Business Review Issue 24/2014 June 30 - July 6

INTERVIEW: Howard Johnson Grand Plaza Bucharest increased its business by about 4 percent last year, and hopes to double the growth in 2014, Sonia Nastase, the hotel’s general manager, told Business Review »page 8

ROMANIA’S PREMIER BUSINESS WEEKLY

MAYOR EMIL BOC SAYS THAT CLUJ IS A CITY OF SERVICES, ONE OF THE REASONS WHY THE TRANSYLVANIAN TOWN IS BECOMING AN ALTERNATIVE HUB TO BUCHAREST » SEE INSIDE

CHINA SEEKS TO GAIN FINANCING GROUND Shutterstock

The government last week announced that the Industrial and Commercial Bank of China was planning to back the construction of two nuclear reactors, requiring an investment of EUR 6.4 billion, alongside other energy and infrastructure investments » page 10

JUNE 30 - JULY 6, 2014 / VOLUME 18, NUMBER 24

CLUJ SUPPLEMENT

NEWS

CITY

Wind of change

All that jazz

The big rush in the renewable energy sector is over, says Louis Borgo, senior banker at the EBRD, which has lent over EUR 360 million to the sector

Major names from the local and international jazz scenes are preparing to sing, swing and scat at the Bucharest Jazz Festival, curated by pianist Lucian Ban

» page 4

» page 14

www.business-review.eu Business Review | June 30 - July 6, 2014

NEWS 3

NEWS in brief BANKING Romania to join ECB’s Single Supervisory Mechanism next year Romania is aiming to overhaul its banking legislation this year so as to join the Single Supervision Mechanism of the European Central Bank (ECB) in 2015, said Bogdan Olteanu, vice-governor of the National Bank of Romania (BNR).

According to Mediafax newswire, Olteanu commented that Romania would be the first non-Euro zone member to be part of the mechanism. He added that Romania needed to change its banking and guarantee fund laws and other provisions regarding the intervention and stabilization mechanisms to bring them in line with EU standards. The Single Supervisory Mechanism will be enforced from November 4, and the BNR will work directly with the ECB on this project. Olteanu suggested it was better for Romania to join the banking union before adopting the euro because it would help the country fill its economic gaps compared to stronger economies in the EU and help it get access to cheaper financing.

ENERGY Rompetrol to buy last 26 percent of Petromidia for USD 200 mln

partnerships with companies from healthcare, agriculture, transportation, e-commerce, security, tourism and other domains. In the first half of the year, the firm opened new units locally in Cluj-Napoca and Timisoara, and a US headquarters, in New York. By the end of the year, Softvision plans to open two further bases in Romania, and expand the team at the same growth rate as in the first half of 2014.

ONLINE Mediafax Group and BAC Investment Banking enter FlorideLux shareholding Mediafax Group, a top-ranking media company in Romania, and BAC Investment Banking, one of the biggest players on the local consultancy market, have joined the shareholding structure of FlorideLux, as of June 20, according to company officials. FlorideLux representatives said negotiations with the two investors had lasted a year, having begun at 2013′s VentureConnect event.

After the necessary discussions, BAC Investment Banking bought a 25 percent share in the company and Mediafax Group a 10 percent stake. The business includes online stores floridelux.ro, brazidecraciun.ro, coroane.ro and cosuridelux.ro.

FlorideLux also runs several bricksand-mortar flower shops.

Rompetrol Rafinare Constanta will purchase the remaining 26 percent of Petromidia stock from the government for USD 200 million. The official announcement will be made in September, with Fabryo-Atlas Paints to build the deal likely to be done in October. mortar factory in The state and Rompetrol Group signed Popesti-Leordeni a memorandum allowing the company, Paint producer Fabryo-Atlas Paints has controlled by KazMunaiGas, to buy started construction of a mortar factory 26.69 percent of Petromidia, the largest on the platform it owns in Popestirefinery in the country. However, in or- Leordeni, Ilfov county, according to der to comply with European legislation, Mediafax. The new production unit, the Romanian state will have to organize work on which began earlier this year, an international auction to sell the stock, should become operational in October. even though another investor is not “Our investments were up to EUR likely to emerge.

500,000 in 2013, and in the near future we will build a mortar factory, which will double our capacity,” said Dragos Military, CEO of Fabryo-Atlas Paints.

Fabryo has extended its portfolio of construction finishes in the last few years, especially in the mortar and adSoftvision ups headcount, hesives category, according to company opens new units IT company Softvision has boosted its officials. In 2014, the firm predicts that headcount by 12 percent in the first half turnover will increase by 5 percent. of the year, reaching the threshold of 1,000 employees, after expanding its State seeks constructor to portfolio of customers and its collabo- build 37 km of Transylvania ration with existing customers during highway this period. The company signed new The National Road Authority (CNADNR)

PROPERTY

IT

is looking for a contractor to construct a 37.2 kilometer segment of the Ogra-Campia Turzii route, part of the Transylvania highway. The project has a total estimated cost of RON 2.33 billion (EUR 531.5 million), including VAT. The design and execution project will be awarded through an open auction, based on the lowest price.

CNADNR will pay up to EUR 14.27 million/kilometer. The work is estimated to cost between RON 1.56 billion and RON 1.88 billion (a level that includes eventual additional works), without VAT. The auction winner will have 64 months to finish the project. Requests to participate in the auction can be submitted until August 11.

STOCK EXCHANGE Foreign investors no longer need fiscal representative to trade on BVB The government amended the Fiscal Code last Monday, eliminating nonresidents’ obligation to register with a local representative before trading stock, provided that they are originally from an EU member state or one that Romania has a convention with that allows information trading, reports Mediafax. Until recently, any foreign investment fund that traded shares on the Bucharest Stock Exchange (BVB) was obliged to have a fiscal representative on the payroll, which, at a cost of up to EUR 2,000 per month, served as a deterrent effect. The government has also introduced into the new Fiscal Code the possibility of electronic communication between the taxpayer and the fiscal authority for various procedures and requests.

TELECOM Vodafone expands 4G network to nine more cities Telecom operator Vodafone Romania has announced that it has expanded its 4G network to nine further cities – Baia Mare, Botosani, Buzau, Braila, Oradea, Pitesti, Ploiesti, Sibiu and Tirgu Mures – effective by the end of July. These towns join the ten-strong list of Bucharest, Arad, Bacau, Brasov, Cluj-Napoca, Constanta, Craiova, Iasi, Galati and Timisoara that already have access. Vodafone now offers its users 4G speeds of up to 150 Mbps in the 19 cities. The operator had 8,185,680 mobile customers on March 31.

WEEK AHEAD July 1 Minimum wage The gross minimum wage will be increased to RON 900 per month for a full-time work schedule of 168 hours. Paying a lower salary under an individual labour contract will be considered an offense, punishable with a fine of between RON 1,000 and RON 2,000.

Tax exemption Tax exemption on reinvested profit comes into force through to the end of 2016 after the government approved the Emergency Ordinance amending Law 571/2003 with respect to the Tax Code. The new regulation applies to companies that reinvest profit in technological equipment.

