| TABLE 4.1: BASIC COUNTRY INFORMATION | |||||
|---|---|---|---|---|---|
| Czech Republic | Hungary | Poland | Slovakia | Slovenia | |
| Population (mln) | 10.3 | 10.2 | 38.6 | 5.4 | 2.0 |
| Area (sq.km) | 78,900 | 93,000 | 312,700 | 49,000 | 20,200 |
| GDP (USD bln) | 52.3 | 44.3 | 134.3 | 18.9 | 18.6 |
| GDP growth (%) | 1.3 | 1.2 | 7.7 | 6.0 | 3.1 |
| Foreign Direct Investment (USD bln) | 7.3 | 16.2 | 13.5 | 1.0 | 1.7 |
| Unemployment rate (%) | 4.8 | 10.3 | 10.6 | 13.0 | 14.4 |
| Average monthly wages (USD) | 302.0 | 319.0 | 329.0 | 257.9 | 890.0 |
| Inflation rate (%) | 10.3 | 18.4 | 14.5 | 6.0 | 9.6 |
| Exchange rate to the USD | 33.5 | 197.8 | 3.4 | 34.0 | 167.8 |
| Environmental Expenditures in 1995 (USD mln) | 1,185.0 | 385.0 | 1,308.0 | 232.0 | 150.0 |
| Environmental Expenditures in 1995 (% of GDP) | 2.6 | 1.1 | 1.1 | 1.0 | 0.8 |
| Source: Business Central Europe, November 1997; 1996 Statistical Yearbook of each surveyed country. | |||||
In 1995, environmental expenditures in Poland amounted to USD 1,308 million. Approximately 40 percent of environmental spending was financed from national and voivodship environmental protection funds; while about a third was made up by investors' own funds; with less than a fifth coming from municipal budgets. The share of the state budget and foreign assistance programs was lower than 5 percent.
Loans and subsidies from the National Environmental Protection Fund account for about a quarter of the environmental expenditures in Poland. The Fund's financial resources were directed mainly toward air protection (45 percent of the total) and water protection projects, including wastewater treatment plants (40 percent of the total). Some environmental protection projects are partly financed by the Ekofundusz Foundation, administering the financial resources made available via the debt-for-environment swap scheme. Ekofundusz projects tend to give preference to environmental technologies imported from the United States, France and Switzerland, the fund's three founding countries. Foreign assistance programs account for less than 5 percent of Polish environmental expenditures. The PHARE program is the main foreign source of assistance.
Spending on air protection accounted for 53 percent of total expenditures (approx. USD 700 million), while water protection accounted for 37 percent (approx. USD 480 million), and waste management for 9 percent (approx. USD 124 million). The estimated size of the market for environmentally sound technologies for power generation was USD 240 million in 1995; the estimate for pollution control equipment 330 USD million, and for industrial process controls USD 98 million.
The key regulatory and enforcement authorities responsible for environmental protection in Poland include: the Ministry of Environment; other ministries with environment-related duties; regional environmental offices in voivodships (provinces); and municipal authorities. Responsibility for the enforcement of regulations lies with the state and voivodship environmental protection Inspectorates. Most environmental permitting is administered at the regional level in the country's 49 voivodships. Physical planning and construction permits as well as utility contracts are issued at the local level in over 2,500 municipalities.
The following environmental priorities have been set by the government:
The geographic distribution of the major environmental problems in Poland is uneven. Environmental expenditures in the 10 most polluted voivodships (from the total of 49) account for more than 60 percent of the total national figure. The most polluted voivodships are located in Silesia and in the Black Triangle region in the south and southwest of Poland. Others include the major industrial and economic centers located throughout the country (Plock, Warsaw, Szczecin, Lodz).
There are no effective formal channels for information on environmental business opportunities in Poland. Governmental organizations, R&D institutes, and professional associations, etc. are not seen as useful sources. Most businesses obtain information through personal and professional contacts, and participation in major trade fairs. POLEKO, held in Poznan every November, is the largest fair for pollution control technologies in Poland and in the CEE region.
Additional sources include annual environmental reports prepared by each of the 49 voivodships, and the Bulletin on Public Tendering, published regularly by the Public Tendering Office. Another potentially important source of information on potential business opportunities is the so-called List of 80, which includes industrial companies declared particularly damaging to the environment, and similar lists maintained in each voivodship.
