Development of Sustainable Industrial Estates

Development of Sustainable
Industrial Estates
Increase your business opportunities by using GTZ
services

Introduction
The fast and all too often uncontrolled spread of industrial estates in developing and
transition countries has resulted in serious environmental damage. There is a lack of
economic incentives to promote initial moves towards improved conditions as well as a
lack of social standards to ensure that basic rights of employees are respected.
Increasing demand from these countries shows that there exists a need for advisory
services in this area. GTZ can offer all encompassing expert guidance since it has
competence in all areas of sustainability as well as extensive experience in the areas of
technical cooperation and international policy advice.

The concept ‘Eco-Industrial Park’ combines the three elements of sustainability and is
therefore consistent with the decisions taken by the UN Conference for Environment and
Development.

Example: Map Ta Phut Industrial Estate, Thailand

The Eco Forum of the Map Ta Phut Industrial Estate in the Eastern Seaboard of Thailand
developed into an ‘idea exchange’ for eco-industrial projects between individual firms.
Within two years over 450 projects with a total of 60 companies were presented with
projects ranging from material savings over training, transportation to joint energy
projects and safety plans.

Services

GTZ offers services in the areas of:

„ Site management
„ Industrial estate management
„ Internal and external environmental management
„ Process consulting for sustainable industrial estates

GTZ can thus:

„ Combine technical and process -oriented instruments and

„ Adapt them to site specific needs
Experience with the conception, planning and
implementation of industrial policy related, production-
oriented as well as environment and energy-related
projects and programmes

GTZ- Your partner for Eco Industrial Estates

Your advantages

GTZ has many years experience with the conception, planning and implementation of
industrial policy related, production-oriented as well as environment and energy-related
projects and programmes. Thus all individual aspects related to the development and
management of industrial parks and their infrastructure are being offered in an
integrated package.
You can achieve environmental improvements, cost savings and social improvements
through:

„ Effective dissemination of instruments and management methods between

companies located inside the industrial estate („best practices“)
„ Close cooperation of companies with respect to economic, environmental and
social issues
„ Improved communication between actors and stakeholders
„ Synergy effects through
ƒ Joint use of infrastructure
ƒ Joint procurement of production resources and raw materials
ƒ By-product exchange

Do you require further information? Deutsche Gesellschaft für

Please contact: Technische Zusammenarbeit (GTZ) GmbH

Guntram Glasbrenner Postfach 51 80

Phone: +49 (0) 6196 791314 65726 Eschborn
Fax: +49 (0) 6196 79801314
E-Mail: Guntram.Glasbrenner@gtz.de
Internet: http://www.gtz.de
Sustainable Industrial Estates - Impact: Services

Increase competitiveness by
focussing on your core business
GTZ's organized services will create synergies and attract new
companies to your industrial estate

Challenges

To stay competitive, companies need to cut costs, but at the same time they have to
provide quality products, adhere to delivery dates and match international standards.
Although in an industrial estate companies are located close to one another, there is
rarely cooperation between the firms. Many services required by companies demand
special skills, resources and facilities that are often too expensive and complex to handle
for any single company. In fields like technical services, environmental protection,
capacity building and security, where synergies leading to financial savings could easily
be achieved, companies are interacting inadequately.

Impacts and Benefits

Within an industrial estate, a specialized service company that provides tailored

traditional services like transportation, waste disposal and electricity supply and other
specifically designed services for industrial parks can create synergies and boost
operational effectiveness of complex tasks. By outsourcing and creating innovative
services new business opportunities for SMEs will arise. Companies concentrating on
their core business and their overall processes will run smoother. This will generate not
only benefits for individual companies but result in creating a positive image of being an
industrial park which is well managed, equipped with an up-to-date infrastructure and
economically excelling service providers.

Example:
Thailand: Establishment of Eco-Industrial Networks in the Map Ta
Phut Industrial Estate

The Industrial Estate Authority of Thailand and GTZ implemented the

“DEE+ Net Project” (Development of Eco Industrial Estates and
Networks) to introduce eco-industrial principles into the Map Ta Phut
Industrial Park on the Eastern Seaboard of Thailand.
The project objective was to enable industrial estate developers, estate
operators and enterprises in selected industrial estates to apply the
Eco-Industrial Development approach to develop their businesses.
An Eco- Forum was developed and has become an ideas
clearinghouse for eco-industrial projects between individual firms.
Within two years, more than 450 projects involving some 60 companies
have been presented. The range includes material conservation,
training, transportation, joint energy projects and safety plans.
The effective management of an industrial estate
requires a well-organized service structure. Only a
specialized service company can handle complex
service tasks, create synergies and boost operational
effectiveness of complex tasks.

