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Eritrea's Coastal Marine and Island Biodiversity Conservation Project

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6.7. Free Trade Zones<br />

The Government of the State of Eritrea has introduced the establishment of Free Trade Zones in different administrative districts of the country.<br />

Proclamation No 115/2001, also known as " The Eritrean Free Zones Proclamation" defines the objectives of the establishment of Free Zones in Eritrea<br />

in general as follows; ‘Objectives of the Free Zone program in Eritrea shall be to contribute to the development of an internationally competitive<br />

business sector in Eritrea by creating an environment in which domestic <strong>and</strong> foreign investors will be encouraged to invest in export business<br />

activities,’ thereby ; create employment, extending the technology base, developing the technical <strong>and</strong> managerial skill of the Eritrean workforce, <strong>and</strong><br />

exp<strong>and</strong>ing <strong>Eritrea's</strong> external business <strong>and</strong> marketing contacts<br />

With the plan to increase export oriented domestic production Massawa as the sea gateway of the country will play a key developmental role. For this<br />

purpose, the Eritrean Free Zones Authority gazetted the l<strong>and</strong> area of the Gherar <strong>and</strong> Abdel Kader peninsula, the Ras Dogon headl<strong>and</strong> <strong>and</strong> a substantial<br />

part of the coastal fringe as part of the Massawa free trade zone. Hence, there is a great potential of different infrastructures that support the free trade<br />

zone to be built <strong>and</strong> may affect the coastal environment. In September 2006, another Decree was issued extending the Massawa Free Zone to include<br />

Massawa Port, Airport <strong>and</strong> all public fuel deposits outside serving the Massawa port <strong>and</strong> airport compounds. For Assab, the Free Zone will include<br />

Assab port, airport, refinery salt works <strong>and</strong> all public fuel deposits outside serving the Assab port <strong>and</strong> airport compounds.<br />

6.7.1. Threats from Free Trade Zones<br />

As stated before, the main threat generated by any industrial activity is the risk of pollution. As a free zone is expected to concentrate numerous<br />

industrial activities, a proper planning is essential. Not only each Free Zone has to be considered internally for its safety, but also externally for its<br />

impact on the surrounding population, natural resources (water), transport, liquid or solid waste management, housing or on need in energy in order to<br />

avoid to destabilise a nearby municipality. It is generally recommended to prepare a Strategic Environmental Assessment (SEA) for such facilities as it<br />

is the case for tourism areas regrouping numerous resorts <strong>and</strong> associated facilities.<br />

6.8. Oil Terminals<br />

Massawa has two oil importing terminals the "Mobil/Total terminal" on Abdel Kader peninsula (enclosed by the present Navy Base) <strong>and</strong> the "Shell<br />

Terminal" in the southern part of Hirgigo bay. Petroleum is imported by the Eritrean Petroleum Corporation <strong>and</strong> unloaded by Shell <strong>and</strong> Mobil/Total<br />

companies, which are also responsible for the products once stored in the deposit tanks.<br />

State of the Coast Eritrea, 2006-2007 46

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