska’s assets to bring them to an operational level

Technical description of NP Sutjeska’s assets recommended for long-term outsourcing, together

with description of their current condition was given in chapter 5.1.Based on current condition of

aforementioned assets required level of reconstruction works to bring each asset to operational

level was estimated with corresponding level of investment into each asset. Neither

categorization change of the objects or their interior or exterior design was considered in the

estimatimation of required level of investments for considered assets. Estimate of required level

of investment into each considered asset was done through the value comparison method. This

method includes comparison of analyzed assets’ current condition to similar assets that have been recently built, adapted or reconstructed. Main parameters that were taken into account

include, but not limited to,size of the asset, usable area, total area, volume, height of the

building, height of ceiling, number of floors, quality of elements per construction phases, and

necessary level of investment per m2.

As a result, technical description of necessary works to be undertaken to bring assets to

operational level with estimated corresponding value of required investment per types of works

for each analysed asset was prepared.

The following table provides an overview of the required investments and construction works per

considered assets, while detailed description of required investments and construction works is

provided in Appendix II – Detailed technical Description of NP Sutjeska’s Assets.

Table 23:Type of works and required level of investment on NP Sutjeska`s assets suggested for outsourcing


53

Amount

Asset Type of reconstruction work BAM `000

Hotel Mladost

Preparatory works

255.52

Floor instalment works Carpentery works Ceramic tiles related works Facade works Machine installation works Equipment, devices andfurniture

Hotel Sutjeska

Preparatory works

2,486.45

Outdoor works Steel reinforced, concrete works Mansory works Tinplate works Insulation works Floor instalment works Tinsmith works Carpentery works Ceramic tiles related works Stone cutting works Facade works Drywall installations works Painting and decoration works Hydro installation works Machine installation works Equipment, devices and furniture

Central House

Preparatory works Outdoor works Steel reinforced, concrete works Mansory works Tinplate works Insulation works Floor instalment works Tinsmith works Carpentery works Ceramic tiles related works Stone cutting works Facade works Drywall installations works Painting and decoration works Hydro installation works Electrical installations Machine installation works Equipment, devices and furniture 885.06

Youth House

Preparatory works Outdoor works Steel reinforced, concrete works Mansory works Tinplate works Insulation works Floor instalment works Tinsmith works Carpentery works Ceramic tiles related works Stone cutting works 1,360.34


54

Amount


Facade works Drywall installations works Painting and decoration works Hydro installation works Electrical installations Machine installation works Equipment, devices and furniture

Recrational Swimming Lake

Preparatory works Outdoor works Steel reinforced, concrete works Mansory works Painting and decoration works Hydro installation works Electrical installations Equipment, devices and furniture 49.50

Recrational Swimming Lake

Preparatory works Athletic track and sports ground Renovation of installations Renovation of sports grandstands Repair of sports equipment Other works 289.99

Restaurant Jezero

Preparatory works

89.90

Tinsmith works Ceramic tiles related works Equipment, devices and furniture

Pavilion A

Preparatory works

67.50

Carpentery works Renovation of sanitary facilities: Hydro installation works Electro installation works Ceramic tiles related works

Preparatory works

223.29

Outdoor works

Pavilion B Steel reinforced, concrete works

Mansory works

Tinplate works

Insulation works

Floor instalment works

Tinsmith works

Carpentery works

Ceramic tiles related works

Stone cutting works

Facade works

Drywall installations works

Painting and decoration works

Hydro installation works

Electro installation works

Machine installation works Equipment, devices and furniture

Pavilion C

Preparatory works

301.12

Outdoor works Steel reinforced, concrete works Mansory works


55

Amount


Tinplate works Insulation works Floor instalment works Tinsmith works Carpentery works Ceramic tiles related works Stone cutting works Facade works Drywall installations works Painting and decoration works Hydro installation works Electro installation works Machine installation works Equipment, devices and furniture

Preparatory works

254.37

Outdoor works

Steel reinforced, concrete works

Mansory works

Wooden construction works

Tinplate works

Pavilion D Insulation works

Floor instalment works

Tinsmith works

Carpentery works

Ceramic tiles related works

Stone cutting works

Facade works

Drywall installations works

Painting and decoration works

Hydro installation works

Electro installation works

Machine installation works Equipment, devices and furniture

Pavilion F

Preparatory works

214.55

Outdoor works Steel reinforced, concrete works Prefabrication works Tinplate works Insulation works Floor instalment works Carpentery works Ceramic tiles related works Facade works Drywall installations works Painting and decoration works Hydro installation works Electro installation works Machine installation works Equipment, devices and furniture

Pavilion G

Preparatory works

88.53

Outdoor works Steel reinforced, concrete works Tinplate works


56

Amount


Carpentery works Ceramic tiles related works Facade works Machine installation works

Bungalow

Preparatory works

35.20

Outdoor works Steel reinforced, concrete works Masonry works Tinplate works Insulation works Floor instalment works Tinsmith works Carpentery works Ceramic tiles related works Stone cutting works Facade works Drywall installations works Painting and decoration works Hydro installation works Electro installation works Machine installation works Equipment, devices and furniture

Camp Preparatory works 15.00 Total required investments in NP Sutjeska 6,616.23 Source: Consultant calculation

5.5 Estimate of the economic feasibility of the investment for the

possible private partner/third party

Estimate of the economic feasibility of the investment for a possible private partner/third

partywas assessed from the aspect of a potential investor into considered assets of NP Sutjeska

through Internal Rate of Return (IRR) and Net Present Value (NPV).

As described in chapterTechnical description of NP Sutjeska’s assets and their current status,

certain interventions and investments into NP Sutjeska assets recommended for long-term

outsourcing are required in order to bring them to operational level. After realization of necessary

interventions and investments it is expected that these assets would generate revenues, such as

room revenues, kitchen, bar, etc., as well as operational expenses such as expenses for

employees salaries, food and beverage inventories, utilities, maintenace, etc.

As concluded in chapterAnalysis of options for outsourcing of NP Sutjeska’s assets, the only

viable option for outsourcing the considered assets to potential private investor is through

concession agreement. As prescribed in Law on Consession in Republic of Srpska(“Official

Gazzete of RS”, no. 59/13), when acquiring assests through a concession agreement, private

investor is obliged to: (i) pay one-time concession fee in the amount between 0.5% and 3% of

the total investment depending on the amount of total investment, and (ii) annual concession fee

in the amount of 3% of the total revenues generated through use of acquired assets. Therefore,

aforementioned concession fees were taken into account within financial analysis.

Based on aforementioned expected investment and operational costs and revenues, projection of

Cash Flows for each considered assets as well as for all assets was estimated for the period of 20


57

years. Based on estimated Cash Flows IRR and NPV were calculated and used as basis for

evaluation of financial viability of the project.

Theanalysis took into account three scenarios: Base, Pessimistic and Optimistic.All three

scenarios are based on same assumptions except for the annual occupancy rate of beds and

annual growth of price for room revenues, which are the key variables affecting the viability of

the project. In Base scenario annual occupancy rate of beds, based on discussion with the

Management of NP Sutjeska, is assumed to be 25% while annual growth of price for is assumed

to be 10% until reaching the price for overnight stay of 35 BAM for Hotel Mladost and Hotel

Sutjeska, 30BAM for Pavilions and Bungalows and 20 BAM for Camp. Annual occupancy rate of

beds and annual growth of price for room revenues in pessimistic and optimistic scenarios are

assumed to be 20% and 5%, and 30% and 15% respectively, until reaching the aforementioned

prices. Explanation of key assumptions related to occupancy rate of beds andannual growth of

price for room revenues as well as assumptions regarding other revenues and operational

expenses are provided in chapter Key Assumptions.

5.5.1 Profitability under different scenarios

Based on assumptions elaborated in chapter 5.3.2Key Assumptions, expected revenues and

expenses for each considered asset are estimated for the period of 20 years. Based on

expected revenues and expenses projections of Cash Flow for each considered asset as well

as Cash Flow at the level of whole project was prepared. In the following chapters, projections

of Cash Flows for Base, Pessimistic and Optimistic scenarios are provided, while projections of

Cash Flows for each individual asset are provided in Appendix III- Profitability under different

scenarios.

5.5.1.1 Base scenario

Overview of key assumption for base scenario calculations are given in table below.

Key assuptions Occupany rate

Annual growth rate of revenue

Price per bed

per overnight stay (BAM)

Nr. of employ

ees

Investment cost (BAM)

Investment

maintenance every

10 years, % of initial investmen

t

Electrical

energy kWh/ye

ar

Heating energy

kWh/year Maintenance

Hotel Mladost 25% 10% 20 27 255,523 5% 43,200 258,189 0.3% of operational

expenses

Hotel Sutjeska 25% 10% 20 21 2,486,453 5%

75,960 215,157 0.3% of operational

expenses

Central House - 1 event 1,500 - 1,770,120 5%

38,850 247,432 400

Youth House - 1 event 500 - 2,720,678 5%

31,200 134,474 400 Recrational swimming lake - 0% - 1 99,000

5% 14,286 - 2,500

Sports terrains - 0% - 1 579,990 5%

- - 1,250

Restaurant Jezero - 20% 11 89,900 5%

5,120 32,274 1% of operational

expenses

Pavilion A 25% 10% 15 4 67,495 5%


expenses

Pavilion B 25% 10% 15 3 223,287 5%


expenses

Pavilion C 25% 10% 15 4 301,115 5%


expenses

Pavilion D 25% 10% 15 2 254,374 5%


expenses

Pavilion F 25% 10% 15 1 214,549 5%


expenses

Pavilion G 25% 10% 15 2 88,533 5%


expenses

Bungalow 25% 10% 15 1 35,200 5%

220 6,455 1% of operational


58

expenses

Camp 25% 10% 10 1 15,000 5%

- - 4% of operational

expenses

The following table provides overview of Cash Flow for the whole project in Base case

scenario.


59

Table 24 Financial projections, base scenario, BAM '000

Cash flow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year

10 Year

11 Year

12 Year

13 Year

14 Year

15 Year

16 Year

17 Year

18 Year

19 Year

20 Operational revenue

- 1,229 1,347 1,476 1,618 1,774 1,945 2,132 2,183 2,209 2,227 2,246 2,267 2,289 2,313 2,339 2,367 2,397 2,430 2,466

Hotel Mladost - 299 329 362 398 438 482 530 530 530 530 530 530 530 530 530 530 530 530 530

Hotel Sutjeska

- 669 731 798 872 953 1,042 1,139 1,144 1,148 1,153 1,157 1,162 1,167 1,172 1,177 1,182 1,187 1,192 1,198

Restaurant Jezero

- 61 67 73 81 89 98 108 118 130 143 158 173 191 210 231 254 279 307 338

Pavilion A - 27 30 33 36 40 44 48 53 55 55 55 55 55 55 55 55 55 55 55

Pavilion B - 52 57 63 69 76 84 92 101 104 104 104 104 104 104 104 104 104 104 104

Pavilion C - 41 45 50 55 60 66 73 80 82 82 82 82 82 82 82 82 82 82 82

Pavilion D - 16 18 20 22 24 26 29 32 33 33 33 33 33 33 33 33 33 33 33

Pavilion F - 11 12 13 15 16 18 19 21 22 22 22 22 22 22 22 22 22 22 22

Pavilion G - 19 21 23 26 28 31 34 37 38 38 38 38 38 38 38 38 38 38 38

Bungalow - 11 12 13 15 16 18 19 21 22 22 22 22 22 22 22 22 22 22 22

Camp - 23 25 27 30 33 36 40 44 45 45 45 45 45 45 45 45 45 45 45

Operational expenses cash flow

- 1,144 1,190 1,239 1,292 1,351 1,414 1,483 1,497 1,589 1,527 1,543 1,559 1,576 1,594 1,613 1,633 1,655 1,677 1,779

Hotel Mladost - 476 499 523 550 578 610 644 647 728 654 658 661 665 669 672 676 680 684 765

Hotel Sutjeska

- 403 421 440 461 484 509 536 539 542 546 549 553 556 560 564 567 571 575 579

Restaurant Jezero

- 102 105 109 113 117 122 127 133 139 145 152 160 169 178 188 199 212 225 240

Pavilion A - 35 35 36 36 36 37 37 38 38 39 39 39 40 40 40 41 41 41 42

Pavilion B - 25 26 26 27 27 27 28 28 29 29 29 29 30 30 30 30 30 31 31

Pavilion C - 35 36 36 37 37 37 38 39 39 39 40 40 40 41 41 41 42 42 42

Pavilion D - 15 15 15 15 16 16 16 16 16 16 16 17 17 17 17 17 17 17 17

Pavilion F - 24 24 25 25 25 25 26 26 26 26 27 27 27 27 28 28 28 28 28

Pavilion G - 14 15 15 15 15 15 15 16 16 16 16 16 16 16 16 17 17 17 17

Bungalow - 11 11 11 11 11 12 12 12 12 12 12 12 13 13 13 13 13 13 13

Camp - 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Annual Consession Fee

- 52 57 63 69 75 83 90 92 93 94 94 95 96 97 97 98 99 101 102

Investment maintenance cash flow

- - - - - - - - - 64 - - - - - - - - - 64

Required investments cash flow

4,230 - - - - - - - - - - - - - - - - - - -


60


10 Year

11 Year

12 Year

13 Year

14 Year

15 Year

16 Year

17 Year

18 Year

19 Year

20

Hotel Mladost 256 - - - - - - - - - - - - - - - - - - -

Hotel Sutjeska

2,486 - - - - - - - - - - - - - - - - - - -

Restaurant Jezero

90 - - - - - - - - - - - - - - - - - - -

Pavilion A 67 - - - - - - - - - - - - - - - - - - -

Pavilion B 223 - - - - - - - - - - - - - - - - - - -

Pavilion C 301 - - - - - - - - - - - - - - - - - - -

Pavilion D 254 - - - - - - - - - - - - - - - - - - -

Pavilion F 215 - - - - - - - - - - - - - - - - - - -

Pavilion G 89 - - - - - - - - - - - - - - - - - - -

Bungalow 35 - - - - - - - - - - - - - - - - - - -

Camp 15 - - - - - - - - - - - - - - - - - - -

One-off concession fee

198 - - - - - - - - - - - - - - - - - - -

Net cash flow

(4,230) 85 157 237 326 423 531 650 686 556 700 703 708 713 718 725 733 742 753 623

Cumulative cash flow

(4,230) (4,145) (3,987) (3,750) (3,424) (3,001) (2,470) (1,821) (1,135) (580) 121 824 1,532 2,244 2,963 3,688 4,421 5,163 5,916 6,540

Amount Discount rate

IRR (%) 9.12%

NPV (BAM) 303 8.35%

Source: Consultant calculation


61

From the table above it can be seen that the net cash flow is expected to be positive beyond the

first year, throughout the period of 20 years, ranging from 85.2 kBAM in year 2 to 623.3kBAM in

year 20. On the other hand, cumulative cash flow starts out negative in year 1, in the

amountof4,229 mBAM. Due to the increase in annual net cash flows within the considered period,

the cumulative cash flow will also increase and will turn positive in year11.Cumulative cash flow

in year 20 is expected to be 623.3 kBAM.In this scenario, IRR is 9.12% and NPV at the discount

rate of 8.35% is 303 kBAM.


62

5.5.1.2 Optimistic scenario

Overview of key assumption for optimistic scenario calculations are given in table below.

Key assuptions

Occupany rate

Annual growth rate of

revenue

Price per bed

per overnight stay (BAM)

Nr. of emplo

yees

Investmen

t cost (BAM)

Investment maintenan

ce every 10 years,

% of initial investment

Electrical

energy kWh/ye

ar

Heating energy



expenses Hotel Sutjeska 30% 15% 20 21 2,486,453

5% 75,960 215,157

0.3% of operational expenses

Central House - 1 event 1,500 0 1,770,120 5%

38,850 247,432 400

Youth House - 1 event 500 0 2,720,678 5%


5%

14,286 - 2,500 Sports terrains - 0% - 1 579,990

5% - - 1,250

Restaurant Jezero - 20% 11 89,900

5% 5,120 32,274

1% of operational expenses

Pavilion A 30% 15% 15 4 67,495 5%


expenses

Pavilion B 30%

15% 15 3 223,287 5%


expenses

Pavilion C 30%

15% 15 4 301,115 5%


expenses

Pavilion D 30%

15% 15 2 254,374 5%


expenses

Pavilion F 30%

15% 15 1 214,549 5%


expenses

Pavilion G 30%

15% 15 2 88,533 5%


expenses

Bungalow 30%

15% 15 1 35,200 5%


expenses

Camp 30%

15% 10 1 15,000 5%


expenses

The following table provides overview of Cash Flow for the whole project in Optimistic scenario.


63

Table 25 Financial projections, optimistic scenario, BAM '000

Cash flow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Year 8

Year 9

Year 10

Year 11

Year 12

Year 13

Year 14

Year 15

Year 16

Year 17

Year 18

Year 19

Year 20

Operational revenue

- 1,445 1,652 1,889 2,162 2,475 2,558 2,581 2,606 2,635 2,667 2,704 2,746 2,793 2,846 2,907 2,977 3,056 3,147 3,250

Hotel Mladost - 359 413 475 546 628 628 628 628 628 628 628 628 628 628 628 628 628 628 628

Hotel Sutjeska - 784 892 1,016 1,157 1,320 1,324 1,328 1,333 1,337 1,342 1,346 1,351 1,356 1,361 1,366 1,371 1,376 1,381 1,387

Restaurant Jezero

- 61 70 80 92 106 122 140 162 186 214 246 283 325 374 430 494 568 654 752

Pavilion A - 33 38 43 50 57 66 66 66 66 66 66 66 66 66 66 66 66 66 66

Pavilion B - 62 72 83 95 109 126 126 126 126 126 126 126 126 126 126 126 126 126 126

Pavilion C - 49 57 65 75 86 99 99 99 99 99 99 99 99 99 99 99 99 99 99

Pavilion D - 20 23 26 30 34 40 40 40 40 40 40 40 40 40 40 40 40 40 40

Pavilion F - 13 15 17 20 23 26 26 26 26 26 26 26 26 26 26 26 26 26 26

Pavilion G - 23 26 30 35 40 46 46 46 46 46 46 46 46 46 46 46 46 46 46

Bungalow - 13 15 17 20 23 26 26 26 26 26 26 26 26 26 26 26 26 26 26

Camp - 27 31 36 41 47 54 54 54 54 54 54 54 54 54 54 54 54 54 54


- 1,213 1,288 1,372 1,468 1,577 1,595 1,612 1,630 1,728 1,672 1,695 1,721 1,750 1,781 1,816 1,854 1,898 1,946 2,077

Hotel Mladost - 515 552 595 644 700 703 707 710 791 717 721 724 728 731 735 739 742 746 828

Hotel Sutjeska - 432 462 495 534 577 580 584 587 590 594 597 601 605 608 612 616 619 623 627

Restaurant Jezero

- 102 107 112 118 125 133 142 152 164 177 192 209 229 252 277 307 341 380 425

Pavilion A - 35 35 36 36 37 38 38 38 39 39 39 40 40 40 41 41 41 42 42

Pavilion B - 26 26 27 27 28 29 29 29 29 30 30 30 30 30 31 31 31 31 32

Pavilion C - 35 36 37 37 38 38 39 39 39 40 40 40 41 41 41 42 42 43 43

Pavilion D - 15 15 15 16 16 16 16 16 16 17 17 17 17 17 17 17 17 17 18

Pavilion F - 24 25 25 25 25 26 26 26 26 27 27 27 27 27 28 28 28 28 29

Pavilion G - 14 15 15 15 15 16 16 16 16 16 16 16 16 17 17 17 17 17 17

Bungalow - 11 11 11 11 12 12 12 12 12 12 12 13 13 13 13 13 13 13 13

Camp - 3 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5


- 61 70 80 92 105 108 108 109 110 111 112 114 115 117 119 121 124 127 130


- - - - - - - - - 64 - - - - - - - - - 64


4,230 - - - - - - - - - - - - - - - - - - -

Hotel Mladost 256 - - - - - - - - - - - - - - - - - - -


64

Cash flow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Year 8

Year 9

Year 10

Year 11

Year 12

Year 13

Year 14

Year 15

Year 16

Year 17

Year 18

Year 19

Year 20

Hotel Sutjeska 2,486 - - - - - - - - - - - - - - - - - - -

Restaurant Jezero

90 - - - - - - - - - - - - - - - - - - -

Pavilion A 67 - - - - - - - - - - - - - - - - - - -

Pavilion B 223 - - - - - - - - - - - - - - - - - - -

Pavilion C 301 - - - - - - - - - - - - - - - - - - -

Pavilion D 254 - - - - - - - - - - - - - - - - - - -

Pavilion F 215 - - - - - - - - - - - - - - - - - - -

Pavilion G 89 - - - - - - - - - - - - - - - - - - -

Bungalow 35 - - - - - - - - - - - - - - - - - - -

Camp 15 - - - - - - - - - - - - - - - - - - -


198 - - - - - - - - - - - - - - - - - - -

Net cash flow (4,230) 232 364 517 694 897 963 969 976 843 995 1,009 1,024 1,043 1,065 1,092 1,122 1,159 1,201 1,108


(4,230) (3,998) (3,634) (3,117) (2,424) (1,526) (564) 405 1,381 2,223 3,219 4,227 5,252 6,295 7,360 8,452 9,574 10,733 11,934 13,042


IRR (%) 15.94%

NPV (BAM) 3,305 8.35%



65

As it can be seen from the table above, within the considered period, the net cash flow is

expected to be positive through the period of 20 years, ranging from 231.57 kBAM in year 2 to

1,1mBAM in year 20. On the other hand, cumulative cash flow is negative in year 1, amounting

to 4,2mBAM. Due to the increase in annual net cash flows within the considered period, the

cumulative cash flow will also increase and will turn positive in year 8, when it is expected to be

405.01 kBAM. In this scenario, IRR is 15.94% and NPV is 3,305mBAM.


66

5.5.1.3 Pessimistic scenario

Overview of key assumption for pessimistic scenario calculations are given in table below.

Key assuptions

Occupany rate


revenue

Price per bed per

overnight stay (BAM)

Nr. of emplo

yees

Investmen

t cost (BAM)

Investment maintenan

ce every 10 years,

% of initial investment

Electrical

energy kWh/ye

ar

Heating energy



expenses Hotel Sutjeska 20% 5% 20 21 2,486,453

5% 75,960 215,157

0.3% of operational expenses

Central House - 1 event 1,500 0 1,770,120 5%

38,850 247,432 400

Youth House - 1 event 500 0 2,720,678 5%


5%

14,286 - 2,500 Sports terrains - 0% - 1 579,990

5% - - 1,250

Restaurant Jezero - 20% 11 89,900

5% 5,120 32,274

1% of operational expenses

Pavilion A 20% 5% 15 4 67,495 5%


expenses

Pavilion B 20% 5% 15 3 223,287 5%


expenses

Pavilion C 20% 5% 15 4 301,115 5%


expenses

Pavilion D 20% 5% 15 2 254,374 5%


expenses

Pavilion F 20% 5% 15 1 214,549 5%


expenses

Pavilion G 20% 5% 15 2 88,533 5%


expenses

Bungalow 20% 5% 15 1 35,200 5%


expenses

Camp 20% 5% 10 1 15,000 5%


expenses

The following table provides overview of Cash Flow for the whole project in Pessimistic scenario.


67

Table 26 Financial projections, pesimistic scenario, BAM '000


10 Year 11

Year 12

Year 13

Year 14

Year 15

Year 16

Year 17

Year 18

Year 19

Year 20

Operational revenue

- 1,014 1,064 1,117 1,172 1,229 1,289 1,353 1,419 1,488 1,561 1,637 1,717 1,769 1,793 1,819 1,830 1,842 1,854 1,866

Hotel Mladost - 239 251 264 277 291 306 321 337 354 371 390 410 419 419 419 419 419 419 419

Hotel Sutjeska - 553 581 609 638 669 702 736 771 808 847 887 929 952 957 962 967 973 978 983

Restaurant Jezero

- 61 64 67 70 74 78 81 85 90 94 99 104 109 115 120 126 133 139 146

Pavilion A - 22 23 24 25 27 28 29 31 32 34 36 37 39 41 43 43 43 43 43

Pavilion B - 42 44 46 48 51 53 56 59 61 65 68 71 75 78 82 82 82 82 82

Pavilion C - 33 34 36 38 40 42 44 46 49 51 54 56 59 62 65 65 65 65 65

Pavilion D - 13 14 14 15 16 17 18 18 19 20 21 22 24 25 26 26 26 26 26

Pavilion F - 9 9 10 10 11 11 12 12 13 14 14 15 16 17 17 17 17 17 17

Pavilion G - 15 16 17 18 19 20 21 22 23 24 25 26 28 29 30 30 30 30 30

Bungalow - 9 9 10 10 11 11 12 12 13 14 14 15 16 17 17 17 17 17 17

Camp - 18 19 20 21 22 23 24 25 27 28 29 31 32 34 36 36 36 36 36


- 1,065 1,088 1,113 1,138 1,164 1,191 1,219 1,248 1,356 1,310 1,342 1,376 1,399 1,411 1,424 1,436 1,449 1,462 1,553

Hotel Mladost - 438 449 460 472 484 497 510 524 615 553 568 584 594 597 601 605 609 612 694

Hotel Sutjeska - 373 382 392 401 411 422 433 444 455 468 480 493 502 505 509 513 516 520 524

Restaurant Jezero

- 102 104 106 108 111 113 115 118 121 123 126 129 132 136 139 142 146 150 154

Pavilion A - 35 35 35 36 36 36 37 37 38 38 38 39 39 39 40 40 41 41 41

Pavilion B - 25 25 26 26 26 26 27 27 27 28 28 28 29 29 29 30 30 30 30

Pavilion C - 35 35 36 36 36 37 37 38 38 38 39 39 40 40 40 41 41 41 42

Pavilion D - 15 15 15 15 15 15 16 16 16 16 16 16 16 17 17 17 17 17 17

Pavilion F - 14 14 14 14 14 15 15 15 15 15 15 15 16 16 16 16 16 16 16

Pavilion G - 14 14 14 15 15 15 15 15 15 15 16 16 16 16 16 16 16 17 17

Bungalow - 11 11 11 11 11 11 12 12 12 12 12 12 12 12 13 13 13 13 13

Camp - 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4


- 43 45 48 50 52 55 58 60 63 66 70 73 75 76 77 77 78 78 79


- - - - - - - - - 64 - - - - - - - - - 64


4,230 - - - - - - - - - - - - - - - - - - -

Hotel Mladost 256 - - - - - - - - - - - - - - - - - - -


68


10 Year 11

Year 12

Year 13

Year 14

Year 15

Year 16

Year 17

Year 18

Year 19

Year 20

Hotel Sutjeska 2,486 - - - - - - - - - - - - - - - - - - -

Restaurant Jezero

90 - - - - - - - - - - - - - - - - - - -

Pavilion A 67 - - - - - - - - - - - - - - - - - - -

Pavilion B 223 - - - - - - - - - - - - - - - - - - -

Pavilion C 301 - - - - - - - - - - - - - - - - - - -

Pavilion D 254 - - - - - - - - - - - - - - - - - - -

Pavilion F 215 - - - - - - - - - - - - - - - - - - -

Pavilion G 89 - - - - - - - - - - - - - - - - - - -

Bungalow 35 - - - - - - - - - - - - - - - - - - -

Camp 15 - - - - - - - - - - - - - - - - - - -


198 - - - - - - - - - - - - - - - - - - -

Net cash flow (4,230) (51) (24) 4 34 65 99 134 171 68 251 295 341 370 382 395 394 393 392 249


(4,230) (4,281) (4,305) (4,301) (4,267) (4,202) (4,103) (3,969) (3,798) (3,730) (3,479) (3,184) (2,843) (2,473) (2,091) (1,696) (1,302) (910) (518) (269)


IRR (%) (0.47%)

NPV (BAM) (2,871) 8.35%



69

From the table above it can be seen that the net cash flow is expected to be positivefrom the

year 4 to the year 20, ranking from 3.98 kBAM to 248.89 kBAM, respectively. On the other hand,

cumulative cash flow is expected to be negative through the period of 20 years, ranging from

4,229 mBAM in year 1 to 269.06 kBAM in year 20.

In this scenario, IRR is negative 0.47% and NPV has a negative value of2,871 mBAM.


70

5.5.2 Estimated benefits and loses for the Public Enterprise “NP Sutjeska” and the RS Government resulting from the long-term outsourcing of the assets and services of

NP Sutjeska

After outsourcing of the considered assests it is expected that certain net losses and benefits will

incur from the aspect of Public Institution (PI) NP Sutjeska and the Government of RS. Looking

from the aspect of PI NP Sutjeska, it is expected that mainly financial benefits and losses will

incur as a result of outsourcing of the considered assets.Expected losses include inabilityof

further use the assests which would be outsourced, and consequently inability to generate

revenues through their use resulting in decrease in total revenues of PI NP Sutjeska. On the

other hand, expected benefits from the aspect of PI NP Sutjeska include decrease of total

operational expensesas a result of ousourcing of considered assets, such as: employee expenses,

electrical energy, heating, maintainance and other expenses related to functioning of suggested

assets.The Government of RS is the owner of all assets on the territory of NP Sutjeska, while PI

NP Sutjeska manages the assets and generates revenues through their use. As PI NP Sutjeska

does not generate sufficient revenues through its core activities to cover even operational costs,

it does not have the financial capacity to invest in modernizing the assets at its territory and in

improving the service assortment. In addition, the Government of RS regularly donates the funds

to PI NP Sutjeska in order to keep its liquidity at a sustainable level. Therefore, outsourcing of

considered assets is expected to only result in gaining benefits from the aspect of the

Government of RS. Key benefits from the aspect of the Government of RS include:

Modernisation of the assets in the ownership of the Government of RS as it is

expected12 that private party would invest in full reconstruction and rehabilitation of

considered assets;

More efficient management of the considered assets by private party;

Generation of revenues as a result of concession agreement; one-time concession fee

and annual concession fee;

Decrease in the amount of funds donated to PI NP Sutjeska as a result of decrease in

operational expenses of PI NP Sutjeska.

Aforementioned expected financial net losses and benefits from the aspect of PI NP Sutjeska and

the Government of RS are shown in the following table.

12Such an expectation could be formalized through the concession contract.


