seminar “american expertise and technology for the water and wastewater sector” 11 april 2011...

Seminar “American Expertise and technology for the water and wastewater sector”11 April 2011

Business Opportunities in the Romanian water and

wastewater sector

Romanian Water Association

1

Vasile CIOMOS, PhD.ARA President


Content

• Regional context• National context • Local context • Strategic objectives• Business opportunities• Conclusions

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• European Danube Development Strategy • Management plans in Danube River Basin

Regional Context

Major interest and strategies in the region:

US Black Sea StrategyEU Black Sea StrategyBlack Sea basin joint operational program

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Danube river is a connector of Europe with Black Sea and central Asia

EU Strategy for the Danube Region

Objectives To make the Danube region: - prosperous, - sustainable, - attractive, - safe and secure

Regional Context

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• Management Plan for each Main River Basins

• Implementation of SOP Environment - ongoing

• Regionalization of the water operators – near to be finised

Romanian National Context

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Romanian local context

• Romania is one of the relatively poor countries in water sources, with 2,660 m3/ inhabitant/year, compared to the European average of 4,000 m3 /inhabitant/year

• Only 55% of the population is supplied with water through a centralized system and less than 45% are conected to sewerage system

6Seminar “American Expertise and technology for the water and wastewater sector”11 April 2011

Romanian local context

• In Romania there are 17185 water intakes in operation (318 from drainages) and over 1 million fountains and wells in both public and private property

• Centralised water and sewage infrastructure are public property

• 42 water companies are operating 85 % of the market in centralised water supply

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Map of the AoM / Regional Operators for Water Services 40 Associations of municipalities40 regional operators40 Delegated management contracts2 PPP (Bucharest, Ploiesti)

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Strategic ObjectivesThe National Sustainable Development Strategy for Romania 2013 – 2020 – 2030 have been just officially approved in Nov. 2008, and settled the following strategic objectives:• Horizon 2013: To incorporate the principles and practices of

sustainable development in all the programmes and public policies of Romania as an EU Member State.

• Horizon 2020: To reach the current average level of the EU countries for the main indicators of sustainable development.

• Horizon 2030: To get significantly close to the average performance of the EU Member States in that year in terms of sustainable development indicators.


SOP ObjectivesAccess to centralized

water supply

Collection and waste water treatment

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Bussines oportunities• Water supply has been the focus of significant

investments and improvements within pre-accession programs (ISPA, SAPARD, PHARE), without reaching an optimum level.

• Waste water treatment is still the sector most poorly covered in the market, in terms of service availability and technology,

• There is an increasing drive on the market for identification of updated water technologies, equipment and consultancy services


Bussines oportunities (cont.)• Current financing programs approach water

supply and water treatment as a package, • The upgrade of systems in urban areas is

relatively more privileged, due to the funds through the Sector Operational Program Environment (SOP ENV)

• There are 29 apllications allready aproved by EC, amounting almost 3 bil. Euro

• Other 13 are under final revision


Market studies resultes

• Romania is no easy market, but with the right approach, it can offer a wealth of

opportunities • It is crucial to rely on

a trustworthy local partner

• Frost & Sullivan:Water and Waste Water Treatement Market Survey

• BDG:Financial Survey 2010: Bridging the business model gap


Market studies resultes (cont.)• Frost & Sullivan estimates that the size of the water and wastewater treatment equipment market in Romania was 173.1 million USD in 2009

• We expect the market size to double across the forecast period and reach approximately 396.5 million USD in 2015

• Similarly as in case of CEE states, the Romanian municipal market is expected to grow more dynamically throughout the forecast period, with legislation driving both the effluent and drinking water segments.

• The industrial market has legislative drivers only on the wastewater side. Demand for process water is driven only by market demand and thus, is more susceptible to economic fluctuations and will reach around 50.7 million USD in 2015.


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Conclusions and Recommendations

• At the present the key opportunities lie in the wastewater treatment market, particularly for the municipal applications.

• Romania requires construction of 40 large wastewater treatment plants and rehabilitation and upgrade of 330 large plants.

• Driven by the Urban Wastewater Treatment Directive, the highest demand will be generated by secondary, tertiary and sludge treatment equipment.


Conclusions and Recommendations (cont.)

• Considerable opportunities also exist in the potable water segment where, rehabilitation of treatment plants drives demand for filtration equipment.• Around 45% of Romanian population lives in rural areas and will not qualify for traditional treatment plant and access to centralized sewage network and will require decentralized solutions.• Finally, substantial opportunities also exist for service providers, especially in areas such as project management, training, engineering supervision.


Conclusions

• Romania will continue to be a major beneficiary of EU funding in the next programming period with the largest part of available funding to be allocated for infrastructure, including environment and water infrastructure

• The competition for the EU post-2013 budget has already begun


THANK YOU FOR YOUR ATTENTIONROMANIAN WATER ASSOCIATION

Splaiul Independentei no. 202A, 9th floorBucharest, Romania

Telephon :004 021 316 27 87;004 021 316 27 68.

FAX :004 021 316 27 88

E-mail : [email protected]@ara.ro

Website: www.ara.ro

mailto:[email protected]

mailto:[email protected]

http://www.ara.ro/

seminar “american expertise and technology for the water and wastewater sector” 11 april 2011...

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