13. THE DEVELOPMENT OF THE PORT ISLAND LOCATED IN CONSTANTZA HARBOUR - "A Terminal for Loading and Unloading Petroleum Products"

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3 CONTENTS 1. MOTORWAY TÂRGU MUREŞ IAŞI UNGHENI MOTORWAY BUCHAREST ALEXANDRIA - CRAIOVA BRAŞOV SIBIU HIGHWAY MOTORWAY "MOLDAVIA", ON BUCHAREST CHISINAU ROUTE MOTORWAY PLOIEŞTI - RÂŞNOV MOTORWAY CONSTANŢA - VAMA VECHE HIGH SPEED RAILWAY LINE BUCHAREST - IASI UNGHENI HIGH-SPEED RAILWAY CONSTANŢA BUCHAREST CRAIOVA / (SOFIA) TIMIŞOARA / (BELGRADE) CLUJ / (BUDAPEST) CONSTANTA - MANGALIA MODERNIZED RAILWAY BUCHAREST- NORTH RAILWAY STATION RING MODERNIZATION DEVELOPMENT OF ARGES AND DAMBOVITA RIVERS FOR SHIPPING AND BUILDING BUCHAREST SOUTH AIRPORT (BUCHAREST HUB) PIER 3 AND 4 SOUTH CONSTANTZA HARBOUR

4 13. THE DEVELOPMENT OF THE PORT ISLAND LOCATED IN CONSTANTZA HARBOUR - "A Terminal for Loading and Unloading Petroleum Products" EXPANDING METRO NETWORK CERNAVODĂ NUCLEAR POWER PLANT, UNITS 3 AND COMBINED CYCLE GAS TURBINE POWER PLANT - IERNUŢ PUMPED-STORAGE HYDROELECTRIC POWER PLANT TARNIŢA- LĂPUŞTEŞTI NEW ENERGETIC GROUP OF 600 MW TO ENERGY COMPLEX OLTENIA - SE ROVINARI NEW ENERGY GROUP, IN A COMBINED CYCLE, IN CONDENSATION, WITH A 400 MW CAPACITY AND FUNCTIONING BY NATURAL GAS, TO MINTIA POWER PLANT WITHIN COMPLEXUL ENERGETIC HUNEDOARA SA THE HYDROPOWER DEVELOPMENT OF OLT RIVER BETWEEN IZBICENI AND DANUBE. ISLAZ HYDROELCTRIC POWER PLANT THE HYDROTECHNICAL COMPLEX TURNU MĂGURELE - NICOPOLE ON THE DANUBE RIVER MAGISTRAL CANAL SIRET BĂRĂGAN THE ROMANIA S HOUSE OF TRADE SUSTAINABLE DEVELOPMENT IN FĂGĂRAŞ MASSIF - A NEW TOURISTIC COMPLEX FOR SKI RESORT OF NATIONAL INTEREST- BORŞA BUILDING LUXURY RESORTS SYSTEM T O THE BLACK SEA

5 27. THE ELECTRIC TRANSPORT MEANS FACTORY THE CONSTRUCTION OF EIGHT REGIONAL HOSPITALS THE CONSTRUCTION OF A REPUBLICAN HOSPITAL IN BUCHAREST THE CONSTRUCTION AND ENDOWMENT OF FOUR HUMAN TISSUES AND CELLS BANKS DEVELOPMENT OF A NATIONAL LABORATORY FOR IMPROVING THE MONITORING OF SUBSTANCES DISCHARGED INTO WATERS AND QUALITY OF DRINKING WATER FACILITIES PROVIDED TO THE INVESTORS

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7 PROGRAMS FOR THE DEVELOPMENT OF INFRASTRUCTURE IN TRANSPORT 7

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9 The modernization and development of transport should be addressed based on the principle of ensuring safety and security. Romania needs to join in this area of European infrastructure, taking into account the specific of romanian needs. Sustainable development of the economy must be supported by the development of a modern and high-quality transport infrastructure. The underlying principles of a modern and sustainable transport are: - ensuring safety and security both in passenger transport and in the carriage of goods, - increasing passenger comfort and meeting the mobility and transport needs, - regional cohesion and connectivity, by reducing disparities between regions. - the interconnection of all modes of transport, - promoting clean transports. 9

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11 MOTORWAY TÂRGU MUREŞ IAŞI UNGHENI 11

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13 1. MOTORWAY TÂRGU MUREŞ IAŞI UNGHENI The necessity and opportunity of the investment the investment objective is included in the Master Plan of Transport, which represents the sectoral strategy on the short, medium and long-term of the transport field; it is part of Corridor V, which is the link between Moldova, Transylvania and Europe over the Eastern Carpathians, representing the east-west connection of Romania and it connects to already constructed or in different phases of implementation motorways. Economic and social effects: makes the connection between important economic centers from Moldova (Iaşi, Paşcani, Bacău, Suceava) with those from Transylvania (Târgu Mureş, Cluj-Napoca, Zalău, Oradea) and further, through the Borş customs, with the European motorway network; the motorway surrounding areas will benefit from generating and complementing investments and creating new jobs; traffic efficiency; increasing passenger safety and reducing the number of accidents; the reduction of the negative effects on the environment. 13

14 Expected objectives Târgu Mureş - Ditrău - Târgu Neamţ sector, with a length of 210 km, with two lanes per way; Târgu Neamţ - Iaşi - Ungheni sector and the connection with the bridge over the Prut river of km long, with two lanes per way. Technical documentation for the sector Târgu Mureş - Târgu Neamţ - Iaşi there is a prefeasibility study elaborated in 2007 and a feasibility study elaborated in 2011 that need to be updated; for the Iaşi-Ungheni sector and the connection with the bridge over the Prut river, it is necessary to elaborate the feasibility study. Technical and economic data: the total value of the investment is approximately 8.9 billion euro, out of which: - for the Târgu Mureş - Ditrău - Târgu Neamţ sector - approximately 6.3 billion euro, - for the sector Târgu Neamţ - Iaşi - Ungheni - about 2.5 billion euro (motorway sector), - the bridge over the Prut river - approximately 75 million euro. 14

15 period of investment execution: 5 years; proceeding and return of investment - return of investment will be made on maximum 49 years agreed between public and private partners; private partner will maintain and operate during this period the mororway collecting income from motorway fee or vigneta, as well as renting services facilities. 15

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17 MOTORWAY BUCHAREST ALEXANDRIA - CRAIOVA 17

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19 2. MOTORWAY BUCHAREST ALEXANDRIA - CRAIOVA The necessity and opportunity of the investment the investment objective is included in the Master Plan of Transport, which represents the sectoral strategy on the short, medium and long-term of the transport field; the corridor overlaps the central compartment of the Romanian Plain (Vlăsia Plain, Romanaţi Plain, Oltenia Plain). Economic and social effects makes the connection to the express network and motorways and to areas with a still undeveloped economic potential, in the region; traffic efficiency; increases safety from road, goods and passenger transport and reduces the number of accidents; the reduction of the negative effects on the environment. Expected objectives 195 km long highway with two lanes per way; technical and service spaces; fuel supply stations etc. 19

20 Technical documentation feasibility study developed in 2013 that requires updating. Technical and economic data the total value of the investment, is about 775 million euro; period of investment execution: 4 years; proceeding and return of investment- return of investment will be made on maximum 49 years agreed between public and private partners; private partner will maintain and operate during this period the mororway collecting income from motorway fee or vigneta, as well as renting services facilities. 20

21 BRAŞOV SIBIU HIGHWAY 21

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23 3. BRAŞOV SIBIU HIGHWAY The necessity and opportunity of the investment the investment objective is included in the Master Plan of Transport, which represents the sectoral strategy of the short, medium and long term transport sector; reducing the connecting time between Braşov, one of Romania's most important economic center, and Western Europe. Economic and social effects makes the connection between the express and highway network with areas with economic potential still untapped in the regions of the motorway; traffic efficiency; increasing safety in passenger and freight transport and reducing the number of accidents; diminishing adverse effects on the environment. Expected Goals 120 km long motorway with two strips per sense; technical and service spaces; fuel stations, etc. 23

24 Technical documentation all technical documentation is required. Technical and economic data the estimated value of the investment is over 800 million euro. 24

25 MOTORWAY "MOLDAVIA", ON BUCHAREST-CHISINAU ROUTE 25

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27 4. MOTORWAY "MOLDAVIA", ON BUCHAREST CHISINAU ROUTE The necessity and opportunity of the investment the investment objective is included in the Master Plan of Transport, which represents the sectoral strategy on the short, medium and long-term of the transport field; ensuring the relationship between Bucharest and Chişinau. Economic and social effects makes the connection to the express networks, and motorways, and to areas with a still undeveloped economic potential, in the areas surrounding the motorway; traffic efficiency; increasing safety in passenger and freight transport and reducing the number of accidents; the reduction of the negative effects on the environment. Expected objectives the Bucharest-Ploieşti sector with three lanes on the way, already constructed, except for the distance from the 0 kilometer to the 3,325 kilometer, whose reception is estimated for the end of 2018; 27

28 Ploieşti - Buzău sector of 65 km long, with two lanes on the way, situated on the administrative territory of Prahova, and Buzău counties, passing through Ploieşti, Albeşti Paleologu, and Buzău cities; Buzău Focşani sector of 72 km long, with two lanes on the way, situated on the administrative territory of Buzău and Vrancea counties, passing through Buzău, Ramnicu Sarat and Focsani cities; the Focşani - Bacau sector, km long, with two lanes on the way, situated on the administrative territory of Vrancea and Bacău counties, passing through Focşani, Maraşeşti, Adjud and Bacău cities; Bacău - Paşcani sector, 81.2 km long, with two lanes on the way, situated on the administrative territory of Bacău, Neamţ and Iaşi counties, passing through Bacău, Roman and Paşcani cities; technical and services spaces; fuel supply stations etc. bridges, walkways, viaducts, etc. Technical documentation the pre-feasibility study for all the sectors was developed in 1997, and the procedures for carrying out feasibility, design and execution studies will be carried out in the next period. 28

29 Technical and economic data the estimated value of the investment, according to the Master Plan of Transport, is about 1.24 billion euro: - approximately 250 million euro, for the Ploieşti- Buzău sector (elaboration of project and, feasibility study, and execution works), - approximately 280 million euro, for Buzău - Focşani sector (elaboration of project and, feasibility study, and execution works), - approximately 430 million euro, for Focşani - Bacău sector (elaboration of project and, feasibility study, and execution works), - approximately 280 million euro, for Bacău - Paşcani sector (elaboration of project and, feasibility study, and execution works). period of investment execution: about 5 years; proceeding and return of investment- return of investment will be made on maximum 49 years agreed between public and private partners; private partner will maintain and operate during this period the mororway collecting income from motorway fee or vigneta, as well as renting services facilities. 29

