Environmental Technologies Industries

Environmental Technologies Industries

Market Plans

Central and Eastern Europe Export Market Plan

II. Czech Republic

Summary of Findings
In 1995, spending on environmental protection in the Czech Republic amounted to 1.185 million USD, or 2.6% of the country's GDP. Two major environmental 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 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 600 and 700 million USD per year, with an annual growth rate of some 6%. 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 a gradual shift of focus towards small and medium 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 January 1, 2005. A significant number of projects relating to site remediation are 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 middle-sized heat generating stations from coal-burning to gas use; reconstruction of larger heating stations for the 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, 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 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/cleanup 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 cleanup 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-user 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% of respondents pointed out high product quality, while 50-60% marked “reliable and durable product”, and “user-friendly technology”. 30-35 % of respondents indicated “easy to customize and adapt for specific local needs,” while 15-20% 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% of the interviewed parties. Between 20 and 30% 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.
Knowledge of American environmental companies and their technologies available in the Czech Republic is poor. American environmental technologies are not well-known or readily available. Only a few large US firms were able to make a substantial impact on the local market, while small and medium US environmental companies and their products are hardly visible.
American products are considered reliable, durable, and of good quality. The main advantage of US environmental technologies, surprisingly, is the price, with many products cheaper than equivalents produced in Western Europe. The negative characteristics listed included long distance and delivery time for technologies, and the availability of spare parts and professional post-sale service. Another noted disadvantage was that some products are not suitable for local conditions (owing to different standards), or are not easy to adapt (e.g., to a different measurement system).

Methodology

Sources of Information Used in the Survey
The survey was primarily based on formal interviews with forty nine respondents (environmental technologyproducers,suppliers,environmental service providers, R&D institutes, universities, government bodies, and municipalities) active in environmental protection. Additional sources included information gathered from professional literature, informal contacts, and the researcher’s five year experience in the field. Sources of information are referenced throughout the text, with numbers (e.g., /34/ ) referring to the list included at the end of this chapter.
The experts interviewed for the survey were chosen so as to ensure: coverage of all environmental fields of activities (air, waste, water, etc.); representative cross-section of companies of different size (more small and medium-sized, fewer large companies); representative sample in terms of geographic distribution (more firms from Prague and other large cities, several companies from the countryside, severa1subsidiaries of foreign firms in the Czech Republic); balance between technology producers, suppliers, and environmental service providers; interviews of major environmental technology R&D centers and universities; a range of different perspectives on the subject (interviews with businesses, municipalities, Ministry of Environment, Environmental Protection Fund, other state bodies).
Profile of Respondents
The experts interviewed for the survey were chosen so as to ensure:

coverage of all environmental fields of activities (air, waste, water, etc.);
representative cross-section of companies of different size (more small and medium-sized, fewer large companies);

representative sample in terms of geographic distribution (more firms from Prague and other large cities, several companies from the countryside, several subsidiaries of foreign firms in the Czech Republic);

balance between technology producers, suppliers, and environmental service providers;
the major environmental technology R&D centers and universities were interviewed;
a range of different perspectives on the subject (interviews with businesses, municipalities, Ministry of Environment, Environmental Protection Fund, other state bodies).

Forty nine formal interviews (based on questionnaire, see Appendix) were carried out within the project. However, it is necessary to note that a few interviewed people changed their opinions during interviews, or canceled follow-up appointments. Additional interviews were carried out instead, with and without the use of questionnaires. A complete list of interviewed experts and a list of other information sources are attached in Appendix B and Appendix C.
Problems Encountered During the Survey
Interviews with companies were based on a questionnaire distributed either after an introductory telephone call and before the interview, or at the time of interview. As the questionnaire was long and detailed, with a few exceptions, it was not possible to complete it in one session. Almost all companies were interviewed in various ways several times, and follow-up calls were necessary to complete the questionnaires.
Technology producers generally were not able to answer all the questions in the questionnaire, and therefore, service providers, state environmental bodies and R&D institutes were contacted as well. The other reason for interviewing parties from various sectors was to ensure a cross-section of viewpoints. While technology suppliers tended to focus on their own products and bias their answer towards their area of activities, service providers and state bodies offered a somewhat broader perspective on major environmental issues.
Many difficulties in collecting the information resulted from the nature of questions in the questionnaire. Businesses were not willing to reveal information they considered internal or sensitive, such as business opportunities, contacts and sources, and their main environmental project activities. Some companies are also weary of market research questionnaires, or unresponsive to interviews that appear to have little direct benefit. Negative experiences with foreign companies in some environmental fields was also important.
A common trait of many businesses, as well as state bodies and R&D institutes is that since they have become revenue-oriented, they are more reluctant to share information without compensation. An interesting example was the Institute of Applied Ecology and Environmental Technology at Kostelec /68/. A good working relationship initiated in November 1996 ended abruptly as the Institute was transferred to the Faculty of Forestry of the University of Agriculture in Prague, and its organizational structure changed. As a result, the Institute refused to share any information during early 1997. Similar situations occurred in several other cases.
There were two more significant obstacles in collecting information for the survey. One was a general lack of knowledge among interviewed parties outside their areas of expertise. Many respondents were not familiar with basic environmental problems in the Czech Republic, and had difficulties addressing some sections of the questionnaire (e.g., demand for environmental technologies, major foreign competitors, experience with US technologies, etc.). Virtually none of the interviewed parties were able to answer all the questions, or even address all issues raised. A second problem was the lack of statistical data for 1996 (e.g., Total Country Spending on Environmental Technologies).
In summary, the researcher would like to suggest a modified approach to similar work in the future. It may be preferential to carry out the survey based on information available from periodicals, other professional literature, meetings with state officials, and on personal knowledge of the market. The information would then be verified and complemented by interviews among environmental firms and their clients.

Overview of the Market

The Czech Republic is a medium sized East European country. It has a population of 10.3 million, and an area of 79 thousand sq.km (30 thousand sq.mi., or approx. equivalent to the size of Maine).
Environmental policy is well developed in the Czech Republic. The ambitious 1993 national environmental policy was one of most advanced and comprehensive in Eastern Europe. However, some of the targets set under current legislation are too ambitious, and contain major inconsistencies. As a result, much of the legislation is being revised. Also, a 20% decline in GNP in recent years has pushed the environment lower on the political agenda.
Significant environmental damage was sustained in the past, especially in the mining districts of northern Bohemia and the industrial areas of northern Moravia. The construction of a nuclear power plant at Temelin, and severe air pollution in industrial and urban areas are the most frequently cited environmental problems. A major source of air pollution is the energy and power generation sector, (currently, 60% of energy generation is based on coal-fired plants). The treatment of wastewater, and water supply are also problems that need to be addressed.
Policy coordination, refinement of legislation and better enforcement, education and institutional strengthening, the development of clean technologies, and priority capital investments for air and water quality are the likely focal points for future environmental actions.Total Country Spending on Environmental Technology
Spending on environmental protection in the Czech Republic has been stable over recent years, at between 2 and 3% of GDP.
Two major environmental priorities 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. Table 2.2 shows the breakdown of total spending on the environment for 1994 and 1995.

Table 2.2: Total Country Spending on the Environment ($Millions US)

Media	1994	1995*
Air	473	670
Water	380	363
Waste	110	100
Energy	--	--
Soil reclamation/remediation	6	15
Restriction of physical factors**	23	n.a.
Total	992	1148

Source: /52, 65/ Exchange rate used: for 1994 USD 1 = CzK 28.5; for 1995 USD 1 = CzK 27,5

* Based on unofficial information from a source which has requested to remain anonymous

** 23 mln USD were spent on so called „restriction of physical factors“. This is a broad category, including noise and vibrations, radiation protection etc. Information for 1995 was not available.

The large share of water and wastewater treatment and air pollution control in environmental expenditures during the last several years is the result of two main factors:

New water protection regulations force municipalities to invest in water and wastewater treatment, and the sector has become the main recipient of municipal money invested in the environment. The trend is expected to continue in the near future (see Chapter 5 for more details). The construction of large wastewater treatment plants for cities takes several years to complete, and some of the largest projects were initiated before 1989, when the state began allocating money for such projects through direct grants or via municipalities. Even though state support has significantly decreased recently, investments started several years ago still receive state money necessary for project completion. Additionally, the construction of scores of new smaller wastewater treatment plants has been started recently.
Air pollution from large stationary sources is still considered the most important cause of environmental damage, and money is continuously allocated for air protection projects in the energy and power generation sector. Between 50 and 60% of electricity generation in the Czech Republic is still based on burning coal or lignite. The installation of desulfurization units and other equipment in the largest coal-burning power plants is under way, and this accounts for a major portion of investments in air pollution control. The state company CEZ that still owns and operates all of the largest power plants in the Czech Republic, is planning to reduce solid particle emissions by a factor of ten by the year 2000 (compared with 1992 levels). Emissions of NOx are to be reduced by half, and for carbon monoxide, by a quarter. The estimated cost of the program to the year 2000 stands at about 126 billion crowns (USD 4.4 bln).

In 1994, environmental expenditures accounted for 2.73% of the GDP (993 million USD). Table 2.3 shows how the major environmental investments (projects above 5 millions crowns, or approx. USD 175,000) were distributed and the sources of funding. Investors' own funds covered about half the investments made, with state funding accounting for about a third of the total. The share of foreign financing was low, at about 4%. Table 2.4 gives further detail on the breakdown of environmental expenditures from the state budget during 1994. /52,65/
Table 2.5 provides additional information on the market for pollution control equipment in the Czech Republic. The market is estimated at between 600 and 700 million USD per year, with an annual growth rate of some 6%. Two-thirds of the market is based on domestic production, and one-third on imports.

Table 2.3: Sources of Funding for Environmental Projects in 1994 ($Million US)

				FINANCIAL SOURCES
Media	Invoiced	Investors' Funds	Credit	State Subsidy	Foreign	Other
Water	293.72	93.61	38.63	145.61	4.15	11.72
Air	203.17	120.39	31.19	31.72	18.19	1.68
Waste	77.16	52.00	22.42	0.70	--	2.04
Remediation	2.67	0.35	0.11	2.14	--	0.07
Other	27.33	26.07	--	1.26	--	--
Total	604.05	292.42	92.35	181.43	22.34	15.51

Table 2.4: Environmental Expenditures from the State Budget in 1994 ($Million US)

Subsidies for municipal environmental investments in damaged areas	40.05
Individual regional environmental investments	31.25
Environmental investments in mining	8.40
Water management constructions	113.34
Radon protection	7.97
Water courses restoration	5.17
Svihov water dam protection	5.27
Jilov creek	0.75
Technical measures for sanitation/water protection	1.99
Environmental measures (MIT CR)	2.67
Remediation of uranium mines	22.67
Investment expenses--total	239.53
Environmental subsidies in Northern Bohemia, Sokolov	21.44
Fuel savings, alternative sources, thermal insulation	13.96
Subsidies in forestry	27.50
Environmental protection program, research (MOE CR)	5.57
Environmental damages--Russian military (MOE CR)	4.91
Food chain monitoring (MOE CR)	0.64
Accidents--water (MOE CR)	1.71
Agricultural subsidies	34.18
Collection and transportation of radioactive waste	0.88
Non-Investment expenses--total	110.78
*Total*	*350.31*

Note: The above table presents selected areas of investments from the state budget. /Source: 52/

Table 2.5: Market Size--Pollution
Control Equipment 1994-1995 ($Million US)

	1994	1995	1996
Total market size	598	640	668
Total local production	405	430	450
Total exports	7	10	12
Total imports	200	220	230
Imports from the US	13	20	30

Priority Areas for Environmental Protection

State Environmental Fund
Currently, the bulk of state financial support for environmental protection is allocated to air pollution control and water management projects. Table 2.6 examines the revenue and expenditure structure of the State Environmental Fund (SFZP), which is, and will continue to be in the future, the most important source of state financing for environmental protection. The financing role of other state bodies is diminishing.

