By Aleksandar Pavlevski for Southeast European Times in Skopje -- 24/01/12
Foreign investors in Macedonian municipalities such as Petrovec, where Euroitalia is building a university, are among the drivers of economic development. [Aleksandar Pavlevski/SETimes]
Cities in Macedonia are hoping for an economic windfall through a new government programme that allows them to manage state-owned land to private investors and keep most of the profits in the communities.
The programme, part of a law passed last July, is part of the Macedonia's decentralisation policy to urbanise uninhabited land and entice local government to participate in economic development.
"Fourteen municipalities already manage state land, we expect an additional ten to complete the procedures by February," Prime Minister Nikola Gruevski said.
The new law stipulates the land price is to be determined by mayors in consultation with municipal councils, but is subject to state approval. Municipalities will retain 80% of the earnings while allocating 20% to the state budget.
The mayors say strict procedures have been put in place to guarantee transparency; the process is carried out via electronic bids and is monitored by the state. Cities that run afoul of the law could lose the right to participate in the program and could pay as much as 9,000 euros in fines.
The municipalities' involvement in developing land will bring much needed funds, Prilep municipality budget and finance head Drage Zvezdakoski told SETimes
"The budget is expected to increase 21% this year mostly from selling land and public utilities," he said. To maximize earnings, Zvezdakoski added, Prilep began drafting detailed urban plans which it offers investors prior to the bidding.
Struga Mayor Ramiz Merko told SETimes that his municipality, like most others, has vast swaths of state-owned land ready to offer to investors. "Most significant opportunities are related to building production facilities and plants ... not solely trade," he said.
Domestic and foreign investors from Italy, Croatia and Greece have shown particular interest in Petrovec, located near Skopje's Alexander the Great Airport, Petrovec municipality Mayor Borche Mitevski told SETimes.
"There are specific plans to build a university, three hotels, two gas pumps, 30 plants of non-polluting light industry, ten warehouses and several distribution centers," Mitevski said.
Italian investor Euroitalia purchased a 50,000 square meter land parcel in Petrovec to build the new university and a 6,000 square meter parcel in Katlanovo, where it said it plans to build a hotel, hospital, casino and a resort.
"Land management will provide faster services to citizens," Petrovec resident Goran Toshevski told SETimes.
Toshevski praised the one-stop shop approach whereby the purchase and leasing of construction land and obtaining construction licenses is done at one location.
He added that the rights the mayors now have help them rise to a higher political level and be better recognised.
"Ten years ago, we did not even know who our mayors were. Municipalities were not very active and everything was in the hands of the [central] government. Now the mayor is among the people, and we see their daily activities, how they invest in the municipalities' finances," Toshevski said.
Source: SETimes.com
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