MarktstudieWaterMondiaalEgypte Def

  • View
    525

  • Download
    2

Embed Size (px)

Text of MarktstudieWaterMondiaalEgypte Def

Water Mondiaal Egypt Study 3.5

Quick scan and market analysis of the Egyptian water sector Challenges and opportunities for the Dutch private sector

2

Front page Pharaoh Dancing Party. The scene is a dancing party held for the Queen and her guests. Pretty girls dancing whilst playing the musical tambourine, the queen holding a beaker of Nile water; the original scene is in the tomb of Queen Nefertari in the Valley of the Queens, West Bank, Luxor, Egypt.

3

Water Mondiaal Egypt Study 3.5

Quick scan and market analysis of the Egyptian water sector Challenges and opportunities for the Dutch private sector

Occidental Oriental Consult www.oo-consult.com Cairo, Den Haag 2011

This Study has been prepared by Occidental Oriental Consult for the exclusive use and disposition of AgentschapNL and the Netherlands Water Partnership, of Den Haag, the Netherlands. Copyright 2011, is retained by Occidental Oriental Consult. No part of this document may be shared, reproduced, or otherwise commercialized, wholly or partially, in any way, shape, or form without the express and prior written consent of any of the Parties above.

4

5

Contents 1. 2. 3. In summary Study objectives, approach What the Netherlands can, and wants, in Egypt 3.1 Holland BV vs global moral responsibility 3.2 Egypt on the threshold 3.3 Water Mondiaal; again another program? 3.4 A short water history of two countries 3.5 What Water Holland thinks about Egypt 3.6 What Holland BV thinks about Den Haag 4. Water in Egypt; a helicopter view 4.1 Water issues 4.2 The Egyptian Public Water Sector; organisation 4.3 Constraints and concerns 4.4 25th January Revolution and the Arab spring 4.5 Where to: the Egyptian economy 5. Egyptian market; segmentation 5.1 Sector wide 5.1.1. 5.1.2. 5.1.3. 5.1.4. 5.1.5. Studies & Services in Water Resource management New water resources studies, development Hydraulic structures in the Nile and distribution canals Canal and drain infrastructure Coastal protection 1 3 5 5 5 5 6 7 12 14 14 19 21 23 27 29 31 31 34 36 38 41 43 47 50 52 54 56 57 58 60 62 63 64

5.2 Urban Water & Wastewater treatment 5.2.1. 5.2.2. 5.2.3. 5.2.4. Public Private Partnerships MHUUD W&WW State funded investments MHUUD W&WW - Multilateral and foreign sponsorship Private initiatives and overlooked areas

5.3 Desalination 5.4 The uniformed branches 5.5 Agriculture and horticulture 5.2.5. 5.2.6. 5.2.7. 5.2.8. Irrigation Water management Irrigation and farming Water services to the food industry Aquaculture

6

5.2.9. 5.2.10. 5.6 Industry

Supply chain improvements Agricultural product re- selection

66 68 69 73 73 74 75 75 75 77 79 79 79 80 80 81 81 81 82 82 82 83 83 83 83 84 84 84 84 85 85 85 86 86 86

5.7 Home Consumer market 5.8 Water education 5.9 Getting in touch and finding partners 6. About money 6.1 Cost base Holland: Expensive! 6.2 Usual business not as usual 6.3 Dutch development collaboration: a new chapter 6.4 Funding: a line-up of Dutch Government programs 6.3.1. 6.3.2. 6.3.3. 6.3.4. 6.3.5. 6.3.6. 6.3.7. 6.3.8. 6.3.9. 6.3.10. 6.3.11. Partners voor Water- Springboard for international ambitions InnoWATOR Garantiefaciliteit ORIO- The Facility for Infrastructure Development PSI- the Private Sector Investment programme PUM- Netherlands Senior Experts MMF- Matchmaking Facility CBI- Centre for the Promotion of Imports from Developing countries BOCI- Domain International Cooperation DECP Dutch Employers Cooperation Programme FMO- Financierings Maatschappij voor Ontwikkelingslanden NBSO- Netherlands Business Support Offices

6.5 From Innovation support to Water support 6.4.1. 6.4.2. 6.4.3. 6.4.4. 6.4.5. 6.4.6. 7. 7.1.1. 7.1.2. 7.1.3. 7.1.4. 7.1.5. Innovatiebox BMKB- Borgstelling MKB Kredieten WBSO- law for the promotion of R&D Groeifaciliteit growth facility Garantie Ondernemingsfinanciering (GO) Innovatiekrediet Target the right customers Educating the market Join forces Focus on customer needs and improve the embedded added value Enhance the perceived value