Table 2.6: Revenues and Expenditures of the State Environmental Fund ($Millions US)

1992 Water Air Waste Soil Total

Income 46.32 29.68 1.69 7.32 85.00

Expenditure 33.09 17.88 0.42 0.40 51.79

1993

Income 54.84 39.89 13.82 18.35 126.91

Expenditure 64.00 40.63 9.72 3.16 117.5

1994

Income 34.21 86.71 15.85 18.07 157.51

Expenditure 69.95 39.58 6.25 5.07 125.76

As shown in table 2.6, more than a half of the Fund’s expenditure during the period 1992-1994 was allocated to water protection projects, and about a third to air quality projects. Interestingly, the share of the two major groups in the Fund’s expenditures is exactly the reverse of their share in national environmental expenditures. As discussed in Section 3.1, air protection activities account for more than a half of national environmental expenditures, while water and wastewater projects account for about a third.
This apparent contradiction can be explained by the fact that the proportion of state funding is much larger in water related projects, where the most frequent investors are municipalities. In contrast, in air pollution control projects (mainly those undertaken for stationary industrial sources) a high percentage of the project costs are covered by investors’ own funds. For instance, in 1995, three quarters of the Fund’s resources were allocated to municipal projects, about a fourth to businesses, and 1 - 2 % to state institutions. As for disbursement policy, allocations (grants and subsidies) covering up to 40% of the project cost are available to non-profit applicants and municipalities. Loans, covering up to 50% of the expected project cost, are an option for commercial projects. /3/
As regards geographic distribution of funds, large sums are invested in air protection projects in north Bohemia, north Moravia, and in the Greater Prague area. Air pollution control programs in the three regions include several very large projects, followed by a high number of small and medium-sized ones. The Environmental Fund usually supports only the latter category, as large air pollution projects demand considerable investments, and are often funded or co-funded from multilateral sources. In contrast, the number of supported water management projects is much higher, and projects tend to be spread throughout the country rather than concentrated in a specific area /3/.
Even though the Environmental Fund will remain the major source of state financing in the near future, it is worth noting that, in 1996, loans accounted for 45% of disbursements, while grants accounted for 55%. There are strong indications that the proportion will be moving towards a higher level of loans, so as to enable the Fund to reinvest money in other environmental projects. As explained by Mr. Kuzel, an official at the Fund, the key reason behind this approach is to increase the amount of money available for environmental protection. It is also expected that the Funds’ activities will be more oriented towards the industrial sector. /3/
Table 2.7 presents the income structure of the State Environmental Fund. Environmental fees and non-compliance fines constitute a substantial revenue source for the Fund, accounting for about two-thirds of total revenues. In 1994, the ratio between fees and fines collected was approximately 9 to 1, but, according to recent information, fines now account for only between 1% and 2 % of Fund’s revenues /3/.

Table 2.7: Breakdown of Income for the State Environmental Fund in 1994 ($Million US)

Item	Sum	Loan Repayment
Wastewater discharge fees	29.16
Groundwater intake fees	1.51
Fines	0.39
Interest from loans	0.59
Donations	0.05
Water--total	31.70	2.53
Fees for removing land from agriculture fund	17.22
Interest from loans	0.01
Fines	0.09
Land --total	17.31	0.76
Freons	1.98
Clean Air Program payments	69.37
Air pollution fees	45.18
Fines	0.31
Interest from loans	0.87
Air--total	83.39	3.32
Waste disposal fees	14.94
Fines	0.41
Interest from loans	0.03
Waste--total	15.38	0.47
Other	2.65
Total Income	150.44	7.08
Total Income (including loan repayments)	157.51

Note: Not all collected environmental fees are channeled to the Fund.

It is worth noting here that the US EXIM Bank offered the Czech Environmental Fund a loan for local environmental projects, but was declined, as ...“it was similar to other offers the Fund had received. These are low-interest loans, but the offers are usually declined in the end as they are not as advantageous as they previously appeared.” (this information was obtained from an official at the Fund who wished to remain anonymous.) Generally, the Czech government is against foreign loans, so as to avoid being forced to meet the conditions set by a foreign party. This position has been consistent for the last five years, and the Czech government has reiterated this policy clearly during several international political and economic summits.
Specific Priorities
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 air pollution sources, as major problems at large plans will have by that time been addressed. All existing power plants, by December 31, 1998, must meet stricter air emission limits, already applicable to new facilities.
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 on January 1st, 2005. It is important to note that, even though many municipalities do not have sufficient funding to invest in wastewater treatment, in the last five years, construction of 150 wastewater treatment plants was completed, including 20 new plants opened in 1994. Overall, wastewater treatment is one of the most dynamically developing sectors of the environmental market in the Czech Republic /64, 65/.
Currently, about 186 million tons of waste are produced annually in the Czech Republic; 11% of this amount is hazardous waste, 40.5% special waste, and 48.5% is classified as other waste /52/. During the past four years, many waste management and disposal facilities have been constructed throughout the country. Projects have tended to focus on landfill construction, production of waste containers, and on incinerators. The current level of recycling is low, with only a few firms active in the field. The use of economic instruments (tax breaks, subsidies, other incentives) in the sector is limited, although the situation is expected to improve with stricter environmental enforcement and new legislation, currently under preparation. Potential future priorities include package reuse/recycling, waste minimization processes, effective technologies for waste separation, and environment-friendly technologies for waste disposal /3, 69/.
Waste incineration is no longer considered a preferred option in the Czech Republic. With very few exceptions, the Environmental Fund has stopped support for incineration facilities. The government is planning to build an incinerator for PCB disposal (see chapter 5 for more details), but the project is to be financed from the state budget, not from the Fund.
Interestingly, the Environmental Fund has also stopped support for landfill construction, and for environment-friendly conversion of vehicles from diesel to hydrocarbon gas (e.g., buses for public transport in the heavily polluted town of Usti nad Labem in north Bohemia). The rationale behind discontinuing the support was that the activities are already market-driven, and state support is no longer required /3/.
A significant number of projects relating to site remediation and decontamination (connected with liability issues) are under way, although currently large expenditures are expected to decline around the year 2000 /74/.
In 1995, as an exception, the Environmental Fund provided support for a one-time study of alternative energy sources such as small water turbines, wind mills, energy recovery units, and heat pumps. This shows the importance placed upon alternative energy programs, as the Fund generally does not support project studies.

Project Opportunities

Major Environmental Problems
Several universal issues that apply to most environmental sectors and influence project opportunities were frequently cited by respondents. The most common problems include: lack of capital for environmental projects, incomplete or changing legislation and inconsistent enforcement, and lack of interest in environmental management systems, and other environmental compliance programs.
Table 2.8 presents the major environmental problems the survey respondents expect to face in the coming years. The information is based on answers received from respondents to the question on major environmental problems in the Czech Republic. Interestingly, many respondents interpreted the term “environmental problem” in a broad way, and included not only specific environmental issues (e.g., “contamination of groundwater and soil in refineries in Ostrava, Pardubice etc.”) but also mentioned system issues with an impact on solving environmental problems (e.g., low prices for landfill waste disposal, low financing of environmental activities etc.). It is important to note that both businesses and state bodies only responded according to the environmental fields they were active in.

Table 2.8: Major Environmental Problems in the Czech Republic

Category	Problem description and expected duration	Geographic Location
Air	Meeting emission limits at industrial facilities, next 2 years	CR
	Conversion to natural gas, next 20 years	CR
	Air emission measurements and compliance monitoring, next 20 years	CR
	Air emissions from coal combustion, next 50 years	CR
Water	Obtaining modern technologies for new municipal wastewater treatment plants, next 15 years	CR
	Equipment supply for modernization of currently used municipal wastewater treatment plants, next 15 years	CR
	Obtaining modern technologies for new industrial wastewater treatment plants, next 10 years	CR
	Equipment supply for modernization of currently used industrial wastewater treatment plants, next 10 years	CR
	Contamination of groundwater and soil in refineries	Ostrava, Pardubice, Kolin, Litvinov
	Groundwater and soil contamination, next 14 years	CR
	New water law, next 2 years	CR
	Groundwater quality protection and restoration, next 10 years	CR
	New drinking water well construction and old drinking well restoration, next 24 years	CR
	Groundwater and soil contamination caused by leakages from sewage systems	Industrial areas
Waste	New waste legislation, 1997	CR
	Rapid rise in waste disposal costs, next few years	CR
	Violation of regulations in order to reduce fees, next few years	CR
	Dumping policy of foreign firms, next few years	CR
	Lobbying by waste disposal firms	CR
	Unsuitable storage of hazardous waste	Ostrava, Pardubice, Usti nad Labem
	Insufficient thickness of sealing liners in landfills	CR
	Waste Law amendment, next 5 years	CR
	Implementation of waste minimization programs in industrial facilities, next 5 years	CR
	Unregistered landfills	Pilsen
	Old landfill remediation	Ledce
	Waste collection from small operations	Central Bohemia
	Disposal of wastes containing PCBs	CR
	Low prices for waste disposal in a landfill	CR
	Used motor oil disposal (from population and small operations)	CR
	High price of hazardous waste incineration - low cost of illegal disposal (poor enforcement)	CR
	Financing of waste bins for industrial zones	CR
	Low financial support for recycling plastic waste	CR
	Industrial waste separation and recording, next 2 years	CR
	Decreasing negative impact of hazardous waste on environment, next 2 years	CR
	Selection of suitable equipment for waste separation, next 3 years	CR
	Optimization of waste transport equipment and techniques, next 3 years	CR
	Introducing separated waste collection systems, next 5 years	CR
Energy	Coke production, next 30 years	Ostrava
Noise and Vibration	none identified	CR
Other	Nature devastation by mining and chemical industries, next 24 years	CR
	Efficient soil decontamination by dehtophenols	Ostrava
	Implementation of the program for marking environmental friendly products	CR
	Harmonizing Czech environmental legislation with that of the EU, next 6 years	CR
	Risk monitoring of operations and sites, next 5 years	CR
	Financing environmental education, laboratory equipment at universities	CR
	Car traffic, transportation	Pilsen
	Stray animals	Pilsen
	Low level of financing for environmental activities	CR
	Environmental and hydrogeological maps compilation, until 1998	Karnina
	Remediation work at heat and energy producing facilities, and at steel works facilities, next 5 years	Ostrava
	Study of the impact of the new highway network, next 1-2 years	CR
	Study of the impact of the new railroad network, next 1-2 years	CR
	Past environmental damages - unsystematic approach of state authorities	CR
	Research financing - bioindication, biodiagnosis, environmental monitoring	CR
	Introducing legal recycling fees	CR
	Lining of mineral water wells, next 14 years	CR
	Drainage system pilot projects for building foundations, next 9 years	CR
	Engineering and geological surveys for landfills and wastewater treatment plants, next 14 years	CR
	Implementing EMS in companies (ISO 14000, EMAS 1836), next 7-10 years	CR

