The Public-Private Partnership Law, promulgated: Let’s see the tens of billions euro projects that waited for this law

de Dordia Tereza | 27.11.2016 .

ppp-239x300Public-private partnership projects (PPP) amounting tens of billions of euros could find sources of financing and implementation after the PPP Law was promulgated Wednesday by President Klaus Iohannis.

Project from the fields of transport infrastructure (especially highways), energy, healthcare, as well as projects of local interest have been for several years on the list of potential public-private partnerships (PPP) of the Government and local authorities.

Hospitals

Out of the numerous PPP projects included among the Government’s priorities after 2010 (the year when the first version of the law was adopted), the most urgently seems now to be the construction of six regional emergency hospitals in Timisoara, Cluj-Napoca, Tirgu-Mures, Iasi, Craiova, Bucharest.

The current Minister of Health, Vlad Voiculescu, recently cited these projects.

Highways

Also, the future highways can benefit from new PPP projects, if they are reasonably dimensioned, unlike the bad example of Comarnic – Brasov highway that has not found the funding.

The southern and northern road rings of Bucharest, Ploiesti – Buzau – Focsani, Tirgu-Mures – Iasi – Ungheni highways and especially the European priority Pitesti – Sibiu, all totaling about 600 kilometers are even since 2011 on the list of potential PPP projects.

Energy

Also, energy projects evaluated at nearly EUR10 billion could fall within the PPP framework, according to the official statements made in the recent years.

The completion works for Cernavoda nuclear units 3 and 4 are estimated at four billion euros and the controversial hydropower plant Tarniţa – Lăpuşteşti – at 1.1 billion euros. The modernization of Romania’s major power plants also involves high costs.

The gas pipeline project AGRI (Azerbaijan – Georgia – Romania) was also found at a time on the Government’s list of PPP projects. The project remained on paper, but not primarily because of the lack of the PPP law.

Many local PPP projects are pending, like the road bridge over the Danube between Braila and Tulcea.

They could also resuscitate some mega projects such as the Danube – Bucharest Canal, whose benefits in terms of navigations, tourism and agriculture (irrigation) were as praised as they were forgotten.

The law

The law regulates the conclusion and operation of the public-private partnership that aims to create or only rehabilitate or expand an asset or assets intended to provide a public service and / or operate a public service.

The law provides the mechanisms for cooperation between the public and the private partners, to implement a public project on a relatively long period of the ongoing contractual relations so that the private partner can recover the investments and obtain a certain profit.

The PPP project funding is mainly made from private funds with the risks shared between the public and the private partners in proportion to the capacity of each party to assess and manage risks.

It uses different capacities of the authorities, respectively the private companies that make investments that the state would not be able otherwise to carry out.

Track record

The Parliament passed in 2013 a bill initiated by the Ponta government. At the time, President Traian Basescu requested the reexamination of the law, contesting the article allowing the unilateral termination of contract by the Romanian State.

This provision was considered both illegal and harmful to business, an obstacle in attracting investors.

In 2014, the Parliament passed again this piece of legislation, but two parliamentary groups (PNL and PDL) have challenged it then on the Constitutional Court of Romania (CCR), which ruled that, indeed, some provisions are unconstitutional.

Specifically, CCR decided that Article 38, paragraph 1 are unconstitutional. It stipulated that “on exceptional grounds related to the national or local interest, if applicable, the public partner:

  • may unilaterally amend certain provisions of the public-private partnership contract, where this possibility was included in the tender documentation in a clear, precise and unequivocal way, and without altering the generic nature of the original contract or in any other case of unilateral change of contract provided by the Government Emergency Ordinance no. 34/2006, approved with amendments by Law no. 337/2006, as amended and supplemented, which is applied properly;
  • may terminate the public-private partnership contract under the law and with prior notice to the private partner and the project implementation company,” recalls Agerpres.

The legislator resumed debate on this project in 2015 and the law was adopted on November 7, 2016 by the Chamber of Deputies.

 

Publicat la data de 27.11.2016 .

