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Romania

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Content

Romania INTRODUCTION

IT & COMMUNICATIONS

• Today’s Romania: Recovering from Crisis and Looking to the Future 4 • President Basescu Confident about Economy in 2012 6 • Romania’s Fact File 7 • German Romanian Chamber Promoting Bilateral Business Ties 8 • Bucharest: Romania’s Business and Cultural Hub 9

• Making Romania a Key Player in Global Information Society 25 • Leading the Way in ICT 26 • Network One Distribution 27 • Radiocom 28

BUSINESS & INVESTMENT OPPORTUNITIES • Ministry Dedicated to Implementing l20 billion in EU Funding 12 • Top Target for FDI 13 • Blue Air 14 • Romania Back from the Brink 15

FINANCE • Finance Ministry Helping to Ensure Continued Macroeconomic Stability 17 • Central Bank Governor Cites Recent Economic Progress 18 • Bank Deposit Guarantee Fund 19 • Banking Sector Meeting EU Standards 20 • Volksbank 21 • Rural Credit Guarantee Fund 21

POWER & ENERGY • Elektromontaj

TRANSPORT • Public Private Partnerships Encouraged by Transport Ministry 30 • Top Priority: Upgrading Transport Infrastructure 31 • Grampet Group 32

INFRASTRUCTURE • Construction Sector Getting Out of the Slump • €5.7 billion in EU Funding for Infrastructure • Con-A • Alpine Romania

34 35 35 36

TOURISM • Putting Romania on the Global Tourism Map 38 • Ramada Majestic Bucharest Hotel 40 • Romania’s Top 10 To See 41 • Starlight Suites Hotel 42 • Hertz 43

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Romania

Today’s Romania: Recovering from Crisis and Looking to the Future Romania: a democratic republic and dynamic free market economy at the crossroads of the EU, the Balkans and fast growing markets to the east. Thanks to its strategic location and access to both the Black Sea and the Danube, the land that is now Romania has been a trade hub for centuries, and today’s Romania is building on its many advantages to position itself as a thriving modern centre for business, trade and tourism. Romania has 21.6 million inhabitants, giving it the EU’s seventh largest domestic market. Romania also lies at the heart of some of the fastest growing markets in the world; it shares its borders with Ukraine, Bulgaria, Serbia, Hungary, Moldova and Ukraine. Romania’s capital city, Bucharest, is considered one of Europe’s top locations for business, while the country’s other main urban centres are developing their own successful economic activities. The Port of Constanta, Romania’s main trade gateway to the world, is the busiest port on the Black Sea. Romania is also crossed by three major pan European transport corridors, including Corridor 7 along the Danube, and has developed sea and inland waterway port services as well as an extensive network of airports. Calea Victoriei in Bucharest

Member of the EU since 2007 Romania aims to be a productive member of the global economy. Romania is a member of the EU (since 2007), NATO, the World Trade Organisation and the UN, among other international organisations, and has bilateral agreements with 177 out of the 191 UN member states. Romania enjoys free trade access to the EU, CEFTA and EFTA markets. Romania has long been a popular target for FDI. In addition to its free trade agreements and strategic location, Romania offers a vast pool of highly skilled human resources with particularly strong expertise in foreign languages, ICT, engineering and cutting edge technologies. Labour costs are low and English is the language of business. Romania also has rich natural resources which include fertile farmland, oil and gas, ample supplies of water, the potential for renewable energy (including wind power), and great tourism appeal thanks to a winning combination of unspoiled natural beauty, beaches, spas and historic landmarks. The recent discovery of major offshore gas fields in Romanian Black Sea waters has drawn significant international investor interest, and

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Introduction

Basarab bridge

FDI continues to flow in to Romania’s infrastructure, tourism, ICT, financial services and industrial sectors.

EU structural funds fuelling massive projects Romania has created an array of incentives to attract FDI, and state agency Romania Trade and Invest provides one stop shop investor services. Romania’s investment appeal includes massive ongoing infrastructure projects supported by EU structural funds, state and local aid schemes, a 16% flat tax rate, stable labour relations, EU standards, a business friendly government, economic stability, one of the EU’s most advanced telecom infrastructures, and a highly developed financial services sector dominated by leading international banks. Foreign investors and companies have many options for entering the Romanian market, including participating in public private partnerships. After a severe slump during the global financial crisis, Romania’s economy is getting back on track. Romania’s GDP rose by 2.5% in 2011, driven by strong performance in the agriculture, construction and industry sectors. Observers are predicting continued growth for the economy this year of around 1.5% to 2%. According to economic analysts BMI, the outlook for the Romanian economy remains fairly bright over the long term. In particular, they cite the limited private sector debt burden, flexible exchange rate and large consumer market.

IMF maintains commitment to Romania After a cabinet shift earlier this year, Romania’s new Prime Minister, Mihai Razvan Ungureanu, met with IMF and European Commission representatives in February to reassure them that Romania’s new government would adhere to the agreements the country had signed with the IMF, the EC and the World Bank. The current IMF agreement provides €1.6 billion in support for Romania up to 2013. After the recent meeting, Jeffrey Franks, the IMF’s representative in Bucharest, commented, “Romania met all quantitative targets last year and we have every reason to expect that the agreement will continue.” Challenges for the Romanian economy include subdued demand in the euro area (Romania’s top export market), transport infrastructure which requires continued modernisation, the need to speed up the process of absorbing EU structural funds, and some political uncertainty as the country prepares for national elections in November 2012. On the positive side, domestic demand continues to grow, inflation and unemployment are declining, financial stability has been maintained, and Romania has clearly recovered from the worst effects of the global crisis. This year, Romania will be the target of almost €6 billion in EU structural funds, which should help draw FDI as well as have a positive effect on the country’s balance of payments. Today’s Romania offers a wealth of opportunities for investors.

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Romania

President Basescu Confident about Economy in 2012 President Basescu was elected for a second five year term in 2009, at the height of the financial crisis. Today, the president is very confident about Romania’s future. In a speech he delivered on March 12, he said, “Romania will be able to finance itself, both by drawing on European funds and by raising money on international markets. We are convinced that Romania can absorb more EU funds in 2012 than it did in 2011 because we have a larger number of projects approved by our government and by the European Commission. This will allow us to focus on job creation.”

Growth in second quarter The president also highlighted Romania’s remarkable economic recovery. He said, “Romania has become credible in international markets. We should no longer be as worried as we were in 2009 and 2010 and even in the first part of 2011, when we could not borrow off the market. Now Romania can not only finance itself but it also has some prospects for economic growth in the second quarter of 2012.” Traian Basescu, President of Romania

Traian Basescu, President of Romania, was elected in 2004 following a referendum in 2003 in which Romanian citizens voted to amend their country’s constitution to bring it up to EU standards. Then Mayor of Bucharest and a former Minister of Transport, he was seen by voters as a leader who could help modernise Romania and strengthen its ties to the EU and global economy.

President Basescu disagrees with predictions that Romania may fall back into recession. He says, “The way in which the results of the fourth quarter of 2011 were grossly misrepresented in the media left the impression of recession looming ahead. This is not true.” The president cited strong performance by the Romanian agriculture sector in the third quarter of 2011 as well as a growth in industrial output, construction and services by the end of the fourth quarter. He noted that public services and construction had received government support over the year. The president points to a growth pattern. He says confidently, “There should be no worries about a real recession. If you compare fourth quarter 2011 with fourth quarter 2010, you can see a clear growth trend. So, why should we be scared about recession? It is true that the first quarter of 2012 will be weaker because of bad weather, but investments and services to the population will recover in the second quarter.”

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Introduction

Romania’s Fact File Politics Form of State:

Semi-parliamentary Republic with two legislative bodies: Senate and Chamber of Deputies

Legal system:

Based on European models and Constitution of 1991

National Elections: Fall 2012 (parliamentary), Fall 2014 (presidential)

Location:

Central Europe

Capital:

Bucharest (Bucuresti)

Border countries: Bulgaria, Hungary, Moldova, Serbia, Ukraine Climate:

Temperate, four distinct seasons, similar to northeastern USA

Population:

Head of State:

President of the Republic, currently Traian Basescu (re-elected on December 6, 2009) Romania’s president is allowed to serve two consecutive five-year terms

National Government:

The government is led by the Prime Minister, confirmed by the Parliament on the nomination of the President of Romania

Head of the Government:

The Prime Minister, currently Mihai-Razvan Ungureanu

Main political parties:

Social Democratic Party (PSD), DemocraticLiberal Party (PD-L), National Liberal Party (PNL), Democratic Union of the Hungarian Minority (UDMR).

21.5 million (2009 est.)

Ethnic Groups:

Romanian 89.5%, Hungarian 6.6%, Other 3.9%

Religions:

Christian Orthodox 87%, Roman Catholic 5%,

Economy at a Glance

Protestant 5%, Greek-Catholic, Jewish, Unitarian Official Language: Romanian Currency:

Romanian Leu (RON)

Area:

total: 237,500 sq km

land: 230,340 sq km

water: 7,160 sq km

Transportation:

62 airports, railway network: 11,385 km, road

GDP per capita: €5,693 (2010 est.) GDP real growth rate: 2.5% (2011 est.) GDP contributions agriculture (12.3%), industry (37.8%), by sector: services (50%) Total exports:

€37.4 billion (2010 est.)

network: 153,359 km, waterway network: 1,724 km Export commodities: machinery and equipment, textiles and footwear, metals and metal products, machinery and equipment, minerals and fuels, chemicals, agricultural products Exports - Italy (17.2%), Germany (16.9%), France major partners: (7.7%), Turkey (7%), Hungary (5.6%), UK (4.1%) Total imports:

€43.2 billion (2008 est.)

