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Looking for business information on Romania?Emerging Markets Information Service (EMIS) delivers deep, rich company and industry information, alongside the relevant news, research and analytics that allow professionals to make profitable decisions faster. EMIS covers more than 100 emerging markets, including profiles from over 1.7 million companies, content and research from over 20,000 sources, as well as proprietary news and analysis, all delivered via an interface that is available in over 21 languages.

Profiles and financials of 85,000+ Romanian companies

420+ publications from local and global content providers

Industry news, research and analysis in Romanian and English

Mergers and acquisitions in Romania

Macroeconomic and statistical information

Financial markets data

Information on tenders and projects in Romania

EMIS is available also for other countries of Emerging Europe, Middle East, Africa, Asia and Latin America. Please contact the address below for details.

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inTRoDUCTion•Today’sRomania:RecoveringfromCrisisand LookingtotheFuture 4• PresidentBasescuConfidentaboutEconomyin2012 6•Romania’sFactFile 7•GermanRomanianChamberPromotingBilateral BusinessTies 8•Bucharest:Romania’sBusinessandCulturalHub 9

BUSinESS & inVESTmEnT oPPoRTUniTiES•MinistryDedicatedtoImplementingl20billion inEUFunding 12•TopTargetforFDI 13•BlueAir 14•RomaniaBackfromtheBrink 15

FinanCE•FinanceMinistryHelpingtoEnsureContinued MacroeconomicStability 17•CentralBankGovernorCitesRecent EconomicProgress 18•BankDepositGuaranteeFund 19•BankingSectorMeetingEUStandards 20•Volksbank 21•RuralCreditGuaranteeFund 21

PoWER & EnERGY•Elektromontaj 23

Romania

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Thisguideisprotectedbycopyright.Allrightsreserved.Thispublication,oranypartthereof,maynotbereproduced,storedelectronicallyortransmittedinanyform,withoutthepriorwrittenpermissionofEuropeanTimes.Everyefforthasbeenmadetoensureinformationcontainedinthispublica-tioniscorrectandup-to-date.Theauthorsandpublisheracceptnorespon-sibilityforanyerrorsitmaycontain,orforanyloss,financialorotherwise,sustainedbyanypersonusingthispublication.

iT & CommUniCaTionS•MakingRomaniaaKeyPlayerinGlobal InformationSociety 25•LeadingtheWayinICT 26•NetworkOneDistribution 27•Radiocom 28

TRanSPoRT•PublicPrivatePartnershipsEncouragedby TransportMinistry 30•TopPriority:UpgradingTransport Infrastructure 31•GrampetGroup 32

inFRaSTRUCTURE•ConstructionSectorGettingOutoftheSlump 34•€5.7billioninEUFundingforInfrastructure 35•Con-A 35•AlpineRomania 36

ToURiSm•PuttingRomaniaontheGlobal TourismMap 38•RamadaMajesticBucharestHotel 40•Romania’sTop10ToSee 41•StarlightSuitesHotel 42•Hertz 43

Looking for business information on Romania?Emerging Markets Information Service (EMIS) delivers deep, rich company and industry information, alongside the relevant news, research and analytics that allow professionals to make profitable decisions faster. EMIS covers more than 100 emerging markets, including profiles from over 1.7 million companies, content and research from over 20,000 sources, as well as proprietary news and analysis, all delivered via an interface that is available in over 21 languages.

Profiles and financials of 85,000+ Romanian companies

420+ publications from local and global content providers

Industry news, research and analysis in Romanian and English

Mergers and acquisitions in Romania

Macroeconomic and statistical information

Financial markets data

Information on tenders and projects in Romania

EMIS is available also for other countries of Emerging Europe, Middle East, Africa, Asia and Latin America. Please contact the address below for details.

For a free trial contact us: cs-ro@securities.com

Euromoney Polska S.A., ul. Prosta 69 00-838, Warszawa, Polska

Visit our site!www.securities.com

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RomaniaTHEEUROPEANTIMES

Today’s Romania: Recovering from Crisis and Looking to the FutureRomania: a democratic republic and dynamic free market economy at the crossroads of the EU, the Balkans and fast growing markets to the east. Thanks to its strategic location and access to both the Black Sea and the Danube, the land that is now Romania has been a trade hub for centuries, and today’s Romania is building on its many advantages to position itself as a thriving modern centre for business, trade and tourism.

Romaniahas21.6millioninhabitants,givingittheEU’sseventhlargestdomesticmarket.Romaniaalsoliesatthe heart of some of the fastest growingmarkets intheworld;itsharesitsborderswithUkraine,Bulgaria,Serbia, Hungary, Moldova and Ukraine. Romania’scapitalcity,Bucharest, isconsideredoneofEurope’stop locations for business, while the country’s othermainurbancentresaredevelopingtheirownsuccessfuleconomicactivities.ThePortofConstanta,Romania’smaintradegatewaytotheworld,isthebusiestportontheBlackSea.RomaniaisalsocrossedbythreemajorpanEuropeantransportcorridors,includingCorridor7alongtheDanube,andhasdevelopedseaandinlandwaterwayportservicesaswellasanextensivenetworkofairports.

MemberoftheEUsince2007

Romaniaaimstobeaproductivememberoftheglobaleconomy. Romania is a member of the EU (since2007),NATO, theWorldTradeOrganisation and theUN, among other international organisations, andhas bilateral agreements with 177 out of the 191UNmemberstates.RomaniaenjoysfreetradeaccesstotheEU,CEFTAandEFTAmarkets.

Romania has long been a popular target for FDI. Inaddition to its free trade agreements and strategiclocation, Romania offers a vast pool of highly skilledhuman resources with particularly strong expertise inforeign languages, ICT, engineering and cuttingedgetechnologies. Labour costs are low andEnglish is thelanguageofbusiness.

Romaniaalsohasrichnaturalresourceswhichincludefertile farmland, oil and gas, ample supplies ofwater,the potential for renewable energy (including windpower),andgreattourismappealthankstoawinningcombinationofunspoilednaturalbeauty,beaches,spasandhistoriclandmarks.Therecentdiscoveryofmajoroffshore gas fields in Romanian Black Sea waters hasdrawn significant international investor interest, and

© Bogdan Carstina | Dreamstime.com

Calea Victoriei in Bucharest

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Introduction

© Olimpiu Alexa-pop| Dreamstime.com

FDI continues to flow in to Romania’s infrastructure,tourism,ICT,financialservicesandindustrialsectors.

EUstructuralfundsfuellingmassiveprojects

RomaniahascreatedanarrayofincentivestoattractFDI,and state agency Romania Trade and Invest providesonestopshop investor services.Romania’s investmentappealincludesmassiveongoinginfrastructureprojectssupported by EU structural funds, state and local aidschemes,a16%flattaxrate,stablelabourrelations,EUstandards, a business friendly government, economicstability,oneoftheEU’smostadvancedtelecominfra-structures, and a highly developed financial servicessector dominated by leading international banks.ForeigninvestorsandcompanieshavemanyoptionsforenteringtheRomanianmarket,includingparticipatinginpublicprivatepartnerships.

Afterasevereslumpduringtheglobalfinancialcrisis,Romania’seconomyisgettingbackontrack.Romania’sGDP rose by 2.5% in 2011, driven by strong perfor-mance in the agriculture, construction and industrysectors. Observers are predicting continued growthfor the economy this year of around 1.5% to 2%.According to economic analysts BMI, the outlook fortheRomanianeconomyremains fairlybrightover thelong term. In particular, they cite the limited privatesector debt burden, flexible exchange rate and largeconsumermarket.

IMFmaintainscommitmenttoRomania

After a cabinet shift earlier this year, Romania’s newPrimeMinister,MihaiRazvanUngureanu,metwithIMFandEuropeanCommissionrepresentatives inFebruarytoreassurethemthatRomania’snewgovernmentwouldadhere to theagreements thecountryhad signedwiththeIMF,theECandtheWorldBank.ThecurrentIMFagreementprovides€1.6billioninsupportforRomaniaupto2013.Aftertherecentmeeting,JeffreyFranks,theIMF’srepresentativeinBucharest,commented,“Romaniamet all quantitative targets last year andwehaveeveryreasontoexpectthattheagreementwillcontinue.”

Challenges for the Romanian economy includesubdued demand in the euro area (Romania’s topexportmarket),transportinfrastructurewhichrequirescontinued modernisation, the need to speed up theprocess of absorbing EU structural funds, and somepoliticaluncertaintyasthecountrypreparesfornationalelectionsinNovember2012.

Onthepositiveside,domesticdemandcontinuestogrow,inflationandunemploymentaredeclining,financialstabilityhasbeenmaintained,andRomaniahasclearlyrecoveredfromtheworsteffectsoftheglobalcrisis.Thisyear,Romaniawillbethetargetofalmost€6billioninEUstructuralfunds,whichshouldhelpdrawFDIaswellashaveapositiveeffecton the country’s balance of payments. Today’s Romaniaoffersawealthofopportunitiesforinvestors.

Basarab bridge

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President Basescu Confident about Economy in 2012

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

Traian Basescu, President of Romania

President Basescu was elected for a second fiveyear term in 2009, at the height of the financialcrisis. Today, the president is very confident aboutRomania’sfuture.InaspeechhedeliveredonMarch12, he said, “Romania will be able to finance itself,both by drawing on European funds and by raisingmoney on internationalmarkets.We are convincedthat Romania can absorb more EU funds in 2012thanitdidin2011becausewehavealargernumberofprojectsapprovedbyourgovernmentandby theEuropeanCommission.Thiswillallowustofocusonjobcreation.”

Growthinsecondquarter

The president also highlighted Romania’s remark-able economic recovery. He said, “Romania hasbecomecredibleininternationalmarkets.Weshouldnolongerbeasworriedaswewerein2009and2010and even in the first part of 2011, when we couldnot borrow off the market. Now Romania can notonlyfinanceitselfbut italsohassomeprospects foreconomicgrowthinthesecondquarterof2012.”

President Basescu disagrees with predictions thatRomaniamayfallbackintorecession.Hesays,“Thewayinwhichtheresultsofthefourthquarterof2011were grossly misrepresented in the media left theimpression of recession looming ahead. This is nottrue.”ThepresidentcitedstrongperformancebytheRomanianagriculture sector in the thirdquarterof2011aswellasagrowthinindustrialoutput,construc-tion and services by the end of the fourth quarter.Henoted that public services and constructionhadreceivedgovernmentsupportovertheyear.

The president points to a growth pattern. He saysconfidently, “There should be no worries about areal recession. If you compare fourth quarter 2011withfourthquarter2010,youcanseeacleargrowthtrend.So,whyshouldwebescaredaboutrecession?Itistruethatthefirstquarterof2012willbeweakerbecauseofbadweather,butinvestmentsandservicestothepopulationwillrecoverinthesecondquarter.”

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Introduction

Romania’s Fact File

Location: CentralEurope

Capital: Bucharest(Bucuresti)

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

Climate: Temperate,fourdistinctseasons,similartonorth-

easternUSA

Population: 21.5million(2009est.)

