Role of Integrated Economic Zones (IEZs) in Haiti’s Reconstruction and

Development:Training in Site Selection

Port-au-Prince, HaitiDecember 2011

Presentation Outline/Topics

• Introduction/Purpose of the Site Assessment

• Planning and Development Sequence

• Elements of a Typical Site Assessment

• Site-Selection Matrix

• Environmental and Social Impact Assessments

• Haiti IEZ Site-Assessment Stage 3 Results: Potential Sites in the Metropolitan Region

• Site Evaluation Example: Ganthier

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Site-Assessment Overview• Based on the Market/Demand Assessment: Haiti needs

over 2,000 hectares of serviced land and infrastructure for industrial, tourism, and residential purposes over the coming 20 years

• IEZ provide serviced land and infrastructure and an enhanced business environment that can yield new investment and job creation for Haiti

• Site-Assessment Objectives: Determines which sites are best situated in Haiti to

service demand in the near-term Provides planning inputs and costing information for site

development that are used in the Financial/Economic analysis

• Market Assessment

Gauges the market for IEZ Developers, investors and end users. Includes location benchmarking, industry analysis, and demand projections. End user market assessment will generate estimates of likely demand for space and utility requirements in the IEZ. It is the basis for phasing, capital estimates and revenues from site tenants and services.

IntroductionIEZ-Level Planning and Development Sequence

Market

Assessment

Market

Assessment

Site Development

Impact Assessment

Site Development

Impact Assessment

Master PlanningMaster Planning

The Master Plan (identifying land uses, key infrastructure, and phasing) provides a development vision for the site to meet demand and also provides a basis to estimate capital expenditures for IEZ development and operations.

Evaluates the physical, social, and environmental characteristics and attributes of the selected IEZ location. On and off-site Infrastructure is also assessed. If more than one site is evaluated, then the sites are ranked using a Site-Selection Matrix.

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Site-Assessment Process in Haiti

• Objective: to evaluate the suitability of various sites for the development of one or more IEZs in Haiti

• Consultation with Ministry of Commerce, Direction des Zones Franches, SONAPI, Ministry of Tourism, Ministry of Agriculture, and private developers yielded 75 possible sites

• After prioritization by stakeholders, the long list had 20 sites

• An initial screening highlighted a number of high-performing sites

• A detailed site analysis identified the pros and cons of each site and the conditions necessary to implement an IEZ project on it

• Two of the high-performing sites were selected for economic and financial analysis

Long List

High-Perfor

m. Sites

1. Consultation with GOH

2. Initial Screening

3. Site Analysis

Top Sites

Wish List

SITE SELECTION

Physical Site Assessment• In line with the Market/Demand findings, the selected site for the IEZ

should be the one that most closely matches the specific needs of the target industry base, including land, size of site, security in a conflict-affected region, access to transport networks (e.g., sea, rail, road, or air), availability of infrastructure and utilities, and access to labor.

• If more than one site is to be assessed (which is always preferable), each site can be evaluated separately using the same criteria. Once assessed, all the sites can be compared and contrasted and ranked in a matrix to determine which location is the best fit for the project’s requirements.

• The final selection will be based on several factors, but ultimately the selected site should have the highest likelihood of success. Factors are the size and quality of the site, accessibility, cost to expropriate and cost to build out, preference of the prospective tenants, proximity to key assets (e.g., labor pool, natural resources, transportation nodes).

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High-Level Elements of a Typical Site Assessment• Location - Examines land ownership, land uses, the site’s access to the

regional and local transportation routes (air, sea, road, and rail), location of on and off-site infrastructure and utility lines and connections, labor pools and population centers, and the site’s expansion potential in line with forecasted demand.

• Physical and Biological Environment - Includes the site and its surrounding basic geography and physical characteristics: climate, topography and landscape, soil, geology and seismology, air quality, noise, pollution, contaminated soils, water resources, the marine environment, flora, fauna, wildlife, protected areas, existing historic, cultural or religious facilities and habitats.

• Socio-Economic Environment - Includes local population and demographics, education, livelihoods, healthcare, leisure opportunities, crime and safety, tourism, gender, and resettlement. Location of the site relative to intensity of fighting, remaining populations, and the history of the conflict in the host country.

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Typical Evaluation Criteria

• Site area• Suitable site topography• General environmental condition of site• Consistent with land use and zoning codes• Clear land tenure• Proximity to functioning port, airport and road network• Access to power, water, telecoms, labor• Access to labor• Facilitates the development of multiple economic

activities: industry, tourism, agribusiness, etc.

Site-Selection Matrix

• After the physical, environment, and social factors (preceding slides) of selected sites have been evaluated, the next step is to produce a Site-Selection Matrix to compare the performance of the sites against the various criteria.

• In the illustrative Site-Selection Matrix example, each criterion on the matrix has a different weighting based on the relative importance of that criterion to the targeted industries.

• These weightings add a demand-driven dimension to the matrix because they reflect preferences and priorities of the target industries. Strong preference and high priority receive higher weightings than low preference and/or low priority.

• Weightings are set at 25%, 50%, 75% and 100%, and the factors are scored between 0 and 5, with zero being low and five being high.

