JOLOOD CITY An Industrial Clusters for Leather Sector The Sudanese Chamber of Leather Industry

1. JOLOOD CITY An Industrial Clusters for Leather Sector The Sudanese Chamber of Leather Industry February 2013

2. Leather in Sudan Disclaimer This presentation document contains information which is proprietary to Ethraa; and is (and is intended to remain) confidential, being provided for the exclusive use of the intended addressee and may be legally privileged.  If you have reason to believe  you are not the intended addressee(s); disclosing, copying, disseminating or otherwise taking any action in connection with this document or the information in; it is prohibited and may be unlawful. If you have reason to believe you have accessed this document in error, please notify Ethraa, comply with the foregoing warning and delete this document from your system. This document shall not constitute binding legal obligation with the company..

3. Status of Leather Production In the year 2007, the total estimated number of raw material production was 16 millions pieces (2 millions cattle hides, 8 millions sheepskins and 6 millions goatskins and). About 10.8 millions skins and 0.5 million hides are processed locally in the mechanised tanneries. The rest, (which is 1.5 millions hides and 3.2 millions of sheep and goat skins) are exported as raw, go to the artisan tanneries or are lost due to defects and damages. Nowadays the real production of the mechanised tanneries does not exceed 26% of hides and 35% of skins from the original designed capacities. In 2007, 6.6 millions skins and 0.2 million hides were exported in semi-processed form. These values represent 61% of skins and 40% of hides of the local production of working tanneries.

4. Status of Leather Industry 1. The absence of the specialised industrial estate, which increases the production costs in many aspects. 2. The close down of many tanneries due to absence of drain systems. 3. Insufficient raw material for the tanneries, due to the export of the raw material. 4. High deficiency in the finished leather for the footwear industry. 5. Inadequate training and knowledge of skilled labour involved in the industry from the flayer in abattoirs to the shoemaker in the shoe factories. 6. The lack of recognised standards of healthy requirements for leather products and the imported leather footwear. 7. Low customs duties of the imported footwear compare to the customs duties of the imported production components for the local footwear factories.

5. Leather Production Preparatory Tanning Crusting Finishing Preservation, Soaking, Liming, Unhairing, Fleshing, Splitting, Reliming, Deliming, Bating, Degreasing, Frizing, Bleaching, Pickling, and Depickling Vegetable Tanning, Mineral Tanning, Chrome Tanning, Tawing Wetting back, Sammying, Splitting, Shaving, Rechroming, Neutralization, Retanning, Dyeing, Fatliquoring, Filling, stuffing, stripping, whitening, fixating, setting, drying, conditioning, milling, staking, and Buffing Oiling, Brushing, Padding, Impregnation, Buffing, Spraying, Roller Coating, Curtain Coating, Polishing, Plating, embossing, ironing, Ironing/Combing (for hair-on), Glazing, and Tumbling

6. Leather Crafting Footwear Coats & Dresses Accessories Dying Painting Carving Stamping Furniture Bookbinding Sport Gears

7. Academic Wishfulness Most Studies had addressed both Economic and Operational factors, with little to emphasis on Urban, Social and Demographic Impacts

8. Industry Challenges Regulatory Organization, Eligibility and Affiliation Cluster Management and Development Investment Feasibility, Marketing and Sales Incentives, Vacancies and Opportunities Technology Urban & Environmental Alignments Equipments, Logistics and Supplies Resources Sustainable Capacity Building Infrastructure and Civic Facilities In the $ 70 billion business , Africa has more than 25% of the world animals, yet with inadequate implementations and technology, it only contributes by 10% of the global industry. Sudan is a mirror of African Leather Business

9. Stakeholders An Exclusive Industrial & Urban Community Civic Regulatory Agencies Environmental Management Agency Jolood City Meat Business Interest Group Seed & Strategic Investors Entrepreneurs & SMEs National Planning Agencies Industrial Development Agencies

10. UNIDO Framework The United Nations Industrial Development Organization (UNIDO) helps developing countries and countries with economies in transition in their fight against marginalization in today's globalized world. It mobilizes knowledge, skills, information and technology to promote productive employment, a competitive economy and a sound environment. - Service Modules: Instructions- Industrial Governance and Statistics- Investment and Technology Promotion- Industrial Competitiveness and Trade- Private Sector Development- Agro-Industries- Sustainable Energy and Climate Change- Montreal Protocol- Environmental Management Government MDGs Public Sector Partnership Environment & Energy S. I. Groups Private Sector Capacity Building Advanced Inclusive and Sustainable Industrial Development SME Business Local Businesses Increasing Stakeholder Value and Sustainable Business Growth