Import commodities:

machinery and equipment, fuels and minerals, chemicals, textile and products, metals, agricultural products

Imports - major Germany (17.2%), Italy (12.8%), Hungary partners: (6.9%), Russia (6.3%), France (6.2%), Turkey (5.4%), Austria (4.8%)

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Romania

German Romanian Chamber Promoting Bilateral Business Ties The German Romanian Chamber of Commerce and Industry, founded a decade ago to help step up business ties between Germany and Romania, now has over 500 members and is Romania’s largest bilateral chamber of commerce. “We are very active in supporting German investment in Romania, and we also assist Romanian companies seeking to enter the German market,” explains Radu Merica, Chairman.

Romania offers exceptional advantages for German investors, Radu Merica believes. He says, “The German and Romanian economies are so different from each other in many ways, that they complement each other. Germany, one of the world’s biggest exporters, has a high-tech economy, based on research and development, as well as creativity. Romania, for the time being, is a country which still needs more high technology and modernisation, and in the meantime we can offer a well trained labour force at lower costs than in Germany. Romania can be an extension for German companies, particularly smaller and mid-sized companies, which do not have the means to set up operations in countries like India and China. Such companies can set up businesses and industrial operations here in Romania, at lower costs in a location not far from their headquarters.”

Dr. Radu Merica, Chairman German Romanian Chamber of Commerce and Industry

Key sectors offer particularly strong attractions The IT sector offers particularly strong appeal for investors in Romania. “The IT sector has become one of Romania’s biggest sources of exports and this sector is certain to continue to grow thanks to our highly skilled workers. Romania has already produced all kinds of specialised software,” Radu Merica says. He also cites investment opportunities in Romania’s fast growing energy, agriculture and infrastructure sectors, all of which need foreign investment, as well as new technologies and know how. Romania is supporting more and more public private partnerships in key sectors, in a move to create

even more opportunities for foreign investors. The German Romanian Chamber of Commerce is working hard in cooperation with the government to upgrade Romania’s business environment, which is steadily improving. The German Romanian Chamber regularly organises meetings and information sessions throughout Germany to make potential investors aware of the opportunities and challenges of setting up a business in Romania. Radu Merica points out, “Romania is closing the gap between this country and the EU average, and now is the time to invest here. I urge German companies, particularly small and medium sized companies, to look into opportunities in Romania.”

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Introduction

Bucharest: Romania’s Business and Cultural Hub Bucharest, Romania’s capital city, is the country’s business and cultural hub as well as the main gateway to Romania for tourism visitors. In a location that has been inhabited since 500 BC, today’s Bucharest is a bustling, modern European urban centre with a population of 2.2 million. Bucharest attracted 2.1 million visitors in 2010, when Euromonitor International named it one of the world’s 100 cities most visited by foreign travellers. Last year, Bucharest was ranked one of Europe’s best bases for business in a study by property consultants Cushman and Wakefield. Served by two international airports and extensive road and rail links, Bucharest is easy to reach from anywhere in Europe and beyond. It is no surprise that at a time when many European cities are reporting a decline in tourism arrivals, Bucharest still draws visitors. Bucharest – known as “Little Paris” at the turn of the 20th century – offers wide tree lined boulevards, glorious Belle Époque buildings, parks and gardens, many fine shops and restaurants, a rich cultural scene, luxurious hotels, all kinds of entertainment options, and world class business services.

names of the district’s winding streets honour the craftsmen who worked here: Blanari (furriers), Covaci (blacksmiths), Gabroveni (knife makers) and Cavafii Vechii (shoemakers). Today, the Lipscani District is an upscale neighbourhood with luxury boutiques and many restaurants, museums and art galleries. The 15th century Old Princely Court and Church was built by none other than Count Dracula, who is said to have kept prisoners in dungeons here. Today, visitors can explore the Old Court Museum, which displays remnants from the city’s long history: Dacian pottery, Roman coins, and the oldest known document mentioning Bucuresti (Bucharest), dating from the 15th century. The 16th century Old Court Church nearby is the city’s oldest church and still has some of its original frescoes. University Square (Piata Universitatii), bustling with crowds and traffic, is one of the city’s most popular

Historic landmarks throughout the city Bucharest’s most famous landmarks include Calea Victoriei (Victory Avenue), built in 1692 and renamed in 1879 to honour Romania’s independence. Today, visitors can stroll along the famous street and see some of the city’s most beautiful buildings and sites, including the opulent 19th century Cantacuzino Palace and historic Revolution Square. Nearby are other famous landmarks: Romania’s former Royal Palace, now housing the National Art Museum; the stunning Romanian Athenaeum, Bucharest’s most prestigious concert hall; and beautiful 18th century Kretzulescu Church. In the heart of Bucharest’s historic city centre (Centrul Vechi al Orasului) is the Lipscani District, dating from the 15th century and named for the many German traders from Leipzig who once had shops there. The

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Romania

meeting places. It is lined with architectural landmarks, including the Bucharest National Theatre, 18th century Coltea Hospital and its lovely church, and Sutu Palace, now the home of the Bucharest Art and History Museum. Nearby is the University of Bucharest, one of Romania’s prestigious educational institutions.

World’s second largest administrative building Parliament Palace, dating from the communist years, is the second largest administrative building in the world after the Pentagon. Built in the 1980s, it now houses Romania’s Parliament and serves as an international conference centre. Bucharest’s many museums honour the city’s long history. In addition to the Bucharest History Museum, visitors can explore the collections in the Dr. Moses Rosen Museum of the History of the Romanian Jewish Community, the Museum of the Romanian Peasant showcasing Romanian crafts and traditions, and the National Art Museum, among many others.

World Trade Centre: ideal event venue The World Trade Centre Bucharest, the biggest property development in Romania in the post communist years, is a world class venue for trade shows, conferences and other business events. The 40,000 sq m trade centre contains state of the art adaptable exhibition space, offices, a conference centre, a four star hotel, retail outlets and restaurants. Sorin Mircea Oprescu, Mayor of Bucharest, aims to enhance the city’s attractions for business and tourism visitors as well as for residents. He says, “My ambition is to bring Bucharest closer to its

European counterparts. My priorities are infrastructure development and public services as well as ensuring high quality of life for the people of Bucharest.” The mayor has overseen a number of major infrastructure projects, including the Basarab Overpass, which is streamlining traffic flows, as well as ambitious healthcare and education initiatives. Sorin Mircea Oprescu welcomes foreign investors to participate in Bucharest’s development. He

says, “We have a significant number of ongoing projects. Many of these, such as building parking facilities in the downtown area, need to be achieved through public private partnerships. Bucharest will only get better as we continue to rehabilitate our architectural treasures, implement more green areas and environmentally friendly technologies, and improve the city’s infrastructure and services. Bucharest is an excellent example of unity through diversity, a model for the European Union.”

• Ministry Dedicated to Implementing l20 billion in EU Funding • Top Target for FDI • Romania Back from the Brink

Business & Investment Opportunities

“Many companies from Western Europe are already involved in many of our development projects, and we welcome more companies to come here.” Leonard Orban, Minister of European Affairs

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Romania

Ministry Dedicated to Implementing €20 billion in EU Funding Romania has been allocated over the period 2007 – 2013 a potential €20 billion in EU funding support and the country is committed to using these funds as quickly and effectively as possible. Last year Romania created a new Ministry – the Ministry of European Affairs – to oversee this process and to promote closer business ties with the EU. Leonard Orban, Minister of European Affairs, explains, “Our current priority is to implement all our planned projects, and we have managed to allocate more than 60% to concrete projects.” Out of the projects approved, the Romanian authorities have identified 100 priority projects with total budgets (including EU and national contribution) of €10 million up to €500 million each; the latter is the construction of a highway connecting Orastie and Sibiu. “We have many big projects in the field of waste and water management, transport and energy infrastructure,” Minister Orban points out.

Leonard Orban, Minister of European Affairs

One challenge is to absorb EU funds more rapidly. Romania has absorbed around 7% of the structural cohesion funds so far and the Ministry of European Affairs is determined to increase that percentage to 20% by the end of 2012. Romania has to absorb an additional €1.2 million in EU funding this year in order to avoid losing any allocated money and around €6 million in 2013.

means establishing a new system that is modern and transparent.”

Promoting sustainable development

Romania’s ambitious EU funded projects are creating exciting opportunities for international investors. Leonard Orban points out, “Many companies from Western Europe are already involved in many of our development projects, and we welcome more companies to come here. We need their expertise, and they will find many reasons to invest in Romania. This country offers a skilled labour force at attractive prices, a large domestic market, and many high potential sectors. FDI in Romania is a win for this country and for investors.”

The government recognises that EU financial support is crucial for Romania’s sustainable economic development and fiscal health. Leonard Orban explains, “Romania cannot afford to waste this huge opportunity to modernise. Achieving the goal set by the National Strategic Reference Framework 2007 – 2013, namely the absorption of at least 90% of the EU funds available to Romania, requires significant effort and basically

Romania is definitely making progress in getting its projects off the ground. Minister Orban notes that the improvements in infrastructure and economic performance that the EU funds can help Romania achieve, will be beneficial not only for the country but also for the EU as a whole.

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Top Target for FDI Romania has an impressive track record as a target for foreign investment, and a number of leading multinationals in a wide range of sectors already have a presence in the country, from banks to auto parts manufacturers. They are drawn to Romania’s open economy, skilled human resources at low prices, well developed communications and transport infrastructure, strategic location, and business friendly environment. An EU member since 2007, Romania enjoys free trade with other EU member states as well as EFTA and CEFTA countries. Romania is an ideal base for companies looking to access regional markets. In addition, Romania – with a population of over 21 million – also has the EU’s seventh biggest domestic market. Romania’s location is a definite advantage: set at the crossroads of the EU, the Balkans and the former CIS countries, Romania is positioning itself as a leading export oriented economy. Romania is crossed by three pan European transportation corridors, and the Danube River gives waterway access to Romania’s Port of Constanta, the biggest port on the Black Sea. Romania also has a wealth of natural resources that include rich farmland, water, oil and gas, and the potential to develop renewable energies.