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Criteria Weighting

Illustrative Site

Location Description RatingLand availability 100% Good 4Expansion capabilities 100% Good 4Proximity to export markets

75% Excellent 5

Access and proximity to airport

75% Good 4

Access and proximity to ports

75% Excellent 5

Topography for DevelopmentLittle erosion/sand movement

75% No major issues

4

Absence of surface or sub-surface drainage issues

75% Unknown - pending detailed site survey in the future

No contaminated materials

75% Unknown - pending detailed site survey in the future

Low

0

1234

5

High

Site Development Impact AssessmentIllustrative Site-Selection Matrix Example

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Criteria Weighting

Illustrative Site

Access Description RatingAccess to fire facilities 50% Fair 2Access to land borders 75% Excellent 5AdjacenciesProximity to other industrial facilities

75% Excellent - see Figures

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Proximity to social infrastructure

25% Fair 2

UtilitiesAccess to water 100% Fair 2Access to electricity 75% Good 4Access to sewerage 25% Fair 2LaborProximity to local labor 100% Good 4

Proximity to mass transit 50% None 0

Site Development Impact Assessment

Low

0

1234

5

High

Illustrative Site-Selection Matrix Example

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Criteria Weighting

Illustrative Site

Master Planning Issues

Description Rating

Far from existing residential communities

75% No, but settlement is small

2

Far from proposed residential communities

75% Yes 4

Far from protected areas 75% No, wetlands nearby

2

General Environmental ConditionsAppropriate climate for targeted activities

50% Not an obstacle

5

Air Quality 25% Good 4Noise 25% None 5Soil issues 50% No obstacles 4

Unweighted Totals 78Weighted Total 52.75

Site Development Impact Assessment

Low

0

1234

5

High

Illustrative Site-Selection Matrix Example

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Environmental-Impact AssessmentEnvironmental management starts with IEZ site selection. Environmental site-selection and design factors include:

• Avoid environmentally-sensitive areas, such as wetlands and fertile agricultural land

• Industrial activity may limit other potential land use, as well as natural processes

• Develop on gently sloping land with suitable soil and limited vegetation growth• Building in areas prone to flooding, slippage and earthquakes will require

additional strengthening and expense • Re-use previously developed sites to help contain urban sprawl and avoid

consuming agricultural land and maximize use of existing infrastructure• Check for contamination of the site from toxic waste, underground storage

tanks, asbestos, and other forms of on-site ground, air and water pollution• Define the industrial carrying capacity of the site and conduct a baseline

environmental survey • Maintain natural areas and indigenous vegetation; retain natural drainage

systems• Increase the density of development and environmental synergies through

industrial clustering

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Site Development Impact AssessmentEnvironmental Impact Assessment – World Bank StandardsThe recommended methodology for the Environmental Impact Assessment (EIA) is based on the World Bank Standards. The EIA should:

• Evaluate the impact on each component (high, medium, low)• Address intensity, extent, and lifespan of each impact• Recommend mitigating measures to reduce the impacts

The World Bank Standards address components such as:

Physical Environment

Biological Environment

Human Environment

• Atmosphere – Climate, air quality, noise• Soil and Water – Surface water, groundwater, soils and geology

• Vegetation• Flora and fauna• Protected areas

•Health and safety• Socioeconomic and resettlement•Historic and cultural

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The main objectives of a Social Impact Assessment (SIA) process for the IEZ are to:

• Engage all relevant stakeholders in consultations• Produce a detailed description and analysis of the social pre-project

baseline situation as a basis for development planning, mitigation, and future monitoring

• Provide an assessment based on collected baseline data to identify both positive and negative social impacts in the IEZ’s area of influence

• Optimize positive social impacts and mitigate negative impacts from the IEZ’s development and activities

• Develop a Benefit and Impact PlanIt is important to place the SIA in the context of the EIA

Site Development Impact AssessmentSocial-Impact Assessment

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Site Development Impact AssessmentSocial-Impact Assessment

• Population• Infrastructure• Roads/Transportation• Education• Communication• Electricity• Healthcare

The SIA should consist of analyzing, monitoring and managing the intended and unintended social consequences, both positive and negative, of the IEZ’s development, and any social processes caused by it. The SIA should include looking at impacts on the following components:

• Sanitation• Economic activity• Fishing• Livestock grazing• Agriculture• Land ownership

The SIA should consider the sensitivity of each of these components to the IEZ development, as well as ways to either mitigate or enhance the impact.

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Haiti IEZ Site-Assessment Stage 3 Results: Potential Sites in the Metropolitan Region

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Example Site: Ganthier Location: East of PAP

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Pros:• Reasonably close to PAP labor and

port. City is expanding towards the site.

• Abundant, available, publicly owned land

• May have high-quality water appropriate for textile production

Cons:• No existing trunk infrastructure

except the road• No specific plans are prepared• Untested interest from private

sector

Project development requirements:• Delineate a specific parcel of land• Do feasibility study and master plan• Identify private sector partners

Example Site: Ganthier Location: East of PAP

QUESTIONS/DISCUSSION

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