Services

„ Analysis of the industrial sites: „ Networking: Building of interactive

Consultancy on environmental
assessment; analysis of regional and
political conditions.
„ Infrastructure management: Analysis
and evaluation of infrastructure
services such as energy, transport and
sanitation; design and planning of
related facilities and services
„ Site management: Analysis of the
necessary business structures; support
of cluster building; analysis of optimal
site efficiency.
„ Training facilities: Management
training and strategy workshops,
consultancy service for labour
exchange.
knowledge networks.
„ Park safety and crisis management:
Minimizing risks for workers,
community and environment through
hazardous waste management,
chemical management and transport
safety.
„ Quality management: Quality
management system design;
development of integrated quality
management systems.
„ Consultancy for organisational
development: Development of
integrated management and marketing
concepts.

Do you require further information? Deutsche Gesellschaft für

Please contact: Technische Zusammenarbeit (GTZ) GmbH

Guntram Glasbrenner Postfach 51 80

Phone: +49 (0) 6196 791314 65726 Eschborn
Fax: +49 (0) 6196 79801314
E-Mail: Guntram.Glasbrenner@gtz.de
Internet: http://www.gtz.de
Sustainable Industrial Estates - Impact: SME

SMEs as a motor for productivity and

competitiveness
GTZ strategies strengthen SMEs and lead to an increase in
productivity and competitiveness of industrial estates

Challenges

Although a significant part of the economy in developing countries is represented by

SMEs, their activities are generally located in traditional branches with low levels of
productivity and poor quality products. Since SMEs often lack internal access to relevant
business information and know-how, there is little or no technological dynamics and only
few have a chance to sustainable growth.
If industrial estates do not establish supplier relations with local SMEs, the local
economy, as well as the overall performance of the industrial estate will be weakened
and transport costs will increase.
Only if park owners or large industries situated in an industrial estate actively support and
integrate SMEs located inside or close by the park into the supply chain can local SME
potential be used.

Impacts and Benefits

GTZ has extensive expertise in promoting and strengthening SMEs. SMEs with well-
trained employees and access to financial sources are able to increase their productivity
and competitiveness and serve as true job creators as well as important players in the
technology supply chain. SMEs can handle more complex tasks and are able to discover
new opportunities for cooperation as well as for new business strategies. Large
companies located in the industrial estate are able to outsource parts of their economic
activity in favour of the SMEs and thus concentrate on their core competence. This leads
to a better performance and lower costs of the large companies and therefore to an
increase in productivity and competitiveness of the whole industrial park.

Example:
Philippines: Small and Medium-sized Enterprise Development for
Sustainable Employment Program
The private sector is increasingly considered by the Philippine
government as the driving force behind economic and social
development. However, structural and institutional problems are
hampering efficient and dynamic management at both national and
regional level.
The SMEDSEP Program follows an integrated approach for the
development of the private sector in the Philippines with a regional focus
on the Visayas. The program, which is working on the development of
the unfolding entrepreneurial potential and the promotion of competition,
comprises the following four components: SME policy, business
development services for SMEs, access to financial services for SMEs
and demand- driven vocational training programs.
SMEs are the backbone and driving force for an
industrial estate. GTZ services emphasize the key role of
SMEs and help improve their economic strength and
productivity.
Only if SMEs are integrated into the supply chain, large
companies can concentrate on their core competence
and thus increase their productivity.

Services

„ PREMA (Profitable Environmental „ SME Finance Institution Building

Management): Promotion of
environmental management that leads
to reduced production costs, improved
environmental performance and the
promotion of organisational change.
and training advisory services for SME
financing.
„ Coaching and Mentoring of less
experienced managers.

„ CEFE (Competence based Economies „ Industrial training on state-of-the-art

Formation of Enterprise): Improves the
entrepreneurial performance of
economic actors through guided self-
analysis, stimulating entrepreneurial
behaviour, and the development of
business competencies.
„ Business Development Services and
Networks: Enhance the access of
SMEs to information and consultancy
services and stimulate benchmarking
and clustering between SMEs.
technology and managerial know-how
as well as business services and
industrial solutions.
„ Vocational training: GTZ provides
practical training for companies’
employees and thus provides SMEs
with qualified manpower on
environmentally sustainable industrial
production and business economics.