11. Location Challenges SUPPLIES MARKETS LABORS TRANSPORT UTILITIES CIVICS BUSINESS ECOLOGY HABITATS

12. Technology Challenges Urban & Environmental Alignment Conceptual Structuring of Sustainability and Efficiency Waste Water Treatment & Purification Systems Air Pollution Control & Protection Systems Solid Waste Management and Treatments Equipment, Logistics & Supplies Cost of Modernization and Refurbishment Training of Professional Staff and Labors Capacity Building Challenges in the Underdeveloped Business Subscriptions and Affiliations

13. Location Challenges Avoid the Dense Capital Proposed Site Jolood City Alternate Sites Establish New Urban Center Linked to Major High Ways Preferably Linked to Rail Ways Linked to National Grids Linked to Water Resources Management of Solid & Wet Waist Easy Urban Expansions & Extensions

14. Asset Based Development The Holistic Real Estate Approach Conventional Debt Management (Debt-Based Investment) The Development Baselines’ Integration, Optimization & Validation Neo Investment Modeling (Asset-Based Investment) Revised Sales Modeling; Based on GFA & Commercialization Legal Limits & Constraints Concession Enablers & Design Developing Alternative Concessions & Revenue Streams Risk-Exposure Management PPP Modeling Banking Credits & Facilities Re-value the Development On Asset-Base Valuations FDI’s & Shareholding

15. Excellence Road Mapping The Capital The Assets Enabling Environment The Product Legal Framework Consortium Company Initial Consent Technical Guidelines Delivery Protocols Commercial Concessions Cost of Assets Location’s Composition Branding & Marketability Delivery of Infra-Products Township Management FDIs’ Credits & Incentives Connectivity & Transit Macro Planning Targets Area/GFA Breakdown Statuary Permits Pre-Operating Budget Engineering Framework Public Amenities Project Plan & Program Administration One Stop Shop These 25 Focal-Zones will generate the Standard Bankable Documents

16. Town Management Expand Industrial Expand Utilities Residential Expand Expand Commercial

17. Real Estate Products

18. Model Plot Details Identifications The role of Urban Regulatory is the Unspoken Factor for Making or Breaking Development Endeavors Plot ID: XXXXXXXXX Zone: XXXXXXXXXXXXX Plot Area: xxxxx.xxx m2 Coverage Area: xxxx.xxx m2 Allowed GFA: xxxx.xxx m2 Allowed FAR: xxx.xxx GIS Coordinates: A-xx.xx.xxxxx B-xx.xx.xxxxx C-xx.xx.xxxxx D-xx.xx.xxxxx Set Backs: Front: xx.xxxx m Rare: xx.xxxx m Side-1: xx.xxxx m Side-2: xx.xxxx m Gate Level: +xx.xxx m Street No. xxx GIS xx.xx.xxxxxx GIS xx.xx.xxxxxx Border xxx.xxx m Plot No. xxx xx.xxx m xx.xxx m Area xxxx.xxx m2 Border xxx.xxx m Plot No. xxx Plot No. xxx Border xxx.xxx m Coverage Parameter xx.xxx m Border xxx.xxx m GIS xx.xx.xxxxxx GIS xx.xx.xxxxxx Plot No. xxx Facilities and Supplies Power Supply: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Sewage Disposal: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Potable Water Supply: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Drainage Disposal: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Gas Supply: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Solid Waste Disposal: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx ICT Supply: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Hazardous Waste Disposal: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Non-potable water Supply: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx CO2 Omission: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Broad Band Supply: Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Gas Omissions: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

19. Conceptual Road Profiles Roads Network is the Mirror of Competent Infrastructure, whereas their Concept, Design, and Construction Reflect the State of Urbanism