July 3 Electrica starts trading After subscriptions began on June 25, Electrica’s effective listing on the Bucharest Stock Exchange and the London Stock Exchange is due to start today. The IPO of a 51 percent stake in Electrica is expected to raise at least EUR 435 million.

July 4 Independence Day Party AmCham Romania invites members, partners and friends to this year’s US Independence Day Celebration on July 4. The organizers promise live music, tasty food, cold drinks, kids’ entertainment and a magnificent fireworks display. Access by invitation only.

Contact AmCham Romania at amcham@amcham.ro or by phone at 021 312 48 34.

MOST READ www.business-review.eu 1 Anti-corruption prosecutors detain President Basescu’s younger brother

2 Movie review: Edge of Tomorrow 3 AFI Europe signs record EUR 220 mln refinancing loan for Bucuresti mall

4 China nears decision on nuclear investment in Romania, says economy minister

5 Government approves social security tax cut

www.business-review.eu Business Review | June 30 - July 6, 2014

4 NEWS ENERGY

3Q Agnes Gundisch

EBRD hints at hiatus in local renewable financing

commercial director of Nobila Casa

Louis Borgo, senior banker, power and energy, at the European Bank for Reconstruction and Development (EBRD), says the lender is not really looking at any projects in Romania at the moment, adding that the “big rush” in the renewable sector is over. commentators.

The renewable sector has attracted around EUR 6 billion of investments The EBRD has an exposure of over in the past four-five years, and inEUR 360 million in the local renew- vestors are not sure whether they will able sector, mainly wind, according to recover their money. Some are planfinancing deals announced since 2011. ning to sue the government over its Borgo said that there would be decision to defer the issuance of some more room for renewable as electric- green certificates last summer. The ity demand in Romania will grow in certificates generate the bulk of revenues for renewable producers, and the coming years.

“I think we are in a pause and in the the price of electricity has been future we will see both a change in dragged down by the incentives demand and in government policies. scheme.

This has primarily hurt large stateWe can see renewables coming back but for the moment the market is not owned generators such as Nucleardoing anything,” said Borgo. “We are electrica. Daniela Lulache, the always open to looking at it but the in- nuclear producer’s general manager, vestor has to bring something to use told BR in an interview earlier this that makes sense for them and for us, month that the surge in renewable ca- Louis Borgo, EBRD senior banker and in the current climate it is very pacities had led to “mutations” in the market as renewable producers can challenging.”

Investors have expressed their sell electricity at very low prices. in the incentives system, Borgo said, In response to BR’s question “It is challenging at the moment.” anger at the government’s move to change the incentives scheme, and whether the wind projects financed some smaller projects are at serious by the EBRD were having difficulties Energy needs more private risk of going into insolvency, warned repaying their loans due to the change involvement In the conventional sector, the banker suggested that large energy projects such as the two nuclear reactors at Cernavoda and the pumped-storage hydroelectricity plant at Tarnita-LaAmount Date Project pustesti could be built through a pub(EUR mln) lic-private scheme as the risk for investors is high.

57* June 2014 Topolog-Dorobantu wind farm from “Tarnita, for instance, would be Lukerg Renew very interesting for the EBRD to look 20 March 2014 Six solar farms (EDP Renovaveis) at. The feasibility study I think was 49 March 2014 Crucea North wind farm (STEAG GmbH) done many years ago, World Bank led, and now it is completely out of date.

50** December 2012 Vutcani and Sarichioi wind farms (EDP We do not know if it is relevant anyRenovaveis) more, so a new feasibility study is 91*** November 2012 Chirnogeni wind farm (Marguerite Fund, needed,” said Borgo.

EnerCap Power Fund and EP Global “The EBRD cannot do nuclear.

There was a lot of instability in nuEnergy) clear projects with the government, 36.7 July 2011 Pestera wind farm (EDP Renovaveis) which has changed its mind over the 57.4 June 2011 Cernavoda 1-2 wind farms (EDP years, and a lot of the investors have Renovaveis) left. You have to be consistent in what you are trying to do in order to keep *A/B loans scheme, with EUR 38 mln under EBRD’s own account and the rest the investors interested,” he added. through UniCredit The EBRD banker said that more **A-loan of EUR 20 mln from the EBRD and the rest syndicated to UniCredit Bank private sector investments are needed Austria and Erste Bank on an equal basis in the generation sector, but also in ***A/B loan scheme, with EUR 31 mln under EBRD’s own account and the rest the distribution field. He added that syndicated to Erste Group Bank, ING Bank and UniCredit Bank Austria the initial public offerings in state companies help in this regard.

∫ OVIDIU POSIRCA Courtesy of Nobila Casa

Where do the products come from?

Most of the products are imported from different suppliers, but we also have a Romanian-made line – our ceramic vessels, which are made by a local supplier with whom we have worked since the beginning of our business, 15 years ago. Also, all the products that we have in the decorative textiles section are made especially for us, such as décor pillows, curtains and draperies, which can then be adjusted in store.

Which products are the best sellers?

Our shops are visited by almost 100150 people a day, and the majority of our customers buy products from the art table section such as cutlery, glasses, plates, bowls, table accessories, napkins, candlesticks, ceramic cups and porcelain cups. They also purchase items from the living room section, spending approximately RON 100 on average. oana.vasiliu@business-review.ro

Courtesy of OMA Vision

What prompted the opening of your Bucharest outlet?

As this is our tenth store, we considered ourselves mature enough to move beyond the Carpathian Mountains, so we decided to present our products to the citizens of Bucharest, based on research we conducted in spring. The store in Unirii Shopping Center covers 200 sqm, consisting of the shopping area, a sewing workshop and also a small storage area. The investment was EUR 30,000, excluding the value of the goods inside. This is the first step of a development plan that includes the opening of at least two other stores in the capital, targeting especially shopping centers and malls. Moreover, for 2014 we have projected a turnover increase of 35 percent, meaning over EUR 2.7 million.

EBRD’s renewable financing in Romania

Source: EBRD

ovidiu.posirca @business-review.ro

www.business-review.eu Business Review | June 30 - July 6, 2014

NEWS 5

IT

IFC and Black Sea Trade and Development Bank become shareholders in Teamnet Two new shareholders, International Finance Corporation (IFC), the investment division of the World Bank, and the Black Sea Trade and Development Bank (BSTDB), have acquired a minority share package in Teamnet, providing financing of EUR 5 million and EUR 7.5 million respectively in long-term loans. ∫ OTILIA HARAGA

Courtesy of Teamnet

Following the investment, the two new investors will each hold 8.33 percent of the Teamnet International shares by the end of the year.

In total, Teamnet has secured financing of EUR 25 million to support its expansion strategy in Romania and the region, according to company officials.

“Romania is a country with high potential and remarkable opportunities for innovation. Technology can change and drive the development of an economy; this is why we believe this industry is important and we support it all over the world,” said Ana Maria Mihaescu, head of the IFC mission in Romania.

