Romanian Economy Overview Investment Projects in Infrastructure

Romanian Economy Overview

Investment Projects in Infrastructure

Romania General Overview

Inflation rate

Annual inflation rate

In Central and Eastern Europe

dec dec

%

%

annual average rate

annual rate

Mth. rate

Source: NBR

Source: NBR

Romania General Overview

RatingsStandard & Poor's Ratings Services Long-term foreign currency sovereign credit rating of Romania raised to 'BB+' from 'BB'The long and short-term local currency sovereign credit rating were raised to 'BBB-' and ‘A-3‘, from 'BB+' and 'B' The outlook is stable.Fitch Ratings Long-term foreign currency IDR: affirmed at 'BBB'; Outlook changed to Negative from StableLong-term local currency IDR: affirmed at 'BBB+'; Outlook changed to Negative from StableShort-term foreign currency IDR: affirmed at 'F3' Country Ceiling: affirmed at 'A-' (A minus) Moody’s Investor ServiceLong-term foreign currency: 'BAA3'; Long-term local currency: 'BA1';

Foreign Investments

In the last period, more and more companies are interested to invest in the Romanian market, at several economical sectors. The start was given in Bucharest, but this will continue with others big cities: Timisoara, Cluj, Iasi, Constanta, Brasov, Craiova, Oradea. To sustain such a development is needed a very good infrastructure. In 2007 were invested more than 10 billions euros.

GDP 2005 2006 2007 2008 2013

Bln Ron 288 342.4 390.8 442.8 711.2

Main Infrastructure ProjectsHighwaysTill 2013 will be finished more than 5 highways in all the country which will bind most important cities with the capitals of important UE countries.

Bucuresti – Pitesti – Sibiu – Deva – Timisoara – Nadlac

Bucuresti – Constanta

Bucuresti – Brasov – Targu-Mures – Cluj Napoca – Oradea – Bors

Bucuresti – Giurgiu

Bucuresti – Ploiesti – Focsani

RoadsWill be rehabilitated the most important County roads between the main cities with population over 200.000 habitants. In 2007 were rehabilitated DN1, DN5, DN6, etc. Around the most important cities was stated the contraction of circle roads.

Railways

BridgesIn 2007 were started the reconstruction projects for bridges over Danube (Calafat–Vidin) and Prut (Radauti Prut–Lipcani).

Airports in progress and planned

HIGHWAYS PLANNED

December 2007

HIGHWAYS PLANNED

December 2008

HIGHWAYS PLANNED

December 2013

Main Infrastructure Projects in Bucharest 2.756 km – water distribution network

2.541 km – sewerage network

2.947 km – gas distribution network

1357 km – heating network

18.565 km – electric network

13.796 km – telephony network

368 km – Public transportantion lines

1820 km – 5340 roads

Passages in construction Basarab Passage – over the railway, from Blvd. Titulescu to Grozavesti Bridge

Obor Passage – for tramway lines over the crossroads

Baneasa Under Passage – from Bd. Aerogarii to Blvd. Ion Ionescu de la Brad

Colentina Passage – at Doamna Ghica

Piata Sudului Passage

Razaoare Passage

13 Septembrie Passage

Main Infrastructure Projects in BucharestProjects started in 2007

Rehabilitation of more than 3% of the main streets

Modernization of tramway lines (ex. 32, 34, 35, 7, 12, 11, 44, etc.)

changing of the gas conducts medium and low pressure

Rehabilitation of water lines and sewerage

Rehabilitation of Water Cleaning station from Glina – total value 92.989 mil euros

- ISPA founds (59%) - 55.083.966 EURO- BERD loan (11%) - 10.000.000 EURO- BEI loan (27%) - 25.000.000 EURO- State budget (3%) - 2.905.000 EURO

Objectives:

Rehabilitation and supplementation of the existing water line

Rehabilitation and supplementation of the mud line in concordance with the necessity of the water line

The including of new hoarding tank for collecting the excess rain waters

The demolishment of deteriorated buildings

The installation of new line of water alimentation and sewerage for Glina, Catelu and Manolache villages

Baneasa Airport Renovation

Infrastructure Projects - Financing

Financing instruments – non reimbursable founds

- PHARE

- SAPARD

- ISPA

Private financing – from specialized banks for the Public Sector

- ex. part of Volksbank Group – Dexia Komunalkredit

Externalization of services – by concession to third part for a number of years (at least 5 or 10) – with the obligation to invest a certain amount

