Romania

PPP Investments Projects

 Government of
Romania

Romania: General Data

Resident Population: Gross Domestic Product
AREA rank: 84
19,523,621 213,5 billion $
Total: 238,391 sq km
Land: 229,891 sq km
Water: 8,500 sq km

BOUNDARIES
Total: 2,844 km
Coastline: 225 Km

ELEVATION
Mean elevation: 414 m
Lowest: 0 m Black Sea
Highest: 2,544 m

Page 2
 Government of
Romania

Romania: Economic Background

6.9%
World Competitiveness Report 2018
Economic Growth 1st pillar:
Institutions
(2nd highest in the EU) 12th pillar: 2nd pillar:
Innovation Infrastructure

10,817 $
3rd pillar:

GDP per capita

11th pillar: Macroeconomic
Business environment
sophistication

4th pillar:

34.7%
10 pillar:
th Health and

Public Debt Market Size primary

education

(4 lowest in the EU)

th
9th pillar: 5th pillar:
Technological Higher education
readiness and training

Unemployment
(8th lowest in the EU)
4.1% 8th pillar:
Financial market
development 7th pillar:
Labour market
6th pillar:
Goods market
efficency

efficency

Romania Europe and North America

Page 3
 Government of
Romania

Romania: Business Environment

Corporate Tax 16% Ease of doing business (rank 1-190) 45
Individual Income Tax 10% Paying taxes (rank 1-190) 42
Payments (number per year) 14
General VAT 19%
Time (hours per year) 163
Special VAT
Tourism, Agriculture
5% Total tax & contributions (% of profit) 38.4
Source:

Tax Burden
(%GDP) 2nd lowest in the EU
26% World Bank, 2018

Minimum Gross Wage 475 $

Medium Gross Wage 1,110 $

Page 4
 Government of
Romania

Romania 100

Romania - the 1st country in the world that Ana Aslan - Romanian biologist and
officially recorded oil production, at the world’s physician who discovered the anti-
first refinery in Ploiești City aging effects of procaine, based on
Timișoara City: the 1st mainland European city
the drugs Gerovital H3 and Aslavital
and 2nd in the world, after New York, to be lit by
electric street lamps in 1884

Anghel Saligny Bridge

(formerly King Carol I
Bridge), a railroad truss
bridge in Romania,
built by the Romanian
engineer Anghel Saligny
across the Danube
River, connecting the
historical regions
of Muntenia and
Coandă-1910, the 1st jet airplane, invented by Romanian Dobrogea.
inventor Henri Coandă

Page 5
 Government of
Romania

Romania Today Basarab Bridge

Bucharest
Parliament Palace
Bucharest

Calafat Bridge
across Danube River

Transfăgărășan across
Carpathian Mountains
Peleș Palace
Sinaia

One of the best broadband

infrastructure in the world

Page 6
 Government of
Romania

Main Areas for PPP Investments

14%
ENERGY 4.2 bn. $

37%
11.2 bn. $
TRANSPORT
30.5 AGRICULTURE
19%
6.0 bn. $

billion $
16% 14%
4.84 bn. $ 4.26 bn. $
HEALTH TOURISM

Page 7
TRANSPORT
 Government of
Romania

Bucharest - Brașov Highway

Project description
Length: 170 Km (106 Km construction)
Relief: mountains 75%, plains 25%
Bridges and viaducts: 57
Type of PPP: Design-Build-Maintain-Operate (Bucharest-
Ploiești: operate; Ploiești-Brașov: build & operate)

Operation period: 24 years (build 4 years)

Project value: 1.6 billion $
Public partner’s participation: max. 25%
Government availability payment: 60 million $ annualy Brașov
Bușteni
Toll road: 7 $/100 Km/vehicle Sinaia
Comarnic
Return on investment: 10%
Ploiești
Bonus payment: 120 mil. $ (if the construction is completed in 3 years)
Main Bid criteria: toll value (30%), level of availability Bucharest
payment (20%), experience in the field (20%)
Initiation: 2018
Current Status: procedure for awarding PPP contract
Responsibility for expropriation & approvals: public partner

