Mission Statement

Environmental Trade Mission to Bulgaria, Romania and Turkey

October 1-5, 2007

Mission Description

The United States Department of Commerce, International Trade Administration Global Environmental Team is organizing an Environmental Trade Mission to Bulgaria, Romania and Turkey on October 1-5, 2007.   This event offers a timely and cost-effective opportunity for U.S. firms to tap into fast-growing markets for environmental equipment, technology and services in the newest European Union (EU) member countries and nearby Turkey.   Environmental products and services holding the highest potential for U.S. exporters to these markets include those in the areas of water and wastewater, soil remediation, solid and hazardous waste, and air pollution control.

Bulgaria and Romania joined the EU in January 2007 and are under heavy pressure to meet EU requirements for treatment of solid waste, water, and wastewater, and as well as to control air emissions To support these needed upgrades, EU grant funding is available to Bulgarian and Romanian government entities to invest in environmental and infrastructure projects.   These funds can be used for procurement of equipment and services worldwide.   More than US$46 billion in environmental investment in Bulgaria and Romania is anticipated by 2019 to meet EU standards.   Nearby Turkey is included in this mission as a possible future EU member that has already adopted EU-consistent environmental regulations. Turkey is undertaking significant environmental infrastructure upgrades estimated at US$80 billion over the next 20 years.

During the trade mission, participants will be exposed to these market opportunities and develop key government and private sector contacts in each country.   Trade Mission activities in each country will include country market briefings, one-on-one appointments with prospective business partners, and high-level meetings with government officials responsible for environmental projects.

Commercial Setting

Bulgaria

Bulgaria is a promising, but largely unexplored market for U.S. environmental pollution control products, equipment, services, and technology.   Bulgaria’s recent EU accession, coupled with domestic concerns about human health, industrial efficiency and tourism promotion, is driving a massive environmental cleanup and strict implementation of environmental standards.   Bulgaria will invest more than US$11.7 billion for water projects alone in order to meet EU requirements under the terms of the nation’s January 2007 accession.   Almost all the technologies needed for these environmental upgrades will have to be imported.   U.S. companies will have best prospects for sales in Bulgaria in the following areas:   wastewater and drinking water treatment; recycling and waste utilization; solid and hazardous waste collection, disposal and treatment; and clean production technologies.

Major problems in Bulgaria’s water sector include uneven distribution of water resources, nitrate and heavy metal pollution of surface water, a dilapidated distribution pipe network and an insufficient number of wastewater treatment plants.   Of the existing sewage network, 17 percent needs to be replaced either due to age or outdated technology, and 98 percent of villages have no sewage systems.   Urban wastewater treatment plants are planned for 430 cities with populations over 2,000 by 2015.   Most industries need to construct or upgrade their wastewater treatment facilities within 3-4 years to meet the new EU requirements.   With few exceptions, Bulgaria’s landfills fail to comply with EU requirements and will need to be reconstructed.   Strong demand exists for solutions for handling hazardous, solid and industrial waste.   Major demands for air pollution control solutions include desulfurization installations at large combustion facilities, filters for reduction of heavy metal and organic pollutant emissions from the energy sector, and prevention of dust, sulfur dioxide and heavy metal emissions in the metallurgy sector.

Romania

Romania offers immense opportunities for U.S. environmental companies as the country undertakes an estimated $35 billion in investments required to upgrade environmental conditions to EU standards by 2019.   EU funds are expected to cover around 34 percent of investments, with the rest requiring government and private funds, including loans from international financing institutions and private-public partnerships.   Best opportunities for U.S. environmental exports to Romania focus in the highest priorities for these investments, which include water and wastewater, solid and hazardous waste management, and large combustion plant air quality control.

Romania requires an estimated $24 billion in water and wastewater system upgrades by 2018 [Preceding paragraph states 2019?   Verify years.] to meet EU requirements.   Currently, the Environment Ministry is investing $4.5 billion in 40 water infrastructure projects.   Plans are also underway to implement a national waste collection system between 2007 and 2017 involving a $4-4.5 billion investment.   To comply with EU requirements for industrial pollution, Romania needs to modernize 716 industrial installations; .   Of these, only 18 are compliant, [NOTE:   the phrase “of these” refers to the 716.   195 + 521 = 716.   Thus, the 18 becomes confusing and a distraction.  Do we really need to reference the 18?   Clarity issue.] 195 have until 2015 to comply, and 521 were targeted for compliance before EU accession.   To date,   already, 25 percent of the estimated $3.2 billion required has been invested in these industrial upgrades.   Romania’s priorities for air pollution control focus on nine cities of more than 250,000 inhabitants.   In addition to building bypass roads aimed at protecting the population from traffic pollution, the government is focusing on the elimination of ozone depleting substances, as well as controlling pollution caused by electric and thermal power production, the chemical and petrochemical industry, and ferrous and non-ferrous metallurgy.