Key sectors for foreign investors FDI has driven the Romanian economy for many years. Investors will find a strong regulatory environment providing an equal playing field and investment

New €60 million second terminal at Romania’s main airport

protection, along with a favourable fiscal policy that includes a 16% flat tax rate, one of the lowest in the region. An Ernst and Young report on Romania in 2010 cites the sectors that have attracted the most FDI: the automotive industry, insurance, food processing, telecommunications, construction, consumer goods manufacturing, and, more recently, renewable energy, with a focus on wind farms. After a major slump during the height of the global crisis, Romania’s economy bounced back in 2011 and most international observers are predicting a positive future for the country. The European Commission recently reported that “Romania has a fiscal risk close to the EU average and two times lower than Greece’s,” while AT Kearney reported last year that “Romania remains attractive for global services, ranking 25th in our recent survey of 50 countries, and Romania performs better than its regional competitors Hungary, the Czech Republic and Slovakia.” Ernst &Young recently ranked Romania among the world’s top countries in potential for renewable energy development, while the Cushman & Wakefield “European Cities Monitor 2011” named Bucharest one of Europe’s top 36 business destinations.

Romanian companies leading the region in revenues Romanian companies dominate in the 2010 “SEE Top 100” report, and Romania was the biggest contributor to the region’s total GDP for the year. Romania’s OMV Petrom Group remained number one in the region in revenues in 2010 for the third year in a row while BCR

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Romania

Erste Romania was the leading bank. The combined revenues of Romanian companies in the top 100 in 2010 reached €40 billion, almost half the overall top 100 total of €87.4 billion. There is still significant room for growth. As the Ernst and Young study points out, “Most sectors of the Romanian economy remain underexploited and offer great potential, particularly manufacturing, agriculture, and tourism. The real estate sector also offers growth opportunities. Romania’s industrial production rate grew by 4% in 2010 in spite of the global downturn thanks to increased demand from Western Europe for Romania’s manufactured goods, such as cars, textiles, chemicals and steel products.” The agency Romania Trade and Invest is ready to assist potential investors.

Incentives target priority areas To keep foreign investment flowing in, Romania offers a number of incentives for investments which will promote regional development and cohesion, environmental protection and rehabilitation, energy efficiency and renewable energies, R&D, healthcare, training and job creation, technology transfer, tourism, food processing, manufacturing, water and waste management, and ICT. Romania has developed free zones, technology parks and industrial parks which serve as an ideal base for foreign companies. According to the Romanian National Statistics Institute, overall investments in the Romanian economy grew by 9.2% in 2011 compared to 2010, including a 22.1% growth in the fourth quarter of 2011 compared to the same period the previous year. One new investment targets the renewable energy sector: Romania’s first Research Institute for Renewable Energies was inaugurated in Timisoara (Western Romania) in March this year in a €17 million initiative implemented by Traian Vuia Politechnics University and financed mainly with EU structural funds. Another new investment is in the healthcare sector; Group Medicover opened its fourth private hospital in Bucharest at the end of January this year and reported revenues of €100,000 in the facility’s first month of operations; the owners anticipate €4 million in revenues by the end of 2012. “We completed the Medicover hospital in two years with a total investment of €20 million,” explains Catalina Balan, General Manager. As many investors have already discovered, now is the time to target Romania.

Blue Air

Airline’s ‘Smart Flying’ Means Added Value for Passengers On December 13th 2004, Blue Air, the only Romanian airline company with 100% private equity, flew for the first time. The company was founded with the desire to create a safe, comfortable and affordable flight alternative to the most important destinations in Europe. In two words: Smart Flying. Blue Air operates 29 routes in Europe and extends continuously after a complex process of business restructuring in 2010. This process was necessary to maintain the airline ‘in good shape’ so that it can face the new challenges in the economy. Until now, more than 6.5 million people have chosen Blue Air services and their number is constantly growing due to service diversity and competitive prices provided by the company. Sherif Ussama, General Director, explains, “Blue Air distinguishes itself with its Smart Flying approach, which means added value for our customers and in this way we will remain one step ahead of our competitors. This year we plan to develop boldly, but realistically. Our fleet will reach ten aircrafts, we are opening four new routes in the summer schedule and we will start to touch markets that others did not touch and these will be a niche market for us. Blue Air is also focused on becoming more popular among business customers since the airline flies to main airports for over 80% of its destinations. Considering this, starting late March, all flights operated in Bucharest will be moved to the main airport of the city.” At the World Low Cost Airline Conference held in London on September 30th 2010, Blue Air was declared the number one low cost airline company at the Change in seat capacity Category in the previous year.

www.blueairweb.com

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Business & Investment Opportunities

Romania Back from the Brink Romania GDP - Nominal GDP at Current Prices Total GDP, Current Prices, Mio E 200 180

Growth Rate, % 8.0

7.1%

178.91 Mio 5.2%

160 140

3.7%

136.845% Mio

4.4%

0.5%

0.0

100

-2.0

-4.0

-6.0

40 -7.7%

20 0

4.0 2.0

2.4%

120

6.0

2008

2009

-8.0 2010

2011

2012

2013

2014

-10.0

Estimates by the CNP, Chart by Romania-Central.com

Like many countries, Romania experienced a sudden reversal of fortune in 2008 when, after years of achieving some of Europe’s highest GDP growth rates – 6.3% in 2007 and 7.3% in 2008 – the country’s economy began to unravel in the wake of the global financial crisis and the easy credit and heavy foreign investment which had fuelled Romania’s growth began to dissolve. The Romanian central bank raised interest rates several times in 2008 and was forced to intervene in currency markets to prop up the leu. In 2009, the situation worsened, affecting first the construction sector and then the real estate, banking and financial services sectors. Romania’s GDP fell by over 7% over the year, prompting Bucharest to seek an emergency assistance package from the IMF, the EU, and other international lenders. Drastic austerity measures, as part of Romania’s IMF agreement, led to a GDP contraction of around 2% in 2010.

Turnaround in 2011 The real turnaround began in 2011 when the Romanian economy achieved over 2% growth, a sign

that the fundamentals which supported Romania’s strong performance in the past remain intact. This year the positive trend seems to be confirmed. Romania’s annual inflation rate dropped to an historic low of 2.59% in February 2012, while many analysts predict a return to GDP growth in the second quarter of the year after a slowdown in the first quarter linked to severe weather. Observers predict either a slight drop or slight growth over the first quarter of 2012 and stronger growth in the second quarter, for an overall positive growth trend for the year of between .5% and 1.5%; some observers even predict 2% or more. According to Romania’s Ministry of Finance, the main challenge for Romania during the 2012 election year is to stay within the ambitious budget deficit target it has committed to. Romania aims to reduce its budget deficit to 1.9% of GDP by the end of the year from 4.4% in 2011. While Minister of Finance Bogdan Dragoi recently warned of a potential “technical recession” in the first part of 2012, he added that he believed growth would return by the end of the year. He said, “The first quarter economic decline has been prompted by bad weather and a block in the transfer of goods, but the demand for these goods is there and will come back later in the year.” Romania is proving it can withstand severe economic pressures and rebuild its economy.

• Finance Ministry Helping to Ensure Continued Macroeconomic Stability • Central Bank Governor Cites Recent Economic Progress • Banking Sector Meeting EU Standards

Finance

“The strong banking sector has become an anchor for Romania’s economic recovery.” Mugur Isarescu, Governor of the National Bank of Romania

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Finance

Finance Ministry Helping to Ensure Continued Macroeconomic Stability Romania’s Ministry of Public Finance is committed to maintaining macroeconomic stability not only for Romania but also for the region. Gheorghe Ialomitianu, former Minister of Public Finance, explains, “We promote fiscal reforms at the local and regional level as well as the national level. We are working closely with the National Bank, the International Monetary Fund and the European Bank for Reconstruction and Development to ensure the stability of Romania’s financial system over the medium and long term.” The Ministry of Finance played a leading role in a recent programme to help Romania recover from the effects of the global financial crisis. “This programme has been very successful and Romania has regained the trust of European markets thanks to the reforms we have made,” former Minister Ialomitianu points out.

Re-launching the Romanian economy Investing in the future is crucial for Romania in its drive to create more jobs and maintain economic growth. Gheorghe Ialomitianu says, “We are re-launching the Romanian economy. Our objective for 2012 is to allocate over 7% of Romania’s total GDP towards investment. We also aim to get the budget down to less than 3% of GDP and to continue to reduce the costs of the public sector, which have dropped from 9.5% in 2008 to 7.4% in 2011; we aim for 7.2% for 2012.” Infrastructure – particularly Romania’s road network – is a top target for the government’s investment programmes. Gheorghe Ialomitianu explains that Romania’s Ministry of Transport will focus on promoting public private partnerships for infrastructure projects, creating many new opportunities for foreign investors and companies. “The Ministry of Finance’s role in these projects will be to make sure they meet EU laws and standards,” he adds.

Gheorghe Ialomitianu, former Minister of Public Finance

Romania offers many advantages for investors, the former Minister of Finance believes. He points out that in addition to macroeconomic stability, Romania has low cost skilled labour, a growing consumer market, a favourable tax regime, and a business friendly government. In fact, investors whose businesses will create new jobs can count on financial support from the Ministry of Finance. “I have signed many agreements with foreign companies this year to provide them with financial assistance to launch new projects,” former Minister Ialomitianu says. The Ministry of Finance has also developed online systems to reduce red tape for investors. To potential investors in Romania, Gheorghe Ialomitianu concludes, “Romania is open for investment, and the foreign companies which are already operating here have been very profitable.”