Lasa un comentariu


SIMILAR ARTICLES

Adrian N Ionescu

Draft law/Companies, forced to declare who controls them behind offshore front companies. Reporting threshold, reduced to 10,000 euros

Banks and other credit institutions will report all transactions worth more than 10,000 euros equivalent, according to a draft law launched by the National Office for the Prevention and Control of Money Laundering to public debate The threshold is to be reduced from 15,000 euros Foreign transfers are also targeted as well as "the clarification of some aspects of the transactions made ...
Read more »

Adrian N Ionescu

CFA Romania: Analysts’ confidence in economy has improved, but is far from peaks registered last year and in 2015

Macroeconomic confidence index The macroeconomic confidence index of CFA Romania increased to 608 points in April, considerably above the previous month (by 4 points), but still far from the value at which it capped last year before the elections, as well as the maxim levels registered in 2015, according to a report by the CFA Romania Association The increase was mainly due to ...
Read more »

Adrian N Ionescu

Romanian Commodities Exchange accuses an attempt to “nationalize natural gas trading” behind which is Iulian Iancu

The management team of the Romanian Commodities Exchange (BRM) launched on Wednesday a public call to PSD to reject what they called an "attempt to nationalize natural gas trading", namely a proposal that would have been presumably initiated by Deputy Iulian Iancu (photo) and would prohibit BRM from trading the natural gas On the same subject, USR announced on Wednesday that it is asking for ...
Read more »

Mariana Bechir

Members of Chamber of Deputies approved salary increases provided by OUG 2/2017: + 20% for doctors, policemen and civil servants. Students lose free travel with CFR but receive scholarships during vacation

Deputies voted in favour (232 votes in favour, 21 against and 1 abstention) of the bill approving the Government Emergency Ordinance 2/2017 on fiscal and budgetary measures According to the ordinance adopted in January, as of June 2017, there will be a 20% increase of the gross amount of the basic salaries paid to the staff of the territorial offices in charge of SMEs and cooperatives, the ...
Read more »

Victor Bratu

Prevention Law: Infringers get maximum 90 days to resolve irregularities and authorities have new obligations

Infringer entrepreneurs will have maximum 90 calendar days to correct the irregularities identified, according to the draft Prevention Law discussed on Thursday by the Government The investigating official shall conclude a "report attesting the findings and sanctions for the contravention, which includes the sanction of warning applied and to which a remedial plan is attached, in line with the ...
Read more »

MAINS

Prime Minister Grindeanu about 2017 budget: 5.2% economic growth, 815 billion lei GDP, 253 billion revenues

Prime Minister Sorin Grindeanu said on Sunday evening on Romania TV that the budget deficit in 2017 will fall within the set target of 3%, ... Read more

Back to the lesson of 2008-2014! Essential viewpoints about the type of growth we choose

The National Institute of Statistics announced the final value of GDP for 2014 at 668,143.6 million lei, in current prices, representing a growth rate of ... Read more

Trade deficit in 2016 is close to 10 billion euros, driven by imports of chemicals, fuel and food

The trade deficit in the first eight months of this year was EUR 6,133.8 million, about 28% higher than the same period of the last ... Read more

”Digital-Schweitzer” Romania: IT specialists explain why citizen is stuck between super computerized institutions

Ciolos government promised a revolution in reducing state bureaucracy, official emphasis being put on digitization and electronic communication, institutions being required to be transparent. This ... Read more

<
cheap ray ban sunglasses outlet cheap oakley outlet sale cheap Ray Ban sunglasses online cheap Ray Ban sunglasses outlet uk Cheap Ray Bans Outlet cheap ray bans sale cheap ray ban glasses Ray ban sunglasses for cheap cheap ray ban sunglasses cheap ray ban glasses outlet cheap ray ban glasses cheap oakley sunglasses outlet Wholesale oakley sunglasses cheap oakley sunglasses online occhiali da sole ray ban clubmaster oakley Italia ray ban italia
fake id california fake id online maker texas id best state for fake id fake id review illinois fake id fake id usa reddit fake id how to get a fake id how to get a fake id buy usa fake id buy fake id fake school id connecticut fake id cheap fake id best fake id fake id maker fake id god fake id website Fake id generator Fake id Fake id maker reddit fake id/ how to make fake id fake drivers license/ best fake id