Environment and Water sector

An Expert's View about Environmental Technologies in Egypt

Posted on: 28 Sep 2012

The market for water, wastewater and environmental goods and services in Egypt is promising.

The Environment and Water sector in Egypt The market for water, wastewater and environmental goods and services in Egypt is promising. Analysts expect it to increase by 40% in parallel with the improvement of the economy. Market overview There is real scope for introducing new technology and solutions in the water and environment sectors. There are various projects down the pipeline and the government is seeking private sector participation. Egyptian authorities are looking for the latest foreign technology but are unsighted on the latest UK developments The Egyptian Minister of State for Environmental Affairs has been implementing serious reforms with successful steps for abating all types of pollution, but these are still considered in its embryonic stage. Hence, opportunities are numerous. Environment Sector The Egyptian government is determined to tackle environmental issues such as water scarcity, declining water quality, land degradation, increasing air pollution, untreated urban and hazardous waste disposal, poorly protected cultural and natural heritage (by reinforcing legal and institutional framework) and increasing its budget expenditure on environmental projects. Most of the government expenditure goes towards funding of environmental equipment, various environment programmes, capacity building and technical assistance to polluting industries. Funding also comes from international donors such as the World Bank, United Nations Development Programme, USA, EU, Japan, Germany, Denmark, Netherlands, and several other countries. Egyptian regulations increasingly put pressure on businesses to comply with environmental laws. Businesses exporting to the EU, North America, and other developed regions, where compliance with environmental standards can constitute an explicit non-tariff barrier; is also urged to prove their compliance with international environmental standards. Water & Wastewater Sector: The water and wastewater sector is very large and growing rapidly. The Egyptian government has allocated funding to upgrade/build modern irrigation systems and improve the infrastructure in order to enhance water and sanitation coverage throughout the country. The current economic and social development five-year plan focuses on infrastructure projects, including water and sanitation projects. The total number of projects in the 5-year plan (2007- 2012) is 31 water and 40 wastewater projects. Daily production of potable water in Egypt is now 21 million cubic meters with daily losses due to leakage from the network or to unauthorised access ranging 30%-40%. An increase of 40% in the amount of clean water produced daily is essential. The government's target is to achieve 100% water coverage by the year 2017 and 100% wastewater coverage by 2022. Egypt needs to invest LE 80 billion over the next 10 years to complete its sanitary drainage sector. Chairman of the Holding Co. for Potable Water & Sanitary Drainage, announced that the service currently covers only 55% of the governorates requirements. The key issue for the authorities is the selection of technologies, which saves on land & energy and maximises local manufacture component. Another issue is the future operation and maintenance of such facilities upon completion. Recent developments in Egypt are also concerned with private participation processes. Egypt is engaged in several mega projects like Toshka, North Sinai and South Valley. Recently, Egypt launched its first public-private partnership (PPP) project in the New Cairo Wastewater Treatment Project. Egyptian authorities will announce various projects shortly are now looking for foreign companies to introduce new technology in this sector. International firms are monitoring these developments, so as not to miss out on what appears to be a highly promising avenue for investment. Key opportunities There are opportunities for UK companies in the Egyptian environment, water and wastewater sector. Main equipment and services needed in the environmental sector: ξ Design and construction of sanitary landfills ξ Solid waste management, equipment and operation ξ Composting programs for agricultural waste ξ Recycling plants, equipment & relevant training ξ Hazardous waste treatment technologies and incinerators ξ New and renewable energy technology and equipment especially solar energy and wind farms ξ Industrial Filters and air pollution equipment ξ Environment consultancy ξ Emission measuring instruments especially for vehicle exhaust. ξ Recycling technology for industrial waste ξ Kits for converting motor vehicles to use natural gas ξ Equipment and filters to reduce