BUSINESS OPPORTUNITIES IN ROMANIA’S WATER SECTOR

1. BUSINESS OPPORTUNITIES IN ROMANIA’S WATER SECTOR A Market Briefing U.S. Commercial Service Bucharest June 21, 2010

2. SUMMARY Romania Water Resources Market structure Targets Business Opportunities How can we help you?

3. ROMANIABASICS Population: 21.7 million Capital: Bucharest Area: 238,000 sq km EU member since 2007

4. BestProspects • Water/Wastewater • ICT • Agricultural Equipment • Energy • Packaging Equipment • Automotive Equipment

5. SURFACE WATER Romania’s water network : 97.8% derived from the Danube river basin 78,905 km of water 22,000 km monitored and used GROUND WATERS Potential usable: 5.5 billion m3/year Romania’sWaterResources

6. Market Structure (1) • Water and Wastewater utilities: commercial companies(share holders: local authorities) • Framework legislation • Delegated management Concession Contract (political influence much lower) • Unified tariffs for all categories of users (Polluter pay principal) • Tariffs cover the operational costs and some capital investments • 70% access to the water supply • Length of the water distribution network : 45,000 km • Length of the sewerage distribution network : 19,500 km

7. Regional Operators Market Structure (2) • Regionalization of the water services • Tight competition among utilities • Protects the interests of water and wastewater utilities Romanian Water Association

8. Prioritiesand Targets (1) • To improve the quality of, and access to infrastructure for water supply and wastewater treatment by providing safe potable water and sewerage services to the majority of urban areas by 2015 • To establish efficient regional structures for water and wastewater management.

9. Priorities and Targets (2) Population access to the water supply Sewerage and WW treatment

10. Business Opportunities (1) • Accessing European Union funds for Environment • Extensive portfolio of projects: 80 • Areas of investment: water / waste water, waste, heat and floods • Total value of investment: 4 billion Euros, out of which water and wastewater infrastructure : 3 billion Euros

11. Business Opportunities (2) • Construction/modernization of water sources intended for drinking water abstraction • Construction/rehabilitation of water treatment plants • Extension/rehabilitation of water and sewerage networks • Construction/upgrading of wastewater treatment plants; • Construction/rehabilitation of sludge treatment facilities; • Metering, laboratory equipment, leakage detection equipment, etc.;

12. Business Opportunities (3) Rehabilitation of 1398 water treatment plants Modernization of 327 Wastewater treatment plants

13. MarketEntry Tactics • Investigate and understand market • Public Procurement for public utilities www.seap.ro • Find partner • Stay apprised of developments • Be patient

14. WORK WITH US! • Trade Missions: "U.S. Water and Wastewater Industry Promotion Program" at the Constanta Exhibition Center from April 28-30, 2010. • Technical Seminars • Site Visits • Bringing delegations to major trade shows in the U.S. (AWWA and WEFTEC)

15. Contact Details Maria Nitoiu U.S. Commercial Service – Romania American Embassy Bucharest Email: Maria.Nitoiu@mail.doc.gov Tel. 40.21.200.33.79 Fax 40.21.316.0690 http://www.buyusa.gov/romania/en

16. http://www.buyusa.gov/romania/en

17. THANK YOU!