Romania: EIB supports with EUR 360m project co-financing with EU Funds

The European Investment Bank (EIB) is lending EUR 360 million to Romania to finance the national contribution to growth-oriented investments during the 2014-2020 EU programming period under Operational Programmes targeting competitiveness, human capital and large-scale infrastructure. This loan will support the Romanian Partnership Agreement with the EU for the 2014-2020 programming period, focusing on investments in the areas of energy, environmental improvement, Research & Development and Innovation (RDI), Information and Communication Technology (ICT), employment, education and social amenities. This EIB loan follows on from the EUR 1 billion National Strategic Reference Co-Financing Loan for transport and environmental projects provided under the 2007-2013 programming period and the EUR 300 million loan for environment sector projects under the Large Infrastructure Operational Programme during the 2014-2020 EU programming period, which was signed at the EIB’s headquarters in Luxembourg on 16 June 2016.

At the same time, the EU bank has signed two Project Advisory Support Service Agreements worth some EUR 19 million, with the National Public Procurement Agency (ANAP) and the Ministry for European Funds respectively. The first Service Agreement provides for assistance to ANAP to establish a national public procurement strategy, part of the fundamental conditionality set by the EU for the 2014-2020 programming period. The second will support project implementation by beneficiaries under the EU’s Large Infrastructure Operational Programme (namely the National Roads and Motorways Company, the National Railway Company and water and waste sector beneficiaries, mainly including regional operational companies). The EIB’s “Project Advisory Support” technical assistance programme provides advisory services to the Managing Authorities and beneficiaries of European Structural and Investment Funds (ESIF) in Romania under the 2014-2020 EU financial perspective. These technical assistance services aim to improve the quality of projects and investments funded by the Structural Funds, disseminate best practices across the EU and contribute to enhanced cohesion. 

EIB Vice-President Cristian Popa stated: “The agreements signed today will help to fulfil the EU bank’s mandate, namely to provide lending, blending and advisory services in all Member States. These comprise a crucial set of actions for ensuring sustainable future economic growth in the EU – actions which have already proven successful in many Member States and which the EIB is committed to implementing extensively in Romania. This EIB loan will co-finance priority public infrastructure projects with a total value of some EUR 7.7 billion, with strong expected economic growth effects under several EU Operational Programmes (mainly comprising RDI, ICT and social projects), and will underpin further structural transformation in the labour market by improving skillsets. The Project Advisory Support Service Agreements represent the continuation of the EIB technical assistance underway since 2014. They will enhance the assistance already provided through JASPERS since 2008 to Romanian authorities, administrations and State enterprises with the objective of preparing high quality projects accelerating the absorption of EU Funds under the current 2014-2020 programming period. 

The two loans signed by the EIB with the Romanian authorities so far this year point to the existence of a pipeline of projects which I expect to soon be complemented by the commencement of EFSI operations in the country and to continue growing and diversifying in the future, including via the operationalisation of the SME Initiative dedicated to supporting entrepreneurship in Romania.”

Ms. Anca Dragu, Romanian Minister of Public Finances commented: „The loan agreement signed today with EIB is a proof of the joint attention paid by the Romanian Government and the bank of the European Union to improve the absorption of European funds dedicated to three operational programmes: Large Infrastructure, Competitiveness and Human Capital. By partially covering state budget expenditures incurred for supporting EU funded projects, the impact on the state budget is reduced. This loan also has the potential to boost investments in the three major areas of interest.

Concerning public procurement, the EIB will provide superior expertise for the development of several key measures within the Strategy. To be more precise we refer to the development of internal control systems related to the public procurement (I), streamlining of the ex-ante control system (II), implementation of centralized public procurement system (III) and overcoming recurrent shortcomings to smooth project preparation and implementation of future public procurement contracts (IV).

As governor for Romania, let me emphasize that on the public sector side, we are committed to explore and use the diverse range of EIB instruments. In the same time, further development of EIB private sector portfolio should be pursued. We would encourage the private sector to actively search for financing opportunities, underlining that project preparation facilities are also available.”

Mr. Cristian Ghinea, Minister of European Funds stated: “By signing this Project Advisory Support Service Agreements, both the Ministry of European Funds, as Managing Authority for the Large Infrastructure Operational Programme 2014 - 2020 (LIOP), and especially the beneficiaries of the three major sectors of investments financed through this program - environment, transport and energy, will use the expertise of the EIB for all activities and specific technical assistance needs related to projects preparation and implementation and development of institutional capacities and skills.

The Service Agreement, signed today, will continue the technical assistance provided by the EIB in the previous programming period and will contribute to the fulfilment of the specific conditionalities of LIOP - the strategic program of development of national infrastructure, with a financial allocation over 41 % of the total European Structural and Investment Funds envelope in Romania for the 2014-2020 programming period”