Business Review No. 35, October 10-16

Interview: Mihai Popescu, CEO of Aviva Asigurari de Viata, says that the cri-

FOCUS ON POWER

sis has made his company deliver higher quality services to its customers, while reorganizing to increase efficiency »page 18

WHILE LEGAL ISSUES REMAIN A HURDLE, POWER COMPANIES ARE FORGING AHEAD WITH INVESTMENT IN SMART AND GREEN ENERGY

ROMANIA’S PREMIERE BUSINESS WEEKLY

»PAGE 16-17

October 10 - 16, 2011 / VOLUME 16, NUMBER 35

NEWS

Once a hotspot for Austrian investment, Romania now has a regional fight on its hands to attract more capital, says Rudolf Lukavsky, commercial counselor of the Austrian Embassy

Mall systems go GTC Romania opens a EUR 66 million shopping center in Arad » page 4 LINKS

Finnished?

What fate awaits the 2,200 Nokia employees now the mobile phone giant has axed its Jucu factory? » pages 15 RESTAURANT REVIEW

Leban-easy does it

»page 12

Does Bucharest’s latest Lebanese restaurant fall into the same trap as the others? » page 20 PLUS Trier he comes: controversial director Lars von Trier is back with a novel end-of-days film » page 121 Plan your week’s entertainment with BR’s cultural calendar » page 22

Photo: Laurentiu Obae

PAST ITS PEAK?

www.business-review.ro Business Review | October 10 - 16, 2011

BUSINESS AGENDA October 10 09:30 Medi XPRIMM will organize the International Forum of Catastrophic Risks at Radisson Blue Hotel. Representatives from the Romanian administration, Interior Ministry and insurance companies will attend. By invitation only.

October 10 10:00 Business Edu will organize an event where specialists will debate the concept of Learning and Development in business at Van Gogh café.

October 11 11:00 JTI and DraftFCB will organize a press conference to mark the launch of an anti-smuggling campaign at Van Gogh café. Sorin Blejnar, president of the National Fiscal Administration Agency, and JTI representatives will attend. By invitation only.

11:00 Volksbank organizes its first press conference under a new brand. The event takes place at Crowne Plaza hotel. By invitation only.

October 13 10:30 Mellon Romania will organize a press conference to mark 10 years of activity on the Romanian market at Electromagnetica Business Center. By invitation only.

October 13 11:00 Carrefour Group Romania and Angst will organize a press conference to mark the launch of a new franchise at the Romanian Peasant Museum Club.

By invitation only.

October 13:00 14:30-19:00 The British Romanian Chamber of Commerce will organize a seminar on Romania's renewable energy potential at Unicredit Bank AG, London. By invitation only.

October 18 The Romanian Association of Operational Leasing will organize a press conference on the growth potential of the leasing market and the results in Q3 at LacertA Winery. By invitation only.

October 27 09:00 EURISC Foundation, together with associates in the field of energy and infrastructure security, will organize a conference on the protection of critical infrastructure at InterContinental Hotel. By invitation only.

NEWS 3

NEWS in brief INVESTMENT Pirelli and Continental get EUR 10.6 mln of state aid The Finance Minister has announced that around EUR 10.58 million will be disbursed to Continental and Pirelli through a state aid scheme.

The first project to benefit, developed

by Cord Romania, a company jointly owned by the two tire firms, will involve building a new production hall in Slatina, Olt County, to extend the tire manufacturing business. The investment totals EUR 27.2 million, of which the Romanian state will contribute EUR 6.2 million. It will create 200 jobs, adding to the existing 373. The second project, developed by ContiTech Fluid Automotive, a division of Continental, involves building an industrial hall and a production line for air and water hoses for the auto industry in Carei, Satu Mare County.

The EUR 15.1 million investment will expand the current manufacturing facilities.

Some 300 new jobs will be added to the existing 847. Romania will hand out EUR 4.4 million in state aid for the project.

The two new agreements join the other 22 that have been signed since 2008, with EUR 329 million allocated in total in state aid. To date, state aid of EUR 110.2 million has been disbursed to the completed projects of Renault Mecanique Romania, Aaylex and Automobile Dacia.

Gazprom wants natural gas investments in Romania Gazprom is looking to sign direct contracts with the Romanian authorities for natural gas imports, removing intermediaries.

The president of Gazprom, Aleksei Miller, made known the Russian energy giant’s intention during a meeting with the Romanian minister of the economy, commerce and business environment last wee.

Gazprom is also looking to invest in Romanian electricity plants that will be gasfed. The Russian company is considering investing in underground natural gas deposit facilities.

Toro Company opens local plant The Toro Company has opened a factory near Ploiesti that will manufacture microirrigation systems to serve agricultural fields, vegetable growers, orchards and vineyards in Europe, the Middle East and Africa (EMEA). The new factory will also support the firm’s manufacturing facility in Rome, Italy.

The Romanian factory, which covers 12,900 sqm, will initially employ 35 people.

The number is expected to increase to 100 by 2013. Toro is trying to set up a center of production and export in Eastern Europe, and Romania will serve as an excellent location for this factory, according to Judy Altmaier, operations vice-president for the Toro Company.

TELECOM UPC’s EUR 5 mln fine for abuse of dominant position upheld Telecom operator UPC Romania must pay

a fine of EUR 5 million for abuse of dominant position in Bucharest, which was handed down by the Competition Council in 2006, according to Mediafax newswire.

The sentence was confirmed by the High Court of Justice. However, the company escaped having to pay another EUR 2 million fine that was levied in December 2006. “In the same investigation, the Competition Council also fined UPC Romania and RCS&RDS (the latter as successor of HI-FI Quadral and TVS Holding) RON 8 million for being part of a cartel whose aim was carving up the cable services market in Timisoara. On this charge, the court revoked the fines without deciding on the guilt of lack thereof of the involved parties, because the statute of limitation of the penalties had expired,” said the Competition Council.

MEDIA Public television launches web content division TVR, the public broadcaster, is to launch its own online TV content division, TVR Plus, by the end of the month, according to Alexandru Lazescu, TVR president and GM. The content will be available free of charge “because this is a public television service,” said Lazescu.

In the first stage, the content aired on the internet will be mainly produced by TVR, but later the public broadcaster will also show content from other providers.

“From this point of view we are the most important producers of TV content in Romania. We are trying to make this content available online and there will be several development stages to do that,” said Lazescu.

BrandTailors posts EUR 742,000 turnover in 2010 Brand strategy and design company BrandTailors posted a turnover of EUR 742,000 in 2010, 42 percent up on 2009. “Last year was an extremely good year for our company, which launched 20 projects,” said managing partner Beatrice Danis.

The company says that the published results take its market share up to approximately 20 percent. BrandTailors management estimates that this year’s turnover will reach a similar level to 2010.

INSURANCE Signal Iduna reports 44 percent increase in healthcare insurance business in H1 Insurer Signal Iduna posted a 44 percent increase in its healthcare insurance business in the first half of the year on the same period of 2010, to reach RON 4.9 million (EUR 1.2 million). “Signal Iduna ranks second among the best sold healthcare insurance policies due to the strategy the company has devised, which meets the clients' needs. Signal Iduna creates packages that are 100 percent personalized,” said Tiberiu Maier, vice-president of Signal Iduna Directorate.Signal Iduna Group is present in Germany, Hungary, Poland,

WEEK in numbers

147,570 euro is the sum raised at the first rare wine auction organized in Bucharest by Artmark and Le Manoir

8.5 million euro is the rate card value of online advertising in September of this year

Switzerland and Romania.

PROPERTY PointPark Properties officially opens Bucharest office...

PointPark Properties (P3) has officially opened its new office in Bucharest. The office is located near Calea Victoriei, on the first floor of a newly renovated villa close to Nicolae Iorga Park. It is led by country manager Stefan Gheorghiu, formerly managing director at Europolis Romania and Polimeni International.

PointPark Properties is an international asset manager and developer of industrial and warehouse properties, currently present in 12 European countries.

The company is wholly owned by Arcapita Bank, an international investment fund with offices in Bahrain, Atlanta, London and Singapore.

ACCOUNTING ... and Grant Thornton opens office in Romania Grant Thornton International, the global accounting company, has officially opened a local office. Grant Thornton Romania will provide audit, international and domestic tax services and specialist advisory services. This includes the audit of interim and consolidated financial statements, general tax advisory services, indirect taxation services and the outsourcing of accounting, payroll, HR and tax functions.

The company has around 40 personnel, including partners, stationed in its Bucharest and Chisinau offices. Ten of the executives hold local and international certificates such as CAFR, ACCA and CISA. However, Grant Thornton Romania will aim to increase the headcounts quarterly over the coming years.

Grant Thornton International ranks seventh on the global consultancy market.

www.business-review.ro Business Review | October 10 - 16, 2011

4 NEWS RETAIL

PROPERTY

Cora opens new hypermarket in GTC Romania opens EUR 66 Arad, confirms plans for 25 million shopping mall in Arad more units on medium term

Courtesy of Cora

Cora aims to open 20-25 new stores

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Courtesy of GTC

omania Hypermarche, the company that operates the local Cora hypermarket chain, has opened a new unit at the Galleria Arad shopping center. EUR 5 million went into what is the French retailer’s eighth local hypermarket.

Over the coming years the company has plans to considerably up its expansion pace. Between 20 and 25 new units

will be opened in the next three to four years, announced Philippe Lejeune, general director of Cora Romania. In 2012, another three hypermarkets will open in Bucharest, Slobozia and Bacau.

The first Cora hypermarket was opened in 2003 and two more units followed in 2005 and 2006.

The firm’s hypermarket in Arad has a surface area of 4,500 sqm, less than a third of the average surface of its largest units, and sells over 50,000 products.

Cora signed a partnership with Global Trade Center (GTC) Romania, the owner of Galleria Arad, last year. The retailer will also anchor the Galleria Galati shopping center.

At the beginning of the year, the company announced plans to enter a new market and open its own shopping mall in Constanta under the name of Corall, following an investment of EUR 100 million. Lejeune said that works on Corall are on schedule.