Turkey

In 2006, Turkey adopted a new environmental law aimed at harmonizing its regulations with EU standards and improving enforcement.   Environmental infrastructure investment to meet these new standards is estimated at US$80 billion over the next 20 years, with approximately 70 percent government and 30 percent private investment expected.   Half of this investment will focus on drinking water and wastewater facilities and the balance on solid waste and air pollution prevention.   Best opportunities for U.S. exports are in the areas of waste management, landfill development, waste-to-energy projects, recycling, industrial cleaning and maintenance, air pollution control, and drinking water and wastewater management and treatment.  

Turkey’s existing environmental infrastructure includes wastewater treatment that reaches just 11 percent of the population nationwide.   In the most sophisticated city of Istanbul wastewater treatment is at 85 percent, with plans underway for further upgrades.   According to the latest Ministry of Environment data, municipal waste consists of 49 percent organic waste and 38 percent recoverable waste, with the rest consisting of ash, slag, stone, and other waste. Only 29 percent of waste is dumped in organized landfills and 1 percent is composted. A single hazardous waste facility serves all of Turkey.   In order to meet excess demand, there are plans to build four new hazardous waste disposal and treatment plants.   Environmental investments will be primarily by the municipalities, but the government also welcomes private sector investment in these projects. Air quality is not yet monitored on a national basis, but major municipalities are beginning to track emissions to improve enforcement, especially from the major pollutant sources, industrial plants, thermal power plants and vehicles.   

Mission Goals

The goal of the Environmental Trade Mission to Bulgaria, Romania and Turkey is to position U.S. company participants to take advantage of the expansive environmental business opportunities in these markets.   U.S. participants will gain first-hand market exposure, access to government decision makers, and meet with private-sector contacts, including potential agents, distributors and business partners.

Mission Scenario

The Environmental Trade Mission will include three stops:   Istanbul, Turkey; Bucharest, Romania; and Sofia, Bulgaria.   In each city, trade mission participants will benefit from country market briefings and one-on-one business meetings with prospective agents, distributors, partners, and end users.   Mission participants in some cities will also meet with high-level government officials and benefit from networking events.

Mission Timetable

Istanbul, Turkey

Bucharest, Romania

Sofia, Bulgaria

Criteria for Participation and Selection

• Relevance of a company’s business line to mission goals.
• Timeliness of company’s signed application and participation agreement (including payment of a participation fee of $3,800).
• Company’s potential for business in Bulgaria, Romania and Turkey.
• Minimum of seven and maximum of ten twelve participating companies in the mission.
• Provision of adequate information on company’s products and/or services, and company’s primary market objectives, in order to facilitate appropriate matching with potential business partners.
• Certification that the company meets Departmental guidelines for participation.   A company’s products or services must be either produced in the United States, or, if not, marketed under the name of a U.S. firm and have at least 51 percent U.S. content of the value of the finished product or service.

Any partisan political activities (including political contributions) of an applicant are entirely irrelevant to the selection process.  

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Commerce Department trade mission calendar – www.ita.doc.gov/doctm/tmcal.html – and other Internet web sites, press releases to the general and trade media, direct mail and broadcast fax, notices by industry trade associations and other multiplier groups, and announcements at industry meetings, symposia, conferences, and trade shows.  

Recruitment for the mission will begin in March February 2007 and conclude no later than August 15, 2007. This mission is open to 10 environmental companies with market potential in Bulgaria, Romania and Turkey.    Space is available on a first-come, first-serve basis.   P articipation is not secured until payment is processed.    Applications received after  August 15, 2007 will be considered only if space and scheduling constraints permit .

The participation fee for the event will be $3,800 per company plus $500 per additional company representative.   The participation fee does not include travel , meals, or lodging costs.  

U.S. Contact Information:

Trade Mission Website:   Forthcoming

Julia Rauner Guerrero
Global Environmental Team Leader
U.S. Department of Commerce
U.S. Export Assistance Center – San Diego
julia.rauner.guerrero@mail.doc.gov
Tel:   619-557-2963; Fax:   619-557-6176

Bill Cline
Global Environmental Team Deputy Leader
U.S. Department of Commerce
U.S. Export Assistance Center – Reno
bill.cline@mail.doc.gov
Tel: 775-784-5203; Fax: 775-784-5343