71

Table 27: Expected financial net losses and benefits from the aspect of PI NP Sutjeska as a result of outsourcing of assets

No. Item

Current Situation

After outsourcing of considered assets

BAM

1st Operating Year-2019

(BAM)

Average amount

per year for

considered period of

20 operating

years (BAM)

A REVENUES 1. Revenues of NP Sutjeska

1.1 Revenues of NP Sutjeska from hospitality, trade and tourism sector

357.88 - -

Hotel Mladost 293.61 - -

Restaurant Jezero 30.37 - -

Central House 18.97 - -

Pavilion A 7.00 - -

Pavilion B 2.10 - -

Bungalow 2.80 - -

Camp 3.03 - -

1.2 Revenues from Government RS 1,158.41 410.89 410.89 1.3 Revenues from other business activities 1,130.14 1,130.14 1,130.14 Total revenues of NP Sutjeska 2,646.43 1,541.03 1,541.03

B EXPENSES 1. Expenses of NP Sutjeska

1.1 Expenses of NP Sutjeska from hospitality, trade and tourism sector

464.05 - -

Hotel Mladost 203.70 - -

Employees 129.95 - -

Other expenses (materials, inventories, etc.) 73.75 - -

Restaurant Jezero 137.82 - -

Employees 109.96 - -

Other expenses (materials, inventories, etc.) 27.86 - -

Central House 10.00 - -

Employees 10.00 - -

Pavilion A 50.63 - -

Employees 49.98 - -

Other expenses (materials, maintainance,

etc.) 0.65 - -

Pavilion B

30.63

-

-

Employees

29.99 - -


etc.) 0.65 - -

Bungalow

20.64

-

-

Employees

19.99 - -

Other expenses (materials, maintainance, 0.65 - -


72

No. Item Current

Situation After outsourcing of considered assets

etc.)

Camp 10.64 - -

Employees 10.00 - -


etc.) 0.65 - -

1.2 Expenses from other business activities

1,971.41 1,541.03 1,541.03

Employees 1,040.14 609.76 609.76

Other expenses 931.27 931.27 931.27

Total expenses of NP Sutjeska 2,455.35 1,541.03 1,541.03

Net result 210.97 - - Source: Consultant calculation

Table 28: Expected financial net losses and benefits from the aspect of the Government RS as a result of outsourcing of assets

Item

Current Situation


No. BAM

1st Operating Year-2019

(BAM)

Average amount per

year for considered

period of 20

operating years

(BAM)

A REVENUES 1 Revenues of RS Government 1.1 Concesion fee - 250.80 92.29

Annual Concesion fee

52.31 82.37

One-time Payment

198.49 9.92

B EXPENSES

1. Expenses of RS Government for financing NP Sutjeska (1,158.41) (410.89) (410.89)

Net result (A-B) (1,158.41) (160.09) (318.60)


Total revenues of PI NP Sutjeska, in 2016, amounted to 2.64 mBAM, out of which 357 kBAM or

13% were generated through theuse of assets suggested for long-term outsourcing, 1.13 million

BAM or 43% were revenues from other business activities, while 1.16 million BAM or 44% were

revenues from donations of the Governement of RS.

As it can be concluded from the tables above, operational expenses of PI NP Sutjeska amounted

to 2.44 mBAM in 2016, out of which 464 kBAM or 19% were operational expenses generated

through use of assets recommended for long-term outsourcing and 1.97 mBAM or 81% were

operational expenses generated through other buseiness activities.

In 2016, PI NP Sutjeska had in total 140 employees, out of whom 38 employees were engaged

for the purpose of operating the assets recommended for long-term outsourcing and 102

employees were engaged in other business activities. After outsourcing of considered assets to

private party and bringing those to fully operational level, it is expected that private party would

have demand for 59 full-time employees. It is assumed that one of the conditions in concession

agreement between the Government of RS and private party would be obligation to private party


73

to engage, in first instance, employees currently working for PI NP Sutjeska. Therefore, total

number of employees of PI NP Sutjeska has been assumed to decrease by 59 employees, directly

resulting in decrease of operational expenses of NP Sutjeska by 589kBAM annually, taking into

account current average salary in PI NP Sutjeska of 833 BAM. In addition, total operational

expenses of PI NP Sutjeska would decrease by the amount of 464 thousand BAM, representing

operational expenses generated through use of assets suggested for long-term outsourcing.

Considering the aforementioned, it is expected that total operational expenses of PI NP Sutjeska

would amount to 1.54 mBAM annually, representing decrease of total operational expenses by

894 kBAM or 37% in relation to current amount of total operational expenses of PI NP Sutjeska.

On the other hand, it is also expected that total revenues of the PI NP Sutjeska would decrease

for the amount of 357 thousands BAM, representing the amount of revenues generated through

use of assets that would be outsourced and would no longer be used by PI NP Sutjeska.

Consequently, revenues of PI NP Sutjeska from operational activities are expected to be at the

level of 1.13 million BAM, representing the amount of revenues currently generated through

other business activities.

Aforementioned amount of revenues would still not be enough to cover operational expenses of

PI NP Sutjeska, thus the Government of RS is expected to continue financing PI NP Sutjeska for

the amount of 410 kBAM annually. However, this amount is lower by 747 thousands BAM or 65%

than the amount of funds that Government of RS currently allocates from the budget for the

purpose of financing PI NP Sutjeska. In addition, Government of RS would gain one-time

concession fee after signing the concession contract in the amount of 198kBAM and would

receive annual concession fee for the concession period. In first year after outsourcing the

considered assets, Government of RS is expected to receive annual concession fee in the amount

of 52 thousands BAM. Taking into account that Government of RS, in first year after ousourcing

of assets, is expected to finance PI NP Sutjeska in the amount of 410 thousands BAM and that

would receive annual concession fee of 52thousands, net actual outflows from budget of

Government of RS towards PI NP Sutjeska would be 358thousands BAM. As it is expected that

revenues generated by private party through use of outsourced assets would increase each year,

annual concession fee received by Government of RS is expected to increase accordingly, from

52thousands BAM in first operational year to 101 thousands BAM at the end of the projected

period. This is expected to result in annual decrease of actual outflows from the budget of

Government of RS towards PI NP Sutjeska, from 250thousands BAM in first operational year

to318nthousands BAM at the end of considered period of 20 years.

Recapitulation of cumulative effects on NP Sutjeska and on the budget of RS is presented in the

following table:


74

Table 29: Expected cumulative effect on NP Sutjeska and on the RS Government

Item

Current Situation


No. BAM ‘000

1st Operating

Year-2019 (BAM ‘000)

Average amount

per year for

considered period of

20 operating

years (BAM ‘000)

1 NP Sutjeska 210.97 0.00 0.00

2 RS Government (1,158.41) (160.09) (318.60)

NET EFFECT (947.44) (160.09) (318.60)

POSITIVE EFFECT 787.35 628.84

From the aspect of NP Sutjeska positive effects of assets outsourcing are reflected in decrease in

annual operational expenses in average amount of 894 kBAM.

From the aspect of Government of RS positive effects of NP Sutjeska assets outsourcing are

reflected in one time payment and annual concession payments which investor will be paying

during the concession period.

Generally, a positive effect of long-term outsourcing would be cca 787 kBAM in the first year of

operations and 629 kBAM in later years.


75

6 Road map – key steps and procedures recommended to be followed in the process of outsourcing the assets and services of the NP Sutjeska

6.1 “Road map” for the process of outsourcing NP Sutjeska’s assets



STEP RESPONSIBLE

PARTY

DEADLINE COMMENTS



2. Performing consultations and acquiring opinions of the institutions

Responsible

ministry

60 days

3. Adopting decision on starting the concession awarding procedure

Responsible

ministry

N/A


Competent

authority

N/A


Competent

authority

N/A


Commission for

Concessions

30 days


Competent

authority

N/A

8. Interested bidders provide their bids Interested bidders N/A


Concession

Commission

N/A


76



STEP RESPONSIBLE

PARTY

DEADLINE COMMENTS


Concession

Commission

N/A It is based on the

criteria set forth

by the public

invitation and

tender

documents, and

prepare a ranking

list of bidders.


Concession

Commission

30 days


Competent

authority

N/A

13. Signing of the concession agreement RS Government /

Interested bidder

N/A The submitter of

the initiative is

awarded with up

to 10% bonus

points.


77

7 Conclusionand final recommendations

From the legal perspective, we have explored both the Public-Private Partnership (“PPP”) and the concession as potential models of cooperation with a third party. Our analysis resulted in

concession being a favourable model for long-term outsourcing. The main reason for such a

conclusion is that assets that should be the target of long-term outsourcing are of a commercial

nature. As such, it would be difficult to prove that there is public interest for this project.

Additionally, from a practical point of view, the process of selection of a potential partner under

concession legal framework is less complex comparing to formal steps and competitive dialogue

process that have to be followed under PPP legislation.

Noteworthy, assets that are potentially to be outsourced are currently operated by JUNP

therefore prior to the entry of potential partner, practical possession of the assets should be

transfered to Republic of Srpska without encumberances.

From the economic perspective, we the consultants have carried out a wide range of analyis:

the appraisal of market value of assets that could be the subject of long-term outsourcing;

the appraisal of investment necessary to refurbish assets that could be the subject of

long-term outsourcing;

assessment of profitability of the project from the perspective of an average investor using

most common profitability metrics (NPV, IRR); and

assessment of benefits and losses to NP Sutjeska and to the Government of the Republic

of Srpska should assets be outsourced.

Total investment necessary to refurbish the aforementioned assets is 6.8 mBAM. The project is

positive from the perspective of a potential private investor, with positive IRR of 9.12% and

positive NPV of 303kBAM at the discount rate of 8.35% under the base case scenario.

Therefore, it can be concluded that, should NP Sutjeska and the Ministry decide to continue with

the long-term outsourcing of assets, concession is the preferrable process to proceed.

From the economic perspective, long-term outsourcing is an option that would likely be mutually

beneficial both for a prospective private partner and for NP Sutjeska and the Ministry.


78

8 Assumptions and Limiting Conditions

For the purpose of this Study, we have assumed that:

all documents submitted to us as originals are authentic and complete and that all of the

signatures and seals are genuine, all copy documents and scanned documents supplied to

us are complete and conform to the originals and no change has been made to any of the

supplied documents between the date designated on each document and the date hereof;

as of the dates of the copies of the extracts from the relevant registers held by relevant

authorities until the date of this study no entry has been made in relevant registries which

has not yet been reflected in the documents and that as of the date of the documents the

documents correctly reflect all matters which, pursuant to the legislation, can be

registered in the registers;

no change has been made to any document between the date designated on each

document and the date hereof;

all documents supplied to us as scans / photocopies or facsimile transmitted copies or

other copies conform to the originals and that such originals are authentic and complete;

any document referred to herein is duly authorized and executed by the parties thereto;

all real estates and assets of NP to potentially be subject to long-term outsourcing are

encompassed and listed in: the cadastral extract no. 5/1, cadastral municipality Tjentište, dated 19 December 2016; the cadastral extract no. 102/1, cadastral municipality Jeleč, dated 22 December 2016 and the cadastral extract no. 64/1, cadastral municipality Popov

Most, dated 22 December 2016;

all publicly available information on any administration, suspension of payments,

receivership, winding-up or similar insolvency proceedings in relation to the JUNP is

complete and accurate.

This Study is based on information provided by the Client, by the Ministry or by NP Sutjeska.

Financial statements and related information provided to us in the course of this engagement

have been accepted without any verification as fully and correctly reflecting the business

conditions and operating results of the relevant assets, properties, or businesses for the

respective periods, except as specifically noted herein. We have not audited, reviewed, or

compiled any financial information provided to us and, accordingly, we express no audit opinion

or any other form of assurance regarding such information.

This Study includes the appraisal of the assets under management of NP Sutjeska and the

appraisal of refurbishment costs of these assets. It should be noted that the purpose and the

conclusions of these appraisals are meant solely as supporting analysis for this Study and that

they should not be used for any other purpose.

Publicly available data is generally considered trustworthy and accurate, so we did not perform

additional checks in order to verify their accuracy.

Regarding projections of future business, we would like to point out that usually there are

differences between projected and actual results, as events and circumstances often do not come

to be as expected. Such differences (for example, differences in occupancy rates, in structure of

revenues, in discount rates etc) could potentially be material.

We would like to point out that the Client or NP Sutjeska are not in any way obliged to take

action based on the findings of this Study. The Consortium or its individual members cannot be

held liable for any actions taken by the Client or NP Sutjeska.

The scope of the Study does not include the obligation of the Consortium to provide an analysis

or an opinion on an actual offer presented by a private partner with regard to long-term


79

outsourcing of any assets of NP Sutjeska. The Consortium and its members are also not

responsible for further realisation of outsourcing. However, should the Client or NP Sutjeska need

such services, we would be prepared to discuss them.

We did not perform an audit, review or any other assurance procedures on the data used in the

Study. As a result, the Study does not contain an auditor's opinion or other form of assurance

regarding any financial information and should not be interpreted as such.

Services provided by us in connection with this Inception Report do not constitute (i) a fairness

opinion, (ii) investment advice, (iii) accounting or bookkeeping advice or (iv) provision of legal

services or expression of a legal opinion or a matter and should not be interpreted as such.

The analyses, advice, recommendations, opinions, or conclusions contained herein are for the

exclusive use of the Client, the Ministry and of NP Sutjeska and may not be used for any other

purpose by the Client or by any other party. Furthermore, the analyses, advice,

recommendations, opinions, or conclusions are not intended by the author and should not be

construed by the reader to be investment advice in any manner whatsoever.

Our fees are not contingent in any way upon the resulting conclusion presented in this Report

and neither we, nor any members of management or our employees, have any direct or indirect,

present or contemplated future interest in NP Sutjeska.


80

9 Appendix I – Terms and Definitions

Term Definition BAM Convertible mark, currency in RS kBAM Thousands of BAM mBAM Millions of BAM EUR Euro NP Sutjeska National Park Sutjeska UNDP or Client United Nations Development Programme Consortium or Consultants Deloitte, Enova and AK Dimitrijevic jointly


81

10 Appendix II – Detailed technical Description of NP Sutjeska’s Assets

10.1 Hotel Sutjeska

Hotel Sutjeska is situated in NP Sutjeska and located in southern part of the Park. Hotel covers

1194 m2 and is registered under code K.Č. 117/ 1 in official cadastre of municipality Tjentište with main road Foča- Gacko passing through the Hotel Sutjeska’s lot. Comparing to the main road, Hotel is levelled lower and is on sloped terrain. Parking lot is

provided next to the hotel building which is shown in picture below toghether with geographic

location.

Picture 22: Hotel Sutjeska- current situation Picture 23: Location of Hotel Sutjeska

Object was built in last century in 1960’s and rebuilt and renovated in 1982 and 1983. Plate stating the years of construction and reconstruction is placed on the entrance of the Hotel.

Environment surrounding Hotel is neglected including accessing road and parking which is

devastated. Outdoor lightening system is devastated and in non-functional condition. Condition of

installations located under the ground has to be more thoroughly investigated, while manholes

and metal covers have been demolished.

Characteristics of the building

Hotel Sutjeska is currently in non-functional condition. Based on the use of the object, Hotel is

categorised in hospitality and tourism sector of NP Sutjeska. Accommodation capacities of Hotel

Sutjeska included 63 double bedrooms with total 126 beds. Within the Hotel Sutjeska restaurant

and coffee shops were existing with capacity of 130 places inside and 48 places on terrace.

Table 30: Basic Hotel Sutjeska dimensions

Description Dimensions Ceiling

height

Usable area

m m m2

Outside dimensions – “L” shaped object

Nr. of floors B+G+3F+A

Basement 47.70x9.25+9.50x14.50 2.80

Ground floor 48.60x12.50+9.50x14.5 3.50


82


height

Usable area

m m m2

Floors (3) 43.00x10.50+14.40x9.50 2.65

Loft 43.00x10.50+14.40x9.50 2.65

Total usable area of

object

2,535.00


As it can be seen in table above, Hotel Mladost is consisted of basement, ground floor, three

floors and building loft. Each of the floors is consisted from different rooms, as it is shown in

table below.

Table 31: Hotel Sutjeska floor structure

Floor Rooms

Basement

- Corridor with spiral stairways - Male and female toilets (3 toilets each), entering hall, toilet with 6

urinals - Coffee bar - Furnace room - Showers, toilet and furnace supportive room - Dressing room, showers and toilet for staff - Pantry - Four rooms for rent (shop, souvenir shop etc.)

Ground floor

- Entrance corridor with stairways - Central hall, reception and stairways for upper floors - Male and female toilets (one cabin each), toilet entering hall - Living room with three separate sitting areas - Coffee shop with capacity of 26 seats - Restaurant with capacity of 90 seats - Banquet salon with capacity of 20 seats - Terrace with capacity of 48 seats - Kitchen block, kitchen with pantry, storage room, preparation

room - Offices - Emergency exit stairs

First floor - Central hall, stairways and hall ways towards east and west wing of the Hotel

- East wing with 19 double bedrooms and toilets - West wing with 6 double bedrooms and toilets - Two storage rooms - Emergency exit stairs

Second

floor - Central hall, stairways and hall ways towards east and west wing

of the Hotel - East wing with 19 double bedrooms and toilets - West wing with 2 double bedrooms and toilets - Two storage rooms - Emergency exit stairs

Third

floor - Ceiling on third floor is flat surface with curved edges, roof is

shingle coated with facade openings - Central hall, stairways and hall in east wing of the Hotel - East wing with 16 double bedrooms and toilets, 2 mini apartments


83

Floor Rooms

- Male and female toilets and showers - Emergency exit stairs

Loft -

Photographs presented below are showing current condition of the Hotel Sutjeska.Picture 3

represents the current condition of entrance with its floors, balconies, ceiling, walls and basement

area. On pictures below is shown the condition of sanitary elements, mainly condition of hydro

installations, ventilation and ceramic tiles. Picture number 5 shows current condition of walls,

ceiling, installations and finishing works in restaurant of Hotel Sutjeska. Ventilation channels and

installations are severely damaged and devastated.

Picture 24. Basement area

Picture 25: Sanitary block

Picture 26: Ground floor: restaurant, terrace, hallway, stairway


84

Object construction

Construction of the Hotel was built from concrete monolith elements. Monolith elements were

installed in walls, foundations and supporting pillarsand were made of concrete quality 30,steel

reinforcement bars400/500 and steel reinforcement grids. Object construction is supported by

twelve concrete retaining fields which measures 3.6 meter in diameter and spacing between

them is 4.5 meter.

Roofing of Hotel is constructed as a gable roof with one section being a mono pitched roof made

of fir and spruce wood. Final layer onroof was done with tegola shingle coating. Roof construction

relies onconcrete loft of 12cm thickness, with trapezoidal shape of cross-section. Half of the roof

is constructed as a flat surface, while side parts of the roof are constructed as a steel reinforced

concrete panels with slope of 30 degrees.

Side walls of the Hotel Sutjeska were constructed as a multilayer/sandwich walls. Walls were

built from hollow bricks and roofed with fine facade coating of tegola shingle. Inner walls were

built from hollow bricks also. Between floors, monolith concrete ribbed slabs of different

thicknesses were poured and reinforced with steelgrids.

Object foundations were reinforced and poured with concrete, having concrete spread footing

done as reinforcement. On the west side of the object, foundations were supported by concrete

slab-on-grade elements.

Description of current construction condition

Hotel Sutjeska`s construction is in generally good condition. Construction supportive elements,

pillars, walls, slabs and concrete beams are in good condition without visible shape deformation,

cracks etc. Construction of the roof and final roof coating under the weather influence

wasdemolished.

Picture 27: Hotel Construction and facade walls

Picture 28: Entrance and ground floor

Walls inside of the basement and ground floor are demolished in most part, while walls on the upper floors are in better condition. Visible detritions are in toilets, zones around doors and windows. Current condition of entrance hall, supportive pillars and general condition of building’s facade is notable from the pictures above. Also, it can be seen that the Hotel construction frame


85

is in non-demolished condition while mortar and final coatings of walls and stairways are demolished.

Hotel Sutjeska`s Interior

Flooring of the Hotel was built with floating floor construction system,wet screed baseand thermo

isolation. Depending on the use of the specific room, final floor coating was different.

Restaurants, cafes and hall ways had a floor made from polished stone. Ceramic tiles were

installed in kitchen, balcony, toilets and storage room. Hotel rooms had carpets that were laid

down on the floor as a final coat.Walls had skim coating layers with dispersive colour on top of it.

Ceilings on each floor were made from concrete with skip coat coming after it.Ceilings in

restaurant, living room, reception hall and banquet bar ceiling were designed as lowered wooden

ceiling. In the kitchen ceiling was lowered with plaster boards and painted with dispersive colour.

Doors and windows were made from fir and spruce wood with veneer coating.

Description of current interior condition

Hotel Sutjeska`s interior condition is bad. Total demolishment of doors and windows, floors and

lowered ceilings in basement and ground floor are evident. Ceramic tiles on walls and floors

suffered severe damages. Final coating on terraces which were made from the polished stone,

together with ground floor, have also been exposed to different weather conditions and have

resulted in detrition.

Picture 29: Basement

On the pictures above it can be seen all damages on installations, final coating and mainly damages that have occurred on basement interior. Some parts of ventilation channels are visible, while besides that none of the installations are not present in Hotel.

Picture 30: Interior of Hotel Sutjeska


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Pictures above are showing current condition of Hotel Sutjeska floor`s interior. Construction of the floors is in relatively good condition, while the installations and final coatings have been demolished.

Picture 31: Interior of Hotel Sutjeska (room)

Picture 32: Attic interiror

From the pictures presented above, interior look of the loft can been seen. Similar as on the other floors, all installations and final coatings on the walls, floors and ceilings are demolished. Also, all windows and doors are missing.

Picture 33: Walls, roof and ceiling on one of the floors


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Picture 34: Hotel Sutjeska stairways

Description of facade

Facade coating was done as a sandwich walls made of hollow bricks, tegola roof final coating with roof wooden construction. Facade coating of basement and ground floor are made of mortar and mineral facade with partial polished stone facade. Windows were using compound casement light system and were made from the wood.

Description of facade current condition

Facade coating is in very poor condition with total and on some places partialtegola shingle being damaged. Windows are not present on the building.

Picture 35: Facade on entrance to Hotel Sutjeska

Picture 36: Facade of Hotel Sutjeska

Besides facade damages, on pictures above, detritions of walls made from hollow bricks is visible.

Electro installations

Hotel Sutjeska was built according to building standards from the 1980s. Electro installations and

cabling were placed on the walls and ceilings under the layer of plaster. Each floor had separate

circuit box with classic circuit breakers. Hotel had high voltage network for different types of

users: lightening, telecommunications and emergency lightening. Accessing road and parking

have also been lightened.


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Picture 37: Remainings of electro installations in Hotel Sutjeska

Electro installations of Hotel Sutjeska are currently in demolished condition. Most of the electrical

cabals from the walls and ceilings, circuit boxes and circuit breakers are missing. Pictures above

are showing current condition of electro installations, where it is evident that circuit box exists

without its content. Also, from the pictures above, it can be seen that the wall sockets and cabals

powering them were taken out, together with lightening installations such as: light bulb, switches

etc.

Hydro installations

Hotel Sutjeska had water supply from local supply system. Hydro installations for hot and cold

water, rain collection and sewage installations were present in Hotel. Water heating was done

through the central heating system and heating boiler powered by electricity.

Sanitary equipment such as boilers, water taps and pipelines are demolished and in most part

are missing. Bad weather conditions and lack of proper maintenance has lead to current situation

where most of the hydro installations, inside of the Hotel, are missing. Water supply from the

local supply system is in non-functional condition, same as the sewage system.

Picture 38: Kitchen and toilets

Machinery installations

Machinery installations have included: heating, acclimatization and ventilation systems. Required

machinery and installations were present in different rooms with accordance to its purpose and

use. Entire Hotel was heated with central heating system distributed and heated with radiators.

Kitchen and sanitary rooms have had a separate ventilation system, while restaurant had

acclimatization system installed. Majority of machinery installations have been demolished, with

only remaining evident at sight: parts of ventilation system, radiators and pipelines. Complete

reconstruction of these installations is required.


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10.2 Central House

Central house is a building placed in a central part of NP Sutjeska, covering area of 3253 m2.It is

consisted of restaurant and central house building. Location of Central house is directly

connected to the main road Foča-Gacko with parking lot provided in front of the object.

Comparing to the main road, Central House is levelled lower and is on a slope terrain.

Picture 39: Central House with its restaurant

Surrounding the Central House are the grassy surfaces, which are mowed and in good condition.

Terraces have not been properly maintained and detritions are evident.

Condition of underground installations cannot properly be evaluated, without further inspections.

Visual inspections of parts such as sewage covers and manholes are suggesting that there are

damages and some of them are missing.

Characteristics of Central House

Object was built in period 1957-1963 and since then Central House was regularly maintained,

without major reconstructions. Object of Central House is being used for the purposes of tourism,

and is partially used. Laundry room and restaurant hall with gallery are functional, while kitchen

is out of function.

Table 32: Object characteristics of Central House

Description Dimensions Height Usable area

m m m2

Object shape “H” shape

Basement 23x9,25+9,25x14,30 3,50

Basement west (kitchen

and working area) 26,4x9,30+9,25x20,9 3,30-3,50

Basement east

(restaurant, emergency

room, terrace)

12,3x10+11,5x18+34,5x9,25 3,30-3,50

Floor/ Loft 9,25x18,25 3,00

Floors Basement+ Floor+ Loft

Total usable area of

object

1534,00


Description of rooms categorised by floors is given in table below.


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Table 33: Structure of floors of Central House

Floor Content

Basement - Electro room, furnace room, coil room, laundry, ironing room, maintenance room

Ground floor

Object has an “H” shape:

- West part of the object includes: work room, storage room, refrigerator room, 2 apartments and aggregator room

- Central part of the object includes: kitchen with sanitary block, wardrobe

- East part of the object includes: emergency room, restaurant with terrace

Floor - Floor is located in south-east part of the Central House and includes: central hall, one apartment and a club


Central House construction

Construction of basement and ground floor of Central House was built from concrete monolith

elements reinforced with steel. Basement walls are concrete walls reinforced with steel. Concrete

blocks were used with stone facade as a final layer. Roof of the Central House is mostly flat with

hydro and thermo isolation. South-East part of the roof was built as gable room with metal

sheets as a final layer on the roof.

Current condition of the roof construction is good. Main supportive elements such as pillars, walls

and concrete slabs are in good condition, without visible deformations or cracks. Under the

different weather elements exposure, isolation of the flat room is in most part destroyed. Gable

part of the roof was partially reconstructed and currently is in good condition.

Walls inside of the basement and ground floor are in good condition. All areas that have had a

ceramic tiles on it are demolished, while plaster on the walls and ceiling of basement is in bad

condition and is falling apart.

Water supply and water drain installations are need to be reconstructed.

Picture 40: Gable roof over the entrance of Central House

Central House`s interior

Floors of the Central House were built by monolith concrete system. Most of the Central House is

floored with exposed aggregate concrete, while restaurant`s floor is cover with Italian terrazzo.

Sanitary rooms have ceramic and exposed aggregate concrete floors. Terrace has final layer of

cement frosting on floor shaped with tile design. Walls of Central House have plaster coating with

dispersive colour as a final layer. Ceramic tiles were laid on walls of kitchen, toilets and furnace


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room. Ceilings were made from steel reinforced concrete, which have skim coat and dispersive

colour over it. Under the gable part of the roof ceiling is following shape of it. Construction of the

doors inside the Central House has final veneer made of fir and spruce plywood.

Condition of the interior is different in different rooms. In part of the Central House, where

kitchen and basement are, condition of walls, ceilings and floors is very poor. Condition of doors

and windows is mainly ruined.

Picture 41: Basement facilities

Pictures below are showing condition of kitchen, toilet and cooling refrigerator room. All of the installed equipment is ruined, demolished or missing. Ceilings, walls and floors have to be rebuilt and new equipment reinstalled.

Picture 42: Condition of kitchen, toilet and refrigerator room

Restaurant part of the Central House is in good condition. Floors, walls and ceilings are in

satisfying condition. Restaurant facilities are regularly maintained and used. Terrace of the

Central House, together with the rooms, are in poor condition and not currently used. In order

Central House to be in fully usable condition, further reconstructions are needed. Pictures below

are showing current condition of Central House entrance, rooms, restaurant hall, terrace, kitchen

and toilet.

Picture 43: Central House, restaurant hall and terrace


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Picture 44: Central House`s kitchen and toilet

Picture 45: Central House room`s interior (room above entrance)


Facade surfaces were built as a sandwich walls made on wooden construction, from hollow bricks

and final layer of fibre cement/eternit sheets. Basement and ground floor facade was built with

final mineral facade coating or stone facade partially. Windows were built by using compound

casement light system and were made from the wood.

Facade coating on Central House is in relatively good condition while doors and windows are in

poor condition. In order Central House to be in fully functional conditional complete doors and

windows need to be replaced and thermal facade should be installed.


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Picture 46: Facade of Central House

Pictures are showing current condition of Central House`s facade. It is notable that some of the windows are broken or in poor condition same as the wooden and metal frames.

Picture 47: Central House windows and roof frame


Central House was built according to standards from previous century. Electro installations and

cabling were placed on the walls and ceilings under the layer of plaster. Separate units in Central

House had its own circuit box with classic circuit breakers. Within the building of Central House,

electrical substation with installations ofhigh voltage network for different types of users:

lightening, telecommunications and emergency lightening. Accessing road and parking have also

been lightened.


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Picture 48: Electro installations, electrical substation and accessing path

Electro installations of Central House are in poor condition. Circuit boxes, fine electrical

installations in kitchen are demolished. In restaurant part of the Central House, electro

installations are outdated and functionality of those installations is questionable. Visible electro

installations were installed irregularly and should be reinstalled.

Hydro installations

Central House has hot and cold water installations, rain collection and sewage installations. Water

supply and sewage of Central House are functional and connected to local system.

Picture 49: Hydro installations and equipment inside of the Central House

All of hydro and sanitary equipment in Central House is demolished. Parts of the Hydro

installations that are inside of the walls are in functional condition.

Picture 50: Hydro installations outside of the Central House


Central House had installations of heating and ventilation. All of the Central House facilities were

heated through the radiator heating system. Furnace room was situated in basement where solid

fuel furnace was installed. Kitchen, laundry and toilets had installations for ventilation.


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Majority of machinery installations have been demolished, with only remaining evident at sight.

Picture below are showing current condition of furnace room and radiator used for heating

Central House.

Picture 51: Furnace room and heating radiator from Central House

New installations and equipment for central heating, ventilation and acclimatization should be

installed in Central House.

10.3 Hotel Mladost

Hotel Mladost is situated on an area of 2187 m2in central part of the NP Sutjeska. Hotel`s

location is directly connected to main road Foča-Gacko, and is registered under a code of k.č. 106/1 in official cadastre of municipality Tjentište. Parking for guests is provided in front of the

Hotel Mladost. Comparing to the main road, Hotel Mladost is levelled lower and is on a slope

terrain.

Picture 52: Hotel Mladost with accessing road

Hotel Mladost is surrounded with regularly maintained green areas, asphalt accessing road and

parking lot. Outdoor lightening system and installations and hydro installations are present

around the Hotel.

