Professional Documents
Culture Documents
Content
ROMANIA
INTRODUCTION President Traian Basescu Outlines Romanias Investment Ancient Land Transforms Economy and Welcomes
Investors Romanias Fact File Attractions 4 6 8
CONSTRUCTION & INFRASTRUCTURE Dynamic Ministry Building a New Romania 40 Infrastructure and Construction Projects Continue to Tehnologica Radion
Attract FDI 41 45
IT & TELECOMMUNICATION Ministry Promoting Ambitious E-Romania Development ICT Sector Offers Significant Growth Potential
Programme 47 49
AGRICULTURE High-Potential Agriculture Sector Gets Stimulus from EU Agriculture Sector Could Feed over 80 Million Agro Chirnogi
Funding 52 54 56
CITIES OF ROMANIA Bucharest: Historic Cultural Centre Becoming Base for Cluj-Napoca: Dynamic Business Hub and Gateway to
Transylvania Timisoara: Hub of Western Romania International Business 18 19 20
ENERGY Ensuring Romanias Energy Security Energy Sector Strategy Focuses on Efficiency and EnergoBit CET Govora DG Petrol
Renewable Energies
58 59 63 64 66
22 23 24 27 28 29 30
HEALTH Thriving Pharmaceuticals Sector; Healthcare Facilities Pharmaceuticals Sector Offers Tremendous Growth
Potential Being Upgraded 68 70
TRADE & INDUSTRY Making Romanian Industry More Competitive 32 National Chamber of Commerce and Energy: Dynamic Ideal Base for Trade-Oriented Industrial Operations 34 Frigotehnica 36 Bucharest Chamber Ready to Assist Foreign Investors 38 At the time of printing Romania was in the process of forming a new government
Advocate for Private Sector 33
TRANSPORT Transport Infrastructure Currently Being Upgraded Union Serves as Advocate for Road Hauliers
72 74
TOURISM Promoting Romanian Tourism at Home and Abroad 76 Undiscovered Treasure for Tourists; High Potential Choice Ramada Majestic Bucharest JW Marriott Bucharest Grand Hotel Avis Romania
for Investors 77 79 80 82
Director: Lieve Luyten Ofce Manager: Samira Darghal Project Coordinators: Sarah Scotch, Ehab Abdrabou Regional Manager: Alina Shtutman Editorial: Emily Emerson-Le Moing Production Coordinator: Kathleen Jansen Design: Martine Vandervoort, Carine Thaens, Walter Vranken
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ROMANIA
A former sea captain and mayor of Bucharest who served as the countrys Minister of Transport between 1996 and 2000, Traian Basescu became president following elections in 2004. In 2005, he made public the les of the communistera secret police, the Securitate. In 2007, he received a strong public endorsement through a referendum which rejected an attempt by Romanias parliament to impeach him. Analysts say that the presidents drive to step up the pace of reform had made him unpopular with some media moguls and politicians involved in corruption cases.
Introduction
Fighting corruption
While praising the advances Romania has made in recent years, Traian Basescu does not try to hide the problems which remain, including corruption charges against several former and current political leaders. He says, There is still a certain level of corruption. Two former ministers are already facing trials, and prosecutors are waiting the approval of the Parliament for trails of other former ministers who are currently Parliament members. Romania is making serious progress in combating corruption, but unfortunately, Parliament is sometimes not fast enough in giving its approval for the investigation of these former ministers. Nevertheless, corruption has been dramatically diminished. Traian Basescu strongly supported Romanias bid to become an EU member, but says that the process of implementing EU funding has been slower than the government would like. He explains, Regarding EU funds, we have to admit that our absorption capacity is still low. We have started to use funds for agriculture, but, unfortunately, there is a serious delay with the projects for environment and for infrastructure. Responsible authorities need to be faster in attracting financial resources from the EU.
ROMANIA
Sector
Romanias borders have changed over the years, for example when the area formerly known as Bessarabia went to the USSR following a pact between Hitler and Stalin. That region now forms a large part of the Republic of Moldova. Romanias language, Romanian, a Romance language, is essentially the same as Moldovan, although the latter has undergone more inuence from Russian. While suffering from widespread poverty and an industrial sector crippled by its focus on exports to the Soviet Union, Romania has been working to develop a free-market economy, particularly since the communist government lost power in 1996. Previously the country had been ruled by communist dictator Nicolae Ceausescu, who was deposed in 1989.
Introduction
Its strategic location and Black Sea air and naval bases make it attractive to the alliance. In April 2005 Bucharest signed the EU accession treaty, paving the way for Romania to join the EU, which it did in January 2007. Romania has made great strides forward since it began to make the difcult transition to a market economy. After gradually building up its production and exports, Romania suffered a recession in the late 1990s which it emerged from in 2000 thanks to strong demand for its products in EU markets.
corn, barley, sugar beets, sunower seed, potatoes, grapes, eggs and sheep. Romanias leading industries are electric machinery and equipment, textiles and footwear, light machinery and auto assembly, mining, timber, construction materials, metallurgy, chemicals, food processing, and petroleum rening. The countrys industrial production rate grew by around 7% last year. Information and communication technologies and tourism are two new sectors with strong promise for Romania.
nationally for his anti-corruption efforts and for preparing Romania to join the EU. In 2005 he started the process of opening the les of the feared communist-era secret police, the Securitate. Romanias Prime Minister since December 2008 is Emil Boc, President of the Democratic Liberal Party. Widespread poverty as well as corruption and red tape are a legacy of the past which the government is working hard to combat. The government welcomes investment in the growing private sector.
ROMANIA
INFRASTRUCTURE
Total length of railway network (km) Total length of roads (km) Fixed-line telephony access lines (mn) Mobile telephony users (mn) Fixed broadband internet connections (mn) 20,648 81,693 5.04 28.6 2.5
ECONOMY
GDP (ROL mn) 503,959
GOVERNMENT
Government form Republic Chief of state Traian Basescu Head of government Emil Boc Legislative power Two Parliamentary Chambers (Chamber of Deputies and Senate) Executive power Government led by Prime Minister appointed by the countrys President Cabinet 18 ministers Elections Presidential elections every 5 years (latest Presidential elections scheduled for November 2009), Parliamentary elections every 4 years (latest Parliamentary elections held in November 2008) Constitution adopted in 1991 and last amended in 2003 Legal System civil Suffrage 18
12,579
23,435
Budget decit (% ) revenues (ROL mn) expenditures (ROL mn) public debt (ROL mn)
Introduction
Energobit
Labour Force Labour Force by occupation: agriculture, hunting and sylviculture industry construction trade transport, storage and communications real estate and other services Unemployment rate (ILO, %)
9,944
Electricity (Mn kWh): 2007 2008 65,557 64,636 36.32 17.09 11,226 921
Natural resources arable land, oil, natural gas, salt, coal, iron ore, copper, bauxite, sulphur, lead, zinc, gold, silver, mercury
AGRICULTURE
Agricultural branch production (ROL mn, current prices) 2006 2007 2008 crop production 31,327 28,723 45,626 animal production 18,849 18,292 21,056 agricultural services 474 685 707
FOREIGN TRADE Export products machinery and mechanical appliances, electrical equipment, vehicles and associated transport equipment, textiles and textiles articles
Export countries Germany (16.5%), Italy (15.4%), France (7.4%), Turkey (6.5%), Hungary (5.1%), Bulgaria (4.1%) Import products chemicals products, base metals and articles of base metals, mineral products
ENERGY Primary energy (TOE, thou): Production coal 6,446 crude oil 4,645 natural gas 8,984 electric energy 4,222
Import countries Germany (16.3%), Italy (11.4%), Hungary (7.4%), Russian Federation (5.9%), France (5.7%), Turkey (4.9%) (All gures are from 2008, unless otherwise specied)
A Business-Friendly Environment for Domestic and Foreign Investors AmCham: Advocate for Local and International Business Signicant Investment Attractions in Key European Hub
There is a lot of potential in Romania, and investors should come here to see it for themselves.
