COMPANY PROFILE. Khyber Pakhtunkhwa Economic Zones Development & Management Company

Transcription

1 Khyber Pakhtunkhwa Economic Zones Development & Management Company 120 Industrial Estate, Jamrud Road, Hayatabad, Peshawar Khyber Pakhtunkhwa , kpezdmc.org.pk kpezdmc kpezdmc COMPANY PROFILE

2 CONTENTS Pervez Khattak (Chief Minister) Khyber Pakhtunkhwa Faheem Wazir (Acting Chairman BOD) Saeed Ahmad Khan (CEO) Khyber Pakhtunkhwa About The Company China Pakistan Economic Corridor (CPEC) Rashakai Special Economic Zone Hattar Special Economic Zone Jalozai Economic Zone D.I Khan Economic Zone Export Processing Zone One Window Operation Technology Upgradation Energy Incentives Women Business Park Revitalization of Southern KP Industrial Revival KPEZDMC Pictorial Key Achievements

3 Government of Khyber Pakhtunkhwa e n t e r p r i s e. b e a u t y. h o s p i t a l i t y from the Message P ONEERS

4 KPEZDMC shares the ambitious dream of the KP Government's visionary leaders and takes pride in being a significant participant in brightening the future of the Khyber Pakhtunkhwa. Fahim Wazir Acting Chairman BOD Our focus is not merely on infrastructure developments, but in creating high-growth industrialization environment that creates new jobs and supports economic activity. KPEZDMC is in a process of developing state of the art Special Economic Zones with all amenities including water, power, road infrastructure and security. In a short span of time KPEZDMC has established itself as a propellant of industrialization in KP, thanks to its continuing commitment to professionalism and quality standards. We believe that our success comes from our relentless pursuit of excellence, focus on innovation, integrity, transparency and delivering outstanding projects. PERVEZ PERVEZ KHATTAK Chief Minister Khyber Pakhtunkhwa Our plans to establish modern Economic Zones in the province is a testament to our futuristic vision of a prosperous and developed Khyber Pakhtunkhwa. These Economic Zones will play a pivotal role in attracting investment, creating jobs and restoring confidence of the international community and local businesses to trust us with their future, and as a result, it will help us bring the change that we have promised. SAEED AHMAD KHAN CEO At KPEZDMC, we believe that an ethical and professional approach is the core value of our organization. Professionalism and ethical values are evident in every interaction with our employees, customers, investors, suppliers and other stakeholders. We have a team of highly talented and professional individuals who are diligently working together, to make a positive difference in KP and continue to ensure that every project is the envy of the Country. Whether it is the construction of a Special Economic Zone or a power generation project we deliver best projects possible. KPEZDMC believes in building long lasting business relationships with investors and industrialists. Our relationships are built on trust and integrity, providing the best services and delivering nothing but excellence. I am proud of the dedicated and ambitious team of professionals at KPEZDMC and would like to thank the business community for putting their trust in us and would ensure them, that we at KPEZDMC, shall continue to 'outperform targets' and deliver state of the art Economic Zones

5 KHYBER PAKHTUNKHWA With a population of 30.5 million, Khyber Pakhtunkhwa is the 3rd largest province of the country. It is spread over an estimated area of 74,521 sq.km. KP benefits from a favorable geo-strategic location by having access to Afghanistan & Central Asia through the Torkham Border while it has access to China via Khunjerab Pass. It is imperative to understand that this geo-strategic position of the province will enable it to serve as a hub of logistics and connectivity across Asia and Europe through Russia. Khyber Pakhtunkhwa is exceptionally rich in terms of natural resources. The province historically contributes 10.5% of Pakistan's GDP amounting to over USD 30 billion. Tapping into these assets will result in bringing new investment opportunities for unexplored reserves of oil & gas, mines of marble, emeralds and other gem stones. The major source of livelihood of most of the inhabitants of the province is agriculture, comprising mainly of sugarcane, wheat, maize and tobacco. The elegant people of Khyber-Pakhtunkhwa Province have kept their sterling qualities of reliability, loyalty, love of beauty, sturdiness, and hard work over the centuries. The people of Khyber Pakhtunkhwa have the pride of long-held custody and stewardship of many beautiful gifts of nature and tradition. Khyber Pakhtunkhwa has cultivated and proudly maintained their strong traditions of hospitality, commerce and enterprise in spite of the vagaries of time. In Khyber-Pakhtunkhwa, guests are welcomed as forever partners and friends, and are offered a place close to the heart. People of Khyber-Pakhtunkhwa demonstrate a life-long commitment to friends