Characteristics of object

Hotel Mladost was originally built in year 1971 and upgraded in year 1990 when loft was built.

Object is currently functional operating in hotel and tourism industry. Hospitality sector of Hotel

Mladost includes 47 triple bedrooms, 16 double bedrooms and 4 one bedrooms with total 164

beds. Besides rooms, Hotel offers conference hall with 60 sitting places, restaurant with 80

sitting places, terrace for additional 120 sitting places, kitchen, coffee bar, auxiliary and energy

supplying facilities.

Table 34: Basic object dimensions


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height

Usable area

m m m2

Outside dimensions Object was built

in longitudinal

shape with

accommodation

facilities having

fish bone shape.

On southern part

of the Hotel

kitchen,

restaurant and

terrace are

placed, while

northern part of

the Hotel serves

as a separate

unit.

Nr. of floors G+2+Loft

Ground floor- South wing

of accommodation

capacities

33,75x14,80 2,62

Ground floor- Kitchen,

restaurant and terrace 23x26 2,80

Floors (3) 33,75x14,80 2,80

Loft

Loft- slope on the ceiling 1,20-1,80

Loft- full height of the

ceiling

3,00

Total usable area of object 2160,00


Table 35: Structure of floors

Floor Rooms

Ground

floor - Entrance corridor, reception and stairways for upper floors

- Male and female toilets (two cabins each), toilet entering hall - Restaurant hall - Kitchen block - Accommodation facilities with 15 triple bedrooms, 1 one bedroom - Emergency exit stairs

First floor - Central hall, stairways and hall ways towards south wing of the Hotel

- South wing with 16 triple bedrooms and 1 one bedroom - North wing of Hotel has conference hall

Second

floor - Central hall, stairways and hall ways towards south wing of the

Hotel - South wing with 16 triple bedrooms and 1 one bedroom


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Loft - Central hall, stairways and hall ways towards south wing of the Hotel

- South wing with 16 triple bedrooms and 1 one bedroom Source: NP Sutjeska Management

From the pictures below it is evident that Hotel Mladost was regularly maintained since its roof,

doors and windows are in good condition.

Picture 53: Hotel Mladost- Restaurant and kitchen

Condition of the inside of the Hotel Mladost can be seen on the pictures below.

Picture 54: Entrance hall, hall way and room

Object construction

Object was built with combination of skeleton constructions made of steel reinforced concrete

monolith elements. Supporting pillars were poured between hallway and rooms, while walls had

final layer of facade. Construction of the room was 3.15m wide in diameter, while hallway was

1.8 m wide. Between floors, monolith steel reinforced concrete slabs of 8cm thickness were

poured. Roofing of Hotel is constructed as a gable roof under a 25 degrees angle. Construction of

the roof was made of fir and spruce wood, isolated with bituminous waterproofing and covered

with sheet-tin of metal. Roof of the Hotel and wooden construction are leaned on a loft side walls

and steel reinforced concrete slab of 18cm thickness. Concrete slab is placed over a complete

hallway on Hotel`s loft. Facade walls of loft were made from hollow bricks, while inner walls

which were built after the initial construction of Hotel, were built with autoclaved aerated

concrete.

Object foundations were steel reinforced and poured with concrete, having supportive concrete

slab-on-grade elements. Foundation concrete slabs have hydro and thermo isolations and were

also steel reinforced.

Current condition of the foundations is good. Supportive pillars, walls, slabs and other elements

are in good condition, without visible damages or cracks. Roof of the Hotel Mladost, together with

final layers of roofing are in good, functional condition.


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Hotel Mladost`s interior

Flooring of the Hotel Mladost was built with floating floor construction system,wet screed baseand

thermo isolation. Depending on the use of the specific room, final floor coating was different.

Guest rooms and hallways have carpets laid down on the floor as a final coat, while toilets,

balconies and kitchen have ceramic tiles installed. Stairways were floored with polished stone.

Laminate flooring is present in restaurant hall.

Picture 55: Floors of Hotel Mladost

Walls in Hotel Mladost have skim coat of plaster with dispersive colour on top. Sanitary rooms

have ceramic tiles on their walls.

Picture 56: Floors of toilets, terrace and restaurant of Hotel Mladost

Picture above are showing current condition of toilet, terrace and restaurant floors of Hotel

Mladost.

Picture 57: Floors of restaurant, room and loaf of Hotel Mladost

Ceiling on each floor of Hotel Mladost have skim coat and dispersive colour over it, while at the

loaf ceilings have fine wood panels instead.

Restaurants, cafes and hall ways had a floor made from polished stone. Ceramic tiles were

installed in kitchen, balcony, toilets and storage room. Hotel rooms had carpets that were laid

down on the floor as a final coat.Walls had skim coating layers with dispersive colour on top of it.

Doors and windows were made from fir and spruce wood with veneer coating.


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Interior of Hotel Mladost is in relatively good condition. Age of the installed equipment and final

walls and floors is evident. Equipment that is in guest rooms, such as: beds, closets and tables

should be replaced with new ones.

Picture 58: Closet in Hotel Mladost


Walls of the Hotel Mladost have facade made from mortar and painted over it. Walls of the loaf, which have been built after original Hotel construction, have thermo facade of 5cm thickness. Facade doors and windows were made from the wood and using compound casement light system.

Facade doors` and windows` detrition is visible and need to be replaced, while facade walls,

besides need for thermo facade, are in good condition.


Hotel Mladost was built according to standards from 1980s of last century. Electro installations

and cabling are placed on the walls and ceilings under the layer of mortar. Each floor has

separate circuit box with classic circuit breakers. Hotel Mladost has high voltage network for

different types of users: lightening, telecommunications and emergency lightening. Accessing

road and parking are also lightened. Electro installations are in good and functional condition.

Hydro installations

Hotel Mladost has hydro installations for hot and cold water, rain collection and sewage

installations.

Water supply from the local supply system is in functional condition, same as the sewage system.

Sanitary equipment was installed at the time when Hotel was built, so age and marks of use are

visible on it. Complete sanitary equipment in Hotel Mladost is in functional condition with notable

detrition.

Picture 59: Toilets with sanitary equipment in Hotel Mladost rooms



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Machinery installations in Hotel Mladost included radiator heating installations. Central heating

system was distributed from furnace room and powered by liquid fuel. Currently furnace room is

not in function.

Picture 60: Heating equipment in Hotel Mladost (restaurant and Hotel room)

Central heating installations and radiators are in functional condition, but currently not being

used. Furnace room needs to be rebuilt and equipped which would prevent further depletion of

heating system.

10.4 Pavilion A

Pavilion A is situated in central part of NP Sutjeska. Pavilion`s location is directly connected to

road which is connected to main road Foča-Gacko, and is registered under a code of k.č. 110 in official cadastre of municipality Tjentište. Pavilion A is built on a slope terrain and is levelled

lower than the road. Natural environment surrounding Pavilion A is regularly maintained together

with accessing paths.

Picture 61: Pavilion A


Pavilion A was originally built in year 1975 and renovated in 2006. Object is in function with its

main activity in hospitality and tourism sector.



height

Usable area


101

m m m2

Outside dimensions Rectangle shape

23,91x11,62 2,60

Floors G + 1

Total usable area 398,76


Pavilion A is consisted of ground floor and one upper floor. Detailed description of rooms

available at each floor is given in table below.

Table 37: Structure of floors of Pavilion A

Floor Floors

Ground floor

- Two levels present at ground floors - Upper level at +1.55 m with main entrance, stairways, one room and

male and female toilets - Lower level at 0.00 with kitchen and living room

First floor - Accommodation capacities, two levels - Upper/ west part is consisted of 5 double bedrooms, 2 one bedroom

and male and female toilets - Lower/ east part is consisted of hallway and 4 double bedrooms


Interior and construction of the Pavilion A is in original condition. Pictures below are showing

hallways, stairways and condition of final wall and floor coatings in Pavilion A.

Picture 62: Entrance wind protector, stairways in Pavilion A

Picture 63: Hallway, stairway and condition of stairs in Pavilion A

Objects construction

Pavilion A was built with massive walls made of clay blocks. Horizontal concrete steel reinforced

pillars are supporting Pavilions attic and roof. Slightly sloped gable roof with sheet-tin of metal as

a final layer on the roof were built on Pavilion A. Interior walls were made from the hollow

bricks.


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Current condition of Pavilion A’s construction is good. Supportive elements: pillars, walls, slabs

and concrete beams are in good condition without visible shape deformation, cracks etc.

Construction of the roof with its concrete slab and bituminous waterproofing is in good condition.

Pavilion A’s roof was repaired in year 2006.

Picture 64: Roof of the Pavilion A

Interior description

Flooring of the Pavilion A was built with floating floor construction system. Entrance to the

pavilion, which has wind protection part, hall and stairways were floored with a monolith Italian

terrazzo. Hallways and pavilion rooms have beech parquet installed, while stairways have steel

reinforced concrete construction with wooden coating on top. All sanitary facilities have floors

covered with ceramic tiles. Also, kitchen and toilets have their walls covered in ceramics. Walls

and ceilings in each room have skim coats with dispersive colour covering it. Ceiling construction

was made out of wood. Doors and windows were made from plywood while their construction

was made of fir and spruce wood with veneer coating.

Pavilion A’s interior was built and equipped in last century but proper maintenance have resulted that even today condition of the interior is good and functional.

Facade description

Facade surfaces of Pavilion A were made as a combination of stone and wood coating. Ground floor of the Pavilion has facade made in “Bunja” stone style. At the same time, first floor and attic have wood painted and protected facade. Windows were made from the wood, using compound casement light system without thermo-isolated windows.

Construction and facade walls are in good condition, while doors and windows are in poor

condition and need to be replaced. New doors and windows, which comply with regulations

should be installed.

Picture 65: Facade and windows of Pavilion A


Electro installations of Pavilion A ware built according to standards from 1980s of previous

century. Electro installations and cabling were placed on the walls and ceilings. Each floor in


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Pavilion A has its own circuit box with classic circuit breakers. Pavilion also has installations

ofhigh voltage network for different types of users: lightening, telecommunications and

emergency lightening.

Currently all of the electro installations are in good and functional condition. Based on the time

when these installations were made, their lifetime has expired.

Hydro installations

Pavilion A has cold water supply installations and is connected to local supply system. Besides

water supply, Pavilion A has rain collection and sewage installations which are all functional.

Current condition of hydro installations is relatively good and functional.

Machine installations

Heating of the Pavilion A was conducted through the radiators installed in object. Heat power

supply was transferred from furnace room of Hotel Mladost.

Installation is consisted of heat radiators and pipeline which are all currently functional.

10.5 Pavilion B

Pavilion B is located in central part of NP Sutjeska. Pavilion`s location is indirectly connected to

road with walking paths. It is registered under a code of k.č. 110 in official cadastre of municipality Tjentište. Guest staying in Pavilion B can use parking lot in front of the Central

House, which is connected to Pavilion with walking path. Pavilion B is built on a slope terrain and

is levelled lower comparing to the road.

Picture 66: Facade of Pavilion B

Natural environment surrounding Pavilion B is neglected with visible detritions on Pavilion

accessing concrete paths. Outdoor lightening installations are demolished, while condition of

underground installations should be further investigated. Manholes and metal covers of sewage

have also damages.


Pavilion B was originally built in year 1975 with main function of serving in hospitality and

tourism sector.



height

Usable area

m m m2


104

Outside dimensions 3 diagonally

connected

rectangle shape

cca 12,0 x 12,0

m with 30%

overlapping

27x27 m

2,60

Floors G + 0



Pavilion B was constructed as grounded object of three rectangles horizontally overlapping for

30%. Connecting parts are levelled lower for 1.35m. In first rectangle, which is the lowest one,

entrance and living room in the Pavilion are placed. Second rectangle includes sanitary block,

while in third rectangle has rooms. Total accommodation capacity of Pavilion B is 38 beds.

Detailed description of rooms available at Pavilion B is given in table below.


Floor Floor

Ground floor

- Entrance at the north-east part of the Pavilion - Entrance terrace with outdoor stairs - Central hall and stairways for central part of the Pavilion - Living room - 3 triple bedrooms - Hall of central rectangle and stairs toward south- west rectangle - Male and female toilets (two cabins each), shower and entering room - 3 triple bedrooms - Hall to south-east rectangle - 1 five bedroom, 1 triple bedroom and 3 four bedrooms



Pavilion B was built with massive walls made of clay blocks. Foundations, floor slabs and sloped

roof slab were made from steel reinforced concrete. Walls in Pavilion B were built from hollow

bricks. Roof of the Pavilion was constructed as mono pitched roof and bituminous waterproofing

as a final layer.

Current condition of Pavilion B’s construction is good. Supportive elements: pillars, walls, slabs

and concrete beams are in good condition. Entrance terrace has visible detritions on terrace

concrete edges, without changes on construction.


Flooring of the Pavilion B was built with floating floor construction system,wet screed baseand


Entrance floor, hallways and stairways were made from polished stone. Rooms and hallway in

third rectangle were made from parquet. Ceilings have skim coating layers with dispersive colour

on top of it or wood panels.

Current condition of Pavilion B is poor. Damages on all doors and windows, floors and ceilings of

the Pavilion are visible. Ceramic tiles in toilets and Italian terrazzo placed on terrace have severe

damages. Protective fence which can be found at Pavilions terrace is not in good condition.

Facade description


105

Facade surfaces of Pavilion B were made as a sandwich walls from hollow bricks. Final facade coating was from stone, in lower part of the Pavilion, while at the attic has wooden facade. Windows were made from the wood, using compound casement light system.

Current condition of facade can be described as bad, since severe damages on wooden part of

facade and doors and windows are notable.


Object of Pavilion B was built according to standards from 1970s of previous century. Electro

installations and cabling were placed on the walls and ceilings. Pavilion had installations ofhigh

voltage network for different types of users: lightening, telecommunications and emergency

lightening. Installations for terrace lightening were originally installed.

Currently all of the electro installations are in functional condition. Reconstruction of the

installations should be made, since all of the electrical installations have aged.

Hydro installations

Pavilion B has cold water supply installations, sewage and rain collection installations.

Connections to local water supply and sewage systems are operational and functional.

Hydro installations are suggested to be replaced because of the age of previously installed ones.


Heating of the Pavilion B was conducted through the radiators installed in object. Heat power

supply was transferred from furnace room of Youth House. Water heating was done with

electrical water heater.

Entire heating installations have been demolished and complete reconstruction is needed.

10.6 Pavilion C

Pavilion C is situated in central part of NP Sutjeska and is registered under a code of k.č. 110 in official cadastre of municipality Tjentište. Pavilion`s location is connected to Central House and rest of the NP Sutjeska with walking path. Object is built on a slope terrain and is levelled lower

than the road. Pavilion C is surrounded with natural environment and has accessing paths.


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Picture 67: Facade of Pavilion C

Natural environment surrounding Pavilion C is neglected with visible detritions on Pavilion



have also damages.


Pavilion C was originally built in year 1975 with main function of serving in hospitality and

tourism sector. Pavilion is not in function.



height

Usable area

m m m2


connected

rectangle shape

cca 12,0 x 12,0

m with 30%

overlapping

27x27 m

2,60

Floors G + 0



Pavilion C was constructed as grounded object of three rectangles horizontally overlapping for

30%. Connecting parts are levelled lower for 1.35m. In first rectangle, which is the lowest one,

entrance and living room in the Pavilion are placed. Second rectangle includes sanitary block,

while in third rectangle has rooms. Total accommodation capacity of Pavilion C is 38 beds.

Detailed description of rooms available at Pavilion C is given in table below.


Floor Structure

Ground floor

- Entrance at the north-east part of the Pavilion - Entrance terrace with outdoor stairs - Central hall and stairways for central part of the Pavilion - Living room - 3 triple bedrooms - Hall of central rectangle and stairs toward south- west rectangle - Male and female toilets (two cabins each), shower and entering room


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- 3 triple bedrooms - Hall to south-east rectangle - 1 five bedroom, 1 triple bedroom and 3 four bedrooms

Source: NP Sutjeska management


Pavilion C was built with massive walls made of clay blocks. Foundations, floor slabs and sloped

roof slab were made from steel reinforced concrete. Walls in Pavilion B were built from hollow

bricks. Roof of the Pavilion was constructed as mono pitched roof and bituminous waterproofing

as a final layer.

Current condition of Pavilion C’s construction is good. Supportive elements: pillars, walls, slabs

and concrete beams are in good condition. Entrance terrace has visible detritions on terrace

concrete edges, without changes on construction. Walls of the Pavilion have visible cracks on

ground floor of the object. Roof of the Pavilion should be replaced.

Picture 68: Cracks on walls, condtion of the roof on Pavilion C


Flooring of the Pavilion C was built with floating floor construction system,wet screed baseand


Entrance floor, hallways and stairways were made from polished stone. Rooms and hallway in

third rectangle were made from parquet. Walls have skim coating layers with dispersive colour on

top of it or wood panels. Sanitary rooms have had ceramic tiles on their walls. Ceiling were skim

coated or had wooden ceiling.

Current condition of Pavilion C is poor. Damages on all doors and windows, floors and ceilings of

the Pavilion are visible. Ceramic tiles in toilets have also severally being damaged. Italian

terrazzo installed on terrace together with protective fence is not in good condition. Pictures

presented below are showing current condition of wooden floors, stone coats of walls, hallway

floors and devastated condition of walls inside the Pavilion C.


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Picture 69: Interior of Pavilion C

Facade description

Facade surfaces of Pavilion C were made as a sandwich walls from hollow bricks. Final facade coating was from stone, in lower part of the Pavilion, while at the attic has wooden facade. Windows were made from the wood, using compound casement light system.


facade and doors and windows are notable.

Picture 70: Current condtion of entrance and terrace of Pavilion C


Object of Pavilion C was built according to standards from 1970s of previous century. Electro

installations and cabling were placed on the walls and lowered ceilings. Pavilion had installations

ofhigh voltage network for different types of users: lightening, telecommunications and

emergency lightening. Installations for terrace lightening were originally installed.

Currently all of the electro installations are demolished.

Hydro installations

Pavilion C has cold water supply installations, sewage and rain collection installations.

Connections to local water supply and sewage systems are functional.

Hydro installations inside the Pavilion are demolished. In order for Pavilion C to be in functional

condition, reconstruction of inside hydro installations should be done.


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Picture 71: Sanitary room in Pavilion C


Heating of the Pavilion C was conducted through the radiators installed in object. Heat power

supply was transferred from furnace room of Youth House. Pavilions had pipeline system

connecting them to the Youth House. Water heating was done with electrical water heater.

Heating installations are not in functional condition.


10.7 Pavilion D

Pavilion D is situated in central part of NP Sutjeska and is registered under a code of k.č. 106 in official cadastre of municipality Tjentište. Pavilion`s location is indirectly connected to rest of the NP Sutjeska with path. Parking for Pavilion guests is provided in front of the Central House.

Object is built on a terrain which is close to the river Sutjeska. Pavilion D is surrounded with

natural environment and has accessing paths.

Picture 72: Facade on Pavilion D

Natural environment surrounding Pavilion D is neglected with visible detritions on Pavilion



have also damages.


Pavilion D was originally built in year 1975 with main function of serving in hospitality and

tourism sector. Pavilion D is not in function.



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height

Usable area

m m m2


connected

rectangle shape

cca 12,0 x 12,0

m with 30%

overlapping

27x27 m

4,00

Floors G + 1+ L 2,60

Total usable area 676

Source:NP Sutjeska Management

Picture 73: West and south side of the Pavilion D with visible damages

Pavilion D was constructed as object of ground floor and first floor. Detailed description of rooms

available at Pavilion D is given in table below.

Table 43: Structure of floors of Pavilion D

Floor Rooms

Ground floor

- Entrance corridor on north part of the Pavilion, and stairways for upper floors

- Garage for guests with place for mechanical car repairs - Fire fight facilitates - Auxiliary facilities - Toilets

First floor - Accommodation facilities for NP Sutjeska employees - Central hall with rooms in east and west part of the object

Loft - Accommodation facilities for NP Sutjeska employees in southern part of the object



Pavilion D was built with massive walls made of stone blocks in ground floor and clay blocks in

ground first floor and loft. Facade on Pavilion D was made from wood. Foundations, floor slabs

and sloped roof slab were made from steel reinforced concrete. Roof of the Pavilion was

constructed as gable roof of 30 degree slope. Walls in Pavilion D were built from hollow bricks.


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Current condition of Pavilion D’s construction is good. Supportive elements: pillars, walls, slabs

and concrete beams are in good condition. Roof of the object is in bad condition with construction

and final coating being severely damaged. Bad condition of the roof is result of long term

weather influences.


Flooring of the Pavilion D was built as monolith floating floor construction system. Entrance and

hall were floored with Italian terrazzo, while hallways in part of the Pavilion where rooms are,

have parquet on their floors. Stairways on upper floor were concrete with steel reinforcements

that have had poured terrazzo on them. All sanitary rooms have ceramic tiles laid on their

floors.Walls have skim coating layers with dispersive colour on top of it. Ceiling were skim coated

and painted. Doors and windows were made from fir and spruce wood with veneer coating.

Current condition of Pavilion D is poor. Interior is completely damaged. Upper floor and loaf of

Pavilion D have been for a longer period of time under a different weather influences, which have

affected floors, walls and ceiling to be demolished. Interior doors and windows also need to be

replaced.

Facade description

Facade surfaces of Pavilion D were made from natural rocks in ground floor and wooden surfaces on first floor and Pavilion loaf. Windows had boxy shape, one layer of glass and were opened inside. On ground floor of the Pavilion D doors and windows had darker colour made of wood with single layer of glass on windows and wood filings on doors.

Picture 74: Stone walls and wooden facade on Pavilion D


facade and doors and windows are complete.


Object of Pavilion D was built according to standards from 1970s of previous century. Electro

installations and cabling were placed on the walls and lowered ceilings. Each floor had separate

circuit box with classic circuit breakers. Pavilion had installations ofhigh voltage network for

different types of users: lightening, telecommunications and emergency lightening. Installations

for terrace lightening were originally installed.

Currently electro installations are in bad condition. First floor`s and loft`s all of the electro

installations are demolished and non-functional.

Hydro installations

Pavilion D has cold water supply installations, sewage and rain collection installations.


Hydro installations inside the first floor and loft of the Pavilion D are demolished, while hydro

installations at ground floor are in good condition.


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10.8 Pavilion F

Pavilion F is located in central part of NP Sutjeska and is registered under a code of k.č. 106 in official cadastre of municipality Tjentište. Pavilion`s location is indirectly connected to the rest of

the NP Sutjeska with walking path. Parking for guests is provided in front of the Central House.

Object of Pavilion F is built on a slope terrain and is levelled lower than the road. Pavilion F is

surrounded with natural environment and has accessing paths.

Picture 75: Pavilion F

Natural environment surrounding Pavilion F is neglected with visible detritions on Pavilion



have also damages.


Pavilion F was originally built in year 1980 with main function of serving in hospitality and

tourism sector. Pavilion is not in function.

Table 44: Basic Pavilion F dimensions


height

Usable area

m m m2


connected

rectangle shape

cca 14,64x9,84

m with ½ of

width overlapping

43,92x19,68 m

2,94

Floors G + 0



Pavilion F was constructed as grounded object of three rectangles horizontally overlapping for

50%. Three rectangles of Pavilion are identical.

Entrance to every part of the Pavilion is located east. Main entrance to the hallway, while on both

sides there are two bedrooms on each side of the Pavilion F and one smaller room on closer to

the entrance. Sanitary block is consisted out of two toilets, shower room and washbasins in west

part of the object.


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Pavilion F was built from prefabricated construction type “Marles”. Object was placed on steel reinforced concrete foundations and supportive beams and concrete slab. Walls were made from wooden elements having outside layer from flat asbestos panels of 8mm thickness. Content of the wall were mineral wool thickness 60 mm, plywood thickness 13mm and final plaster panel of 10 mm thickness. Total wall thickness was 130 mm. Inside of the Pavilion F walls were made from wooden construction, plywood and plaster panels as a final layer. Filling inside those walls was rock/mineral wool. Inner walls have thickness of 100 mm. Roof of the Pavilion was constructed as gable room supported by construction binders being placed every 120 cm. Final layer of roof covering on Pavilion F was done with asbestos panels. Windows were made from the wood, using compound casement light system without thermo glasses.

Condition of the Pavilion F construction is bad. Damages on walls and ceilings are result of rain

coming through the roof and attic. Rain collection installations have not been properly maintained

together with constant weather influences have led to higher level of damages on Pavilion F. Roof

and facade doors and windows have severe damages and are not recommended for further use.

Picture 76: Roof and ceiling damages on Pavilion F


Flooring of the Pavilion F was built with floating floor construction system,wet screed baseand


Entrance floor, hallways and sanitary rooms had floor covered in ceramic tiles, while rooms had

laid carpets. Walls have skim coating layers with dispersive colour on top. Sanitary rooms have

had ceramic tiles on their walls. Ceilings were skim coated or had wooden ceiling.

Current condition of Pavilion F is demolished. Damages on all doors and windows, floors and

ceilings of the Pavilion are visible. Ceramic tiles in toilets have also severally being damaged.

Picture 77: Condition of interiror of Pavilion F

Facade description


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Facade surfaces of Pavilion F were made as a mineral facades on a base made from asbestos panels of prebuilt object type “Krivaja system”. Windows were made from the wood, using compound casement light system.

Current condition of facade can be described as bad, since severe damages on facade panels,

doors and windows are notable.

Picture 78: Windows on Pavilion F

Picture 79: Facade of Pavilion F

Pictures above are showing current condition of Pavilion F facade, doors and windows condition.


Object of Pavilion F was built according to standards from 1970s of previous century. Electro

installations and cabling were placed on the walls and lowered ceilings as a prebuilt. Pavilion had

installations ofhigh voltage network for different types of users: lightening, telecommunications

and emergency lightening. Installations for terrace lightening were originally installed.

Currently all of the electro installations are demolished and cannot be used.

Picture 80: Remaining of electro installations in Pavilion F

Hydro installations


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Pavilion F has cold water supply installations, sewage and rain collection installations.


Hydro installations inside the Pavilion are demolished. In order for Pavilion F to be in functional

condition, reconstruction of hydro installations should be done.


Heating of the Pavilion F was conducted through the radiators installed in object. Heat power

supply was transferred from furnace room of Youth House. Pavilion had pipeline system

connecting them to the Youth House. Water heating was done with electrical water heater.


10.9 Pavilion G

Pavilion G is located in central part of NP Sutjeska and is registered under a code of k.č. 106 in official cadastre of municipality Tjentište. Pavilion`s location is indirectly connected to the rest of the NP Sutjeska with walking path. Parking for guests is provided in front of the Central House.

Object of Pavilion F is built on a slope terrain and is levelled lower than the road. Pavilion F is

surrounded with natural environment and has accessing paths.

Picture 81: Facade of Pavilion G

Natural environment surrounding Pavilion F is neglected with visible detritions on Pavilion



have also damages.


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Picture 82: Water supply pipeline and entrance to Pavilion G


Pavilion F was originally built in year 1980 with main function of serving in hospitality and

tourism sector.

Table 45: Basic object dimensions of Pavilion G


height

Usable area

m m m2


connected

rectangle shape

cca 14,64x9,84

m with ½ of

width overlapping

43,92x19,68 m

2,94

Floors G + 0



Pavilion G was constructed as grounded object of three rectangles horizontally overlapping for

50%. Three rectangles of Pavilion are identical.

Entrance to every part of the Pavilion is located east. Main entrance to the hallway, while on both

sides there are two bedrooms on each side of the Pavilion F and one smaller room on closer to

the entrance. Sanitary block is consisted out of two toilets, shower room and washbasins in west

part of the object.


Pavilion G was built from prefabricated construction type “Marles”. Object was placed on steel reinforced concrete foundations and supportive beams and concrete slab. Walls were made from wooden elements having outside layer from flat asbestos panels of 8mm thickness. Content of the wall were mineral wool thickness 60 mm, plywood thickness 13mm and final plaster panel of 10 mm thickness. Total wall thickness was 130 mm. Inside of the Pavilion G walls were made from wooden construction, plywood and plaster panels as a final layer. Filling inside those walls was rock/mineral wool. Inner walls have thickness of 100 mm. Roof of the Pavilion was constructed as gable room supported by construction binders being placed every 120 cm. Final layer of roof covering on Pavilion G was done with wavy asbestos panels. Windows were made from the wood, using compound casement light system without thermo glasses.


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Condition of the Pavilion G construction is satisfactory. Damages on lower parts of the walls as a

result of rain not properly being collected. Roof and facade doors and windows have damages.


Flooring of the Pavilion G was built with floating floor construction system,wet screed baseand


Entrance floor, hallways and sanitary rooms had floor covered in ceramic tiles, while rooms had

laid carpets. Walls have skim coating layers with dispersive colour on top. Sanitary rooms have

had ceramic tiles on their walls and ceiling were skim coated.

Current condition of Pavilion G is poor. Damages on all doors and windows, floors and ceilings of

the Pavilion are visible.

Facade description

Facade surfaces of Pavilion G were made as a mineral facades on a base made from asbestos

panels of prebuilt object type “Krivaja system”. Windows were made from the wood, using compound casement light system.

Current condition of facade can be described as bad, since severe damages on facade panels,

doors and windows are notable.

Picture 83: Side facade of Pavilion G


Object of Pavilion G was built according to standards from 1970s of previous century. Electro



and emergency lightening. Installations for terrace lightening were originally installed.

Currently all of the electro installations are aged and should be replaced with new ones, in order

it to be in fully functional condition. Use of the existing electro installations is potentially

dangerous.

Hydro installations

Pavilion G has cold water supply installations, sewage and rain collection installations.


Hydro installations inside the Pavilion are demolished, replacement should be done.



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Heating of the Pavilion F was conducted through the radiators installed in object. Heat power

supply was transferred from furnace room of Youth House. Pavilion had pipeline system

connecting them to the Youth House.

Heating radiators and heating pipelines are still present in Pavilion G, but currently are not in

function.

Picture 84: Radiator in Pavilion G

10.10 Youth House

Youth House is situated in NP Sutjeska and located in central part of the Park. Hotel covers 3192

m2 and is registered under a code K.Č. 110 in official cadastre of municipality Tjentište with connection to main road Foča- Gacko passing through NP Sutjeska. Comparing to the main road,

Youth House is levelled lower and is on a slope terrain. Entrance to the Youth House follows the

course of the terrain and is placed lowest on east side. On west side of the object, amphitheatre

was located.

Picture 85: Current condition of Youth House

Environment surrounding Hotel is neglected including accessing road and parking which is

devastated. Outdoor amphitheatre with its stage and sitting area is severely damaged too.