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Romania

Central Bank Governor Cites Recent Economic Progress The National Bank of Romania Governor notes that the impact of the global crisis was greater on Romania than anticipated, but thanks to the government’s efforts as well as assistance from the EU and the IMF, the country’s economy has stabilised. He adds, “Investors should know that Romania is now preparing for what I hope will be a long term cycle of economic growth. However, we must continue to be vigilant concerning the current economic environment in Europe, including in Greece, which has changed greatly.”

Focus on sustainability

Mugur Isarescu, Governor of the National Bank of Romania

Romania, which was achieving rapid growth in 2008, was hit hard by the global financial crisis and European debt turmoil. Today, however, thanks to stringent fiscal policies and the effective leadership of the National Bank of Romania, the Romanian economy is seeing the light at the end of the tunnel. Mugur Isarescu, Governor of the National Bank of Romania, explains, “The role of the central bank is to keep Romania’s macroeconomic framework stable and we have done this. We have reduced inflation to 3%, below the EU average, and we aim to take it even lower. In addition, the strong banking sector has become an anchor for Romania’s economic recovery.”

Romania’s leaders aim to achieve sustainable growth, even if the process takes longer than originally anticipated. Mugur Isarescu says, “Our biggest challenge is to navigate through the new conditions in Europe and to sustain our country’s economic development. Economic recovery will be slower than we would like, but it is better to be slow and sure.” Foreign investment is crucial to Romania in spurring on its recovery and reaching its development goals, and the government is doing everything it can to make investing in Romania as easy and attractive as possible. Mugur Isarescu highlights several sectors which he feels have particularly strong potential, including agriculture, energy, transport, ICT and the auto industry. He says, “The National Bank of Romania and the government are here to provide stability and a secure environment for foreign investors.” A top priority for Romania over the next few years is to ensure it absorbs EU funds more rapidly and efficiently. Mugur Isarescu says, “Speeding up the process of absorbing these funds can not only make Romania stronger and its economy more sustainable but can also make sure that EU funds serve as a catalyst for stimulating other investments in Romania.”

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Finance

Bank Deposit Guarantee Fund

Deposit Guarantee Fund Helping to Ensure Financial Stability The Bank Deposit Guarantee Fund (FGDB), Romania’s deposit guarantee scheme, plays an essential role by helping to ensure depositors’ trust in Romania’s financial services system. CEO Eugen Dijmarescu explains, “The Fund guarantees deposits held at Fund member credit institutions, no matter the denomination, within the limits and according to the terms set by the EU legislation.” The Bank Deposit Guarantee Fund is Romania’s only institution whose mission is to guarantee the deposits of natural and legal persons (mainly small and medium sized enterprises) held at member institutions, and to pay compensation to covered depositors when deposits become unavailable, up to a guaranteed ceiling of €100,000. FGDB has 33 member credit institutions, all legal persons licensed by the National Bank of Romania. Deposits with the other 8 EU banks’ branches operating in Romania are covered by the guarantee schemes in their home countries, as established by the European law.

Value of deposits now 73 times higher than in 1997 Eugen Dijmarescu says that at the end of December 2011, the deposits covered by the Bank Deposit Guarantee Fund stood at 143.1 billion lei (€33.13 billion), which represents 50% of total deposits held with member credit institutions. “The value of guaranteed deposits

has gone up over the years due to the extended scope of guarantees and raised guarantee levels. Consequently, the value of guaranteed deposits in nominal terms is now more than 73 times higher than back in 1997,” he notes. In over 15 years of activity, the FGDB has steadily consolidated its resources and the coverage ratio nowadays is 1.5 %, which is among the highest in the EU. The Fund invests its resources in line with an annual investment strategy determined by the Fund’s board and approved by the National Bank of Romania, mainly within Romanian commercial banks, thus insuring liquidity to the Romanian market and contributing to the stability of the market. Since 1996 the Bank Deposit Guarantee Fund has focused on resolving issues related to the failure of credit institutions in Romania. For example, the Fund paid compensation to depositors at seven bankrupt Romanian banks, and, in its appointed role as a judicial liquidator of failed financial institutions, the Fund has recovered significant percentages of the assets of these banks. The Bank Deposit Guarantee Fund adheres to the highest EU and global standards and is an active member of the two international professional organisations in its field: the European Forum of Deposit Insurers (EFDI) and the International Association of Deposit Insurers (IADI). The Fund has also established partnerships with similar institutions worldwide as part of its effort to maintain best practices in all areas of its operations.

In November 2011, the Bank Deposit Guarantee Fund joined the National Committee for Financial Stability, whose mission is to consolidate Romania’s institutional framework in order to ensure the country’s financial health now and in the future. Following the concern for insuring the financial stability, starting in 2012, the Fund’s attributions are enlarged as the Fund can participate in the measures for restructuring troubled credit institutions and could even become their administrator.

BANK DEPOSIT GUARANTEE FUND

3 Negru Voda St., bldg A3 030774 Bucharest Tel: +40 213 205 120 office@fgdb.ro www.fgdb.ro

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Romania

Banking Sector Meeting EU Standards The Asociatia Romana a Bancilor (Romanian Banking Association) has been spurring on the development of Romania’s banking sector for the past two decades and has become one of the country’s most important professional organisations. All banks currently operating in Romania are members of the Association, which has established a strong partnership with the Romanian government, as well as other national and international authorities. Radu Gratian Ghetea, President, explains, “The Association’s role is to lobby for and promote Romania’s banking community point of view. The government, the parliament, IMF and many other organisations now include us in discussions about major projects for Romania. Our voice is very much appreciated.” A current focus for the Romanian Banking Association is to make sure that all EU banking directives are implemented in Romania. The Association participated in a recent parliamentary discussion regarding banking supervision and the introduction of Basel III banking regulations, and it will continue to play a key role in this process.

Foreign banks account for 85% of total banking assets Romania’s banking sector has already attracted significant international investment. Radu Gratian Ghetea says, “Around 85% of

Radu Gratian Ghetea, President of the Romanian Banking Association

total banking assets in Romania are owned by large international financial sector groups headquartered in Austria, Greece, Italy, France and other countries. The Romanian banking sector offers a safe business environment. Foreign investors can have confidence in working with a local bank here in Romania.” Radu Gratian Ghetea explains that Romania’s banking sector managed to weather the global financial crisis better than the banking sectors of many EU countries thanks to exceptionally strong supervision by the Romanian National Bank and to the support coming from the global headquarters of banking subsidiaries operating in Romania. “They provided this support because of the great potential Romania’s banking sector has,” Radu Gratian Ghetea says. Current projects for the Romanian Banking Association include imple-

menting international financial reporting standards starting on January 1, 2012 and amending Romania’s fiscal code; supporting the position of the banking community in Romania’s process of adapting national legislation to European requirements; continuing the process of adopting Single Euro Payments Area (SEPA) payment instruments in Romania and intensifying communication with payment services users; drawing up a self regulatory framework for lei payments; amending and supplementing National Bank of Romania regulations and provisioning systems; and enhancing collaboration across the banking sector in order to mitigate fraud, cyber crime and card crime. Radu Gratian Ghetea concludes, “The Romanian Banking Association will continue to serve as a productive partner for the Romanian government as well as other national and international authorities.”

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Finance

Volksbank Leading Bank Aims to Be Number One in Customer Service

Rural Credit Guarantee Fund

Volksbank Romania aims to become Romania’s leading universal bank concerning customer service. CEO Johann Lurf says, “Our goal over the next three years is to offer the best customer service of any bank in Romania.

Romania’s Rural Credit Guarantee Fund (FGCR) helps agricultural producers and small businesses get access to credit and other financial instruments.

While we are known primarily for mortgage activities at present, we already offer individual accounts and savings products and we want to be the universal bank of choice for our customers’ day to day operations and savings (house bank).” He adds that Volksbank Romania will continue to focus on its traditional market segments: individuals and small and medium sized enterprises.

Johann Lurf, CEO

Founded in 2000, Volksbank Romania has already established a network of 180 branches and has around 1,500 employees. Johann Lurf was formerly CEO of Volksbank Czech Republic, and he points out that in the Czech Republic, increasing competition has led to greater emphasis on service. This will occur in Romania, he believes, as the banking sector continues to grow. Volksbank aims to focus on quality to gain a competitive edge as new players enter the market. Johann Lurf says, “First of all, we have to understand what our customers want, then to provide suitable products and services. We will strive to establish permanent and transparent relationships with our customers.”

79 Dacia Avenue - Bucharest Tel.: +42 1 303 2364 www.volksbank.ro

Fund Helping Agricultural Sector Develop Its Potential The fund is playing a crucial role in Romania’s National Rural Development Progamme, which aims to modernise Romania’s farms, help farmers acquire modern equipment, and develop the country’s capacity to process raw materials. Romania’s agriculture sector has strong development potential and is increasingly attracting investors.

Dr. Veronica Toncea, General Director

General Director Dr. Veronica Toncea explains that the Rural Credit Guarantee Fund won the tender to administer some €220 million in EU funds for agricultural producers and small businesses. She says, “Our strategy is to support the beneficiaries of European funds in order to ensure financial backing for launching projects. The National Rural Development Programme has an allotment of €8 billion in EU funds, which is available for the whole period of The Programme, respectively 2007-2013. Our fund assists domestic and foreign investors by assuming risks and providing guarantees.” The Rural Credit Guarantee Fund also demonstrates to investors around the world that Romania is absorbing EU funds in the proper way.

Occidentului Street 5 010981 Bucharest Tel: +40 213 125 463 office@fgcr.ro www.fgcr.ro

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Romania

Power & Energy

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Power & Energy

Electromontaj

Proactive Power Specialist Welcomes International Partners Electromontaj, a true Romanian success story, specialises in power distribution and has been instrumental in bringing new power technologies to Romania and other markets. A private company since 1993, Electromontaj celebrated its 60th anniversary in 2009 and had one of its best years ever in 2010 in spite of the global crisis. President Mihai Otto Valeriu explains, “We anticipated the crisis and focused on activities where we would be less affected by it, including the Middle East and Cyprus. This was a very proactive approach at a time when some companies struggled to survive.”

