The European Times - Romania 4

ROMANIA 1

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THE EUROPEAN TIMES

Index

ROMANIA • Massive Surge in FDI I First Quarter of 2015

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• New President Emphasises Transparency, Rule of Law 5

• Bilateral Chamber Supports German-Romanian Business Ties

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• Ready to Take a Larger Role in Europe

• Prahova County: Dynamic Business Base

26

• Dynamic Chamber Promoting Dutch-Romanian Partnerships

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• Dutch-Romanian Trade and Investment Links

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• Astellas Pharma

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INTRODUCTION 7

• Productive Member of the International Community 8 • European Crossroads and Global Business Hub

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• Romania’s Fact File

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GOVERNMENT • Regionalisation, Decentralisation, Rehabilitation and Modernisation 14

ENERGY & NATURAL RESOURCES • Energy Projects Offering Outstanding Potential

30

• Promoting Internationalisation in Education and Research

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• Powering the Future: Romania is Set for Energy Independence

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• Focus on Youth and Sports

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• Hidroelectrica

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• Efficient Allocation of Funds for Agricultural Development

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• Effective Regulation Encourages Investment in Minerals and Hydrocarbons Extraction

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• Managing Romania’s Privatisation Process

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• Leading Energy Market Reform in Romania

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• One-Stop Shop for Foreign Investors

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• Dynamic Advocate for Oil and Gas Sector

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• Leading Independent Oil and Gas Company Planning Rapid Growth

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• New Policies to Stimulate More Investment in Green Energy

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• ecoHORNET

39

BUSINESS & INVESTMENT OPPORTUNITIES • Council of Foreign Investors Helping to Upgrade Business Climate

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• Strengthening Business and Trade Ties between the UK and Romania 22 • Thriving Economy the EU’s Fastest-Growing

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ENVIRONMENT • Protecting the Environment and Promoting Sustainable Growth

41

• Agency Protecting Romania’s Environment

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EU FUNDS • Impressive Record in Using EU Funds Productively

44

International Manager: Aukje Oostendorp – Country Manager: Laurentiu Liferi – Project Coordinator: Jelena Baric – Production Coordinator: Ivana Atanasoska – Copy Editor: Vicky Kox – Editorial: Emily Emerson-Le Moing, Jake Addison, Chris Herrett – Design: Martine Vandervoort, Johny Verstegen, Walter Vranken, Dirk Van Bun The European Times Zinas Kanther 16 – Karantoki Building – 4th Floor, Office 12 – 1065 Nicosia – Cyprus Phone: +357 22 030248 – info@european-times.com – www.european-times.com The European Times is a trading name of Crystal Mediacorp Ltd

ROMANIA

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ROMANIA

• RAJA Constanta

45

• Carbochim

76

• Using EU Funds Effectively

47

• Opera Plaza Hotel

77

• Hidro Prahova

47

• Compania de Apa Buzau

48

BUCHAREST • Bucharest: Dynamic Modern Capital

50

• Hotel Ibis Gara de Nord

51

• Badsi-Nissan

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• Trianon Hotel Bucharest

54

• Siqua Hotel

55

• Europa Royale Bucharest Hotel

56

• Apart Homes

58

CONSTANTA COUNTY

ARAD COUNTY • Arad County: Strategically Located Business Base

79

• Mayor of Arad Outlines City’s Investment Appeal

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• Arad County: Ideal Business Base

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• Arad: A Taste of Romania’s Cultural Heritage

85

• Waterhouse restaurant

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• Ema del Mar

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• Hotel Coandi

86

• Best Western Central Hotel

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ARGES COUNTY

• New Constanta County Prefect Notes Thriving Economic Sectors

60

• Constanta’s Constant Regeneration for Investment and Tourism

• Historic Arges Positioning Itself as Ideal Business Base

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61

• Traffic Increasing at Port of Constanta

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• Arges County, Automotive Hub and Developing Investment Destination

92

• World-Class Training in Maritime Specialities

63

• Constana and its Beach Resorts Drawing Tourism Visitors

• Arges County: Dynamic Economy with Strong FDI Appeal

93

64

• Stop SRL

65

• Arges County: Industry, Transport and Cultural Hub

94

• Terra Rent-a-Car

96

• Cornul Vanatorului Tourist Complex

98

TIMIS COUNTY • Reaching for the Top: A County on the Rise

67

• In Support of Local Government

68

• Capitalising on the Strengths of Romania’s Third Largest City

69

• Timis County: Business and Cultural Crossroads

70

CLUJ COUNTY

IASI COUNTY • Dynamic Iasi County Offering Highly Skilled Labour at Competitive Costs

101

• Iasi Municipality: Dynamic Cultural and Economic Hub

102

• Iasi: Business and Cultural Hub on EU’s Eastern Border

103

• Iasi County Open for Business

104

• Mayor of Cluj-Napoca Highlights City’s Multicultural European Character

72

• TEBA Industries

105

• Cluj County: An Attractive Place to Invest In

73

• Salubris

105

• Pleiada Boutique Hotel

106

• Cluj County: Romania’s Silicon Valley and Much More 74

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MASTER REGIO

THE EUROPEAN TIMES

Introduction

New President Emphasises Transparency, Rule of Law voters’ communities. Such objectives cannot be met overnight. For my first six to seven months in office, I decided to get involved, through mediation and talks with political parties, in improving electoral legislation.

During this legislative session, Parliament has adopted a new law on political-party funding and a new law on local elections. It has also modified the law on the creation of parties in order to encourage involvement in politics.

The law on parliamentary elections was adopted, and I am hopeful that concrete talks will begin regarding the correspondence vote for Romanians living abroad. All this new legislation is not perfect, but it represents an important step forward.

European Times: What role does Romania play in the region?

Klaus Iohannis, elected President of Romania in November 2014, is known as a man who gets things done. As mayor of

Sibiu, he transformed the city into a top tourism attraction

and a European Capital of Culture. The 55-year-old President, who is from Romaniaʼs ethnic German community, campaigned on a platform of greater political transparency

and judicial independence, goals Romanian voters obviously share. He discusses his priorities as President.

European Time: What are your main goals for your presidency?

Klaus Iohannis: The objectives which I have set and which have helped me gain the trust of Romanians are long-term objectives. When they are

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met, they will have profound effects on society. These objectives relate significantly to a change in mentalities and in the way in which power is exercised. We are living in a time when politicians must reconnect with voters and act as representatives of

Klaus Iohannis: Romania lies in a region marked by active conflicts and deteriorating relations between NATO and the Russian Federation. I took this sensitive geopolitical context into account when I developed Romania’s national defence strategy. Romania must consolidate its strategic credibility, which is secured by predictability, foreign-policy continuity, stable security and defence policy, and support for democracy and the rule of law. The cornerstones of Romania’s foreign policy are its Strategic Partnership with the US and its membership in NATO and the EU. As President, my commitment is that Romania asserts itself as a strong nation, a nation that is fully aware of what it stands for within Europe and the world. A strong Romania benefits from the full trust of its partners, and

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THE EUROPEAN TIMES

ROMANIA

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Sector

As President, my commitment is that Romania asserts itself as a strong nation, a nation that is fully aware of what it stands for within Europe and the world. A strong Romania benefits from the full trust of its partners, and is, in turn, a provider of trust, a source of stability in a complicated region, and an example of profound attachment to democratic values and principles.” is, in turn, a provider of trust, a source of stability in a complicated region, and an example of profound attachment to democratic values and principles.

European Times: What progress is Romania making in joining Schengen?

Klaus Iohannis: Romania met the technical criteria required by Schengen accession several years ago.

However, political decisions of some states have postponed Romania’s accession. We will continue to take all necessary steps in order to reach a positive solution at the political level. I would like to emphasise, however, that Romania acts as if it already were part of the Schengen area. Romania’s good results registered in the fight against terrorism, for example, demonstrate that we are reliable partners and that our behaviour is in keeping with Schengen statutes for members.

European Times: What will your administration do to improve Romania’s international image?

Klaus Iohannis: Fighting stereotypes and bias is definitely not easy, but Romanians living abroad debunk negative images of the country with their decent and honest behaviour and their honourable work. Many Romanians have become living proof of reliability, professionalism and excellence in various fields in the countries where they work, and I view these citizens as our country’s ambassadors. It is my mission as President to defend things that define us as a state and as a nation, and to promote our values, symbols and people that represent them, wherever they are.

European Times: Why should investors choose Romania?

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international

Klaus Iohannis: Romania has managed to achieve macroeconomic stability and its economy grew by more than 4% in the first quarter of 2015. This growth is forecast to continue. Foreign investment in Romania actually began to soar in the first part of this year, which shows that Romania is increasingly supplying what investors are looking for. In addition to macroeconomic stability, Romania offers low taxation, a very well trained workforce and remarkable natural-resources potential. Many sectors provide investors with trade opportunities, from energy to infrastructure, agriculture and tourism. For example, energy can and must become a constant vector of our economic competitiveness.

Romania’s exports have also made progress over the past few years, especially concerning the EU market, which accounts for almost 75% of our country’s total exports.

There are still issues to overcome, of course, including difficulties in paying taxes, tax evasion and corruption.

The achievements of companies and investors directly depend on the quality of the rules governing their activity. Ensuring transparency and stability, as well as fiscal and legislative predictability, continues to be one of our main objectives.

European Times: What is your personal message about Romania?

Klaus Iohannis: My commitment as President is to turn Romania into a strong and prosperous country. All my actions are aimed towards this essential objective.

Romania has entered a new era of its history, and the vote cast in November 2014 has unequivocally demonstrated that Romanians, regardless of whether they are living in the country or abroad, are strongly attached to democratic values.

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THE EUROPEAN TIMES

MASTER REGIO

THE EUROPEAN TIMES

Introduction

Ready to Take a Larger Role in Europe European Times: What is your view on the Schengen issues faced by Romania?

Mihnea Motoc: Romania has been thoroughly tested and found entirely Schengen-ready. Daily life inside the Schengen Area is not going to change in any way, other than for the better, after Romania joins. Nothing is to be gained by keeping a Member State like Romania out of Schengen, but a lot is to be gained by bringing it in.

European Times: How can the image of Romania be improved in Europe?

Mihnea Motoc, Romanian Ambassador to the United Kingdom and former Romanian

Ambassador to the EU, talks about raising the profile of Romania in Europe.

European Times: What are the most important milestones of your diplomatic career?

Mihnea Motoc: My first Ambassadorship to The Hague greatly influenced my current views on many issues. I was extremely fortunate to serve as State Secretary for Multilateral Affairs at the Romanian Ministry of Foreign Affairs, mainly working to bring Romania into the Euro-Atlantic Community. Between 2003 and 2008, I was honoured to represent my country at the United Nations. I was privileged to sit on, and twice preside over, the Security Council.

Subsequently, I was entrusted with the task of representing Romania at the EU. European Times: How do you react to the perception that Romania supports high levels of corruption?

Mihnea Motoc: Romania is not challenge-free in this respect, but it has developed one of the toughest legal regimes against corruption, conflict of interest and incompatibilities in Europe. Suspicion of fraud, whether it involves Romanian or other European taxpayers’ money, is not going to be brushed aside. Ever remaining an idealist, I expect fraud to be gone for good one day, in Romania, as well as throughout Europe. In the meantime, we should expect severe deterrence and acknowledge corruption where we see it at work.

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Mihnea Motoc: It takes time for the image of a country to evolve and it does not happen overnight. There will still be some time before the last scar of more than four decades of Communism heals in both individuals and society in my country. On the other hand, even during those difficult times and certainly ever since that regime imploded, Romanians always looked westward, and felt and acted like having always partaken in the European history, culture, mentalities, values and fate.

Romania has been a vibrant economy for some time now. Its current growth rate of over 4% along with the fact that it is based on sound macroeconomics and careful financial discipline, makes it one of the lesser-known, but genuine success stories of these later years of turmoil. While still pursuing the kind of growth that would bring about convergence with Europe’s optimal development, carrying on with the right mix of policies will very likely make Romania an even larger economic, business and investment attraction in Europe.

Politically, Romania brings to the European table a unique level of confidence in the European idea – support for, and trust in, the EU, is still solidly majoritarian, whilst aggregated forms of Euro scepticism or extremism are yet to appear in Romania.

European Times: What is your personal message for the readers of European Times, both in Romania and EU? Mihnea Motoc: Take the time of a longer, deeper, and more balanced look at what Romania is really all about, for it will have a lot of sound optimism and positive energy to contribute to a stronger, more self-confident Europe.

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THE EUROPEAN TIMES

MASTER ROMANIA REGIO

Productive Member of the International Community European Times: What are your priorities as Minister of Foreign Affairs?

Bogdan Aurescu: As minister, my mission is to uphold Romania’s foreign policy, which is characterised by consistency and defined by Romania’s membership in the EU and NATO. Important pillars in our foreign policy are Romania’s relations with the US and with the Republic of Moldova. Romania and the Republic of Moldova share a common history, culture and language, and we hope to see the Republic of Moldova join the EU as soon as possible. Ukraine is also important for Romania since whatever happens in Ukraine is relevant to security in Romania, the region and the EU. The ministry has many other priorities but these are the most important directions guiding our daily efforts.

European Times: What are some diplomatic challenges Romania is facing in 2015?

Bogdan Aurescu, Romaniaʼs Minister of Foreign Affairs, discusses his countryʼs foreign policies and diplomatic challenges. He also

highlights the many international partnerships Romania has established.

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Bogdan Aurescu: The security situation in Ukraine, which began with a breach of international law by the Russian Federation in the Crimea, remains our concern.

Our efforts will focus on securing the existing security architecture in Europe based on adherence to international law.

Romania supports efforts by the EU and NATO to find a diplomatic solution for the crisis in Ukraine.

European Times: What is Romania doing to help the Republic of Moldova join the EU?

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Introduction Sector

Bogdan Aurescu: The Republic of Moldova performed very well in 2014 and Romania will continue to provide assistance in the Republic of Moldova’s drive to join the EU. Thanks to the liberalisation of its EU visa regime, last year the Republic of Moldova became the first Eastern Partnership country whose citizens can travel to the EU without a visa.

The signing of the Association Agreement and the Deep and Comprehensive Free-Trade Agreement are other major steps forward for the Republic of Moldova. For the time being, the Republic of Moldova needs to steadily implement the Association Agreement and, in this process, create the condition for the next stage in its dialogue with the EU that would eventually lead to the recognition of the European perspective.

An informal action group formed by Romania and France is working to help the Republic of Moldova join the EU. The group, which has been convened ten times already since 2010 when it was set up, plans to meet again later this year.

European Times: What about relations between Romania and the US? Bogdan Aurescu: It is a very dynamic relationship and a very rewarding one for both partners. This year we celebrate 135 years since the establishment of our relations. The strategic partnership which was created back in 1997 but reshaped in 2011, by the Joint Declaration for the Strategic Partnership for the 21st century, has a lot of dimensions. This partnership involves military cooperation as well, for example the US missile-defence system being built in Deveselu, Romania, which will be operational by the end of 2015. This initiative will make an important contribution to ensuring the security of NATO allies. Romania also works with the US in Afghanistan as part of the Resolute Support Mission, and Mihail Kogalniceanu airbase in Constanta County is used as a hub for US troops and equipment transport. Romania partners with Bulgaria and the US Navy in the Black Sea and with the US in the NATO Readiness Action Plan.

There are also other dimensions of the strategic partnership, like the economic one or the consular matters, because we are working together with the US in order to access the Visa Waiver Program. So there are many other areas, such as energy security, which is also very important in our bilateral relations.

European Times: What are your goals for Romania’s energy sector?

Bogdan Aurescu: Romania relies less on energy imports than other countries in the region and aims to be energyindependent as well as a source of regional energy exports.

Romania has good prospects for developing its hydrocarbon reserves on the Black Sea shelf and we hope to be exploiting these resources within five years. Romania also supports an EU Energy Union.

European Times: What progress is being made to bring Romania into the Schengen area?

Bogdan Aurescu: Romania fulfilled all the legal and technical requirements of the Schengen acquis long ago and in practical terms Romania acts as a de facto Schengen state. Some EU member states object to Romania’s entering Schengen and we are working with these states through diplomatic channels to bring both Romania and Bulgaria into the Schengen Area.

European Times: What is your personal message about Romania as an economic and diplomatic partner?

Bogdan Aurescu: In the last period, after four years of economic growth, Romania was set on a very stable upward economic trend. At the end of 2014 Romania achieved a GDP growth of 2.9 % and expects the same or better growth rate in 2015. Romania is also a large market with a population of 19 million and it has highly educated, multilingual, committed human resources, including many ICT experts.

Romania is strategically located at the crossroads of three major transport corridors: Corridor 4, connecting Eastern and Western Europe; Corridor 9, connecting Northern and Southern Europe; and Corridor 7, the Danube, which is the cheapest route for transporting goods between Romania and Western Europe. Romania also serves as Europe’s gateway to the Caucasus and Central Asia through Constanta port, the biggest port on the Black Sea. Romanians welcome foreign investors and Romania has proven itself to be a very stable and trustworthy partner in a region with complex evolutions.

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ROMANIA

© Whitecat84-Dreamstime.com

Brasov city

European Crossroads and Global Business Hub Romania, the largest of the Balkan countries, has a long history as a dynamic trade and cultural

crossroads on the Black Sea. Successively

under the control of the Roman, Ottoman, Austro-Hungarian and Soviet regimes, Romania

broke away from its communist affiliations in 1989 and joined NATO in 2004 and the EU in

2007. Romania is also a member of the Black Sea Economic Cooperation bloc. Todayʼs Romania

is a thriving, market-oriented economy with strong investment appeal.

With a population of almost 20 million, Romania is the seventh most-populous member of the EU and its capital and largest city, Bucharest, is the sixth-largest EU urban centre.

Around 90% of the country’s citizens identify themselves as Eastern Orthodox Christians and are native speakers of the official national language, Romanian, a Romance language.

Romania is crossed from north to southwest by the rugged Carpathian mountains, while the Danube River – Europe’s second-longest river – flows for around 1,000 km through Romania to meet the Black Sea in the Danube Delta.

Modern Romania, in an area which was the Roman province

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of Dacia during the Roman Empire, was established when Wallachia and Moldavia were formally united in 1859 under the name Romania. The new country achieved its official independence from the Ottoman Empire in 1877. It joined the Allied Powers in World War I and new territories with a majority Romanian population – most notably Transylvania – adhered to the Romanian state. In World War II, Romania allied itself with the Axis powers and participated in the 1941 German invasion of the USSR. Three years later, overrun

by Soviet troops, Romania signed an armistice. A communist “people’s republic” was established in Romania in 1947 and the Romanian monarchy abdicated. Communist leader Nicolae Ceausescu took power in 1965 and ruled until he was overthrown and executed in 1989. Former communists dominated the Romanian government until 1996 when they lost power and Romania’s development of a modern market economy began.

Regional and global trade hub Romania is very well placed to become a leading regional and global business hub thanks to its strategic location linking East and West, its busy Black Sea port at Constanta, its easy access to Western Europe, and its shared borders with Bulgaria, Moldova, Hungary, Serbia and Ukraine. Romania also has a pool of highly educated, multilingual human resources, along with a very business-friendly government and low costs of doing business.

Today’s Romania is a study in contrasts, a land where horsedrawn carts can still be seen on some roads but their drivers

THE EUROPEAN TIMES

Introduction Sector

are likely to be talking on the latest cell phones. Medieval castles, ancient towns, unspoiled natural areas and traditional customs abound in Romania and make it a favourite among tourism visitors, yet the country has one of Europe’s most advanced ICT infrastructures along with cutting-edge research and development institutions and state-of-the-art manufacturing facilities.

Following rapid economic growth in the early 2000s, Romania was hit hard by the global recession in 2008 but rallied to achieve strong GDP growth once again thanks to sound macroeconomic management and support from international financial institutions and the EU. The Romanian economy today includes highly developed manufacturing, industrial and services sectors which have attracted large investments by global players like Dacia, OMV Petrom and many others. Romania also has a high-potential agriculture sector.

Meeting the challenges Challenges for Romania include uncertainty in the Eurozone, the country’s top export market; difficulties in absorbing EU funds efficiently; and a need to continue structural and economic reforms, including fighting corruption, while also improving quality of life for the country’s citizens. Thanks to its steady economic expansion, Romania is now ranked

an upper-middle-income country with a high Human Development Index, but poverty remains a problem. Romania’s poverty rate declined dramatically from 36% in 2000 to 4.4% in 2009, but the rate is still one of the highest in the EU. In addition, Romania has one of the highest percentages of its population living in rural areas of any EU country, yet the poverty rate among rural residents is 70%, according to a recent World Bank report.

Improving access to high-quality healthcare is another important goal. The government’s healthcare reform programme focuses on cost-effective outpatient and primarycare services, co-payments, rationalised hospital infrastructure, the introduction of new drugs and technologies, and an overhaul of the public health-insurance system. Romania is also working hard to continue to upgrade the skills of its population to meet Europe 2020 targets and to bring the level of achievement of Romanian children in key subjects up to standard EU levels.

As it continues its reform programmes, Romania is demonstrating its commitment to being a productive member of the EU and global communities. In June this year, the Romanian parliament unanimously approved a request to build two NATO facilities in Bucharest, including the Multinational Division South-East Headquarters, as part of NATO’s new defence strategy in Eastern Europe. Romania is playing its part in promoting peace and security on the EU’s eastern borders.

Fagaras mountains

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THE EUROPEAN TIMES

ROMANIA

THE EUROPEAN TIMES

Introduction

Romania’s Fact File Official Name: Romania Location: South-eastern Europe, bordering the Black Sea, between Bulgaria and Ukraine Capital: Bucharest

Head of government: Prime Minister Victor-Viorel Ponta (since 7 May 2012); Deputy Prime Minister Gabriel Oprea (since 5 March 2014) Elections: president elected by popular vote for a five-year term (eligible for a second term); prime minister appointed by the president with the consent of the Parliament

Border countries: Bulgaria 605 km, Hungary 424 km, Moldova 683 km, Serbia 531 km, Ukraine 601 km

Judicial Branch

Climate: temperate; cold, cloudy winters with frequent snow and fog; sunny summers with frequent showers and thunderstorms

Highest court: High Court of Cassation and Justice (consists of 111 judges organised into civil, penal, commercial, contentious administrative and fi scal business, and joint sections); Supreme Constitutional Court (consists of nine members)

Natural Resources: petroleum, timber, natural gas, coal, iron ore, salt, arable land, hydropower Area: Total: 238,391 sq km Land: 229,891 sq km Water: 8,500 sq km Terrain: central Transylvanian Basin is separated from the Moldavian Plateau on the east by the Eastern Carpathian Mountains and separated from the Walachian Plain on the south by the Transylvanian Alps

People Population: 21,729,871 ( July 2014 est.)

Judge selection and term of office: High Court of Cassation and Justice judges appointed by the president upon nomination by the Superior Council of Magistracy, a 19-member body of judges, prosecutors, and law specialists; judges appointed for six-year renewable terms; Constitutional Court members - six elected by Parliament and three appointed by the president; members serve nine-year, non-renewable terms Subordinate courts: Courts of Appeal; regional tribunals; fi rst instance courts; military and arbitration courts

Economy at a Glance Currency: Romanian leu (RON)

Local name for citizens: Romanians

GDP (purchasing power parity): US$388 billion (2014 est.)

Ethnic groups: Romanian 83.4%, Hungarian 6.1%, Roma 3.1%, Ukrainian 0.3%, German 0.2%, other 0.7%, unspecified 6.1% (2011 est.)

GDP per capita: US$19,400 (2014 est.)

Official languages: Romanian (official) 85.4%, Hungarian 6.3%, Romany (Gypsy) 1.2%, other 1%, unspecified 6.1% (2011 est.)

Religions: Romanian (official) 85.4%, Hungarian 6.3%, Romany (Gypsy) 1.2%, other 1%, unspecified 6.1% (2011 est.)

Politics Government type: Republic Independence: 9 May 1877 (independence proclaimed from the Ottoman Empire; independence recognised on 13 July 1878 by the Treaty of Berlin); 26 March 1881 (kingdom proclaimed); 30 December 1947 (republic proclaimed) Legal system: Civil law system Chief of State: President Klaus Iohannis (since 21 December 2014)

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GDP real growth rate: 2.8% (2014 est.)

GDP contributions by sector: agriculture: 5.4; industry: 27.3%; services: 67.3% (2014 est.)

Industries: Electric machinery and equipment, textiles and footwear, light machinery, auto assembly, mining, timber, construction materials, metallurgy, chemicals, food processing, petroleum refi ning Total exports: US$69.25 billion (2014 est.)

Export commodities: machinery and equipment, metals and metal products, textiles and footwear, chemicals, agricultural products, minerals and fuels Total imports: US$77.23 billion (2014 est.)

Import commodities: machinery and equipment, chemicals, fuels and minerals, metals, textile and products, agricultural products Source: www.cia.gov

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• Regionalisation, Decentralisation, Rehabilitation and Modernisation • Promoting Internationalisation in Education and Research • Focus on Youth and Sports

Government

“Romania has fulfilled all the requirements for joining Schengen, including making the EU’s eastern border safe.”

Liviu Dragnea, former Minister of Regional Development and Public Administration

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ROMANIA

Regionalisation, Decentralisation, Rehabilitation and Modernisation Liviu of

Nicolae

Regional

Dragnea,

former

Development

and

Minister

Public

Administration, has held many prestigious posts in the Romanian government. He discusses Romaniaʼs development priorities and goals.

European Times: What are Romania’s main development objectives?

Liviu Nicolae Dragnea: The government has four main objectives: regionalisation, decentralisation, rehabilitation and modernisation. Another essential objective is to absorb EU funds. The government’s new regional-development strategy, which we implemented in 2014, aims to close the gap between counties and within counties. Around 10 million Romanians live in rural areas where the quality of life does not meet EU standards. We are working to upgrade quality of life, boost development in smaller towns and modernise county infrastructure, including building over 68,000 new apartments by the end of 2015 and funding around 500 projects to bring Romania’s water and sewerage systems up to EU standards. We have also built or rehabilitated over 500 schools, bought 2,000 new school buses, are opening more than 250 cultural centres and have begun a major project to improve county hospitals in Cluj, Iasi and Craiova.

European Times: What progress is Romania making in absorbing EU funds?

Liviu Nicolae Dragnea: The Ministry of Regional Development and Public Administration, which leads the effort to allocated EU funds, dramatically increased absorption from around €110 million per year between 2007 and 2012 to €1 billion in 2013. In fact, Romania achieved the highest rate of EU funds absorption of any European country in 2013 and 2014.

European Times: What are the prospects for Romania’s entry into Schengen?

Liviu Nicolae Dragnea: Romania has fulfilled all the requirements for joining Schengen, including making the

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Laurentiu Liferi, Country Manager of the European Times, Jelena Baric, Project Coordinator of the European Times and Liviu Nicolae Dragnea, former Minister of Regional Development and Public Administration

EU’s eastern border safe. Romania offers the EU significant commercial potential which is currently not being fully exploited, such as Constanta Port, a key trade hub on the Black Sea. The Romanian government will continue to take diplomatic steps to enter Schengen.