Outdoor lightening system is devastated and in non-functional condition. Condition of

installations located under the ground has to be more thoroughly investigated, while manholes

and metal covers are demolished.


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Picture 86: Amphitheatre of Youth House


Object of Youth House was built in year 1971 as a multipurpose object with back stage for

theatre, music and other performances. Youth House had buffet, sanitary rooms, furnace room

and rentable part of the House. Currently Youth House is not in use.

Two reception halls were placed in Youth House, one had capacity of 400 and other 50 seats.

Behind Youth House on a slope terrain circular stage and open type amphitheatre were built.

Amphitheatre is part of Youth House and they are connected with big doors. Stage, which is

located next to the object of Youth House, has place for its auditorium.

Table 46: Youth House dimensions


height

Usable area

m m m2

Outside dimensions –

irregular shaped object

32,40 x 11,10-18,90

Nr. of floor G+ F+L

Ground floor and first floor 3.05

Loft 2.10-3.02

Reception hall 4.50-7.50

Total usable area of object 1040


As it can be seen in table above, Youth House is consisted of ground floor, first floor and building

loft. Each of the floors is consisted from different rooms, as it is shown in table below.

Table 47: Structure of floors of Youth House

Floor Rooms

Ground floor

- Entrance corridor with stairways - Sanitary rooms - Disco club with toilets

First floor - Central hall, stairways - Reception hall with stage - Auxiliary rooms

Loft and terrace

- Stairways - Technician room - Smaller reception hall


Object construction


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Construction of the Youth House was built from combine system of concrete monolith elements.

Walls were built from hollow bricks or autoclaved aerated concrete bricks in some part. Roof over

the reception hall and stage had steel reinforced construction and concrete slabs that were

sloped. Under the roof were supportive walls and concrete beams.

Object foundations were reinforced and poured with concrete and having concrete slab-on-grade

elements.

Picture 87: Damages on Yout House construction

Current condition of Youth House is demolished. Construction elements of ground floor and loft

have been damaged with visible cracks on the walls. On a first floor`s walls it is visible than the

concrete slabs holding it, have levelled down comparing to the foundations. Roof of the object

with its construction is completely devastated. Different weather elements for decades have been

influencing Youth House`s detrition together with the fire that has caught Youth House. Ground

floor concrete slab and walls are in better condition with only surface damages visible. Walls in

toilets, doors and windows are missing from the object.

Picture 88: Steel roof construction of Youth House

Youth House`s interior

Floors of Youth House in hallways were built from stone surfaces, while in inner rooms ceramic

tiles were lied down on the floors. Since the Youth House was under a fire, all of the floors are


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demolished. It is an estimate that reception hall has had a carpet floored and that the stage was

made from the wood.

Walls inside of the Youth House were skim coated and painted with dispersive colour. In central

hall, close to the stairways, walls had bricks as a final wall coat. Toilet walls had ceramic tiles on

them. Ceiling construction was made from steel reinforced concrete which had mortar over it and

dispersive paint. Over the stage ceilings were lowered. Doors and windows were made from fir

and spruce wood with veneer coating.

Pictures below are showing current condition of the Youth House interior, amphitheatre and place

where stage was.

Picture 89: Floors in Youth House

Entire installations, doors and windows and floors have missing, so it can be concluded that they

have been destroyed in fire. Remaining of some of the installations help in guessing what kind of

equipment was installed in Youth House.

Picture 90: Sanitary block and windows in Youth House

Facade description

Facade surfaces of Youth House were made as a mineral facades chunky pattern. Facade doors and windows were dark painted and are currently completely demolished. Only some remaining of windows have left today, which are unusable.


Object of Youth House was built according to standards from 1970s of previous century. Electro



and emergency lightening. Installations proclamations were made through entire NP Sutjeska,

together with outdoor around amphitheatre.

Currently all of the electro installations are demolished and cannot be used.

Hydro installations

Youth House had cold water supply installations, sewage and rain collection installations.

Connections to local water supply and sewage systems are not functional.


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Hydro installations inside the Youth House are completely demolished, replacement should be

done.


Youth House has had a central heating system operating in every room. Depending on the

purpose, some facilities have had a ventilation installations. Heat source was furnace which was

located in basement of the Youth House.

Heating system of Youth House has completely been demolished with only remaining’s that help us guess type of the system they were using.

10.11 Restaurant Jezero

In north part of the NP Sutjeska is located restaurant Jezero. It is registered under a code code

of k.č. 106 in official cadastre of municipality Tjentište. Location of the Restaurant is next to the lake, sport courts and indirectly connected to main road Foča-Gacko. Restaurant is built on slope

terrain and is following course of the terraing. In front of the Restaurant Jezero private parking

for guests is placed.

Picture 91: Facade and terrace of Restaurant Jezero

Natural environment surrounding Restaurant Jezero is regularly functional, maintained and used.

All of the accessing roads and paths are well managed.


Restaurant Jezero was originally built in year 1971 with partially being rebuilt in year 2012. Main

function of Restaurant Jezero is serving in hospitality and tourism sector. Restaurant is in

function.

Table 48: Basic object dimensions of Restaurant Jezero


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height

Usable area

m m m2

Outside dimensions 3-5

Floors B+G + A



Description on rooms available at each floor is given in table below.

Table 49: Floors at Restaurant Jezero

Floor Content

Basement - Changing rooms, changing cabins for swimming pool Ground floor

- Rooms are grouped - In west part there is terrace with path towards pool - Central part is consisted of restaurant , coffee shop - East part is consisted of kitchen and toilet

Attic - Terrace Source:NP Sutjeska Management

Youth House`s current interiors condition, roof, ceiling, doors, are shown in pictures below.

Object is properly maintained, but reconstruction would bring better functionality and modern

look of Restaurant Jezero.

Picture 92: Dressing rooms and toilets in Restaurant Jezero

Picture 93: Terrace and fireplace in Restaurant Jezero


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Picture 94: Kitchen and toilet in Restaurant Jezero

From the pictures above it can be seen that the floor surfaces have damages, and that the installed equipment, hydro and electro installations are in poor condition.

Picture 95: Restaurant Jezero


Restaurant Jezero was built with massive walls made from bricks, steel reinforced concrete construction, slabs and beams. Roof is constructed as gable roof, wooden construction and sheet-tin of metal as a final layer. Interior walls were made from a hollow bricks.

Condition of the Restaurant Jezero construction is good. Main supportive elements such as: slabs,

pillars and beams are in good condition without visible damages. Roof was renovated in year

2012 and currently is in good condition.

Picture 96: Roof of the Restaurant Jezero


Flooring of the Restaurant Jezero was built as concrete floating floor construction system, wet

screed base and thermo isolation. Entrance floor, restaurant, kitchen and sanitary rooms have

floors covered in ceramic tiles. Walls have skim coating layers with dispersive colour on top,

some walls have wooden, brick or stone coating. Sanitary rooms have had ceramic tiles on their

walls. Doors and windows were made from fir and spruce wood with veneer coating.


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Current condition of Restaurant Jezero is good. Floors, doors and windows are original from the

1970s but it is evident that they have been regularly maintained. Ceramic tiles in fireplace

banquet, coffee place and kitchen have damages and should be replaced.

Picture 97: Floors in Restaurant Jezero

Facade description

Facade surfaces of Restaurant Jezero were made from combination of stone, wood and facade panels. Windows were made from the wood, using compound casement light system, without thermo isolated glass.

Current condition of facade can be described as very good, except windows and doors which

should be replaced with properly isolating ones.

Picture 98: Current condition of doors and windows in Restaurant Jezero


Object of Restaurant Jezero was built according to standards from 1970s of previous century.

Electro installations and cabling were placed on the walls and ceilings.Each floor has separate

circuit box with classic circuit breakers. Restaurant has installations ofhigh voltage network for

different types of users: lightening, telecommunications and emergency lightening.

Currently all of the electro installations are good condition and functional.

Hydro installations

Restaurant Jezero had cold water supply installations, sewage and rain collection installations.


Hydro installations inside the Restaurant Jezero are functional.

10.12 Bungalow

In central part of the NP Sutjeska, on left part of the river, Bungalow is located. Bungalow is

registered under a code code of k.č. 110 in official cadastre of municipality Tjentište. Originally


126

there were 25 bungalows, but only one has remained today. Those bungalows were placed from

northern part of the NP Sutjeska to the southern part where pavilion D is located.

Picture 99: Bungalow

Natural environment surrounding Bungalow is regularly maintained and used. All of the accessing

roads and paths are well managed.


Restaurant Jezero was rebuilt in year 2013. Small interior works have been done after year 2013.

Main function to serve as accommodation for guests.

Table 50:Basic object dimensions of Bungalow


height

Usable area

m m m2

Outside dimensions 2.60

Floors B+0




Object of Bungalow was built from hollow blocks with steel reinforced beams. Foundations are transversely placed with steel reinforced concrete slab covering them. Roof construction was made as gable roof made from wood and covered in mortar panels. Final outside layer of the roof is made from tegola shingle coating.

Picture 100: Foundations, roof and circuit box of Bungalow

Current condition of the Bungalow`s construction is good. Main supportive elements such as: slabs, pillars and beams are in good condition without visible damages.



127

Flooring of the Changing room and toilets was built as concrete floating floor construction

system. Floors have laminate and ceramic tiles as a final layer. Doors and windows were made

from fir and spruce wood with veneer coating.

Current condition of Bungalow is good and is being used.

Picture 101: Interor and exterior of Bungalow

Facade description

Facade surfaces of Bungalow have painted in white mortar coat and wooden façade. Windows

were made from the wood, using compound casement light system, without thermo isolated

glass.

Current condition of facade can be described as good.


Object of Bungalow was built according to standards. Object has installations ofhigh voltage

network for different types of users: lightening net, telecommunications etc.

Currently all of the electro installations are in good condition and functional.

Hydro installations

Changing room and toilets have cold water supply installations and sewage installations.


Hydro installations inside the object are functional.


Heating of Bungalow was done through a central heating system. Inside of the Bungalow

radiators are installed and were heated from central furnace room.

Heating is operated through electro heaters since central heating system is not in function.

10.13 Sport courts

On north of the NP Sutjeska, right side of the river Sutjeska, Sport courts are located. Terrains

are registered under a code code of k.č. 159/1 in official cadastre of municipality Tjentište. Location is indirectly connected to main road Foča-Gacko through accessing road and parking lot.


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Picture 102: Map of Sport courts in NP Sutjeska

Sport courts were built in year 1976 and covering around 7.500,00 m2.. Complex of sport courts

are consisted of:

Big football pitch covered with grass Athletic track Combined sports terrain with asphalt for handball, basketball/volleyball on west part Three terrains for tennis south from the football pitch Terrains for mini golf and bowling

Characteristics of big football pitch

Grassy football pitch is in size of 105x70 m with accompanying athletic track on asphalt surface

(RUB-KOR). On west part of the stadium auditorium stands with five levels are built, oriented

towards football pitch. Under the stands, pantry facilities that are used for stadium maintenance,

were made.

Picture 103: Big Football pitch

Football pitch was made with drainage system under the pitch surface. Drainage system is

consisted of channels formed in shape of fish bone and pipeline of 100 mm in diameter. Slope of

the drainage system was made from centre of football pitch toward sides of terrain. Next to the

athletic track, drainage collector which takes water away from the pitch. Fine grass specially


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grown for football pitches is laid as a final coat of the pitch. Irrigation system is installed under

the grass surface, in order football pitch to be irrigated when needed. Classical goal frames,

made from metal, are installed on football pitch.

Condition of football pitch and athletic track is good, they are maintained and used.

Combined sports terrain

Asphalted sport courts were placed west and east from football pitch. On west part of the

terrains, volleyball, basketball, handball and football terrain is placed. Double sided auditorium

stands was made to be in line with sport courts.

On southern part of the terrain complex, tennis terrain was built.

Picture 104: Sport courts

Basketball, volleyball and tennis terrain

Basketball, volleyball and tennis terrains were made on southern than the central football pitch.

Next to the terrains, double sided auditorium stands is located. Afore mentioned sport courts are

multipurpose terrains for different sports. From the pictures below it can be seen that the

terrains are being used and are maintained. Concrete stands which are made in shape of a

stares, under the exposure of different weather elements, have shown some cracks and are

slightly damaged.


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Picture 105: Sport courts (Basketball, volleyball and tennis terrains with stands)

Picture 106: Basketball terrain

Characteristics of Sport courts

Sport courts were built in year 1976. Terrains are currently used.

Table 51: Sport courts dimensions

Description Dimensions

m

Football pitch 105x70

Combined sports terrain 20x100

Tennis terrain 3 x11x12,80

Mini golf and balling

terrain

Part of the park


Construction of Sport courts


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Football pitch was made on a ground floor with drainage system placed under a grassy surface.

Combined sport courts are placed on west from the stands. These terrains have asphalt surface

as final coat, under which ground surface and rock base were prepared.

Tennis terrains are on the south of the central football pitch, with asphalted surface.

Sports complex is entirely fenced with mesh metal fence. Tennis terrains have special fence

suitable for that sport.

Recreational swimming lake

Recreational swimming lake is located on north-west from the central football pitch and other

sport courts. Being close to sport courts it can be said that recreational swimming lake is one of

the terrains in sports complex. Swimming lake is registered under a code code of k.č. 159/1 in official cadastre of municipality Tjentište.

Pictures below are showing condition of recreational swimming lake in summer time, when it is

full and opened for users.

Picture 107: Recreational swimming lake in summer13

Current condition of recreational swimming lake and environment surrounding it, is presented in pictures below.

13Picture taken from internet


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Picture 108: Current condition of Recreational swimming lake

Characteristics of Recreational swimming lake

Recreational swimming lake was built in year 1978 and renovated in year 2013. Swimming lake

is located in northern part of the park, next to the sport courts and restaurant Jezero. Artificial

swimming lake was made from steel reinforced concrete covering 16.000 m2. Base and sides of

the lake was made of concrete being depth 1.5-4 meters. Water from river Sutjeska is pumped

to lake by using pump station located around 100 m away from the lake. Final layer of concrete

was poured around the recreational swimming lake, serving as a beach.

Recreational swimming lake is in function. Water from river Sutjeska is directly pumped to shell

of the recreational swimming pool through the pipeline system which can be reinstalled when

needed. Excess water from the swimming lake is being overbrim. Recreational swimming lake is

used only in summer, and is empty in all other seasons.

10.14 Estimate of required level of investment of parthners/ third party

in order for assets to be in operational condition

10.14.1 Hotel „Sutjeska“

Table 52: Work specification of hotel “Sutjeska”

Nr. Description of work Unit Quantit

y

Total

(BAM`000)

1. Preparatory works:

Cleaning building from existing waste materials;

Deconstruction of the concrete roof construction;

Deconstruction of facade coating;

Deconstruction of floors;

Deconstruction of ceilings;

Deconstruction of damaged mortar;

Deconstruction of hydro and ventilation

installations;

Parking cleaning;

Construction of new electrical and hydro

installations.

Set

1,00

50.34

2. Outdoor works:

Repair of accessing road and parking;

Environment and horticultural remediation;

Repair of underground installations;

Instalment of separator and water purifier;

Underground installations and pipelines;

Oil separator

Set 1,00 221.00

3. Steel reinforced, concrete works:

Repair of concrete construction of object;

Repair of concrete constructions outside of the

object;

Set 1,00 8,1

4. Masonry works:

Repair or rebuilt of walls from hollow bricks


133


y

Total

(BAM`000)

Skim coating of walls

Putting mortar/ thin coat of cement glue

Pouring wet screed bases of 5-6 cm thickness

Set 1,00 251.86

5. Tinplate works:

Rain collection system installing

Set 1,00 12.00

6. Insulation works:

Purchase and instalment of vertical and

horizontal hydro isolation materials for terrace,

entrance, stairs, basement, kitchen, toilets

Flat roof over the basement with PVC coating of

1,5mm

Purchase and instalment of stone wool thickness

20cm for the roof

Thermo isolation of floor EPS- 5cm

Thermo isolation of floors XPS-5cm

Thermo isolation of flat roof XPS- 15cm

Set 1,00 81.71

7. Flooring works:

Supply of materials, base (surface) preparation

and carpet flooring in rooms and hallways.

Set 1,00 32.23

8. Locksmithing works:

Purchase and instalment of alu doors and

windows in basement and kitchen

Facade doors and windows instalment in

basement and ground floor (alu profiles with

thermo bridge, 3 layers thermo glass thickness

65mm)

PVC facade doors and windows for upper floors (6

chamber, double layer of glass)

Purchase and instalment of interior alu fence

(tubular profile)

Purchase and instalment of fire resistant doors

Purchase and instalment of terrace alu fence

Other thinsmith works on manhole covers, shoe

cleaning, protective steel elements instalment

Set 1,00 269.49

9. Carpentry:

Supply of material and instalment of doors made

from fir and spruce wood with veneer coating;

Supply of material and instalment of hallway

double doors made from fir and spruce wood with

veneer coating.

Set 1,00 46.58

10. Ceramic tileworks:

Material supply and instalment of anti-slip, acid

resistant and unglazed ceramic tiles;

Material supply and instalment of acid resistant

wall ceramic tiles;

Material supply and instalment of teraco tiles on

balconies and outdoor stairways.

Set 1,00 167.48

11. Stone Cutting:


134


y

Total

(BAM`000)

Supply the material and repair of the staircases

with platform;

Material supply and repair of stone flooring in

hallways and halls.

Set 1,00 38.65

12.

Facade works:

Purchase and instalment of ventilated, thermo

facade of 10 cm thickness

Instalment of facade with silicate layers over

hollow bricks walls.

Set 1,00 87.36

13.

Drywall works:

Construction of dropped ceilings, with drywall

panels installed in basement and ground floor;

Purchase of the materials and construction of walls

with final fire protective panels;

Ceiling insulation was made from stone wool 20

cm thickness.

Set 1,00 44.67

14. Painting and decorating:

Double skim coating, grinding and painting of

walls and ceiling with white dispersive colour.

Set 1,00 74.68

15. Hydro Installation:

Testing of current installations, uninstallation and

replacement of damaged parts of sewage

installations;

Testing of current water supply installations,

uninstallation and replacement of damaged parts

with PVC installations;

Testing of current water hydrant installations,

uninstallation and replacement of damaged parts

with galvanized steel installations;

Supply and instalment of sanitary equipment;

Testing of current hydro installations and

restoration of exterior installations;

Instalment of fire fighting equipment Set 1,00 137.46

16. Electrical Installation:

Uninstallment of existing electrical installations,

instalment of new high voltage installations with

cables, circuit boxes and circuit breakers;

Purchase and instalment of lightening equipment

and fine electrical installations;

Purchase and instalment of telecommunication

installations, telecommunication boxes and

central box;

Purchase and instalment of TV installations with

Set 1,00 136.65


135


y

Total

(BAM`000)

boxes and receivers;

Purchase and instalment of fire alarm system;

Purchase and instalment of surveillance and SOS

system;

Material purchase and restoration of lighting

conductor system.

17. Mechanical Installation:

Supply and instalment of equipment for pellet

boiler room;

Supply and instalment of new combined heating

installations, radiator and underfloor heating

equipment;

Supply and instalment of new ventilation system

in basement and ground floor;

Supply and instalment of new ventilation system

in sanitary facilities;

Supply and instalment of new air conditioning

system in basement and ground floor;

Supply of materials and installation of storage

tank for central heating of sanitary water in the

boiler room, and distribution of the installation to

the consumers.

Set 1,00 405.01

18. Equipment, devices and furniture:

Purchase and instalment of kitchen equipment:

Purchase and instalment of coffee shop and

terrace with 150 seats capacity;

Purchase and instalment of equipment and

furniture for double bedrooms: 126 beds, tables,

chairs, lockers and lighting equipment;

Purchase and instalment of equipment for

laundry room: laundry washing machine, drying

machines, ironing and other equipment;

Purchase of other equipment required for Hotel

maintenance.

Set 1,00 421.19

TOTAL: 2.486.45


10.14.2 Central house

Table 53: Work specification of Central House

Nr. Description of work Unit Quantity Total

(BAM`000)



136


(BAM`000)

Cleaning the whole object from existing

waste materials;

Flat roof layers removal for the purpose of

reconstruction

Deconstruction of facade joinery: east 1

(kitchen and storage), south 1 (kitchen and

storage), north 1 (kitchen and storage),

east 1 (kitchen and storage) and west 2

(restaurant), east 2 (restaurant) and

basement locksmithing;

Terrace floor deconstruction;

Deconstruction of finishing layers of

ceilings;

Removing damaged mortars;

Removal of wall ceramic tiles in sanitary

facilities, kitchen and other premises;

Removal of residuals of hot and cold water

installations, fecal sewage system, heating

and ventilation and

Cleaning Platoon and Parking.

Set 1,00 14.51

2. Outdoor works:

Environmental and horticultural restoration;

Reconstruction of external underground

installations and installing of oil separator

and biofilter for waste water treatment

Underground installations and pipelines;

Wastewater Biofilter

Grease trap (interceptor)

Oil separator

Set 1,00 123.51


Damage repair of concrete constructive

elements in the object-terrace.

Set 1,00 3.60

4.

Masonry:

Applying mortar and repairing of internal

mortar at about 10% of the surface of the

basement and part of the ground floor with

the kitchen;

Screed bases (thickness d = 5-10 cm) on

flat roof and terrace.

Set 1,00 23.67

5.

Tinplate works:

Construction of trenches

Installing drainage system with gutters and

drains.

Set 1,00 8.00


137


(BAM`000)


Supplying and installing of vertical and

horizontal hydro isolation materials for

terrace, entrance stairs,

flat roof over the basement with PVC

coating of 1,5mm

Supplying and installing of stone wool

(thickness 20 cm) for the roof

Flat roof thermal insulation of XPS d=15 cm

in the ground floor.

Set 1,00 68.92

7. Flooring works:

Purchase of materials, surface preparation

and carpet instalment in apartments;

Purchase of materials and reconstruction of

parquet in apartment above central hallway.

Set 1,00 4.02


Suppying and installing of Aluminium

carpentry in basement and ground floor;

Facade doors and windows instalment in

basement, ground floor and upper floors

(alu profiles with thermal bridge, 2 layers

thermo glass thickness 65mm);

Other locksmithing work on manhole

covers, shoe cleaning, protective steel

elements instalment

123.23

9. Carpentry:

Supply of material and instalment of doors

made from fir and spruce wood with veneer

coating.

Set 1,00 1.75


Material supply and instalment of anti-slip,

acid resistant and unglazed ceramic tiles in

basement, auxiliary rooms in kitchen and

groundfloor;

Material supply and instalment of acid

resistant wall ceramic tiles;

Material supply and instalment of teraco

tiles on balconies and outdoor stairways.

Set 1,00 70.99

11. Stone Cutting:

Supply the material and repair of the

staircases with platform;

Material supply and repair of stone flooring

in hallways and halls.

Set 1,00 1.28


138


(BAM`000)

12. Facade works:

Thermo Facade (thickness d= 10 cm)

construction with silicate finishing layer over

demaged plastered walls or brick walls;

Soffit and eaves Facade construction.

Set 1,00 24.59

13. Drywall works:

Construction of suspended ceilings made of

gypsum board with substructure on sloped

ceilings.

Set 1,00 11.52

14. Applying the finishing layers:

Double skim coating of walls and ceilings,

grinding, soaking with dispersion substrate

and dyeing twice with disperse dye in white

color;

Double skim coating of the walls, grinding,

finishing with water-resistant latex paint in

the basement and auxiliary rooms in white

color.

Set 1,00 24.92

15. Hydro Installations:

Testing of current installations,

uninstallation and replacement of damaged

parts of sewage installations but keeping

undamaged parts of installation (vertical

and floor divisions);



parts with PVC installations;

Testing of current water hydrant

installations, uninstallation and replacement

of damaged parts with galvanized steel

installations;

Supply and instalment of sanitary

equipment;



Instalment of fire fighting equipment.

Set 1,00 26.84


Uninstallment of existing electrical

installations, instalment of new high voltage

installations with cables, circuit boxes and

circuit breakers;

Purchase and instalment of lighting

equipment and fine electrical installations;

Purchase and instalment of

telecommunication installations,

telecommunication boxes and central box;

Purchase and instalment of TV installations

Set 1,00 38.19


139


(BAM`000)

with boxes and receivers;

Purchase and instalment of fire alarm

system;

Purchase and instalment of surveillance and

SOS system;


conductor system.


Supply of equipment and instalment of

boiler room;

Supply and instalment of new combined

heating installations, radiator and fan coil

units.

Supply and instalment of new ventilation



system in sanitary facilities;

Supply and instalment of new air

conditioning system in basement and

ground floor;

Supply of materials and installation of

storage tank for central heating of sanitary

water in the boiler room, and distribution of

the installation to the consumers.

Set 1,00 170.51


Purchase and instalment of kitchen

equipment with air handling units, kitchen

office, bar, kitchen sink, black and white

kitchen utensils and cutlery;

Other equipment related to the decoration

and maintenance of the object,

environment, outdoor furniture.

Set 1,00 145.00

TOTAL: 885.06


10.14.3 Hotel “Mladost“

Table 54: Work specification of Hotel Mladost

Nr. Description of work Unit Quantity

Total

(BAM `000)


Removal of ceramic tiles in sanitary facilities

in apartments and rooms;

Removal of floor ceramic tiles on the

balconies;


140


Total

(BAM `000)

Removal of wall ceramic tiles in sanitary

facilities in south wing of the building;

Removal of sanitary equipment and

features;

Deconstruction of facade joinery for the

purpose of replacement;

Removal of wall-mounted placards.

Set 1,00 11.13

2. Flooring:

Carpet replacement in rooms and hallways.

Set 1,00 26.77

3. Carpentry:



coating;

Supply of material and installation of Facade

joinery of PVC with six-chamber profiles

with 3-layer thermo glass 4 + 16 + 4 mm

with Argon and LowE protection. Set 1,00 116.33




sanitary facilities and balconies;


resistant wall ceramic tiles in sanitary

facilities. Set 1,00 28.60

5. Facade works:

Supply and installation of external contact

thermo Facade with 10 cm EPS thermal

insulation, thin layer reinforced adhesive

mortar and finishing by 2 mm thick silicate

toned Facade. Works are performed on the

south wing of the building - part with

accommodation capacities. Set 1,00 39.63


Supply and instalment of boiler room on

solid fuel e.g. pellet;

Current pipeline and radiators repair and

their connection to new boiler room. Set 1,00 25.00


141


Total

(BAM `000)


Reconstruction of existing wall-mounted

placards in rooms. Set 1,00 8.04

TOTAL:


255.52

10.14.4 Pavilion “A“

Table 55: Work specification of Pavilion A


Total

(BAM `000)


Deconstruction of Facade joinery and portal

in stairwell and windshield for replacement

with new one;

Removing the inner carpentry for the

purpose of replacement.

Set 1,00 2.57

2. Carpentry:


joinery made of PVC with six-chamber

profiles with 3-layer thermo glass 4 + 16 +

4 mm with Argon and LowE protection;

Two - wing windshield door and interior

portal of the hallways;

Supply and instalment of new interior

joinery – veneer coating doors with

cylindrical locks, door fittings and peripheral

battens.

Set 1,00 34.92

3. Renovation of sanitary facilities:

Renovation of the ground floor, which

means removing existing ceramics and

glueing new floor and wall tiles, creating

new wall and underfloor hydro, sewage and

electric installations connecting to existing

verticals and grid, replacement of old with

new sanitary equipment, wardrobe and

appliances; Set 1,00 30.00


142


Total

(BAM `000)

Renovation of shared baths on the floor,

which means removing existing ceramics

and glueing new floor and wall tiles,

creating new wall and floor hydro, sewage

and electrical installations connecting to

existing verticals and grid, replacement of

old with new sanitary equipment, wardrobe

and appliances.

TOTAL: 67.50


10.14.5 Paviliom “B“

Table 56: Work specification of Pavilion B


Total

(BAM `000)


Deconstruction of cardboard roofing and

insulation to the ferroconcrete construction;

Removal of wooden Facade layers;

Removal of heating and ventilation

installation remainings;

Deconstruction of Facade wooden joinery;

Connecting new heating installation

connections to the existing external

network.

Set 1,00 5.65

2. Outdoor works:

Repair the access roads and parking;


Repair the external underground

installations.

Set 1,00 13.50

3. Concrete works:

Repair of damage on concrete constructive

elements in the building and

Repair of concrete structures in the yard,

access communication. Set 1,00 4.95

4. Masonry:

Repair of mortar on attic roofs. Set 1,00 1.30

5. Tinplate works:

Construction of trenches

Installing drainage system with gutters and Set 1,00 6.00


143


Total

(BAM `000)

drains.



horizontal hydro isolation materials for:

terrace and entrance stairs, slope roof over

the building with PVC coating of 1,5 mm;

Slope roof thermal insulation of XPS

(thickness d=15 cm).

Set 1,00 27.90

7. Flooring:

Supply of materials, base (surface)

preparation, grinding, bending and

varnishing of existing parquet or

floorboards.

Set 1,00 4.49

8. Locksmithing:

Supply and installation on the terrace and

staircase fence made of aluminum tubular

profiles;

Other locksmiths on repair and protection of

steel poles on the terrace.

Set 1,00 94.00

9. Carpentry:

Interior two-wing doors or portals in

hallways from fir and spruce wood with

veneer coating;

Exterior PVC joinery with six-chamber

profiles with 3-layer thermo glass and

aluminium persiennes.

Set 1,00 0.56

10.

Ceramic tileworks:



Set 1,00 6.36

11. Stone Cutting:



Set 1,00 1.36

12. Facade works:

Supply and instalment of exterior ventilated


144


Total

(BAM `000)

Facades with thermal insulation 10 cm and

decking floor with painting and lacquering.

Instalment of finishing acrylic white facade

on the eaves and soffit.

Set 1,00 13.86

13. Drywall works:

Repair of suspended ceilings made of

gypsum board with substructure as a

replacement for wooden ceilings.

Set 1,00 3.64





color. Set 1,00 8.49



equipment;




Set 1,00 8.38





circuit breakers;









system;


SOS system;


conductor system.

Set 1,00 16.16


Supply of equipment and connection of

supply installations with Youth House boiler

room;


heating installations: radiator and

underfloor heating equipment;

Set 1,00 55.31


145


Total

(BAM `000)


system in sanitary facilities.


Supply and equipping of rooms with a total

of 40 beds with corresponding nightstands,

club table, chairs, window covers, lighting

fixtures;


and maintenance of building, environment,

outdoor furniture.