Ethnic Groups: Romanian89.5%,Hungarian6.6%,Other3.9%

Religions: ChristianOrthodox87%,RomanCatholic5%,

Protestant5%,Greek-Catholic,Jewish,Unitarian

official Language:Romanian

Currency: RomanianLeu(RON)

area: total:237,500sqkm

land:230,340sqkm

water:7,160sqkm

Transportation: 62airports,railwaynetwork:11,385km,road

network:153,359km,waterwaynetwork:1,724km

Politics

Form of State: Semi-parliamentaryRepublicwithtwolegisla-tivebodies:SenateandChamberofDeputies

Legal system: BasedonEuropeanmodelsandConstitutionof1991

national Elections:Fall2012(parliamentary),Fall2014(presidential)

Head of State: PresidentoftheRepublic,currentlyTraianBasescu(re-electedonDecember6,2009)Romania’spresidentisallowedtoservetwoconsecutivefive-yearterms

national ThegovernmentisledbythePrimeGovernment: Minister,confirmedbytheParliamenton thenominationofthePresidentofRomania

Head of the ThePrimeMinister,currentlyMihai-RazvanGovernment: Ungureanu

main political SocialDemocraticParty(PSD),Democratic-parties: LiberalParty(PD-L),NationalLiberalParty

(PNL),DemocraticUnionoftheHungarianMinority(UDMR).

Economy at a Glance

GDP per capita: €5,693(2010est.)

GDP real growth rate:2.5%(2011est.)

GDP contributionsagriculture(12.3%),industry(37.8%),by sector: services(50%)

Total exports: €37.4billion(2010est.)

Export commodities:machineryandequipment,textilesandfootwear,metalsandmetalproducts,machineryandequipment,mineralsandfuels,chemicals,agriculturalproducts

Exports - Italy(17.2%),Germany(16.9%),Francemajor partners: (7.7%),Turkey(7%),Hungary(5.6%), UK(4.1%)

Total imports: €43.2billion(2008est.)

import machineryandequipment,fuelsandminerals,commodities: chemicals,textileandproducts,metals, agriculturalproducts

imports - major Germany(17.2%),Italy(12.8%),Hungarypartners: (6.9%),Russia(6.3%),France(6.2%),Turkey

(5.4%),Austria(4.8%)

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

Keysectorsofferparticularlystrongattractions

The IT sector offers particularlystrong appeal for investors inRomania.“TheITsectorhasbecomeone of Romania’s biggest sourcesofexportsand this sector is certainto continue to grow thanks to ourhighlyskilledworkers.Romaniahasalreadyproducedallkindsofspecial-isedsoftware,”RaduMericasays.HealsocitesinvestmentopportunitiesinRomania’sfastgrowingenergy,agri-cultureandinfrastructuresectors,allofwhichneedforeigninvestment,aswell as new technologies and knowhow.

Romania is supporting more andmore public private partnershipsin key sectors, in a move to create

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

evenmoreopportunitiesforforeigninvestors. The German RomanianChamber of Commerce is workinghardincooperationwiththegovern-menttoupgradeRomania’sbusinessenvironment, which is steadilyimproving.

The German Romanian Chamberregularly organises meetings andinformation sessions throughoutGermanytomakepotentialinvestorsawareoftheopportunitiesandchal-lenges of setting up a business inRomania. Radu Merica points out,“Romaniaisclosingthegapbetweenthis country and the EU average,andnow is the time to investhere.I urge German companies, par-ticularly small and medium sizedcompanies, to look into opportuni-tiesinRomania.”

Romaniaoffersexceptionaladvan-tages for German investors, RaduMerica believes. He says, “TheGermanandRomanianeconomiesare so different from each otherin many ways, that they comple-ment each other. Germany, oneof the world’s biggest exporters,hasahigh-techeconomy,basedonresearchanddevelopment,aswellascreativity.Romania,forthetimebeing,isacountrywhichstillneedsmore high technology and mod-ernisation,andinthemeantimewecanofferawelltrainedlabourforceat lower costs than in Germany.Romania can be an extension forGerman companies, particularlysmaller and mid-sized companies,which do not have the means tosetupoperations incountries likeIndia andChina. Such companiescan set up businesses and indus-trial operations here in Romania,at lowercosts ina locationnotfarfromtheirheadquarters.”

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Bucharest: Romania’s Business and Cultural HubBucharest, Romania’s capital city, is the country’s business and cultural hub as well as the main gateway to Romania for tourism visitors. In a location that has been inhabited since 500 BC, today’s Bucharest is a bustling, modern European urban centre with a population of 2.2 million. Bucharest attracted 2.1 million visitors in 2010, when Euromonitor International named it one of the world’s 100 cities most visited by foreign travellers. Last year, Bucharest was ranked one of Europe’s best bases for business in a study by property consultants Cushman and Wakefield. Served by two international airports and extensive road and rail links, Bucharest is easy to reach from anywhere in Europe and beyond.

ItisnosurprisethatatatimewhenmanyEuropeancitiesare reporting a decline in tourism arrivals, Buchareststilldrawsvisitors.Bucharest–knownas “LittleParis”attheturnofthe20thcentury–offerswidetreelinedboulevards, glorious Belle Époque buildings, parksandgardens,manyfine shops and restaurants, a richculturalscene,luxurioushotels,allkindsofentertain-mentoptions,andworldclassbusinessservices.

Historiclandmarksthroughoutthecity

Bucharest’s most famous landmarks include CaleaVictoriei(VictoryAvenue),builtin1692andrenamedin 1879 to honour Romania’s independence. Today,visitors can stroll along the famous street and seesomeof thecity’smostbeautifulbuildingsand sites,including the opulent 19th century CantacuzinoPalace and historic Revolution Square. Nearby areother famous landmarks: Romania’s former RoyalPalace, now housing the National Art Museum; thestunning Romanian Athenaeum, Bucharest’s mostprestigious concert hall; and beautiful 18th centuryKretzulescuChurch.

IntheheartofBucharest’shistoriccitycentre(CentrulVechialOrasului)istheLipscaniDistrict,datingfromthe 15th century and named for themany GermantradersfromLeipzigwhooncehadshopsthere.The

names of the district’s winding streets honour thecraftsmenwhoworkedhere:Blanari(furriers),Covaci(blacksmiths), Gabroveni (knife makers) and CavafiiVechii (shoemakers). Today, the Lipscani District isanupscaleneighbourhoodwith luxuryboutiquesandmanyrestaurants,museumsandartgalleries.

The 15th centuryOld PrincelyCourt andChurchwasbuiltbynoneotherthanCountDracula,whoissaidtohavekeptprisonersindungeonshere.Today,visitorscanexploretheOldCourtMuseum,whichdisplaysremnantsfromthecity’slonghistory:Dacianpottery,Romancoins,and theoldestknowndocumentmentioningBucuresti(Bucharest), dating from the 15th century. The 16thcentury Old Court Church nearby is the city’s oldestchurchandstillhassomeofitsoriginalfrescoes.

University Square (Piata Universitatii), bustling withcrowds and traffic, is one of the city’s most popular

Introduction

Unirii Square

© Marius Godoi | Dreamstime.com

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meetingplaces.Itislinedwitharchi-tectural landmarks, including theBucharest National Theatre, 18thcentury Coltea Hospital and itslovelychurch,andSutuPalace,nowthe home of the Bucharest Art andHistoryMuseum.Nearby is theUni-versityofBucharest,oneofRomania’sprestigiouseducationalinstitutions.

World’ssecondlargestadministrativebuilding

Parliament Palace, dating fromthe communist years, is the secondlargestadministrativebuildingintheworld after the Pentagon. Built inthe1980s, itnowhousesRomania’sParliamentandservesasaninterna-tionalconferencecentre.

Bucharest’smanymuseumshonourthe city’s long history. In additionto the Bucharest History Museum,visitors can explore the collectionsin the Dr. Moses Rosen Museumof the History of the RomanianJewish Community, theMuseum ofthe Romanian Peasant showcasingRomaniancraftsandtraditions,andthe National Art Museum, amongmanyothers.

WorldTradeCentre:idealeventvenue

TheWorldTradeCentreBucharest,thebiggestpropertydevelopmentinRomaniainthepostcommunistyears, is a world class venue fortrade shows, conferences andotherbusinessevents.The40,000sqmtradecentrecontainsstateoftheartadaptableexhibitionspace,offices, a conference centre, afour star hotel, retail outlets andrestaurants.

Sorin Mircea Oprescu, Mayorof Bucharest, aims to enhancethe city’s attractions for businessand tourism visitors aswell as forresidents. He says, “My ambitionis to bringBucharest closer to its

European counterparts. My pri-orities are infrastructuredevelop-ment and public services as wellasensuringhighqualityoflifeforthepeopleofBucharest.”

The mayor has overseen a numberof major infrastructure projects,includingtheBasarabOverpass,whichisstreamliningtrafficflows,aswellasambitious healthcare and educationinitiatives. Sorin Mircea Oprescuwelcomes foreign investors topartici-pate inBucharest’sdevelopment.He

says,“Wehaveasignificantnumberofongoingprojects.Manyofthese,suchas building parking facilities in thedowntownarea,need tobeachievedthrough public private partnerships.Bucharest will only get better as wecontinue to rehabilitate our archi-tectural treasures, implement moregreen areas and environmentallyfriendly technologies, and improvethe city’s infrastructure and services.Bucharest isanexcellentexampleofunity through diversity, a model fortheEuropeanUnion.”

© Bogdan Carstina | Dreamstime.com

Bucharest

Business & Investment Opportunities

•MinistryDedicatedtoImplementingl20billioninEUFunding

•TopTargetforFDI

•RomaniaBackfromtheBrink

“Many companies from Western Europe are already involved in

many of our development projects, and we welcome more companies

to come here.”Leonard Orban, Minister of European Affairs

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ministry Dedicated to implementing €20 billion in EU FundingRomania has been allocated over the period 2007 – 2013 a potential €20 billion in EU funding support and the country is committed to using these funds as quickly and effectively as possible. Last year Romania created a new Ministry – the Ministry of European Affairs – to oversee this process and to promote closer business ties with the EU.

Leonard Orban, Minister of European Affairs,explains, “Our current priority is to implementallourplannedprojects,andwehavemanagedtoallocatemorethan60%toconcreteprojects.”Outof the projects approved, the Romanian authori-tieshaveidentified100priorityprojectswithtotalbudgets(includingEUandnationalcontribution)of€10millionupto€500millioneach;thelatteristhe construction of a highway connectingOrastieandSibiu.“Wehavemanybigprojectsinthefieldof waste and water management, transport andenergyinfrastructure,”MinisterOrbanpointsout.