The shopping mall should open in the second half of 2012. It will have a total constructed area of 150,000 sqm. The facility will be anchored by an 8,500-sqm Cora hypermarket and will feature another 150 stores as well as an entertainment area. ∫ Simona Bazavan

Mall go: GTC Romania’s new shopping center has opened its doors

G

lobe Trade Centre (GTC) Romania has opened the Galleria Arad shopping center following a EUR 66 million investment, out of which EUR 30 million was financed by the European Bank for Development and Reconstruction and Raiffeisen Bank. It is the fourth such center developed by the company in the past three years, joining malls in Buzau, Suceava and Piatra Neamt. Works on a similar mall could start in the capital once the building permits are received, said Shimon Galon, CEO of GTC Romania.

Galleria Arad has a total surface area of 35,000 sqm and opened with a 99 percent occupancy rate. The project is fully owned by GTC, which estimates that in the first year it will see an income of between EUR 4 million and EUR 5 million and after that, about EUR 6 million yearly following stabilization.

With a population of about 170,000, the city of Arad has two other large commercial centers – Atrium Center, a EUR 70 million project that opened last year, and the Armonia Arad retail park, which began trading in 2008. Galon says that the local competition is not a problem and the market is not too crowded. “We have some common retailers but other than that we come with a different tenant mix,” he said.

The CEO added that competition from neighboring Hungary, where many of the locals do their shopping due to the proximity of the border, isn’t a threat given the lack of a highway connecting the

two countries.

Galleria Arad is anchored by a 4,500sqm Cora hypermarket. The partnership with the French retailer was an important milestone for the project and helped to bring in new retailers, said Galon.

Other tenants in the shopping center are Sprider Stores, Sephora, Fox, Levi’s, Kenvelo, Mango, Terranova, Optinova, Eponge, Flanco, Diverta, Noriel Toys, Leonardo, Zara, Bershka, Stradivarius, Pull&Bear, Tina R, Skiny, Gatta and Cinema City.

GTC has been active in Romania since 1999 and is one of the few local developers that have delivered commercial centers as well as office and residential projects. The firm is behind the Europe House and America House projects, which have both been sold, and the more recent City Gate office buildings in Bucharest. A fourth project, Ana Tower which is being developed in partnership with the owner of Ana Holding, businessman George Copos, should be completed in 2013. Ana Tower will be located near Piata Presei.

Galon hopes to start works on the site this year and says it has two financing propositions for the project. “It is the first time in many years that I can choose between two banks for financing,” said the GTC Romania CEO, adding that unlike the situation in retail, when it comes to developing office projects, the banks’ risk is considerable lower. ∫ Simona Bazavan

6 NEWS

www.business-review.ro Business Review | October 10 - 16, 2011

PARTNER CONTENT

Application of Public-Private Partnership Law No. 178/2010 to Public Projects Almost a year ago, Public-Private Partnership Law No. 178/2010 – the PPP Law – was finally passed

by Parliament and entered into force.

Six months later, law was Vlad Cercel, Managing the Associate at Ţuca amended to inZbârcea & Asociaţii crease the transparency of contract awarding procedures and clarify certain concepts from the initial version, for a better implementation of public projects.

The absence of an enactment on public-private partnerships was seen by public authorities and local municipalities in particular as an obstacle to the development of public projects with private financing. With the issuance of the PPP Law, these projects seemed to flourish.

Besides the PPP Law, there are other enactments providing for various legal structures to carry out public projects with the support of private investors, such as the general laws on public procurement and concessions (Government Emergency Ordinance No. 34/2006 – the Procurement Law) or the specific laws on public utilities community services. The key question in the administrative practice is whether public authorities may apply the PPP Law irrespective of the type of envisaged project or subject to certain conditions.

The PPP Law regulates the publicprivate partnership contract as a rather general tool for the performance of public projects with private financing. Such law expressly provides that it is applicable to public-private partnership contracts and not to public works/service concession contracts. To apply the appropriate law for the type of contract to be awarded, public authorities must determine whether the contract qualifies as a public works/service concession contract or as a public-private partnership contract. However, as a matter of principle, the two concepts should not be regarded as significantly different.

Certain distinctions between public works/service concession contracts and public-private partnership contracts may be derived from the PPP Law, which sets out several requirements for a contract to qualify as a public-private partnership contract, such as: l A public-private partnership contract requires the setting up by the private sector company and the public authority of a special purpose vehicle (SPV) to carry out the project.

If no SPV is formed or the SPV is established by the private sector company only, the contract cannot be qualified as a public-private partnership contract, but eventually as a

public works/service concession contract. l The SPV has the legal form of a joint-stock company and the public authority contributes in kind to its share capital. Therefore, no limited liability SPV and no contribution in cash of the public partner are allowed. If such requirements are not observed, the contract does not qualify as a public-private partnership contract, but as a public works/service concession contract. l The PPP Law does not expressly provide for the case when the public partner grants the private partner a right to exploit the results of the works/services and also pays an amount of money, as it is envisaged by the Procurement Law in the case of public works/service concession contracts. Therefore, the public-private partnership contract seems to be closer to the traditional concept of concession, where the private partner finances the project, pays a royalty to the public partner and further recovers its investment from the revenues received from the third parties using the result of the works/services.

It seems that the PPP Law sets out rather strict rules to qualify a contract as a public-private partnership contract. If these rules are complied with, public authorities may apply the PPP Law. However, if certain projects do not meet the requirements of the PPP Law, public authorities should resort to the legal structures provided by the Procurement Law, i.e. to public works/service concession contracts.

Also, the PPP Law does not apply to services governed by other specific laws. Therefore, public utilities community services, e.g. water or heat supply, fall outside the scope of the PPP Law. Given the current legal framework, we may conclude that, along with the Procurement Law and other applicable enactments, the PPP Law can also play an important part in structuring public projects with the support of private funds.

Although some important projects are left outside the scope of the PPP Law, the current legal framework provides for a number of legal tools and structures and is able to accommodate a various range of public projects, making several options available to the public authorities in choosing the legal structures which are best tailored to their future projects.

TELECOM

Rivals seek a slice of Apple

Apple core: Steve Jobs is being mourned by the global business community

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ributes continue to flood in for Steve think technology will stop now?”

Jobs, the Apple co-founder and chairHowever, others are more skeptical. man, who died on October 5, just one “Steve Jobs was the most visionary CEO day after the launch of Apple’s highly anin the IT&C industry. Without him, Apple ticipated new phone. “Apple has lost a viproducts will lose their luster, their appeal, sionary and creative genius, and the world which will inevitably lead to a plunge in has lost an amazing human being. Those of sales, while direct competitors have a card us who have been fortunate enough to up their sleeve: they use open platforms,” know and work with Steve have lost a dear Liviu Nistoran, CEO of Evolio, told Business friend and an inspiring mentor,” Apple’s Review.

CEO Tim Cook wrote in a letter to the Many analysts share this doubt, saying company’s employees. that Cook, whom Jobs appointed to sucWhile some fans were looking forward ceed him, has a daunting task ahead of him. to the launch of the iPhone 5, the compa- ”The new Apple CEO is faced with a threeny instead released an improved version of fold challenge. First of all, managing Apple’s the iPhone 4, called 4S. The model includes transition from the Steve Jobs culture to the a new processor, a better camera, much betTim Cook managerial system. ter autonomy and faster download speeds, The second challenge is to manage the says the company. shrinkage in the company’s sales which The iPhone 4S will be available in seems inevitable after the failure of the stores in the USA, Canada, Australia, Great iPhone 4S launch. Thirdly, he has to face the Britain, France, Germany and Japan from assault of competitors who are getting October 14. In the rest of Europe, it goes on closer and closer, from a technological sale on October 28. point of view, to Apple products, and last “The iPhone clearly sets new standards but not least, let us not forget about the in the smartphone industry: the dynamics merger between Google and Motorola,” of the mobile phone market since its apsaid Nistoran. pearance show us that. I think that, at Jobs is known as the visionary behind least for the immediate future, the trend imApple’s many successful products, such as posed by the iPhone will be kept up, and the iBook, iPod, iPhone, and iPad. everything we see from the point of view “Within just three months, Apple could of products released on the market will only lose the position of market leader in the be variations on the same theme,” Stefan smartphone domain. Everyone is anticiIchim, country manager of Panasonic Ropating the launch of a revolutionary prodmania, told BR. uct and this seems less and less likely to “From this position, you do not need to happen,” commented Nistoran. adjust to any trend… because you are dicAfter the launch of the iPhone 4S, rival tating the trend. Definitely, as long as the technology firms have announced the incompany continues to innovate and impose troduction of new models. trends on the market, it will not risk losing “Over the next few weeks, new smartthe position it now has,” he continued. phones from Samsung, HTC and LG will hit But the big question is: is there Apple the markets, accompanied by the new after Steve Jobs? Will Apple be able to and versatile operating system Android 4 keep up the same high standards of innoIce Cream Sandwich,” he said. vation in the future as it did under Jobs’ suIt remains to be seen whether Cook will pervision? be able to live by Jobs’ words: “You can't Sorina Macarescu, marketing manager just ask customers what they want and at Huawei Romania, said, “The impact then try to give that to them. By the time will be short-lived and on an emotional levyou get it built, they'll want something el because Apple has had enough time to new.” ∫ prepare for this moment. Does anyone Otilia Haraga

NEWS 7

www.business-review.ro Business Review | October 10 - 16, 2011

ELECTRICITY

ENERGY

Romanian electricity consumption ‘currently at pre-90s level’

New renewable energy bill ‘may see tariffs increase by nearly 5 percent’

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TELECOM

Orange launches country’s fastest mobile internet in Bucharest

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range has launched in Bucharest the highest-speed mobile internet in Romania, which can reach download speeds of 43.2 Mbps. The service is available via the company’s 3G network, allowing 43.2 Mbps download speeds and 5.76 Mbps upload speeds.

“This is the highest speed that can be obtained from a 3G network,” said JeanFrancois Fallacher, CEO of Orange Romania.

