Bangladesh positioning survey

Bangladesh Positioning Survey for the Dutch water sector

Aidenvironment

Commissioned by

RVO/NWP

April 2015

Project number 2526

Aidenvironment

Barentszplein 7

1013 NJ Amsterdam

The Netherlands

+ 31 (0)20 686 81 11

[email protected]

www.aidenvironment.org

Project number 2526 2

Bangladesh

Contents

Glossary 3

Executive Summary 4

1. Country profile 6 1.1 Facts and figures 6 1.2 The water situation 7 1.3 The water sector 10

2. Chances and opportunities 14 2.1 Current situation 14 2.2 Trends 19 2.3 Opportunities 20 2.4 Product-Market Combinations 28

3. Market (entry) strategies 31 3.1 Entering the country 31 3.2 Seeking finance 32 3.3 Sector performance 35 3.4 Successes and lessons learned 37 3.5 Drivers and bottlenecks 40 3.6 Strategies for PMCs 41

Appendix I: Methodology 45 Appendix II: Finance 47 Appendix III: Elaborated outcomes of web survey 54 Appendix IV: Sources 57 Appendix V: Respondents 58

The responsibility for the contents of this report lies with Aidenvironment and Panteia. Quoting

numbers or text in papers, essays and books is permitted only when the source is clearly mentioned.

No part of this publication may be copied and/or published in any form or by any means, or stored in

a retrieval system, without the prior written permission of Aidenvironment and Panteia.

Aidenvironment and Panteia do not accept responsibility for printing errors and/or other

imperfections.


Glossary

ADB Asian Development Bank

B2B Business to business

B2C Business to consumer

BDP Bangladesh Delta Plan

BTk Bngladeshi Taka

BWDB Bangladesh Water and Development Board

CSR Corporate Social Responsibility

DG Directorate General

EIB European Investment Bank

EKN Embassy of the Kingdom of the Netherlands

GoB Government of Bangladesh

GoN Government of the Netherlands

IFI or IFIs International Financial Institute(s)

IWRM Integrated Water Resource Management

JMP Joint Monetoring Program (Unicef)

LGD Local Government Division

MDG or MDGs Millennium Development Goal(s)

MoA Ministry of Agriculture

MoWR Ministry of Water Resources

NGO or NGOs Non Governmental Organization(s)

NRW Non Revenue Water

NWP Netherlands Water Partnership

NWRC National Water Resource Council

ODA Official Development Aid

OS Ontwikkelings Samenwerking (Development Aid)

PMC or PMCs Product Market Combination(s)

PPP or PPPs Public Private Partnership(s)

PSO or PSOs Public Service Organization(s)

RMG Ready Made Garment

RVO Rijksdienst voor Ondernemend Nederland

SME or SMEs Small Medium Enterprise(s)

SWF or FDW Sustainable Water Facility

WASH Water and Sanitation and Hygiene

WB World Bank

WOP Water Operating Partnership

WSS Water and Sanitation Services

WTP or WTPs Water treatment plant(s)

WUA or WUAs Water Users Organization(s)

WWTP or WWTP(s) Waste water treatment plant(s)


Executive Summary

Introduction:

The aim of the water positioning survey is to identify opportunities, product market combinations

(PMCs), strategies, and approaches for the Dutch water sector in Bangladesh. Chapter 1 gives an

overview of the current water situation and the water sector, chapter 2 provides insight in the current

activities, opportunities, and potential PMCs that are present for the Dutch water sector, and chapter

3 elaborates on the (positioning) strategies to enter and operate on the market.

Demand (pressing needs):

Being one of the largest deltas in the world, water is everywhere in Bangladesh. Water is a threat and

a life line for people to survive, industries to grow, and farmers to produce food. Across the water

sectors pressing needs are in every sub sector. Looking at the trends in section 2.2, we prioritize the

following pressing needs:

Facing dropping groundwater levels and upcoming conflicts between water for direct consumption

and productive use, irrigation (controlling) techniques, practices (and know how) must improve.

Facing rapid population growth and urbanization, the provision of water, sanitation, drainage

(flood protection), and wastewater treatment in urban context will have a high priority.

Facing effects of climate change, protection of productive areas (agriculture) and protecting the

livelihood of communities will absorb significant resources related to delta management.

Facing trans-boundary water issues and effects of climate change, the coastal areas will face

increasing salinity of groundwater and soil (decreasing yields and less access to drinking water).

Current interest and activities of Dutch organizations:

The share of Bangladesh in the total export to the 12 Water OS countries is 21% (second position after

Indonesia). The main activity of the Dutch water sector is to provide advice and capacity building on

water management and water supply and treatment. The public sector and knowledge institutes are

the main client groups. Additional promising areas are IWRM, and water productivity (food), cross-

overs of interest are water and ICT, and water and food. EKN and RVO support focus on WASH and

water management (delta, water efficiency), waste water treatment in the garment sector is a niche

project.

Potential product market combinations (PMCs):

The confrontation of local demand and Dutch interests lead to the following potential PMCs:

Land reclamation, small scale inland dredging, port development and inland water transport

(client: public sector)

Delta and polder management, flood protection, TA and infrastructure (client: public sector,

current Dutch support program: Bangladesh Delta Plan)

Small scale water treatment plants for industrial waste water (client: RMG sector (tier 1))

Potential cross-over is Water and ICT in relation to agriculture. From the perspective of development

impact WASH (especially within urban context) remains a PMC of interest.

Suggestions on positioning strategies for future activities:

Doing business in Bangladesh takes time. The public sector is the dominant client group, to increase

access to this client joint bidding (e.g. with local or international consultancies) on tenders, and

tapping into Dutch government programs is recommendable. Master Plans and technology

demonstration platforms are effective ways for positioning the Dutch knowledge and products. WOP

strategies proof to be effective when operating in urban areas on water, sanitation and drainage.


This positioning survey is not a fully fledged marketing survey or report. This survey builds on

previous market studies performed by University of Nijenrode and MottMacDonald and combines

these insights with the results of a web survey and strategic interviews among Dutch water sector

players. This survey elaborates on the (current/base line) activities of the Dutch water sector and

flags potential opportunities and product market combinations. The survey makes suggestions on

possible positioning strategies for Dutch sector players. To make a well balanced decision on entering

or operating on these markets we recommend organizations to perform an in-depth due diligence

themselves.


1. Country profile

This chapter provides an overview of all relevant basic information on the country in general and the

water sector specifically. The chapter has three parts: 1) facts and figures on the country, 2) the

(physical) water situation, and 3) the water sector, describing the institutional setting and

framework. Part 3 ends mentioning the Dutch Government strategy on cooperation.

1.1 Facts and figures

Table 1 Facts and Figures

Bangladesh

Government type: Parliament democracy

Political situation

The 2013 elections were controversial. The biggest opposition

parties did not participate in the elections as they claimed that

the elections were undemocratic.

Stability

5,95 (BTI 2014 political transformation index (position is 62 out

of 129))

Language

Bangla (Bengali) and English

Population

166 million (2014 est.), population growth: +1.6%

Economic growth (%)

5.8% (2013 est.), expected growth: 7,3% (ADB 2011/EU 2013)

GDP (PPP)

USD 324.6 billion (2013 est.)

GDP (PPP) per capita USD 2,100 (2013 est.)

Unemployment rate

5% (2012 est.), about 40% of the population is underemployed;

many participants in the labor force work only a few hours a

week, at low wages


Inflation rate 7.6% (CIA 2013 est.), forecasts 6.5% (ADB)

Foreign direct investments

1% of GDP (2011), FDI stock at home USD 7,04 billion, the

Netherlands are the third largest investor (after Egypt and US)

investing USD 116.75 million (WTO 2012)

Imports USD 32.94 (2013 est.)

Import partners

China 21.7%, India 16.3%, Malaysia 5.2%, Republic of Korea

4.5%, Japan 4.1% (2013 est.)

BTI index on banking system 5 (out of 10)

Doing business index 173 (out of 189)

WEF Global competitive index 3,7 (position is 110 out of 148)

Transparency Index 145 out of 174

Source: CIA Intelligence 2012-2014, BTI 2014, World Bank Statistics, World Economic Forum, others

1.2 The water situation

This section describes the physical water situation (including flooding of river systems, coastal zones

and maritime areas), the influence of climate change, the effect of irrigation and the water pressure.

1.2.1 Physical description of the water situation

Rainwater:

Bangladesh is divided into seven hydrological regions. The Ganges basin in the western part of

Bangladesh is drought prone and receives the least average rainfall in the country. Khulna in the

Southwest suffers from salinity intrusion from the sea. The Southeast Hill basin experiences heavy

rainfall owing to its location on the Bay of Bengal. The Meghna basin in the Northeast region receives

the highest average rainfall in the country. The other basins are Cox’s Bazar and Rajshahi (see figure

below).

Figure 1 Hydrological Regions

Two major basins

Source: Google maps


Groundwater

The availability of groundwater resources in Bangladesh is determined by the properties of the

groundwater storage reservoir and the volume of annual recharge. The source of recharge is rainfall,

flooding, and stream flow in rivers. The quaternary alluvium of Bangladesh comprises a huge aquifer

with reasonably good transmission and storage properties. Heavy rainfall and inundation during the

monsoon substantially recharge aquifers annually.

Seawater:

Bangladesh has a 580 kilometer coast line. Seawater is more a threat than a solution to the people of

Bangladesh. Seawater causes flooding and leads to salinity intrusion in the coastal region, having

increasing negative impact on food production and the provision of drinking water.

Surface Water:

The ratio of peak to low season flow is approximately 25:1. Only 7% of the country's water surface

flow has a source within the country borders, the other 93% comes from trans-boundary rivers

shared with India, Myanmar, Nepal, Butan and China1. Bangladesh has limited control over rivers

entering its borders; future developments, (especially in India), will increasingly have an effect on the

availability of water in the rivers in Bangladesh.

1.2.2 Climate and climate change

Climate vulnerability is high in Bangladesh particularly to disasters (cyclones and flooding). The

National Water Management Plan (formulated in 1999) has considered the effect of climate change in

estimating water demand in various regions of the country and mentions the impacts of climate

change like increase water demand particularly in Ganges basin, prolonged floods and drainage

congestions and negative impacts in coastal zone due to rising sea-level2 which all has implications for

food security of the country. The Water Act (2013) is designed for integrated development,

management, extraction, distribution, usage, protection and conservation of water resources in

Bangladesh.

Climate change is likely to increase river salinity leading to shortages of drinking water and

irrigation, and significant changes in the aquatic ecosystems in the Southwest coastal areas of

Bangladesh during dry season by 2050.

Increase in soil salinity may lead to decline yield by 15.6 percent of high-yielding-variety rice and

reduce the income of farmers significantly in coastal area.

Source: World Bank website February 2015

1.2.3 Pressures on water sources3

Total renewable water resources 1,227 km2

Fresh water withdraw 35.87 km2 / yr

Especially in the Northwestern part the level of groundwater is declining rapidly. The areas face

frequently drought while high water consuming agriculture (rice) is the common way of making a

living. Surface water is often polluted and not suitable for drinking purposes. In Bangladesh,

approximately one third of the country’s population is drinking ground water from shallow tube wells

containing 10 to 50 times the amount of Arsenic (As) that is considered safe.

Water management for adequate food production is absolutely vital for Bangladesh. Sixty percent

1 Kahn, 2011

2 NGO Forum, 2009

3 CIA Intelligence 2012-2014


(60%) of the rice in Bangladesh is produced during the dry season mainly using groundwater.

Competing water claims are emerging. Overexploiting groundwater leads to declining groundwater

levels (3 meters per year in the Dhaka area) and results in Arsenic contamination and especially in

the coastal areas increasing salinity of well water, creating an additional risk for an adequate supply

of drinking water.

1.2.4 Irrigation4

The agriculture sector uses 88% of all fresh water extracted in Bangladesh, especially from

groundwater5. Bangladesh has 50,500 sq km irrigated land, which is 59% of the 85,490 sq km

cultivated land. The country area is 144,000 sq km. Surface irrigation is the only technology used in

large irrigation schemes. In 2008, the total area equipped for full control irrigation covered by large

irrigation schemes (major irrigation) was an estimated 0.14 million ha (3%). Small irrigation schemes

covered a total area of 4.91 million ha (97%).

Though there has been a significant increase in irrigated agriculture over the last decade that would

have contributed to the positive increase in the agriculture net production index, most minor and

major irrigation systems have shown poor field performances owing to a lack of technical know-how,

as well as poor on-farm water management practices. Canal irrigation shortage is a major constraint

to cropping, alleviated by pumping of groundwater. Other water resource concerns are flooding,

drainage congestion and the cost of pumping of canal and / or groundwater. It is clear that improving

agriculture production in Bangladesh requires achieving greater control of water resources

throughout the year, and that an integrated approach to water resources management is desirable.

Shrimp farming has become a principle activity in coastal brackish aquaculture, as it is one of the

fastest growing export industries in Bangladesh6. Around 1 million people are employed in the shrimp

sector. Inland capture fisheries have been declining, due to loss of wetlands, pollution and irrigation

abstraction. Brackish water aquacultures are not so affected. According to FAO Fishery Statistics

(2012), the production in Bangladesh increased from around 50,000 tons (1950) to 1.3 million tons

(2010).