European Times: What is your personal message to EU investors?

Liviu Nicolae Dragnea: Investors who come to Romania are pleasantly surprised by the business climate and potential they find here. We have begun a €500 million justice centre in Bucharest as part of our effort to strengthen Romania’s legal system and we will continue to fight corruption. Investors should know that Romania is committed to creating a positive business environment and has made impressive progress. We are now one of the top five countries in Internet connection speeds, for example, and we will continue to improve conditions for doing business.

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Government

Promoting Internationalisation in Education and Research and international partnerships can help Romania’s universities and research centres compete for major global research projects.

European Times: What are your goals for the educational system?

Sorin Mihai Cimpeanu: Our main goals for primary and secondary education are to enhance quality and create new opportunities for vocational training; we want to strengthen the link between schools and the job market. Concerning higher education, we are focusing on internationalising Romanian universities, for example through establishing courses in English and promoting exchanges of professors and students between Romanian universities and their counterparts worldwide. We are also enhancing the quality of Romania’s higher education by improving educational processes and infrastructure, offering scholarships and establishing new types of degree programmes. Romania now has 92 accredited universities, 55 public and 37 private. The goal is to develop an educational system which complies with all EU and international standards. The system should also prepare students for the workplace, and Romania encourages partnerships between universities and the business sector.

Romania is establishing itself as a European

European Times: What are your goals for Romania’s research activities?

and R&D. Sorin Mihai Cimpeanu, Minister of

Sorin Mihai Cimpeanu: Our priorities are to complete the many major projects now underway, which include the groundbreaking Extreme Light Infrastructure (ELI) laser initiative and the Danube Delta-Black Sea project, while also launching new projects. Romania recently developed a new research partnership with the US, for example. The ministry is particularly encouraging applied research and wants to attract young researchers to develop their competencies and get involved in Romania’s research institutes.

and global centre for high-quality education

Education and Scientific Research, discusses his ministryʼs goals.

European Times: How is the Ministry of Education and Scientific Research working to internationalise Romania’s education and research activities?

Sorin Mihai Cimpeanu: At every meeting of the National Council of Rectors, I underline the importance of internationalisation and of linking Romanian universities to the labour market.

Focusing on these two goals can enhance the quality of education and research in Romania as well as boost the economy. Romania has research expertise in many fields and has invested in its research facilities. Our challenge is to attract the most talented and innovative young graduates in the field of research. Local

European Times: What is your personal message about education and research in Romania?

Sorin Mihai Cimpeanu: Romania can proudly demonstrate professionalism and expertise in both higher education and research. We are open to all partnerships which will help Romania’s educational and research activities become more international.

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ROMANIA

Focus on Youth and Sports Gabriela Szabo, Minister of Youth and Sports

ture. Our immediate priority is to optimise Romania’s chances in the Summer Olympic Games in 2016. All our sports and youth initiatives are based on EU standards and practices.

European Times: What are some of your current projects?

Romaniaʼs Ministry of Youth and Sports is spearheading a number of ambitious

initiatives to create new opportunities for Romaniaʼs young people and to develop

modern sports infrastructure throughout the country. Gabriela Szabo, Minister, discusses the ministryʼs current projects and goals.

European Times: What are your priorities as Minister of Youth and Sports?

Gabriela Szabo: The government of Romania has made sports and youth a national priority. The main goal of this ministry is to establish a strategy for sports development which benefits Romania’s youth and all who are involved in sports. The ministry has determined three pillars for this strategy: support mass sports, develop high-performance sports and invest in sports infrastruc-

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Gabriela Szabo: The ministry has budgeted €100 million for sports-infrastructure projects for the period 2015-2016.

In developing these projects, the Ministry of Youth and Sports is working closely with the Ministry of Regional Development and other government and local authorities. Investment in sports facilities and sports events will create jobs, including for youth, and foster local economic development. The ministry continues to partner with the Ministry of EU Funds and the Ministry of Labour, Family and Social Protection, as well as with NGOs and student and youth organisations to fight unemployment among Romania’s young people. Romania’s National Strategy for Youth 2014-2020, which the ministry developed along with UNICEF and other partners, includes a focus on job creation. Other projects for the Ministry of Youth and Sports include one to improve the ministry’s decision-making process, a project to develop youth and sports e-services, a youth-counselling initiative, and a programme to prepare students for the labour market.

European Times: What are some of your ministry’s long-term goals?

Gabriela Szabo: Sports development requires effective strategies, action plans, patience and, most important, funds.

Sports’ spending is not an expense; it is an investment. We also need the commitment, motivation and professionalism of everyone involved in sports at every level. Sports can promote cultural understanding, regional awareness, racial tolerance, knowledge, skills and much more.

European Times: What is your message to potential partners and investors?

Gabriela Szabo: Romania is strongly committed to youth and sports. The Ministry of Youth and Sports welcomes public-private partnerships which will benefit Romania’s youth and develop national sports infrastructure.

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Government

Efficient Allocation of Funds for Agricultural Development Mihai Spatarelu Putintei, General Director APIA

European Times: What progress has APIA made in absorbing available EU funds for the agriculture sector?

The Agency for Payments and Intervention for

Agriculture (APIA) plays a crucial role in spurring on the development of Romaniaʼs high potential agriculture

sector.

General

Director

Mihai

Spatarelu Putintei discusses APIAʼs activities and highlights the agencyʼs impressive track record in absorbing EU agricultural funds.

European Times: What role does APIA play in the Romanian economy?

Mihai Spatarelu Putintei: APIA oversees funding for the agriculture sector and manages over 30 schemes and support measures. APIA allocates funding from the European Agricultural Guarantee Fund (EAGF), the European Agricultural Fund for Rural Development (EAFRD) and state subsidies.

APIA’s mission is to help Romanian farmers access the financial support they need. The agency has implemented an Integrated Administration and Control System to ensure efficiency and high standards.

Mihai Spatarelu Putintei: Since 2007, APIA has allocated around €7.5 billion in funding for the agriculture sector from the EAGF and €2.4 billion from the EAFRD, in addition to over €5 billion in support from the national budget. The funding is allocated in line with the EU Common Agricultural Policy. Among others, financial support has been provided for maintaining the lands in good agricultural and environmental conditions, for lessfavoured areas (LFA), for market measures and promotion of agricultural products. APIA’s annual rate for absorbing EU funds is over 98%. This funding has not only benefited Romanian farmers but has also made a major contribution to rural development and economic progress in Romania. In 2104 alone, APIA allocated around €2.36 billion in funding to Romania’s farmers, and we aim to maintain this rate of absorption this year. APIA has received strong support from the Ministry of Agriculture and Rural Development headed

by Daniel Constantin.

European Times: What are APIA’s goals for the future?

Mihai Spatarelu Putintei: APIA will continue to support Romanian farmers by allocating direct payments as efficiently and effectively as possible. The agency will also continue to improve the quality of its payment system.

European Times: What is your personal message about APIA? Mihai Spatarelu Putintei: The Agency for Payments and Intervention in Agriculture is an institution with extensive experience in implementing EU funds. APIA’s performance in absorbing EU funds is comparable both qualitatively and quantitatively with those of large payment agencies in other EU member states. I feel honoured to lead this agency, which is playing a very important role in supporting Romania’s agricultural and economic development.

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MASTER ROMANIA REGIO

Managing Romania’s Privatisation Process Nicolae Minea, President of AAAS

The Authority for State Assets Management (AAAS) has been handling Romaniaʼs privatisation process for the past two decades, overseeing privatised companies and working to recover non-performing assets for the state.

Under the supervision of Romania’s Ministry of the Economy, AAAS is the successor to the State Property Fund, which managed Romania’s initial privatisation projects, and the Authority for Banking Assets. In February this year, AAAS announced that it plans to privatise 35 companies in 2015. Last year, AAAS concluded nine stock sales.

Nicolae Minea, President, discusses AAAS’s main projects and goals.

the authority responsible for privatising state-owned assets and managing them during the privatisation process, AAAS is currently a shareholder in 595 commercial companies, of which 284 are in insolvency, dissolution or other stages of liquidation.

The other 311 commercial companies are suitable for privatisation. AAAS is a major shareholder in nine commercial companies and holds over 33% of the social capital in another 15 commercial companies.

European Times: Can you describe AAAS’s current portfolio?

European Times: What are some of your future projects?

Nicolae Minea: Through its role as

Nicolae Minea: AAAS aims to

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become a commercial player rather than a passive manager, in order to save the state assets that have a real chance of viability. This will include liquidating some companies in our portfolio for which recovery solutions cannot be found. The general strategy of AAAS is to attract new equity and non-performing state receivables into our portfolio, in order to optimise them and maximise state revenues. AAAS aims to simplify the legal aspects of the privatisation of minor stock packages, and will modify the legal base for the privatisation of companies involved in research and development. AAAS will continue to be involved in post-privatisation monitoring.

European Times: How is AAAS bringing failing companies back into the economy?

Nicolae Minea: AAAS performs detailed analyses of all the companies in its portfolio and can provide information about these companies to potential investors. Our analyses show that many insolvent companies in our portfolio could be restructured and reintroduced into the economy. The goal of AAAS is to save all viable modules from insolvent companies, in order to preserve jobs and to create new ones. AAAS will devise reorganisation and restructuring plans adapted to each company’s special needs. Romania’s privatisation process continues to be a desirable opportunity for investors and for the national economy.

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Government

One-Stop Shop for Foreign Investors Alexandru Nastase, Head of the Department for Foreign Investments and Public-Private Partnership © The Business Review

The Department for Foreign Investments and

European Times: Which sectors offer particularly strong investment potential?

essential role in Romaniaʼs economy by serving

Alexandru Nastase: Manufacturing is a top sector, particularly in the automotive industry. Romania has already established itself as a regional hub for automotive companies and has attracted significant investment from leading global auto enterprises. Other growing sectors include ICT, business-process outsourcing and service centres, tourism, energy, oil and gas, and research activities. Most FDI in Romania today is from the EU. Romania welcomes investors who will add value to the Romanian economy and are committed to corporate social responsibility. We are an attractive destination for investment and business expansion, a status confirmed by the amounts of FDI that keep pouring in since the beginning of the year.

During the first four months of 2015 we had €1,164 billion in foreign investment; a 48% increase. In terms of economic growth we are the EU’s best performing country together with the Czech Republic with 4.3% growth in Q1 of 2015.

Public-Private Partnership (DISPPP) plays an as a one-stop shop for foreign investors.

Alexandru Nastase, Secretary of State and Head of the department, discusses its services.

European Times: What is your mandate at the Department for Foreign Investments and PublicPrivate Partnership?

Alexandru Nastase: The Department for Foreign Investment and Public-Private Partnership, which is under the direct supervision of the Prime Minister, is the leading government institution serving foreign investors in Romania. We offer investor-focussed, results-oriented services in order to make sure all investments in Romania are a success and to help position Romania as a top FDI destination.

European Times: Why investors target Romania?

should

European Times: What is your personal message to potential investors?

international

Alexandru Nastase: One big attraction is that Romania has highly skilled, educated, innovative, multilingual human resources at competitive prices. Romania’s location is another plus. Along with streamlined access to the EU, Romania is the second-largest domestic market in South-eastern Europe and it is strategically located at the crossroads of key commercial routes connecting Europe, Asia and the Balkans. Romania also has a very competitive Black Sea port at Constanta as well as the

1

Danube inland-waterway route. The Romanian government has enhanced these advantages by implementing one of the lowest flat-tax rates in Europe, along with reduced VAT of 9% for food and agricultural products and other investment incentives.

Furthermore, it issued generous state aid schemes amounting to €1.2 billion for investment support and job creation, introduced the tax exemption on reinvested profit and reduced the employers’ social security contributions by 5%. Romania will continue to adopt new measures to make the business environment even more investor-friendly. Therefore, it has on public debate a visionary Fiscal Code that will reshape our domestic business climate through significant fiscal relaxation as a new powerful tool in enhancing our competitive advantages.

Alexandru Nastase: Romania is a very reliable investment choice where investors can count on high returns on their investments. The Department for Foreign Investment and Public-Private Partnership is ready to give investors all the information and services they need, both before they invest and after they have established business activities in Romania. We are currently providing assistance to around 200 companies. We welcome global entrepreneurs to investigate all the opportunities Romania offers and put to good use our competitive advantages.

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ROMANIA

• Strengthening Business and Trade Ties between the UK and Romania • Thriving Economy the EU’s Fastest-Growing • Surge in FDI in First Quarter of 2015 • Dutch-Romanian Trade and Investment Links

Business & Investment Opportunities

“Romania’s government is very open to working with business leaders to improve the business climate even more.”

Mihai Bogza, President of the Foreign Investors Council

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Business & Investment Opportunities

Council of Foreign Investors Helping to Upgrade Business Climate Mihai Bogza, President of the Foreign Investors Council

European Times: What are the FIC’s main activities?

Mihai Bogza: The FIC has around 120 members and represents two-thirds of all FDI in Romania. Through the years, FIC members have shared their knowledge and expertise with Romanian policy-makers and are regularly consulted when legislation having an impact on the business climate is being enacted. Our main goal is to improve Romania’s business environment. The FIC has set up task forces on key issues, such as infrastructure development, absorbing EU funds, management of public finances and others. The FIC is both reactive and proactive, continuously promoting transparency and best practices and working to improve the conditions for investing and doing business in Romania.

European Times: Why should European investors choose Romania for FDI?

Promoting

sustainable

economic

growth,

improving Romaniaʼs investment landscape, and

supporting

the

interests

of

foreign

investors in Romania are the main goals of the Foreign Investors Council (FIC). The FIC is a

fully independent association with no political

affiliation which regularly partners with other business and international organisations as

Mihai Bogza: Romania needs to market itself better globally and improve its international image. Romania is often seen in darker colours then it should be. Not enough credit has been given to Romania for its many recent achievements. Romania is politically and economically stable, has a low budget deficit and very low inflation, and is committed to fighting corruption. Over the past two years in particular, Romania has made great progress. Statistics on Romania’s recent economic growth speak for themselves, and anyone who does not trust the numbers should definitely come here and observe everything that Romania has accomplished and can offer foreign investors. Romania’s government is very open to working with business leaders to improve the business climate even more. In addition, Romania’s exports are growing and there are investment opportunities in many sectors.

well as diplomatic representatives in Bucharest.

European Times: What is your personal message to potential foreign investors in Romania?

The FIC’s members strongly believe that the path to Romania’s sustainable growth lies in public policies shaped through a transparent dialogue between the business community and policy-makers. Mihai Bogza, President, discusses the FIC’s current projects and goals.

Mihai Bogza: Romania has made significant progress in the last few years and still offers outstanding growth potential.

Romania is both a stable European country concerning risks and a high-potential emerging market. Offering both stability and growth, Romania is an excellent investment choice.

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MASTER ROMANIA REGIO

Strengthening Business and Trade Ties between the UK and Romania large domestic market, a central location, good logistics services, and opportunities in many sectors, particularly transport infrastructure, ICT, manufacturing, energy and natural resources. Our research shows that the vast majority of UK companies that have invested in Romania are convinced they have made the right decision. All the evidence points to the fact that Romania offers great potential for British companies, both as an export market and as an investment choice.

Raymond Breden, Executive Chairman

Romanian

of

the

Chamber

British

of

Commerce, discusses the ties

between the two countries.

He also emphasises the many high-potential Romania

investors.

opportunities

offers

European

European Times: What is the role of the British-Romanian Chamber of Commerce?

European Times: What services does the Chamber offer its members?

Raymond Breden: The Chamber promotes trade between the UK and Romania and provides business networking opportunities for our members.

We are a bilateral chamber active in both the UK and Romania, and this means that we can offer real business and trading opportunities for our members in both countries. In 2014 we significantly expanded our activities relating to promotion of UK exports to Romania following the signing of an agreement between the UK government and the Chamber, whereby the Chamber now has taken over from the UK government certain services designed to help UK SMEs invest in and export to Romania.

but British investment in and exports to Romania remain limited. We believe this is because of a lack of knowledge about Romania’s potential, including its strategic location. Many UK companies look for export and investment opportunities in regions other than Central and Eastern Europe. The British Romanian Chamber of Commerce is actively changing that by networking with British companies and helping them identify business opportunities in Romania.

Raymond Breden: In addition to networking opportunities, the Chamber offers its members access to a wealth of business information as well as research assistance. The Chamber also serves as the voice of our members in discussions with Romanian government and business leaders.

European Times: Can you describe business ties between Romania and the UK?

European Times: Why should international investors target Romania?

Raymond Breden: British companies have a strong presence in Romania,

Raymond Breden: Romania offers skilled labour at attractive costs, a

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European Times: What is your personal message about Romania?

Raymond Breden: Romania’s economy offers opportunities in all sectors, and these opportunities can be turned into great success stories if an investor uses common sense, has a good business plan, selects business partners carefully and above all does due diligence in researching the market and potential partners. The BritishRomanian Chamber of Commerce is ready to assist!

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Business & Investment Opportunities

Thriving Economy the EU’s Fastest-Growing Constanta port

Over 3% GDP growth in 2015 Although the fallout from Greece’s economic woes weakened the Romanian currency, the leu, by 0.1% at the end of June, the leu’s value rose on July 1 when the Romanian central bank announced that it would keep its benchmark interest rate at 1.75%. The central bank also maintained reserve requirements for leu deposits at 8%, with 14% for foreign-currency liabilities. EY Romania estimates that the Romanian economy will grow by 3.1% this year and by 3.2% in 2016.

Significant FDI inflows

© Whitecat84-Dreamstime.com

Romaniaʼs economy is booming and currently

growing faster than any other in the EU. The countryʼs GDP jumped 4.3% in the first quarter

of 2015 compared to the previous year, the biggest surge since 2013. While the inflation

rate rose to 1.2% in May, before a drop in the

value-added tax for food the following month,

the government expects consumer prices to decline soon. In fact, Romaniaʼs domestic

consumption could increase by 4% this year and

be the main driver for the countryʼs economic

growth in 2015, according to a recent EY Eurozone forecast.

The dynamic Romanian economy has attracted significant FDI. Before the global financial crisis, the Romanian government’s privatisation programme drew more than €9 billion in FDI in 2007 and almost €14 billion in 2008. However, FDI flows dropped by 50% in 2009. The pace of foreign investment in Romania is gradually picking up and reached around €2 billion in 2014.

Around one-third of FDI in Romania in recent years has been in industrial activities thanks to Romania’s large domestic market, strong industrial tradition, and labour costs which are among the EU’s lowest. Other targeted sectors have included banking and insurance, wholesale and retail trade, energy, construction and ICT. Bucharest has been the recipient of more than 60% of Romania’s FDI total. In 2014, the main investors in Romania were France, Austria, the Netherlands, and Germany, although FDI from other countries has been important as well. The Czech company CEZ, for example, has invested over €1 billion in Romania since 2011 in installing a park of over 240 wind turbines near the Black Sea. Challenges for Romania include continued corruption problems, uneven progress on structural reforms, and vulnerability to external shocks, particularly a downturn in the EU economy. An ageing population, limited domestic demand, tax evasion, and insufficient healthcare are other hurdles the Romanian government must overcome. In spite of these issues, Romania’s economy is definitely on a growth curve.

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MASTER ROMANIA REGIO

Massive Surge in FDI in 2015

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Equity stakes amounted to €1.2 billion in this period, while intra-group loans totalled €856 million, according to the Romanian National Bank. “The business environment is friendly in Romania. We are the third energy-independent country in the EU and we have maintained the lowest taxes in the region,” Alexandru Nastase points out.

Prestigious foreign investors in Romania are active in a wide range of sectors and include Deutsche Bank, which has opened an ICT centre; Germany’s auto-industry manufacturer Continental, which has invested over €800 million in Romania since 1998 and now has 13,000 employees there; high-tech players Microsoft, Adobe, Intel, Electronic Arts and Amazon; and many more.

Sebastien Delen, Managing Director of French computergames leader Ubisoft in Romania, says, “In 1992, Yves Guillemot, the CEO and founder of Ubisoft, was travelling in Romania and was impressed by the talent. He saw

Q

momentum.

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proof that Romania has recovered its FDI

20

This surge in foreign investment is more

3

Investments and Public-Private Partnerships.

Q

Secretary in the Department for Foreign

Q

year, according to Alexandru Nastase, State

12

60% increase over the same period last

Local talent and a strategic location are just part of Romania’s investment appeal. Investment-promotion group Invest EU notes that Romania’s other competitive advantages are its EU membership, large domestic market, access to EU funds, low labour costs, and abundant natural resources, including mineral deposits and highly fertile agricultural land.

SOCAR, Azerbaijan’s state oil company, recently announced it would invest €50 million in expanding its gas-station network in Romania over the next three years; McDonald’s will invest over €3 million in new McCafes in Romania this year; and French retailer Auchan invested €30 million in Romania in February 2015 before inaugurating Transylvania’s largest shopping centre in March, the €60 million Coresi mall in Brasov. Romania clearly has what it takes to draw investors.

12

first seven months of 2015, an impressive

Local talent, strategic location and much more

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Romania attracted €2 billion in FDI in the

fantastic universities, and the standard of math in high schools is higher in Romania than in other parts of Europe.”

Between 2003 and 2013, the games sector created over 7,400 jobs in Romania.

Gefco, the globally active transport and logistics company headquartered in France, entered the Romanian market in 2005. Gefco’s Managing Director until April 2015, Christophe de Korver explains, “Romania’s Constanta Port gives us very good access to and from Asia. Northern European ports are sometimes saturated, so it can be a real advantage to ship goods through the Black Sea, and Constanta is the EU’s biggest Black Sea port.”

0% of Nominal GDP

© Mihocphoto-Dreamstime.com

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National Bank of Romania in Bucharest

Romania: Foreign Direct Investment FDI

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Business & Investment Opportunities

Bilateral Chamber Supports German-Romanian Business Ties Radu Merica, President of the

German-Romanian Chamber of

Commerce and Industry, and Sebastian Metz, General Manager,

discuss the strong political and economic ties between Germany

and Romania. They also highlight the many opportunities Romania offers for German investors.

European Times: What is the goal of the German-Romanian Chamber of Commerce and Industry (AHK Romania)?

Radu Merica: AHK Romania is a bilateral organisation established in 2002 to strengthen the economic relationship between Romania and Germany, and it is now the biggest bilateral chamber of commerce in Romania, with over 500 members. AHK encourages German investment in Romania and exports of German products to the Romanian market as well as Romanian investment in and exports to Germany.

European Times: What are some of the chamber’s main activities?

Sebastian Metz: The German Romanian Chamber of Commerce and Industry is the important bridge between the Romanian and German business community. Through our networking events we foster bilateral business relationships. The chamber also offers a range of consultancy support and other services for German investors

1

Radu Merica, President of the GermanRomanian Chamber of Commerce and Industry

Sebastian Metz, General Manager

looking into opportunities in Romania or already investing here, and we provide a strong network through which productive bilateral business relationships can be forged. As an official institution mandated by the German Ministry of Economic Affairs AHK represents the interests of German investors in discussions with the Romanian government.

The German-Romanian Chamber of Commerce and Industry also founded a Permanent Court of Arbitration, a timesaving alternative to „traditional“ trials.

European Times: Why should German investors target Romania?

European Times: What are some of the German-Romanian Chamber of Commerce and Industry’s current projects?

Radu Merica: Since long AHK is involved to develop the professional education system in Romania. Furthermore a big focus is the topic ”sustainability” across different sectors of the economy. The chamber has launched the business initiative EcoNet Romania to support renewable energy, energy efficiency and sustainable urban development throughout the country.

Sebastian Metz: Romania has developed a European-standard regulatory environment, which is a great advantage for investors. Romania also offers lower-cost labour and many sectors with strong investment appeal, including manufacturing, the automotive industry, agriculture, tourism, engineering and construction, among others. Another major advantage Romania provides investors is its strong, well-developed industrial base.

While the Romanian economy is rather small, it is growing rapidly in many areas.

Germany is one of Romania’s top sources of imports, and Romanian exports to Germany have increased significantly in recent years. Romania is catching up.

European Times: What is your personal message to potential investors in Romania?

Radu Merica: Come and explore Romania! This is a country with numerous business opportunities across many sectors of the economy.

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ROMANIA

Prahova County: Dynamic Business Base 800,000 inhabitants living in 104 administrative districts.

The county has 12 industrial parks and has attracted major investment from many multinationals, including Coca-Cola and Proctor and Gamble. People from Prahova County are proud of their tradition and history.

European Times: Why are international investors choosing Prahova County?

played a leading role in the development of

Rodica Paraschiv: The county has many high-quality educational and training institutions and offers a vast pool of skilled workers. Investors are also attracted by the county’s business-friendly administration, favourable tax regime, developed infrastructure, research facilities, large local market and economic potential in many sectors, including tourism, wine production and organic agriculture. Investors should take a close look at Prahova County to see for themselves all the opportunities that exist here.

infrastructure projects and then, since 1996, as

European Times: What are some of the county’s current projects?

Rodica Paraschiv, a construction engineer, has Prahova County, first through participating in

a member of the countyʼs government. Prefect since 2014, she discusses Prahova Countyʼs development objectives and investment appeal.

European Times: What makes Prahova County unique?

Rodica Paraschiv: Prahova County is one of Romania’s richest counties thanks to its oil-and-gas resources and three refineries, and it has a long tradition as an industrial centre.

The world’s first refinery, the first oil-and-gas university, and Romania’s first industrial park opened in Prahova County and today half of the county’s GDP is from industry. Other economic sectors also have strong growth potential here, including tourism thanks to Prahova County’s ski resorts and unspoiled mountain areas. Unemployment in the county is lower than the national average while population density is the second-highest in Romania after Bucharest, with around

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Rodica Paraschiv: The A3 motorway which connects Ploiesti with Bucharest will soon be extended to Brasov, which will further improve Prahova County’s transport-infrastructure connections. We also have key projects underway in waste management as well as in water and sewerage systems.

The county is developing a growth pole in Ploiesti and 14 townships around it, including opening a new industrial park in Barcanesti. We are currently building facilities to support development in other areas, such as Ciorani.

European Times: What is your personal message to potential EU investors?

Rodica Paraschiv: Prahova County is beautiful and offers all kinds of investment attractions. The county completed an EU-funded development programme from 2007 to 2013 which has ensured that Prahova County will achieve sustainable economic development for years to come. We welcome international investors!

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Business & Investment Opportunities

Dynamic Chamber Promoting Dutch-Romanian Partnerships Robin Van Rozen, President of the Netherlands-Romania Chamber of Commerce

training initiatives where people can improve their skills or learn new ones. This is a young Chamber which is growing steadily.

European Times: What services to you offer Dutch investors?

