INTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENTINTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS November 2019 CROSS-DISCIPLINARY TEAM ON INDUSTRIAL PARKSCROSS-DISCIPLINARY TEAM ON INDUSTRIAL PARKS INTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS PAGE 4 PAGE 5 Foreword DIRECTOR GENERAL FOREWORD The United Nations Industrial Development Organization UNIDO is a specialized agency of the United Nations with the mandate to promote inclusive and sustainable industrial development ISID. This mandate is central to the achievement of the 2030 Agenda for Sustainable Development Goal 9 “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation”, with interlinkages to support the achievement of the other sustainable development goals. Meeting this goal requires, among others, adequate infrastructure development that can support investment in priority sectors of Member States and overcome the constraints associated with doing business in an economy. Inclusive and sustainable industrial parks are a feasible, innovative and integrated intervention, which can be used to support countries, especially developing countries and middle-income economies, in accelerating their inclusive and sustainable industrialization and structural transation. Industrial parks help overcome business infrastructure constraints and barriers to firm entry into the markets. Industrial parks have the capacity to generate high productivity, stimulate innovation, promote investment and foster social inclusion and environmental protection. Over the past four decades, UNIDO has been promoting the establishment of industrial parks - we have been assisting our Member States in the planning and establishment of industrial parks to support sustainable growth through industrial development. The development of inclusive and sustainable industrial parks are instrumental in the implementation of the Programme for Country Partnership PCP, UNIDO’s innovative multi- stakeholder partnership model to accelerate ISID in Member States. UNIDO provides the technical support in infrastructure development, and complements this with appropriate policy analysis and advice to support the operationalizing of the industrial parks. Through the PCP, UNIDO supports our member countries to mobilize diverse partners, financial resources and knowledge in order to create the synergies required to promote and implement industrial development, and to maximize development opportunities following the establishment of industrial parks. As part of our holistic approach, UNIDO consolidates best practices and develops the necessary guidance tools to support our Member States and partners on issues related to industrial park development. We developed an “International Guidelines for Industrial Parks”, a comprehensive reference framework to guide the development of competitive, inclusive and sustainable parks. The guidelines were prepared by combining in-house technical expertise with international best practices. We hope that these guidelines will serve as a useful guide and reference tool by the different stakeholders, including industrial park regulators, developers, operators, tenants, partners such as multilateral development agencies and financial institutions. The guidelines are relevant to both existing and new industrial parks in various international contexts, with a focus on the needs and challenges developing countries and middle-income economies face. Cognizant of our specialized knowledge and capabilities, UNIDO is committed to strengthening the development of inclusive and sustainable industrial parks in developing countries and middle-income economies. In this context, UNIDO will regularly review and update the guidelines to take account of new developments and evolving trends in the global development and industrial landscape, as well as s from our Member States and partners. UNIDO also stands ready to offer its services in assisting local implementers to make best use of the guidelines. The scope of such services may range from developing specific derivative documents and tools to supplement the guidelines to facilitate the implementation of these guidelines, to organizing international and regional forums, conferences and technical workshops, creating knowledge-exchange plats and providing training. LI Yong Director General United Nations Industrial Development OrganizationCROSS-DISCIPLINARY TEAM ON INDUSTRIAL PARKS INTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS PAGE 6 PAGE 7 ACKNOWLEDGEMENTS Acknowledgements This document has been produced without al United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization UNIDO concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. This document may be freely quoted or reprinted but acknowledgement is requested. Copyright 2019 United Nations Industrial Development Organization Images 2019 - www.unido.org, DISCLAIMER This publication has been produced by the United Nations Industrial Development Organization UNIDO Cross- Disciplinary Team on Industrial Parks CDTIP under the general guidance of Philippe Scholts, Managing Director of the Directorate of Programme Development and Technical Cooperation. The publication was supported by the Government of China within the framework of the UNIDO project “Establishing UNIDO Industrial Parks Guiding Framework”. We would like to recognize the Ministry of Commerce of the Peoples Republic of China for its financial and technical support. In particular, we would like to acknowledge the strong support of Minister Counsellor Shenhong Yao of the Permanent Mission of China to UNIDO. Foremost, we would like to express our sincere gratitude to Ciyong Zou, Director of the Department of Programmes, Partnerships and Field Integration, and Dejene Tezera, Director of the Department of Agribusiness, for their strategic guidance to the CDTIP . The publication represents a collaborative effort, made possible by s from UNIDO experts and feedback from partner institutions. We would like to thank Nilguen Tas, Petra Schwager, Nobuya Haraguchi, Stefan Kratzsch and Mark Draeck for their valuable and work on the technical review. In drafting, consolidating, editing and coordinating the preparation of this publication, our sincere thanks go to Jie Zhao, Eneyew Abera Gebremenfas, Renata Ridlovschi and Hao Ding. The publication has also benefited from peer review by an international team of experts from partner institutions, including David Morgant from the European Investment Bank, Jiangning Qiao and Xinyue Zhang from the Export-Import Bank of China, Lan Li from the Food and Agricultural Organization, Narayanan Chandrachoodan Surya from Mahindra Consulting Engineers Ltd., Jean-Paul Gauthier from Locus Economica, Ylva Gilbert from the Gaia Consultancy and Xingping Wang from the South-East University of China. We are grateful to many other people and organizations for providing s, especially representatives from the Chinese Academy of International Trade and Economic Cooperation CAITEC, and all our other partners whom we are unable to mention individually. Layout and design Excelcis SARL, Multilingual Communication Services.CROSS-DISCIPLINARY TEAM ON INDUSTRIAL PARKS INTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS PAGE 8 PAGE 9 TABLE OF CONTENTS FOREWORD 5 ACKNOWLEDGEMENTS 7 LIST OF FIGURES 10 LIST OF TABLES 10 LIST OF BOXES 11 CUTIVE SUMMARY 15 1. INTRODUCTION 25 1.1 INCLUSIVE AND SUSTAINABLE INDUSTRIALISATION AND INFRASTRUCTURE 26 1.2 THE CONCEPT OF INDUSTRIAL PARKS 26 1.3 PUBLIC POLICY ARGUMENTS FOR ESTABLISHING INDUSTRIAL PARKS 28 1.4 EMERGING TRENDS AFFECTING INDUSTRIAL PARKS 30 1.5 OBJECTIVES OF THESE GUIDELINES 32 1.6 STRUCTURE OF THE GUIDELINES 34 1.7 SCOPE AND S OF DEVELOPMENT 34 1.8 USING THE GUIDELINES 35 2. INDUSTRIAL PARK PLANNING 37 2.1 BUSINESS CASE DEVELOPMENT AND DECISIONS 38 2.2 PRE-FEASIBILITY STUDIES 39 2.3 FEASIBILITY STUDIES 44 2.4 FEASIBILITY ANALYSIS TOOLS 46 3. INDUSTRIAL PARK LAND ACQUISITION, DESIGN AND DEVELOPMENT 49 3.1 ACQUISITION OF LAND 50 3.2 SITE MASTER PLANNING 51 3.2.1 Planning Principles and Considerations 51 3.2.2 Preparing Site and Plots Layout 51 3.2.3 Zoning within the Park 52 3.2.4 Infrastructure Assessment and Planning 53 3.2.5 Resource and Energy-Efficient Park Design 56 3.2.6 Integrated Waste Management Plans 57 3.3 ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENTS AND IMPACT MITIGATION PLANS 59 3.4 SUSTAINABLE AND PEER-REVIEWED ENGINEERING PLANS 61 3.5 CONSTRUCTION 62 3.6 STAKEHOLDER ENGAGEMENT DURING PARK DESIGN AND DEVELOPMENT 62 4. INDUSTRIAL PARK OPERATION AND MANAGEMENT 65 4.1 INDUSTRIAL PARK OPERATOR FUNCTIONS 66 4.2 TRANSFER OF DEVELOPED PLOTS 68 4.3 LABOUR RELATIONS MANAGEMENT 69 4.4 ENERGY MANAGEMENT IN PARK OPERATIONS 69 4.5 WASTE MANAGEMENT IN PARK OPERATION 71 4.5.1 Waste Management Plans 71 4.5.2 Chemical waste management 72 4.6 MANAGEMENT MODELS 72 5. INDUSTRIAL PARK REGULATION 77 5.1 INDUSTRIAL PARK POLICY 78 5.2 FOREIGN DIRECT INVESTMENT FDI GUARANTEES 81 5.3 FOREIGN EXCHANGE POLICIES AND REGULATIONS 81 5.4 ARBITRATION FOR FOREIGN INVESTORS 82 5.5 INVESTMENT INCENTIVES 83 5.6 DEDICATED INDUSTRIAL PARK LEGISLATION 86 5.7 INDUSTRIAL PARK ONE-STOP SHOPS 87 5.8 MULTILATERAL, REGIONAL AND BILATERAL INVESTMENT AGREEMENTS AND RULES 89 6. INDUSTRIAL PARK INVESTMENT MARKETING AND FACILITATION 93 6.1 SECTOR IDENTIFICATION AND INVESTMENT TARGETING 