OnechallengeistoabsorbEUfundsmorerapidly.Romaniahasabsorbedaround7%ofthestructuralcohesionfundssofarandtheMinistryofEuropeanAffairs is determined to increase that percentageto20%bytheendof2012.Romaniahastoabsorbanadditional€1.2millioninEUfundingthisyearin order to avoid losing any allocatedmoney andaround€6millionin2013.

Promotingsustainabledevelopment

The government recognises that EU financialsupport is crucial for Romania’s sustainableeconomicdevelopmentandfiscalhealth.LeonardOrban explains, “Romania cannot afford towastethis huge opportunity to modernise. Achievingthe goal set by the National Strategic ReferenceFramework 2007 – 2013, namely the absorp-tion of at least 90% of the EU funds available toRomania, requires significant effort and basically

Leonard Orban, Minister of European Affairs

meansestablishinganewsystemthatismodernandtransparent.”

Romaniaisdefinitelymakingprogressingettingitsprojectsoff theground.MinisterOrbannotes thatthe improvements in infrastructure and economicperformance that theEU funds canhelpRomaniaachieve,will bebeneficialnotonly for the countrybutalsofortheEUasawhole.

Romania’sambitiousEUfundedprojectsarecreatingexciting opportunities for international investors.LeonardOrbanpointsout, “Manycompanies fromWestern Europe are already involved in many ofour development projects, and we welcome morecompanies to comehere.Weneed their expertise,andtheywillfindmanyreasonstoinvestinRomania.This country offers a skilled labour force at attrac-tiveprices,alargedomesticmarket,andmanyhighpotential sectors. FDI in Romania is a win for thiscountryandforinvestors.”

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Top Target for FDiRomania has an impressive track record as a target for foreign investment, and a number of leading multina-tionals in a wide range of sectors already have a presence in the country, from banks to auto parts manufactur-ers. They are drawn to Romania’s open economy, skilled human resources at low prices, well developed communica-tions and transport infrastructure, strategic location, and business friendly environment. An EU member since 2007, Romania enjoys free trade with other EU member states as well as EFTA and CEFTA countries. Romania is an ideal base for companies looking to access regional markets. In addition, Romania – with a population of over 21 million – also has the EU’s seventh biggest domestic market.

protection, along with a favourable fiscal policy thatincludes a 16%flat tax rate, oneof the lowest in theregion.AnErnstandYoungreportonRomaniain2010cites the sectors thathaveattracted themostFDI: theautomotive industry, insurance, food processing, tele-communications,construction,consumergoodsmanu-facturing,and,morerecently,renewableenergy,withafocusonwindfarms.

After a major slump during the height of the globalcrisis,Romania’s economybouncedback in2011andmost international observers are predicting a positivefuture for the country. The European Commissionrecentlyreportedthat“RomaniahasafiscalriskclosetotheEUaverageandtwotimeslowerthanGreece’s,”while AT Kearney reported last year that “Romaniaremainsattractiveforglobalservices,ranking25thinourrecent surveyof 50 countries, andRomaniaperformsbetterthanitsregionalcompetitorsHungary,theCzechRepublicandSlovakia.”Ernst&YoungrecentlyrankedRomaniaamongtheworld’stopcountriesinpotentialforrenewableenergydevelopment,whiletheCushman& Wakefield “European Cities Monitor 2011” namedBucharestoneofEurope’stop36businessdestinations.

Romaniancompaniesleadingtheregioninrevenues

Romaniancompaniesdominateinthe2010“SEETop100”report,andRomaniawas thebiggestcontributortotheregion’stotalGDPfortheyear.Romania’sOMVPetromGroupremainednumberoneintheregioninrevenuesin2010forthethirdyearinarowwhileBCR

Romania’s location is a definite advantage: set at thecrossroads of the EU, the Balkans and the former CIScountries,Romaniaispositioningitselfasaleadingexportoriented economy. Romania is crossed by three panEuropeantransportationcorridors,andtheDanubeRivergiveswaterwayaccesstoRomania’sPortofConstanta,thebiggestportontheBlackSea.Romaniaalsohasawealthofnaturalresourcesthatincluderichfarmland,water,oilandgas,andthepotentialtodeveloprenewableenergies.

Keysectorsforforeigninvestors

FDI has driven the Romanian economy for manyyears. Investorswillfinda strongregulatoryenviron-mentprovidinganequalplayingfieldandinvestment

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

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Erste Romania was the leading bank. The combinedrevenuesofRomaniancompaniesinthetop100in2010reached€40billion,almosthalftheoveralltop100totalof€87.4billion.

There is still significant room for growth. As theErnst and Young study points out, “Most sectors oftheRomanianeconomyremainunderexploitedandoffer great potential, particularly manufacturing,agriculture, and tourism.The realestate sectoralsooffers growth opportunities. Romania’s industrialproduction rate grew by 4% in 2010 in spite of theglobal downturn thanks to increased demand fromWesternEuropeforRomania’smanufacturedgoods,suchascars, textiles, chemicalsand steelproducts.”The agency Romania Trade and Invest is ready toassistpotentialinvestors.

Incentivestargetpriorityareas

Tokeepforeigninvestmentflowingin,Romaniaoffersa number of incentives for investments which willpromoteregionaldevelopmentandcohesion,environ-mentalprotectionandrehabilitation,energyefficiencyandrenewableenergies,R&D,healthcare,trainingandjobcreation,technologytransfer,tourism,foodprocess-ing,manufacturing,waterandwastemanagement,andICT. Romania has developed free zones, technologyparksandindustrialparkswhichserveasanidealbaseforforeigncompanies.

AccordingtotheRomanianNationalStatisticsInstitute,overall investments in the Romanian economy grewby9.2%in2011comparedto2010,includinga22.1%growthinthefourthquarterof2011comparedtothesame period the previous year. One new investmenttargets the renewable energy sector: Romania’s firstResearchInstituteforRenewableEnergieswasinaugu-rated in Timisoara (Western Romania) inMarch thisyearina€17millioninitiativeimplementedbyTraianVuiaPolitechnicsUniversity andfinancedmainlywithEUstructuralfunds.

Another new investment is in the healthcare sector;GroupMedicoveropeneditsfourthprivatehospitalinBucharestattheendofJanuarythisyearandreportedrevenuesof€100,000inthefacility’sfirstmonthofoper-ations;theownersanticipate€4millioninrevenuesbytheendof2012.“WecompletedtheMedicoverhospitalin two years with a total investment of €20 million,”explains Catalina Balan, General Manager. As manyinvestors have already discovered, now is the time totargetRomania.

Blue airairline’s ‘Smart Flying’ means added Value for PassengersOn December 13th 2004, Blue Air, the only Romanian airline company with 100% private equity, flew for the first time. The company was founded with the desire to create a safe, comfortable and affordable flight alternative to the most important destina-tions in Europe. In two words: Smart Flying.

Blue Air operates 29routes in Europe andextends continuouslyafteracomplexprocessofbusinessrestructuringin2010.Thisprocesswasnecessary to maintainthe airline ‘in goodshape’sothatitcanfacethenewchallengesintheeconomy.

Untilnow,more than6.5millionpeoplehavechosenBlueAirservicesandtheirnumberisconstantlygrowingduetoservicediversityandcompetitivepricesprovidedbythecompany.

Sherif Ussama, General Director, explains, “Blue AirdistinguishesitselfwithitsSmartFlyingapproach,whichmeansaddedvalueforourcustomersandinthiswaywewillremainonestepaheadofourcompetitors.Thisyearweplantodevelopboldly,butrealistically.Ourfleetwillreachtenaircrafts,weareopeningfournewroutesinthesummerscheduleandwewillstarttotouchmarketsthatothersdidnottouchandthesewillbeanichemarketforus.BlueAirisalsofocusedonbecomingmorepopularamongbusinesscustomerssincetheairlinefliestomainairportsforover80%ofitsdestinations.Consideringthis,startinglateMarch,allflightsoperatedinBucharestwillbemovedtothemainairportofthecity.”

At the World Low Cost Airline Conference held inLondononSeptember30th2010,BlueAirwasdeclaredthenumberonelowcostairlinecompanyattheChangeinseatcapacityCategoryinthepreviousyear.

www.blueairweb.com

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THEEUROPEANTIMES

Romania Back from the Brink

Like many countries, Romania experienced a sudden reversal of fortune in 2008 when, after years of achieving some of Europe’s highest GDP growth rates – 6.3% in 2007 and 7.3% in 2008 – the country’s economy began to unravel in the wake of the global financial crisis and the easy credit and heavy foreign investment which had fuelled Romania’s growth began to dissolve. The Romanian central bank raised interest rates several times in 2008 and was forced to intervene in currency markets to prop up the leu.

In 2009, the situation worsened, affecting first theconstructionsectorandthentherealestate,bankingandfinancial services sectors.Romania’sGDPfellbyover 7%over the year, promptingBucharest to seekan emergency assistance package from the IMF, theEU,andotherinternationallenders.Drasticausteritymeasures,aspartofRomania’sIMFagreement,ledtoaGDPcontractionofaround2%in2010.

Turnaroundin2011

The real turnaround began in 2011 when theRomanianeconomyachievedover2%growth,asign

that the fundamentals which supported Romania’sstrongperformanceinthepastremainintact.Thisyearthe positive trend seems to be confirmed. Romania’sannualinflationratedroppedtoanhistoriclowof2.59%inFebruary2012,whilemanyanalystspredictareturntoGDPgrowthinthesecondquarteroftheyearafteraslowdowninthefirstquarterlinkedtosevereweather.Observerspredicteitheraslightdroporslightgrowthoverthefirstquarterof2012andstrongergrowthinthesecondquarter,foranoverallpositivegrowthtrendfortheyearofbetween.5%and1.5%;someobserversevenpredict2%ormore.

AccordingtoRomania’sMinistryofFinance,themainchallenge for Romania during the 2012 election yearis to staywithin the ambitious budget deficit target ithascommittedto.Romaniaaimstoreduceitsbudgetdeficitto1.9%ofGDPbytheendoftheyearfrom4.4%in 2011. While Minister of Finance Bogdan Dragoirecentlywarnedofapotential“technicalrecession”inthefirstpartof2012,headdedthathebelievedgrowthwouldreturnbytheendoftheyear.Hesaid,“Thefirstquarter economicdeclinehas beenpromptedby badweatherandablock in the transferofgoods,but thedemand for these goods is there and will come backlaterintheyear.”Romaniaisprovingitcanwithstandsevereeconomicpressuresandrebuilditseconomy.