Robin Van Rozen: The Chamber has produced a guidebook, “Nearshoring to Romania”, which provides Dutch investors with all the information they might need to invest in and expand their business in Romania. We connect investors from the Netherlands with potential Romanian partners, help them with the process of setting up a business here, and support them once their business is up and running.

The Chamber is a great business community.

European Times: Why investors target Romania?

should

international

Forging strong ties between Romania and

Robin Van Rozen: Romania offers a healthy business environment, growth prospects in many sectors, and highly educated, dedicated, English-speaking human resources.

Romania is also strategically located in a rapidly developing part of Europe. Investors looking to set up a new production base should take a close look at Romania.

lands-Romania Chamber of Commerce. Robin

European Times: Which sectors are particularly promising for Dutch investors?

economic

Robin Van Rozen: There are opportunities in all sectors, but agriculture is probably the main one for Dutch investors. Other fast-growing sectors are logistics, especially in water management and water transport, and ICT. Small ICT start-ups are doing very well here. The creative industries also have excellent growth prospects in Romania. We want to see Dutch and Romanian companies working together in creative fields.

the Netherlands is the mission of the NetherVan Rozen, President, highlights Romaniaʼs potential

and

discusses

the

Chamberʼs projects and services for investors.

European Times: What are the main goals of the Netherlands-Romania Chamber of Commerce?

Robin Van Rozen: The Chamber’s main goal is to stimulate business ties between Romania and the Netherlands. We focus on bringing Romanian and Dutch entrepreneurs and businesses together and helping them to achieve success. The Chamber is also active in Romania’s Coalition for Development to help ensure that the country’s policies support private-sector growth.

We organise many networking events as well as workshops and

European Times: What is your personal message to Dutch investors about Romania?

Robin Van Rozen: You do not need to go far to find an attractive market to invest in. If you are thinking about setting up a new production facility or a new business, please come to Romania and explore the opportunities available here.

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ROMANIA

Dutch-Romanian Trade and Investment Links Vidraru Dam

Innovative Pharmaceuticals which Save Lives Astellas

Pharma

is

bringing

innovative

pharmaceuticals to the people of Romania. The leading Japanese pharmaceuticals group has been represented in Romania since the late 1990s,

established a subsidiary in 2011 and has been © Emicristea-Dreamstime.com

The Netherlands and Romania are steadily strengthening

their

trade

and

business

connections, and Dutch FDI in Romania has been growing in recent years.

Around 4,000 Dutch companies now have a presence in Romania and Dutch FDI in the country totalled over €7 billion in 2014, when the Netherlands was one of the top four foreign investors in Romania along with France, Austria and Germany.

According to Robin Van Rozen, President of the Netherlands-Romania Chamber of Commerce, most Dutch investment in Romania targets agriculture, transport, logistics and ICT, although other sectors in which the Netherlands has developed significant expertise also have investment potential in Romania. These include water management, water transport and the creative industries.

In March this year, Netherlands Ambassador to Romania Matthijs van Bonzel and Agricultural Counsellor Reinder Schaap met with Romania’s Minister of Agriculture and Rural Development Daniel Constantin and State Secretary George Turtoi to discuss specific Dutch-Romanian agriculture and food projects in three targeted areas where the Netherlands has particular competencies: the dairy industry, fruit production and greenhouse horticulture.

Dutch investors interested in Romania can contact the Netherlands-Romania Chamber of Commerce and the Economic Department of the Netherlands Embassy in Bucharest. Both promote Dutch-Romanian bilateral trade and provide assistance to potential and current investors.

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growing steadily ever since.

Mark Dekker, Country Manager, says that Astellas Pharma is particularly strong in transplantation, urology, oncology and anti-infectives.

He says, “Our job is to make sure we bring in the right kinds of pharmaceuticals for Romanian patients.”

The Romanian pharmaceuticals market is challenging, largely because of limited reimbursements for healthcare. Mark Dekker points out, “Romania’s healthcare spending, which is actually an investment in its people, is only 4% of GDP, the lowest in Europe. Something needs to change so that companies like Astellas can provide the best possible products, including new ones being developed. These are products which can change people’s lives for the better, for example a new treatment for prostate cancer, but reimbursements for new pharmaceuticals is difficult and extremely restricted. The government is not making the job easy.”

In spite of the challenges, Astellas Pharma has been very successful in Romania thanks to the dedication of its strong and professional Romanian team and the high quality of its products. Mark Dekker says, “We are committed to Romania. We really believe in this country and we want to invest in its future and in its people.”

Astellas Pharma SRL Sos. Bucuresti - Ploiesti no. 42 - 44 BBTP Building A1, 4th floor - Bucharest Tel.: +40 21 361 0495 / 96 / 92 Ro1office@astellas.com - www.astellas.ro

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• Energy Projects Offering Outstanding Potential • Effective Regulation Encourages Investment in Minerals and Hydrocarbons Extraction • Dynamic Advocate for Oil and Gas Sector

Energy & Natural Resources

“Romania’s energy companies are doing well on the stock exchange, which illustrates the investment potential of the energy sector.”

Andrei Dominic Gerea, Minister of Energy, Small and Medium-Sized Enterprises and the Business Environment

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ROMANIA

Energy Projects Offering Outstanding Potential Andrei Dominic Gerea, Minister of Energy, Small and Medium-Sized Enterprises and the Business

Environment,

formerly

served

as

Romaniaʼs Minister of Economy and has had

extensive experience in promoting his countryʼs sustainable economic growth. He discusses his ministryʼs priorities for the energy sector and for Romaniaʼs business environment in general.

European Times: What are your main goals as minister?

Andrei Dominic Gerea: Our focus is on dealing with some overdue issues, especially in the energy sector, where we hope to solve problems rapidly. We will also continue Romania’s privatisation process, including of energy companies, and will pursue many initiatives to upgrade the business climate.

European Times: What is your ministry doing to improve Romania’s energy security?

Andrei Dominic Gerea: Romania is currently 90% energy-independent concerning natural gas and is able to export electricity. Romania continues to seek new gas resources, including shale gas. We are currently exploring the country’s shale-gas resources and waiting for the results of EU studies on fracking. Romania has very strong regulations about drilling because of the country’s long tradition in oil and gas, so safety is paramount.

European Times: What are some new trends in Romania’s energy exports?

Andrei Dominic Gerea: Romania has the capacity to export up to 1500 MW of electricity and is currently exporting 600 MW to Moldova through four connections.

A gas pipeline between Romania and Moldova has just been completed and will offer Moldova a chance to import gas from Romania. To extend Romania’s energy exports to other

30

countries, we are working to improve our production capacities. We also want to attract investment in renewable-energy projects. Romania has very strong potential in renewable energy, particularly biomass and thermal energy.

European times: What is your personal message to potential investors?

Andrei Dominic Gerea: Romania’s energy companies are doing well on the stock exchange, which illustrates the investment potential of the energy sector. Romania is very grateful for the foreign investors which have already entered the market here and we welcome more investors. Romania needs around €100 billion in FDI to reach its energy goals. The Ministry of Energy, Small and Medium-Sized Enterprises and the Business Environment will continue to work to enhance Romania’s investment attractions and to improve the business climate. We invite investors and European travellers to come and visit Romania to see for themselves what a beautiful country it is and how many exciting opportunities are available here.

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Energy & Natural Resources

Powering the Future: Romania is Set for Energy Independence Razvan-Eugen Nicolescu, Chair of ACER

energy-independent countries in Europe as a net exporter of power, although it must import oil and some of its gas (we are the third most energy independent country in the European Union, after Denmark and Estonia). We are encouraging investment in the oil and gas sector. Our major goal is to become energy independent, which implies becoming more energy efficient, as well as increasing oil and gas production. Exxon Mobil has already made a gas discovery in the deep offshore of the Black Sea. European Times: To what extent can current midstream infrastructure support your export goals?

Romania has a long history in the hydrocarbon industry.

Here,

Razvan-Eugen

Nicolescu,

former Minister of Energy and current Chair of the Administrative Board of the Agency for the Cooperation of Energy Regulators (ACER),

discusses Romaniaʼs increasingly diverse energy mix, plans to export power to Moldova and the ambition for complete energy independence.

European Times: How would you characterise the current investment environment in the energy sector?

Razvan-Eugen Nicolescu: Romanian energy companies are currently trying to identify partners and create joint venture projects. In order to attract investors, Romania offers a predictable and favourable investment regime. There is a very competitive business environment in this sector, where several multinational companies like Exxon Mobil, Chevron, GDF SUEZ and E.ON are already well established.

Razvan-Eugen Nicolescu: Romania’s energy sector needs about €100 billion worth of investment in power, oil and gas production, mining and related infrastructure by 2035 to be more self-sufficient. Romania plans to build a new pipeline to transport future gas output from the Black Sea. We want to invest about 230 million euros to link the coast in the east with its existing gas grid. The government will seek to tap EU funds to cover part of the cost of the construction, which will start in 2017. We have also been trying to sell power produced in Romania on the Moldovan market, but Romania needs to increase its interconnection capacity. We have met the threshold established by the European Union but we plan on going even further.

European Times: What are your plans for the future of the Energy sector?

Razvan-Eugen Nicolescu: The most important thing is to keep a balanced energy mix in Romania. We currently have a really good mix between renewable energy, coal, gas, and oil.

European Times: What is the ministry’s focus in the short to medium term?

Razvan-Eugen Nicolescu: Romania is one of the most

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MASTER ROMANIA REGIO

Electricity Producer Achieves Outstanding Results sation plan. Over the same period, Hidroelectrica improved its net treasury from a negative of €170 million in June 2012 to a positive one of €238 million in June 2015.

Factors behind insolvency Hidroelectrica, Romaniaʼs biggest electricity producer registered record profits of €265 million (LEI1,173 million) in 2014, an increase in profits of 30% over the 2013 result (€200 million or LEI902 million). In the first 6 months of 2015 alone, Hidroelectrica earned €161 million in gross profits, 45% higher compared to the same period of 2014, and its turnover was €411 million, 20% higher compared to the 1st semester 2014. Hidroelectrica also reduced its operating costs last year to the lowest level in its history and was ranked as Romaniaʼs most profitable company, with an EBITDA of 63% reported to its turnover.

In addition, Hidroelectrica produced and delivered 9,539 GWh during JanuaryJune 2015, a 12% increase compared to the same period of 2014 – the most productive year since 2010.

Stellar performance since 2012 This stellar track record is particularly impressive since Hidroelectrica entered insolvency in 2012. Remus Borza, head of Euro Insol, Hidroelectrica’s judicial administrator, explains: “By implementing its reorganisation plan to the letter, Hidroelectrica entered a new era of prosperity.

It has reduced its overall debt from almost €1.2 billion in 2012 to €110 million in June 2015, and from a €170 million loss in 20112012, Hidroelectrica achieved a total of approximately €500 million in cumulated

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profits in 2013 & 2014. In 2014 Hidroelectrica’s EBITDA margin was 63% and it was 65% on June 30th 2015. Name another company in the world which achieves 63% EBITDA! In 2014, Hidroelectrica outpaced Europe’s energy leaders Forum (Finland) and Verbund (Austria).”

Hidroelectrica also reduced its liabilities to creditors by 88.5% between June 2012 and June 2015, by strictly complying with the payments schedule outlined in its reorgani-

Remus Borza

Remus Borza explains why a company performing this well became insolvent.

He says, “A hydropower producer in a developed country would normally not become insolvent because the producer is using the cheapest raw material – water — and in 24 out of the 28 EU countries, water is not taxed. In Romania, however, water used for the production of electrical power is heavily taxed. In addition, the holders of energy-supply contracts in Romania purchased electrical power from Hidroelectrica cheaply, well below market price and even below the production cost. Added to this, the company’s management was made up of 90% political appointees. Because of these factors, Hidroelectrica became the most indebted company in Romania in 2012.”

Brought in to implement Hidroelectrica’s reorganisation, Euro Insol renegotiated contracts and profoundly improved the company’s management, including appointing new managers and teams to handle operation, maintenance, rehabilitation, finances, trading, internal

THE EUROPEAN TIMES

Energy & Natural Resources KEY FACTS Installed capacity (MW)** Operating revenues (Lei mn) EBITDA (Lei mn) EBITDA margin (%) Net profit Net profit margin (%) No. of employees Debt./Equity (%)

2010 6,438 3,411 1,378 42 292 9 5,256 18

2011 6,443 3,184 893 29 6 0.2 5,218 25

2012 6,470 2,562 924 38 (508) 5,115 24

2013 6,464 3,260 1,987 61 719 22 4,172 15

2014* 6,443 3,450 2,190 63 967 28 3,711 7

** Note: excluding 200 MW installed in reversible units

SHAREHOLDER STRUCTURE Fondul Proprietatea 20%

Ministry of Economy 80%

MILESTONES 1896 1970 2000 June 2012 June 2013 07.13/02.14 Feb 2014

First hydro powerplant - CHE Sadu I Iron Gates I (1,050 MW) Hidroelectrica is set up as an independent entity from the former integrated state-owned company, Conel Reorganisation procedure is opened Company exits the reorganisation procedure Company implements the two-tier management structure, appointing the management and supervisory bodies Reorganisation procedure is being re-opened, based on irrevocable decision of the Court of Appeal

audits, IT&C, risk management and internal controls. In addition, Euro Insol developed a restructuring plan which was approved by almost 100% of Hidroelectrica’s creditors and lending institutions.

Remus Borza says, “In my experience as an attorney for over 20 years and an insolvency practitioner for almost 15 years, I have never seen such a large majority of creditors approving a reorganisation plan.

Once adopted, this plan became law for Hidroelectrica, which has operated with total openness and transparency.”

in July-September, which would head to an output 2.5 TWh lower compared to the one of 2014. Due to its highly efficient management, its focus on reducing the costs and re-defining its flow of both operational and support activities, Hidroelectrica will reach in 2015 profits comparable to those in 2014.” Looking to the future, Hidroelectrica will focus on optimisation and margin maximisation of its energy sales through new trading, risk and portfolio-management procedures.

To continue to reach its ambitious targets, Hidroelectrica is expanding its European presence. In addition to trading on Romania’s OPCOM-OTC market, Hidroelectrica was licensed to operate in Hungary in late 2014 and recently opened an office in Budapest as well as a subsidiary in Belgrade, Serbia, and has developed a new strategy for medium and long-term trading.

Strong investor interest in planned IPO Hidroelectrica continues to perform well. Remus Borza points out, “In 2015, Hidroelectrica faced a prolonged draught, it registered a critical hydrologic shortage

Given its recent exceptional performance in spite of its insolvency, Hidroelectrica’s listing attracted significant investor interest.

As Remus Borza points out, “Hidroelectrica’s listing will not only be a major event

in Romania, but in Europe as well. In the past two years, I’ve had many meetings with large investment funds in New York, London and Bucharest. All have expressed interest in Hidroelectrica. I anticipate that Hidroelectrica will obtain at least €500 million for the 15% of share capital which will be listed.”

Euro Insol implements a detailed plan for the IPO, which will be overseen by Morgan Stanley and Raiffeisen Capital&Investment Consortium. Remus Borza says, “We want to launch the IPO just a few months after getting Hidroelectrica out of insolvency and exiting the reorganisation process.

Listing is imperative not only for sustaining some of the major investment projects of the company, but also for securing Hidroelectrica, as soon as it exits the insolvency, against the political factor and for insuring the managerial transparency and its sustainable development as well. I can only urge all investors to keep a close eye on Hidroelectrica.”

S.P.E.E.H. Hidroelectrica S.A. 15-17 Ion Mihalache Avenue 1st District, Bucharest, 011171 Tel.: +40 213 032 500 secretariat.general@hidroelectrica.ro birou.presa@hidroelectrica.ro www.hidroelectrica.ro

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ROMANIA

Effective Regulation Encourages Investment in Minerals and Hydrocarbons Extraction The President of the Romanian Agency for

Mineral Resources (NAMR), Gheorghe Dutu, talks about the agencyʼs role in the management of the countryʼs mineral resources.

European Times: What part does NAMR play in Romania’s mineral extraction and mining activities?

Gheorghe Dutu: NAMR manages Romania’s geological fund through the issue of permits and licenses. It also enters into agreements with operators interested in oil extraction.

Our portfolio of over 186 active solid substances includes subsoil deposits of coal, ferrous and nonferrous ores and gold bearing ores. The portfolio also contains onshore and offshore minerals and hydrocarbons.

“Romania has a stable economic climate supported by a legislative framework that conforms to EU bureaucratic requirements for transparency.”

European Times: How important are recent discoveries of gas reserves in the Black Sea? Gheorghe Dutu: Romania is in third place in the EU ranking that measures energy independence. We only import about 20% of our gas consumption and hope that in the near future this ratio will be further reduced and come close to zero. Recent discoveries of gas resources in the Black Sea encourage the view that energy independence is achievable.

We hope to realise this target in 2019, when extraction of natural gas is expected to begin.

European Times: What projects is NAMR currently developing?

Gheorghe Dutu: At the moment we are preparing bid round 11 for the offering of 11 onshore and offshore perimeters. Bid

34

Jelena Baric, Project Coordinator of the European Times, Gheorghe Dutu, President of NAMR, and Laurentiu Liferi, Country Manager of the European Times

rounds are competitive, subject to free market norms and are announced in the European Journal. Another important project currently being worked on relates to legal amendments that will improve the regulation of permits and perimeter access documents. Furthermore, we are developing procedures that recommend good working practices for oil extraction and mining activities.

European times: What does Romania have to offer potential investors?

Gheorghe Dutu: Romania has a stable economic climate supported by a legislative framework that conforms to EU bureaucratic requirements for transparency. NAMR serves as a regulatory interface for investing companies, providing ongoing assistance in relation to any issue concerning mineral and hydrocarbon extraction. Operators are monitored throughout all phases of the program of works that they undertake and support is provided when required. An example of how NAMR has supported both the operators and public interest is represented by the website created with EU funds to explain the operations related to shale gas extraction. We are ultimately seeking to create a mutually beneficial outcome that serves the economic objectives of both the investor and Romania.

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Energy & Natural Resources

Leading Energy Market Reform in Romania price to final customers will increase by about 11%. In the electricity sector, due to the maintaining of regulated prices to households at the same value as the one in the second semester of 2014 and to the reduction of the high efficiency cogeneration contribution, a decrease by 0.5-1% of the electricity bill to households is envisaged in the second semester of 2015.

Niculae Havrilet, President of Romaniaʼs

energy regulator ANRE, discusses change in the Romanian energy sector and the steps taken to ensure continued future development.

European Times: What is the role of ANRE in the Romanian energy sector?

Niculae Havrilet: ANRE’s role is very important, because it provides a regulatory framework that promotes transparency, predictability and stability. Also none of our secondary regulations are done without public debates. These conditions are necessary to attract investment in the Romanian energy sector, which derives benefits for all stakeholders.

European Times: What are the principal challenges for ANRE in 2015?

Niculae Havrilet: The main challenge for 2015 lies in the liberalisation of household energy markets, which will inevitably bring price increases. Price increases are required to create the necessary conditions for competition, ensuring that investors achieve their targeted return on investment. In order to facilitate price increases, we have put into force a pre-market mechanism that targets estimated price increases according to the timetable for phasing out the regulated tariffs to households. One of our key tasks is to educate consumers to get the best energy deal possible. In the natural gas sector for instance, following the recent discussions held by the Romanian government with the representatives of the International Monetary Fund, European Union and World Bank, the parties agreed to increase the price of natural gas from domestic production as of July 1, 2015 and as a result, we estimate that the average

The achievement of European Commission targets related to the production of energy from renewable sources has encouraged further development, particularly in biomass sources. Serious efforts are also being put into achieving European targets for energy efficiency. In this respect, ANRE aims to run an information campaign for final consumers from Romania regarding the use of renewable energy and its benefits to daily living and to family budget that can be obtained by simply applying energy efficiency measures.

European Times: What progress is being made with energy sourced from biomass?

Niculae Havrilet: Romania has a good supply of biomass, largely as a result of its forests. We have registered some success using biomass for public heating, particularly in the city of Suceava in the north of the country. We have been actively engaged in developing regulations for the biomass energy sector and expect increased investment throughout 2015. In addition, besides biomass, the biogas sector also has a great potential in Romania, especially in small and medium-sized communities, where biogas sources can be the engine behind the expansion of local activities such as tourism, small industry, agriculture and agro-industry. This potential can be developed through a national program for biomass and biogas but also through direct cooperation between companies with notable results in the field.

European Times: Market liberalisation and price increases are changing the investment environment in Romania. What incentives exist to attract future energy sector investors?

Niculae Havrilet: Romania has positioned itself as an electricity supplier to Hungary, Slovakia and the Czech Republic. The potential of export markets will drive investment as investors seek to expand power generation capacity in line with greater demand. Increased electricity supply will also enable us to shift the emphasis of household energy consumption from gas to electricity, releasing increased quantities of gas for industrial applications and reducing our reliance upon gas imports. Everything possible has been done to smooth the way for international energy trading, including the installation of an OTC platform on our stock exchange.

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Dynamic Advocate for Oil and Gas Sector Andrew Costin, President of the Petroleum Club

The Petroleum Club of Romania plays a major role in driving forward the development of Romaniaʼs energy sector. Andrew Costin, President, was born in Romania but educated in the US

and had held top-level private-sector posts there before opening his own practice in Romania specialising in oil, gas and energy.

He discusses the Petroleum Clubʼs priorities and projects.

European Times: What are the Petroleum Club’s main activities?

Andrew Costin: The Petroleum Club, which now has around 100 members, is one of Romania’s strongest business associations. It is different from the American Chamber of Commerce and the Foreign Investors Council in that the Petroleum Club is industryspecific. Through the Petroleum Club, members can showcase their products and services to a focused audience. We

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regularly organise networking events, including the annual Upstream Conference and Exhibition, which was held on April 22-23 and featured speakers from all over the region. Another priority for the Petroleum Club is to serve as an advocate for the oil and gas sector in discussions with the Romanian government.

European Times: How has Romania’s oil and gas industry evolved in recent years?

Andrew Costin: Romania has been producing oil and gas for 150 years and opened the world’s first refinery.

Romania still has more reserves on Europe’s continental shelf than other EU countries do. Because of this long history, Romania has developed a skilled labour force in the oil and gas sector and the University of Oil and Gas in Ploiesti is known worldwide.

The downside of this long tradition is that reserves are declining, so new technologies are required to exploit them. Expert Petroleum, a Petroleum Club member, has employed modern technologies in this way and is now one of Romania’s success stories.

Gas, including unconventional gas, is a very hot topic in Romania today.

Challenges for the sector include new taxes and a new royalty scheme which might have a negative impact on our members.

European Times: How is the Petroleum Club helping Romania go global?

Andrew Costin: We take part in events all over Europe and worldwide, including the World Petroleum Congress. We sent a delegation to a major offshore conference in Houston in May this year, and as President I am committed to enhancing our presence in Brussels.

Among many other events planned this year, the Petroleum Club will host the Romania Gas Conference and Exhibition in Bucharest in November to showcase the potential of Romania’s oil and gas sector.

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Energy & Natural Resources

Leading Independent Oil and Gas Company Planning Rapid Growth Gafton points out, “A key factor in Amromco’s success is the seamless integration of the Romanian and Houston teams. Our people are our greatest asset. Amromco built and maintains its competitive advantage through an entrepreneurial and teamwork oriented culture, a relentless drive for excellence, cutting-edge technologies, and the ability to operate according to the highest international standards.”

Amromco’s Future Amromco Energy is the largest and oldest independent oil and gas producer in Romania.

Since its founding in 2002, Amromco has grown to be Romaniaʼs largest independent

oil and gas producer and the third-largest producer in the country.

Tudor Gafton, General Manager, explains, “We began our partnership with RomGaz to re-develop 11 onshore oil-and-gas concessions. Since then, we have successfully assisted in developing and enhancing the production from a number of RomGaz’s fields, with incremental production totalling approximately 2 Bcm. Today, Amromco operates 27 production and three exploration-appraisal concessions in Romania. Amromco focuses on its niche market the exploitation and redevelopment of mature oil and gas fields.

With over 440 employees, 90% of which are in Romania, Amromco has invested over €220 million in Romania over the past decade. The company has a strong track record in Romania, as illustrated by the accomplishment of bringing more fields on-line than any other independent operator over the past ten years. Other recent milestone successes include doubling production from 2012 to 2014 and the closing of the first ever Romanian reserve based loan. Amromco gains from its strong financial relationship with First Reserve Corp., the world’s largest private equity firm solely focussed on energy and Mercuria, one of the world’s largest integrated energy and commodity trading companies.

Amromco’s Romanian team is staffed by Romania experts in all technical and operational facets of the business. Tudor

1

Amromco has ambitious growth plans. Tudor Gafton says, “We hope to increase our cooperation with RomGaz and OMV Petrom, and establish operations in neighbouring Eastern European countries.”

Tudor Gafton points out: “Romania’s energy sector is growing and offers great opportunities for investment, with a deeply knowledgeable work force, attractive fiscal terms, and a long history of successful and profitable oil and gas production.”

He praises Romania’s NAMR for its transparency, fairness and emphasis on encouraging all types of operators, large and small.

Tudor Gafton says, “We are constantly working with Romania’s national oil and gas enterprises to allow investment in developing oil and gas fields. The Romanian government has realised that this needs to be done and that this process will require investors from outside Romania who are looking for attractive and stable regimes in which to invest.”

He adds: “With the right kinds of partnerships, Romania’s oil and gas industry is a win-win investment choice.”

Amromco Energy Republic Boulevard 152K, 100151 Ploiesti, Prahova Tel.: +40 244 512 361, www.amromco.com

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ROMANIA

New Policies to Stimulate More Investment in Green Energy Fantanele-Cogealac Wind Farm

© Sandri Alexandra

Romania, home of Europeʼs biggest onshore wind farm, has impressively already reached its EU 2020 renewable-energy targets. The countryʼs renewable-energy production totalled

more than 4,200 MW as of April 2015, or around 14% of total national energy output last year.

Several new renewable-energy plants with a total installed capacity of over 60 MW and a combined investment value of over €100 million will be connected to Romania’s energy grid in the coming months, according to national electricitytransport company Transelectrica. These include wind farms with a combined capacity of 40 MW, solar plants totalling 18 MW, and biomass plants totalling 15 MW. One new project is a 1.7 MW solar-energy park in Braila County financed and built by state-owned Electrocentrale Grup.

Changes in legislation in 2014 cut incentives for renewableenergy projects, and several planned initiatives were put on hold. In making the changes, Romania joined Spain, France, Italy and the UK in curtailing aid for renewable energy in order to avoid overcompensating certain companies and to limit electricity-price increases for consumers.

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Continued investment in green-energy capacity The Romanian government is now working to stimulate renewable-energy investment again. Andrei Gerea, Minister of Energy, points out, “Romania is not yet in a situation to say, ‘OK, we met our 2020 renewable-energy goal, and that’s it’. We have to continue to invest in capacities, because we can export energy and earn revenues.”