There is no clearinghouse or similar source gathering information on the environmental technologies available in Poland. The common sources used by buyers include: personal contacts and discussions; brochures and leaflets distributed at trade shows; catalogues and information books purchased during shows, fairs and conferences; office visits of manufacturer's representatives; and design bureaus offering technical information.
The demand for environmental technologies in Poland was identified to be between moderate and high. The highest demand was found to be for environmental technologies related to the energy sector and water and wastewater treatment, followed by waste management technologies. This is closely related to current Polish environmental policy and regulations, where the major priority areas are air pollution control and protection of water resources.
Overall demand in the air sector was moderate. High demand was identified for technologies related to the abatement of air emissions and cleaner production. Increasing demand was expected for air pollution control and flue gas purification technologies. Most frequently noted were state-of-the-art systems to reduce emissions of sulfur dioxide, dust and particulates, nitrogen monoxides, and hazardous chemicals. Growing demand was also identified for instrumentation and process control technologies.
High levels of demand were identified for energy-related technologies. Specific technologies in high demand included new/efficient energy and heat generation systems, equipment for retrofitting/rehabilitation of existing systems, technologies related to heat recovery and energy savings, and process management and control equipment. Technologies related to the use of alternative/renewable energy sources were in high demand in the power and energy generation sector. A whole range of opportunities relate to the ongoing program of restructuring in the energy sector, where a strong emphasis exists on reducing the share of coal as the primary energy source, currently standing at 70-80 percent.
Among technologies in the municipal and industrial wastewater sector, high demand was identified for those technologies related to sludge treatment and disposal (very high demand); technologies for pollution prevention and waste minimization; monitoring equipment; advanced (tertiary) wastewater treatment technologies; and instrumentation, process control and software. Technologies for clean-up, quality restoration, and decontamination of surface and groundwater were also in high demand. Treatment of large amounts of saline water discharged from coal mining is still an unresolved problem.
In the waste management sector, high demand in all waste categories was expected for technologies related to pollution prevention and waste minimization, and recycling and resource recovery. For municipal waste, composting and biomass conversion technologies were identified as a high demand area. Technologies for collection, transportation, and storage of hazardous waste, and equipment for decontamination, site remediation, and clean-up of contaminated land for radioactive waste were also in high demand.
Demand for technologies related to noise, vibration and occupational health and safety was moderate.
It is expected that within the next three to five years focus will remain on end-of-pipe environmental technologies. Growing demand is expected, however, for pollution prevention and waste minimization technologies.
Major end-users of environmental technologies in Poland are municipalities and industrial plants. Industrial branches most commonly listed as main end-users included the power and energy generation sector, the chemical industry, and the mining sector.
The majority of respondents tend to approach each purchasing decision on a case-by-case basis, usually applying best-technology and best-practice criteria. About a third of respondents expressed preference for domestic environmental technology products. The key criteria used in purchasing decisions are quality, reliability and durability of products. Respondents clearly prefer to buy foreign environmental technologies from local representative offices rather than purchase directly from the manufacturer.
Key strengths of foreign environmental technology products are: high product quality, reliability and durability of products. Preferential credit or purchase terms from the supplier significantly increase the chances of selling environmental technologies in Poland.
High price was identified as the main barrier to purchasing foreign environmental technologies. Problems with ensuring reliable technical service and maintenance by authorized representatives were also a significant barrier, followed by the lack of information about suppliers and available products.
Perception of foreign environmental technologies was between good and excellent. Technologies from Austria, Germany, Japan, and the US were perceived particularly high, followed by Dutch and Scandinavian products. Notably, all foreign environmental technologies were ranked well above domestic products, which were evaluated as average. However, the overall level of knowledge of those foreign environmental technologies available in Poland was found to be low.
Foreign business activity in Poland is highest in the water and wastewater sector, followed by the waste management and air sectors. German, Austrian, American, Dutch and Scandinavian environmental technology firms are perceived as most active. In the air sector, German, American, and Scandinavian companies were evaluated favourably. These countries, and in addition, Austria and Holland, were seen to be most active in the water and wastewater sector. German, Scandinavian, Austrian and American suppliers were ranked high in the waste management sector, while in the energy sector, German, American and Dutch suppliers were most active.
