Investment Certification Programme for Regions (ICPR)

Although perhaps best known for its tourism potential, Croatia has an extremely diverse economic structure. Not only does its tourism product vary from region to region but there are many other important value added economic activities and opportunities across the country. Economic activities range from organic farming to advanced manufacturing and from software design and development to financial services and logistics.

In order to ensure that investors are aware of these opportunities and can make an informed decision about which regions to consider when evaluating an investment opportunity the Ministry of Economy, Labour and Entrepreneurship (MELE) together with Croatia’s Investment and Export Promotion Agency (APIU) using EU Cards support developed the ICPR.

They recognised that the attraction of investment is a highly competitive business worldwide. Investors always have a choice. Thus the ability to successfully attract an international investment depends not only on the overall macro economic conditions of Croatia but also on the ability of regions to offer attractive and competitive conditions to potential investors that meet their business needs. 

The ICPR created three standards that aim to certify that regions can:

a)         Meet with potential investors and present the local ‘business case in a professional and convincing manner that demonstrates an understanding of investor needs and an ability to meet them. b)         Help ensure that the investment process is made as trouble free and speedy as possible since “time to market” is an increasingly critical issue for international investors.
c)         Ensure that existing investors have the opportunity to develop successfully and expand through regular contact with relevant public sector officials aimed at addressing bureaucratic obstacles and removing barriers to growth.

The aim is to develop a so called “one stop shop” which goes further than offering bureaucratic services (company registration, planning etc.) and actually helps to both sell and facilitate direct external investment into the region.

The ICPR Standards

The standards

To become certified a Region will be rated on its ability to successfully meet three standards. These standards are based on research carried out into the needs of major international investors and best practice among successful investment attraction agencies.

Certifies that the Region can meet the information needs of a typical investor and knows how to use the information is a selling situation. To meet the requirements of the standard a region should;

• Complete a detailed information checklist and identify sources of relevant detailed information for follow-up questions.
• Conduct a survey of existing investors in the region to understand both strengths and weaknesses of the regional ‘product’ and to identify expansion opportunities or investment barriers.
• Develop a local suppliers database to service the needs of targeted investors
• Complete a report on one or more high growth potential sectors in the region

Demonstrates that the Region is able to offer a range of sites and buildings that meet international standards and that are ready for development or occupation by a new investor with appropriate infrastructure and services.

Each region should be able to demonstrate that they can provide full documentation for:

• At least 150 ha of serviced and properly zoned land available in the next 12 months
• At least 250 ha of additional development sites available in the next 60 months

Where a region has developed a territorial marketing strategy, a client management structure and produced marketing materials and an action plan to present its product in a professional and attractive manner to clearly selected targets.

In addition to a clear marketing strategy and action plan with a confirmed budget each region should demonstrate that it has created:

• A web site aimed at meeting the information needs of potential investors in at least two languages
• Collateral materials in English (at least) that promote the advantages and opportunities in the region
• A nominated individual or team with the ability and enthusiasm to guide an investor through the process of investment from initial contact to final business launch.

Investors can recognise certified regions through the use of the certification logo on their brochures and web site;

Contacting a certified region should guarantee:

• A prompt and courteous response to an initial enquiry
• Free project management services including:

a)      Provision of detailed information on workforce availability and skills, property availability, cost base and potential suppliers
b)      Organisations of a visit to the region to meet with key officials or suppliers and to visit sites and buildings
c)      Introduction to central government officials to discuss national issues such as work permits and incentives.

The result for investors will be an efficient and effective investment process.

Participating in the ICPR offers the following benefits and advantages:

• Training of key staff to identify and promote investment opportunities
• Clear definition of property availability for business users
• Advice and support on understanding how to negotiate with a foreign investors
• Production of a relevant and focused marketing strategy and supporting materials

And when the strategy is successfully implemented…..

• Creation of value added jobs in the regions

The ICPR plays a small part in helping develop a clear understanding of investors needs at both national and regional levels and developing infrastructure and services that can meet them.

The Ministry of the Economy, Labour and Entrepreneurship- Investment promotion and Export Directorate has within the CARDS 2002 Project “Development of Business and Investment Environment in Croatia“ implemented in 2006 the „Investment Certification Programme for Regions“ (ICPR).

The programme was implemented in three pilot regions:

1. North Croatia – Međimurska County and Varaždinska County
2. Central Adria – Šibensko-kninska County and Zadarska County
3. Central West Croatia – Karlovačka County and Primorsko-Goranska County.

All three regions have received Certificates, as well as the persons actively involved in the Programme.

In view of the Program outcomes, as well as significant interest of other counties to apply the identical Certification Programme, the Ministry has reached agreement with the USAID – to implement the second phase of the “Investment Certification Programme for Regions”.

The second phase was launched on April 30, 2007. Six counties are involved:

1. Bjelovarsko-bilogorska County
2. Dubrovačko-neretvanska County
3. Istarska County
4. Koprivničko-križevačka County
5. Krapinsko-Zagorska County
6. Splitsko-dalmatinska County

The project implementation is planned by the end of April 2008.