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International Guidelines for Industrial Parks

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International Guidelines for Industrial Parks INTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT INTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS CROSS-DISCIPLINARY TEAM ON INDUSTRIAL PARKS November 2019 INTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS CROSS-DISCIPLINARY TEAM ON INDUSTRIAL PARKS DIRECTOR GENERAL FOREWORD Foreword The United Nations Industrial industrial parks. Through the PCP, UNIDO supports our Development Organization (UNIDO) member countries to mobilize diverse partners, financial is a specialized agency of the resources and knowledge in order to create the synergies United Nations with the mandate to required to promote and implement industrial development, promote inclusive and sustainable and to maximize development opportunities following the industrial development (ISID). establishment of industrial parks. This mandate is central to the achievement of the 2030 Agenda As part of our holistic approach, UNIDO consolidates best for Sustainable Development Goal practices and develops the necessary guidance tools to 9: “Build resilient infrastructure, support our Member States and partners on issues related to promote inclusive and sustainable industrial park development. We developed an “International industrialization and foster innovation”, with interlinkages Guidelines for Industrial Parks”, a comprehensive reference to support the achievement of the other sustainable framework to guide the development of competitive, inclusive development goals. Meeting this goal requires, among and sustainable parks. The guidelines were prepared by others, adequate infrastructure development that can support combining in-house technical expertise with international investment in priority sectors of Member States and overcome best practices. We hope that these guidelines will serve as a the constraints associated with doing business in an economy. useful guide and reference tool by the different stakeholders, including industrial park regulators, developers, operators, Inclusive and sustainable industrial parks are a feasible, tenants, partners (such as multilateral development agencies) innovative and integrated intervention, which can be used and financial institutions. The guidelines are relevant to both to support countries, especially developing countries existing and new industrial parks in various international and middle-income economies, in accelerating their contexts, with a focus on the needs and challenges developing inclusive and sustainable industrialization and structural countries and middle-income economies face. transformation. Industrial parks help overcome business infrastructure constraints and barriers to firm entry into the Cognizant of our specialized knowledge and capabilities, markets. Industrial parks have the capacity to generate high UNIDO is committed to strengthening the development of productivity, stimulate innovation, promote investment and inclusive and sustainable industrial parks in developing foster social inclusion and environmental protection. countries and middle-income economies. In this context, UNIDO will regularly review and update the guidelines to take Over the past four decades, UNIDO has been promoting the account of new developments and evolving trends in the global establishment of industrial parks - we have been assisting our development and industrial landscape, as well as inputs from Member States in the planning and establishment of industrial our Member States and partners. UNIDO also stands ready to parks to support sustainable growth through industrial offer its services in assisting local implementers to make best development. use of the guidelines. The scope of such services may range from developing specific derivative documents and tools to The development of inclusive and sustainable industrial parks supplement the guidelines to facilitate the implementation are instrumental in the implementation of the Programme of these guidelines, to organizing international and regional for Country Partnership (PCP), UNIDO’s innovative multi- forums, conferences and technical workshops, creating stakeholder partnership model to accelerate ISID in Member knowledge-exchange platforms and providing training. States. UNIDO provides the technical support in