Abstract
Research Overview
International Financing to Revive the Russian Market for Municipal Water and Wastewater
The Russian market for municipal water and wastewater treatment, supported by
international financing, is generating numerous opportunities for suppliers,
thereby rejuvenating interest and demand in this geographically widespread
continent. Refurbishment in the Russian market is being primarily facilitated
by international loans and financing programs worth nearly $1 billion by
various International Financing Institutions (IFIs), which include the World
Bank as well as the European Bank for Reconstruction and Development (EBRD).
Increased international investment and financing programmes together with the
growing decentralisation and privatisation of water facilities are bolstering
positive trends in the market.
Current Market Opportunities Favour Local Manufacturers
Local manufacturers and suppliers control almost 70.0 per cent of the market
share, thereby dominating the market for water and wastewater treatment
equipment as well as networks and pumping stations. Their leadership is likely
to be sustained by apprehensions about international operators and investments
in Russia until they prove their long-term interest, not just in big cities
such as Moscow and Saint Petersburg, but also in middle and small-sized cities.
"International companies have found that joint manufacturing is vital for
entering the Russian water markets," says the analyst of this research
service. "Alliances with local distributors have also proven largely
successful."
Decentralization and Privatization is a Key Driver in this Market
The water sector in Russia is primarily experiencing problems associated with
physical deterioration of systems, centralization of responsibility at the
municipal level, the need to improve management capacity and weak public
finance mechanisms.
"However, with the Russian Government's initiative to decentralize and
privatize water bodies, the local dynamics are likely to change and increase
competition among the existing suppliers and open the market up to foreign
participants as well," notes the analyst.
Table of Contents
- 1. Executive Summary
- 1. Summary of Key Findings
- 1. Key Market Highlights
- 2. Investment Prospects
- 3. Competitive Analysis
- 4. Strategic Conclusions
- 2. Introduction
- 1. Strategic Market Intelligence
- 1. Study Motivation
- 2. Objectives
- 2. Market Definitions and Segmentation
- 1. Definitions and Scope
- 2. Market Segments
- 3. Research Methodology
- 3. Market Challenges and Forces
- 1. Top Ten Market Challenges
- 1. Challenges Facing the Market
- 2. Market Forces and Influential Trends
- 1. Forcefield Analysis
- 2. Key Drivers
- a. Emerging Demands for Advanced and Efficient Technologies
- b. Decentralisation and Increasing Privatisation of Water Facilities
- c. Increasing Investment and Financing Programs (EBRD, World Bank etc)
- 3. Key Restraints
- a. Old Style Management, Bureaucracy and Corruption at the Municipal
Level
- b. Lack of Commitment, Resources and Organizational Capacity to
Address Environmental Problems
- c. Prolonged Under-investment and Use of Obsolete Technology
- d. No Governmental Guaranties for International and Local Investors
- 4. Regulatory and Political Initiatives
- 5. Influential Financing Programmes
- 6. Privatisation and Outsourcing Trends
- 4. Market Evaluations and Growth Prospects
- 1. Investment Trends
- 1. Introduction and Status of Municipal Waterworks
- 2. Market Forecasts
- 1. Total Market Value and Growth Forecasts
- 2. Application Forecasts: Water and Wastewater Segments
- 3. New Build vs Refurbishment Works
- 4. Project Opportunities: Networks and Treatment Plants
- 5. Network Solution Trends
- 6. Treatment Plant Solution Trends
- 5. Competitive Analysis
- 1. Competitive Landscape
- 1. Competitive Structure Analysis
- 2. Competitive Positioning
- 1. Tiers of Competition
- 2. Positioning of Leaders
- 3. Competitive Barriers and Entry Strategies
- 6. Strategic Conclusions and Case Studies
- 1. Strategic Dynamics
- 1. Solution Dynamics
- 2. Market Lifecycle by Solutions
- 3. Critical Success Factors
- 2. Highlights of Interesting Projects
- 1. Successful International Contracts
- 2. Successful Local Contracts
- 3. Case Study 1
- 4. Case Study 2
- 5. Case Study 3
- 6. Case Study 4