94 6.2 INVESTMENT PROMOTION 95 6.3 INVESTOR PERANCE REQUIREMENTS 96 6.4 INVESTOR SUPPORT, FACILITATION AND AFTERCARE SYSTEMS 97 6.5 INVESTMENT FACILITATION COORDINATION AND DELIVERY FRAMEWORKS 99 7. INDUSTRIAL PARK RISK MANAGEMENT 101 7.1 RISK MANAGEMENT CYCLE 102 7.2 POTENTIAL INDUSTRIAL PARK PROJECT RISKS 103 7.3 RISK IDENTIFICATION AND PRIORITIZATION 103 7.4 RISK MANAGEMENT STRATEGIES AND PLANS 105 8. INDUSTRIAL PARK PERANCE UATION 109 8.1 ECONOMIC PERANCE INDICATORS 112 8.2 SOCIAL PERANCE INDICATORS 115 8.3 ENVIRONMENTAL PERANCE INDICATORS 119 9. CONCLUDING REMARKS 125 Table of ContentsCROSS-DISCIPLINARY TEAM ON INDUSTRIAL PARKS INTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS PAGE 10 PAGE 11 List of Figures List of T ables List of Boxes LIST OF FIGURES, BOXES AND TABLES Figure 1 Basic characteristics of Industrial Parks 28 Figure 2 Key Industrial Park Stakeholders 45 Figure 3 Illustration of Industrial Park Infrastructure Objectives 54 Figure 4 Wastewater Treatment Approach in Industrial Parks 58 Figure 5 UNIDO Approach to Determining Priority Industries for Investment Promotion 95 Figure 6 Four Phases of Investment Support 98 Figure 7 Delivery Model for Effective Industrial Park Investment Facilitation 99 Figure 8 Risk Assessment and Management Cycle 102 Figure 9 Industrial Park Risk Management Strategies 105 Table 1 Common Types of Industrial Parks 627 Table 2 A Typical Parameter Matrix for Site Selection 43 Table 3 Phased, One-Off Implementation Activities of Industrial Park Developers 50 Table 4 Basic Infrastructure, Utilities, Facilities and Services of Industrial Parks 56 Table 5 Comparison of Centralized and Decentralized Wastewater Treatment Systems 58 Table 6 Ongoing Activities of Industrial Park Developers-Operators 66 Table 7 Possible Industrial Park Management Functions 67 Table 8 Industrial Parks Risks 103 Table 9 Strategic, Planning and Development Risk Identification 104 Table 10 Operational Risk Identification 104 Table 11 UNIDO Indicators of Industrial Park Economic Perance 115 Table 12 UNIDO Indicators of Industrial Park Social Perance 119 Box 1 Site Selection Criteria for EU Science and Technology Parks 42 Box 2 Colombian Eco-Industrial Parks 57 Box 3 Multilateral Development Bank Safeguards Policies 60 Box 4 Business Incubation Centres in Industrial Science Parks and Technology Zones 68 Box 5 Serviced Land and Factory Shell Leasing in Ethiopian Industrial Parks 69 Box 6 Industrial Energy Symbiosis in Sweden’s Helsingborg Business Park 70 Box 7 Industrial Park Management Models 75 Box 8 National Industrial Park Policies in India and Republic of Korea 79 Box 9 Eco-Industrial Parks 80 Box 10 The Jebel Ali Free Zone in Dubai 80 Box 11 Iraq Industrial Parks Policy Oversight Framework 81 Box 12 Turkey’s Investment Incentives 84 Box 13 Perance Incentives for Investors in Industrial Parks in China 85 Box 14 Measuring Industrial Park Incentives’ Impact on Business Perance in Viet Nam 85 Box 15 Industrial Park Legislation in Viet Nam and Ethiopia 87 Box 16 Industrial Park One-Stop Shops 88 Box 17 Quality Control Services in Industrial Parks in China and Ethiopia 89 Box 18 Agro-Processing Investment Targeting in Industrial Parks in Ethiopia 94 Box 19 Pollution monitoring technology in Jiaxing Port Chemical Industrial Park, China 107 Box 20 The 13 Key UNIDO Indicators of Industrial Park Perance 113110CROSS-DISCIPLINARY TEAM ON INDUSTRIAL PARKS INTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS PAGE 12 PAGE 13 List of Acronyms LIST OF ACRONYMS ADB Asian Development Bank AfDB The African Development Bank AI Artificial Intelligence AIP Agro-industrial Parks B2B Business to Business BREEAM Building Research Establishment Environmental Assessment CAPEX Capital Expenditure COMFAR Computer Model for Feasibility Analysis and Reporting COSHH Control of Substances Hazardous to Health CRM Customer Relationship Management CSP Cambridge Science Park DCR Development Control Regulations DFI Development Financial Institution DGNB German Sustainable Building Council EA Environmental Assessment EBRD European Bank for Reconstruction and Development EIB The European Investment Bank EIP Eco-Industrial Park ELIDZ East London Industrial Development Zone EPE European Principles for the Environment EPR Enterprise Resource Planning EPZ Export Processing Zone ERR Economic Rate of Return ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Impact Mitigation Plan EU European Union EVA Economic Value Added FDI Foreign Direct Investment FIAS Foreign Investment Advisory Service FAO Food and Agricultural Organization FTA Free Trade Agreement FTZ Free Trade Zone GDP Gross Domestic Product GHG Greenhouse Gas GIS Geographic Ination Sys