U.S. Trade and Development Agency Webinar: Supporting Environmental Exports U.S. Trade and Development Agency July 26, 2012

U.S. Trade and Development Agency Welcome and Introductions Leila Aridi Afas Director, Export Promotion

U.S. Trade and Development Agency Introduction to USTDA Geoff Jackson Regional Director

U.S. Trade and Development Agency USTDA Mission Statement USTDA helps companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies USTDA links U.S. businesses to export opportunities by funding project planning activities, pilot projects, and reverse trade missions while creating sustainable infrastructure and economic growth in partner countries.

U.S. Trade and Development Agency National Export Initiative Increase U.S. exports to $3.14 trillion by 2015 Response to the National Export Initiative: Launched the International Business Partnership Program Increased Trade Advocacy President Obama Announces Export Promotion Cabinet as part of the National Export Initiative

U.S. Trade and Development Agency USTDA Program Activities International Business Partnership Program Reverse Trade Missions Conferences Workshops Project Development Program Feasibility Studies Pilot Projects Technical Assistance Matching U.S. Commercial Interests with Development Opportunities

U.S. Trade and Development Agency International Business Partnership Program Reverse Trade Missions: USTDA brings foreign project sponsors to the United States pending upcoming procurements to observe the design, manufacture, and operation of U.S. products and services. Brazil Wind Farm

U.S. Trade and Development Agency International Business Partnership Program Conferences/Workshops: USTDA organizes these sector or region-specific events to connect U.S. firms with foreign buyers. They are designed to highlight upcoming projects overseas, as well as showcase U.S. goods and services.

U.S. Trade and Development Agency Project Development Program Feasibility Studies: USTDA-funded and U.S.-led feasibility studies link foreign project sponsors with U.S. businesses at the critical early stage of project development. Analysis includes: Technical Financial Legal Environmental Lifecycle costing

U.S. Trade and Development Agency Project Development Program USTDA-funded pilot projects demonstrate the effectiveness of commercially proven U.S. technologies and equipment in the foreign buyer’s setting. Pilot projects also provide analysis and evaluation needed for future projects to secure funding. Pilot Projects:

U.S. Trade and Development Agency Project Development Program USTDA advances economic development in partner countries by funding technical assistance that: supports legal and regulatory reform related to commercial activities and infrastructure development; the establishment of key industry standards ; and other market opening activities.

U.S. Trade and Development Agency USTDA By Sector (As a Percentage of USTDA’s FY 2011 Program Budget)

U.S. Trade and Development Agency Water Sector Overview Lida Fitts Country Manager

U.S. Trade and Development Agency Sample Water Projects U.S. – Water Quality Cooperation Program Integrated Real Time Water Monitoring System Public Infrastructure Emergency Management System Shandong Water Quality Improvement Project Han River Non-Point Source Monitoring System and Improvement

U.S. Trade and Development Agency USTDA Funding Criteria USTDA evaluates projects based on the following criteria: Developmental priority in the host country Likelihood of success receiving implementation financing Mutual benefits for the United States and partner country, including commercial opportunities for U.S. firms

U.S. Trade and Development Agency Contacts The following contacts would be useful to companies pursuing the China water market: Lida Fitts, USTDA (DC), Xiaolei Wan, USTDA Coordinator in Beijing, Andrew Billard, Commercial Service (Beijing), , Maureen Hinman, Commerce, DC, (202) , Sasha Koo-Oshima, EPA, Int. Water Office, ,

U.S. Trade and Development Agency Upcoming Events and Activities Verinda Fike Country Manager

U.S. Trade and Development Agency Upcoming Events China Maritime Operations and Safety RTM November 5-19, 012 Vietnam Non-Revenue Water Reduction and Wastewater Treatment RTM September 26- October 5, 2012

U.S. Trade and Development Agency Reviewing Events on ustda.gov

U.S. Trade and Development Agency Reviewing Events on ustda.gov

U.S. Trade and Development Agency Signing up for USTDA e-Newsletter

U.S. Trade and Development Agency Signing up for USTDA e-Newsletter

General Water and Groundwater Export Opportunities Presented by: Hal Gillette Water & Wastes Digest

Doing business in China (brief overview) There is a lot of opportunity, but it is not a quick strike; Develop local relationships, they have a deeper importance than here in U.S.; Develop a support network; A local presence through staff/partners is critical in the long run as it shows your commitment;

Doing business in China (brief overview) Your local staff/partners should: Have an idea of what the market is about; Know who to talk to; Have relevant experience; Have a language proficiency which is a critical factor to establishing your company’s bona fides; Someone with technical knowledge is key. More than just a translator and can speak to the technology;

Doing business in China (brief overview) China has many reputable firms looking to partner with U.S. companies BUT … Be thorough when setting up partnerships, make sure to vet prospects. References are critical and must be credible; You need to also have references for consultants who will help you with the due diligence selecting these companies; Everyone says they have a network or “Guangxi,” just remember our saying that “everyone has an opinion;”

China is a tough market but has big opportunities It is maturing quickly; Players follow the European vs. the U.S. market etiquette; Difference of opinions between the governments can impinge on relationships, specifically on government jobs; Finding jobs and bids and knowing where to look can be tough;

