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Preparatory Survey for Assistance to Small and Medium Sized Enterprises

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Preparatory Survey for Assistance to Small and Medium Sized Enterprises No. Palestinian National Authority Preparatory Survey for Assistance to Small and Medium Sized Enterprises Final Report March 2010 JAPAN INTERNATIONAL COOPERATION AGENCY PADECO Co., Ltd. Global Development & Management Consultants MEE JR 10-002 Palestinian National Authority Preparatory Survey for Assistance to Small and Medium Sized Enterprises Final Report March, 2010 Japan International Cooperation Agency (JICA) PADECO Co., Ltd. Global Development & Management Consultants Palestine Preparatory Survey for Assistance to Small and Medium Sized Enterprises Final Report Map of Jericho Agro-Industrial Park Al Jalama Terminal Jenin IE 20 km Bisan Terminal Khadoury ITE Al Tayba Terminal Nablus IE QalqilyaIE Sheik Hussein Bridge Tel Aviv Airport Amman Airport PIEFZA Allenby Bridge JAIP: Beitunya JAIP Jericho Agro- Terminal Industrial Park Mazmouria Terminal Tarqumia Terminal Tarqumia IE Gaza IE Rafah IE Aqaba Port i Survey for Preparatory Palestine Perspective View of Jericho Agro-Industrial Park Assistance to Small and Medium Sized Enterpri Medium and to Small Assistance ii ses Final Report Report Final ses Palestine Preparatory Survey for Assistance to Small and Medium Sized Enterprises Final Report Contents EXECUTIVE SUMMARY......................................................................................................S-1 1 INTRODUCTION AND BACKGROUND OF THE STUDY.................................... 1-1 1.1 Background............................................................................................................ 1-1 1.1.1 Initiative of the “Corridor for Peace and Prosperity”................................ 1-1 1.1.2 Environment for SMEs in the Palestinian Territories................................ 1-1 1.1.3 Development of Jericho Agro-Industrial Park........................................... 1-2 1.2 Study Objectives.................................................................................................... 1-3 1.3 Study Methodology................................................................................................ 1-3 2 SMEs PROMOTION IN THE PALESTINIAN TERRITORIES.............................. 2-1 2.1 SME Policy and Practices...................................................................................... 2-1 2.1.1 SMEs in the Palestinian Territories ........................................................... 2-1 2.1.2 SME Development Policy in the Palestinian Territories........................... 2-7 2.2 Development Institution Programs for SMEs...................................................... 2-10 2.2.1 Measures by Private and Public BDS Institutions................................... 2-10 2.2.2 Support Programs by the International Community................................ 2-21 2.2.3 Requirements of BDS for SMEs in the Palestinian Territories ............... 2-25 3 FOOD INDUSTRY SMEs AND EXPECTATIONS FOR JAIP................................. 3-1 3.1 Food Industries in the Palestinian Territories and JAIP......................................... 3-1 3.2 Survey on Targeted SMEs in Food Industry .......................................................... 3-2 3.2.1 Qualitative Analysis .................................................................................. 3-2 3.2.2 Investors Business Plans and Affordable Land Lease Rates ..................... 3-5 3.3 Incentives for SMEs in Food Industries to JAIP.................................................... 3-7 4 ISSUES AND SOLUTIONS OF LOGISTICS FOR SMEs ........................................ 4-1 4.1 General Views of Logistics in the Palestinian Territories ...................................... 4-1 4.1.1 In/In Movement and Access...................................................................... 4-1 4.1.2 In/Out Movement and Access ................................................................... 4-3 4.2 Issues and Constraints Regarding Logistics........................................................... 4-4 4.2.1 Logistics Cost Survey................................................................................ 4-4 4.2.2 In/Out Movement and Access ................................................................... 4-6 4.2.3 Summary of In/In and In/Out Border Control Problems........................... 4-7 4.3 Solutions, Issues and Constraints in JAIP.............................................................. 4-9 4.3.1 Past/Current Practices to Cope with the Problems.................................... 4-9 4.3.2 Ways to Improve Logistics...................................................................... 4-11 4.3.3 Logistics Improvement Solutions Expected in JAIP............................... 4-12 4.4 Recommendation to Relevant Parties .................................................................. 4-13 4.4.1 Suggestions to Palestinian Authority....................................................... 4-14 4.4.2 Suggestions to Israel ............................................................................... 4-15 4.4.3 Suggestions to Jordan.............................................................................. 4-15 4.4.4 Suggestions to Japan ............................................................................... 4-16 iii Palestine Preparatory Survey for Assistance to Small and Medium Sized Enterprises Final Report 5 BUSINESS DEVELOPMENT SERVICES (BDS) IN JAIP....................................... 5-1 5.1 Requirements of the BDS Center/Business Development Center (BDC).............. 5-1 5.2 Draft Implementation Plan of BDS Center............................................................ 5-2 5.2.1 Services to be Offered by the BDC........................................................... 5-2 5.2.2 Functions at BDC...................................................................................... 5-3 5.2.3 Organization and Management ................................................................. 5-6 5.2.4 Stages of PBDC Development (Road Map).............................................. 5-9 5.3 Draft Facility Plan for BDC................................................................................. 5-11 5.4 Support Schemes to BDS Center ......................................................................... 5-12 5.4.1 Support Requirements............................................................................. 5-12 5.4.2 Candidate Technical Assistance.............................................................. 5-14 5.5 Conclusion ........................................................................................................... 5-14 6 INFORMATION ON BUSINESS PLAN FOR JAIP.................................................. 6-1 6.1 JAIP Development and Mission............................................................................. 6-1 6.1.1 Development Strategy ............................................................................... 6-1 6.1.2 Objectives and Goals................................................................................. 6-2 6.2 Marketing Information........................................................................................... 6-2 6.2.1 Economic and Social Overviews of Jericho.............................................. 6-2 6.2.2 Export Market ........................................................................................... 6-3 6.2.3 Labor Force............................................................................................... 6-4 6.2.4 Incentives to Industries.............................................................................. 6-5 6.2.5 Estimated Required Facilities.................................................................... 6-7 6.2.6 Project Lease Rate..................................................................................... 6-9 6.2.7 On-Site Infrastructure.............................................................................. 6-11 6.3 Operation and Management................................................................................. 6-14 6.3.1 Management Organization ...................................................................... 6-14 6.3.2 Water Supply........................................................................................... 6-15 6.3.3 Wastewater Treatment ............................................................................. 6-18 6.3.4 Electricity Supply.................................................................................... 6-19 6.3.5 Telecommunication ................................................................................. 6-22 6.3.6 Traffic Volume Forecasting..................................................................... 6-23 6.3.7 Supporting Service for BDS Center Related with Utility ....................... 6-23 6.3.8 Land......................................................................................................... 6-24 6.4 Financial Evaluation............................................................................................ 6-26 6.4.1 Evaluation Options.................................................................................. 6-26 6.4.2 Projected Financial Results ..................................................................... 6-27 6.4.3 Financial Analysis Summary................................................................... 6-29 6.5 Maps and Drawings ............................................................................................. 6-30 7 RECOMMENDATION.................................................................................................
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