Set 1,00 36.00

TOTAL: 223.29


10.14.6 Pavilion “C“

Table 57: Work specification of Pavilion C


Total

(BAM `000)



waste materials;

Deconstruction of cardboard roofing and

insulation to the ferroconcrete construction;

Removal of wooden Facade layers;

Deconstruction of interior parquet floors;

Removal of suspended ceilings;

Removing damaged internal mortar (20% of

total surface area);



and ventilation;


Deconstruction of interior joinery;

Removal of wall and floor tiles in sanitary

facilities;

Connecting new heating, electric and hydro

installation connections to the existing

external network.

Set 1,00 15.35

2. Outdoor works:




146


Total

(BAM `000)


installations.

Set 1,00 21.00

3. Concrete works:

Repair of damage on concrete constructive

elements in the building and



4. Masonry:

Brickwork of damaged or demolished walls

from hollow brick blocks;

Skim coating and repair of internal mortar

(approx. 30%) and

Creating floor screeds in an entire building;

Repair of mortar on roofs. Set 1,00 9.48

5. Tinplate works:

Construction of trenches;


drains. Set 1,00 6.00



horizontal hydro isolation materials for:

terrace and entrance stairs, rooms and

sanitary facilities;

slope roof over the building with PVC

coating of 1,5mm;

Slope roof thermal insulation of XPS

(thickness d=15 cm).

Thermal insulations of floors (XPS, thickness

d= 5 cm).

Set 1,00 39.52

7.

Flooring:


preparation and laminate flooring.

Set 1,00 7.48

8. Locksmithing:

Supply and installation on the terrace and

staircase fence made of aluminum tubular

profiles;

Other locksmiths on repair and protection of

steel poles on the terrace.


147


Total

(BAM `000)

Set 1,00 12.40

9. Carpentry:

Supply and instalment of fir and spruce

wooden doors with veneer coating;



veneer coating;




Set 1,00 6.06

10.

Ceramic tileworks:



hallways and sanitary facilities;





Set 1,00 15.15

11.

Stone Cutting:



Set 1,00 4.52

12. Facade works:

Supply and instalment of exterior ventilated

Facades with thermal insulation 10 cm and

decking floor with painting and lacquering.

Instalment of finishing acrylic white facade

on the eaves and soffit.

Set 1,00 13.86

13. Drywall works:

Construction of suspended ceilings made of

gypsum board with substructure as a

replacement for wooden ceilings.

Set 1,00 9.10



grinding, soaking with dispersion substrate Set 1,00 8.49


148


Total

(BAM `000)


color.













installations;


equipment;




Set 1,00 14.93





circuit breakers;









system;


SOS system;


conductor system.

Set 1,00 20.17




room;




149


Total

(BAM `000)




Set 1,00 55.31


Supply and equipping of double and triple

rooms with a total of 40 beds with

corresponding nightstands, club table,

chairs, placemat, lighting fixtures;


and maintenance of the building,


Set 1,00 36.00

TOTAL: 301.11


10.14.7 Pavilion “D“

Table 58: Work specification of Pavilion D


Total

(BAM `000)



waste materials;

Deconstruction of rooftop cover with roof

construction;

Deconstruction of Facade wooden layers

with substructures;

Scraping of demaged ceilings in the attic;

Removing damaged internal mortar on

upper floor and attic (50% of total surface

area);


installations, fecal sewage system;

Removal of wooden Facade joinery;

Removal of steel Facade locksmiths;


Removal of wall and floor tiles in sanitary

facilities;


150


Total

(BAM `000)

Deconstruction of floor and floor

substructures and floor screeds on the floor

and attic.

Set 1,00 12.39

2. Outdoor works:



installations.

Set 1,00 8.00

3. Concrete works:

Reconstruction of concrete constructive

elements in the building.

Set 1,00 5.40

4. Masonry:

Repair of interior mortars on walls and

ceilings;

Construction of new screeds on the floor

and attic;

Repair damaged partition walls from block

brick;

Construction of a new concrete panel with

finishing layer of ferro-concrete in garages

and storages on the ground floor. Set 1,00 40.93

5. Wooden constructions:

Supply of materials and production roofing

structures from fir and spruce wood;

Supply of material and cover the roof with

the anti-corrosion film;

Supply the material for longitudinal and

cross-sectional roof covering;

Supply of material and covering of the

object with a falconated tile;

Design of flat and slope eaves with

substructure.

31.57

6. Tinplate works:





Supply of material and construction of

horizontal waterproofing by polymeric

waterproofing coating of ground floor and



151


Total

(BAM `000)

Slope roof thermal insulation (stone wool –

15 cm)

Supply the material and insulate floor with

EPS-5 cm on the upper floors and floor in

the attic.

Set 1,00 15.30

8.

Flooring:


preparation and laminate flooring in rooms

and hallways of upper floor and attic. Set 1,00 9.01

9. Carpenty:

Supply and instalment of fir and spruce

wooden room doors with veneer coating;

Exterior wooden joinery in upper floor and

attic with 3-layer of fir and spruce wood and

3-layer thermo glass;

Anodising aluminum joinery with interrupted

thermal bridge and three-layer thermo

glass.

Set 1,00 8.75

10.

Ceramic tileworks:





resistant wall ceramic tiles.

Set 1,00 5.08

12. Facade works:

Supply and instalment of ventilated wooden

Facades with wooden substructures and

with thermal insulation 10 cm; and finishing

layer with painted and lacquered Facade

boards.

Set 1,00 19.51

13. Drywall works:

Construction of wall and attic ceiling tiles

made of gypsum board with substructure.

Set 1,00 9.23


152


Total

(BAM `000)





color. Set 1,00 18.74













installations;


equipment;




Set 1,00 12.84





circuit breakers;









system;


SOS system;


conductor system.

Set 1,00 37.47


Supply and equipping of bedrooms with a


153


Total

(BAM `000)

total of 30 beds with corresponding

nightstands, a club table, chairs, billboards,

lighting fixtures;




Set 1,00 17.00

TOTAL: 254.37


10.14.8 Pavilion “F“

Table 59: Work specification of Pavilion F


Total

(BAM `000)



waste materials;

Removing asbestos cement wavy roof

panel;

Deconstruction of demaged Facade layers

from asbestos cement panels with Facade;

Removal of damaged ceilings from gypsum

board panels and plywood;

Removal of damaged internal plasterboard

(20% of total surface area);



and ventilation;

Deconstruction of Facade wooden joinery


Removal of floor and wall tiles in sanitary

facilities.

Set 1,00 5.62

2. Outdoor works:




installations.

Set 1,00 11.00

3. Concrete works:




154


Total

(BAM `000)

4. Prefabrication:

Repair of wooden constructions of

prefabricated walls with the replacement of

about 10% of wall constructive elements;

Replacement of damaged Facade coating

with flat cement fiber tiles on 20% of the

surface of the Facade and

Repair of wooden roof structures - binders

to approximately 10% of the surface of the

roof. Set 1,00 4.21

5. Tinplate works:






horizontal waterproofing by polymeric

waterproofing coating;

Supply the material and insulate attic ceiling

with EPS-15 cm.

Set 1,00 9.76

7.

Flooring:


preparation and laminate flooring in rooms. Set 1,00 8.95

9. Carpentry:



coating;

Exterior PVC joinery with 6-chamber and 3-

layer thermo glass and aluminium

persiennes.

Set 1,00 9.00

10.

Ceramic tileworks:



hallways, sanitary facilities and on

windshield.





Set 1,00 24.41


155


Total

(BAM `000)

12. Facade works:

Supply the material and construction of

contact thermo Facade from EPS Facade

tiles (d=10 cm) with thin layer of mortar

0,5 cm, reinforced glass fiber mesh and

finishing mineral facade layer 2 mm;

Construction of wooden Facade in attic.

Set 1,00 12.72

13. Drywall works:

Construction of wall and attic ceiling tiles

made of gypsum board with substructure as

a replacement for existing damaged tiles.

Set 1,00 12.06





color;

Set 1,00 8.89













installations;


equipment;




Set 1,00 9.36





circuit breakers;



156


Total

(BAM `000)








system;


SOS system;


conductor system.

Set 1,00 21.55




room;

Supply and instalment of new installations

for radiator heating;



Set 1,00 32.51


Supply and equipping of bedrooms with a

total of 48 beds with corresponding

nightstands, a club table, chairs, placards,

lighting fixtures;




Set 1,00 24.20

TOTAL: 214.55


10.14.9 Pavilion “G“

Table 60: Work specification of Pavilion G


Total

(BAM `000)


Removing asbestos cement wavy roof

panel;



157


Total

(BAM `000)

Deconstruction of interior joinery:

Removal of wall and floor tiles in building.

Set 1,00 1.77

2. Outdoor works:

Repair the access roads;



installations.

Set 1,00 11.00




4. Tinplate works:



drains;

Material supply and covering building with

trapezoidal galvanized sheet metal. Set 1,00 18.05

5. Carpentry:



coating;




Set 1,00 9.00

6.

Ceramic tileworks:


acid resistant and unglazed ceramic tiles on

windshield and entrance;



Set 1,00 5.21

7. Facade works:



tiles (d=10 cm) with thin layer of mortar

0,5 cm, reinforced glass fiber mesh and

finishing mineral facade layer 2 mm;

Painting and laquering of wooden Facade in


158


Total

(BAM `000)

attic.

Set 1,00 11.73




room;

Supply and instalment of new installation

for radiator heating.

Set 1,00 29.51

TOTAL: 88.53

Source: Consutlant calculation

10.14.10 Youth House

Table 61: Work specification of Youth House


Total

(BAM

`000)



waste materials;

Deconstruction of roof to the ferroconcrete

construction;

Demolition of a high ground floor and attic

with ferroconcrete walls, panels and beams;

Removing damaged internal mortar in

basement;



and ventilation;

Cleaning platoon, amphitheater and paths;

Construction of new electric and hydro

installation.

Set 1,00 47.76

2. Outdoor works:

Repair the access roads and amphitheater;


Set 1,00 55.40

3. Concrete works:

Construction of new ferroconcrete

construction of walls, pillars, ground floor

and attic floors; Set 1,00 240.34


159


Total

(BAM

`000)

Restoration of existing concrete foundation

structures and basement.

4. Masonry:

Brickwork of damaged or demolished walls

from hollow brick blocks at ground floor and

attic level;

Skim coating and repair of internal mortar;

Creating floor screeds (d=6 cm) in an entire

building; Set 1,00 91.20

5. Tinplate works:

Supply of materials and construction of the

steel grid construction of the roof;



drains.

Set 1,00 43.50



horizontal and vertical hydro insulation in

basement with renovation and by injecting

current floors and walls; on ground floor

and attic and flat roof above terraces.

Slope roof thermal insulation (stone wool –

20 cm);

Thermal insulation of floors with EPS – 5

cm;

Thermal insulation of floors with XPS – 5

cm.

Set

1,00 69.33

7.

Flooring:


preparation and laminate flooring in

groundfloor hall, stage and attic. Set 1,00 33.77

8. Locksmithing:

Supply and instalment of interior Aluminium

joinery

Supply and production of interior joinery of

aluminum anodised profiles;

Exterior joinery in the basement, ground

floor and attic of aluminum profiles with

thermal bridge as a continuous facade with

three-layer thermo glass;

Exterior sliding harmonica door on the stage

Supply and installation of a staircase fence


160


Total

(BAM

`000)

made of aluminum tubular profiles;

Supply and installation of fire doors;

Terrace fencing made of aluminium profiles

and

Other locksmiths for the manufacture of

manhole covers, clothes cleaning grilles,

protective grid in the basement etc.

Set 1,00 165.38

9. Carpentry:



coating;



veneer coating.

Set 1,00 9.74

10.

Ceramic tileworks:



basement and sanitary facilities;





Set 1,00 44.75

11.

Stone Cutting:

Supply the material and repair of the

staircases with platform;



Set 1,00 13.44

12. Facade works:



tiles (d=10 cm), with thin layer of mortar

and finishing silicate layer.

Set 1,00 24.93

13. Drywall works:

Construction of suspended (dropped)

ceilings made of gypsum boardboards with


161


Total

(BAM

`000)

substructure in the basement and

groundfloor.

Supply of materials and fabrication of wall

coverings made of prefabricated plywood in

hall interior.

Set 1,00 52.06





color. Set 1,00 25.48













installations;


equipment;




Set 1,00 46.89





circuit breakers;









system;



162


Total

(BAM

`000)

SOS system;


conductor system..

Set 1,00 72.70


Supply and instalment of equipment for

pellet boiler room;








Set 1,00 143.00


Supply and installation of 325-seat large-

capacity kitchen equipment for conferences,

cinema and theaters;

Catering and equipping of coffee shops and

terraces with total capacity of 30 seats;



environment, outdoor furniture. Set 1,00 180.71

TOTAL: 1,360.33



Table 62: Work specification of Restaurant Jezero


Total

(BAM

`000)


Deconstruction of ceramic tiles in kitchen,

caffee and fireplace lounge;

Deconstruction of Facade joinery for the

purpose of replacement;

Deconstruction of interior joinery in locker

(changing) rooms and sanitary facilities.


163


Total

(BAM

`000)

Set 1,00 1.13


Supply and installation of panel doors in

brown;


joinery made of PVC six-chambered in

wood-color with thermo glass 4 + 16 + 4

mm (Argon and LowE protection).

Set 1,00 59.68




the kitchen, bar and fireplace lounge.


resistant wall ceramic tiles in the kitchen;

Set 1,00 4.09


Reconstruction of existing kitchen

equipment with the replacement of obsolete

elements and equipment with a new one

(about 50% of equipment).

Set 1,00 25.00

TOTAL: 89.90


10.14.12 Camp

Table 63: Work specification of Camp


Total

(BAM `000)

1. Preparatory work:

Field cleaning and site preparation.

Set 1,00 15.00

TOTAL: 15.00

Surce: Consultant calculation


164

10.14.13 Sport courts

Table 64: Work specification of Sport courts


Total

(BAM `000)


Remove existing sports equipment for

replacement;

Scraping asphalt surfaces from the athletic

track to repair and overlay a new layer.

Set 1,00 11.95

2. Athletic track and sports ground:

Making the finishing layer of the painted

"Rub-kor" asphalt on the athletic track and

Marking of sports grounds and athletic

tracks by dyeing with synthetic resin colors.

Set 1,00 108.24

3. Renovation of installations:

Repair and purification of drainage canals of

the stadium;

Repair of hydrant installation and irrigation

systems;

Repair of lighting installations. Set 1,00 30.00

4. Renovation of sports grandstands:

Painting of constructive part of the

grandstands, repair of concrete slabs and

Installation of polyurethane seats. Set 1,00 55.00

5. Repair of sports equipment:

Supply and installation of new certified

sports equipment on sports fields:

Volleyball net with stand;

Set of handball goals;

Set of backboards for basketball,

Tennis nets;

Equipment for Athletics;

Renovation of athletic arenas (long jump,

ski jump, etc.);

Set of football goals;

Maintenance equipment (lawn mower,

roller…) Set 1,00 64.80

6. Other works:

Renovation of exterior fences;

Landscaping of park areas.

Set 1,00 20.00

TOTAL: 289.99



165

10.14.14 Bungalow

Table 65: Work specification of Bungalow


Total

(BAM `000)

1. Supply and construction of new houses, installation

on existing foundations. The houses are supplied

with electrical, hydro and mechanical installation

(the estimated price per house is 17.600,00 BAM).

Set 2,00 35.20

TOTAL: 35.20


10.14.15 Recreational swimming lake

Table 66: Work specification of Recreational Swimming Lake


y

Total

(BAM `000)


Cleaning the terrain and excavating for the

new pipeline.

Set 1,00 1.50

2. Outdoor work:

Repair of concrete surfaces in and around

the pool and renovation of the fence.

Set 1,00 5.00

3. Concrete and reinforcement work:

Reconstruction of floor and walls of pool. Set 1,00 10.00


Repair of concrete surfaces in and around the pool

Set 1,00 2.00


New pipeline from pump station to the

building. Set 1,00 2.50


Following electrical work. 1.50

Set 1,00


Pump station.

Set 1,00 4.50

TOTAL: 49.50



166

11 Appendix III- Profitability under different scenarios

11.1 WACC calculation

An appropriate discount rate needs to be used both in the application of the income aproach for the appraisal of Market value and in

the calculation of project profitability from the viewpoint of a potential investor. Discount rate is the rate that converts future cash flows

into their present value by taking into consideration both time value of money and the risks associated with such cash flows.

For the purpose of our analyses, we have selected the weighted average cost of capital („WACC“) as an appropriate measure of risk.

As the principal source of information, we have used the database published by professor Aswath Damodaran14 („Damodaran“).

Cost of Equity (Ke)

Cost of equity (Ke) represents rate of return required by equity owners as a compensation for the risk they undertake by making an

equity investment to the observed entity. Cost of equity is determined by using the Capital Assets Pricing Model (CAPM).

(1) Risk-Free Rate (RFR)

A risk free rate of approximately 2.4% was used, based on Long Term Treasury bond rate.

(2) Beta (ß)

Beta coefficient was determined based on unlevered beta coefficient for a selected group of publically-traded companies in the Hotels

group of European companies, as published by Damodaran and targeted capital structure and marginal tax rate.

We have used the unlevered beta coefficient of 0.87 and the D/E ratio of 0.39 as reported by Damodaran.

In order to arrive at equity beta coefficients to be used in the cost of equity calculation, we have re-levered the unlevered beta

coefficients using targeted capital structures. We assumed a 10% corporate tax rate, based on statutory rate in Bosnia and

Herzegovina.

Finally, we have calculated the levered beta coefficients of 1.17.

(4) Equity Risk Premium (ERP)

14http://pages.stern.nyu.edu/~adamodar/


167

Equity risk premium (ERP) represents an excess return required by investors in order to invest into risky assets, rather than into risk

free instruments.

In determining the ERP for the Valuation, we took into account available studies including Ibbotson® SBBI® Valuation Yearbook,

Damodaran studies, ERP implied by the stock markets and others. The historical evidence tends to support an ERP in a range of 4% to

8%. The forward looking studies tend to support a premium in a range of 3% to 8%. There are other methods such as market surveys

and ERP based on historical relationships. These studies and researches also support previous conclusions.

Based on our understanding of the markets and performed analyses, we applied the ERP at the level of 6.0%.

Cost of Debt (Kd)

Cost of debt represents marginal interest rate that must be paid on newly issued debt for financing the subject asset groups.

For the purpose of this analysis, we have used a pre-tax cost of debt that corresponds to an average market interest rate for long-term

BAM-denominated loans in Bosnia and Herzegovina. The marginal borrowing rate is estimated at 4.5%.

Given a 10% statutory corporate income tax rate in Bosnia and Herzegovina, after-tax nominal cost of debt is 4.1%.

Capital Structure

Capital structure for calculation of the weighted average cost of capital was determined as the targeted capital structure based on

capital structure of the comparable companies, published by Damodaran. Capital structure is estimated at 27.9% of debt financing and

72.1% of equity financing.

Weighted Average Cost of Capital (USD)

The calculation presented above yields a WACC denominated in US dollars of 8.0%. In order to convert such a rate to a locally

applicable rate, we have used the inflation differential between long-term US dollar inflation of 1.5% and long-term BAM inflation of

2.2%15.

Weighted Average Cost of Capital (BAM)

Based on the described methodology and elements for the cost of capital calculation, we have calculated the WACC of8.3%.

15https://tradingeconomics.com/bosnia-and-herzegovina/inflation-cpi/forecast


168

Weighted average cost of capital

Assumption

Value Source

Beta coefficient

1.17

Unlevered beta coefficient

0.87 Damodaran

D/E

0.39 Damodaran

Tax rate

10% Statutory rate

Cost of equity

9.4%

Risk free rate

2.4% Damodaran

Beta coefficient

1.17

Market risk premium

6.0% Damodaran

Cost of debt

4.1%

Interest rate

4.5% CCBIH

Tax rate

10% Statutory rate

Capital structure

Equity

72.1%

Debt

27.9%

WACC (USD)

8.0%

WACC (BAM)

8.3% tradingeconomics.com


169

11.3 Base scenario


Key assuptions Occupancy

rate


Price per bed per

overnight stay (BAM)

Nr. of employees


Investment maintenance

every 10 years

Electrical energy

kWh/year

Heating energy kWh/year

Maintenance

Hotel Mladost 25% 10% 20 27 255,523 5% 43,200 258,189 0.3% of total operational expenses

Hotel Sutjeska 25% 10% 20 21 2,486,453 5%

75,960 215,157 0.3% of total operational expenses

Central House - 1 event 1,500 - 1,770,120 5%

38,850 247,432 400

Youth House - 1 event 500 - 2,720,678 5%


5% 14,286 - 2,500

Sports terrains - 0% - 1 579,990 5%

- - 1,250


5,120 32,274 1% of total operational expenses

Pavilion A 25% 10% 15 4 67,495 5%


Pavilion B 25% 10% 15 3 223,287 5%


Pavilion C 25% 10% 15 4 301,115 5%


Pavilion D 25% 10% 15 2 254,374 5%


Pavilion F 25% 10% 15 1 214,549 5%


Pavilion G 25% 10% 15 2 88,533 5%


Bungalow 25% 10% 15 1 35,200 5%

220 6,455 1% of total operational expenses

Camp 25% 10% 10 1 15,000 5%

- - 4% of total operational expenses

The price of electrical energy has been projected at 0.21 BAM/kWh and the price of heating energy has been projected at 0.088

BAM/kWh.


170

11.3.1 Hotel Mladost

BAM `000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20

Revenues

-

813.59

891.86

977.68

1,071.80

1,175.05

1,288.34

1,412.66

1,416.03

1,419.45

1,422.90

1,426.40

1,429.95

1,433.54

1,437.18

1,440.87

1,444.61

1,448.40

1,452.25

1,456.15

Room revenue

-

299.30

329.23

362.15

398.37

438.21

482.03

530.23

530.23

530.23

530.23

530.23

530.23

530.23

530.23

530.23

530.23

530.23

530.23

530.23 Food and Beverage revenue from guest staying in Hotel Mladost

-

451.94

497.14

546.85

601.54

661.69

727.86

800.64

800.64

800.64

800.64

800.64

800.64

800.64

800.64

800.64

800.64

800.64

800.64

800.64

Food and Beverage revenue from other guests in Hotel Mladost

-

38.34

39.49

40.68

41.90

43.16

44.45

45.78

47.16

48.57

50.03

51.53

53.08

54.67

56.31

58.00

59.74

61.53

63.38

65.28

Food and Beverage revenue Central House

-

18.00

19.50

21.00

22.50

24.00

25.50

27.00

28.50

30.00

31.50

33.00

34.50

36.00

37.50

39.00

40.50

42.00

43.50

45.00

Conferences and events in Youth House

-

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

10.00

10.50

11.00

11.50

12.00

12.50

13.00

13.50

14.00

14.50

15.00

Operational expenses

-

476.43

498.78

523.08

549.52

578.33

609.71

643.95

647.34

728.18

654.26

657.77

661.33

664.93

668.57

672.25

675.98

679.75

683.57

764.84

Employees Hotel Mladost

-

204.92

206.97

209.04

211.13

213.24

215.37

217.52

219.70

221.90

224.12

226.36

228.62

230.91

233.22

235.55

237.90

240.28

242.69

245.11

Employees Swimming lake

-

1.25

1.26

1.27

1.29

1.30

1.31

1.33

1.34

1.35

1.37

1.38

1.39

1.41

1.42

1.44

1.45

1.47

1.48

1.49

Employee Sports terrains

-

2.50

2.52

2.55

2.57

2.60

2.63

2.65

2.68

2.71

2.73

2.76

2.79

2.82

2.84

2.87

2.90

2.93

2.96

2.99

Food and Beverage expense from guests staying in Hotel Mladost

-

168.67

185.53

204.08

224.49

246.94

271.64

298.80

298.80

298.80

298.80

298.80

298.80

298.80

298.80

298.80

298.80

298.80

298.80

298.80

Food and Beverage expense from other guests Hotel Mladost

-

14.31

14.74

15.18

15.64

16.11

16.59

17.09

17.60

18.13

18.67

19.23

19.81

20.40

21.01

21.65

22.29

22.96

23.65

24.36

Food and Beverage expense in Central House

-

6.72

7.28

7.84

8.40

8.96

9.52

10.08

10.64

11.20

11.76

12.32

12.88

13.44

14.00

14.55

15.11

15.67

16.23

16.79

Electrical energy Hotel Mladost

-

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

Electrical energy Central House

-

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

Electrical Energy Youth House

-

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

Electrical energy Recreational Swimming lake

-

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

Heating energy Hotel Mladost

-

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

Heating energy Central House

-

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

Heating energy Youth House

-

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

Maintenance of Hotel Mladost

-

1.24

1.30

1.36

1.43

1.51

1.59

1.68

1.69

1.70

1.70

1.71

1.72

1.73

1.74

1.75

1.76

1.76

1.77

1.78

Maintenance of Central House

-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

Maintenance of Youth House

-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

Maintenance of Recreational swimming lake

-

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

Maintenanceof Sports terrains

-

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

Annual Consessions Fee

-

24.41

26.76

29.33

32.15

35.25

38.65

42.38

42.48

42.58

42.69

42.79

42.90

43.01

43.12

43.23

43.34

43.45

43.57

43.68


-

-

-

-

-

-

-

-

-

77.40

-

-

-

-

-

-

-

-

-

77.40

Required investment in Hotel Mladost

-

-

-

-

-

-

-

-

-

12.78

-

-

-

-

-

-

-

-

-

12.78

Required investment in Central House

-

-

-

-

-

-

-

-

-

22.13

-

-

-

-

-

-

-

-

-

22.13

Required investment in Youth House

-

-

-

-

-

-

-

-

-

34.01

-

-

-

-

-

-

-

-

-

34.01


171


Required investment in Recreational swimming lake

-

-

-

-

-

-

-

-

-

1.24

-

-

-

-

-

-

-

-

-

1.24

Required investment in Sports terrains

-

-

-

-

-

-

-

-

-

7.25

-

-

-

-

-

-

-

-

-

7.25

Investment cash flow

1,594.41

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


255.52

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


442.53

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


680.17

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


24.75

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


145.00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


46.44

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Net cash flow

(1,594.41)

337.16

393.08

454.60

522.28

596.73

678.62

768.71

768.69

613.87

768.65

768.63

768.62

768.62

768.62

768.62

768.63

768.65

768.67

613.91


(1,594.41)

(1,257.25)

(864.17)

(409.57)

112.71

709.44

1,388.06

2,156.77

2,925.46

3,539.32

4,307.97

5,076.61

5,845.23

6,613.84

7,382.46

8,151.08

8,919.71

9,688.36

10,457,033.72

11,070.95


172


BAM `000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year

Revenue -

668.82

730.57

798.15

872.14

953.18

1,041.96

1,139.27

1,143.69

1,148.19

1,152.76

1,157.41

1,162.14

1,166.95

1,171.84

1,176.82

1,181.89

1,187.05

1,192.31

1,197

Room revenue -

229.95

252.95

278.24

306.06

336.67

370.34

407.37

407.37

407.37

407.37

407.37

407.37

407.37

407.37

407.37

407.37

407.37

407.37

407.3

Food and Beverage revenue from guest staying in Hotel Sutjeska

-

347.22

381.95

420.14

462.16

508.37

559.21

615.13

615.13

615.13

615.13

615.13

615.13

615.13

615.13

615.13

615.13

615.13

615.13

615.1

Food and Beverage revenue from other guests in Hotel Sutjeska

-

67.64

69.67

71.76

73.92

76.13

78.42

80.77

83.19

85.69

88.26

90.91

93.64

96.45

99.34

102.32

105.39

108.55

111.81

115.1


-

18.00

19.50

21.00

22.50

24.00

25.50

27.00

28.50

30.00

31.50

33.00

34.50

36.00

37.50

39.00

40.50

42.00

43.50

45.00


-

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

10.00

10.50

11.00

11.50

12.00

12.50

13.00

13.50

14.00

14.50

15.00


-

402.76

420.57

439.90

460.88

483.70

508.51

535.53

538.87

542.26

545.70

549.18

552.72

556.31

559.95

563.64

567.39

571.19

575.05

578.9

Employees Hotel Sutjeska

-

159.94

161.54

163.15

164.78

166.43

168.09

169.78

171.47

173.19

174.92

176.67

178.44

180.22

182.02

183.84

185.68

187.54

189.41

191.3

Employees Recreational Swimming lake

-

1.25

1.26

1.27

1.29

1.30

1.31

1.33

1.34

1.35

1.37

1.38

1.39

1.41

1.42

1.44

1.45

1.47

1.48

1.49


-

2.50

2.52

2.55

2.57

2.60

2.63

2.65

2.68

2.71

2.73

2.76

2.79

2.82

2.84

2.87

2.90

2.93

2.96

2.99

Food and Beverage expense from guests staying in Hotel Sutjeska

-

129.58

142.54

156.80

172.48

189.72

208.70

229.57

229.57

229.57

229.57

229.57

229.57

229.57

229.57

229.57

229.57

229.57

229.57

229.5

Food and Beverage expense from other guests in Hotel Sutjeska

-

25.25

26.00

26.78

27.59

28.41

29.27

30.14

31.05

31.98

32.94

33.93

34.94

35.99

37.07

38.19

39.33

40.51

41.73

42.98


-

6.72

7.28

7.84

8.40

8.96

9.52

10.08

10.64

11.20

11.76

12.32

12.88

13.44

14.00

14.55

15.11

15.67

16.23

16.79

Electrical energy Hotel Sutjeska

-

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95


-

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

Electrical energy Youth House

-

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

Electrical energy Recreational Swimming pool

-

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

Heating energy Hotel Sutjeska

-

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34


-

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25


-

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

Maintenance Hotel Sutjeska

-

1.04

1.08

1.13

1.19

1.24

1.31

1.38

1.39

1.40

1.40

1.41

1.42

1.43

1.44

1.45

1.45

1.46

1.47

1.48

Maintenance Central House

-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

Maintenance Youth House

-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

Maintenance Recreational swimming lake

-

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

Maintenance Sports terrains

-

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

Annual Consessions Fee -

20.06

21.92

23.94

26.16

28.60

31.26

34.18

34.31

34.45

34.58

34.72

34.86

35.01

35.16

35.30

35.46

35.61

35.77

35.93


173

BAM `000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year


-

-

-

-

-

-

-

-

-

188.95

-

-

-

-

-

-

-

-

-

188.9

Required investment in Hotel Sutjeska

-

-

-

-

-

-

-

-

-

124.32

-

-

-

-

-

-

-

-

-

124.3


-

-

-

-

-

-

-

-

-

22.13

-

-

-

-

-

-

-

-

-

22.13


-

-

-

-

-

-

-

-

-

34.01

-

-

-

-

-

-

-

-

-

34.01


-

-

-

-

-

-

-

-

-

1.24

-

-

-

-

-

-

-

-

-

1.24


-

-

-

-

-

-

-

-

-

7.25

-

-

-

-

-

-

-

-

-

7.25

Investment Cash Flow

3,892.27

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


2,486.45

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


442.53

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


680.17

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment in Recreational Swimming lake