Do you require further information? Deutsche Gesellschaft für

Please contact: Technische Zusammenarbeit (GTZ) GmbH

Guntram Glasbrenner Postfach 51 80

Phone: +49 (0) 6196 791314 65726 Eschborn
Fax: +49 (0) 6196 79801314
E-Mail: Guntram.Glasbrenner@gtz.de
Internet: http://www.gtz.de
Sustainable Industrial Estates- Impact: Policy

Success through compliance with

national and international standards
GTZ helps to create an investor-friendly and attractive environment in
your industrial estate.

Challenges

An industrial park developer or manager needs to stay closely in touch with the changing
field of policy and regulations since it entails both opportunities and constraints to the
industrial estate. On a national level, policy-makers need to be aware of the specific
policy requirements of eco-industrial developments. Special laws and regulations are
necessary to facilitate the exchange of material flow both inside the industrial estate and
with the surrounding area. On an international level, the non-application of international
standards and conventions leads to a decrease in competitiveness. Negative media
coverage due to missing social and ecological minimum standards leads to decreasing
support of the local community as well as to declining orders from international or large
companies that are concerned about their image.

Impacts and Benefits

National policy: The application of national policies for industrial estates leads to a more
investor-friendly environment, which strengthens the estate as a whole. Defined
processes provide quality assurance to the stakeholders of the industrial estate. The
economic weight as well as the benefits generated inside the park will lead to increased
tax revenues for the local communities as well as to additional employment and thus, a
strengthening of the region.
International policy: The application of international standards and conventions leads to
increased competitiveness. A growing number of international groups will only invest in
an industrial estate that is operating according to international rules and standards. The
application of international standards provides quality assurance to companies and
investors, competitiveness will be increased and thus more companies will be attracted
to the industrial estate.

Example:
Tunisia: Successful advisory services for the Ministry of the
Environment

Environmental protection has a high political priority in Tunisia and the

country is regarded – in comparison to other Maghreb countries – as
an advanced example for the implementation of environmental policy.
Nevertheless, the country is still facing major challenges with regard to
the environment. Therefore, GTZ is providing strategic advice on
environmental policy at the national, regional and local levels and is
implementing projects in the area of decentralisation, involvement of
the private sector, prevention of environmental damage and pollution.
Compliance with national and international standards is
a key factor for successful business operations in an
industrial estate.

GTZ offers many years of expertise in advising national

and local authorities on developing policies for
industrial estates.

Services

„ Advisory skills implementing „ Strategic environmental

international standards and assessment: Integration of
international conventions, WTO rules environmental aspects into the
and the global compact planning process

„ Environmental policy assistance: „ Environmental mediation:

Optimisation of environmental Environmental conflict monitoring and
framework legislation assistance in conflict solving

„ Environmental planning: Optimisation „ Environmental information systems:

of environmental administration Development of environmental
processes monitoring systems and concepts

Do you require further information? Deutsche Gesellschaft für

Please contact: Technische Zusammenarbeit (GTZ) GmbH

Mohamed El-Khawad Postfach 51 80

Phone: +49 (0) 6196 791333 65726 Eschborn
Fax: +49 (0) 6196 79801333
E-Mail: Mohamed.El-Khawad@gtz.de
Internet: http://www.gtz.de
Sustainable Industrial Estates - Module: Production

Increasing productivity by using

innovative management methods
Sustainable development can provide faster growth and higher
productivity through innovative management systems

Challenges

In an ever more globalized world entrepreneurs who want to stay competitive are facing
the challenge to adapt production to constantly changing conditions.
Due to fierce competition firms are facing a growing pressure to cut costs and at the
same time boost productivity and environmental performance. The increasing demand in
industrialised countries for sustainably produced products and the need to comply with
international production standards as well as the growing importance of environmental
issues in the national context of developing countries require a rethinking and the
willingness to introduce innovative management structures and production methods.
Since an industrial estate can only operate as successfully as the industries located
within it, it is of great interest for any industrial estate to face these challenges and to
help its companies to restructure their management and production methods.

Impacts and Benefits

By using GTZ services the cost structure of companies can be optimised, more efficient
use of raw materials and energy can be realized and the non-product output can be
reduced. The operational and disposal costs will be minimized and productivity will
increase. Due to innovative management systems the information flow between the
different companies located inside the park will be enhanced and more companies can
be integrated into the supply chain. This leads to an increase in the overall park
productivity and competitiveness and consequently more companies and customers will
be attracted to the industrial estate. Additionally sustainable production methods will lead
to an enhanced image of the industrial estate and help to qualify products for a broader
market.

