Mission Statement

Environmental Trade Mission to Bulgaria, Romania and Turkey

October 1-5, 2007

Mission Description

The United States Department of Commerce, International Trade
Administration Global Environmental Team is organizing an Environmental
Trade Mission to Bulgaria, Romania and Turkey on October 1-5, 2007. This
event offers a timely and cost-effective opportunity for U.S. firms to
tap into fast-growing markets for environmental equipment, technology
and services in the newest European Union (EU) member countries and
nearby Turkey. Environmental products and services holding the highest
potential for U.S. exporters to these markets include those in the areas
of water and wastewater, soil remediation, solid and hazardous waste,
and air pollution control.

Bulgaria and Romania joined the EU in January 2007 and are under heavy
pressure to meet EU requirements for treatment of solid waste, water,
and wastewater, and as well as to control air emissions. More than
US\$46 billion in environmental investment in Bulgaria and Romania is
anticipated by 2019 to meet EU standards. Nearby Turkey is included in
this mission as a possible future EU member that has already adopted
EU-consistent environmental regulations. Turkey is undertaking
significant environmental infrastructure upgrades estimated at US\$80
billion over the next 20 years.

During the trade mission, participants will be exposed to these market
opportunities and develop key government and private sector contacts in
each country. Trade Mission activities in each country will include
country market briefings, one-on-one appointments with prospective
business partners, and high-level meetings with government officials
responsible for environmental projects.

# Commercial Setting

# Bulgaria 

Bulgaria is a promising, but largely unexplored market for U.S.
environmental pollution control products, equipment, services, and
technology. Bulgaria's recent EU accession, coupled with domestic
concerns about human health, industrial efficiency and tourism
promotion, is driving a massive environmental cleanup and strict
implementation of environmental standards. Bulgaria will invest more
than US\$11.7 billion for water projects alone in order to meet EU
requirements under the terms of the nation's January 2007 accession.
Almost all the technologies needed for these environmental upgrades will
have to be imported. U.S. companies will have best prospects for sales
in Bulgaria in the following areas: wastewater and drinking water
treatment; recycling and waste utilization; solid and hazardous waste
collection, disposal and treatment; and clean production technologies.

Major problems in Bulgaria's water sector include uneven distribution of
water resources, nitrate and heavy metal pollution of surface water, a
dilapidated distribution pipe network and an insufficient number of
wastewater treatment plants. Of the existing sewage network, 17 percent
needs to be replaced either due to age or outdated technology, and 98
percent of villages have no sewage systems. Urban wastewater treatment
plants are planned for 430 cities with populations over 2,000 by 2015.
Most industries need to construct or upgrade their wastewater treatment
facilities within 3-4 years to meet the new EU requirements. With few
exceptions, Bulgaria's landfills fail to comply with EU requirements and
will need to be reconstructed. Strong demand exists for solutions for
handling hazardous, solid and industrial waste. Major demands for air
pollution control solutions include desulfurization installations at
large combustion facilities, filters for reduction of heavy metal and
organic pollutant emissions from the energy sector, and prevention of
dust, sulfur dioxide and heavy metal emissions in the metallurgy sector.

# Romania

Romania offers immense opportunities for U.S. environmental companies as
the country undertakes an estimated \$35 billion in investments required
to upgrade environmental conditions to EU standards by 2019. EU funds
are expected to cover around 34 percent of investments, with the rest
requiring government and private funds, including loans from
international financing institutions and private-public partnerships.
Best opportunities for U.S. environmental exports to Romania focus in
the highest priorities for these investments, which include water and
wastewater, solid and hazardous waste management, and large combustion
plant air quality control.

Romania requires an estimated \$24 billion in water and wastewater
system upgrades to meet EU requirements. Currently, the Environment
Ministry is investing \$4.5 billion in 40 water infrastructure projects.
Plans are also underway to implement a national waste collection system
between 2007 and 2017 involving a \$4-4.5 billion investment. To comply
with EU requirements for industrial pollution, Romania needs to
modernize 716 industrial installations and already 25 percent of the
estimated \$3.2 billion required has been invested in these industrial
upgrades. Romania's priorities for air pollution control focus on nine
cities of more than 250,000 inhabitants. In addition to building bypass
roads aimed at protecting the population from traffic pollution, the
government is focusing on the elimination of ozone depleting substances,
as well as controlling pollution caused by electric and thermal power
production, the chemical and petrochemical industry, and ferrous and
non-ferrous metallurgy.

# Turkey

In 2006, Turkey adopted a new environmental law aimed at harmonizing its
regulations with EU standards and improving enforcement. Environmental
infrastructure investment to meet these new standards is estimated at
US\$80 billion over the next 20 years, with approximately 70 percent
government and 30 percent private investment expected. Half of this
investment will focus on drinking water and wastewater facilities and
the balance on solid waste and air pollution prevention. Best
opportunities for U.S. exports are in the areas of waste management,
landfill development, waste-to-energy projects, recycling, industrial
cleaning and maintenance, air pollution control, and drinking water and
wastewater management and treatment.