24.75

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


145.00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

One-off concession fee 113.37

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow (3,892.27)

266.06

309.99

358.25

411.25

469.48

533.45

603.74

604.82

416.99

607.06

608.23

609.42

610.64

611.89

613.18

614.50

615.86

617.25

429.7

Cumulative cash flow (3,892.27)

(3,626.21)

(3,316.22)

(2,957.97)

(2,546.71)

(2,077.23)

(1,543.78)

(940.04)

(335.22)

81.77

688.83

1,297.06

1,906.48

2,517.12

3,129.01

3,742.19

4,356,691.19

4,972.55

5,589.81

6,019


174



Revenues -

60.74

66.81

73.49

80.84

88.93

97.82

107.60

118.36

130.20

143.22

157.54

173.29

190.62

209.68

230.65

253.72

279.09

307.00

337.70


-

101.81

105.23

108.93

112.94

117.28

122.00

127.11

132.67

138.72

145.31

152.49

160.31

168.85

178.17

188.35

199.47

211.64

224.94

239.51

Employees -

69.97

70.67

71.38

72.09

72.81

73.54

74.28

75.02

75.77

76.53

77.29

78.07

78.85

79.63

80.43

81.24

82.05

82.87

83.70

Food and drinks

-

25.08

27.59

30.35

33.39

36.73

40.40

44.44

48.88

53.77

59.15

65.06

71.57

78.72

86.60

95.26

104.78

115.26

126.79

139.46

Electrical energy

-

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.99

1.02

1.06

1.09

1.13

1.18

1.23

1.28

1.33

1.40

1.46

1.54

1.62

1.70

1.80

1.90

2.01

2.14

2.27


-

1.82

2.00

2.20

2.43

2.67

2.93

3.23

3.55

3.91

4.30

4.73

5.20

5.72

6.29

6.92

7.61

8.37

9.21

10.13


-

-

-

-

-

-

-

-

-

4.50

-

-

-

-

-

-

-

-

-

4.50


92.60

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

89.90

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


2.70

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(92.60)

(41.07)

(38.42)

(35.44)

(32.10)

(28.36)

(24.18)

(19.51)

(14.31)

(13.02)

(2.09)

5.05

12.98

21.78

31.52

42.31

54.25

67.45

82.06

93.70


(92.60)

(133.67)

(172.09)

(207.53)

(239.63)

(267.99)

(292.16)

(311.67)

(325.99)

(339.01)

(341.10)

(336.04)

(323.06)

(301.29)

(269.77)

(227.46)

(173.22)

(105.76)

(23.71)

69.99


175

11.3.4 Pavilion A


Revenues -

27.38

30.11

33.12

36.44

40.08

44.09

48.50

53.35

54.75

54.75

54.75

54.75

54.75

54.75

54.75

54.75

54.75

54.75

54.75


-

34.85

35.24

35.64

36.04

36.47

36.90

37.35

37.82

38.18

38.51

38.84

39.18

39.52

39.86

40.20

40.55

40.90

41.26

41.62

Employees -

29.99

30.29

30.59

30.90

31.21

31.52

31.83

32.15

32.47

32.80

33.13

33.46

33.79

34.13

34.47

34.82

35.16

35.51

35.87

Electrical energy

-

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.34

0.34

0.34

0.35

0.35

0.35

0.36

0.36

0.36

0.37

0.37

0.37

0.37

0.38

0.38

0.39

0.39

0.39

0.40


-

0.82

0.90

0.99

1.09

1.20

1.32

1.45

1.60

1.64

1.64

1.64

1.64

1.64

1.64

1.64

1.64

1.64

1.64

1.64


-

-

-

-

-

-

-

-

3.37

-

-

-

-

-

-

-

-

-

3.37


69.52

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

67.50

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


2.02

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(69.52)

(7.48)

(5.13)

(2.51)

0.39

3.61

7.19

11.15

15.53

13.19

16.24

15.91

15.57

15.23

14.89

14.55

14.20

13.85

13.49

9.76


(69.52)

(77.00)

(82.13)

(84.64)

(84.24)

(80.63)

(73.44)

(62.30)

(46.77)

(33.58)

(17.34)

(1.44)

14.14

29.37

44.26

58.81

73.01

86.86

100.35

110.11


176

11.3.5 Pavilion B


Revenues -

52.01

57.21

62.94

69.23

76.15

83.77

92.14

101.36

104.03

104.03

104.03

104.03

104.03

104.03

104.03

104.03

104.03

104.03

104.03


-

25.42

25.78

26.16

26.55

26.97

27.41

27.87

28.36

28.66

28.88

29.10

29.32

29.54

29.77

30.00

30.23

30.47

30.71

30.94

Employees -

19.99

20.19

20.39

20.60

20.80

21.01

21.22

21.43

21.65

21.86

22.08

22.30

22.53

22.75

22.98

23.21

23.44

23.68

23.91

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.24

0.24

0.24

0.24

0.24

0.25

0.25

0.25

0.25

0.25

0.26

0.26

0.26

0.26

0.27

0.27

0.27

0.27

0.28


-

1.56

1.72

1.89

2.08

2.28

2.51

2.76

3.04

3.12

3.12

3.12

3.12

3.12

3.12

3.12

3.12

3.12

3.12

3.12


-

-

-

-

-

-

-

-

-

11.16

-

-

-

-

-

-

-

-

-

11


229.99

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

223.29

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


6.70

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(229.99)

26.59

31.43

36.78

42.68

49.18

56.36

64.27

73.00

64.20

75.15

74.93

74.71

74.48

74.25

74.02

73.79

73.56

73.32

61.92


(229.99)

(203.40)

(171.96)

(135.19)

(92.51)

(43.33)

13.03

77.31

150.30

214.51

289.66

364.59

439.29

513.77

588.02

662.05

735.84

809.39

882.71

944.63


177

11.3.6 Pavilion C


Revenues -

41.06

45.17

49.69

54.65

60.12

66.13

72.74

80.02

82.13

82.13

82.13

82.13

82.13

82.13

82.13

82.13

82.13

82.13

82.13


-

35.19

35.62

36.06

36.52

36.99

37.49

38.00

38.54

38.93

39.26

39.59

39.93

40.26

40.61

40.95

41.30

41.65

42.01

42.36

Employees -

29.99

30.29

30.59

30.90

31.21

31.52

31.83

32.15

32.47

32.80

33.13

33.46

33.79

34.13

34.47

34.82

35.16

35.51

35.87

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance -

0.34

0.34

0.34

0.35

0.35

0.35

0.35

0.36

0.36

0.36

0.37

0.37

0.37

0.38

0.38

0.38

0.39

0.39

0.40


-

1.23

1.36

1.49

1.64

1.80

1.98

2.18

2.40

2.46

2.46

2.46

2.46

2.46

2.46

2.46

2.46

2.46

2.46

2.46


-

-

-

-

-

-

-

-

-

15

-

-

-

-

-

-

-

-

-

15


310.15

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

301.12

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


9.03

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(310.15)

5.87

9.55

13.63

18.14

23.13

28.64

34.74

41.47

28.14

42.86

42.53

42.20

41.86

41.52

41.17

40.83

40.47

40.12

24.71


(310.15)

(304.28)

(294.73)

(281.10)

(262.96)

(239.83)

(211.19)

(176.45)

(134.98)

(106.84)

(63.97)

(21.44)

20.76

62.62

104.14

145.31

186.14

226.61

266.73

291.44


178

11.3.7 Pavilion D


Revenues -

16.43

18.07

19.87

21.86

24.05

26.45

29.10

32.01

32.85

32.85

32.85

32.85

32.85

32.85

32.85

32.85

32.85

32.85

32.85


-

14.92

15.07

15.23

15.39

15.56

15.74

15.92

16.12

16.25

16.36

16.47

16.58

16.69

16.81

16.92

17.04

17.16

17.28

17.39

Employees -

10.00

10.10

10.20

10.30

10.40

10.51

10.61

10.72

10.82

10.93

11.04

11.15

11.26

11.38

11.49

11.61

11.72

11.84

11.96

Electrical energy

-

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.14

0.14

0.14

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.16

0.16

0.16

0.16

0.16

0.16

0.16


-

0.49

0.54

0.60

0.66

0.72

0.79

0.87

0.96

0.99

0.99

0.99

0.99

0.99

0.99

0.99

0.99

0.99

0.99

0.99


-

-

-

-

-

-

-

-

-

12.72

-

-

-

-

-

-

-

-

-

13


262.01

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

254.37

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


7.63

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(262.01)

1.50

3.00

4.65

6.47

8.49

10.72

13.17

15.89

3.88

16.49

16.38

16.27

16.16

16.04

15.93

15.81

15.69

15.57

2.74


(262.01)

(260.50)

(257.51)

(252.86)

(246.39)

(237.90)

(227.19)

(214.01)

(198.12)

(194.24)

(177.75)

(161.37)

(145.10)

(128.95)

(112.91)

(96.98)

(81.17)

(65.48)

(49.90)

(47.16)


179

11.3.8 Pavilion F


Revenues -

10.95

12.05

13.25

14.57

16.03

17.64

19.40

21.34

21.90

21.90

21.90

21.90

21.90

21.90

21.90

21.90

21.90

21.90

21.90


-

24.19

24.43

24.67

24.91

25.16

25.42

25.69

25.96

26.19

26.41

26.63

26.86

27.08

27.31

27.54

27.77

28.01

28.24

28.48

Employees -

19.99

20.19

20.39

20.60

20.80

21.01

21.22

21.43

21.65

21.86

22.08

22.30

22.53

22.75

22.98

23.21

23.44

23.68

23.91

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.24

0.24

0.24

0.24

0.24

0.25

0.25

0.25

0.25

0.26

0.26

0.26

0.26

0.26

0.27

0.27

0.27

0.27

0.28


-

0.33

0.36

0.40

0.44

0.48

0.53

0.58

0.64

0.66

0.66

0.66

0.66

0.66

0.66

0.66

0.66

0.66

0.66

0.66


-

-

-

-

-

-

-

-

-

10.73

-

-

-

-

-

-

-

-

-

10.73


220.99

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

214.55

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


6.44

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(220.99)

(13.24)

(12.38)

(11.42)

(10.34)

(9.13)

(7.79)

(6.29)

(4.62)

(15.02)

(4.51)

(4.73)

(4.96)

(5.18)

(5.41)

(5.64)

(5.87)

(6.11)

(6.34)

(17.31)


(220.99)

(234.23)

(246.61)

(258.03)

(268.36)

(277.50)

(285.28)

(291.57)

(296.20)

(311.22)

(315.73)

(320.46)

(325.42)

(330.60)

(336.01)

(341.65)

(347.52)

(353.62)

(359.96)

(377.27)


180

11.3.9 Pavilion G


Revenues

-

19.16

21.08

23.19

25.51

28.06

30.86

33.95

37.34

38.33

38.33

38.33

38.33

38.33

38.33

38.33

38.33

38.33

38.33

38.33

Operational expense

-

14.34

14.50

14.67

14.84

15.02

15.21

15.41

15.62

15.75

15.86

15.97

16.09

16.20

16.31

16.43

16.54

16.66

16.78

16.90

Employees

-

10.00

10.10

10.20

10.30

10.40

10.51

10.61

10.72

10.82

10.93

11.04

11.15

11.26

11.38

11.49

11.61

11.72

11.84

11.96

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.16


-

0.57

0.63

0.70

0.77

0.84

0.93

1.02

1.12

1.15

1.15

1.15

1.15

1.15

1.15

1.15

1.15

1.15

1.15

1.15


-

-

-

-

-

-

-

-

-

4.43

-

-

-

-

-

-

-

-

-

4.43


91.19

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

88.53

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


2.66

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(91.19)

4.82

6.58

8.52

10.67

13.04

15.65

18.54

21.73

18.14

22.46

22.35

22.24

22.13

22.01

21.90

21.78

21.67

21.55

17.00


(91.19)

(86.37)

(79.79)

(71.27)

(60.60)

(47.57)

(31.91)

(13.37)

8.35

26.50

48.96

71.31

93.55

115.68

137.69

159.59

181.37

203.04

224.58

241.59


181

11.3.10 Bungalow


Revenues -

10.95 12.05 13.25 14.57

16.03 17.64 19.40 21.34

21.90 21.90 21.90 21.90

21.90 21.90 21.90 21.90

21.90 21.90 21.90


- 10.90 11.04

11.18 11.32 11.47 11.62

11.78 11.94 12.07 12.18

12.29 12.40 12.51 12.63

12.74 12.86 12.98 13.09

13.21

Employees -

10.00 10.10 10.20 10.30 10.40

10.51 10.61 10.72 10.82 10.93

11.04 11.15 11.26 11.38 11.49

11.61 11.72 11.84 11.96

Electrical energy -

0.05 0.05 0.05 0.05 0.05

0.05 0.05 0.05 0.05 0.05

0.05 0.05 0.05 0.05 0.05

0.05 0.05 0.05 0.05

Heating energy -

0.43 0.43 0.43 0.43 0.43

0.43 0.43 0.43 0.43 0.43

0.43 0.43 0.43 0.43 0.43

0.43 0.43 0.43 0.43

Maintainance -

0.10 0.11 0.11 0.11 0.11

0.11 0.11 0.11 0.11 0.11

0.12 0.12 0.12 0.12 0.12

0.12 0.12 0.12 0.12


- 0.33 0.36 0.40

0.44 0.48 0.53 0.58 0.64

0.66 0.66 0.66 0.66 0.66

0.66 0.66 0.66 0.66 0.66

0.66

Investment maintenance cash flow - - - - - - - - - 1.76 - - - - - - - - - 1.76


36.26 - - - - - - - - - - - - - - - - - - -

Required investment 35.20 - - - - - - - - - - - - - - - - - - -


1.06 - - - - - - - - - - - - - - - - - - -

Neto cash flow (36.26) 0.05 1.01 2.07 3.26 4.57 6.02 7.62 9.39 8.07 9.72 9.61 9.50 9.39 9.27 9.16 9.04 8.92 8.81 6.93


(36.26) (36.21) (35.20) (33.13) (29.87) (25.31) (19.29) (11.67) (2.28) 5.79 15.51 25.12 34.62 44.01 53.28 62.44 71.48 80.41 89.22 96.14


182

11.3.11 Camp


Revenues

-

22.50

24.75

27.23

29.95

32.94

36.24

39.86

43.85

45.00

45.00

45.00

45.00

45.00

45.00

45.00

45.00

45.00

45.00

45.00


-

3.27

3.37

3.47

3.58

3.69

3.82

3.95

4.10

4.16

4.19

4.22

4.25

4.28

4.31

4.34

4.37

4.40

4.43

4.46

Employees

-

2.50

2.52

2.55

2.57

2.60

2.63

2.65

2.68

2.71

2.73

2.76

2.79

2.82

2.84

2.87

2.90

2.93

2.96

2.99

Maintainance

-

0.10

0.10

0.10

0.10

0.10

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.12

0.12

0.12

0.12


-

0.68

0.74

0.82

0.90

0.99

1.09

1.20

1.32

1.35

1.35

1.35

1.35

1.35

1.35

1.35

1.35

1.35

1.35

1.35


-

-

-

-

-

-

-

-

-

0.75

-

-

-

-

-

-

-

-

-

0.75


15.45

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

15.00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


0.45

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(15.45)

19.23

21.38

23.76

26.37

29.25

32.42

35.91

39.74

40.84

40.81

40.78

40.75

40.72

40.69

40.66

40.63

40.60

40.57

40.54


(15.45)

3.78

25.16

48.92

75.29

104.54

136.95

172.86

212.60

253.44

294.25

335.03

375.78

416.50

457.19

497.85

538.49

579.09

619.66

660.20


183

11.4 Optimistic scenario

Overview of key assumption for optimistic scenario calculations are given in table below.



Price per bed per overnight stay (BAM)

Nr. of employees


Investment maintenance every 10 years

Electrical energy kWh/year


Maintenance

Hotel Mladost 30% 15% 20 27 255,523 5% 43,200 258,189

0.3% of total operational expenses

Hotel Sutjeska 30% 15% 20 21 2,486,453 5% 75,960 215,157


Central House - 1 event 1,500 0 1,770,120 5% 38,850 247,432 400

Youth House - 1 event 500 0 2,720,678 5% 31,200 134,474 400

Recrational swimming lake

- 0% - 1 99,000 5% 14,286 - 2,500

Sports terrains - 0% - 1 579,990 5% - - 1,250

Restaurant Jezero - 20% 11 89,900 5% 5,120 32,274

1% of total operational expenses

Pavilion A 30% 15% 15 4 67,495 5% 3,988 43,032


Pavilion B 30% 15% 15 3 223,287 5% 3,641 43,032


Pavilion C 30% 15% 15 4 301,115 5% 3,641 43,032


Pavilion D 30% 15% 15 2 254,374 5% 6,760 43,032


Pavilion F 30% 15% 15 1 214,549 5% 3,642 43,032


Pavilion G 30% 15% 15 2 88,533 5% 3,642 43,032


Bungalow 30% 15% 15 1 35,200 5% 220 6,455


Camp 30% 15% 10 1 15,000 5% - - 4% of total operational

expenses


BAM/kWh.


184



Revenues

-

963.84

1,102.21

1,260.90

1,442.96

1,651.87

1,655.17

1,658.50

1,661.87

1,665.29

1,668.74

1,672.25

1,675.79

1,679.38

1,683.02

1,686.71

1,690.45

1,694.24

1,698.09

1,701.99

Room revenue

-

359.16

413.03

474.99

546.24

628.17

628.17

628.17

628.17

628.17

628.17

628.17

628.17

628.17

628.17

628.17

628.17

628.17

628.17


-

542.33

623.68

717.23

824.82

948.54

948.54

948.54

948.54

948.54

948.54

948.54

948.54

948.54

948.54

948.54

948.54

948.54

948.54

948.54


-

38.34

39.49

40.68

41.90

43.16

44.45

45.78

47.16

48.57

50.03

51.53

53.08

54.67

56.31

58.00

59.74

61.53

63.38

65.28


-

18.00

19.50

21.00

22.50

24.00

25.50

27.00

28.50

30.00

31.50

33.00

34.50

36.00

37.50

39.00

40.50

42.00

43.50

45.00


-

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

10.00

10.50

11.00

11.50

12.00

12.50

13.00

13.50

14.00

14.50

15.00


-

514.77

552.46

595.35

644.24

700.00

703.32

706.68

710.08

790.91

716.99

720.51

724.06

727.66

731.30

734.99

738.72

742.49

746.31

827.58


-

204.92

206.97

209.04

211.13

213.24

215.37

217.52

219.70

221.90

224.12

226.36

228.62

230.91

233.22

235.55

237.90

240.28

242.69

245.11


-

1.25

1.26

1.27

1.29

1.30

1.31

1.33

1.34

1.35

1.37

1.38

1.39

1.41

1.42

1.44

1.45

1.47

1.48

1.49


-

2.50

2.52

2.55

2.57

2.60

2.63

2.65

2.68

2.71

2.73

2.76

2.79

2.82

2.84

2.87

2.90

2.93

2.96

2.99 Food and Beverage expense from guests staying in Hotel Mladost

-

202.40

232.76

267.67

307.82

354.00

354.00

354.00

354.00

354.00

354.00

354.00

354.00

354.00

354.00

354.00

354.00

354.00

354.00

354.00


-

14.31

14.74

15.18

15.64

16.11

16.59

17.09

17.60

18.13

18.67

19.23

19.81

20.40

21.01

21.65

22.29

22.96

23.65

24.36


-

6.72

7.28

7.84

8.40

8.96

9.52

10.08

10.64

11.20

11.76

12.32

12.88

13.44

14.00

14.55

15.11

15.67

16.23

16.79


-

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07


-

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08


-

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28


-

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50


-

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21


-

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25


-

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48


-

1.34

1.44

1.55

1.68

1.83

1.84

1.84

1.85

1.86

1.87

1.88

1.89

1.89

1.90

1.91

1.92

1.93

1.94

1.95


-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40


-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40


-

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50


-

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25


-

28.92

33.07

37.83

43.29

49.56

49.65

49.75

49.86

49.96

50.06

50.17

50.27

50.38

50.49

50.60

50.71

50.83

50.94

51.06


-

-

-

-

-

-

-

-

-

77.40

-

-

-

-

-

-

-

-

-

77.40


-

-

-

-

-

-

-

-

-

12.78

-

-

-

-

-

-

-

-

-

12.78


-

-

-

-

-

-

-

-

-

22.13

-

-

-

-

-

-

-

-

-

22.13


-

-

-

-

-

-

-

-

-

34.01

-

-

-

-

-

-

-

-

-

34.01


-

-

-

-

-

-

-

-

-

1.24

-

-

-

-

-

-

-

-

-

1.24


-

-

-

-

-

-

-

-

-

7.25

-

-

-

-

-

-

-

-

-

7.25


1,594.41

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


255.52

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


442.53

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


185



680.17

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


24.75

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


145.00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


46.44

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Net cash flow

(1,594.41)

449.06

549.75

665.55

798.72

951.87

951.84

951.82

951.79

796.97

951.75

951.74

951.73

951.72

951.72

951.73

951.74

951.75

951.78

797.02


(1,594.41)

(1,145.35)

(595.59)

69.95

868.67

1,820.54

2,772.38

3,724.19

4,675.99

5,472.96

6,424.71

7,376.45

8,328.18

9,279.90

10,231.62

11,183.35

12,135.09

13,086.84

14,038,621.89

14,835.64


186



Revenue

-

784.25

892.17

1,015.74

1,157.29

1,319.51

1,323.80

1,328.15

1,332.57

1,337.07

1,341.64

1,346.29

1,351.01

1,355.82

1,360.72

1,365.70

1,370.77

1,375.93

1,381.18

1,386.54

Room revenue

-

275.94

317.33

364.93

419.67

482.62

482.62

482.62

482.62

482.62

482.62

482.62

482.62

482.62

482.62

482.62

482.62

482.62

482.62

482.62

Food and Beverage revenue from

guest staying in Hotel Sutjeska

-

416.67

479.17

551.05

633.70

728.76

728.76

728.76

728.76

728.76

728.76

728.76

728.76

728.76

728.76

728.76

728.76

728.76

728.76

728.76

Food and Beverage revenue from

other guests in Hotel Sutjeska

-

67.64

69.67

71.76

73.92

76.13

78.42

80.77

83.19

85.69

88.26

90.91

93.64

96.45

99.34

102.32

105.39

108.55

111.81

115.16

Food and Beverage revenue

Central House

-

18.00

19.50

21.00

22.50

24.00

25.50

27.00

28.50

30.00

31.50

33.00

34.50

36.00

37.50

39.00

40.50

42.00

43.50

45.00

Conferences and events in Youth

House

-

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

10.00

10.50

11.00

11.50

12.00

12.50

13.00

13.50

14.00

14.50

15.00


-

432.22

461.81

495.42

533.65

577.18

580.43

583.73

587.07

590.46

593.90

597.38

600.92

604.51

608.14

611.84

615.59

619.39

623.25

627.17


-

159.94

161.54

163.15

164.78

166.43

168.09

169.78

171.47

173.19

174.92

176.67

178.44

180.22

182.02

183.84

185.68

187.54

189.41

191.31

Employees Recreational

Swimming lake

-

1.25

1.26

1.27

1.29

1.30

1.31

1.33

1.34

1.35

1.37

1.38

1.39

1.41

1.42

1.44

1.45

1.47

1.48

1.49


-

2.50

2.52

2.55

2.57

2.60

2.63

2.65

2.68

2.71

2.73

2.76

2.79

2.82

2.84

2.87

2.90

2.93

2.96

2.99

Food and Beverage expense from

guests staying in Hotel Sutjeska

-

155.50

178.83

205.65

236.50

271.97

271.97

271.97

271.97

271.97

271.97

271.97

271.97

271.97

271.97

271.97

271.97

271.97

271.97

271.97

Food and Beverage expense from

other guests in Hotel Sutjeska

-

25.25

26.00

26.78

27.59

28.41

29.27

30.14

31.05

31.98

32.94

33.93

34.94

35.99

37.07

38.19

39.33

40.51

41.73

42.98

Food and Beverage expense in

Central House

-

6.72

7.28

7.84

8.40

8.96

9.52

10.08

10.64

11.20

11.76

12.32

12.88

13.44

14.00

14.55

15.11

15.67

16.23

16.79


-

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95


-

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08


-

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

Electrical energy Recreational

Swimming pool

-

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50


-

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34


-

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25


-

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48


-

1.11

1.19

1.28

1.38

1.49

1.50

1.51

1.51

1.52

1.53

1.54

1.55

1.56

1.56

1.57

1.58

1.59

1.60

1.61


-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40


-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

Maintenance Recreational

swimming lake

-

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50


-

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25


-

23.53

26.77

30.47

34.72

39.59

39.71

39.84

39.98

40.11

40.25

40.39

40.53

40.67

40.82

40.97

41.12

41.28

41.44

41.60

Investment maintenance cash

flow

-

-

-

-

-

-

-

-

-

188.95

-

-

-

-

-

-

-

-

-

188.95

Required investment in Hotel

Sutjeska

-

-

-

-

-

-

-

-

-

124.32

-

-

-

-

-

-

-

-

-

124.32

Required investment in Central

House

-

-

-

-

-

-

-

-

-

22.13

-

-

-

-

-

-

-

-

-

22.13


187


Required investment in Youth

House

-

-

-

-

-

-

-

-

-

34.01

-

-

-

-

-

-

-

-

-

34.01

Required investment in

Recreational swimming lake

-

-

-

-

-

-

-

-

-

1.24

-

-

-

-

-

-

-

-

-

1.24

Required investment in Sports

terrains

-

-

-

-

-

-

-

-

-

7.25

-

-

-

-

-

-

-

-

-

7.25


3,892.27

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment in Hotel

Sutjeska

2,486.45

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment in Central

House

442.53

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment in Youth

House

680.17

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment in

Recreational Swimming lake

24.75

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment in Sports

terrains

145.00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


113.37

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(3,892.27)

352.03

430.36

520.32

623.64

742.33

743.36

744.42

745.50

557.66

747.74

748.90

750.10

751.32

752.57

753.86

755.18

756.54

757.93

570.42


(3,892.27)

(3,540.23)

(3,109.87)

(2,589.55)

(1,965.92)

(1,223.58)

(480.22)

264.20

1,009.70

1,567.37

2,315.11

3,064.02

3,814.11

4,565.43

5,318.00

6,071.86

6,827,041.57

7,583.58

8,341.51

8,911.94


188



Revenues -

60.74

69.85

80.33

92.37

106.23

122.17

140.49

161.56

185.80

213.67

245.72

282.58

324.96

373.71

429.76

494.23

568.36

653.62

751.66


-

101.81

106.59

111.99

118.10

125.02

132.88

141.82

151.99

163.58

176.81

191.91

209.17

228.91

251.50

277.37

307.01

340.97

379.92

424.60

Employees -

69.97

70.67

71.38

72.09

72.81

73.54

74.28

75.02

75.77

76.53

77.29

78.07

78.85

79.63

80.43

81.24

82.05

82.87

83.70

Food and drinks

-

25.08

28.85

33.17

38.15

43.87

50.45

58.02

66.72

76.73

88.24

101.48

116.70

134.21

154.34

177.49

204.11

234.73

269.94

310.43

Electrical energy

-

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance -

0.99

1.03

1.08

1.14

1.21

1.28

1.36

1.46

1.56

1.69

1.83

1.99

2.17

2.38

2.62

2.89

3.21

3.57

3.98


-

1.82

2.10

2.41

2.77

3.19

3.66

4.21

4.85

5.57

6.41

7.37

8.48

9.75

11.21

12.89

14.83

17.05

19.61

22.55


-

-

-

-

-

-

-

-

-

4.50

-

-

-

-

-

-

-

-

-

4.50


92.60

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

89.90

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


2.70

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(92.60)

(41.07)

(36.74)

(31.66)

(25.72)

(18.79)

(10.72)

(1.33)

9.57

17.72

36.86

53.81

73.40

96.05

122.20

152.39

187.22

227.39

273.70

322.57


(92.60)

(133.67)

(170.41)

(202.07)

(227.80)

(246.59)

(257.30)

(258.63)

(249.05)

(231.33)

(194.47)

(140.67)

(67.26)

28.79

150.99

303.38

490.61

717.99

991.69

1,314.26


189

11.4.4 Pavilion A


Revenues -

32.85

37.78

43.44

49.96

57.45

66.07

66.07

66.07

66.07

66.07

66.07

66.07

66.07

66.07

66.07

66.07

66.07

66.07

66.07


-

35.02

35.47

35.94

36.45

36.99

37.56

37.88

38.20

38.52

38.85

39.18

39.52

39.86

40.20

40.54

40.89

41.24

41.60

41.96

Employees -

29.99

30.29

30.59

30.90

31.21

31.52

31.83

32.15

32.47

32.80

33.13

33.46

33.79

34.13

34.47

34.82

35.16

35.51

35.87

Electrical energy

-

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.34

0.34

0.34

0.35

0.35

0.35

0.36

0.36

0.36

0.37

0.37

0.37

0.37

0.38

0.38

0.39

0.39

0.39

0.40


-

0.99

1.13

1.30

1.50

1.72

1.98

1.98

1.98

1.98

1.98

1.98

1.98

1.98

1.98

1.98

1.98

1.98

1.98

1.98


-

-

-

-

-

-

-

-

3.37

-

-

-

-

-

-

-

-

-

3.37


69.52

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

67.50

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


2.02

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(69.52)

(2.17)

2.31

7.50

13.51

20.47

28.51

28.19

27.87

24.17

27.22

26.89

26.55

26.22

25.88

25.53

25.18

24.83

24.48

20.74


(69.52)

(71.69)

(69.38)

(61.88)

(48.37)

(27.90)

0.61

28.81

56.68

80.85

108.07

134.96

161.52

187.74

213.61

239.14

264.32

289.16

313.63

334.37


190

11.4.5 Pavilion B


Revenues -

62.42

71.78

82.54

94.93

109.16

125.54

125.54

125.54

125.54

125.54

125.54

125.54

125.54

125.54

125.54

125.54

125.54

125.54

125.54


-

25.74

26.22

26.75

27.32

27.96

28.66

28.87

29.09

29.30

29.52

29.74

29.97

30.19

30.42

30.65

30.88

31.11

31.35

31.59

Employees -

19.99

20.19

20.39

20.60

20.80

21.01

21.22

21.43

21.65

21.86

22.08

22.30

22.53

22.75

22.98

23.21

23.44

23.68

23.91

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.24

0.24

0.24

0.24

0.24

0.25

0.25

0.25

0.25

0.25

0.26

0.26

0.26

0.26

0.27

0.27

0.27

0.27

0.28


-

1.87

2.15

2.48

2.85

3.27

3.77

3.77

3.77

3.77

3.77

3.77

3.77

3.77

3.77

3.77

3.77

3.77

3.77

3.77


-

-

-

-

-

-

-

-

-

11.16

-

-

-

-

-

-

-

-

-

11


229.99

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

223.29

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


6.70

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(229.99)

