Management of local water supplies is the priority, but this expertise is also being put to good use in overseas markets
he
harsh summer climate has led to the evolution of a number of highly
specialised and innovative water companies to guarantee that Greece
does not run dry. The priority is to manage the country’s water
resources, but the skills and technology that have been developed are
proving valuable abroad.
Since the 1980s, the state-run Athens
Water & Sewage Board (Eydap), one of the biggest single institutions
in Greece, has provided the Greater Athens region with its water. It
supplies about four million people, covering the wider area of Attica,
with an annual consumption rate of 390 million cu metres.
Following a flotation in 1999 that saw 30 per cent of the company sold
off to private investors, Eydap has begun an ambitious investment programme
and set out its vision to expand into new activities such as energy
and telecoms.
At the end of 2001, Eydap signed its first foreign deal to help the
government of the former Yugoslav republic of Macedonia to improve its
water supply networks in three cities. The $258,000 project will cover
Skopje, Koumanovo and Kavadarsi.
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The
move is Eydap’s first venture into the Balkan market and forms
part of its plans to expand activities across northeastern Europe. Managing
director Dr Dionissios Xenos
says the move illustrates a shift in emphasis for the company.
“A new mentality has been introduced to the management and employees,”
he says. “Eydap is not only a company with a public interest but
also an enterprise, and therefore an entrepreneurial mentality is necessary.
This change was hard and took time, yet it was finally introduced.”
At home, the company is gearing up for Athens 2004 and will supply water
services to the Olympic village now under construction. Mr Xenos says
the first steps towards creating a multi-service utility company have
already been taken.
As
well as generating electricity from biogas at its Psyttalia wastewater
treatment plant, Eydap is studying the feasibility of installing fibre-optic
cables in the Athens area. He says discussions are under way with various
Greek partners to create this alternative telecoms network.
Despite plans to diversify and expand, it is still water – a commodity
widely undervalued – that is expected to form the basis of any
future growth for Eydap. “One of the most important commodities
of this century will clearly be water.
Its value is huge, but its price remains very low,” says Mr Xenos.
Another Greek water services company, Eurodrip,
which went public in 2000, is also looking to take its expertise further
afield following a number of successful forays selling its unique drip-irrigation
systems. Its products, which offer significant savings on water and
fertiliser costs for farmers, serve clients in around 64 countries.
The
drip-irrigation systems are mainly designed for the management of irrigation
and the fertilisation of large areas of land. Aside from the savings
they also help to protect the environment. The systems are large, however,
and generally cannot be transported further than 1,000km, hence the
need to set up more production centres around the world.
The company has production facilities in the US, Egypt and Turkey, selling
across the North American, Mexican, North African and Middle Eastern
markets.
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But
Eurodrip chairman Dimitrios Paraskevopoulos
says the firm still has big ambitions abroad. “We need to enter
new markets; for example, China, South America, Australia and Brazil.
I foresee that this will be our biggest project over the next five or
10 years.”
For poor farmers in less developed states, such as in Africa or India,
there are cheaper solutions available. Eurodrip is also strengthening
its business on the home front, most recently taking a 68.2 per cent
stake in irrigation equipment distributor Hydroelenchos.
Eurodrip believes that Hydroelenchos’s infrastructure could well
improve its own chances in bidding for contracts for landscaping and
developing green areas ahead of the 2004 Olympic Games.
Despite being a relatively young company, formed in 1979, Eurodrip has
built up some impressive credentials, including recognition from the
European Union.
“Of
the 85 per cent of water used in agriculture to irrigate crops in every
country, our system can save 40-60 per cent,” says Mr Paraskevopoulos.
“This statistic has been recognised by the EU. They have included
special provisions to subsidise this system in the third EU support
framework to support the Greek economy.”
The company has also developed a tailored package and turnkey solutions
programme known as Megadrip, alongside Swiss shareholder ASI Global,
to assist major customers.
First steps towards developing a multi-service utility have been taken
Mr
Paraskevopoulos says the company is always looking to form new partnerships
with big farming corporations such as Del Monte or large state enterprises
such as those at work in China.
Eurodrip plans to grow through increased investment in new facilities
and production sites, and through continued expansion into new markets.
“There is huge potential for a company like Eurodrip throughout
the world, particularly because there are periods of drought everywhere,”
he says. “Water supplies will diminish and governments and world
institutions must find solutions for agricultural and urban use.”
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