20. Urban Planning Guidelines Principles Aspiration Excellence of urban development complement to national ambition Vision Sudanese economy contributes to raising stars of Africa Purpose Magnet for int’l business and local industrial development Jolood City A New version of delivering the comprehensive and integrated developments Context Regional Crowning the planning concepts of industrial parks Local Utilize and capitalize on the local resources for socioeconomic success Site Configuration Interpret the constraints into feasible and successful business opportunities Urban Framework Plan and design adequate and practical details for the urban breakthrough Zoning Land Use Jolood will have predefined land use for each plot to shorten processing time Commerciality The more pros & cons are predefined, the assure its commercialization Transit Regional and local public transit will be integrated Population People are the critical soft resources for any success, therefore they are considered. Mobility Vehicular Long vehicles are considered in all maneuvering schemes Road Profiles Minimized profiles with single direction to avoid jams Parking Parking will be used for loading and unloading to maximize plot use Pedestrian Side walkways are designed for all categories with sufficient accessories and furniture Open Space Sustainability Elements to assure the growth and conservation of healthy greenish area Buffers Plants are ideally used to protect plots and enhance environment Recreational The creative Urbanism has lots of added value for people preparedness Water Bodies The magic of water bodies will enable spiritual balance and cheerful atmosphere Amenities Community The direct requirements for the public convenience & comfort Emergency Preparedness against the unplanned risks, hazards or violations Facilities Critical and physical aggregates for activities to be performed Security Framework, Personnel and tools to provide physical control Engineering Specifications, delivery protocols and quantities of physical inputs and outputs of intended buildings Structural Integrity Engineering Codes Water Supply Power Supply Sewage Treatment Drainage ICT Management Waste Management Disposals Architectural Streets Vision and Standards for the outdoor environment Exteriors Strategy and codes for visual comfort and convenience of buildings Plantation Sustainability of landscape and plantation of public& private spaces Urban Furniture Adding life to the public and open spaces, considering the physical needs of inhabitants

21. SCR Programs EMPLOYMENT Priorities and Opportunities to Local Human Resources Partnership Framework CSR Framework URBANISM Developing a Local Integrated Community Center Private Sector Gov Ownership Operating Company Local Authority EDUCATION Support Local Schools Support Local Teachers Partnership Form CSR Initiatives INFRASTRUCTURE Contributions to Local Grids and Networking Asset Based Value Development Targets HEALTHCARE Developing a Comprehensive Local Healthcare Center Special Purpose Vehicle Local Development Plans PPP Product/Service CSR Programs VOCATIONAL Vocational High School Vocational Training Programs HOUSING Contributions to Local Housing Improvement Program YOUTH Sponsoring Sport, Camping and Campaigning Activities

22. IDM Framework Post Concession Stage 5 Property & Commercial Concessions Management Assets Management End-Users 4 Infrastructure Technical & Procurement Management Assets Development Landlords & Plot Investors Pre Concession Stage 3 Stakeholders & Regulatory Management Product Validation Concession Company 2 Shareholders & Investors Management Project Initiation Fitness for Validation 1 Investment & Development Management Plan Project Realization SPV’s Initial Consent

23. Legal Framework Concession Design Mgmt World Bank Procurement & Concessions Guidelines Special Purpose Vehicles (SPVs) Award Mgmt Investment Development & Management (IDM) PPP Initiative Jolood Industries Jolood Holding The Concession Company Business Partnership Business Development Enabling Environment Award Jolood Properties Built Plots Concessions Regulatory Negotiate Land Concessions Targets Product Jolood Development Land Bank Consortium of Jolood Capital Partners City Hall Jolood Capital Investments Sector Operators & Investors Minority Investors (Syndicates, SIGs, Unions,..) Development Agency (Government Partner) X1, X2, X3, .. (Strategic Seed Investors) SME Platform Jolood Resources Training & Research CSR Programs

24. Time Line H2/Year -2 H1/Year -1 H2/Year -1 H1/Year 1 H2/Year 1 H1/Year 2 Operations Planning Proposal Ph1 Project Realization Ph2 Project Initiation Ph2 Project Validation Post Concession Activities & Implementations Legal, Financial & Technical Implementations Sign Off MOU Sign Off IDMA Sign Off Ph1 Sign Off Ph2 Sign off The Concession Company Engagement of Investment & Development Manager Procurement of Orientation Experts Procurement of Master Planning Consultants Procurement of Legal & Corporate Consolers Procurement of PM / EPC / Suppliers/Operators Development Processing City Infrastructure (24 Months) Built Plots Development (Phase-1) Land Plots Development (Phase-1)

25. Cost Estimates

26. The Next Steps

27. Thank You..!