Examples:
Paraguay: A round table for Clean Industrial Production
The Paraguayan Ministry of Industry and Trade – in cooperation with
GTZ – is pursuing a strategy to introduce companies to the profitable
aspects of environmental protection such as process savings, cost
management and enhanced competitiveness. The project’s objective is
that the Paraguayan industry makes greater use of clean technologies
and resource efficient methods. The emphasis lies on disseminating
best- practice experience with production that uses resources and
energy more efficiently while reducing environmental impacts.
GTZ helps industrial estates to meet international
production standards and thus, to stay competitive on
an international level.
The use of innovative management and production
methods enhances product quality and increases the
efficiency of the production process.

Services

„ Quality management: Integration of „ Eco-efficiency: Development of

safety standards and environmental
improvements into a Quality
Management System
„ Energy efficiency: Establishment of
energy information systems,
development of energy service
structures, provision of measurement
equipment, creation of awareness
„ Hazardous waste management:
Implementation of hazardous waste
minimisation strategies, consulting on
the introduction of state-of-the-art
technologies
„ Waste and waste water
management: Development of waste
concepts; formulation of scenarios
integrated management systems that
consider economic, ecological and
social aspects; development of
benchmarking systems and Best
Available Technologies
„ Transport safety: Implementation of
systems for safe transport, handling
and storage of dangerous goods as
well as for enhanced traffic safety of
employees
„ Chemical management: Chemical
Management for SMEs, training
workshops for representatives of
companies
„ Social management: Implementation
of profitable social management;
introduction of minimum social
standards

Do you require further information? Deutsche Gesellschaft für

Please contact: Technische Zusammenarbeit (GTZ) GmbH

Guntram Glasbrenner Postfach 51 80

Phone: +49 (0) 6196 791314 65726 Eschborn
Fax: +49 (0) 6196 79801314
E-Mail: Guntram.Glasbrenner@gtz.de
Internet: http://www.gtz.de
Sustainable Industrial Estates - Impact: Communities

Regional development policy as a

key factor for success
Local communities as important stakeholders for your industrial estate

Challenges

One of the most important factors to guarantee an industrial estate’s success is its
integration into regional planning. An industrial estate that is isolated from the regional
infrastructure and the local communities or that planned its integration insufficiently will
not be able to integrate local suppliers or attract the local workforce to the industrial
estate. Additionally, if the planning undertaken was insufficient, instead of benefiting from
economic profits and additional employment opportunities, local communities could face
consequences like noise, environmental pollution and the risk of accidents and thus, can
become major opponents to industrial parks. To avoid these problems and to guarantee
a frictionless integration of the industrial estate into the local community, aspects like
land management and resource protection have to be addressed and evaluated from the
beginning.

Impacts and Benefits

The integration of industrial estates into the local infrastructure and the regional planning
policy will stabilize the position of the industrial estate and increase its influence when
negotiating with local politicians, local administration and citizens.
Good relations to the local communities result in a motivated work force and a positive
image of the industrial estate in the region. The systematic management of community
relations by taking on social responsibility, employing the local workforce, establishing
supply chains with companies in the area and providing services (such as waste water
treatment or waste disposal) to local authorities leads to increased identification of the
employees with their place of work and thus to smoother business operations. The
industrial estate improves its image and therefore attracts better-qualified workers.

Example:
Brazil: PRORENDA – Support of sustainable local development
in Pernambuco
In the metropolitan area of Recife almost half of the population is
considered to be poor. In spite of industry’s recent growth rates, the
formal labour market has not been able to offer a substantial number
of jobs to the growing group of people seeking employment.
The GTZ- PRORENDA concept in Brazil combined support to the
informal sector with activities promoting urban and rural development
at the same time.
Urban and regional development planning, participation processes,
community development and decentralization efforts of the state
government and municipal governments were assisted. Moreover,
participatory planning and implementation was introduced to increase
the involvement of the population in local and regional decision-
making.
Good relations to local communities are an important
asset for successful industrial estate management.
Following an integrated approach, GTZ offers many
years experience in regional development, citizen
participation and conflict mediation.