Romania GDP - Nominal GDP at Current Prices

Total GDP, Current Prices, Mio E Growth Rate, %

200 8.07.1%

180 6.0

160 4.0

1402.0

60

-6.0

1200.0

40

-8.0

100-2.0

20

-10.0

80-4.0

02008 2009 2010 2011 2012 2013 2014

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

136.845%Mio

0.5%

-7.7%

2.4%

3.7% 4.4%

5.2%

178.91 Mio

Business&InvestmentOpportunities

Finance

•FinanceMinistryHelpingtoEnsureContinuedMacroeconomicStability

•CentralBankGovernorCitesRecentEconomicProgress

•BankingSectorMeetingEUStandards

“The strong banking sector has become an anchor for Romania’s

economic recovery.”Mugur Isarescu, Governor of the National Bank of Romania

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THEEUROPEANTIMES

Finance ministry Helping to Ensure Continued macroeconomic StabilityRomania’s Ministry of Public Finance is committed to maintaining macroeconomic stability not only for Romania but also for the region. Gheorghe Ialomitianu, former Minister of Public Finance, explains, “We promote fiscal reforms at the local and regional level as well as the national level. We are working closely with the National Bank, the International Monetary Fund and the European Bank for Reconstruction and Development to ensure the stability of Romania’s financial system over the medium and long term.”

The Ministry of Finance played a leading role in arecentprogrammetohelpRomaniarecoverfromtheeffectsof theglobalfinancialcrisis. “ThisprogrammehasbeenverysuccessfulandRomaniahasregainedthetrust of European markets thanks to the reforms wehavemade,”formerMinisterIalomitianupointsout.

Re-launchingtheRomanianeconomy

Investing in the future is crucial for Romania in itsdrive to create more jobs and maintain economicgrowth.GheorgheIalomitianusays,“Wearere-launch-ingtheRomanianeconomy.Ourobjectivefor2012isto allocate over 7%ofRomania’s totalGDP towardsinvestment.Wealsoaimtogetthebudgetdowntolessthan3%ofGDPandtocontinuetoreducethecostsofthepublicsector,whichhavedroppedfrom9.5%in2008to7.4%in2011;weaimfor7.2%for2012.”

Infrastructure–particularlyRomania’s roadnetwork– is a top target for the government’s investmentprogrammes. Gheorghe Ialomitianu explains thatRomania’s Ministry of Transport will focus onpromotingpublicprivatepartnerships for infrastruc-ture projects, creating many new opportunities forforeign investors and companies. “The Ministry ofFinance’s role in theseprojectswill be tomake suretheymeetEUlawsandstandards,”headds.

Gheorghe Ialomitianu, former Minister of Public Finance

Romania offers many advantages for investors, theformerMinisterofFinancebelieves.Hepointsoutthatinadditiontomacroeconomicstability,Romaniahaslowcostskilledlabour,agrowingconsumermarket,afavour-abletaxregime,andabusinessfriendlygovernment.Infact,investorswhosebusinesseswillcreatenewjobscancountonfinancialsupportfromtheMinistryofFinance.“Ihavesignedmanyagreementswithforeigncompaniesthis year to provide them with financial assistance tolaunchnewprojects,”formerMinisterIalomitianusays.

The Ministry of Finance has also developed onlinesystems to reduce red tape for investors. To potentialinvestorsinRomania,GheorgheIalomitianuconcludes,“Romania is open for investment, and the foreigncompanieswhicharealreadyoperatingherehavebeenveryprofitable.”

Finance

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RomaniaTHEEUROPEANTIMES

Central Bank Governor Cites Recent Economic Progress

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

Mugur Isarescu, Governor of the National Bank of Romania

The National Bank of Romania Governor notesthat the impact of the global crisis was greater onRomaniathananticipated,butthankstothegovern-ment’seffortsaswellasassistancefromtheEUandthe IMF, the country’s economy has stabilised. Headds, “Investors should know that Romania is nowpreparingforwhatIhopewillbealongtermcycleofeconomicgrowth.However,wemustcontinuetobe vigilant concerning the current economic envi-ronmentinEurope,includinginGreece,whichhaschangedgreatly.”

Focusonsustainability

Romania’sleadersaimtoachievesustainablegrowth,eveniftheprocesstakeslongerthanoriginallyantic-ipated.MugurIsarescusays,“OurbiggestchallengeistonavigatethroughthenewconditionsinEuropeandtosustainourcountry’seconomicdevelopment.Economic recovery will be slower than we wouldlike,butitisbettertobeslowandsure.”

ForeigninvestmentiscrucialtoRomaniainspurringonitsrecoveryandreachingitsdevelopmentgoals,and the government is doing everything it can tomakeinvestinginRomaniaaseasyandattractiveaspossible. Mugur Isarescu highlights several sectorswhich he feels have particularly strong potential,including agriculture, energy, transport, ICT andthe auto industry. He says, “The National Bank ofRomania and the government are here to providestability and a secure environment for foreigninvestors.”

A toppriority forRomaniaover thenext few yearsis to ensure it absorbs EU fundsmore rapidly andefficiently. Mugur Isarescu says, “Speeding up theprocessofabsorbingthesefundscannotonlymakeRomania stronger and its economy more sustain-able but can also make sure that EU funds serveas a catalyst for stimulating other investments inRomania.”

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THEEUROPEANTIMES

Finance

Bank Deposit Guarantee FundDeposit Guarantee Fund Helping to Ensure Financial StabilityThe Bank Deposit Guarantee Fund (FGDB), Romania’s deposit guarantee scheme, plays an essential role by helping to ensure depositors’ trust in Romania’s financial services system. CEO Eugen Dijmarescu explains, “The Fund guarantees deposits held at Fund member credit institutions, no matter the denomina-tion, within the limits and according to the terms set by the EU legislation.”

The Bank Deposit GuaranteeFund is Romania’s only institu-tionwhosemissionistoguaranteethe deposits of natural and legalpersons(mainlysmallandmediumsizedenterprises)heldatmemberinstitutions, and topaycompensa-tion to covered depositors whendepositsbecomeunavailable,uptoa guaranteed ceiling of €100,000.FGDBhas33membercredit insti-tutions, all legal persons licensedby theNationalBankofRomania.Depositswiththeother8EUbanks’branchesoperatinginRomaniaarecoveredby theguaranteeschemesin their home countries, as estab-lishedbytheEuropeanlaw.

Valueofdepositsnow73timeshigherthanin1997

Eugen Dijmarescu says that at theendofDecember2011,thedepositscovered by the Bank DepositGuarantee Fund stood at 143.1billion lei (€33.13 billion), whichrepresents50%oftotaldepositsheldwith member credit institutions.“The value of guaranteed deposits

hasgoneupovertheyearsduetotheextended scope of guarantees andraisedguaranteelevels.Consequently,the value of guaranteed deposits innominal terms is nowmore than 73times higher than back in 1997,” henotes.

Inover15yearsofactivity,theFGDBhassteadilyconsolidateditsresourcesand the coverage ratio nowadays is1.5%,whichisamongthehighestintheEU.TheFundinvestsitsresourcesin line with an annual investmentstrategy determined by the Fund’sboardandapprovedby theNationalBank of Romania, mainly withinRomanian commercial banks, thusinsuring liquidity to the Romanianmarket and contributing to thestabilityofthemarket.

Since1996theBankDepositGuaranteeFund has focused on resolving issuesrelated to the failureof credit institu-tions in Romania. For example, theFundpaidcompensationtodepositorsat seven bankrupt Romanian banks,and,initsappointedroleasajudicialliquidator of failed financial institu-tions, the Fund has recovered signifi-cantpercentagesoftheassetsofthesebanks.

The Bank Deposit Guarantee FundadherestothehighestEUandglobalstandards and is an active memberof the two international professionalorganisationsinitsfield:theEuropeanForum of Deposit Insurers (EFDI)and the International Association ofDeposit Insurers (IADI). The Fundhasalsoestablishedpartnershipswithsimilar institutions worldwide as partofitsefforttomaintainbestpracticesinallareasofitsoperations.

3NegruVodaSt.,bldgA3030774BucharestTel:+40213205120office@fgdb.rowww.fgdb.ro

BANK DEPOSIT GUARANTEE FUND

In November 2011, the BankDepositGuaranteeFundjoinedtheNational Committee for FinancialStability, whose mission is to con-solidate Romania’s institutionalframework in order to ensure thecountry’s financial healthnow andinthefuture.

Followingtheconcernfor insuringthe financial stability, starting in2012, the Fund’s attributions areenlarged as the Fund can partici-pate in the measures for restruc-turing troubled credit institutionsand could even become theiradministrator.

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RomaniaTHEEUROPEANTIMES

Banking Sector meeting EU Standards

The Asociatia Romana a Bancilor (Romanian Banking Association) has been spurring on the development of Romania’s banking sector for the past two decades and has become one of the country’s most important pro-fessional organisations. All banks currently operating in Romania are members of the Association, which has established a strong partnership with the Romanian government, as well as other national and international authorities. Radu Gratian Ghetea, President, explains, “The Associa-tion’s role is to lobby for and promote Romania’s banking community point of view. The government, the parliament, IMF and many other organisations now include us in discussions about major projects for Romania. Our voice is very much appreciated.”

Radu Gratian Ghetea, President of the Romanian Banking Association

AcurrentfocusfortheRomanianBanking Association is to makesurethatallEUbankingdirectivesareimplementedinRomania.TheAssociationparticipatedinarecentparliamentarydiscussionregardingbankingsupervisionandtheintro-ductionofBaselIIIbankingregu-lations,anditwillcontinuetoplayakeyroleinthisprocess.

Foreignbanksaccountfor85%oftotalbankingassets

Romania’s banking sector hasalready attracted significant inter-nationalinvestment.RaduGratianGhetea says, “Around 85% of

total banking assets in Romaniaare owned by large internationalfinancial sector groups headquar-teredinAustria,Greece,Italy,Franceandothercountries.TheRomanianbankingsectoroffersasafebusinessenvironment. Foreign investors canhave confidence in working with alocalbankhereinRomania.”

Radu Gratian Ghetea explains thatRomania’s banking sector managedto weather the global financial crisisbetter than the banking sectors ofmany EU countries thanks to excep-tionally strong supervision by theRomanian National Bank and tothe support coming from the globalheadquarters of banking subsidiar-ies operating in Romania. “Theyprovided this supportbecauseof thegreat potential Romania’s bankingsectorhas,”RaduGratianGheteasays.

Current projects for the RomanianBanking Association include imple-

menting international financialreporting standards starting onJanuary 1, 2012 and amendingRomania’s fiscal code; support-ing the position of the bankingcommunity in Romania’s processof adapting national legislation toEuropeanrequirements;continuingtheprocessofadoptingSingleEuroPayments Area (SEPA) paymentinstrumentsinRomaniaandintensi-fying communicationwith paymentservicesusers;drawingupaselfreg-ulatoryframeworkfor leipayments;amending and supplementingNational Bank of Romania regula-tions andprovisioning systems; andenhancing collaboration across thebanking sector inorder tomitigatefraud, cyber crime and card crime.Radu Gratian Ghetea concludes,“TheRomanianBankingAssociationwillcontinuetoserveasaproductivepartner for the Romanian govern-ment as well as other national andinternationalauthorities.”

21

THEEUROPEANTIMES

While we are knownprimarilyformortgageactivi-ties at present, we alreadyofferindividualaccountsandsavingsproductsandwewantto be the universal bank ofchoiceforourcustomers’daytodayoperationsandsavings(housebank).”HeaddsthatVolksbank Romania willcontinue to focuson its tra-ditional market segments:individuals and small andmediumsizedenterprises.