Doina Ciomag, Executive Director Foreign Investors Council
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For new investors in Romania, Doina Ciomag recommends Greeneld projects and mergers and acquisitions as high potential choices now that the privatisation process is virtually over. Romanias large domestic market and skilled workforce are two of its advantages for investors. The FIC also wants to upgrade Romanias international image. Doina Ciomag concludes, We feel that Romania at times has a negative image, which is a misconception. We want to make more people in the EU, particularly in the business and political hubs of London and Brussels, aware of the real Romania. Our members are ambassadors for our country. There is a lot of potential in Romania, and investors should come here to see it for themselves.
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AmCham
Dening the organisations strategy, Anca Harasim says, Our approach to government is not to criticise, but rather to identify problems and offer solutions to address them. We are clear and can articulate the main issues businesses are facing, for example concerning labour or the regulatory environment. Founded in 1993, AmCham Romania has made its mark in the countrys business sector. It organises networking events, including meetings with representatives of international organizations like the International Monetary Fund, The World Bank, EBRD and publishes information of interest to the business community on its website or in its publications. Its directory is the best instrument to promote member companies and allow them to make contacts with potential partners. Concerning Romanias investment leads, Anca Harasim says, Companies that come to Romania are attracted by its market size, geographical position, quality of the workforce, as well as its membership to the European Union and NATO. She cites information technology, pollution control, electrical power systems, defense industry or building products/infrastructure as particularly strong growth sectors. She concludes, Interested investors should take the time to come here, spend a few days on the ground, and assess the potential for themselves.
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countries concerning protection for investors, and has bilateral diplomatic relations with 177 out of the 191 United Nations member states, plus the Holy See, the Sovereign Military Order of Malta and the Palestinian National Authority. Romania is a member of the UN and of many other international organisations, including the OSCE, the Council of Europe and International Organisation of La Francophonie. Romania has established free trade agreements with EFTA and CEFTA countries as well as with the EU, and has been a World Trade Organisation member since 1995.
a leading destination for foreign direct investment in 2008 in the Ernst&Young Attractiveness Survey South-East Europe: An Emergent FDI Destination in Europe. Romania has stable labour relations, a legal environment that meets EU criteria (including Acquis Communautaire implementation), and a strong scal code. Romania offers world-class nancial services, and its banking sector is 80% foreign owned. Concerning infrastructure, Romania enjoys advanced telecom services that include well-developed mobile networks in GSM systems, and its transport infrastructure is being steadily improved to meet EU standards. Its industrial infrastructure, including for the handling of oil and petrochemicals, is already highly developed. A signicant advantage for investors in Romania is the support of EU funding for key industries, and the government welcomes European know-how and technologies. While the Romanian economy has been hurt, as have the economies of its neighbours in the region, by the global nancial crisis, industry has been gradually regaining its footing during the last few months, largely thanks to growing exports of cars to EU countries. Indeed, the scal stimulus introduced in many EU countries to support
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Romania is also continuing to streamline its state-owned companies to prepare them for privatisation. The national freight railway company CFR Marfa has announced that it will make nearly half of its workforce 8,500 of its 17,400 employees redundant within the next year, in order to beef up the companys nancial situation and prepare it for privatisation. Halving the workforce would guarantee the companys nancial stability. Recently, Minister of Transportation and Infrastructure Radu Berceanu announced that the state should expect billions of euros for the company. A key task for the government is to reduce the budget decit, and Romania is receiving advice and support from various EU groups to help it reach this goal. The council of EU economy and nance ministers (EcoFin) recently opened excessive decit procedures for ve EU states, including Romania, and issued recommendations on measures to be taken in order to get the budget decit below the 3% of GDP threshold. The EcoFin council set January 7, 2010 as a deadline for taking corrective measures, and called on Romania to reduce its decit below the 3% of GDP threshold by 2011. During the rst half of 2009, Romanias total external debt increased by 2.8% compared to the previous year, amounting to 57.2 billion. However, the major part of the increase occurred in May and was attributed to the 4.8 billion loan from the IMF. Had it not been for this loan, total external debt would have shrunk by 2.6 billion in May, following a 2.1 billion outow of short-term capital and a 0.6 billion drop in mediumand long-term deposits of non-residents.
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Bucharest: Historic Cultural Centre Becoming Base for International Business Cluj-Napoca: Dynamic Business Hub and Gateway to Transylvania Timisoara: Hub of Western Romania
Cities of Romania
Cluj-Napocas business environment is a dynamic one, and the citys diversied economic activities have transformed the city into Romanias biggest economic centre after Bucharest.
Sorin Apostu, Mayor of Cluj-Napoca
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the 1400s was the home of merchants from all over the world, and today has many art galleries, antique shops and coffeehouses.
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Cities of Romania
and professional institutes, the worlds rst institute of speleology, and Romanias richest botanical gardens. It is also the gateway to the unspoiled mountains and forests of Transylvania. The city has ambitious growth plans. It will access more than 80 million in EU funding, which it plans to use to rehabilitate local schools and the municipal hospital, among other projects. Sorin Apostu explains, In the longer term, I have in mind the consolidation of the Cluj Metropolitan Area. We need to know where we want to go and what we have to do to get there. The mayor is very condent that Cluj-Napoca will achieve its goals. He concludes, Three companies from Cluj have conquered Western markets: Terapia (pharmaceuticals), Jolidon (lingerie) and Farmec (cosmetic products), and a fourth one Clujana is about to re-conquer Western markets. Our successful businesses are creating a very positive image abroad for Cluj-Napoca and for Romania.
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The Timisoara area is known for its highly qualied workforce, excellent medical services, and low land prices in areas just outside the city centre. A planned new airport between Timisoara and Arad will stimulate the citys development. Timisoara urgently needs more infrastructure investment to help it make the most of its business and tourism potential. An ancient trading centre, the city was settled in Neolithic times and was also occupied during the Roman Empire. In the 14th century the city was the residence of Charles I of Hungary. From 1552 it was held by the Turks until the Austrians took it in 1716. After the Treaty of Passarowitz in 1718, the city and the region, known as the Banat of Temesvr, were governed from Vienna and colonised with non-Magyars, mostly Swabian Germans. The city withstood a siege by Hungarian revolutionaries in 1848. Occupied by Serbia in 1919, it was allotted by the Treaty of Trianon to Romania in 1920.
textiles, farm machinery and implements, chemicals, plastics, footwear, and foodstuffs. Recent foreign investment in Timisoara includes a new Ibis hotel which the Accor group plans to begin building next year. US group Advent International, with branches in 15 countries, has invested 8.17 billion in Romania and managed 200 takeovers there worth a total 23.83 billion. Sebastian Tcaciuc, Director Advent International Romania, recently recommended the Timisoara region and western Romania in general. He said, In the west of the country, foreign investments continue to come in, and growth is higher than in other areas in Romania.
