Our market screening is published!
In order to give insights of the public procurement markets of Moldova and Ukraine, P2GreenEST partnership worked on building a market screening document.
P2GreenEST is happy to share its market screening of the two targeted countries: the Republic of Moldova and Ukraine.
Targeting European SMEs willing to bid into the public procurement markets, the market screening gives insights of the current public procurement mechanisms, tips and tricks and market opportunities for both countries.
Furthermore, while the project is aiming to support green European SMEs, sectors and sub-sectors are identified in order to present areas where European SMEs can target their solutions to be implemented.
Moreover, the document is also a great tool for clusters and business support organisations in order to give information on market opportunities, legal basis and key issues to be tackled.
Findings for the Republic of Moldova:
- Water sector:
- In urban areas, 71,6% of residents have access to centralized water and only 63% to sewerage services. In villages, 27,9% have access to centralized water, and only 0,3% to sewerage services.
- Generally, only 44% of the population of the country have access to clean drinking water. Drinking water in villages comes 80% of the time from wells that do not meet safety standards.
- The sector is currently managed by the association “Moldova Apa-Canal”, which gathers and represents companies working in providing services of water supply and sanitation in the country.
- The governmental agency “Apele Moldovei” is in charge of implementing state policy in the field of water supply and sewerage, as well as participating in the elaboration of legislative and normative acts that govern the sector
- Currently, projects to establish and modernize the water sector are financially supported by international donors, but the procurers are state authorities (local and central public bodies)
- Energy sector:
- Moldova is relying on imports of gas and electricity: the country is only producing about 20% of its annual electricity consumption. Imports of electricity are coming in majority from Ukraine. Imports of gas are coming in majority from Russia. The Moldovan power plant MGRES (Moldavskaya) is one of the biggest in continental Europe and supplies energy for the country. The national company MoldovaGas (MGAS) is active in two domains: in supplying gas to the country and manages the market with other actors of the sector.
- Gas supply shock crisis risks are high due to political tension between Russia and Ukraine. A new pipeline with Romania was built to minimize these risks of being left out without gas for several weeks (which was the case in 2006 and 2009).
- The potential for renewable energies is high and not fully exploited, especially regarding wind and solar sources. Although renewable energies represent 20% of the energy mix, it is mostly consisting of solid biofuels. The country having an intensive agricultural activity, biomass energy represents a great potential to extend the country’s energy production.
- The sector is managed by the Ministry of Economy and Infrastructure and regional development. The Energy Efficiency Agency (EEA) is the implementing agency promoting investments in energy saving and renewable energy projects.
- Waste sector:
- The sector of integrated waste management is only at the incipient stage
- The main issue to be addressed is that the sector has almost non-existent infrastructure, due to the fact that it did not benefit from financial sources until recently.
- Currently, only basic waste management services are available in urban areas, less often in rural areas. Nevertheless, most of the waste is sent to landfills. Less than 2% of waste is recycled, the remaining 98% stays in storage, either in authorized or illegal landfills. High disparities between rural and urban areas exist.
- The sector is managed at local level by local public administration authorities, the framework by the Ministry of Environment and the Parliament and the waste management process by Environmental Agencies and Inspections
Findings for Ukraine:
- Water sector:
- Water resources differ between regions due to climate differences in the country
- Groundwater quality is poor dye to important concentration of iron and manganese, as well as old distribution pipes and outdated treatment plants
- In urban areas, wastewater disposal system access rate is of 75%. In rural areas, only 8%. The wastewater in rural areas is mechanically and biologically treated to around 90% of cases; while in rural areas only 45% of the time.
- It is estimated that 60 to 75% of the water technology is imported.
- The sector is managed by local authorities (municipalities and regions) as well as national public bodies such as the Ministry of Environment and natural resources, the Ministry of Health and Protection, the Ministry of Regional Development.
- Energy sector:
- Ukraine is on the way to energy independence with gas, electricity, hydro, coal and nuclear.
- The country represents high potential for renewable energies, which has seen numerous companies entering the market on this topic.
- Currently, 4% of electricity comes from renewable sources, the goal is to attain a share of renewable mix of 25% by 2035.
- While this sector attracts many key Ukrainian players, a list of potential business partners has been established in the document
- Waste sector:
- The country has only 2 incineration plants, 15 waste separation plants and no waste processing plants.
- 95% of waste is buried in landfills
- The sector is managed by the Ministry of Ecology and Natural Resources, the Ministry of Regional Development, Construction, Housing and Municipal Services and by municipalities
- More than 1000 companies are active in collecting and disposing municipal waste, both private and public entities.
- Opportunities persist in this sector, across the entire value chain, from the collection, to the sorting, the preparation, the recycling and the disposal of the waste.
Finally, an analysis of public procurement procedures in both markets allowed the partnership to identify the main stakeholders in each country and sector. Moldova and Ukraine’s participations to the Deep and Comprehensive Free Trade Agreement (DCFTA) and World Trade Organisation Government Procurement Agreement (WTO GPA) have ensured positive progress towards transparency, anti-corruption and open accessibility to public procurement opportunities.
[to access the document, click here]