Turkey's existing environmental infrastructure includes wastewater
treatment that reaches just 11 percent of the population nationwide. In
the most sophisticated city of Istanbul wastewater treatment is at 85
percent, with plans underway for further upgrades. According to the
latest Ministry of Environment data, municipal waste consists of 49
percent organic waste and 38 percent recoverable waste, with the rest
consisting of ash, slag, stone, and other waste. Only 29 percent of
waste is dumped in organized landfills and 1 percent is composted. A
single hazardous waste facility serves all of Turkey. In order to meet
excess demand, there are plans to build four new hazardous waste
disposal and treatment plants. Environmental investments will be
primarily by the municipalities, but the government also welcomes
private sector investment in these projects. Air quality is not yet
monitored on a national basis, but major municipalities are beginning to
track emissions to improve enforcement, especially from the major
pollutant sources, industrial plants, thermal power plants and vehicles.

# Mission Goals

The goal of the Environmental Trade Mission to Bulgaria, Romania and
Turkey is to position U.S. company participants to take advantage of the
expansive environmental business opportunities in these markets. U.S.
participants will gain first-hand market exposure, access to government
decision makers, and meet with private-sector contacts, including
potential agents, distributors and business partners.

# Mission Scenario

The Environmental Trade Mission will include three stops: Istanbul,
Turkey; Bucharest, Romania; and Sofia, Bulgaria. In each city, trade
mission participants will benefit from country market briefings and
one-on-one business meetings with prospective agents, distributors,
partners, and end users. Mission participants in some cities will also
meet with high-level government officials and benefit from networking
events.

# Mission Timetable

# *Istanbul, Turkey*

September 30, 2007 Arrive Istanbul

October 1, 2007 *Morning:* Country Market Briefing

One-on-one business appointments

*Afternoon*: One-on-one business appointments

October 2, 2007 *Morning:* Meeting with Government Officials

> Technical Site Visit
>
> *Afternoon:* Travel to Bucharest

# 

# *Bucharest, Romania*

October 3, 2007 *Morning*: Country Market Briefing

One-on-one business appointments

*Afternoon:* One-on-one business appointments

*Evening*: U.S. Embassy Reception

October 4, 2007 *Morning*: Meeting with Government Officials

*Afternoon:* Travel to Sofia

## Sofia, Bulgaria

October 5, 2007 *Morning*: Country Market Briefing w/Government Official
Briefings

One-to-one business appointments

*Afternoon:* One-on-one business appointments

# Criteria for Participation and Selection

-   Relevance of a company's business line to mission goals.

-   Timeliness of company's signed application and participation
    agreement (including payment of a participation fee of \$3,800).

-   Company's potential for business in Bulgaria, Romania and Turkey.

-   Minimum of seven and maximum of ten participating companies in the
    mission.

-   Provision of adequate information on company's products and/or
    services, and company's primary market objectives, in order to
    facilitate appropriate matching with potential business partners.

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-   Certification that the company meets Departmental guidelines for
    participation. A company's products or services must be either
    produced in the United States, or, if not, marketed under the name
    of a U.S. firm and have at least 51 percent U.S. content of the
    value of the finished product or service.

Any partisan political activities (including political contributions) of
an applicant are entirely irrelevant to the selection process.

Mission recruitment will be conducted in an open and public manner,
including publication in the *Federal Register*, posting on the Commerce
Department trade mission calendar -- www.ita.doc.gov/doctm/tmcal.html --
and other Internet web sites, press releases to the general and trade
media, direct mail and broadcast fax, notices by industry trade
associations and other multiplier groups, and announcements at industry
meetings, symposia, conferences, and trade shows.

Recruitment for the mission will begin in March 2007. This mission is
open to 10 environmental companies with market potential in Bulgaria,
Romania and Turkey. Space is available on a first-come, first-serve
basis. Participation is not secured until payment is processed.
Applications close by August 15 or earlier if the trade mission is full.
The participation fee for the event is \$3,800 per company plus \$500
per additional company representative. The participation fee does not
include travel, meals, and lodging costs. Applications received after
the closing date will be considered only if space and scheduling
constraints permit.

**U.S. Contact Information:**

Trade Mission Website: Forthcoming

Julia Rauner Guerrero

Global Environmental Team Leader

U.S. Department of Commerce

U.S. Export Assistance Center -- San Diego

<julia.rauner.guerrero@mail.doc.gov>

Tel: 619-557-2963; Fax: 619-557-6176

Bill Cline

Global Environmental Team Deputy Leader

U.S. Department of Commerce

U.S. Export Assistance Center -- Reno

<bill.cline@mail.doc.gov>

Tel: 775-784-5203; Fax: 775-784-5343