Investors are not giving up on the Romanian renewableenergy sector, which offers enormous development potential.

CEZ, the Czech Republic’s largest producer of electricity, said in April 2014 that it was considering selling its 600megawatt wind park in Romania because of incentive changes, but it later changed its mind.

In a move which signals the Romanian government’s commitment to attracting more renewable-energy investment, in June this year the government lifted its ban on bilateral electricity trading between small-scale renewable-energy producers. The 2012 ban eliminated all energy trading other than by market operator OPCOM, a move which crippled liquidity until OPCOM launched its own over-the-counter (OTC) platform in March 2014.

The ban was implemented after domestic hydropower

THE EUROPEAN TIMES

Energy & Natural Sector Resources

© Live4photo-Dreamstime.com

Dam on Olt river

producer Hidroelectrica struck a number of deals with traders at below market prices and was subsequently driven into insolvency.

Thanks to the changes made in June, renewable-energy producers with installations of under 3 MW can now strike bilateral deals. Many of Romania’s energy leaders are calling for the new freedom to be extended to larger power plants.

Claudiu Dumbraveanu, Vice President at energy regulator ANRE, commented at a recent symposium that the ban should also be lifted at least for units of from 5 MW to 10 MW, because most wind and solar installations are that size.

Ion Lungu, head of Romania’s Association of Electricity Suppliers (AFEER), says, “I remain optimistic that at some point we will see the return of the bilateral deals, but it might take a while.” Meanwhile, green-energy producers can close deals on OPCOM’s platforms.

Innovative local energy companies In spite of the challenges in Romania’s green-energy sector, innovative local companies continue to find new ways to produce clean, green, reliable energy at lower costs. A leader in the field is ecoHORNET, which has developed high-performance equipment and heating systems which employ cutting-edge biomass-combustion technology to generate heat and electricity through burning pellets at temperatures of over 1250 degrees Celsius. The process produces minimum emissions and achieves an impressive 94% to 97% efficiency. In addition, the ecoHORNET system produces heat from a wide variety of products (including agricultural and household waste) by compacting them into clean, odourless pellets. Companies like these will help position Romania as a green-energy leader.

Clean, Green, Low-Cost Energy Obtained from Everything that Burns

Technology and equipments that produce clean, green, reliable energy from everything that burns, with minimal emissions, exceptionally low costs, and 94% to 97% efficiency? This seemingly impossible dream is already a reality thanks to Romanian enterprise ecoHORNET. ecoHORNET manufactures high-performance equipments and heating systems that employ cutting-edge biomass-combustion technology to generate heat through compacting a variety of materials (including animal, plant and household wastes) into clean, odourless, non-toxic pellets, and then burning these pellets at temperatures of over 1250 degrees Celsius. CEO Iuliean Hornet, who developed ecoHORNET’s groundbreaking technologies along with his brother, explains, “Our company’s main objective is to provide even more people with access to green, cheap energy using inexhaustible, rapidly renewable and non-polluting fuel sources and with performance levels that will be imposed by law in 2050.”

Iuliean Hornet was named “Romanian Businessman of the Year in 2012”, and in 2014 in Oxford, UK, the Europe Business Assembly and the Socrates International Committee named him “Manager of the Year” and chose ecoHORNET for its prestigious “Best Enterprise” award. Noting that ecoHORNET welcomes international partnerships, he concludes, “Long-term pollution costs more than we can pay. Therefore we, together, must develop economic activities which respect our neighbours, our environment and future generations.”

eco HORNET S.C. ecoHORNET SRL Highway A1 km. 13.2, exit Ciorogarla, Str. Italia, no. 4, Chiajna, Ilfov Tel.: +40 745 050 050 +40 740 888 085 president@ecohornet.ro, www.ecohornet.ro

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ROMANIA

• Agency Protecting Romania’s Environment

Environment

“We want Romania to be the number one country in Europe in reforested areas.”

Gratiela Gavrilescu Minister of Environment, Waters and Forests

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Environment

Protecting the Environment and Promoting Sustainable Growth Gratiela Gavrilescu, Minister of Environment, Waters and Forests

European Times: What are the priorities of the Ministry of Environment, Waters and Forests?

Gratiela Gavrilescu: The ministry integrates its policies and projects to cover all aspects related to the environment. We are extremely focused on applying international standards and laws concerning the environment here in Romania and we closely follow the evolution of environmental legislation in Europe and worldwide. We aim for every Romanian to be aware of the need to protect the environment. We are concentrating on preventing environmental disasters rather than recovering from them.

European Times: What are some of your ministry’s current projects?

Romaniaʼs

policies

on

the

environment

focus on protecting the environment for future generations, preserving biodiversity, promoting Romaniaʼs

renewable

energy,

environmental

aligning

policies

and

practices with EU and international standards, combating pollution and the effects of climate

change, and promoting environmentallysustainable economic growth along with the creation of “green” jobs.

A priority is to efficiently absorb the available EU funding for environmental projects in Romania for the period 20142020. Gratiela Leocadia Gavrilescu, Romania’s Minister of Environment, Waters and Forests, discusses her ministry’s current projects and goals.

Gratiela Gavrilescu: We are partnering with the Ministry of Development to employ EU funding to upgrade water and wastewater infrastructure. Another very important project involves reforesting land throughout the country, and we plan for 2015 to be the year when the largest area of Romania is reforested. We want Romania to be the number one country in Europe in reforested areas. Other current projects for the ministry include an effort to promote reduced pollution from automobiles through initiatives directed at the public as well as the auto industry, a programme to reduce harmful emissions, and a programme to encourage people to provide their own energy through renewable resources. This programme was stopped in 2011 and we would like to revive it. We are also involved in projects with other ministries and non-government organisations to communicate information to Romanian citizens about environmental issues. In another major effort, we are partnering with the World Bank in a waste-management project. This covers all types of waste: household, agricultural and industrial. We want to develop systems to use waste in productive ways, for example to create energy.

European Times: What is your personal message to potential EU investors and partners?

Gratiela Gavrilescu: Romania has beautiful landscapes and a high awareness of the need for environmental protection. Romania offers many opportunities for productive partnerships.

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MASTER ROMANIA REGIO

Agency Protecting Romania’s Environment contamination, waste management and chemicals in Romania.

Florin Toma Petcu, President NEPA

The

National

Protection

Environmental

Agency

(ANPM

or NEPA) is responsible for Romaniaʼs protection

at

environmental the

national

level. Overseen by the Ministry of Environment, Waters and Forests,

authority

the

for

core

central

environmental

protection in Romania, NEPA coordinates 42 county agencies

acting together to improve

Romaniaʼs environment now and in the future.

NEPA is responsible for environmental legislation and policies implementation, issuing permits for activities having environmental impact, monitoring environmental factors, and reporting to the European Environment Agency (EEA), the European Environment Information and Observation Network (EIONET), EUROSTAT and the European Chemicals Agency (ECHA) all data concerning air quality, protected areas, soil

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To improve efficiency, NEPA has implemented the National Integrated Environmental Information System (SIM) to allow legal entities, individuals and public institutions to obtain environmental permits and to report environmental data required by laws and regulations. In addition to facilitating online reporting of environmental data by businesses, individuals, and public institutions, SIM also helps NEPA centralize and validate all data and better fulfill its EU reporting obligations in every area involving environmental protection.

Committed to monitoring environmental parameters in order to ensure a clean, healthy and safe environment, NEPA coordinates all monitoring activity based on data provided hourly by 142 automatic stations and laboratory measurements. These efforts are designed to ensure cleaner air for Romania and for Europe as well as to monitor any radioactivity.

Protecting Romania’s biodiversity and natural heritage and improving the natural environment through proper monitoring of the conservation status of species and habitats is a major objective for NEPA. NEPA recognises the increasing demand for high-quality Earth observation data and the benefits of the European Earth Monitoring Programme Copernicus in making life better and safer for the citizens of Romania.

The Nature Conservation and Biodiversity Directorate of NEPA completes an annual report, the EIONET- CDDA (Common Database on Designated Areas), for the

EEA concerning natural protected areas in Romania. This report includes an Access database and a Geographic Information System (GIS) database.

NATURA 2000 criteria NEPA has updated its reporting format to comply with the new EU criteria outlined in the NATURA 2000 programme. NEPA brought its Nature Protection Application within the SIM project in line with EU criteria for all NATURA 2000 sites designated in Romania in 2011.

The “Integrated Management and Awareness of the Natura 2000 Network in Romania” (SINCRON) project is an important initiative for NEPA. Its main objectives are to conserve Romania’s natural heritage, develop appropriate management plans for nine designed protected areas, raise public awareness about nature conservation and Natura 2000, and implement and share knowledge and experience. NEPA’s “Monitoring of the Conservation Status of Species and Habitats in Romania According to Article 17 of the Habitats Directive” is another key project; it is financed by the Sectorial Operational Programme for the Environment.

NEPA is currently working with partners in project proposals to map, monitor and determine the benefits of ecosystems.

NEPA will continue to play a crucial role in protecting Romania’s biodiversity and natural heritage and in improving the country’s natural environment through proper monitoring of the conservation status of species and habitats.

THE EUROPEAN TIMES

• Impressive Record in Using EU Funds Productively • Using EU Funds Effectively

EU Funds

“Romania is a well-run country, dedicated to transparency and to private sector support.”

Eugen Teodorovici, Minister of Finance

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MASTER ROMANIA REGIO

Impressive Record in Using EU Funds Productively Eugen Teodorovici, Minister of Finance

The absorption of EU funds is a top priority for Romania and

the Ministry of European Funds has achieved impressive results in speeding up the process.

Romania increased its rate of EU funds absorption from 8.5% in May 2012 to 51.8% in December 2014 and the ministry is managing more than €15 billion of the EU funds allocated for the programming period 2007 - 2013 and the same amount for the programming period 2014 - 2020. Eugen Orlando Teodorovici, former Minister of EU Funds and current Minister of Finance, discusses the impact of EU funding on Romania’s economic development.

European Times: How has the Ministry of EU Funds managed to increase Romania’s fundsabsorption rate so significantly?

Eugen Teodorovici: We have streamlined the process of EU funds management for both the public and private sector. We took various measures in order to improve it and to ensure the conditions to effectively use the EU funds. For example, the government has constantly allocated funds to make timely payments to the beneficiaries, simplified the implementation system in order be more efficient, and amended the legislation in order to have more simple and clear rules.

As a Minister, I improved the procurement rules for the beneficiaries from

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discussions with leaders involved in healthcare, labour issues and education in Romania in order to identify new areas which could most benefit from EU funding. Special attention is given to the inclusion of vulnerable groups, like Roma people. Much of Romania’s EU funding is going to support production, particularly companies involved in exports outside the EU. The EU funds allocated to Romania for the programming period 2014 – 2020 will be used in order to tackle the real problems of Romania. I have the duty to invest in the future of my country!

the private sector: they do not have to respect the same rules as the public institutions. Actually, the private beneficiaries from Romania have to observe one of the best procurement regulations from Europe, but with an increased transparency in comparison with the previous one. As a general rule, the ministry is also committed to transparency and to respecting the EU principles and rules. From the beginning of my mandate, I introduced the concept of “zero tolerance for corruption”. This is the correct approach in order to use the EU funds for a strong Romanian economy, in benefit of the EU.

Eugen Teodorovici: I believe that European institutions should listen to and learn from all EU member states, especially the ones from Eastern Europe who have encountered the greatest difficulties in the past. Romania wants to be a partner for other EU members and to serve as a benchmark for other EU countries in terms of efficient use of EU funds.

European Times: What are some of the projects which have benefited from EU funding?

European Times: Why should European investors choose Romania?

Eugen Teodorovici: The famous ELI-NP laser project is one example.

Another successful initiative is RAJA, a Constanta-based water company, and last year we launched a project to support young entrepreneurs.

Presently, the ministry has ongoing

Eugen Teodorovici: Romania’s success in EU funds absorption, particularly over the past two years, is proof to investors that Romania is a well-run country, dedicated to transparency and to private sector support. My message is very simple: Trust Romania!

European Times: What is Romania’s relationship with EU institutions?

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MASTER REGIO

THE EUROPEAN TIMES

EU Funds

Exemplary Water Company Serves as Benchmark Constanta Nord wastewater treatment plant

Eforie Sud wastewater treatment plant

RAJA Constanta serves as a benchmark in Romaniaʼs rapidly developing water sector. A public enterprise operated according to the highest international standards, RAJA Constanta provides water as well as sewerage and wastewater-treatment services for more than 2.5 million inhabitants year-round. During the summer months, RAJA also serves around 1.5 million tourism visitors.

Felix Stroe, Director-General, explains, “RAJA is the biggest public water company in Romania and amongst the most modern ones concerning its management and operations. We have organised the company into seven profit centres, which allows us to provide efficient services over a large area of operation.”

Commander in the Romanian navy, Felix Stroe is also the President of the Executive Board of Aqualia Management Solutions (a joint venture with its headquarters in Amsterdam, The Netherlands) and President of the Romanian Water Association, one of Romania’s biggest professional organisations.

He has headed RAJA Constanta since 2003, spearheading the company’s impressive expansion. In 2003, RAJA Constanta served around half of Constanta County, while today it is active in seven different counties and continues to grow.

Highly developed infrastructure RAJA Constanta’s highly developed infrastructure includes almost 4800 km of water supply pipes, over 2000

1

km of sewerage sections, 17 wastewater-treatment plants, more than 200 pumping stations for drinking water and wastewater, and several laboratories to ensure the highest possible water quality. RAJA Constanta has obtained all ISO certificates, including the ISO 22000 “Food Safety” certificate which few European companies have achieved.

Felix Stroe points out: “RAJA Constanta is a licensed, first-class operator and an important member of the International Water Association.”

EU funding has played an important role in RAJA Constanta’s evolution. The company managed to attract by means of the proposed projects financing in the amount of €364.2 million in EU funding for 2007-2013. “This was the largest EU investment in Romania to date for the drinking water and wastewater infrastructure sector,” explains Felix Stroe. Now RAJA is elaborating new projects aiming at obtaining funds of over €350 million through the Large Infrastructure Operational Programme, developed with EU funding, and €180 million through the “Increase of Economic Competitiveness” Sectoral Operational Programme.

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THE EUROPEAN TIMES

EU Commissioner Johannes Hahn visiting Constanta Nord wastewater treatment plant

Former US Ambassador Mark Gitenstein with CEO of SC RAJA SA Felix Stroe

Impressive track record in absorbing EU funds

Felix Stroe thanks the US Department of Commerce, which helped RAJA implement a cutting-edge SCADA-Motorola system, and US Ambassadors Nicholas Taubman and Mark Gitenstein, who have permanently supported the company.

RAJA Constanta has an impressive track record in implementing EU funds. Compared to the national average of 50%, RAJA Constanta has absorbed 78% of its EU funding.

In fact, Johannes Hahn, EU Commissioner for European Neighbourhood Policy and Enlargement Negotiations, was so impressed with RAJA Constanta’s performance that he provided the EU funds needed to perform investments in the water and sewerage sector in Constanta through the Sectoral Operational Programme – Environment, needed to comply with the European Commission’s Directives in this respect.

Another diligent observer of RAJA Constanta is Benoit Nadler, Representative of the European Commission in Romania, whereof Felix Stroe says: “Benoit Nadler assessed realistically our company’s capacity, its seriousness and economic efficiency in spending public money, and he recommended its management.” In Romania, RAJA Constanta has earned the full support of the government. Prime Minister Victor Ponta has met with Felix Stroe several times to discuss issues relating to water systems, and Minister of Finance Eugen Teodorovici, former Minister of EU Funds, has been instrumental in helping RAJA achieve its high EU-funds absorption rate.

The European Bank for Reconstruction and Development has been partnering with RAJA Constanta for 20 years and provided co-financing for the company’s pre-EU-accession and postaccession programmes. Felix Stroe says: “Jean-Patrick Marquet, until recently Director of Municipal and Environmental Infrastructure for the EBRD, has contributed a lot to the achievement of our performance, getting directly involved in the economic financial and management analysis of our company.” Another key international partner is the US government, which has provided funding and other assistance for RAJA over the years.

Explaining RAJA Constanta’s success journey, Felix Stroe highlights the dedication of the company’s management team and employees, as well as the decision to focus on absorbing EU funding efficiently. He says, “We are the only company in Romania which formed a Directorate for EU Funds management, professionally providing both the funds absorption capacity and the development of new projects. We have also invested in extensive employee training and in ensuring modern working conditions and equipment. In 2014, Benoit Nadler said during a press conference that Romania’s absorption of EU funds will increase if there are more companies as RAJA and, in this respect, they should clone RAJA Constanta. RAJA Constanta is also very active in informing the public about its activities, making public the involvement of the European Commission and the Romanian government in the development of investment in the water and sewerage sector, to the benefit of population and environmental protection.

Expanding throughout the region Building on its success in Romania, RAJA Constanta is expanding abroad. To this end, it has launched a jointventure with the Aqualia Group (the world’s second-largest water company) and with the EBRD’s participation to form Aqualia Management Solutions based in Amsterdam.

RAJA Constanta, with a 40% share in the venture, is a leading shareholder. The new enterprise has already begun a project in Moldova and is negotiating projects in Macedonia, Albania and other countries where the EBRD is present.

As a highly successful, well-run enterprise, RAJA Constanta demonstrates the potential of Romania as a target for FDI. Felix Stroe concludes, “Romania has very strong companies which can absorb a substantial amount of EU funds and perform very well. I welcome large European construction companies to participate in tenders for projects RAJA Constanta is developing with EU funds. RAJA Constanta is helping to change Romania’s international image for the better, and the projects we are planning offer outstanding opportunities.”

Former Director of Municipal and Environmental Infrastructure for the EBRD, Jean Patrick Marquet signing the financing contract

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RAJA Constanta Str. Calarasi nr. 22-24, 900590, Constanta Tel.: +40 241 66 40 46 raja1@rajac.ro, www.rajac.ro

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THE EUROPEAN TIMES

MASTER REGIO Sector EU Funds

Using EU Funds Effectively

Local Water Company Bringing EU Standards to Prahova County Hidro

Prahova

provides

reliable

water

and

sewerage services for around 260,000 residents

in 12 townships in Prahova County, including the

countryʼs

industrial

parks.

Thanks

to

professional and modern management, Hidro Since it joined the EU in 2007, Romania has

been receiving a significant boost from EU

structural funds. The European Commissionʼs

Prahova has achieved impressive operational and

financial performance and has positioned itself competitively in the EU water and sewerage sector.

Partnership Agreement with Romania for the period 2014 to 2020 continues this cooperation.

EU funds for Romania up to 2020 will support a wide range of projects, including promoting youth employment, stimulating rural development (target of around €8 billion from the EU), fostering a “green” economy, boosting competitiveness, improving education and training, combating social exclusion, helping SMEs, modernising water systems, and spurring on the growth of the shipping and fisheries sectors, among many others.

Major projects from lasers to water supply Major projects which have benefited from EU funding include the prestigious ELI-NP laser initiative, Constanta’s water company RAJA, support for businesses created by the Romanian Diaspora, several export-oriented manufacturing projects, and more. To help Romania coordinate, manage and supervise its European Structural and Investment (ESI) Funds, the European Commission launched a €212 million Technical Assistance programme for Romania in December 2014. European Commissioner for Regional Policy Corina Cretu commented, “The speedy adoption of the Technical Assistance programme is a strong signal the Commission would like to give to Romania to support its administration in managing EU funds. I call on the Romanian government to start implementing projects for the 2014-2020 period with a focus on quality and on delivering the best possible results for its citizens.”

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In 2011, Hidro Prahova launched an ambitious EU-funded €160 million modernisation and rehabilitation of Prahova County’s water and wastewater systems. The project will improve the county’s water and wastewater infrastructure, protect the environment and bring Prahova County’s water and wastewater systems in line with EU environmental standards according to the terms of Romania’s EU acquis.

Hidro Prahova is committed to supporting Romania’s economic growth, helping to create jobs, and improving Prahova County’s appeal as an FDI target. Adrian Semcu, Director General, explains, “Hidro Prahova welcomes international investors to our region and we will work with local authorities to ensure reliable water and sewerage infrastructure as well as other services to guarantee the availability of water 24/7. Romanian water companies like Hidro Prahova have the necessary expertise to accomplish this task effectively and transparently. Hidro Prahova is ready to provide world-class water and sewerage services throughout Prahova County and beyond.”

Hidro Prahova Str. Stefan Greceanu No. 1, Etajele 1-3(Cladirea Romtelecom) Ploiesti, Prahova, 100166 Tel.: + 40 244 529 474, www.hidroprahova.ro

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THE EUROPEAN TIMES

MASTER ROMANIA REGIO

Innovative Water Enterprise Open to Partnerships Thanks to millions of euros in financial

support from the EU and the EBRD over the past 20 years, Romania has significantly modernised

and

upgraded

its

water

infrastructure. Compania de Apa Buzau,

based in Buzau Municipality, is an example of a Romanian water company which has used EU, EIB and EBRD funds efficiently to provide high-quality services for its customers.

Director General Ionel Tescaru points out, “Compania de Apa Buzau absorbed all the funds that were allocated to us in the first operational programme, the Operational Sectorial Programme ‘Environment’. This year, again through the OSP ‘Environment’ programme, Compania de Apa Buzau accessed an additional €20 million in funding to be invested by the end of 2015 in projects that were initially designed to be funded through the Large Infrastructure Operational Programme (LIOP). Compania de Apa Buzau’s priority will continue to be to absorb new funds. Through the LIOP, we intend to access €160 million in the first phase, up to the end of 2018, in order to receive funding in the next financing phase up to 2020.”

EU-standard municipal water-supply and sewerage-water treatment systems Compania de Apa Buzau is playing an important role in drawing local and international investment to Buzau, where companies can count on efficient and reliable water services.

Explaining Compania de Apa Buzau’s success story, Ionel Tescaru says, “We cover 99% of Buzau Municipality. We are a young company but we are very advanced in absorbing funds and organising projects which meet EU criteria. We have an efficient team which proved its professionalism even during the pre-acces-

148

sion period, when the team successfully managed a grant of €36 million through the Instrument for Structural Policies for PreAccession Programme.” Compania de Apa Buzau is committed to demonstrating that Romanian water systems (supply, sewerage and treatment) can be managed properly.

Ionel Tescaru has a unique approach to Compania de Apa Buzau’s future growth. He says, “Our idea of development is not to grab new townships to add to our network, but rather to partner with other water companies, like RAJA Constanta, to work together to promote sustainable development at the regional level. Only in such a way can we play a leading role in the market for water-supply and sewerage-water-treatment services in Romania and eventually in Europe as well.”

Compania de Apa Buzau has positioned itself as a desirable partner thanks to its proven ability to absorb EU funds efficiently and to use cofinancing from international financial institutions effectively. Ionel Tescaru emphasises that the development of Compania de Apa Buzau up to its current level would not have been possible without EU funds. He says, “In only 10 years we achieved what it would have taken us 20 years to do if we had not had access to European financing. Compania de Apa Buzau will continue to develop and grow sustainably and help demonstrate that Romania is truly part of the EU.” Compania de Apa Buzau Str. Unirii, Bl. 8 FGH, Buzau Tel.: +40 238 720 356 - +40 238 715 438 office@cabuzau.ro - infopublic@cabuzau.ro www.cabuzau.ro

THE EUROPEAN TIMES

• Bucharest: Dynamic Modern Capital

Bucharest

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THE EUROPEAN TIMES

MASTER ROMANIA REGIO

Bucharest: Dynamic Modern Capital Palace of the Parliament © Imaengine-Dreamstime.com

Bucharest, Romaniaʼs capital, is a modern, vibrant business

and cultural hub. The city offers visitors a choice of luxury

hotels, state-of-the-art facilities and services for business and conferences, tranquil parks and gardens, upscale shopping, fine

restaurants, exciting museums and other cultural venues, and lively nightlife.

Founded in the 15th century, Bucharest has many architectural landmarks from different periods of its long history, but the city’s most famous building is the massive, communist-era Palatul Parlamentului (Parliamentary Palace), which has 1,100 rooms and is said to be the second-largest building in the world.

Another imposing structure is Bucharest’s Arch of Triumph, built to honour Romanian soldiers who fought in World War I and decorated with sculptures by Romanian artists.

The late 19th century Romanian Athenaeum, with its elegant baroque cupola, stands out from other landmarks because it was financed mainly by donations from the city’s residents.

Housing an auditorium with outstanding acoustics, it is the home of Romania’s George Enescu Philharmonic Orchestra.

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Picturesque Centru Vechi Centru Vechi (Old Town) is filled with ancient cobblestone streets and landmark buildings, many of which have been turned into trendy shops, restaurants and bars. The Lipscani area in Old Town is also the home of 15th century Curtea Veche palace, where Prince Vlad III (“The Impaler”) once ruled.

Calea Victoriei, Bucharest’s oldest street, was built in the 17th century to link the Old Princely Court to Mogosoaia Palace. In the first half of the 20th century, Calea Victoriei became one of the most fashionable streets in the city. It is lined with many stunning structures, including Cantacuzino Palace and the National History Museum.

For a break from city streets, beautiful Cismigiu garden is a quiet place to stroll. It is set in the heart of an exclusive residential area which has a few upscale boutique hotels as well as restaurants and some nightlife. Dacia Boulevard, which links Piata Romana with Calea Mosilor, is the centre of a neighbourhood known for its elegant 19th and early 20th century villas, many of them housing hotels, restaurants, embassies and consulates.

Bucharest’s facilities for business travellers include the Bucharest International Conference Centre, a 10,000sq-m exhibition space with eight state-of-the-art, elegantly designed meeting halls accommodating from 50 to 1,200 seats. The centre’s events team can organise any type of meeting or function, and catering services are available.

Bucharest – a safe, lively, modern urban centre – has much to offer visitors.

Hotel Est Soseaua Pantelimon No. 23, Sector 2, Bucharest Tel.: +40 21 252 7864 office@hotelest.ro www.hotelest.ro

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Bucharest

Bucharest’s Leading Three-Star Hotel

Hotel Ibis Gara de Nord in Bucharest, a member of the global

Accor group, is the cityʼs number one three-star hotel. It is well known for offering the high-quality facilities and services for which Ibis is known worldwide, along with very attractive prices.

General Manager Calin Ile points out, “We are the top hotel in our niche in Bucharest.”

The hotel enjoys an excellent location, just steps from Bucharest’s main railway station and around two km from the city centre. Amenities at the hotel include a French bistro, free WiFi, an outdoor terrace, a lobby bar open around the clock, and private outdoor parking. For business travellers, the hotel has eight conference rooms equipped with the latest communications technologies.

The Ibis Gara de Nord has 250 rooms and suites; all equipped with comfortable beds, desks, TV, WiFi Internet connections and private bathrooms.

