Industrial city in the South on the way

Ministry ready to support such initiatives

The Chamber of Commerce, Industry and Agriculture in Sidon and South Lebanon (CCIAS) has disclosed a plan to establish an industrial city in the South. The CCIAS is currently undertaking negotiations to buy a one million square meter land in the Zahrani area.

The industrial city will cost some $45 million, including the price of land, valued at around $25 million. The CCIAS will be responsible for securing funding sources through loans from international organizations, including the European Union and USAID. Funding will also be sourced from local and Arab investors willing to buy shares in the city. Mohamad Saleh, President of the CCIAS, said: “We have gone a long way in negotiations with Chinese and Polish investors to establish partnerships for projects within the city.”

The industrial city will have adequate infrastructure and will be equipped with waste treatment systems, as well as a round-the-clock supply of electricity and water. “Businesses in South Lebanon are facing difficulties in finding suitable places to build their facilities, the industrial city will bring local investors back to the region and will create new jobs,” said Saleh. “We will work with the government to secure a set of incentives, including tax exemptions, for industrialists who will have their businesses located in the city,” he said.

Industrialists will be able to rent or purchase a space within the city at affordable prices. “The leasing fees should be attractive for the tenants and fair for the proprietors at the same time,” he said. The city will host industries of the second, third, and fourth categories, such as food industries, paper and print material production, electrical machinery, and wood products and furniture.

Establishing the industrial zone requires a license from the Ministry of Industry (MoI). Minister of Industry Vrej Sabounjian said establishing an industrial city does not require a law. “Investors should just submit an application to the MoI and we are ready to give them all the support they need,” Sabounjian said. Many conditions are required for incorporating an industrial city, mainly pertaining to its location. For instance, the city should be far from residential areas and natural reserves. “The Ministry will assist the initiators in completing the formalities, in collaboration with the concerned municipalities and the urban planning administrations,” Sabounjian said.

The industrial city project will have a positive impact at the local and national levels. Saleh said: “Spreading out industrial districts to rural areas will help attain a more balanced distribution of employment and production.” These projects also help reduce environmental hazards, and maximize the efficiency of land use.