For now, the service can only be used in Bucharest, but other cities such as Cluj, Timisoara, Constanta and Brasov will follow suit in up to a year, according to Fallacher. The operator will focus on expanding coverage mainly in large cities.

Orange Romania has already invested about EUR 110 million this year, Fallacher told BR. “We are planning to invest between EUR 500 and EUR 600 million over the coming years. It depends on market conditions, and now we can see the economy is recovering,” he said.

In order to have access to the fastest mobile internet, Orange clients need to be in the 43.2 Mbps coverage range and use a compatible modem. The new service is available via two subscriptions: Colibri 15 and Colibri 25. These include also the Cost Control option so that users do not pay anything in excess of their monthly subscription.

The Orange CEO also addressed Orange’s approach to 4G. “It is clear that the next stop in the mobile business is LTE. A lot of very important investments must be made. It is hard to say whether it will be this year or next year, but for sure we will go in this direction. This is in the hands of ANCOM and the government.

There is a tender planned next year so we will see under what conditions we can have access,” said Fallacher. ∫ Otilia Haraga

He added that the concentrated development of wind farm projects in Dobrogea and Southern Moldova would pose difficulties in extracting and transporting the resources generated.

Transelectrica is currently looking to develop super-grid systems, which would link Dobrogea and Southern Moldova to Bucharest, Cluj and Oradea. This technology will allow the adjustment of the energy flows coming from the wind parks.

The underdeveloped solar energy industry in Romania could also contribute to the adjustment of the energy system.

Romania currently has one solar energy project of 0.95 megawatts, in Giurgiu County. Investments in solar power should involve small modules on top of buildings, improving efficiency. ∫ Ovidiu Posirca

Photo: Laurentiu Obae

omania should seek to raise its electricity consumption if it wants an increase in wind energy installations, according to Marian Cernat, director of operational division at Transelectrica. He made the statement during an event on the topic of energy, organized by Business Review. Cernat added that the current rate of energy consumption in Romania is below the figures reported before 1990. Households should use more electricity to boost consumption, he urged.

Cernat cited the main issues for renewable energy: the technical requirements for generator groups; the long process of developing the grid; significant financial effort and lengthy implementation; and the need for the national energy system to compensate for energy consumption from renewable sources.

Ionel David

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enewable energy prices could hike by 4.8 percent if a new law on the sector is adopted, warned Ionel David,

public affairs consultant of the Romanian Wind Energy Association. The bill will be debated by the Ministry of Economy and members of the governing coalition. The statement came during the second Focus on Power, an industry event organized by BR. David added that ANRE, the Romanian energy regulator, should not be blamed for the uncertainty surrounding the new law.

According to him, the renewable industry is advantageous for the state. Every 1,000 megawatts of installed wind power generates EUR 50 million for the state budget, through direct and indirect means.

CEZ will invest EUR 1 billion in wind farm projects in Fantanele and Cogealeac. Meanwhile, Ford’s investment in Romania totaled EUR 700 million, while Nokia invested EUR 200 million, before recently deciding to close its operations in Romania. ∫ Ovidiu Posirca

www.business-review.ro Business Review | October 10 - 16, 2011

8 OPINION

OPINION Improving the management of chronic illness The burden of chronic disease is increasing e v e r y w h e re .

According to Eurobarometer data, in European Union countries, from 20 percent to over 40 percent of adults report a long-standing health problem. People with chronic conditions are more likely to use health services, in particular those with multiple health problems, which tend to be more common among older people. About two thirds of people of pensionable age have at least two chronic conditions. This is expensive: it is estimated that chronic diseases such as diabetes represent 2 to 15 percent of healthcare expenditure in Europe.

This leaves healthcare systems struggling to cope. A key challenge is that healthcare systems have developed from a traditional model of acute, episodic care that focuses on individual diseases and is based on a relationship between an individual patient and a doctor. In contrast, the goal of chronic care is to minimize distressing symptoms; prolong life through secondary prevention; and enhance the overall quality of life. This requires moving to multi-professional, inter-sectoral delivery systems and for health systems to overcome existing fragmentation of services. A lack of coordination often leads to patients being left on their own to navigate through the maze of different providers and agencies.

In 2008 the Commonwealth Fund carried out a survey of people with complex healthcare needs in eight countries. About 40 percent of those interviewed reported that they had received inefficient care or that time was wasted — their time, in fact. Just over half also reported discharge gaps, for example, by being sent home from hospital without being given a written care plan or making arrangements for a follow-up visit. Involving patients in the management of their own condition is a core component of effective chronic care. The Commonwealth Fund survey found that only 40 to 60 percent of people with chronic health problems were involved in their own care by, for example, discussing goals or being given written plans or clear instructions on how to look for symptoms that indicate that they should see a health professional for follow up.

What is needed is a model of care that involves working in partnership with the patient and other healthcare personnel, viewing patients as co-producers of care to optimize health outcomes.

Some European countries have taken up measures to respond to these challenges. Within the DISMEVAL proj-

ect (Developing and validating DISease Management EVALuation methods for European healthcare systems), funded by the E.C., we looked at the various approaches taken by a range of EU countries, and three major themes emerged.

The first theme is around approaches aimed at strengthening care coordination through structured disease management. The content and scope of these programmes varies considerably however and there is a wide variation in the extent to which non-medical staff are involved in the delivery of care. For example, approaches in England, the Netherlands, Hungary and Italy make extensive use of nurses, whereas approaches in other countries do not.

The second theme centers around strengthening the role of nurses in care coordination and delivery. This is quite common in countries where there is a tradition of multidisciplinary team working such as in England, the Netherlands, Italy, Spain and, to a certain degree, Hungary. A number of countries, including Austria, France and Germany, are also introducing models that involve the delegation of certain medical tasks to nurses. However, this tends to be done under the supervision of a GP or a physician.

A third theme is attempts to overcome barriers between sectors in order to reduce the fragmentation of service delivery.

Our work has identified key elements for achieving high performing systems; these are not necessarily specific to chronic care but form important components for enhancing system performance everywhere. The first is the provision of adequate incentives within the system that actually get us where we want to get to. Second is an appropriately prepared workforce.

Third is information technology. Fourth is the embedding of prevention in all stages. And the fifth element is the creation of systems that enable patients to self‑manage much more effectively.

To achieve higher-performing systems we need to find a balance between top‑down and bottom‑up approaches. [...] We also need ongoing evaluation in order to know what works best in what circumstances.

Ellen Nolte directs the Health and Healthcare Research Policy programme at RAND Europe. Her main research is the field of health systems, including approaches to health system performance assessment, health system responses to chronic disease, international health system comparisons, and population health in the countries of Central and Eastern Europe. RAND Europe is a not-for-profit research organization that helps to improve policy and decision making through research and analysis.

www.business-review.ro Business Review | October 10 - 16, 2011

10 COUNTRY FOCUS AUSTRIA

Austrian investors proceed with caution After the frantic years prior to the crisis, when Romania was the place to be for many Austrian companies, the Teutonic march has slowed in the past couple of years. Existing investors are fighting to preserve their positions and new ones have become scarce. BR takes a look at some of the most important changes made by Austrian investors in the past year.

The total volume of loans rose by 23 percent to EUR 3.3 billion, while deposits grew by 4 percent to EUR 3.56 billion.

Thus, the loan/deposit ratio reached 93 percent, from 79 percent in June 2010.

The total volume of loans increased by 23 percent to EUR 3.3 billion, while deposits increased by 4 percent to EUR 3.56 billion.

Thus, the loan/deposit ratio reached 93 percent, from 79 percent in June 2010.

The corporate loans segment increased by 24 percent in the first half of 2011, compared to the similar period of 2010, while deposits did not register significant changes.

In the retail banking segment, the loans portfolio expanded by 23 percent and deposits by 5 percent.

Raiffeisen has 2 million clients, out of which 100.000 are SME's and 8000 are corporate clients. At the end of June 2011, the bank had 545 units and 5.906 employees.

Dreamstime

Austrian companies are active in several sectors: banking, energy, retail, wood processing, construction and legal services.

∫ SIMONA BAZAVAN “Romania is still interesting for Austrian investors but things are no longer comparable to the situation in 2006-2008 when Austrian companies almost ‘flooded’ the country,” Rene Schöb, partner with the Austrian tax consulting and auditing company LeitnerLeitner, told BR. A lot of Austrian firms are already active locally and are now looking at new destinations such as Turkey or Serbia instead of Romania for further investments, driven by the need to reach new markets, he added.

“Compared to previous years, there are significantly fewer new investors from Austria.”

As for how Austrian companies perceive the performance of the local economy in the past year, Schöb said that judging by the firm’s client base, the general feeling is that the business environment has stabilized at a low level rather than improved.

Austrians’ complaints about the local market are the same as those of any other investors in Romania. Infrastructure is not developing fast enough and the administrative burden remains heavy. “Unfortunately, since EU accession, Romania has failed to undertake the adequate measures to improve both areas,” he added.

Figures tell a similar story. Austria has been Romania’s main source of foreign direct investments in many years. At the end of 2010, Austrian FDI in Romania amounted to EUR 9.2 billion but the figure rose just EUR 158 million in the first semester of this year, according to data from the Austrian

Embassy to Bucharest.

Austrian companies are active in a large series of industries from banking (BCR, Raiffeisen Bank, UniCredit Tiriac Bank, Volksbank, etc) and energy (OMV Petrom) to retail (bauMax, Hervis Sports, Humanic, etc), wood processing (Kronospan, Egger and Schweighofer), construction materials (Baumit, Lasselsberger, Wienerberger, Bramac, Tondach, etc) and management consulting (Horvath&Partners).

However, the top two companies that spring to mind are Erste Group and OMV Group, both of which have announced changes this year. Erste is hoping to increase its share in Banca Comerciala Romana (BCR) by about 24 percent to 93.5 percent, while OMV is reconsidering its local approach in the context of its recently announced 2021 global strategy.

