SAVINJSKO – ŠALEŠKA AND ZASAVJE REGION

PILOT COAL-MINING REGION IN TRANSITION

ABOUT DEVELOPMENT AGENCY

• We promote regional development, and carry out general development tasks at regional level.

• Bringing together all relevant stakeholders that are willing to contribute to the regional development.

• Basic strategic challenge: transition of the region.

• Savinjsko – Šaleška, Zasavje region defined as one of 18 pilot regions.

• We are included in the European „Coal Regions in transition Platform“.

SAŠA REGION – BASIC DATA

• Surface: 705,6 km2

• 10 municipalities

• Population: 60.981

• Number of businesses/companies: 1.132

• Number of employed: 16.511 (Velenje Coal Mine Group: 2.244, Šoštanj Thermal Power Plant: 306)

• Average Gross Salary per Month: 1.619 €

• Net Value Added per Employee: 33.445 €

*all data is for the year 2018

THE CHALLENGES WE FACED IN THE PAST

ECOLOGICAL REVOLUTION AND THE BEGINNING OF ECOLOGICAL RESTORATION (1987)

THE WAY FORWARD

• Economic diversification, using Smart Specialisation Strategy that will:• Boost region‘s innovation capacity;

• Incourage industrial transformation and diversification;

• Invest in new and fast-growing companies.

• Decarbonisation

• Bringing together different stakeholders

• Using „buttom up“ approach

CRISIS = OPPORTUNITY

In the Chinese language, the word „crisis“ („WEI JI“) is composed of two characters, one representing danger, and the other opportunity.

Zasavje region

• Surface area: 485 km2

• Consists of 3 municipalities (Hrastnik, Trbovlje, Zagorje ob Savi). In 2020 the municipality of Litija will join the region.

• Population (y. 2018): 57.050

• No. of employed persons (y. 2017): 15.900

• Unemployment rate (y. 2019): 9,2 %

• Population growth/1000 inh. (y. 2016): -2,1

• GDP per capita (y. 2017): 10.910 EUR

• Education (y. 2018): primary (27 %), secondary (54 %), higher (19 %)

History

• More than 250 years of mining history (the beginning of coal excavation dates back to the year 1755)

• The turning point for the region was the construction of the south railway (Vienna – Trieste). The railway was a constant buyer of coal and enabled the transportation of large quantities of coal & other products.

• Development of the coal dependent industries: glass- factory, led factory, coking plant, brickworks, zinc plant, coal-fired power plant, ceramics, chemical & metal industries

• The coal companies co-financed the construction of residential infrastructure, cultural, health & educational facilities

History

• In 1995 the law on closing down the Zagorje mine was adopted.

• In 2002 the law on closing down the rest of the mines was adopted.

• In 2013 the coal excavation in Zasavje mines permanently stopped.

• In 2014 the 125 MW coal fired generator was permanently shut down in the thermo-power plant Trbovlje.

• The mine closing process from 1995 to 2014 led to the bankruptcy of numerous mine dependent industries and to the loss of around 5000 jobs.

Restructuring measures

• The laws on closing down of Zasavje mines (y. 1995, y. 2002) contained provisions for the regional restructuring (revitalisation of degraded areas, human resource & social programmes) and defined financial resources for restructuring.

• In 2013 the state government declared two regional municipalities (Hrastnik, Trbovlje) as a problem area with high unemployment and adopted the measures for development support in the forms of granting subsidized loans and tax relieves.

• The restructuring measures will be in place until the end of 2020.

Current situation

• Zasavje region is still a lagging region despite all implemented restructuring measures.

• In 2017 the region had the lowest GDP/capita compared to other regions. It reached only 52,4 % of the average regional GDP/capita which is constantly falling since y. 2000 (73,6 %), y. 2008 (60,6 %), y. 2014 (56,7 %).

• In 2017 growth of regional GDP was 3,8 % which was the lowest rate among other Slovenian regions. The average rate was 6,5 %.

• In 2018 more than half of the working population living in Zasavje worked outside the region.

• In 2016 Zasavje had the highest consumption rate of antidepressant medications per capita compared to other regions.

Current situation

• However, business results of the regional entreprises are currently positive.

• The optimistic entrepreneurial spirit can be sensed among younger generation.

• The region boasts some outstanding, high-tech & export- oriented companies. They are active in construction, glass production, chemistry, electro & metal engineering, information technology.

• Plans to preserve energy location in the region: the construction of three hydro power plants on the Sava river.

Summary

• The transformation to a climate neutral economy can have an overall positive impact on the regional economy.

• This deep modernisation process needs to be managed well, ensuring a fair and socially acceptable transition for all.

• Regional Development Agencies can support the transition process with the coordination of relevant stakeholders, assistance indevelopment of transition strategies & identification of relevant ‘priority projects’.

Thank you for your attention!

Šoštanj, 11. 7. 2019