36.68

45.56

55.80

67.60

81.21

96.88

96.67

96.45

85.07

96.02

95.80

95.57

95.35

95.12

94.89

94.66

94.42

94.19

82.78


(229.99)

(193.31)

(147.75)

(91.95)

(24.35)

56.86

153.74

250.41

346.86

431.93

527.95

623.75

719.32

814.67

909.79

1,004.68

1,099.34

1,193.76

1,287.95

1,370.74


191

11.4.6 Pavilion C


Revenues -

49.28

56.67

65.17

74.94

86.18

99.11

99.11

99.11

99.11

99.11

99.11

99.11

99.11

99.11

99.11

99.11

99.11

99.11

99.11


-

35.44

35.96

36.52

37.13

37.77

38.48

38.80

39.12

39.44

39.77

40.10

40.44

40.77

41.12

41.46

41.81

42.16

42.51

42.87

Employees -

29.99

30.29

30.59

30.90

31.21

31.52

31.83

32.15

32.47

32.80

33.13

33.46

33.79

34.13

34.47

34.82

35.16

35.51

35.87

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance -

0.34

0.34

0.34

0.35

0.35

0.35

0.35

0.36

0.36

0.36

0.37

0.37

0.37

0.38

0.38

0.38

0.39

0.39

0.40


-

1.48

1.70

1.95

2.25

2.59

2.97

2.97

2.97

2.97

2.97

2.97

2.97

2.97

2.97

2.97

2.97

2.97

2.97

2.97


-

-

-

-

-

-

-

-

-

15

-

-

-

-

-

-

-

-

-

15


310.15

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

301.12

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


9.03

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(310.15)

13.84

20.70

28.64

37.82

48.41

60.63

60.31

59.99

44.61

59.34

59.01

58.67

58.34

57.99

57.65

57.30

56.95

56.59

41.18


(310.15)

(296.31)

(275.61)

(246.96)

(209.15)

(160.74)

(100.11)

(39.79)

20.20

64.81

124.15

183.16

241.83

300.17

358.16

415.81

473.11

530.06

586.66

627.84


192

11.4.7 Pavilion D


Revenues -

19.71

22.67

26.07

29.98

34.47

39.64

39.64

39.64

39.64

39.64

39.64

39.64

39.64

39.64

39.64

39.64

39.64

39.64

39.64


-

15.02

15.21

15.41

15.63

15.87

16.13

16.24

16.35

16.45

16.56

16.67

16.79

16.90

17.01

17.13

17.24

17.36

17.48

17.60

Employees -

10.00

10.10

10.20

10.30

10.40

10.51

10.61

10.72

10.82

10.93

11.04

11.15

11.26

11.38

11.49

11.61

11.72

11.84

11.96

Electrical energy

-

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance -

0.14

0.14

0.14

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.16

0.16

0.16

0.16

0.16

0.16

0.16


-

0.59

0.68

0.78

0.90

1.03

1.19

1.19

1.19

1.19

1.19

1.19

1.19

1.19

1.19

1.19

1.19

1.19

1.19

1.19


-

-

-

-

-

-

-

-

-

12.72

-

-

-

-

-

-

-

-

-

13


262.01

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

254.37

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


7.63

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(262.01)

4.69

7.46

10.65

14.34

18.60

23.51

23.40

23.30

10.47

23.08

22.97

22.86

22.75

22.63

22.52

22.40

22.28

22.16

9.33


(262.01)

(257.32)

(249.86)

(239.21)

(224.86)

(206.26)

(182.75)

(159.35)

(136.05)

(125.58)

(102.50)

(79.53)

(56.67)

(33.93)

(11.30)

11.22

33.62

55.90

78.07

87.40


193

11.4.8 Pavilion F


Revenues -

13.14

15.11

17.38

19.98

22.98

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43


-

24.26

24.52

24.79

25.07

25.37

25.69

25.90

26.11

26.33

26.55

26.77

26.99

27.22

27.44

27.67

27.91

28.14

28.38

28.62

Employees -

19.99

20.19

20.39

20.60

20.80

21.01

21.22

21.43

21.65

21.86

22.08

22.30

22.53

22.75

22.98

23.21

23.44

23.68

23.91

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance -

0.24

0.24

0.24

0.24

0.24

0.25

0.25

0.25

0.25

0.26

0.26

0.26

0.26

0.26

0.27

0.27

0.27

0.27

0.28


-

0.39

0.45

0.52

0.60

0.69

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79


-

-

-

-

-

-

-

-

-

10.73

-

-

-

-

-

-

-

-

-

10.73


220.99

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

214.55

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


6.44

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(220.99)

(11.12)

(9.41)

(7.41)

(5.09)

(2.39)

0.74

0.53

0.32

(10.63)

(0.12)

(0.34)

(0.56)

(0.79)

(1.02)

(1.25)

(1.48)

(1.71)

(1.95)

(12.92)


(220.99)

(232.10)

(241.51)

(248.92)

(254.01)

(256.41)

(255.66)

(255.13)

(254.82)

(265.44)

(265.56)

(265.90)

(266.46)

(267.25)

(268.27)

(269.51)

(270.99)

(272.70)

(274.65)

(287.57)


194

11.4.9 Pavilion G


Revenues

-

23.00

26.44

30.41

34.97

40.22

46.25

46.25

46.25

46.25

46.25

46.25

46.25

46.25

46.25

46.25

46.25

46.25

46.25

46.25

Operational expense

-

14.46

14.66

14.88

15.12

15.38

15.67

15.78

15.88

15.99

16.10

16.21

16.32

16.44

16.55

16.66

16.78

16.90

17.02

17.14

Employees

-

10.00

10.10

10.20

10.30

10.40

10.51

10.61

10.72

10.82

10.93

11.04

11.15

11.26

11.38

11.49

11.61

11.72

11.84

11.96

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.16


-

0.69

0.79

0.91

1.05

1.21

1.39

1.39

1.39

1.39

1.39

1.39

1.39

1.39

1.39

1.39

1.39

1.39

1.39

1.39


-

-

-

-

-

-

-

-

-

4.43

-

-

-

-

-

-

-

-

-

4.43


91.19

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

88.53

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


2.66

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(91.19)

8.54

11.78

15.53

19.85

24.83

30.58

30.47

30.37

25.83

30.15

30.04

29.93

29.82

29.70

29.59

29.47

29.35

29.24

24.69


(91.19)

(82.65)

(70.87)

(55.34)

(35.49)

(10.66)

19.92

50.40

80.77

106.60

136.75

166.79

196.72

226.53

256.24

285.82

315.29

344.65

373.88

398.57


195

11.4.10 Bungalow


Revenues -

13.14

15.11

17.38

19.98

22.98

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43

26.43


-

10.97

11.13

11.30

11.48

11.68

11.88

11.99

12.10

12.21

12.31

12.42

12.54

12.65

12.76

12.88

12.99

13.11

13.23

13.35

Employees -

10.00

10.10

10.20

10.30

10.40

10.51

10.61

10.72

10.82

10.93

11.04

11.15

11.26

11.38

11.49

11.61

11.72

11.84

11.96

Electrical energy

-

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

Heating energy

-

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

Maintainance

-

0.10

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.12

0.12

0.12

0.12

0.12

0.12

0.12

0.12

0.12


-

0.39

0.45

0.52

0.60

0.69

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79

0.79


-

-

-

-

-

-

-

-

-

1.76

-

-

-

-

-

-

-

-

-

1.76


36.26

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

35.20

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


1.06

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(36.26)

2.17

3.98

6.08

8.50

11.31

14.55

14.44

14.33

12.46

14.11

14.00

13.89

13.78

13.67

13.55

13.44

13.32

13.20

11.32


(36.26)

(34.09)

(30.10)

(24.03)

(15.52)

(4.22)

10.33

24.77

39.10

51.56

65.68

79.68

93.58

107.36

121.02

134.57

148.01

161.33

174.53

185.85


196

11.4.11 Camp


Revenues

-

27.00

31.05

35.71

41.06

47.22

54.31

54.31

54.31

54.31

54.31

54.31

54.31

54.31

54.31

54.31

54.31

54.31

54.31

54.31


-

3.41

3.56

3.72

3.91

4.12

4.36

4.39

4.42

4.44

4.47

4.50

4.53

4.56

4.59

4.62

4.65

4.68

4.71

4.74

Employees

-

2.50

2.52

2.55

2.57

2.60

2.63

2.65

2.68

2.71

2.73

2.76

2.79

2.82

2.84

2.87

2.90

2.93

2.96

2.99

Maintainance

-

0.10

0.10

0.10

0.10

0.10

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.12

0.12

0.12

0.12


-

0.81

0.93

1.07

1.23

1.42

1.63

1.63

1.63

1.63

1.63

1.63

1.63

1.63

1.63

1.63

1.63

1.63

1.63

1.63


-

-

-

-

-

-

-

-

-

0.75

-

-

-

-

-

-

-

-

-

0.75


15.45

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

15.00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


0.45

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(15.45)

23.59

27.49

31.99

37.15

43.10

49.95

49.92

49.89

49.86

49.84

49.81

49.78

49.75

49.72

49.69

49.66

49.63

49.60

49.57


(15.45)

8.14

35.63

67.62

104.77

147.88

197.82

247.74

297.63

347.49

397.33

447.14

496.91

546.66

596.38

646.07

695.73

745.36

794.96

844.53


197

11.5 Pessimistic scenario

Overview of key assumption for pessimistic scenario calculations are given in table below.



Price per bed per overnight stay (BAM)

Nr. of employees


Investment maintenance every 10 years

Electrical energy kWh/year


Maintenance

Hotel Mladost 15% 5% 20 27 255,523 5% 43,200 258,189 0.3% of total operational

expenses

Hotel Sutjeska 15% 5% 20 21 2,486,453 5%

75,960 215,157 0.3% of total operational

expenses

Central House - 1 event 1,500 0 1,770,120 5% 38,850 247,432 400

Youth House - 1 event 500 0 2,720,678 5% 31,200 134,474 400 Recrational swimming lake - 0% - 1 99,000

5% 14,286 - 2,500

Sports terrains - 0% - 1 579,990 5% - - 1,250


5,120 32,274 1% of total operational

expenses

Pavilion A 15%

5% 15 4 67,495 5%


expenses

Pavilion B 15%

5% 15 3 223,287 5%


expenses

Pavilion C 15%

5% 15 4 301,115 5%


expenses

Pavilion D 15%

5% 15 2 254,374 5%


expenses

Pavilion F 15%

5% 15 1 214,549 5%


expenses

Pavilion G 15%

5% 15 2 88,533 5%


expenses

Bungalow 15%

5% 15 1 35,200 5%

220 6,455 1% of total operational

expenses

Camp 15%

5% 10 1 15,000 5%

- - 4% of total operational

expenses


BAM/kWh.


198


BAM `000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year

7 Year

8 Year

9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20

Revenues

-

663.34

696.54

731.28

767.63

805.67

845.49

887.17

930.82

976.52

1,024.37

1,074.49

1,126.98

1,154.41

1,158.05

1,161.74

1,165.48

1,169.27

1,173.12

1,177.02

Room revenue

-

239.44

251.41

263.98

277.18

291.04

305.59

320.87

336.92

353.76

371.45

390.02

409.52

419.02

419.02

419.02

419.02

419.02

419.02


-

361.55

379.63

398.61

418.54

439.47

461.45

484.52

508.74

534.18

560.89

588.93

618.38

632.72

632.72

632.72

632.72

632.72

632.72

632.72


-

38.34

39.49

40.68

41.90

43.16

44.45

45.78

47.16

48.57

50.03

51.53

53.08

54.67

56.31

58.00

59.74

61.53

63.38

65.28


-

18.00

19.50

21.00

22.50

24.00

25.50

27.00

28.50

30.00

31.50

33.00

34.50

36.00

37.50

39.00

40.50

42.00

43.50

45.00


-

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

10.00

10.50

11.00

11.50

12.00

12.50

13.00

13.50

14.00

14.50

15.00


-

438.09

448.93

460.20

471.90

484.06

496.70

509.85

523.52

615.15

552.55

567.97

584.01

593.69

597.34

601.02

604.75

608.52

612.34

693.61


-

204.92

206.97

209.04

211.13

213.24

215.37

217.52

219.70

221.90

224.12

226.36

228.62

230.91

233.22

235.55

237.90

240.28

242.69

245.11


-

1.25

1.26

1.27

1.29

1.30

1.31

1.33

1.34

1.35

1.37

1.38

1.39

1.41

1.42

1.44

1.45

1.47

1.48

1.49


-

2.50

2.52

2.55

2.57

2.60

2.63

2.65

2.68

2.71

2.73

2.76

2.79

2.82

2.84

2.87

2.90

2.93

2.96

2.99


-

134.93

141.68

148.76

156.20

164.01

172.21

180.82

189.86

199.36

209.32

219.79

230.78

236.13

236.13

236.13

236.13

236.13

236.13

236.13


-

14.31

14.74

15.18

15.64

16.11

16.59

17.09

17.60

18.13

18.67

19.23

19.81

20.40

21.01

21.65

22.29

22.96

23.65

24.36


-

6.72

7.28

7.84

8.40

8.96

9.52

10.08

10.64

11.20

11.76

12.32

12.88

13.44

14.00

14.55

15.11

15.67

16.23

16.79


-

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07

9.07


-

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08


-

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28


-

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50


-

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21

17.21


-

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25


-

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48


-

1.14

1.17

1.20

1.23

1.26

1.29

1.33

1.36

1.40

1.44

1.47

1.52

1.54

1.55

1.56

1.57

1.58

1.59

1.60


-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40


-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40


-

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50


-

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25


-

19.90

20.90

21.94

23.03

24.17

25.36

26.62

27.92

29.30

30.73

32.23

33.81

34.63

34.74

34.85

34.96

35.08

35.19

35.31


-

-

-

-

-

-

-

-

-

77.40

-

-

-

-

-

-

-

-

-

77.40


-

-

-

-

-

-

-

-

-

12.78

-

-

-

-

-

-

-

-

-

12.78


-

-

-

-

-

-

-

-

-

22.13

-

-

-

-

-

-

-

-

-

22.13


199

BAM `000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year

7 Year

8 Year

9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20


-

-

-

-

-

-

-

-

-

34.01

-

-

-

-

-

-

-

-

-

34.01


-

-

-

-

-

-

-

-

-

1.24

-

-

-

-

-

-

-

-

-

1.24


-

-

-

-

-

-

-

-

-

7.25

-

-

-

-

-

-

-

-

-

7.25


1,594.41

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


255.52

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


442.53

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


680.17

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


24.75

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


145.00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


46.44

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Net cash flow

(1,594.41)

225.25

247.60

271.08

295.72

321.61

348.78

377.32

407.29

283.97

471.82

506.52

542.97

560.72

560.71

560.72

560.73

560.75

560.77

406.01


(1,594.41)

(1,369.16)

(1,121.56)

(850.48)

(554.76)

(233.15)

115.63

492.96

900.25

1,184.22

1,656.04

2,162.56

2,705.53

3,266.24

3,826.95

4,387.67

4,948.40

5,509.15

6,069,924.02

6,475.93


200


BAM `000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year

14 Year

15 Year

16 Year 17 Year 18 Year 19 Year 20

Revenue -

553.38

580.50

608.83

638.44

669.38

701.73

735.55

770.91

807.89

846.57

887.03

929.37

952.49

957.38

962.36

967.43

972.59

977.85

983.20

Room revenue -

183.96

193.16

202.82

212.96

223.60

234.78

246.52

258.85

271.79

285.38

299.65

314.63

321.93

321.93

321.93

321.93

321.93

321.93

321.93

Food and Beverage revenue from guest staying in Hotel Sutjeska

-

277.78

291.67

306.25

321.56

337.64

354.52

372.25

390.86

410.41

430.93

452.47

475.10

486.11

486.11

486.11

486.11

486.11

486.11

486.11


-

67.64

69.67

71.76

73.92

76.13

78.42

80.77

83.19

85.69

88.26

90.91

93.64

96.45

99.34

102.32

105.39

108.55

111.81

115.16


-

18.00

19.50

21.00

22.50

24.00

25.50

27.00

28.50

30.00

31.50

33.00

34.50

36.00

37.50

39.00

40.50

42.00

43.50

45.00


-

6.00

6.50

7.00

7.50

8.00

8.50

9.00

9.50

10.00

10.50

11.00

11.50

12.00

12.50

13.00

13.50

14.00

14.50

15.00


-

373.30

382.28

391.59

401.25

411.27

421.69

432.50

443.74

455.42

467.56

480.19

493.32

501.58

505.22

508.91

512.66

516.46

520.33

524.25


-

159.94

161.54

163.15

164.78

166.43

168.09

169.78

171.47

173.19

174.92

176.67

178.44

180.22

182.02

183.84

185.68

187.54

189.41

191.31


-

1.25

1.26

1.27

1.29

1.30

1.31

1.33

1.34

1.35

1.37

1.38

1.39

1.41

1.42

1.44

1.45

1.47

1.48

1.49


-

2.50

2.52

2.55

2.57

2.60

2.63

2.65

2.68

2.71

2.73

2.76

2.79

2.82

2.84

2.87

2.90

2.93

2.96

2.99


-

103.67

108.85

114.29

120.01

126.01

132.31

138.92

145.87

153.16

160.82

168.86

177.31

181.42

181.42

181.42

181.42

181.42

181.42

181.42


-

25.25

26.00

26.78

27.59

28.41

29.27

30.14

31.05

31.98

32.94

33.93

34.94

35.99

37.07

38.19

39.33

40.51

41.73

42.98


-

6.72

7.28

7.84

8.40

8.96

9.52

10.08

10.64

11.20

11.76

12.32

12.88

13.44

14.00

14.55

15.11

15.67

16.23

16.79


-

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95

15.95


-

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08

4.08


-

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28

3.28


-

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50

1.50


-

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34

14.34


-

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25

8.25


-

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48

4.48


-

0.96

0.98

1.00

1.03

1.05

1.08

1.11

1.14

1.17

1.20

1.23

1.26

1.28

1.29

1.30

1.31

1.32

1.33

1.34


-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40


-

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40

0.40


-

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50

2.50


-

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25

1.25


201

BAM `000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year

14 Year

15 Year

16 Year 17 Year 18 Year 19 Year 20


-

16.60

17.42

18.26

19.15

20.08

21.05

22.07

23.13

24.24

25.40

26.61

27.88

28.57

28.72

28.87

29.02

29.18

29.34

29.50


-

-

-

-

-

-

-

-

-

188.95

-

-

-

-

-

-

-

-

-

188.95


-

-

-

-

-

-

-

-

-

124.32

-

-

-

-

-

-

-

-

-

124.32


-

-

-

-

-

-

-

-

-

22.13

-

-

-

-

-

-

-

-

-

22.13


-

-

-

-

-

-

-

-

-

34.01

-

-

-

-

-

-

-

-

-

34.01


-

-

-

-

-

-

-

-

-

1.24

-

-

-

-

-

-

-

-

-

1.24


-

-

-

-

-

-

-

-

-

7.25

-

-

-

-

-

-

-

-

-

7.25


3,892.27

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


2,486.45

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


442.53

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


680.17

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment in Recreational Swimming lake

24.75

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


145.00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

One-off concession fee 113.37

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow (3,892.27)

180.08

198.22

217.25

237.19

258.11

280.04

303.04

327.17

163.53

379.01

406.85

436.05

450.91

452.16

453.45

454.77

456.13

457.53

270.01

Cumulative cash flow (3,892.27)

(3,712.19)

(3,513.96)

(3,296.72)

(3,059.53)

(2,801.42)

(2,521.38)

(2,218.33)

(1,891.17)

(1,727.64)

(1,348.63)

(941.78)

(505.73)

(54.82)

397.34

850.79

1,305,564.89

1,761.70

2,219.22

2,489.24


202



Revenues -

60.74

63.77

66.96

70.31

73.83

77.52

81.39

85.46

89.74

94.22

98.94

103.88

109.08

114.53

120.26

126.27

132.58

139.21

146.17


-

101.81

103.88

106.01

108.23

110.53

112.92

115.39

117.96

120.63

123.40

126.28

129.28

132.39

135.62

138.99

142.49

146.13

149.92

153.87

Employees -

69.97

70.67

71.38

72.09

72.81

73.54

74.28

75.02

75.77

76.53

77.29

78.07

78.85

79.63

80.43

81.24

82.05

82.87

83.70

Food and drinks

-

25.08

26.34

27.66

29.04

30.49

32.01

33.61

35.30

37.06

38.91

40.86

42.90

45.05

47.30

49.66

52.15

54.76

57.49

60.37

Electrical energy

-

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

1.08

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance -

0.99

1.01

1.03

1.05

1.07

1.09

1.12

1.14

1.17

1.19

1.22

1.25

1.28

1.31

1.34

1.37

1.41

1.44

1.48


-

1.82

1.91

2.01

2.11

2.21

2.33

2.44

2.56

2.69

2.83

2.97

3.12

3.27

3.44

3.61

3.79

3.98

4.18

4.39


-

-

-

-

-

-

-

-

-

4.50

-

-

-

-

-

-

-

-

-

4.50


92.60

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

89.90

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


2.70

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(92.60)

(41.07)

(40.10)

(39.05)

(37.92)

(36.71)

(35.40)

(34.00)

(32.50)

(35.39)

(29.18)

(27.35)

(25.39)

(23.31)

(21.09)

(18.73)

(16.22)

(13.55)

(10.71)

(12.19)


203

11.5.4 Pavilion A


Revenues -

21.90

23.00

24.14

25.35

26.62

27.95

29.35

30.82

32.36

33.97

35.67

37.46

39.33

41.30

43.36

43.36

43.36

43.36

43.36


-

34.69

35.03

35.37

35.71

36.06

36.42

36.78

37.14

37.51

37.89

38.27

38.66

39.05

39.45

39.86

40.21

40.56

40.92

41.27

Employees -

29.99

30.29

30.59

30.90

31.21

31.52

31.83

32.15

32.47

32.80

33.13

33.46

33.79

34.13

34.47

34.82

35.16

35.51

35.87

Electrical energy

-

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

0.84

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.34

0.34

0.34

0.35

0.35

0.35

0.36

0.36

0.36

0.37

0.37

0.37

0.37

0.38

0.38

0.39

0.39

0.39

0.40


-

0.66

0.69

0.72

0.76

0.80

0.84

0.88

0.92

0.97

1.02

1.07

1.12

1.18

1.24

1.30

1.30

1.30

1.30

1.30


-

-

-

-

-

-

-

-

3.37

-

-

-

-

-

-

-

-

-

3.37


69.52

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

67.50

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


2.02

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(69.52)

(12.79)

(12.03)

(11.22)

(10.36)

(9.44)

(8.47)

(7.43)

(6.33)

(8.53)

(3.92)

(2.60)

(1.20)

0.28

1.84

3.50

3.15

2.80

2.44

(1.29)


(69.52)

(82.31)

(94.34)

(105.56)

(115.92)

(125.36)

(133.83)

(141.26)

(147.58)

(156.11)

(160.03)

(162.63)

(163.83)

(163.56)

(161.72)

(158.22)

(155.06)

(152.27)

(149.82)

(151.11)


204

11.5.5 Pavilion B


Revenues -

41.61

43.69

45.88

48.17

50.58

53.11

55.76

58.55

61.48

64.55

67.78

71.17

74.73

78.46

82.38

82.38

82.38

82.38

82.38


-

25.11

25.38

25.65

25.92

26.20

26.49

26.78

27.08

27.38

27.69

28.01

28.33

28.67

29.01

29.35

29.59

29.82

30.06

30.30

Employees -

19.99

20.19

20.39

20.60

20.80

21.01

21.22

21.43

21.65

21.86

22.08

22.30

22.53

22.75

22.98

23.21

23.44

23.68

23.91

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.24

0.24

0.24

0.24

0.24

0.25

0.25

0.25

0.25

0.25

0.26

0.26

0.26

0.26

0.27

0.27

0.27

0.27

0.28


-

1.25

1.31

1.38

1.45

1.52

1.59

1.67

1.76

1.84

1.94

2.03

2.14

2.24

2.35

2.47

2.47

2.47

2.47

2.47


-

-

-

-

-

-

-

-

-

11.16

-

-

-

-

-

-

-

-

-

11


229.99

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

223.29

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


6.70

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(229.99)

16.50

18.31

20.23

22.25

24.38

26.62

28.98

31.47

22.93

36.86

39.77

42.83

46.06

49.46

53.03

52.80

52.57

52.33

40.93


(229.99)

(213.49)

(195.17)

(174.94)

(152.69)

(128.32)

(101.70)

(72.71)

(41.24)

(18.31)

18.55

58.32

101.15

147.21

196.67

249.70

302.50

355.07

407.39

448.32


205

11.5.6 Pavilion C


Revenues -

32.85

34.49

36.22

38.03

39.93

41.93

44.02

46.22

48.53

50.96

53.51

56.18

58.99

61.94

65.04

65.04

65.04

65.04

65.04


-

34.94

35.30

35.65

36.02

36.39

36.76

37.14

37.53

37.92

38.33

38.73

39.15

39.57

40.00

40.44

40.79

41.14

41.49

41.85

Employees -

29.99

30.29

30.59

30.90

31.21

31.52

31.83

32.15

32.47

32.80

33.13

33.46

33.79

34.13

34.47

34.82

35.16

35.51

35.87

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance -

0.34

0.34

0.34

0.35

0.35

0.35

0.35

0.36

0.36

0.36

0.37

0.37

0.37

0.38

0.38

0.38

0.39

0.39

0.40


-

0.99

1.03

1.09

1.14

1.20

1.26

1.32

1.39

1.46

1.53

1.61

1.69

1.77

1.86

1.95

1.95

1.95

1.95

1.95


-

-

-

-

-

-

-

-

-

15

-

-

-

-

-

-

-

-

-

15


310.15

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

301.12

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


9.03

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(310.15)

(2.09)

(0.80)

0.56

2.01

3.54

5.16

6.88

8.69

(4.45)

12.64

14.78

17.04

19.42

21.94

24.60

24.25

23.90

23.55

8.13


(310.15)

(312.24)

(313.05)

(312.48)

(310.47)

(306.93)

(301.77)

(294.89)

(286.20)

(290.64)

(278.01)

(263.23)

(246.20)

(226.77)

(204.83)

(180.23)

(155.97)

(132.07)

(108.52)

(100.39)


206

11.5.7 Pavilion D


Revenues -

13.14

13.80

14.49

15.21

15.97

16.77

17.61

18.49

19.41

20.38

21.40

22.47

23.60

24.78

26.02

26.02

26.02

26.02

26.02


-

14.82

14.94

15.07

15.19

15.32

15.45

15.58

15.71

15.85

15.99

16.13

16.27

16.42

16.57

16.72

16.83

16.95

17.07

17.19

Employees -

10.00

10.10

10.20

10.30

10.40

10.51

10.61

10.72

10.82

10.93

11.04

11.15

11.26

11.38

11.49

11.61

11.72

11.84

11.96

Electrical energy

-

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

1.42

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance -

0.14

0.14

0.14

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.16

0.16

0.16

0.16

0.16

0.16

0.16


-

0.39

0.41

0.43

0.46

0.48

0.50

0.53

0.55

0.58

0.61

0.64

0.67

0.71

0.74

0.78

0.78

0.78

0.78

0.78


-

-

-

-

-

-

-

-

-

12.72

-

-

-

-

-

-

-

-

-

13


262.01

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

254.37

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


7.63

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(262.01)

(1.68)

(1.15)

(0.58)

0.02

0.65

1.32

2.03

2.78

(9.15)

4.40

5.28

6.20

7.18

8.21

9.30

9.18

9.06

8.95

(3.89)


(262.01)

(263.69)

(264.84)

(265.41)

(265.39)

(264.74)

(263.42)

(261.39)

(258.61)

(267.76)

(263.36)

(258.09)

(251.88)

(244.70)

(236.49)

(227.19)

(218.01)

(208.95)

(200.00)

(203.89)


207

11.5.8 Pavilion F


Revenues -

8.76

9.20

9.66

10.14

10.65

11.18

11.74

12.33

12.94

13.59

14.27

14.98

15.73

16.52

17.34

17.34

17.34

17.34

17.34


-

14.03

14.14

14.26

14.38

14.50

14.62

14.74

14.87

14.99

15.12

15.25

15.38

15.52

15.66

15.80

15.91

16.03

16.15

16.27

Employees -

10.00

10.10

10.20

10.30

10.40

10.51

10.61

10.72

10.82

10.93

11.04

11.15

11.26

11.38

11.49

11.61

11.72

11.84

11.96

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance -

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.16


-

0.26

0.28

0.29

0.30

0.32

0.34

0.35

0.37

0.39

0.41

0.43

0.45

0.47

0.50

0.52

0.52

0.52

0.52

0.52


-

-

-

-

-

-

-

-

-

10.73

-

-

-

-

-

-

-

-

-

10.73


220.99

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

214.55

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


6.44

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(220.99)

(5.27)

(4.95)

(4.60)

(4.24)

(3.85)

(3.44)

(3.00)

(2.54)

(12.78)

(1.53)

(0.98)

(0.40)

0.21

0.86

1.55

1.43

1.31

1.20

(9.65)


(220.99)

(226.26)

(231.20)

(235.80)

(240.04)

(243.89)

(247.33)

(250.33)

(252.87)

(265.65)

(267.18)

(268.16)

(268.56)

(268.35)

(267.49)

(265.94)

(264.51)

(263.20)

(262.00)

(271.65)


208

11.5.9 Pavilion G


Revenues

-

15.33

16.10

16.90

17.75

18.63

19.57

20.54

21.57

22.65

23.78

24.97

26.22

27.53

28.91

30.35

30.35

30.35

30.35

30.35

Operational expense

-

14.23

14.35

14.48

14.61

14.74

14.87

15.00

15.14

15.28

15.43

15.57

15.72

15.87

16.03

16.19

16.30

16.42

16.54

16.66

Employees

-

10.00

10.10

10.20

10.30

10.40

10.51

10.61

10.72

10.82

10.93

11.04

11.15

11.26

11.38

11.49

11.61

11.72

11.84

11.96

Electrical energy

-

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

0.76

Heating energy

-

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

2.87

Maintainance

-

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.14

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.15

0.16


-

0.46

0.48

0.51

0.53

0.56

0.59

0.62

0.65

0.68

0.71

0.75

0.79

0.83

0.87

0.91

0.91

0.91

0.91

0.91


-

-

-

-

-

-

-

-

-

4.43

-

-

-

-

-

-

-

-

-

4.43


91.19

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

88.53

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


2.66

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(91.19)