“The BSTDB has a strong investment portfolio in Romania, based on agriculture, energy and SMEs, as well as the micro-financing sector. The bank is aiming to expand its operational horizons by adding IT&C to the list of investment priorities in Romania. We are confident that our partnership with Teamnet will provide new business opportunities that are mutually advantageous, both in Romania and the Black Sea region,” said Mustafa Boran, vice-president of the BSTDB. After the new investors’ entry into the company’s shareholding structure, Bogdan Padiu’s direct and indirect participation in Teamnet group stands at 51.69 percent, according to Hotnews.ro.

A listing on the stock exchange is on the agenda over the next fiveseven years, said company officials.

Teamnet announced that the company’s turnover had grown by 35 percent in 2013, to EUR 71 million. By 2016, the firm forecasts it will post revenues of EUR 100 million.

Officials announced that the next foreign branch that the firm will open will be in Croatia.

Currently, Teamnet is rolling out projects in another ten countries in the region. Over the next four years, it plans to expand its footprint in Central and Eastern Europe, the Middle

Bogdan Padiu, CEO of Teamnet Group

East and North Africa. As part of this strategy, by 2018, Teamnet plans to expand to 12 new markets including Poland, Italy and Bulgaria, where it intends to develop projects in engineering, cloud, business process outsourcing and unmanned aerial vehicles.

About 40 percent of the revenues should be generated by activities outside the Romanian office by 2018.

Some 80 percent of Teamnet’s total revenues come from IT projects for the public sector. The company plans to grow the ratio of projects in the private sector, so that the public sector share will fall to 70 percent over the next five years.

Ymens, the cloud company belonging to Teamnet group, has joined forces with NEC Europe to deliver cloud solutions to the public sector in Romania.

Teamnet has also relocated to a new headquarters in Green Gate, which hosts 600 employees, with less than 10 percent of the company’s headcount working in other local and international locations. By the end of this year, the firm plans to reach 750 employees. otilia.haraga @business-review.ro

www.business-review.eu Business Review | June 30 - July 6, 2014

6 NEWS STOCK EXCHANGE

Electrica IPO signals shift in national privatization strategy With the privatization of the Electrica Group, the state-owned power supplier and distributor, set to raise at least EUR 435 million from an initial public offering that was concluded last week, the government has hinted it could replicate this model for the sale of controlling stakes in other companies. ∫ OVIDIU POSIRCA As BR went to press last week, it was clear that the offering was oversubscribed two times and that the government was trying to increase the tranche for retail investors from 15 percent to over 20 percent. The rest would be allotted to institutional investors.

According to Gabriel Dumitrascu, head of the general department of privatization and management of stateowned assets in the energy sector, 25 percent of the subscriptions in the tranche of institutional investors were from Romanian investors and pension funds, and for the first time from financial investment companies (SIFs). Investors in the UK had a 23 percent share, while those in Poland and the US had 17 percent and 13 percent, respectively.

Energetic: the IPO was oversubscribed

“We are talking about the biggest plan to list on the Romanian capital market that has ever been carried out.

I am satisfied with the subscription

level, which is a comfortable one,” said Razvan Nicolescu, delegate minister of energy, on Thursday morning.

The listing was carried out both in Bucharest through shares and in London, through global depositary receipts (GDRs).

“The Romanian state should aim to collect more from privatizations, even though here (e.n. with the Electrica IPO) we are not talking about revenues for the state,” said Nicolescu.

He explained that the capital raised during the IPO will be used by Electrica to invest in the distribution business, which generates the biggest share of its revenues.

Nicolescu said he wanted to see Electrica as the springboard for the implementation of corporate governance for all companies in which the state has a controlling stake. The European Bank for Reconstruction and Development (EBRD) is set to work

with the government on this process.

New privatization structure Dumitrascu said that Electrica’s IPO was something new for Romania, as up to now the biggest privatizations in the electricity distribution have been done with strategic investors.

“I believe that the Electrica privatization will in time yield better results than the previous privatizations,” he predicted.

The government is now looking to list the Oltenia Energy Holding, the coal-based electricity giant, and Hidroelectrica, the hydroelectricity producer, which is currently in insolvency.

Commentators noted that the Electrica IPO will take the local stock exchange one step closer to reaching emerging status. ovidiu.posirca@business-review.ro

www.business-review.eu Business Review | June 30 - July 6, 2014

WHO’S 7

WHO’S NEWS

BR welcomes information for Who’s News. Submissions may be edited for length and clarity.

Get in touch at simona.bazavan@business-review.ro

Ovidiu Agliceru

appointment, Bunea worked as chief financial officer for ING Group, on the ING Insurance Europe segment, headquartered in Amsterdam.

Bunea, 44, started working for ING in 2007, before which she was deputy general director and CFO for Interamerican Group (now Eureko Romania) between 2000 and 2007. She is CFA certified on behalf of the CFA Institute US and has an executive MBA diploma from Washington University, Seattle.

has taken over as general director of Hidroelectrica, replacing Mihai Stanculescu, who can no longer perform his duties for medical reasons. Before the appointment, Agliceru was in charge of the company’s energy production department. Agliceru, who graduated from the Electro-technical Faculty at the Polytechnic Institute in ClujNapoca, has over 30 years of experience in the energy industry.

From 1999-2000 he was deputy technical director at Hidroelectrica’s HQ. In 2006 he was named general chief inspector and from 2009 until 2013 he ran the internal audit division. Between August and October 2013, Agliceru sat on Hidroelectrica’s board of directors.

Theodor Alexandrescu

former CEO of Metropolitan Life Romania, will become CEO of MetLife Golf, headquartered in Dubai, representing five countries: Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates. Alexandrescu has been part of Metropolitan Life since 1999, when he joined the team as sales manager. He went on to advance to chief marketing officer and deputy chief executive officer until 2005 when he became CEO of Metropolitan Life Romania.

Daniela Budurea

has been re-appointed country manger of Western Union for Romania and Bulgaria after a twoyear stint in a senior management position for the company network in Europe. Budurea will coordinate Western Union operations on the two markets. She joined the firm in 2012 in her current role, which she held for seven months before being promoted to a regional level.

Prior to joining the company, Budurea was group country manager at Angelo Costa Romania and led the Angelo Costa International Romanian branch for over eight years

Emilia Bunea

will take over as CEO of Metropolitan Life Romania from Theodor Alexandrescu in July. Alexandrescu has been running the local branch of the insurance company for the past nine years. Prior to the

Calin Dan

Artist and art critic Calin Dan is the new manager of the National Museum of Contemporary Arts (MNAC), having won the contest the Ministry of Culture organized to award the job.

Dan graduated from the Nicolae Grigorescu Arts Institute of Bucharest, History and Arts Theory Section, and is known as an artist, arts critic, curator and museographer. He was also a member of the subREAL artist duo, founded in 1990, with Josif Kiraly. As a curator, Dan has produced numerous exhibitions and was appointed director of the Soros Foundation’s Center for Contemporary Art in Bucharest in 1992.