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31 MOTORWAY PLOIEŞTI - RÂŞNOV 31

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33 5. MOTORWAY PLOIEŞTI - RÂŞNOV The necessity and opportunity of the investment The investment objective is included in the Master Plan of Transport, which represents the sectoral strategy of transport sector on short, mediu and long term; the route transits and connects areas with a population density above the national average and with important economic units; a significant tourist area well-known at international level too is also being transited; on this route are generated important transit or landing stream throughtout the year. Economic and social effects makea the connection to the express and motorways and areas with significant economic potential placed in the proximity regions of the motorways; traffic efficiency and increasing safety for passengers and freight transport and reducing the number of accidents; reducing the negative effects over the environment. 33

34 Obiective preconizate 109,3 km long motorways with two lanes per way; technical and services spaces and fuel supply stations etc. Technical documenation There is a feasibility study elaborated in 2006, which need updating and there is an environmental agreement for whole alignment. Technical and economic data the estimated value of investment is 1.5 billion euro. period of investment execution: about 4 years; proceeding and return of investment - return of investment will be made on maximum 49 years agreed between public and private partners; private partner will maintain and operate during this period the mororway collecting income from motorway fee or vigneta, as well as renting services facilities. 34

35 ROMANIAN HIGHWAYS MAP 35

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37 MOTORWAY CONSTANŢA - VAMA VECHE 37

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39 6. MOTORWAY CONSTANŢA - VAMA VECHE The necessity and opportunity of the investment Techirghiol Alternative Motorway - part of the Constanţa - VamaVeche Motorway sector on the Constanţa - Eforie Nord - Techirghiol - Costinesti line; motorway Costineşti-VamaVeche; the objective of investment is not included in the Master Plan of Transport, which represents the sectoral strategy on the short, medium and long term of the transport sector. Economic and social effects the objective is situated in the South East part of Romania and involves the construction of a motorway sector linking Constanta and Vama Veche (touristic resorts); the achievement of the objective will lead to the creation of a modern communication route with implications on the regional development of the area, the decrease of the travel times by increasing the transport speed, which will increase the traffic flow, decrease the pollution at all levels in the current transit areas, by reducing consumption fuel, reducing the number of road accidents and casualties, by increasing safety and security; 39

40 connection to the express and highway network and to areas with economically untapped potential in the nerby regions of the motorway; traffic efficiency; increasing safety in passenger and freight transport and reducing the number of accidents; diminishing the negative effects on the environment. Expected objectives 49 km long motorway - Constanta - Vama Veche; technical and service spaces. Technical documentation at the current date, the Feasibility Study elaboration phase is in progress km, representing Techirghiol Alternative; for the rest of the objective it is necessary to elaborate the entire technical documentation. Technical and economic data the estimated value of the execution: Techirghiol Alternative Motorway - part of Constanta - Vama Veche Motorway 40

41 Sector on the line Constanta - Eforie Nord - Techirghiol - Costinesti 51 million euros, without VAT; Costinesti-Vama Veche motorway - 35 million euro, without VAT; the recovery period of the investment: 3 years for the Costineşti-Vama Veche motorway section and 6 years for the Constanţa - Eforie Nord Techirghiol Costinești motorway section. 41

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43 HIGH SPEED RAILWAY LINE BUCHAREST - IASI UNGHENI 43

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45 7. HIGH SPEED RAILWAY LINE BUCHAREST - IASI UNGHENI The necessity and opportunity of the investment the investment objective is included in the Master Plan of Transport, which represents the sectoral strategy on the short, medium and long-term of the transport field; reducing the connecting time between Bucharest and the capital of the Republic of Moldova. Economic and social effects reducing the travel time between major cities / development poles on the route, such as Bucharest, Galaţi, Iaşi; increasing the number of passengers, and attracting them from air, and road transport to the rail transport; increasing the quality of services, while reducing the electricity consumption; the possibility of establishing a direct link between Bucharest and Chişinau and of future expansion to Sofia - Istanbul / Athens; creating new jobs; attracting foreign investors by creating specialized industrial sectors, and also attracting tourists and highly qualified young 45

46 people willing to work in the developed university / research / industrial centers / that will develop from the route. Expected objectives the high-speed current line infrastructure with a length of 500 km; infrastructure of stations and tunnels; telecommunication infrastructure; terminals, buildings, depots, power supply; lands acquisitions; technical and services spaces; environmental protection works etc. Technical documentation the elaboration of complete technical documentation is required. Technical and economic data the estimated value of the investment is about 6.18 billion euro, out of which 180 million euro for the design; period of investment execution: about 8 years; proceeding and return of investment - the operation will be made by the private operator for approximately 49 years; the private 46

47 investor will collect the income, both from railway operation fee and from budget subsidies. HIGH SPEED LINE BUCHAREST IASI UNGHENI 47

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49 HIGH-SPEED RAILWAY CONSTANŢA BUCHAREST CRAIOVA / (SOFIA) TIMIŞOARA / (BELGRADE) CLUJ / (BUDAPEST) 49

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51 8. HIGH-SPEED RAILWAY CONSTANŢA BUCHAREST CRAIOVA / (SOFIA) TIMIŞOARA / (BELGRADE) CLUJ / (BUDAPEST) Necessity and opportunity of the investment the investment objective is included in the Transport Master Plan, which represents the sectoral strategy of the transport sector on short, medium and long term; reducing the time between capital and cities on the route, with the possibility of making connections such as Timişoara Cluj, Craiova Sofia, Timişoara Belgrad. Social economic effects reducing the travel time between major cities / development poles on the route such as Bucharest, Constanţa, Craiova, Timişoara, Cluj; increasing the number of travelers and attracting them from air and road transport to rail transport; increasing the quality of services concurrently with reducing electric energy consumption; new jobs creation; attracting foreign investors by creating certain industrial specialized sectors, the tourists but also the young people highly 51

52 qualified which are willing to work in university/ research/ industrial developed centers or which will develop on the route. Expected objectives 1,275 km infrastructure; Stations and tunnels infrastructure; Telecommunications infrastructure; Terminals, buildings, depots, power supplies; Land acquisitions; Technical and services spaces; Environmental protection works etc. Technical documentation elaboration of the entire technical documentation is requested. Technical economic data the estimated value of investment is about Euro 17.9 billion, of which 552 million for design; length of time for execution is estimated at 10 years; investments' way of recovery and length of time - the operation service will be done by the private operator during 49 years 52

53 period; the private investor's gains will come both from tax on railway use and operation itself and subsidies given by the state. HIGH-SPEED RAILWAY CONSTANŢA BUCHAREST CRAIOVA / (SOFIA) TIMIŞOARA / (BELGRADE) CLUJ / (BUDAPEST) 53

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55 CONSTANTA - MANGALIA MODERNIZED RAILWAY 55

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57 9. CONSTANTA - MANGALIA MODERNIZED RAILWAY The necessity and opportunity of the investment increasing the quality of passengers and freight services; introducing high-speed train circulation, similar to those in Western, Southern and Eastern European countries; increasing the access of Constanţa and Mangalia cities to the development of mobility and connection of the persons, goods and related services; increase in the number of passengers and goods that use the railways; reduction of greenhouse gas emissions and their impact on the environment. Economic and social effects more efficient railway traffic; increase safety of road and passenger transport and reduce the number of accidents; diminishing the negative effects on the environment. Expected objectives total electrification of the railway line; rehabilitation of railway stations and annexes; 57

58 upgrading the railway infrastructure in accordance with the technical parameters set out by the TEN-T Regulation. Technical documentation feasibility study developed in 2002,which requires updating in line with current interoperability requirements. Technical and economic data the total value of the investment is approximately million euro; theperiod of executionis estimated to 9 years; proceeding and period of investment recovery - the investment will be recovered on a period of maximum of 20 years. 58

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61 BUCHAREST- NORTH RAILWAY STATION RING MODERNIZATION 61

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63 10. BUCHAREST- NORTH RAILWAY STATION RING MODERNIZATION The necessity and opportunity of the investment increasing the quality of passenger and freight services on the Bucharest Railway Ring; increase the access of the population from the surrounding localities of the Bucharest to the railway; decongestion of road traffic, by using alternative transport; the central position of the North Railway Station allows people to easily access the city center of Bucharest; the North Railway Station is the largest railway junction in the country that connects Bucharest with all other cities; optimizing passenger traffic in the urban area. Economic and social effects increase the efficiency of the railway traffic; increasethe safety of the passenger road transport; increase the comfort level for transit travelers through the North Railway Station; create an urban community consisting of office buildings, shopping and leisure centers. 63

64 Expected objectives doubling and electrification of the railway line; rehabilitation of railway stations and annexes; upgrading the railway infrastructure; development of the surrounding areas according tothe European standards; a three storey building construction for passengers; a P+8 construction building with functionalities for employees; a P + 10 construction building for offices; a hotel with 400 accommodation capacities, conference rooms and exhibition halls; modernization of the Basarab railway station; underground parking spaces. Technical documentation the feasibility study developed in 2002 requires updating in line with current inter-operability requirements. Date tehnico economice the total value of the investment for Bucharest Ring Road is about million euro and for modernization of the North Railway Station is 785 million euro; 64

65 the period of time for investment completion is estimated to 10 years; proceeding and period of investment recovery - the investment will be recovered on a period of maximum 20 years. 65

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67 DEVELOPMENT OF ARGES AND DAMBOVITA RIVERS FOR SHIPPING AND BUILDING BUCHAREST SOUTH AIRPORT (BUCHAREST HUB) 67

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69 11. DEVELOPMENT OF ARGES AND DAMBOVITA RIVERS FOR SHIPPING AND BUILDING BUCHAREST SOUTH AIRPORT (BUCHAREST HUB) The necessity and opportunity of the investment the objective of the investment is included in the Master Plan of Transport, which represents the sectoral strategy on the short, medium and long-term in the transport field; the objective of investment has as main target the complex arrangement of the Argeş and Dâmboviţa rivers, with the main function goods transport, including passengers transport, by making a waterway between Bucharest and the Danube, and other functions respectively, electricity generation, irrigation, flood protection, tourism, fishing, greening; by achieving this objective, the long-term economic development of the whole region of southern Bucharest is generated; the project is addressed both to the authorities managing transport, power generation, water management, as well as to the local communities bordering the two rivers up to the Danube; the implementation of the project could be influenced by external factors, the project being part of the European transport 69