Working in the Egyptian market place

7

7.1.6. 7.1.7. 7.1.8. 7.1.9. 7.1.10. 7.1.11. 7.1.12. 8. 9. Action

Make your local presence count Reduce production cost The right partner and local setup Presence means being present Business in Egypt, customs and the law Negotiating a price Business etiquette in Egypt: what you won't find on the Internet

87 87 88 89 89 91 91 93 96 98 99 100 101 106 107 109 110 112 116 122 123 126 137

Acronyms & translations

10. Environmental legislation 11. Names 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 Professional business advisors Egyptian government, Water related (semi-) government organisations Government Agriculture, Environment, Finance International Organisations Financial Institutions and multilateral donors Knowledge Institutes Consultants and consulting engineers Contractors Manufacturers of Equipment Agricultural producers and large farms Egyptian companies in water equipment business, agents Home appliances

8

9

1.

In summaryAutumn 2011, when this study has been published, Egypts January 25 Revolution will be nearly a year old. With a newly elected Parliament and President, the uncertainty about the direction of the future that has stalled decision making will have made way for the need to catch up and make up. Egypts population has grown with another 1 million, pent-up demand for water quality and sanitation has become more urgent than ever, hoarded cash will look for export driven industry investments and Egyptian decision makers will look for partners trusted of old. The Netherlands is one of such old partners, with strong connections going back to the Delta drainage projects necessitated by the Aswan High Dam. However, the terms of engagement have changed since these days. Where earlier contracts for Dutch consultants and contractors often came on the back of Dutch development aid projects, the New Egypt and a Netherlands with a more results based international development collaboration agenda call for a more competitive and inventive approach. And, as Egyptian water engineers with hands-on Hollandexperience fade away and move on to retirement, engaging a Dutch firm is no longer an automatism. As the opportunities are getting bigger, the fight for business will be tougher. A rising Euro is no help. In a nutshell, the vast Egyptian market still offers exciting opportunities for Dutch business and knowledge owners, but demands hard work and flexibility from those who want to be successful. Mega construction projects, such as Nile hydraulic structures, PPP sanitation projects and irrigation improvement efforts are big value contracts for local and global contractors. Interesting niches emerge in the supply of specialised equipment and knowledge as subcontractor or adviser. Over the years, Dutch consultants have made many in-depth studies to support the Egyptian Ministries of Water and Agriculture in the development and optimisation of resources for a limited amount of water. As new development collaboration priorities move financing for such studies from the Dutch Government to multilateral agencies like the WorldBank and the EU, the involvement of Dutch consultants becomes harder competitive work. Egypts largest water market is undoubtedly in sanitation: sewage and wastewater treatment plants. Piped water supply has arrived at nearly every home and the emphasis is now on mitigating health hazards and returning used water to the system for repeated use. With critical budgets and an enormous task ahead, Egypt offers opportunities for technologies that can reduce construction time, investment cost and operation expenses, and improve quality. Sanitation solutions are needed in a diverse range from just a few 100 households to mega city answers. Desalination, not just by reverse osmosis, will become increasingly important as urban expansion and tourism populate the coastal areas. Ironically, while there is keen demand for new technologies like low energy and solar desalination, the introduction of cost reducing hi-tech ultra filtration, seen as difficult, meets with hesitation. 1

-

-

-

-

Egyptian Industry has not been a major investor in water treatment technology and equipment, but this is changing. Improved post revolution law enforcement, the reduction of energy and water subsidies and export customers demanding clean and responsible products all converge to make manufacturers pay more attention to the water they use and the waste water they dispose of. Agriculture is Egypts largest consumer of water. With water supplies hitting a ceiling, demand for efficiency improvements abound. This includes getting water in the most optimal way to the crop: irrigation and getting the crop in the best way to the consumer: the supply chain. Non traditional methods and crops suitable for desert reclaimed land and aquaculture show equal promise. Climate change effects are reaching Egypt, particularly on the Mediterranean coast and answers are needed for creeping salinisation of agricultural land and protection of the shores.

-

-

There is more to do in Egypt, both with the public and the private sectors, in the transfer and development of know-how, in localising the production of equipment and in involving the population at large in the realisation that water is a scarce resource and can no longer be taken for granted. Traditional engagement models are unlikely to work as well as before and the Dutch seller will have to work harder for his contract. Developing a visible presence and reputation in the Egyptian market, localising production and maintaining a continuum of such presence and the quality he is seen to bring to his clients and improving hi