Before the appointment, the museum had two interim directors following the death of the previous director, arts historian and curator Mihai Oroveanu: Raluca Velisar, who held the position from September 2013 until March 2014 and Liviana Dan, who managed the institution from March until Dan’s appointment.

Catalina Dodu

was named country manager for Atos Romania, the IT integration services provider. She has over ten years of experience in IT project management and was leading the company’s system integration division prior to her appointment as country manager. Previously, she worked as director of product management for Bitdefender. In her new position, Dodu will take over the company’s local strategy, including signing new partnership contracts and expanding the client portfolio.

Mihai Gongu

creative director of GMP Advertising, and Laura Iane, co-creative director and art director at Saatchi & Saatchi Romania, will be on the single channel jury at the 21st Golden Drum festival. The president of the single channel jury at this year’s Golden Drum is Andreas Pauli, chief creative officer at Leo Burnett Frankfurt. Mihai Fetcu, creative director of Geometry Global Bucharest, will serve on the multi channel jury at the festival.

Alina Georgescu

has been appointed sales director of cloud broker Ymens.

She is an experienced IT professional, having spent over ten years in the business.

Georgescu previously coordinated business development and sales strategies for Global Business Services and IBM Romania and Moldova. The first order of business after Georgescu assumes her new responsibilities will be to launch a new cloud computing solution, Ymens ECM, meant for enterprise content management.

She will develop the company’s commercial strategy and consolidate Ymens’s position on the cloud market.

Mona Opran

chief operating officer at Centrade Saatchi & Saatchi, will serve on the Euro Effie festival 2014 jury. The awards are pan-European, judging on the basis of effectiveness. Since April 2013, she has been COO of three affiliated companies: Saatchi & Saatchi, Saatchi & Saatchi X and Pantone.

Henk Paardekooper

CEO of RBS Romania, has extended his responsibilities, having been appointed head of Central and Eastern Europe for RBS. Paardekooper has been country executive of RBS Romania since 2012.

His career consists of 25 years of international experience in corporate, investment and consumer banking.

The additional countries for which Paardekooper will assume responsibility are Russia, Turkey, Poland,

Czech Republic, Slovakia and Kazakhstan.

Ioan Rus

is the new transport minister. He is replacing Dan Sova, who announced his resignation last week. Rus, 59, has been a member of the Social Democracy Party (PSD) since 1994. Between 2000 and 2004 he was an internal affairs minister in the Nastase government and in 2003 he served as deputy prime minister. He was a prefect of Cluj county from 1996 and in 2000 Rus became president of the county council, a position he held until his appointment as internal affairs minister.

Serban Stanoiu

has taken over as director of acquisitions for Domo Retail. With over 15 years of experience in acquisitions and retail, Stanoiu is expected to develop the product portfolio according to market demands and Domo’s positioning.

Stanoiu has worked for Domo before, between 2005 and 2011, when he was chief product manager and then retail manager.

Ivan Tomov

is the new country managing director of Baxter Romania& Bulgaria, based in Bucharest.

The holder of an MD degree from the Medical University of Plovdiv, he had a ten-year medical career in internal medicine and gastroenterology, before joining the pharmaceutical industry some 15 years ago. Since then, he has held different positions with increasing responsibilities at multinational pharmaceutical companies. Tomov has worked as marketing manager with Pfizer Bulgaria, business unit manager for oncology at Roche Bulgaria, and most recently, as of January 2012, country manager of Baxter Bulgaria.

www.business-review.eu Business Review | June 30 - July 6, 2014

8 INTERVIEW

Bucharest’s leisure market starts to pick up After the Howard Johnson Grand Plaza Bucharest increased its business by approximately 4 percent last year, in 2014 the target is to at least double the 2013 growth, Sonia Nastase, the hotel’s general manager, told BR. Business travel has remained constant, meaning that growth is coming from increased tourism to the capital. ∫ SIMONA BAZAVAN

CV Sonia Nastase

Have market conditions for four- and five-star hotels in Bucharest changed since the beginning of the year?

Yes, there have been changes, and this became noticeable last September when the George Enescu Festival was held. Actually since September last year occupancy rates have increased to levels we hadn’t seen in years. We are once again seeing occupancy rates of above 80 percent on weekdays. As a result, last year’s overall growth was mainly generated by good results in the last months of the year. And this came in addition to the fact that September, October and November are generally good months for the industry. Last year we saw revenues go up by approximately 5 percent, but growth in the last quarter was more consistent.

The beginning of this year has also been good for business in spite of the fact that January and February are slow months in this industry. We and the entire market reported growth.

Generally, the market posted growth of 5 percent in arrivals and 8 percent in accommodation nights in the first four months of 2014. The average daily rate still has some catching up to do but there is good news in terms of occupancy. There is a higher volume of tourists and as of last year rates also began to stabilize and I expect them to pick up over the next period.

Why are more tourists coming to Bucharest?

Mainly, it is the result of some longterm efforts that are now bearing fruit.

Nastase began her career at World Trade Center Bucharest in 1996, as event and international fair organizer, then moved on to sales and marketing at Athenee Palace Hilton Bucharest between 1997 and 2003. She later joined Howard Johnson Grand Plaza Bucharest where she served as director of sales and marketing from the opening of the hotel until 2006.

Nastase later entered consultancy as senior associate at Trend Hospitality.

She is a graduate of the Polytechnic University of Bucharest and of the Romanian-Canadian MBA program.

Photo: Mihai Constantineanu

And where is this growth coming from?

In our case, it has come from an increasing leisure segment. And I am talking mostly about foreign tourists coming from countries such as Israel, Germany, Spain, Portugal, Japan and the UK. There was a 10 percent increase in the first four months of this year compared to the same period of last year, underlining that January and February are slow months, so March, April – and May – were mostly responsible for this.

Has served as GM of Howard Johnson Grand Plaza Bucharest since 2009.

Her career in the hospitality industry goes back over 15 years, both in the operational area and in consultancy.

Back in the good old days, so to speak, meaning 2007 and 2008, Bucharest was not attractive for the leisure market in terms of rates. So tourists preferred other destinations which were more price-friendly. Over the following years things changed as promotion and lower rates, triggered by competitiveness, started to produce effects. Bucharest has become more affordable and has the advantage of being a new destination for many markets. Accommodation is more affordable and there are more and cheaper flights to and from Bucharest.

What about the contribution of business travel?

We have registered a slight increase compared to last year which means that the growth we have been seeing since the beginning of the year is generated mostly by leisure. For example, today (e.n. Wednesday, June 18) our occupancy rate is above 90 percent and this comes both from guests travelling for business and several tourist groups. It is promising.

Over the summer we expect a similar evolution given the number of reservations we have for tourist groups. And summer is a slow

period for tourism in Bucharest.

Is Bucharest an actual destination for leisure tourists, or are they in transit?

Bucharest continues to act as a hub. It is included in tours for organized travel groups. They stay in the city for one or two days and the rest is spent in the country – travelling to Brasov, Sighisoara, Sibiu or the monasteries to give just a few examples. The capital is also included in tours to Bulgaria.

Bucharest is not yet a city-break destination for individual travellers.