6 ABOUT THE COMPANY The Government of Khyber Pakhtunkhwa has put all its efforts to revitalize the economy of the Province by focusing on the industrial sector. The Government has realized that most of the economic constraints can be attributed to the slow pace of industrial development in the Province. For this reason, the Government has established KPEZDMC, not for profit organization within the meaning of section 42 of the Companies Ordinance, 1984 which is exclusively owned by the Government of Khyber Pakhtunkhwa. The objective of the Company is to bring rapid industrialization and create employment opportunities for the people of this region. It was established on the public private partnership modalities to capitalize on the experience and skill set of the professionals in the private sector. KPEZDMC will facilitate industrial growth by developing modern Economic Zones leading to mass job creation, skill enhancement and increased productivity, that will ultimately contribute to poverty reduction & economic stability of Khyber Pakhtunkhwa. The Company is engaged in activities necessary for the economic development of the region and will create a positive impact on the industrialization in KP. Apart from the development of new Economic Zones and management of existing Industrial Estates, KPEZDMC is also working towards reviving sick industrial units throughout KP by providing industrialists marketing, management, financial and technical consultancies. KEY SUCCESS FACTORS Transparent Customer Friendly Process One Window Operations Secure & Eco-Friendly Environment Availability of all Amenities World Class Infrastructure Strategic Clustering 08 09

7 CPEC, a strategic initiative between China and Pakistan is of paramount importance, as the projects under CPEC have tremendous potential of uplifting the economy of the Province. CPEC will change the fate & fortune of millions of people in Pakistan. It will boost economic growth and international partnership through regional cooperation and connectivity. The share of Khyber Pakhtunkhwa in the Western Route of CPEC will be around 20 percent. Khyber Pakhtunkhwa also enjoys a favorable position by having a long, porous border with Afghanistan which connects it to Central Asian markets. CHINA PAK ECONOMIC CORRIDOR Investment Opportunities in Khyber Pakhtunkhwa (CPEC) The Government of Khyber Pakhtunkhwa has prepared a framework to enhance the productivity of CPEC. It has established a CPEC Oversight Committee, chaired by Chief Minister-KP himself to oversee issues pertaining to CPEC. A significant impact of the Economic Zones will be utilization of the strategic position of KP because of it s linkage to CPEC routes and access to abundant natural resources. In the next 15 years, KPEZDMC anticipates that these Economic Zones will become a central hub of CPEC due to their excellent infrastructure, incentives and amenities. The zone enterprises will have a competitive edge of being able to export to international markets more efficiently. The Government of Khyber Pakhtunkhwa has introduced investment friendly policies including the Industrial Policy 2016, that is offering attractive incentives to both local and foreign investors with the objective of encouraging industrial development in the Province

8 RASHAKAI SPECIAL ECONOMIC ZONE A flagship project of KPEZDMC, Rashakai Economic Zone is spread over an area of approx 1,000 acres of land. This project is conceptualized by KPEZDMC, giving its incumbents an additional benefit of being an exceptionally preplanned Economic Zone of international standards. Rashakai Economic Zone is located on M1 Motorway at Mardan Interchange and links to CPEC through Burhan Interchange on M1 and is on the main road to Afghan border. Due to its central position in Province, the Company foresees it to be the imminent trade hub of Khyber Pakhtunkhwa. This Economic Zone will also host an IT park of 100 acres in collaboration with KP Board of IT. The main strength of this Economic Zone is it s strategic location by being connected to districts and a resource pool, which has a predominant investment favorability for industries in fruit & food packaging, textile and auto manufacturing. A further expansion of 1, 000 acres approx is under consideration. Engagement Agreements have been signed with China Road and Bridge Corporation (CRBC) to develop 1,000 acres and convert it into SEZ. CRBC will also build a 225 MW - Combined Cycle Gas Turbine (CCGT) Power Plant at Rashakai Economic Zone. HATTAR SPECIAL ECONOMIC ZONE Hattar Special Economic Zone (HSEZ) 424 acre is the first Economic Zone launched by KPEZDMC. It is strategically located at 33 km from Islamabad and 6 km (approx) from a link to China Pakistan Economic Corridor (CPEC). Hattar Special Economic Zone has been a major success for the Company, this can be assessed by the fact that the number of applications have far exceeded the number of available plots. KPEZDMC is in the process of acquiring an additional 1000 acres of land at Hattar, adjacent to the HSEZ. Hattar Special Economic Zone is expected to attract Rs.31 billion direct investment from all over Pakistan, KSA and UAE, creating over 100,000 employment opportunities in different sectors. Many multinational companies and local giants are also in the advance stages of their lease agreement process at Hattar Special Economic Zone. Engagement Agreements have been signed with China Road and Bridge Corporation (CRBC) to develop Hattar Special Economic Zone (1000 acres) and with China Energy Engineering Corporation (CEEC) for establishment of 225 MW-CCGT Power Plant at Hattar & convert it into SEZ