Overall, many respondents stated they were not familiar with the most serious environmental issues in the Czech Republic (or they considered them in very general terms). Respondents also did not want to indicate major environmental problems in order to limit potential competition in their fields of activity. This is also reflected by the fact that specific locations were indicated only rarely.
Air
Currently, air pollution control projects focus on fuel conversion (switching 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. Overall, however, state initiatives to increase gas usage have until now had only a marginal effect due to the lack of funding (e.g., Prague, north Bohemia) /67, 75, other municipalities.
On-site measurement of air emissions is not yet a pressing issue, as legislation does not force polluters to install devices for continuous monitoring. Also, small stationary sources of pollution are not regulated at this time /69, 67/.
Air emissions from mobile sources have a strong negative impact on air quality, and aggravate local air pollution problems, especially in large cities. For instance, Prague introduced a partial vehicle ban, and some towns in north Bohemia experience heavy pollution from traffic as well. Car service checks are not stringent, and the technical state of the country’s vehicle fleet is poor. Even if the Czech Republic were to introduce exhaust emissions controls and tried to ensure that fuels and regulations conformed with EU standards, enforcement would be difficult. During fall 1996, the government extended the permit for the import of used cars that do not meet the strictest Euro-limits II emission standards /legislation, 67/.
Water
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. Upgrading current systems may be hampered by the limited capacity of existing plants, and financial problems. Nonetheless, construction and modernization of treatment plants will continue over the next several years.
Contamination of groundwater resources (especially by oil-based substances, organic solvents, and heavy metals) is a potential threat that can, and should be, reduced in some areas (e.g., former military bases, gas stations). However, as the Czech Republic is heavily industrialized, with a number of sites having already suffered from environmental negligence, the danger of groundwater contamination is always present.
Problems with poor quality of potable water are acute in some regions of the country, where up to 90% of wells provide water that does not meet the standards for potable water. However, country-wide, the quality of potable water from public water supply systems (85.5 % of population) is generally acceptable /67, 52, 76/.
Waste
Many waste management problems listed in Table 2.8 are caused by current legislation and/or its poor enforcement. Additionally, the sector lacks any significant state support (e.g., grants, tax relief, incentives) aimed at increasing waste minimization practices and environment-friendly ways of waste disposal. /69/
Waste management practices will be significantly affected by the new Waste Law which should be introduced in 1997 (unlikely to come into force before July 1st, 1997). The new waste legislation will address the most critical issues in waste management, including waste categorization, waste recycling, disposal of packaging waste, distribution of waste disposal fees, and other issues.
Energy
Few project opportunities in the energy sector were mentioned by interviewed parties. This is mainly because increasing energy efficiency and energy savings are not currently a high priority in the Czech Republic. For instance, energy consumption in 1996 is likely to exceed the forecasted energy consumption for the year 2000. Also, few environmental firms are accustomed to considering energy issues as a part of the environmental sector.
Priority areas in the sector include the conversion of most of the current small and middle-sized heating stations from coal-burning to gas use; the reconstruction of larger heating stations in order to also use them for electricity generation; and modernization and construction of new small energy sources. The latter group includes the implementation of water hydroturbines, solar energy use (on a small scale), landfill gas utilization, wind mills, and other energy sources.
As fees for energy (electricity, heat, gas, other fuels) steadily rise, energy saving issues should become more important within the forthcoming two or three years /67, 69, 3, 70/.
Noise and Vibration
Noise and vibration affecting general public do not seem to a major area of interest in the Czech Republic - not a single respondent mentioned possible project opportunities. Generally, required measures are costly, and there are other more pressing priorities for cash-strapped municipalities. Noise-related problems play a significant role only on a local scale (e.g., Greater Prague construction of highways and high-speed roads). Small municipalities around Prague (vicinity of highway D1, outer belt, planned highway to the south) and Pilsen (D5 highway) may be the first ones to address traffic-related noise problems /67/.
Noise and vibration issues in industrial companies are generally addressed on an individual basis, and were not perceived as a major project opportunity area.
Significant Environmental Projects in Progress
Respondents were clearly reluctant to reveal information about major environmental projects in progress. Generally, on-going projects mentioned by respondents and identified from other sources can be grouped as follows:
Current projects, with a duration of three or more years:

conversion of coal-fired energy plants to gas-fired (medium-sized and small heating stations in major towns, especially in heavily polluted areas, and individual family houses in residential districts); and co-generation in large heating stations (big towns, some large industrial companies) /69, 70, other sources/;
construction of new and modernization of existing wastewater treatment plants throughout the country /2, 3, 49,/ all respondents active in water management/;
remediation of contaminated sites (throughout the Czech Republic, mainly at large enterprises and former military bases) /74/.

Projects of larger duration, and introduced on a smaller scale:

waste recycling technologies;
waste minimization;
energy saving measures;
alternative energy sources;
introduction of environmental management systems (ISO 14000 and EMAS).

Most of the above activities are market-driven, with limited state support. A majority of interviewed parties who were willing to answer the question on current projects in progress gave examples that belonged to the above groups. Some concrete examples of on-going projects mentioned in interviews included:

remediation work at the former Soviet military base at Milovice - Jirice /20, 41/;
remediation work at the Trebovice power plant, and at the Nova Hut steel works /4/;
site investigation for newly designed highways, and for an express railway corridor through the Czech Republic /40/;
investigation of ecosystem changes in the Krusne Hory mountains /43/;
groundwater and soil clean-up at the large chemical plant Chemopetrol Litvinov /4, 14, 20/;
construction and/or modernization of wastewater treatment plants on the Vltava and the Elbe rivers (Decin, Usti nad Labem, Melnik) /7, 22/;
introduction of environmental management systems (rare, but throughout the country)/13, 30/;
waste minimization programs (rare, but throughout the country) /8, 32, 39/;
creation of a comprehensive solid waste management system in the town of Ostrava /21/.

It is important to note that, in answering the question on ongoing projects, highly specialized firms and some state bodies and R&D institutions tended to stress the need for projects relating to their specific field of activities or interest, rather than to focus on major environmental problems in the Czech Republic which would better reflect actual market needs.

Table 2.9: Major Sources of Information on Environmental Business Opportunities

Source of Information	Respondents (%)
Personal contacts	96
Trade shows and fairs	72
Mailing lists	68
Professional contacts	64
Daily newspapers	61
Business publications	59
Conference attendance	58
Environmental publications	55
Fax	53
Environmental ministry	34
Professional associations	32
Academic associations	17
Ministry of industry/trade	13
Chambers of commerce	11
Other ministries	11
Other	10
Email	7
Local and regional government	6

Source: REC Report "Emerging Environmental Market" 1995

Major Sources of Information on Business Opportunities
Personal contacts were by far the most frequently cited source for information on business opportunities. With very few exceptions, respondents from both businesses and R&D institutes use personal contacts as the major source of information, up to the point that approximately two thirds of interviewed parties stated they obtain all their important information exclusively from personal contacts.
Other sources included referrals from associates, and to a smaller extent, trade fairs and exhibitions, and information obtained from local authorities. Daily press and periodicals were not considered by respondents as an effective information channel.
Interestingly, about a quarter of interviewed businesses expressed a strong need for a periodical presenting environmental business opportunities. The weekly Obchodni Vestnik, was to have announced public tenders; however, as many opportunities are missed because they are announced late or not at all, the Vestnik is not considered useful. Other periodicals were considered helpful in presenting a general picture of the environment, but they do not include information about business opportunities. The periodicals mentioned included Planeta, Odpady, Eko-magazin, and Vestnik MOE.
It was often noted that the Ministry of Environment should play a more important role in providing information on project opportunities than it does at present. The majority of businesses expressed frustration with the inefficiency and lack of clear structure within the Ministry (e.g., changes in departmental responsibilities, structure, changes of posts, etc.).
For comparison, Table 2.9 presents the breakdown of major information sources based on a 1995 survey of 150 environmental businesses in the Czech Republic carried out by the Regional Environmental Center.

Table 2.10: Main Business and Environmental Publications

Publication	Respondents (%)
Hospodarsky Noviny	69
Ekonom	32
Odpady	22
EKO Journal	16
Profit	15
Vodni Hospodarstvi	14
Planeta	9

Source: REC Report "Emerging Environmental Market" 1995

The findings of this survey correspond well with the results presented in Table 2.9, where personal and/or professional contacts (including conference and trade show attendance) are among the major cited sources of information, followed by trade shows and fairs, and business and environmental publications. Table 2.10 presents the main business and environmental publications from the same survey.
Interestingly, a quarter of respondents stated that they did not read any environment-related publications.
The role of environmental and trade associations in the Czech Republic is very limited - half of respondents did not belong to any association.
Table 2.11 presents the most important environmental trade fairs in the Czech Republic.

Table 2.11: Important Environmental Fairs in the Czech Republic

Name of Fair	City	Approximate Date	Focus
HYDROTECH	Hradec Kralove	Annually in March	Waste management
PROFUTURUM	Ostrava	Annually in March	Waste management
COMMA	Prague	Annually in March	Municipal technologies
RECYCLING	Prague	Annually in March	Environmental protection, Waste recycling
INTERGAS	Prague	Annually in April	Gas techniques and equipment
Stavebni veletr	Brno	Annually in April, November	Construction
Dny nove techniky	Olomouc	Annually in April	Wastewater treatment
TEPLOO	Ostrava	Annually in April	Heating materials, air systems, heating
ENERGO BRNO	Brno	Annually in May	Energy saving equipment
Vodarenska vystava	Pilsen	Annually in May/June	Water
Vodarenska vystava	Litomerice	Annually in May/June	Water
SOVAK	Pilsen	Annually in June	Water and wastewater treatment
EKOPRAHA	Prague	Annually in June	All environmental sectors
VODKA	Pilsen	Annually in June	Sewage systems
For Arch	Prague	Annually in September	Construction, design
MSVB	Brno	Annually in September	Technology - generally
INVEX Brno	Brno	Annually in October	Computers, Software
PRAGOTHERM	Prague	Annually in October	Heating and air-conditioning
ENVIBRNO	Brno	Annually in October/November	All environmental sectors
AQUATHERM	Prague	Annually in November	Water, heating systems, ventilation
AQUA	Pribram	Annually in November	Water treatment
JOGA	Luhacovice	Annually in November	Municipal waste

Note: Highlighted in bold are the most important fairs

The majority of respondents commented that the number of environmental fairs and shows is excessive. In the past few years, many agencies organizing trade shows have increased the number and/or frequency of environment-related events, as they found it profitable. However, some exhibitors, both foreign and domestic, are currently re-evaluating their participation in fairs, because repeated presence may not be cost effective. For instance, Envibrno, one of the biggest and most important fairs in the country, has experienced a decline in the number of exhibitors and visitors since it became an annual event. Before 1994, the Envibrno fair was held every two years, and numbers of visitors, references from participants, and the number of concluded contracts were higher. In 1995 and 1996, many exhibitors were reluctant to participate every year because the high cost of participation was not justified by the achieved gains /10, 16, 19, 27, 28/.
There is a general trend among environmental firms to reduce the number of exhibitions they participate in, and to only take part in the larger ones which attract more visitors. Several large environmental technology producers expressed interest in the International Engineering Fair at Brno, the largest fair in the Czech Republic, with a 39-year tradition. The Fair covers most industries and in fact, is one of the largest of its kind in Central Europe. The range of products presented is not limited to the environment /27, 28/.
For the foreseeable future, the number of fairs, shows, and conferences is expected to decrease. Some exhibitions will be canceled as they are no longer found to be profitable. For a potential foreign participant, it is advisable to carefully review existing events in the Czech Republic with an experienced local advisor and to focus on those events which offer the best return on the required effort and resources.
Public Procurement Law and the Tender Process
The Czech Republic recently passed the Public Procurement Law, No. 229/1996, effective retroacitvely from Jan 1, 1995. The tender mechanism prescribed by the Law can be a source of information for business opportunities relating to projects based on the use of public financing.
The law applies to the acquisition of goods, construction, and services by all government agencies, including local governments, associations, and other bodies which use state financial means. The law also applies to all private legal entities and individuals using state funds for the acquisition of goods, construction, and services.
The law requires the formal announcement of tenders for all planned acquisitions, with the following exceptions:

financial support of R&D activities from the state budget;
tenders the subject of which is protected according to the Law on Authorship, and laws on industrial and intellectual property rights;
acquisitions undertaken by Czech embassies abroad;
acquisitions related to official visits of representatives of foreign states and governments in the Czech Republic.

