SPRING WATER BOTTLING PLANT

PLAŠKI

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Preamble The company PRIMA d.o.o. wants to construct a drinkable spring water bottling plant at the

location of Plaški in Karlovac county among its other activities. By its actions made so far

PRIMA d.o.o. has ensured the location for construction with the complete infrastructure and

concession for pure drinkable water of capacity of 20 L/sec of excellent microbiological and

chemical purity. All preparatory and pre-investment operations have been brought to the final

phase and one can start with projecting and construction of the bottling plant. As amount of

water obtained by concession is great, PRIMA d.o.o. wants to find a reliable business partner

for joint investment and there are also some other possibilities.

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Location for construction The land with complete infrastructure for construction of the bottling plant is located in

PLAŠKI – Karlovac county, 120 km far away from Zagreb and 100 km from the harbour of

Rijeka. The motorway Zagreb – Split is located besides the location for construction at

distance of 12 km. The construction land and buildings at the cadastral plot No. 1079/1 at

Plaški are located in the central part of the mountain area of Croatia at height above sea-level

of 550 metres, surrounded with the mountain relief of middle height of 800 – 1100 metres.

The mountains and the whole area are rich in luxuriant vegetation which makes a clear and

balanced ecological system with greater amount of precipitation and climatic conditions. All

spring waters at the basin of Plaški come from the mountain areas of height above sea-level of

1200 meters, where there are no agricultural activities. The mountain massif of Velika and

Mala Kapela makes a large reservoir of pure drinkable water. At the foot of this massif there

is also the source of Dretulja of capacity of 1000 L/sec where PRIMA d.o.o. obtained

concession for bottling.

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Communications The location for construction is excellently connected with central, coastal and south Croatia

by the newly constructed motorways. The coast is at distance of only 70 km. The location of

Plaški is also well connected with all parts of Croatia by rail and it has a railway network of

2.5 km within the factory circle as well as its own loading and unloading ramp at the railway

station of Plaški. The location possesses a fixed telephone network and signals for mobile

telephones.

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Description of the ground for construction PRIMA d.o.o. is a land registry owner of the cadastral plot No. 1079/1 at Plaški of total area

of 400 000 m2 of the fenced, cleaned and restored land which is prepared for construction of

the pure drinkable water bottling plant.

The cellulose factory was installed at the ground, which ceased its activities in 1990. The

location is separated outside of the settlement of Plaški and it excellently connected to the

network of local roads and new motorways. The location has been cleaned out from the out-

of-date technology machines as well as from technical waste. The existing buildings have

remained at the ground, which have been partially restored. There are total 29 construction

facilities in the fenced factory circle (administrative buildings, warehouses, production halls,

infrastructure facilities, buildings, doorman’s booths etc.) of total ground-plan area of 33 000

m2. The whole ground is provided with water-supply and sewage systems. The river Dretulja

passes in the close vicinity of the location. The energy connection of 3 MW power is

available at the ground for construction. Railway gauges, internal roads, open warehouses and

arranged green areas have been constructed in the circle as civil engineering facilities. The

fire-fighting network has an installation of 80 mm with 30 hydrant drain places of total length

of 2850 metres and with its own pump station from the river Dretulja. The whole factory

circle is provided with a water supply system of diameter of 2 inch.

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Spring location – water quality The spring of pure drinkable water is located at the foot of the mountain Mala Kapela and it is

2.5 km far away from the bottling plant. In the most droughty weather conditions the spring

capacity is 1000 L/sec. The analysis of spring water at the source of Dretulja has been made

in all weather conditions and with different water levels. The spring never becomes turbid and

it is used for providing Plaški and neighbouring places through the water-supply system. The

spring use dates from the 19th century and its water intake and use were installed by Austria-

Hungary. Water-intake of the spring was additionally made and in its emergence in depth of

the mountain water is distributed into the water-supply system and paralelly by special water-

intake for use of PRIMA d.o.o. and by pipeline to the bottling plant of Plaški. The project was

made for pipeline construction and location permit was obtained. The spring analysis in all

weather conditions shows that a very quality water is in question with a very good ratio of

minerals and water is very clean on a microbiological basis with constant temperature of 8 –

9 °C.