Page 9
 Government of
Romania

South Highway
Project description
Length: 720 Km (550 Km construction)
Relief: mountains 20%, plains 80%
Type of PPP: Design-Build-Maintain-Operate (Constanța-
Bucharest: operate; Bucharest-Calafat/Lugoj: build & operate)

Operation period: 56 years (build 6 years)

Project value: 3.2 billion $
Arad
Public partner’s participation: max. 25% Nădlac
Government availability payment: 87 million $ annualy Timișoara
Toll road: 7 $/100 Km/vehicle Lugoj

Return on investment: 10%

Bonus payment: 120 mil. $ (if the construction is completed in 5 years) Drobeta Turnu
Main Bid criteria: toll value (30%), level of availability Severin Bucharest
Craiova
payment (20%), experience in the field (20%)
Initiation: 2019, S1 Caracal
Calafat
Current Status: substantiation study
Responsibility for expropriation & approvals: public partner

Page 10
 Government of
Romania

North East Highway

(Ukraine - Suceava - Târgu Neamț - Iași - Ungheni - Moldova Republic)

Project description
Length: 190 Km (Highway bridge at Ungheni)
Land features: hills (80%) and plains (20%) Suceava
Type of PPP: Design-Build-Maintain-Operate
Iași
Operation period: 40 years (build 4 years) Tg. Neamț
Ungheni
Project value: 3 billion $
Public partner’s participation: max. 25%
Government availability payment: 70 million $ annualy
Toll road: 7 $/100 Km/vehicle
Return on investment: 10%
Bonus payment: 100 mil. $ (if the construction is completed in 3 years)
Main Bid criteria: toll value (30%), level of availability
payment (20%), experience in the field (20%)
Initiation: 2019, S1
Current Status: substantiation study
Responsibility for expropriation & approvals: public partner

Page 11
 Government of
Romania

Bucharest - Danube Canal

Project description
Length: 103 Km (74% completed)
Harbours: 3
Hydropowers & Sluice-gates: 4
Bucharest Glina
Harbour
Type of PPP: Design-Build-Maintain-Operate
Operation period: 25 years (build 3 years) Hydrotechnical Hub
Hydropower &
Sluice gate
Project value: 1.9 billion $ 1 Decembrie
Harbour
Public partner’s participation: max. 25% Oltenița
Harbour
Return on investment: 10%
Bonus payment: 120 mil. $ (if the construction is completed in 2 years)
Main Bid criteria: operation period (30%), experience in the
field (20%)
Initiation: 2018
Bucharest
Current Status: substantiation study
Oltenița
Responsibility for expropriation & approvals: public partner

Page 12
 Government of
Romania

South Bucharest Airport

Project description
Area: 1,000 ha
Capacity: 30 million passengers per year
Terminals: cargo & passengers
Type of PPP: Design-Build-Maintain-Operate
Operation period: 25 years (build 4 years)
Project value: 1.5 billion $
Public partner’s participation: max. 25%
Return on investment: 10%
Bonus payment: 120 mil. $ (if the construction is completed in 3 years)
Main Bid criteria: operation period (30%), experience in the
field (20%)
Initiation: 2019, S1
Bucharest
Current Status: stakeholders consultation phase
Responsibility for expropriation & approvals: public partner

Page 13
HEALTH
 Government of
Romania

“Dr. Grozovici” Multifunctional Hospital

Project description
Area: 51,000 m2
Capacity: 636 beds
Type of PPP: Design-Build-Maintain-Operate
Operation period: 17 years (build 2 years)
Project value: 160 million $
Public partner’s participation: max. 25%
Government availability payment: 3 million $ annualy
Return on investment: 10%
Main Bid criteria: operation period (30%), level of
availability payment (20%), experience in the field (20%)
Initiation: 2018
Current Status: approving the substantiation study
Responsibility for expropriation & approvals: public partner
Settlement of medical services: National Health Insurance System