A tender must be announced, if the price of a planned acquisition of technologies and/or of real estate (with the exception of property lease) is higher than 20 million crowns (727,000 USD). In all other cases the tender must be called if the price is higher than 5 million crowns (182,000 USD). All prices quoted are without the VAT tax of approx. 22%.
If the price of a planned acquisition (technologies and/or real estate, with the exception of a property lease) is higher than 2.5 million crowns (91,000 USD), and in all other cases if the price is higher than 500,000 crowns (18,000 USD), at least 5 competitors (bidding parties) must be approached.
Where the price of a planned acquisition is higher than 100,000 crowns (3,600 USD) and lower than 2.5 million crowns (91,000 USD), and in all other cases with a value below 500,000 crowns (18,000 USD), at least 3 competitors must be approached. Finally, if the value of a planned acquisition is below 100,000 crowns (3,600 USD), the acquisition may be carried out directly without tender.
A tender must be announced in Obchodni Vestnik (official weekly), and should include project specifications, selection criteria, and deadlines. Obchodni Vestnik is available at Economia a.s. /84/. Additionally, the most significant tenders are announced in the daily Hospodarsky Noviny. An annual overview of major planned projects is published in the Catalogue of Municipal and Regional Projects for Tenders, published by the Ministry of Economy.
Both local and foreign legal entities and individuals can generally participate in a tender. Sealed bids are delivered either personally or by mail. No competitor may submit more than one bid. The deadline for submitting bids may vary but the time offered for proposal preparation may not be shorter than 36 calendar days from the date of the announcement in Obchodni Vestnik.
The body that announces the tender may also specify other conditions, for example, that local, or foreign participation is restricted. Even if a tender is open to both local and foreign competitors, local bidders are preferred if the price offered is the same or up to 10 % higher than the price offered by foreign competitors, when the products offered are of a similar technological quality. Interestingly, if a joint bid is submitted by a foreign and local entity, it is considered a foreign entity bid.
NOTE: The Public Procurement Law is long and complicated. For interested parties, it is recommended to obtain a professional translation of the whole document.

Table 2.12: Useful Contact Points for Environmental Project Opportunities

Ministry of Environment	Local Administrations throughout the Czech Republic
Vrsovicka 65, 100 10 Praha 10	Czech Environment Management Center (CEMC)
Ms. Orlikova, tel: 02/ 6712 2218, fax: 02/ 6731 0490	Jevanska 12, 100 00 Praha 10
	Mr. Vyhnanek, tel: 02/ 628 0957-8, fax: 02/ 775 869
State Environmental Fund (SFZP)
K Moravine 7, 190 00 Praha 9	Czech Business Council for Sustainable Development
Mr. Chytil, tel 02/ 6602 3111, fax: 02/ 684 2150	Jevanska 12, 100 00 Praha 10
	Dr. Petr Horacek tel. 02/628 0957-9, fax 02/775 869
National Property Fund
Rasinivo nabr. 42, 120 61 Praha 2	Association of the Waste Industry
Mr. Zika, tel: 02/ 2491 1907, fax: 02/ 291 582	Velfinova 4, 160 75 Praha 6
	Ing. Jozef Vancura tel. 02/2431 0368, fax 02/ 324 692
Czech Environmental Institute
Udernicka 1931, 149 00 Praha 4	Association of Producers of Environmental Systems (APES)
Mr. Zdenek Strnad, tel: 02/ 268 545, fax: 02/ 767 832	Kotkova ul. 6, 706 02 Ostrava
	Mr. Lubomir Latal, tel 069/ 2926-1180, fax: 069/ 543 80
Engineering Testing Institute
Hudcova 56b, 621 00 Brno	Economic Chamber of the Czech Republic
Mr. Striz, tel. 05/ 4132 1204, fax: 05/ 4121 1225	Argentinska 39, 170 05 Praha 7
	Tel. 02 / 6671 -1112 or -0808, fax. 02 / 6671 0805
Ministry of Industry and Trade
Na Frantisku 32, 110 15 Praha 1	Confederation of Chemical Industries of CR
Ms. Christianova, tel: 02/2485 3175	Kodanska 46, 100 00 Praha 10
	Mr. Pavel Karas tel. 02/6715 4133, fax. 02/ 6715 4130
Ministry of Economy
Staromestske nam. 6, 110 01 Praha 1	Environmental Experts Registry
Ms. Pisova, tel: 02/ 2489 7476, fax: 02/ 231 3227	Ministry of Environment, Dept of EIA
	Ing. Vaclav Oblouk tel. 02/ 6712 2442, fax. 02/ 6731 0308
Ministry of Transportation
Nabr. L. Svobody 12, 110 00 Praha 1
Tel: 02/ 2303 1111

Czech Institute for Environmental Protection (CIZP)
Na brehu 267, 190 00 Praha 9
Ms. Seborova, tel. 02/ 683 4875, fax: 02/ 683 4847

Useful Contact Points
Table 2.12 provides useful contacts for environmental project opportunities.
As already described, personal and professional contacts, environmental fairs, and business and environmental publications are primary sources of information for project opportunities in the Czech Republic. There are no formal information channels. As a result, the organizations listed in Table 4.3d cannot be classified as reliable, permanent sources of information. Nearly all interviewed businesses did not consider them to be an important source, and many respondents stated that they did not use these sources at all.
While the Ministry of Environment is not considered to be a major information provider, it may serve as a good source (although willingness to provide information varies from department to department). Some officials are very helpful, while others are only capable of referring an applicant to some other department or state body (e.g., to the Czech Environmental Institute /72/). The assistance that can be expected from other ministries is more limited, although for instance the Ministry of Industry and Trade has a very helpful environmental department.
In the first few years following the socio-political changes in the Czech Republic, most foreign environmental companies tried to approach ministries as the first source of information. In most cases, the representatives were not able to obtain the information that they were looking for. Many ministerial officials stated they take part in so many meetings with foreign firms that they cannot find time for their own work.
Overall, relying on governmental contacts as the sole information source for project opportunities is not a recommended method. While almost every ministry has a designated person responsible for environmental issues within the ministry�s scope of activity, in reality, they often do not offer any environmental projects. The Ministry of Agriculture, and Ministry of Education are good examples of this situation.
Listed below are the most relevant points of contact, with a short description. The number given in slashes refers to the full contact information provided in the Appendix section.
Useful Governmental Contacts:

Ministry of Defense; Mr. Bukva, Chief of the Environment; clean-up of former military bases, other environmental issues /78/ tel. (02) 2021 2503, (02) 2021 2505;
Ministry of Agriculture, Mr. Fantys, Chief of the Dept. of Ecology; summaries, overall statistics on environmental issues /79/ tel. (02) 2181 2377 (Note: neither this Department nor the Ministry manage environmental projects, however, the Ministry may provide guarantees on environmental projects);
Ministry of Industry and Trade; Ms Sticha; environmental technology research projects; a list of projects for 1997 /77/ tel. (02) 2485 1111;
Ministry of Environment; Mr. Dlouhy, Economic Dept.; projects under the Program for Care of the Environment /2/ tel. (02) 672 853.

Additionally, information on some environmental projects may be available from specific departments of the Ministry of Environment. Contact points include:

Department of Water Protection; Mr. Redinger /80/ tel. (02) 6712 2998
Department of Air Protection; Mr. Jilek, tel. (02) 6712 2671, Mr. Weiss /81/ tel. (02) 6712 2240
Division of Air Emissions; Mr. Weiss; Chief of Division tel. (02) 6712 2240
Department of Waste; Mr. Kopecky, Chief /82/ tel. (02) 6712 2216
Department of Environmental Damages; Ms Tylova, Deputy-chief, /83/ tel. (02) 6712 2069

The departments listed above prepare tenders for projects within the framework of the program “Care of the Environment” and the “R&D program.” A full list of approved projects is maintained at the Economic Department of the Ministry of Environment /2/.
Since last year, individual departments at the Ministry of Environment have also prepared and coordinated small support projects. As grants for these projects are very small, in most cases the departments are not obliged to announce a tender officially. Such projects are launched more or less at random throughout the year. For instance, in 1996 the Department of Air Protection announced support projects such as Long Distance Emission Transfer (administrative support to the international program), and Emission Data Collection and Monitoring. As mentioned, projects of this kind are new, few and far between, and the sums involved are low.
Overall, to identify project opportunities in the Czech Republic, it is best to investigate the situation through personal contacts, and, to a lesser extent, by contacting directly industrial producers and local administrations. For a foreign firm to compete effectively, it is almost essential to enter the market through a Czech business partner.
Sources of Information on Available Environmental Technologies
Buyers of environmental technologies can be grouped in the following categories: municipalities, businesses, environmental firms, and other bodies.
Municipalities are obliged to announce open tenders if they intend to purchase technology worth 5 million crowns or more (or 20 million if a complex technology is to be considered). Tenders must be announced in the weekly Obchodni Vestnik at least 36 days before the tender deadline. In cases where the required technologies cost 500,000 crowns or more (or 2.5 million if a complex technology is to be considered), the municipality must announce the tender to at least 5 competitors. In cases where the technology is worth 100,000 crowns, three competitors must be approached. (All the prices above are without VAT, which is usually 22 %) /38, 75, 2/.
The short time offered for bidding means that foreign technology producers and/or suppliers are not always able to participate in a tender. Additionally, local suppliers have priority when their offer is of a similar technological level compared to foreign competitors, and the proposed price is equal, or up to 10 % higher.
Most municipalities, particularly if they announce smaller tenders, contact local firms which they already know (through personal and professional contacts), or approach well-known technology providers in the country. Less frequently, municipalities may also be influenced by information and promotional materials provided by technology producers/providers, either during a personal visit to a municipal office, or by mail. Some municipalities also visit relevant trade fairs and shows, especially if they expect to purchase environmental technologies in the near future (e.g., prior to the construction of a wastewater treatment plant).
Businesses can be divided in two categories - state enterprises, and private firms. Acquisitions made by state enterprises are subject to the requirements of the Public Procurement Law and the tendering process (see above).
Private firms purchasing environmental technology products usually use information they have gained from meetings with technology providers. Some firms have an appointed person responsible for environmental issues who has the knowledge (and sometimes the authority) to decide which technology is best for their company /24/.
Businesses also learn about environmental technologies through personal contacts (very common in small and medium-sized businesses), or through associates working in the same industry.
Some businesses send their representatives to environmental fairs and conferences to investigate existing products available on the market.
Environmental firms are the most familiar with available technologies. Their purchasing decisions are based on their knowledge of a given field (through colleagues, personal contacts, associates, and own experience). From survey interviews it appears that price is not the major factor determining what products environmental firms buy - the key determinant is their specific need. Main technology buyers in this category include environmental service providers, analytical labs, providers of remediation services, and firms investigating and/or measuring pollution etc. /36, 35, 29, 19/.
Other bodies include universities, state R&D institutes, other state institutions, and interest groups. The common characteristic for all parties in this category is the lack of venture capital - many are uncertain whether they will be able to continue operations, and often do not even consider purchasing equipment. Universities generally possess a much better knowledge of the market than other bodies thanks to their local and international contacts./37, 43, 49/.
Conclusions
In summary, one should highlight the importance of personal contacts as a source of information on environmental business project opportunities in the Czech Republic. The majority of respondents indicated that they learn of project opportunities, or about environmental technologies available on the market, through personal and professional contacts, referrals from associates, participation in fairs, and promotion materials from personal meetings and fairs.
Many businesses, R&D centers, universities, and state bodies (ministries) collect information from professional magazines, including foreign periodicals. Obtaining information about project opportunities from official sources (the weekly Obchodni Vestnik, the Ministry of Environment, and other state bodies) is usually unsuccessful
Collecting information for purchasing environmental technology is somewhat similar - the most common way to acquire information is through personal contacts at fairs, meetings with environmental specialists at firms, as well as meetings of municipal officials with company representatives. Interestingly, it emerged from the survey that many firms and municipalities have recently solved some of their most pressing environmental issues by introducing relevant equipment, and show little interest in new technologies, assuming the existing products are satisfactory.