There is still room for some more support for this, but if the trend is maintained at the level of the past two-three years, we may find that in a year or two we will be on the map of European city-break destinations.

www.business-review.eu Business Review | June 30 - July 6, 2014

What are the top Bucharest destinations you would recommend to a foreign tourist visiting the capital for the first time?

There are many places and a lot of activities to do. First of all, I would recommend the Old Center, which looks great and is similar to what can be found elsewhere in Europe. Then, I would recommend the Romanian Village Museum and the Museum of the Romanian Peasant, which are great places to see and there aren’t many similar ones abroad. The city bus tour is also a good option. At the weekend I would recommend several clubs.

There are art galleries to see, such as Galateca. And besides all this, there are all sorts of events taking place – art, cultural and street events such as the recent Street Delivery. Marathons are also popular among foreigners. All this gives Bucharest a dynamic and vibrant feel.

What is the ratio between leisure and business travel in the hotel’s accommodation?

In the year-to-date, business travel generated 40 percent of the total room nights, events and conferences generated 15 percent and the rest comes from leisure. Leisure has increased its share since last year. Again, this came from a higher number of leisure tourists and not by drops in the other segments. The market mix

INTERVIEW 9 is changing and the outcome is positive. For example, at industry level, between January and May the average daily rate was down by 4 percent due to a higher number of leisure tourists, but occupancy was up 15 percent. This led to the revenue per available room increasing by 10 percent.

As the contribution made by business travel is the highest and has limited room to grow, the main opportunity was for leisure and the MICE industry (e.n. meetings, incentives, conferences and events), two markets which have not yet reached their full potential for growth.

Health tourism is another opportunity because of lower costs. We are currently looking into this. And we are also looking at new markets and targeting Asia, Latin America and the Nordic countries. We want to develop these markets by attending trade fairs and creating packages for agencies which are themselves focusing on these markets. Already there are positive signs.

The hotel industry is complaining that the local MICE market is considerably underdeveloped. Do you see things changing?

It is very far from reaching its potential. MICE represents a huge opportunity and there is room for growth.

Someone travelling for an event such

as a conference will spend more than a tourist travelling for leisure. At EU level, a MICE participant spends an average of EUR 430 per day, whereas in Romania the figure stands at EUR 250, according to some market reports.

There have been more events than in previous years, but these were strictly connected to EU affairs and were mostly conferences organized by the authorities. In the private sector, there haven’t been events such as company-organized congresses as was the case a few years back. There aren’t high-capacity event halls in Bucharest. The good news is that lately there has been some promotion of Bucharest as a MICE destination and several companies are relocating administrative activities to Romania.

In time all this should produce effects and we should see more MICE activity.

What was the hotel’s turnover last year and did it post a profit?

It was around EUR 8 million, up by 4 percent against the previous year. Out of the total revenues, about 55-60 percent was generated by accommodation and the rest by food & beverage.

So far this year, revenues are up by 8 percent and we expect this trend to continue to yearend. We won’t have the George Enescu Festival this year

but given that growth has been stable so far, this should not be a problem.

Yes, we’ve been posting a profit.

How has the hotel’s occupancy evolved so far this year?

In May and June, on weekdays, occupancy increased to around 80 percent.

It drops to approximately 40 percent at the weekend. For the whole of 2013 it stood at around 50 percent. This year we are heading towards 60 percent.

To sum up, what are your objectives this year?

To keep up the good work we’ve been doing as a team, to strive for more value added in services delivered to customers and to continue to add innovation and the personal touch in our hospitality services.

We will remain consistent in our approach to strategy in the last three years and we will keep focusing primarily on adaptability and promptitude in dealing with our customers and partners, as well as maintaining standards of service delivery at the operational level. The prospect of profitability is still closely linked to our ability to develop new segments of customers, keeping and increasing the potential already in the portfolio. simona.bazavan@business-review.ro

www.business-review.eu Business Review | June 30 - July 6, 2014

10 FOCUS

China aims to fill key local energy projects’ financing void The Industrial and Commercial Bank of China (ICBC), the world’s biggest lender with EUR 3.2 trillion in assets, last week signaled its interest in financing large energy and infrastructure projects in Romania following discussions with the government. The country has been struggling for years to find backers for these projects, worth over EUR 10 billion, following a lukewarm response from European banks. ∫ OVIDIU POSIRCA

Chinese want firm guarantees According to Robert Ghelasi, managing partner of Energie Finanzierung und Kapital (EFK), which specializes in investment banking services for the energy sector, European banks could have financed the reactors if the consortium had not disintegrated. He said that the utility firms would have worked with their own banks on the project.

“Whoever is investing now in energy does not have all the elements. You cannot make a clear business plan. The market needs to stabilize and become

Photo: Mihai Constantineanu

Ovidiu Chiorean, the managing partner of Crosspoint Investment Banking, pointed out that ICBC’s financing intention was a “natural step” given the interest of Chinese companies in developing Romania's infrastructure.

Romania intends to start building two more nuclear reactors seven years after the second one became operational in Cernavoda. Although the government had managed to attract a consortium of six large utility firms back in 2008, the investment agreement was dropped at the end of 2013, when utility firm Enel and steelmaker ArcelorMittal announced their withdrawal from the project. They were the last ones to sell their minority stakes in the project company EnergoNuclear.

Valeriu Binig director, Deloitte Romania

Robert Ghelasi managing partner, EFK

more predictable,” said Ghelasi. He suggested that the local market could become attractive to Western banks once Romania fully deregulates electricity prices for households (which should be completed by 2017) and further government stakes in energy companies are sold. Commentators noted that Chinese companies are tough negotiators, looking to obtain clear guarantees that their investments will be recovered.

“The state does not grant any guarantees (e.n for any company) entering Romania, so we do not have this concept of guarantees for investors. In short, there are state aid schemes for various industries, including for renewable en-

ergy (green certificates), and this is what the state provides,” Georgiana Singurel, associate partner at Reff & Associates, the legal arm of professional services firm Deloitte Romania, told BR. So far Chinese energy companies have ventured into the Western Balkans, investing in countries that are not EU members. These states can offer government guarantees because there is no risk of them being declared illegal state aid, according to Valeriu Binig, director, financial advisory services/energy & resources/corporate finance at Deloitte Romania.

China investments in CEE deal value (USD bln)

British model for nuclear financing

Source: Grisons Peak

China General Nuclear Power Corporation (CGN) is the only potential investor that has made public its interest in developing two nuclear reactors at Cernavoda, which would require an investment of around EUR 6.2 billion.

The Chinese company has extended the letter of intent with state nuclear producer Nuclearelectrica for this project until December 2014.

Dragnea said the new reactors would be built using Canadian technology. The two operating Candu 6 reactors have a combined capacity of 1310MW and cover close to 20 percent of Romania’s annual electricity consumption. The proposed investment should double the capacity.

Ghelasi said that Chinese banks look to provide cheap finance to projects developed by Chinese companies. “Their equipment is usually financed at low in-

terest rates, close to 0. It is less based on efficiency, and more on the fact that they can export equipment from China.”