70 network, as well as ensuring a long period of navigation on the Danube during the year; the cost-benefit analysis shows that the project is feasible from the economic point of view, RIRE, exceeding 10%. Economic and social effects: water transport is the most environmentally friendly mode of transport, this component radically solves a historical problem, the pollution of the Danube, including the two rivers downstream of Bucharest; by achieving this objective, economic and development activity will be generated for decades in an area with extremely low economic activity and local labor force will be promoted, generating several thousand jobs; the region will benefit from generating complementary investments; the investment will create the opportunity for the development of the horizontal industry, this being mostly achieved with indigenous building materials. Expected objectives damming of the Argeş River - on the navigable sector - by 4 hydrotechnical nodes located at Olteniţa, Budeşti, Gostinari and Copăceni, a fifth node is located in the Mihăileşti - 70

71 Cornetu area and delimits the accumulation lake from the area (the lake and the hydrotechnical node related respectively are in operation); 2 barrage steps la Cucuieţi şi Tânganu, on the navigable Dâmboviţa, downstream of the capital belt highway; the main harbour of the capital - on Argeş is in 1 Decembrie Dărăşti de Ilfov areas, and on Dâmboviţa in Glina area; there is a harbour at Olteniţa; each barrage stage forms a hydrotechnical node composed of the following works: - large waters barrage, equipped with dam segments, - hydroelectric power plant, - river locks (double on Argeş and simple on Dâmboviţa), - size of Bucharest South Airport will be designed for a traffic of approximately 30 million passengers on a maximum surface of 600 ha. Technical documentation it is necessary to update/complete the feasibility study, prepared at the level of 2012; the environmental permit procedure should be resumed/ continued, being a project with cross-border implications. 71

72 Technical and economic data: the total value of the investment is estimated at 2.5 billion euros of which: - approximately 1.6 billion euros for the construction of the Bucharest Danube canal, - approximately 900 million euros for the construction of Bucharest South Airport; the term of completion of the investment, including design and execution, is estimated at about 60 months; proceeding and return of investment - the private partner will operate these two objectives on a period of approximately 20 years collecting all the taxes and income generated by economic activities performed. 72

73 PIER 3 AND 4 SOUTH CONSTANTZA HARBOUR 73

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75 12. PIER 3 AND 4 SOUTH CONSTANTZA HARBOUR The necessity and opportunity of the investment the investment objective is included in the master plan of transport, which represents the sectoral strategy of the short, medium and long term transport sectors; the Expansion of Constanta Harbor by creating additional operating berths; the construction of some terminals could be possible and it may become attractive for the investors only after the completion of the current infrastructure works, namely: docks, territories, road and railway connections and bringing these to the main utility networks near the sites; the opportunity to develop the commercial shipping line with Poti and Batumi ports in Georgia; due to the large depth of the quays, there are also many opportunities for the construction of new specialized terminals such as: a Ro-Ro terminal, grain and general cargo, and a ferryboats terminal. Economic and social effects enhancing passenger and freight maritime transport; 75

76 increasing the volume of trade; increasing company s revenue from operating and managing the newly created infrastructure; the possibility of operating a large capacity vessels due to the large depth of water in the mooring area; creating new jobs; reducing the negative effects impacting the environment by increasing the share of maritime transport at the expense of other types of transport. Expected objectives area of land gained over the sea: about 59 hectares, out of which 41 hectares of operating platforms and 18 hectares of logistics area in the case of the Pier 3; area of land gained over the sea is about 90 hectares, out of which 75 hectares are of operating platforms and 15 hectares are of logistics areas in the case of the Pier 4; construction of 14 berths in total, out of which 11 depth berths of 16.50m and 3 depth berths of 19.00m; ensuring the road and the rail access; providing technical services and utility networks. 76

77 Technical documentation there was a feasibility study carried out in 2006 for Pier 3 and Pier 4 in order to finalize the infrastructure work and the mooring construction for the development of the specialized terminals; the pre-feasibility study was completed in 2014 regarding the finalization of the infrastructure works and the mooring constructions related to Pier 3 and Pier 4. Technical and economic data the estimated value of this investment is around 525 million euro, out of which 215 million euro for Pier 3 and 310 million euro for Pier 4; the period for investment completion is estimated for approximately 36 months for Pier 3 and 48 months for Pier 4; the manner and the duration of the investment recovery - the operation will be done by the private partner for a period of approximately 20 years and the investment will be recovered from the fees set by this specific investment; the estimated annual revenue from the use of the constructed infrastructure will be 14.4 million euro for Pier 3 and 16.8 million for Pier 4; 77

78 financing possibilities - a large Infrastructure Operational Program 2014 to 2020, - Public-Private Partnership, - Build Own Operate-Transfer (BOOT) or Design Build Operation (DBO). 78

79 THE DEVELOPMENT OF THE PORT ISLAND LOCATED IN CONSTANTZA HARBOUR - "A Terminal for Loading and Unloading Petroleum Products" 79

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81 13. THE DEVELOPMENT OF THE PORT ISLAND LOCATED IN CONSTANTZA HARBOUR - "A Terminal for Loading and Unloading Petroleum Products" The necessity and opportunity of the investment in order to achieve this investment one may need to look at the first tangible step. This is the introduction into the economic circuit of Constanta Port of the artificial island; in order to exploit the huge potential of this land one may look at its location: the centre of the Free Zone of the Port; the Constanta Harbour Zonal Urban Plan (which is in black and white and approved), indicates the necessity to build the island as a result of the conclusion studies based on the constant traffic forecast by These are resulted from an increased volume of goods which will be transported through Port of Constanta; in order to ensure a harmonized approach to this investment, by looking at the development and promotion of Constanta Port, in agreement with the strategic objectives set at national and European level regarding the modernization of the transport infrastructure; it is considered that such an industrial platform would facilitate the major increase of the traffic in the port and the exchange of energy products between Romania and the rest of the world; 81

82 the Addition of the island in the port's economic circuit will allow the use of a space located in the free zone of Constanta Port accessible to heavy-duty vessels, and this possibility is currently not practicable in the free zone of the bulk liquid port. Economic and Social Effects increasing the freight transport and the volume of trade; increasing our company s revenue from operating the newly created infrastructure; the possibility of operating large capacity vessels due to the large water depth in the mooring area; creating new jobs; reducing the negative effects on the environment by increasing the share of maritime transport at the expense of other modes of transport. Expected Goals storage and processing area; Marine Terminal; connection area between island and shore. 82

83 The Following Works Should Be Achieved land leveling; roads and passageways /routes; railway ramps and junctions; utility networks; concrete constructions; the Construction of 19 tanks with storage capacity between 10,000 m3 and 30,000 m3; the Purchase of a floating ferry passenger also known as a car ferry ; a Fire-safety and fire-fighting central station. Technical documentation the conceptual note to be endorsed in the Technical and Economic Council of CN APM SA; the Feasibility Study is ongoing. Technical - Economic Data the estimated value of the investment is 220 million; the execution time is estimated at approximately 48 months (with the possibility of extending for another 24 months); the Way and Recovery Duration of this Investment. 83

84 - the process will be done by a private partner. The duration of the tenancy contract is 10 years, with the possibility of extension; - the investment is deducted from the fees set by it. 84

85 EXPANDING METRO NETWORK 85

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87 14. EXPANDING METRO NETWORK The necessity and opportunity of the investment the development of the new subway lines to link the exits related to the Bucharest inner ring and the motorways; development of the lines connected with the new restructured or new created industrial and residential areas. Economic and social effects: increasing the mobility of the population; increasing passenger safety and comfort degree for the population from surrounding areas; multiplying the degree of transfer and decongestion of the traffic; reducing road maintenance costs by undertaking a significant volume of surface transport; urban development of the adjacent areas; reducing the number of traffic accidents; Bucharest metropolitan area expansion; creation of new jobs; reduction of GHG emissions pollution, given to descongestion of the traffic. 87

88 Expected objectives extension of the metro line no. 4 with the North Railway Station - Progresul Station of 10.6 km long, consisting of 14 stations and a depot, on which 10 trains will circulate; construction of the metro line no. 7 on the Bragadiru - Alexandria - Colentina - Voluntari route of 26 km long, with 27 stations and two depots on which 30 trains will circulate; construction of the metro line no. 8 on the Crângaşi - Dristor - South Semi-inel route of 19 km long, on which 18 stations will be located and 20 trains will circulate. Technical documentation technical documentation for lines no. 4 and no. 7 is in the stage of designing the feasibility study and obtaining the urban plan; the purchase of trains is in the stage of consultancy procedure for the fulfillment of the specifications. Estimated economic and financial data: the total value of the investment is estimated at about 5.35 billion euro, out of which: billion euro for the segment North Railway Station Progresul Station within the line no. 4, 88

89 billion euro for line no.7, Bragadiru - Alexandria - Colentina - Voluntari, billion euro for line no.8, Crângaşi Dristor Semiinelul de Sud, million euro to purchase 50 trains. period of investment execution is estimated to 5 years; proceeding and return of investment - company s income will be generated from trips subsidies paid by Ministry of Transport and the period of investment return will be by approximately 25 years. 89

90 BUCHAREST AND METROPOLITAN AREA METRO NETWORK MAP 90

91 PROGRAMS FOR THE DEVELOPMENT OF ENERGY INFRASTRUCTURE 91

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93 The objective of the Romanian energy sector to ensure the security of electricity and heat supply to all consumers at an appropriate level of quality must be achieved with the lowest costs for consumers, in compliance with the environmental requirements and in accordance with the objectives of the "The regulatory framework for environment and energy policies for , developed by the European Commission and the European Energy Security Strategy", so as to maintain security of energy supply, industry competitiveness and job protection. In this context, in order to meet medium and long-term electricity demand at affordable prices for consumers, in conditions of quality, safety supply and respect for the principles of sustainable development, Romania needs to put in place new, competitive energy capacities with the use of clean technologies to cover the capacity deficit that emerged after 2015, with clear downward trends after The importance of developing nuclear energy to ensure Romania's energy security is also highlighted by the results of the modeling study used in the elaboration of the "Energy Strategy of Romania , with the perspective of 2050", which positively positions nuclear energy both in terms of contribution to ensure energy security (stable long-term electricity production, capitalization of internal material / energy resources, competitive price for consumers), and to achieve the EU's greenhouse gas emission reduction targets. 93

