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Construction

WHY INVEST?

The construction sector and building material industry represent significant potential in the Republic of Srpska.

The construction sector includes companies engaged in the activities of building construction, civil engineering construction, hydro engineering construction, insulation, installation and mounting works in construction, and engineering and design. The building material industry includes companies engaged in the extraction of rock, gravel, sand, clay and kaolin, as well as companies manufacturing cement, lime, gypsum, ceramic and brick products, concrete and products of concrete, cement, gypsum and rock.

Abundant experience, tradition and qualified workforce enabled successful works performance throughout the world (Algeria, Iraq, Libya, Russia, Germany) in the past and created the reputation still maintained by RS construction companies.

There are investment opportunities in this sector aimed at modernization and competitiveness upgrading. Reasons for investments are the following:
•    Tradition and experience in construction industry
•    Qualified labour, quality and availability of skilled and highly qualified labour
•    Varied and developed building material industry
•    Republic of Srpska also has significant base materials, raw materials and infrastructure for this sector
•    Proximity of large markets of the EU and Central and Eastern Europe
•    Tradition and experience in design and engineering (consulting)

The construction sector and building material industry currently employ 10,574 persons.

In the first quarter of 2018, the construction in the Republic of Srpska registered growth of 4.4 percent.
First quarter of 2018
+4.4% – total growth
+7.8% – building construction
+1.3% – civil engineering construction

A decline in construction was registered in the end of all four quarters of the last year, and final result for the entire 2017 was -2.2 percent.
Statistical data for the first quarter of this year indicate the end of crisis since the scope of works grew by 4.4 percent compared to the same period last year. The positive result is mostly due to investments in building construction, where quarterly growth amounted to 7.8 percent.
Civil engineering construction, which also had poor result last year, is out of the red and registered a symbolic growth of 1.1 percent.
The positive result in this sector was influenced the most by construction of buildings due to increased demand for apartments.

The mild growth of scope of works in civil engineering construction is due to intensified construction of the 9 January motorway between Banja Luka and Doboj. Earthworks on this motorway were performed last year, and higher value facilities are being built now
Valuable infrastructure projects were announced in the Republic of Srpska in 2018, and completion of construction of the second section of the 9 January motorway is expected in the middle of the year. Beginning of construction of corridor Vc motorway section running through the Republic of Srpska is also planned this year, as well as a bridge on the Sava near Gradiška between BiH and Croatia.

 

THEY HAVE ALREADY INVESTED

The European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) are already involved in the infrastructure projects in this territory through financing of a section of the Gradiška – Mahovljani motorway and construction of the Banja Luka – Doboj motorway.