CEE water sector requires reform
The fulfillment of reforms and liberalization processes in the water sector started in late 1990s in most central and eastern European (CEE) countries are crucial for the region’s steadily growing municipal water and wastewater treatment equipment market, according to Frost & Sullivan (www.
The fulfillment of reforms and liberalization processes in the water sector started in late 1990s in most central and eastern European (CEE) countries are crucial for the region’s steadily growing municipal water and wastewater treatment equipment market, according to Frost & Sullivan (www.environment.frost.com), a global growth consulting company.
Private companies must increase their investments and the municipal sector must secure loans in order to strengthen the water sector reforms process. These steps will help the sector meet treatment standards and attain financial sustainability.
New analysis from Frost & Sullivan reveals that this market generated revenue of US $0.80 billion in 2004. Total market revenue is expected to reach $1.40 billion in 2011.
“A key challenge to this market is that the member countries and other CEE nations are still in the process of harmonizing EU directives,” noted Frost & Sullivan’s Research Analyst Fredrick Royan. “Harmonization involves transposing water directives into national legislations, forming river basin districts and classifying sensitive areas under the Urban Waste Water Treatment Directive (UWWTD).“
“The state institutions - in candidate and new member countries - that deal with the implementation of legislations are under tremendous pressure to comply with the legislations. This results in difficulties to meeting deadlines, ultimately delaying water and wastewater treatment equipment sales.
“Further, the differing economic growth levels in the CCE countries result in varying priority levels for water and wastewater treatment investment across these nations. While countries such as Poland are prospering economies, others such as Ukraine and Croatia, are still experiencing instability.”
Overall, treatment equipment suppliers must follow a long-term approach when they venture into the CEE market. Suppliers that establish themselves in the initial tenure of ten years, gain when the developed CEE municipal sector offers qualitatively enhanced opportunities. For more information on this market, contact by email: email@example.com