94 Also, an important concern is to attract the capital of private investors, specialized in the field and interested in investing in the Romanian energy sector. In this sense, "Green / Brown Field" type projects are already underway, through the establishment of IEP (Independent Energy Producer) companies, having in kind contributions of companies and national companies and cash contribution of potential investors. 94

95 CERNAVODĂ NUCLEAR POWER PLANT, UNITS 3 AND 4 95

96 96

97 15. CERNAVODĂ NUCLEAR POWER PLANT, UNITS 3 AND 4 The necessity and opportunity of the investment the security of supply and diversification of the sources for a balanced energy mix, in order to ensure an affordable energy price for consumers, taking into account the environmental and energy security objectives and targets; the project of the Units 3 and 4 from Cernavoda NPP is included in The Government Program ; the objective of the project is to put into operation two CANDU 6 type nuclear units, each with an installed power capacity of 720 MW, in order to produce about 11 TWh per year. Economic and social effects a strong social component, by revitalizing the domestic industry, contributing substantially to domestic economic growth (GDP, national and local taxes); maintaining and creating new jobs in Romania, through the possibilities to involve the local industry in The Project; infrastructure development, by delivery of materials, equipment, and services; identified as the best solution for covering the capacity gap after 2020, both from a technical and economic point of view and from the implementation deadline, as well as from, the 97

98 perspective of using the domestic resources and the existing national infrastructure, developed on the CANDU type of technology; the recovery of some existing assets with a considerable value in the public patrimony - heavy water and uranium octoxide - and in the Nuclearelectrica National Company S.A. ("SNN") patrimony, respectively - land, buildings, equipments, etc. and in S.C. EnergoNuclear S.A. ("EN") patrimony - intangible assets. Expected objectives ensuring Romania's energy security, under the circumstances of complying with European energy and environmental policies; low carbon investment, in the context of very ambitious decarbonization targets, at the European level by reducing the greenhouse gas emissions with 40%, by Technical documentation the technical documentation necessary for the project implementation will be subject to be updated before the time of the launching of the investment itself. 98

99 Estimated economic and financial data: the total value of the investment is estimated at approximately 6.9 billion euro; the term of completion of the investment- the expected maximum duration of the project achievement, considering that the necessary permissions and permits are obtained according to the plan, from the date of conclusion of the IPC Contract (Engineering, Design, and Construction) until the commencement of commercial operation of the second unit of the project will not exceed 75 months (the interval between 3 and 4 Units is 9 months); proceeding and return of investment public partner along with private partner will commonly agree, based on substantiation study the duration of investment return and if or not will be necessary to sign a CFD (contract for difference) contract type. 99

100 100

101 COMBINED CYCLE GAS TURBINE POWER PLANT - IERNUT 101

102 102

103 16. COMBINED CYCLE GAS TURBINE POWER PLANT - IERNUT The necessity and opportunity of the investment the achievement of the investment contributes to the achievement of the national strategic objectives on energy security, sustainable development and increased competitiveness; the project to build a new gas power plant at Iernuţ is part of the Governance Program ; the use of gaseous fuels with effects in diminishing environmental pollution; project sustainability - the cost-benefit analysis has been carried out showing the solidity of the investment project, its ability to self-sustain from the sources it generates, the benefits of the project exceeding its costs. Economic and social effects high efficiency in the production of electricity; reduction of CO2 emissions; reducing the costs of producing electricity by adopting high performance technologies with low specific consumption. 103

104 Expected Goals the new plant is located in the center of the country, 35 km away from Târgu Mureş in the vicinity of Iernut Thermoelectric Power Plant (TPP); installed capacity of 430 MW; the works related to the achievement of the new power plant at Iernuţ will be in line with the provisions and regulations of the environmental legislation in force (protection of water, air, soil and subsoil quality, waste management, etc.). Technical documentation much of the technical documentation, including the feasibility study, has been developed and the execution/performance of the investment has begun; also, the environmental investment agreement was issued. Technical and economic data the total value of the investment is estimated at 1,539.5 million lei (including VAT) of which: - own sources of SNGN Romgaz; - non-reimbursable financing from the PNI Account made up of revenues determined according to the provisions of GD 1096/2013, as subsequently 104

105 amended and supplemented, respectively the equivalent of greenhouse gas emission allocated free of charge for the period ; the entry into service date is estimated for June

106 106

107 PUMPED-STORAGE HYDROELECTRIC POWER PLANT TARNIŢA-LĂPUŞTEŞTI 107

108 108

109 17. PUMPED-STORAGE HYDROELECTRIC POWER PLANT TARNIŢA-LĂPUŞTEŞTI The necessity and opportunity of the investment the realization of the Pumped-Storage Hydoelectric Power Plant at Tarniţa-Lăpuşteşti was foreseen in the Energy Strategy of Romania for the period , approved by GD no. 1069/2007; the CHEAP Tarniţa-Lăpuşteşti project was designed as this hydroelectric power plant, that will be provided with four turbine-pump reversible groups with a installed capacity of 1,000 MW (4x250 MW), to be a strategic energy service provider/system service provider both for Romania and at regional level; this investment is also included in the Governance Program Economic and social effects by placing in a particularly advantageous geographic location for such a power plant, by the complexity of the National Energy System structure based on a diversified energy mix, in which the intermittent energy sources have a significant share in the context in which Romania would become a regional energy center, CHEAP Tarniţa-Lăpuşteşti has all the prerequisites to 109

110 become an important provider of system services, both in Romania and at regional level; by achieving this hidro capacity with pumped-storage, both the increased need for energy storage and the transfer of excess from the empty area to the peak of the load curve can be covered, as well as balancing the uncontrollable renewable production capacities by ensuring the optimal functioning of the big groups in the system. Expected Goals the main objective of the project is to increase the operational safety of the NPS, the power plant being able to ensure the optimal and safe operation of the NPS in the conditions of the considerable increase of the production capacities from renewable sources, being an electric energy accumulator ensuring its transfer to the peak of the load curve, providing technological system services for Romania and its neighboring countries. Technical documentation it is necessary to review / update the elaborated feasibility study. 110

111 Technical and economic data the estimated value of the project is about one billion euro, the financing being provided by: - own sources million euros, - attracted sources million euro; the deadline for realization of the investment - the effective realization of the project can last between 7 1/2 and 9 1/2 years, depending on the technical solution that will be chosen. 111

112 112

113 NEW ENERGETIC GROUP OF 600 MW TO ENERGY COMPLEX OLTENIA - SE ROVINARI 113

114 114

115 18. NEW ENERGETIC GROUP OF 600 MW TO ENERGY COMPLEX OLTENIA - SE ROVINARI The necessity and opportunity of the investment the project New energetic group of 600 mw to energy complex Oltenia - SE Rovinari is included in the sectoral strategy, the energy strategy being in the process of updating; building new capacities for generating electricity and electric and thermal energy in cogeneration, or rehabilitating the existing ones, in order to cover the Romanian energy demand and to create a competitive environment in the sector of electric and thermal energy production is also provided in The Government Program Economic and social effects: social effects: - ensuring the amount of lignite necessary for the operation of the new power plant, which will lead to securing approximately 3,000 jobs and even to the possibility of creating approximately 1,800 new jobs; macroeconomic effects: - incomes from taxes and duties, - providing from Romania some parts of the equipment and materials needed in the implementation process and then in the operation of the new 600 MW power plant, 115

116 - ensuring the workforce from Romania during the implementation of the project, about 4,000 people out of which 3,700 directly in the production line, on the construction site and 300 involved in services - meals, accommodation, transport, etc. Expected objectives energy investment of almost one billion euro in the Romanian thermal energy sector; ensuring the stability and security of the Romanian energy system; improving technical performance (energy efficiency, consumptions) and safety in operation, by creating competitive structures in the context of integration of the national energy system into the regional and European one; covering the Romanian energy demand and creating a competitive environment in the electric and thermal energy production sector; the fulfillment of the environmental obligations at the level of the European directives, so that the fossil-based raw materials functioning generation groups to meet the environmental conditions within the deadlines stipulated in the timetable negotiated with the European Commission. 116

117 Technical documentation/technical and economic data According to the Feasibility Study, the main parameters of The Project are the following: the total value of the Project: the total value of The Project is million euro, out of which: - direct costs: million euro, - indirect costs: 84 million euro, - IDC: 71.3 million euro, - building period 1x600MW 36 months, - the lifetime of the 1x600MW plant 30 years; the main technical characteristics of the new energy group: - a high-performance generation unit, using as a base fuel the lignite provided by the Roşia, Pinoasa and Tismana quarries, - best available techniques to reduce dust emissions, nitrogen oxides, and sulfur oxides in order to comply with current regulations and to meet future requirements for limiting pollutant emissions, - minimization of water consumption, respectively minimization of wasted water quantity; 117

118 the main indicators of the plant, according to the project: No. Specification U.M Value 1 Technical efficiency of power generation 1x600MW % Coal consumption g/kwh Auxiliary power ratio (including desulphurisation) % Water consumption / GW mc/s.gw 0.6 proceeding and return of investment public partner along with private partner will commonly agree, based on substantiation study the duration of investment return and if or not will be necessary to sign a CFD (contract for difference) contract type. 118

119 NEW ENERGY GROUP, IN A COMBINED CYCLE, IN CONDENSATION, WITH A 400 MW CAPACITY AND FUNCTIONING BY NATURAL GAS, TO MINTIA POWER PLANT WITHIN COMPLEXUL ENERGETIC HUNEDOARA 119

120 19. NEW ENERGY GROUP, IN A COMBINED CYCLE, IN CONDENSATION, WITH A 400 MW CAPACITY AND FUNCTIONING BY NATURAL GAS, TO MINTIA POWER PLANT WITHIN COMPLEXUL ENERGETIC HUNEDOARA Necessity and opportunity of investment building a new energy group, modern, functioning on natural gas, within the Mintia Power Plant, will lead to the replacement of obsolete capacities of production, with coal as raw material, with other capacities which are more performant and with greater power, on natural gas and this will contribute in an essential way to the reduction of CO 2 emissions and to the modernisation of the power generation sector; considering the structure of the National Energy System, the distribution of electricity production capacities on the territory of Romania, the commissioning of a new generation group within the Mintia Power Plant is essential; the investment is found in the Governance Program. Economic and social effects the existing facilities, namely natural gas supply, the provision of cooling water (hydro-circuit), the use of demineralized water 120