1.2.5 Flooding of river systems

Inland waterways in Bangladesh cover some 11% of its total surface area. With some 700 rivers and

tributaries, Bangladesh has one of the largest inland waterways networks in the world (24,000 km).

In Bangladesh 80% of the land is covered by the floodplains of the Brahmaputra, Ganges and

Meghna rivers. The discharge of these three rivers is second only to that of the Amazon River.

Of the country, 60% is lower than 6 meters above sea level. Flood events occur frequently during the

wet season, which are able to inundate up to 65% of the country, while droughts are a general cause

of water scarcity during the dry season7.

1.2.6 Coastal zones and maritime areas

Bangladesh’s coastal zone spans over580km and includes territory where 28 percent of the

population resides. Bangladesh is a maritime nation with 166,000 km coastal zone, about 90% of all

foreign trade is moved by sea transportation. There are some 200 shipbuilding and repairing yards in

various locations in the country. Much of these shipbuilding yards are engaged in building and

4 CIA intelligence 2012-2014

5 Market Scan on the Bangladesh Water Sector, MottMacDonald, 2010 6 Exploring the Water Sector in Bangladesh. Trends, opportunities and practical information, Nyenrode University, 2014

7 World Bank Strategy paper 2005


repairing small inland and costal vessels up to 3,500 DWT8. However many of these yards were never

adequately operational. Currently several private sector initiatives are being taken to establish dry

docks for ship repair and also shipyards for shipbuilding.

There are three main ports in Bangladesh: Chittagong, Mongla, and Dhaka–Narayanganj, with 80%

of the trade flowing through the port of Chittagong. Chittagong Port is an integral part of the sub

regional transport and logistics chain connecting northeastern India, Bhutan, and Nepal to Europe,

North America, and Southeast Asia. The efficiency of the transportation system in the Dhaka–

Chittagong corridor and the port of Chittagong in particular, is considered vital for sustained

economic growth9.

1.3 The water sector

This section describes the public sector, the legislation, the spending and investment planning and

the role of the private sector, NGOs and knowledge institutes. This section ends by identifying the

pressing needs and explaining the Dutch Government engagement strategy.

1.3.1 Public sector

Central Level:

The public sector within the water market plays a dominant role in the overall planning, design and

implementation of programs and projects. In the majority of cases, the agencies within the public

sector act as the regulatory body, and are responsible for the management and operation of relevant

activities. The planning commission, chaired by the prime minister is one of the most powerful

bodies and plays an important role in the decision making process of development plans.

The Ministry of Water Resources (MoWR) is responsible for flood management, irrigation, drainage

control, erosion protection, land reclamation, integrated management of coastal polders, river flow

augmentation, water sharing from trans boundary rivers and wetland conservation through

participation of local people and coordinated programs with all ministries dependent on water

resources. Part of MoWR is The National Water Resources Council, (NWRC). This is the highest

national body for the formulation of water policy. It coordinates different water agencies and advises

the cabinet on all water policy issues. NWRC formulated its national water policy in 1999.

The Bangladesh Water and Development Board develop and manages water resources projects,

manages and mitigates river bank erosion, organizes stakeholders participation in project planning,

design and implementation, and promotes food production by surface water irrigation. The Minister

of Water Resources chairs the board.

WARPO is a principal agency of the GoB under the Ministry of Water Resources. It has a mandate to

ensure coordination of all relevant ministries through the NWRC and to plan all aspects of water

development, including major and minor irrigation, navigation, fisheries and domestic water supply.

WARPO is responsible for developing the National Water Management Plan.

The Disaster Management and Relief Division (DMRD) (MoDMR) has been given the mandate to

drive national risk reduction reform programs, as Bangladesh encounters varies types of water

related disasters, e.g. flooding and cyclones. The mission of MoDMR is: “To achieve a paradigm shift

8 Market Scan on the Bangladesh Water Sector, MottMacDonald, 2010

9 ADB website: http://www.adb.org/documents/bangladesh-chittagong-port-trade-facilitation-project


in disaster management from conventional response and relief to a more comprehensive risk

reduction culture, and to promote food security as an important factor in ensuring the resilience of

communities to hazards”.

The Ministry of Agriculture (MoA) is amongst others in charge of the operation of low lift pumps and

tube wells, the harnessing of hill streams and the salinity control and distribution of water for

irrigation.

Local level:

Local Government Division (LGD, part of the Ministry of Local Government, Rural Development and

Cooperatives) develops the rural and urban infrastructure. Besides construction of roads and

flyovers, LGD is taking care of waste disposal and is maintaining community centers, LGD steers the

four large water supply authorities, of which three are relevant: 1) WASA (four cities have WASA’s

who operate and maintain the drinking water infrastructure), 2) the Department of Public Health

Engineering, (DPHE), carries out the majority of construction of new water supply systems and

major rehabilitation programs, and 3) Local Government Engineering Department (LGED), who is

taking care of planning and implementation of local level rural urban and small scale water resources

infrastructure development programs.

Devolution:

There is hardly any devolution; the sector is being organized centrally.

1.3.2 Legislation

This section does not intend to provide an exhausted overview of law and policies relevant to the

water sector. An overview of the law in Bangladesh can be found on:

http://bdlaws.minlaw.gov.bd/alp_index_update.php

There are no policies or acts related to irrigation or water management in the country. In recent

years, however, government policies such as the National Agriculture Policy (1999), National Water

Policy (1999) and the National Water Management Plan (2001) have to some extent addressed the

minor irrigation and water management issues. Water resources policy development and

administrative management has received some 19 percent of the government expenditures during the

period 2007 to 201110.

GoB formulated a coastal zone policy providing guidance to all concerned for the management and

development of the coastal zone. WARPO prepared the National Water Management Plan in

December 2001, the goal of this document is to implement the National Water Policy (1999). The

Bangladeshi Water Act drafted in 2013 gives effect for the Bangladesh Water Policy for Integrated

Water management (more information on: http://wreforum.org/resources-bangladesh).

1.3.3 Public sector current spending and investment plans

During 2007-2011, within the water sector, GoB invested USD 259 million on average per year (UN

Water).

10

UN Water Country Brief on Bangladesh 2013

http://bdlaws.minlaw.gov.bd/alp_index_update.php

http://wreforum.org/resources-bangladesh


Table 2 Public Spending in the water sector

Subsector In USD million In %

Water resources protection 65 25

Disaster prevention and preparedness 62 24

Water resources policy and administrative management 50 19

River development 39 15

Water supply and sanitation (urban) 23 9

Agricultural water resources 20 8

Basic drinking water supply and sanitation (rural) unknown

Hydroelectric power plants unknown

Source: UN Water Country Brief Bangladesh 2013

The Bangladeshi Government intends to spend USD 20,9 billion from 2011 till 2025 on WSS

(drinking water, sanitation and drainage). These investments are scheduled for 2011-2015 USD 5.4

billion, 2016-2020 USD 7.5 billion and 2020-2025 USD 8,0 billion.

Leading donors are World Bank, ADB and The Netherlands. Donors active in harmonization

platforms are ADB, Australia, IFRC, Netherlands, and Water Aid. Other donors (> USD 1 million) are

Denmark (50), ADB Special Funds (39), Netherlands (30), Japan (24), IDA (11), United Kingdom

(10), Australia (3), UNICEF (2), OFID (1), Switzerland (1) (between brackets disbursements in 2010

in USD million)

1.3.4 Private sector

The private sector has grown rapidly and is driving economic growth and poverty reduction.

Bangladesh is well known for pioneering microfinance and achieving much success in it. According

the National country’s growth strategy private sector development will be prioritized to accelerate

growth by: 1) addressing major infrastructure constraints and skill gaps through public and private

service provision, 2) improving the regulatory setting, and 3) enhancing capacity for PPP and private

sector investments and supporting suitable PPP projects once identified.

The water sector is clearly public domain, depending on the subsector room for private initiatives

exist. In the drinking water sector local technology providers are active, sanitation is clearly a local

business however just like the drinking water sector strictly controlled by government. Chinese

products dominate the market for irrigation, and there is a thriving market of second hand pumps.

Bangladesh has a fast growing shipbuilding sector.

1.3.5 NGOs and knowledge institutes

NGOs have always played an important role for the development of Bangladesh. Bangladesh has a

handful of big often internationally operating NGOs of which BRAC is by far largest. Some of these

NGOs are in commercial or semi commercial business (also called social entrepreneurship) by setting

up separate legal entities.

In the water sector though, NGOs are not or to far less extent engaged in commercial activities. Most

NGOs focus on WASH activities. BRAC, Dhaka Ashania Mission, Water Aid, NGO Forum are

dominant players, iDE, Water Health International and Drinkwell are organizations that explore

commercial opportunities in drinking water delivery, though still on a small scale.

1.3.6 Pressing needs

Being one of the largest deltas in the world, the country is sensitive to changes in climate. In the

coming decades protection of productive areas (agriculture) and protecting the livelihood of

communities will absorb significant resources.


Population in urban areas is still growing; Dhaka is one of the fastest growing cities in the world. The

provision of water, sanitation and wastewater treatment in urban context will have a high priority.

Besides, increasing population will put pressure on the availability of land, leading to a higher

demand for e.g. land reclamation.

Due to the lack of international agreements about trans-boundary water issues regarding rivers

flowing into Bangladesh, and effects of climate change, the coastal areas will face increasing salinity

of groundwater and soil, causing decreasing yields and less access to drinking water.

The agriculture sector in Bangladesh is the largest water consumer. The government subsidizes rice

production and irrigation (using groundwater) to enhance food security. As a result ground water

levels are expected to drop increasingly, especially in the Northwestern region. Facing conflicts

between water for direct consumption and productive use, irrigation techniques must improve.

1.3.7 Dutch cooperation and priorities

Bangladesh and the Netherlands’ relationship is transitioning from a traditional aid to trade

relationship. This means that the Embassy’s development cooperation program more and more links

trade and investment to the three priority areas: water, food security and sexual reproductive health

and rights. The transition relationship between Bangladesh and the Netherlands aims at phasing out

development cooperation in the run up to middle income status (planned 2020), for which 2025

seems to be a more realistic date for achieving that.

With respect to the priority theme water, the aim of the support is to contribute to a healthy living

environment and wellbeing that supports economic growth in a country where more extreme rainfall

is anticipated, higher sea water levels, increasing industrial pollution and further slum development.

Bangladesh, as one of the five delta countries included in the ‘Water Mondiaal Program’, continues to

have high expectations for close bilateral cooperation in the area of water management, an area that

faces significant challenges. The program has a focus on 1) sustainable participative water

management in the existing polders and in the reclaimed land of the coastal zone, 2) river

management, 3) drinking water and sanitation in rural and urban areas and 4) institutional

strengthening. The total budget adds up to EUR 95.4 million (2014-2017).

The Dutch and Bangladesh Government signed a MoU on May 22, 2012 to develop a Delta Plan for

Bangladesh. The aim is to develop a plan to realize a sustainable water management plan for

Bangladesh. The Delta plan is a long-term framework for water management and the prevention of

flooding. It is an integrated plan and it will be the reference for investments of the Bangladeshi

Government in infrastructure, especially water related infrastructure.


2. Chances and opportunities

This chapter presents the results of the web survey among Dutch water sector players, completed by

the main observations derived from previous (existing) market studies and interviews with water

professionals and strategic actors within the Dutch water sector (please refer to Appendix 1 providing

an overview of the method of research). The first section describes the current situation. The second

section describes the most important trends, linking the current situation with future opportunities,

which is the topic of the third section. This chapter ends by identifying promising product market

combinations (PMCs).

2.1 Current situation

The section starts by describing the current situation, how the Dutch water sector is involved, the

type of activities performed, client groups and performance on specific development indicators.

2.1.1 Dutch sector involvement

The share of total Dutch water sector exports to the 12 OS-countries is estimated at 25% of total

Dutch exports in the water sector, equaling about EUR 60 million11. Figure 1 shows the breakdown of

the water sector exports over the various OS-countries. The share of Bangladesh is 21% of this total.

Figure 1 Breakdown of Dutch exports in the water sector to the 12 OS-countries,

in % of turnover (N = 60)

Source: Web survey Panteia, 2014/2015

Figure 2 shows that Bangladesh is a popular country for Dutch companies12 as well as for NGOs in the

water sector. It appears that 31% of the companies and over 56% of the NGOs in the sample are active

11 This estimation is based on the sample results of the web survey. Starting from this value relative export shares of the various regions

and countries have been determined for the sample. Since the sample may not represent the whole water sector in an optimal way, the research cannot draw any hard or general conclusions. The actual value of export will be higher, but this value can only be obtained with sample results once the whole population is known. Getting to know the population is complex and cannot be realized in the context of this study. Another complicating factor lies in the fact that large projects (especially those in water construction) may influence export figures drastically and lead to large fluctuations over time. For the sample of the web survey no such ‘disturbing’ projects have been found. The method used in this survey is in line with the method used for WEX 2014, which are also based on sample results.