Electromontaj handles every aspect of power distribution, including overhead transmission lines and cables, transformers, medium-voltage and low-voltage transmission lines and cables, power for public transport, electrification of railways, lighting for streets and stadiums, mountain transport, micro-hydropower stations, wind stations, and transformer substations. Electromontaj also specialises in electrical installations for buildings and in the renovation of electrical systems. Consistently proactive, Electromontaj is entering new fields, including mountain transport and wind power, and always reinvests half its profits into the company to fuel continued growth. Mihai Otto Valeriu says, “After Electromontaj was privatised we built a new factory to produce steel towers for overhead lines, then another factory for clamps, fittings and accessories, and then a third factory for insulators, cables and conductors. These three factories support our main activities.” Electromontaj’s 1,100 employees in Bucharest are also shareholders in the company, and their skills and motivation are key factors behind the company’s success.

Ideal partner for foreign investors Electromontaj has positioned itself as the ideal partner for foreign investors in Romania. Mihai Otto Valeriu explains, “We excel at turnkey contracts and one stop shop service, from design through development. Electromontaj is ranked as one of the strongest companies in Romania regarding turnkey jobs, and we are also well known for our transparency and reliability.” Electromontaj is open to partnerships or joint ventures with companies which can bring added value and share Electromontaj’s vision and goals. Mihai Otto Valeriu says that he particularly welcomes partners for wind turbine projects. He adds, “Electromontaj is ready to expand beyond our niche for companies looking to invest in any sector in Romania. We can provide the local knowledge foreign investors need, and investors can be sure that in Electromontaj they will have a fair and reliable partner. We are also ready to join any company involved in our niche market anywhere in the world.”

1 Candiano Popescu Street 040581 Bucharest Tel: +4 21 336 7584 elmbuc@rdsmail.ro www.electromontaj.ro

• Leading the Way in ICT

IT & Communications

“Romania already offers highly skilled human resources and a modern IT infrastructure.” Valerian Vreme, former Minister of Communications and Information Society

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IT & Communications

Making Romania a Key Player in Global Information Society The Ministry of Communications and Information Society has a crucial role to play in ensuring that Romania has everything it needs to take part in the new global information society. Valerian Vreme, former Minister, explains, “Upgrading Romania’s communications to develop a true information society is a major challenge for the country. It means changes in all areas of administration, business, education, culture, working methods and the use of the Internet. The Internet has radically changed our lives and we must keep up.” Valerian Vreme, former Minister of Communications and Information Society

On the communications front, according to Valerian Vreme, Romania has already made significant progress. In fact, Romania is now ranked second in the world in the speed of Internet connections and Constanta’s connections are ranked the fastest in Europe, one reason so many major international IT players have launched operations in Romania. In fact, Bucharest is now recognised as a regional IT sector hub. Developing a true information society comes next, Valerian Vreme believes. He says, “If we have good communications, we are ready for applications, such as virtualisation and cloud computing.”

Meeting EU’s digital agenda The Ministry of Communications and Information Society is aligning its goals with the EU’s digital agenda. Developing cutting edge e-gov-

ernment systems is a top priority, and Romania is well on the way to meeting the targets of its e-government development programme set to be completed by 2015. Valerian Vreme explains, “Romania has recently implemented the time stamp, electronic archives, electronic IDs and e-payment systems as well as much more effective cyberspace security systems. These are instruments that allow major projects developed in public institutions to be addressed. The Ministry is currently coordinating ambitious new e-projects in most of Romania’s state institutions, including the Ministry of Health’s e-prescriptions initiative, the Ministry of Transport’s project with Google Maps, the Ministry of Finance’s e-systems for taxes and many more.” These projects are being financed mainly by the World Bank, the EU, the International Monetary Fund and other international funding sources. “In the future, we plan to form private public partnerships for such projects, and Romania now has a new law for public private partnerships. We have already attracted interest from data centres, information solutions providers and others,” Valerian Vreme explains. Valerian Vreme welcomes more private investment in Romania’s communications and information technology sector. He concludes, “Romania already offers highly skilled human resources and a modern IT infrastructure. We have established the foundations for the transition to a complete information society.”

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Romania

Leading the Way in ICT The Romanian ICT sector, which grew strongly in 2011, is expected to continue to expand as the economy recovers. In fact, industry analysts BMI recently predicted that Romania’s ICT market has some of the best prospects of any in Europe, particularly in the rapidly developing Enterprise Resource Planning (ERP) segment and in household computer sales, forecast to total €705.7 million (US$925 million) this year. The rapid growth of Romania’s ICT sector is underpinned by the country’s advanced ICT infrastructure. Romania’s Internet connection speeds are now ranked the second fastest in the world, while Constanta’s connections are the fastest in Europe. Bucharest has established a solid reputation as a regional ICT hub.

The people factor The people factor is a key reason for Romania’s strong competitiveness in ICT. Thanks to its extensive network of cutting edge university level ICT programmes and R&D activities, Romania has developed a pool of highly skilled, multilingual ICT professionals who are the force behind the country’s thriving ICT outsourcing and software development activities. Romanian ICT firms are globally recognised for their winning price quality

ratio; according to an IMF report, Romania’s ICT services exports totalled over €1 billion in 2010. Romania is working hard to reach the goals of the EU’s “Digital Agenda” and has launched an ambitious e-government programme, E-Romania, which is set to be completed by 2015. E-Romania will help drive ICT investment across various sectors, and the Romanian government will continue to use EU structural funds to support ICT initiatives. A total €383 million has been earmarked for Romania’s ICT sector for 2007 to 2013; about 70% of the funds available to the Ministry of Communications and IT will be used to expand broadband communications infrastructure. The Romanian ICT sector has attracted significant FDI from global leaders like Microsoft, IBM, Oracle (with 22 service centres in Romania), Alcatel-Lucent, HP, Google, Dell, SAP and Siemens, among others. Vodafone, Orange and OTE have invested a combined €7.6 billion in their Romanian subsidiaries so far and all three have announced further investment projects. Inaki Berroeta, Vodafone Romania’s CEO, says, “Clients are demanding more, especially in the data segment, and the growth in this area will continue.” Among new investors, the Austria based Kapsch Group launched a local subsidiary in Romania in 2009 which the group expects will achieve revenues of €15 million in its first three years. Romania’s ICT sector will clearly continue to drive the national economy forward.

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IT & Communications

Network One Distribution

New Name for Top IT Distribution Enterprise Network One Distribution is the new name of Romania’s leading IT distribution specialist. Formerly known as Asesoft Distribution, Network One Distribution specialises in the distribution of IT components and peripherals and is the leader in its sector in Romania with a 20% market share. With more than 2,500 customers in Romania and beyond, Network One Distribution achieved €200 million in turnover in 2011, a 39% increase over the previous year, and anticipates €220 million in turnover this year. The company invested around €1.5 million last year in upgrading its logistics infrastructure to improve its services for its customers and to support future growth. Razvan Ziemba, General Manager, explains, “Changing the name of the company came as a result of our strategy to grow as a regional player. We are looking to expand into Hungary and Bulgaria this year and are open to entering other neighbouring markets through acquisitions.” Network One is already active in Moldova and is also targeting Croatia, Macedonia, Montenegro and Serbia in addition to Hungary and Bulgaria. Network One Distribution expects to earn €4 million in revenues from its activities in Moldova, Hungary and Bulgaria this year and anticipates that its external markets will bring in total revenues of €22 million in 2014. Network One Distribution has been steadily expanding its product

Razvan Ziemba, General Manager

portfolio and will continue to do so in the future. Its products cover the full range of the IT spectrum, from DELL, HP, Lenovo, Samsung Sony and MSI notebooks, to Microsoft software and hardware, LG, Samsung and Philips monitors, LCD and plasma TVs, Gigabyte motherboards and video cards, Western Digital hard drives, Bit Defender antivirus and much more. Network One Distribution prides itself on offering its customers not only world class products but also the best possible ISO 9001 certified services, including financing support, free delivery anywhere in Romania, highly qualified technical assistance, rapid repairs, and a skilled, client oriented team. Network One Distribution works with all the major players in the IT sector, such as DELL, SONY, LG, HP, Microsoft, Samsung, Lenovo, WD, Philips and Seagate, and also produces two brands of its

own, Serioux and Heinner. “These private brands are important as we can control everything from start to finish,” Razvan Ziemba explains. Network One Distribution is committed to supporting Romania’s economic development. Addressing potential investors, Razvan Ziemba says, “Come to Romania! You will find skilled, hard working employees, low labour costs, and many examples of successful companies.”

Asesoft Distribution Marcel Iancu Street 3-5 020757 Bucharest Tel: +40 21 211 1856 razvan.ziemba@nod.ro www.nod.ro

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Romania

RADIOCOM

Dynamic Broadcaster Offers World Class Communications Services RADIOCOM is bringing world class communications to the Romanian market. A state owned enterprise that operates as a private company, RADIOCOM is Romania’s market leader in TV and radio broadcasting and one of the main providers of electronic communications networks and services. The complex services portfolio offered by RADIOCOM addresses mainly the business segment: Internet, VPN, leased lines, integrated services (2 Play bundles) and satellitebased communications services. For more than 70 years, RADIOCOM has been a continuous and active presence on the telecommunications market in Romania and, today, the company is, undoubtedly, an ascending brand, 100% Romanian, with a history dating back to 1936, when the first radio broadcasting transmitter from the Bod region was activated. RADIOCOM is achieving stellar performance. Cristian NITU, Chief Executive Officer, says, “We had a better year in 2011 than in 2010 and we expect 2012 to be even better in terms of revenue. We anticipate a sharp increase in revenues for Internet data and voice services, while broadcasting, our other main business line, is quite stable. We plan to attract private stations to be our customers in the future and we are seeking capital to boost our customer base to one million.”