Austrian banking leads the way Banking is by far the sector with the strongest Austrian presence with players like BCR, Raiffeisen, UniCredit Tiriac, Volksbank and Porsche Bank on the scene.

The Austrians also have a strong presence in the local insurance market. Under the pressure of plummeting sales, recent years have seen several mergers between local insurance companies.

One such move announced this year is the fusion of Omniasig – controlled by Austrian Vienna Insurance (VIG) – and BCR Asigurari which had a combined business of approximately EUR 330 million last year.

Coming back to banking, this year’s main transaction could come from Erste

Group Bank AG (Erste Group) – the main shareholder in BCR – which after more than a year of negotiations announced in September that it had reached an agreement with four of the five SIF minority shareholders in BCR – Banat Crisana, Transilvania, Muntenia and Oltenia – to acquire their 24.12 percent stake in BCR. Following this transaction, Erste Group’s participation in BCR is set to increase to 93.52 percent.

The total value of the deal amounts to EUR 435.

“It has always been our strategy to hold the highest possible stake in our subsidiaries and we are glad now to have this possibility in Romania too. Despite the recent tough period, Erste Group as a strategic investor is taking the long-term view and we thus maintain our confidence in and commitment to Romania,” said Manfred Wimmer, chief financial officer, Erste Group.

SIF Moldova has also shown interest in the scheme should BCR’s listing not take place, which seems the most likely outcome.

The second major Austrian player on the market, Raiffeisen Bank, reported a 22 percent decrease in net profit taking the figure to EUR 39 million in the first half of 2011, down from the EUR 50 million reported in the same period of 2010. The bank's total asset value increased by 13 percent, from EUR 4.57 billion in the first half of 2010 to EUR 5.17 billion.

The drop was triggered by overall higher expenses generated by inflation, higher provision costs and a 50 percent hike in the contribution to the Deposit Guarantee Fund, announced bank officials.

Austrians have the energy to march on This September, the new OMV executive board presented a new strategy for the group through to 2021 with a focus on oil and gas and stronger growth in the upstream sector.

“The upstream business of E&P, the exploration and production of oil and gas, will assume a far more significant role.

OMV will also experience strong growth in the gas sector – from the production and transport to the marketing of gas,” announced the company.

So, until 2021 OMV plans to reduce assets related to refining and marketing from the present 55 percent to 25 percent while exploration and production will grow their share in the business from 35 to 55 percent. By 2021 the Austrian investor also intends to exit some markets and strengthen its position on others.

OMV’s new focus on oil and gas production will also bring changes for its local operations.

“In Romania we will continue to invest in the Petrobrazi refinery and we intend to maintain our position on the fuel distribution market. (...) We have a good cashflow and this will allow us annual investments of EUR 2.5 billion at group level,” said Gerhard Roiss, president of OMV, according to the Mediafax newswire.

Mariana Gheorghe, general director of OMV Petrom, said that investments in exploration and production will reach EUR 600-800 million or even more, depending on the market context.

In partnership with Exxon, OMV is currently exploring the potential of two blocks in the Black Sea, one of which could supply Nabucco, and it is also analyzing shale gas potential in Romania. The latter project could be completed in three years. Petrom will benefit from preferential royalties for oil and gas until 2014.

continued on page 12

www.business-review.ro Business Review | October 10 - 16, 2011

12 COUNTRY FOCUS AUSTRIA continued from page 10

Retailers consolidate their position Out of all the foreign players active on the Romanian DIY market, bauMax was the retailer with the most dynamic expansion last year. The Austrian chain opened four new units in Bucharest, Pitesti, Constanta and Timisoara. This March the company opened a new unit in Bucharest, bringing its national network to 14 stores.

Looking at the FMCG industry, winemaking has proven an attractive investment opportunity in the past few years and the Austrians have a hand in the trend. This year, premium wine producer Lacerta Winery officially opened its vine estate in Fintesti, in the Dealu Mare region, following a total investment of approximately EUR 8 million. The business was set up in 2003 and is owned by four foreign investors, three Austrians and one German.

simona.bazavan@business-review.ro

6,000 More than 6,000 companies with Austrian equity are active in Romania

Romania faces fiercer regional fight for Austrian investments In the past couple of years Austrian investments in Romania have declined, in part because of the economic downturn but also because after the strong wave of newcomers between 2000 and 2008, existing players have been focusing on consolidating their position. As for future investments, Romania is now facing tougher competition from neighboring countries, Rudolf Lukavsky, commercial counselor of the Austrian Embassy in Romania, told BR. ∫ SIMONA BAZAVAN How much did Austrian-owned companies invest in Romania in 2010 compared to the previous year, and what are the estimates for 2011?

After the very good years of 2000-2008, overall foreign direct investment in Romania dampened significantly in 2009 and 2010. Direct foreign investors’ net revenues in 2009 amounted to EUR 694 million, down EUR 2,244 million year on year.

Nevertheless, Austria’s FDI could still register a growth of EUR 363 million, despite the difficult overall economic situation.

According to official data, Austria’s FDI in Romania amounted to EUR 9.2 billion at the end of 2010. For the first half of 2011 BNR registered a surplus of EUR 158 million. In 2010 we saw a lot of re-investment of earnings by larger companies already present in the Romanian market, including retail chains (bauMax, Hervis, Billa etc.), processing companies such as those in the wood-processing industry (Kronospan, Egger and Schweighofer) as well as new investments in the field of renewable energy (e.g. the Verbund wind park in the Dobrogea region).

How do you see the future of Austrian investments in Romania in the years to come?

Before the downturn Romania had proved to be the hotspot for Austrian investments in the region. Now it is facing fierce competition from highly attractive neighboring countries. What is most important for Romania as a business location is a clear and strictly respected legal framework, competitive business environment and transparency for investors, and further infrastructure upgrades.

Has the local business environment improved or worsened in the past year?

Romania is an important market for Austrian companies. We sense a lot of interest in terms of enquiries, event participation and so on. Nevertheless, it is crucial for the Romanian government to work on the business environment with zero tolerance for the lack of transparency and mismanagement, better law enforcement and more investment in infrastructure. At present Romania has a difficult market situation but there is high potential for growth, especially in the fields of alternative energy (wind, biomass and biogas), R&D, industrial supplies, tourism infrastructure and the automotive industry.

Any investment decision is based on a mix of criteria: labor costs, competition, market potential, the legal environment and so on. Unexpected changes in legal and political conditions are disadvantageous for everyone. It is crucial for the further development of the market that Romania can

Photo: Laurentiu Obae

“Investments in the Black Sea will be in three figures. If we find deposits there, they will be huge, but the probability is very low.

For us to invest in the Black Sea we need to know what the legal framework for the coming years will be,” said Roiss, according to Mediafax. He added that he has informed President Traian Basescu and Prime Minister Emil Boc of the group’s strategy and future activities in Romania, and he now awaits the local government’s long-term fiscal framework.

Earlier this year, Petrom took the decision to permanently close the Arpechim refinery, but it will not sell the facility.

The company has also announced that it will reduce the capacity of its Petrobrazi refinery. Two weeks ago OMV denied media rumors that it intends to sell 139 of its local gas stations to Serbian firm NIS. 2010 was a good year for OMV Petrom.

The company reported a RON 2.2 billion (EUR 521 million) net income for 2010, about 163 percent more than the previous year. Sales reached RON 18.6 billion (EUR 4.4 billion) – 16 percent up on 2009.

Renewable energy is one of the most attractive local industries to foreign investors and Austrian companies are no exception. The largest electricity producer in Austria, Verbund, plans to invest an estimated EUR 200 million in the construction of a 200 MW wind farm project in the Casimcea region. Works at the site began earlier this year.

The first phase of the road construction for the first cluster has been completed while the second was completed in September, announced the company. The test probes for the construction of the foundation were conducted successfully.

“Construction of the plant foundations and the two 30/110-kV substations is planned for the summer months. The permit for the construction of the second part (100 MW) is expected in the middle of the second half of 2011,” reads the company’s report for the first semester.

CV Rudolf Lukavsky 2009 – present Commercial counselor for Romania and Moldova, Austrian Embassy, Commercial Office Bucharest 2008 – 2009 Head of division (human resource, finance) Austrian Federal Economic Chamber, Foreign Trade Department, Vienna 2001 – 2008 Commercial counselor for Egypt, Sudan, Ethiopia, Eritrea, Djibouti, Somalia, Austrian Embassy, Commercial Office Cairo 1996 – 1999 Commercial attaché for Southern Africa, Austrian Embassy, Commercial Office Johannesburg ensure a stable business environment.

Generally speaking, Austrian companies are calling for more transparency, efficiency and consistency in the public administration, in particular in public procurement, and improvement of the legal system in order to better facilitate their investments.

What can you tell us about bilateral trade between the two countries last year?

Austria and Romania share a long common history, which is also reflected in intense business relations. Bilateral trade is driven

by Austrian exports to Romania, which peaked in 2008, reaching close to EUR 2.4 billion, and remained above the average level of the last five years in 2009, at EUR 1.6 billion.

Austrian imports from Romania had registered a steady course over the past five years in the range of EUR 722 million in 2004 and EUR 645 million in 2009. In 2010 we saw a dramatic increase in Austrian imports from Romania, which rose 55 percent (EUR 996 million), and a hike in exports from Austria to Romania of almost 5

percent (EUR 1.68 billion). The latest figures for the first half of 2011 also show a strong growth trend: an increase of 12.9 percent in exports from Austria and a growth of 34.8 percent of imports to Austria. So, the overall trade volume is increasing.

How many new Austrian-capitalized companies were registered last year in Romania?

According to the latest official BNR statistics, total Austrian net investment stands at EUR 9.2 billion, which corresponds to 18.1 percent of total FDI. Today we have over 6,000 companies with Austrian equity.

Austrian companies are active in almost every field of business in Romania. The country is particularly strong in the service sector (banking, insurance, transportation etc.), but also in the wood-processing industry and building materials. Did you know that Gottfried Schenker, founder of the logistic company Schenker & Comp.