0% 5% 10% 15% 20% 25% 30% 35%

Indonesia

Bangladesh

Ghana

Mozambique

Kenia

Rwanda

Ethiopia

Benin

Palestinian territories

SouthSudan

Mali

Yemen


in Bangladesh. Although 20% of the companies and over 10% of the NGOs in the sample are not yet

active in Bangladesh they are interested to enter the market. Figure 2 does not take the economic

value of activities into account (contrary to figure 1). Bangladesh ranks second when it gets to the

economic value of export; however figure 2 shows that Bangladesh is a somewhat less popular market

than Indonesia, Kenya, Mozambique and Ethiopia. The web survey does not provide a clear

explanation; it seems a relatively limited group (having relatively large business stakes) of Dutch

water players favor Bangladesh in terms of popularity.

Figure 2 Popularity of OS-countries amongst Dutch parties in the water sector,

% of active or interested companies in the various countries (N=87) and NGOs (N=16)


12 It should be noted that we apply the term ‘companies’ for companies as well as for knowledge institutions and Water Boards unless

these latter terms are used separately in the text.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

companies

NGOs

companies

NGOs

companies

NGOs

companies

NGOs

companies

NGOs

companies

NGOs

companies

NGOs

companies

NGOs

companies

NGOs

companies

NGOs

companies

NGOs

companies

NGOs

Indo

nes

iaK

enia

Gha

na

Moz

ambi

que

Eth

iopi

aB

angl

ades

hR

wan

daB

enin

Mal

i

Pal

esti

nia

n

terr

itor

ies

Sout

h Su

dan

Yem

en

Active in Interested in


NGOs operating programs are Cordaid (Flood Protection and Early Warning Systems), Dutch WASH

Alliance (WASH), Gender and Water Alliance (WASH), IRC (Research/WASH), MAX Foundation

(WASH), Practica (Research/WASH), Simavi (WOP DWASA VEI), Solidaridad (Food security).

Consultants operating are Acacia Water (Groundwater Management), Biosol Energy Europe (Reuse

of Nutrients), Datawatt and Nelen and Schuurmans (ICT – remote sensing),

Euroconsult/MottMacdonald (Water Management), Grontmij (Water Supply, Wastewater

Treatment), EMF/MWF (WASH), Dr Ten (WASH), Royal HaskoningDHV (Coastal Water

Management), Tauw B.V., Twynstra Gudde (IWRM), Vitens Evides Internation (WASH through

WOP DWASA), WASTE (Sanitation), and Witteveen and Bos and HKV (WASH through WOP).

Other private sector players operating are C&A , WE and Gstar (PaCT program), Dutch Health

(Maritime), Iderco (Pumps and Dredgers), MPS Aqua Industrial Water Treatment (Wastewater

treatment), Sarvision (ICT), Sulzer Group (Watertechnology), and VOSTA LMG (Supplier of

dredgers).

The following knowledge institutes are involved in research projects: Deltares (Salt water intrusion),

eLEAF (ICT Satelite Information Systems), IRC (BRAC WASH II NICHE), TNO (Innovation platform

wastewater treatment technologies), TU Delft (Low-cost water technologies), Unesco-IHE (Saltwater

intrusion), WUR (Climate Change, Water and Food security), and Water Foodprint Network (Water

and Food).

Source: EKN Dhaka

Current activities in various subsectors in Bangladesh

Most companies are active in the subsector water management of Bangladesh, followed by water

supply and treatment, water and green, and waste water treatment. Public Service Organizations

(knowledge institutes, water boards and water service providers: PSOs) are active in water supply

and treatment (drinking water and wastewater), and water management. Water management is the

major activity of the NGOs in Bangladesh. See figure below.

Figure 3 Current activities of Dutch companies (n=14), PSOs (n=5) and NGOs

(n=10) in the various subsectors of Bangladesh, in % of total observations


0% 20% 40% 60% 80% 100%

Water supply and treatment

Wastewater

Water management

Water and green

Water construction

Companies PSOs NGOs


Activity areas of Dutch parties in Bangladesh

Nearly 40% of Dutch companies are active in the activity area ‘Advice’. Another substantial

percentage (27%) is supplier or performs procurement activities. Capacity building / knowledge

transfer and technical advice are the main activities of PSOs. Capacity building / knowledge transfer

is also the main activity of NGOs in Bangladesh followed by Technical advice / supports in projects.

See figure below.

Figure 4 Current activity areas of Dutch companies (n=20), PSOs (n=4), and

NGOs (n=9) in Bangladesh, in % of respondents (more answers possible)


0% 20% 40% 60% 80% 100%

Advice

Design

Procurement

Contracting

Operations

Maintenance

Supplier

Research / knowledge development

Capacity building / knowledge transfer

Implementation

Technical advice / support in projects

Lobby / advocacy

Capacity building / knowledge transfer

Implementation infrastructure

Technical advice / support in projects

Companies PSOs NGOs


Client groups of Dutch parties in Bangladesh

The public sector financed by ODA is for both companies and NGOs the most important client group

in Bangladesh. This client group acts as donor or financier. End beneficiaries are also mentioned as

an important client group by NGOs. This client group acts as the stakeholder for whom the ultimate

output is directed to. The PSOs focus on international NGOs and local knowledge institutions as well

(but do note the size of the sample is relatively small).

Figure 5 Current client groups of Dutch companies (n=20), PSOs (n=4), and

NGOs (n=9) in Bangladesh, in % of respondents (more answers possible)


2.1.2 Progress on MDGs and other relevant development indicators

The progress on MDG reflects the countries results on this specific MDG while the other relevant

development indicators show the results of programs supported by EKN.

Table 3 Progress on MDG 7

Improved drinking water sources and sanitation facility access

In % of total

population

Improved drinking water source urban 85.3%

Improved drinking water source rural 82.4%

Improved drinking water source total 83.2%

Improved sanitation facility access urban 55.3%

Improved sanitation facility access rural 54.5%

Improved sanitation facility access total 54.7%

Source: CIA intelligence (2012)

According to the Joint Monitoring Program, Bangladesh met targets on drinking water, showing a

29% improvement since 1995. However Bangladesh is lagging behind on reaching the MDG goals on

0% 20% 40% 60% 80% 100%

Public sector with own finance

Public sector financed by ODA

Water companies

Contractors

Local private sectors

Industrial companies

Agricultural companies

Port authorities

Local NGOs

International NGOs

End beneficiaries

Local knowledge institutions

Companies PSOs NGOs


sanitation, though showing an improvement of 27% since 1995. The water quality index (UNEP-

GEMS/Water) in 2010 showed a 78.8 score, a score of 100 indicates that quality targets are met for

all five key parameters.

The result fiche of the Dutch Embassy reports on a specific set of parameters, nine specific indicators

relate to the water program portfolio.

Table 4 Dutch development support

Through the Dutch Embassy program

Development Baseline 2012 2013 Target (15)

Rice production (ton/ha/yr) 2,7 2,7 2,76 3,9

Shrimp production (kg/ha/yr) 250 250 250 440

Farmers in field school programs 0 295 1,405 3,056

# people in Dutch WM program 0 18,627 198,592 967,729

# ha protected area 150000 155,000 165,163 250,000

# WM Groups established 18 18 148 550

MDF 7c water 0 65,175 131,459 506,607

MDG 7c sanitation 0 627,334 538,733 128,7615

MDG Hygiene (in millions) 0 6.87 6.45 14.97

Source: Result Fiche 2013

Rice and shrimp production results are annual figures, farmers in field schools is cumulative. The

number of people involved in the Dutch Water Management Program is based on annual results, just

as the Water Management Groups established; the protected area (in ha) is a cumulative figure. The

reporting on MDGs is based on annual results (not cumulative)13.

2.2 Trends

This section describes the trends starting by summarizing the most important pressing needs

followed by an overview of government plans and the agenda of donors and funders.

2.2.1 Pressing needs

The following needs will influence trends in the water sector:

In the coming decades protection of productive areas (agriculture) and protecting the livelihood of

communities will absorb significant resources.

The provision of water, sanitation and wastewater treatment in urban context will have a high

priority. Besides, increasing population will lead to a higher demand for e.g. land reclamation.

The coastal areas will face increasing salinity of groundwater and soil, causing decreasing yields

and less access to drinking water.

Ground water levels continue to drop. Facing conflicts between water for direct consumption and

productive use, irrigation techniques must improve.

2.2.2 Government plans and agenda

The political situation is not likely to change in the near future; the water sector will be dominated by

the public sector as the political willingness to implement PPP policies is not that high. From an

institutional point of view the public sector is organized weakly, many processes and decisions tend

to focus on short term (cheap) solutions and tender processes are often non transparent.

13 Result Fiche EKN Dhaka: http://www.rijksoverheid.nl/documenten-en-publicaties/publicaties/2014/09/29/dhaka-water-2013.html


Government priorities focus on water resource management and infrastructure for irrigation

purposes. The Country Investment Program 2011 (Ministry of Local Government, Rural Development

and Cooperatives) indicates investment priorities for USD 583 million, funneled to finance increased

surface water irrigation (reduce groundwater depletion), and to reduce the impact of saline water

intrusion in the South and enhance river water flow14.

This is a shift in priorities, as during the period 2007-2011 GoB invested most of its budgets in water

resource protection, disaster prevention and preparedness, flood prevention, control water resource

policy, river development and administrative management (UN Water).

2.2.3 Agenda of donors and funders

During 2007-2011 the average ODA contribution (per year) to the water sector amounted to USD

177.69 million, 52.3% labeled for disaster prevention and preparedness, flood protection and control,

and 34.5% labeled for WASH15.

World Bank agenda gives priority to reduce vulnerability to the effects of climate change by

increasing investments in water resources management, agricultural adaptation, environmental

protection and disaster preparedness. ADB will continue to provide assistance to improve water

supply and municipal services, and boost rural productivity by improving irrigation, flood protection,

and natural resources management.

2.2.4 Macro developments in industry and agriculture

During 1987-1990, the value generated by the industry (per m3 of water) decreased by 8% annually.

During 1990 to 2008 this value increased by 2% annually. Industry is growing in Bangladesh, so will

the consumption of water. Especially the food and garment industry utilize large quantities of water

(and discharge considerable volumes of wastewater. GoB has established a regulatory framework for

untreated wastewater discharge into water bodies. Despite these, most of the industries are not in

conformity as they are not connected to a wastewater treatment plant or do not invest in wastewater

treatment themselves (due to the lack of enforcement)16.

GoB has recognized the importance of introducing appropriate water management techniques and

technologies at farm level as key to ensuring food security, employment generation and eliminating

poverty through intensification and diversification of agricultural production. With this view, the

Ministry of Agriculture has undertaken some development projects for improving the efficiency and

overall performance of irrigation systems with better on-farm water management practices. The

expansion of minor (small-scale) irrigation is a vital component of the Government’s agriculture

strategy. Minor irrigation consists of low lift, shallow and deep, manually operated pumps and

traditional systems17.

2.3 Opportunities

This section provides insight in concrete programs and projects that offer opportunities for the Dutch

water sector. Identifying examples of past and present opportunities and the way these opportunities

14

Exploring the Water Sector in Bangladesh. Trends, opportunities and practical information, Nyenrode University, 2014

15 UN-Water Country Brief 2013




have been financed provide insight in product market combinations that offer potential to enter and

explore or to expand and consolidate. The web survey among Dutch sector players, the supporting

programs by Dutch Government, the planned activities of the major IFIs and GoB provided input for

this section. This section does not provide an exhausted list of opportunities.

2.3.1 Past and current opportunities

This section focuses on the past and current opportunities derived from Dutch support programs and

the statements of Dutch sector players (through the web survey).

Dutch support programs

This section elaborates on the most important Dutch supported programs in Bangladesh and the way

these programs are being financed.

The major programs focus on sustainable management of water (in relation to agricultural

production), wastewater treatment, WASH (rural and through WOPs), and coastal zone protection

and management (delta planning):

BDP 2100 stands for Bangladesh Delta Plan 2100. A large international consortium, led by the

Twynstra Gudde cooperates together with the Climate Adaptation Services foundation, and two

Bangladeshi companies CEGIS and IWM. The Delta Plan will integrate planning from delta-related

sectors and from all across the country to come to a holistic plan for the Bangladesh Delta.

The Blue Gold (for Economic Development) Program establishes and empowers community

organizations to sustainably manage their water resources. Blue Gold is the EKNs’ main program

focusing on water productivity (in relation to agriculture) and aims to increase the agriculture

production of 160,000 ha of polders. The strategy is to combine investments in new and

rehabilitated infrastructure and the organization of farmers (shrimp and rice) into cooperatives to

train these farmers on ‘Good Agriculture Practices’.

The cooperation programs with BRAC/IRC, the MAX Foundation’s WASH program and the Water

Operating Partnership of Vitens Evides International are the main programs focusing on the

MDG7c targets. BRAC WASH II is implemented by BRAC in 176 Upazilla’s with technical and

monitoring assistance from IRC. The project has, over a period of 8 years, been successful in

reaching and serving a large number of people.

Partnership for Clean Textiles (PaCT) program in Bangladesh has been initiated by IFC with

support from the Dutch Government. The overall objective of this program is to enhance the long-

term competitiveness and sustainability of the textile wet processing sector in Bangladesh, by

helping them address the water-related issues through the adoption of cleaner production

practices; other objectives are Social Responsibilities of Buyers and WASH and Environmental

improvements for communities surrounding the textile factories (so-called Cluster Approach)

South West, co-funded with ADB, aims to strengthen the capacity of main public institutions in the

water sector (BWDB and WARPO). The project is funded by a mix of own means, IFIs and co

funding by EKN. The project is generally considered to be reasonably successful but it took a long

time to reach that level. From the Dutch water sector, Royal HaskoningDHV is involved.