Services

„ GTZ offers expertise in regional „ GTZ has broad experience in the

development planning, local economic
development strategies, land
management, citizen participation,
advice to local governments and
authorities
health sector and offers the analysis of
the requirements for health and social
needs and consultancy on the
introduction and organization of health
insurance systems

„ GTZ provides expertise in moderation, „ GTZ promotes education, which

mediation and conflict management
„ GTZ provides management
consultancy in corporate social
responsibility for enterprises
„ GTZ provides strategies for community
relations taking into consideration local
socio-cultural framework conditions
enables the community to participate
socially and politically and to overcome
social disadvantages
„ GTZ offers widespread technical
experiences in establishing
infrastructure for all kind of services
including education, training, health
centres, services for integrated waste
management and waste water
disposal, efficient energy supply and
use, etc.

„ GTZ provides impact studies on all

effects the industrial estate has on
local communities and advices on
dealing with possible risks.

Do you require further information? Deutsche Gesellschaft für

Please contact: Technische Zusammenarbeit (GTZ) GmbH

Günter Meinert Postfach 51 80

Phone: +49 (0) 6196 791662 65726 Eschborn
Fax: +49 (0) 6196 79801662
E-Mail: Guenter.Meinert@gtz.de
Internet: http://www.gtz.de
Environmental Management Tianjin, China

Chinese companies improve their

productivity through environmental
management
Achieving pollution reduction through improved environmental
policy measures

Scenario

Small and medium-sized enterprises (SMEs) constitute over 90% of all companies
outside the agricultural sector in developing countries. In China, SMEs provide jobs for
two-thirds of the national workforce and account for about 60% of the national industrial
output value and over 50% of GDP. However, despite significant progress made by
Chinese SMEs in past decades, many of them still use outdated technologies; have
ambiguous ownership structures and division of responsibility as well as having a severe
environmental impact.

While the pressure from national and local environmental authorities is mounting, most
Chinese SMEs lack awareness, motivation, long-term vision, information and
management skills necessary to address their environmental impacts. Existing
environmental management systems are too complex and too expensive to be
implemented by many SMEs. Under these conditions, there is a growing demand for
SME-oriented management tools that deliver tangible, quantifiable results and help
SMEs develop their own management capacities.

Project
The national (China State Environmental Protection Agency) and local
environmental authorities (e.g. Tianjin Environmental Protection
Bureau) and small and medium-sized enterprises should be able to
initiate and support sustainable measures for the improvement of eco-
efficiency as a result of this program.
Specific objective of the project is the development of suitable
environmental management tools for SMEs that can help Chinese
enterprises apply eco-efficiency approaches and face current market
challenges. To reach this objective, the project undertakes a number of
training programs based on the GTZ-P3U "Profitable Environmental
Management PREMA®" programme. PREMA training aims to increase
an enterprise’s efficiency in terms of utilization and conservation of
material and resources, strengthening their organizational capacities to
react to and initiate changes, and improving their environmental
performance.

Participants are trained to apply a method of matching costs to

material flows to identify the most important potentials for improvement
in their respective companies. Following an analysis of existing
problems, participants develop detailed action plans and improvement
measures, assisted by qualified trainers and international and national
sector experts.
GTZ supports the development of suitable
environmental management tools for SMEs that can
help Chinese enterprises apply eco-efficiency
approaches and face current market challenges.

Impacts

Since its inception at the beginning of 2003, the project has achieved positive impacts in
three areas: Long-term application of PREMA as an eco-efficiency tool in about fifteen
of twenty-two SMEs trained in total; creation of a local training team capable of
advancing PREMA trainings; and dissemination of PREMA as eco-efficiency concept in
three provinces.

Within a six-month period, participants of PREMA intensive training in Tiajnin

implemented over 30 improvement measures that resulted in average economic
savings of Euro 3 000 per measure and significant environmental benefits, particularly
in the areas of energy consumption and resource utilization. Although exact figures vary
significantly with size of the participating companies and availability of funds for
implementation, measures initiated have clearly demonstrated the link between
improved environmental performance and increased profits and motivated most of the
participating SMEs to integrate PREMA methods in daily operations.

The project was successful not only in encouraging participants to take on responsibility
for PREMA in their companies themselves, but also in creating a network among SMEs.
Network meetings have been highly appreciated by participants as effective instruments
to facilitate communication among the companies, encourage information, and mobilize
and access resources needed for further PREMA implementation.