1.10

1.75

2.42

3.14

3.90

4.70

5.54

6.43

2.94

8.36

9.40

10.50

11.66

12.88

14.17

14.05

13.93

13.81

9.27


(91.19)

(90.09)

(88.34)

(85.92)

(82.78)

(78.88)

(74.18)

(68.65)

(62.22)

(59.28)

(50.92)

(41.52)

(31.03)

(19.37)

(6.49)

7.67

21.72

35.65

49.47

58.73


209

11.5.10 Bungalow


Revenues

-

8.76

9.20

9.66

10.14

10.65

11.18

11.74

12.33

12.94

13.59

14.27

14.98

15.73

16.52

17.34

17.34

17.34

17.34

17.34


-

10.84

10.95

11.07

11.19

11.31

11.43

11.55

11.67

11.80

11.93

12.06

12.19

12.33

12.47

12.61

12.72

12.84

12.96

13.08

Employees

-

10.00

10.10

10.20

10.30

10.40

10.51

10.61

10.72

10.82

10.93

11.04

11.15

11.26

11.38

11.49

11.61

11.72

11.84

11.96

Electrical energy

-

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

0.05

Heating energy

-

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

0.43

Maintainance

-

0.10

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.12

0.12

0.12

0.12

0.12

0.12

0.12

0.12

0.12


-

0.26

0.28

0.29

0.30

0.32

0.34

0.35

0.37

0.39

0.41

0.43

0.45

0.47

0.50

0.52

0.52

0.52

0.52

0.52


-

-

-

-

-

-

-

-

-

1.76

-

-

-

-

-

-

-

-

-

1.76


36.26

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

35.20

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


1.06

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(36.26)

(2.08)

(1.75)

(1.41)

(1.05)

(0.66)

(0.25)

0.19

0.65

(0.62)

1.66

2.21

2.79

3.40

4.05

4.74

4.62

4.51

4.39

2.51


(36.26)

(38.33)

(40.09)

(41.50)

(42.54)

(43.20)

(43.45)

(43.26)

(42.61)

(43.22)

(41.56)

(39.35)

(36.56)

(33.16)

(29.11)

(24.37)

(19.75)

(15.24)

(10.85)

(8.34)


210

11.5.11 Camp


Revenues

-

18.00

18.90

19.85

20.84

21.88

22.97

24.12

25.33

26.59

27.92

29.32

30.79

32.33

33.94

35.64

35.64

35.64

35.64

35.64


-

3.14

3.19

3.25

3.30

3.36

3.42

3.48

3.55

3.61

3.68

3.75

3.82

3.90

3.98

4.06

4.09

4.12

4.15

4.18

Employees

-

2.50

2.52

2.55

2.57

2.60

2.63

2.65

2.68

2.71

2.73

2.76

2.79

2.82

2.84

2.87

2.90

2.93

2.96

2.99

Maintainance

-

0.10

0.10

0.10

0.10

0.10

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.11

0.12

0.12

0.12

0.12


-

0.54

0.57

0.60

0.63

0.66

0.69

0.72

0.76

0.80

0.84

0.88

0.92

0.97

1.02

1.07

1.07

1.07

1.07

1.07


-

-

-

-

-

-

-

-

-

0.75

-

-

-

-

-

-

-

-

-

0.75


15.45

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Required investment

15.00

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-


0.45

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Neto cash flow

(15.45)

14.86

15.71

16.60

17.53

18.52

19.55

20.64

21.78

22.98

24.24

25.57

26.96

28.43

29.97

31.58

31.55

31.52

31.49

31.46


(15.45)

(0.59)

15.12

31.72

49.25

67.77

87.32

107.96

129.74

152.73

176.97

202.54

229.50

257.93

287.89

319.48

351.03

382.55

414.04

445.50


211

12 Appendix IV- Market Value of assets suggested for outsourcing


Key assuptions Occupancy

rate


revenue

Price (BAM)

Nr. of employe

es


Investment maintenance

every 10 years

Electrical energy

kWh/year

Heating energy


Hotel Mladost 25% 10% 20 27 255,523 5% 43,200 258,189


Hotel Sutjeska 25% 10% 20 21 2,486,453 5% 75,960 215,157


Central House - 1 event 1,500 - 1,770,120 5% 38,850 247,432 400

Youth House - 1 event 500 - 2,720,678 5% 31,200 134,474 400

Recrational swimming lake

- 0% - 1 99,000 5% 14,286 - 2,500

Sports terrains - 0% - 1 579,990 5% - - 1,250

Restaurant Jezero - 20% 11 89,900 5% 5,120 32,274


Pavilion A 25% 10% 15 4 67,495 5% 3,988 43,032


Pavilion B 25% 10% 15 3 223,287 5% 3,641 43,032


Pavilion C 25% 10% 15 4 301,115 5% 3,641 43,032


Pavilion D 25% 10% 15 2 254,374 5% 6,760 43,032


Pavilion F 25% 10% 15 1 214,549 5% 3,642 43,032


Pavilion G 25% 10% 15 2 88,533 5% 3,642 43,032


Bungalow 25% 10% 15 1 35,200 5% 220 6,455


Camp 25% 10% 10 1 15,000 5% - - 4% of total operational

expenses

Note: residual value has been calculated by applying the Gordon Growth Model, where:


212

𝑅 𝑖 𝑎𝑙 𝑉𝑎𝑙 = 𝑁𝐼 𝑎 𝑇𝑎𝑥 𝑖 𝑌 𝑎 20𝐷𝑖 𝑎

12.1 Hotel Mladost

BAM `000 Year

1 Year

2 Year

3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20

Revenues (BAM) 813.59 891.86 977.68 1,071.80 1,175.05 1,288.34 1,412.66 1,416.03 1,419.45 1,422.90 1,426.40 1,429.95 1,433.54 1,437.18 1,440.87 1,444.61 1,448.40 1,452.25 1,456.15 1,460.11

Room revenue 299.30 329.23 362.15 398.37 438.21 482.03 530.23 530.23 530.23 530.23 530.23 530.23 530.23 530.23 530.23 530.23 530.23 530.23 530.23 530.23

Food and Beverage revenue from guests staying in Hotel Mladost

451.94 497.14 546.85 601.54 661.69 727.86 800.64 800.64 800.64 800.64 800.64 800.64 800.64 800.64 800.64 800.64 800.64 800.64 800.64 800.64


38.34 39.49 40.68 41.90 43.16 44.45 45.78 47.16 48.57 50.03 51.53 53.08 54.67 56.31 58.00 59.74 61.53 63.38 65.28 67.24


18.00 19.50 21.00 22.50 24.00 25.50 27.00 28.50 30.00 31.50 33.00 34.50 36.00 37.50 39.00 40.50 42.00 43.50 45.00 46.50


6.00 6.50 7.00 7.50 8.00 8.50 9.00 9.50 10.00 10.50 11.00 11.50 12.00 12.50 13.00 13.50 14.00 14.50 15.00 15.50

Operational expenses (BAM)

452.02 472.02 493.75 517.37 543.07 571.06 601.57 604.86 608.20 611.57 614.98 618.43 621.92 625.45 629.03 632.64 636.30 640.01 643.76 647.55


204.92 206.97 209.04 211.13 213.24 215.37 217.52 219.70 221.90 224.12 226.36 228.62 230.91 233.22 235.55 237.90 240.28 242.69 245.11 247.56


1.25 1.26 1.27 1.29 1.30 1.31 1.33 1.34 1.35 1.37 1.38 1.39 1.41 1.42 1.44 1.45 1.47 1.48 1.49 1.51


2.50 2.52 2.55 2.57 2.60 2.63 2.65 2.68 2.71 2.73 2.76 2.79 2.82 2.84 2.87 2.90 2.93 2.96 2.99 3.02


168.67 185.53 204.08 224.49 246.94 271.64 298.80 298.80 298.80 298.80 298.80 298.80 298.80 298.80 298.80 298.80 298.80 298.80 298.80 298.80

Food and Beverage expense from other guests in Hotel Mladost

14.31 14.74 15.18 15.64 16.11 16.59 17.09 17.60 18.13 18.67 19.23 19.81 20.40 21.01 21.65 22.29 22.96 23.65 24.36 25.09

Food and Beverage expense Central House

6.72 7.28 7.84 8.40 8.96 9.52 10.08 10.64 11.20 11.76 12.32 12.88 13.44 14.00 14.55 15.11 15.67 16.23 16.79 17.35


9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07 9.07


4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08


3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28


1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50


17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21 17.21


8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25


4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48


1.24 1.30 1.36 1.43 1.51 1.59 1.68 1.69 1.70 1.70 1.71 1.72 1.73 1.74 1.75 1.76 1.76 1.77 1.78 1.79


0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40


0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40


2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50

Maintenance of Sports terrains

1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25

Depreciation (BAM) 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52 51.52

Hotel Mladost 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76


213

BAM `000 Year

1 Year

2 Year

3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20

Central House 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18

Youth House 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33

Recreational Swimming Lake

0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62 0.62

Sports Terrains 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62 3.62

Net income before tax (BAM)

310.05 368.32 432.42 502.92 580.46 665.75 759.57 759.65 759.73 759.82 759.91 760.00 760.11 760.21 760.33 760.45 760.58 760.73 760.88 761.04

Corporate tax (BAM) 31.00 36.83 43.24 50.29 58.05 66.58 75.96 75.97 75.97 75.98 75.99 76.00 76.01 76.02 76.03 76.05 76.06 76.07 76.09 76.10

Net income after tax (BAM)

279.04 331.49 389.18 452.63 522.41 599.18 683.62 683.69 683.76 683.84 683.92 684.00 684.10 684.19 684.30 684.41 684.53 684.65 684.79 684.94

Cumulative income (BAM)

279.04 610.53 999.71 1,452.33 1,974.75 2,573.93 3,257.54 3,941.23 4,624.99 5,308.82 5,992.74 6,676.74 7,360.84 8,045.03 8,729.33 9,413.74 10,098.26 10,782.91 11,467.70 12,152.64

BAM '000 Maximum value Base scenario Minimum value

Discount rate 7.35% 8.35% 11.35%

NPV 5,789 5,310 4,174

Investment (1,548) (1,548) (1,548)

Residual value 9,319 8,203 6,035

Market Value 13,560 11,965 8,660


214

12.2 Hotel Sutjeska

BAM `000 Year

1 Year

2 Year

3 Year

4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20

Revenues (BAM) 686.58 748.86 816.99 891.55 973.17 1,062.56 1,160.48 1,165.54 1,170.69 1,175.94 1,181.28 1,186.73 1,192.27 1,197.93 1,203.69 1,209.57 1,215.56 1,221.67 1,227.90 1,234.27

Room revenue 229.95 252.95 278.24 306.06 336.67 370.34 407.37 407.37 407.37 407.37 407.37 407.37 407.37 407.37 407.37 407.37 407.37 407.37 407.37 407.37

Food and Beverage revenue from guests staying in Hotel Sutjeska

347.22 381.95 420.14 462.16 508.37 559.21 615.13 615.13 615.13 615.13 615.13 615.13 615.13 615.13 615.13 615.13 615.13 615.13 615.13 615.13


85.41 87.97 90.61 93.33 96.13 99.01 101.98 105.04 108.19 111.44 114.78 118.23 121.77 125.43 129.19 133.07 137.06 141.17 145.40 149.77


18.00 19.50 21.00 22.50 24.00 25.50 27.00 28.50 30.00 31.50 33.00 34.50 36.00 37.50 39.00 40.50 42.00 43.50 45.00 46.50


6.00 6.50 7.00 7.50 8.00 8.50 9.00 9.50 10.00 10.50 11.00 11.50 12.00 12.50 13.00 13.50 14.00 14.50 15.00 15.50

Operational expenses (BAM)

389.35 405.50 423.01 441.99 462.58 484.96 509.29 512.74 516.24 519.79 523.40 527.06 530.78 534.56 538.39 542.29 546.25 550.27 554.36 558.52


159.94 161.54 163.15 164.78 166.43 168.09 169.78 171.47 173.19 174.92 176.67 178.44 180.22 182.02 183.84 185.68 187.54 189.41 191.31 193.22


1.25 1.26 1.27 1.29 1.30 1.31 1.33 1.34 1.35 1.37 1.38 1.39 1.41 1.42 1.44 1.45 1.47 1.48 1.49 1.51


2.50 2.52 2.55 2.57 2.60 2.63 2.65 2.68 2.71 2.73 2.76 2.79 2.82 2.84 2.87 2.90 2.93 2.96 2.99 3.02


129.58 142.54 156.80 172.48 189.72 208.70 229.57 229.57 229.57 229.57 229.57 229.57 229.57 229.57 229.57 229.57 229.57 229.57 229.57 229.57


31.88 32.83 33.82 34.83 35.88 36.95 38.06 39.20 40.38 41.59 42.84 44.12 45.45 46.81 48.21 49.66 51.15 52.68 54.27 55.89

Food and Beverage expense Central House

6.72 7.28 7.84 8.40 8.96 9.52 10.08 10.64 11.20 11.76 12.32 12.88 13.44 14.00 14.55 15.11 15.67 16.23 16.79 17.35


15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95 15.95


4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08 4.08


3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28 3.28


1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50


14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34 14.34


8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25


4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48


1.06 1.10 1.15 1.21 1.27 1.33 1.40 1.41 1.42 1.43 1.44 1.45 1.46 1.47 1.48 1.49 1.50 1.51 1.52 1.53


0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40


0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40


2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50


1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25



215

BAM `000 Year

1 Year

2 Year

3 Year

4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20

Hotel Sutjeska 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29 85.29

Central House 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18 15.18

Youth House 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33 23.33

Recreational Swimming Lake

0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85

Sports Terrains 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97 4.97

Neto income before tax(BAM)

167.62 213.74 264.37 319.95 380.97 447.98 521.58 523.19 524.84 526.53 528.27 530.05 531.88 533.76 535.68 537.66 539.69 541.78 543.93 546.13

Profit tax (BAM) 16.76 21.37 26.44 31.99 38.10 44.80 52.16 52.32 52.48 52.65 52.83 53.01 53.19 53.38 53.57 53.77 53.97 54.18 54.39 54.61


150.86 192.37 237.93 287.95 342.87 403.18 469.42 470.87 472.36 473.88 475.44 477.05 478.69 480.38 482.11 483.89 485.72 487.60 489.53 491.52


150.86 343.23 581.16 869.11 1,211.98 1,615.17 2,084.59 2,555.46 3,027.81 3,501.69 3,977.14 4,454.18 4,932.87 5,413.25 5,895.37 6,379.26 6,864.98 7,352.58 7,842.12 8,333.64

BAM '000 Maximum value Base scenario Minimum value

Discount rate 7.35% 8.35% 11.35%

NPV 5,789 5,310 4,174

Investment (1,548) (1,548) (1,548)

Residual value 9,319 8,203 6,035

Market Value 13,560 11,965 8,660


216

12.3 Restaurant Jezero

BAM `000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year

18 Year 19 Year 20

Revenues(BAM) 60.74 66.81 73.49 80.84 88.93 97.82 107.60 118.36 130.20 143.22 157.54 173.29 190.62 209.68 230.65 253.72 279.09 307.00 337.70 371.47

Operational expenses 99.99 103.23 106.73 110.52 114.62 119.06 123.88 129.12 134.82 141.01 147.76 155.11 163.13 171.88 181.43 191.86 203.26 215.73 229.38 244.31

Employees 69.97 70.67 71.38 72.09 72.81 73.54 74.28 75.02 75.77 76.53 77.29 78.07 78.85 79.63 80.43 81.24 82.05 82.87 83.70 84.53

Food and Beverage 25.08 27.59 30.35 33.39 36.73 40.40 44.44 48.88 53.77 59.15 65.06 71.57 78.72 86.60 95.26 104.78 115.26 126.79 139.46 153.41

Electrical energy 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08

Heating energy 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87

Maintainance 0.99 1.02 1.06 1.09 1.13 1.18 1.23 1.28 1.33 1.40 1.46 1.54 1.62 1.70 1.80 1.90 2.01 2.14 2.27 2.42


Neto income before tax (BAM)

(42.33) (39.50) (36.32) (32.76) (28.77) (24.32) (19.37) (13.84) (7.70) (0.88) 6.70 15.10 24.41 34.72 46.14 58.77 72.74 88.18 105.24 124.08

Corporate tax (BAM) - - - - - - - - - - 0.67 1.51 2.44 3.47 4.61 5.88 7.27 8.82 10.52 12.41


(42.33) (39.50) (36.32) (32.76) (28.77) (24.32) (19.37) (13.84) (7.70) (0.88) 6.03 13.59 21.97 31.25 41.53 52.90 65.47 79.36 94.72 111.67


(42.33) (81.83) (118.15) (150.91) (179.68) (204.01) (223.37) (237.22) (244.92) (245.80) (239.78) (226.19) (204.22) (172.97) (131.44) (78,539.84) (13.07) 66.29 161.01 272.68

Maximum

value (BAM `000)

Base scenario

(BAM `000)

Minimum value (BAM

`000)

7.35% 8.35% 11.35%

NPV (34.34) (50.50) (82.29)

Investment 89.90 89.90 89.90

Residual value 1,519.32 1,337.37 983.88

Market Value 1,395.08 1,196.96 811.69


217

12.4 Pavilion A


Revenues (BAM) 27.38 30.11 33.12 36.44 40.08 44.09 48.50 53.35 54.75 54.75 54.75 54.75 54.75 54.75 54.75 54.75 54.75 54.75 54.75 54.75

Operational expenses(BAM) 34.03 34.34 34.64 34.95 35.26 35.58 35.90 36.22 36.54 36.87 37.20 37.54 37.87 38.22 38.56 38.91 39.26 39.62 39.97 40.34

Employees 29.99 30.29 30.59 30.90 31.21 31.52 31.83 32.15 32.47 32.80 33.13 33.46 33.79 34.13 34.47 34.82 35.16 35.51 35.87 36.23


Heating energy 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87

Maintainance 0.34 0.34 0.34 0.35 0.35 0.35 0.36 0.36 0.36 0.37 0.37 0.37 0.37 0.38 0.38 0.39 0.39 0.39 0.40 0.40


Net income before tax (BAM) (8.97) (6.54) (3.83) (0.83) 2.50 6.19 10.29 14.81 15.89 15.56 15.23 14.90 14.56 14.22 13.87 13.53 13.18 12.82 12.46 12.10

Corporate tax (BAM) - - - - 0.25 0.62 1.03 1.48 1.59 1.56 1.52 1.49 1.46 1.42 1.39 1.35 1.32 1.28 1.25 1.21

Net income after tax (BAM) (8.97) (6.54) (3.83) (0.83) 2.25 5.58 9.26 13.33 14.30 14.01 13.71 13.41 13.10 12.80 12.49 12.17 11.86 11.54 11.22 10.89

Cumulative income (BAM) (8.97) (15.51) (19.34) (20.17) (17.92) (12.35) (3.09) 10.24 24.55 38.55 52.26 65.67 78.78 91.57 104.06 116.24 128.09 139.63 150.85 161.74

Maximum value

(BAM `000)

Base scenario

(BAM `000)

Minimum value

(BAM `000)

7.35% 8.35% 11.35%

NPV 57.61 50.11 32.75

Investment 67.50 67.50 67.50

Residual value 148.15 130.41 95.94

Market Value 138.27 113.03 61.19


218

12.5 Pavilion B

BAM `000 Year

1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Year 10

Year 11

Year 12 Year

13 Year

14 Year

15 Year

16 Year

17 Year

18 Year

19 Year 20

Revenues (BAM) 52.01 57.21 62.94 69.23 76.15 83.77 92.14 101.36 104.03 104.03 104.03 104.03 104.03 104.03 104.03 104.03 104.03 104.03 104.03 104.03


Employees 19.99 20.19 20.39 20.60 20.80 21.01 21.22 21.43 21.65 21.86 22.08 22.30 22.53 22.75 22.98 23.21 23.44 23.68 23.91 24.15


Heating energy 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87

Maintainance 0.24 0.24 0.24 0.24 0.24 0.25 0.25 0.25 0.25 0.25 0.26 0.26 0.26 0.26 0.27 0.27 0.27 0.27 0.28 0.28


Net income before tax (BAM) 20.49 25.49 31.01 37.09 43.81 51.21 59.38 68.38 70.83 70.61 70.39 70.17 69.94 69.71 69.48 69.25 69.02 68.78 68.54 68.30


Net income after tax (BAM) 18.44 22.94 27.91 33.39 39.43 46.09 53.44 61.54 63.75 63.55 63.35 63.15 62.95 62.74 62.54 62.33 62.12 61.90 61.69 61.47

Cumulative income (BAM) 18.44 41.38 69.29 102.67 142.10 188.20 241.64 303.18 366.93 430.48 493.83 556.98 619.93 682.67 745.20 807.53 869.65 931.55 993.24 1,054.71

Maximum value (BAM

`000)

Base scenario

(BAM `000)

Minimum value (BAM

`000)

7.35% 8.35% 11.35%

NPV 487.60 445.29 345.34

Investment 223.29 223.29 223.29

Residual value 836.34 736.18 541.59

Market Value 1,100.65 958.18 663.65


219

12.6 Pavilion C

BAM `000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year

10 Year 11

Year 12

Year 13

Year 14

Year 15

Year 16

Year 17

Year 18

Year 19

Year 20

Revenues (BAM) 41.06 45.17 49.69 54.65 60.12 66.13 72.74 80.02 82.13 82.13 82.13 82.13 82.13 82.13 82.13 82.13 82.13 82.13 82.13 82.13


Employees 29.99 30.29 30.59 30.90 31.21 31.52 31.83 32.15 32.47 32.80 33.13 33.46 33.79 34.13 34.47 34.82 35.16 35.51 35.87 36.23


Heating energy 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87

Maintainance 0.34 0.34 0.34 0.35 0.35 0.35 0.35 0.36 0.36 0.36 0.37 0.37 0.37 0.38 0.38 0.38 0.39 0.39 0.40 0.40


Net income before tax (BAM) (3.22) 0.58 4.79 9.45 14.60 20.30 26.59 33.55 35.33 35.00 34.67 34.33 34.00 33.65 33.31 32.96 32.61 32.26 31.90 31.53

Corporate tax (BAM) - 0.06 0.48 0.94 1.46 2.03 2.66 3.35 3.53 3.50 3.47 3.43 3.40 3.37 3.33 3.30 3.26 3.23 3.19 3.15

Net income after tax (BAM) (3.22) 0.52 4.31 8.50 13.14 18.27 23.93 30.19 31.80 31.50 31.20 30.90 30.60 30.29 29.98 29.67 29.35 29.03 28.71 28.38

Cumulative income (BAM) (3.22) (2.70) 1.61 10.11 23.25 41.52 65.46 95.65 127.44 158.94 190.15 221.05 251.64 281.93 311.91 341.58 370.93 399.96 428.66 457.04

Maximum

value (BAM `000)

Base scenario (BAM `000)

Minimum value (BAM

`000)

7.35% 8.35% 11.35%

NPV 194.46 175.15 129.91

Investment 301.12 301.12 301.12

Residual value 386.13 339.89 250.05

Market Value 279.47 213.93 78.84


220

12.7 Pavilion D


Revenues (BAM) 16.43 18.07 19.87 21.86 24.05 26.45 29.10 32.01 32.85 32.85 32.85 32.85 32.85 32.85 32.85 32.85 32.85 32.85 32.85 32.85


Employees 10.00 10.10 10.20 10.30 10.40 10.51 10.61 10.72 10.82 10.93 11.04 11.15 11.26 11.38 11.49 11.61 11.72 11.84 11.96 12.08


Heating energy 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87

Maintainance 0.14 0.14 0.14 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.16 0.16 0.16 0.16 0.16 0.16 0.16 0.16


Net income before tax (BAM) (6.73) (5.19) (3.48) (1.60) 0.48 2.78 5.32 8.13 8.86 8.75 8.64 8.53 8.42 8.30 8.19 8.07 7.95 7.84 7.72 7.60

Corporate tax (BAM) - - - - 0.05 0.28 0.53 0.81 0.89 0.88 0.86 0.85 0.84 0.83 0.82 0.81 0.80 0.78 0.77 0.76

Net income after tax (BAM) (6.73) (5.19) (3.48) (1.60) 0.44 2.51 4.79 7.31 7.97 7.88 7.78 7.68 7.57 7.47 7.37 7.26 7.16 7.05 6.94 6.84

Cumulative income (BAM) (6.73) (11.92) (15.40) (17.00) (16.56) (14.06) (9.27) (1.95) 6.02 13.90 21.67 29.35 36.92 44.39 51.76 59.03 66.18 73.24 80.18 87.02

Maximum

value (BAM `000)

Base scenario

(BAM `000)

Minimum value (BAM

`000)

7.35% 8.35% 11.35%

NPV 27.37 23.16 13.51

Investment 254.37 254.37 254.37

Residual value 93.00 81.86 60.23

Market Value (134.00) (149.34) (180.63)


221

12.8 Pavilion F


10 Year 11

Year 12

Year 13

Year 14

Year 15

Year 16

Year 17

Year 18

Year 19

Year 20

Revenues (BAM) 10.95 12.05 13.25 14.57 16.03 17.64 19.40 21.34 21.90 21.90 21.90 21.90 21.90 21.90 21.90 21.90 21.90 21.90 21.90 21.90


Employees 10.00 10.10 10.20 10.30 10.40 10.51 10.61 10.72 10.82 10.93 11.04 11.15 11.26 11.38 11.49 11.61 11.72 11.84 11.96 12.08


Heating energy 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87

Maintainance 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.16 0.16


Net income before tax (BAM) (10.18) (9.18) (8.08) (6.86) (5.50) (4.01) (2.35) (0.52) (0.06) (0.17) (0.28) (0.39) (0.51) (0.62) (0.74) (0.85) (0.97) (1.09) (1.21) (1.33)

Corporate tax (BAM) - - - - - - - - - - - - - - - - - - - -

Net income after tax (BAM) (10.18) (9.18) (8.08) (6.86) (5.50) (4.01) (2.35) (0.52) (0.06) (0.17) (0.28) (0.39) (0.51) (0.62) (0.74) (0.85) (0.97) (1.09) (1.21) (1.33)

Cumulative income (BAM) (10.18) (19.36) (27.44) (34.30) (39.80) (43.81) (46.16) (46.67) (46.74) (46.91) (47.19) (47.59) (48.09) (48.71) (49.45) (50.30) (51.27) (52.36) (53.56) (54.89)

Maximum value

(BAM `000)

Base scenario

(BAM `000)

Minimum value (BAM

`000)

7.35% 8.35% 11.35%

NPV (39.95) (38.56) (34.97)

Investment 214.55 214.55 214.55

Residual value (18.06) (15.90) (11.70)

Market Value (272.56) (269.01) (261.21)


222

12.9 Pavilion G


10 Year 11

Year 12

Year 13

Year 14

Year 15

Year 16

Year 17

Year 18

Year 19

Year 20

Revenues (BAM) 19.16 21.08 23.19 25.51 28.06 30.86 33.95 37.34 38.33 38.33 38.33 38.33 38.33 38.33 38.33 38.33 38.33 38.33 38.33 38.33


Employees 10.00 10.10 10.20 10.30 10.40 10.51 10.61 10.72 10.82 10.93 11.04 11.15 11.26 11.38 11.49 11.61 11.72 11.84 11.96 12.08


Heating energy 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87 2.87

Maintainance 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.16 0.16





Cumulative income (BAM) 2.12 5.88 11.44 19.00 28.75 40.94 55.81 73.64 92.26 110.77 129.19 147.51 165.73 183.84 201.85 219.76 237.56 255.25 272.84 290.31

Maximum

value (BAM `000)

Base scenario

(BAM `000)

Minimum value

(BAM `000)

7.35% 8.35% 11.35%

NPV 129.59 117.68 89.66

Investment 88.53 88.53 88.53

Residual value 237.79 209.31 153.99

Market Value 278.85 238.47 155.12


223

12.10 Bungalow


Revenues (BAM) 10.95 12.05 13.25 14.57 16.03 17.64 19.40 21.34 21.90 21.90 21.90 21.90 21.90 21.90 21.90 21.90 21.90 21.90 21.90 21.90


Employees 10.00 10.10 10.20 10.30 10.40 10.51 10.61 10.72 10.82 10.93 11.04 11.15 11.26 11.38 11.49 11.61 11.72 11.84 11.96 12.08


Heating energy 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43 0.43

Maintainance 0.10 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.13


Net income before tax (BAM) (0.83) 0.16 1.26 2.49 3.84 5.34 6.99 8.83 9.28 9.17 9.06 8.95 8.84 8.72 8.61 8.49 8.37 8.26 8.14 8.02

Corporate tax (BAM) - 0.02 0.13 0.25 0.38 0.53 0.70 0.88 0.93 0.92 0.91 0.89 0.88 0.87 0.86 0.85 0.84 0.83 0.81 0.80

Net income after tax (BAM) (0.83) 0.14 1.14 2.24 3.45 4.80 6.29 7.94 8.35 8.25 8.15 8.05 7.95 7.85 7.75 7.64 7.54 7.43 7.32 7.21

Cumulative income (BAM) (0.83) (0.69) 0.45 2.69 6.14 10.94 17.24 25.18 33.54 41.79 49.94 58.00 65.95 73.80 81.55 89.19 96.73 104.16 111.48 118.70

Maximum

value (BAM `000)

Base scenario

(BAM `000)

Minimum value (BAM

`000)

7.35% 8.35% 11.35%

NPV 50.68 45.67 33.92

Investment 35.20 35.20 35.20

Residual value 98.15 86.40 63.56

Market Value 113.64 96.87 62.28


224

12.11 Camp


Revenues (BAM) 22.50 24.75 27.23 29.95 32.94 36.24 39.86 43.85 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00


Employees 2.50 2.52 2.55 2.57 2.60 2.63 2.65 2.68 2.71 2.73 2.76 2.79 2.82 2.84 2.87 2.90 2.93 2.96 2.99 3.02

Maintainance 0.10 0.10 0.10 0.10 0.10 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.11 0.12 0.12 0.12 0.12 0.12





Cumulative income (BAM) 19.39 41.00 65.06 91.81 121.53 154.53 191.11 231.66 273.33 314.97 356.59 398.17 439.73 481.26 522.75 564.22 605.66 647.07 688.45 729.79

Maximum value

(BAM `000)

Base scenario

(BAM `000)

Minimum value

(BAM `000)

7.35% 8.35% 11.35%

NPV 312.92 287.10 225.90

Investment 15.00 15.00 15.00

Residual value 506.27 445.64 327.85

Market Value 804.19 717.74 538.75

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