CDSP stands for the Char Development and Settlement Projects and is designed to strengthen the

livelihoods for poor people living on newly accreted coastal islands, known locally as chars. The

project adopts an integrated approach to coastal zone development. Euroconsult is involved, just as

BETS Socio Consult, BRAC, BWDW, and of course IFAD. According to EKN, the project is ongoing

and implementation is successful.

UDDP (Urban Dredging Demonstration Project) aims at improving the performance of Dhaka’s

urban storm water drainage system, reducing the impact of flooding. VEI manages the project.

Especially for knowledge institutes, the NUFFIC/NICHE program offers opportunities. Current

projects are Higher education on Integrated Water Resource Management at CUET (EUR 800,000),


Capacity development of water sector related climate change induced disaster management and

adaptation (EUR 800,000), Scenario development in Integrated Water Resources Management

(EUR 2,500,000), and Integrated management of crop-fish-water resources (EUR 2,500,000).

From the strategic interviews a shortlist of past and current opportunities was abstracted. Please

refer to the table below.


Table 5 Present and past opportunities

Dutch water sector involvement

Organization Project

Grontmij Dhaka Water Supply Company -planning and supervising

the renovation of part of the water supply network, 2,600

km of pipe work in all.

Dhaka Water Supply Company - oversee the construction

of a new waterworks for two million users. This task is

fraught with exciting challenges, as the water that needs

treating to become drinking water is surface water that

can be heavily polluted at times. Grontmij was well

positioned for this project through its subsidiary in

Denmark. Danida provided part of the funds.

Royal HaskoningDHV Royal HaskoningDHV is leading a consortium to develop

sustainable coastal protection solutions for Bhola Island,

located at the mouth of the Meghna River and home to 1.7

million Bangladeshis. An innovative Erosion Early

Warning System is part of the project

The next six years Royal HaskoningDHV will be

responsible for the detailed design, construction

supervision and project management support of hundreds

of kilometres of embankment to protect 17 coastal polders

and its inhabitants and their livelihoods from natural

disasters and climate change. The contract is part of the

World Bank financed Coastal Embankment Improvement

Project, Phase-1 (CEIP-1) of the Government of the

People’s Republic of Bangladesh.

Euroconsult Mott MacDonald In the Blue Gold Program, Euroconsult Mott MacDonald

is managing a project that has four integrated components

dealing with water resource management, community

organization under WMO, agriculture productivity

improvement and business development through market

access. The aim is to increase incomes in polder area to

ensure sufficient funds are available for operation and

maintenance of water works. In the southwest region 27

polders will be addressed with defined polder

development plans. Euroconsult is also implementing the

CDSP IV project.

Witteveen & Bos, Tijhuis Ingenieurs,

Nelen&Schuurmans, and Schilder

Maintenance of urban drainage system in Dhaka. W&B in

partnership with Dutch companies won this project by

winning the tender. The project involves MKB for small

scale dredging. The project is funded by Vitens Evides

International and Dhaka Water Supply and Sewerage

Authority and the Dutch Embassy in Dhaka. The

availability of Dutch funding has been instrumental to

position Dutch companies for this project.

Deltares, Ecorys, Alterra and others Delta Plan for Bangladesh. In 2012 a Memorandum of

Understanding (MoU) was signed in Dhaka between the


Government of Bangladesh and the Government of the

Netherlands. Through this MoU the Government of

Bangladesh has embarked on preparing a fifty to hundred

years' long "Bangladesh Delta Plan 2100" to deal with

issues like climate change, water resources management,

river dredging and construction of embankment in a

coordinated manner.

Aqua Industrial Water Treatment BV Wastewater treatment plants for textile processing plants

TNO PaCT program. TNO provides innovative technology for

treating wastewater from small and medium size textile

factories, allowing these factories to move towards “clean

production” and towards a sustainable level of operation

and business model. TNO works in partnership with the

Textile Technology Business Centre of Bangladesh.

IHC Holland BV IHC contributes to the improved safety and development

of Bangladesh’s coastal defenses. IHC vessel will be used

for deepening many waterways and creating new land.

ITC Twente STARS project, funded by the Gates Foundation. This

project intends to enhance small holders agriculture

practices by remote sensing.

Vitens Evides Interational Water Operating Partnership with DWASA, which

includes The Urban Dredging Demonstration Project

(UDDP). The project will demonstrate Dutch urban

dredging technologies in selected urban (Dhaka) drains,

disseminate Dutch dredging expertise to internal staff of

DWASA and raise awareness about the functions of urban

drainage systems of all stakeholders.

Source: Aidenvironment, Engelsman

2.3.2 Future opportunities

Dutch support programs can catalyze future opportunities, just as the programs of IFIs open up

windows of opportunities for the Dutch water sector.

Dutch support programs

The BDP2100, WOP and PaCT projects should in theory help to (a) increase investments in the water

sector (and hence the opportunity for assignments) and (b) provide opportunity to new

partners/SMEs to present/profile themselves in new (niche) areas that include innovation and

aspects requiring a thorough knowledge on water management.

Within the cluster water technology (improving water quality), projects will be developed targeting

rural water supply, sanitation and hygiene in the hard-to-reach areas (partners are UNICEF, Oxfam,

WHO, UNHCR, Concern Universal and Caritas). Regarding capacity building to the public sector, the

Bandudeltas project (Alterra, Deltares, Twynstra&Gudde, Unesco-IHE, PvW) and the Consultancy

Services for a Vulnerability Analysis and Feasibility Study for the city of Barisal are worth to mention.

Although no evidence seems to exist, NUFFIC and Dutch fellowship programs (Unesco IHE) have

yielded important networks and general knowledge about what the Dutch can do and offer in the

different fields18.

18

Interview with the TD of Dutch Embassy in Dhaka.


Knowledge institutes have opportunities when tendering in consortia on the larger water

management projects or when being part of the innovative projects part of the PaCT program.

View of the Dutch water sector

According to the Dutch sector players the promising area in the Bangladeshi market is IWRM,

companies specifically identify opportunities in water productivity (food production) and urban

water management, while NGOs mention opportunities in drinking water supply and treatment, and

the management of ground and surface water for water supply. PSOs identify (additional to IWRM)

urban water management as potential.

Figure 6 Promising areas in Bangladesh according to companies (n=12), PSOs

(n=3) and NGOs (n=7) active in Bangladesh, in % of respondents (more answers

possible)


The important cross-overs (to other sectors) are water and food, and water and ICT. In addition to

these cross-overs, companies see opportunities within the water and industry cross-over and the link

with urban port development (marine port, river port or land port).

0% 20% 40% 60% 80% 100%

Drinking water supply and treatment

Drinking water transport and distribution

Industrial water supply and treatment

Industrial water transport and distribution

Ground and surface water for water supply

Collection and treatment of domestic …

Reuse of domestic wastewater

Collection and treatment of industrial …

Reuse of industrial wastewater

Urban water management

Integrated water (resources) management

Subsidence and salinization

Water productivity and food production …

Water distribution and quality

Dams and flood control

Coastal management, development and …

Port development and - management

Companies PSOs NGOs


Figure 7 Promising cross-overs in Bangladesh according to companies (n=17), PSOs

(n=4) and NGOs (n=9) active in this country, in % respondents (more answers

possible)


Taking the perspective of development impact, the future opportunities are in the area of WASH

(high response rate from NGOs) and water management and safe deltas.

Specifically, the Dutch private sector identifies opportunities in the following niches: optimalization

of water for agriculture, salinity mapping and modeling, small scale de-centralized wastewater

treatment units, dredging (rivers, port development), the use of satellite data to improve water

management and water efficiency within the agricultural sector (example is the Satellite for Crop

project executed by Deltares and Nelen & Schuurmans), delta planning, flood protection and water

operating partnerships.

IFIs

With respect to flood protection, drainage, polder management the following opportunities are worth

to mention:

In 2014 one interesting World Bank project took off called the Multipurpose Disaster Shelter

Project (MDSP). The objective of this project for Bangladesh is to reduce the vulnerability of the

coastal population in selected coastal districts of Bangladesh to natural disasters.

ADB executes its Coastal Towns Infrastructure Development Project (USD 72 million), which might

offer opportunities just as ADB’s Flood Protection and River Bank Erosion Risk Management

Project (USD 250 million, co financed by World Bank).

Within the PMC Supply of goods for Urban Drinking Water Supply, two projects are important:

Dhaka Environmentally Sustainable Water Supply Project (funded by ADB), and the Secondary

Water Supply and Sanitation Project, funded by ADB and OPEC Fund for Development.

Looking at port development, a team of international consultants is working on the port development

of Chittagong Port, finishing the inception phase end 2015 (ADB).

Although bilateral funded projects do not always offer opportunities for the Dutch water sector (and

are out of scope within the framework of this assignment), the project Comprehensive Disaster

Management Program (UKaid, Norwegian Embassy, Sida, AusAid, UNDP) is worth to mention.

0% 20% 40% 60% 80% 100%

Water and industry

Water and food (a.o. aquaculture)

Water and ICT

Urban port development

Companies PSOs NGOs


In depth: a new sustainable surface water supply system in Dhaka

The European Investment Bank (EIB) is lending EUR 100 million to the Government of Bangladesh

to finance a new sustainable surface water supply system in Dhaka. The financing contract was

signed in Dhaka June 30th 2014. In addition to EIB the USD 620 million investment will be financed

by ADB (USD 250 million) and AFD (USD 100 million).

The main project component is a new sustainable surface water supply system comprising a raw

water intake at the Meghna River about 30 km east of Dhaka, a 21 km raw water transmission pipe

line and a new 500 million litres per day WTP at Gandharbpur with a capacity to expand to 1,000

MLD in the future. The project will also include 14 km treated water transmission pipelines from the

Gandharbpur WTP to the injection point of the existing distribution network and distribution

reinforcements (+/- 30 km) in the target area with an estimated population of approximately 3

million. The water supply project component is complemented by a distribution network

improvement component that will be implemented in 16 district metered areas (DMAs) with a

population of approximately 1.3 million. The project will be implemented between 2014 and 2019.

The project might offer Dutch private sector players opportunities as sub contractor and supplier of

water technologies.


2.4 Product-Market Combinations

Based on secondary market research and the outcome of the web survey, demand and potential

supply have been matched, and the following Product Market Combinations were identified as being

‘potential’. An in-depth analysis of these opportunities does not fit the scope of this market research;

we recommend further analysis on these specific PMCs.

Table 6 Product Market Combination

Potential interesting for the Dutch water sector

Need:

Sedimentation and river erosion is a main concern in Bangladesh, as it creates drainage congestion,

which in turn severely affects livelihoods due to implications such as uncontrolled flooding. It

hampers economic growth as well, as most of transport takes place on water.

Subsector:

Dredging

Products:

Two different products: Small

scale dredging (canals and

rivers),and land reclamation

Market:

Ministry of Shipping through

its department BIWTA

(dredging), and urban planning

agencies, real estate developers

(land reclamation)

Need:

Some industries in Bangladesh, such as the food, the processing industry, and especially the Ready

Made Garment (RMG) sector utilize large volumes of water and also discharge considerable

quantities of wastewater, which is a critical water management issue for the country. The

government has established following policies and regulations to promote a cleaner production.

Enforcement is still weak.

Subsector:

Wastewater treatment

Products:

Small scale water treatment

plants for agriculture and

industrial wastewater (B2B)

Market:

Ready Made Garment Sector

(Tier 1 companies, see below)

Need:

Preparing the country for a safe and prosperous future requires large investments in the near and

midterm future. The GoB does not have the capacity to develop these investment programs; however

GoB is aware of the urgency.

Subsector:

Integrated Water Resource

Management

Products:

Preparing long term integrated

strategy and investment

programs

Flood protection and Drainage,

polder management and

infrastructure (TA mostly), this

PMC has climate relevance

Market:

(D)WASAs

BWDB

Ministry of Planning

Source: Aidenvironment

Cross overs (potential):

ICT and Water, early warning systems and the use of geo data in agriculture in cooperation with

mobile data providers, this PMC has climate relevance: the main impact of climate roughness is


water stress with impact on food supply. These products can contribute to create climate resilience

in agriculture

Water for food in combination with ICT and agriculture (supply of goods/consultancy services:

shrimp cultures, saline water intrusion, wastewater)

PMCs not being selected are:

Urban Water Management, potentially interested for WOP, and we do see opportunities in urban

dredging (see small scale dredging) and land reclamation. The spin off for the Dutch water sector

(e.g. water treatment, water transport (pipes)) is limited for two reasons: the competition from

India and China is harsh and the client group (WASAs) comprises large bureaucratic institutions.

Drinking water supply and treatment (rural), and the management of ground and surface water for

water supply (rural). Especially the NGOs consider this as an interesting area to work on, however

for the same reason mentioned above, we consider this PMC not potential for the Dutch water

sector.

For sure WASH projects remain interesting for NGOs, considering the work lying ahead and the

demand in both urban and rural areas. Combining sanitation programs with wastewater treatment

might link this segment more to the interest of the Dutch water sector as a whole.