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Ministry of Public Finance Making Sure EU Funds Go to the Right Places Central Bank Governor Condent About Future Financial Sector Fundamentals Remain Solid
Finance
The global nancial crisis had a positive effect in making investors more aware of how companies were operating, and we have seen that investors have quite a positive opinion of Romania. When this crisis is over, Romania will have the momentum which we have created with EU structural funds, and we will be ready to go on.
Gheorghe Pogea, Minister of Public Finance
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funds as well as EU funding will be directed towards infrastructure projects. Energy is another sector which will be the target of signicant funding. The Ministry of Public Finance works in close co-operation with the banking sector and investors to make sure everyone is aware of Romanias possibilities. Gheorghe Pogea concludes, The nancial sector is much more developed than it was even two years ago. The global nancial crisis had a positive effect in making investors more aware of how companies were operating, and we have seen that investors have quite a positive opinion of Romania. When this crisis is over, Romania will have the momentum which we have created with EU structural funds, and we will be ready to go on.
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Finance
The Governor points out that Romania has a very strong nancial services sector, dominated by banking and operating according to EU standards. Foreign capital has played a major role in the nancial sector, with investors including Socit Gnrale, Erste and ING, among many others. More than 92% of the sector is private capital and of this around 70% is foreign capital, he says.
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Since the previous report, the Romanian financial sector has faced a volatile international financial environment, intensified risks, deterioration of FDI in emerging European economies, and capital market shocks. Nonetheless, the banking sector has managed to cope well with the pressures, and EU structural funds are continuing to fuel Romanias economy, particularly concerning badly needed infrastructure projects. Credit risks associated with a shrinking economy, declining external demand, household loans granted to lower income borrowers who are having difficulty in paying them back, and foreign exchange volatility are the main pressures on Romanias financial sector.
However, the banking sector has continued to register positive evolution of all indicators, according to the central bank.
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Finance
domestic and foreign currency liabilities to 15% and 35% respectively. The central banks decision to loosen the monetary policy aims at encouraging bank lending for ensuring sustainable financing of the economy. Two of the largest banks, BCR and Raiffeisen, responded quickly to the monetary authoritys decision and announced interest rate cuts for deposits and loans.
mentation has been strong, says John Lipsky, the IMFs First Deputy Managing Director.
agreement, parent banks will boost the capital of their subsidiaries to maintain a 10% capital adequacy ratio. Romanias banking sector is currently 80% foreign owned. The European Bank for Reconstruction and Developments Board of Directors recently approved a 150 million financing package
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ROMANIA
for three subsidiaries of Raiffeisen International, including Raiffeisen Bank Romania, to help address the impact of the international financial crisis on the real economies of the respective countries. The agreement signed by our majority shareholder with EBRD reflects our long-term commitment to the region. We considered it was a good opportunity to strengthen the banks capital in order to respond to current challenges of the Romanian market, says Steven van Groningen, President, Raiffeisen Bank Romania.
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Finance
Volksbank
The shareholders of Volksbank Romania (VBR) decided in 2000 to invest in Romania in a so called Green Field Operation to create a Romanian Bank following the Cooperative Banking Idea, which is well appreciated in Western Europe.
This Cooperative Banking Strategy of our grand shareholders (VBAG, BPCE, DZ, and WGZ) which focuses on the needs of qualitative and individual services of Private Individuals & SMEs supported during 2006 2008 the dynamic growth of our bank. Based on the long experience of the grand shareholders VBR focused on highly standardised credit products, combined with the most modern software applications, which allowed VBR to build a positive market image, especially in Private Individuals mortgage lending. The focus on this product was driven by the long-term client relationship strategy to become a generation bank - this means that Volksbank may be the bank of the grandparents, parents, children, grandchildren. A long-term product was used to build trust and condence into the partnership and advisory services of the young, motivated and well-trained staff of VBR. The investments in outlets and training in modern banking operations led to the implementation of one of the most sophisticated Internet Banking Systems (VBR received Best Bank 2008 Award & Most Performing Electronic Banking Award 2009), which allows clients to perform nearly all banking services from anywhere. Via the organic growth VBR achieved a market share of approximately 6% (based on total Romanian banking assets). As one of the top 5 Romanian banks VBR estimates for the next 2 years (considering the impact of the world economical crisis) increases in Risk provisions but still good protability. In the future protability will be certainly more and more supported by no-risk income (day to day business operations and fee income from intermediation of funds, insurances, consumer loans, credit cards, etc). The potential of new no-risk business leads to the assumption that the forecasted 2009 prot (approx. 46 - 48 Mio Euro before tax) can also be achieved during the following 2 years Tel: +40 (0) 21 303 9300 www.volksbank.ro
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In Romania, small firms generally are self financed, which is not the case in most other European markets. Aurel Saramet says, In the EU, small businesses are sustained 70% by bank loans. Romanian banks are beginning to develop a new strategy to allow SMEs to have an easier access to credit. Romania is a very strong market for this. One issue to overcome is that in Romanian tradition accepting loans is not considered very honourable. The Fund and local Banks are trying to educate people here about developing a business with the support of a loan, he explains.
The Fund is also active in co-financing EU funding agreements. We dynamise EU funding for Romania, Aurel Saramet says. The Fund is also managing the new Prima Casa (First House) programme, launched by the government to help mainly young Romanians purchase homes. The Funds main focus remains Romanias business sector. We are here to support entrepreneurs, Aurel Saramet concludes.
FNGCIMM Str. Lulian Stefan, nr 38, sector 1, Bucharest Tel: +40 21 310 18 74 Fax: +40 21 310 18 57 www.fngcimm.ro
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Finance
an investor and the banks letter of guarantee. In this case, the guarantee percentage is 100% of the loan and of the banking letter of guarantee in 2009 and 80% during 2010-2013.
FGCR-IFN SA Occidentului St. 5 Sector 1, Bucharest Tel.: +40 21 312 5463 Fax: +40 21 312 5419 ofce@fgcr.ro
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UNIQA Asigurari
UNIQA has a preferred partnership with Raiffeisen Bank, the companys main shareholder, to design new products, including life insurance. UNIQA began as a life insurance provider and is now moving back into life insurance coverage. UNIQA Asigurari sees itself as a benchmark insurance provider whose efforts can benet the insurance sector overall. UNIQA Asigurari is also a strong supporter of local community service projects. Ileana Horvath is very positive about UNIQAs future in Romania. She explains, We offer security. We are here to develop a strong business and to be a trustworthy and long-term partner for our clients. For local clients or foreign investors, we offer the same high quality services in Romania for which UNIQA is known in all its markets.
UNIQA Asigurari, the newest member of UNIQA Group, one of the most trusted names in insurance in Europe and a top player in Central Europe, has ambitious growth plans in Romania. UNIQA entered the Romanian market by acquiring a local company last year and is already ranked among the top ve players in the local insurance sector.