He added that it was surprising that a Chinese lender was willing to finance projects using Canadian technology.

CGN is also minority shareholder in the Hinkley Point C nuclear project in the UK alongside China National Nuclear Corporation. The two reactors will be built by France’s EDF Energy and are expected to cost around EUR 20 billion.

The deal is based on a contract for difference, similar to a feed-in tariff. EDF is set to receive GBP 92.5 billion for each MWh for 35 years. If wholesale electricity prices fall, the government will cover the difference, and if they exceed this level, the investor will have to pay the surplus back to the government.

“Romania is carefully watching how the contract for difference proposal from Hinkley Point (e.n pans out),” said Binig of Deloitte.

Last year, the European Commission, the executive arm of the EU, started an investigation into whether EDF’s contract for difference breached state aid legislation. The Commission said that EDF would receive as much as EUR 22 billion in support above the building costs during the lifetime of the project.

China seeks to build strategic role in CEE Last November, Bucharest hosted an investment forum that gathered topranking Chinese officials, including Prime Minister Li Kegiang, and his counterparts from 16 CEE-based countries. China announced it had secured government-related loan agreements worth USD 10.9 billion with Romania since November, making it the biggest potential investment destination in the region.

Aside from the nuclear projects, the Asian country inked a raft of memoranda with the Romanian government on projects such as the high-speed railway linking western Romania with Constanta, at an estimated cost of EUR 11 billion, and the pumped-storage hydroelectricity plant in Tarnita-Lapustesti, which would require an investment of around EUR 1.2 billion. Since November, Romanian ministers have been on official visits to Beijing to negotiate the investments. ovidiu.posirca@business-review.ro

www.business-review.eu Business Review | June 30 - July 6, 2014

FOCUS 11 SMES

Cluj-Napoca leads regional office market ranking

Business Review launches second edition of The Practical Guide for SMEs

Over 60,000 sqm of modern office space will be delivered this year outside Bucharest, the bulk of which, more than 50,000 sqm, will be in Cluj-Napoca.

B

Photo: Mihai Constantineanu

Cluj moves: phase two of The Office in Cluj-Napoca, a class A project, is due to start soon

∫ SIMONA BAZAVAN With its large and well trained labor force, good infrastructure and attractive occupancy costs, Cluj-Napoca, Romania’s second largest city, has grown to become the second most attractive hub after Bucharest for BPOs and SSCs, say real estate representatives. The office market is keeping up with the rising demand and this year should see the delivery of more than 50,000 sqm of modern office space, which is the equivalent of almost half of the city's existing stock.

“Demand is coming from companies

Cluj-Napoca office market l Modern office stock (class A and

B): 119,000 sqm*

l Class A office space: 51% of total

modern stock, the rest is class B

l Modern office buildings: 19 l Modern office space per 1,000

capita: 367 sqm

l 2014 pipeline: 4 projects totaling

over 50,000 sqm (GLA)

l Headline rents: EUR 12-EUR

14/sqm/month (class A), below EUR 10/sqm/month for lower quality office space l Service charge: EUR 2-3.5/sqm/month l Lease period: typically 3-5 years l Vacancy rent: below 10% for class A office space *as of May 2014 Source: JLL Romania

that are already present in Cluj-Napoca, companies which are familiar with the country, the city, the local mentality and legal system. So it is organic growth.

They either expand their existing departments or they relocate new activities here,” Romanian businessman Ovidiu Sandor told BR. This May, he and real estate investment fund New Europe Property Investments (NEPI) delivered the first building of The Office, a class A project in the city's downtown area. EUR 26 million was invested in the first phase (in 19,000 sqm of built area) and the owners are now getting ready to start the second phase (18,000 sqm). The total project will feature 54,000 sqm and should be completed by 2016. Sandor, who is a shareholder and the president of Moda-Tim, is also the developer of the City Business Centre office project in Timisoara, which he sold to NEPI in early 2012 for an estimated EUR 90 million.

In addition to The Office, 2014 should also see the delivery of United Business Centre Tower (10,000 sqm) from Iulius Group, the second phase of Liberty Technology Park (13,400 sqm)

by Fribourg Development and the second phase of Cluj Business Center (8,000 sqm) from Felinvest, according to JLL data.

Given the huge demand for office space, from existing firms looking to expand as well as from newcomers, the market will absorb all this, believes Sandor. And it is the attractiveness of the local labor pool that keeps bringing in new business. “Foreign companies come to cities like Bucharest, ClujNapoca or Timisoara because of their human resources. And Cluj-Napoca has 50 percent more college graduates than Timisoara, for example. This mat-

ters, as does the fact that according to a report, about half of these graduates plan to remain in the city after completing their studies, compared to only 20 percent in Iasi, for example,” he added. In addition to this, the city has got a lot of good publicity over recent years and has managed to earn itself the image of a dynamic business destination.

And while the capital continues to get the lion's share in terms of new business, there are signs that things are changing. “Bucharest is no longer by default the first option for investors.

And there are two reasons for this. First of all, the labor force is about 30 percent more expensive than in Timisoara or Cluj-Napoca. Secondly, in these cities staff turnover is lower than in the capital. There is a different mentality here,” outlined Sandor.

In the future, the businessman expects Cluj-Napoca and other cities in Romania to continue to attract companies active in the IT sector and engineering, meaning all technical areas except IT. “The service sector is also strong in Cluj-Napoca. These are the main areas where we think we will see more players. And I also think there will be more American investors. ClujNapoca already has a stronger American presence than Timisoara. I wouldn’t be surprised to see more American investors come to ClujNpoca,” he concluded.

usiness Review has launched the second edition of The Practical Guide for SMEs, a 32-page booklet designed to provide a collection of helpful insights on the main area of interest for small and medium-sized enterprises.

This 2014-2015 edition of the guide covers such topics as cash flow management and financing options available to this business sector; HR strategies with a focus on employee retention and developing a company culture; real estate solutions adapted to the needs of SMEs; IT solutions; and the benefits of getting involved in corporate social responsibility.

The guide features an introductory interview with Anca Laura Ionescu, state secretary at the Department for SMEs, outlining the main measures that should be taken in support of such companies. Commenting on some of the challenges facing local SMEs, the state secretary says, “Common to both our country and other EU members […] are: frequent changes in the legal and administrative framework; difficult access to financing, guarantees, markets and innovation; burdensome taxes, authorizations and licenses, in addition to a long period taken to obtain them; lack of qualified workers and an under-developed entrepreneurial culture.”

simona.bazavan@business-review.ro

More on business opportunities in Cluj in this week’s dedicated supplement.

The guide is available to Business Review subscribers. ∫

www.business-review.eu Business Review | June 30 - July 6, 2014

12 CITY

Cooling off at Bucharest’s swimming pools Summer is officially here, although one might not think so judging by the weather over the last couple of weeks.

But with the rainy period hopefully behind us, BR brings you a selection of better places to get wet as the mercury rises – Bucharest’s top swimming pools.