Do you require further information? Deutsche Gesellschaft für

Please contact: Technische Zusammenarbeit (GTZ) GmbH

Guntram Glasbrenner Postfach 51 80

Phone: +49 (0) 6196 791314 65726 Eschborn
Fax: +49 (0) 6196 79801314
E-Mail: Guntram.Glasbrenner@gtz.de
Internet: http://www.gtz.de
Andrha Pradesh Eco-Industrial Estate, India

Andrha Pradesh Eco-Industrial

Estate
Development of a pilot eco-industrial estate in Andrha Pradesh,
India

Scenario

India is the world’s sixth largest and second fastest growing producer of greenhouse
gases.
In some regions pollution and depletion of natural resources have reached such
dimensions that they represent an immense risk to human health.
Nevertheless, it is necessary to attract more investment to India and the promotion of
special economic zones is a step taken to improve the living conditions of the Indian
population.

In the state of Andrha Pradesh a special economic zone (SEZ) will be developed. To
avoid overloading the carrying capacity of the region and to ensure that the pollution
caused by a conglomerate of industries is not going to lead to any further harm as well as
to stimulate international investment, the Indian Central Pollution Board in cooperation
with GTZ supports the Andrha Pradesh Industry Infrastructure Development Corporation
to develop a model eco-industrial estate.

Project

The project aims to develop a pilot Eco-Industrial Park. The devised

strategy will be applied to the site right from the inception stage to ensure
proper planning and development of the estate. In addition, one of the
existing industrial estates in Nacharam or Mallapur that are known for
causing pollution problems will be encouraged to apply eco-industrial
principles.

The project’s objective is to improve the planning process of the design

of the eco-industrial estate. Possible industries and technologies as well
as site suitability will be evaluated and problems associated with the
manufacturing process addressed.
An environmental management plan, which includes policies for waste
minimization, air pollution control, hazardous waste collection, the
development of a green belt etc. will be established to lead to
improvements in the overall management.

GTZ supports the Andrha Pradesh Industrial Infrastructure cooperation in

the implementation process with information about state-of-the-art
technology and training of staff. Clean technologies, waste minimization
and pollution control measures will be demonstrated and strategies to
monitor the progress and impacts of implementation will be established.
GTZ offers integrated strategies for the development of
Eco-Industrial Estates.
In India a special economic zone will be developed. The
Eco-Industrial Park concept helps to control pollution
and to stimulate international investment.

Impacts

The development of the Special Economic Zone as an Eco-Industrial Estate will lead to
a platform for more effective policy and regulations in the area of industrial and
environmental management. This will be established in dialogue between state and
local governments and provided for by the cooperation partners (GTZ; Central Pollution
Control Board; Andrha Pradesh Pollution Control Board and Andrha Pradesh Industrial
Infrastructure Corp.) Hence, sustainable development in Andhra Pradesh and the
spread of the concept of Eco-Industrial Parks in the region will be fostered.

Do you require further information? Deutsche Gesellschaft für

Please contact: Technische Zusammenarbeit (GTZ) GmbH

Dr. Jürgen Bischoff Postfach 51 80

Phone: +91-11-26528840 65726 Eschborn
E-Mail: Juergen.Bischoff@gtz.de
Internet: http://www.gtz.de
Jababeka Industrial Estate, Indonesia

Jababeka Industrial Estate

An Indonesian-German Environmental Cooperation Program (Time
Period 2003 – 2007)

Scenario

As is the case in many other Asian countries, Indonesia has readily implemented the
industrial estate concept in order to accommodate the specific needs of foreign investors.
Establishing industrial estates is perceived as a promising local economic development
strategy to attract international investment by facilitating the often lengthy process of
obtaining permits and licenses and by providing infrastructure access such as road
systems, water, waste disposal, electricity, telecommunication lines, etc. However,
expected benefits could not be realized as envisaged.

Jababeka Industrial Estate is a modern agglomeration of 987 companies located near the
capital, which has large multinational corporations from all different sectors as their main
clients (about 65% are foreign investors). In comparison with other Indonesian Industrial
Estates, Jababeka is quite active in the field of environmental management. A few
indicators of Jababeka’s involvement in the environmental sector are their
environmentally friendly concept, the ISO 9001-2000 certification of the estate
management, and an environmental monitoring system.

Project

In February 2003, Jababeka Industrial Estate (JAB) voiced its interest

to incorporate the concept of Eco-Industrial Development within their
industrial estate and appealed to the Indonesian Ministry of Environment
(MoE) for support and cooperation. A Memorandum of Understanding
formalized this private initiative to develop and implement Eco-Industrial
Development (EID) concepts. Thus, the Ministry of Environment and
Jababeka Industrial Estate, with GTZ/ProLH acting as a facilitator,
agreed to cooperate in the implementation of the first Eco-Industrial
Estate in Indonesia.