In depth: Wastewater Treatment in the RMG sector

The readymade garment (RMG) Sector plays an important role in the economic development of

Bangladesh. During the 2012 - 2013 fiscal year for Bangladesh, the RMG sector alone accounted for

79.63% of the total exports and contributed for more than 10% of the country’s GDP. A recent

estimate suggests that, RMG sector alone consumes 15 billion liters of groundwater every year and

releases massive amount of industrial waste into the rivers, making it one of the highest industrial

consumer of ground water and a major industrial polluter of surface water in Bangladesh. The impact

of such RMG factories on the groundwater level and quality of surface water is evident in Tongi and

Kashimpur clusters of Gazipur district.

In terms of the production network, garments firms can be divided into three tiers. Tier 1 factories

are those that secure orders from buyers or intermediaries. Tier 1 firms are generally large factories

(> 2,000 employees) that secure orders from buyers. Tier 1 factories comprise nearly 20% (> 1,000

factories) of total garment factories in Bangladesh RMG sector19. Tier-1 Factories are usually inside

the ‘compliance net’ of buyers and hence obliged to align their policy and activities to comply with the

corporate values of their buyer brands.

The introduction of wastewater treatment techniques that are geared towards energy recovery and

the recovery of valuable chemicals seems to be an interesting market opportunity. The actual size of

the market is not clear; Tier 1 companies seem to be the most interesting client group.

In depth: (small scale) dredging

Dredging of rivers peaked in 2000 and declined radically having completely stopped in 2006. As a

result many local dredgers have been sold out to Indian dredging companies. Since 2010, the current

government is once again showing interest for dredging, now with substantial investments coming in,

Chinese dredging companies are entering the market. The competition in this PMC is tough20.

However, looking at the nearby future, dredging of harbors and rivers seems to be a stable market21.

The Ministry of Shipping is planning to give priority to developing and maintaining inland

19

Birnbaum 2013




waterways, seaports, land ports and vital channels. The same ministry is planning to prioritize

dredging naval ways to ensure yearlong access to waterways. The ministry operates with a

department (Department of Shipping) and two quasi-autonomous bodies of which BIWTA plays a

relevant role. BIWTA manages the development, maintenance and operation of inland water

transport and inland waterways. BIWTA’s responsibility includes among others dredging.

BIWTA main project is the identification of 2,393 km of waterways on 53 major river routes for

dredging. The second phase, scheduled 2014-2018 comprises the dredging of 30 river routes. The

economic value of this project is EUR 770 million22.

Interesting niche markets are the production of vessels for dredging, training and capacity building

for dredging work for private companies and public sector agencies in combination with technical

assistance for river management, and the preparation of a long term investment master plan, a

dredging master plan that facilitates the creation of a pipeline of potential work.

In depth: preparing long term investment programs (in relation to flood protection and drainage)

Bangladesh is highly vulnerable to water-related disasters and over the years has been successful in

reducing the impact of disasters. On average, from 1985 to 2012, annual economic damage was

equivalent to 4.9 percent of current GDP of the country. For each water-related disaster event this

translates into an average of 1 707 deaths, 1.14 million people affected and USD 1.11 billion worth of

damage to the economy.

Providing advice on delta planning and delta infrastructure seems to be an interesting niche market.

This PMC has climate relevancy as in long term planning adaption options are key elements to

incorporate resilience and robustness in the delta infrastructure, and will require investments in

resilience to cope with water stress and extreme floods. Advice on groundwater management fits in

well focusing on buffering of water.

The Bangladesh Delta Plan 2100 (BDP 2100) is a good example of the support to long term

investment programs.



3. Market (entry) strategies

To convert market opportunities into business requires a plan: a market strategy. Strategic interviews

and results from the web survey, completed with desk research on existing market studies provided

valuable insight in different market (entry) strategies. The chapter starts by describing how Dutch

organizations cooperate with parties, projects and programs. The second section describes how

activities within the water sector are being financed. How Dutch organizations operate on the market

is part of section three. Section 4 describes lessons learnt, while section 5 describes the major

bottlenecks and drivers. The chapter ends by suggesting specific positioning strategies per potential

product market combination (PMCs).

3.1 Entering the country

After a thorough assessment of the market and the feasibility of the business case / project,

organizations have different ways to enter the country. Finding the right local partner and building

up a relationship by working together is a first good step when entering the country.

Figure 9 provides an indication of the status and intensity of the cooperation of Dutch parties with

various other parties in Bangladesh, such as private sector/other companies, knowledge institutions

and government (bodies). Cooperation with government (bodies) and private sector/other companies

appears to be the most intensive: 33% of the companies state that cooperation with these parties is

(very) intensive.

Figure 8 Intensity of cooperation of Dutch companies with various parties in

projects and programs in Bangladesh, in % of respondents (N=18)


0% 20% 40% 60% 80% 100%

Private sector/other companies

Knowledge institutions

Goverment(bodies)

NGOs

Other Dutch parties

Totally not To some extent On average Intensive Very intensive


According to EKN, for new entrees the following organizations (or type of organizations) are

interesting to approach when entering the country and looking for potential partners to start up

activities. Do note, this is not an exhausted list of contacts.

Private sector:

Industries using/contaminating/treating water (a.o. dying and washing, garments, textiles,

tanneries, food processing)

Local Consultancy firms (AQUA, BETS, DEVCON, EPC, etc.) and contractors

Local knowledge institutes (IWM, BUET, Dhaka University, BRAC University)

International Consultancy firms and Contractors (esp. from India, Korea, Japan, China)

Public sector:

BWDB

LGD/WASA’s (Dhaka, Chittagong, Khulna)

BIWTA, BIWTC, Port authorities

NGOs:

BRAC

Water Aid

Dutch WASH Alliance (Simavi)

NGO Forum

3.2 Seeking finance

Finding appropriate financial means needed to start up the business (or project) is a critical success

factor when starting up. In this section the most interesting financial sources are analyzed and the

results from the web survey on how the Dutch water sector finances its activities in the various OS

countries are elaborated on.

Most Dutch sector players financed the past and current activities using 100% Dutch funding (43%),

or a mix of Dutch funds and foreign funds (27%), as can be seen in figure below.

Figure 9 Sources for current or realized projects in the various OS-countries, in

% of total number of projects mentioned by respondents (N = 70)


Full Dutch finance

43%

No Dutch finance

30%

Mix of Dutch and foreign

finance

27%


Looking at future opportunities, the perception of Dutch water sector players on the different types of

funds is quite divers. The combination of own means (36%), donor funding (12%) and government

subsidies (14%) are the main funding sources. The Dutch water sector is clearly looking for (a

combination of) different funding opportunities, which increases the complexity of getting a full

coverage of required budget.

Figure 10 Sources for funding perceived opportunities in the various OS-

countries, in % of total number of sources mentioned by respondents (N = 47)


3.2.1 International Financing Institutions (IFIs)

IFIs play an important role in financing the water sector in Bangladesh. The dominant IFIs in

Bangladesh are World Bank, ADB and EU:

The ADB has a 2020 program committing USD 985 million improving access to water and

sanitation in urban and municipal environment. Besides ADB focuses on the improvement of

agriculture production through improved water and resource management (river basin) and

disaster risk management and pledges USD 290 million until 2020.

World Bank’s active portfolio in general water and flood protection is USD 967 million, the

portfolio for irrigation and drainage is USD 307 million and for ports, waterways and shipping USD

307 million. The active sanitation portfolio comprises 2 projects amounting in total to USD 155

million.

According to the post 2015 international development framework, the EU will not prioritize their

involvement within the water sector; the EU Water Facility will be cancelled accordingly.

3.2.2 Dutch supporting programs

Appendix II provides an overview of the most important Dutch programs providing (financial)

support. Besides these financial programs (often managed by RVO), the Dutch Embassy in Dhaka

provides financial support as well. Both the RVO financed programs and the programs managed by

EKN provide opportunities for the Dutch water sector. The programs managed centrally by the

Dutch Ministry of Foreign Affairs (often managed by the IGG/DGIS) do not provide clear

opportunities for Dutch water sector players.

Own financial sources

36%

Donors

12%

Government subsidies

14%

Consortium partner

8%

Private sector

2%

Other sources

10%

No sources available

8%

Unknown

10%


RVO financed programs (project budgets per July 2014))

The major RVO program (financing water related activities) is the ORIO program(colored blue in the

figure below), the other programs do not finance water related activities, with exception of (part of

the) BoP Inc program.

Figure 11 RVO financed programs

Program budgets (for full program period) active in Bangladesh per July 2014

Source: RVO (July 2014)

ORIO finances the development phase of water management infrastructure in the Bhola district of

Bangladesh. This first phase started in the beginning of 2013 and was planned to end in October

2014. During the development phase, Dutch sector players Royal HaskoningDHV, TechForce

Innovations and AGT Netherlands are involved. The main elements of the project are reinforcements

of dikes, the integration of a dike monitoring system, building of cross dams and the training of

operators.

EKN financed programs (spending in 2013)

As mentioned in 1.3.7., EKN Dhaka has a significant water program in place. In 2013 WASH and

Water management were the major sub sectors financed, see figure below.

0,00

500.000,00

1.000.000,00

1.500.000,00

2.000.000,00

2.500.000,00

3.000.000,00

3.500.000,00

4.000.000,00

PSI PSD Apps ORIO FMO PUM CBI FNV Bop Inc

Pro

gram

bu

dge

ts i

n E

UR


Figure 12 EKN financed programs

Spending in 2013 per sub sector

Source: EKN result fiche 2013

3.2.3 Local finance

Bangladesh’s banking sector comprises four categories of scheduled banks. These are

4 State-owned commercial banks (SCBs), 4 state-owned development finance institutions (DFIs), 30

private commercial banks (PCBs) and 9 foreign commercial banks (FCBs).

The micro finance sector has a clear presence in Bangladesh. The Grameen Bank, BRAC, and local

savings-societies play an important role in rural areas by extending microcredit loans to the poor.

They often have better loan repayment rates than state-run banks (source BTI). The local financial

sector does not play a significant role in financing the water sector.

3.2.4 Government budgets

By far the GoB is the major financier within the water sector, often financed by official development

assistance via large international donor programs. During 2007 to 2011, the government invested

USD 259.30 million (in constant 2010 USD) on average per year on water-related infrastructure and

programs. During the same period, official development assistance (ODA) gross disbursements

amounted to USD 177.69 million on average per year. Throughout this period, the government’s total

water-related investments accounted for an estimated 5.1 percent of the government's total

expenditures. Over half of these expenditures were channeled into water resources protection (25.1

percent) and disaster prevention and preparedness and flood prevention and control (23.9 percent)23.

3.3 Sector performance

After finding the right local partner(s) and the appropriate financial means, Dutch organizations

follow different strategies to represent themselves in the country. NGOs prefer to work within one to

one partnerships, while companies prefer to work within temporary coalitions (project driven) or

23

UN-Water Country Brief 2013

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

Water Engineering

Water Management

Waste Treatment

Irrigation WASH

Inve

stm

en

t in

Eu

ro

Sub Sector


build one or more strategic alliances with the same partner(s). PSOs additionally value the contacts

with key players. PPP is not a preferred option at all (see figure below).

Figure 113 Current representation characteristics of Dutch companies (n=17),

PSOs (n=4), NGOs (n=9) in Bangladesh, in % of respondents (more answers possible)


Dutch companies’ main driver to build a strategy for more structural presence (or establishment) is

to contribute to the development of the country. Another important driver is to follow clients who

become active in Bangladesh. The driver for PSOs is to contribute to the country’s development as

well and strengthen their presence by the formation of 1 to 1 partnerships. NGOs enhance their

presence by formation of 1 to 1 partnerships and strategic alliances.

0% 20% 40% 60% 80% 100%

Local agent / representation

Local branch

One or more PPPs

One or more strategic alliances with same partners

Temporary coalitions

One to one partnerships

Contacts with key players

Companies PSOs NGOs


Figure 124 Current strategies Dutch companies (n=21), PSOs (n=4), and NGOs

(n=9) for more structural presence or establishment in Bangladesh, in % of

respondents (more answers possible)


Becoming successful in Bangladesh takes time, strategies taking a long term approach (10-20 year)

tend to be successful especially when focusing on the following (for Dutch sector players) unique

selling points (USPs): 1) to build up (and secure) local knowledge and capacity, 2) to offer attracting

job opportunities and excellent labor conditions, 3) to focus on quality (product) and efficient

delivery (low cost distribution, affordable pricing), and 4) to increase access to finance (locally by

building up a solid relationship with especially the IFIs).

Most Dutch organizations operating on the Bangladeshi market have a form of local presence such as

an association with local firms24. Before setting up your own legal entity, exploring the market

through a relationship with a local distributor, agent or supplier is recommendable25. Being part of an

EKN/RVO funded (especially demonstration) project or program offers opportunities to explore the

market as well.

3.4 Successes and lessons learned

Through desk research and web survey, a list of best practices and important lessons learnt were

identified and discussed during the strategic interviews with relevant Dutch water sector players. In

this section we elaborate on a limited overview of best practices and capture the lessons learnt.