9 JALOZAI ECONOMIC ZONE This Economic Zone is spread over an area of 256 acres. JEZ will be a strategic location for small and medium enterprises largely from KP who would like to have their industries in the close vicinity of Peshawar. This Economic Zone connects to G.T Road through a link road of 15 km approx from Pabbi, and has proximity to Afghan borders. The industrialists of JEZ will have readily available trained human resource due to its locality in the center of a settled area, which also has a long established industrial tradition. This Economic Zone will also facilitate industrialists through one window operation and can have access to plenty of natural resources and agricultural products. D. I. KHAN ECONOMIC ZONE This Economic Zone covers an area of 3,200 acres in district D.I Khan (Daraband I & II) & is strategically located on the border of KP and Punjab. The city is connected to Bannu via Indus highway, which further connects it to the provincial capital Peshawar via Kohat and Darra Adam Khel. Another road connects it to Bhakkar in Punjab, situated on the eastern banks of the Indus River. This geo-strategically located Economic Zone has the potential to uplift the economy of the Southern Region of KP because of it s rich supply of natural resources, human capital and benefits of wellestablished industrial setups. Engagement Agreements have been signed with China Machinery Engineering Corporation (CMEC) to develop Daraband-I (D. I. Khan), convert it into SEZ and establishment of 225 MW Combined Cycle Gas Turbine (CCGT) power plant

10 EXPORT PROCESSING ZONE EPZ Risalpur is spread over an area of 92 acres. It is a joint venture between KPEZDMC and Export Processing Zones Authority. It is located in Nowshera KP. Export Processing Zones Authority is a Pakistan Government venture conceived and designed to increase and improve the exports of the country. Its main objectives are accelerating the pace of industrialization in the country and enhancing the volume of exports by creating and enabling an environment for investors to initiate ambitious export-oriented projects in the Zones which would, as a corollary, create job opportunities, bring in new technology and attract foreign investment.. EXISTING INDUSTRIAL ESTATES Hattar Industrial Estate 1443 acres (District Haripur, KP) D. I. Khan Industrial Estate 189 acres (District D.I. Khan, KP) Hayatabad Industrial Estate 866 acres (District Peshawar, KP) Nowshera Industrial Estate 86 acres (District Nowshera, KP) Gadoon Industrial Estate 1116 acres (District Swabi, KP) ONE WINDOW OPERATION The incumbents of all Economic Zones of KPEZDMC will have one window facility, which will make the Company a one stop shop for all the amenities including incentives, Government liaison & trained human resource. The Company will provide complete solution/assistance to industrialists to accomplish their goals. Centralized Commercial Area FACILITIES PROVIDED IN EACH ECONOMIC ZONE One Window Operation Sewerage & Effluent Treatment Telecom & IT Infrastructure Solid Waste Management Efficient Road Network Vocational Training Centers Controlled Access Power Supply Water Supply SUPPORT SERVICES Security Fire Fighting Emergency Medicare 16 17

11 TECHNOLOGY UPGRADATION Economic Zones will also have strong impact on the technology upgradation and automation in the province. KPEZDMC in collaboration with the Government of KP is encouraging new technology by bearing 25% of the electricity bill maximum up to 3 years from the start of commercial production for all the new units, which are unique in nature. This will not only entice investors from outside KP but also overseas investors. E c o n o m i c Z o n e w i l l h o s t Companies that are expected to automate their function. Furthermore, KPEZDMC is also providing upgraded technology via waste treatment plants in the Economic Zones. This will also help in monitoring pollution in the area and encourage industrialists to be more socially responsible. JOB CELL KPEZDMC has a vision that creating employment opportunities through technical & vocational trainings of the local residents is of paramount importance for sustainable socio-economic growth. In this regard, KPEZDMC aims to train more than 50,000 unskilled youth on demand driven trades from industry. The Company has also established strong linkage with industrialists, National Vocational Technical Training Commission (NAVTTC) and Provincial Technical Education and Vocational Training Authority (TEVTA) to help generate jobs for the local youth in the industries. Job Cell Initiative corresponds directly with the demand of the industry and the curriculum is designed in accordance with the industrial needs. This initiative will eradicate the growing problem of unemployment and will provide support and assistance to the unemployed and marginalized youth of the province particularly those with limited skills and resources. KPEZDMC has successfully completed its first pilot project of technical & vocational training in collaboration with UNDP in Hattar Industrial Estate. Furthermore, recently KPEZDMC has been awarded three major projects of vocational training in industries by NAVTTC in the Industrial Estates of Peshawar and Nowshera. All the financial resources of the training program will be borne by NAVTTC. At the end of the training program, the trained workforce will be employed in the same industries as committed by the industrialists. ENERGY To facilitate the process of rapid industrialization in Khyber Pakhtunkhwa, KPEZDMC will ensure uninterrupted supply of electricity to all the Industrial Estates and Economic Zones. The Federal Government has allocated the Provincial Government of Khyber Pakhtunkhwa, a quota of 100 mmcfd (million cubic feet per day) of gas for power generation through a mutually signed Memorandum of Understanding. In order to extract maximum benefit from the opportunities presented by the China Pakistan Economic Corridor (CPEC), the Provincial Government of Khyber Pakhtunkhwa is extending its full support to include these CCGT power projects under the umbrella of CPEC. The first power project to be established will be at Hattar Special Economic Zone and this will be the first thermal power project of this scale in the province of Khyber Pakhtunkhwa. Various options are currently under consideration to develop a technically and financially feasible electricity generation mix for all the Industrial Estates and Special Economic Zones of KP. The Government of Khyber Pakhtunkhwa signed an MoU with the Government of Canada for generation of up to 1000 MW power starting with 50 MW solar power generation for Hattar Special Economic Zone. KPEZDMC has also signed Engagement Agreements to establish 225 MW Combined Cycle Gas Turbine (CCGT) power projects with Chinese Companies CEEC, CMEC & CRBC for Hattar Special Economic Zone, D.I Khan Economic Zone & Rashakai Economic Zone respectively. These projects will ensure uninterrupted power supply to the Special Economic Zones

12 Government of KP Incentives INCENTIVES To further facilitate investors in Khyber Pakhtunkhwa, the Government of KP for the first time drafted an Industrial Policy to ensure the sustainable development of industries across the province. The Industrial Policy 2016* is based on creating employment opportunities by encouraging and facilitating industrialists to set up new or to expand their existing industrial units. For this purpose an incentive unit has been established at KPEZDMC to assist in disbursement of incentives. KPEZDMC will also attain SEZ status for all its Economic Zones eventually making KP a preferred destination for investors. These SEZ s will play a pivotal role in the socio-economic development of the Province. Rs 5% Discount on Markup Finance Government of KP shall bear 5% markup on Financing for 5 years for new/expansion projects. 25% Discount on the Cost of Property Government of KP shall finance 25% of the cost of property (Plots) acquired for setting up industrial units up to December 2017, viz early bird investment to expedite the industrialization process. 25% Discount on Electricity Government of KP shall bear 25% of the electricity bill for 3 years (special/unique units). 25% Discount on Transportation 25% discount on in land transportation cost of imported plant and machinery. 25% equity for Women Entrepreneurs Government of KP shall finance 25% of the equity investments for Women Entrepreneurs subject to maximum of PKR 3.0 Million per investor. Special Economic Zones Incentives WOMEN BUSINESS PARK KPEZDMC has taken an unprecedented step towards women empowerment by introducing the concept of Women Business Park in three Economic Zones. Women Business Parks would be established in Risalpur, Nowshera and Jalozai. Under this provision, twenty five (25) kanals of land will be reserved specially for women entrepreneurs. This step aims at encouraging women to take part in business and achieve excellence in their field. In addition to the facilitation provided under One Window Operation the women industrialists will also benefit from the incentive given. A 25% of equity shall be granted by the Government of Khyber Pakhtunkhwa subject to PKR 3.0 million per investor. This equity shall be granted upon commencement of commercial production. Women Productivity Women Literacy Rate Political Empowerment Women Bargaining Power Innovative Approaches and Partnerships Labor Force Participation & Mobility Women Earnings Access to Livelyhood Resources Women Share in Paid Employment Equality in Wages Economic Security Women Skills & Techniques Leadership Opportunities for Women Exemption from custom duties One time exemption from custom duties and taxes on plant and machinery imported into SEZ. Tax Holiday Exemption from all taxes on income for ten years