Founded in 2000, Volksbank Romania has alreadyestablishedanetworkof180branchesandhasaround1,500 employees. Johann Lurf was formerly CEO ofVolksbankCzechRepublic, and he points out that intheCzechRepublic,increasingcompetitionhasledtogreateremphasisonservice.ThiswilloccurinRomania,hebelieves,asthebankingsectorcontinuestogrow.

Volksbankaimstofocusonqualitytogainacompetitiveedgeasnewplayersenterthemarket.JohannLurfsays,“Firstofall,wehavetounderstandwhatourcustomerswant,thentoprovidesuitableproductsandservices.Wewillstrivetoestablishpermanentandtransparentrela-tionshipswithourcustomers.”

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

Johann Lurf, CEO

79DaciaAvenue-BucharestTel.:+4213032364www.volksbank.ro

Finance

Rural Credit Guarantee Fund

Fund Helping agricultural Sector Develop its PotentialRomania’s Rural Credit Guarantee Fund (FGCR) helps agricultural producers and small businesses get access to credit and other financial instruments.

The fund is playing acrucial role in Romania’sNationalRuralDevelopmentProgamme, which aims tomoderniseRomania’sfarms,helpfarmersacquiremodernequipment,anddevelopthecountry’scapacitytoprocessraw materials. Romania’sagriculturesectorhasstrongdevelopment potential andis increasingly attractinginvestors.

GeneralDirectorDr.VeronicaTonceaexplainsthattheRuralCreditGuaranteeFundwonthetendertoadmin-ister some €220 million in EU funds for agriculturalproducersandsmallbusinesses.Shesays,“Ourstrategyis to support the beneficiaries of European funds inordertoensurefinancialbackingforlaunchingprojects.The National Rural Development Programme has anallotmentof€8billioninEUfunds,whichisavailablefor thewhole period ofTheProgramme, respectively2007-2013. Our fund assists domestic and foreigninvestorsbyassumingrisksandprovidingguarantees.”TheRuralCreditGuaranteeFundalsodemonstratestoinvestorsaround theworld thatRomania isabsorbingEUfundsintheproperway.

OccidentuluiStreet5010981BucharestTel:+40213125463office@fgcr.rowww.fgcr.ro

Dr. Veronica Toncea, General Director

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RomaniaTHEEUROPEANTIMES

Power & Energy

23

THEEUROPEANTIMES

Electromontaj

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

Electromontaj handles every aspect of powerdistribution, including overhead transmissionlines and cables, transformers, medium-voltageand low-voltage transmission lines and cables,power for public transport, electrification ofrailways, lighting for streets and stadiums,mountain transport,micro-hydropower stations,windstations,andtransformersubstations.Elec-tromontaj also specialises in electrical installa-tionsforbuildingsandintherenovationofelec-tricalsystems.

Consistentlyproactive,Electromontajisenteringnewfields,includingmountaintransportandwindpower,andalwaysreinvestshalfitsprofitsintothecompanyto fuel continued growth. Mihai Otto Valeriu says,“After Electromontaj was privatised we built a newfactory to produce steel towers for overhead lines,then another factory for clamps, fittings and acces-sories,andthenathirdfactoryforinsulators,cablesand conductors. These three factories support ourmainactivities.”Electromontaj’s1,100employees inBucharestarealsoshareholdersinthecompany,andtheirskillsandmotivationarekeyfactorsbehindthecompany’ssuccess.

Idealpartnerforforeigninvestors

Electromontajhaspositioneditselfastheidealpartnerfor foreign investors in Romania. Mihai Otto Valeriuexplains, “Weexcelat turnkeycontractsandone stopshopservice, fromdesignthroughdevelopment.Elec-tromontajisrankedasoneofthestrongestcompaniesinRomaniaregardingturnkeyjobs,andwearealsowellknownforourtransparencyandreliability.”

ElectromontajisopentopartnershipsorjointventureswithcompanieswhichcanbringaddedvalueandshareElectromontaj’svisionandgoals.MihaiOttoValeriusaysthatheparticularlywelcomespartnersforwindturbineprojects. He adds, “Electromontaj is ready to expandbeyondournicheforcompanieslookingtoinvestinanysectorinRomania.Wecanprovidethelocalknowledgeforeigninvestorsneed,andinvestorscanbesurethatinElectromontajtheywillhaveafairandreliablepartner.Wearealsoreadytojoinanycompanyinvolvedinournichemarketanywhereintheworld.”

1CandianoPopescuStreet040581BucharestTel:+4213367584elmbuc@rdsmail.rowww.electromontaj.ro

Power&Energy

IT & Communications

•LeadingtheWayinICT

“Romania already offers highly skilled human resources and a

modern IT infrastructure.”Valerian Vreme, former Minister of Communications

and Information Society

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THEEUROPEANTIMES

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

Valerian Vreme, former Minister of Communications and Information Society

On the communications front,accordingtoValerianVreme,Romaniahasalreadymadesignificantprogress.Infact,RomaniaisnowrankedsecondintheworldinthespeedofInternetconnectionsandConstanta’sconnec-tionsarerankedthefastestinEurope,one reason so many major interna-tionalITplayershavelaunchedopera-tionsinRomania.Infact,BucharestisnowrecognisedasaregionalITsectorhub. Developing a true informationsociety comes next, Valerian Vremebelieves. He says, “If we have goodcommunications, we are ready forapplications,suchasvirtualisationandcloudcomputing.”

MeetingEU’sdigitalagenda

The Ministry of CommunicationsandInformationSocietyisaligningitsgoalswiththeEU’sdigitalagenda.Developing cutting edge e-gov-

IT&Communications

ernment systems is a top priority,andRomania iswellon theway tomeeting the targetsof itse-govern-ment development programme setto be completed by 2015. ValerianVreme explains, “Romania hasrecently implemented the timestamp, electronic archives, elec-tronic IDs and e-payment systemsas well as much more effectivecyberspace security systems. Theseare instruments that allow majorprojectsdevelopedinpublicinstitu-tionstobeaddressed.TheMinistryiscurrentlycoordinatingambitiousnewe-projectsinmostofRomania’sstate institutions, including theMinistryofHealth’se-prescriptionsinitiative, the Ministry of Trans-port’s project with Google Maps,theMinistry of Finance’s e-systemsfortaxesandmanymore.”

These projects are being financedmainlyby theWorldBank, theEU,the International Monetary Fundand other international fundingsources. “In the future, we plan toformprivatepublicpartnershipsforsuchprojects,andRomanianowhasa new law for public private part-nerships.Wehave already attractedinterest fromdatacentres, informa-tionsolutionsprovidersandothers,”ValerianVremeexplains.

Valerian Vreme welcomes moreprivate investment in Romania’scommunications and informationtechnology sector. He concludes,“Romania already offers highlyskilled human resources and amodern IT infrastructure.We haveestablished the foundations for thetransitiontoacompleteinformationsociety.”

26

RomaniaTHEEUROPEANTIMES

Leading the Way in iCTThe Romanian ICT sector, which grew strongly in 2011, is expected to continue to expand as the economy recovers. In fact, industry analysts BMI recently predicted that Romania’s ICT market has some of the best prospects of any in Europe, particularly in the rapidly developing Enterprise Resource Planning (ERP) segment and in household computer sales, forecast to total €705.7 million (US$925 million) this year.

The rapid growthofRomania’s ICT sector is under-pinnedbythecountry’sadvancedICTinfrastructure.Romania’sInternetconnectionspeedsarenowrankedthesecondfastestintheworld,whileConstanta’scon-nectionsarethefastestinEurope.Bucharesthasestab-lishedasolidreputationasaregionalICThub.

Thepeoplefactor

ThepeoplefactorisakeyreasonforRomania’sstrongcompetitivenessinICT.Thankstoitsextensivenetworkof cutting edge university level ICT programmes andR&Dactivities,Romaniahasdevelopedapoolofhighlyskilled,multilingualICTprofessionalswhoaretheforcebehind the country’s thriving ICT outsourcing andsoftware development activities. Romanian ICT firmsaregloballyrecognisedfortheirwinningpricequality

ratio;accordingtoanIMFreport,Romania’sICTservicesexportstotalledover€1billionin2010.

Romania is working hard to reach the goals of theEU’s“DigitalAgenda”andhas launchedanambitiouse-governmentprogramme,E-Romania,which is set tobecompletedby2015.E-Romaniawillhelpdrive ICTinvestment across various sectors, and the RomaniangovernmentwillcontinuetouseEUstructuralfundstosupport ICT initiatives.A total€383millionhasbeenearmarkedforRomania’sICTsectorfor2007to2013;about70%ofthefundsavailabletotheMinistryofCom-municationsandITwillbeusedtoexpandbroadbandcommunicationsinfrastructure.

The Romanian ICT sector has attracted significant FDIfromgloballeaderslikeMicrosoft,IBM,Oracle(with22servicecentresinRomania),Alcatel-Lucent,HP,Google,Dell,SAPandSiemens,amongothers.Vodafone,OrangeandOTEhaveinvestedacombined€7.6billionintheirRomaniansubsidiariessofarandallthreehaveannouncedfurther investment projects. Inaki Berroeta, VodafoneRomania’sCEO,says,“Clientsaredemandingmore,espe-cially in the data segment, and the growth in this areawill continue.” Among new investors, the Austria basedKapschGrouplaunchedalocalsubsidiaryinRomaniain2009whichthegroupexpectswillachieverevenuesof€15million in itsfirst threeyears.Romania’s ICTsectorwillclearlycontinuetodrivethenationaleconomyforward.

27

THEEUROPEANTIMES

network one Distribution

new name for Top iT Distribution EnterpriseNetwork One Distribution is the new name of Romania’s leading IT distri-bution specialist. Formerly known as Asesoft Distribution, Network One Dis-tribution specialises in the distribution of IT components and peripherals and is the leader in its sector in Romania with a 20% market share.

With more than 2,500 customersin Romania and beyond,NetworkOne Distribution achieved €200millioninturnoverin2011,a39%increase over the previous year,and anticipates €220 million inturnover this year. The companyinvested around €1.5 million lastyearinupgradingitslogisticsinfra-structuretoimproveitsservicesforitscustomersandtosupportfuturegrowth.

Razvan Ziemba, General Manager,explains, “Changing the name ofthecompanycameasaresultofourstrategytogrowasaregionalplayer.We are looking to expand intoHungaryandBulgariathisyearandare open to entering other neigh-bouring markets through acquisi-tions.”NetworkOneisalreadyactivein Moldova and is also targetingCroatia, Macedonia, MontenegroandSerbia inaddition toHungaryand Bulgaria. Network One Distri-bution expects to earn €4 millionin revenues from its activities inMoldova,HungaryandBulgariathisyearandanticipatesthatitsexternalmarketswillbringintotalrevenuesof€22millionin2014.