Page 15
 Government of
Romania

National Network of 15 Hospitals

Project description
Network: 15 clinical hospitals
Clinical Hospital Clinical Hospital
Capacity: 3,000 beds Cluj-Napoca (CFR) Pașcani (CFR)
Type of PPP: Rehabilitate-Maintain-Operate BT
MM
Development: 12 radiotherapy centers, 12 analysis & Clinical Hospital SM SV
Clinical Hospital
Oradea (CFR) Iași (CFR)
imaging centers, 8 heliports, 11 medical helicopters SJ BN IS
NT
Operation period: 20 years (development 2 years) BH CJ
Clinical Hospital VS Clinical Hospital
MS
Project value: 900 million $ Simeria (CFR)
AR
HR BC Brașov (CFR)
AB
Public partner’s participation: max. 25% SB CV
Clinical Hospital
TM
BV VR Galați (CFR)
Government availability payment: 2 million $ per hospital
GL
HD
Clinical Hospital
Return on investment: 10%
BZ
Timișoara (CFR) CS
VL
AG PH
BR
GJ TL
Main Bid criteria: operation period (30%), level of DB
Clinical Hospital
availability payment (20%), experience in the field (20%) B IL
Ploiești (CFR)
MH OT IF
Initiation: 2018-2019
CL
Clinical Hospital CT
Drobeta Turnu GR Clinical Hospital
Current Status: substantiation study Severin (CFR)
DJ TR Constanța (CFR)
Clinical Hospital
Settlement of medical services: National Health Craiova (CFR) Clinical Hospital Clinical Hospital Clinical Hospital
Insurance System Sibiu (CFR)
Witting 1 (CFR) Witting 2 (CFR)

Page 16
 Government of
Romania

“Carol Davila” Medical City

Project description
10
Area: 250 ha 9
2
Capacity: 3,000 beds 8
6 1
Type of PPP: Design-Build-Maintain-Operate
Operation period: 25 years (build 8 years) 3

Project value: 2.64 billion $ 5

Public partner’s participation: max. 25%
Return on investment: 10% 4
7 11
Main Bid criteria: operation period (30%), experience in the
6
field (20%)
12
Initiation: 2019, S2
Current Status: stakeholders consultation phase
Responsibility for expropriation & approvals: Public partner
1. Medical complex 5. Leisure park 9. Hotel for attendants
Settlement of medical services: National Health Insurance System
2. Heliport 6. Residential area 10. Sport & recovery
3. University 7. Shops & Market 11. Students’ houses
4. Sports area 8. Parking 12. Other services

Page 17
 Government of
Romania

6 Regional Hospitals
Project description
Type: single design x 6 projects
Capacity: 6 x 600 beds
Type of PPP: Design-Build-Maintain-Operate
Iași
Operation period: 20 years (build 3 years)
Project value: 6 x 190 million $
Public partner’s participation: max. 25% Tg. Mureș
Return on investment: 10%
Bonus payment: 6 x 20 mil. $ (if the construction is completed in 2 years) Timișoara
Main Bid criteria: operation period (30%), experience in the Brăila
field (20%) Galați
Initiation: 2019, S1
Current Status: substantiation study
Responsibility for expropriation & approvals: public partner Craiova
Constanța
Settlement of medical services: National Health Insurance System

Page 18
TOURISM
 Government of
Romania

Făgăraș Ski Resort

Project description
Total length of the ski tracks: 150 Km, at 2,000 m altitude
Investments in luxury hotels and resorts: 400 ha
Ski season: 8 months
Type of PPP: Design-Build-Maintain-Operate
Operation period: 27 years (build 4 years)
Project value: 1.2 billion $
Public partner’s participation: max. 25%
Return on investment: 10%
Main Bid criteria: operation period (30%), experience in the
field (20%) Făgăraș
Initiation: 2018 - 2019 Ski Resort
Current Status: substantiation study
Responsibility for expropriation & approvals: public partner

