Environment and Water in Portugal

An Expert's View about Waste in Portugal

Posted on: 29 Sep 2010

The environmental market in Portugal is one of the most dynamic in Europe. Overall prospects for UK environmental suppliers within the Portuguese market are good.

Environment and Water ? PORTUGAL Sector Report Environment and Water Portugal Produced by: Paulo Coimbra, Trade & Investment Officer, Lisbon Frederico Lyra, Trade & Investment Assistant, Lisbon Last revised 9 April 2010 Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation and Skills and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 9 April 2009 by UK Trade & Investment. Crown Copyright © www.uktradeinvest.gov.uk Environment and Water ? PORTUGAL Table of Contents OVERVIEW 3  OPPORTUNITIES 3  CHARACTERISTICS OF MARKET 5  KEY METHODS OF DOING BUSINESS   MORE DETAILED SECTOR REPORTS 6  PUBLICATIONS 6  EVENTS 8  CONTACT LISTS 8  www.uktradeinvest.gov.uk Page 2 of 9 Environment and Water ? PORTUGAL OVERVIEW The environmental market in Portugal is one of the most dynamic in Europe as the country has been making a strong effort to comply with EU standards. The sector is highly state-controlled and dependent on EU funding. Good access to Ministers and senior officials is therefore a key to the success of business. UKTI through the British Embassy in Lisbon can open doors, facilitate meetings with potential partners and gain access to senior decision-makers in Government and in industry. The most recent statistics available (INE ? Instituto Nacional de Estatística) indicate that environment protection spending by the Portuguese Government totalled approximately ?1030 million in 2008. Local Government invested over ?613 million accounting for 66% of the total spending. Local Government invested mainly in waste management, while central Government focussed more on bio-diversity and landscape protection. In 2008 industrial businesses investment on technologies for pollution abatement and control reached the amount of ?262 million. On the other hand, Portuguese environmental management operators invested approximately ?905 on public water supply and sewage and wastewater treatment. Portugal will benefit from EU funding for the period of 2007-2013 through the investment framework, the National Strategic Framework Programme (QREN - Quadro de Referência Estratégica Nacional), which will total ?20,000 million. The environment sector is one of the priority areas within the programme. The amounts foreseen by QREN for investment support in the water and waste management sectors add to a total of ?1,130 million. Furthermore the total need for investment in the above sectors, considering the several sector strategic plans rises to ?7.630 million in the period of 2007-2013. OPPORTUNITIES The projecting, engineering, and construction of new plants are generally contracted to the private sector, with procurement by open tender. Tenders for large EU-funded projects, which represent a large proportion of the total, are published in the EC Official Journal and the Portuguese Official Gazette (Diário da República). Bids must normally be submitted in Portuguese and meet a number of specialised criteria; most foreign companies have often found it necessary to make a joint bid with a Portuguese partner. Overall prospects for UK environmental suppliers within the Portuguese market are good, with the market open to foreign products, ideas and technology, and competition relatively weak. Specific opportunity areas for UK companies are in: ? Soil remediation services and technologies ? Contractors for soil remediation ? Sludge handling and treatment ? Waste handling and treatment, including waste to energy technologies based on anaerobic digestion, combustion, gasification, pyrolysis, etc (urban, industrial, clinical and hazardous) ? Industrial air pollution control (particulates and gas scrubbing) ? Environmental monitoring systems (water, air and waste) ? Municipal wastewater treatment (primary, secondary and tertiary, including small-scale plant) ? Industrial wastewater treatment Water and Wastewater The water and wastewater sector in Portugal will benefit further from funding with an expected expenditure (2007-2013) of ?3.8 billion to support accomplishing PEAASAR II (Strategic Plan for www.uktradeinvest.gov.uk Page 3 of 9 Environment and Water ? PORTUGAL Water Supply and Wastewater Treatment) targets of 95% of the population served by