Demand for Environmental Technology

Demand for Environmental Technologies - Overview
In a majority of categories, the demand for environmental technologies was estimated between “moderate and slowly growing” and “high and likely to grow.” Generally, technologies for water and wastewater treatment were ranked among most needed, followed by technologies for waste management, air, and energy. Demand in the category Noise, Vibration, and Occupational Health and Safety was low.
In the air sector, demand was high for technologies for air pollution control/flue gas purification equipment (e.g. filters, scrubbers). Growing demand was expected for continuous-basis monitoring technologies for ambient air; and air sampling/laboratory analysis equipment for gaseous emissions.
Within the water and wastewater sector, high demand was identified for technologies for pollution prevention/waste minimization for municipal wastewater; equipment for spill control and containment/cleanup for surface and ground water; and sludge treatment and disposal equipment for 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 waste collection, transportation and storage equipment for hazardous waste. Increasing demand was expected for site remediation/cleanup equipment for contaminated land; 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, by far the most needed technologies were those that could be used for the retrofitting/rehabilitation of existing energy systems, followed by alternative (non-CFC) refrigerants. Demand for other technologies in this group was moderate.
Demand in the sector noise, vibration, and occupational health and safety was low. Abatement technologies (e.g., insulation, absorbtion), and protective equipment related to occupational health and safety was in some demand in this category. Technologies in Demand by Category
The following tables present a summary of responses from the interviewed parties. Additional information, based on sources other than interviews, is provided following the discussion and analysis of the tables.
In some cases, it was difficult to elicit information, because the technology grid in the questionnaire was detailed, and many parties would only express an opinion on demand for environmental technologies within their own field of activities. Some interviewed bodies (R&D centers, municipalities, few businesses) refused to assess technology demand even in basic environmental categories, due to the lack of knowledge.
The following scale was used for ranking demand : 5 - highest, and rapidly growing demand, 4 - high demand, likely to grow, 3 - moderate, slowly growing demand, 2 - low demand, will not grow, 1 - very low and decreasing demand, blank - no opinion.

Table 2.13: Environmental Technology Demand-Air

	Ambient Air	Gaseous Emissions
Air sampling / laboratory analysis	3.29 (7)	3.61 (9)
Continuous-basis monitoring	3.33 (6)	3.19 (8)
Air pollution control / flue gas purification equipment (e.g. filters, scrubbers)	3.06 (4)	4.00 (9)
Gas detection / warning devices	2.75 (4)	2.58 (6)
Instrumentation and process control / software	3.10 (5)	3.08 (6)
Emission abatement / cleaner production (e.g. low emission burners)	2.50 (4)	3.00 (6)

Note: Figures in cells show the average score, while those in brackets represent the number of responses.
Air
Demand for air-related technologies was moderate. In high demand in the air sector were technologies for air pollution control/flue gas purification equipment (e.g., filters, scrubbers). Growth in demand was expected for air sampling/laboratory analysis equipment for gaseous emissions; and continuous-basis monitoring equipment for ambient air. In the researcher’s opinion, additional comments are necessary to elaborate on situation presented above.
Air quality has a strong impact on the health of the general public and on the state of environment, and technologies reducing gaseous emissions occupy a significant part of the market at present. The current market demand for environmental technologies can be ranked as follows: 1) air pollution control technologies, 2) emissions/ambient air monitoring equipment, and air sampling, and 3) emission abatement/cleaner production technologies. Air pollution control technologies are represented by scrubbers, other flue gas purification units, and by large and sophisticated systems to reduce the emission of solid particles, sulfur dioxide, carbon oxide etc. By far the largest sums of money are being invested in this technology category, and the trend is expected to continue for several years to come.
Technologies for combustion conversion from coal to natural gas, and/or cogeneration technologies that reduce emissions are in demand at present, and demand is expected to grow in the near future. In contrast, cleaner production technologies are not in high demand now, but may be of greater importance once the enforcement of air related legislation becomes more stringent.

Table 2.14: Environmental Technology Demand-Water and Wastewater

	Surface and Ground Water	Potable (Drinking) Water	Municipal Wastewater	Industrial Wastewater
Monitoring	3.36 (15)	3.50 (7)	3.43 (8)	3.63 (9)
Sampling / laboratory analysis	3.31 (14)	3.60 (6)	2.83 (7)	3.13 (9)
Construction of collection / supply networks	3.14 (8)	3.00 (7)	3.71 (8)	2.86 (8)
Inspection and reconditioning of existing supply and collection networks	2.50 (3)	3.25 (5)	3.25 (7)	3.00 (6)
Standard physical, chemical, and biological treatment processes	3.00 (4)	3.00 (6)	3.40 (6)	3.00 (7)
Advanced (tertiary) treatment processes (e.g. UV/ozonation, activated carbon, phosphate removal, reverse osmosis)	3.33 (7)	3.17 (7)	3.00 (5)	3.20 (6)
Sludge treatment and disposal	3.67 (4)	3.33 (3)	4.00 (4)	3.83 (7)
Pollution prevention / waste minimization	3.60 (6)	3.33 (3)	4.17 (4)	3.25 (5)
Water recycling and reuse	3.40 (6)	2.33 (3)	3.00 (4)	3.58 (7)
Spill control and containment / cleanup	4.00 (6)	2.50 (2)	2.83 (4)	3.60 (6)
Quality restoration and decontamination	3.83 (7)	3.50 (4)	3.00 (5)	3.80 (6)
Instrumentation / process control / software	3.17 (7)	3.25 (4)	3.00 (4)	3.50 (5)

Water and Wastewater
Generally, demand for water and wastewater technologies was moderate, with growth tendencies. High demand in the sector was identified for technologies for pollution prevention/waste minimization for municipal wastewater; equipment for spill control and containment/cleanup for surface and ground water; and sludge treatment and disposal equipment for 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 and reuse for industrial wastewater.
In the researcher’s opinion, demand in this category would be better discussed separately as two sub-categories: water and wastewater.
The most important technology categories in water management (i.e. those attracting the greatest attention of technology producers and potential customers) are : 1) standard and advanced water treatment processes, 2) quality restoration and decontamination of water resources, and 3) sampling and monitoring. Standard and advanced treatment technologies can be further separated into products for large public water supply systems, and equipment for individual consumers, such as tap water treatment units for homes, labs etc.
Current interest in wastewater management concentrates on three technology categories: 1) wastewater treatment plant construction and modernization, using both standard and advanced treatment processes, 2) sampling and monitoring, and 3) pollution prevention. Demand is high for technologies for both municipal and industrial wastewater. Finally, sludge disposal is another major field where technologies are demanded.

Table 2.15: Environmental Technology Demand-Waste Management

	Municipal Solid Waste	Industrial Waste	Hazardous Waste	Radioactive Waste
Waste collection / transportation and storage	3.57 (7)	3.61 (9)	4.06 (9)	2.00 (3)
Sample analysis / waste characterization	3.17 (6)	3.19 (8)	3.33 (9)	2.33 (3)
Site monitoring	3.17 (9)	3.00 (9)	3.25 (8)	2.00 (2)
Landfill disposal	3.13 (8)	3.45 (10)	3.39 (9)	2.00 (2)
Incineration	2.67 (6)	3.56 (9)	2.89 (9)	2.00 (2)
Composting / biomass conversion	2.33 (6)	1.83 (6)	1.80 (5)	2.00 (2)
Pollution prevention / waste minimization	2.70 (5)	3.00 (7)	3.08 (6)	4.00 (2)
Recycling / resource recovery	2.94 (8)	2.80 (10)	3.38 (8)	2.67 (3)
Spillage control / decontamination	3.30 (5)	3.38 (8)	3.44 (8)	3.00 (3)
Site remediation / cleanup of contaminated land	3.90 (5)	3.63 (8)	3.67 (9)	3.00 (3)

Waste Management
Overall, demand for waste management technologies was moderate, with technologies related to industrial and hazardous waste in highest demand in this category.
High demand was identified for equipment for hazardous waste collection/transportation and storage. Increasing demand was expected for site remediation/cleanup equipment for contaminated land; waste collection/ transportation and storage equipment for industrial and municipal waste; and technologies for incineration and landfill disposal of industrial waste. Possible growth in demand was also identified for pollution prevention and waste minimization equipment in the area of radioactive waste.
In the researcher’s opinion, by far the highest market demand is for those technologies employed in solid municipal waste disposal, followed by technologies for industrial waste (including hazardous waste) disposal. Site remediation and clean up of contaminated land is another area of high demand. The state is the most frequent customer for site remediation technologies. Most significant factors influencing growth in demand are the state of legislation and its enforcement, and the growing costs of waste disposal (see Chapter 3 for more details).
Disposal of radioactive waste is an acute problem, and a detailed investigation of possible disposal sites is under way. However, although disposal of radioactive waste is a priority issue for the Czech government, on the whole, the field does not account for a major portion of the waste management sector.
The Czech government has announced plans to build an incinerator for PCB disposal. The construction will be either financed, or co-financed from the state budget. The project should theoretically be initiated in 1997.
Finally, all waste producers generating more than 100 tons of ordinary waste, or more than 50 kg of hazardous waste annually must prepare formal waste management programs to be approved by local administration. A waste management program must include detailed information on the methods of waste disposal. This means that waste producers must either present a contract with a firm that specializes in waste salvage and/or disposal, or they must manage the waste disposal themselves (incinerators, landfills, etc.). Whether these methods of disposal are efficient and cost-effective is questionable, and there may be a growing niche for waste minimization technologies. Enterprises should become more receptive to innovative technologies as the enforcement of legislation improves, and the cost of waste disposal grows.

Table 2.16: Environmental Technology Demand-Energy

	Energy & Power Generation	Other Industrial Sectors*
New/efficient energy and heat generation systems	3.00 (3)	2.25 (4)
Retrofitting/rehabilitation of existing systems	3.75 (4)	3.75 (4)
Process management and control (e.g. boiler tune-up, fuel efficiency optimization)	2.50 (2)	2.75 (4)
Heat recovery and energy savings (e.g. insulation)	3.00 (1)	3.00 (2)
Alternative/renewable energy systems (e.g. geothermal, biomass, solar)	3.00 (2)	2.33 (3)
Alternative (non-CFC) refrigerants	3.00 (2)	3.33 (3)
Instrumentation	3.00 (2)	3.00 (3)

* e.g. manufacturing, chemical

Energy
Overall, demand for energy-related environmental technologies was moderate. In no single technology class was demand found to be high. Increasing demand was expected for technologies related to the retrofitting and rehabilitation of existing systems for both the energy sector and other industrial sectors, followed by alternative (non-CFC) refrigerants. Demand for other technologies in this category was low to moderate.
In the researcher’s opinion, the overall impression given in Table 5.2d reflects well the actual situation. Rehabilitation and retrofitting of existing energy systems, and the improvements in process management and control are currently under way, and can be expected to continue. New and efficient energy and heat generation systems are already being introduced on a small scale, and will become more important in the near future.
Energy-saving technologies, and alternative energy sources are not currently in high demand, although demand is expected to grow within the next few years. At present, aside from meeting environmental compliance requirements, energy generating companies are not forced to implement any significant energy-saving measures, largely because they are paid for energy supplied and not that saved. However, within the next few years rising fees for energy use will increase the demand for energy efficient/saving technologies among industrial users.
Alternative energy is a marginal area in the Czech Republic, particularly since the country does not have abundant sources of renewable energy. Those that do exist (e.g., solar, wind, geothermal energy) are to be found scattered across the country.

