New construction and modernization of infrastructure are prerequisites for revitalization of the economy. 98% of the Municipality’s terrain is situated on lowlands; there are no major impediments for new construction, infrastructure, farms, and improved transportation. The municipality is also on the navigable part of the Sava River, which can provide water transport in Serbia and on to Europe. The Sava connects directly to the Danube and to the Black Sea. Other advantages are the Belgrade/Zagreb highway to Bosnia and Herzegovina, Croatia, and Hungary, as well as the air traffic terminals of Surčin – Belgrade.

Šabac has plentiful water resources to meet municipal demands and supply water to neighboring municipalities. Current utilization of water resources is approximately 60%. About 90% of the town is adequately supplied with water. The supply system for suburban settlements is under construction.

About 70% of the town is covered by a sewage system, which is being extended to suburban settlements. In Mačva, the network of drainage canals for flood protection is 535 km long.

The gas distribution line Batajnica-Šabac-Zvornik, has capacity of 420 million m³ per year and passes through Š abac. The gas line route runs through densely populated areas of the municipality. Natural gas can be extended to businesses and households in the area . The gas lines can only be extended, however, once investment funds are available.

Though extensive, the road system is in need of repair. The deterioration of trunk, regional, and local roads is noticeable, due to lack of funds for maintenance in recent years. The electric power supply is not reliable and is challenged with periods of fluctuating supply. Thorough overhauls have not been performed over the past fifteen years. It is therefore necessary to renovate and replace obsolete equipment in order to improve the quality of supply. At present 91% of electricity consumption is in households, and only 9% consumed by industry.

Challenges

Several weaknesses cannot be ignored:

• 25% of the unemployed are between 31 and 40 years of age, which shows that relatively large number of young people with eagerness for skill improvement and job opportunities still have no opportunity for career advancement. Of all unemployed persons, 1.5% have higher education (university degree) and 33% have secondary education. The education system is not providing vocational and business preparation for students, workers, and unemployed persons in transition.
• Šabac must improve support for the development of small and medium-sized enterprises. The LED analysis showed that the information, business registration, and other support services of the municipal government are not adequate at this time.
• Lack of banks loans with favorable terms and conditions for start-up businesses and expansions limits new business development.
• The privatization of state companies engaged in agriculture and food storage and distribution has not been completed, and remains problematic. Once privatized, these processing facilities will require significant investment in order to achieve contemporary standards and competitive, cost-effective operations.

The Tasks Ahead

• The largest challenge is creating new jobs in order to reduce unemployment. Our objective is to reduce unemployment by 10% by the end of 2010. We plan to accomplish this through education and training projects focusing on key areas of required to give workers modern skills.
• Support for small and medium-sized enterprises is one of our highest priorities. We have identified projects to support the SME sector. Šabac will introduce and apply international quality standards in 50% of the local enterprises by the end of 2010. We will also provide support through education, training, marketing, and quality improvement assistance to business associations and clusters.
• Our goal for agriculture is to create sustainable and efficient farms, competitive under free market conditions. We plan to improve support for agriculture technically, organizationally, and through human resources development. We also plan to facilitate investments in food production and processing though incentives for new agricultural enterprises, investors, and strategic partnerships.
• Finally, we will seek greenfield investments for business and industrial zones to attract new enterprises of all sizes.

Through an analysis of local conditions and potentials and a study of the Serbia and regional markets, the Šabac Local Economic Development Team identified these goals through 2010 and programs and projects to achieve them. The programs and projects are a result of a detailed analysis corresponding to evaluation of relevant economic development indicators. These priorities are a sound reflection of our work to define the path toward economic growth in Šabac. We invite business, investment, and donor partners to join with us as we maximize our competitive advantages in Šabac in the years ahead.

The LED Strategy in its entirety can be found at www.so-sabac.org.