Romanian Govt Approved Norms On The Application Of Public-Private Partnership Law - PM

Romanian Prime Minister Emil Boc said Sunday on ProTV that the Government has approved the norms for the application of the public-private partnership law, which he said creates the framework for the attraction of domestic and foreign investments.

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Earlier this week, people close to the matter told MEDIAFAX that the Government had approved the norms, setting selection criteria for firms looking to get involved in projects developed through a public-private partnership.

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 main criteria include having letters of guarantee from a bank or other such 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.

Public-private partnerships targeting projects of local interest, such as communal roads, leisure centers, sewerage and heating distribution systems, social dwellings or forest land, will be initiated by county councils, while partnerships for county roads, regional water distribution networks, tourist objectives of county or regional interest, will be initiated only by the Government and ministries.

Anca Harasim, Executive Director of the American Chamber of Commerce in Romania, said Tuesday that the public-private partnership law was adopted too hastily, will not lead to the expected results and may even draw the ire of the European Commission She pointed to the 2% guarantee requested from investors when entering into the partnership, as well as awarding contracts directly, which not only infringes on EU law, but also excludes projects with European financing from being developed in such a way.

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