121 supply facilities, as well as those that allow the evacuation of power, other installations / equipment existing within the station; the investment will be in line with the latest requirements of the environmental regulations - Decision no. 1442/2017 of the European Commission on Best Available Techniques (BAT) conclusions for large combustion plants, developed under Directive 2010/75 / EU on industrial emissions; the new energy group will deliver electric and heat energy and will be able to provide system technological services; it is estimated that up to 100 new jobs will be created. Expected objectives the realization of the investment will involve the demolition of existing buildings on the site of the Mintia Power Plant belonging to Complexul Energetic Hunedoara, the relocation of some equipment, installations; new equipment will be installed and works will be carried out to modernize the connections to the existing utilities and to rehabilitate or upgrade the auxiliary facilities. Technical documentation the feasibility study has been carried out by Societatea Complexul Energetic Hunedoara SA in 2011 and will be updated this year. 121

122 Economic and financial data the total value of the investment, according to the study, is EUR 310 million (including VAT); the deadline for realization of the investment is approximately 48 months. 122

123 THE HYDRO-ENERGETIC DEVELOPMENT OF THE OLT RIVER ON THE IZBICENI - DANUBE SECTOR. HYDRO- ELECTRIC POWERPLANT ISLAZ 123

124 124

125 20. THE HYDROPOWER DEVELOPMENT OF OLT RIVER BETWEEN IZBICENI AND DANUBE. ISLAZ HYDROELCTRIC POWER PLANT The necessity and opportunity of the investment the accomplishment of this hydropower development is meant to insure the reversibility of the Slatina - Danube waterfall (achieving a turbine and pump functioning mode) and the navigation along this sector by connecting it to the Danube river; the Islaz hydropower development has been designed to close downstream the hydropower plants waterfall belonging to the Inferior Olt river hydropower development on the Slatina Danube sector; CHE Islaz is development with a complex role, providing, apart from the electrical power production, a series of other power or irrigation uses such as: - regulating services in the national power system, insuring the energy consumption when there is no consumption, in correlation with the Cernavoda nuclearelectric power plant, - irrigations, projects against flooding, modernising the roads; 125

126 Economic and social effects the functions of the Olt river hydropower development between Izbiceni and Danube - CHE Islaz are: producing electric power, protecting against flooding approximately ha, providing system services (fast tertiary reserve, dispatchable load), capitalising on the water volume pumped from the Danube as electric power with turbines, providing certain water volumes for the irrigations in the area, the possibility to have water transport on the Olt river, from the Danube to Slatina (navigation locks in all the hydraulic nodes along the dam and hydroelectric power plant), developing a body of water in the area, which will lead to the improvement of the arid climate of the area, the possibility to develop fishing and leisure in the area of the development, sanitation of the Olt river meanders, 126

127 as well as the development of aquatic vegetation and microflora, improving and modernising the transport communications along Olt river, creating new jobs for the period of the investment, as well as permanent ones for exploration and maintenance in the area; by accomplishing CHE Islaz the connection with the Danube is developed, insuring pumping from the Danube towards upstream, as the power plant has the same type of hydro aggregate reversible pump/turbine, the 5 hydroelectric power plants along the Ipoteşti Izbiceni sector, being at present retrofitted. Expected objectives the site of the Islaz Hydropower development (AHE) is approximately 3.5 km upstream the joining of the Olt river with the Danube, on the administrative territory of Olt and Teleorman counties; the development draft includes: the reservoir, with a volume of million cubic meters, of which million cubic metres are usable, the concrete dam with five openings, 127

128 left shore and right shore piers, the hydropower plant, the airlock, connecting channel to the Danube, the power substation, the technical and economic parameters of the power plant are: CHE Hbr Qi Pi Em Number NNR (m) (mc/s) (MW) (GWh/year) hydroaggregate (mdm) CHE Islaz Technical documentation accomplished stages: SF, PT, town planning certification, PATZ-IJ Environment evaluation of PATZ-IJ. Technical and economic data the estimated value of the investment is EUR 316 million without VAT and without the airlock, which is to be accomplished at a later stage. 128

129 Proposed term of completion 5 years. 129

130 130

131 THE HYDROTECHNICAL COMPLEX TURNU MĂGURELE - NICOPOLE ON THE DANUBE RIVER 131

132 132

133 21. THE HYDROTECHNICAL COMPLEX TURNU MĂGURELE - NICOPOLE ON THE DANUBE RIVER The necessity and opportunity of the investment the objective of the investment has as main purpose the hydrotechnical development of the Danube river on downstream sector of the Iron Gates I and II and the production of electricity, estimated at 2216GWh / year; by achieving this objective, a long-term economic development is generated in the Turnu Magurele area; the project is addressed both to authorities managing transport, electricity generation, water management and local communities bordering the Danube river; positive effects for the shipping on the Danube river by reducing the cost of dredging, shortening the length of the waterway and improving exploitationof the harbours. removing the inconveniences given by the small waters on the Danube river; on both banks there are works provided for the defense of riparian lands, drainage system works and other hydromelioration works; flood protection; 133

134 land restorationfor agricultural exploitations; tourism development in the area and fishing arrangements. Economic and social effects increase to 100% of the water supply works for the riversidesettlements, not depending on the water level of the Danube river; the development of this complex arrangement will also have as result some other utilities: gravity irrigation, shipping, protection of lands and localities, drainages and land restorations, roads and bridges; the stabilization of the groundwater in the Danube river meadow ( ha protected by the dams of the hydrotechnical complex Turnu Magurele-Nicopole on the Romanian bank), as a result of the continuous and controlled operation of the drainage system will lead together with the gravitational irrigations to a significant increase in the agricultural production; the installed power of the energy aggregates will be 420 MW, the annual average energy production being about 2200 GWh. creating an important number of jobs (is estimated at about 7-8,000 for the work and another 20-30,000 in the companies 134

135 that supply materials, technological equipment, equipment and services for this work); creating of a new road and railway link between the two countries, over the hydro-technical node work by building a four-lanes road and a double railway that will be connected to the national related networks. Expected objectives the hydropower node of the Turnu Magurele - Nicopole Complex comprises the following main objectives: - two identical hydropower plants in terms of equipment and power, one belonging to Romania, located on the left bank, the other one belonging to Bulgaria, located on the right bank, - two connexion stations linked by an electric air line which crosses the Danube river, - two lifts for shipping along with the related shipping constructions, - concrete overflow dams for excavation of large waters from the Danube river, - a speed lock, 135

136 CHE - bridges, including road connections and railways - the crossing of the hydrotechnical node was planned to be constructed by an overlaid bridge with a double track and a technological road at the first level and a twolanesmotorway with the sidewalks on the second level, - an accumulation lake with a length of approx. 282km, a normal retention rate of mdm and a volumetric volume of 4200 million cubic meters, - the technical and economic parameters of the Romanian part of the plant are: Hbr (m) Qi (mc/s) Pi (MW) Em (GWh/an) Number of hydroaggregates NNR (mdm) 9, Technical documentation the technical and economic study with constructive solutions was elaborated by S.C. ISPH S.A. Bucharest in 1978; the technical project onthe hydrotechnical complex was elaborated by S.C. ISPH S.A. Bucharest in 1980; the internal prefeasibility study was developed by S.C. ISPH S.A. Bucharest in 1993; 136

137 the study of opportunity regarding the hydrotechnical arrangement was elaborated by S.C. ISPH S.A. Bucharest in Technical and economic data thetotal estimated value of the investment from the Romanian part 2,6 billion euro, out of which: - the hydropower node 837 million euro, - the accumulation lake 1.7 billion euro; energy investment from the Romanian side 1.5 billion euro, out of which: - the hydropower node 832 million euro, - the accumulation lake 698 million euros; the deadline proposed for completion - 8 years. 137

138 138

139 PROGRAMS FOR THE DEVELOPMENT OF AGRICULTURE 139

140 140

141 Agriculture is one of the few sectors of the economy that puts Romania in the frontline at the European level due to record production of cereals and industrial crops. For a durable development of agriculture, which is an absolute priority of the government program, the real potential of this sector must be fully reached, so that the agriculture sector to become a real economic growth engine and a source of job creation for the population living in the rural area. Thus, besides the development of agriculture, we will ensure the increase of the incomes of the people that work in agriculture, the increase of the agricultural and food goods in the domestic market and the decrease of agricultural imports. 141

142 142

143 MAGISTRAL CHANNEL SIRET BĂRĂGAN 143

144 144

145 22. MAGISTRAL CANAL SIRET BĂRĂGAN The necessity and opportunity of the investment long drought periods, ranging from 10 to 120 days/year; concurrent high-frequency winds, usually with periods of drought; weak agricultural outputs. Economic and social effects: providing water sources for the execution of irrigation systems (Rugineşti Panciu, Costeşti Râmnicu Sărat, Râmnicu SăratSud, Buzău Sărata, Gologanu Năneşti, Bogza BaltaAlbă, Pogoanele Fundata), which could irrigate an area of 475 thousand ha, out of which approx. 80% without pumping systems; reduction of water losses for irrigation by over 60%; annual savings of approx. 35 GWh; the possibility of executing irrigation systems that can supply water from the channel; reducing imports and increasing export availability for agricultural and agro-industrial products; development of agricultural holdings and water users associations in irrigation; development of livestock and local food industry; 145

146 avoid soil degradation and stimulate vegetation growth in the area; supply of drinking and industrial water for Focşani municipality and riverside localities; development of producing irrigation systems units and their components; waterways transport between Călimăneşti (Vrancea County) and accumulation Dridu (Ialomiţa County) with ports in Maraşeşti, Focşani, Râmnicu-Sărat, Buzău, and Dridu; providing jobs both during the execution works and for permanent work. Expected objectives Siret-Bărăgan canal, Stage II, 140 km long, with all annexes, for a flow of mc/s, water supplied from Călimăneşti accumulation, on the territory of the counties of Vrancea, Buzău, Brăila, and Ialomiţa; the construction of the first stage started in 1987, by the construction of a 19 km section, from which the work was completed for 5.7 km, the rest being in various stages of execution (the basic works being executed in a proportion of 35 %, and road and rail bridges in a proportion of 95%). 146

147 Technical documentation the feasibility studies, funded by interested institutions, being reevaluated, will clarify the opportunity to maintain the initial technical solution, an 8 m wide open canal, compared to the modern pipeline transport solution. Estimated economic and financial data: the value of the investment is about 5,5 billion euro; investment durationfor investment completion is for approximately 5 years; proceeding and return of investmentit will be commonly agreed by public and private partners and it is represented by possible introduction of fees for canal using, taxes for land irrigation, as well as state budget subsidies. 147