Wien, opened his first subsidiary abroad in Bucharest in 1879? Today DB Schenker Romtrans is the biggest player on the Romanian transport and logistics market.

Is Romania’s delay in entering the Schengen area a setback for them when it comes to doing business here?

Signing the Schengen Agreement means another step in the direction of a joint Europe, allowing individuals to travel freely between member states. In this respect Austria supports the expansion of the Schengen area to Romania and Bulgaria.

Schengen entry would make travelling for Austrian and Romanian tourists and business travelers more convenient, but a short delay would not be an obstacle to doing business. In practice, Romania joining Schengen would for example mean faster access to connecting flights for passengers at Vienna airport.

www.business-review.ro Business Review | October 10 - 16, 2011

COUNTRY FOCUS AUSTRIA 13

www.business-review.ro Business Review | October 10 - 16, 2011

14 FOCUS

Where now for Nokia employees?

After Nokia’s shock announcement two weeks ago that the company was going to slash its local operations by closing down its Jucu plant with the loss of 2,200 jobs, the Romanian authorities and the business community have accepted the decision as a natural move in a global market economy. However, the question remains what happens to the surplus labor force flooding onto the market? BR talked to HR pundits to explore the options.

Agerpres

Uncertain future: Nokia’s former employees will be back on the job market

∫ OTILIA HARAGA Last week, Nokia pledged to fulfill its obligations in Romania during a meeting with Sulfina Barbu, the Romanian labor minister.

“They assured us that discussions will be extremely fair and in the employees’ interests. They also said that for employees who go to work and fulfill their obligations, the treatment will be European, civilized and with care for the people. If there are cases in which employees do not come to work or respect the program, those people will face the consequences,” said Barbu.

The minister also discussed the option of accessing EU funds for the Nokia plant's employees with the County Employment Agency (AJOFM) and the company's management. The government intends to obtain funds via the European Globalization Adjustment Fund (EGF) to support the employees after the plant closes. Romania must put up about 30-35 percent as co-financing to access the fund, PM Emil Boc said.

The Finnish company announced two weeks ago that it would close down the Jucu plant by the end of the year, a measure which will see the mobile phone giant slash 2,200 positions in one fell swoop.

Upon the opening of the plant, Nokia committed to make a EUR 60 million investment in the plant in Jucu, Cluj, starting production in 2008. The factory in Romania was opened after Nokia’s controversial

relocation from Bochum, Germany. lines that are closely connected to the acThe company broke the news to its emtivity of the plant,” Bogdan Dragoescu, ployees via an internal letter in English senior business development manager at which said the measure was “painful but Smartree, tells BR. necessary.”

And that is not all. He adds that Cluj has “We plan to ramp down our manufac- “a good economic structure, with the proturing facility in Cluj, Romania, by the duction and services areas being balanced. end of 2011. We are aligning our manufacThe bordering counties are oriented espeturing in Europe with consumer behavior cially towards production, so in principle, in Europe. Specifically, smartphone sales in a 100 kilometer radius should be capable of Europe have increased while feature phone absorbing the Jucu employees.” sales in Europe have decreased, and the Still, the questions remain. How will the majority of our work in Cluj has been labor market cope with more than 2,000 around feature phones manufacturing,” people made redundant at the same time? said the company.

Additionally, what employment options do Nokia is looking for potential investors these people have? interested in buying the Jucu plant, said the First of all, HR pundits do not think the president of the group, Stephen Elop. lay-offs will be made at the same time.

During this time, the company will “Nokia is likely to support the 2,000 emkeep on in Jucu only the employees of the ployees, one way or the other. Any closure sales department. The rest of the staff will is scheduled to take place in stages and the be made redundant. staff reduction will probably be gradual,” Nokia workers were informed that they predicts Dragoescu, adding that such projwill remain in the employ of the company ects are ‘”carefully structured so that the sountil the end of the year and will be paid uncial impact is minimal.” til the end of March 2012. The laid off staff Other experts in the field seem to agree. will also receive a compensation package “If we also take into account that some that will be finalized after consultations of the employees are from counties such as with the employees’ union and company Mures, Salaj and Bistrita, as Viorel Gavrea, management.

GM of the Tetarom industrial park has “In real terms, the effect of the layoffs on said, then the impact will not be very high the labor market is 1 percent of the total at the level of the local labor force, espenumber of employees in Cluj. Of course, we cially since it will be dissipated at regionmust not forget that Nokia has signifial level,” Oana-Maria Banu, product marcantly used temporary work and this plant keting manager at MyJob, tells BR. has involved a series of suppliers who Cluj is ranked in third or fourth place (afmay also have to close down those business ter Bucharest, Timisoara and possibly

Brasov) in the list of cities with the highest number of jobs available.

At the moment, there are 670 offers in Cluj-Napoca, which total 4,079 vacant positions, data from BestJobs show. “We can also take into account neighboring regions such as Targu Mures, with 2,546 jobs, as well as Alba Iulia (2,401 positions) and Bistrita (2,142 positions),” Monica Cacina, marketing specialist at BestJobs, tells BR. Similarly, data from MyJob show that Cluj has advertised 1,432 vacancies over the last month. “If we talk about counties like Mures, Salaj and Bistrita, the number of open positions over the last month is 2,742,” says Banu.

While Cluj remains a developing region, most of those who were made redundant could be re-employed within 6-12 months, estimates Dragoescu. However, in the event of regional economic stagnation, it is possible that only a small percentage will get back into the work force, he forecasts.

It is important that re-employment options be approached appropriately. Specialists with higher education will need a different strategy than workers, explains Dragoescu.

For workers, their experience at Nokia has definitely improved their resumes.

“Romania needs most of all production, and these people went to a ‘good school’ at Nokia. For this reason, they will be appreciated anytime in this field,” says Dragoescu.

Bogdan Florea, general manager of Trenkwalder, tells BR, “There continues to be demand in the area of assembly workers who have no particular qualification but can learn procedures and maneuvers in a reasonable time span. The car industry and the manufacturing industry are the main providers of jobs.”

In the case of highly educated specialists, “Nokia will count in their professional development and their chances of being hired, especially by companies, are pretty high,” says Dragoescu.

Relocation is also an option, especially since willingness to relocate has “greatly increased over past years, perhaps also because of the global crisis,” says Dragoescu.

“The not very remote regions in the western part of the country, where there are several large electronics plants, could benefit from this community of specialists trained at the Nokia plant,” he says.

Another alternative would be to change careers, switching to a domain with better job prospects. Data from BestJobs and MyJob show that the fields with the most acute staff shortages are management, electronic commerce, IT software/computers, retail/commerce, industry/production, telecommunications, media/advertising/PR/human resources and market research.

otilia.haraga@business-review.ro

www.business-review.ro Business Review | October 10 - 16, 2011

FOCUS 15

DIGITAL

Law lags behind technology in digital switchover broadcasting platforms that transmit TV programs in digital format. It also requires clearing the necessary spectrum that will be used for 4G technologies and broadband internet.

Romania’s transition to digital was blocked last year. The country had promised the EU that the analog signal would be turned off by January 1, 2012. Instead, on August 11, 2010, the government passed a bill stipulating that TV transmission in analog format would only cease by January 1, 2015.

“In Romania, between 1 and 2 million households may need support for the transition, for example poor people in rural remote areas or disabled and elderly people,” said Helmut Egenbauer, president for Central Europe st TDF, the French transmission services company.

Gov.ro

Romania’s communications minister Valerian Vreme

R

omania’s switch to digital television is awaiting approval from several ministries, said Valerian Vreme, the minister of communications, during the International Digital Forum.

“From a technical viewpoint, Romania is ready to make the transition to digital terrestrial television, but we must wait for the

legal framework. We are still waiting for the approval of various ministries and depending on when this comes, we can make the transition in several months,” he said.

The transition to digital terrestrial television is a process that is going on across the entire European Union, added the minister. It will bring the appearance of new

Romania is competitive on IT solutions market, says minister of communications Nokia’s departure from Romania should not be seen as a tragedy but a normal development in a global market economy, according to pundits who took part in the International Digital Forum.

Furthermore, the country still has a lot going for it in the sector, they added.

“Romania is competitive on the market of informatics solutions. IBM, Oracle and HP have found resources in this field and

it is here that we should place the focus: the highly qualified human resources in IT&C,” said Vreme.

1-2 mln households may need support for the digital transition, for example poor people in rural remote areas or disabled and elderly people Florin Lupescu, principal counselor within the European Commission, sees Nokia’s decision as “a normal situation in a global market economy. We are living in a global economy and a large company cannot afford not to be global,” said Lupescu, adding that “one of the conditions of a market economy is free access on the market.”

However, Lupescu said Romania should rely more on creativity and on driving innovation.

“We are witnessing both a deindustrialization and a re-industrialization process. The idea is to create a new revolutionary industry. Overcoming an obstacle can only be done with new solutions,” said Lupescu. ∫ Otilia Haraga

www.business-review.ro Business Review | October 10 - 16, 2011

16 FOCUS ON POWER

Romania goes smart with green energy despite legal hurdles The lure of Romania’s renewable energy sector, legal bottlenecks in support for green energy producers, the advance of smart technologies and a shift from wind to hydro power were among the themes raised during the second Focus on Power event, organized by BR last week. ∫ OVIDIU POSIRCA

Legal issue spark problems The main challenge facing Romania’s energy sector is adopting the legal framework and European regulation, said Valeriu Binig, director of financial advisory services/energy & resources/corporate finance at Deloitte. Romania hasn't incorporated the two Gas and Electricity Directives into its national law, he noted. The authorities failed to adopt the third EU energy package

by March this year, and were granted another six months. This term has elapsed and Romania may face an infringement procedure. However, 19 member states are in the same boat.