water supply and 90% by wastewater services. Current data show that only 92% of the population will have water supply services available while 78% will have wastewater collection. Upstream investment needed to complete and upgrade existing systems during the forthcoming EU funding allocation is estimated at ?1604 million. As for downstream investments for 2007-2013, these are estimated at ?2.2 billion to be allocated to: ? articulation and interconnection of upstream and downstream systems concerning water supply and municipal reservoir networks, and wastewater drainage networks; ? reduction of leakage in water supply networks; ? eradicate cross-connections in wastewater systems separating rainwater in unitary systems. Soil Contamination and Rehabilitation of Abandoned Mining Areas There are around 2,000 contaminated sites to be remediated and regenerated in Portugal, including 175 abandoned mining areas and 3 major industrial sites (Sines, Seixal and Estarreja). This area will be a priority on the Portuguese government?s priority lists during 2007-2013. There are a significant number of orphan sites that will have to be 100% financed by the state. Soil remediation is one of the priorities with a total allocation of ?95 million (Cohesion Fund) to remediate the most problematic sites in Portugal that include 5 industrial sites (?50 million) and approximately 20 abandoned mining areas (?45 million). Waste Management This will be another area of interest to UK companies, as Portugal is investing in waste management systems including anaerobic digestion and other technologies to valorise the organic fraction of the MSW, including Fuel from Waste. Industrial Pollution Enforcement of the EU Directives on the IPPC; VOCs, Mercury and PCBs. An increasing emphasis on enforcement as a means of correcting the poor standards of pollution control and waste management applying throughout Portuguese industry. Increasing industrial demand for effluent control, waste management and air pollution control, both for products and services, in response to stricter enforcement. Investment in disposal and treatment facilities for municipal, industrial, hospital and hazardous waste and sewage sludge. The amounts foreseen by QREN for investment support in the water and waste management sectors add to a total of ?1,130 million, are distributed as follows: ? Water supply and wastewater management of urban wastewater at a "wholesale" level: ?300 million Euros (Cohesion Fund); ? Water supply and wastewater management of urban wastewater through "wholesale and end-users verticalisation": ?480 million (Cohesion Fund); ? Water supply and wastewater management of urban wastewater at an "end-users" level: ?220 million (FEDER); ? Municipal waste: ?130 million (FEDER). Regarding future investments, it should also be noted that: ? PEAASAR II (Strategic Plan for Water Supply and Wastewater Treatment) estimates that investments in the order of ?3.804 million are needed in water supply and wastewater management systems, divided between wholesale (?1.604 million) and retail (?2.200 million); www.uktradeinvest.gov.uk Page 4 of 9 Environment and Water ? PORTUGAL ? ENEAPAI (National Strategy for Agricultural and Agro-industrial Effluents) predicts that approximately ?200 million will be needed to cover activities in the area of livestock production and agro-industrial effluents; ? PERSU II, which covers the period 2007-2016, anticipates that investments of ?805 million will be needed in municipal waste management systems in the period 2007-2013 (the QREN application period). In short, the need for investment in the areas mentioned in the above plans rises to ?7.630 million in the period of 2007-2013. UKTI publishes international business opportunities gathered by our network of British Embassies, High Commissions and Consulates worldwide. These opportunities appear in the Opportunities portlet on the relevant sector and country pages on the UKTI website. By setting up a profile you can be alerted by email when relevant new opportunities are published. New or updated alert profiles can be set in My Account on the website. CHARACTERISTICS OF MARKET In 2007 92% of the country's population (approximately 10 million inhabitants) was served with water supply systems and 78% with wastewater treatment systems. The entire population was served with Urban Waste collection and treatment systems. In 2008 the water and wastewater services