As reported in the December 22 Update, US-AEP's Environmental Technology Fund ("Tech Fund") program has helped participating U.S. firms obtain nearly $330 million in export earnings since its 1992 inception. This was one of the findings of a recently completed, comprehensive review of the Tech Fund, which facilitates exports by providing grants to small- and medium-sized U.S. environmental technology companies. The study also revealed that the fund is highly valued by participants: 90 percent of the grantees surveyed indicated that their success in exports would not have been possible without the financial assistance provided by the program.

The review was undertaken by the Tech Fund's administrator, the National Association of State Development Agencies (NASDA), and involved the analysis of all 238 projects funded through fiscal year 1997. In addition, NASDA conducted a survey of past participants, including more than 300 separate companies and non-profit sponsors. Following are other findings of the review. A full report will be available to all US-AEP partners later this month.

* The top target market for Tech Fund activities was Indonesia, which has participated in 76 Tech Fund projects.

* In terms of revenue generated through the Tech Fund, Malaysia was the number-one market, with $40.3 million in sales.

* California firms participated in the largest number of projects--a total of 30--and have generated sales of $35 million from exports to Asia.

* Western and northwestern states--California, Colorado, Washington, Minnesota, Montana, and Arizona in particular--were most active in Tech Fund activities.

* Despite the current economic downturn in Asia, most companies surveyed indicated a willingness to stay in the market for the long term.

With the support of US-AEP's State Environmental Initiative (SEI) program, "sister" relationships continue to evolve between key institutions in U.S. states and their counterparts in Indonesia. First, under the leadership of the Vermont Agency of Natural Resources, organizations involved in the management of Vermont's Lake Champlain are partnering with Indonesian government agencies and other groups to improve the environmental performance of Indonesia's Lake Toba. With financial assistance from an SEI grant, 22 Indonesian officials and NGO representatives visited Lake Champlain last September and were hosted by the Lake Champlain Basin Development Program, headed by Lisa Borre. (Ms. Borre earlier assisted in developing a community information campaign for Lake Toba through a US-AEP Environmental Exchange Program fellowship.) Meetings with representatives of the Lake Champlain program enabled the Indonesians to learn about multi-jurisdiction lake management, while discussions with several city mayors facilitated exchange of information on each city's lake development initiatives. Presentations and field demonstrations were conducted on topics including alternative wastewater treatment, nuisance aquatic plant control, and citizens' monitoring programs. The delegation also toured pulp and paper plants to learn about clean technologies; met with local NGOs to find out about lake protection efforts; and discussed the role of the tourism industry in lake management with the Lake Champlain Regional Chamber of Commerce. Finally, the delegation visited the Plattsburgh, New York, Eco-Industrial Park to discuss voluntary environmental standards. In the spring of 1998, a delegation from Vermont will travel to Lake Toba to solidify this relationship. The U.S. representatives will help apply the Lake Champlain management model to the Lake Toba region and will facilitate the transfer of appropriate U.S. technologies for wastewater treatment and paper production.

The cities of Surabaya, Indonesia, and Seattle, Washington, also established a sister relationship in 1997, facilitated by an SEI grant intended to improve Surabaya's drinking water supply. The Washington State Department of Community, Trade and Economic Development led this effort, which has linked government officials and utility professionals in both cities. Representatives of the Surabaya Water Supply Enterprise (PDAM Surabaya) visited Seattle in early 1997 to receive on-the-job training and attend workshops on water distribution, water quality, and sanitation. In late November, Bruce Flory, economist for Seattle Public Utilities, visited Indonesia to meet PDAM Surabaya management and provide rate-setting and demand-forecasting instruction to 15 key employees. This training was critical, as the enterprise will soon raise its rates and must resolve issues regarding new water supply sources. Mr. Flory also suggested approaches that PDAM Surabaya might take as it begins to provide sewer and sanitation services. The State Environmental Initiative program is implemented by the Council of State Governments.

In early December, Kevin Bricknell and K. Balakrishnan of US-AEP/New Delhi helped coordinate activities for U.S. Secretary of Commerce William Daley's Business Development Mission to India. Their work was specifically applauded in a letter to Secretary Daley from mission participant James Salisbury, Chief Financial Officer of California company DryVac Environmental, Inc. Through meetings arranged by the New Delhi team, Mr. Salisbury was introduced to senior-level Indian officials, including the local Pollution Control Board. Pleased with the results of these meetings, he stated, "We have already quoted over $1 million in solid potential sales of equipment and are receiving at least two fax requests daily for additional quotes or follow-up information."

"Financing for Municipal Environmental Infrastructure" was the topic of a US-AEP Environmental Exchange Program course held from October 27-31, 1997, in Pattaya Beach, Thailand. More than 20 government officials and wastewater professionals from Thailand and the Philippines participated in the training, exploring the tools, techniques, and methodologies that local governments can use to establish effective infrastructure partnerships with the private sector. Attendees completed a series of case studies and, by developing action plans, demonstrated how they would apply methods learned after returning to their jobs. Also attending the course were Emmanuel Miciano, Project Management Specialist at USAID/Manila, and Rotor Dacanay, Urban Environmental Infrastructure Representative at US-AEP/Philippines. The Environmental Exchange Program is administered by the Institute of International Education.