Regulatory Impact Analysis of the Establishment of Planned Industrial Parks in the Suburbs of SAIDA

Coupled with a weak infrastructure and low levels of investment, inadequate reforms have contributed to undermine the industrial sector and its ability to expand domestically and develop an export capability, constraining growth. The industrial sector accounts for approximately 16% of Lebanon's GDP, but it generates industrial effluents, solid waste, and potentially toxic air emissions. The industrial agglomerations in the south of Lebanon are responsible for most of the liquid, solid, and gaseous emissions discharged into the environment without any form of treatment. The lack of appropriate industrial parks and government enforcement has hindered the growth of locally grown businesses in the south of Lebanon. These businesses have difficulty finding a suitable place to build their facilities and are forced to move to another region or to build their facilities with unenforceable pollution control regulations. The Chamber of Commerce Industry and Agriculture of Saida and South (CCIAS) has worked to identify appropriate land, change its regulation to allow for hosting industrial activities, identify investors to buy the land, and build the appropriate infrastructure to better serve the industrialists and relieve some of the burden on the environment. The CCIAS has integrated the Regulatory Impact Assessment concept (RIA) into the intended process to identify the potential impacts of the new land regulation. The CCIAS has collaborated with the WTO Project to analyze the impact of changing the classification of the selected land and drafting the first iteration of the RIA report. The report was prepared on behalf of CCIAS with the assistance of the WTO Project RIA Consultants and the Working Group. The selected industries for the industrial park include those identified as class II, III, IV, and V. The methodology used for the selection consisted of initial consultation with the Working Group, review of applicable regulations, potential site assessments, and recommendation of required zoning amendments. The selected site has been chosen to facilitate the development of the identified industrial activities. The Working Group proposed two potential sites, each scored according to area size, topography, general environmental condition, access to utilities, access to labor, current economic activity, and current zoning regulations. The Ministry of Industry (MoI) in Lebanon initiated a survey in 2009-2010 covering all establishments employing no less than five workers. The survey aimed to map the industries, define the profile of industrial establishments, and evaluate their activities and financial performances. The survey results showed that Lebanon's industrial sector includes 4,033 establishments, with at least five employees. The mapping of the industries showed that the industrial units are not evenly distributed over the six Mohafazats. The survey results also showed that the industrial sector in Lebanon is characterized by a high concentration of small and medium-sized enterprises (SMEs). The majority of the establishments are located in the Mount Lebanon and Beirut Mohafazats. The survey results also showed that the industrial sector in Lebanon is dominated by the food products and beverages sector, which accounts for 24.9% of the total industrial output. Other significant sectors include the pulp, paper, and paper products sector, the printed matter and recorded media sector, and the rubber and plastic products sector. The selected site for the industrial park has been chosen to facilitate the development of the identified industrial activities. The site has been scored according to area size, topography, general environmental condition, access to utilities, access to labor, current economic activity, and current zoning regulations. The site has been identified as a suitable location for the industrial park due to its proximity to the existing industrial agglomerations in the south of Lebanon and its access to the main transportation routes.