Around 65% of the Gara de Nord’s guests are business travellers but Calin Ile anticipates strong growth in the leisure-tourism market as Romania’s tourism sector develops. He is a member of the Bucharest Tourist Board, serving

1

as the representative of the local hotel association. He says, “It is a challenge for us to convince the municipal government that there is a big future for tourism in Bucharest. We are focussing on positioning Bucharest as a city-break destination and we are also promoting the hotel association.” He would like to see more marketing of Bucharest as an attractive choice for both leisure and business travellers.

Reliable international standards and great value Being a member of the international Ibis group is an advantage for the Gara de Nord, since Ibis has its own guest-loyalty programme as well as a recognised commitment to international standards

and a global online reservations system.

Defining the hotel’s competitive edge, Calin Ile points out, “As an Ibis hotel, the Gara de Nord offers security and no surprises. It is secure, comfortable and in a great location. Most importantly, it is a great value.”

Close to the city centre, to some of Bucharest’s key business districts and to the historic centre with its lively and vibrant party scene, Ibis Gara de Nord is also a great starting point for day trips to Romania’s mountains, historic towns or unspoilt rural landscapes.

Urging international travellers to discover Bucharest and the Ibis Gara de Nord, Calin Ile concludes, “Come to Bucharest to see how exciting life is here, and while you are here, stay at the Ibis Gara de Nord, a comfortable, international hotel in a great location.”

Hotel Ibis Gara de Nord Calea Grivitei No. 143, Sector 1 10708 Bucharest Tel.: +40 21 300 9100/9110 reservations.nord@ibishotels.ro www.ibishotels.ro

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THE EUROPEAN TIMES

ROMANIA

Innovative Auto-Sector Specialist Focussing on Service and Partnerships A history of flexibility and resilience

Badsi, a 100% Romanian auto-sector specialist, provides a wide range of auto services, from sales of new vehicles to exemplary

after-sales support. General Director Paul Badea aims to boost the companyʼs annual revenues to around €20 million by 2020

through focussing on providing outstanding customer services and forming productive partnerships.

One of Badsi’s current service innovations is SmartoGo, a cutting-edge “smart” system which links any vehicle equipped with the SmartoGo dongle to the company’s centralised service centre in order to spot any problems with a vehicle before the customer is even aware of them. Paul Badea explains, “SmartoGo is connected to the vehicle’s on board diagnosis port and monitors

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such things as speed, RPM, air flow and other real-time data as well as pinpointing potential problems and letting the service centre know about them ahead of time. This way we can contact the client, pick up the car and provide a replacement vehicle, and repair the car as quickly as possible, to minimise any inconvenience for our customers as well as saving costs.”

Badsi has proved that in addition to developing innovative services, it is able to adapt to challenges and thrive.

Founded to handle imports and sales of Nissan vehicles in Romania, the family-owned enterprise flourished until Renault and Nissan formed a world wide alliance. Given Renault’s strong position in Romania due to the stake the French company had in the Romanian manufacturer, Dacia, the Nissan import operations was taken over by Renault.

Badsi managed to overcome this major setback but then had to cope with the effects of the global financial crisis.

Following the founder’s death in 2013, his children took over the business and turned it around by concentrating on Badsi’s core strengths. As Paul Badea puts it, “We managed to clean up our act and focus on what we did best: selling and servicing cars.”

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Sector Bucharest

2020 growth plan The Badsi Service Way growth plan for 2020 includes what Paul Badea calls a “bottom-up approach to development.”

He explains, “We realised that the more formal you get about developing processes, the more you distance yourself from what is actually happening. For example, an official service procedure that seems efficient on paper might take 35 minutes in reality, which is inconvenient for the client and costly for us. Now we are working on making all our processes as efficient as possible by talking to our employees who actually perform these operations to learn the best ways of doing them. Our mechanics know what they need, and we decided to get them directly involved in improving the company’s services.

Badsi’s 2020 growth strategy is to develop our know-how and give our people the opportunity to grow by implementing the know-how we develop in other automotive companies. We hope to develop a set of approaches and procedures that would be attractive for anyone in the industry.”

Paul Badea is also planning to outsource mechanical repair work on vehicles through a system in which a Badsi manager would oversee the work being done by a chosen service centre

to ensure that Badsi’s high quality standards were being met. Then the service centre could work with Badsi in the future, knowing that these standards would need to be maintained. Paul Badea says, “We want our clients to be satisfied with our partners’ service quality and we will develop business relationships with partners based on this service quality, not on discounts, special conditions or other criteria.”

Ideal Romanian auto-sector partner Badsi also wants to work with leading auto companies from outside Romania. Paul Badea explains, “We would like to partner with experienced professionals in the automotive market from countries near Romania, such as in Poland, Bulgaria or the Czech Republic.” For partners, Badsi offers a strong track record in being able to adapt to market changes as well as an innovative approach to management that involves a focus on knowledge and service. Paul Badea says, “Badsi knows how important it is to concentrate on knowledge and learning, and we have shown that we have a very strong team that is willing to change to meet new conditions. In these difficult economic times, these are strengths all companies need.”

Badsi also plans to develop new services, such as fleet management for enterprises.

Paul Badea says, “We are targeting SMEs with fleets of around 15 to 20 cars.

For such companies, it makes sense to outsource fleet management, and we can take care of everything, from insurance to technical inspections and regular servicing.”

Currently around 35% of Badsi’s revenues are from vehicle sales while the remainder are from services. “Badsi has managed to provide multi-brand car services,” Paul Badea points out. In the future, Badsi will expand its multibrand sales and continue to improve its services through implementing new technologies and establishing productive European partnerships. For European investors and companies looking for an innovative, dynamic auto-sector specialist in Romania, Badsi is a partner of choice.

Badsi-Nissan Soseaua Pipera 50A Sector 2, Bucharest, 020112 Tel.: +40 215 997 211 +40 215 997 220 www.badsi.ro

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MASTER ROMANIA REGIO

Ideal Base for Visiting Bucharest

Trianon Hotel Bucharest offers a wide range of three-star facilities and services for business and leisure travellers. The property is ideally located in the heart of the city near lovely Cismigiu Garden and Bucharestʼs picturesque Old Town, whose elegant architecture, lively nightlife, cultural attractions and many cafés and restaurants have earned Romaniaʼs capital the nickname “Little Paris”.

Near all the city’s top landmarks All the city’s top business, commercial, cultural and entertainment venues are near Trianon Hotel Bucharest, including the Romanian Parliament Palace, the Romanian Athenaeum, the Opera House, the National Military Circle, Manuc’s Inn, Admiral Vasile Urseanu Astronomical Observatory, Bucharest National Theatre, Kretzulescu Palace, CEC Palace, Cotroceni Palace and Herastrau Park. Henri Coanda Otopeni International Airport is just a 25-minute drive away.

A boutique property with 42 rooms and suites, the hotel has accommodations to suit all travellers’ needs and budgets: twin rooms, queen rooms, superior rooms and exceptionally spacious suites. Non-smoking rooms are available.

Every room and suite is elegantly decorated and equipped with individually controlled heating and air-conditioning, a telephone, cable TV, a private safe, a minibar and more.

Trip Advisor Traveller’s Choice Award Free WiFi Internet connections are available throughout the hotel and the reception desk is open 24/7 to respond to guests’ requests at any time. Trianon Hotel Bucharest has

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received the coveted Trip Advisor Traveller’s Choice Award for its facilities and services.

“Hotel Trianon is a superior three-star hotel, offering a four-star experience for a three star price” Guests can enjoy the Trianon Hotel Bucharest’s terrace which is a relaxation oasis and can be used for organising cocktail parties.

State-of-the-art conference facilities For executive travellers, the Trianon’s state-of-the-art conference rooms – Le Petit Trianon and Le Grand Trianon – can be booked individually or combined to accommodate up to 100 guests. Both conference rooms are equipped with the latest technologies, and catering services are available for banquets and other special events. The Trianon Hotel Bucharest regularly offers value-added special packages which add to this hotel’s appeal as a perfect base for visiting Romania’s beautiful capital city.

Trianon Hotel Bucharest Grigore Cobalcescu Street No.9, District 1, 010191, Bucharest Tel.: +40 21 311 4927 office@hoteltrianon.ro - www.hoteltrianon.ro

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Bucharest

Welcoming Boutique Hotel in the Heart of Bucharest Siqua

Hotel,

a

four-star,

family-owned property, offers a

comfortable, welcoming homeaway-from-home in the heart of Bucharest. Conveniently located

in a quiet area next to the Romanian National Opera and

near government offices, cultural and

entertainment

business

centres,

venues,

restaurants

and nightlife, Siqua Hotel is the ideal base for both business and leisure travellers.

“We focus on making our guests feel at home and comfortable here in Siqua Hotel,” explains Paolo Tocco, who owns and operates the hotel with his wife Alina.

The hotel has 40 beautifully decorated guestrooms; guests can choose from single, double or queen rooms or a junior suite. For business travellers, Siqua Hotel has two well-equipped conference rooms as well as a ballroom for special events. The hotel’s Siqua restaurant serves international cuisine and fine wines and seats 60 guests. Free WiFi Internet access is available throughout the hotel. Other amenities include carrental services, free parking, a 24-hour front desk, baggage storage, concierge services, laundry and dry-cleaning, business services and more.

Most of Siqua Hotel’s guests are executive travellers, and many of them are return visitors. Paolo Tocco says,

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“Siqua Hotel offers all the business facilities executives may need, but as a small boutique property, we also feature the kind of personalised services and human contact that larger hotels cannot provide.” Alina Tocco adds, “My husband and I built the hotel in 2006 and it is a labour of love. Our guests enjoy Siqua Hotel’s very welcoming atmosphere.”

Introduction to Romania’s rich cultural heritage Alina and Paolo Tocco continue to create special services for their guests, including concerts in a mini opera hall within the hotel as well as tastings of Romanian and Italian wines.

Alina Tocco points out, “We promote Romanian cultural events and we want more people to get to know Romania.

This is a beautiful country with very

warm people. Romania has excellent food and wine, a rich cultural heritage, unspoiled nature with salt lakes and mineral springs.”

Siqua Hotel is the perfect base for exploring Bucharest, with its ancient, colourful city centre. Paolo Tocco says, “Bucharest was once known as the Little Paris because of its historic buildings, excellent restaurants and fine wines. Visitors come here and are surprised by how beautiful and interesting the city is. Romania and Bucharest deserve to be better known among international travellers, and we are ready here at Siqua Hotel to welcome visitors to Romania.”

Siqua Hotel Calea Plevnei 59A, 010223 Bucharest Tel.: +40 21 319 5160 reservations@hotelsiqua.ro www.hotelsiqua.ro

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THE EUROPEAN TIMES

Europa

Royale

MASTER ROMANIA REGIO

Bucharest

Hotel

lies

on

Franceza Street, one of the oldest streets in Bucharest offering a variety of restaurants, cafés and bars. Settled in a 19th century

building, overlooking Unirii Square, the hotel

is just a step away from the government district,

most

important

historical

and

cultural attractions as well as shopping

streets, the financial district and downtown entertainment facilities.

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Enjoy your Work, Entertainment and Vacation While we Take Care of the Rest!

Centrally located, the four-star Europa Royale Bucharest hotel provides convenient access to the cultural heritage of Bucharest as well as the amazing Old Town nightlife.

Europa Royale Bucharest offers 92 tastefully decorated rooms, a restaurant with an international menu, two conference rooms, and all facilities for a very enjoyable and relaxing stay in the city centre. The modern rooms decorated in shades of green and brown offer cable TV, air conditioning and a mini bar. Each bathroom is equipped with a bathtub or a shower and provides a hairdryer and free toiletries.

The rooms on the 4th floor offer unique views of Unirii Square and Hanul lui Manuc building. The Unirii Metro Station is 50 metres away from the Europa Royale and the Northern Train Station is 4.5 km away. Transfers from and to Henri Coanda International Airport, (20 km away) are available upon request and at an additional cost.

The Old City Centre of Bucharest is the best choice for travellers interested in nightlife, friendly people and food.

Just book a room with us and we’ll take care of the rest!”

EUROPA ROYALE BUCHAREST HOTEL Franceza St. 60 - 030106, Bucharest, Sector 3 Tel.: +40 21 319 1798 - Fax: +40 37 237 6500 www.GroupEuropa.com

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MASTER ROMANIA REGIO

Luxurious Serviced Apartments in the Heart of Bucharest For

anyone

looking

for

world-class

short-term or long-term apartment rentals in Bucharest, Apart Homes is the right

choice. Apart Homes offers a large selection of fully serviced luxury accommodations –

from studios to three-bedroom apartments – all beautifully furnished, fully equipped and

classified four-star by Romaniaʼs Ministry of Tourism.

All Apart Homes’ apartments are ideally located in quiet, safe buildings in the city’s best neighbourhoods, within easy access of shops, restaurants, nightlife, public transport, business centres and entertainment venues.

General Manager Ana Pienescu explains, “Apart Homes, part of the Professional Realty group, is a 100% Romanian company operating according to the highest international standards and providing international services. This is why so many of our guests are return customers. We distinguish ourselves through our dedication and the quality of our services and apartments.” Apart Homes’ prestigious clientele includes diplomats, CEOs of leading international companies, representatives of international funding organisations, consultants from top Romanian enterprises and other customers seeking the best possible accommodations.

Apart Homes puts the focus on service. Guests can count on 24-hour check-in and check-out support, technical assistance around the clock, maid service twice a week on a flexible schedule, full concierge services, a mobile phone, airport pickups and drop-offs for guests staying four nights or more, and a free city tour of Bucharest for guests staying seven nights or more, as well as shopping and other personal services on request.

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“The customer above everything” With over 10 years of experience providing serviced apartments in central Bucharest, Apart Homes knows its business.

Ana Pienescu points out, “Our motto is ‘The customer above everything’ and our mission is customer satisfaction. We are committed to maintaining Apart Homes’ excellent reputation.”

The company encourages guests to provide feedback and prides itself on its courteous, prompt and efficient service at all times.

Looking to the future, Apart Homes aims to expand to other cities in Romania and is considering establishing a franchise partnership for an Apart Homes operation in Cluj.

Ana Pienescu explains, “Our priority at Apart Homes will always be to maintain the best services provided by topquality human resources. Apart Homes has earned a strong brand name and client base. We welcome any local or international partner who can continue to maintain our brand’s reputation.” To potential visitors to Romania, she adds, “Our apartments will help to make your stay away from home more pleasant, and our services will meet your highest expectations.”

Apart Homes George Valentin Bibescu Street 33 Sector 1, 013942 Bucharest Tel.: +40 21 232 0406, +40 745 010 202 office@accommodation.com.ro www.accommodation.com.ro

THE EUROPEAN TIMES

• Constanta’s Constant Regeneration for Investment and Tourism • Traffic Increasing at Port of Constanta • Constanta and its Beach Resorts Drawing Tourism Visitors

Constanta County

“Constanta County represents an area with a great potential for investors.”

Ion Constantin, Prefect of Constanta County

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ROMANIA

New Constanta County Prefect Notes Thriving Economic Sectors vate-sector entrepreneurs would be indirect beneficiaries of these efforts since they would also benefit from EU funding.

European Times: What are some of Constanta County’s key economic sectors?

Ion Constantin, the new Prefect of Constanta County,

has

been

involved

in

public

Ion Constantin: Constanta County has a thriving port, the biggest wind farm in Romania (an investment of over €1 billion), and a successful agricultural association created after Romania’s agricultural land was returned to individual farmers in 1989. Constanta County is also well known for its Petromidia oil refinery, which is the biggest refinery in Romania and one of the biggest in Eastern Europe. Petromidia’s refinery processes oil brought from outside Romania.

It definitely adds value to the local economy and accounts for 55% of the county’s GDP.

administration in Constanta since 2001,

European Times: What are some sectors with development potential?

as head of population records until he was

Ion Constantin: Tourism is one of the county’s growth sectors, particularly wellness tourism taking advantage of the many local natural spas with their mineral-rich mud.

While most tourism activity in Constanta County today is in the summer months, health tourism could draw visitors year-round. Therapeutic mud for Constanta County’s natural spas is even being exported, and very little of this mud has been exploited so far. The agriculture sector is also growing rapidly, with significant recent investment in wineries, some of them supported by EU funding.

Constanta County definitely has exceptional investment potential.

having held posts in public relations and

appointed by the government to serve as Prefect. He discusses his goals for Constanta County

as

well

as

the

investment opportunities.

countyʼs

many

European Times: What are your priorities as Prefect of Constanta County?

Ion Constantin: I have proposed a restructuring plan to the Ministry of the Interior. This plan focuses on reorganising all departments under the supervision of the Prefect in order to ensure stronger management, complete transparency, and better capacity to handle large projects. A second aspect of this restructuring would be to improve all services provided by government officials here in Constanta County to help make sure that elected officials operate according to the rule of law and effectively serve the population which has elected them. A third priority is to try to access EU funding to upgrade Constanta’s administration and its education sector.

The county is already an academic centre for Romania. Pri-

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European Times: What is your personal message to our readers?

Ion Constantin: Constanta County represents an area with a great potential for investors and we are in a continuous process of integration and adaptation of local legislation according to EU Directives. We invite potential investors to visit Romania and Constanta County and to get in touch with the representatives of the local administrations and the business environment in order to discover the advantages of investing in our area.

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Constanta County

Constanta’s Constant Regeneration for Investment and Tourism resort and the city by the enlargement and renewal of the road.

The aim is to consider and transform Constanta into a city that is close to a tourist resort and the same time close to the port, and to focus on an integrated development of both of Constanta’s maritime and tourist industries, together with the specific horizontal activities.

The historical part of the city is 90% regenerated, having the urban infrastructure restored. We are seeking structural funds, EU money and other investments to complete the 10% remaining.

Decebal

Fagadau,

Deputy

Mayor

of

In Mamaia resort, the promenade is a delight for tourists and locals: they are riding bicycles, jogging, having contests and other activities. During summer, people are walking on the main boulevard and taking pictures. Mamaia resort has become a very attractive tourist destination, and, unsurprisingly, was adjudged the most dynamic resort in Europe in Monte Carlo in 2013.

Constanta, debates regeneration, investment

European Times: What types of investment are you seeking to attract to Constanta?

environs.

Decebal Fagadau: We are seeking investment in energy. It could be structural funds, private investors or private-public partnerships (PPP). The city has urgent investment opportunities to build car parks - a sector with huge demand.

and tourism endeavours of the city and its

European Times: How are you regenerating Constanta and integrating the nearby resort of Mamaia?

Decebal Fagadau: We envisage development projects in Constanta as interrelated in three ways: Constanta for inhabitants, Constanta for tourists, Constanta for investors.

We have key development target areas for the city: an umbrella project to regenerate the historical part and the heart of the city; an upgrade of the city’s infrastructure and the promenade in Mamaia to improve access and links between the city and the resort and thus integrate Mamaia with the city; and to build a coastal road.

We are now regenerating the city centre of Constanta and upgrading the Mamaia resort, one of the most favourite tourist destinations in Romania. Among the important development interventions is the improvement of the access between the

With the Black Sea, the Danube River, Constanta Port as the biggest port on the Black Sea, airport, highways, railways, there are multi-transport investment opportunities in the area. This will create an important transportation hub for goods, passengers, tourists, etc. for Romania and Europe at large, together with Rotterdam.

There are also investment opportunities in industrial parks and the historical part of city.

European Times: What is your concluding message?

Decebal Fagadau: Constanta is a safe city from different perspectives: inhabitants’ security, tourists’ security and business environment security. It has the potential to become the Hong Kong of the Black Sea. It is a safe city with varied investment opportunities.

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MASTER ROMANIA REGIO

Traffic Increasing at Port of Constanta Constanta Port shipyard

Major container hub and distribution centre The Port of Constanta is one of the main distribution centres for Central and Eastern Europe and a hub for container traffic on the Black Sea. The port offers modern facilities and sufficient water depths to accommodate the largest vessels passing through the Suez Canal (including tankers with capacity up to 165,000 dwt and bulk carriers up to 220,000 dwt); advanced container services; efficient customs services; modern facilities for passenger vessels; a free zone; and available land for further expansion.

© Sebastiangh - Dreamstime.com

The Port of Constanta is not only Romaniaʼs busiest port but also the EUʼs most important port on the Black Sea. It is ideally located at the crossroads of shipping routes linking landlocked European

countries to the Trans Caucasus, Central Asia and the Far East.

It also enjoys streamlined connections to Central and Eastern Europe through EU Corridor IV (rail and road), Corridor VII (the

Danube inland waterway, via the Danube-Black Sea Canal), and the Corridor IX road connection to Bucharest.

The Port of Constanta has two satellite ports, Midia and Mangalia. Traffic at the three ports totalled over 23 million tonnes between January and May this year, a 20% increase over the same period in 2014. Around 17.3 million

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tonnes of this traffic was in maritime shipments while river traffic totalled 5.7 million tonnes. Maritime traffic at the ports rose 13% between January and May while river traffic saw an impressive 42% increase.

Valeriu Nicolae Ionescu, CEO of the Constanta Port Authority, explains that EU funds will be used to further upgrade the port, including creating specialised facilities to handle oil tankers and vessels with even deeper drafts. He says, “We welcome partnerships with investors who present good business plans.” One new investor is commodity trader Archer Daniels Midland (ADM). It has acquired North Star Shipping and Minmetal, which provides grain-handling and other services at the port. Joe Taets, president of ADM Europe Middle East and Africa, says, “We hope the acquisition will help us double our grain-business volumes and expand our presence in Europe.”

Dumitru Catana, Director-General of the Romanian Naval Authority (ANR), points out, “The Port of Constanta is a safe port with no problems, it meets EU standards, and we have greatly streamlined bureaucratic processes through a ‘Single Window’ system.” Captain Constantin Casiade, the Authority’s Director of European Affairs and International Relations, adds, “The Port of Constanta is a safe, well-run port in a very strategic location.”

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Constanta Sector County

World-Class Training in Maritime Specialities Ovidiu Sorin Cupsa, Vice President EDINNA

strates Romania’s focus on high standards in the maritime sector.

European Times: Why does Romania participate in EDINNA?

CERONAV (the Romanian Centre for Training and Professional

Development of Personnel in the Naval Sector) and EDINNA (Education in Inland Navigation) are helping Romania provide world-class human resources in the maritime and inland-waterways

sectors. Ovidiu Sorin Cupsa, General Manager of CERONAV and

Vice President of EDINNA, was formerly the General Manager of the Black Sea-Danube Channel Company. He discusses CERONAV and EDINNA and highlights their importance to Romaniaʼs economy.

European Times: What role does CERONAV play in the Romanian economy?

Ovidiu Sorin Cupsa: CERONAV celebrated its 39th birthday this year and has positioned itself as a centre of excellence in South-Eastern Europe. This stateowned organisation has consolidated its reputation as one of the most prestigious training centres in Europe and has shown consistency and ambition in initiating and developing large projects. CERONAV has

grown by 30% over the past three years alone and currently offers around 2,000 training, specialisation and qualification classes in around 80 different specialties for students and professionals in the sea, river, harbour and offshore industries.

Over 90% of the professionals trained

by CERONAV are working for foreign shipping companies. CERONAV participates in international meetings, partners with leading institutions in Europe and other countries, and aims to be a leader in research in its field. CERONAV demon-

Ovidiu Sorin Cupsa: CERONAV was a founding member of EDINNA, which was established in 2009. It is a pan-European association which aims to implement harmonised EU training standards in the European inlandwaterways sector. EDINNA brings together leading providers of education and training in Romania, France, Slovakia, Belgium, Germany, Holland, Italy, Austria, Poland, Ukraine, Serbia, Bulgaria, Croatia and Russia, as well as associate members from Slovenia, Congo and Egypt. Romania’s participation in EDINNA illustrates our commitment to adhering to EU criteria in inland-waterways transport as in all other sectors of the economy.

European Times: Why should international students and professionals come to Romania for training at CERONAV? Ovidiu Sorin Cupsa: Many foreign students and professionals come to Romania for training because their home countries to not offer training like CERONAV’s certification programmes for specialised martime fields.

CERONAV has attracted students from all over the world, including Europe and the US. CERONAV offers an integrated programme which includes accommodations, and this is very appealing for the international market. We will continue to invest in CERONAV to maintain the highest-quality training.

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MASTER ROMANIA REGIO

Constanta and its Beach Resorts Drawing Tourism Visitors Constanta

Constanta, Romaniaʼs thriving port on the Black Sea, is much more than an important logistics and shipping hub. The city has a 2,500-year history stretching back to the days when Constanta was a Greek settlement called Tomis and, according to legend, Jason and the Argonauts landed here after finding the Golden Fleece.

Constanta is filled with architectural landmarks from past centuries.

The city was founded by Greek colonists in the 6th century BC and conquered by Romans in 71 BC, when it was renamed Constantiana by Constantine the Great in honour of his sister. The name was shortened to Constanta during the Ottoman era. Constanta was a major trade centre in the 13th century before declining under Turkish rule. In the 19th century, Romania’s King Carol I regenerated Constanta as a port and seaside resort. Today, Constanta is the fourth-largest port in Europe as well as the third-largest city in Romania.

Thanks to the city’s historic monuments, casino, museums, shops, restaurants, nightlife and beaches on the Black Sea, Constanta has become a major tourism destination. In addition to its own appeal, Constanta is an excellent base for touring nearby attractions, from ancient churches and mosques to traditional villages, vineyards, the Danube Delta and Romania’s top seaside resorts.

Golden-sand beaches and all kinds of attractions In fact, beach resorts are scattered all along Romania’s sunny Black Sea coast from Constanta to the Bulgarian border. They offer something for everyone, from theme parks to spas. The sea in this area has no dangerous currents and almost no tides, and is very children-friendly

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thanks to a sea bottom that gently slopes away from shore.

Local resorts are named for gods and goddesses from mythology, including Eforie, Jupiter, Neptun, Olimp, Saturn, Venus and Mangalia.

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Constanta County

MALIBU M A M A I A

-

R O M A N I A

World-Class Developments in Lively Mamaia

Hotel Malibu

Hotel Oxford

Summerland Apartments

Stop SRL has brought world-class tourism and residential developments to Mamaia, Romania’s trendy, nightlife-oriented Black Sea resort.

Developer Costel Zelca, who founded Stop SRL, explains, “My projects are Hotel Oxford, which opened in 2004; the four-star Hotel Malibu in Mamaia, which opened in 2006 with 160 rooms and 28 apartments; and Summerland Apartments in Mamaia Nord, which includes around 1,000 apartments, 400 of them apart-hotel serviced apart-

ments. We are currently completing 280 Summerland Apartments.” Stop SRL’s next project will be an 800-room all-inclusive resort hotel on the coast between Mamaia and Navodari.

apartments in Mamaia can take advantage of the area’s growing popularity.

Hotel Malibu Blv. Mamaia No.316, Mamaia, Constanta Reception Tel.: + 40 241 831 404 Reservations Tel.: + 40 241 485 836 rezervari@hotelmalibu.ro www.hotelmalibu.ro

1

Mamaia is becoming known worldwide as a beautiful, lively beach resort, and Stop SRL’s developments offer a wide choice of accommodations for travellers. Visitors can choose a luxurious hotel room or suite, or stay in a fully equipped apartment complete with kitchen facilities. Investors in

Costel Zelca welcomes contacts with potential partners. He says, “Thanks to Stop SRL’s experience as both a developer and an operator in the hospitality sector in Mamaia, we can offer significant advantages for our partners.