Cristian NITU, CEO

RADIOCOM has proven it can hold its own against the competition without government assistance. Many of Romania’s leading companies are customers of RADIOCOM.

Pioneering services in Romanian market RADIOCOM is well known for its technological advances and has pioneered a number of services in the Romanian market, including DVB-T, T-DAB and WiMAX technology that is provided under Easy2BiNet brand, a double play solution (connectivity and voice services) offered for both customers segments: business & residential. RADIOCOM has implemented the latest infrastructure, including a 150 m tower and an extensive wireless network based on WiMAX technology, spread nationwide, that provides Internet broadband access even in areas where other telecom operators do not have technical solutions available. “We are perceived as a technology oriented

company made up of engineers, but we are also strong competitors. Over the past few years we have increased our product range and commercial abilities without increasing costs,” Cristian NITU points out. He adds that RADIOCOM welcomes Romania’s switch to digital and the company is ready to deliver its expertise so that the national transition to digitalisation could be made as quickly as possible. RADIOCOM’s mission is to maintain its dominant role as Romania’s main supplier for both public and private stations and networks as well as for electronic communications services. RADIOCOM also plans to develop a strong presence in regional markets and to continue to play a significant role in the local market for electronic communications. RADIOCOM will always put its customers first by responding to their evolving needs.

RADIOCOM, registered trademark of National Company of Radio Communications S.A. 103 Oltenitei Street Bucharest, Romania Tel: + 40 31 500 3001 Fax: + 40 31 500 3013 office@radiocom.ro www.radiocom.ro

• Public Private Partnerships Encouraged by Transport Ministry • Top Priority: Upgrading Transport Infrastructure

Transport

“Our infrastructure upgrades will speed up travelling, shipping and operating logistics services in Romania.” Anca-Daniela Boagiu, former Minister of Transportation and Infrastructure

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Romania

Public Private Partnerships Encouraged by Transport Ministry Romania’s Ministry of Transportation and Infrastructure is overseeing the country’s drive to upgrade its transport systems. Anca-Daniela Boagiu, former Minister of Transportation and Infrastructure explains, “The Ministry has implemented new regulations in order to attract international investment and financing for infrastructure and transport projects, and we have been able to sign contracts for projects worth €2 billion financed by the European Commission. The Ministry hopes to finalise tenders of another almost €2 billion by the end of this year.” Anca-Daniela Boagiu points out that Romania currently has a number of major infrastructure projects underway, including the construction of 434 km of motorway along Romania’s part of European corridor 4 and on the new A3 motorway linking Bucharest with Transylvania. The Ministry will complete a project to upgrade 500 km of national roads by the end of this year, and another 235 km of city bypasses have been financed and are soon to begin. In 2012 and 2013, the Ministry plans to modernise 2,000 km of national roads. Former Minister Boagiu says, “The Ministry will be able to launch even more road construction projects thanks to the money we have earned through the tender process. This success was made possible through our introduction of strict rules regarding public procurement.”

Reform process key to infrastructure development In fact, implementing reforms is a top priority for the Ministry. Anca-Daniela Boagiu says, “It is very important for Romania to have good relations with international funding organisations, but given the current European economic situation, it is also important to be proactive and work on reforms.” Romania’s transport sector offers strong investment attractions, Anca-Daniela Boagiu believes. She says, “Romania is stable and managed to reduce its public

Anca-Daniela Boagiu, former Minister of Transportation and Infrastructure

(fiscal) deficit from 9% to 4% in 2010, and we will continue to do this in years to come. This success will help to improve Romania’s international image and draw international investment.” She adds that Romania’s Ministry of Transportation and Infrastructure particularly encourages public private partnerships involving the construction and modernisation of Romania’s motorways, ports and logistics services. The Ministry is also working to get a major railway modernisation project off the ground. Anca-Daniela Boagiu foresees significant improvements in Romania’s transport infrastructure over the next five years. She concludes, “We will have new direct links to our ports and a newly renovated international airport. Our infrastructure upgrades will speed up travelling, shipping and operating logistics services in Romania. There are a lot of opportunities and a lot of projects on the way. Investors will feel good about their investments and will feel safe here in Romania.”

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Transport

Top Priority: Upgrading Transport Infrastructure Strategically located Romania is rapidly improving its transport infrastructure and establishing itself as a key European transport hub. Romania is crossed by three pan European transport corridors: Corridor 4 linking Western and Eastern Europe, Corridor 9 connecting Northern and Southern Europe, and Corridor 7 along the Danube River, which gives access by waterway to the Port of Constanta and from there to Northern Europe via the Rhine. Romania is also part of the EU’s TEN-T priority axes multimodal transport network and is participating in the EU’s Europe Caucasus Asia Transport Corridor (TRACECA) programme to develop a route from Europe to China via the Black Sea, the Caucasus and the Caspian Sea. Romania has budgeted around €5.7 billion for transport projects over the period 2007 to 2013, of which around €4.56 billion will come from EU structural funds. The EU’s priority is to support “modes of transport that are the least harmful to the environment, such as rail, inter-modal transport and the inland waterways” as well as “connections with renewable energy sources.”

Public private partnerships The government of Romania is actively promoting public private partnerships in the transport sector

Railway station North in Bucharest

to help move projects forward. Many foreign companies have already participated in major transport initiatives in Romania, including US company Bechtel, which is involved in several road infrastructure projects; Spanish company CAF, which is providing trains for the Bucharest subway system; and Swiss company SIKA, which participated in the construction of the Transylvania Highway, Henri Coanda Airport and the A2 motorway. Transport projects in the works include continued improvements in local roads and major highways; improvements in Romania’s port services, including along inland waterways and at the Port of Constanta, the busiest port on the Black Sea; expansion of local and international air transport facili-

ties and services; and new railway developments. In February this year Romania’s Ministry of Transport and Infrastructure announced that the European Commission had approved major railway infrastructure projects in Romania budgeted at a total €900 million; the projects include upgrading 110 km of railway in Western Romania. The ministry plans to announce a number of tenders and concessions for transport projects this year, including for new parking facilities in Bucharest and for work on the Comarnic-Brasov highway and the South Capital Ring Road. Foreign companies and suppliers will find outstanding opportunities in helping Romania reach its goals for the transport sector.

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Romania

Grampet Group

Dynamic Rail Services Group Expanding Its Regional Presence Grampet Group, Romania’s leading services and production enterprise in the railway sector, is an integrated consortium of 14 companies active in all fields of the railway industry. Grampet Group was established in 1999 and has been growing steadily every year, incorporating new services to its portfolio, adding value, and acquiring new companies. Grampet Group is one of the largest enterprises in Romania’s railway industry. Gruia Stoica, Chairman, explains that Grampet Group focuses on developing and modernising all the companies under its umbrella. Client-oriented and competitive, Grampet Group has been increasing its market share every year, particularly in the transport of petroleum products, and it has developed a strong presence throughout South-Eastern Europe. The group’s companies are Grup Feroviar Roman (GFR), Bulgarian Railway Company (BRC), Train Hungary (TH), Rolling Stock Company (RSCO), Transbordare Vagoane Marfa (TVM), Remar Pascani, Reva Simeria, Grampet Debreceni Vagonyar Kft.– Hungary, Trans Expedition Feroviar (TEF), The Institute for Computers (ITC), Eurorail Serbia, Eurorail Company Moldova, Eurorail Ukraine, and Eurorail Logistics Germany. Grampet Group’s regional focus is on pan-European transport corridors and on providing inte-

GFR’s services include domestic and international rail transport of a wide range of products, wagon shunting on industrial platforms, revision and maintenance of locomotives and freight wagons, repairs and maintenance of railway lines, freight wagon rental, and railway logistics. GFR earned a 35% share of the Romanian market in 2011, compared to a 27% share in 2010. Gruia Stoica explains, “GFR keeps growing every year thanks to its strong and credible position on the market and also through its partnership with its customers.”

Gruia Stoica, Chairman

grated services. Gruia Stoica says, “Grampet has extended its activity in neighbouring countries where legislation allows private operators access to the rail services market. Grampet aims to become a strategic player throughout the Black Sea region and in the Balkans.”

Grampet Group’s goals include adding to and improving its rolling stock and services, enhancing the quality of its human resources, and forming partnerships with other companies in Europe and beyond. Grampet Group will continue to focus on customer service and to live up to its motto, “Motion is our business!”

Romania’s biggest private rail freight operator Grup Feroviar Roman (GFR), a Grampet Group company, is Romania’s largest private rail freight operator. In Hungary and Bulgaria, GFR works with Grampet Group companies Train Hungary and the Bulgarian Railway Company, which gives GFR the capacity to provide truly integrated transport services.

S.C. GRAMPET S.A Calea Victoriei, nr. 114, Sector 1, 010092 Bucharest Tel: +40 21 317 3090 office@grampet.ro www.grampet.ro

• Construction Sector Getting Out of the Slump • €5.7 billion in EU Funding for Infrastructure

Infrastructure

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Romania

Construction Sector Getting Out of the Slump Romania’s construction sector, one of the hardest hit during the financial crisis, has begun to recover. In fourth quarter 2011, the sector expanded by 2.7% over fourth quarter 2010 and achieved a 5.7% increase in value added. In addition, investment in construction in Romania, including in equipment manufacturing, rose by 9.2% to reach €15.23 billion last year, according to Romania’s National Statistics Institute. In fourth quarter 2011 alone, investment in construction rose 22.1% over the same period in 2010 and new construction accounted for almost half of total investments over the year. The construction sector has still not reached its pre crisis levels, when investment in construction totalled €24.5 billion in 2008 alone, but the 2011 results are a major improvement over the 29.5% plunge in construction investment in 2009 and the 13.5% decline in 2010. Residential construction still has not begun to recover, however, and dropped by 42% between 2009 and the end of 2011.

