Romania to receive advance payments on account of structural funds

Agerpres, Romanian Economic Highlights, June 7. Romania is to receive advance payments in the value of 278.4 million euros in structural funds, following a decision taken on June 3 by the European Union Council. The decision was taken without debate, at agenda point A of Justice and Home Affairs (JAI) Council in Luxembourg. In order to support solving the problems related to liquidities, EU Council has adopted on June 3 a regulation on facilitating the access to structural funds aimed at alleviating the economic crisis effects and, according to this measure, five countries (Estonia, Latvia, Lithuania, Hungary and Romania) are to receive additional down payments totaling 775 million euros, by increasing the payments from the European Social Fund (ESF) - 4 percent and from the Cohesion Fund - 2 percent. Of the 278.4 million euros earmarked for Romania, more than half (147.4 million euros) will be from ESF and the remainder of 131 million euros from the Cohesion Fund. The new regulation will support the states facing lack of liquidities as a result of the crisis, will improve the absorption of funds for certain operational programmes and will simplify the management of structural funds. Delegations of the Czech Republic, Malta, Poland, Slovenia, Slovakia and Great Britain abstained from voting.

Projects worth 1.8 bn euros, contracted through the Regional Operational Programme

Agerpres, Romanian Economic Highlights, June 7. More than 600 projects in total value of 1.876 billion euros have been contracted through the Regional Operational Program (ROP), by May 31, 2010, according to data presented on June 1 by the Minister of Regional Development and Tourism (MDRT). Out of the total contracted value of the 611 projects, 1.25 billion euros were allocated from the European Regional Development Fund. Four projects were contracted in the urban sector, worth 25 million euros, and 105 projects were signed in the transport sector, totaling 1.093 billion euros. There were contracted 148 projects, worth 260 million euros in total, in the social field, under the Priority Axis, and 265 projects worth 104 million euros, in the environment field. There were also contracted 89 projects in tourism, totaling 394 million euros. A number of 810 projects were submitted to ROP for approval, by May 31, 2010, their total value amounting to 2.1 billion euros. A total number of 4,538 projects were submitted under the ROP, worth 11 billion euros.

Guarantee worth max. 2.5 mln euros for co-financing, directly from banks

Agerpres, Romanian Economic Highlights, June 7. A simplified procedure for obtaining the guarantees for the co-financing loans will speed up the absorption of the European funds, president of the National Fund for Small and Medium Enterprises' Credit Guarantee (FNGCIMM) Aurel Saramet told Agerpres. “The FNGCIMM Board of Directors has already approved the implementation of a procedure in nearly 2 weeks time targeting the rapid extension, directly from the banks, of the FNGCIMM guarantees for the loans necessary for co-financing, so that the Romanian SMEs may access the European funds faster and easier,” president of the Guarantee Fund said. According to him, the Fund will complete the conventions with the banks in two weeks tops and the scoring parameters for the extension of the guarantees directly from the banks will be determined. This will render operational the scheme based on which a bank required to extend a co-financing loan will also approve the guarantee provided by FNGCIMM. In concrete terms, the procedure will be carried out based on a mandate given by FNGCIMM to the partner banks, which will be submitted three or four economic quantitative and qualitative management parameters (scoring). “The guarantee extension period will be shortened, as the banks will analyse whether the project is bankable or not and if the answer is affirmative, they will extend the loan directly, as they are sure the guarantee will be approved, with no need for FNCGIMM to perform a subsequent analysis. The advantage of the client wishing to take out a co-financing loan is that he pays the commission directly at the bank and does not have to go to the Guarantee Fund as well,” Aurel Saramet explained. The FNGCIMM president underscored the guarantee will reach maximum 80 percent, with any excess of this level being forbidden, as this would breach the norms regulating the state aid. The maximum guarantee for a single project of structural funds cannot exceed 2.5 million euros, Aurel Saramet said, adding this measure is exclusively applied to the guarantees required for the extension of the co-financing loans for the structural funds, and not to other guarantees extended by the Fund. This initiative aims at increasing the absorption rate of the structural funds, by reassuring the banks of the availability of the required guarantee, with no other inquiries and assessments being necessary, the FNGCIMM president explained. “This program is available for all banks that will accept this product and we have sealed conventions with 24 banks for similar products and we hope their number will be preserved this time as well. During the talks we had with the banks, we noticed they are open to this product, with the only limitation being the compliance of an enterprise with the parameters that define a SME,” Saramet also said.

