| TABLE 2.1: BASIC COUNTRY INFORMATION | |||||
|---|---|---|---|---|---|
| Czech Republic | Hungary | Poland | Slovakia | Slovenia | |
| Population (mln) | 10.3 | 10.2 | 38.6 | 5.4 | 2.0 |
| Area (sq.km) | 78,900 | 93,000 | 312,700 | 49,000 | 20,200 |
| GDP (USD bln) | 52.3 | 44.3 | 134.3 | 18.9 | 18.6 |
| GDP growth (%) | 1.3 | 1.2 | 7.7 | 6.0 | 3.1 |
| Foreign Direct Investment (USD bln) | 7.3 | 16.2 | 13.5 | 1.0 | 1.7 |
| Unemployment rate (%) | 4.8 | 10.3 | 10.6 | 13.0 | 14.4 |
| Average monthly wages (USD) | 302.0 | 319.0 | 329.0 | 257.9 | 890.0 |
| Inflation rate (%) | 10.3 | 18.4 | 14.5 | 6.0 | 9.6 |
| Exchange rate to the USD | 33.5 | 197.8 | 3.4 | 34.0 | 167.8 |
| Environmental Expenditures in 1995 (USD mln) | 1,185.0 | 385.0 | 1,308.0 | 232.0 | 150.0 |
| Environmental Expenditures in 1995 (% of GDP) | 2.6 | 1.1 | 1.1 | 1.0 | 0.8 |
| Source: Business Central Europe, November 1997; 1996 Statistical Yearbook of each surveyed country. | |||||
In 1995, spending on environmental protection in the Czech Republic amounted to USD 1.185 million, or 2.6 percent of the country's GDP. Two major priority areas include air pollution control projects, accounting for more than a half of environmental expenditures, and water management projects, which account for more than a third of total environmental spending. The Czech State Environmental Fund is the most important source of state financing, while the role of other state bodies is diminishing.
The market for pollution control equipment in the Czech Republic is estimated at between USD 600 and 700 million per year, with an annual growth rate of some 6 percent. Two-thirds of the market is based on domestic production, and one-third on imports.
Air pollution control will continue to be a major priority area, although there is expected to be a gradual shift in focus towards small and medium-sized air pollution sources. Water management, and particularly wastewater treatment, are likely to remain priority areas in the coming years. Municipalities, as well as industrial wastewater producers must meet new wastewater discharge standards which will become stricter from Jan. 1, 2005. A significant number of projects relating to site remediation are also under way.
Currently, air pollution control projects strongly focus on fuel conversion (switching from coal to natural gas) in local heating stations. Gas heating is gradually being introduced in individual family houses, and, in some areas, in businesses as well. The main project opportunities in the water management sector are related to the construction of new, and modernization of existing water supply and wastewater treatment systems throughout the country. Contamination of groundwater resources (especially by oil-based substances, organic solvents, and heavy metals) is a significant problem. Priority areas in the energy sector include the conversion of most of the current small and medium-sized heat generating stations from burning coal to gas use; reconstruction of larger heating stations for use also in electricity generation; and modernization and construction of new smaller energy generating sources.
Future projects will include recycling, waste minimization, energy saving measures, use of alternative energy sources, and introduction of environmental management systems (ISO 14000 and EMAS).
Personal and professional contacts, participation in environmental fairs, and business and environmental publications are primary sources of information for project opportunities and on the availability of environmental technologies in the Czech Republic. There are no effective formal information channels. The Czech Republic recently passed the Public Procurement Law (No. 229/1996), and the prescribed tender mechanism can be a source of information for business opportunities.
In general, the demand for environmental technologies was estimated to be between moderate and high. Technologies for water and wastewater treatment were ranked among the most needed, followed by technologies for waste management, air, and energy.
In the air sector, demand was found to be high for air pollution control/flue gas purification equipment (e.g. filters, scrubbers). Growing demand is expected for continuous-basis monitoring equipment for ambient air; and air sampling/laboratory analysis equipment for gaseous emissions.
Within the water and wastewater sector, high demand was identified for pollution prevention/waste minimization technologies for municipal wastewater; equipment for spill control and containment/clean-up of surface and ground water; and technologies for sludge treatment and disposal of municipal and industrial wastewater. Technologies in increasing demand included: quality restoration and decontamination equipment for surface and ground water; construction of municipal wastewater collection networks; monitoring, sampling and analytical equipment for drinking water; and technologies for water recycling in the area of industrial wastewater.
Among the technologies available for waste management, high demand was identified for hazardous waste collection, transportation and storage equipment. Increasing demand is expected for site remediation and contaminated land clean-up technologies; waste collection/transportation and storage equipment for industrial and municipal waste; and technologies for incineration and landfill disposal of industrial waste.
In the energy sector, increasing demand is expected for technologies that could be used for the retrofitting/rehabilitation of existing energy systems, followed by alternative (non-CFC) refrigerants.
Demand in the noise, vibration, and occupational health and safety sector was found to be low.
Municipalities are the main end-users of environmental technologies in all categories. The energy sector and the chemical industry are the other major end-users.
Due to the pervasive lack of money, most environmental technology end-users select the cheapest technology that enables them to meet the required standards. Foreign technologies are generally viewed as more advanced, of better quality, and more reliable than local products. Recognition of brand names is an important factor as well.
In discussing strengths of foreign environmental technologies, 70 percent of respondents pointed out high product quality, while 50-60 percent marked "reliable and durable product", and "user-friendly technology". 30-35 percent of respondents indicated "easy to customize and adapt for specific local needs," while 15-20 percent noted "good value for money." "Available credit" and "good after-sales service" were rarely mentioned as strengths of foreign products. Several respondents even mentioned a superficial and careless approach from foreign companies to after-sales service.
High price was identified as the biggest disadvantage of foreign environmental technologies - practically all respondents regarded foreign environmental technologies as too expensive. "Ensuring authorized technical service and maintenance" was mentioned as a problem by 30-40 percent of the interviewed parties. Between 20 and 30 percent of respondents illustrated other disadvantages of foreign technologies, such as the "lack of reliable product information," and "products not suitable for local conditions."
German, Austrian, Dutch, and Scandinavian companies are considered to be most active in the environmental technology market in the Czech Republic, followed by American, Danish, French and British firms. Perceptions of foreign technologies were good, with German, Austrian, Dutch and American products evaluated particularly high.
The presence of foreign firms is most significant in the field of waste management. Foreign firms are also active in wastewater treatment, and to a smaller degree in air pollution control. However, the familiarity of Czech environmental experts with the available foreign environmental technologies is rather limited.