Non residential construction grew by 10% in 2011 According to research group Buildecon, “Between 2010 and 2014, residential construction in Romania is forecast to sink to around 26% to 28% of total construction output, whereas from 2014 on, the improvement of macroeconomic stability in Romania might mean a rapid expansion in the subsector.” Meanwhile non residential construction achieved a 10% rise in 2011, and, thanks to a number of office and retail projects underway or planned in Romania, the non residential segment is expected to maintain momentum for the next few years. Claudiu Georgescu, head of the construction materials association APMCR, points out that the payment schedule for public projects has played an important role in the construction industry’s performance over the past couple of quarters since the government, in order to meet IMF criteria, is required to catch up

on its payments. This year, Romanian construction companies and foreign players are counting on major infrastructure projects to keep the construction business on a growth curve. Buildecon expects civil engineering to exceed its pre crisis level in Romania in 2012 and to continue to expand in 2013 and 2014. Secured financing provided by EU structural funds for infrastructure projects, along with the government’s commitment to public private partnerships, will play a key role in the Romanian construction sector’s future. Romania’s Ministry of Transport and Infrastructure has allocated €1.4 billion for road construction in 2012 alone. Buildecon reports, “We expect growth to lead to a comeback in the Romanian construction market in 2012, with transport projects, particularly motorway construction, enjoying extra funding.”

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Infrastructure

€5.7 billion in EU Funding for Infrastructure

Con-A Construction Sector Leader Specialises in Turnkey Projects Con-A, a regional leader in Romania’s construction sector, specialises in turnkey projects and has positioned itself as the ideal local partner of choice for foreign investors in Romania.

Major infrastructure projects in Romania are changing the face of the country. The projects are being financed by €5.7 billion in EU structural funds up to 2013 and by international organisations as well as public private partnerships. The Ministry of Transport and Infrastructure says that €1.4 billion will be spent on road construction in Romania this year. Projects to be completed include the Cernavoda-Constanta, Bucharest-Ploiesti and Timisoara-Arad highways, the Arad-Ordea and BixadSandominic roads, 20 road bridges, and the Arad and Constanta bypasses. A foreign consortium recently began construction on the Timisoara-Lugoj highway. In the railway sector, projects with a total value of around €2 billion have been launched or planned for 2012, while around €7 billion will be spent on rail connections along Corridor 4 up to 2020. The EIB has provided €465 million in loans to finance Romania’s metro rail projects. Romania is also investing in power, water, waste treatment and other infrastructure. Seven companies (including two from China) submitted bids for the construction of the Alum Tulcea cogeneration thermal power plant. Romania and Austria have jointly launched the €3 billion “Danube Strategy” designed to improve inland waterway transport infrastructure, while Romania continues to invest in upgrading its ports. Romania’s infrastructure projects offer outstanding investment opportunities.

Mircea Bulboaca, founder and CEO, explains that Con-A, which achieved a turnover of €53 million this year, has built all types of structures and has established a strong presence across Romania. He says, “We have worked with clients from Austria, Germany, Italy and France. I am always seeking new business opportunities and new investors. Our clients typically choose us because of our portfolio of very successful projects.” Con-A initially imported metal structures for its buildings but after learning new techniques and acquiring capabilities, particularly from its first partner, an Austrian company, Con-A now produces its own construction materials: metallic confections, precast elements, figured reinforcing steel. Con-A aims to continue to play a major role in Romania’s development. Mircea Bulboaca says, “We are looking for companies to invest here in Romania. There are a lot of projects in the pipeline. Con-A is looking for foreign partners who can bring in know-how and new technologies, particularly the ones that are making civil construction environmentally friendly. Con-A has a proven track record as a reliable partner for world class turnkey projects.” CON-A has proven to be a trustworthy partner for large scale projects: in 2011 alone the company portfolio added the construction of a stadium with more than 30,000 seats, having a gross built area of over 43,000m2 (Cluj Arena), a factory and warehouse for one of the largest tyre manufacturers in the world (over 30,000m2), a business centre in Sibiu (25,000m2), refurbishment and construction of showrooms for BMW as well as the execution and modernisation of county roads. CON-A has managed to convince the beneficiaries of these works through quality and promptness and has thus demonstrated that CON-A truly believes in the company motto: The strength to build durably!

Selimbar, jud. Sibiu Str. Mihai Viteazu, nr. 2B - 557 260 Sibiu Tel: +40 (0) 269 560 423, +40 (0) 269 206 300 office@cona.ro - www.cona.ro

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Alpine Romania

Dynamic Construction Firm Applies Highest International Standards Alpine Holding, Austria’s second largest private construction firm, has a 46 year history of rapid development in the construction sector worldwide and has been active in Romania since 1998. Ionel Giuglea, General Director, explains, “Alpine Romania has the same structure as the parent company in Austria, and our building management and high quality concepts are also the same as those of Alpine BAU GmbH.” In 1999, Alpine Romania became the main shareholder of Romanian firms Granitul SA Bucharest and SCAEP Giurgiu Harbour SA, providing Alpine Romania with reliable supplies of raw materials for its local construction projects. In 2002, Alpine Romania reached another major milestone when it was certified for the SR EN ISO 9001:2001 Management Quality System, and in 2007 the company implemented an internationally and nationally certified Integrated Management System.

State of the art asphalt plant and machineries (construction equipment) Alpine Romania invests in the latest technologies more than €25 million to ensure the highest quality performance, and opened a €5 million state of the art asphalt mixing plant near Bucharest in 2006. Ionel Giuglea says, “All the processes in the plant are controlled by electronic systems, guaranteeing the highest quality. Alpine Romania also has its own certified testing lab equipped with latest generation equipment to help maintain the exceptional standards for which Alpine is known in Romania and throughout the world.”

Although Alpine Romania is a young company, it has been completing major, very complex construction projects (more than €0.5 billion) since its beginnings. In 2011 Alpine Romania won the €100 million tender to design and build section two of the Nadlac Arad motorway, which includes a link to the Arad bypass. This project, which is set to be finished by the end of 2012, will streamline connections to the Hungarian border. Alpine Romania stands out from other construction firms in Romania through its highly skilled and motivated team, commitment to delivering projects as promised, advanced technologies and quality controls, support for local community service projects, and strong backing from the parent company in Austria. Ionel Giuglea points out, “Alpine Romania has a good relationship with its clients (both public and private) and is one of the most promising companies in the global Alpine group thanks to the many opportunities here in Romania. We have earned our clients’ trust, and we will continue to invest back into the company because Alpine has made a strong, long term commitment to the Romanian construction market and to the people of Romania.”

SC ALPINE SA Garii Street 11 Mogosoaia 077135 - Ro, Ilfov Tel: +40-31 228 7508 Fax: +40-21 352 4104 office@alp.ro - www.alp.ro

• Putting Romania on the Global Tourism Map • Romania’s Top 10

Tourism

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Putting Romania on the Global Tourism Map Romania definitely has what it takes to become a leading European tourism destination: beautiful beaches, natural spas, unspoiled natural areas, unique historic landmarks, a vibrant culture and a welcoming population. The challenge for Romania’s tourism leaders is to improve the country’s tourism infrastructure and to make the world more aware of Romania’s diverse attractions. While EU structural funds will finance many planned tourism projects, foreign investment is crucial to getting Romania’s tourism industry off the ground.

developed around the country.

Many visitors to Romania come for sun and sea. Beach resorts as well as entertainment and sports facilities have been developed along a 45 km stretch of Black Sea beaches between Mangalia and Mamai, while just inland, visitors can see remnants of Greek culture dating back to the 7th century BC.

Romania’s castles and churches are another reason to travel there. The most famous castles include the 14th century Corvinesti Castle, built on the site of a former Roman camp; the elegant 19th century Peles Castle with its 160 rooms filled with priceless European art; and the 14th century Bran Castle, legendary home of Bram Stoker’s Count Dracula.

Transylvania: unique cultural heritage Transylvania, in central Romania, has a unique cultural heritage: almost 200 Saxon villages built by settlers between the 13th and 15th centuries, seven of which are on

Romania’s coast has long been known for the healing qualities of local natural springs, salty lakes and the sea; spas in Eforie Nord and Mangalia specialise in mud baths and in famed ‘Gerovital’ and ‘Aslavital’ rejuvenation treatments. Romania is home to more than a third of Europe’s natural springs, and 70 spas have been Carpathian mountains

the UNESCO World Heritage list. Sighisoara, Brasov and Sibiu are three of Transylvania’s most picturesque medieval villages. A half hour drive south of Sibiu is Marginimea Sibiului, one of Transylvania’s best preserved ethnographic areas. The Danube Delta and the Carpathian Mountains are among Romania’s most unspoiled natural wonders. The Danube Delta, a UNESCO Biosphere Reserve and Europe’s biggest wetland area, is the home of more than 300 types of birds as well as wildcats, foxes, wolves, bears and deer. Romania’s rugged Carpathian Mountains, where ski resorts attract winter visitors, include the Oas-Harghita range, Europe’s longest volcanic mountain chain.

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Romania’s UNESCO World Heritage sites illustrate the country’s diversity. They include Horezu Monastery, the medieval fortified churches of Transylvania, Sighisoara’s city centre, the wooden churches of Maramures, the Dacian fortresses in the Orastie Mountains, and Bucovina’s painted monasteries, whose exterior walls are fabulously decorated with 15th and 16th century frescoes considered to be masterpieces of Byzantine art.