operators, billed, about 1.200 million cubic meters of drinking water, and about 835 million cubic meters of wastewater in continental Portugal. In 2008, 4,780 thousand tons of municipal waste were produced in continental Portugal. The sector of drinking water supply, wastewater management, and municipal waste management has increasingly come to grow to a more business oriented logic, especially since the alteration of the legal framework in 1993. The water services operators in mainland Portugal, with a business management model, namely concessions and municipal and intermunicipal companies presented in 2008 a turnover of ?800 million. Overall, wholesale operators for waste management services presented a turnover of ?255 million in 2008. The strategy designed by PEAASAR II (2007-2013) has as its main objective to universally service 95% of the country's population with water supply systems in terms of continuity and quality. In view of the numbers presented in 2007, the objective established by PEAASAR II for 2013 is to supply 90% of the population with a drainage network and a wastewater treatment station. KEY METHODS OF DOING BUSINESS Decision-making tends to be rather politicised and bureaucratic and, at a more practical level, English is spoken though not to a great extent. Thus, some form of collaborative relationship with a Portuguese company is likely to be the best means of market entry. For standard, ?off-the-shelf? equipment, a licensing, distributorship or agency agreement may be sufficient, but for larger projects, some form of joint venture will be required. In particular, local consulting engineering practices are very small and are often tied to manufacturers and/or short of capital, and so equity participation or joint ventures are likely to be well received. Portugal is a family type market where local companies frequently ask for agency agreements on an exclusive basis. This is the most suitable arrangement if the potential agent has a large sales force and covers the whole of Portugal. The other possibility, if a suitable agent is not www.uktradeinvest.gov.uk Page 5 of 9 Environment and Water ? PORTUGAL found, is to appoint a number of distributors throughout the country (e.g. one for Northern Portugal and another one in the South). The appointment of a distributor will only be the first step. It is advisable to maintain a good relationship with them and keep them informed of all developments and modifications of your range of products. The Portuguese invariably prefer personal contacts. Therefore regular visits to the market are as important as continuous support to the agent / distributor. UK companies should aim to compete in the Portuguese market on price, quality or innovation (in equipment and commodity markets), or on standards of service and the ability to offer integrated, ?packaged? solutions (in service and contracting markets). In the wider context, Portuguese firms may make ideal partners for UK companies in accessing environmental opportunities in Portuguese-speaking markets further afield, principally Brazil and parts of Africa. The latter will rely on donor funding (from agencies such as the World Bank) but the Brazilian market is growing largely under its own steam. MORE DETAILED SECTOR REPORTS Research is critical when considering new markets. UKTI provides market research services which can help UK companies doing business overseas including: ? Overseas Market Introduction Service (OMIS). Bespoke research into potential markets, contacts and support during your visits overseas. ? Export Marketing Research Scheme. Advice on market research and help to contact subsidised market research administered by the British Chambers of Commerce on behalf of UKTI. Contact your local International Trade Advisor if you are interested in accessing these services, or for general advice in developing your export strategy. When considering doing business in Portugal, it is essential to obtain legal, financial and taxation advice. A useful contact list of lawyers and other relevant professional bodies as well as further information on the environment sector in the country is available from the British Embassy Lisbon. For further details, please contact: Renata Ramalhosa Trade & Investment Officer British Embassy Rua de São Bernardo, 33 1249-082 Lisboa Tel. +351 21 392 40 80 Fax. +351 21 392 41 86 E-mail: renata.ramalhosa@fco.gov.uk www.ukinportugal.fco.gov.uk