Network One Distribution hasbeensteadilyexpandingitsproduct

portfolioandwillcontinuetodosointhefuture.ItsproductscoverthefullrangeoftheITspectrum,fromDELL, HP, Lenovo, Samsung Sonyand MSI notebooks, to Microsoftsoftwareandhardware,LG,Samsungand Philips monitors, LCD andplasmaTVs,Gigabytemotherboardsand video cards, Western Digitalhard drives, Bit Defender antivirusandmuchmore.

Network One Distribution pridesitself on offering its customers notonly world class products but alsothebestpossibleISO9001certifiedservices,includingfinancingsupport,freedelivery anywhere inRomania,highlyqualifiedtechnicalassistance,rapid repairs, and a skilled, clientoriented team. Network One Dis-tribution works with all the majorplayersintheITsector,suchasDELL,SONY,LG,HP,Microsoft,Samsung,Lenovo, WD, Philips and Seagate,andalsoproduces twobrandsof its

own, Serioux and Heinner. “Theseprivate brands are important as wecancontroleverythingfromstarttofinish,”RazvanZiembaexplains.

Network One Distribution iscommittedtosupportingRomania’seconomicdevelopment.Addressingpotential investors, Razvan Ziembasays,“CometoRomania!Youwillfindskilled,hardworkingemployees,lowlabourcosts,andmanyexamplesofsuccessfulcompanies.”

AsesoftDistributionMarcelIancuStreet3-5020757BucharestTel:+40212111856razvan.ziemba@nod.ro

www.nod.ro

Razvan Ziemba, General Manager

IT&Communications

28

RomaniaTHEEUROPEANTIMES

RaDioCom

Dynamic Broadcaster offers World Class Communications ServicesRADIOCOM is bringing world class com-munications to the Romanian market. A state owned enterprise that operates as a private company, RADIOCOM is Romania’s market leader in TV and radio broadcasting and one of the main providers of electronic communications networks and services.

The complex services portfoliooffered by RADIOCOM addressesmainly the business segment:Internet,VPN,leasedlines,integratedservices(2Playbundles)andsatellite-basedcommunicationsservices.

Formorethan70years,RADIOCOMhas been a continuous and activepresence on the telecommunica-tionsmarketinRomaniaand,today,the company is, undoubtedly, anascendingbrand,100%Romanian,withahistorydatingback to1936,when the first radio broadcastingtransmitterfromtheBodregionwasactivated.RADIOCOM is achieving stellarperformance.CristianNITU,ChiefExecutiveOfficer, says, “We had abetteryearin2011thanin2010andwe expect 2012 to be even betterintermsofrevenue.Weanticipatea sharp increase in revenues forInternet data and voice services,whilebroadcasting,ourothermainbusiness line, is quite stable. Weplan to attract private stations tobeourcustomersinthefutureandweareseekingcapitaltoboostourcustomerbasetoonemillion.”

Cristian NITU, CEO

RADIOCOMhasprovenitcanholdits own against the competitionwithoutgovernmentassistance.ManyofRomania’sleadingcompaniesarecustomersofRADIOCOM.

PioneeringservicesinRomanianmarket

RADIOCOM is well known for itstechnological advances and haspioneeredanumberofservicesintheRomanianmarket, includingDVB-T,T-DAB andWiMAX technology thatisprovidedunderEasy2BiNetbrand,a double play solution (connectiv-ity and voice services) offered forbothcustomerssegments:business&residential.

RADIOCOM has implementedthe latest infrastructure, includinga 150 m tower and an extensivewireless network based on WiMAXtechnology, spread nationwide,that provides Internet broadbandaccess even in areas where othertelecom operators do not havetechnicalsolutionsavailable.“Weareperceived as a technology oriented

RADIOCOM,registeredtrademarkofNationalCompanyofRadio

CommunicationsS.A.103OlteniteiStreetBucharest,RomaniaTel:+40315003001Fax:+40315003013office@radiocom.rowww.radiocom.ro

company made up of engineers,butwe are also strong competitors.Over the past few years we haveincreased our product range andcommercialabilitieswithoutincreas-ingcosts,”CristianNITUpointsout.HeaddsthatRADIOCOMwelcomesRomania’s switch to digital andthe company is ready to deliver itsexpertisesothatthenationaltransi-tiontodigitalisationcouldbemadeasquicklyaspossible.

RADIOCOM’smissionistomaintainitsdominantroleasRomania’smainsupplierforbothpublicandprivatestations andnetworks aswell as forelectroniccommunicationsservices.RADIOCOMalsoplanstodevelopastrongpresenceinregionalmarketsandtocontinuetoplayasignificantroleinthelocalmarketforelectroniccommunications. RADIOCOM willalways put its customers first byrespondingtotheirevolvingneeds.

Transport

•PublicPrivatePartnershipsEncouragedbyTransportMinistry

•TopPriority:UpgradingTransportInfrastructure

“Our infrastructure upgrades will speed up travelling, shipping

and operating logistics services in Romania.”

Anca-Daniela Boagiu, former Minister of Transportation and Infrastructure

30

RomaniaTHEEUROPEANTIMES

Public Private Partnerships Encouraged by Transport ministryRomania’s Ministry of Transportation and Infrastructure is overseeing the country’s drive to upgrade its transport systems. Anca-Daniela Boagiu, former Minister of Trans-portation and Infrastructure explains, “The Ministry has implemented new regulations in order to attract interna-tional investment and financing for infrastructure and transport projects, and we have been able to sign contracts for projects worth €2 billion financed by the European Commission. The Ministry hopes to finalise tenders of another almost €2 billion by the end of this year.”

Anca-Daniela Boagiu points out that Romaniacurrentlyhasanumberofmajorinfrastructureprojectsunderway, including the construction of 434 km ofmotorwayalongRomania’spartofEuropeancorridor4andonthenewA3motorwaylinkingBucharestwithTransylvania.TheMinistrywillcompleteaproject toupgrade500kmofnationalroadsbytheendofthisyear,andanother235kmofcitybypasseshavebeenfinancedandaresoontobegin.

In 2012 and 2013, the Ministry plans to modernise2,000kmofnational roads. FormerMinisterBoagiusays, “TheMinistrywillbeable to launchevenmoreroad construction projects thanks to the money wehaveearnedthroughthetenderprocess.Thissuccesswasmadepossiblethroughourintroductionofstrictrulesregardingpublicprocurement.”

Reformprocesskeytoinfrastructuredevelopment

Infact,implementingreformsisatoppriorityfortheMinistry.Anca-DanielaBoagiusays,“ItisveryimportantforRomaniatohavegoodrelationswithinternationalfundingorganisations,butgiventhecurrentEuropeaneconomicsituation,itisalsoimportanttobeproactiveandworkonreforms.”

Romania’s transport sector offers strong investmentattractions, Anca-Daniela Boagiu believes. She says,“Romania is stable andmanaged to reduce its public

Anca-Daniela Boagiu, former Minister of Transportation and Infrastructure

(fiscal) deficit from 9% to 4% in 2010, and we willcontinue to do this in years to come.This successwillhelp to improve Romania’s international image anddrawinternationalinvestment.”SheaddsthatRomania’sMinistryofTransportationandInfrastructureparticularlyencouragespublicprivatepartnershipsinvolvingthecon-struction and modernisation of Romania’s motorways,portsandlogisticsservices.TheMinistryisalsoworkingtogetamajorrailwaymodernisationprojectofftheground.

Anca-DanielaBoagiuforeseessignificantimprovementsinRomania’stransportinfrastructureoverthenextfiveyears.Sheconcludes,“Wewillhavenewdirectlinkstoourportsandanewlyrenovatedinternationalairport.Our infrastructure upgrades will speed up travelling,shipping and operating logistics services in Romania.Therearealotofopportunitiesandalotofprojectsontheway.InvestorswillfeelgoodabouttheirinvestmentsandwillfeelsafehereinRomania.”

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Top Priority: Upgrading Transport infrastructureStrategically located Romania is rapidly improving its transport infra-structure and establishing itself as a key European transport hub. Romania is crossed by three pan European transport corridors: Corridor 4 linking Western and Eastern Europe, Corridor 9 connecting Northern and Southern Europe, and Corridor 7 along the Danube River, which gives access by waterway to the Port of Constanta and from there to Northern Europe via the Rhine. Romania is also part of the EU’s TEN-T priority axes multimodal transport network and is participat-ing in the EU’s Europe Caucasus Asia Transport Corridor (TRACECA) programme to develop a route from Europe to China via the Black Sea, the Caucasus and the Caspian Sea.

Romaniahasbudgetedaround€5.7billion for transport projects overthe period 2007 to 2013, of whicharound €4.56 billion will comefromEUstructuralfunds.TheEU’spriority is to support “modes oftransport thatare the leastharmfulto the environment, such as rail,inter-modaltransportandtheinlandwaterways” as well as “connectionswithrenewableenergysources.”

Publicprivatepartnerships

The government of Romania isactively promoting public privatepartnershipsinthetransportsector

Railway station North in Bucharest

tohelpmoveprojectsforward.Manyforeign companies have alreadyparticipated inmajor transport ini-tiatives in Romania, including UScompanyBechtel,which is involvedin several road infrastructureprojects; Spanish company CAF,which is providing trains for theBucharest subway system; and Swisscompany SIKA, which participatedintheconstructionoftheTransylva-niaHighway,HenriCoandaAirportandtheA2motorway.

Transport projects in the worksinclude continued improvementsin local roads andmajor highways;improvements in Romania’s portservices, including along inlandwaterways and at the Port ofConstanta, the busiest port on theBlack Sea; expansion of local andinternational air transport facili-

Transport

© Ucebistu | Dreamstime.com

ties and services; and new railwaydevelopments.

In February this year Romania’sMinistry of Transport and Infra-structure announced that theEuropean Commission hadapproved major railway infra-structure projects in Romaniabudgeted at a total €900 million;theprojectsincludeupgrading110kmofrailway inWesternRomania.The ministry plans to announcea number of tenders and conces-sions for transport projects thisyear, including for new parkingfacilitiesinBucharestandforworkon the Comarnic-Brasov highwayand the South Capital Ring Road.Foreign companies and supplierswill findoutstandingopportunitiesinhelpingRomaniareach itsgoalsforthetransportsector.

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Grampet Group

Dynamic Rail Services Group Expanding its Regional PresenceGrampet Group, Romania’s leading services and production enterprise in the railway sector, is an integrated consortium of 14 companies active in all fields of the railway industry. Grampet Group was established in 1999 and has been growing steadily every year, incorporat-ing new services to its portfolio, adding value, and acquiring new companies. Grampet Group is one of the largest enterprises in Romania’s railway industry.

