|April 03, 2007|
Portugal: Environmental Sector
|This is a summary of a report from the Canadian Embassy in Portugal which provides a complete review of the environmental sector in the country, with information on each subsector and the opportunities available to Canadian companies. A link to the full report is provided below. |
Public awareness of environmental issues is increasing, with surveys indicating that air pollution and odours are the most important environmental concerns, followed by noise pollution. Recent statistical data showed that only 90% of the population has a supply of good quality water, with only 77% of water effluent (public works in course to reach 90% coverage after conclusion) and 99% of urban solid waste properly treated. Industrial pollution levels in Portugal correspond to a population of 26 million - 2.5 times the actual population. The EU targets a share of 38% as renewable energies by 2010, in line with the Kyoto Protocol which urges the country to reverse those trends
GLOBE-Net Update: in March 2007, Portugal's assistant secretary of state, Antonio Castro Guerra, announced a plan to invest EUR 8.1 billion in renewable energy projects around the country.
Alternative energies, coastal zones erosion prevention, environmental planning, water, forest and energy resources planning and management, industrial solid waste, and recycling are the main opportunities for Canadian companies in Portugal's environmental sector.
Cdn $11.67 billion was planned between 2000-2006 for water sanitation and waste treatment. EU funds of Cdn $4.17 billion were available, the balance to be funded by the government and the private sector. Portugal expects similar volumes of funding in the next 2007-2013 EU Cohesion Funds Programme for basic sanitation to meet average European standards. Limitations on the amount of public debt Portugal can assume provides the private sector with opportunities to undertake projects.
To attract private investment, since 1999 the Portuguese government offers a tax credit equal to 8% of the relevant investment in environmental protection assets such as equipment (in effluents, air pollution and solid waste). This tax credit is limited to 25% of net profit tax, to a maximum of Cdn $80,000.
For any foreign company pursuing projects, a local agent or partner is essential. The present environmental sector outlook in Portugal makes for "market niche" opportunities for Canadian companies.
Major competitors are water management and supply contractors like Generale des Eaux (Portugal)Ltd, Lusaqua (Vivendi, Lyonnaise des Eaux), Aguapor (AdP Group), AGS (Somague Group), and Indáqua (Mota & Ca.) Which are already well positioned in the water supply area. French, Spanish, German and Italian companies are also active in other areas.
Canadian companies interested in this sector should be aware that the major customers are the Ministry of Environment (and indirectly the Ministry of Finance, which manages the EU funds) and municipalities, which regulate the sector, and launch the public tenders.
The full version of the report is available for download.
This report is courtesy of: