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Water, Investment and Innovation in the Mediterranean CMI consultation

Zoé Luçon, Project Manager, ANIMA Bénédict de Saint-Laurent, Scientific Adviser, ANIMA Marseille, 16 March 2012

www.anima.coop

ANIMA: Mission and objectives ANIMA Investment Network is committed  to favour a shared and sustainable economic development in the

Mediterranean  particularly in relation with Europe and the neighbouring countries (Black Sea, Gulf States, etc.)

ANIMA participates, with a network of public and private, local, national and international stakeholders  to the development of investments and business partnerships, of

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innovation and entrepreneurship, and to the internationalisation of enterprises in order to contribute to the creation of added-value and jobs to an increased awareness of the environmental and social stakes to the balanced partnership between North and South and to the economic integration of the countries in the region

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Organisation President

Vice presidents

Strategic partnerships

.GAFI (Egypt), Mrs Wafaa Sobhy

.AMDI (Morocco) .ANDI (Algeria) .Invest in Greece (Greece) .City of Marseille (France)

.European Commission .City of Marseille .PACA Region .EPA Euroméditerranée

Treasurer

.MedAlliance: ASCAME, BUSINESSMED, EUROCHAMBRES, ASCAME, GIZ, UNIDO

.AFAEMME (Spain)

.UfM Mission (French Government), AFD, Caisse des Dépôts, Oseo

Other Board members .AMEC (Spain) .ADECI (France) .Conseil Régional Provence-AlpesCôte d'Azur (France) .ACC1O (Spain) .EPA Euroméditerranée (France)

.Euromed Network of Business School .FIPA (Tunisia) .Invest in Israel (Israel) .Provence Promotion (France) .City of Marseille (France)

.Mediterranean networks: OCEMO, Euromed Capital Forum, INSME, EBN, EBAN, Euromediti, Eurada, IEMed, IPEMed, Femise, Euromed Business and Engineer schools

Executive team (15 staff)

Strategic advisors

directed by Emmanuel Noutary

.Bénédict de Saint-Laurent, Founder of ANIMA .HE Hassan Abouyoub, Ambassador of Morocco in Italy

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Target sectors and activities Strategy / Promotion for the MED territories  Studies and guide books on business opportunities  Observatories: Investment, Partnerships, Funds  MedAcademy: training sessions and seminars for economic

development actors  Organisation of annual investment forum (EUROMED INVEST)

Sector co-operation / clusters engineering  Identify key domains of the global positioning of the Mediterranean  Mobilisation and coaching of thematic business networks  Promotion of initiatives to develop these niche sectors and transversal

issues (Diasporas)  Business events, staff exchanges, workshops, business support, etc.

Innovation and entrepreneurship  Internationalisation of start-ups (coaching, bus. development)  Promotion of early stage financing  Support to innovation organisations and networks

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Current projects  Support the international development of Mediterranean start-ups  A network of 50 innovation org. supporting over 100 entrepreneurs  Individual coaching and collective international business

development

 Seed fund for partnerships between innovative firms  Sponsored by French government, AFD, Caisse des Dépôts, Oseo  Already 20 companies awarded  25 French innovative enterprises to be financed in 2012  Aims at facilitating investment and business between the EU

countries + Turkey and the 6 Eastern Partnership (EaP) countries  ANIMA develops the online investment and business helpdesk of the project  Regional study on the profiles and expectations of incubators,

technology parks and technology transfer centres in the Mediterranean

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Water, Investment and Innovation in the Mediterranean

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Barriers to water innovations in the MED region Water management is first and foremost a political issue...  Water is a vital issue for the Med region  Improved water management implies

technical innovation but also financial, institutional and governance changes!  Water must be at the top of political agendas

Main guiding principles  From water supply to water demand

management: priority 1 of the Mediterranean Water Forum launched in Dec. 2011  A right water price…  A move toward the green economy and more sustainable investments

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Investment in water related sectors in the MED region ANIMA-MIPO: Mediterranean Investment and Partnership announcement Observatory  Registers every FDI and partnership project (representative offices,

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commercial or technological cooperations, stores etc.) announced in the MED countries 7,000 projects monitored since 2003, according to 25 criteria Quarterly trends Annual reports Real time information on www.anima.coop/mipo

MedMaps:  Geographical information system  Online dynamic mapping of economic

zones, FDI and partnership projects  www.medmaps.eu March 2012

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Investment in water related sectors in the MED region Investment and partnership projects in water related sectors:  Water services: water production (including desalination), water   

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treatment, water reuse Irrigation Hydroelectricity (and other types of energy): water-energy nexus Water technologies and equipments: development and/or manufacture of hydraulic equipments, water treatment technologies, water meters, etc.

