The new nations that emerged from the conflicts are far from being ”normal” and ”sovereign”, nevertheless, the need for rehabilitation and reorganisation of the infrastructure is particularly high there.

”The different levels of economic development are also the reason why a uniform market preparation strategy for infrastructure projects is neither possible nor useful,” confirms Dr. Erwin Sebron of the VA Tech WABAG. A successful appearance on this market requires the careful selection of projects, which are evaluated according to the regional conditions,” continues Sebron.

The partially diverging structures and framework conditions necessitate a differentiated risk analysis and the evaluation of opportunities. In implementing projects, different financial possibilities and technical prerequisites have to be taken into account right from the beginning, which might eventually lead to fundamentally different approaches. In spite of the different developments trends and conditions can be identified that are applicable – although with different levels of development - to the region as a whole:

• No formation of capital for several decades;
  
• Water supply and waste water treatment is under public administration;
  
• In the field of water infrastructure investment is urgently needed;
  
• The existing structures do not comply with the latest state-of-the-art;
  
• Means of financing are scarce or are lacking completely;
  
• Consumer charging is limited due to the economic situation;
  
• Framework conditions for privatisation often diverge and are insufficient;
  
• The sum total of problems cannot be resolved without the assistance of third parties.

”Today, the individual states orient themselves toward the European Union”, knows VA Tech WABAG financial expert Sebron. ”This way, EU standards and regulations – both as to technical requirements and economic development – become models and benchmarks for Eastern European countries,” continues Sebron.

On the one hand, the countries want to move closer to the EU themselves and hope to access soon, on the other, however, these benchmarks are the conditions for funds and support form the EU. ”Following the trend in the rest of Europe and as a measure for capital formation, these privatisation tendencies are also pursued in Central and Eastern Europe and are a considerable challenge for the offerer”, explains Sebron.

From the view of VA Tech WABAG expert, water and wastewater management is a potential growth market compared to other branches. There is a big pent-up demand in Central and Eastern Europe; what has been missed has to be made up for soon and the state of the environment has to be improved quickly. ”The population is developing an environmental awareness and calls not only for clean air, but also for improvements on the water sector,” knows Sebron. The first step is to maintain water supply and waste water treatment and the secure the fundamental needs, in the second step structured qualitative and quantitative goals have to be set in view of improving supply and treatment.

Austria’s geographical and possibly also mental closeness to many countries of Central and Eastern Europe allows the domestic economy to judge the conditions in those countries more realistically than any other country.

A ”legacy of monarchy”, institutions, organisational conditions, administrative principles, education, but also regulations have the same roots.

In addition, Austria offers attractive export credits, for example through the Austrian Kontrollbank, the Ökofonds, the Finanzierungsgarantie-gesellschaft (the financing guarantee association) and a banking apparatus that is well established in the CEE countries.

”In the technological field, too, domestic companies are well equipped and can offer attractive service,” Sebron is convinced. (Source: aqua press Int. 2/2000)

Information & Contact:
VA Tech WABAG
Siemensstraße 89,
A-1210 Vienna
Phone +43 1 25105-0