E-health projects worth over 15 mln euros approved

Agerpres, Romanian Economic Highlights, May 25. As many as 17 projects totaling 65.1 million lei (1 euro trades for 4.18 lei) have been approved and proposed for financing under the 3.2.4 Operation – “Supporting the implementation of e-health solutions and ensuring the broadband connection, where necessary,” informs the Ministry of Communications and Information Society (MCSI). The total non-repayable value of the projects amounts to 53.5 million lei, according to the same source. MCSI, as Intermediary Body for the promotion of information society launched on May 13 the Applicant’s Guide for the 3.2.4 operation at central level. For the operation 3.2.4 at local level, the Applicant’s Guide is pending authorization from the Management Authority, with a new call for projects to be initiated after approval. Operation 3.2.4 (e-health) is part of the 2007 – 2013 Major Sector 2 “Developing and Raising Efficiency of electronic Public Services” (POS CCE), Priority Axis 3 - Information and Communication Technology (ICT) for the private and public sectors. The eligible beneficiaries for this operation are the National Health Insurance House, Ministry of Communications and Information Society or Partnerships formed between the National Health Insurance House and MCSI. The total amount earmarked for this call reaches 190.5 million lei. MCSI informed there has been initiated the call for projects for the operation 3.2.3 “Supporting the implementation of E-learning applications” and the application deadline was set for June 15, 2010. Some 82 million lei were assigned to this call. The maximum financing value reaches 15 million lei for the projects with national impact and 5 million lei for those with local impact. The Romanian Ministry of Communications and Information Society, in its capacity as Intermediary Organism for the Promotion of the Information Society is managing Priority Axis III - Information Technology and Communications (ITC) for the private and the public sector of the 2007-2013 Increasing Economic Competitiveness Sectoral Operational Programme.

Transport projects raise EU funds worth bln 1.1 euros

Agerpres, Romanian Economic Highlights, May 17. The Romanian Transport and Infrastructure Ministry (MTI) Management Authority contracted 20 projects grossing 1.1 billion euros so far, MTI informs. After several meetings with the EU Commission officials in Brussels and Bucharest, the Management Authority was heard and lodged 41 projects worth 3.8 billion euros, 20 of which worth a total of 1.1 billion euros have already been approved and contracted. Six of the 20 projects are of major importance, namely the Cernavoda-Constanta Speed Way - worth 403 million euros, the Constanta bypass worth 186 million euros; the rehabilitation of the National Road 1 H between Zalau – and Alesd (country northwest) totaling 115 million euros; the rehabilitation of the National Road 24, at the border between the Galati County (southeast) and the Vaslui County (east), up to Crasna, and between Crasna and Alesd - worth 150 million euros. Likewise, EU funds were allocated for the seawall of Constanta Port (Romanian Black Sea shore) - worth 140 million euros. The EU Commission okayed the first funds worth 38.5 million euros, in 2009. To continue the projects in 2010, 1.5 billion euro would be needed in foreign loans and more than 638 million euros in co-financing from the state budget. Unfortunately, the MTI budget for 2010 amounts to only 634 million euros (from foreign loans), meaning 40 percent of the required money and 279 million euros from the budget, which represents 43 percent of the required money, MTI sources report. Romania is to receive 5.7 billion euros through the Operational Sectoral Transport Programme over 2007-2013.

EUR 600,000 in European money for Rodna Mountains National Park

Agerpres, Romanian Economic Highlights, May 10. The administration of the Rodna Mountains National Park (APNMR), in northern Romania, got a new European financing worth 2.2 million lei (594,595 euros) by means of a project aimed at conserving biodiversity in this protected area. The project titled "Measures Meant for the Conservation Management of Biodiversity of Rodna Mountains National Park" is financed through the Sectoral Operational Programme Environment, Priority Axis 4 "Implementation of Adequate Management Systems for Nature Protection," which is to be carried out between April 1, 2010 and September 30, 2013. According to the data sent to Agerpres by APNMR, the general aim of the project consists in creating and implementing a well performing efficient system meant to conserve biodiversity in the Rodna Mountains National Park (site Natura 2000 and the Biosphere Reserve) by making research institutes, NGOs, museums and factors of local interest get involved. The project aims to harmonize the management plan of the Rodna Mountains National Park with the aims of the Natura 2000 site and of the Biosphere Reserve. In this respect they will carry out activities meant to map the habitats of community interest in the park, to map the species of community interest, to assess their conservation stage as well as to prepare the plans for monitoring the conservation stage of habitats and community species.