Agribusiness: bottled water…

Consulting services

Different types of foreign involvement:  FDI: concessions, BOT (water services), greenfield / brownfield

projects (plants…), joint-ventures, etc.  Partnerships: opening of representative offices, commercial partnerships (distribution agreement), technological partnerships, management contracts March 2012

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Investment in water related sectors in the MED region 100 projects detected (87 FDI; 23 partnerships) since 2003 30 25

7

20

2

3

15 10

2

FDI

23 1

5

17

16 5

0 Egypt

14

1

7 Algeria

Partnership

Israel

Jordan

3 1 Lebanon

4 Libya

1 Morocco

Syria

3 Tunisia

Turkey

 Algeria: BOT projects for desalination and treatment plants, delegated

management of water services  Israel: participation in Israeli companies (irrigation), desalination and other water technologies, R&D, BOT projects  Morocco: delegated management of water services + environment and hydrobiology cluster with Fez Sidi Mohammed Ben Abdellah university  Turkey: hydropower projects (EnerjiSA, JV with Austrian Verbund) March 2012

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Investment in water related sectors in the MED region European businesses and large companies lead the way 80

Fund 4%

70 60

SME 12%

Partnership

18

FDI

50 40 30

Major Co. 36% 53

20

4

10

13

15

Other countries

USA-Canada

0 Europe

Transnational Co. 48%

1

5

1 3

MED-11

Gulf

 Leading investing countries:  France (29 projects): water services, equipments, consulting services  Spain, USA and Austria (10-15 projects each)  USA / Canada: more technological projects (7 projects in Israel)  Water is a very capital intensive sector: large companies are dominant  SMEs are mostly involved in the manufacture and/or distribution of

water equipments

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Innovation in water related sectors in the MED region “Etude régionale sur les profils et attentes des incubateurs, technopôles et centres de valorisation” for the CMI and EIB List of innovation organisations that host companies in the field of water in Morocco, Tunisia and Jordan:  Agrotechnopôle d’Agadir : Technopôle  Océanopôle de Tan Tan : Technopôle  Technopole ECOPARK de Borj-Cédria : Technopôle  Centre d'Innovation et de Développement de l’INSAT : Centre de

valorisation/ Incubateur  South Business Incubator Centre -Al Hussein Bin Abdullah II Industrial Estate – Karak: Incubateur

Israel, a Mediterranean and world leader in terms of water technologies (unfortunately not in terms of management of transboundary water resources…)

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How to foster water investment?

A few recommendations:  Assessing the real cost of water

and cost of business as usual scenario  

Plan Bleu: 25% of water demand could be saved by 2025 Charting Our Water Future, Economic frameworks to inform decision-making, 2030 Water Resources Group/ McKinsey, 2009

 Adopting precise and measurable targets and indicators about water

allocation and water consumption

 Ensuring economic viability of projects: the “3Ts” approach (OECD)  Taxes, Tariffs and Transfers (ODA): 3 financial sources of water investment  Achieving a sustainable cost recovery from a combination of these financial sources: user charges, public budgets and ODA  Water should be taken into consideration in all economic development

strategies (water consumption of tourism resorts, virtual water in agriculture and other industrial activities, etc.)

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How to foster water innovations?

Involve all relevant regional stakeholders  Innovation communities  Private sector  Diasporas

Enhance governance  In technoparks, incubators, valorisation centres  At national level  At regional level

Reinforce regional co-operation  Building a regional strategy: water among the key issues in innovation  Pooling services supporting innovation internationalisation  Sharing / co-developing regional support services

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Thank you for your attention

 Zoé LUÇON  zoe.lucon@anima.coop

 ANIMA Investment Network 11b rue Saint Ferréol 13001 Marseille – FR T. +33(0) 4 9611 6760 www.anima.coop

 Bénédict de SAINT-LAURENT  bsl@anima.coop