Project on the Revitalization of the Erez Industrial Estate (EIE) Neslihan Kaptanoğlu 13 September, 2005 Bahrain

Erez Initiative Slide 2 Disengagement Process from the Gaza Strip need to empower Palestinians unilateral dis- engagement decision increased importance of the region initiative of the Quartet importance of Erez for positive expectations

Erez Initiative Slide 3 Ankara Forum Established in April 2005 as an ongoing dialogue mechanism among business support organizations from Israel-Turkey and Palestine Partners: TOBB, Federation of Palestinian Chambers and Israeli Manufacturer’s Association Second meeting was held in East Jerusalem on June 7-8, 2005 Two working groups were formed on:  Tourism Opportunities  The Revitalization of the Erez Industrial Estate (EIE) Goal:  Promoting business to business contributions to the peace process  Starting with small steps and finding local solutions to problems

Erez Initiative Slide 4 Why are we in it? International recognition of TOBB Our experience with industrial zones in Turkey Turkey’s increasing visibility in the region Possible economic benefits

Erez Initiative Slide 5 Revitalization of the EIE (1) Visits to the region on June and July 26-29, 2005 Following people are among those who were contacted:  Shimon Perez (Deputy Prime Minister of Israel)  Mazen T. Sinokrot (Minister of National Economy-Palestinian Authority)  Mr. Wolfensohn’s Core Group  World Bank  Stef Wertheimer- Tefen Technopark  Israeli Manufacturer’s Association  Federation of Palestinian Chambers  Palestinian Industrial Estates and Free Zones Authority (PIEFZA)  Military administration of Erez Estate

Erez Initiative Slide 6 Support of the Quartet and Mr. Wolfensohn was formulated during his visit to Ankara in July 2005 Pre-Feasibility Report on the EIE  A Questionnaire was prepared by TOBB and answered by PIEFZA and the Israeli authorities  The estate was visited by the TOBB delegation including an infrastructure specialist  Preparations are made to draft an agreement for mutual understanding Project on the Revitalization of the EIE (2)

Erez Initiative Slide 7 Project on the Revitalization of the EIE ( 3) Capacity building programs for the Palestinian chamber-system and organized industrial estate-related personnel in Turkey September, Training on issues such as:  Chamber management and income resources of the chambers  Turkish Chamber Quality System and Chamber Accreditation System  TOBB-Eurochambres Joint Projects  Promotion of International Trade Services  Arbitration and Chambers Places Visited: Istanbul Chamber of Commerce; Istanbul Chamber of Industry; Gebze Organized Industrial Zone; Gebze Chamber of Commerce; Kocaeli Chamber of Industry; Bursa Organized Industrial Zone; selected plant facilities in Kocaeli and Bursa This capacity building program is also in affiliation with TOBB ’ s Project on Promoting Business Development in the MENA region, which was presented at the OECD MENA Investment Program meeting in Paris on April 2005

Erez Initiative Slide 8 Things to be Done in the Short Term Further contacts with Wolfensohn’s Group to coordinate between our initiative and their Action Plan Contacts with the G8 and the World Bank to attract foreign investment to the Estate  Free Trade Agreements  Incentives and investment promotions Details related to management of the EIE  Establishing a developer company (reflecting the tripartite structure of the Ankara Forum)  A Memorandum of Understanding (MOU) with Israel regarding the services to be provided in the Estate  Infrastructure Projects