PUBLICATIONS INDÚSTRIA E AMBIENTE Praça da Curojeira, nº38 - Apartado 3825 4300-144 PORTO Tel: (+351) 22 589 96 25 Fax: (+351) 22 589 96 29 industriaeambiente@publindustria.pt www.industriaeambiente.pt www.uktradeinvest.gov.uk Page 6 of 9 Environment and Water ? PORTUGAL Frequency: Quarterly Circulation: 7,500 AMBIENTE MAGAZINE Avenida Infante Santo, nº 343 R/C Esq. 1350-177 LISBOA Tel: (+351) 21 395 41 10 Fax: (+351) 21 395 30 70 ambientemagazine@mail.telepac.pt www.ambientemagazine.com Frequency: Quarterly Circulation: 5,000 ÁGUA & AMBIENTE Rua da Madalena, nº 191 4º 1100-319 LISBOA Tel: (+351) 21 880 61 23 Fax: (+351) 21 811 13 00 aboutnet@about.pt www.ambienteonline.pt Frequency: Monthly Circulation: 4,000 CÂMARAS VERDES - JORNAL DO AMBIENTE E ENERGIA Rua Artilharia 1, nº 101, 5º 1070-012 Lisboa Tel: (+351) 21 382 56 10 Fax: (+351) 21 382 56 19 com.cores@mail.telepac.pt www.camarasverdes.pt Frequency: Monthly Circulation: 5,000 TECNOLOGIAS DO AMBIENTE ITA ? Apartado 14265 1064-003 Lisboa Codex Tel: (+351) 21 966 92 90 Fax: (+351) 21 966 92 99 geral@ambiente-pt.com www.ambiente-pt.com Frequency: Bimonthly ÁGUAS E RESÍDUOS Avenida do Brasil, nº 101 1700-066 Lisboa Tel: (+351) 21 844 38 49 Fax: (+351) 21 844 30 48 apesb@apesb.pt www.apesb.pt Frequency: Every four months Circulation: 2000 RECURSOS HÍDRICOS Avenida do Brasil, nº 101 1700-066 Lisboa www.uktradeinvest.gov.uk Page 7 of 9 Environment and Water ? PORTUGAL Tel: (+351) 21 844 38 49 Fax: (+351) 21 844 30 48 apesb@apesb.pt www.apesb.pt Circulation: 1100 EVENTS April 2010 Inward Mission to Sustainability Live 2010 June 2010 T&I Officer to participate at Environment and Water Roadshow Inward Mission to Future Resource September 2010 Inward Mission to RWM Low Carbon Technologies Exhibition in Lisbon November 2010 Seminar on Sustainable Architecture March 2011 Inward Mission to Ecobuild For relevant exhibitions and trade fairs in Portugal please visit the websites www.fil.pt and www.exponor.pt UK Trade & Investment?s Tradeshow Access Programme (TAP) can help eligible UK businesses take part in overseas exhibitions. Attendance at TAP events offers significant benefits: ? possibilities for business opportunities both at the show and in the future ? a chance to assess new markets and develop useful contacts ? grants are available if you meet the criteria ? UKTI staff overseas will be available to assist delegates Find out if you are eligible to apply to attend this event, and more about the support UKTI can offer, on the UKTI Market Entry web page. Details of TAP events can be found in the Events portlet on the Portugal page. Other Market Visit Support may be available via your local International Trade Advisor. CONTACT LISTS Ministério do Ambiente, do Ordenamento do Território e do Desenvolvimento Regional (Ministry of the Environment) Rua de O Século, 51 1200-433 Lisboa Tel: +351 21 323 25 00 Fax: +351 21 323 25 04 www.maotdr.gov.pt Agência Portuguesa de Ambiente www.uktradeinvest.gov.uk Page 8 of 9 Environment and Water ? PORTUGAL (Environment Agency) Rua da Murgueira, 9 - 9 A Zambujal 2720-865 Amadora Tel: +351 21 472 82 00 Fax: +351 21 471 90 74 www.apambiente.pt INAG - Instituto da Água (Water Institute) Avenida Almirante Gago Coutinho, 30 1049-066 Lisboa Tel: +351 21 843 00 00 Fax: +351 21 847 35 71 www.inag.pt ERSAR ? Entidade Reguladora dos Serviços de Águas e Resíduos (Water and Waste Services Regulation Authority) Centro Empresarial Torres de Lisboa Rua Tomás da Fonseca, Torre G - 8º 1600-209 Lisboa Tel: +351 21 005 22 00 Fax: +351 21 005 22 59 www.irar.pt UKTI?s International Trade Advisers can provide you with essential and impartial advice on all aspects of international trade. Every UK region also has dedicated sector specialists who can provide advice tailored to your industry. You can trace your nearest advisor by entering your postcode into the Local Office Database on the homepage of our website. For new and inexperienced exporters, our Passport to Export process will take you through the mechanics of exporting. An International Trade Adviser will provide professional advice on a range of services, including financial subsidies, export documentation, contacts in overseas markets, overseas visits, translating marketing material, e-commerce, subsidised export training and market research. www.uktradeinvest.gov.uk Page 9 of 9
Posted: 29 September 2010

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