Clean Water Allies: Water Companies Make Their Presence Felt Abroad
Water Online's "Peer Perspectives" is a Q&A series that provides unique insight into the issues facing water professionals by speaking directly to you, the reader. For this installment we spoke to Michael Rosenfeld of UK Trade & Investment (UKTI), an agency of the British government that helps United Kingdom-based companies branch out to other countries and, likewise, assists in bringing quality foreign companies into the UK. As vice consul-USA clean technology sector lead officer, Rosenfeld explains the significance this collaboration has on the water sector, specifically in the United States, and how companies and utilities can benefit from it.
How is the UK lending its water management capabilities to the United States and other nations?
The UK water and wastewater industry draws on its experience in developing integrated water resource management solutions and techniques. Overall, the UK is driving forward the sustainable, low-carbon agenda, proactively addressing issues of climate change and water and energy security by promoting the development of low-carbon green technologies to expand on its existing international expertise.
Currently, the UK's key strengths in the water and wastewater industry include flood management, research and development, and legal and financial expertise.
Can you elaborate on each of those strengths?
Regarding flood management, the UK has developed world-leading flood-modeling expertise that enables an accurate assessment of risk from flooding, and subsequently harnesses that information to implement appropriate solutions. Examples include catchment management, flood defenses, provision of flood warning systems, provision of washland and wetland systems, and policies that reduce development in flood-risk areas.
As part of its drive to become a global leader in low-carbon solutions, the UK has made a significant investment in new water technology R&D to identify and introduce technologies that will help provide clean water by using less energy and chemicals.
And with the provision of water and wastewater treatment solutions so capital intensive and often complex, the UK has numerous experts in the legal and financial sector to help deliver on important projects. Areas of expertise include public-private partnerships, private finance initiatives, development and construction financing, regulatory advisory work, privatization, dispute resolution, and mergers and acquisitions.
What specific measures has the UK taken to ensure a sustainable water future?
The UK and European Union (EU) have implemented many directives designed to deliver clean water and sanitation to their populations. The EU Water Framework Directive is driving a fundamental change in the management of water throughout Europe by committing member states to achieve good qualitative and quantitative status of all water bodies by 2015. The directive will help to protect and enhance the quality of surface freshwater, groundwater, groundwater-dependent ecosystems, estuaries, and coastal waters out to one mile from low-water.
The Floods Directive, in particular, is interesting in that it adopts a new proactive approach. It requires the EU to prepare preliminary flood-risk assessments for all river basin districts by 2011, flood hazard maps by 2013, and flood-risk management plans by 2015.
How do the regulatory agencies of the UK compare to those in the United States?
The United States and the UK have similar systems for regulating water quality and pollution control. In the United States, you have the Environmental Protection Agency (EPA) as well as state, regional, and local agencies that regulate water and wastewater. The EPA enforces federal clean water and safe drinking water laws, provides support for municipal wastewater treatment plants, and takes part in pollution prevention efforts aimed at protecting watersheds and sources of drinking water.
In the UK, the Department for Environment, Food and Rural Affairs (DEFRA) is responsible for all aspects of water policy, including supply, resources, and the regulatory systems for the water environment and water industry. DEFRA also works closely with the Environmental Agency, which manages water resources and enforces water quality standards; the Drinking Water Inspectorate, which regulates the quality of drinking water; and OFWAT (Water Services Regulation Authority), which is responsible for financial regulation of the water industry.
What opportunities exist in the UK for foreign water companies?
The UK has an open economy, fostering foreign direct investment from around the world. For instance, just looking at water utilities, Thames Water is owned by an Australian investment group and French-owned Veolia Water owns and operates several UK water utilities. A number of large U.S. companies working in the water sector already have a significant presence in the UK as well, including MWH, CH2M Hill, Black & Veatch, URS, Jacobs Engineering, and AECOM.
Among the technologies deployed in the UK water and wastewater market, notable products and services include pumps, pipes, valves, and filtration. If a company has an innovative product or service and it's an offering that the market wants, it can be successful in the UK.
What obstacles do foreign companies seeking expansion to the UK typically encounter, and how do you assist them?
It can sometimes be difficult for companies to enter new markets, even in an economy as open as the UK's. Working with a local strategic partner that knows and is known in the particular region can be an advantage to North American companies new to the UK market. UK Trade & Investment (UKTI) offers a variety of services — all at no cost and on a confidential basis — to assist and support North American companies in entering the UK more quickly and easily. UKTI support includes assistance in UK company registration, work visas, premises search, market intelligence, and strategic partner introductions.
On the other side of the coin, UKTI also supports UK companies looking to expand internationally. We provide UK companies with market intelligence, participation in tradeshows, advice on communicating overseas, and support and guidance from experienced advisors.
Many U.S. utilities are in need of infrastructure improvements, but lack the funding. How does the UK water market approach this issue?
The most notable difference between the U.S. and the UK water markets is public versus private ownership. In the U.S., water utilities are mostly owned and operated by local governments, and funding for water projects primarily comes from public sources. The UK takes a different approach, relying on the private sector to pay for water projects. The water sector is a wholly privatized industry in the UK. That is the UK's global unique selling point.
By helping UK water companies gain a foothold in the United States, is there any concern of American backlash (i.e. "they're stealing our jobs")?
No. When a UK company does business in the U.S., it competes on the same terms as a U.S. company does for workers and it pays U.S. taxes on revenue generated in the U.S. The same holds true for U.S. companies doing business in the UK. In fact, about a million American workers go to work every day for British-owned companies in the U.S., and about a million British workers go to work every day for American-owned companies in the UK. The sharing of ideas and technology can only be seen as beneficial for the future of water.
If you would like to add to the discussion with your own thoughts, insights, or experiences, please share them through the comments section below. To be the subject of a future Peer Perspectives Q&A, please e-mail me at editor@wateronline.com. Regardless of position or industry segment, we want to hear from you!