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13.12.2010 10:35

Romania adopts Public-Private Partnership law

Companies would be found eligible based on their results in similar projects in the past five years and a financial audit of the past three years

AUTHOR: publics.bg

PPPs may be approved for municipal and national roads in Romania
© European Commission

The Romanian news agency Mediafax reports that the Romanian Prime Minister Emil Boc said on Sunday for ProTV that the Government has approved the norms for the application of the public-private partnership (PPP) law. According to Boc, this would create the framework for the attraction of domestic and foreign investments. Earlier last week, people close to the matter told Mediafax that the Government had approved the norms which set selection criteria for investors who want to develop PPPs.

Companies would be found eligible based on their results in similar projects in the past five years and a financial audit of the past three years, the report by Mediafax says. The main criteria include having letters of guarantee from a bank or other similar documents, overall turnover or turnover in the field relevant to the project in the last three years. An interested company would also have to prove its understanding of the project’s objectives, by presenting its own concept on collaboration with the state, an estimated value of the investment, as well as an agreement between its associates.

PPPs would be accepted for municipal roads, leisure centers, sewerage and heating distribution systems, social dwellings or forest land. They would be initiated by municipal councils, while partnerships for national roads, regional water distribution networks, tourist objectives of national or regional interest will be initiated only by the Government and ministries.

Anca Harasim, Executive Director of the American Chamber of Commerce (AmCham) in Romania, was cited by Mediafax saying on Tuesday that the PPP law was adopted too hastily and will not lead to the expected results. According to her, it may even be disapproved by the European Commission because of the 2% guarantee requested from investors and the direct awarding of contracts, which infringes EU laws and excludes projects with European financing from being developed in such a way.