China is a tough market but has big opportunities China market means global competition: U.S. companies have not had to be as efficient as European companies due to the size of the U.S. economy and the maturity of the European market; European firms have had to look outside of Europe for a while and have more experience with global competitiveness; European firms are also better prepared to cooperate w/each other than U.S. companies have been to date;

Purchase Decisions More centralized than the U.S. market, not as many influencers; Harder to identify the decision maker(s); Design institutes, which are government entities, play the same role as CE firms in the U.S. and are key to the process, more so than the engineering firms in the U.S.; Owners make the final decisions;

Purchase Decisions Not a large role for the contractors in the decision process to date; EPC companies (Engineering/Planning/ Construction) are playing a larger and larger role in the process and have grown out of design institutes. These are either government owned or part government owned; Distinct “Buy China” preference (only for Chinese government money), somewhat in part due to the “Buy USA” preference here in the states;

Opportunities It’s tough, but many bright spots... More money is flowing in for drinking water source protection and $s for plants are growing with the infrastructure stimulus the government is funneling in; The Chinese people tend to have a psychological preference to U.S. products;

Opportunities New areas/innovative technologies: Energy consumption reduction; Increased durability; Technology that can be operated by low tech personnel; Decentralized wastewater systems have strong interest; Groundwater and source water monitoring and protection systems; Increased salinity/brackishness of water supplies mean that membranes and desalination are still very big; Water reuse is gaining as usage requirements are growing for the % of reuse water in their systems;

Hal Gillette Water & Wastes Digest a Scranton Gillette publication 3030 W Salt Creek Ln, Arlington Heights, IL

Webinar: Exploring Environment Sector Export Opportunities in East Asia and Eurasia China Groundwater & Soil Remediation Market Opportunities July 26, 2012

Scope of USTDA Definitional Mission Currently Underway Ascendant is working to identify and recommend activities for USTDA grant funding of groundwater and soil remediation sector projects and activities in China. MEP recognizes the U.S. experience in this area and is interested in the advanced technologies offered by US companies in this field. MEP has requested USTDA assistance for upcoming projects that will be implemented as part of their National Plan for Groundwater Pollution Prevention and Control ( ). Ascendant is identifying and evaluating specific project opportunities that can benefit from USTDA funding and developing TORs for proposed technical assistance programs. 35 Environment Sector Export Opportunities in China USTDA Webinar:

Current Situation Uneven distribution and quality of water resources between the northern and southern regions of China Significant concerns regarding the quality of groundwater throughout the country, but especially in shallow portions of the aquifers and coastal areas. Assessments made in by ML&R found that: 63% of groundwater resources met Grade I-III standards (e.g. suitable for drinking water purposes) the rest fall between IV and V level standards (e.g. not suitable for drinking water). 65% of domestic water, 50% of industrial water and 33% of agricultural water is sourced from groundwater supplies 61% of cities in China use groundwater as a drinking water source 36 Environment Sector Export Opportunities in China USTDA Webinar:

National Plan for Groundwater Pollution Prevention and Control ( ) The country's first national plan on groundwater pollution control was recently completed in November 2011 Promotes a combination of legal, economic, technological and administrative measures for groundwater protection Joint effort by the Ministries of Environmental Protection, Land and Resources, and Water Resources Plan to invest a total of billion yuan (approximately US $5.5 billion) on the prevention and treatment of pollution in the country's groundwater between Environment Sector Export Opportunities in China USTDA Webinar:

Master Plan Goals By to form a general understanding of the country's groundwater pollution situation and preliminarily bring the sources of groundwater pollution under control. By to fully monitor the typical sources of groundwater pollution and to make the safety of essential underground drinking water sources well protected. 38 Environment Sector Export Opportunities in China USTDA Webinar:

The National Plan focuses on 6 categories of projects: 39 Survey Prevention Remediation of groundwater pollution Control of pollution in underground drinking water sources Agriculture-related groundwater pollution control Underground water environment monitoring capacity building. Environment Sector Export Opportunities in China USTDA Webinar:

Target Sites & Pilot Projects The National Plan highlights 5 types of sites as target areas for survey of groundwater quality: Gas stations/USTs Mining sites Industrial plants Landfills Hazardous waste sites The plan has also called for several large-scale “demonstration” or pilot projects to be carried out in different provinces. Ascendant is working with MEP, USTDA and the EPA to develop a Technical Assistance Pilot Program that will focus on 2 of the 5 target sites and provide an opportunity for demonstration of US Equipment 40 Environment Sector Export Opportunities in China USTDA Webinar:

Opportunities for US Companies Equipment & Technology Sampling, Measurement & Monitoring Equipment Drilling & Well Installation Pumps Chemical Processes and Reagents UV Technologies Purification, separation and filtration technologies Remediation equipment and products Consulting & Technical Services Government Sector Surveying Real Estate / Land development Remediation Programs Modeling & Simulation 41 Environment Sector Export Opportunities in China USTDA Webinar:

Thank you! 42 Environment Sector Export Opportunities in China USTDA Webinar:

U.S. Trade and Development Agency Contact USTDA U.S. Trade and Development Agency 1000 Wilson Boulevard Suite 1600 Arlington, VA Telephone: (703) Fax: (703) Website: