Chapter 3: Hungary

(continued)

3.4 Project Opportunities

Major Environmental Problems

Significant Environmental Projects in Progress

Water

• Sewage water treatment program in Budapest and major cities;
• Sewerage and sewage water treatment program to reduce the gap between water supply and access to sewage network (Government Program 20-21/1994, Resources: KKA, KHVM);
• Improving the quality of Lake Balaton and Lake Velence (including dredging) and setting up a water quality monitoring system.

Air

• Harmonization of Hungarian laws on air pollution with EU legislation (monitoring of air quality, setting emission limits for emissions by power plants, etc.)

Other

• Varpalota region industrial sub-program for remediation of past environmental damages;
• Asbestos program (a national asbestos register is to be established);
• Pollution abatement program (action program to identify and address 10-20 local environmental pollution problems most detrimental to human health);
• Development of Hungarian environmental industry to improve international competitiveness (government program will be suggested by IKIM, KTM and the Environmental Committee of the Parliament);
• Promotion of environmental management systems (informal joint project of IKIM, OMFB, KTM).

For detailed information on current wastewater programs, please contact Mr. Istvan Sindel, Secretary at the Ministry of Environment, Main Department "Protection of Natural Elements"/"Water Protection" Department, Tel: (36-1) 201-2137.

For more information on air-related projects, contact Mr. Istvan Csoknyai, Head of the Ministry of Environment Department of Protection of Natural Elements/Air Protection and Noise Control, Tel: (36-1) 201-4019.

For more details on the Varpalota region industrial subprogram, the asbestos program, and the pollution abatement program, contact Mr. Lajos Csorba Nebb, Secretary at the Ministry of Environment Department of Environmental Development and Safety/Environmental Development, Tel: (36-1) 201-5180.

For more information on the Hungarian environmental industry development project, contact Mr. Erno Wittek; for details on the environmental management system (EMS) promotion contact Mr. Istvan Danyi, at IKIM (Ministry for Industry, Trade and Tourism), Department of Technological Policy, Tel: (36-1) 118-5180.

Additionally, a number of bilateral and multilateral projects are coordinated by the Ministry of Environment's European and International Integration Department. The major projects currently in progress are listed in Table 3.8. More details on the programs listed in Table 3.8 can be obtained from the contact persons listed in Table 3.9.

Major Sources of Information on Business Opportunities

The most frequently read environment-related magazines are Környezetvédelmi Füzetek (Environmental Protection Booklets) (OMIKK), Környezet és Fejlödés (Environment and Development) and the Környezetvédelmi és Vízugyi Értesítö (Environment and Water Protection Bulletin). Most local authorities in Hungary receive the magazine Környezetvédelem (Environmental Protection).

A much higher percentage of interviewed professionals read economic and business newspapers like Heti Világgazdaság (Weekly World Economy) and Napi Világgazdaság (Daily World Economy). However, environmental project opportunities are rarely mentioned in these publications.

Fairs and exhibitions of environmental technologies are attended by 90 percent of the interviewed respondents from the business and government sectors, and by 50 percent of respondents from the R&D sector. Respondents from the latter group participate more often in non-commercial events, such as conferences and symposia. Half of the interviewed businesspeople attend one or two events each year, and one third visit at least three fairs.

For comparison, Table 3.10 ranks information sources for business opportunities, based on a 1995 survey of 150 environmental businesses in Hungary carried out by the Regional Environmental Center.

Based on the same 1995 survey, Table 3.11 presents the main business and environmental publications read by Hungarian environmental professionals.

From the limited information received concerning the focus and approximate date of major environmental fairs in Hungary, it appears that participation in environmental fairs and exhibitions is an important, albeit not the major, source of information. Many respondents noted that they are not aware of any central register or publication listing environmental events, even though such a register would be extremely useful for planning one's attendance of the most important events.

Table 3.13 presents the major environment-related fairs in Hungary. In addition, Table 3.14 lists a number of other fairs, mainly those with a regional focus and which have an environmental component.

Public Procurement Act

The area is regulated by Act XI. 1995 on Public Procurement. Partial regulations in the field in Hungary have been in force since November 1, 1995, with comprehensive regulations made effective from January 1, 1996. According to the Act, public investments above a specified value made by the national government and local authorities are subject to a tender procedure. The provisions apply to governmental bodies and local authorities, to associations created by these bodies, as well as to public institutions, public foundations and public utilities. Subject to the public procurement process are acquisitions of products and services, and construction investments.

The specific investment values above which public procurement procedure and tendering become mandatory are determined annually. In 1996, the following limits were applicable:

• HUF 10 million (approx. USD 60,000) for product purchases
• HUF 20 million (approx. USD 120,000) for construction investments
• HUF 5 million (approx. USD 30,000) for construction planning (blueprint)

Both tender announcements and the results of the bidding have to be published in the Közbeszerzési Értesítö (Public Procurement Bulletin). Regular media receive and can publish information concerning tenders only after they have been advertised in the Bulletin.

The tender procedure can be open, closed, or negotiable. Generally, open tenders are the preferred method - the latter two can only be used in cases specified by the Act. Announcement of the project in the Public Procurement Bulletin is the first step in the open tender procedure. The content of the announcement is regulated by law, and should include: documentation required for application, detailed terms of reference, a technical description of the project, and bidding deadlines. After the contract has been awarded, the decision is published in the Public Procurement Bulletin.

The Hungarian Parliament has enacted two additional pieces of legislation related to public procurement:

• 1/1996. (II.7.) KTM rendelet: detailed technical requirements for announcements of construction investments subject to public procurement;
• 125/1996. (VII.24.) KORM. rendelet: detailed rules of public procurement applicable to public institutions financed from the national budget.

Important Contact Points for Environmental Project Opportunities

Sources of Information on Available Environmental Technologies

Based on the survey interviews, the most common means of gathering information prior to purchase of environmental technologies include, in order of significance:

• personal and professional relations
• industry associations
• fairs and exhibitions
• journals and catalogues
• via the foreign owner or parent company
• company contact
• professional meetings, discussions, and conferences
• references
• through chambers of commerce
• assistance from environmental inspectorates

As with the situation with information about project opportunities, when purchasing environmental technologies, most domestic Hungarian firms strongly rely on personal contacts, which are the primary source of information. In contrast, foreign firms and joint-ventures mostly depend on information provided by the parent company or the foreign partner.