In a first screening several problems and hazards have been detected by

the Jababeka working group and GTZ, which are in need of
improvement:
„ Need for better telecommunication and roads to regulate the
traffic congestion into and out of the estate
„ Improvement of the insufficient transportation service
„ Organization of a structure to actively involve the community
„ Organization and control of an appropriate hazardous waste
management system (collection, disposal, transport, recycling)
„ Improved cooperation with the informal waste sector in order to
prevent illegal dumping
„ Improvement of environmental data required by government
The ministry of Environment, Jababeka Industrial Estate
and GTZ cooperate in the implementation of the first
Eco-Industrial Estate in Indonesia.

Impacts

The Eco-Industrial development in Jababeka Industrial Estate is an ongoing process

and will continue at least until 2007, which marks the end of Phase II of the project. Until
June 2003 a “Good Housekeeping Workshop” (GTZ tool) and a Chemical Workshop
have been conducted with 14 companies. Seven companies are identified as EID
champions and have been asked to document their environmental and social activities,
so that they can share their success stories with other factories, and, thus, motivate and
promote interest in EID. In an effort to enable the identification of development issues,
synergies and hot spots/risks, a situational analysis of Jababeka is currently in
preparation.
Presently the Jababeka facilitation team is developing criteria and a database for Eco-
Industrial Development. The database will be linked to the EID-Centre and an
Information Centre (“Eco-Centre”) will promote positive EID experiences at Jababeka.

Do you require further information? Deutsche Gesellschaft für

Please contact: Technische Zusammenarbeit (GTZ) GmbH

Helmut Krist Postfach 51 80

Phone: +62 21 8517186 65726 Eschborn
E-Mail: Helmut.Krist@gtz.de
Internet: http://www.gtz.de
Mactan Economic Zone, Philippines

Mactan Economic Zone

Developing a Management Approach for Eco-Industrial
Development in Filipino Economic Zones

Scenario

In the Philippines economic zones have been established to attract foreign direct
investment in order to create local jobs for the growing population. After the Asian
financial crisis foreign investors have returned to the Philippines, but at a much slower
pace. The Philippine Economic Zone Authority (PEZA), the government agency
responsible for the development of public and private economic zones, has realized that
it also needs to promote economic zones to local businesses, especially small and
medium- sized enterprises and develop respective strategies. In order to ensure future
economic growth and social benefits without compromising environmental conditions,
PEZA has decided to restructure its management approach by adopting eco-industrial
development principles to create a favourable framework for sustainable development of
Philippine economic zones. In managing and regulating economic zones, PEZA is faced
with a number of critical issues, especially inadequate waste management and a lack of
coordination with national and local government agencies.

Project

In cooperation with GTZ PEZA has taken the initiative to introduce eco-
industrial development into the management of the four publicly
operated economic zones and promote it to private developers.
In cooperation with PEZA, GTZ provides:
„ Institutional capacity development at PEZA headquarters and for
the field staff,
„ Improvement of inter-agency cooperation in industrial and
environmental development issues,
„ Promotion of cooperation between enterprises through eco-
industrial networks within the economic zones and at the regional
level, with government agencies, financial institutions and research
institutions,
„ Services for technical solutions, improved environmental
management tools and regulations,
„ Information management, promotion strategies and industrial policy
oriented towards eco-industrial development.
Based on experiences with activities at the pilot site of Mactan Island,
the project will develop an eco-industrial development strategy for
PEZA that should be disseminated to all economic zones in the
Philippines for adaptation.
Philippine Economic Zone Authority in cooperation with
GTZ develops an eco- industrial strategy that should be
disseminated to all economic zones in the Philippines
for adaptation.

Impacts

Since the beginning of project activities in January 2003, PEZA has established a high-
level dialogue with the Department of Environment and Natural Resources at the
national and regional levels to reorganize implementation procedures. Key issue is the
simplification and time reduction of licensing procedures for companies, thus reducing
their overhead cost.
PEZA is conducting an industrial zone survey to gain a detailed picture of issues and
needs. The findings will be discussed with companies and stakeholders and are
intended as a baseline for a participatory planning process that will identify solutions.
At the pilot site in Mactan, an Eco-Forum has been established as a regular event to
improve communication between the zone’s management and company
representatives. In longer intervals, stakeholder roundtables are organized to discuss
current zone management issues with local government units, industry representatives
and the community. Through the communication with stakeholders and companies, five
key issues of concern have been identified for Mactan. Waste management, safe waste
recycling and disposal are critical issues due to a lack of facilities and qualified
management. Infrastructure and zone management are also of concern. A number of
companies feel the need for guidance to be able to comply with international standards
and market requirements.