148 SIRET BARAGAN CANAL 148

149 THE ROMANIA S HOUSE OF TRADE 149

150 150

151 23. THE ROMANIA S HOUSE OF TRADE The necessity and opportunity of the investment development of a sustainable and competitive agri-food sector will be achieved by establishing an entity that will come to meet the needs of the agricultural producers, in order to built an interface between them and the market; promotion of a market for agri-food products with the main aim of contracting, purchasing and processing the primary agricultural products from the producers, and store these until delivery; establishment of a national system that can be further expanded,in order to collectthe agricultural products from the small producers which will be able to use their products both on the domestic and on the external market; organization of the road, river and railway transport of the processed products, from the large production areas to the deficient ones, from the perspective of the rhythmical supply of the beneficiaries of the state fund products; organizing economic missions to promote Romanian products, both domestic and abroad. 151

152 Economic and social effects the production will be purchased at the same price duringthe whole year, and payment will be made within at most one week; creating new jobs both within The Commerce House and the logistic sector related to the field. Expected objectives construction of logistic warehouses all over the country in order to ensure the storage and trade of all agri-food products; development a logisticssupportto meet the needs for all the producers, including small producers who do not have the opportunity to transport and sell products. Technical documentation the elaboration of complete technical documentation is required. 152

153 Technical and economic data the total value of the investment value, 124 millioneuro public contribution and 119 million euro private contribution; the duration of execution is estimated at a period of 5 years; proceeding and duration of depreciation rate of the investment - the investment will be recovered in a maximum period of 25 years, agreed between both the public and the private partner. 153

154 154

155 PROGRAMS FOR THE DEVELOPMENT OF INFRASTRUCTURE IN TOURISM 155

156 156

157 The tourism has a significant financial contribution to the Romanian economy and creates an important number of jobs. Actually, the tourism became the strongest branch of the economy at world level. Elements of the collective tourism date back in the XV century, when spa tourism emerged in Băile Felix, Lipova etc. Currently, the Romanian tourism focuses more on spectacular landscapes, history and national traditions. Crossed by the Danube River, Romania benefits from an unique landscape diversity, including Carpathian Mountains, Black Sea Shore and the Danube Delta, the biggest delta in Europe, very well conserved. The potential of these resources is not sufficiently exploited. From these reasons, it is necessary to promote an integrated strategy to develop the tourism and to design viable investment programmers based on Romanian capital and European funds. 157

158 158

159 SUSTAINABLE DEVELOPMENT IN FĂGĂRAŞ MASSIF - A NEW TOURISTIC COMPLEX FOR SKI 159

160 160

161 24. SUSTAINABLE DEVELOPMENT IN FĂGĂRAŞ MASSIF - A NEW TOURISTIC COMPLEX FOR SKI The necessity and opportunity of the investment maximizing the tourist potential of Cârţişoara and Arefucommunes areas; the diversification of touristic offer, especially in the winter season; location of the area in the nearby of the future Sibiu - Piteşti and Braşov - Sibiu motorways; the existence of the necessary infrastructure to practice winter sports on both sides of the massif; the existence of many tourist attractions such as Sibiu, Curtea de Argeş, Poenari Fortress, Transfagaraşan, etc. in the surrounding areas. Economic and social effects economic development of the area, and increase of the share of tourism in GDP creation; development of the tourism for the benefit of local communities; increase of the accommodation capacities, especially of the high qualified ones; diversify the opportunities for leisure at a higher level; 161

162 the location of the area among the top three mountain tourist destinations of Romania; creating new jobs. Expected objectives the execution of 150 km ski slopes, with related accessory facilities (gondola lift, chairlift, cable installation, etc.); development of a campground at 700 m high, on the base of ski and sled slopes, with a camping capacity of 50,000 places; ensuring public transport for tourists, in order to not use their own means of transport in the ski area. Technical-economic data the estimated value of the investment is around Eur 1 billion; length of time for execution is estimated at 7 years; investments' way of recovery and length of time - concession of the incomes from taxes on use of the ski accessory facilities and from tourism services, to the private partner, for 20 years. 162

163 163

164 164

165 RESORT OF NATIONAL INTEREST- BORŞA 165

166 166

167 25. RESORT OF NATIONAL INTEREST- BORŞA Necessity and opportunity of the investment contribute to the development of tourism and, implicitly, to the services offered to the tourists from the area; development of the locality from a socio-economic point of view; for the local administration, the implementation of the investment will generate additional contributions attracted to the local budget by developing the tourism activity; increasing the attractiveness of the tourist resort of Borşa, with a favorable impact on the improvement of the tourist traffic indicators: number of arrivals, number of overnight stays, occupancy level of the accommodation capacity, as well as the average duration of the stay. Economic and social effects diversifying the local economy by developing tourism, as a sustainable economic activity, which generates jobs, profit and extra value; development of tourism specific infrastructure, by exploiting the local natural tourism potential; increasing the number of tourists attracted in the locality; 167

168 introducing Borsa resort into the international competition circuit and the opportunity to promote thisarea and Romania among international sport activities. Expected objectives medical tourism: rehabilitation and modernization of the Borşa hospital recovery base and restoration of the recovery center,based on the mofetta gas; spa center - indoor swimming pool, children pool, outdoor swimming pool, beach area, two dry saunas, a wet sauna, beauty and relaxation center, coffee shop and restaurant, gym and fitness center; development of the ski area: cable cabin to the peak of Pietrosul Rodnei (2303m) on a lenght of 150 km; the biathlon arena and cross-country skiing; ski jumping complex: 120 m, 70 m, 30 m; development of mountain tourism: rescue station, mountain refuge station, belvedere terraces and astronomical observatory at the altitude of 1600 m; sport arena: building of new multipurpose sports grounds, field tennis courts, football field, treadmills, multipurpose sports arena, adventure park, climbing and rope climbing, paragliding, mountain bike, off road roads, tourist mine, historic train. 168

169 Technical and economic data the estimated value of the investment is about 135 million euros; the estimated period of the investment executionis 2 years; proceeding and duration of the recovery of the investment - the disposal of the revenues from the fees resulted from the use of ski facilities and of tourist services for a period of 49 years or 99 years to the private partner. 169

170 170

171 BUILDING LUXURY RESORTS SYSTEM T O THE BLACK SEA 171

172 172

173 26. BUILDING LUXURY RESORTS SYSTEM T O THE BLACK SEA Necessity and opportunity of the investment building new accommodation facilities to the Black Sea at the highest western standards in order to overcome the regional competitors - Bulgaria, Greece and Turkey; capitalization of approximately 2.5 km of beach front to the Black Sea which is currently not exploited; attracting domestic and foreign tourists who choose to spend their holidays in Bulgaria, Turkey and Greece; economic development of Costinesti-Schitu-23 August; attracting investment and large international tour operators in the coastal area; lack of accommodation in the resort system that will provide all the entertainment and relaxation needs: hotels, restaurants, swimming pools, clubs, amusement parks, beaches, spa services. Economic and social effects execution of the connection to the major international touringnetworks operators of hotels in the Romanian seaside area; 173

174 increase the number of domestic and foreign tourists and providing luxury accommodation and entertainment; creating new jobs and improving infrastructure in the area. Foreseen objectives developing about 2 km beach at international standard; building of 4 luxury resorts operated by international tour operators on a total area of over 800 ha of land in the Schitu area - 23 August; building of 8 hotels with 5-stars facilities with more than 4000 rooms; building 16,000 m2 of swimming pools; building 2 fun parks including aquatic activities; building 16 tennis courts; building a golf court on an area of 60 ha; building a network of county roads that connect the resorts with the DN39 national road; building 4 wellness and spa centers; building 4 water activities centers; building 200 bungalows; developing 100 hectares of gardens and forests; 174

175 Romania on TUI map, Thomas Cook - Neckermann, Dertour or ITS. These tour operators can invest directly but can also provide credit for building hotels; can guarantee a large flow of tourists and can advise on introducing an attractive all inclusive services. Technical documentation it is necessary to elaborate an feasibility study; elaborating a technical project. Technic and economic Data it will be acquired and installed the technological machineries related to the SPA complexes, equipment and endowments; the estimated value of the investment is about 200 million euros; execution time is estimated at 5 years; the manner and duration of the investment recovery - the investment is recovered within 15 years, the operation can be performed by an international tour operator and the recovery of the investment will be made from the rooms price. 175

176 176

177 PROGRAM FOR THE DEVELOPMENT OF INDUSTRY 177

178 178

179 The strategic goal of Romania is to implement a model of industrial policy that generates an intelligent economic growth by moving from a model based on industries that perform a basic manufacturing of raw materials by using low skilled labor force towards a model that is based on innovative, competitive and environmentally friendly industries. In this context, the industrialization of the economy is deemed to be done as a central element. The industrialization must be done by specializing in high technological intensity, in competitiveness clusters, which will diminish the dependency on imports and will increase the exports of industrial goods. 179

180 180

181 THE ELECTRIC TRANSPORT MEANS FACTORY 181

182 182

183 27. THE ELECTRIC TRANSPORT MEANS FACTORY The necessity and opportunity of the investment European policy and legislation develops higher environmental standards for cities, which particularly affects the road transport; clean and energy-efficient vehicles and transport electrification are the priorities for the European climate strategy, and implicitly for Romania; the European Commission has set ambitious targets for the gradual remove of vehicles using conventional fuels from urban areas, both to reduce dependence on oil imports, and to reduce greenhouse gas emissions, and noise pollution; the 2011 White Paper of Transports proposes the reduction by half of the vehicles used in urban transport using conventional fuels, by 2030, and totally by 2050; the existence in Romania of a large industrial network of automotive components, plastics and rubber, metallurgy, with domestic local capital, German, Chinese, Japanese etc; the experience of Romanian workers in the construction of motor vehicles. 183

184 Economic and social effects reducing greenhouse gas emissions, of which almost 40% come from the urban road transport network, where the state could contribute with maximum 50% to the project achievement; developing new methods of thinking, implicitly new technologies for the production of alternative propulsion vehicles, which are still facing technical constraints (limited range of vehicles, high costs of investments for their construction, which also determines the high cost of motor vehicles, lack of public battery charging infrastructure, sometimes unexpected performance of motor vehicles etc.); improving air quality in urban locations; increasing the national security in energy supply, by eliminating the use of fossil fuels in urban transport; lowering the price of electric vehicles, if they are manufactured on the domestic field; reduction of transport costs, especially due to a cheaper consumption; balancing the trade balance, by reducing imports and increasing exports; the development of horizontal industries and the creation of new jobs; providing the state financial facilities, in order to purchase an electric vehicle. 184