Gruia Stoica, Chairman, explainsthat Grampet Group focuses ondeveloping and modernising allthe companies under its umbrella.Client-oriented and competi-tive, Grampet Group has beenincreasing its market share everyyear, particularly in the transportof petroleum products, and ithas developed a strong presencethroughout South-Eastern Europe.The group’s companies are GrupFeroviar Roman (GFR), BulgarianRailway Company (BRC), TrainHungary (TH), Rolling StockCompany (RSCO), TransbordareVagoane Marfa (TVM), RemarPascani, Reva Simeria, GrampetDebreceniVagonyarKft.–Hungary,Trans Expedition Feroviar (TEF),TheInstituteforComputers(ITC),Eurorail Serbia, EurorailCompanyMoldova, Eurorail Ukraine, andEurorailLogisticsGermany.

Grampet Group’s regional focusis on pan-European transportcorridors and on providing inte-

Gruia Stoica, Chairman

grated services. Gruia Stoica says,“Grampethasextendeditsactivityinneighbouringcountrieswherelegis-lationallowsprivateoperatorsaccesstotherailservicesmarket.Grampetaims to become a strategic playerthroughout the Black Sea regionandintheBalkans.”

Romania’sbiggestprivaterailfreightoperator

Grup Feroviar Roman (GFR),a Grampet Group company, isRomania’s largestprivaterail freightoperator. In Hungary and Bulgaria,GFR works with Grampet Groupcompanies Train Hungary and theBulgarian Railway Company, whichgives GFR the capacity to providetruly integrated transport services.

S.C.GRAMPETS.ACaleaVictoriei,nr.114,Sector1,010092BucharestTel:+40213173090office@grampet.rowww.grampet.ro

GFR’sservices includedomesticandinternationalrailtransportofawiderange of products, wagon shuntingonindustrialplatforms,revisionandmaintenance of locomotives andfreight wagons, repairs and mainte-nanceofrailwaylines,freightwagonrental,andrailwaylogistics.

GFR earned a 35% share of theRomanianmarketin2011,comparedtoa27%sharein2010.GruiaStoicaexplains, “GFR keeps growingevery year thanks to its strongandcrediblepositiononthemarketandalsothroughitspartnershipwithitscustomers.”

Grampet Group’s goals includeadding toand improving its rollingstock and services, enhancing thequalityof itshuman resources, andforming partnerships with othercompanies in Europe and beyond.Grampet Group will continue tofocus on customer service and toliveup to itsmotto, “Motion is ourbusiness!”

Infrastructure

•ConstructionSectorGettingOutoftheSlump

•€5.7billioninEUFundingforInfrastructure

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Construction Sector Getting out of the SlumpRomania’s construction sector, one of the hardest hit during the financial crisis, has begun to recover. In fourth quarter 2011, the sector expanded by 2.7% over fourth quarter 2010 and achieved a 5.7% increase in value added. In addition, investment in construction in Romania, including in equipment manufacturing, rose by 9.2% to reach €15.23 billion last year, according to Romania’s National Statistics Institute. In fourth quarter 2011 alone, investment in construction rose 22.1% over the same period in 2010 and new construction accounted for almost half of total investments over the year.

The construction sector has still not reached its precrisislevels,wheninvestmentinconstructiontotalled€24.5billion in2008alone,but the2011 results areamajorimprovementoverthe29.5%plungeincon-structioninvestmentin2009andthe13.5%declinein2010.Residential construction still hasnot begun torecover,however,anddroppedby42%between2009andtheendof2011.

Nonresidentialconstructiongrewby10%in2011

According to research group Buildecon, “Between2010and2014,residentialconstructioninRomaniaisforecasttosinktoaround26%to28%oftotalconstruc-tionoutput,whereasfrom2014on,theimprovementofmacroeconomic stability in Romaniamightmeana rapid expansion in the subsector.”Meanwhilenonresidentialconstructionachieveda10%risein2011,and,thankstoanumberofofficeandretailprojectsunderwayorplannedinRomania,thenonresidentialsegment isexpected tomaintainmomentumfor thenextfewyears.

ClaudiuGeorgescu,headoftheconstructionmaterialsassociation APMCR, points out that the paymentscheduleforpublicprojectshasplayedanimportantrole in theconstruction industry’sperformanceoverthepastcoupleofquarterssincethegovernment, inorder to meet IMF criteria, is required to catch up

on its payments. This year, Romanian constructioncompaniesandforeignplayersarecountingonmajorinfrastructureprojectstokeeptheconstructionbusinessonagrowthcurve.BuildeconexpectscivilengineeringtoexceeditsprecrisislevelinRomaniain2012andtocontinuetoexpandin2013and2014.

SecuredfinancingprovidedbyEUstructuralfundsforinfrastructure projects, along with the government’scommitmenttopublicprivatepartnerships,willplayakeyroleintheRomanianconstructionsector’sfuture.Romania’sMinistryofTransportandInfrastructurehasallocated €1.4 billion for road construction in 2012alone. Buildecon reports, “We expect growth to leadto a comeback in the Romanian constructionmarketin2012,withtransportprojects,particularlymotorwayconstruction,enjoyingextrafunding.”

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€5.7 billion in EU Funding for infrastructure

Major infrastructure projects in Romania are changing the face of the country. The projects are being financed by €5.7 billion in EU structural funds up to 2013 and by international organisations as well as public private partnerships.

The Ministry of Transport and Infrastructure saysthat€1.4billionwillbespentonroadconstructioninRomania this year. Projects tobe completed includethe Cernavoda-Constanta, Bucharest-Ploiesti andTimisoara-Aradhighways,theArad-OrdeaandBixad-Sandominicroads,20roadbridges,andtheAradandConstanta bypasses. A foreign consortium recentlybeganconstructionontheTimisoara-Lugojhighway.

In the railway sector, projects with a total value ofaround €2 billion have been launched or plannedfor2012,whilearound€7billionwillbespentonrailconnectionsalongCorridor4upto2020.TheEIBhasprovided€465millionin loanstofinanceRomania’smetrorailprojects.

Romania is also investing in power, water, wastetreatmentandotherinfrastructure.Sevencompanies(including two from China) submitted bids forthe construction of the Alum Tulcea cogenerationthermalpowerplant.RomaniaandAustriahavejointlylaunched the€3billion “Danube Strategy” designedto improve inlandwaterway transport infrastructure,while Romania continues to invest in upgrading itsports. Romania’s infrastructure projects offer out-standinginvestmentopportunities.

Infrastructure

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

Mircea Bulboaca, founder and CEO, explains thatCon-A,whichachievedaturnoverof€53millionthisyear, has built all types of structures and has estab-lishedastrongpresenceacrossRomania.Hesays,“Wehaveworkedwithclients fromAustria,Germany, ItalyandFrance. I amalways seekingnewbusiness oppor-tunitiesandnewinvestors.Ourclientstypicallychooseusbecauseofourportfolioofverysuccessfulprojects.”

Con-Ainitiallyimportedmetalstructuresforitsbuildingsbutafterlearningnewtechniquesandacquiringcapa-bilities, particularly from its first partner, an Austriancompany, Con-A now produces its own constructionmaterials: metallic confections, precast elements,figured reinforcing steel. Con-A aims to continue toplay amajor role in Romania’s development.MirceaBulboacasays,“Wearelookingforcompaniestoinvesthere in Romania. There are a lot of projects in thepipeline.Con-Aislookingforforeignpartnerswhocanbring inknow-howandnewtechnologies,particularlythe ones that are making civil construction environ-mentallyfriendly.Con-Ahasaproventrackrecordasareliablepartnerforworldclassturnkeyprojects.”

CON-Ahas proven to be a trustworthypartner for largescaleprojects:in2011alonethecompanyportfolioaddedtheconstructionofastadiumwithmorethan30,000seats,havingagrossbuiltareaofover43,000m2(ClujArena),afactory andwarehouse for oneof the largest tyremanu-facturers in theworld(over30,000m2),abusinesscentrein Sibiu (25,000m2), refurbishment and construction ofshowroomsforBMWaswellastheexecutionandmoderni-sationofcountyroads.CON-Ahasmanagedtoconvincethebeneficiariesof theseworks throughqualityandprompt-nessandhasthusdemonstratedthatCON-Atrulybelievesinthecompanymotto:Thestrengthtobuilddurably!

Selimbar,jud.SibiuStr.MihaiViteazu,nr.2B-557260Sibiu

Tel:+40(0)269560423,+40(0)269206300office@cona.ro-www.cona.ro

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alpine Romania

Dynamic Construction Firm applies Highest international StandardsAlpine Holding, Austria’s second largest private construction firm, has a 46 year history of rapid development in the construction sector worldwide and has been active in Romania since 1998. Ionel Giuglea, General Director, explains, “Alpine Romania has the same structure as the parent company in Austria, and our building management and high quality concepts are also the same as those of Alpine BAU GmbH.”

In 1999, Alpine Romania became the main share-holder of Romanian firms Granitul SA Bucharestand SCAEP Giurgiu Harbour SA, providing AlpineRomaniawithreliablesuppliesofrawmaterialsforitslocalconstructionprojects. In2002,AlpineRomaniareachedanothermajormilestonewhenitwascertifiedfor the SR EN ISO 9001:2001 Management QualitySystem, and in 2007 the company implemented aninternationally and nationally certified IntegratedManagementSystem.

Stateoftheartasphaltplantandmachineries(constructionequipment)

AlpineRomaniainvestsinthelatesttechnologiesmorethan€25milliontoensurethehighestqualityperfor-mance,andopeneda€5millionstateoftheartasphaltmixing plant near Bucharest in 2006. Ionel Giugleasays,“Alltheprocessesintheplantarecontrolledbyelectronic systems, guaranteeing the highest quality.AlpineRomaniaalsohas itsowncertified testing labequipped with latest generation equipment to helpmaintaintheexceptionalstandardsforwhichAlpineisknowninRomaniaandthroughouttheworld.”

AlthoughAlpineRomania is a young company, it hasbeen completing major, very complex constructionprojects(morethan€0.5billion)sinceitsbeginnings.In2011AlpineRomaniawonthe€100milliontenderto design and build section two of the Nadlac Aradmotorway,whichincludesalinktotheAradbypass.Thisproject,whichissettobefinishedbytheendof2012,willstreamlineconnectionstotheHungarianborder.

AlpineRomaniastandsoutfromotherconstructionfirmsin Romania through its highly skilled and motivatedteam, commitment to delivering projects as promised,advancedtechnologiesandqualitycontrols,supportforlocal community service projects, and strong backingfrom the parent company in Austria. Ionel Giugleapoints out, “Alpine Romania has a good relationshipwithitsclients(bothpublicandprivate)andisoneofthemost promising companies in the globalAlpine groupthankstothemanyopportunitieshereinRomania.Wehave earnedour clients’ trust, andwewill continue toinvestbackintothecompanybecauseAlpinehasmadeastrong,longtermcommitmenttotheRomaniancon-structionmarketandtothepeopleofRomania.”