OANA VASILIU

Aqua Garden Militari Residence

Address: 70 Rezervelor Street, Rosu, Ilfov Over 900 sun beds await guests around the two outdoor swimming pools near Bucharest, along with facilities for children such as a playground and baby pool. The tropical bar sells fruit juices and the restaurant serves both Romanian and Mediterranean food.

Address: 1 Mircea Eliade Blvd The resort, situated in a quiet area of Bucharest, has an indoor pool equipped with a state-of-the-art water filtration and heating system. It has a special area for sun bathing, if you want a natural tan, and there are also facilities for children. The entrance fee is RON 80 per day, and one, three, sixmonth and one-year subscriptions are available.

Club Snagov

Courtesy of Vitality Wellness Club

The capital is not awash with places to take a dip, so we have put together a list of resorts which offer a good splash, where you can unwind with a refreshing cocktail or sate your postswim hunger with a bite to eat.

In south Bucharest, approximately 6,000 pool lovers per year use the wellness facilities of Daimon Club, which has an indoor swimming pool inaugurated in 2005, and an outdoor one in use since 2008, says Anca Ivanov, the club’s PR & marketing coordinator. The number is expected to rise by another 500, for all facilities, including the wellness club, restaurant, tennis court, football pitch and the club zone, added Ivanov.

The other side of the city, in the north, at Pescariu Sports & Spa, the swimming pool was opened in 2012, and is considered one of the most modern and luxurious pools in Bucharest, with various facilities and special sections, says Valentina Vasilescu, the club’s marketing manager. As summer season started later than expected, Pescariu Sports & Spa estimates growth of only 10-15 percent in the number of pool clients this year.

Moreover, the latest pool in town is also situated in the north. Vitality Wellness Club, from Ramada Hotels, has already sold 300 subscriptions for the whole facility, with another 500 still available, says Ben Yehuda, general manager of Ramada Plaza and Ramada Parc. At Vitality, the indoor semi-Olympic pool is cleaned with organic chlorine which club officials say is made from salt and is not harmful to the body. In mid-July the outdoor pool will also be opened.

Club Floreasca

Address: 1B Nufarului Street, Snagov Sat, Ilfov If you want to be in water while you rehydrate, try the palm tree-adorned Snagov Club Pool Bar. About 25 minutes away from Bucharest, the bar serves a range of cocktails which you can also enjoy on one of the chaiselongues, amid palms, music and fun.

Crowne Plaza Hotel

Address: 1 Poligrafiei Blvd In the north of the city, the hotel boasts a relaxing indoor heated pool, which comes with a summer terrace surrounded by greenery, and chaiselongues where you can sunbathe. The entrance fee is RON 65 from Monday to Friday. Subscriptions also include access to the gym, sauna and massage area.

Daimon Wellness Club

Address: 10 Calea Piscului Street The club awaits its visitors with two swimming pools, outdoor and indoor.

A day pass costs RON 60 at weekends, or RON 40 from Monday to Friday. If you want to get in shape for your summer holiday, there is also fitness, spin and a sauna. Ask about the discounts for family members and children.

Divertiland

Address: 1st Divertismentului Street, A1 Bucharest-Pitesti highway, km 13, 077040, Chiajna, Ilfov This place promises food courts, inflatable tubes, sun beds, lockers, clean water, a team of lifeguards and first aid unit, plus shops and an ATM. Children can have some aquatic fun at the Elephant Springs or the Hippo Pool, while adults brave the water slides, the Rainbow Tower, Waterfall and Kilimanjaro.

Going swimmingly: dive in and cool off in the capital

If you’re in the mood for more extreme pursuits, try Bungee Dome – the jumper attraction. Entrance costs RON 50 on weekdays, RON 80 at weekends.

Subscriptions come with discounts.

Pescariu Sports & Spa

Address: 3 Glodeni Street Since opening in 2012, this place has established itself as one of the most modern and luxurious pools in Bucharest, with a Jacuzzi, fun jets and illumination systems, as well as a VIP area, restaurant and bar zone and other facilities. A day pass costs RON 60 on weekdays, and RON 100 at weekends, while the VIP zone charges RON 300 and RON 450 respectively.

Saftica Resort

Address: DN 1 road, Saftica village, Ilfov A three-ring swimming pool for total relaxation 10 km from Bucharest, the Aqua del Mar pool offers leisure, play and swimming zones, but the most indulgent option is to get a cocktail from the pool bar and enjoy it on an inflatable. Prices go from RON 20 to RON 40.

Strandul Tineretului

Address: 1 Primo Nebiolo The pool is situated in the Kiseleff zone,

on a secluded street that leads you to a summer hot spot. Entry fees are pretty low for the area, at RON 20 from Monday to Friday and RON 30 at weekends.

The swimming lessons are a popular option.

Vitality Wellness Club

Address: 3-5 Poligrafiei Blvd Vitality Wellness Club is the latest facility to open up in the north of Bucharest from Trend Hospitality, including an indoor semi-Olympic pool, a fitness room, dry sauna and wet sauna.

In mid-July an outdoor pool, children’s playground, all-season Jacuzzi, relaxation zone with 80 sun beds and a terrace will join the mix.

Membership packages run from EUR110/daytime/month to EUR 1,090/full-time/year.

Waterpark

Address: 255A Calea Bucurestilor, Otopeni, Ilfov, near Otopeni Airport Offering unlimited splashing fun, Racer, Twister, Turbo Slide, Kamikaze, Super Ride and Splash Crash are the tubes recommended by Rino, the water park’s mascot.

The ideal destination for a day of wet and wild fun in the sun. oana.vasiliu@business-review.ro

www.business-review.eu Business Review | June 30 - July 6, 2014

CITY 13

Chipping in: activists help revitalize Constanta’s casino

The Art Nouveau building standing on a promenade beside the Black Sea looks grandiose, but as one gets closer, the home of Casino Constanta reveals itself in a sad and unexpected way: broken windows, curling paint and rusty railings, not to mention the dilapidated interior. BR found out how the NGO Calup is trying to spruce up the majestic edifice, with the help of the public through crowd-funding.

OANA VASILIU

Courtesy of Calup

Shipshape: the CaziNOU project is seeking to restore the flagship coastal building to its former glory

During the day, the casino will open its doors to the public, providing the setting for workshops and other activities for visitors of all ages. In the evening there will be jazz concerts, film screenings, theater and ballet shows, classical and electronic music, all accompanied by projections on the casino façade. Visitors will be able to enter the casino, where they will be given information about its history and learn the hidden stories of this symbolic building, which will be told in an alternative manner through artistic installations and interactive educational material.

Costs of the facelift

The CaziNOU program

According to Calup, essential works include securing areas currently in a critical state, fixing the holes in the floors and roof and reconnecting the building to electricity and water mains.

The costs of sanitization and halting the deterioration of the structure reach about EUR 10,000. To help raise this sum, the public can donate through the crowd-funding platform www.crestemidei.ro. By the time BR went to print, the sum raised was almost EUR 2,400 from 108 supporters.

Individual donors can choose from various packages offered by the organizers, from handbags and t-shirts to one’s name on a donor’s plaque at the casino entrance.