Page 20
 Government of
Romania

New Costinești Luxury Resort

Project description
Luxury leisure resorts: 2 at seaside (R1: 580 ha + R2: 850 ha)
Luxury balneo resort: 1 on Techirghiol Lake (R3: 100 ha)
Beach season: 3.5 months
Type of PPP: Design-Build-Maintain-Operate ha
0
10
Operation period: 30 years (build 5 years)
Project value: 200 $/m2
Public partner’s participation: max. 25%

ha
580
Return on investment: 10%
Main Bid criteria: operation period (30%), experience in the
field (20%)
Initiation: 2019, S1 New
Current Status: stakeholders consultation phase
Costinești

ha
Responsibility for expropriation & approvals: public partner

850
Page 21
AGRICULTURE
 Government of
Romania

Siret - Bărăgan Canal

Project description
Length: 190 Km (Construction 140 Km)
Type of PPP: Design-Build-Maintain-Operate
Operation period: 54 years (build 5 years)
Project value: 6 billion $
Public partner’s participation: max. 25%
Shareholders of min. 75% of investment:
private partner (min. 51%); Romanian Trading House (max. 49%)
Return on investment: 10%
Bonus payment: 120 mil. $ (if the construction is completed in 4 years)
Main Bid criteria: operation period (30%), experience in the Focșani
field (20%)
Initiation: 2019, S1 Râmnicu
Buzău Sărat
Current Status: stakeholders consultation phase
Urziceni
Responsibility for expropriation & approvals: public partner
Bucharest
ROMANIAN TRADING HOUSE
Property 320,000 ha Private administration
49% available for sale Investments in silos, warehouses, hypermarkets.

Page 23
ENERGY
 Government of
Romania

“Tarnița-Lăpuștești” Hydropower Plant

Project description
Capacity: 1,000 MW (4 x 250 MW)
Type of PPP: Design-Build-Maintain-Operate
Operation period: 30 years (build 5 years)
Cluj
Project value: 1.2 billion $
Public partner’s participation: max. 25%
Tarnița
Government availability payment: CFD negotiable Lăpuștești
Return on investment: 10% Hydroplant
Bonus payment: 120 mil. $ (if the construction is completed in 4 years)
Main Bid criteria: operation period (30%), experience in the
field (20%)
Initiation: 2019, S1
Current Status: substantiation study
Bucharest
Responsibility for expropriation & approvals: public partner

Page 25
 Government of
Romania

Hydrotechnical Complex on Danube

Project description
Twin project Romania - Bulgaria
Capacity: 1,100 MW (Romanian side)
Type of PPP: Design-Build-Maintain-Operate
Operation period: 38 years (build 8 years)
Project value: 3 billion $
Public partner’s participation: max. 25%
Government availability payment: CFD negotiable
Return on investment: 10%
Bonus payment: 120 mil. $ (if the construction is completed in 7 years)
Main Bid criteria: operation period (30%), experience in the
field (20%)
Initiation: 2019, S2
Bucharest
Current Status: stakeholders consultation phase
Responsibility for expropriation & approvals: public partner
Turnu Măgurele

Nikopol

Page 26
 Government of
Romania

Romanian Authorities’ Support for Investors

State aid for jobs creation: $ 8.5 mil to $ 42.6 mil
(depending on the region where the investment is made)

State aid for industrial parks: - Tax cuts

Support provided by local - Tax cuts
authorities: - Technical assistance and support
for obtaining all authorisation

Incentives for Research and - income tax exemption for

Development: individuals working in R&D
- corporate tax exemption in the
first 10 years of R&D activity
Incentives for IT industry: - income tax exemption for IT
employees
Page 27
Government of Romania

Contact details:
E-mail: prognoza@cnp.ro
Phone: 0040213170041
Address:
Victoriei Square, Sector 1, Bucharest, Romania