185 Expected objectives the construction of a private electric vehicles factory, in public private partnership, in which the Romanian state will participate with a share of 40 % to the project. Technical documentation the elaboration of complete technical documentation is required. 185

186 186

187 PROGRAMME FOR DEVELOPMENT OF INFRASTRUCTURE IN THE HEALTHCARE SYSTEM 187

188 188

189 The problem of health care for the population is one of the major problems of governments worldwide. For this purpose, national health systems have been set up to provide citizens with health services and to respond to patients' needs and expectations. Therefore, in Romania, the social concept that health policy should be built around the patient rather than the medical system, has been applied for some time, the ultimate goal being that the citizen should not travel long distances for a quality medical act, but the system should be built as close as possible to him. The Romanian health system is based on the principles of universal access to quality health care and therefore suppose the application of the principle of solidarity in financing. As well, trust must be restored to citizens about the health system by a civilized access to the medical services, and also restore the dignity of medical staff. 189

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191 THE CONSTRUCTION OF EIGHT REGIONAL HOSPITALS 191

192 192

193 28. THE CONSTRUCTION OF EIGHT REGIONAL HOSPITALS The necessity and opportunity of the investment improving the health infrastructure; regardless of the level and complexity of the medical act, this must be delivered only abiding by the European guidelines and protocols, so that the patient benefits from a fair treatment, effective in the healing process and in improving the quality of life; organizing these hospitals as centres of excellence and emergency centres at the same time, for the most important medical specialties (oncology, cardiology, neurology, nanosurgery, internal disease, etc.), also as telemedicine centres to which the diagnosis medical centres can connect, as well as ask for a second opinion; equipping these centres with cutting edge equipment. 193

194 Economic and social effects reducing the moving time of the patients towards different single specialty medical units; treating the patients in qualitatively higher conditions; attracting an important number of Romanian doctors working abroad back in the country, as well as other foreign specialists; creating new jobs; each hospital will serve an area of approximately 2 million inhabitants. Expected objectives building eight regional hospitals, even in a public private partnership, in towns such as Cluj, Craiova, Iaşi, etc. with beds, ten specialty clinics and a research centre each; building a neighbourhood for the physicians and the auxiliary personnel in each location; 194

195 accommodation infrastructure for the relatives and persons accompanying the patients, or for the patients receiving day treatment (who do not require hospitalisation); equipping them with cutting edge medical equipment; providing highly qualified personnel. Technical documentation the elaboration of the entire technical documentation is necessary. Technical and economic data the estimated value of the investment 2.4 billion euro; if the public private partnership investments fail, there is the possibility to assign each hospital, for a period of time, to private management; period of time for execution is estimated at 4 years; investments' manner of recovery and length of time - the operation on a period for about 20 years, the revenues are coming from the National Health Insurance House. 195

196 196

197 THE CONSTRUCTION OF A REPUBLICAN HOSPITAL IN BUCHAREST 197

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199 29. THE CONSTRUCTION OF A REPUBLICAN HOSPITAL IN BUCHAREST The necessity and opportunity of the investment improving the health infrastructure; regardless of the level and complexity of the medical act, this must be delivered only abiding by the European guidelines and protocols, so that the patient benefits from a fair treatment, effective in the healing process and in improving the quality of life; organizing these hospitals as centres of excellence and emergency centres at the same time, for all medical specialties, including telemedicine centres to which the diagnosis medical centres can connect, as well as ask for a second opinion; equipping these centres with cutting edge equipment. Social - economic effects reducing the moving time of patients towards different single specialty medical units; treating the patients in qualitatively higher conditions; 199

200 attracting an important number of Romanian doctors working abroad back in the country, as well as other foreign specialists; creating new jobs. Expected objectives construction, on a surface of around 80 ha, of a republican hospital with over beds, 30 specialty clinics and 2-5 research centers; construction of a medical campus which will include facilities (schools, kindergartens, commercial centers, etc) of a district for doctors and auxiliary personnel; accommodation infrastructure for relatives and persons accompanying the patients - hotel/hotels with minimum rooms, or for the patients which receive daily treatment (which are not hospitalized); equipping them with cutting edge medical equipment; providing highly qualified personnel. Technical documentation it is necessary to elaborate the entire technical documentation. 200

201 Technical-economic data the estimated value of the investment is around 1.1 billion euro; period of time for execution is estimated at 5 years; investments' manner of recovery and length of time - the operation on a period for about 20 years, the revenues are coming from the National Health Insurance House. 201

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203 THE CONSTRUCTION AND ENDOWMENT OF FOUR HUMAN TISSUES AND CELLS BANKS 203

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205 30. THE CONSTRUCTION AND ENDOWMENT OF FOUR HUMAN TISSUES AND CELLS BANKS The necessity and opportunity of the investment the inclusion of the investment within the Government Program and the National Health Strategy : - a nation with healthy and productive people through access to preventive, emergency, curative and rehabilitation quality services, under the terms of effective and efficient use of available resources and the promotion of high standards and best practices, - within the framework of the National Health Strategy , the establishment of banks for the human cells and tissues transplantation at national level is one of the directions of the development of the medical field, - providing the access to diagnostic and / or treatment services for special pathologies, such as human organs transplantation and human tissues and cells transplantation, respectively. the existence of certain studies with a clear and realistic aim of the project, consisting in the harmonization of medical units for the therapeutic use of human cells and 205

206 tissues with the requirements and standards of the European Community and which are addressed to the National Transplant Agency and Emergency Hospitals; the existence of the public procurement legislation; proper access to necessary services, optimization of health services and partnership with all actors implied in order to improve population s state of health; the existence of a secure transplantation system, which will lead to significant expenditures cuts for the national health economy, by developing in the country those medical cases that are going to clinics abroad. Economic and social effects strengthening the capacity of the National Transplant Agency to implement and harmonize the activities of the medical units involved in the sampling and therapeutic use of human tissues and cells, in accordance with the Directives, the Norms and Practical Requirements in the European Union; the existence of a single network to ensure the quality standards and norms and health security provided by the European Union in this area. 206

207 Expected objectives construction and endowment of four banks of human tissues and cells in Bucharest, Iaşi, Tg Mureş, Timişoara. Technical documentation feasibility study no / of the investment objective within the non-contract PHARE project 2006 / Support for the Romanian health authorities for the implementation of the EU directives on blood banks - the transfusion units - in hospitals and the therapeutic use of tissues and human cells. Technical and economic data the estimated value of the investment, according to the existing feasibility study, is about 5.0 million euro. 207

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209 DEVELOPMENT OF A NATIONAL LABORATORY FOR IMPROVING THE MONITORING OF SUBSTANCES DISCHARGED INTO WATERS AND QUALITY OF DRINKING WATER 209

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211 31. DEVELOPMENT OF A NATIONAL LABORATORY FOR IMPROVING THE MONITORING OF SUBSTANCES DISCHARGED INTO WATERS AND QUALITY OF DRINKING WATER Necessity and opportunity of investment including the investment in the Governance Program and the National Health Strategy ; protecting the health of the population against environmental risks - strengthening the technical capacity at national and sub-national level to respond appropriately to the needs by modernizing and endowing public health laboratories which monitor the chemical and radiological risk associated with environmental factors, including drinking water; existence of studies comprising: - the clear and realistic goal of the project, namely to improve the monitoring of substances discharged into waters, giving priority to hazardous substances in particular and the quality of drinking water, and reporting according to European requirements, - the external factors that could significantly influence the implementation of the project are: legislation on public procurement, appeals, budgetary factors etc.; 211

212 - "Quality factors" that highlight the benefits and sustainability of the project over the long term. Social and economic effects the development at national level of the laboratory infrastructure that will ensure the increase of the institutional capacity which is necessary for the monitoring of the priority substances and other pollutants in the water resources and will allow the achievement of the level of data production necessary to meet the requirements of the Framework Directive 2000/60/CE transposed into Water Law no. 107/1996, with the subsequent amendments and completions and other European directives in the field of water, transposed into the national legislation by GD no. 188/2002, as subsequently amended and supplemented and GD no. 570/2016 and the obligations assumed by the international monitoring programs and by the international and bilateral conventions to which Romania is a signatory; investments in the water sector, in order to meet the requirements of the European Union's environmental acquis and to meet investment needs identified by the Member States that go beyond these requirements; increasing the level of urban wastewater collection and treatment, as well as ensuring the supply of drinking water to the population. 212

213 Expected objectives the development of a national laboratory to monitor priority substances/priority hazardous substances discharged into waters, in line with the new European water policy requirements, in order to increase the level of wastewater collection and treatment, as well as the degree of providing drinking water to the population. Technical documentation the project is in the phase of elaboration the call for funding. Technical and economic data the estimated value of the investment is about 20 million euro. 213

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215 32. FACILITIES PROVIDED TO THE INVESTORS State Aids The state aid scheme has as objective the regional development, through the investments that create jobs, with the exception of a few sectors (primary production of agricultural products, processing and marketing of agricultural products, facilitation of mines closures, steel industry, coal industry, construction sector, shipbuilding sector, energy sector and synthetic fibers sector). The maximum level of the state aid, as non-reimbursable amount, in relation to the eligible expenditures from which an enterprise could benefit, for the period , may reach the level of: - for Bucharest region - the equivalent in lei of Eur 7.5 million, - for West and Ilfov regions - the equivalent in lei of Eur million, - for North-West, Center, North-East, South-East, South- Muntenia, South-West Oltenia regions - the equivalent in lei of Eur 37.5 million. The state aid related to the eligible expenditures is granted with the fullfilment of the following conditions: - the jobs are created directly by the investment project in question, 215

216 - the jobs are created after the date of receiving the grant agreement, but no later than 3 years from the date of completion of the investment. Facilities provided by the local authorities According to the constitutional provisions, correlated with the provisions of Law no. 215/2001, with subsequent amendments and completions, the local authorities have administrative and financial autonomy, based on the legal limits. Based on this autonomy, they can provide tax incentives to both individuals, and legal entities. For the investors, according to the value of the investment, which is set at the level of the Local Council, the following categories of facilities is granted in most of the cases, in the form of minimis aid: - reduction of the tax on buildings, for investments with a certain percentage and over a certain period of time, - exemption/reduction with a certain share from/ of the tax on the land related to the investment, - technical assistance and direct involvement in obtaining all permits, certificates, etc. which are issued by the local authorities, - exemptions from payment of taxes related to obtaining the certificates / permits associated to the investment project. 216