Infrastructure Projects

Financing founds from ISPA and SAPARD– more than 250 millions euros per year- rechnical Projects preparation of rehabilitation of Fundulea – Fetesti railway- rehabilitation of Baneasa – Fundulea railway- rehabilitation of Fundulea – Fetesti railway- the enlargement of DN5, Bucuresti – Giurgiu- construction of circle road – Adunati Copaceni- rehabilitation of Highway Bucuresti – Cernavoda- rehabilitation of DN6, Craiova – Drobeta Turnu Severin- construction of circle road to Sibiu, at highway standards - rehabilitation of DN6, Drobeta Turnu Severin – Lugoj- fezability study for circle road Lugoj and infrastructure of access bridge over Danube at Calafat - Vidin- technical assistance for rehalibitation of railway Ungaria - Simeria

Financing found from Phare – more than 60 millions euro- the construction of circle road – Tecuci - bridge reconstruction over Prut at Radauti Prut – Lipcani- ecological project for Danube and transport facilities- cross border point rehabilitation at Calarasi – Silistra for international traffic- rehabilitation DN6, Timisoara – Cenad- maritime infrastructure projects: acquisition of new navigation equipments and new system for traffic management on Danube, twinning- railway infrastructure projects: acquisition of new testing equipments and systems

Private Financing – References Infrastructure Projects

Austria’s No. 1 in public finance, Kommunalkredit Austria has been working in partnership with the public sector for many years.

The Kommunalkredit Group operates on an international scale. Its activities are focused primarily on Austria and Switzerland as well as the countries of Central, Eastern and South-Eastern Europe.

Traditionally, Kommunalkredit has always been a partner for Austrian local authorities and municipalities. The growing internationalization of its business, the enlargement of the European Union and the increasing demand for expertise in the development of public financing models have significantly changed and extended Kommunalkredit’s markets.

The product portfolio extends far beyond the “classic” offer of loans and leasing facilities. As a sought-after partner in financial budget optimization, Kommunalkredit provides a whole range of products, comprising receivables purchasing, loan portfolio analyses as well as structured products, all tailor-made to the requirements of the individual client.

The Kommunalkredit Group also cooperates successfully with the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).

Contact Dexia Kommunalkredit Romania

Roxana Lazar Chief Executive Officer Bucharest, 42 Calea Dorobantilor, 1st DistrictPhone: 0040 21 20 19 400Fax: 0040 21 20 19 [email protected]


Tirgu Mures Ivenio, Romania

Project: Speed Baler

Closing: May 2006

Term: 10 years

Total Size: EUR 2,605,000

Structure: Credit Facility

Function: Lender

Romanian Railways Ministry of Transport

Project: Financing of rolling stock Railway maintenance

Closing: 2006

Total size: EUR 144,000,000

Term: 12 years

Structure: Loan

Function: Lender


Bucharest – Constanta LineRomanian Ministry of Transport

Project: Rehabilitation of railways

Closing: 2006


Term: 10 years

Structure: Loan

Function: Lender

TAROM (National Romanian Airline)Romanian Ministry of Transport

Project: Purchase of 2 aircrafts

Closing: 2006


Term: 13 years

Structure: Loan

Function: Lender


City of Bucharest - 2nd District

Project: financing infrastructure works, extension of water and sewage network

Closing: 2007

Total size: RON 242.600.000

Term: 20 years

Structure: Investment loan

Function: Lender

City of Iasi

Project: financing local infrastructure projects

Closing: 2007


Term: 20 years

Structure: Bridge Loan + Bond Issues

Function: Lender


City of Bucharest-4th District

Project: financing infrastructure works, extension of water and sewage network

Closing: 2007


Term: 18 years


Function: Lender

Sibiu City and County

Project: Sibiu Airport modernization

Closing: 2007


Term: 25 years


Function: Lender


Constanta Municipality

EUR 10 milioane

Mures County

EUR 4.35 milioane

Giurgiu Municipality

EUR 3 milioane

Targu Mures Municipality

RON 52 milioane

Arad Municipality

EUR 5 milioane

Constanta County

EUR 8.6 milioane

Alba County

RON 50 milioane

Focsani Municipality

RON 50 milioane

Iasi Municipality

RON 200 milioane

Lugoj Municipality

EUR 10 milioane

Romanian State

EUR 350 milioane

http://upload.wikimedia.org/wikipedia/ro/9/96/Stema_Romaniei_mare.png

Private Financing from Volksbank Romania

- CITADIN - company from Iasi, part of the Municipality for the acquisition of equipments for roads habilitation and contraction – 1.3 million euro

- Hidroconstructia – finance for current activity 11.2 million euros

Documents

Romanian Economy Overview Investment Projects in Infrastructure