Silvia Vlasceanu, general director of the Association of Energy Utilities Companies, voiced serious concerns about the application procedures for law no.220/2008, which should promote energy production from renewable sources. Currently, producers can't fully access the support scheme, which grants a variable number of green certificates for every MW produced and delivered, while the government ordinance that could fix this issue is being delayed by the Romanian authorities. Ionel David, public affairs consultant at the Romanian Wind Energy Association, said that the ordinance would be discussed by the Ministry of Economy, which should finally enact the law, although electricity prices are expected to increase by almost 4.8 percent. This is the main deterrent for the authorities, as Romanian households are already under economic pressure, due to the stubborn recession. Currently all green energy producers are granted one certificate. The cost of a certificate ranges between EUR 27 and 55, a price regulated by the Romanian authorities. Cristina Filip, of law firm PeliFilip, agreed there would be an increase in tariffs, but this was evaluated in 2008, when the law came into force and investors were first sought.

Until the issue of secondary legislation for renewable energy, law no.228/2008 (amended in 2010), is resolved, projects will continue to be analyzed by assuming a conservative scenario that takes into account only 1GC (Green Certificate)/MW, according to Robert Ghelasi a senior energy analyst at Capital Partners, an investment banking advisory firm that is currently handling the development of renewable projects with installed capacity of 1,105 MW. Razvan Grecu, senior energy analyst at Candole Partners, added that the Romanian authorities have attracted investors but are still maintaining control of the generation capacity. Grecu also suggested some ways to spur investments, arguing that the regulated market should be decreased and the electricity transportation infrastructure must develop.

Financing energy “There is inconsistency in the way wind projects are being developed. These de-

The first panel discussed the aspects that kept the law promoting energy from renewable sources from becoming fully functional, and suggested ways to break the deadlock. Speakers also analyzed the pace at which the energy output from green sources can be transported by the national grid operator Cristina Filip, partner, PeliFilip “The support scheme for renewable energy producers will impact prices for consumers”

Valeriu Binig, director, Deloitte “The Romanian administration has to adopt the legal framework and European regulation for the energy sector”

velopments are concentrated in Dobrogea and Southern Moldova, posing the issue of extraction and transportation to consumers,” said Marian Cernat, director of the operational division at Transelectrica, the national grid operator. Cernat said solar production was a better investment as the energy is produced only during the daytime when consumption is high. However, he added, these investments should consist of small modules on top of buildings. Kurt Weber, managing director at Horvath&Partners, stated that the technology and innovation

Marian Cernat, director of operational division, Transelectrica

Silvia Vlasceanu, general director, Association of Energy Utilities Companies

“The integration of production from renewable sources is happening and has an impact on the Romanian energy system”

“The authorities are stubbornly trying to maintain the current state of affairs in the energy sector”

Ion Aldea, head of metering, ENEL Romania

Saulo Spaolanse, president, Schneider Electric Romania

“The implementation of smart meters should lead to improvements in the volume of investments in Romania”

Gicu Firu, corporate, bankers and bank Assurance manager, Signal Iduna “Energy companies should consider private healthcare insurance packages for employees”

“Smart grid technology is smart but more complex”

Kurt Weber, managing director, Horvath&Partners “Utilities companies realize that remaining a simple energy supplier will not increase profitability”

www.business-review.ro Business Review | October 10 - 16, 2011

The smart way Ion Aldea, head of metering at ENEL, argued smart meters are the first mandatory step towards the implementation of smart grids. The firm is planning to replace 2.6 million traditional meters with an automatic management measurement system

All photos: Laurentiu Obae

exists and utilities companies know remaining a simple energy supplier will not increase profitability.

Investors are switching from wind to small hydropower developments, according to Ghelasi. This investment responds to fluctuations in electricity demand, meeting both base-load and peak-load demand, something wind farms can't do.

Romania has pledged to increase the proportion of electricity from renewable resources to 35 percent by 2015, and 38 percent by 2020. The current capital inflow in the sector is considered too low for this, with the gap estimated at EUR 25-35 billion per year over 2011-2020, according to Ghelasi of Capital Partners. Grecu of Candole also warned that it is still not known how Romania will replace 5,000 MW of conventional energy by 2020, as new generation capacities need to be created.

Investments of EUR 7 billion are necessary in the next 10 years for Romania to meet the mandatory national target of 24 percent in 2020, including investment in renewable power plants and the grid, according to Razvan Ghelasi of Capital Partners. On the positive side, the electricity sector is still one of the most attractive to investors. The rates of return are not spectacular, but income is at least stable and investing in renewable and infrastructure is still more secure than in many other areas.

FOCUS ON POWER 17

The second panel focused on the financial aspects of investing in the renewable energy sector. The quality of the energy delivered to consumers can improve significantly if producers implement smart green technologies. The speakers also said that new investors may consider investing in hydro sources, rather than wind improving distribution. The move should allow tailored tariffs for consumers and reduce bills. Moreover, operating costs will also be reduced, making the activity more efficient. The telecoms industry will also contribute to this new technology. According to Victor Cosconel, country sales manager Romania for Vodafone Global Enterprise, the machine to machine (M2M) technology that was developed by the operator could also be applied to smart metering and smart grid programs. This will involve remote maintenance and control. In addition, the energy industry will need to consider further investments in the safety

of its employees, by acquiring healthcare insurance packages, commented Gicu Firu, corporate, brokers and bank assurance manager at Signal Iduna.

“Smart grid technology is more complex.

It is a combination of software, hardware and expertise,” stated Saulo Spaolanse, president of Schneider Electric Romania. In recent decades renewable sources posed the challenge of connection to the grid, and delivery to consumers, added Spaolanse.

Sabin Posea, smart grids program director at Eximprod, noted that the electricity transformation stations in Romania are old, and need to be updated, replaced

or improved. Posea also predicted that the advent of small and micro-generators of under 1 MW will see consumers become suppliers of energy too. “Romania already has its path set in the energy sector, as it will become part of the internal energy market of the EU, expected to be established and interconnected by 2014,” said Lucian Palade, electrical energy market consultant.

The second Focus on Power event was organized last week at the Howard Johnson Grand Plaza Hotel in Bucharest and attended by about 100 participants.

ovidiu.posirca@business-review.ro

www.business-review.ro Business Review | October 10 - 16, 2011

18 INTERVIEW

Aviva seeks to ensure operational efficiency Mihai Popescu, CEO of Aviva Asigurari de Viata, tells Business Review that the insurer is placing the focus on offering quality services, reorganization and efficiency in the wake of the crisis. ∫ ANDA SEBESI

CV Mihai Popescu May 2010 CEO of Aviva Asigurari de Viata 2008-2010 Chief marketing officer with AIG Life Romania 2003-2008 Manager, financial institutions & group management division at AIG Life Romania 2000-2003 Relationship manager at Citibank Romania 1997-2000 Brand manager at P&G Balkans 1995-1997 Off shore business integration project leader at P&G Balkans 1995 Graduates from the Bucharest Technical University with a MSc. degree in Engineering.

How would you describe the Romanian life insurance market in 2011?

Overall, it is in the process of developing.

It posted a marginal increase of about 4 percent in the first half of the year, but this was not as high as we had hoped. We are slowly getting the life insurance market on the right track – sustained development. We are still far behind other countries and their citizens’ practices and habits.

What volume or value do you estimate for the life insurance market for 2011?

Life insurance has a 20.8 percent share of the total Romanian insurance market, while these percentages are significantly higher in our neighboring countries the Czech Republic (46 percent), Hungary (53.5 percent) and Poland (58 percent).

These differences are also present at the level of the life insurance penetration ratio, calculated as the volume of gross written premiums against gross domestic product (GDP).

In addition, in Romania 0.3 percent of the monthly average gross salary is allocated to life insurance while in other countries in the region it is 2 percent. So, while the average Pole devotes up to EUR 17.2, the typical Romanian spends just EUR 1.5. At present, Romanian consumption is in the process of convergence regarding insurance, including life. And while the market share of life insurance in the entire insurance spectrum is small, including in comparison with our neighbors, we will help to reduce this gap in the years to come. In such conditions, we can expect an increase in the life insurance market.

How much has the current economic downturn affected the local life insurance market?

Consumers have had their trust in financial institutions dented to some extent. Nevertheless, life insurance is an instrument that is very carefully regulated under both local and international legis-

Focus on quality: Aviva has adapted in response to the crisis, says Mihai Popescu lation. The money that customers give to their insurers is invested in the safest instruments that exist. However, I think that institutional trust will recover. There were crises also in the 80s and 90s. There are simply economic cycles that repeat one another. It is likely that the current difficulties will be greater than we have seen in the past ten years but this is not something new.

What segment of the insurance market was the most dynamic last year?

There were no spectacular increases on any of the life insurance market segments, given that we’re speaking about a market that has posted only slight increases in the past twelve months. In those cases where the dynamic of the insurance class was higher, this was because of a favorable computation basis.

What are the main ways in which the current economic crisis has changed Romanian behavior regarding life insurance?

I think that the last two years of crisis had a huge effect on Romanians’ attitude towards saving, making them realize that

nobody but them will assure financial protection for their family or a higher income when they retire. So I think that this period brought it home to Romanians that life insurance is necessary.

What importance do Romanians attach to financial planning?

Not as much as we would like or think necessary. Romanians are reluctant to take out life insurance in the still unstable current economic context. They prefer to allocate their funds to more demanding needs and put off buying life insurance. They are focused on the short term, which reduces their interest in investments in medium- and long-term financial instruments. They also don’t save money because they feel as if they don’t earn enough to do so. The level of financial education is still low but actually better than in recent years. Plus, the idea that “I don’t need life insurance because nothing bad will happen to me” is still deeply implanted in Romanians’ minds. This mentality is changing but the process moves with small steps and needs a very long period of time. We are

hopeful that Romanians will become more responsible about their financial protection because they have started to be aware of the importance of acting themselves in order to safeguard their financial future.

What insurance product has been the best seller for Aviva on the local market this year?

Complet, a long-term plan that provides a sum intended to offer financial protection for the family if the breadwinner dies prematurely. Our customers can choose additional options like covering unpredictable expenses in the event of an accident, invalidity or serious illness.

What is Aviva’s strategy for 2011?

This year Aviva has focused on operational efficiency and reorganization. Because we are going through another year of crisis we are concentrating on efficiency and ensuring that each Aviva customer has all the necessary information to know exactly what product he or she has bought and what to expect. It is more important for us to offer quality services to our customers and that’s why 2011 is a time of reorganization and major investments in the operational side.

anda.sebesi@business-review.ro

www.business-review.ro Business Review | October 10 - 16, 2011

WHO’S NEWS

WHO’S NEWS 19

Business Review welcomes information for Who’s News from readers. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro

Madalina Racovitan has been appointed tax partner by KPMG in Romania. She joined the company in 1999. Racovitan has developed KPMG’s international executive services (IES) practice over several years, building up extensive expertise in personal taxation. She has coordinated tax projects involving a wide range of sectors, including oil, electronics, software, as well as food and beverages. Racovitan now also heads the firm’s people services, which combines the work of IES, payroll outsourcing and human resources advisory.

Speranta Munteanu has benn appointed partner, advisory, transactions & restructuring by KPMG in Romania. She joined the company at the beginning of this year. In the course of her professional career, Munteanu has developed insolvency and restructuring as her main specialism, and has also been actively involved in the development of the related professional bodies of valuators, insolvency practitioners and turnaround managers.

Daniela Oprescu is the new director for tax - international executive services at KPMG in Romania.

She has been a key member of the international executive services team for several years.

Oprescu has supported clients from a wide range of sectors and has an extensive understanding of tax and social security issues affecting expatriates in Romania, and Romanians who work outside the country. She is currently actively involved in the development of KPMG’s coordinated people services line of business.

Teodora Alecu has been appointed director, tax - transfer pricing by KPMG in Romania. She has developed the company’s transfer pricing team over the last five years, anticipating legislative change and the need for Romanian companies to have correct transfer pricing policies, together with the right documentation to justify them before the tax authorities. Alecu holds a PhD diploma in Economics.

Mihai Rada is the new director, management consulting - technology, media and telecommunications at KPMG in Romania. He has developed the company’s advisory practice for the telecom industry over several years

and is the firm's country lead for advisory services provided to telecom clients. Rada joined the company in 2001 showing interest in technology as a key growth area. One important period in his career was his secondment to KPMG UK in 2006.

Cristian Itu has been appointed director of management consulting and the public sector at KPMG in Romania. He has made a significant contribution to the development of the IT regulatory practice at KPMG, assisting Romanian companies in complying with statutory laws and regulations. Moreover, Itu is involved in developing KPMG’s professional services in the public sector, with a focus on improving operational performance and technology as well as on project management services for public ent ties.

Dragos Radulescu has joined the Graffiti BBDO advertising agency as head of the new business creative team. He is the second creative director in the team after Mihai Gongu started working for the company last year. Radulescu has ten years of professional experience in communication and has previously worked for DraftFCB where he held a similar position for three years.

Kurt Ternegg is the new proposed president of the board of administration and administrator of Lasselsberger and Sanex.

He is replacing Christian Morath, who has given up the position. Ternegg, who is 41 years old, has, besides academic credentials in trade and business administration, a long professional career in investment banking and industry. Alongside the Bucharest and Cluj Napoca management teams, his objectives will be to optimize all essential internal processes, consolidate and expand the companies’ market position, and develop their product portfolios.

Eric Remisz has been appointed general manager of ArcelorMittal Galati, replacing Thierry Le Gall, who announced he was stepping down for personal reasons. Le Gall will be continuing his work as part of the management of the Flat Carbon Europe division of ArcelorMittal.

Remisz has been a deputy general manager of Apa Nova for the past six years and previously worked for seven years for the French division of British Petroleum, where he held several positions, the most recent being technical director.

www.business-review.ro Business Review | October 10 - 16, 2011

20 CITY RESTAURANT REVIEW

RESTAURANT SELECTION Business Review gives you a selection of top Bucharest restaurants. You can check the full-length versions of all the reviews by our resident restaurant critic, Michael Barclay, on our website www.businessreview.ro.

It’s the real thing

Burebista Address: 195 Calea Mosilor Reservations: 021 210 97 04 Named after one of the brave Dacian tribes’ kings, who defended the land against the Roman conquest, this ethniclooking place has one of the largest menues of Romanian dishes, including specialties such as the delicious fish eggs (‘icre’), pork skin (sorici), and last, but not least, wild boar and deer steak. In the evening there is a live traditional music program.

Photo: Laurentiu Obae

Embassy Terrace Address: 8 Piata Lahovari Reservations: 0733 500 300 The small chain of Embassy bars/restaurants has been the success story of the year. Without doing anything right, they got it right. By word of mouth and without advertising, this terrace, in a dingy location, has become a raging success. The furniture is cheap junk, there is shade but no greenery, but the people just love it. It positively heaves with beautiful (and I mean beautiful) young things, drinking and rocking (in their seats) through the night. Slow, slow service, so get there early.

Lebanon and on... Unlike many identikit restaurants that have jumped on the Lebanese bandwagon, Levantin is authentic

Levantin at Hanul Lui Manuc, Lipscani

they are dead and unobtainable. But this House goes the extra mile by importing allyear-round flavors for you, including: fresh coriander, fresh mint, fresh thyme fresh MICHAEL BARCLAY pomegranate and any number of vegetaGargantua bles you would otherwise find unobtainAddress: 69 Jean Louis Calderon able in out-of-season Bucharest markets.

Reservations: 0722 702 560 You really cannot argue against my premSo the menu arrived and from its vast ise that Romanian restaurateurs and their This lovely place is eccentrically attracchoice of goodies, Blondie and I dined respective investors are the most shorttive inside, but in addition it boasts a delightfully, leafy ‘green’ terrace on the sighted and unimaginative entrepreneurs like kings, at a fraction of the cost of eating lesser food elsewhere. So off to a ‘tabouleh’ fringes of Parcul Icoanei. In fact, the little in the entire restaurant world! which as you all know is a simple cold To prove my point, 20 years ago some terrace has better maintained grassy and shrub areas than the park. It is best visited unknown local restaurateur looked at all the starter of durum wheat, parsley, onion and tomato. But they added pomegranate for lunch or dinner, as it is not a place you produce available in Romania, and creatwould chill out at with nothing but a cold ed a bullshit, phony Italian menu based on seeds and it arrived H-U-G-E, dammit, the size of a main course, and all for the price beer. So look over their menu and go there local, Romanian grown products. of… RON 13. to dine, as it is well recommended.

Since that time, thousands of so-called So still on starters we dived into a ‘Italian’ restaurants have opened up across the nation, each one having the same rub- ‘hummus beyrouty’, a perfect hummus James Joyce which had been inspired by the addition of bish menu. It was a case of ‘follow the Address: 1 Valter Maracinaneau fresh herbs (including coriander) and all leader’ – and this trattoria bullshit still exReservations: 021 311 4177 dressed up with additions of red-hot chilies The people behind James Joyce pub have ists in 99 percent of all ‘Italian’ chophoustogether with fine olive oil and all for the made an effort to break the local bar ’mold’ es in the land. Oh, shame on you all. bargain price of RON 11! Die and go to But saturation point has been reached by embracing gastro pub principles. The with this ‘Italian’ rubbish, and the lazy, heaven, BUT heaven awaited us further as menu is brave and creative. Can they qualify as a ‘gastro pub’? Yes, of course they unimaginative eyes of a new generation of we gorged on their menu.

Well, what are you waiting for by readrestaurateurs scanned the business horizon can. But I do have a complaint, namely: after over ordering a full rack of ribs, I for somebody to show them the light, and ing this article? Why are you not jumping wanted to take half of them home for my thereafter to plagiarize that model. So step into a taxi right now to go there? Do you faithful dog. But the House did not have forward Lebanese restaurants, and, just like need more encouragement? OK, here it comes. the Italian job, in the last two years the toany tinfoil boxes to use as carry-outs. OthPerfect starters such as ‘chips, rice and tal of them has grown to 20 in Bucharest erwise it’s great… well, almost. alone. And that number will grow further. vegetables’ kicked in at a ludicrously low RON 7. Add to that the fact you could have Another case of ‘follow the leader’.

Tibo’s them flavored with Saffron (the world’s So how do you identify the real article Address: Covaci 1 (Lipscani) most expensive spice) again at RON 7, and from the fraud? Simple, just read on!

Reservations: 021 312 2177 you have the bargain of the century.

I am sitting on the balcony overlooking As befits a steak house, the menu contains There were hot and cold starters (each a superb list of high quality cuts. But what the courtyard of the fabulous 17th-centualmost a meal in itself) of stuffed pastries comes as a pleasant surprise is that they ry coach inn of Hanul. It had been lanhave chosen only Italian Tuscan beef and guishing in relative obscurity for the last few of cheese, parsley and mozzarella, or beef Scottish Aberdeen Angus as their two years until new life was breathed into it last fillet and onion, both at a mere RON 12, or sources of meat. Bravo House! Tibo’s is year with the inclusion of a new restaurant better still chicken, pine nut, coriander and yoghurt at a mere RON 17. another quality restaurant to reject the with a genuine Middle Eastern chef.

Blondie and I closed our starter selecAlthough most vegetables in Lebanese dreadful Argentinean crap which has dominated the local restaurant scene for cuisine grow in Romania, for most of the tion with the last of their 23 offerings (beef and lamb sausages), all House-made and year they are ‘out of season’. That means the last five years.

nothing like the local Romanian variety. We then settled down to the vast array of main courses.

Being a woman of simple Romanian gastronomic training, she did not have the sense of adventure and curiosity of a European. So she settled for a simple ‘roast chicken with sesame seeds’. It was anything but simple. A sliced chicken breast was fried in a schnitzel of sesame seeds and served in its own roasting bowl in a wonderful sauce of lemon and garlic, all for a mere RON 17, and washed down with lashings of hot pitta bread.

Having realized her mistake of not being gastronomically adventurous, she then spoiled my meal by mooching off my plates which I had carefully chosen, such as a perfect ‘kofta’ kebab (mixed lamb and beef) of enormous proportion and served with a mountain of hot chili peppers and crisp, fresh, nutty flavored ‘cos’ salad leaves. All at a bargain price of RON 21.

