One of the activities that the Government of Ethiopia is undertaking to boost industrial development is the establishment of Industrial Zones that are suitable for establishing medium and large-scale industries. The Government is currently finalizing its preparations to build three modern Industrial Parks strategically located in Diredawa (in the east), Kombolcha (in the northeast) and Awassa (in the south) towns. The Industrial Zones are expected to be equipped with common services and amenities, high-quality infrastructure, pre-built standard factory buildings, which would be made available to local and foreign companies through a single, efficient, streamlined industrial park administration. The Government intends to draw lessons from other countries that have successfully implemented industrial zones as part of their industrial development strategy. South Korea is often cited as a good example of those countries that have developed their industrial base by establishing industrial zones. By the early 1960s, the government of South Korea started establishing industrial Zones as part of its strategy to shift towards export promotion strategy. Several policy measures were put in place to realize this new direction. By the 1990s and 2000s, South Korea has become one of the fastest growing economies in the world with only less than 2 percent of its population living on less than $1 a day. The industrial sector was solely responsible for creating high demand for labor, and thus rapid expansion of employment, increasing income and reducing poverty. The Industrial sector also enabled productivity to rise, and increased innovative ability and adaptation of technology, all of which have contributed to continued fast growth registered by South Korea. South Korea is therefore an ideal country for Ethiopia to learn from, among others. Accordingly, this study aims to examine the South Korean experience in the operationalization of industrial zones as one of the strategies to promote industrial development and distill some lessons and best practices that could be adapted to the Ethiopian context so as to enable the country to reap the benefits of rapid industrialization. |
Duties and Responsibilities |
Objective: The major objective of this assignment is to review and assess the experiences of South Korea with regard to the design, establishment, and operationalization of its Industrial Zones and draw lessons to inform the implementation of the Industrial Zones strategy in Ethiopia. The specific objectives will be to: - Review and analyse the institutional, legal, and administrative arrangements as well as the policy framework for the operationalization of industrial zones in South Korea and indeed other relevant country experience.
- Based on (a), identify best practices, success factors, and challenges for the development and effective implementation of the industrial zones approach to accelerating industrial development in Ethiopia.
- Provide concrete policy recommendations for the efficient and effective operationalization of industrial zones in Ethiopia.
Major Responsibilities of the Consultancy: - Review the evolution of Industrial Zones in South Korea, other relevant countries, and in Ethiopia and how these have been implemented.
- Identify best experiences and success factors of the South Korean Industrial Zone model.
- Assess the key challenges encountered during the establishment and operationalization of the industrial zones and draw lessons regarding how these challenges were addressed.
- Assess the overall enabling environment that was put in place (e.g., institutional, organizational, administrative arrangements and overall policy measures) to operationalize the industrial zones.
- Review the models of Industrial Zone administration that were used over time, as well as the efficiency and responsiveness of the industrial zone authorities, and draw lessons for Ethiopia.
- Assess institutional arrangements—look at how were they organized and managed—and look at the services provided by the industrial zones authority to companies located within the zones, at each stages of the phases of industrial development and, based on this, draw lessons for Ethiopia.
- Review South Korea’s experience regarding industrial zones and specifically the criteria they used for selecting enterprises to access the industrial zones facilities and incentives and use the insights gained to propose the criteria that Ethiopia should use in selecting enterprises into the industrial zone.
- Assess South Korea’s contractual relations between the developer of the zone and the enterprises including the terms and conditions of the tenure and likewise propose the best contractual relations framework that Ethiopia should use, taking its national context into account.
- Assess benefit and incentive structures put in place to promote investors to utilize the industrial zones; Identify the types of support provided to investors by the industrial zone authorities.
- Assess the contribution of factors affecting the utilization of facilities in the industrial zones; such as the types of industries that were housed in the zones, location factors, availability of infrastructure services and how these factors have affected the success of the approach.
- Assess how South Korea has learnt from its experience and review the mechanisms that were put in place to put lessons to practice (i.e., the cycle of learning—look at the mechanisms ‘learning by doing’ and assessing how the lessons were fed back so that corrective measures were taken).
- Put forward appropriate recommendations (policy, institutional and operational) for the efficient and effective operationalization of the industrial zones in Ethiopia.
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Competencies |
- Expertise in the designing, developing and operationalization of Industrial Zones in a developing country context.
- Minimum of 10 years of professional experience in the areas of industrial development and generally private sector development.
- Proven record and expertise in developing country context and specifically on Ethiopia.
- Demonstrated experience in economic, policy and institutional analysis as it relates to industrial zones and private sector development.
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Required Skills and Experience |
| Education: - Masters Degree or PhD in Economics or development studies, or in any other relevant social science discipline
Application: Required Documentation - Proposal: (not more than 1000 words) - Explaining why they are the most suitable for the work. (ii) Provide a brief methodology on how they will approach and conduct the work (if applicable)
- Financial proposal: indicating your lumpsum fee. Lump sum fee should be proposed in separate sheet and submit through http://www.procurement.et@undp.org
- Personal CV including past experience in similar projects and at least 3 references
Evaluation: Individual consultants will be evaluated based on the following methodologies: - Cumulative analysis - The award of the contract shall be made to the individual consultant whose offer has been evaluated and determined as: a) responsive/compliant/acceptable, and b) Having received the highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.
- Technical Criteria weight; 70%
- Financial Criteria weight; 30%
- Only candidates obtaining a minimum of 49 point and above would be considered for the Financial Evaluation
| Criteria | Weight | Max. Point | | Technical (based on Relevant documents and Proposal) | | | | Minimum educational background and work experience (CV) | 20% | 20 | | Understanding of scope of work and methodology (From Proposal) OR interview | 50% | 50 | | | | | | Financial | 30% | 30 | |
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| UNDP is committed to achieving workforce diversity in terms of gender, nationality and culture. Individuals from minority groups, indigenous groups and persons with disabilities are equally encouraged to apply. All applications will be treated with the strictest confidence. |
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