Drinking water supply and treatment (Grontmij and DWASA)

The extensive water projects in Dhaka are an extension of several other projects Grontmij Denmark

has worked on in Bangladesh. Over the past 10 years, Grontmij has carried out more than 50 major

donor-funded assignments in Bangladesh, including various water-related projects and a series of

training projects. The far-reaching experience in the water sector makes Grontmij a large, important


25 Exploring the Water Sector in Bangladesh. Trends, opportunities and practical information, Nyenrode University, 2014

0% 20% 40% 60% 80% 100%

International expansion

Contributing to development of the country

Following clients

Following tenders

Formation of PPPs

Formation of strategic alliances with …

Formation of temporary coalitions

Formation of 1 to 1 partnerships

Cooperation within programmes

Other strategies

Companies PSOs NGOs


international player on this market. These latest projects in Bangladesh will further strengthen the

company’s position and help to win new contracts both in Bangladesh and in neighboring countries.

The Bohla Island project (Royal HaskoningDHV and GoB)

This project will be executed in three phases: the development phase, the implementation phase and

the operation and maintenance phase. The first phase of the project is in the process of being

completed, involving a budget of EUR 1.3 million. During this phase the plan for the project has been

prepared, including identification of funding sources. According to the plan the implementation

requires a budget of some EUR 44 million, which is expected to be shared on a fifty-fifty basis

between the Dutch and Bangladesh governments, of which the latter could also be other IFIs.

The most important factors that ensured the successful development of this project are:

The availability of ORIO funding

The innovative Erosion Early Warning System proposed in this project

The well-coordinated cooperation between Dutch Government, the Dutch Embassy, the

Bangladesh Government and the Consortium consisting of Dutch and Bangladeshi companies

The international and local expertise of the Consortium

Coastal protection (Royal HaskoningDHV and BWDB)

Royal HaskoningDHV has signed a EUR 10.5 million contract with the Bangladesh Water

Development Board for engineering consultancy services to protect Bangladesh’s vulnerable coastal

zone, home to millions of people. The next six years Royal HaskoningDHV will be responsible for the

detailed design, construction supervision and project management support of hundreds of kilometers

of embankment to protect 17 coastal polders and its inhabitants and their livelihoods from natural

disasters and climate change. The total project area is some 1,000 square kilometers.

The most important factors that ensured the successful development of this project are:

Having the most competitive proposal, in terms of approach/methodology, team of experts, track

record of consortium members, price

The local experience and good reputation of the international members of the consortium based on

several decades of successfully implementing water resources projects in Bangladesh

The long term commitment of the international members of the consortium to the development of

Bangladesh, to the relationship with the Bangladesh Water Development Board and to the

partnerships with local consultancy and engineering companies

The Royal HaskoningDHV Branch Office in Bangladesh, with a team of international and local top

experts in the field of water management

The Bhola Island project (which is being implemented with support from the Dutch Government)

has served as a strong reference project

Quote:

Bangladesh is receiving a lot of aid from different sources. The various programs could be better

aligned and coordinated. There is a clear need for more donor coordination. The Dutch Embassy

could take a leading role with a focus on the water sector.

Anonymous # 3

The Sujol Project (EMF and Dhaka Ashania Mission)

Sujol is a brand and business concept that aims to deliver clean, safe and tasty drinking water to the

poor in Bangladesh. Sujol takes a market-based approach. It is set up as a social enterprise and aims

to produce water without any subsidy at all. Local entrepreneurs will invest in and operate small-


scale plants and sell water to the local communities. Sujol offers entrepreneurs use of the CapDI

technology, (produced by Dutch based Voltea, a Unilever spin-off), which improves both the quality

and taste of salty shallow well water.

This project faced challenges during the pilot phase (2011-2014):

Local partners in Bangladesh are less interested to run relatively small projects

It is hard to capture knowledge within the team as staff changes jobs regularly

The bad condition of roads and the occurrence of many power breaks hamper operational business

The harsh political situation and many strikes hamper good management of the local operation


3.5 Drivers and bottlenecks

Companies and NGOs being part of the web survey identified the access to finance and the ability to

find the right partners as the main bottlenecks for entering the market (figure below).

Figure 135 Top 5 challenges for scaling up activities in Bangladesh for companies

and NGOs, in % of respondents (more answers possible)


These observations match the overall findings within the scope of 12 Water OS countries to a large

extend. More specifically existing market research and observations of EKN identify the following

market barriers:

The lack of governance and transparency in policy, trade regulations and in procurement practices,

e.g. import duties tend to change annually and range between manufacturing and raw inputs from

0-5% till finished products up to 25%26.

The lack of forum for private sector to engage in a dialogue/discussions with the public sector,

together with a tough enforcement of contracts.

Poor infrastructure like inadequate availability of energy, continuous disruptions of main ports,

and frequent strike actions hamper businesses and projects in executing activities

According to EKN, price competition, Dutch firms are being perceived as relatively. Most tariffs are

too low to cover O&M leaving less room for investments, this leads to a strong focus of GoB on

lowest price when tendering work.

Working with relatively weak counter parts (in particular financially) and the level of knowledge

and experience, puts pressure on a continuous delivery of quality which in general is one of the

USPs of the Dutch water sector.

26 Exploring the Water Sector in Bangladesh. Trends, opportunities and practical information, Nyenrode University, 2014

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

get to financial rescources

realisation of the right contacts

formation of strategic alliances with same partners

improvement of current results

formation of temporarily coalitions

get to institutional funding voor progamme management and coordination

get to local financial rescources for implementation

finding the right partners

scaling up current programmes


Top 5 Challenges Companies (N=47)

Top 5 Challenges NGOs (N=13)


On the other hand, specific market incentives exist, not specifically for the water sector, but more in

general:

Bangladesh has one of the most liberal investment climates in the region, no distinctions are being

made between foreign and domestic private investors, 100% foreign equity and full repatriation of

capital are allowed.

So called EPZs (economic zones) provide a diversified and flexible package of investment options

Tax agreements with The Netherlands avoiding double taxation.

Setting up a JV is quite easy.

For most companies, PSOs and NGOs not being present (or not active) in Bangladesh is a matter of

priority (see figure below), or a lack of resources to pick up opportunities. Another argument for

companies is ‘opportunity driven’, a significant group of companies wait for a concrete opportunity

first before making investments.

Figure 146 Reasons why companies (n=19), PSOs (n=10) and NGOs (n=5) are not

active in Bangladesh, in % of respondents


Those not active yet but willing to invest prioritize investments in approaching local parties and

building up network contacts (42%), and finding a local partner (33%).

3.6 Strategies for PMCs

Based on secondary market research and the outcome of the web survey, demand and potential

supply have been matched, and the following Product Market Combinations were identified as being

‘potential’. In addition to section 2.4, per PMC entry strategies are being suggested in combination

with finance and possible partners.

More in general, it should be noted that private sector involvement within the Bangladeshi water

sector is still small, but growing. GoB acknowledges the role of the private sector, however an

0% 20% 40% 60% 80% 100%

We see opportunities but this country is not our priority

We see opportunties but we do not have the means to pick these up

We see opportunties but the political situation is too unstable

We see opportunties but it is too dangerous and unsafe in this country

We do not see any opportunities in this moment

Companies PSOs NGOs


effective platform supporting a public-private sector dialogue is still lacking. Being the third largest

investor, The Netherlands would benefit from such platform.

Besides the lack of a platform for dialogue, the long tradition of public sector involvement has created

market distortion and inefficiency. To enhance private sector participation the main bottlenecks

should be addressed: 1) the lack of integrated sector strategies and investment master plans, 2) the

lack of an effective PPP policy and framework, 3) the lack of awareness and political will to increase

service fees in such way OandM costs will be recovered, and 4) ‘unfair’ procurement and tendering.

Assessing the buying power of clients and profound (financial) risk mitigation are important aspects

of the market entry strategy in Bangladesh. Service and work providers largely depend on public or

international funding (IFIs), providers of goods and products depend on the strength of their

counterpart (private sector partner), especially the financial strength is an important factor to

consider (MM). When exporting to Bangladesh, common risk mitigation measures like export credit,

bank guarantees, and letters of credit are applicable.

Participating in tenders is a traditional way to get business, however tender processes are not always

transparent, require local presence (contacts), a clear integrity policy and sufficient resources (to

manage long bidding processes) to maintain a strong business development capacity in a very

competitive market . Especially for Dutch consultancy firms, this route to the market seems to be

effective. Joint bidding with some of the bigger international firms should not be excluded as a piece

of the cake may be more attractive than no cake at all.

Table 7 Strategies for PMCs

Water engineering

Product

Small scale dredging (canals and rivers), land reclamation

Market

Ministry of Shipping through its department BIWTA

Strategy

The four leading dredging contractors, Boskalis, van Oord, DEME and Jan de Nul are competing

regularly around the world. New competitors are coming from China and South Korea, however the

Dutch water sector players have advantage in the segment of high complex projects that require high

end technology and a broader proposition.

As all assignments will be tendered by government, the best strategy is to set up local

representation, being responsible for business development and acquisition. As the tender

procedures are often not transparent and perceived as ‘unfair’, third party monitoring and

increasing expertise on tender procedures can enhance the chance for success for Dutch water sector

players.

Finance

Ministry of Shipping through its department BIWTA, often financed by IFI programs

Partners

Local and international consultancies




Waste Water Treatment

Product

Small scale water treatment plants for agriculture and industrial wastewater (B2B)

Market

Ready Made Garment Sector (Tier 1 companies)

Strategy

Capacity building: by creating a center of expertise first, followed by a demonstration site.

Part of the PaCT program is a Textile Technology Business Center. The Textile Technology Business

Center (TTBC) supports the textile sector in adopting best practices and technologies that improve

business and environmental sustainability.

The tier 1 companies seem to be the best entry point for making deals. Tier-1 Factories are usually

inside the ‘compliance net’ of buyers and hence obliged to align their policy and activities to comply

with the corporate values of their buyer brands.

The propositioning of the Dutch water sector can be enhanced by extensive lobby from EKN and

other important donors to improve enforcement of legislation, and advocacy (e.g. sponsoring of

research, studies) towards raising tariffs that are needed to recover the operational costs.

Finance

Dutch private sector contributions matched by grants (Partners for Water, IFC PaCT).

Partners

PaCT partners (especially TNO being responsible for the set up of the TTBC), Bangladesh Garment

Manufacturers and Exporters Association (BGMEA), Local Government Bodies, NGOs

(International and Local), DWASA.




IWRM

Product

Preparing long term integrated strategy and investment programs, Water Operating Partnerships,

flood protection and drainage, polder management and infrastructure (TA mostly), this PMC has

climate relevance

Market

(D)WASAs, BWDB, Ministry of Planning

Strategy

The aim of supporting a Master Plan is to bring in and showcase Dutch expertise and to create a

strategic advisory position for The Netherlands. The positioning instrument used here is capacity

building (TA support). The advantage of continuing this TA support is the less funding needed and

as a result the reduced risk, the disadvantage is the lack of commitment from GoB and lesser control

on future execution.

A future strategy (working towards implementation) could be to offer a program management and

support package structured as a PPP, or structured by the set up of a contracting authority /

development company.

Finance

In this phase EKN is the most obvious financier, but it will be extremely important to start designing

a future financial package. A Master Plan will lead to investments in the future, the proposition of

the Dutch water sector will be strong when combining on the ground solutions with financial means.

Such a package would ideally comprise PPP instruments (e.g. DRIVE), a mix of private finance (e.g.

FMO) and concessional loans, coverage by credit insurance instruments and a significant TA facility.

The upcoming climate funds are relevant as well financing the implementation of such a Master

Plan.

Partners

Current partners within the Bandudeltas BDP2100 consortium.


A general market entry approach is applicable for the above mentioned PMCs as well:

Project based presence, sometimes with Dutch government support or following industrial clients

Multiple projects, building on local presence and experience

Representative office, stepping up business development and project implementation

Branch office or local company, as a basis for a permanent local presence

Quote

The positioning strategy of our knowledge institute is built upon the following elements:

Long term relationships with local knowledge institutes

Jointly develop and acquire projects in the public and private sector markets

Focus on complex problems, requiring an integrated approach

Opportunistic approach to good opportunities with limited risks

The change to free and open source use of software

Use of alumni networks

Independent status is recognized by clients as an important asset

Anonymous #11


Appendix I: Methodology

The Water OS positioning survey is part of the Water OS program: a facility of the Ministry of

Foreign Affairs. The Water OS program aims at providing support to the Dutch Embassies in 12

partner countries in the formulation and implementation of their water programs. Central element of

the program is the involvement of the Dutch water sector, i.e. companies, NGOs, knowledge

institutes and governmental organizations.

In order to generate more evidence for effective continuation of the Water OS Program and to

‘trigger’ Dutch water sector players, RVO contracted Aidenvironment, in collaboration with Panteia,

Chris Engelsman and Jan Oomen, to conduct a “Positioning Survey”. This survey identifies

opportunities, strategies and approaches for the Dutch water sector, and more specifically seeks high

potential Product/Market Combinations (PMCs) in the 12 Water OS countries included in the Survey.

The final deliverables of the survey are twelve positioning survey reports (one for each country) and

one overarching management summary. Primary target group for the Positioning Survey Reports are

the Technical Experts (TDs) at the Netherlands Embassies in the 12 OS countries, with all Dutch

water sector players as secondary target group.

