1. 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

2. Seminar “American Expertise and technology for the water and wastewater sector” 11 April 2011 Content Regional context National context Local context Strategic objectives Business opportunities Conclusions 2

3. Seminar “American Expertise and technology for the water and wastewater sector” 11 April 2011 European Danube Development Strategy Management plans in Danube River Basin Regional Context Major interest and strategies in the region: US Black Sea Strategy EU Black Sea Strategy Black Sea basin joint operational program 3

4. Seminar “American Expertise and technology for the water and wastewater sector” 11 April 2011 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 4

5. Seminar “American Expertise and technology for the water and wastewater sector” 11 April 2011 Management Plan for each Main River Basins Implementation of SOP Environment - ongoing Regionalization of the water operators – near to be finised Romanian National Context 5

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

7. 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 7

8. Map of the AoM / Regional Operators for Water Services  40 Associations of municipalities  40 regional operators  40 Delegated management contracts  2 PPP (Bucharest, Ploiesti) 8

9. Strategic Objectives The 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.

10. Seminar “American Expertise and technology for the water and wastewater sector” 11 April 2011 SOP Objectives Access to centralized water supply Collection and waste water treatment 10

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

12. 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 12 Seminar “American Expertise and technology for the water and wastewater sector” 11 April 2011

13. 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 13 Seminar “American Expertise and technology for the water and wastewater sector” 11 April 2011

14. 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. 14 Seminar “American Expertise and technology for the water and wastewater sector” 11 April 2011

15. 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. 15 Seminar “American Expertise and technology for the water and wastewater sector” 11 April 2011

16. 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. 16 Seminar “American Expertise and technology for the water and wastewater sector” 11 April 2011

17. 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 17 Seminar “American Expertise and technology for the water and wastewater sector” 11 April 2011

18. THANK YOU FOR YOUR ATTENTION ROMANIAN WATER ASSOCIATION Splaiul Independentei no. 202A, 9 th floor Bucharest, Romania Telephon : 004 021 316 27 87; 004 021 316 27 68. FAX : 004 021 316 27 88 E-mail : info@ara.roinfo@ara.ro secretariat@ara.ro Website: www.ara.rowww.ara.ro