MINISTRY OF DEVELOPMENT AND ENTREPRENEURSHIP OF TUZLA CANTON Year-round greenhouse production (fruits, vegetables, flowers) by using steam for heating greenhouses MINISTRY OF DEVELOPMENT AND ENTREPRENEURSHIP OF TUZLA CANTON INDEPENDENT OFFICE FOR DEVELOPMENT Tuzla, 3rd February 2017.

Location: Northeast Bosnia and Herzegovina, Tuzla Canton, Municipality of Lukavac Basic information about Tuzla Canton: Population (2015.): 498.766 Area: 2.649 km2 Climate: Continental GDP per capita: 5.367 BAM – 2.744EUR Average monthly salary: 733 BAM – 374 EUR Tuzla Canton has 114.102 hectares of arable land, which is used in a low level and with low effects on primary agricultural production, so that the populations food requirements can not be covered by own production, which creates space for new investments in this field. The potential of agriculture and food industry in Tuzla Canton is reflected in the tradition, the spatial and planning predispositions, the abundance of resources and the qualified workforce.

Comparative prices of energy products for a basic greenhouse Greenhouse production represents a special type of production within a perennial or permanently protected space, adapted for cultivation of vegetables and flowers throughout the year. One of the most important microclimate conditions inside a greenhouse is the temperature. In order to ensure optimal conditions at any time of production, it is necessary to set up a heating system inside the greenhouse. The energy product which can significantly contribute to reducing the heating cost of greenhouses is thermal energy from the Thermal power plant (TPP) in Tuzla. Benefits of using steam lines : Transport of heat is conducted through a tube Ease of maintenance, inspection, control and consumption insight No further pumps needed for transporting energy Reaches higher temperature and pressure Low isolation costs Comparative prices of energy products for a basic greenhouse Size of a base greenhouse 500,0 m2   Device power 144,0 kW ENERGY PRODUCTS Fuel type Fuel oil Pellets Steam Gas Calorific value 11,0 kWh/l 4,9 kWh/kg 733,4 kWh/ton 10,3 kWh/m3 Max. consumption 12,0 l/h 24,0 kg/h 0,2 T/h 11,7 m3/h Max. energy consumption 118,8 kWh/h 105,8 108,9 108,0 Price 1,9 KM/l 0,4 KM/kg 18,9 KM/ton 1,6 KM/m3 Unit price KM/kWh 0,1 0,026 Price per hour 22,8 KM 9,6 3,0 18,7 Steam as an energy source is at least 3.8 times cheaper than pellets, and 7.7 times cheaper than gas and heating oil.

Benefits of Zone Bokavići: In the area of ​​Bosanska poljana near TPP Tuzla, are 3 locations suitable for the development of greenhouse business zones, on whose teritory it’s possible to set up 740 greenhouses. Those locations are: Zone Tuzla 1 – total area 1.1 km2 Zone Tuzla 2 – total area 0.982 km2 Zone Lukavac – total area 3.87 km2 Within the Zone Lukavac is the Zone Bokavići identified, with a total area of ​​257.254 m2. The above mentioned zone is the furthest, but also the best, since it is owned by the Municipality of Lukavac and is therefore easier to resolve property rights issues. Benefits of Zone Bokavići: Resolving property and legal issues The possibility of obtaining concessions up to 30 years for agricultural processing of land In the vicinity of 100 m is a drinking water source and a drain (Riverbed Spreča and Jala) In the near location are facilities that ensure high-quality and secure energy and telecommunication supply Good road connections, close to the highway Tuzla-Doboj M17 (cca 200 m) The possibility of cargo transport from the Airport in Tuzla (distance 23 km) The possibility of positioning the steam tube along the existing hot water line, as well as using an alternative path by the riverbed Jala

Total investment parameters for the plot Bokavići: Number of greenhouses 470 Steam line length Tuzla - Bokavići   8.000 m Investment in the steam line 8.705.134 EUR Investment in greenhouses 5.875.000 Total investment 14.580.134 Loan interest rate 8% Loan rate 15 years 139.335 Annual income from all greenhouses 2.146.820 Return on investment 6,79 year Number of employees 470 - 500 The impact of the project on the import and export of certain crops : The implementation of this project would ensure the employment of at least 470 people. Lowering the cost of heating greenhouses by using steam would contribute to reducing the final price of agricultural products throughout the year. The implementation would ensure sufficient quantities of certain agricultural products to reduce imports in B&H (e.g. paprika and tomato up to 50%, and the produced quantities of cucumber would be sufficient to fully meet the needs of the Bosnia and Herzegovina market).

Thank you for your attention! MINISTRY OF DEVELOPMENT AND ENTREPRENEURSHIP OF TUZLA CANTON Rudarska 65, 75000 Tuzla tel: +387 (0)35 369-352 fax: +387 (0)35 369-437 e-mail: minrp@tk.kim.ba www.mrp.tk.gov.ba INDEPENDENT OFFICE FOR DEVELOPMENT VI bataljona bb (Poslovni inkubator), 76250 Gradačac Tarevci bb (Poslovni inkubator), 74480 Modriča tel/fax: +387 (0)53 810 – 952 e-mail: pitcentar.nbr@gmail.com www.nbrudruzenje.org