infrastructure development, and complements this with appropriate policy analysis and advice to support the operationalizing of the LI Yong Director General United Nations Industrial Development Organization PAGE 4 PAGE 5 INTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS CROSS-DISCIPLINARY TEAM ON INDUSTRIAL PARKS ACKNOWLEDGEMENTS Acknowledgements This publication has been produced by the United Nations In drafting, consolidating, editing and coordinating the Industrial Development Organization (UNIDO) Cross- preparation of this publication, our sincere thanks go the Disciplinary Team on Industrial Parks (CDTIP) under the project manager Jie Zhao, and the project team members general guidance of Philippe Scholtès, Managing Director Eneyew Abera Gebremenfas, Renata Ridlovschi, Hao Ding and of the Directorate of Programme Development and Technical Ming Zhang. Cooperation. The publication has also benefited from peer review by The publication was supported by the Government of China an international team of experts from partner institutions, within the framework of the UNIDO project: “Establishing including David Morgant from the European Investment Bank, UNIDO Industrial Parks Guiding Framework”. We would like to Jiangning Qiao and Xinyue Zhang from the Export-Import Bank recognize the Ministry of Commerce of the People's Republic of China, Lan Li from the Food and Agricultural Organization, of China for its financial and technical support. In particular, Narayanan Chandrachoodan Surya from Mahindra Consulting we would like to acknowledge the strong support of Minister Engineers Ltd., Jean-Paul Gauthier from Locus Economica, Counsellor Shenhong Yao of the Permanent Mission of China Ylva Gilbert from the Gaia Consultancy and Xingping Wang to UNIDO. from the South-East University of China. Foremost, we would like to express our sincere gratitude We are grateful to many other people and organizations for to Ciyong Zou, Director of the Department of Programmes, providing inputs, especially representatives from the Chinese Partnerships and Field Integration, and Dejene Tezera, Director Academy of International Trade and Economic Cooperation of the Department of Agribusiness, for their strategic guidance (CAITEC), and all our other partners whom we are unable to to the CDTIP. mention individually. The publication represents a collaborative effort, made Layout and design: Excelcis SARL, Multilingual Communication possible by inputs from UNIDO experts and feedback from Services. partner institutions. We would like to thank Nilguen Tas, Petra Schwager, Nobuya Haraguchi, Stefan Kratzsch and Mark Assistance in printing: the UNIDO Centre for South-South Draeck for their valuable input and work on the technical Industrial Cooperation in China (UCSSIC China). review. DISCLAIMER This document has been produced without formal 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, www.adobestock.com PAGE 6 PAGE 7 INTERNATIONAL GUIDELINES FOR INDUSTRIAL PARKS CROSS-DISCIPLINARY TEAM ON INDUSTRIAL PARKS TABLE OF CONTENTS Table of Contents FOREWORD 5 4. INDUSTRIAL PARK OPERATION AND MANAGEMENT 65 4.1 INDUSTRIAL PARK OPERATOR FUNCTIONS 66 ACKNOWLEDGEMENTS 7 4.2 TRANSFER OF DEVELOPED PLOTS 68 LIST OF FIGURES 10 4.3 LABOUR RELATIONS MANAGEMENT 69 4.4 ENERGY MANAGEMENT IN PARK OPERATIONS 69 LIST OF TABLES 10 4.5 WASTE MANAGEMENT IN PARK OPERATION 71 LIST OF BOXES 11 4.5.1 Waste Management Plans 71 EXECUTIVE SUMMARY 15 4.5.2 Chemical waste management 72 4.6 MANAGEMENT MODELS 72 1. INTRODUCTION 25 5. INDUSTRIAL PARK REGULATION 77 1.1 INCLUSIVE AND SUSTAINABLE INDUSTRIALISATION AND INFRASTRUCTURE 26 5.1 INDUSTRIAL PARK POLICY 78 1.2 THE CONCEPT OF INDUSTRIAL PARKS 26 5.2 FOREIGN DIRECT INVESTMENT (FDI) GUARANTEES 81 1.3 PUBLIC POLICY ARGUMENTS FOR ESTABLISHING INDUSTRIAL PARKS 28 5.3 FOREIGN EXCHANGE POLICIES AND REGULATIONS 81 1.4 EMERGING TRENDS AFFECTING INDUSTRIAL PARKS 30 5.4 ARBITRATION FOR FOREIGN INVESTORS 82 1.5 OBJECTIVES OF THESE GUIDELINES 32 5.5 INVESTMENT INCENTIVES 83 1.6 STRUCTURE OF THE GUIDELINES 34 5.6 DEDICATED INDUSTRIAL PARK LEGISLATION 86 1.7 SCOPE AND METHODS OF DEVELOPMENT 34 5.7 INDUSTRIAL PARK ONE-STOP SHOPS 87 1.8 USING THE GUIDELINES 35 5.8 MULTILATERAL, REGIONAL AND BILATERAL INVESTMENT AGREEMENTS AND RULES 89 2. INDUSTRIAL PARK PLANNING 37 6. INDUSTRIAL PARK INVESTMENT MARKETING AND FACILITATION 93 2.1 BUSINESS CASE DEVELOPMENT AND
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