The methodology comprises desk research, a web survey and additional strategic interviews:

The desk research studied the most essential reports and documents per country (market scans,

market reports, strategic papers of Embassies and International Financial Institutions). The Key

Advisors within the Water OS program played an important role in rendering accessible and

prioritizing the data available.

In the period November 2014 – January 2015, Panteia carried out a web survey. Two different

questionnaires have been applied, one for companies, knowledge institutions and water boards,

and another questionnaire for NGOs. Despite the length of the survey and thanks to a considerable

effort of the project team and NWP, the response rates were not disappointing and for a web survey

in general above average: NGOs: 16 out of 48 implying a response rate of 33,3%, and companies

(including knowledge institutions and water boards): 87 out of 531 implying a response rate of

16,4%.

Based on the outcomes of the desk study and web survey, Aidenvironment selected 27 companies, 3

(semi) commercial financiers, 7 NGOs, and 8 knowledge institutes (including Water Boards

(‘waterschappen’) and water service providers) to be interviewed on strategic topics focusing on

market opportunities and applicable market entry strategies (and business models). Through these

strategic interviews, the research team gained more detailed information on projects of front

runners. These projects gave more information on lessons learned, success factors, and

opportunities for up scaling.

Regarding the web survey, two important remarks can be made:

Value and limitation of the survey results

The web survey results have provided very useful data for this study. The value of the results

especially lies in the provision of relative figures on various aspects enabling comparisons between

countries, opportunities, bottlenecks, groups or respondents, etc. and to monitor the developments in

these figures over time. The limitation of the study lies in the inability to provide reliable absolute

figures on for instance turnover values.

OS-study versus WEX

For the web survey a similar methodology has been applied as is done for the WEX (Water Export

Index) – study, which is carried out twice a year. A sample of companies and institutions is asked to

provide data on national and export turnover in the water sector and the division of this turnover


over regions and over subsectors. The samples do not have the same composition. Also over time the

samples may differ in the WEX, but never provide a bottleneck though to assess the WEX and to

make reliable comparisons over time. Like in the WEX, the estimation of the export turnover is based

on the sample results of a survey. Starting from this value relative export shares of the various

regions and countries have been determined for the sample. Since the sample may not represent the

whole water sector in an optimal way, we cannot draw any hard or general conclusions about the

export turnover figure and division of this figure over subsectors, regions and countries. The real

value will be higher, but this value can only be obtained with sample results once the whole

population is known. Getting to know the population is difficult and cannot be realized in the context

of this study nor in the WEX-study. Another complicating factor for generalizing study results lies in

the fact that large projects (especially those in water construction) may influence total and regional

export figures drastically and lead to large fluctuations over time. For the sample of the web survey

no such ‘disturbing’ projects have been found. The sample results of the OS-study regarding relative

export shares of regions are in line with the results of the WEX 2014.

The average budget per country positioning report is EUR 7,000. Therefore, the positioning survey

cannot be seen as a fully fledged market research. An in-depth assessment of the markets (the OS

Water countries) was not part of this research, instead the research relied on secondary information

(reports available) and expert opinions (Key Advisors Water OS program, TD staff on Embassies,

YEP network, and a network of ‘water professionals’).

An important disadvantage of the web survey – in contrast with a telephone survey for which a

stratified sample has been selected - is that the characteristics of the total population are unknown.

By lack of a stratified sample, the outcome of the web survey does not offer the opportunity to level

up the sample results to the total population and to calculate absolute figures for turnover and export

volumes for each subsector and region. Despite this limitation of the web survey, it does provide very

useful information for the positioning studies.

Additionally to the country specific positioning reports, a management summary was drafted. The

management summary elaborates on the overall findings and provides overall conclusions.


Appendix II: Finance

The Dutch Government is able to support activities performed by the water sector in developing

countries (in this case the 12 Water OS countries) in different ways. On a strategic level, financial

support can be labeled as:

Bilateral support (country to country)

Multilateral support (to different countries often funneled through International Financial

Institutes or UN related organizations)

Specific instruments (e.g. managed by RVO or commercial organizations like Atradius and FMO)

The financial support from Dutch Government related to the 12 Water OS countries aims to combine

trade and aid perspectives. The policy focuses on three key points: 1) improved management of water

catchments and safe deltas, 2) efficient use of water, especially in the agriculture sector, and 3)

improved access to clean drinking water and sanitation.

This appendix provides an overview of the support provided on different strategic levels: bilateral,

multilateral and specific instruments. The content is structured following the most important

organizations involved in funneling these funds starting with the Ministry of Foreign Affairs, The

Dutch Embassies, RVO, Dutch (Semi) Commercial Players, and the most relevant International

Finance Institutes. At the end, the appendix provides a non exhausted list of foundations financing

water related projects and activities.

Centralized programs managed by IGG/Water DGIS/Ministry of Foreign Affairs

DGIS (within the Ministry of Foreign Affairs) focuses on the Dutch international cooperation with

partnering countries. The cooperation involving the water sector is mandate of the section water

within the department of DME (future: IGG (Inclusive Green Growth)). This section manages the

water related portfolio of programs providing regional and multilateral support. The funding is often

labeled and does not provide direct opportunities for the Dutch water sector.

Decentralized programs managed by Embassies:

The Multi Annual Strategic Plans (MASP) is the nucleus of Dutch bilateral support to a country.

Projects, programs or businesses being part of the Embassies’ program to implement the MASP fit

into the country specific strategy and are aligned with the overall water policy of Dutch government.

The funding of Dutch Embassies provides opportunities for the Dutch water sector.

Specific Instruments: RVO

RVO has developed different type of instruments depending on the phase the

project/program/business is in, starting at the development of an idea, testing the concept in a pilot,

scaling up the pilot to significant size to start building a business or self financing project on. We

follow this structure when presenting the different instruments.

To finance the development of an idea, innovation or R&D:

VIA water:

This is a relatively small fund (EUR 10 million over 4 years) to finance out of the box ideas and small-

scale innovations using grants. Aqua for all manages the fund, which started operating in 2015.

Maximum size of the grant is EUR 200,000 per project.


To finance a pilot:

Partners for Water:

This is a funding program (grants) financed by different Ministries runs from 2010 till 2014. After

2015 the program will continue following the same strategy. In 2015 the facility is not open for new

application. The program financed 80 projects of which 50 included a pilot. The average subsidy size

was EUR 200,000 financing 20-80% of the budget. The new program will start with a total budget of

EUR 10.5 million.

DHK:

This instrument provides grants and aims to finance demonstration pilots, feasibility studies and

acquiring of knowledge. The program has a specific EUR 3 million window for DGGF countries of

which EUR 1 million is allocated to the least developed countries. This facility is specifically

applicable for projects in fragile states.

DRR:

DRR finances the Dutch Risk Reduction Team, a database of Dutch Water Experts that are available

for solving water related issues with respect to disasters. DRR is not a facility financing disaster

response or aid, though DRR provides knowledge that can be used to e.g. avoid disasters. RVO in

close cooperation with NWP manages the facility.

To finance the scale up of activities or pilots:

ORIO / DRIVE:

ORIO was cancelled in 2014. ORIO used to be a grant facility financing investments related to the

development, implementation and operation of infrastructure in developing countries. Governments

of these countries submit the applications and the private sector is involved in the development and

execution of projects.

DRIVE is the successor of the ORIO program and provides concessional loans to governments of

developing countries to develop, construct and operate infrastructure. DRIVE will be launched in

April 2015 and has an available budget of EUR 100.000.000 annually expecting to finance 10-15

projects. The facility aims to actively involve the Dutch Water sector and contribute to development

of the receiving country.

G4AW:

G4AW stands for Geodata for Agriculture and Water and finances projects, programs and businesses

aiming to improve food security in developing countries by using satellite data. Netherlands Space

Office (NSO) is executing this program, commissioned by the Dutch Ministry of Foreign Affairs. In

2014-2015 the facility has EUR 30.5 million available to provide grants (EUR 0.5-5.0 million)

financing up to 70% budgets. Proposals and partnerships should be based on a business plan geared

towards satellite data at the start of the information chain.

FDW/FDOV and GWW:

RVO developed three facilities to finance Public Private Partnerships (PPP) in the water (and

agriculture) sector. These facilities aim to: 1) increase access to drinking water and sanitation, 2)

enhance efficient and sustainable water use (especially in the agriculture sector), 3) improve

management of catchment areas and safe deltas, and 4) (specifically for FDOV) improve food security

and private sector development. GWW (Ghana Wash Window) is a specific window financing water

related PPPs in Ghana.


The three facilities are in place since 2012, in 2014 FDW and FDOV launched and closed its second

call, the GWW second call for proposals closes in February 2015. The facilities are planning the third

call to be executed in 2016. Because the facilities just started operating, (impact) results have not

been reported yet.

The facilities provide grants and have different modalities. The facilities received many applications

and resulted into the finance of new initiatives. The application process is being perceived by a

significant group of applicants as complex, and requires a clear business case, or theory of change

aiming to enhance the enabling environment as part of the proposal, plus a significant contribution

by the private sector. The facilities are especially applicable for large applications fitting into

investment agenda’s or strategic objectives of the private sector players involved.

DGGF:

The Dutch Good Growth Fund started operations in mid 2014 and aims to combine aid and trade

goals. DGGF is a revolving fund, providing finance (not grants) to initiatives with a ‘healthy risk

profile’. DGGF focuses on 66 countries (called the DGGF countries), including the Water OS

countries. DGGF is build on three pillars: 1) a fund financing activities of Dutch SMEs in DGGF

countries (managed by RVO), 2) a fund financing local SMEs and banks in DGGF countries

(managed by PWC and Tripple Jump), and 3) a fund financing export credit insurance and export

finance activities (managed by Atradius).

In Pillar 1, RVO works closely together with Dutch banks. The fund is equipped to provide guarantees

to banks up till 60% of the credit risk, loans to banks and investment funds (equity). The maximum is

EUR 10 million per project or business. A TA facility will be in place to provide assistance on

improvement of the business plan or investment proposal.

Pillar 2 is under construction; this pillar will provide fund to fund investments up to EUR 175,000.

Pillar 3 provides export credit insurances covering non-market risks up till a maximum claim amount

of EUR 15 million. Besides insurances, this fund provides export finance instruments. Products focus

on Dutch SMEs needs, covering small and large transactions.

Besides these above mentioned programs and facilities, the following instruments can

be useful and applicable for financing water related activities.

PSI:

PSI was grant program available for non-Dutch and Dutch companies wishing to make an innovative

investment, in cooperation with a local partner in one of the PSI countries. This program stopped

operating mid 2014.

MMF:

MMF is a match making program, aiming to establish a long term business relationship between a

Dutch entrepreneur and an entrepreneur from a developing country.

OS Partner Countries:

This program finances the projects, managed by the local Dutch Embassies. These projects fit into the

Multi Annual Strategic Plans of the specific Embassies.

TDs / economic diplomacy:


This program finances the so called thematic experts working at the Dutch Embassies in a limited

number of OS Partner Countries.

TMEA:

Managed by DDE / DGIS, this large program focuses on the East African region financing initiatives

contributing to the enhancement of trade relations within the region. The facility is applicable for

financing initiatives linked to port development.

Water Mondiaal:

Water Mondiaal is a program launched by the Dutch government to cooperate actively with countries

in low-lying delta areas, protecting them against floods and ensuring sufficient, clean water. Partners

for Water is managing this program, the program aims creating long lasting cooperation agreements

between the public and private sector , and civil society and knowledge institutes. Water Mondiaal

focuses on five deltas: Egypt, Bangladesh, Indonesia, Mozambique and Vietnam.

(Semi) Commercial Organizations managing funds on behalf of Dutch Government

The following facilities or organizations are in some way closely linked to RVO or the Ministry of

Foreign Affairs.

Atradius:

Atradius offers a comprehensive range of credit management solutions that protect businesses of all

sizes against the commercial and political risks inherent in domestic and global trade. Atradius

provides credit insurance, debt collection services, bonding, reinsurance and a range of special

products.

Atradius Dutch State Business performs different facilities on behalf of and for account of the Dutch

State. There is no direct link with the RVO organization, though Atradius products can be combined

with RVO instruments (e.g. ORIO/DRIVE).

Atradius does not specifically focus on the water sector. However dredging, waste management, port

development and the maritime sector are important sectors from a business perspective. Atradius is

not actively involved in all Water OS countries; the table below provides an overview of the

outstanding volumes of credit insurance products per January 2014.

Table 10 Atradius business in Water OS countries

Credit Insurance outstanding risks

Country Risk Volume (EUR million)

Mali 1

Yemen 1.2 South Sudan 0

Palestine 0

Ethiopie 0

Mozambique 105

Benin 0

Rwanda 0.1

Ghana 182

Kenya 118

Indonesia 1,373

Bangladesh 0

Source: Atradius January 2015


Atradius manages the third pillar of DGGF. In the first six months Atradius received 7-8 requests,

one of these came from the maritime sector. The DGGF facility provides support on smaller

transactions; therefore this product is applicable for Dutch small and medium enterprises.

FMO:

FMO manages three funds relevant for the Dutch water sector.

FOM-OS

The first pillar of the DGGF program will replace this fund. The fund offered loans to private sector

players investing in non (commercially) bankable projects or businesses in developing countries.

Innovative Finance Fund for Development

This fund aims to catalyze private sector investments.

