Industrial Parks Planning, Design and Construction

1. Industrial Parks Planning, Design and Construction UNIDO International Guidelines for Industrial Parks International Conference on Industrial Parks June 11-12, Lima Zhao Jie Department of Programme, Partnership and Field Integration International Conference "Industrial Parks for Inclusive and Sustainable Industrial Development" June 11, Lima Zhao Jie UNIDO

2. Context • Job creation and poverty reduction remain major challenges • Deindustrialization undermines development in some regions • FDIs become crucial for development financing • Multi-stakeholder partnerships are vital for sustainable development • High barriers to doing business (access to finance, regulatory, licensing, infrastructure) in some regions

3. Emerging trends affecting Industrial Parks emerging trends shaping the future of Industrial Parks: • Continued competition for FDIs • Concern about environmental externalities is becoming an increasingly significant factor in business operations and decision-making • Many Industrial Parks have become industrialized towns or urban districts • New Industrial Revolution (digital transformation and Industry 4.0) • Circular economy emerged as a business model in manufacturing

4. UNIDO’s mandate inclusive and sustainable industrial development (ISID) • Creating shared prosperity Advancing economic and industrial growth • Advancing economic competitiveness Advancing poverty eradication and inclusiveness • Safeguarding the environment Advancing environmentally sustainable growth • Strengthening knowledge and institutions Advancing the technical, policy and normative knowledge and institutional capacity

5. UNIDO’s Intervention UNIDO became the driving force in global Industrial Park/SEZ promotion soon after it was established in 1966 • UNIDO become a leader in the promotion of Industrial Parks(e.g. organized SEZs study visit for a Chinese delegation in 1970s). • Industrial Parks as a tool to implement ISID, PCPs, etc. • Cross-Departmental Task Force on Industrial Parks(2018). • Industrial Parks framework/tools: • International Framework For Eco-Industrial Parks (2017); • Industrial Estates Principles and Practice (1997); • Guidelines For Establishment Of Industrial Estates In Developing Countries (1978); • International Guidelines for Industrial Parks(2019).

6. UNIDO’s current work in Africa UNIDO providing technical assistance in the conceptualization, planning and design of industrial parks • Integrated Agro-Industrial Parks- under PCP Ethiopia • Staple Crop Zone - Nigeria • Agropoles - under PCP Senegal

7. International Guidelines for Industrial Parks Objectives: • Promote the development of competitive, inclusive and sustainable industrial parks through a comprehensive reference framework. • Contribute to the SDGs through socially and environmentally responsible industrialization • Specific objectives : • Support decision-making; • Improve Industrial Park efficiency; • Enhance Industrial Park competitiveness; • Promote Industrial Park sustainability; and • Ensure Industrial Park inclusiveness.

8. Using the guidelines • Practical and applicable to existing and new industrial parks • Targeted users of the guidelines: • Park Regulators – to create and implement their own regulatory framework; • Park developers –to enhance the planning and setting up process, as well as reduce risks; • Park operators – toprovideservices to residents on a day-to-day basis; • Tenants – to support investment decision and responsible operations; and • Stakeholders and partners,such as multilateral development agencies, financial institutions, and other development partners

9. Focus areas of the guidelines 9 sections of the guidelines Industrial policy, FDIs guarantees, foreign exchange, arbitration, incentives, one-stop shops, investment agreements Potential risks, identification and prioritization, management strategies Land; master planning, partnerships, approval, ESIA, ESMP, infrastructure and utilities, sustainable design Conceptual issues, public policy rationale, objectives, users, scope and structure Way forward Management models, Operation functions, lease/sale, maintenance, waste and energy management, labor relation, dispute settlement, etc. Sector identification, promotion, performance requirement, facilitation and aftercare. 13 key economic, social and environmental performance indicators Business case formulation, location selection and feasibility studies and tools

10. Keys to success Strong government support as part of the national development strategy Robust legal and regulation framework and strong institutions, including one-stop-shop services Strong commercial viability and significant economic and social returns. Independent management body Public, private or joint venture Cooperation between dedicated bodies, regional and national governments • ENABLING FRAMEWORK MANAGEMENT CAPABILITY • LOCATION Strategic location with sound infrastructure Affordable cost of development Environmental and social assessment • INFRASTRUCTURE SERVICE Industrial infrastructure Environmental infrastructure Social infrastructure

11. Phases of Industrial Park Development Economic and Financial Analyses the guidelines can be used for all development stages of Industrial Parks Operation and Adaptation Industrial Park Management Specialized Government Functions Promotion and Marketing Monitoring/Evaluation Implementation and Financing Policy Design & Planning Demand analysis Market Assessment Ecosystem, Stakeholder Engagement

12. Important considerations Important considerations at all stages of Industrial Parks development Customer demand at the center of industrial park development. Continues stakeholder engagement Sustainability and inclusiveness as a core element Reference to national and international policies, guidelines and tools Relevant land acquisition considerations

13. Thank you for your attention!