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Compliance of the plans of local authorities and investors

Local and county authorities give full support for construction of the drinkable spring water

bottling plant at Plaški, inserting it into their development programmes and giving assistance

to the investor through the existing laws of the Republic of Croatia.

According to these laws the investor is exempt from

• Payment of customs duty for equipment import

• Profit tax amounts to 0 % for 10 years, with export of 70% of production

• A part of tax with employment of employees

For the mentioned reasons the drinkable water bottling plant at Plaški has a certain

advantage as regards the other locations as it is more profitable on an economic basis

through the mentioned benefits and it has market comparative advantages in its start.

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Summary PRIMA d.o.o. disposes of all required elements for construction of the pure spring water

bottling plant at Plaški. It is willing to enter joint investment of the mentioned project with

serious investors and it also offers some other possibilities for construction with concession of

drinkable water of capacity of 20 L/sec. All required conditions for fulfilment of the

mentioned project have been ensured such as:

• Capacity, cleanness and stability of the water spring

• The arranged construction land with all buildings and required infrastructure

• Cleanness of environment and a balanced ecological system

• Consent in all aspects on the level of municipality of Plaški, Karlovac county and

support of the state

• An excellent traffic position defined by new motorways and the existing railway

network

Attachments • Photos of the water spring and the ground for construction of the bottling plant are

attached in the material itself • Ground-plan of the location for construction • Analysis of spring drinkable water

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CROATIAN PUBLIC HEALTH INSTITUTE Department of health control of waters and water-supply Rockefellerova 7 10000 ZAGREB tel/fax: 01 46-83-009

ANALYSIS RESULTS – ASSESSMENT AND OPINION ABOUT QUALITY OF

CRUDE WATER OF BORE D-1 PLAŠKI

Zagreb – April 2003

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ORDERING PARTY: PRIMA d.o.o. Plaški, Sv. Ane b.b. PERFORMED BY: CROATIAN PUBLIC HEALTH INSTITUTE ZAGREB REPORT MADE BY: Edo Lovrić B.Sc.Eng.

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WATER ANALYSIS RESULTS – BORE D-1 PLAŠKI Results of field measuring

Place of taking Bore D-1 Date of taking 6.03.2003 Hour of taking 11.30 Weather conditions Cloudy Air temperature 4,5°°°°C Water temperature 7,4°°°°C Water level* 2,74 m

* measured from upper edge of the concrete ring to the water facing Physical and physical-chemical features

ANALYSES UNIT VALUE MAC

Colour mg/l Pt/Co scales 0 20 Turbidity NTU 1,4 4 Odour without 0 without Taste without 0 without pH PH- units 7,53 6,5-8,5 Electro conductivity µµµµS/cm 434,0 Evaporated residue mg/l / 105°°°°C 256,4 TDS mg/l 204,0 Total hardness mg/l CaCO3 252,0 Carbonate hardness mg/ CaCO3 200,0 Calcium hardness mg/l CaO 114,2 Magnesium hardness mg/l MgO 19,4 Constant hardness mg/l CaCO3 52,0 m- alkalinity mg/l HCO3 292,8 p- alkalinity mg/l HCO3 0 Silicates mg/l SiO2 1,83 Sulphur hydrogen mg/l H2S 0 Without odour Carbon dioxide mg/l CO2 7,25 Consumption KMnO4 mg/l O2 0,78 3,0 TOC mg/l 0,80

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Chemical substances

Analyses Units Values MAC Ammonia mg/l N 0 0,10 Nitrites mg/l N 0 0,03 Nitrates mg/l N 0,6 10,0 Chlorides mg/l Cl 1,1 Sulphates mg/l SO4

-2 4,12 250,0 Phosphates µµµµg/l P 0 300,0 Fluorides µµµµg/l F 39,8 1500,0 Potassium mg/ K 0,25 12,0 Sodium mg/l Na 0,52 150,0 Calcium mg/l Ca 81,5 Magnesium mg/l Mg 11,6 Copper µµµµg/l Cu <<<<1,0 2000,0 Zinc µµµµg/l Zn 50,7 3000,0 Iron µµµµg/l Fe 58,0 300,0 Manganese µµµµg/l Mn <<<<1,0 50,0 Phenols µµµµg/l 0 1,0 Total oils µµµµg/l 54,4 100,0 Mineral oils µµµµg/l 6,7 10,0 Detergents (AA) µµµµg/l 0 200,0 Toxic substances

Analyses Units Values MAC

Aluminium µµµµg/l Al 4,0 150,0 Arsenic µµµµg/l As <<<<0,06 50,0 Cadmium µµµµg/l Cd <<<<0,1 5,0 Chromium µµµµg/l Cr 6,3 50,0 Nickel µµµµg/l Ni 8,5 50,0 Lead µµµµg/l Pb 13,0? 50,0 Mercury µµµµg/l Hg <<<<0,3 1,0 Cyanides µµµµg/l CN <<<<10 50,0 Pesticides1 total/individual µµµµg/l <<<<<<<< 0,5/ <<<<<<<< 0,1 0,5/0,1 THM2 total/individual µµµµg/l 0/0 50/* PAH3 total/individual µµµµg/l 0/0 1,0/0,2 PCB µµµµg/l 0 0,5

1 Organo-chlorine compounds (HCH, HCB, lindane, heptachlorine, aldrine, heptachlorine epoxide, DDE, dieldrine, endrine, DDD, op DDT, pp DDT); organo-phosphorus compounds (DDVP, diazinone, dimethoat, phenchlorophos, ethion, phorate, phenthion, mevinphos, methylparathion, malathion, parathion, trichlorophon, chlorophyriphos)

2 Easily evaporable halogenated hydrocarbons ( chloroform 20 ; 111- trichloroethane 50 ; tetrachlorocoals 2 ;

trikchloroethene 30 ; bromo-dichloromethan 10 ; tetrachloroethene 10 ; dibromo-chloromethan 10 ; bromoform 10

3 Polycyclical aromatic hydrocarbons benzo(a)pyrene, fluoranthene, indeno(1,2,3-cd)pyrene,

benzo(b)fluoranthene, benzo(k)fluoranthene, benzo(ghi)perylene)

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Microbiological indicators

Microorganisms Found MAC

Total coliforms n/100 ml 37°°°°C/24h 0 0 Faeces coliforms n/100 ml 44°°°°C/24h 0 0 Aer.mesophyll bacteria n/1 ml 37°°°°C/48h 0 20 Aer.mesophyll bacteria n/1 ml 22°°°°C/72h 2 100 Faeces streptococci n/100 ml 37°°°°C/48h 0 0 Pseudommonas sp. n/100 ml 37°°°°C/48h 0 0 Sulph.reduc.clostridia n/20 ml 37°°°°C/72h 0 0 Classification of water according to chemical composition Anions Mg/l m-equiv. m-equiv.% Cations Mg/l m-equiv. m-equiv.% HCO3 292,80 4,800 97,46 Ca2+ 81,50 4,075 79,30 SO4

2 4,12 0,086 1,75 Mg2+ 11,60 1,036 20,15 Cl 1,10 0,031 0,63 Na+ 0,50 0,023 0,44 NO3 0,60 0,008 0,16 K+ 0,25 0,006 0,11 Total 4,925 100,00 Total 5,140 100,00 ASSESSMENT : Calcium-magnesium -hydro carbonate water

OPINION : The water sample complies with art.2. , 6. , and 8 of the «Regulations of Health Accuracy of Drinkable Water» (OG 46/94) and the «Regulations of Changes and Amendments of the Regulations of Health Accuracy of Drinkable Water» (OG 49/97). The water sample complies with art.9. and 11., of the «Regulations of Basic Requests for Natural Mineral, Spring and Table Waters »(OG 58/98), as spring water.

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