A current goal for the Romanian operation is to implement UNIQAs high standards in every aspect of the business. UNIQA is known for its exceptional service and reliability. The UNIQA Group, based in Austria, is active in 20 markets and achieved revenues of around 5.8 billion in 2008, with prots of around 90 million. The group serves more than six million clients with around 13 million contracts.
Bld. Dacia, no. 30, sector 1, Bucharest, 010413 Tel: +40 21.212.08.82 Fax: +40 21.212.08.43 E-mail: ioana.pasca@uniqa.ro www.uniqa.ro
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Making Romanian Industry More Competitive National Chamber of Commerce and Energy: Dynamic Advocate for Private Sector Bucharest Chamber Ready to Assist Foreign Investors Ideal Base for Trade-Oriented Industrial Operations
International investors should investigate opportunities in Romania. There are strong investment opportunities in agriculture, real estate, infrastructure, transportation and other sectors.
Mihail M. Vlasov, President Romanian Chamber of Commerce and Industry
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the integrated development of the textiles sector; promoting industrial clusters; supporting research and development; and bringing Romanias industrial sector up to EU standards. Foreign direct investment in Romanias industrial sector has been rising rapidly, from 5.1 billion in 2004 to 9 billion in 2006, 7.2 billion in 2007 and 9 billion once again in 2008. The EU (particularly France and Germany) has accounted for 84% of this FDI. Investments have covered a diverse range of sectors, from auto parts production to IT, furniture making, biodiesel production and others. According to the ministry, Romania will improve its capacity of absorbing direct investments, especially in the sectors of car components, IT, electronic sub-ensembling, household appliances, bearings, furniture and wood, the production of biofuels and others.
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National Chamber of Commerce and Energy: Dynamic Advocate for Private Sector
The Romanian Chamber of Commerce and Industry (RCCI) plays a major role in stimulating the growth of Romanias private sector. As Mihail M. Vlasov, President, explains, the RCCI serves as a hub for county chambers of commerce throughout the country and functions as an important liaison between chambers of commerce and the Romanian government. The RCCI has also formed ties with international chambers of commerce to help enhance Romanias position on the global business map, and it also plays a major role in helping to nd funding for business ventures in Romania.
The international business community needs to take a closer look at Romania, and the RCCI can help potential investors check out what Romania has to offer. Mihail M. Vlasov says, International investors should investigate opportunities in Romania. There are strong investment opportunities in agriculture, real estate, infrastructure, transportation and other sectors. Addressing the reputation for corruption, which many associate with the region, he adds, Corruption in Romania revolves around petty crime, the plague of a formerly communist country. Contrary to what some people abroad may believe, Romania has some well-intentioned government ministers who do their job honestly and well.
and hosting top guests from abroad visiting Romania at high protocol functions. The RCCIs objectives are to play a key role in helping Romania achieve seamless EU integration, to lobby for Romania at EU institutions through its representative ofce in Brussels and in meetings with other EU member states, to assist Romanian companies to meet EU standards, and to identify EU programmes which can bring benet to the Romanian business sector through the RCCI. The RCCI strives to inform its members about all EU directives, regulations, decisions, information and statistical data applied in other member states which directly inuence the Romanian business community. Mihail M. Vlasov believes that the Romanian government still needs to do more to support the activity of the business community and chambers of commerce, but he is very positive about Romanias future. As far as business is concerned, anything is possible in Romania, he concludes.
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Port Constanta
Romanias industrial sector is diverse and has a long history of success in foreign markets. As a member of the EU, CEFTA, EFTA, and the World Trade Organisation, Romania offers privileged conditions for exports, as well as access not only to the countrys large domestic market but also to around 500 million customers in nearby markets.
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(6%), France (5.7%), Turkey (4.9%), Austria (4.9%), Kazakhstan (4.6%) and China (4.2%). The agriculture sector accounts for around 3% of Romanias GDP, and while the country imports substantial quantities of grain, it is largely self sufcient in other agricultural and food products. The EU is Romanias main trade partner concerning agricultural and food products, accounting for 64% of Romanias exports of agricultural and food products and 54% of its imports.
factory in Romania, the countrys rst Greeneld cosmetics enterprise, to a 600 million investment by Peugeot in an engine factory in Romania. According to the National Bank of Romania, FDI in Romania rose from 1.94 billion in 2003 to 9.08 billion in 2008. In the rst ve months of 2009, FDI totalled around 3 billion. Also in the rst ve months of this year, Romania registered over 3,100 new companies with foreign participation. Meanwhile, Romanian enterprises are investing abroad. Romanian furniture company Mobexpert opened its rst hypermarket in Bulgaria in Soas residential district of Lyulin in a 10 million project, while Romanian electronics retailer Altex entered the Bulgarian market last year. Romanian sanitary and electric equipment distributor Romstal has entered the Serbian market, acquiring local equipment distributor Doming for 10 million.
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Frigotehnica
36
While Frigotehnica has no need of partners to finance its expansion into facility management, Nicolae Bara aims to look abroad for a skilled and experienced manager for this new activity. He says, Frigotehnica has a very good name internationally, and we are probably going to look beyond Romania. I like to bring in specialised people from Europe, offer them a good salary and a good market, and then I find that they end up liking Romania. Frigotehnica is also currently looking to access EU funding to finance training of its personnel.
Norway, and Switzerland, working in partnership with global refrigeration and air-conditioning sector leader Carrier. Carrier is our partner here in Romania; they were very interested in the chance to use our people and technology in different applications and in different countries, Nicolae Bara explains. He adds that Frigotehnica has also completed projects in Lebanon and Nigeria; Frigotehnica sends in skilled personnel but is also committed to employing local human resources for its projects abroad.
called on Frigotehnica in Romania and now employs the company for projects in other markets. We offer our customers new types of services, and this is the reason they invite us to go with them into other countries. Our clients are our best form of advertising, Nicolae Bara says proudly. In Romania, the Frigotehnica logo featuring a bear is very well known throughout the country, and Nicolae Bara is committed to maintaining the superlative image of the Frigotehnica brand. He serves as President of the Romanian Refrigeration Association and notes that since 1994 Frigotehnica has been sponsoring an annual international symposium on refrigeration. To potential customers in Romania, Nicolae Bara concludes, We do not just sell equipment; we sell a complete package. We invite clients here to visit our facilities and our call centres, to see that we offer a true package deal. This is the difference between Frigotehnica and any competitor which cannot offer these services. Our new facility management service will put us even more ahead of the competition.
Frigotehnica 2-4 Torentului Street, Bucharest 2, 021806, Romania Tel: +40 (0) 21 250 34 41 Fax: +40 (0) 21 250 79 20 www.frigotehnica.ro ofce@frigotehnica.ro
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The Bucharest CCI recently organised a seminar on renewable energy in partnership with the UK Embassy in Bucharest. The Bucharest CCI encourages Romanian companies to develop, in co-operation with EU rms, production facilities for hydro, solar and wind power as well as for developing equipment for green energy production. The Bucharest CCI organised a forum on this subject with the Austrian Embassy in April this year, Sorin Dimitriu says. The Bucharest CCI is currently involved in nine major projects, many of which it is developing with foreign partners. The Bucharest CCI is ready to assist foreign companies in Romania. Supporting technology transfer is one of our priorities, Sorin Dimitriu says, noting that the Bucharest CCI operates a Technology Transfer Centre.