217 Facilities for industrial parks The form of state aid for regions to support initial investments made in industrial parks for eligible businesses consists of: - exemption from payment of taxes charged for changing the distance/set-aside of the land belonging to the industrial park, - exemption from the tax on land, corresponding to the land belonging to the industrial park, according to the provisions of art. 257, lit l) of the Law no. 571/2003, regarding the Fiscal Code, as subsequently amended and supplemented, - exemption from payment of the tax on buildings, corresponding to the buildings that are part of the infrastructure of the industrial park, according to art. 250, paragraph (1) of the Law no. 571/2003, regarding the Fiscal Code, as subsequently amended and supplemented, - exemptions, except with the consent of the local public administration authorities, to pay any taxes due to the local budgets of the administrative-territorial units for the issuance of any town planning certificates, building permits and/or construction dismantling permits for the lands and buildings within the park infrastructure, which form an integral part of the industrial park, - other facilities that can be granted, according to the law, by the local public administration authorities. 217

218 Facilities for the public private partnership projects The tax incentives granted to the investors participating in the publicprivate partnerships consist of: - state participation in various forms (financial, patrimonial, etc.) and with various percentages depending on the importance and value of the project, - facilities provided by local authorities. 218

219 National Commission for Strategy and Prognosis - Government institution for investments in public-private partnership - Attributions in the field of investments: As a centralized unit of investment, substantiates and assignements strategic investment projects between the public sector and one or more private partners; As a centralized unit for public-private partnership strategic investment projects, develops and/or contracts, according to the law, the documentation to substantiate the decision to carry out a certain project, as well as the assigning documentation; Elaborates and initiates in its own field of competence projects of normative acts regarding strategic investment projects in public-private partnership; Monitors, in its own field of competence, the performance of public investments, with particular attention to publicprivate partnership investment projects. 2-4 Cristian Popişteanu street, Postal code: , sector I, Bucharest, Phone: / ; Fax: / ; prognoza@cnp.ro, prognoza cnp@ahoo.com 219

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221 Romania A Strategic Choice July 2018

222 2017 Romania - Country overview Area: 238,391 km2 Capital: Bucharest Currency: RON RON/ EUR: 4.6 Population: 19.6M GDP Growth 6.9% Best performance in EU FDI stock 73.5B FDI flow 4.6B NATO membership EU membership EU Presidency (1 st Jan 2017) Bucharest Metropolitan Area: 3M S & P Moody s Fitch BBB- Stable Baa3- Stable BBB- Stable Bridge between East and West for 500M consumers market Strategic US-Romanian partnership

223 At a glance 2 nd largest country in CEE and the largest in SEE in terms of size (the 9 th in EU28) and population (the 7 th in EU28) At the crossroads of 3 great markets: the European Union, the CIS (Commonwealth of Independent States) and the Middle East 2 nd in EU for average peak connection speeds and 6th for 4 Mbps broadband adoption in Q1 2017* Source: *Akamai Q State of the internet report

224 Potential for Growth GDP growth (%) (Source: Eurostat) Forecast 2018: 6.1% (Source: National Commission of Strategy and Prognosis)

225 Potential for Growth FDI Flows and Stock (EUR bn) FDI stock FDI flows Source: National Bank of Romania - Foreign Direct Investment in Romania in 2016, for 2017 values: Monthly Bulletin December 2017 (FDI flows) and Interactive database July 2018 (FDI stock)

226 FDI by capital investment FDI by project numbers Romania FDI Into Europe 24% 3% 4% 4% 7% % 8% 18% 8% 9% 8% UK Russia Poland Spain Germany France Netherlands Turkey Ireland Romania Other Romania ranking 10 th, by capital investment and by project numbers $5.8 bn capital investment 3% market share Europe 155 new projects Romania registered the biggest increase in FDI new projects in 2017 compared to 2016 (40%) (Source: Financial Times, The fdi Report 2018)

227 Inflation Inflation rate (%) Target 2018: 2.5% (Source: National Bank of Romania) 1.3 (Source: National Institute of Statistics) Inflation started to be on a positive trend at the beginning of 2017 due to the persistence of the internal inflationary pressures associated with the increase of aggregate demand and the rise in wage costs.

228 Unemployment Unemployment rate (%) Forecast 2018: 4.9% (Source: National Commission of Strategy and for Prognosis) (Source: National Institute of Statistics)

229 Minimum Wage in EU Minimum Monthly Gross Wage in EU January 2018 (EUR) Source: EUROSTAT

230 Skilled labor force Languages studied by Romanian students 97% 97% of Romanian high school students study 2 or more foreign languages The predominant languages are English, French, German and Spanish, yet initiatives for teaching Japanese, Nordic languages or the entire Latin language family (Spanish, Italian, French) exist University students in Romania are proficient in [% of total]: 90% 26% 17% 8% 5% Source: ABSL, NIS, Eurostat

231 Skilled labor force

232 Romania Largest Market in the SEE Maximum broadband speed Hourly labor costs Second in EU for average peak connection speeds Source: Akamai Q Report UKR 2 One of the most competitive labor force in the CEE ( 6.3) Source: Eurostat, April 2018 Natural gas & Electricity prices EU ranking (S1 2017)* 4 4th 6 lowest natural gas prices 6 th lowest electricity prices HU SRB RO BG MD World Bank ease of doing business 45 Ahead of Italy, Hungary, Bulgaria, Croatia, Belgium, Cyprus, Turkey, Luxembourg or Greece *Excluding VAT and other recoverable taxes and levies Source: World Bank Report, 2017

233 VALUE FOR MONEY BUCHAREST BERLIN LONDON Consumer Prices Rent Prices Restaurant Prices Groceries Prices Standard of living equivalency net salary 1,806 3,325 5,109 Source: Numbeo, January, 2018

234 Overview of the Romanian tax system VAT 24% 20% 19% 18% / Social Security Employee Employer 35% 2.25% Food products, medicines: 9% Starting January 1 st 2018 Income Tax Reinvested profit tax Tax System Corporate Tax Dividend Tax Rate 10% 0% 16% 5% Starting January 1 st 2018 IT&C - 0 % income tax for employees BA -14 technical specializations available Employee is hired on a software engineer/ programmer/ software analyst position Annual revenue per exempted employee must be over R&D - 0 % income tax for employees Deduction of R&D eligible expenses: depreciation of R&D equipment, salaries for R&D personnel; 50% of these expenses can be deducted from the taxable income

235 Investment Support STATE AID Total Budget EUR 1.5B STATE AID - GD 807/ 2014 Minimum EUR 3M investment Construction of new buildings Renting costs for existing buildings CAPEX aimed at technical installations and tools Acquisition of intellectual property STATE AID - GD 332 / 2014 Minimum 10 new jobs/ per location Salary costs registered for a 2 consecutive year period resulted as a direct consequence of the investment Salary costs are comprised of gross average annual salary plus benefits FISCAL INCENTIVES Investors that set up manufacturing locations or offices in an industrial, scientific or technological park benefit from : Exemption on land, building and urban planning tax Taxes charged for changing land destination

236 Intensity State Aid North-West 50% North-East 50% State aid intensity, according to development region: North West 50% North East 50% West 35% Center 50% South-East 50% South East 50% South 50% South West 50% South-West 50% South 50% 35% 10% West 35% Ilfov County 35% Bucharest 10% Source: Ministry of Public Finance

237 Ports and Airports SATU MARE BAIA MARE SUCEAVA IASI 130 direct flights leading to 76 destinations in 31 countries worldwide ORADEA ARAD TIMISOARA CLUJ- NAPOCA SIBIU TARGU MURES BRASOV BACAU GALATI BRAILA TULCEA SULINA 14 international airports and 8 major ports Constanta Port - the deepest and largest port at the Black Sea. DROBETA TR. SEVERIN CRAIOVA BUCURESTI OTOPENI GIURGIU M.KOGALNICEANU CONSTANTA MANGALIA International Fligths Ports Under construction Aircraft traffic reached 16M passengers in 2016, up by 20.5% compared to 2015

238 Industrial Parks Status at regional level (June, 2018) North West Region: 18 parks West Region: 6 parks South West Region: 7 parks South Region: 23 parks South East Region: 2 parks North East Region: 6 parks Center: 17 parks Bucharest: 2 parks 81 industrial parks spread across Romania - both private and public ownership Access to utilities & benefits packages according to their focus Exemption on land, building and urban planning taxes (Source: Ministry of Regional Development and Public Administration)

239 FDI Stock by Field of Activity at 31 December 2016 Sectors EUR million % of total FDI TOTAL 70, Manufacturing 22, Construction and real estate transactions 9, Trade 8, Financial intermediation and insurance 8, Electricity, gas and water supply 6, Professional, scientific, technical and administrative activities and support services 3, IT&C 3, Mining 1, Agriculture, forestry and fishing 1, Other 2, By economic activity, FDI stock was channeled primarily to manufacturing, with the following largest recipients: transport equipment oil processing chemical rubber and plastic products metallurgy food beverages and tobacco manufacture of computer electronic optical and electrical products Source: National Bank of Romania

240 Key facts for top tech oriented industries in Romania INDUSTRY SIZE (2017) KEY PLAYERS KEY PROJECTS AEROSPACE IT&C AUTOMOTIVE EUR >430M EUR 4.1B * EUR 23.5B ** Premium Aerotec EUR 50M investment Sonaca EUR 12M investment Airbus Helicopters EUR 15M investment Siemens software dev. worked on the Mars Rover Deutsche Bank EUR 40M investment LiveRail was acquired by Facebook for EUR 600M Continental EUR 175M investment in 2017 Daimler EUR 300M investment for gear boxes Ford EUR 200M investment for production of new model Source: * ANIS, Report 2017 (estimation), ** ACAROM, Report Feb 2018

241 InvestRomania in a nutshell one-stop-shop for foreign investors, assisting and advising international companies for project implementation in the country Promoting and facilitating foreign investment in Romania Main interface between foreign companies and central / local authorities Assisting worldwide entrepreneurs in project implementation Tailored and individually custom-made solutions for developing new or current units Consultancy and guidance during all stages of the decisional process (state aid & fiscal incentives)

242 one-stop-shop for foreign investors

243 GOVERNMENT OF ROMANIA Ministry for Business Environment, Commerce and Entrepreneurship 152 Victoriei Av. District 1, Bucharest, Romania Web: