Chapter 1: Regional Overview

(continued)

1.3 Information Channels for Business Opportunities

One of the most critical factors behind successfully entering the environmental technology market in Eastern Europe is timely access to information for project opportunities. The findings of the survey indicate, however, that there are no effective formal channels for information about opportunities. Interviewed experts were not aware of any central body or organization collecting information on environmental business opportunities. Personal and professional contacts, participation in environmental fairs, and business and environmental publications are among the primary sources of information used.

Governmental organizations, R&D institutes, and professional associations, etc. generally do not seem to be regarded a useful source. There are no institutions or clearinghouses collecting information about environmental business opportunities. It was often noted that ministries of environment should play a more important role in providing information on project opportunities than they do at present. The majority of businesses expressed disappointment with the inefficiency and changing structure of ministries.

Additional sources included sporadic assistance from governmental agencies and local authorities, annual environmental reports prepared by regional administrations, a "black list" of companies declared particularly damaging to the environment, and the media.

For comparison, Table 1.4 presents the breakdown of major information sources for business opportunities, based on a 1995 survey of about 150 environmental businesses in each of the surveyed countries, carried out by the Regional Environmental Center. Personal and professional contacts are by far the major information channel, followed by participation in trade shows, fairs, and conferences. Daily press, and business and environmental publications were also frequently indicated as a useful source.

TABLE 1.4: MAJOR SOURCES OF INFORMATION FOR BUSINESS OPPORTUNITIES
Source of Information	Czech Republic	Hungary	Poland	Slovakia	Slovenia	Average

Personal contacts	96%	91%	98%	94%	96%	95%
Professional contacts	64%	92%	85%	88%	n.a.	82%
Trade shows and fairs	72%	53%	91%	73%	61%	70%
Daily newspapers	61%	62%	84%	76%	61%	69%
Conference attendance	58%	69%	81%	69%	57%	67%
Business publications	59%	59%	77%	69%	36%	60%
Environmental publications	55%	66%	83%	51%	49%	61%
Mailing lists	68%	34%	65%	70%	57%	59%
Professional associations	32%	84%	53%	49%	36%	51%
Environmental ministry	34%	42%	31%	51%	70%	46%
Local and regional governments	6%	14%	59%	47%	54%	36%
Chambers of commerce	11%	32%	24%	34%	43%	29%
Source: REC report "Emerging Environmental Market" 1995 and 1997

Major Publications

Based on the above survey, the main environmental and business publications read by environmental professionals include those listed in Table 1.5.

TABLE 1.5: MAJOR ENVIRONMENTAL OR BUSINESS PUBLICATIONS AND READERSHIP (%)
Czech Republic	Hospodarsky Noviny (69%) Ekonom (32%) Odpady (22%) EKO Journal (16%) Profit (15%)
Hungary	HVG (35%) Kornyezetvedelmi Fuzetek (28%) Napi Vilaggazdasag (28%) Cegvezetes (15%) Kornyezet es Fejlodes (13%)
Poland	Gaz, Woda, and Technika Sanitarna (43%) Ochrona Srodowiska (23%) Aura (20%) Ekopartner (18%) Ochrona Powietrza (13%)
Slovakia	Hospodarsky Noviny (50%) Trend (38%) Ekonomicky a Prany Poradca (36%) Profit (19%) Odpady (14%)
Slovenia	Gospodarski Vestnik (36%) Uradni List RS (19%) Okolje (16%) Gospodarjenje z Odpadki (13%) Manager (9%)
Source: REC report "Emerging Environmental Market" 1995 and 1997

Information about Available Environmental Technologies

Purchasing environmental technologies does not pose any significant problem because of the wide range of products available on the market. In the opinion of many respondents, the environmental technology market is in fact saturated.

The major ways of gathering information prior to buying environmental technologies include personal and professional relations, which are especially important where previous contacts with a supplier have been established. Another significant source was participation in fairs and exhibitions, brochures and leaflets distributed at trade shows, and catalogues and directories purchased during shows, fairs and conferences. Additionally, representatives of domestic and foreign companies often visit potential clients in person, or contact them by mail, offering products and services.

Industry associations, and information from the foreign owner or a parent company appear another, albeit less common, way to obtain information prior to purchasing environmental technologies. Some companies create their own rudimentary information databases.

Finally, information provided in different specialized journals, or information obtained at fairs in other countries were sometimes used.

Major Trade Fairs

Environmental fairs play an important role as a source of information. Table 1.6 presents those major environment-related trade events held regularly. There is a general trend among environmental firms to reduce the number of exhibitions they participate in, and only to take part in the larger ones, which attract more visitors. In the future, the number of fairs, shows, and conferences is expected to decrease.

TABLE 1.6: MAJOR ENVIRONMENT-RELATED TRADE EVENTS
Country	Name of Fair	Approximate Date

Czech Republic	Envirbrno, Brno International Engineering Fair, Brno	October/November September
Hungary	Budapest International Fair Kommunal Expo, Budapest	September June
Poland	Poleko, Poznan Wod-Kan, Bydgoszcz International Poznan Fair, Poznan	November April/May June
Slovakia	Komunal, Zilina Aqua, Trencin Racioenergia, Bratislava	April June May
Slovenia	EKO sejem, Celje Tehnika za Okolje, Ljubljana	March (biannual) October (biannual)
Note: All events held annually unless otherwise specified.

For a potential participant, it is advisable to carefully review planned events with an experienced local advisor, and, having considered the costs and benefits of taking part, to focus on those events which offer the best return on the required effort and resources.

Public Procurement Regulations and Tendering

Each country has recently enacted public procurement legislation that requires the formal announcement of tenders for all planned acquisitions involving the use of public money. A tender announcement, including project specifications, selection criteria, and deadlines, must be published in an official public procurement bulletin. Table 1.7 lists these sources.

TABLE 1.7: PUBLIC PROCUREMENT BULLETINS
Country	Year Procurement Law Adopted	Official Tender Bulletin

Czech Republic	1996	Obchodni Vestnik (Commercial Bulletin)
Hungary	1995	Kozbeszerzesi Ertesito (Public Procurement Bulletin)
Poland	1996	Biuletyn Zamowien Publicznych (Bulletin of Public Procurement)
Slovakia	1996	Obchodny Vestnik (Commercial Bulletin of the Slovak Republic)
Slovenia	1996	Uradni list RS (Official Gazette of the Republic of Slovenia)

The above sources of information will play an increasingly important role for news on upcoming projects. However, at this point, most experts were skeptical as to their usefulness as an information source. In practice, under the current rules, deadlines can be set too early after tender announcement, forcing potential bidders to abandon responses unless they have advance knowledge of the project. Many opportunities are missed because they are belatedly announced or not at all.

Access to Public Information and the Right-to-Know

It is crucial for foreign companies entering the environmental technology market in Central and Eastern Europe to be aware of some specific factors restricting the flow of information. As discussed above, there is not an effective system in place in any of the countries to ensure wide and publicly available access to information. In fact, the very concept of "public information" is practically unknown.

In general, the following key factors result in poor information flow:

Scarcity of quality information - often, environmental data from the past is not available as it was not tracked properly, or may have even been a state secret;
Poor channels for dissemination - in general, official channels for information dissemination either do not exist or do not function effectively;
Lack of a "traditional" information market. Client-based services have yet to develop, while existing state-run services are ineffective;
Organizational structures of state institutions are changing frequently, and it is difficult to keep track of current addresses, phones, or even responsibilities of state organizations;
Poorly paid officials often treat information as a commodity, offering to make data available at a fee, particularly to commercial clients (despite freedom of information legislation);
Strong legacy of the chain of command system, where no information is released without a formal approval from a superior;
"Liberal approach" to deadlines and commitments;
In some cases, information flow is hampered by poor telephone communications and language skills.

Reaching CEE Environmental Professionals

Given the crucial role of personal contacts for a successful presence on the environmental technology market in the surveyed countries, the following facts concerning environmental professionals in CEE need to be underlined:

only half belong to any professional association;
even major associations do not have a membership body larger than about a fifth of the active professionals;
only one in four would refer to a business chamber;
no single environmental publication reaches the majority of respondents;
a few business publications are widely read (more than 50 percent of respondents);
two-thirds attend conferences to meet others in the field;
two-thirds participate in trade fairs and shows;
personal contacts are crucial.

Overall, for a foreign firm to compete effectively, it is almost essential to enter the market through an experienced local business partner. In most cases, the technical and environmental skills of local environmental professionals are well developed, and many firms are increasingly professional in their management and marketing approach.

REC * PUBLICATIONS * ENVIRONMENTAL TECHNOLOGY MARKET * REGIONAL OVERVIEW