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Dynamic Ministry Building a New Romania Infrastructure and Construction Projects Continue to Attract FDI
I invite investors domestic and foreign companies to tender because all these contracts we have established need to be fullled. We need contractors and they need us.
Vasile Blaga, Minister of Regional Development and Housing
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Investments Company (C.N.I.) -- work hand in hand with the private sector through a tender process. The Minister notes that the tourism and construction sectors have huge potential in Romania. He says, For tourism, this country has many wild, completely undeveloped areas, and world class monuments like the worlds oldest basilica -- older than any in Rome! And we have many, many kilometers of roads to be built, for example connections to the European Corridor 4 transport corridor which crosses Romania. We have a lot of money for projects for infrastructure, and this is a great opportunity for Romania and for the companies.
Model of a sports hall built through one of the national programmes managed by MRDH
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projects decreased by 15% in the second quarter of the year, and value added, generated by construction, saw its first negative performance, with a 14.2% decline in the second quarter. Recent infusions of funding from the IMF, the World Bank and other financial groups, as well as continued private sector investment in the infrastructure and construction sectors is expected to lead to a turnaround by 2010.
The new supply of industrial spaces in Bucharest shrank by some 90% in the first quarter of 2009 compared to the previous year, resulting in a shortage of available space. Only some 40,000 sq m were delivered during the first half of the year, as compared to 350,000 sq m the first quarter of 2008. The total stock of industrial space reached 920,000 sq m at the end of June this year and will probably remain unchanged to the end of the year. New schemes entering the market are almost exclusively built-to-suit and mainly service logistics firms. The residential sector continues to be the most affected segment of the local construction and real estate market, but the launch of a new state home loan programme, Prima Casa, is expected to jump-start the residential housing market by the end of the year and to stimulate new construction activity. The construction materials market has of course been affected by the decline in new projects, but the market is expected to recover by next year. Domestic
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production of bricks continued on a downward path during the first five months of the year, but the segment still presents opportunities for long-term investors. A group of Spanish investors is considering investing 18 million in a brick plant in Bustuchin, Gorj county, which would employ around 100 people and produce some 400 tonnes of bricks per day, mainly for export. A Chinese company is negotiating with local authorities to build two ecological brick plants in Motro, with a total value of 28 million.
Energobit
Windfarm at Fantanele
development plan for Bucharest subway involves investments of about 8 billion and includes a rail ring around the city. The government has also announced that it will sign a contract with the consortium formed by the construction companies Vinci and Aktor for the construction and operation of the 55-km BrasovComarnic motorway, a major section of the Bucuresti-Brasov motorway which is to link the capital with the countrys western border. The project will begin in mid-2010 and the consortium will operate the motorway for 26 years. Another project in the works is a bridge across the Danube-Black Sea waterway. The maritime ports administration of Constanta launched a tender in early August for the contract, budgeted at 23 million,VAT not included. The ports administration also launched a bid for supervision of works at the
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ROMANIA
bridge, with an estimated value of 1.6 million, VAT not included. Water infrastructure is also being upgraded. In late June the European Commission approved a 189 million project to upgrade water infrastructure in Brasov county, an initiative scheduled for completion in 2013.
while Italian diversified group Euroholding, which partners with a number of local firms, will complete two construction materials plants in Timisoara (western Romania) this year; the company will invest 11.5 million in a prefab plant and 4.2 million in a concrete station. Euroholding has also signed a 20 million contract to deliver and install bridge piers on the Timisoara-Arad highway. In another vote of confidence in Romanias future, Investment fund Charlemagne Capital has launched a new fund dedicated to office development projects in Romania and Bulgaria. Clearly international investors are betting on the recovery of Romanias infrastructure and construction sectors in the near future.
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Tehnologica Radion
Theodor Berna, General Director, says that his goal is to remain the leading enterprise in Romanias construction sector. He adds that one reason for Tehnologica Radions competitive edge is that it has 15 production units (aggregates quarry, natural aggregates, concrete, asphalt mixture, bituminous emulsion, prefabricates) just for its own needs. In fact, Tehnologica Radion manufactures a diverse choice of construction materials for its own use and for the Romanian market. We do not like to depend on others, he explains, noting that the companys focus on self sufciency is one reason it can offer very attractive prices for high-quality work.
Tehnologica Radion SRL Strada Dambovita no. 59-61 Sector 6 Bucharest , Romania Tel: +40 372 118 300 Fax: +40 372 118 330 www.tehnologica.ro contact@tehnologica.ro
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Ministry Promoting Ambitious E-Romania Development Programme ICT Sector Offers Signicant Growth Potential
IT & Telecommunication
Romanias number one priority is to digitalise its telecom and IT infrastructure. Our objective is to have full telecom coverage throughout the country and to have a fully digital telecom network by the end of 2011.
Gabriel Sandu, Minister of Communication and Information Society
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IT & Telecommunication
Minister Gabriel Sandu explains, Our Ministry, which is part of the government of Prime Minister Emil Boc, has very clear objectives: we want to raise the telecom and IT sectors contribution to Romanias GDP from 11% to 15%. In addition, everything we do contributes to the governments national strategies for information technology, our e-strategy for a digital Romania.
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ROMANIA
have a fully digital telecom network by the end of 2011. Romania has already transformed around 60% of its telecom infrastructure from analogue to digital. We are at the same time focussing on broadband, including WiMAX technologies, and hope to have a fourth-generation network, the Minister says. The Ministry oversees some dynamic public sector enterprises, including Radiocom, which specialises in television and radio production. Radiocom has very ambitious goals of passing to the digital system over the next few years, the Minister points out. Radiocom has already received some 60 million in investments for the period 2010-2011.
for Information Society Services, which is charged with implementing the national e-government strategy; and the Institute for Digital Research, which is involved in research and in controlling cyber crime, and also administers the .ro and .eu domains in Romania. It will also administer Romanias biggest information portal, which will include 3,500 cities and villages. The Ministry also oversees the National Institute for Telecommunications Research, which formulates telecom development strategies.
economy in Romania through a 60 million investment but around 300 million is needed to achieve all the programmes goals. We have already linked 255 communities through broadband but want to extend this to another 1,000 communities and at least 6,000 new access points, the Minister explains.
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IT & Telecommunication
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ROMANIA
and TV services in Romania is around 17-19 per month, which is signicantly lower than the western European average of 60-80 per month. Romanias information society is clearly still in its early stages of development, as Europes Digital Competitiveness Report released in August this year reveals; it states that some 64% of Romanian citizens have never used the Internet.
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High-Potential Agriculture Sector Gets Stimulus from EU Funding Agriculture Sector Could Feed over 80 Million
Agriculture
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ROMANIA
do not have. In the framework of this agency, we also have an agency dealing with the breeding of horses.
Focus on forestry
The forestry sector has been designated a key activity for Romania and the ministrys name was recently changed to include mention of forestry as a reection of its importance to the national economy. The National Forest Administration, founded in 1991, plays a major role in the sectors development by devising and implementing a national forestry strategy, managing state forests, managing private forests on a contract basis, and ensuring that development is sustainable. According to Ilie Srbu, The National Forest Administration has a certain autonomy in comparison to other agencies. It is overseen by the ministry but it has a mechanism for self nancing which other agencies
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22 million people and its agriculture sector also has signicant export potential. Romania could provide enough agricultural products for an estimated 80 million consumers, the former minister says. Nevertheless, the agriculture sector is facing a number of challenges. In 1989, after the revolution, Romanias large farms were broken apart and agricultural production stalled. After Romanians began to farm their own land again, the agriculture sector became very, very fragmented, with many small farms, and Romania became a net importer of agricultural products instead of a net exporter, Ilie Srbu says.
Beer and wine production are other high-potential activities in Romanias agriculture sector, according to the minister. He says, Dutch, French, and German investors have already gotten involved in Romanias wine industry and we are also attracting investors from Spain, Italy and the UK in our agriculture sector. The value of Romanias wine market amounted to some 500 million in 2008, up 11% over 2007, and Romania ranks fth in the EU in terms of vineyard surface, with 186,900 hectares of fruit-bearing vines. Food processing, including by small and medium sized enterprises, and agro- and eco-tourism are other activities with strong growth potential in Romanias agriculture sector, according to the ministry.
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ROMANIA
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Agriculture
Products include grains, rice, corn, sugar beets, soybeans, meat, fruit, dairy products, vegetables, olive oil, and wine Romania is Europes second-biggest wine producer. Romania is also expanding its forestry and shery activities, and in general is working to bring the sector up to EU standards.
The agriculture sector has been lagging behind other sectors concerning FDI; it has attracted less than 1% of total FDI directed to Romania to date. The country urgently needs more support for its agricultural activities; foreign investment could help lower ination, helping to make euro adoption a feasible target for Romania. Supporting agriculture could also reduce poverty in rural areas, home of around 45% of Romanias population.
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ROMANIA
Agro Chirnogi
SC Agro Chirnogi SA 17, Principala Street Chirnogi Commune Calarasi County, 917025 Chirnogi Baneasa Business & Technology nr 42-44 Bucharest Ploiesti Av. Park 3rd oor District 1 Phone: +40 (0) 21 361 05 31/32 Fax: +40 (0) 21 361 05 30/37 groupmanagement@toneli.ro
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Ensuring Romanias Energy Security Energy Sector Strategy Focuses on Efciency and Renewable Energies
Energy
The energy sector of Romania is being restructured, and the primary goal for this reconstruction is to ensure Romanias energy security.
Adriean Videanu, Minister of Trade, Industry and Energy
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ROMANIA
energy crisis which we have seemed to forget lately that will hit the world in the next decades, will have the smallest possible impact on Romania. In line with the ministrys strategies for Romanias trade and industrial activities outlined in the industrial development plan for 2009 to 2012, the government is focusing on encouraging strategic alliances concerning technological, industrial, economic and financial issues in the energy sector; supporting research and development; and bringing Romanias energy sector up to EU standards.
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ROMANIA
network, which includes a pipeline opened in 2002 that links Romania with Ukraine and Bulgaria. Romania now has the ability to transport up to 988 Bcf of natural gas per year, and has boosted its capacity for underground storage of natural gas to 159 Bcf. Romania is also rich in coal deposits, with an estimated 4 billion short tonnes, much of which is lignite and sub-bituminous coal. Forced to shut down mines and lay off miners, the country has adopted a policy of attempting to extract as much coal as possible from existing mines.
street lighting, schools, and a range of public buildings including sports centres, museums and libraries. Above the municipalities are the 42 counties, responsible for co-ordinating the actions of the municipalities. Local authorities are fairly autonomous with regard to budgets. Local taxes and a share of income tax form the bulk of the budgets of municipalities. Only 36% of local government expenditure comes from central government. Partnerships with municipalities can serve as an opening for foreign investors and companies interested in the Romanian market.
toe this year, and recent reports state that Romanias energy output fell by 7.7% on the year in the first seven months of 2009, while imports decreased by an annual 39.3%. To fill the gap, Romanias largest oil company, Petrom, recently began production at its new Delta 6 and Lebada Vest wells on Histria XVIII block in the Black Sea; according to Petrom, the production of the two new wells together accounts for 10% of Petroms daily offshore production. Petrom is currently operating five producing commercial fields: Lebada Est, Lebada Vest, Sinoe, Pescaru, and Delta. The countrys offshore production stands at 32,000 boe/d or about 18% of PETROMs domestic production.
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gas emissions by 8% relative to 1989 levels by 2008-12. It has also ratied the Energy Charter Treaty. The countrys 1998 Energy Law, which lays down the principles for energy sector restructuring and privatisation, contains some elements placing a responsibility on utility companies to promote energy efciency. Romania has the potential to achieve emission reductions through the use of cleaner fuels and renewable energy in the power and heat generation sectors and the modernisation and rehabilitation of hot water transmission networks; investments in energy saving measures in the residential and service sectors; reductions in methane emissions in gas transportation and distribution networks; and improved waste and agricultural management. The involvement of foreign companies and investors is crucial for Romania in achieving these goals. Funds have been provided under the EU PHARE programme to promote energy efciency improvements in small and medium-sized
enterprises (SMEs) in Romania. Energy efciency standards have been introduced for most household appliances and for buildings; power sector modernisation has been supported from a fund created through a levy on electricity and heat sales.
greened, i.e. sales are linked to investments that reduce emissions of greenhouse gases and/ or increase carbon sequestration, so called Green Investment Schemes (GIS). One benet of greening is that Romania, by selling a part of its existing surplus allowances (estimated at around 350 million), can invest in emission reduction projects up to and beyond 2012. Indications are that Romania could mobilise funds in the range of 476.64 million to 544.73 million from these transactions, with the prospect of leveraging similar amounts from the private sector. Romania has requested the World Bank to assist in developing GIS.
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that variable speed drives (VSDs) could result in savings of 5% in total electricity consumption. Particularly promising candidates for electric motor efficiency improvements are public water pumping stations and pumps in the petroleum industry. In both cases, savings are possible both through more appropriate sizing of motors and through the use of VSDs. Various pilot projects have indicated the potential for savings. Reductions in power consumption of 40-50% were achieved in the pumps at a petroleum refinery through the use of VSDs. In a water pumping station in Craiova, 18% savings were achieved through the
use of VSDs. A similar project is also under way at Targu Mures as part of the ongoing joint implementation agreement between Romania and the Netherlands. The World Bank will continue to invest with both the public and private sectors in energy generation, transmission and distribution in Romania to help the country meet EU standards, upgrade its energy grid, and develop renewable energies through the banks Sustainable Energy Initiative. The World Bank states, The Bank will work to help address Romanias high energy intensity challenge (which is negatively affecting the economys
competitiveness) by promoting energy efficiency projects, for municipalities, industries and households.
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Energy
EnergoBit
Headquarter in Cluj
best prices. Our clients and partners have learned that they can expect the best from us. Presently, EnergoBit forms a group of 400 employees from which more than 120 are specialised engineers. The group has its headquarters in Cluj, 4 branches in the country and 2 factories. EnergoBit Group offers the full solution in electricity: produces electric equipment, realises turnkey projects with a specialisation and high involvement in wind farms projects, provides solutions concerning energy efciency and renewable energy, supplies energy, produces equipments for urban, architectural and industrial lighting and it is specialised in interior lighting.