Table 2.17: Environmental Technology Demand-Noise, Vibration and OHS

	Noise and Vibration	Occupational Health and Safety
Instrumentation / measuring and control devices	1.00 (1)	2.33 (3)
Protection equipment	2.00 (1)	2.83 (3)
Abatement (e.g., insulation, absorbtion)	1.00 (1)	2.75 (2)
Electromagnetic field exposure	1.00 (1)	2.00 (1)

Noise, Vibration and OHS
Demand in the sector noise, vibration, and occupational health and safety was low. Abatement technologies (e.g. insulation, absorbtion), and protection equipment related to occupational health and safety were in some demand in this category.
Overall, this sector is not given much attention. In the researcher’s opinion, technologies most demanded in this group are those used for measuring and controlling noise in the work place, followed by health and safety protection equipment.
Major Environmental Technology End-Users
Table 2.18 presents the main end users of environmental technologies as identified by respondents. Overall, the main end-users of environmental technologies are municipalities. It is worth noting here that a significant share of money spent by municipalities comes from the State Environmental Fund which is the principal source of support for municipalities (up to 3/4 of the total cost of individual projects).

Table 2.18: Major Environmental Technology End-Users by Sector

Category	Major End Users
Air	Industrial companies Power plants, heat generating stations
Water	Municipal sewerage operators Potable water suppliers Municipalities Remediation and consulting companies Hospitals Industrial companies Large waste producers Municipal services Food processing companies
Waste	Municipal services Large waste producers Municipalities Transportation companies Mining companies Cleaning services companies Landfill operators Waste processing companies
Energy	Power plants, heat generating stations Municipalities Municipal services Industrial companies
Noise and Vibration	Large industrial companies Construction companies

Note: The difference between "municipalities" and "municipal services: "Municipalities are town administrations that order and purchase various technologies and services. "Municipal services" are companies, either private or controlled by muncipalities, that provide town administrations with environmental services (e.g. water supply, waste collection).

The business sector is the second major end-user group (constituted by both private companies and large state enterprises). There still exist a few state enterprises in the Czech Republic where a substantial share is owned by the state, and they account for a large portion of environmental expenditures (e.g., technologies reducing air emissions from power plants, soil reclamation after mining industry, site remediation work).
Presented below is an analysis of the major end-users in each environmental sector, based on respondents’ opinions. It is important to note that the ranking of end-users may vary depending on the value of investments, or the number of projects cases considered. Such research, however, was outside the scope of this project.
Air
The major end-user of environmental technologies for air pollution control are operators of heating stations and power plants. Most power plants are owned by CEZ, the largest enterprise in the Czech Republic, in which the state still retains a majority share. Ownership of local heating stations varies - some are owned by former state enterprises that have become joint-stock companies, while others are private, or are owned by municipalities.
The second largest group of end-users includes various industries. Among the most significant sectors are metallurgy, chemical, pharmaceutical, engineering, glass, and other industrial branches.
Neither small, stationary pollution sources (domestic family housing), nor mobile sources (vehicles) are among significant end users of air pollution control equipment. This is mainly because at the present time they are not subject to targeted regulations.
Water
The major end-users in this category are municipalities (or operators of systems), both for water and wastewater treatment systems. This situation should last well beyond the year 2000. Other important customers for wastewater treatment systems are: chemical plants, engineering works, machinery manufacturing works, and agriculture.
Family houses may become a significant customer for package wastewater treatment units, especially in more remote rural areas. Tap water treatment equipment is in high demand among individual consumers, especially in areas with poor quality of potable water.Waste
Municipalities are a major end-user of solid waste disposal technologies, for example those used for waste separation, salvage, landfilling, incineration. The most frequent end users of technologies for hazardous waste disposal (incineration, landfilling, re-use technologies, solidification, etc.) are the chemical industry, machinery manufacturing, engineering, pulp and paper industries, and others.
Soil reclamation and site remediation technologies are of primary interest to the mining industry, energy sector (CEZ), and the state.
Energy
The structure of major end-users in the energy sector is somewhat similar to that in the air pollution control sector - power plants and heat generating stations, followed by other industrial sectors with high energy consumption. This situation is mainly driven by the national environmental policy, focusing on large stationary sources of air pollution. Increasing interest in energy-saving measures is expected from various industrial users and from municipalities as energy prices increase.
Noise and vibration
Noise abatement technologies for indoor workplaces are important in metallurgic, mining, and heavy machinery industries, while outside noise pollution is an interest area for some municipalities. The construction industry is also a significant client. Technologies reducing vibration, of some concern in heavy industries, are currently not in great demand.
No major changes in end-users of environmental technologies is expected in any of the above categories. While some small changes may occur in the order, the principal customers are expected to remain the same.

Advantages and Disadvantages of Foreign Suppliers

Purchasing Preferences
According to respondents, due to the pervasive lack of money, most environmental technology end-users (municipalities, business) select the cheapest technology available on the market that enables them to meet the required standards. Both municipalities, as well as businesses must meet environmental standards (and corresponding deadlines) set by environmental enforcement bodies. At the same time, they are coping with pressing economic issues which are usually perceived as more important. Thus, they try to find the cheapest environmental technology providing a minimum level of compliance.
From this point of view, local manufacturers of environmental technologies offer an unparalleled advantage of cheaper products, lower installation costs, and local technical service. It is also worth to note that a clause in the Act on Public Competition (see Section 4.3) legislates that a purchase from a domestic technology supplier takes precedence over a foreign supplier, if the domestic technology is of the same or similar quality and efficiency, and the price is the same, or up to 10 % higher.
When foreign technology is preferred by end-users, it is because of its unique technical parameters, unmatched by comparable local products, or because a product is not manufactured in the Czech Republic. Foreign products are often viewed as technologically more advanced, of better quality, and more reliable than local technologies. Recognition of brand names is an important factor as well.
Local environmental companies, driven by a wide variety of goals, buy the exact technology they need to provide environmental services. The country of origin of the product is not a key decision factor, and, unlike in other respondent groups, the price is not the key factor, either. Such environmental firms provide, among other things, lab testing services, remediation work, field research, drilling, pollution measurements etc., and require reliable and sophisticated technology manufactured by renowned world producers. The criterion “quality and purpose first” was mentioned by 75 - 80 % of interviewed environmental service providers.
Local technology producers and suppliers determine which technologies to buy according to cost-benefit analysis and their clients’ preferences. For example, a domestic contractor for a wastewater treatment plant constructs the plant according to its own design, and bulk construction materials (structured steel, piping, cement) are bought at local sources, thus saving time and money. Critical technological parts, such as pumps, electric motors, process control systems, are either bought from local producers, or from abroad. According to customer’s preference, the contractor can install locally produced pumps (e.g., with a shorter term of warranty), or imported pumps of better quality (with a longer term of warranty). While this approach will slightly increase the total cost of a wastewater treatment plant, the increase due to installing foreign components may well be offset by better parameters and reliability.
Overall, most local environmental technology producers try to find a balance between the quality and price of their products. It is extremely important to offer the client as low a price as possible, but product reliability and the length of the warranty period are considered by clients as well.
Universities and R&D centers are often unable to make any purchase due to the pervasive lack of funds. However, when they do buy equipment, quality and purpose take precedence over price considerations.
Strengths of Foreign Environmental Technologies
When asked what they considered as advantages of imported environmental technologies, about 70 % of respondents pointed out a high product quality, while 50-60% marked “reliable and durable product”, and “user-friendly technology”. 30-35 % of respondents commenting on the advantages of foreign technologies indicated “easy to customize and adapt for specific local needs,” while 15-20 % noted “good value of money”.
“Available credit” and “good after-sales service” were rarely mentioned as strengths of foreign products, even though they are important in some projects (e.g., air pollution control, waste incineration). Several respondents even mentioned a superficial and careless approach of foreign companies to after-sales service. Low price of foreign technologies was not mentioned in a single case.
Note that the term “foreign technologies” was interpreted as “Western technologies.” Technologies from other Central and Eastern European countries (mainly from Poland and Hungary) are not considered as very competitive with Czech products. The products generally fall in a similar price and quality range, and Czech buyers therefore choose domestic technologies.
Foreign environmental technology suppliers enjoy a significant advantage over domestic competitors if they manufacture a unique product that is not manufactured in the target country due to the limited size of the local market. Such specific technologies are intended for a small and specialized number of clients, such as equipment for nuclear waste handling, transport, and storage. Additionally, multi-purpose technologies which can be a basis for a wide variety of product modifications may also give foreign technology suppliers a notable advantage. Solid waste salvage trucks, loaders, incinerators are a few examples of multi-purpose competitive equipment.
Finally, several respondents noted that foreign environmental technology products which can use locally produced spare parts or replacements (e.g. filters, chemical substances for water and wastewater treatment systems, lab chemicals) had a significant advantage over other foreign technologies. Adopting this approach will reduce costs, delivery time, and service requirements.
Disadvantages of Foreign Technologies
In discussing disadvantages of foreign technologies and barriers to market entry, high price was given as the biggest disadvantage. Practically all respondents regarded foreign environmental technologies as too expensive.
The price of some foreign technologies is so high (e.g., municipal water and wastewater treatment systems) that it is taken as uncompetitive in advance. On the other hand, highly sophisticated foreign technologies that have no match among domestic products can find their niches. For example, expensive and sophisticated high-efficiency systems for air pollution control in power plants and large heating stations are frequently of foreign origin. The same applies to incinerators and some technologies for waste reuse or recycling (tire recycling, plastics). In some cases, the disadvantage of high price is offset by characteristics such as product quality, life-span, after-sales service (e.g. landfill liners, municipal waste collection containers, tap water purification systems, etc.)
“Ensuring authorized technical service and maintenance” was mentioned as a problem by 30-40 % of the interviewed parties. Finally, between 20 and 30 % of respondents pointed out other disadvantages of foreign technologies, such as “lack of reliable product information,” and “products not suitable for local conditions.”
Some specific disadvantages listed by respondents included:

Problems with product certification.
Transfer of payments (problematic, long)
Arrogant behavior of foreign representatives
Export/import barriers (connected with legislation)
Low state support for such investments (imports)
Low bank support for technology imports.

It is interesting to note that varying customs duties and border taxes are often applied to products from different countries. Treaties with many countries removing double-taxation also play an important role. With respect to EU providers, the customs fee inconsistencies are expected to be eliminated in the near future.

Major Foreign Competitors in the Environmental Technology Market

Perception of Environmental Technologies from Selected Countries
Generally, 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.
The presence of environmental companies from Canada, Italy, Poland and Switzerland is also noticeable but not as significant as those mentioned above. Firms from other countries (Spain, Republic of Ireland, Hungary, Japan) are known by a few interviewed parties, and their participation in environmental projects in the Czech Republic is limited.
Table 2.19, based on interviewee responses, presents perceptions of environmental technologies from major foreign suppliers. Some three quarters of respondents were not able to address the question on perceptions of foreign technologies, because their knowledge of the subject was superficial; therefore, a detailed table classifying individual countries is not presented in the report. The attitudes towards individual countries is further discussed below.

