Delphi to start producing in Paracin in late 2017? – Municipality preparing conceptual design for future facility

The Directorate for Construction and Development of Paracin has placed a tender for the preparation of a conceptual design for a production facility in the Zmic industrial zone, which will most probably be leased to the American company Delphi.

At the Directorate, they have said for our portal that the main goal is to estimate the cost of constructing such a facility, which would be offered to investors, as confirmed by the president of the municipality, Sasa Paunovic, following another visit by Delphi representatives.

– The information is still tentative and the municipality has not yet discussed the details with such a large investor. If everything goes according to plan, the construction might start in March 2017 and the facility might be leased in November – Paunovic said, as reported by the municipality’s portal.

He said to the media earlier that the construction of the facility might cost up to around EUR 10 million, which would make it the biggest investment funded from the budget of the municipality of Paracin in several decades.

– Spending about EUR 10 million on the project roughly means that there shouldn’t be any construction of streets, the sewer and water systems or reconstruction of key points, maintenance of parks and streets for four years. Roughly speaking, the funds are sufficient for 30 years of intensive street construction, or construction of nearly 60 school sports halls, or the sewerage for 30 villages – Paunovic said.

The municipality nevertheless points out the importance of the project which might employ 1,500 people and kickstart the economic development in the city. To the end of securing the state’s help, negotiations were carried out with the competent minister and the state secretary, as well as with Banca Intesa, which the municipality cooperates with in order to procure the funds.

As the municipality’s website says, it is expected that Delphi will reach the decision this week on whether to come to Paracin and start producing cables for the automotive industry.

Provided that the investor decides to initiate the project in cooperation with the municipality, after the conceptual design is prepared, the municipality will need to provide the necessary conditions, to carry out the final evaluation of the investment, provide the necessary funds and the bank’s guarantees and reach decisions making the implementation possible.

The tender documentations states that the parcel in question has 7.24 ha of area and that the total area of industrial facilities within the complex amounts to 15,545.00 m2.

Around 5,000 m2 of the factory yard is meant for truck traffic, and a car parking lot for around 150 vehicles should also be provided.

The bid submission deadline is September 16.

Direkcija za izgradnju i uređenje opštine Paraćin

APTIV MOBILITY SERVICES DOO NOVI SAD

Opština Paraćin

Directorate for Construction and Development of Paracin

Zmic industrial zone

Delphi

Sasa Paunovic

investments in Paracin