EnergoBit Group S.A. St. Taietura Turcului no 47/11 RO 400221 Cluj-Napoca, Parcul Industrial Tetarom I Phone: +40 (0) 264 207 500 Fax: +40 (0) 264 207 555 ebit@energobit.com www.energobit.com
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ROMANIA
CET Govora
the companys production facility; the mines resources ensure CET Govoras needs for the next 40 years. Because of its reliable source of power, CET Govora was launched as a pilot project and has proven the potential of an independent company operating in Romanias private sector. Mihai Balan says, CET Govora is the rst company of its kind that came out of a local authority. Many companies have followed our example. Today, there are 35 CET companies, all united under the COGEN Romania umbrella, of which I serve as president. CET Govora has strengthened its ties to the EU by forming partnerships not only with COGEN Europe but also with Euro Heat and Power in Brussels and German company LISEGA. We formed these partnerships in order to help implement a strong regulatory environment in Romanias heat and power sector, he points out.
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Energy
Investment appeal
Mihai Balan is very positive about CET Govoras prospects, and plans to list the company on the stock market once the global nancial crisis has lessened. He says, This company has very strong growth potential as well as the capacity to get involved in other elds. We are trying to attract an investment fund which can nance some of the projects we are planning. We hope that once the nancial crisis has passed, we can move forward with these efforts. Possible projects include biomass initiatives and efforts to use some of the waste ash from CET Govoras production, for example in road building. Outlining CET Govoras investment appeal, Mihai Balan says, We have a very good allocation of CO2. We also have a very close source of fuel, which means we dont have transportation costs. We also have a stable market in this area; around 96% of the city of Valcea is connected to our distribution network. We are working on a project to build a second coal-fuelled power station. CET Govora signs bilateral contracts with other power producers as allowed by Romanias energy laws. Mihai Balan explains, We sign bilateral contracts with as many producers as possible, working only with producers which we view as trustworthy. We also sign contracts through which we can obtain energy at a lower rate than our selling price.
Govora has access to non returnable EU funding for both environmental issues and economic development. Mihai Balan says that he is hoping to access around 50 to 60 million, with which he hopes to reduce emissions not only of CO2 but also of other harmful emissions, and to reach 75% efciency. We are already ahead of other companies in reaching these goals, even though others began before we did. Our goal is to be rst in receiving nancing, and we are well placed because our colleagues have been slower than we have been, he explains. Mihai Balan adds that CET Govora is committed to improving Romanias international image by demonstrating the potential of a reliable, well-run Romanian company.
Industriilor, St. 1 240050 RM Valcea, Romania Tel: +40 250 739 623, Fax: +40 250 739 491
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ROMANIA
DG Petrol
on the upper Danube and by rail and road. We are investing in the whole logistics chain, Dan Igniska says. He explains that DG Petrol handles transport in Romania, as well as to Bulgaria, Serbia, and is looking to form partnerships in other countries. DG Petrol will continue to provide high-quality services and to expand regionally, and it welcomes the support of investors. Dan Igniska says, We are a dynamic, serious, ambitious company which is a reliable supplier and which provides quality services. We have long-term projects, and rather than wait for the market to pick up, we will continue to develop. We have recently undergone a branding campaign to strengthen our position; this has included the rebranding of our lling stations and creating DG PETROL own top trade mark products. We are constantly trying to improve the quality of our products and thus to help our clients improve their businesses.
ONE STEP AHEAD DG Petrol S.R.L. 22, Miroslavei Street, 060127, Bucharest Tel: +40 (0) 31 805 25 65 - Fax: +40 (0) 21 411 50 05 www.dgpetrol.ro - ofce@dgpetrol.ro
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Thriving Pharmaceuticals Sector; Healthcare Facilities Being Upgraded Pharmaceuticals Sector Offers Tremendous Growth Potential
Health
Our mission is to ensure that both government and pharmaceuticals companies share a vision of what Romanias healthcare sector should become.
Dan Zaharescu, Executive Director Association of International Medicines Manufacturers
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Health
considerable price increases have also been registered in the analgesic therapeutic segment. Distributors and importers say that the increase in price is primarily due to the fall of the Romanian leu against the euro, as most OTC medications are imported.
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ROMANIA
Strength in numbers
Now ARPIM is working to strengthen its influence with the government as well as to ensure long-term positive developments for Romanias pharmaceuticals sector. Dan Zaharescu explains that ARPIMs mission is to ensure that both government and pharmaceuticals companies share a vision of what Romanias healthcare sector should become. Challenges Romanias healthcare sector currently faces include a need for more healthcare professionals, particularly since many are leaving Romania to find better paid employment elsewhere in the EU. Another challenge is that the government has lowered prices for medicines below average EU For any pharmaceuticals company entering the Romanian market, membership in ARPIM is the right choice. There is strength in numbers, and through ARPIM companies can be represented in dialogues with healthcare authorities as well as in the process of upgrading the regulatory environment for Romanias pharmaceuticals sector, Dan Zaharescu points out. ARPIM is working to promote EU standards, international best practices, and transparency in the healthcare sector, and has already adopted an ethical code concerning promoting medicines to healthcare professionals and interaction with patient associations.
ARPIM helps its members achieve their goals in Romania. One success story is GlaxoSmithKline, which distributes products throughout Europe from its manufacturing facility in Brasov. Dan Zaharescu believes that in spite of the current challenges there are tremendous opportunities for pharmaceutical companies in the Romanian market. He says, Per capita consumption of pharmaceuticals products in Romania is around 100 per year, compared to the EU average of around 430 per capita per year. Given Romanias large population, an increase in expenditure would have a significant impact on companies revenues.
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Transport Infrastructure Currently Being Upgraded Union Serves as Advocate for Road Hauliers
Transport
We always strive to give added-value services to all our members. We are a true one-stop shop. We offer lower prices on goods, and we are stepping up imports to reduce prices still further.
Radu Dinescu, Secretary General of Romanias National Union of Road Hauliers
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ROMANIA
Thanks to its strategic location at the crossroads of major European transport corridors, along with its access to the Black Sea, Romania has the potential to become a major European transport hub. Due to insufcient investment, maintenance and repair, the countrys transport infrastructure does not yet meet the needs of Romanias economy, but the government has placed a high priority on upgrading Romanias road, rail, waterway and air transport facilities.
EU structural funds and support from the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development, and other international organisations are assisting Romania in its drive to upgrade its transport infrastructure, and signicant opportunities are available for European companies. Romanias Ministry of Transports, Constructions and Tourism (MTCT) oversees the countrys transport infrastructure and awards assets for concession.
approximately 30,000 km village roads serving rural communities. National roads are administered and managed by the National Company for Motorways and National Roads (RNCMNR) within the MTCT. District (county) roads are administered by County Councils and managed by each countys technical department. Communal roads are administered and managed by village councils aided by county councils technical ofces.