Do you require further information? Deutsche Gesellschaft für

Please contact: Technische Zusammenarbeit (GTZ) GmbH

Guntram Glasbrenner Postfach 51 80

Phone: +49 (0) 6196 791314 65726 Eschborn
Fax: +49 (0) 6196 79801314
E-Mail: Guntram.Glasbrenner@gtz.de
Internet: http://www.gtz.de
Map Ta Phut Industrial Estate, Thailand

Map Ta Phut Industrial Estate

Establishment of Eco-Industrial Networks in the Map Ta Phut
Industrial Estate

Scenario
During the last four decades Thailand was able to achieve extraordinary growth rates.
While increasing overall wealth, the uncontrolled growth also led to dramatic increases in
environmental pollution like contaminated soils, a decline in drinking water quality or
increasing concentration of mercury in coastal areas.
Although Thai companies are starting to realize that compliance with international
standards is of high importance, the introduction of sustainable production methods is
still considered primarily a cost factor that they are reluctant to bear.

To stimulate controlled industrialisation outside Bangkok, the Industrial Estate Authority

of Thailand (IEAT) was founded some 30 years ago. It is responsible for the control and
supervision of 29 industrial estates, where more than 400,000 employees are working in
approximately 2,000 factories. Eight estates operate under the responsibility and
management of IEAT, whereas the remaining estates operate as joint ventures with
private investors and developers.

Industrial estates with their high number of industries in a designated area can produce a
concentration of pollution, waste and by-products, which are increasingly the subject of
concern. Rising complaints by people affected forced governmental agencies including
IEAT to act urgently and encourage industries to become more sustainable and
environmentally friendly in their production lines.

Project

The Industrial Estate Authority of Thailand and GTZ implemented the

“DEE+ Net Project” (Development of Eco-Industrial Estates and
Networks) to introduce eco-industrial principles into Thai industrial and
environmental policies and regulations to upgrade industrial production.
The project objective was to enable industrial estate developers, estate
operators and enterprises in selected industrial estates to apply the
Eco-Industrial Development approach to develop their businesses.

In order to stimulate eco-industrial development, GTZ assisted IEAT in

introducing a sustainable eco-industrial service structure for the
operation of its industrial estates. Activities focused on four areas:

1. Developing an Eco-Industrial Park concept

2. Establishment of Eco-Industrial Networks
3. Institutional capacity development for Eco-Industrial Estates
Management
4. Promoting political support for Eco-Industrial Development

One of the pilot parks introducing eco-efficiency was the industrial

estate Map Ta Phut. The majority of companies in this industrial estate
are petrochemical manufacturers with various production facilities
ranging from refineries to plastic, fertilizer and other chemical
industries.
GTZ and the Industrial Estate Authority of Thailand
successfully developed an Eco-Industrial Park concept
and established an Eco-Industrial Network in Map Ta
Phut Industrial Estate.

Impacts

GTZ advised IEAT in developing an adequate service structure for the introduction of
eco-efficient production processes and the improvement of the overall environmental
and economic performance to boost the attractiveness of the industrial estate.
In Map Ta Phut, about 60 companies participated in the project. IEAT improved the
collaboration of these firms in different areas like the use and re-use of raw materials,
by-products and energy, common transport services, joint marketing and human
resources management and one-stop community relations. Environmentally sound
technologies were introduced and pollution as well as safety risks for factory employees
and the public, especially in the vicinity of Map Ta Phut, were minimized. The
development of a so-called Eco Forum increased the exchange of ideas between firms
and led to the spread of eco-efficient technologies and management practices
throughout the estate.

Do you require further information? Deutsche Gesellschaft für

Please contact: Technische Zusammenarbeit (GTZ) GmbH

Dieter Brulez Postfach 51 80

Phone: +49 (0) 6196 791309 65726 Eschborn
Fax: +49 (0) 6196 80791309
E-Mail: Dieter.Brulez@gtz.de
Internet: http://www.gtz.de