Table 2.19: Perceptions of Environmental Technologies from Major Foreign Suppliers

Sector	Country
Air	Germany Austria United States
Water and Wastewater	Germany Austria United Kingdom
Waste	Austria Denmark The Netherlands
Energy	Germany Austria United States
Noise, Vibration, and OHS	Not Specified
Services	Germany Austria The Netherlands

Germany, Austria, and other Western countries (Western Europe, the U.S., Canada and Japan) are regarded as producers of quality environmental technologies (although some experienced local customers do not always share this opinion). Generally, the presence of foreign firms is most significant in waste management. Foreign firms are also active in wastewater treatment, and, to a smaller degree, in air pollution control.
In waste management, Dutch, Austrian, German, and Danish technologies were ranked high. Firms from these countries are active in solid waste salvage, and in landfill construction. Austrian firm Hoval is the biggest foreign supplier of incinerators. Scandinavian (e.g., Norsk Hydro) and Dutch firms are also active in waste incineration. The presence of Italian firms, once marketing their technologies aggressively, is now limited. Waste recycling technologies are mainly dominated by German firms.
Water and wastewater systems are introduced by a large number of foreign firms, including German, Austrian, French, Dutch, American, and British. It is difficult to determine the leader in this field, as the situation in the sector changes rapidly.
Energy and air pollution sectors are primarily dominated by German technologies, followed by Austrian and American products.
Respondents were not familiar with foreign suppliers in the Noise and vibration sector.
The most important conclusion from evaluating perceptions of environmental technology suppliers is that, in fact, the country of origin of a given technology or supplier is not important. An overwhelming majority of the interviewed parties (practically all environmental businesses and R&D centers) commented that the country of origin is insignificant. Instead, the reputation of the company producing a technology itself is much more important. To that end, it is also necessary to note that Czech users of environmental technologies are generally skilled and technically qualified specialists, who often have had experience with a wide range of environmental technologies. If offered out-dated technology, or faced with problems with post-sale service, they have a range of other foreign competitors to negotiate with, regardless of the country of origin or the reputation of the company which made the original offer or sale.
Finally, Table 2.19 presents a good overview of major foreign players in the market, but the significance of the ranking should not be overestimated. The presence and level of activity of foreign technology suppliers varies depending on environmental sector and the region of the country. One large and successful project in a specific environmental field may result in publicity to a specific technology or service provider at the expense of other competitors, thus distorting the overall picture. This, for instance, may have been the case with the Austrian firm A.S.A., which constructed a hazardous waste landfill in south Moravia, and won a tender for the construction of a Prague municipal landfill in 1993. The Danish firm Marius Pedersen was a similar case in eastern Bohemia, where it constructed and is operating landfills and organizing waste management on a wide scale.
Major Foreign Suppliers Active on the Market
Table 2.20 presents major foreign companies active in the Czech Republic, as identified by the interviewed parties. As Table 2.20 demonstrates, the familiarity of Czech environmental experts with foreign environmental technology providers is rather limited. Many interviewed experts were not able to list a single foreign supplier by name and country of origin.

Table 2.20: The Largest Foreign-owned Companies in the Market

Sector	Name of the company, City	Country of origin	Specialization
Air	Research-Cottrell Deutschland GmbH, Most	Germany	Designers, air control equipment
	BHA International GmbH, Ahlen	Germany	Industrial filtration, emission control
Water	ATE Praha, Praha	France	Soil and groundwater clean-up
	Prominent Dosiertechnik CS, s.r.o., Olomouc	Germany	Pumps, lab apparatus
	Bayer s.r.o.	Germany	Organic products and intermediate products for treatment of wastewaters with heavy metals
	Nijhuis Water Technology, Dinxperlothe	The Netherlands	Water and wastewater treatment
	Hydrotech, a.s., Bratislava	Slovakia	Water and wastewater treatment
	Trige s.r.o., Liptovsky Mikulas	Slovakia	Sludge filters, presses
	Severoceske vodovody a kanalizace, Teplice	United Kingdom	Water supply and treatment
Waste	A.S.A., Praha, Brno	Austria	Waste management, disposal, salvage, separation
	Hoval, Praha	Austria	Waste incinerators
	Bijo s.r.o.	Czech Republic/Germany	Industrial and hazardous waste disposal, recycling
	Marius Pedersen a.s., Hradec Kralove	Denmark	Waste salvage, disposal, separation
	Transform s.r.o. Pardubice	Germany	Plastics recycling
	SSI Schafer-Schafer Menk a.r.o, Praha	Germany	Production of waste containers
	REO-RWE Entsorgung s.r.o., Praha	Germany	Waste management
	Rumpold s.r.o. Praha	Germany	Collection, disposal, and export of waste, own landfill
	Rethmann Recycling s.r.o.	Germany	Collection and disposal of waste
Energy	Honeywell	United States	Energy supply
	ABB Prvni brnenska, Brno	Sweden	Environmental-friendly energy generation
Services	Ramboll, Hannemann a Hojlund A/S, Virum	Denmark	Design and consultancy in air protection, water and waste management
	OST-Consult GmbH, Gera	Germany	Environmental audits, EIA

Note: Table includes both foreign companies active in the local market, and joint-ventures with local firms.

Overall, the presence of foreign environmental technology suppliers is most significant in the field of waste management, with a significant number of companies also active in water supply systems. However, no individual firm dominates any sector of the market. Their market share is small - individual companies may have, at most, between 2 and 5 % of the market.
Some large foreign companies have established Czech subsidiaries, and are very active in waste salvage and disposal practices. Some foreign firms have also established joint-stock companies with municipalities. The Danish firm Marius Pedersen, Austrian A.S.A., or many German firms may serve as good examples. British firms are active in water supply and wastewater treatment services in North Bohemia. Increased activity of French firms in the water supply and wastewater treatment sector has been observed recently, with companies setting up joint ventures with municipalities.
In many environmental sectors, foreign companies do not have an established presence in the Czech Republic. Some foreign firms rather actively pursue direct sales (e.g., Austrian Hoval). The system of licensed technology sales is satisfactory and effective. Other notable cases include sales of environmentally-friendly fertilizers for agriculture, chemicals for wastewater treatment systems, tap water treatment systems, air filters, lab equipment etc.
Interestingly, in several cases, formerly foreign co-owned firms have been bought out by the local partner after 2 or 3 years of collaboration. In some cases, joint-ventures collapsed as a result of unsuccessful collaboration - either a local counterpart used foreign financial assistance and support excessively while returning very little, or the expectations of a foreign partner were too high and the local partner was not able to meet them.
Finally, it is important to stress again that foreign firms are most active in waste management and water-related sectors, but no single firm dominates the market.
Experience with US Environmental Technologies
Knowledge of American environmental companies and their technologies in the Czech Republic is limited and superficial. Generally, American environmental technologies are not readily available in the Czech Republic, and only a few large US firms have been able to make a substantial impact on the local market. On the whole, small and medium US environmental companies and their products are hardly visible on the Czech market.
One good example of a successful company is Westinghouse, which secured a tender to install sophisticated control technology and safety system in the nuclear power plant at Temelin. The Temelin nuclear power plant in South Bohemia should contribute 20-25 % of total electricity production in the Czech Republic after its completion in 1998. The contract, worth 10 - 12 billion Czech crowns (370 - 440 million US dollars), was secured after many months of negotiations on various levels, including governmental. Procter & Gamble may serve as another example, with its purchase of Rakona Rakovnik, where production of environment-friendly detergents has now begun.
A number of respondents either had purchased, or were familiar with US environmental technology. American products are considered reliable, durable, and of good quality. The main advantage of US environmental technologies, surprisingly, is the price. Many products are cheaper (even including transport costs), or even substantially cheaper, than similar ones produced in Western Europe. Boilers, bailing machines for solid waste disposal, some wastewater treatment systems, technologies to use construction debris or fly ash from power plants are just a few examples of products which can be obtained for a lower price.
The negative characteristics listed included long distance and delivery time for technologies, and the availability of spare parts and professional post-sale service. Another notable disadvantage was that some products are not suitable for local conditions (owing to a difference in standards), or are not easy to adapt (e.g. - to a different measurement system). Some technologies are too land-intensive (e.g., wastewater treatment plants) to find a construction site large enough to accommodate the project.
Also, American businessmen are not very familiar with local conditions when compared to major competitors - Austrian and German firms. For instance, American business representatives generally do not pay too much attention to personal negotiations which may take a long time, and soon lose patience and leave.
From the researcher’s own experience, there are several other issues of interest for US environmental technology suppliers.
Generally, American environmental technologies are of good quality and competitively priced, and thus should be little problem entering the market successfully. However, much patience is required to learn the local conditions. Many reproaches and complaints, both from local parties and from US businessmen, were that “the other side absolutely does not understand what we want.” Even some joint-ventures or planned projects collapsed solely for this reason.
American environmental technologies are regarded as high quality products, provided they are manufactured in the US or Canada. Those “American” technologies or components/spare parts produced elsewhere (e.g., South-east Asia, Eastern Europe, Mexico), are perceived to be of poor quality. One specific example given in an interview was where spare parts were labeled “Made in the US,” but were actually manufactured in Romania.
One reason for many disappointments is that American businessmen contact potential clients (municipalities and industrial firms) in the Czech Republic and expect quick and fruitful negotiations. However, municipalities and other potential customers are reluctant to commit early to a deal, as they need time to consider the offer and to learn more about the producer and/or the technology. Also, the procedure to get a final permit for the use of certain technologies in the Czech Republic is time-consuming (several months, sometimes even years), and the number of permits needed can be enormous (e.g., up to 80 in Prague). As a result, American representatives often become frustrated and turn away.
US representatives have a similar approach to the Ministry of Environment as a source of information, expecting wide-ranging assistance. While Ministry officials meet and greet them and exchange some ideas, this is usually all the assistance offered.
In conclusion, American environmental technologies are competitive with Western European products in terms of price and quality. However, the wider use of US technologies is hampered by the limited direct market presence of American companies and the low level of knowledge of the market compared to suppliers from the EU. Other obstacles include some compatibility problems resulting from differences in measurement systems, and the lack of reduced tariffs which are applied to EU products.
Appendix A - List of Abbreviations

CEMC	Czech Environmental Management Center
CR	Czech Republic
EMS	Environmental Management System
EU	European Union
IWTP	Industrial Wastewater Treatment Plant
MOE	Ministry of Environment
MPO	Ministry of Industry and Trade
MWTP	Municipal Wastewater Treatment Plant
WB	World Bank
WM	Water Management

Appendix B - List of Interviewed experts/companies
Note: Only those experts/companies considered most important are listed