IDF

IDF stands for Infrastructure Development Fund. The IDF is aimed at creating reliable infrastructure

in many sectors, ranging from potable water and mobile telecommunication services to roads and

power. By providing risk capital through the IDF, FMO takes on definite risk while acting as a

gateway for other financers.

IDF offers finance through equity, mezzanine and debt products that can be used even in early stage

of projects. The fund has the following fund limits:

Individual transaction amounts maximized at EUR 25 million

Financing about 25% of total project investment

Shareholding maximum 25%

Maximum tenor of 20 years

Convertible contributions are selectively available for financing during the development phase of

projects (up to 49% of total development cost)

About 8% of the portfolio is allocated to water related projects (mainly water related to energy:

dams). IDF hardly finances projects in other sub sectors of the water sector, this is due to: 1) the

limited willingness to pay (drinking water), 2) the strong involvement of a weak public sector, 3) the

limited role of the private sector, 4) the lack of involvement by Dutch water sector as a strategic

operator or investor.

Within the FMO organization the department NL Business manages the IDF fund and provides

(financial) transaction advisory support to Dutch businesses aiming to become active in developing

markets. NL business brings in the financial perspective when Dutch businesses want to develop a

consortium. Regarding consortium development within the Dutch water sector, port development,

dredging and waste (water) treatment are potential sectors. Thinking along the lines of so called

corridor concepts (infrastructure connection points like transfer utilities) seems to be a promising

market entry point.

EP - Nuffic:

EP-Nuffic is the main expertise and service centre for internationalization in Dutch education, from

primary and secondary education to higher professional and academic higher education and

research. EP – Nuffic runs several programs, the NICHE program is relevant for the water sector.

The Netherlands Initiative for Capacity development in Higher Education (NICHE) is a Netherlands-

funded development cooperation program. By sustainably strengthening higher education and


technical and vocation education and training (TVET) capacity in partner countries, it contributes to

economic development and poverty reduction. The program focuses on four policy priorities: 1)

Water, 2) Food security, 3) Sexual and Reproductive Health and Rights (SRHR) and 4) Security and

the rule of Law.

Dutch Commercial Banks:

Looking at the global networks of the larger Dutch international operating banks (ABN AMRO, Rabo

bank and ING), the Rabobank has the most visible overall presence in the 12 Water OS. In the

strategic interviews, this bank was the only commercial bank mentioned a couple of times as being

active in the international water sector.

The water sector is not a specific priority sector for Rabobank. From an international perspective

Rabobank focuses on the agriculture sector. However Rabobank is involved in financing the Dutch

water sector in The Netherlands. From this perspective, Rabobank ‘follows its clients abroad’

(especially the dredging and water engineering sector plus larger consultancies are being mentioned).

Rabobank has branches in Kenya and Indonesia, participations in Rwanda and Mozambique and

operates in partnership with e.g. Standard Charter Bank in Mali, Ghana, and Bangladesh.

Export finance, guarantees and currency risk management are the most common services/products

offered to international operating clients.

International Financial Institutes (IFIs):

The so-called multilateral aid program of governments is being managed by IFIs like the Worldbank,

ADB, AfDB and EU (EU grant program and EIB). The following IFIs play an important role financing

water sector related projects, programs and businesses.

World Bank (WB):

In 2014 WB announced reorganization. The new structure has five relevant departments focusing on

water: GP14 Water, GP1 Agriculture, GP3 Energy and Extractives, GP 4 Environment and Natural

Resources, GP12 Transport and ICT, and GP13 Urban and Rural Social Development.GP14 Water

department integrates WASH, irrigation, and Water Resource Management. One global staff pool is

in place to partner with outside organizations. More weight is put on knowledge into operations. WB

offers loans to developing countries, projects have to fit the multiyear WB strategy, and the fund

receiving countries lead the tender procedure. About 20% of the annual budget is allocated to water

projects of which 53% WASH, 13% irrigation, 24% water and energy, and 10% flood protection and

delta technology.

The Asian Development Bank:

Programs of ADB are complementary to other donors and have the starting point to promote

inclusive water policies (including the poor). Focus on mainstreaming water efficiency in supply and

use and enhanced cooperation with the private sector. From 2010-2020 the budget is USD 20-25

billion.

The African Development Bank (AfDB):

Looking at the AfDB strategy 2013-2022 paper, the 10 year focus will be on inclusive growth and

green growth. The bank identifies five operational priorities: 1) infrastructure development, 2)

private sector development, 3) governance and accountability, 4) regional economic integration, and

5) skills and technology. In implementing its ten-year Strategy, the Bank will pay particular attention

to fragile states, agriculture and food security, and gender. Supporting the water sector is specifically

part of the agenda on infrastructure and agriculture and food security.


In view of its important contribution to the achievement of all the MDG goals and therefore its

unique contribution to poverty reduction on the continent, the water sector has received major

attention as a strategic priority of the Bank. Since 2000, following the adoption of its Integrated

Water Resources Management (IWRM) Policy, the Bank has increased its focus on the water sector,

especially on drinking water, sanitation and hygiene, and the promotion of integrated management

of water resources.

The African Water Facility is an interesting facility that can be used to finance WASH related

activities.

The EU:

These funds are the main source of EU development aid for the African, Caribbean and Pacific (ACP)

countries and the overseas territories (3% of the annual EU budget in 2008-13). The funds are

connected to the Cotonou Treaty. The European Investment Bank invests significant amounts in the

water sector. The grant programs do not have a specific focus on water related projects, the EU Water

Facility, one of the grant programs focusing specifically on water will be cancelled.

Foundations:

Especially for development related activities within the water sector, foundations provide interesting

opportunities to finances projects and programs. Below an unexhausted list of foundations provides a

first entry point to seek for funds. As each foundation has its own finance policy, we refer to the

individual websites for more information.

Blood:Water.

Blue Planet Network Foundation

Charity Water

ExxonMobil Foundation

Global Water Challenge

Millennium Water Alliance

Project Concern International

ActionAid International USA

Alcoa Foundation

Boeing Company Charitable Trust

BP Foundation

Global Green USA

Habitat For Humanity International, Inc.

Lemelson Foundation

McKnight Foundation

Prem Rawat Foundation

Water 1st International

Water Environment Research Foundation

Wateraid America, Inc.

World Vision, Inc.


Appendix III: Elaborated outcomes of web survey

The Comext database of Eurostat includes trade statistics for a limited number of water sector related

products. Table 1 demonstrated the development of the exports of these products for EU-28 in total

and for some EU-countries during the 2010-2013 period. The Dutch share in total EU-28 exports to

Asia is 5% on average , far lower than the share of Germany but higher than the share of France and

Denmark.

Table 1 Exports from EU28-countries to Bangladesh (in million. EUR) in total and for

water sector related products and export shares of some EU-countries, 2010-2013

2010 2011 2012 2013 Total 2010-2013

Total EU-28

exports to

Bangladesh

1.622 1.715 1.538 1.659 6.534

Water sector

related products

19,1 22,8 16,1 12,4 70,4

Shares in EU-28 exports of water sector related products

- Netherlands 4% 4% 6% 6% 5%

- Germany 21% 40% 18% 11% 25%

- France 6% 5% 3% 4% 4%

- Denmark 0,2% 0,1% 1,2% 0,7% 0,5%

Water sector related products:

TUBES, PIPES AND HOSES, AND FITTINGS THEREFOR, OF PLASTICS

TUBES, PIPES AND HOLLOW PROFILES, AND TUBE OR PIPE FITTINGS, OF IRON OR STEEL

STEAM TURBINES AND OTHER VAPOUR TURBINES AND PARTS THEREOF, N.E.S.

PUMPS FOR LIQUIDS, WHETHER OR NOT FITTED WITH A MEASURING DEVICE; LIQUID ELEVATORS; PARTS

FOR SUCH PUMPS AND LIQUID ELEVATORS

Source: Comext Eurostat

Figure A.1 Promising areas in Bangladesh according to companies and NGOs interested

in Bangladesh, in % of respondents (more answers possible)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Integrated water (resources) management

Groud and surface water for watersupply

Waterproductivity and food production - irrigation

Urban watermanagement

Drinking watersupply and treatment

Industrial watersupply and treatment

Drinking watertransport and distribution

Water distribution and quality

Reuse of domestic wastewater

Industrial watertransport and distribution

Collection and treatment of domestic wastewater

Collection and treatment of industrial wastewater

Reuse of industrial wastewater

Dams and flood control

Subsidence and salinization

Coastal management, development and land reclamation

Port development and - management

Companies (N=34) NGOs (N=5)



Figure A.2 Promising cross-overs in Bangladesh according to companies and NGOs interested in Bangladesh, in % of respondents (more answers possible)


Figure A.3 Development opportunities in Bangladesh according to companies and NGOs interested in Bangladesh, in % of respondents (more answers possible)


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

water and food (a.o. aquaculture)

water and ICT

water and industry

urban port development

companies (N=57) NGOs (N=10)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

WASH

Water management and safe deltas

Higher waterproductivity in agriculture

Other developmentgoals

companies (N=55) NGOs (N=10)


Figure A.4 Challenges for scaling up activities in Bangladesh according to Dutch companies, Water Boards and knowledge institutions, in % of respondents (N=47)


Figure A.5 Challenges for scaling up activities in Bangladesh according to NGOs, in % of

respondents (N=13)


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

get to financial rescources

realisation of the right contacts

formation of strategic alliances with

same partners



succesfully dealing with the culture

formaion of 1 to 1 partnerships

formation of PPPs

start a local agency

other challenges

start a local branch

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

get to institutional funding voor progamme management and coordination

get to local financial rescources for implementation

finding the right partners

scaling up current programmes


formaion of 1 to 1 partnerships

start a local representation or branch

formation of PPPs



dealing with social and cultural aspects in cooperation


Appendix IV: Sources

Exploring the Water Sector in Bangladesh. Trends, opportunities and practical information

Nyenrode University, 2014

Market Scan on the Bangladesh Water Sector

MottMacDonald, 2010

UN-Water Country Brief FAO, 2013

Quickscan Bangladesh G4AW Facility, 2014

Towards a National Road Map for Early Warning Sstem Development in Bangladesh

Deltares, 2012

Quick Scan Green Adaptation in Bangladesh

Deltares, 2013

Maritime Corridor Development Bangladesh- Scoping Mission Report

Panteia, 2013

MASP 2014-2017 EKN Bangladesh

National Water Policy Government Bangladesh, 1999

Urban WASH Mission Bangladesh DHV, 2011

Bangladesh Poverty Reduction Strategy Paper

IMF, 2013

Bangladesh Country Assistance Strategy 2011-2014

WB, 2010

Bangladesh Country Partnership Strategy 2011-2015

ADB, 2011

Bangladesh Country Strategy Paper 2008-2013 + mid term review

EU, 2008


Appendix V: Respondents

NWP/Core Advisors:

Ben Lamoree

Dutch Embassy:

Carel de Groot

Local water professionals (YEP, peer reviewers):

Md. Irfan

Niels van den Berge

Jonne Kleijer

Farook Chowdhury

Web survey:

Not disclosed

Strategic interviews:

Name organization Contact person Alkyon + ARCADIS Ferry Vis

Aqua for All Sjef Ernes

Aqua Industrial Water Treatment Marik Beerten

AquaAero Water systems Martijn Nitzsche

Atradius Oscar Boot

Bam International Maikel Jagroep

Bam International Henk van Veen

Basic Water Needs Martijn Smits

Berson UV Paul Buijs

Boskalis Bastiaan Lammers

Bucon Industries Peter Bulsing

Colubris Environment Marco Moekardanoe

Deltares Ron Thiemann

ECORYS Nederland Viek Verdult

ECORYS Nederland Ilse van de Velde

Euroconsult Mott Macdonald Pieter van Stuijvenberg

Euroconsult Mott Macdonald Hero Heering

FMO Roel Messie

Genap Dick van Regteren

Groasis Pieter Hoff

Grontmij Nederland Ernst Malipaard

Hatenboer-Water Peter Willem Hatenboer

ID Consultancy Dick Konijn

IHC Merwede Sergio Ooijens

IRC Stef Smits

ITC Victor Jetten

ITC Dinand Alkema


Landustrie Sneek Arie van Steen

MetaMeta Simon Chevalking

Nijhuis Water Technology Christiaan Beuzel

Norit Jan van den Dikkenberg

Rabobank International Alexander Hoogendoorn

Redox Water Technology Maurice Nijrolder

Royal Eijkelkamp Fons Eijkelkamp

Royal Eijkelkamp Frank Tillmann

Royal Haskoning DHV Nederland Harrie Laboyrie

Safisana Holding Aart van den Beukel

Simavi Ewout van Galen

SNV Leendert Bos

TNO Albert Jansen

UNESCO-IHE Pieter van der Zaag

Vitens-Evides International Marco Schouten

WASTE Jacqueline Barendse

Waterschap Aa en Maas Paule Dobbelaar

Wavin Overseas Giles Crofts

Wetlands International Chris Baker

Witteveen + Bos Polite Laboyrie

WUR Ivo Demmers

ZOA Harm Bouta

Date post:	13-Feb-2017
Category:	Documents
Upload:	buiquynh
View:	232 times
Download:	4 times

Bangladesh positioning survey

Documents