Public-private partnerships
To keep its infrastructure development on track, the government is actively pursuing new external nancing as well as public-private partnerships. The communal road network has recently begun receiving support from EUs SAPARD program and the World Banks Rural Development Project. Romanias railway network includes 22,298 km of track, of which 36% is electried and 27% is double track. In 2003, the railways carried 8.1 billion passengers per km in addition to 17.3 billion tonnes per km of freight, and rail transport accounted for 45% of all passenger and freight movement in the country. The government launched a railway reform program in 1996 which included separating the state railway company
Road network
Romanias total road network totals about 78,000 km. Public roads in Romania (excluding street networks) are classied in a three-tier system: national (main) roads (14,500 km), district roads (36,000 km), and communal roads (28,000 km). In addition there are
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Transport
Being Upgraded
(SNCFR) into ve companies, which were subsequently merged into three: an infrastructure arm (CFR), a freight arm (Marfa), and a passenger arm (Calatori), with the state as the sole shareholder in all three. The restructuring also created a regulatory agency (AFER) within the MTCT, in addition to the Ministrys railway department. The three railway companies own several subsidiaries, which sell services to them and to other purchasers. The MTCT has also licensed a few private rail freight operators, which share the use of the rail tracks for a fee. Private operators now have a 10%-15% of the rail freight market. Road transport competes aggressively with rail and has continued to gain in the share of the combined freight market (in terms of tonnage), and of the intercity passenger transport market (in terms of number of passengers). International trade is still important for Romanian railways with imports accounting for 11% of the trafc, exports about 6%, and transit about 1%.
The airport is embarking on Phase III of its development program, which will involve the expansion of the departure and arrival halls and of the boarding area. At the end of this phase (2010) the terminal will have a total of 24 boarding gates (13 equipped with jet ways) for the International Departure Hall, while the Domestic Flights Hall will gain ve more gates. The expansion will boost the airports capacity to 6 million passengers per year. A new terminal building (Henri Coanda 2) and a hotel are envisaged; the new terminal will be built at the east end of the current site and consist of four halls, each capable of handling 5 million passengers annually; by 2020 Terminal 2 alone should be able to handle the 20 million passengers per year the government anticipates. The terminal will be connected to the future A3 Bucharest - Bra-ov motorway, to the railway system and to the Bucharest Metro system; construction of a new metro link to the airport is moving forward. The construction of the second terminal is due to start in 2011.
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ROMANIA
control, to offer UNTRR members better conditions . UNTRR has been successful in promoting the implementation of measures favourable to transport operators in Romanias new scal code, and a current goal is to continue to upgrade the countrys transport regulatory network. UNTRR is also promoting continued investment in Romanias transport infrastructure.
One-stop shop
UNTRR serves as a one-stop shop for its members. Radu Dinescu says, We help members develop new activities and form partnerships. We also arrange discounts for our members and have had a one-year partnership with Mol Romania, which provides petrol cards for UNTRR member companies. We have also formed a partnership with two foreign companies, one in Hungary providing legal services based on success fee no upfront payment and one in Austria providing assistance in case of vehicle break down with full cost
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Promoting Romanian Tourism At Home and Abroad Undiscovered Treasure for Tourists; High-Potential Choice for Investors
Tourism
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ROMANIA
with a total value of around 200 million, and projects are also in the works in other areas of the country, from ski resorts in the Carpathian mountains to luxury hotels along Romanias Black Sea coast and ecotourism initiatives in Transylvania. International and domestic hotel groups have been investing heavily in Romania, Bucharest and beyond. Given the strong inux of foreign direct investment in Romania in recent years, the country has been upgrading its facilities and services for business travellers, and the ministry aims to continue to develop new business services and exhibition facilities. The Ministry of Tourism is committed to keeping this momentum going by continuing to launch new projects and helping to make Romanias tourism sector an even more attractive target for international investors. Through its website, available in English, the Ministry of Tourism provides up-to-date information on recent developments in the tourism sector.
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Tourism
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Voronet monastery
even features a Triumphal Arch on the lovely Soseaua Kiseleff, a boulevard longer than the Champs-Elyses. Bucharest has already invested around 10 million in renovating its historic city centre. In Bucharest and throughout the country, hotel and resort complexes are being improved and expanded, and business services in top hotels in major cities meet world-class standards.
Unspoiled Transylvania
Transylvania (where the blockbuster lm Cold Mountain was shot to take advantage of its dramatic, unspoiled landscapes) is considered an excellent investment choice for tourism projects, including eco-tourism initiatives. The government welcomes projects which protect the countrys natural beauty while also bringing in new visitors. Spa tourism is another opportunity, since Romania has a very well developed system of spa centres, some of which date back to Roman times. A 300 million project to upgrade the countrys spas began in 2007.
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Tourism
The Ramada Majestic has earned a stellar reputation among international travellers for its friendly, professional service and for providing excellent value. For visitors to Bucharest, the Ramada Majestic is the right choice.
Ramada Majestic Bucharest Hotel Calea Victoriei No. 38-40, Sect. 1, Bucharest, Romania Phone: (+40 21) 310 27 15/20/35/46/72 Fax: (+40 21) 310 27 99 reservations@ramadamajestic.ro www.ramadamajestic.ro www.ramadainternational.com
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Luxurious amenities
The JW Marriott Bucharest pampers guests with the most spacious rooms and suites in the city (an average of 36 sq. m), all featuring an array of amenities and around-the-clock butler service. All 379 rooms and 23 suites are equipped with broadband Internet connections, an ergonomic work area, direct telephone lines, a at-screen television, cable TV, a mini bar, a safe, an iron and ironing board, a separate tub and shower, a lounge area and more. Beds are the new Revive Bed by Marriott, which guarantees a restful night. The strategy is to be warm towards the customer without being intrusive. The hotels ve restaurants and lounges are among Bucharests nest.
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Tourism
Exceptional service
The JW Marriott Bucharest attracts visitors from all over the world looking for the very best accommodations and service.. Many heads of state (including the King of Spain and former US President George W. Bush) have stayed in the JW Marriott Bucharests opulent presidential suites, while executive travellers usually opt for one of the hotels special business suites, each having a bedroom, living room, dining room, and meeting room.
convivial bar, ve well-appointed conference rooms for up to 450 guests, and the New Montana Health Club with its heated pool, Jacuzzi, tness equipment and spa services. To get a whiff of the city stroll through the old streets of Bucharest, discover turn-of-the-century architecture, or stop at a small restaurant to taste local treats. When youre done, pay a visit to the Peasant Museum, an island of authentic peasant traditions. Take a tour of the Parliament Palace, the second-largest building in the world, located across the street from the JW Marriott. Have a rst-hand experience of monumental architecture, and have a grasp of what the communist era meant. If you have more time discover the Botanical Garden for a glimpse of the most unusual ora, or take a 20-minute ride to the Mogosoaia Palace, on the city outskirts. The palace was built in the 17th century and is to this day a masterpiece of architecture.
JW Marriott Bucharest Grand Hotel Calea 13 Septembrie no. 90 Bucharest, 050726 Romania Phone: +40 21 403 00 00 Fax: +40 21 403 00 01 marriott.bucharest@marriotthotels.com www.marriott.com/BUHRO
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Tourism
Avis Romania
AVIS Romania 9 Mihail Moxa St., Bucharest, 1 Tel: +40 21 210 4344 Fax: +40 21 210 6912 ofce@avis.ro www.avis.ro
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