ANALYSIS: The plastic pipes segment stabilizes to 100 million euros

The local market of plastic pipes (PVC, PE and PP), valued at about 100 million euros in 2014, will follow a growth trend in the current financial year, given that 2015 is the last year when can be accessed the European funds in infrastructure for the programming period 2007-2013, according to the opinions of the managers of the main suppliers in this field. In 2014, the total sales on the plastic pipes sector remained at the previous year levels, both in term of quantity and value. The most requested piping systems on the Romanian market are still the ones made by PVC. Regarding the sector of sand-filled and glass-fiber reinforced pipes in Romania, it decreased in 2014 to less than 13 million euros, given the Government cuts of some important funds necessary in water management infrastructure. However, the market's contraction is attributed to the low rate of absorption of EU funds through the Sectoral Operational Programme - Environment, which reached 42.28%, respectively 1.866 billion euros of the total allocated 4.413 billion euros. However, in recent years, the system of water supply and sanitation were improved significantly, especially due to the infusion of investments from European funds (European Agricultural Fund for Rural Development - EAFRD, ISPA, World Bank, EBRD, EIB, SAPARD etc.), the state budget (Environmental Fund, government programs to promote projects of development and modernization of infrastructure in rural areas, other national regulations etc.). It also benefited of important funds from the local budgets, the operators' own sources, or different public and private loans. However, the implementation process was extremely slow. Due to delays, some of these projects will be completed in 2015, and will continue to be implemented in the programming period 2014-2020. Regarding the evolution of the population connected to centralized water supply, according to the Romanian statistics institute (INS), in 2012 the degree of connection reached 60.15%, and it is estimated that at the end of 2015 it will be of about 64, 3% (by completing investments undertaken so far).