Romania absorbed 10 % of the funds granted by the European Union three years since its accession, Euroalert.net announced on January 25, saying these are data included in the report of the Authority for the coordination of structural instruments – EUR 600 million. According to the quoted source, the Authority published on January 12 a report presenting the situation of the European funds absorbed in December last year, when payments were made from structural funds worth EUR 40 million, almost two times less against November. Last year, most funds were directed to the economic competition program - 934 projects – and the regional program – 578 implementation projects, the source reports, adding the absorption rate stood at 16.40 % and 15.35 % respectively in these two sectors. Moreover, the program that posted the lowest advance was transportation, with a 2.4-% absorption rate in December. Source: Agerpres.

The Environment and Forestry Ministry plans to absorb in 2010 European funds worth EUR 2.5 billion for the projects included in the Sectoral Operational Program Environment, so that the total value of the European funds earmarked for the program axes should reach EUR 4 billion by the end of the year. “I was not satisfied with the 2009 achievements in terms of the European funds absorption under the SOP Environment. Some EUR 400 million were absorbed in 2009 compared to EUR 995 million at the end of 2008. We are determined to catch up by the end of this year. We plan to absorb funds amounting to EUR 2.5 billion in 2010, so that the total earmarked value of the European funds to reach EUR 4 billion at the end of 2010,” Environment and Forestry Minister Laszlo Borbély  told a press conference on February 22. The Environment Minister signed the contract for the implementation of an integrated solid waste management system in the county of Arad, worth EUR 29.6 million. As many as 10 contracts were sealed for the Priority axis 1 under the SOP Environment, and each of them is worth between EUR 100 and 180 million, the Environment Minister said. “One of the biggest problems relates to waste. As many as 137 landfills have been closed down so far and there are still 101 landfills to be shut down by 2018. Two or three of them are operating illegally, but we ordered their closedown,” Laszlo Borbély  underscored. At the same time, the official said an analysis will be conducted this year with a view to determine the status of the projects. The Environment minister suggested the tender committees to responsibly analyze the tenders for the projects financed through European funds.

“If prices are much below the accepted value, the bids should be rejected. Maybe the public acquisition law should stipulate more clearly what a trivial bid means,” Borbély  added.

The Ministry of Public Finance prepares a draft law on giving state guarantees supporting local authorities in accessing European funds, Prime Minister Emil Boc informed the representatives of the main companies working in consultancy for community funds on Feb. 11. The Premier explained that this instrument would lead to a higher degree of community fund absorption. "Currently the Ministry of Finance is preparing a law supporting local authorities in pre-financing or co-financing European projects by using the instrument of the governmental guarantees. That is, where there are not sufficient financial resources from the authorities, for us to have our share in co-financing the project, using the instrument of the state guarantees, this will be done in order to increase the degree of community fund absorption," said Boc. The head of government also assured that, following the talks of the relevant inter-ministry committee, the law on public acquisitions is to be simplified, considering the shortening of terms. In his turn Minister of Finance Sebastian Vladescu admitted that the system of community fund absorption was a difficult and bureaucratic one. In the context, the Premier explained that the meeting with the representatives of the consultancy companies aimed at removing the bureaucratic elements, which impede the process of money absorption. The aim of the government in 2010 is to draw EUR 4.3 billion from community funds, reiterated the Premier. Representatives of more than 30 companies working in the field of community funds, of the Ministries of Economy, Transports, the Environment, Labour, the Interior, Regional Development, of the Court of Accounts attended the meeting in the Victoria Palace.

Starting this week, the Romanian companies may lodge with the Ministry of Economy, Trade and Business Environment (MECMA) investment projects on renewable energy generated from natural resources; the European Union and the state budget allocate 100 million euros, in all, for such projects. According to the MECMA data supplied to Agerpres, the small firms can benefit from co-financing worth 70% of the project’s value, at the most, while the big companies may get 50 % of it, at the highest. The interested units have four months at their disposal to lodge the applications for co-financing. Romania has been allotted 264 million euros for capitalizing the renewable energy sources, over 2007-2013, both from EU funds and the state budget. At the first series of applications, 14 such projects were approved, totaling 80 million euros. Source: Agerpres.