EU Supports Improvement of Business Conditions and Attraction of New Investors to Paraćin

Works on improving the business infrastructure in the Paraćin Industrial Zone “Zmič” were launched today with a view to expanding the capacities of the Zone and putting in place the conditions for attracting investments. The works, for which the European Union (EU) has set aside around 300,000 Euros through the EU PRO programme, involve the construction of access roads, a sewage network and street lighting in the new section of the Zone, which will facilitate the opening of a new block of lots.

“Seventeen companies have bought lots in the Zone to date and the construction of ten facilities has been either completed or is under way. We expect that around 20 companies will be working in the Industrial Zone already in 2020. Thanks to the location of the Zone, which is accessible also from Ćuprija and Jagodina, these companies will be recruiting workers not only from Paraćin, but the entire Moravski District as well,” said Paraćin Mayor Saša Paunović during a tour of the “Zmič” Zone.

According to Paunović, the Municipality is responding to the investors’ needs because, under the law, large companies may be granted land free of charge, while smaller companies are leased lots at favourable rates. Furthermore, they have no problems in building their facilities, thanks to the efficient issuance of the licences by the local administration.

“The construction of the Zone infrastructure is of major relevance also to entrepreneurs and small and medium enterprises, which do not own land on which they can construct their facilities. They will now be able to buy the lots and launch their businesses in no time,” said Paunović, adding that small and medium enterprises contributed to the investment boom in the Municipality, where they were running their operations on over 70,000 square meters of production and business premises and employed a significant number of people.

The Mayor underlined that the Municipality would build an industrial park in “Zrnič” as well, in accordance with the commercial conditions approved by the state, and that the Swedish company Rimaster already launched its operations in Paraćin and planned on hiring around 1,000 people in the forthcoming period.

EU PRO Programme Manager Olivera Kostić said that Paraćin was one of the nine local self-governments in which business infrastructure projects were being implemented with the EU support with a view to improving the business environment and attracting investments.

“Projects worth 630,000 Euros are being implemented via the EU PRO programme in the Paraćin Municipality. In addition to improving the business infrastructure in the Industrial Zone, the EU is also supporting the upgrade of the geographic information system, as well as assisting the local entrepreneurs in advancing their competitiveness and business operations,” Kostić added, highlighting the importance of the project the implementation of which was launched in Paraćin today and which is to result in the opening of 300 new jobs.

Olivera Kostić recalled that the EU has set aside a total of 25 million Euros to assist the socio-economic development of the country through the EU PRO programme, that these funds have been disbursed through public calls for proposals and that a sizeable share of the funds have been approved for Paraćin’s quality project proposals in tough competition with 98 other local self-governments.

A group led by Putotehna from Paraćin, selected in a public procurement procedure conducted by the Paraćin Municipality, is in charge of the works, which are to be completed in 90 days.