Mr Immo Bellman Tel: (02) 67 12 23 85 Ministry of Environment, Department of Statistics Ministerstvo zivotniho prostredi Vrsovicka 65, 100 00 Praha 10	Mr Milan Valis Tel: (02) 683 82 20, 684 11 28 POLYTHERM Praha, s.r.o. U libenskeho pivovaru 10, 180 00 Praha 8
Mr Jiri Dlouh� Tel: (02) 67 28 53 Ministry of Environment, Economic Department Ministerstvo zivotniho prostredi Vrsovicka 65, 100 00 Praha 10	Ludek Pravda Tel: (02) 61 26 10 24, 61 26 20 24 ARDA, s.r.o. Nad obci I, c. 50, 146 00 Praha 4
Mr V�clav Chytil Tel: (02) 660 23 225 Environmental Fund of the Czech Republic Fond zivotniho prostredi Ceske republiky K Moravine 7, 190 00 Praha 9	Mr Hercik Tel: (069) 699 34 64 Minining University, Faculty of Metallurgy Vysoka skola banska, Fakulta metalurgie Trida 17.listopadu 15, 708 33 Ostrava - Poruba
Mr Petr Homolka Tel: (05) 452 16 811 TOPGEO, s.r.o. Olomoucka 75, 627 00 Brno	Mr Karel Rezek Tel: (0327) 704 1134 Institute of Natural Raw Materials Ustav nedrostnych surovin 284 03 Kutna Hora
Mr Kinkor Tel: (02) 316 43 09 SEPA s.r.o. Na Petrinach 25, 162 00 Praha 6	Mr Kukal or Mr Zoubek Tel: (02) 24 00 21 11 Czech Geologic Institute Cesky Geologicky ustav Klarov 131/3, 118 21 Klarov
Mr Koumar Tel: (0452) 626 022 KOWA s.r.o. Pod Septouchovem 510, 584 01 Ledec nad Sazavou	Ms Anna Christianova Tel: (02) 24 85 31 75 Ministry of Industry and Trade - MPO Ministerstvo prumyslu a obchodu Na Frantisku 32, 110 15 Praha 1
Ms Marie Hlavicova Tel: (02) 24 31 14 24 AQUA-CONTACT Praha, v.o.s. Buzulucka 6, 160 00 Praha 6	Mr Karel Stastny Tel: (02) 24 38 48 71 University of Agriculture (CZU) Ceska zemedelska universita (CZU) Kamycka 129, 165 21 Praha 6 - Suchdol
Mr Klaus Marijczuk Tel: (0428) 311 039 ELBECO a.s. Podhorska 20, 466 01 Jablonec nad Nisou	Mr Petr Petak Tel: (02) 21 66 12 49 USU Praha, s.r.o. Stepanska 15, 120 00 Praha 2
Mr Vaclav Hasek Tel: (02) 395 495 PREX, a.s. Csl. armady 16, 253 01 Hostivice	Mr Vit Mateju Tel: (038) 230 27 ENVISAN - GEM, s.r.o. Dolni 2, 371 39 Ceske Budejovice
Ms Jirina Klicova Tel: (02) 684 83 76 OTTO, s.r.o. Vysocanske nam. 214/1, 190 00 Praha 9	Mr Jiri Tylcer Tel: (069) 611 52 24, 236 522 AQ - Test, s.r.o. Mlynska 5, 702 00 Ostrava
Ms Dagmar Doskova Tel: (02) 66 79 36 65 Sealing Consulting Praha Delnicka 12, 170 04 Praha 7	Mr Radan Smid Tel: (069) 611 49 41, 611 48 38 GHE, a.s. 28.rijna 84, 702 00 Ostrava
Ms Libuse Tomaskova Tel:(02) 687 14 21 RETOM Tomasek Lubos Schoellerova 1281, 196 00 Praha 9 - Cakovice	Mr Josef Vitek Tel: (02) 687 03 89 V�tek Josef - SYRAEL Sluhy 195, 250 63 Mratin
Mr Bohuslav Moucha Tel: (02) 628 09 57-8 CEMC - Czech Environmental Management Center Ceske ekologicke manazerske centrum Jevanska 12, 100 00 Praha 10	Mr Daniel Svoboda Tel: (02) 258 259 AGSS, s.r.o. Machova 23, 120 00 Praha 2
Mr Ferdinand Voracek Tel: (02) 810 17 510 GSP, s.r.o. 28. pluku 36, 100 00 Praha 10	Mr Karel Petrzelka Tel: (02) 24 31 36 30 KAP, s.r.o. Skokanska 80, 169 00 Praha 6
Mr Petr Saifrid Tel: (02) 793 66 92, 793 66 36 Czech Environmental Institute Cesky ekologicky ustav Kaplanova 1931, 148 00 Praha 4 - Opatov	Mr Viktor Bankovsky Tel: (019) 72 366 17 The Administration of the Town of Pilzen Magistrat mesta Plzne Kopeckeho sady 11, 306 32 Plzen
Mr Zemek Tel: (02) 423 962 PCS, s.r.o. Na dvorcich 18, 146 00 Praha 4	Mr P. Buryan Tel: (02) 243 10 682 University of Chemical Technology (VSCHT) Vysok� skola chemicko-technologick� (VSCHT) Technicka 5, 166 28 Praha 6
Mr Martin Chromecka Tel: (069) 22 48 29, 22 49 11 BIODEGRADACE, s.r.o. Sokolsk� 23, 702 00 Ostrava 1	Mr Brus Tel: (05) 45 21 53 81 EZAMONT Brno, s.r.o. Puskinova 17, 616 00 Brno
Mr Arnost Gross Tel: (0653) 541 305 MSA, a.s. Hlucinska 41, 747 22 Dolni Benesov	Mr Latal Tel: (069) 29 26 180 APES - Association of Producers of Environmental Technology Kotkova 6, 706 02 Ostrava 6
Mr Jaroslav Zak Tel: (02) 302 52 30, 301 32 12 OPV, s.r.o. Belohorska 131, 169 00 Praha 6	Mr Jaroslav Jakubes Tel: (02) 67 02 18 42 SRC International CS, s.r.o. Pocernicka 96, 108 03 Praha 10
Mr R. Gurtler Tel: (02) 24 25 54 19 GEONIKA, s.r.o. V Cibulk�ch 5, 150 00 Praha 5	Mr Zdenek Bures Tel: (0363) 52 14 23 Sanace potrubi, STRABAG-RABMER, s.r.o. Na Svadlackach 478/II, 392 01 Sobeslak
Mr Petr Chalupa Tel: (069) 356 106, 352 700 OZO Ostrava, s.r.o. Frydecka 444, 719 00 Ostrava 2	Mr Jiri Rott Tel: (02) 70 10 51 CEVATECH Int., s.r.o. V Novych domcich 23, 102 00 Praha 10 - Hostivar
Mr Pokorny Tel: (05) 45 21 59 32 FONTANA R, s.r.o. Prikop 8, 602 00 Brno	Mr Pavel Kozisek Tel: (02) 77 98 44 KLIMAFIL, s.r.o. Slunecna 2, 100 00 Praha 10
Mr Martin Ivan Tel: (05) 45 21 53 75 ECO-BUILDING Brno, s.r.o. Pricni 29, 635 00 Brno	Mr Bures Tel: (02) 20 197 268 Research Institute of Water Management Vyzkumny ustav vodohospodarsky Podbabska 30/219, 160 62 Praha 6 - Podbaba
Mr Kolanda or Mr. Tresnak Tel: (0324) 289 11 Stanley - TONA Pecky Chvalovicka 326, 289 11 Pecky	Mr Karel Petioky Tel: (02) 67 02 14 86 EVECO Ltd. Pocernicka 96, 108 03 Praha 10
Mr Dostal Tel: (040) 63 10 310 TRANSFORM, s.r.o. B. Nemcove 2625, 230 02 Pardubice

Appendix C - List of Publications
Note: Only the most important publications used in the report are listed below
The following information is provided:
Publication Title
Short description of the publication (where necessary)
Author(s), place, and time of publishing

Envibrno 96� catalogue of the environmental fair BVV, Brno, October 1996	The Environment of the CR - 1995 annual environmental statistics Czech Environmental Institute, Prague, 1996
The Environment of the CR - 1993-4 annual environmental statistics Czech Environmental Institute, Prague, 1994	The Environmental Business Directory catalogue of environmental service and technology providers in the CZ, PL, H, SK Regional Environmental Centre - REC, Budapest, October 1995
The Emerging Environmental Market Survey of the CR, H, PL, SK Regional Environmental Centre - REC, Budapest, June 1995	Seminar on Environmental Infrastructure Finance proceedings of the seminar Center for Clean Air Policy, Prague, June 1992
The Summary of Professional Activites of the Institutes Description individual institutes under Czech Academy of Sciences Czech Academy of Sciences, Prague, April 1995	Hospodarske noviny (daily)
The List of Projects Supported by Competitive Research Grants Czech Academy of Sciences, Prague, 1996	The List of R&D Projects of the MOE supported in 1996 MOE, Prague, January 1997
List of Projects under the Program for Care of the Environment MOE, Prague, January 1997	Czech Foreign Trade in Statistics Ministry of Industry and Trade, Prague, August 1996
Annual Report of the Czech Geological Institute Czech Geological Institute, Prague, 1995	Country Commercial Guide - the Czech Republic U.S. Embassy, Prague, August 1996
Eco-Labelling in the CR description and guidelines for eco-labelling MOE, Prague, 1996	Environmental Business Sector: Opportunities in the CR ARDA, Prague, December 1994
Guide for American Exporters: Environmental Technologies U.S. Department of Commerce, May 1996

Appendix D - Other Useful Contacts
Structure:
English name (if important)
Czech name
Telephone
No., street
Town

Institute of Applied Ecology & Environmental
Institut aplikovan ekologie a ekotechniky
(0203) 97 521-4
n�m. Smirickych 1,
281 63 Kostelec nad Cernymi lesy

Ministry of Environment
Ministerstvo zivotniho prostredi
(02) 67 12 11 11
Vrsovicka 65,
100 00 Praha 10

Ministry of Industry and Trade
Ministerstvo prumyslu a obchodu
(02) 2485 11 11
Na Frantisku 32,
110 15 Praha 1

Ministry of Finance
Ministerstvo financi
(02) 24 54 11 11
Letenska 15,
110 00 Praha 1

Czech Environmental Institute
Cesky ekologicky ustav
(02) 67 99 43 00
Kaplanova 1931/1,
149 00 Praha 4

Grant Agency of the Czech Republic
Grantova agentura Ceske republiky
(02) 24 24 05 33
Narodni 3,
110 00 Praha 1

National Property Fund
Fond narodniho majetku
(02) 24 99 11 11
Rasinovo nabr. 42,
120 61 Praha 2

City Administration of Prague
Magistrat hl.m. Prahy
(02) 24 48 11 11
Marianske nam. 2,
110 00 Praha 1

Ministry of Agriculture
Ministerstvo zemedelstvi
(02) 21 81 11 11
Tesnov 17,
110 00 Praha 1

Ministry of Industry and Trade
Ministerstvo prumyslu a obchodu
Ms Hrncirova, deputy-minister
(02) 24 85 11 11
Na Frantisku 32,
110 00 Praha 1

Ministry of Defence
Ministerstvo obrany
Mr Bukva, chief of the Environment
(02) 20 21 25 03, 20 21 25 05
Tychonova 1,
161 00 Praha 6

Ministry of Agriculture
Ministerstvo zemedelstvi
Mr Fantys, chief of the Dept. of Ecology
(02) 21 81 23 77
Tesnov 17,
110 00 Praha 21

Ministry of Environment
Ministerstvo zivotniho prostredi
Mr Redinger
(02) 67 12 29 98
Mr Kinkor, chief of the Dept. of Water Protection
(02) 67 31 15 90
Vrsovicka 65,
100 00 Praha 10

Mr J�lek
(02) 67 12 26 71
Mr Weiss, chief of the Division of Air Emission
(02) 67 12 22 40
Mr Brix, chief of the Dept. of Air Protection
(02) 67 12 28 35

Mr Kopecky, chief of the Dept. of Waste
(02) 67 12 22 16

Ms Tylova, deputy-chief
Dept. of Environmental Damages
(02) 67 12 20 69

Economia a.s., Obchodni vestnik
(02) 282 37 54, 282 22 16
Na Florenci 3,
115 43 Praha 1

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