You will not believe the temptations we passed on, all because we were stuffed with bargain basement priced food, such as: Lebanese Halloumi cheese and pitta bread with chicken, yellow cheese and gherkin salad at RON 18. The table next to me ordered it and I asked the shaven headed, tattooed slob who was stuffing it into his face if he approved.

Too gluttonous to answer me he smiled as an unwelcome squirt of food emanated from each corner of his pig mouth. I took this as a silent sign of the affirmative! Yuk. So there it is, dear friends. Go there now before it catches on, because when it does, you will have a problem getting a table because it is the best in town and word is going to spread like wildfire.

First entry players count in all levels of business, so get yourself known there now, or be left waiting outside.

michaelbarclay32@gmail.com

www.business-review.ro Business Review | October 10 - 16, 2011

CITY 21

FILM REVIEW

Melancholia

Courtesy of Magnolia Pictures. Photo © Christian Geisnaes

Bride before a fall: Kirsten Dunst excels as the troubled newlywed Justine

∫ DEBBIE STOWE Directed by: Lara von Trier Starring: Kirsten Dunst, Charlotte Gainsbourg, Kiefer Sutherland, John Hurt, Charlotte Rampling On at: Cinema City Cotroceni, Cinema City Sun Plaza, Grand Cinema Digiplex Baneasa, Hollywood Multiplex, The Light Cinema A bride trudges through a sodden golf course. Dead birds fall from the sky. A boy carves a piece of wood. And an enormous planet crashes into Earth, shattering it.

From the dream-like opening montage of Lars von Trier’s captivating end-of-days picture, it is clear that this is not going to be another cinematic apocalypse-by-numbers, where special effects are bandied around to distract from the clichéd characters, and Bruce/Keanu/John Cusack is bound to save the day – and get the girl – in the end.

After its almost surreally beautiful opening sequence, all set to Wagner’s Tristan and Isolde, the film is divided into two acts, one named for Justine, a bride en route to her wedding reception, and the other for her sister Claire, whose millionaire husband (Kiefer Sutherland) is hosting the couple’s bash. Justine (Kirsten Dunst) is young, beautiful and successful, with a loving husband and night of extravagant revelry ahead of her. But something is badly wrong. As a few hitches – starting with the limousine getting stuck on the way to the party – and awkward ex-

changes escalate into growing calamity, it becomes clear that Justine is on the brink of severe depression, which she desperately tries to forestall for the sake of her husband and flamboyantly dysfunctional family, including warring divorced parents played sublimely by John Hurt and Charlotte Rampling. The second half switches the focus to Claire (Charlotte Gainsbourg) in the aftermath of the disastrous reception, and as the planet Melancholia advances on a possible collision course with Earth.

The title alludes both to the planet bringing our destruction, and to the depression engulfing Justine. Though we know from the first few frames that the world is doomed, top-notch script, direction and acting ensure that Justine and Claire’s troubles are still utterly compelling: Melancholia is a gripping study of mental illness, drawn from von Trier’s own experience of depression. It never hits a wrong note. This is an intelligent, adult film, with realistic, interesting characters and a masterfully controlled portentousness that had me transfixed through over two hours of running time.

Though patently unreal, it reverberates with realism. The sterling cast delivers uniformly spot-on performances: Dunst, whose Justine plunges from blushing bride to near catatonic, is brilliant. von Trier, whose previous films have showcased extreme violence and divisive avant-garde techniques, has eschewed such provocation to produce a polished, grown-up movie. It is a beauty.

editorial@business-review.ro Courtesy of Magnolia Pictures. Photo © Christian Geisnaes

Written in the stars: Melancholia heads towards Earth

www.business-review.ro Business Review | October 10 - 16, 2011

22 IN TOUCH

Business Edu unleashing performance through learning

CULTURAL CALENDAR CONCERTS Helene Segara October 21 Palace Hall

The concert is being organized as part of the French Music Festival in Bucharest and is promoting the artist’s 2011 album Parmi la Foule. Segara will be singing new songs as well as past hits such as Elle tu l’aime, Mrs Jones, Parlez-moi de nous and Il y a trop de gens qui t’aime.

Tickets are available through the Diverta network, Muzica store, Unirea store, Mihai Eminescu bookshop, at Sala Palatului, and online at myticket.ro and biletoo.ro.

Elvis Costello November 3 Palace Hall

myticket.ro and biletoo.ro.

Jane Birkin November 13 Palace Hall

London-born Jane Birkin is the daughter of actress Judy Campbell and David Birkin.

At the age of twenty, she received wide attention in Blow-up, the Antonioni film that received the grand prix at the Cannes Film Festival. She is also known for her relationship with Serge Gainsbourg, with whom she recorded Je t'aime, moi non plus. Besides her acting and singing career, in recent years Birkin has directed a film and became an advocate for democracy in Burma.

Tickets available at myticket.ro.

Tom Jones November 17 Palace Hall

The British singer will be in Bucharest as part of his European tour. Costello started his musical career in 1997 with the album My Aim is True, and was dubbed by critics a “pop encyclopedia “able to reinvent the past according to his own vision.” Many consider his best album the 1982 release Imperial Bedroom, which he recorded with The Attractions.

Rolling Stone Magazine included him in its 100 Greatest Artists of All Time chart.

Tickets are available through the Eventim network.

ISSN No. 1453 - 729X

FILM FESTIVALS Les films de Cannes October 14-20 Studio Cinema, New Cinema of the Romanian Director (National Museum of the Romanian Peasant) The event brings to Bucharest premieres of films from this year’s Cannes Film Festival. They include: Le Havre, directed

by Aki Kaurismaki; This Must be the Place, by Paolo Sorrentino; Un Certain Regard section winner Arirang, directed

by Kim Ki-duk; Ken Loach’s Route Irish; Palme d’Or winner The Tree of Life by Terrence Malick; as well as Lars von Trier’s Melancholia and Woody Allen’s Midnight in Paris. Besides the Cannes collection, the program includes a selection of Romanian films that have been shown in the Cannes festival over the past ten years.

EXPO Red Bull Art of Can October 1- 23 George Enescu Square, in front of the Athenaeum The result of a national campaign seeking talented creatives, the Art of Can

British Documentary October 3 – December 19 Every Monday, starting 19.00 At the New Cinema of the Romanian Director (National Museum of the Romanian Peasant), 3 Monetariei Street.

Free entrance.

The second British Documentary series will start in Bucharest, comprising a collection of 10 documentaries. The projections will take place every Monday, with the exception of 17 October and 14 November. The British Documentary project was initiated by the British Council Romania and aims to present Romanian audiences with the best of contemporary British documentaries, awarded by the Grierson Film Festival in the UK. Featured films: Exit Through the Gift Shop, Requiem for Detroit, Welcome to Lagos, Moving to Mars, Soundtrack for a Revolution, and Wonders of the Solar System: Empire of the Sun.

FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALIST Otilia Haraga JOURNALISTS Simona Bazavan, Ovidiu Posirca COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi, Michael Barclay ART DIRECTOR Alexandru Oriean PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu

PUBLISHER Anca Ionita EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Ana-Maria Stanca SALES & EVENTS Ana-Maria Nedelcu RESEARCH & SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat

Legendary Welsh singer Tom Jones returns to Romania. The veteran performer’s latest album is On Praise and Blame, revealing a more spiritual side, with many gospel and blues influences, a departure from classic hits such as She’s a Lady and Sex Bomb, which made Jones a global star.

Tracks include interpretations of works by Susan Werner, Bob Dylan and John Lee Hooker, alongside takes on traditional songs previously recorded by the likes of The Staple Singers, Mahalia Jackson and Sister Rosetta Tharpe.

Tickets are available through the Eventim network.

During the three days of the forum, participants will have the opportunity to discover innovative ideas, concepts and products, presented by several of the most experienced trainers in Romania and worldwide. Regardless of participants’ experience so far, this event offers the possibility of aiming for one’s highest goals and reaching the maximum level of efficiency.

Business Edu Forum is essential to Learning & Development specialists, both for those working in multinationals and those coming from consultancy firms.

“We have created Business Edu as an interaction area for the Romanian Learning and Development market. We have started with a training and consultancy fair and developed a complex forum, acquiring human resources, Learning & Development competencies. Thus, we have become more than just an event organizer – Business Edu is the creator of an unique product of organizational development,” said Clementina Anghelache, organizer of Business EdU Forum.

The event is focused on three main subjects for debate: October 11 – Why do companies nowadays need Learning & Development?

October 12 – Organizational culture facilitates the learning process October 13 – Learning & Development, from strategy to practice Business Edu is the only online and print publisher with Learning & Development competence in Romania. With seven years’ expertise in designing relevant solutions for institutions and individuals, Business Edu has made a major contribution to the extension of the Learning and Development market in Romania.

ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 Fax: 031.040.09.34 EMAILS Editorial: editorial@business-review.ro Sales: sales@business-review.ro Events: events@business-review.ro

ADVERTORIAL

The Manhattan Transfer November 11 Palace Hall Having started out in New York in the early 70s, the Manhattan Transfer, which is today made up of Tim Hauser, Janis Siegel, Alan Paul and Cheryl Bentyne, has released over 25 albums and won 12 Grammy awards. The band will perform an authentic vocal fusion jazz concert for Romanian audiences.

Tickets are available through the Diverta network, Muzica store, Mihai Eminescu bookshop, at Sala Palatului, and online at

exhibition brings together sculpture, painting, 3D graphics and fashion design in a series of works ranging from beautiful and intelligent to fun and provocative, all inspired by the blue-silver cans. This is the first exhibition of this type in Bucharest, after 42 were held in 24 countries around the world.

Free entrance.

Business Edu launches the eighth edition of Business Edu Forum, taking place between 11 and 13 October at Capital Plaza in Bucharest. Organized under the sign of Learning & Development “Unleashing performance through learning”, the event consists of a series of conferences and workshops, where consultants and managers will discuss the strategies and instruments necessary for the development of a business.