Promoting tourism investment Foreign investors have been slow to target Romania’s tourism industry. FDI in Romanian tourism totalled only €186 million from 2005 to 2009, in contrast to nearby Bulgaria, which attracted over twice as much investment and achieved €7 billion in tourism revenues between 2006 and 2010. Yet most observers agree that Romania’s natural and cultural attractions surpass anything in the region. Tourism investors who enter the Romanian market now will

enjoy the advantage of leading the way in a sector which seems sure to grow rapidly, given improvements in transport and tourism infrastructure. In fact, an analysis by BCR Bank, a Romanian member of the Austria based Erste group, predicts that Romania’s tourism sector could achieve revenues of €1 billion to €1.5 billion by 2016. BCR Bank’s 2011 study of the Romanian tourism industry notes that what Romania needs in order to make the most of its tourism appeal is to speed up the process of privatisation in the tourism sector, step up promotion of Romanian tourism, absorb EU structural funds more quickly, bring in tourism know-how, train human resources for the hospitality sector, and focus on attracting FDI. Romania’s tourism sector is already beginning to grow. Foreign tourist arrivals rose 11% in the first seven months of 2011 compared to 2010, while tourist stays in Romanian accommodations rose 12.5%. Most importantly, investment in tourism is

increasing. A famed balneotherapy centre at Baile Herculane in southeastern Romania has been modernised, and the government has created a range of financial support mechanisms for investments in Romanian spas this year, among other tourism investment incentives. In the hotel sector, Hungary’s Danubius Hotels Group reported a 6% rise in revenues and a 14% rise in guest numbers in 2011, with particularly strong growth in conference visitors. The Hilton group has been very successful in Romania and opened a DoubleTree by Hilton in Bucharest-Unirii Square in the Romanian capital last year, with more DoubleTree hotels set to open in Ploiesti and Oradea. National carrier Tarom and low cost carrier Blue Air, which began service between Brussels and Bacau and between Dublin and Cluj last year, are helping to bring more international travellers to Romania. Now is the time for investors to enter this very promising tourism market.

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Ramada Majestic Bucharest

Landmark Four Star Property Known for Five Star Service The Ramada Majestic, ideally located in the heart of Bucharest’s financial district within steps of many of the city’s top attractions, offers five star services at four star prices and is consistently ranked a customer favourite. In fact, an impressive 60% of the hotel’s guests are repeat visitors.

The hotel is housed in a landmark 1920s building next to Bucharest’s iconic Odeon Theatre. General Manager Mihail C. Acatrinei explains, “The Ramada Majestic, which has been part of the Ramada group since 2005, is well known for providing customer satisfaction, one reason the hotel has developed and maintained a stellar image throughout the years. We are constantly improving our employee to customer relationships, and we always put the guest first here at the Ramada Majestic.”

Focus on addressing customers’ needs

The Ramada Majestic continues to improve its facilities and services and has embarked on a €3 million modernisation programme that will make the entire hotel a wireless Internet hub and will also enhance the hotel’s “green” credentials.

Explaining the hotel’s success story, Mihail C. Acatrinei cites a commitment to the high standards of the global Ramada group, a focus on staff training, very competent and professional employees, and a proactive approach to potential problems as reasons the Ramada Majestic does so well in achieving customer satisfaction. He adds, “We emphasise communication as a way of making sure we address our customers’ needs.”

Mihail C. Acatrinei urges international travellers to visit Bucharest to discover what the city and Romania have to offer. He says, “The people here in Bucharest are very friendly, cultured and educated, and Romania is a virgin country full of opportunity. Romania has many great places to visit and is a wonderland for any tourist. Come experience Romania and stay with the Ramada Majestic!”

With 111 guest rooms (including 10 exceptionally luxurious Executive Suites and one Presidential Suite), the Ramada Majestic can provide every guest with truly personalised service. The hotel also offers a wide range of amenities, including free high speed Internet access, bed and breakfast service, a restaurant, a coffee bar, a bistro, a swimming pool, and a health and fitness centre with massage services and a sauna. For business travellers, the Ramada Majestic has a state of the art business centre and conference rooms as well as a ballroom for larger events.

Calea Victoriei No. 38-40, Sect. 1, 010082 Bucharest Tel: +40 21 312 2023 / 311 0451 reservations@ramadamajestic.ro www.ramadamajestic.ro www.ramadainternational.com

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Romania’s Top 10 To See 1. Danube Delta

6. The People’s Palace

The Danube Delta is a 5,400 sq km wildlife preserve that is home to 300 species of birds and 160 kinds of fish.

Ranked the second biggest administrative building in the world, Bucharest’s People’s Palace covers 333,000 sq m.

2. The Transfagarasan

Breathe the fresh air of the Carpathians in Predeal, Poiana Brasov, Sinaia, Azuga or other resort towns.

The Transfagarasan road is 90 km of twists and turns across the Carpathian Mountains, with vistas of Bâlea Lake and Bâlea Waterfall. BBC Top Gear ranked it the best drive in the world.

3. Tuica

This powerful plum brandy is a national treasure.

4. Sighisoara

This mysterious, beautiful fortified village in Transylvania was founded in the 12th century.

5. Monasteries and churches

Centuries old monasteries and churches are found throughout Romania, and eight are on the UNESCO World Heritage list.

7. Mountain resorts

8. Thermal springs

Romania has more than 3,000 of them and many are famed for their healthful qualities.

9. Caru’cu Bere

The “Beer Wagon” is a Bucharest landmark and the best place to sample the local brew.

10. Romanian cuisine

Delicious Romanian specialities include cabbage meat rolls (sarmale) with polenta (mamaliga) garnished with sour cream, ciorba de perisoare (meatball soup), ciorba taraneasca (vegetable soup) and ciorba de burta (tripe soup).

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Starlight Suites Hotel

New Suite Hotel a Home Away from Home for International Travellers The new Starlight Hotel in Bucharest, a four star all suite hotel, specialises in offering guests a home away from home. The hotel opened last year and has quickly become a favourite among visitors to Bucharest thanks to its large and well equipped suites, comfortable facilities and exceptional service. As Mihaela Ionascu, General Manager points out, “Starlight is a different concept, which is why guests choose us. Our suites are very large, our staff members are available around the clock and are very attentive to guests, and while we do not have a business centre or a large restaurant yet, our guests feel at home here. This is our goal: to make our guests feel at home while also providing four star hotel services.” All suites feature modern furnishings, individual air conditioning and heating, kitchen facilities that include a microwave, LCD TV, a terrace, comfortable beds, hairdryer and kettle on request, and windows that can open. Both smoking and non smoking suites are available. The hotel’s services include Internet access, a café and bar, a sauna and fitness centre, safety deposit boxes and luggage storage, a car park, and 24 hour service.

national chain properties. The owners have also opened Starlight hotels in Vienna and Bucharest, and all are boutique suite hotels with a focus on personalised service. The Starlight Hotel Bucharest has positioned itself as the ideal base for international travellers. Mihaela Ionascu concludes, “Starlight is family owned by two brothers who have spent their careers in the hotel business and know how to please guests. When people stay in the Starlight Hotel in Bucharest, they come back to us again on their next trip to the city. Starlight offers exactly what guests want.”

The Starlight Hotel has its own breakfast room. The hotel has made an arrangement with nearby restaurants to deliver meals on request. Guests can call on the main desk for business services like photocopying or the loan of a laptop. The hotel guarantees guests a quiet and comfortable base in Bucharest.

Value for money Executive travellers, mainly from abroad, make up around 80% of the hotel’s clientele, and many of the guests are long term visitors. They are attracted by the Starlight’s excellent value for money and friendly atmosphere which sets it apart from inter-

89-98 Grigore Alexandrescu St. Bucharest Tel: +40 21 211 3413 reservations.buc@starlighthotels.com www.starlighthotels.com

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Hertz

Global Car Hire Leader Focuses on Personalised Services Global car hire leader Hertz has been active in Romania since 1975 and has been represented by AAA Autorent since 1995. Jean-Alain Grumbach, Administrator, explains, “I make sure that the image of Hertz Romania matches the image of Hertz worldwide, and that we have a global vision of the brand.” Since inbound tourism is still in its beginnings, Hertz Romania mainly serves a business clientele, including executive travellers and local representatives of international companies as well as corporate clients, embassies, international organisations, government and governmental agencies and armed forces officials and more. Hertz Romania focuses on establishing long term agreements with its customers, and personalised service is the company’s speciality. “We tailor make each offer to fit the customer’s needs. For a long term agreement you really need to know your partner” Jean-Alain Grumbach points out. Hertz Romania plays a key role in Romania’s business sector and is a member of many local business organisations, including the American Chamber of Commerce and the French Romanian Chamber of Commerce. Jean-Alain Grumbach explains, “We closely monitor all economic developments in Romania and we know which companies are expanding their operations here, so we get in touch with them to find out how we can work together.”

Competitive edge: high standards, innovation Besides Hertz Romania being in a position to offer car rentals anywhere in the world through the global Hertz network, it differentiates itself from other car hire companies in Romania through its commitment to providing only vehicles of highly reputed brands complying with the toughest safety standards paired with impeccable services. Jean-Alain Grumbach says, “We have introduced the highest international standards to the Romanian car hire sector.” If a booking has been confirmed, Hertz Romania’s services include guaranteed availability of a rental vehicle with an automatic free upgrade if no car is available in the category the client selects. For the peace of mind of the clients, all vehicles in the Hertz fleet are carefully checked on 19 separate points, 12 of which are security features, even if the previous rental was for 24 hours only.

Hertz is regularly the first to launch new car hire services in Romania. They were the first to include winter tyres, safety checks, vehicle delivery and pick up, and special equipment like a first aid kit and a fire extinguisher even before these were required. Now Hertz Romania is implementing a cutting edge ‘infection protection’ system in which a vehicle’s steering wheel, gear shift lever and handles are sanitised before a client uses the car. Jean-Alain Grumbach says, “We could not find any other car hire firm in the world that has implemented this system. Potential customers in Romania should not settle for less. They should come to Hertz.”

No. 3, Natiunile Unite Blvd, Bl. 109 050121 Bucharest Tel: +40 21 33 575 28/29/30 contact@hertz.com.ro www.hertz.com.ro