Stop SRL has well-developed infrastructure in the area along with skilled workers and local knowledge. Come to Mamaia, enjoy our hospitality, and work with us.”

Hotel Oxford Blv. A. Lapusneanu No. 202 A, Mamaia, Constanta Tel: +40 241 606 510 rezervari@hoteloxford.ro office@hoteloxford.ro www.hoteloxford.ro

Summerland Apartments Reception at Hotel Oxford Blv. A. Lapusneanu No. 202 A, Mamaia, Constanta Tel. for rent: +40 720 800 770 Tel. for sales: + 40 730 070 020 contact@mamaia-summerland.ro www.mamaia-summerland.ro

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ROMANIA

• In Support of Local Government • Capitalising on the Strengths of Romania’s Third Largest City • Timis County: Business and Cultural Crossroads

Timis County

“Timis County is attractive in both its material and human potential.”

Titu Bojin, President of Timis County Council

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MASTER REGIO

THE EUROPEAN TIMES

Timis County

Reaching for the Top: A County on the Rise

Titu Bojin, President of Timis County Council, discusses

his vision for positioning the county as a gateway to the region.

1

European Times: What are your priorities as president of the council?

European Times: What specifically is bringing investment to the County?

Titu Bojin: I made a special commitment to support and develop all the services and facilities related to health, education and infrastructure, which I always considered to be vulnerable. We have to bring all that up to an acceptable level. But in Timis County Council, I believe that we have one of the best teams of specialists in Romania and I’m confident we’ll bring the county up to the top level in the areas where it’s not already on top.

Titu Bojin: Timis County is attractive in both its material and human potential. There is a very well established education system with universities rated highly nationally and internationally.

European Times: What can an investor expect from Timis County?

Titu Bojin: Timis County has a great location at the western border of Romania and may be considered as an entry point from Romania into Central and Western Europe, and also as a gateway from Central and Western Europe into Romania and further East. It also benefits from the fact that it has borders with Hungary, a member of the EU, and Serbia, a candidate for EU accession. We have created opportunities for direct support to potential investors. In this context, there is a series of facilities and advantages that each local administrative unit may offer and this is why in terms of the number of companies active in the county, and the number of investors present here, our county ranks highly in countrywide ratings.

“We have created opportunities for direct support to potential investors.”

European Times: What are the main projects currently in the pipeline?

Titu Bojin: There are several large projects underway. We have almost completed the €50 million Timis County Waste Management System project. In terms of transport infrastructure, we are in the process of getting approvals for building the intermodal freight centre in the area of Timisoara Airport and Remetea Mare. We are also looking forward to the commencement of works on the Timisoara – Belgrade highway, which shall be approved in the transport master plan of Romania.

From the socio-economic development perspective, there is the project for the €11 million rehabilitation of the obstetrics and gynaecology outpatient department in the municipal hospital.

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THE EUROPEAN TIMES

ROMANIA

In Support of Local Government public safety, public health and education. For example, in the education field, our greatest concern is to align curricula and educational content with the demands of the labour market.

European Times: What are you doing to improve the local business environment?

Eugen Dogariu: We have monthly meetings with representatives of the business community. Currently, there are three business associations for foreign investors, the German, Italian, and French. We also have the chamber of commerce, which promotes investment and the needs of the business community.

Eugen Dogariu, Prefect of Timis County,

talks to the European Times about his role in

overseeing and supporting local government structures and the challenges of providing more efficient and transparent services for local residents.

European Times: What is your role in the running of local government?

Eugen Dogariu: As a prefect and a representative of the Prime Minister and the government in Timis county, we have to ensure that the regulations introduced by the local authorities are legal. Secondly, we are trying to create a better environment for citizens and a better relationship between institutions and citizens. We are trying to be as efficient as possible in all the situations where the state has to intervene. These are our main concerns. But we also have responsibilities regarding

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European Times: To what extent is Timis County connected to international markets?

Eugen Dogariu: Timis has everything that the investor needs. We have good infrastructure, we have an international airport, and a good railway hub. We are close to Serbia and Hungary. There are five crossings on the border with Serbia; three of them were opened in November 2014. This year, we will have a national highway that goes from the north to the east through Timis County, creating access to Timisoara from Europe.

European Times: What would you say to those who believe corruption is a problem in Romania?

Eugen Dogariu: We are trying to be as open and transparent as we can. We are trying to reduce bureaucracy by creating a direct link between institutions and citizens. For example, in some institutions, we have implemented systems that allow citizens to complete a procedure without having to deal with officials. They can do it while sitting at home simply by using the Internet.

We realise that we have to reduce bureaucracy and be as transparent as possible. In that way, we will reduce corruption.

THE EUROPEAN TIMES

Timis County

Capitalising on the Strengths of Romania’s Third Largest City Nicolae Robu, the mayor of Timisoara, says his city has much to offer foreign investors from a

well-educated labour force to strong transport

connections. He discusses his plans to beautify the city, improve its aging infrastructure and increase investment.

European Times: What are the main targets of your term in office?

Nicolae Robu: My primary objective is to modernise the city’s infrastructure and accelerate economic development.

We are trying to make our city more beautiful through a number of projects including the pedestrianisation of our historical city centre by next year and the beautification of the Bega River embankment. Timisoara is the third most populous city in Romania; however, its urban infrastructure has been neglected. We are trying to be attractive to investors by ensuring the physical and technological infrastructure is in place and are implementing more than 26 EU projects in this regard. At the same time, we are improving the bureaucratic processes and the regulatory framework. This includes tax incentives for investors who bring in capital and generate employment in the city.

European Times: What are the other competitive advantages of the city for investors?

Nicolae Robu: Timisoara has excellent human capital potential. The city is a strong academic centre with four state universities and two private. It has about 50,000 students,

many with post-graduate qualifications. At the same time, labour costs are highly competitive given the level of educational attainment of the workforce. Secondly, the municipality ensures locations with access to utilities for both industrial and hi-tech customers. Finally, Timisoara is very well located with good connectivity through extensive road and air networks.

European Times: What are the main investments thus far? And how were they achieved?

Nicolae Robu: The most important investments have been in the ITC and automotive sectors. We have had significant capital investments from companies like Alcatel Lucent, Continental Automotive, Continental Rubber, Flextronics, Dräxlmaier Group, Cromber and Schubert, TRW, and Kathrein in IT. It is important to add that the municipality created a business centre and business incubator for these sectors using EU funds. For the IT sector, there is the capacity for 56 new companies. In the automotive sector, we have a centre of competence, which offers two laboratories and a high technology workshop for training and for use in micro-production. This technology is used and shared by a number of tenants.

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THE EUROPEAN TIMES

ROMANIA

Union Square, Timisoara

Timis County: Business and Cultural Crossroads Timis County, strategically located in western

Romania on the Serbian and Hungarian borders, is the biggest province in the country and its capital, Timisoara, is one of Romaniaʼs

most

economically

developed

urban areas. Timis County has attracted

significant international investment. In fact, a recent study by Forbes Romania ranks

Timisoara Romaniaʼs second-most-attractive city for FDI after Bucharest.

One reason investors target the county is its logistics advantages. Timis has an international airport and is crossed by two main European transport routes, the E70 connecting Serbia and Bucharest and the E671, which bisects the county from north to south and offers streamlined connections to Hungary and other Central European markets. Timis County also has a well-trained workforce, a very businessfriendly administration, and a diverse and inclusive culture.

Strategic location, multilingual skilled workers One satisfied foreign investor in Timis County is Continental Automotive. The company’s Managing Director, Christian von Albrichsfeld, explains, “Almost 15 years ago, when Continental Corporation decided to invest in Romania, it decided

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upon Timisoara as its first location for several reasons: the highly trained human resources due to the Polytechnic University based in Timisoara, the openness of the people, the fact that they speak English or German, transparent communication with the local authorities, and the small distance to the western border.”

Existing investors are expanding their production capacities while newcomers continue to enter the market. Meanwhile, Timis County’s agricultural and food-processing sectors are also on a growth curve.

Trade and cultural hub for centuries Turks, Austrians, Germans and Serbs have all left their mark on Timisoara, giving this picturesque city on the Bega River its unique architectural character and vibrant cultural life. Today, Timisoara is home to yearround musical and theatrical performances, art galleries, museums and lively nightlife. The city has a mild climate, many parks and gardens, and a charming pedestrians-only downtown area.

Visitors to Romania can use Timisoara as a base for exploring nearby wine regions; the historic towns of Arad, Lugoj, Densus, Colti, Hunedoara and others; Orastie’s Sarmizegetusa Fortress from the Dacian era, a UNESCO World Heritage Site; Retezat National Park with its mountains and many hiking trails; and Herculane Spa, one of oldest thermal spas in the world. Timis County has much to offer investors and visitors.

THE EUROPEAN TIMES

• Mayor of Cluj-Napoca Highlights City’s Multicultural European Character • Cluj County: An Attractive Place to Invest In • Cluj County: Romania’s Silicon Valley and Much More

Cluj County

“Cluj-Napoca offers a very flexible tax policy, state-of-the-art industrial parks, universities ready to work with the business sector, a multicultural environment and many investment incentives.”

Emil Boc, Mayor of Cluj-Napoca

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THE EUROPEAN TIMES

ROMANIA

Mayor of Cluj-Napoca Highlights City’s Multicultural European Character its standing as the European Youth Capital in 2015 and to prepare the city to be named the European Capital of Culture in 2021. I am a true believer in European values.

Romania is a European country and my city is a model of a European city.

European Times: Can you describe some of the city’s current development projects?

Emil Boc: The municipality strategy for 2014-2020 is to enhance the Cluj-Napoca brand name and to position the city as an innovation centre for ICT. Cluj-Napoca aims at being known as the Silicon Valley of Romania. One major development project will be to build a city-within-the-city on 202 hectares of land. This project will create around 20,000 jobs and could be home to 100,000 people. The second component of my mission as mayor is to improve the city’s quality of life even more. Cluj-Napoca has the most modern sports arena in the country. We are also upgrading the city’s road infrastructure, including building a new road to the Hungarian border.

European Times: Why should European investors choose Cluj-Napoca?

Emil Boc, former Prime Minister of Romania

and third time Mayor of Cluj-Napoca, describes the progress Cluj-Napoca has made over the past decade. He also emphasises the cityʼs exceptional investment appeal.

European Times: How has Cluj-Napoca changed during your tenure as mayor?

Emil Boc: We developed a new image, mission and vision for the city in 2004 and now Cluj-Napoca is a modern, multicultural city with a European mentality and a democratic framework where many different groups live together in harmony. My personal goals for Cluj-Napoca are to retain

72

Emil Boc: My model of economic development is to create jobs and opportunities. This means attracting investors. In order to encourage investors to choose our city, Cluj-Napoca offers a very flexible tax policy, state-of-the-art industrial parks with special tax advantages, universities ready to work with the business sector, over 100,000 students providing skilled human resources, an international airport, a strategic location, a multicultural environment and many investment incentives.

European Times: What is your personal message to European investors?

Emil Boc: Cluj-Napoca is ripe for investment now because it has competitive advantages, particularly a skilled workforce at low costs, modern infrastructure and an international airport, a European mentality, excellent quality of life and a pro-business environment. I invite potential investors to visit Cluj-Napoca and see for themselves everything this city can offer them.

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MASTER REGIO

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Cluj County

Cluj County: An Attractive Place to Invest In Gheorghe Ioan Vuşcan, Prefect of Cluj County, Representative of the Government at the local level.

With over 30 years of experience as a professor at the Technical University in Cluj-Napoca, and two terms as a local councillor of Cluj-Napoca Municipality, Gheorghe Ioan Vuşcan is Prefect of Cluj County, the representative of the government at the local level.

Appointed Prefect over three years ago by Romania’s Prime Minister, he oversees the legality and public order at the local level, manages the decentralised public services of ministries and other central bodies in the territorialadministrative units, basing his activity on the principles of legality, transparency and citizen-oriented services. In the interview he kindly gave to our publication, he mentioned the investment potential of Cluj County, the advantages offered to foreign investors, as well as local thriving economic sectors.

European Times: What makes Cluj-Napoca special among Romanian cities?

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Gheorghe Ioan Vuscan: ClujNapoca is Romania’s third-biggest urban area after Bucharest and Iasi, and is one of the oldest cultural and university centres in Transylvania, with over 100,000 Romanian and foreign students at 11 universities, six public and five private. Cluj-Napoca takes pride in being acknowledged as a multicultural city, awarded with the title of European Youth Capital in 2015, and currently aspiring for the title of European Cultural Capital in 2021.

The presence of these universities represents an important competitive advantage for Cluj County: a very skilled labour force, as well as exceptional expertise in cutting-edge fields, particularly the ICT sector. Known as the Silicon Valley of Romania, Cluj is the most important national ICT centre, the sector with the most impressive dynamic in the last years, ICT companies enjoying an attractive tax advantage: salary tax exemption for those who participate in software creation.

Other sectors which are performing very well at county level include machinebuilding and industrial engineering.

Local agriculture is another promising sector, considering the county’s fertile soil and extensive land in rural areas.

The sector, however, requires investments in modern machinery and technologies in order to become competitive.

European Times: Why should international investors choose Cluj County?

Gheorghe Ioan Vuscan: In addition to skilled labour, Cluj County offers

a modern business infrastructure for potential investors: industrial parks, extensive surfaces for investment projects, production and office spaces, as well as logistics.

Cluj County, like Romania in general, needs foreign capital for foreground investment projects, and provides a positive business climate, fiscal incentives as well as many high-potential opportunities in several sectors. We welcome investors from the Community Area, the more so as Romania, an EU member state, enjoys all the benefits and advantages resulting from this.

Moreover, we, the Transylvanians, are known for being hard-working, reliable and efficient.

European Times: What kinds of investments are you particularly looking for?

Gheorghe Ioan Vuscan: Cluj County needs major investments in energy, transport infrastructure, including the railway network, manufacturing, food processing and also agriculture.

European Times: What is your personal message to potential European investors and partners?

Gheorghe Ioan Vuscan: For a successful business venture, it is not enough to have financial capital and resources; one must rely on skilled human capital.

Here in Cluj-Napoca, we have the highquality human resources which investors need in order to ensure that their investments will thrive. People represent the strength of Cluj!

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Cluj County: Romania’s Silicon Valley and Much More Cluj Arena

ranked Cluj-Naponica among the top 31 destinations in the world for investments in ICT, highlighting the city’s highly trained and multilingual ICT professionals, convenient geographic location and low costs. Around 1,500 ICT specialists graduate each year from the city’s Technical University and Babes-Bolyai University. As the KPMG study points out, more than 5,000 software engineers work in over 100 companies in Cluj-Naponica to deliver customised software development, business-process-outsourcing and IT services.

Cluj County, the heart of historic Transylvania, has grown to become a dynamic European

In the business-process-outsourcing segment, for example, Romania has a strong competitive edge since it operates according to EU standards and has a well-educated population fluent in many languages, yet its labour costs are less than half those in Western Europe. While most BPO investments in Romania are in Bucharest at present, Cluj County is attracting more and more BPO projects because of its vast pool of skilled workers and costs even lower than in Romania’s capital.

second-largest city after Bucharest. With 11

The county’s other fast-growing sectors include financial services, agriculture and food processing, wood processing, glass production, pharmaceuticals and cosmetics, machine building, industrial engineering, textiles, mining, natural gas, logistics and tourism.

all over the world, and it is also a major cultural

Outstanding investment attractions

City Council recently voted to invest €15 million

Cluj-Naponica succeeds in its bid to be named a

For investors in all sectors, Cluj County has significant advantages. These include skilled, multilingual workers; extensive building land; cutting-edge industrial parks; a strategic location; and rapidly improving transport infrastructure.

The county continues to build new facilities for business and industry. In 2014, construction began on a new industrial park, Tetarom IV, in Feleacu.

The government of Cluj County as well as the municipal government of Cluj-Naponica are very business friendly and welcome FDI. Cluj County has efficiently employed EU structural funds to upgrade its infrastructure and business environment and has already attracted significant foreign and local investment.

Bosch opens €70 million factory in Cluj County

hub for business and investment. Its capital is

cosmopolitan

Cluj-Naponica,

Romaniaʼs

universities, Cluj-Naponica attracts students from centre for Romania. In fact, the Cluj-Naponica of the cityʼs budget in new cultural projects if European Cultural Capital in 2021.

In the ICT sector, for example, Cluj County is known as Romania’s Silicon Valley. KPMG Advisory Services recently

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Multinationals which have already targeted Cluj County include Bosch, which in 2013 chose Cluj as the site of its first research and development centre in Romania. Bosch recently reinvested in the county by opening a new €70

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Cluj Sector County

Major upgrades to Avram Iancu International

Avram Ianca Square

million factory in the Tetarom III Industrial Park in Jucu.

The venture received €25 million in support from the Romanian government.

At the opening ceremony for the new factory, Romanian Prime Minister Victor Ponta commented, “The Bosch investment is highly important, reflecting the company’s trust in Romania. I am glad that the Romanian Finance Ministry has approved a state-aid arrangement, and I think Romania’s contribution to this new factory is the best investment the Romanian government can make. I am convinced Bosch is in Romania to stay, to continue investing and expanding.” The Prime Minister also noted that the Bosch project and other international investment in Romania, including by Daimler, Siemens and Deutsche Bank, demonstrate that Romania is an attractive choice for EU companies expanding into Eastern Europe and other markets.

To enhance its competitiveness as an investment target and business base, Cluj County is investing extensively in upgrading its infrastructure, including at Cluj Avram Iancu International Airport, which handled over one million passengers in 2014. In November 2014, the airport’s General Manager, David Ciceo, reported, “This is the best year in the airport’s history. The investments and the efforts made by the Cluj County Council and by the airport in recent years are paying off, and this is the second year in which the airport has made a profit. We have consolidated our position as Romania’s second-largest airport after Bucharest.”

The airport’s runway was recently extended to 2,100 m and will be further extended to 3,500 m, which will allow for inter-continental flights to destinations like New York and Montreal. The airport already has two new terminals which meet international standards and offers flights to around 20 destinations via Lufthansa and Wizz Air.

Intermodal logistics hub Developing the airport is part of the county’s ambitious intermodal logistics initiative, funded in part by the EU, which aims to position Cluj as a leading regional transport and logistics hub. Cluj has a very strategic location linking East and West and is crossed by the European transport corridor connecting Bucharest, Budapest and Vienna. The intermodal project, budgeted at around €70 million, focuses on additional upgrades of Cluj County’s airport, road

Cluj

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Sector

Leading Supplier of Abrasives Looking to Boost Exports Carbochim, founded in 1949 and privatised in

1999, has been in business in Cluj for almost 70 years and continues to be a leader in Romaniaʼs industrial sector. The company has implemented

the latest international equipment and technologies Cluj

and is certified ISO 9001/2008 and 14000/2004.

and railway infrastructure as well as streamlining the links between these transport systems. Cluj-Naponica already has efficient road connections to Bucharest, around 270 km south, via the Transylvania Highway.

While improving its transport infrastructure to support business activities, Cluj County is enhancing quality of life for its residents. A current project will modernise and expand the county’s water and wastewater systems in Grigorescu, Cluj-Napoca and in Dej, Dezmir, Sannicoara and Apahida.

Cluj County, the gateway to the beautiful Carpathian mountains, also offers outstanding tourism appeal. The county covers 6,600 sq km and around one-third of this is mountains, including the Apuseni mountain range with peaks up to 1,800 m. Top tourism sites in Cluj include many mountain caves; historic towns like Turda, which has a famed salt mine, as well as Dej, Gherla and Ciucea; Baisoara winter resort; and Belis and Tarnita lakes.

Cluj County will continue to roll out the red carpet for investors and tourism visitors. As Gheorghe Ioan Vuscan, Prefect of Cluj County, puts it, “We want European investors to know that Cluj County and Romania in general welcome investors. FDI in Cluj County is a win-win situation for both investors and the county. Here in Cluj, we offer exceptional human capital and many other advantages, and foreign investors can trust us to support them.”

General Director Viorel Popoviciu says, “We offer a full range of abrasive products, including vitrified-bonded, bakelite-bonded, cut-off wheels, magnesite and elastic-bonded grinding wheels and coated abrasive. We have a strong distribution network in Romania and we also export our products to Hungary, Germany, Israel, Italy and Poland. We offer great quality products at very good prices and with a delivery time of about 30 days.” Carbochim is currently working to expand its presence in Europe and to enter new EU markets.

Carbochim’s products have applications in many industries, including the furniture industry, automotive, metallurgical and bearings sectors. Preparing for continued strong growth, the company plans to invest around €10 million in a new factory on the road from Cluj to Turda. Viorel Popoviciu says, “We are open to joint ventures. Carbochim offers the latest technologies, a strong market position with a 25% share of the Romanian market and growing exports, well-trained employees, and a strategic location in Cluj, with industrial parks and Romania’s top universities.”

Carbochim SA P-ta 1 Mai No. 3, 400458 Cluj-Napoca Tel.:+40 264 437 005, +40 264 437 008 sales@carbochim.ro, www.carbochim.ro

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Cluj County

First Five-Star Hotel in Cluj-Napoca The Opera Plaza Hotel, the first five-star hotel in Cluj-Napoca, offers the high-quality facilities and services that international travellers are looking for. Launched by Octavian Buzoianu, a

leader in Romaniaʼs transition to a market-based

economy, the hotel was created to respond to growing demand for international-standard hotel

services in one of Romaniaʼs fastest-growing business centres. Today Octavianʼs son, Vlad Buzoianu, is managing the Hotel.

Octavian Buzoianu explains, “I helped issue the first shares for a private company in Romania with the Ursus beer enterprise.

I have also helped bring Nokia and other companies to Cluj.

My brother and I saw the need for a high class hotel in ClujNapoca, and in 2004 we transformed a former sweets-manufacturing facility into a top-quality hotel.” The Opera Plaza is ideally located in Cluj-Napoca’s historic city centre, just 200 m from the Romanian Opera House and other cultural sites, and only two km from the city’s main train station and eight km from the international airport.

The hotel’s 65 rooms and suites are equipped with the latest amenities. Designed to serve the needs of business travellers, the Opera Plaza Hotel has three state-of-the-art conference rooms seating up to 300 people as well as a gourmet restaurant which is the perfect venue for hosting events for up to 300 guests. The restaurant specialises in local and international dishes and has an extensive wine list.

High class amenities and meeting facilities Guests at the hotel can relax in the indoor swimming pool, work out in the hotel’s fitness centre, or have a sauna or massage. Most of all, guests at the Opera Plaza Hotel can count on exceptional service. Octavian Buzoianu points out, “We have a very dedicated team of employees, most of whom have been with us since the beginning. We launched premium hotel services in Cluj-Napoca seven years ago when we opened. We focus on serving executive travellers.” Cluj-Napoca is increasingly becoming Romania’s IT hub. It is important for Vlad Buzoianu, the new General Manager, to accommodate this trend. He states “We steadily innovate and

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improve the quality of our service. Our hotel is truly a home away from home.”

As Cluj-Napoca continues to develop its private sector, the Opera Plaza Hotel will continue to adapt to market demands and focus on service. To potential visitors, Vlad Buzoianu says, “The Opera Plaza is more than a hotel. It is a traditional Cluj family business.

Our mission is to provide honest, friendly and professional services for the business or leisure traveller.”

When asked what their plans are for the future in order to remain the trend setter for the Cluj Hotel Market, Vlad Buzoianu replied: “We don’t want to be a trend setter. We want to be ourselves. That is how we’ve set the trend so far. It’s all about authenticity.”

Opera Plaza Hotel Strada General Traian Mosoiu No. 10-12 400132 Cluj-Napoca Tel.: +40 364 403 600 office@operaplaza.ro, www.operaplaza.ro

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• Mayor of Arad Outlines City’s Investment Appeal • Arad County: Ideal Business Base • Arad: A Taste of Romania’s Cultural Heritage

Arad County

“Arad County welcomes foreign investors and offers a fair, open business environment as well as highly qualified human resources.”

Nicolae Iotcu, President of the Arad County Council

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MASTER REGIO Arad County

Arad County: Strategically Located Business Base to attract more tourists to taste our good wines and enjoy our beautiful landscapes.

European Times: Which sectors are particularly promising for investors?

Nicolae Iotcu, President of the Arad County Council, discusses the investment appeal of the strategically located county. He also

outlines opportunities in key economic sectors, from logistics to agriculture.

European Times: What are the Arad County Council’s current priorities?

Nicolae Iotcu: We are completing several investment projects financed by our own funds and by €200 million in EU support. Most of these concern road infrastructure, but we are also completing a €114 million water and sewage infrastructure project which should be finished in 2015, several projects concerning healthcare and environmental protection, and a €35 million waste-management initiative. In the healthcare sector, we are looking for public-private partnerships.

European Times: Why should investors target Arad County?

Nicolae Iotcu: Arad County enjoys a strategic location on Romania’s western

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border at the crossroads of road and rail Pan-European transport corridor 4. It is less than 300 km from Budapest and set between Rotterdam and Constanta ports, making it an ideal base for logistics companies. The county has an international airport with a cargo terminal which we are modernising. In fact, we are seeking international partners for this project through concession or lease agreements, or a partnership with an organisation that would come with a full business model, facilities and services to run the airport. Arad County welcomes foreign investors and offers a fair, open business environment as well as highly qualified human resources, particularly in the wine industry; wine has been produced here since 1038. The Arad County’s vineyard, Minis-Maderat, has recently been the beneficiary of a Wine Road project, improving its infrastructure and aiming

Nicolae Iotcu: Arad County has a thriving automotive sector and successful heavy industry, including the production of railway carriages for export. We will soon be producing tramway cars in a contract with Siemens as well as cars for the Bucharest metro system. Our textiles industry is also successful. Arad County has attracted significant foreign investment in these and other sectors. The county’s free-trade zone, which employs around 7,000 people, serves as a European gateway, with its two locations: one neighbouring the Arad International Airport and the other one in Curtici, our railway customs point with Hungary. My goal is to attract investors and international partners to help us develop a logistics park which will position Arad County as a logistics hub. Arad County also needs investors in projects able to add value to our agricultural products, in order to export processed agriculture products rather than raw agriculture materials.

European Times: What is your personal message to potential private investors and EU funding organisations?

Nicolae Iotcu: We encourage and support the presence of the investors in the Arad County, Romania; everyone will be benefitting if the EU continues to provide funds to Arad County. With the right support, the county will become even more effective and deliver even better services. Arad County welcomes international partners and investors.

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Mayor of Arad Outlines City’s Investment Appeal attracted more funding per capita than any other city in Romania, which says it all.

European Times: What are some of the city’s current projects?

Gheorghe Falca, Mayor of Arad, discusses the

Gheorghe Falca: One key initiative is a joint project with Timisoara in which we focus on the two cities’ complementary industries with the support of both cities’ universities. Arad and Timisoara are only 35 km apart and are connected by a motorway. The two cities combined are Romania’s biggest urban area after Bucharest. We are also exploiting Arad’s location as a logistics hub on European road and rail transport corridors connecting Constanta and Rotterdam. Our current projects include massive water and sewerage infrastructure development supported by the World Bank and the EU. We are also reducing our carbon emissions and developing an energy-efficient tramway system with EBRD support. In addition, Arad is the first city in Romania to attract EU funds for bike trails. We are also improving our educational system and restoring our historic landmarks, including Trajan Bridge, which dates back to the Hapsburg Empire.

historic cityʼs rapid economic growth over the

European Times: What are your goals for Arad’s future?

international companies and investors.

Gheorghe Falca: In addition to continuing our projects on energy efficiency and the Arad-Timisoara initiative, we want to develop more industrial zones and to rehabilitate the city’s historic fortress for tourism. We also want to continue to improve Arad’s national and international connections, which will include a high-speed railway connecting Arad to Curtici, Bucharest and Constanta by 2020. Arad is already Romania’s third-biggest source of exports.

past decade. He also cites opportunities for

European Times: How has Arad’s economy evolved over the past 10 years?

Gheorghe Falca: We have been focusing on job creation and economic development since 2004, and we have doubled the number of jobs in the city to reach 68,000.

We have created industrial zones and hosted international exhibitions to stimulate additional investment, and Arad has attracted international investors in many sectors. Arad has a long history of successful heavy industry which we continue to support, including the production of railway and tram cars for export. The city also has dynamic furniture, textiles and automotive companies. Arad has

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European Times: What is your personal message to EU funding organisations and investors?

Gheorghe Falca: Arad is a high-potential base for economic activities in many sectors and we welcome EU funders and investors to come here and work with us.

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Arad County

Arad © Tupungato-Dreamstime.com

Arad County: Ideal Business Base Arad County has positioned itself as a very attractive business base and investment target.

Strategically located in western Romania at the crossroads of pan-European road and rail transport corridors, it is also around halfway between Romaniaʼs Constanta port and Rotterdam, making it a natural logistics hub.

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To make the most of this advantage, Arad’s government is upgrading the county’s transport infrastructure. A new motorway link to Nadlac will be completed this year, and various improvements are underway at Arad International Airport, whose cargo terminal is the largest facility of its kind in western Romania. The airport is directly connected to the A1 motorway (part of EU Corridor IV) and to one of Arad’s free zones. Another of the county’s free zones is in Curtici, on Romania’s Hungarian border.

products daily to stores throughout Romania, sells its meat and dairy products in Hungary, and exports its cereals and seeds to European markets. Dimitrie Musca says, “We guarantee the high quality of every product we sell.”

Many sectors have strong growth potential in Arad County, from winemaking to automotive manufacturing, food processing, heavy industry, textiles, logistics, energy and more. The agriculture and food sectors, for example, are expanding rapidly and local companies are ready to work with EU partners.

Darimex, a wholly private owned family company, incorporated on April 12, 1939 and present in Romania since 1964, produces first class natural sausage casings in their own selecting plant and distributes artificial sausage casings and animal by-products as well as flavours, spices and additives for the food industry.

Agricultural enterprise a benchmark in food products Combinatul Agroindustriala Curtici (CAC), based in Arad, is a benchmark for high-quality food products. With over 5,000 hectares, the company operates a pig farm, a dairy, a slaughterhouse, and meat and dairy cattle farms. Dimitrie Musca, Director General, explains, “We employ the most advanced technological processes and we produce 480 tonnes of meat per month.”

CAC offers around 90 meat products, 35 dairy products and 20 cereal products. The company delivers its

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DARIMEX Darimex expanding rapidly

Darimex is a long-time partner of Smithfield and the Campofrio Food Group to whom the company supplies animal by-products and high-quality natural sausage casings as 80% of its production is exported to France, Spain, Italy and Germany. Bogdan Cincea, General Manager is proud to be part of the company as second generation and he looks forward to working together with one of the sons that are of the Schouten’s family fourth generation.

Leading food-distribution enterprise welcomes partnerships Agrirom is a one of the top three food distribution companies in Romania.

Agrirom has branches throughout the country which service 2,300 clients, from small shops in the horeca segment to all of the large supermarkets. Raul Balanescu, Director General, points out, “We have 25% of the market share in the vegetable distribution sector of Romania. We represent and distribute noteworthy brands on behalf of our partners with a wide variety of products.”

Agrirom welcomes any new suppliers looking for a reliable partner to distribute their products throughout the Romanian market. “Our core mission is to represent the brands of our suppliers, this is what makes us an ideal partner,” says Raul Balanescu. Agrirom also invites a strong strategic investor from Western Europe in the food distribution segment.

Innovative water and wastemanagement projects Arad County has become a centre for innovative water and waste-management initiatives, and one new project will bring clean Romanian drinking water to Hungarian consumers. Arad Water Company, overseen by the Arad County Council, will export drinking water to Hungary through a 33-km pipeline under construction between Arad and Bekes. Hungary will finance the €10 million project while Romania will deliver around 22,000 cubic meters of drinking water per day to its neighbour across the border.

Waste-management company offering innovative solutions .A.S.A. Romania initiated its presence in Romania in 2003 when

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Arad County

© Adrian Catalin Lazar-Dreamstime.com

Arad

it was selected for the construction and operation of Arad’s ecological landfill. Since this project was implemented, .A.S.A. Romania has disposed of more than 1.3 million tonnes of household waste in Arad County. Managing Director, Jürgen Springsits, points out, “Our efforts in Romania have provided a safe landfill, which prevents tremendous ecological burdens for future generations.”

.A.S.A. Romania emphasizes the importance of educating the population of Romania, from inhabitants, to commercial businesses, to authorities, on the positive steps and responsible waste management efforts that should be made for the future of the county. Jürgen Springsits explains, “It is critical for EU funders to involve experienced companies in their waste management plans, particularly in the

implementation phase of projects. .A.S.A. Romania has proof that we are willing and able to contribute to these efforts. We are ready to move forward to improve the overall situation.”

The energy sector is another growth industry for Arad County, and local companies are improving their energy efficiency. At the EU-EBRD Sustainable Energy Excellence Awards held in Bucharest in March

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this year, the Leadership Award for sustainable energy investment by a company with a female CEO went to Mariana Turcin, of Spicul Turcin from Paulis, Arad County. The company lowered its CO² emissions by 43% by investing in energy-efficient tractors and a cereal dryer, using a €602,000 loan from BRD Groupe Société Générale. “We are celebrating Romanian companies which have demonstrated time and again that investment in energy efficiency and renewable energy can bring economic, environmental, energy security and social benefits to Romania,” said James Hyslop, EBRD Director for Romania.

Major energy player ideal local partner Inversolar Energy is spurring on the growth of Romania’s renewableenergy sector. Founded in 2008, the company has been focusing on solar energy since 2011 and has added 250 MW of power to Romania’s energy capacity. Dor Marian, Member of the Board, says, “We have provided a gateway for more than ten investors who have invested a total of €200 million in renewable-energy projects in Romania over the past two years.”

In addition to supplying green energy to its retail and wholesale customers, Inversolar offers consultancy services for foreign energy companies operating in Romania. As Paul Pescar, Member of the Board,

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points out, “Inversolar is the ideal local partner.”

Dynamic automotive industry The automotive industry is another thriving sector in Arad County. One satisfied EU investor in Romania is Leoni Wiring Systems, Europe’s biggest producer of electrical systems for automobiles. The company has been present in Romania since 1999.

Leoni Wiring Systems exports its products worldwide from its production facilities in Romania. Ovidiu Stoica, Managing Director, points out, “As a success story in Arad, Leoni Wiring Systems is committed to supporting Romania.”

Arad is, in fact, developing a reputation for cutting-edge manufacturing in many fields. An example is Sweden-based Sapa Group’s extruded aluminium profiles plant in Chisineu Cris.

Aluminium extrusion specialist leading the way in quality, safety Sapa Group’s strong customer orientation has made it one of the leading aluminium extrusion companies on the globe, and a success story in Arad County. Didier Senn, Managing

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Director, boasts, “We are readily available at any time for our customers’ requests. Each of our 3,000 products is made with the utmost quality and safety.”

Recent foreign investments in Arad County include a €1.5 million greenfield project last year by Germany’s Stanzwerk Wetter to produce innovative furniture mechanisms in Ineu. The new production facility covers around 2,700 sq m and will be expanded significantly by 2018.

Owner Christoph Sichelschmidt comments, “We came to Ineu right after the local elections in 2012 and, after talking for about five minutes with the new mayor, Calin Abrudan, we had a deal. Everything moved very quickly and our new production facility, built by a local company, was commissioned 22 months after we first came here.”

Germany’s Kromberg & Schubert, a producer of automotive components, is also stepping up its investment in Arad County. The company recently acquired a production facility in Chisneu Cris to expand its operations there. Cristina Pop, Manager of realtor Jones Lang LaSalle’s Industrial Agency in Romania, explains, “The proximity to pan-European corridors and the availability of qualified engineers and workers are reasons foreign production companies as well as investors are expanding in Romania.

The Kromberg & Schubert transaction proves the German company’s confidence in the long-term future of the Romanian industrial and labour market, and we expect additional new investors. We are currently dealing with several inquiries from other companies.”

Thanks to its many innovative, forward-thinking enterprises in a range of sectors, Arad County is an ideal location for business and investment.

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Arad: A Taste of Romania’s Cultural Heritage

Arad © Tupungato-Dreamstime.com

Arad gives visitors a chance to get to know Romaniaʼs rich cultural heritage. The city traces its history back

to the 11th century when it was a major trade hub.

Today, Arad is a thriving industrial and logistics

centre as well as the home of two universities, many ancient churches and monasteries from the past four centuries, and a lively cultural scene.

Visitors can stroll along tree-lined Bulevardul Revolutiei, explore the 18th-century Arad Fortress (Cetatea Aradului), enjoy the open-air market near Piata Avram Iancu, and visit Arad’s picturesque Jewish and Serbian neighbourhoods with their historic synagogues and churches. Arad also has several museums showcasing the area’s history and arts.

Many attractions near the city give visitors a look at Romanian culture. The Minis Maderat Vineyard east of Arad offers tastings

of its award-winning wines, while Lipova in the same area has been the home of an elegant natural-spring spa since the 16th century. East of Lipova is the 13th century Soimos Fortress, while Tara Zarandului, around 80 km east of Arad, is known for its traditional villages where authentic crafts are produced.

With its world-class hotels, shops and fine dining – including at highly rated Ema del Mar and Waterhouse restaurants – Arad is an excellent base for exploring Romania.

R E S T A U R A N T

★ ★ ★ ★

Elegant Dining in the Heart of Arad Waterhouse, a family-owned restaurant in the heart of Arad, is an ideal venue for dining with family and friends or for hosting special events. Tudor Caracioni, owner, points out, “Ever since the restaurant opened in 2009, we have focused on providing a first-class atmosphere. It must be running in my blood, as my grandfather owned the best restaurant in town at the time. We never compromise on the high quality of our food, drinks and service.”

Waterhouse SRL specialises in serving fine Italian cuisine but offers a varied menu for every taste. Tudor Caracioni welcomes partners from Europe to help him expand the business and advises visitors to Arad to dine at Waterhouse SRL. Waterhouse SRL, Calea Bodrogului No.6, Arad 310059 Tel.: +40 257 225 252, www.waterhouse.ro

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Top Restaurant on Trip Advisor Ema del Mar recently celebrated its first anniversary and is ranked the top restaurant in Arad on Trip Advisor. Explaining his restaurant’s popularity, Nicolae Chis says, “Ema del Mar is a small and cosy restaurant, with an outdoor terrace to be enjoyed in the summer, but what we are mainly known for the exceptional quality of our food and service. Our goal is to offer diners an experience they will not forget.” Nicolae Chis welcomes partners who can help him expand his very successful restaurant, and urges international travellers to discover the outstanding cuisine and ever-changing menu at Ema del Mar in Arad.

Ema del Mar Strada Episcopiei No. 9, 310023 Arad Tel.: +40 746 611 113

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Family-Run Luxury Hotel in Arad

Hotel

Coandi,

ideally

located

perched

on a cliff above the Mures river in Arad,

offers luxurious facilities and services for

leisure and business travellers. The hotelʼs amenities include a private beach on the river, a sophisticated bar with an open

fireplace, elegant décor featuring wood and granite, a gourmet restaurant serving local and Mediterranean specialties, a tennis court, conference facilities and much more.

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Modern luxury amenities The completely modernised hotel, which opened in 2005, provides guests with a wide choice of accommodations, from 42 double guestrooms and six single rooms to three suites and three apartments. All are air-conditioned and each features a TV, safe, minibar, work desk, private bathroom with a shower or spa bath, and free WiFi Internet connections. An airport shuttle, laundry service, luggage storage and business services are available on request.

The hotel attracts a high percentage of return visitors thanks to its comfort and special style. Guests can sample

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Sector Arad County

a glass of grappa, a fine cigar or other indulgences in the bar, and enjoy the restaurant’s exceptional cuisine either in the elegant dining room or on the outdoor terrace overlooking the Mures river and historic Traian bridge. Guests can also pamper themselves with a sauna or a massage. General Manager Radu Copil points out, “We have an international restaurant with many things to offer, and we have a conference room with the essential equipment for any kind of event, including an overhead projector, a screen, a flip chart and sound equipment.”

We are a friendly, family-run hotel, not an international chain. This means that the Hotel Coandi has that warm family feel as soon as you walk into the lobby.” He adds, “We recently welcomed a visitor who had stayed at Arad’s luxury international chain hotel on his previous visits to the city, but did not have a reservation there so he stayed with us for the night. Instead of moving to the other hotel the next day, he stayed with us because he preferred our hotel’s friendly atmosphere. In addition, our rooms are four-star.”

Conference facilities and convenient location

Focus on serving business travellers

The hotel’s conference room can host meetings for up to 50 guests, while special events can also be held in the hotel’s restaurant, which seats 120 people. Arad’s city centre is just 2 km from the hotel, and the historic Arad Citadel is only 1 km away. The Hotel Coandi is just 3 km from the airport and from Arad’s train station.

Explaining the hotel’s competitive edge, Radu Copil says, “We offer the same if not better amenities and services as our only real competitor in Arad, but for a lower price.

Since Arad is primarily a business-travel destination at present, most of the Hotel Coandi’s guests are executives.

The hotel also hosts pilots from the nearby airport, guests involved in cultural activities in Arad, government officials and visitors to companies operating in the city. “Our tourism guests make up only around 5% of our clientele, because Arad still has a long way to go in terms of developing tourism. We welcome corporate and leisure travellers alike and would like to see more tourists come here,” Radu Copil points out.

Radu Copil notes that the city’s plan to develop Arad Citadel into a tourism attraction should bring more leisure travellers to Arad and to the Hotel Coandi. To potential visitors, he adds, “Please come visit Romania.

You are certain to be pleased with this country and we guarantee a friendly welcome for you at Hotel Coandi in Arad.”

Hotel Coandi Calea Romanilor 47, 310114 Arad Tel.: +40 257 287 777 contact@hotelcoandi.ro, www.hotelcoandi.ro

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Four-Star Comforts in Arad In addition, the Best Western Central Hotel has quiet time after 11 PM. There is no nightlife or noise at the hotel, making it a perfect choice for business travellers who have come to Arad for work and need to get a good night’s sleep.”

Lovely garden terrace The Best Western Central features 40 luxurious guestrooms and two particularly spacious suites, along with a gourmet restaurant and bar, a secure parking facility, and a beautiful garden with a terrace where guests can relax or dine in summer. The hotel is air-conditioned and free WiFi connections are available throughout the property.

The four-star Best Western Central Hotel in Arad is set to play a key role in spurring on the

growth of Romaniaʼs high-potential tourism sector.

Formerly

an

independently

owned

Services include a sumptuous complementary buffet breakfast, a front desk open 24 hours, fax and photocopying support available at the reception desk, laundry services, and a free shuttle to the airport or train station. All of the hotel’s elegantly decorated rooms and suites are equipped with cable satellite TV, a telephone with international service, data ports, free WiFi Internet connections, a radio and alarm clock, a coffee/tea maker, a hairdryer and a minibar. A safe is available at the reception desk.

property, the hotel became part of the global Best Western group in 2000 and launched Best

Choice of well-equipped meeting rooms

Florian Torcos, Director General of the Best

Guests can relax in the hotel’s sauna and Jacuzzi, have a massage, or stay in shape in the modern fitness facility. For

Westernʼs presence in Romaniaʼs hotel sector.

Western Central Hotel, points out, “We are the founders who promoted the Best Western chain throughout Romania.”

The hotel is ideally located in the heart of the city near all Arad’s top business, cultural and entertainment venues. It offers international-standard facilities and services for which the Best Western group is known worldwide, but sets itself apart from other international hotel chains through its unique local character and its focus on making guests feel welcome and comfortable. As Florian Torcos puts it, “Our visitors feel very much at home here. They can count on a family feeling.

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business travellers, the Best Western Central features a choice of meeting rooms, all equipped with the latest communications technologies. In addition, the hotel’s restaurant can host high-profile events for up to 200 guests.

The owners of the Best Western Central invested around €2 million in transforming the original one-star hotel into an upscale four-star Best Western property, and more improvements were completed in 2012. The current goal is to continue to upgrade the hotel.

Promoting Arad’s tourism sector

Hotel but also Arad. In the end, everyone benefits from this type of initiative. Additionally, we work with local foundations and we donate to these foundations in order to support Arad’s tourism sector.”

Boutique property in Germany The Best Western Central Hotel’s owners also own a boutique hotel in Germany in a converted villa. This property is located in a pristine mountain setting near thermal springs, and visitors can combine a stay at the Best Western Central in Arad with a trip to Germany.

Most visitors to Arad, which has a flourishing industrial sector, have come to the city for business reasons, but Florian Torcos expects to see more tourism visitors once the area’s attractions are better known. Arad, a transport crossroads near the Hungarian border, is the hub of a thriving wine region and also has several historic landmarks from the city’s 1,000-year history, including an 18th-century fortress, two universities, several historic churches and monasteries, many museums and several parks. Travellers can also find many sites to visit nearby, including traditional villages, ancient fortresses and other landmarks, wineries, a famed spa at Lipova and more.

Florian Torcos says, “It is important for us to not only support our own local tourism sector but also to encourage Romanians to go to other countries and to provide options for international visitors. We have created an itinerary for tourists who come to Romania. When they arrive in Bucharest, we can organise their trip to Arad and then, if they wish, arrange for them to visit our villa in Germany. This is a great way for us to promote Arad as a tourism destination.” For both business travellers and tourists, the Best Western Central in Arad has positioned itself as the ideal base in Romania.

The Best Western Central Hotel aims to be the hotel of choice for Arad’s visitors. Florian Torcos says, “We want to attract more tourism as well as business travellers to Arad.

Most of our staff members speak at least two languages and we are ready to serve visitors from all over the world. We are committed to promoting not only the Best Western Central

Best Western Central Hotel Strada Horia, No. 8 310018 Arad Tel.: +40 257 256 636 hotel@bwcentral.ro www.bwcentral.ro

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• Arges County, Automotive Hub and Developing Investment Destination • Arges County: Industry, Transport and Cultural Hub

Arges County

“Arges is a leading Romanian centre for culture, education and research and has innovative, intelligent, competitive people and many successful companies.”

Florin Tecau, President of Arges County Council

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Arges County

Historic Arges Positioning Itself as Ideal Business Base waste by the end of this year. The county has also financed centres for the aged, children and people with disabilities as well as three special schools. We invest in preserving forests, cleaning rivers and educating our people about the importance of an environmentally friendly Arges.

The county is also modernising its nine hospitals.

European Times: How are you promoting Arges County as a tourism destination?

Florin Tecau, a former teacher, became Vice President of Arges County Council in 2008 and President last year. He discusses

what gives Arges County its unique appeal and discusses current projects underway.

European Times: What are your top priorities as President?

capitals and is known as the cradle of the Romanian language.

Florin Tecau: My motto when I campaigned to be President was “Arges for everyone”. I want to ensure good quality of life for every resident of the county: social care, modern and developed infrastructure, a dynamic cultural scene, Europeanstandard education, and integration with Europe and the world. I believe that the future of Arges County is in its youth and in our heritage of intelligence, creativity, spontaneity, energy, and the Arges spirit. Arges was the site of Wallachia’s first two

European Times: What are some of the county’s recent projects?

1

Florin Tecau: The county allocates 40% of its budget towards social care and child protection. Another priority is infrastructure modernisation and development, including water and sewerage systems, roads and more. We modernise 100 km of roads every year with the help of EU funds. We are currently completing a waste-management project which will begin producing energy from

Florin Tecau: We are developing mountain, winter and sports tourism.

Our mountains have snow for eight months of the year and we are building 40 ski centres with the help of EU funds. The county’s historic attractions include the true home of Vlad the Impaler, Poenari Castle in town Arefu - County Arges, and the cathedral of Curtea de Arges, considered the most beautiful Orthodox church in Eastern Europe.

European Times: Why should EU investors target Arges?

Florin Tecau: We have established partnerships with municipalities in France, Latvia and Turkey and we welcome international investors and partners. Arges is a leading Romanian centre for culture, education and research and has innovative, intelligent, competitive people and many successful companies. One example is DaciaRenault, which has 17,000 employees and is a top exporter. This investment illustrates the quality of development in Arges County.

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Arges County, Automotive Hub and Developing Investment Destination with the business community is a partnership; it is of mutual support in order to serve the general interest of Arges County and that of the whole country.

Arges is the county with the highest peaks of the Carpathian Mountains; it has a diverse and lovely natural landscape, with beautiful plains, hills and mountains. The potential of each area is connected to each of the aforementioned landforms.

Mihail Adrian Oprescu, Prefect of Arges County, discusses the districtʼs credentials as a developing investment destination.

European Times: What are your main objectives for the county?

Mihail Adrian Oprescu: The main objectives are ensuring that all our administrative units observe the law. I am also focused on developing the business environment for investors. As such, we work closely with the administrative institutions of the state in this direction.

European Times: How successful are you in attracting and implementing EU funds for Roma inclusion?

Mihail Adrian Oprescu: We are getting better at implementing EU funds for integration of the Roma population.

There appears to be a certain distrust and lack of confidence regarding non-refunda-

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ble EU financing because of some failures in the past. However, with the current team directly involved in EU integration, we have the right knowledge and experience for successful implementation of projects with EU funds. We have people with years of experience in administration and I am confident that we will successfully attract and implement EU funds.

Industrial and other sectors are traditional and important for Arges County’s economy; and it has plenty of qualified labour for industrial activities. Arges County has trained and qualified labour in the automotive industry, given the sector’s long history in Romania - thus offering ready talent for any automotive investment. There are investment opportunities in horizontal activities in the automotive industry and we also have experience in petrochemicals with skilled and qualified staff available for any investment in the sector.

The county also has huge investment opportunities in the agricultural sector.

We have a large Danish investor here undertaking livestock farming; and there are other investors involved in diverse agricultural businesses.

European Times: How attractive is Arges County as an investment destination?

European Times: What is your message to potential investors about Arges County?

Mihail Adrian Oprescu: We have large investors in the county - such as Dacia-Renault Group. We also have other important foreign companies like Dr. Oetker, Lisa Draxlmaier, and Holcim investing here. Our relationship

Mihail Adrian Oprescu: Arges County is amazingly beautiful and abound with so many business and investment opportunities. We have warm, welcoming and reliable people who are open-minded and open for development.

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Arges County

Arges County: Dynamic Economy with Strong FDI Appeal Vernel Craciunescu, President Chamber of Commerce and Industry of Arges County

the voice of the local private sector in discussions with the government and facilitates interaction between local and foreign investors. The Chamber is also playing an important role in stepping up the absorption of EU funds in Arges County. The Chamber welcomes the chance to assist foreign investors.

Arges County, whose capital

is oil-industry hub Pitesti, has developed a diverse industrial sector

which

textiles,

paper

producers

of

includes

machinery,

and

other

products. The Chamber of Commerce and Industry of

Arges County is playing a major role in promoting the countyʼs

economic

growth

and investment attractions.

“We invite investors to visit Arges County, where they will discover many reasons to establish productive partnerships with local companies and entrepreneurs.”

Vernel Craciunescu, President, discusses

current

projects

activity and successful economic growth, Arges County is one of the most economically dynamic counties in Romania and achieves per capita GDP of around €7,500. The county has already attracted significant FDI. Investors are drawn to Arges County’s skilled and affordable workforce, the presence of universities which can train specialists, and the county’s convenient location, among other factors.

European Times: Can you single out some investment success stories?

Vernel Craciunescu: Dacia – one of Romania’s strongest companies – is the best-known local success, although many other enterprises have become economic powerhouses in their own fields, including Grupul Industrial Componente, Lisa Draexlmaier, COMESAD, Ronera Rubber, Radic Star, Roechling Automotive, Mechrom, Amplast, Steinel and Sealynx Automotive, to name a few.

and investment opportunities.

European Times: What are some of the Chamber’s current projects and goals?

European Times: What is your personal message to potential investors?

European Times: What role does the Chamber of Commerce play in the business community of Arges County?

Vernel Craciunescu: The Chamber supports projects which will stimulate economic growth, especially improving local infrastructure and reaffirming the county’s industrial vocation as well as developing its tourism potential. The completion of the Pitesti-Sibiu motorway will greatly add to Arges County’s investment appeal. Thanks to its strategic location, long history of industrial

Vernel Craciunescu: The Chamber of Commerce and Industry of Arges County has served as a vector of the county’s economic expansion for 150 years. We invite investors to visit Arges County, where they will discover many reasons to establish productive partnerships with local companies and entrepreneurs. Arges has significant investment potential just waiting to be exploited.

Vernel Craciunescu: The Chamber of Commerce and Industry of Arges County was founded 150 years ago and has always been instrumental in driving the county’s economic growth.

The Chamber of Commerce serves as

1

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Arges County: Industry, Transport and Cultural Hub

Arges County, the ninth-largest county in Romania, is in the south-central part of the country on the outskirts of the Southern Carpathian Mountains. Its capital is Pitesti, which has a population of around 150,000 and is located around 100 km west of Bucharest. Pitesti is one of Romaniaʼs most important industrial, cultural and commercial centres as well as a key logistics hub. It has efficient

road and rail connections to other cities in Romania and beyond, including a direct link to Bucharest by the A1 motorway.

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Stefanesti,Topoloveni and surrounding areas. More than 250,000 people will benefit from improved water and wastewater services through the project, which began in 2014.