pollution from power plants and particle emissions from cement factory smokestacks ξ Industrial wastewater treatment plants and equipment. ξ Marine pollution removal equipment and consultancy ξ Education and training in new agriculture technologies to address the use of fertilisers and pesticides. ξ Coastal protection equip, consultancies to prevent shoreline erosion ξ Education and training in protecting water rivers, canals, coasts and preventing shoreline erosion. ξ Clean Development Mechanism (CDM) projects under the Kyoto agreement Water and Wastewater opportunities: Opportunities for UK companies in the water and wastewater sector in Egypt are broad, covering every area of expertise from technology and equipment supply to consulting and project management. ξ Potential areas include: ξ Water and wastewater treatment plants ξ Equipment for filtration and purification ξ Equipment for leak detection ξ Coastal protection equipment ξ Chemicals and sludge treatment ξ Desalination and irrigation systems ξ Consultancy services ξ Irrigation systems and infrastructure ξ Know-how to produce electromechanical parts ξ Pumps and valves ξ Education and vocational training in operation, maintenance and water resource management ξ Cooling towers for water ξ Education and training in protecting water rivers, canals Renewable Energy (RE) Egypt is increasingly putting this sector higher on its agenda. In the past all investment in renewable energy generation used to be through international donors (Aid from Denmark, Germany, Japan, etc), but currently, a strategy is being put in place to encourage private sector contribution to satisfy the targeted 20% generation of energy through RE by 2020. Egypt has very good potential for RE generation; Sunshine duration is 9-11hrs/day with very few cloudy days, wind speed reaches 10.8m/sec., Biomass amount is in the order of 60 million ton/year. Studies assure that, if utilised efficiently, RE can cover all Egypt's needs of energy and also be exported. The Egyptian government is studying a Feed-In Law and Feed-In Tariff to prepare for private investment for the first time in this sector. These regulations will shortly be raised with legislative authorities. Some specialists expect the law to be issued in one year's time. Latest export opportunities in the Environment and Water sector Latest export opportunities in Egypt Getting into the market Egypt is an attractive market that can offer major business opportunities to informed traders and investors. Trade and investment between the UK and Egypt is promising. However it is not always an easy market. A successful entry into Egypt will be determined by the quality of the information and advice upon which the decision to enter is based. Continued success is also dependent upon the ability to navigate the laws and practices of Egypt. The Egyptian market requires careful study and a sustained sales effort. There is strong competition from other exporting countries. Price and credit terms are a deciding factor when obtaining contracts, though quality is increasingly important. Back-up servicing facilities and the supply of spare parts is also important. Having a local partner can be vital to successful penetration of this market. There are several reasons for this. Firstly, given the continuing bureaucracy, a local partner can shepherd the foreign business through the delays and obstacles. Secondly, foreign companies require a local agent to bid for government tenders. Thirdly, as the Egyptian market becomes more sophisticated there is a growing demand for after sales service, which a local agent can convincingly provide. British companies wishing to develop their business in the Egyptian market are advised to undertake as much market research and planning as possible in the UK. More about doing business in Egypt Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits through our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ Wafaa Saad, British Embassy Cairo. Tel: (00202) 2791 6000 or email: wafaa.saad@fco.gov.uk Yasmin Montasser, British Embassy Cairo. Tel: (00202) 2791 6000 or email: yasmin.montasser@fco.gov.uk UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events in the Environment and Water sector Major Events Sustainability Live 2013 Date: 16-18 April 2013 Venue: NEC Birmingham, UK Website: www.sustainabilitylive.com/ Sustainability through Resource Conservation & Recycling (SRCR) 2013 Date: 6-8 May 2013 Venue: Falmouth Beach Resort Hotel, Falmouth, United Kingdom Website: http://www.bvents.com/event/281600-sustainability-through-resource-conservation- and-recycling-srcr In Egypt AQUATHERM 2013 (Dates TBC) The BIG Four 2013 (Dates TBC) Useful links More about OMIS and other UKTI services for exporters
Posted: 28 September 2012

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