13 REVITALIZATION OF SOUTHERN KP Even though the Southern Districts of Khyber Pakhtunkhwa are home to abundant natural resources, the potential of this area is yet to be actualized. The Government fully realizes that the Southern Districts of KP have long suffered due to the law and order situation. Khyber Pakhtunkhwa Economic Zones Development & Management Company has developed a blue print for revitalizing Southern KP to bring prosperity in the region. It is important to note that employing modern tools for industrialization and commercialization will play a vital role in the development of an economically viable industry. Agriculture alone is insufficient for the development of agro-based industry. There is a dire need to place proper emphasis on processed products for intermediate and final consumption. Therefore, commercialization of agriculture by encouraging value addition and offering new lucrative agro-based business opportunities, would further stimulate the process of improvement in the local economy. To this end KPEZDMC has developed the following projects in the action plan of industrialization of the Southern districts of KP. 22 D.I Khan Economic Zones Bannu Economic Zone Kohat Economic Zone Oil Refinery Trucking Ports Sugar Mills INDUSTRIAL REVIVAL For the rehabilitation of closed and sick industrial units across Khyber Pakhtunkhwa, KPEZDMC is actively working to facilitate the owners of the sick industries by giving them the desired consultancy in order to continue with the industrial operations. With a futuristic approach, the Sick Units Revival team is focused on providing consultancy services in the field of management, marketing, technical and finance. It is an assisting desk between sick unit owners and the institutions/investors providing these services. KPEZDMC has formed a Sick Industrial Revival Desk for determining the preventive, remedial and other measures required to facilitate sick industrial units and for expeditious enforcement of the measures determined. The desk examines issues and suggests their possible solutions. Total number of closed units in June - 16: 517 Units closed in SDA/KPEZDMC and SIDB= 364 Units revived from June-16 in different Industrial Estates: 77 These units were revived by providing NOC s & change of name, change of nature, gass connections and other soft facilities. Units having issues with Government agencies and industrial estate management were first selected by KPEZDMC team so that they could be revived with minimum intervention. With the help of Ministry of Industries KP, KPEZDMC has taken up these issues with the concerned agencies. 23

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15 KEY ACHIEVEMENTS 424 acres of Hattar Special Economic Zone completely booked. 10 Industries in construction phase. Applications for 2,600 acres received for Hattar extension (1000 acres). Establishment of Board of Management for Industrial Estates for prompt resolution of disputes and prompt service delivery. Revision in the fee structures for Industrial Estates to promote industrialization in the province. Rehabilitation of Industrial Estates Infrastructure of Gadoon, Hattar & Peshawar. MoU s worth USD 3 billion signed in road show to China for foreign investments in industrial sectors of KP. Digitalization of records of Industrial Estates. Engagement Agreements to establish 225 MW Combined Cycle Gas Turbine (CCGT) power projects with Chinese Companies CEEC, CMEC & CRBC for Hattar Special Economic Zone, D.I Khan Economic Zone & Rashakai Special Economic Zone respectively. These projects will ensure uninterrupted power supply to the Economic Zones. Engagement agreements signed with China Road and Bridge Corporation (CRBC) to develop Hattar Economic Zone (1000 acres) & Rashakai Economic Zone (1000 acres) and convert it into SEZ. Engagement agreement signed with China Machinery Engineering Corporation (CMEC) to develop Daraband-I (D.I Khan Economic Zone) 1,500 acres and convert it into SEZ. Engagement agreements signed with China Railway First Group (CRFG) for establishment of Special Economic Zone in Manshera and Rail Cargo System for SEZ s in Central KP. 26