Arges has a long history of industrial production as well as a strong agriculture sector. The county’s main industries are automotive manufacturing and assembly, chemicals, home appliances, food-processing, textiles, and construction materials. Arges County is the home of the Dacia Renault auto-manufacturing plant in Mioveni and the ARO plant in Campulung, two of Romania’s leading industrial enterprises.

Advanced research and development The county is also known for its advanced research and development activities and for its well-developed energy sector, which includes an oil refinery, coal mines, a research facility near Mioveni which produces nuclear fuel for Romania’s Cernavoda nuclear-power plant, solarenergy plants currently under construction, and several hydropower plants on the Arges River, the largest of which is the Vidraru power plant. Romania plans to build a new type of nuclear reactor at Mioveni in a project budgeted at €1 billion to be run by the Institute for Nuclear research in Pitesti along with Ansaldo Nucleare and ENEA. Farms in the southern part of the county produce cereals and other crops, while wine

grapes and other fruit are grown on hillsides.

Arges County is also a popular tourism destination. Sites for tourism visitors include Pitesti, which has many historic landmarks as well as a thriving modern business and cultural life; Poinar Palace in Oradea: Curtea de Arges, where one of the bestknown monasteries in Romania is located; the rugged Fagaras and Leaota mountains (Fagaras is Romania’s highest mountain range); Poeienari Castle; Cotmeana monastery and others. The county is crisscrossed by the Arges, Vedea and other rivers. Romania’s biggest man-made lake is in Arges County – Vidraru Lake, covering 825 hectares – and Vidraru Dam, built in 1965, was the country’s first dam.

EBRD supporting new water and wastewater systems Arges County has attracted significant international investment and is working with global partners to continue to upgrade its infrastructure and quality of life. The EU Cohesion Fund and the EBRD are joining forces to modernise and upgrade Arges County’s water and wastewater services. An EBRD loan will be used to finance infrastructure for drinking-water treatment and distribution as well as wastewater collection and treatment in Costesti, Pitesti,

The county has also been upgrading around 100 km of roads every year with the support of EU funds and has launched projects to build new centres for the aged, children and people with disabilities; modernise local hospitals; and protect the environment. Arges County is also investing in education and training programmes to ensure topquality human resources. The University of Pitesti’s 12 faculties include the Faculty of Mechanics and Technology, which has an Automotive Department dedicated to preparing skilled professionals for the automotive industry.

Foreign companies already active in Arges County are achieving strong growth. One example is retail chain Mega Image, part of Belgium’s Delhaize group. It has been expanding aggressively in Romania, particularly in the Bucharest area but also in Arges and a few other counties not far from Bucharest. Arges County welcomes foreign investors.

Str. Tudor Musatescu, bl. V2C, sc. B, ap. 7, 115400 Mioveni, Arges Soseaua Pitesti-Campulung, Km 18, 117750 Titesti, Arges

Tel.: +40 248 264 518, +40 248 264 355, office@deltainvest.ro, www.deltainvest.ro

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World-Class Car Hire, Chauffeured Transfers and More Terra Rent-a-Car has been providing world-class car-hire services in Arges for more

than a decade. The company offers car hire for individuals; short-term, medium-term and long-term car hire for corporate customers; airport transfers; and chauffeured

vehicles, including chauffeured transport between Pitesti and Bucharest. Recently

Terra Rent-a-Car added to its portfolio of services by launching international goods transport using temperature-controlled 3.5t Sprinters, as well as express transport, including medical transport.

The company has developed a loyal following thanks to its high-quality services, up-to-date vehicles and dedicated team of professionals.

Ramona Otobicu, manager, points out, “Terra Rent-a-Car started in 2008 with

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seven cars and we have been expanding our fleet every year. Currently we offer new Dacia, Renault, Opel and VW models, all fully equipped and complete with summer and winter equipment and free WiFi.”

The Terra Rent-a-Car fleet features a wide choice of cars at different prices, from budget models to four-wheeldrive vehicles. All cars are new, airconditioned, equipped with ABS, and fully covered by RCA vehicle-liability

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Arges County

insurance and CASCO comprehensive car insurance. Replacement vehicles are provided if necessary and service is available around the clock. Long-term rentals include all these services plus a new vehicle with zero mileage, delivery anywhere and no required financial guarantee. Customers can reserve a vehicle or special service online through the Terra Rent-a-Car web site, which is available in English and other languages.

travellers from the EU. Some of its popular services include transfers to and from Henri Coanda International Airport and companies located in Romania. Defining Terra Rent-a-Car’s competitive edge, Ramona Otobicu explains, “We provide new businessclass cars and English-speaking professional chauffeurs who are always punctual and ready to ensure that you have a comfortable and safe ride to your destination. In addition to our car-hire and transfer services, we now offer transport of general and frozen goods.

We are very flexible with our clients, understand their needs and always put them first.”

The company’s innovative, cost-effective services for its corporate clients

Ready to serve customers 24/7 Terra Rent-a-Car is on call for its customers 24/7 and welcomes the chance to partner with investors and

Advantages

Short term

Medium Term

Long term

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Negotiable prices

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Cars with 0 km

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RCA (vehicle liability insurance), CASCO (fully comprehensive car insurance), Romanian vignette

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Air conditioning + Anti-lock braking system (ABS)

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have positioned Terra Rent-a-Car as the preferred partner for many major Romanian and international companies. Ramona Otobicu says that Terra Rent-a-Car is also seeing growth in tourism rentals as Romania’s tourism appeal gets better known globally. She explains, “We have international and Romanian clients, and for us every client is important. A lot of our foreign clients come to Romania with negative misconceptions, but after they have spent time here, they are very pleased with the country’s advantages for both business and tourism. The Arges region in particular has many things for tourists to see and do.”

Ramona Otobicu adds that Terra Rent-a-Car is committed to improving Romania’s international image by offering the best possible services to its customers. She concludes, “We encourage everyone to come to Romania. This country has outstanding investment potential and many tourism attractions. Here at Terra Rent-a-Car, we will continue to be available around the clock to serve you.”

Terra Rent-a-Car Fratti Golesti No. 29, Pitesti Tel.: +40 348 445 102 +40 731 331 220 +40 731 331 221 office@terrarentacar.ro www.terrarentacar.ro

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Luxury Hotel and Restaurants in Peaceful Forest Setting All of Cornul Vanatorului’s 52 exceptionally spacious guestrooms are air-conditioned and equipped with free WiFi Internet access, flat-screen cable television, views of the forest and gardens, and private bathrooms. All meet the highest EU and international standards for cleanliness and comfort. The hotel’s services include a delicious continental breakfast, a fitness centre, anti-cellulite massage, reflexo-therapy, relaxation massage and more. The hotel is just five km from the A1 motorway and has free on-site parking.

A choice of seven restaurants and meeting areas Travellers can relax in unspoiled natural surroundings just minutes from Pitestiʼs city

centre at the luxurious Cornul Vanatorului Tourist Complex. Cornul Vanatorului offers a

successful blend of contemporary style and authentic Romanian character along with fine cuisine and a warm welcome from dedicated staff members.

Only five km from Pitesti city centre The hotel complex is ideally located in beautiful Trivale Forest, around 800 metres from Pitesti’s zoo and only around 1,000 m from the historic 17th century Trivale monastery.

Serea Diatrice, manager, explains, “Everything started in 1964 with a small dining room serving hunters during the hunting season. After Romania’s revolution, the restaurant began to grow and hotel rooms were added in 2000.

Gheorghe Vasâi bought this complex two years ago and invested a lot in rebuilding and renovating it. Cornul Vanatorului Tourist Complex has become very popular because it is a true breath of fresh air in a lovely forest location yet it is so near the city centre. Our guest numbers have tripled and we plan to invest in even more improvements in the hotel rooms, service and restaurants.”

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With its seven restaurants and meeting areas, Cornul Vanatorului is well known for its fine dining in a choice of settings.

Serea Diatrice points out, “We have restaurants to suit a variety of tastes and styles, but in all of them, the food is very, very good.” Diners can choose international specialities or delicious authentic Romanian dishes like “mititei” (grilled minced meat rolls) with home-baked bread; mutton, pork or deer pastrami; chicken stewed with garlic sauce and polenta; hunter’s stew; Romanian pork leg with cabbage and beans, and other treats.

The Ciuleandra room, which seats 60, has an authentic beamed ceiling and a fireplace. Guests can relax in the atmosphere of a rustic mountain retreat while enjoying delicious cuisine, fine service and live music. The dining room displays traditional Romanian textiles, pottery and crafts.

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Arges County

The Rendez-Vous room seats 35 guests and offers a panoramic view of gardens and the forest from many windows. With its refined yet relaxed atmosphere, it is very popular for smaller events, including birthday parties. The Belvedere room, which accommodates up to 300 people, is on the top floor of the complex and has a panoramic view of Trivale Forest and the surrounding area.

It is an ideal choice for receptions, weddings, baptism or confirmation parties, graduation banquets and other events.

Perfect for all types of business meetings and conferences The Business-Class room, with its dynamic contemporary décor, seats 60 guests and specialises in hosting business events and serving delicious themed meals. The Moden room, which accommodates 450 guests on two floors, is a very popular venue for prestigious events, from New Year’s Eve parties to business conferences and even filming TV programmes. The Oval room, which seats 100 guests, has a lovely terrace overlooking the forest.

The Royal room lives up to its name in its luxury and elegance.

Accommodating up to 250 guests, it is a very flexible space which can be organised to fit any kind of event, and it is very popular for wedding parties. The Hunting room, which accommodates 80 guests, specialises in serving the traditional cuisine and game for which the Trivale Forest is known. It takes guests back to the origins of Cornul Vanatorului when it was a retreat for hunters, yet it offers elegant dining in a refined atmosphere.

Outdoor venues for special occasions For visitors who want to organise an event outdoors, Cornul Vanatorului Tourist Complex has two choices: an open-air amphitheatre complete with a swimming pool, and the Gradina de Vara (summer garden), with its lovely terrace surrounded by the forest. At both venues, elegant meals are served and accompanied by live music.

Serea Diatrice anticipates continued strong growth for Cornul Vanatorului as Romania’s tourism attractions get better known and as travel between Western Europe and Romania gets easier. She says, “We are looking for investment to complete even more improvements. When visitors come to Cornul Vanatorului Tourist Complex once, they are sure to come back. We are in a beautiful natural setting, we serve fine meals, we offer live music year-round, and our staff does everything possible to make guests feel relaxed and at home.”

Cornul Vanatorului Tourist Complex Parcul Trivale, Pitesti, Jud. Arges Tel.: +40 248 275 091 +40 372 716 340 contact@cornulvanatorului.ro www.cornulvanatorului.ro

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• Iasi Municipality: Dynamic Cultural and Economic Hub • Iasi: Business and Cultural Hub on EU’s Eastern Border • Iasi County Open for Business

Iasi County

“Along with low labour costs, Iasi is the second-biggest university centre in Romania and has highly skilled, dedicated human resources.”

Dan Carlan, Prefect of Iasi County

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Dynamic Iasi County Offering Highly Skilled Labour at Competitive Costs county’s projects, from major infrastructure initiatives to smaller local efforts. As Prefect, I also play a role in attracting investment by streamlining bureaucratic procedures and funding processes.

European Times: Why should investors choose Iasi County?

Dan Carlan: Iasi County’s top attraction is Iasi City, which is Romania’s second-biggest city and has stronger investment appeal than any other city in the country. Iasi is in north-eastern Romania, the poorest region in the European community, which means that labour costs are lower than anywhere else. Along with low labour costs, Iasi is the second-biggest university centre in Romania and has highly skilled, dedicated human resources. Iasi County also has many growth sectors.

European Times: What are some of the sectors with particularly strong potential?

Dan Carlan, Prefect of Iasi County, has had a distinguished career in the public sector, serving as a county counsellor, senator in the

Romanian parliament, President of the Senate Committee on Public Administration, State

Secretary in the Ministry of the Environment, and in the ministries of economy and energy.

He discusses the economy of Iasi County and its attractions for investors.

European Times: What are your main goals as Prefect?

Dan Carlan: My main objective is to support Iasi County’s economic development. I am an active Prefect, involved in the life of the community and in all the

Dan Carlan: One is agriculture. Iasi County has almost 400,000 hectares of agricultural land and a very good agricultural university. Concerning industry, Iasi was an industrial centre in the Soviet years and many existing facilities can be adapted for new activities. My main project as Prefect is to develop an industrial park in partnership with Iasi municipality which will take advantage of existing gas and electrical systems, railway and road infrastructure, and other facilities which will support major industrial activity. The ICT sector is also growing rapidly and Iasi has a highly rated technological university supplying very skilled ICT human resources. Iasi also has a well-developed healthcare system, which makes it appealing for medical tourism. One successful foreign investor in Iasi is US company Delphi.

European Times: What is your personal message to investors?

Dan Carlan: Iasi is a great opportunity. I welcome investors to not only sell their products here, but also to take advantage of the opportunity to manufacture at low costs and at high quality levels and distribute their products from Iasi throughout Romania, Europe and beyond.

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Iasi Municipality: Dynamic Cultural and Economic Hub Gheorghe Nichita, Mayor of Iasi

grants to finance infrastructure projects. Another priority was to increase the city’s rate of absorbing EU funds in order to access the funds plus co-financing. Today, Iasi municipality is a leader in Romania in EU funds absorption; the city has achieved a 70% absorption rate. In addition, a number of projects have been completed to upgrade the city’s infrastructure, cultural offerings, educational system, social services and healthcare. Iasi has also attracted international investment.

European Times: Why should investors choose Iasi?

Gheorghe Nichita: Iasi has long been a centre for education, and today the city offers a vast pool of highly educated, well-trained labour available at low costs. Iasi continues to put the focus on education, with 25 % of the city’s budget earmarked for education projects. Iasi also has a dynamic private sector and a very business-friendly government. The mayor’s office partners with the local chamber of commerce and with local and international companies operating here. Thanks to Iasi’s highly educated local population, the creative industries have a lot of potential here, as does the ICT sector.

Iasi municipality is ranked one of Romaniaʼs

European Times: What are some of the city’s current and future projects?

cultural hub. Mayor Gheorghe Nichita, who

Gheorghe Nichita: Iasi is applying to be named an EU Capital of Culture in 2021. Iasi was the cultural capital of Romania when the country was established as a modern state in 1859, and the first Jewish theatre was built here.

Iasi celebrates its role as a hub for education and culture with an international education festival every year in May. Improving the city’s infrastructure is a top priority, and current projects include developing the east-west motorway and a new road to the airport. A regional hospital is being built here, and an industrial park designed as a base for ICT companies is being developed in Iasi in partnership with the Chinese government. These are major projects that will make Iasi municipality even more attractive as an investment target.

most dynamic urban centres as well as a previously headed Iasiʼs water company and was elected mayor in 2004, discusses Iasiʼs

current projects and highlights the cityʼs investment attractions.

European Times: What are some of the major projects launched in Iasi over the past decade?

Gheorghe Nichita: When I became mayor in 2004, the city was on the verge of bankruptcy, so I applied for many

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Iasi: Business and Cultural Hub on EU’s Eastern Border Paul Butnariu, President, Iasi Chamber of Commerce

provides professional consultancy and business-support services and serves as a liaison between the private sector and the government and organises networking events, trade shows and other activities to inform and promote local businesses.

European Times: How can the Iasi Chamber help foreign investors?

Paul Butnariu: The first step a foreign investor must take in Romania is to contact Iasi Chamber of Commerce and Industry, and we can serve as an interface between an investor and local government. The Chamber has a very good relationship with local authorities and strives to be the best first point of contact for any investor.

European Times: Why should investors choose Iasi?

Iasi, the largest city in eastern Romania, together

with Iasi County around it has been known as an economic and cultural hub for centuries. Today,

Iasi has a high-potential economy whose private sector is represented by the Iasi Chamber

of Commerce and Industry. Paul Butnariu, President, discusses Iasiʼs investment appeal.

European Times: What role does the Iasi Chamber of Commerce and Industry play in the local economy?

Paul Butnariu: The Chamber serves to represent and support the interests of local and foreign companies operating in Iasi. Our member companies are from a wide range of sectors, from tourism, real estate and trade to banking, manufacturing, ICT and electronics, among others. The Chamber

Paul Butnariu: Iasi is strategically located on the EU’s eastern border and serves as a bridge between Western and Eastern markets. Iasi is developing strong logistics infrastructure and services to make the most of this advantage. In fact, Iasi is becoming a dynamic logistics hub and is one of only two cities in Romania served by the railway connecting to China. A second factor is that Iasi has long been known for its universities and has many highly educated, multilingual human resources, for example in cutting-edge ICT fields and in the creative industries. This is one reason multinationals like Amazon have invested here. Iasi offers many opportunities for investments in Greenfield projects.

European Times: What are your goals for Iasi?

Paul Butnariu: A very important project is to build a new highway connecting Iasi to the infrastructure of Central and Western Europe. This highway will be crucial not only for Iasi but also for all of north-eastern Romania. The new highway will make Iasi more competitive with Cluj as a business base.

European Times: What is your personal message about Iasi?

Paul Butnariu: Iasi has very friendly and open-minded people who welcome investors and are committed to promoting the local economy.

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Iasi County Open for Business Iasi National Theatre © Wiktor Wojtas-Dreamstime.com

modern office space, excellent communications, and new industrial and logistics parks.

As Invest in Iasi emphasises, Iasi County offers opportunities in many sectors.

The county has a long history as an industrial hub and was a major production centre during the Soviet era. While this activity ended in 1989, the county still has many industrial facilities which can be transformed for modern manufacturing. One example is Iasi County’s massive heavy-equipment plant modernised through a €1 billion investment

by FORTUS SA, which produces heavy equipment and components in Iasi that it exports worldwide.

Iasi County, in north-eastern Romania on the EUʼs eastern border,

is making the most of its strategic location to become a leading

regional and international trade and logistics hub connecting East and West. The county also offers the winning combination

of exceptionally skilled and talented human resources along with labour costs which are among the lowest in the EU. Iasi City, the county’s capital and main urban centre, is the second-largest city in Romania. It is the home of several universities along with a lively cultural scene and up-to-date facilities and services for business. It is also one of two cities in Romania with rail connections to China.

12 reasons to invest in Iasi The organisation Invest in Iasi hosted a conference for potential investors

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at the Milano 2015 trade fair in June to promote the county’s exceptional investment appeal. Invest in Iasi highlights 12 key reasons to target Iasi: its location on the EU’s eastern border, its large number of highly trained specialists, its universities, its expertise in advanced technologies, its modern road infrastructure, its expanding international airport, inland-waterway transport on the Prut River, a new intermodal logistics hub, Transagropolis Park for agribusiness companies,

Dan Carlan, Prefect of Iasi County, aims to establish a cutting-edge industrial park to help regenerate the county’s industrial activity. He says, “Iasi municipality will upgrade and manage the industrial park, which is already equipped with electricity and natural gas as well as rail and road infrastructure, and offer facilities to investors. Any business operating there would be able to count on the latest production capacities along with qualified labour at low costs.”

Significant investment in

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Sector

IasiSector County

BPO and ICT Iasi County also has strong competitive advantages for investors in ICT and the healthcare sector, including pharmaceuticals. The county’s universities produce highly trained, multilingual graduates in high-tech fields, while Iasi City is already a leading regional healthcare hub and a popular destination for medical tourism.

One new sector with particularly exciting prospects in Iasi is business-process outsourcing, which, along with ICT, has attracted some €220 million per year in investment in Iasi in recent years and employs around 6,000 people. Major players with a BPO (Business Process Outsourcing) presence in Iasi City include Amazon, Endava, Xerox, Capgemini and Centric IT Solutions. The new Palas Iasi complex on St. Lazar Street in Iasi City is expected to attract more companies in the ICT and BPO sectors and to provide space for around 2,000 new jobs. The complex, budgeted at more than €260 million, is being developed by Romania’s Julius Group.

Agriculture and food-processing are other activities with outstanding potential in Iasi County, which has over 400,000 hectares of farmland. The local University of Agricultural Sciences provides trained specialists as well as conducting research and development, and the new Transagropolis Park is an ideal base for agri-business enterprises. The park, budgeted at €4.3 million, will include cold-storage facilities and a business-support centre. Located in Letcani, Iasi County, it will support local agricultural producers as well as producers in nearby Moldova and Ukraine. Innovative projects like these demonstrate that Iasi County is definitely open for business.

Leasing Company Offers Top Quality Space to a Range of Companies and Industrie TEBA Industries offers versatile space for leasing to companies of all industries in Iasi. TEBA Industries owns 100,000 square meters, ideally located in Iasi’s industrial area, with modern utilities and well maintained buildings.

Laura Madosa, TEBA Industries Director, points out, “We have invested a lot over the years for renovation of all our buildings and facilities to guarantee that we offer local and foreign investors and entrepreneurs the best facilities to ensure the success of their businesses here in Iasi”.

www.tebaindustries.com

Sanitation Company Keeping Iasi Clean Waste-management

specialist

Salubris

offers

world-class services to 40 townships in the county of Iasi. After successfully completing a €30 million modernization and expansion project funded 75% by the government and 25% by Iasi Municipality,

Salubris SA is currently applying together with Iasi Municipality for a €12 million in EU Structural Program Funds to upgrade its fleet of vehicles.

Ion Apostol, Director General

Director General Ion Apostol, who has headed the company since 2005, explains, “Salubris has proven itself to be a very reliable, corruption-free enterprise which performs an important job efficiently. Our company plays a significant role in keeping Iasi clean for its inhabitants, and has demonstrated that it deserves EU funding support.” Salubris invested €1 million of its own funds in new equipment in 2014 and is committed to continuing to meet EU standards in all its operations.

Salubris is a partner of choice for enterprises in Iasi and handles waste management for Delphi, the biggest foreign investor in Iasi Metropolitan area. Salubris welcomes new customers and aims to expand to other areas soon. Ion Apostol concludes, “Salubris has proven that it can offer a high level of services at the right prices and can meet the needs of the local market.

Iasi is an excellent base for business, and Salubris can take care of any investor’s waste-management needs.”

S.C. Salubris S.A National Street No.43, Iasu 700373 Tel: +40 232 276 244 office@salubris.ro, www.salubris.ro

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Upscale Facilities and Services in Iasi

Five-star Pleiada Boutique Hotel offers world-class accommodations and exceptional services just 15

minutes from Iasi International Airport. Surrounded by orchards and forests, the hotel is a quiet retreat

that is still within easy reach of Iasiʼs city centre and main business, cultural and entertainment venues.

Contemporary, cosmopolitan and very welcoming, Pleiada Boutique Hotel features a décor honouring the Pleiades star constellation, the inspiration for the hotel’s name. A new property established with EU funds and designed to meet the needs of demanding international travellers, Pleiada Boutique Hotel has 60 elegantly decorated guestrooms and four luxurious suites. In the rooms one finds the six elements of nature: water, air, fire, light, earth and wood. The Presidential Suite is simply an expression of the most extravagant imagination in terms of luxury, comfort and sumptuousness. Consisting of a living room, bedroom and two bathrooms, the suite covers a total area of over 100 square meters. The apartment has a private terrace of 100 square meters, decorated with ornamental plants, outdoor Jacuzzi and sauna. It is fully equipped, and quests can also take advantage of all amenities and services the hotel offers. Each room is equipped with a touch-screen system to adjust air-conditioning and heating, LED TV with satellite reception, a telephone, free WiFi and high-speed Internet connections, a minibar, room service and all the facilities according to the five-star standard.

Pleiada Boutique Hotel is well known for its fabulous foods and wines. The elegant, light-filled Maia Fusion Restaurant features fine cuisines and wines from all over the world, while the convivial Burgo Wine Bar specialises in excellent wines as well as authentic Romanian dishes with a contemporary touch. Breakfast and other meals can be served in guests’ rooms on request.

Designed for both business and leisure travellers, Pleiada Boutique Hotel also offers a well-equipped business centre and four meeting rooms and conference rooms for groups of 20 up

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to 270 people. The hotel pampers its guests with a fitness centre and a spa with a swimming pool, wet and dry saunas, aromatherapy steam bath and classical steam bath, emotional showers, a salt-therapy room, massage services, and facial and body treatments. Other amenities at the hotel include a luggage-storage facility, a children’s playground and a special room for children, and underground and outdoor parking.

Exclusive Up2You services Pleiada Boutique Hotel distinguishes itself from other luxury hotels through its exclusive personalised Up2You services. These include early check-in and late check-out, MakeMyCar car maintenance during a guest’s stay at the hotel, MySweetMorning (a pre-packaged breakfast for guests checking out before 6:30 AM), and other services on request.

The hotel’s events team can organise banquets, conferences and any other special events. Pleiada Boutique Hotel can also organise taxi transport to and from the airport, domestic and international postal services, tours of Iasi and surrounding areas, airline and train bookings, bookings at restaurants and entertainment venues, laundry and drycleaning services, and much more. Pleiada Boutique Hotel offers the upscale facilities and services international travellers are looking for in Iasi.

Pleiada Boutique Hotel 18B Bucium Road, Iasi Tel. : + 40 332 425 425, +40 748 016 124 office@hotelpleiada.ro, www.hotelpleiada.ro

PLEIADA BOUTIQUE HOTEL Eclectic and Versatile Universe of Comfort, Luxury and Hospitality ★ excellent accommodation ★ exclusive facilities ★ flawless restaurant services ★ passion for culinary creations ★ promptness in delivering services

HOTEL’S AMENITIES ★ 60 stylish rooms and 4 luxurious apartments, which conquer by striking

details in terms of design and décor ★ 2 restaurants and a breakfast room ★ 4 meeting and conference rooms, for groups between

20 and 270 persons ★ Spa centre with a swimming pool, dry and wet sauna, salt therapy

room, emotional showers, massage room (individual and for couples), facial and body treatment rooms, fitness centre

DESIGNED TO FOLLOW NATURE’S PATH Six elements of nature found in each room: water, air, fire, light, earth and wood.

GENEROUS RESOURCES, EXCELLENT LOCATION AND THE FAULTLESS CULTURE OF HOSPITALITY Pleiada Boutique Hotel is located only 7 minutes away from the shopping, historical and administrative centre of Iasi City and 15 minutes away from Iasi International Airport. Surrounded by orchards and forest patches, the hotel gives its visitors a wonderful opportunity to relax in a discrete environment, by simultaneously being centrally located and well connected with the street network and local and regional road network.

UP2YOU, BECAUSE YOU ARE THE CENTRE OF OUR ATTENTION (the original concept of Up2You services expresses our ability to provide our guests with what they really want and a promise of our continuous struggle to be on top)

Pleiada Boutique Hotel - 18B Bucium Road, Iasi - Tel.: + 40 332 425 425 - +40 748 016 124 - office@hotelpleiada.ro - www.hotelpleiada.ro

Corporate events don’t have to be unimaginative.

Tailored packages. Menu Gourmet. Flawless service.

Your success story.

Live from Epoque

Intrarea Aurora nr. 17C, București, sector 1, Tel/fax: +40 21 312 32 32, events@epoque.ro, www.epoque.ro