Special Economic Zones in the OIC Region:
Learning from Experience
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6.4.2 Investment in Infrastructure
Infrastructure provision is one of the key influences in the success of SEZ development,
particularly within developing or fragile states. The provision of high quality infrastructure will
be a key comparative advantage when looking to attract FDI. The delivery of high quality utilities
infrastructure in particular is a key challenge but is a key investment determinant, particularly
with regards to reliability and cost. Experience of SEZ development demonstrates a clear
relationship between the economic performance of SEZs and the quality of hard and soft
infrastructure.
There is also the potential for governments and zone authorities to work with development
partners to facilitate investment in infrastructure such as through the provision of low cost
capital loans. PPP arrangements have also been successfully utilised, such as in the case of
Tanger Med Zones to fund infrastructure development.
Examples from Case Studies
Morocco – Tanger Med Zones
The Tanger Med Port Authority (TMPA) is currently undertaking construction of the Tanger Med
II Container Facility as part of a PPP agreement with Marsa Maroc and APM Terminals and has
also secured funding from development bodies to meet the capital costs of investment.
Singapore – Jurong Island
The JTC are currently developing the Jurong Rock Caverns project on Jurong Island. Once
complete this will be the first commercial underground rock caverns facility for liquid
hydrocarbon storage within Southeast Asia. This innovate approach to infrastructure
development will reduce the use of land for low value storage purposes whilst increasing the
capacity of the Island to attract further investment from the petro-chemicals industry and
providing further value add to its competitive advantages within the region.