For ten days, activists will put the building back on the cultural scene.

oana.vasiliu@business-review.ro

Courtesy of Calup

Originally commissioned by King Carol, it became a symbol of the coastal city soon after 1910. But its glory days were not to last. During the Second World War, the building was used as a hospital, then under the post-war communist regime, it operated as a restaurant. By 1990, the place was too expensive to maintain and the building has been closed ever since, deteriorating day by day.

But perhaps not for much longer. “I met a local counselor in Constanta who showed interest in our idea, and then I devised a project draft that was approved a few months later. We have a signed agreement with the municipality of Constanta where we get access to the space and the right to organize a cultural event inside the casino, besides support for reconnection to water and electricity,” says Cristiana Tautu, co-founder of Calup.

A group of activists promoting urban regeneration, Calup has started a crowd-funding campaign to save the edifice, opening the casino from August 1-10 for a packed indoor cultural program. The NGO wants to re-establish the iconic status of the building for a wide audience, and show that its reopening has strong public support. It is seeking to provide a safe venue for public events and halt the further decline of the building, create an educational and cultural platform, make the venue an urban and social catalyst, and return to the casino its status as a national landmark.

The updated list of certified monuments, released by the Ministry of Culture in October 2010, moved the casino into category A, meaning that it is a national heritage building. “The city of Constanta, including also the resort of Mamaia, is home to 154 listed monuments, according to the Ministry of Culture, but the number is surprisingly small for the age and the importance of the town,” added Tautu.

Additionally, she told BR that the ministry was interested in a dialog with Calup NGO about the casino, but the NGO has not yet requested any type of funding.

Lucky streak: Casino Constanta opened its doors in 1910, and with its size, seaside location and marine-themed decor was a big hit with the well heeled

www.business-review.eu Business Review | June 30 - July 6, 2014

14 CITY

DON’T MISS / BUCHAREST JAZZ FESTIVAL George Enescu Square, Hanul Gabroveni July 2-6

Lucian Ban, curator of the festival

Curated by pianist Lucian Ban, Bucharest Jazz Festival (BJF) joins the international circuit this year, after its membership application to the prestigious Europe Jazz Network was approved. The festival is produced by the Center for Cultural Programs of the City of Bucharest.

The network includes 93 organizations in 29 countries that aim to encourage, promote and support creative improvised music in a broad European perspective.

“From true legends of jazz such as the Dave Douglas Riverside Quartet, to Carmen Lundy, one of the America's most celebrated contemporary songstresses, and John Scofield, one of the three greatest jazz guitarists of our times, BJF 2014 puts Bucharest on the European jazz map. A highlight of our festival is a renewed focus on

the Romanian jazz scene featuring some of the best local artists from all generations,” said Ban. Legendary and contemporary masters of music are readying themselves to take to the stage at this year’s festival. The famous trumpeter Dave Douglas will be headlining as part of his quartet Riverside Quartet, alongside other major names of modern jazz, such as Lundy, John Scofield Überjam and the Julia Hülsmann Quartet.

For five days, the main stage in George Enescu Square will also be graced by some of the top musicians on the local jazz scene. Saxophonist Alex Simu, known for his world music projects (ARIFA), returns as the leader of an authentic jazz combo.

A special Romanian project, Bucharest Jazz Orchestra is led by

trumpeter Sebastian Burneci. The festival stage will also host a true postpunk jazz group, in the form of Mihai Iordache’s septet.

Other highlights include Romanian Jazz Collective, the first ensemble dedicated exclusively to the Romanian jazz songbook, a modern reinterpretation of classical compositions

by Richard Oschanitzky, Johnny Răducanu, Marius Popp and many others.

Bucharest Jazz Festival 2014 will also feature special events, such as book and disc launches, the jazz on film series, meetings and debates, and a jazz poster exhibition, which will take place at the recently restored location of Hanul Gabroveni in the Old City Center. oana.vasiliu@business-review.ro

Program July 2

July 3

July 4

July 5

July 6

20.00 – Iordache

20.00 - Mike Krstic TRIO feat.

Johnny Bota & Ioan Minda Serbian pianist Mike Krstic, Romanian bass player Johnny Bota and Austrian drummer Ioan-Radu Minda make up this much loved combo, giving jazz standards a classy chamber refinement.

20.00 - Ana-Cristina Leonte Quintet This new generation quintet includes some of the most interesting names on today’s local jazz scene: saxophonist Alex Munteanu, pianist Albert Tajiti, double bassist Michael Acker and drummer Tavi Scurtu.

20.00 - Romanian Jazz Collective featuring Sorin Romanescu

20.00 - Alex Simu Quartet Romanian clarinet and saxophone player Alex Simu is one of the youngest innovators of the music he creates and plays, as well as of his own instrument. The Alex Simu Quartet channels a reflection on the present, a perfume of the past, and a glance towards the future.

Iordache plays jazz, funk and free improvisations, guided by the laws of hazard.

Saxophonist Mihai Iordache formed the band in 2003.

21.30 – Bucharest Jazz Orchestra

Led by the trumpet player Sebastian Burneci, Bucharest Jazz Orchestra is an instrumental ensemble of top musicians from all over Romania, as well as Italy \and the Republic of Moldova.

21.30 - Julia Hülsmann Quartet Pianist Julia Hülsmann and her trio, which includes bass player Marc Muellbauer and drummer Heinrich Köbberling, have been shaping German contemporary jazz for the past 17 years.

21.30 – Dave Douglas Riverside Quartet The quartet is co-led by trumpeter Dave Douglas and Chet Doxas, on clarinet and tenor saxophone, with a rhythm section comprised of bassist Steve Swallow and Jim Doxas on drums.

FOUNDING EDITOR Bill Avery PUBLISHER Anca Ionita EDITOR-IN-CHIEF Simona Fodor JOURNALISTS Otilia Haraga - senior journalist, Simona Bazavan, Ovidiu Posirca, Oana Vasiliu COPY EDITOR Debbie Stowe PHOTO EDITOR: Mihai Constantineanu

ISSN No. 1453 - 729X

LAYOUT Beatrice Gheorghiu ART DIRECTOR Alexandru Oriean

Started by saxophonist Cătălin Milea, the Romanian Jazz Collective group explores the song book of local jazz, inspired by both flagship compositions and lesser known national genres.

21.30 - Contemporary Jazz Masters Carmen Lundy With a career going back over three decades, Carmen Lundy is a classic jazz singer with an adventurous style and an imposing, fluid and mobile voice.

EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi SALES & EVENTS Sales managers: Ana-Maria Nedelcu, Oana Albu, Raluca Comanescu MARKETING Ana-Maria Stanca, Ana Maria Andrei, Iulia Mizgan PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat

21.30 - Contemporary Jazz Masters John Scofield Uberjam The artist is considered to be one of the three greatest jazz guitar players of our times, along with Pat Metheny and Bill Frisell.

PUBLISHER Bloc Notes Media ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 EMAILS editorial@business-review.ro sales@business-review.ro events@business-review.ro