SCALPINESAGariiStreet11

Mogosoaia077135-Ro,IlfovTel:+40-312287508Fax:+40-213524104

office@alp.ro-www.alp.ro

Tourism

•PuttingRomaniaontheGlobalTourismMap

•Romania’sTop10

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

Many visitors to Romania comeforsunandsea.Beachresortsaswellasentertainmentandsportsfacilities have been developedalong a 45 km stretch of BlackSea beaches between Mangaliaand Mamai, while just inland,visitors can see remnants ofGreekculturedatingbacktothe7thcenturyBC.

Romania’s coast has long beenknownforthehealingqualitiesoflocal natural springs, salty lakesand the sea; spas inEforieNordand Mangalia specialise in mudbaths and in famed ‘Gerovital’and‘Aslavital’rejuvenationtreat-ments.Romaniaishometomorethan a thirdofEurope’snaturalsprings, and 70 spas have been

developedaroundthecountry.

Romania’s castles and churchesareanotherreasontotravelthere.The most famous castles includethe14thcenturyCorvinestiCastle,builtonthesiteofaformerRomancamp; the elegant 19th centuryPeles Castle with its 160 roomsfilledwithpricelessEuropeanart;andthe14thcenturyBranCastle,legendaryhomeofBramStoker’sCountDracula.

Transylvania:uniqueculturalheritage

Transylvania, in central Romania,has a unique cultural heritage:almost200Saxonvillagesbuiltbysettlersbetweenthe13thand15thcenturies, seven of which are on

theUNESCOWorldHeritage list.Sighisoara, Brasov and Sibiu arethree of Transylvania’s most pic-turesquemedieval villages.Ahalfhour drive south of Sibiu is Mar-ginimeaSibiului,oneofTransylva-nia’sbestpreservedethnographicareas.

The Danube Delta and the Car-pathian Mountains are amongRomania’smostunspoilednaturalwonders. The Danube Delta, aUNESCO Biosphere Reserve andEurope’s biggest wetland area, isthehomeofmore than300 typesof birds aswell aswildcats, foxes,wolves,bearsanddeer.Romania’srugged Carpathian Mountains,where ski resorts attract wintervisitors, include theOas-Harghitarange, Europe’s longest volcanicmountainchain.

Carpathian mountains

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Romania’sUNESCOWorldHeritagesitesillustratethecountry’sdiversity.TheyincludeHorezuMonastery,themedievalfortifiedchurchesofTran-sylvania,Sighisoara’scitycentre,thewooden churches of Maramures,theDacian fortresses in theOrastieMountains, and Bucovina’s paintedmonasteries,whoseexteriorwallsarefabulously decoratedwith 15th and16thcentury frescoesconsideredtobemasterpiecesofByzantineart.

Promotingtourisminvestment

Foreigninvestorshavebeenslowtotarget Romania’s tourism industry.FDI in Romanian tourism totalledonly €186 million from 2005 to2009,incontrasttonearbyBulgaria,which attracted over twice asmuchinvestment and achieved€7 billionin tourism revenues between 2006and2010.Yet most observers agree thatRomania’s natural and culturalattractions surpass anything in theregion.Tourisminvestorswhoenterthe Romanian market now will

© Fotografescu | Dreamstime.com

Danube Delta landscape

Tourism

enjoy the advantage of leading theway inasectorwhichseemssuretogrow rapidly, given improvementsin transportand tourism infrastruc-ture. In fact, an analysis by BCRBank, a Romanian member of theAustria based Erste group, predictsthatRomania’stourismsectorcouldachieve revenues of €1 billion to€1.5billionby2016.

BCR Bank’s 2011 study of theRomanian tourism industry notesthatwhatRomanianeeds inorderto make the most of its tourismappealistospeeduptheprocessofprivatisation in the tourismsector,step up promotion of Romaniantourism, absorb EU structuralfunds more quickly, bring intourism know-how, train humanresourcesforthehospitalitysector,andfocusonattractingFDI.

Romania’s tourism sector is alreadybeginning to grow. Foreign touristarrivals rose 11% in the first sevenmonthsof 2011 compared to 2010,while tourist stays in Romanianaccommodations rose 12.5%. Mostimportantly,investmentintourismis

increasing. A famed balneotherapycentre atBaileHerculane in south-easternRomaniahasbeenmodern-ised,andthegovernmenthascreatedarangeoffinancialsupportmecha-nisms for investments inRomanianspas thisyear,amongothertourisminvestmentincentives.

In the hotel sector, Hungary’sDanubiusHotelsGroupreporteda6%riseinrevenuesanda14%riseinguestnumbersin2011,withpar-ticularly strong growth in confer-encevisitors.TheHiltongrouphasbeen very successful in Romaniaand opened a DoubleTree byHilton in Bucharest-Unirii Squarein the Romanian capital last year,withmoreDoubleTreehotelssettoopeninPloiestiandOradea.

National carrier Tarom andlow cost carrier Blue Air, whichbegan service between Brusselsand Bacau and between Dublinand Cluj last year, are helping tobring more international travel-lers to Romania. Now is the timefor investors to enter this verypromisingtourismmarket.

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Ramada majestic Bucharest

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

The hotel is housed in a landmark 1920s buildingnext to Bucharest’s iconic Odeon Theatre. GeneralManagerMihailC.Acatrinei explains, “TheRamadaMajestic, which has been part of theRamada groupsince2005,iswellknownforprovidingcustomersat-isfaction, one reason the hotel has developed andmaintaineda stellar image throughout theyears.Weare constantly improving our employee to customerrelationships,andwealwaysputtheguestfirsthereattheRamadaMajestic.”

Focusonaddressingcustomers’needs

Explaining the hotel’s success story, Mihail C.AcatrineicitesacommitmenttothehighstandardsoftheglobalRamadagroup,afocusonstafftraining,very competent andprofessional employees, andaproactiveapproachtopotentialproblemsasreasonsthe Ramada Majestic does so well in achievingcustomersatisfaction.Headds,“Weemphasisecom-municationasawayofmakingsureweaddressourcustomers’needs.”

With 111 guest rooms (including 10 exceptionallyluxuriousExecutiveSuitesandonePresidentialSuite),the Ramada Majestic can provide every guest withtrulypersonalisedservice.Thehotelalsooffersawiderangeofamenities,includingfreehighspeedInternetaccess,bedandbreakfastservice,arestaurant,acoffeebar,abistro,aswimmingpool,andahealthandfitnesscentrewithmassageservicesandasauna.Forbusinesstravellers, theRamadaMajestichasa stateof theartbusiness centre and conference rooms as well as aballroomforlargerevents.

TheRamadaMajesticcontinuestoimproveitsfacilitiesand services andhas embarkedon a€3millionmod-ernisationprogrammethatwillmaketheentirehotelawirelessInternethubandwillalsoenhancethehotel’s“green”credentials.

Mihail C. Acatrinei urges international travellers tovisitBucharesttodiscoverwhatthecityandRomaniahavetooffer.Hesays,“ThepeoplehereinBucharestareveryfriendly,culturedandeducated,andRomaniais a virgin country full of opportunity. Romania hasmanygreatplacestovisitandisawonderlandforanytourist.ComeexperienceRomania and staywith theRamadaMajestic!”

CaleaVictorieiNo.38-40,Sect.1,010082Bucharest

Tel:+40213122023/3110451reservations@ramadamajestic.ro

www.ramadamajestic.rowww.ramadainternational.com

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Tourism

Romania’s Top 10 To See1.DanubeDeltaTheDanubeDeltaisa5,400sqkmwildlifepreservethatishometo300speciesofbirdsand160kindsoffish.

2.TheTransfagarasanTheTransfagarasanroadis90kmoftwistsandturnsacrosstheCarpathianMountains,withvistasofBâleaLakeandBâleaWaterfall.BBCTopGearrankeditthebestdriveintheworld.

3.TuicaThispowerfulplumbrandyisanationaltreasure.

4.SighisoaraThismysterious,beautiful fortifiedvillageinTransyl-vaniawasfoundedinthe12thcentury.

5.MonasteriesandchurchesCenturies old monasteries and churches are foundthroughoutRomania,andeightareontheUNESCOWorldHeritagelist.

6.ThePeople’sPalaceRankedthesecondbiggestadministrativebuildingintheworld,Bucharest’sPeople’sPalacecovers333,000sqm.

7.MountainresortsBreathe the fresh air of the Carpathians in Predeal,PoianaBrasov,Sinaia,Azugaorotherresorttowns.

8.ThermalspringsRomaniahasmore than3,000of themandmany arefamedfortheirhealthfulqualities.

9.Caru’cuBereThe“BeerWagon”isaBucharestlandmarkandthebestplacetosamplethelocalbrew.

10.RomaniancuisineDeliciousRomanianspecialitiesincludecabbagemeatrolls (sarmale) with polenta (mamaliga) garnishedwithsourcream,ciorbadeperisoare(meatballsoup),ciorba taraneasca (vegetable soup) and ciorba deburta(tripesoup).

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Starlight Suites Hotel

new Suite Hotel a Home away from Home for international TravellersThe new Starlight Hotel in Bucharest, a four star all suite hotel, specialises in offering guests a home away from home. The hotel opened last year and has quickly become a favourite among visitors to Bucharest thanks to its large and well equipped suites, comfortable facilities and exceptional service.

As Mihaela Ionascu, General Manager points out,“Starlightisadifferentconcept,whichiswhyguestschoose us. Our suites are very large, our staffmembers are available around the clock and areveryattentivetoguests,andwhilewedonothaveabusinesscentreoralargerestaurantyet,ourguestsfeel at home here. This is our goal: to make ourguests feel at home while also providing four starhotelservices.”

All suites feature modern furnishings, individualairconditioningandheating,kitchenfacilitiesthatincludeamicrowave,LCDTV,aterrace,comfortablebeds,hairdryerandkettleonrequest,andwindowsthatcanopen.Bothsmokingandnonsmokingsuitesare available.Thehotel’s services include Internetaccess, a café and bar, a sauna and fitness centre,safetydepositboxesandluggagestorage,acarpark,and24hourservice.

TheStarlightHotelhasitsownbreakfastroom.Thehotelhasmadeanarrangementwithnearbyrestau-rantstodelivermealsonrequest.Guestscancallonthemaindeskforbusinessserviceslikephotocopy-ing or the loan of a laptop. The hotel guaranteesguestsaquietandcomfortablebaseinBucharest.

Valueformoney

Executivetravellers,mainlyfromabroad,makeuparound80%of thehotel’s clientele, andmanyoftheguestsarelongtermvisitors.Theyareattractedby the Starlight’s excellent value for money andfriendlyatmospherewhichsetsitapartfrominter-

national chain properties. The owners have alsoopened Starlight hotels in Vienna and Bucharest,andallareboutiquesuitehotelswithafocusonper-sonalisedservice.

The Starlight Hotel Bucharest has positioned itselfastheidealbaseforinternationaltravellers.MihaelaIonascuconcludes,“Starlightisfamilyownedbytwobrothers who have spent their careers in the hotelbusinessandknowhowtopleaseguests.Whenpeoplestay in the Starlight Hotel in Bucharest, they comebacktousagainontheirnexttriptothecity.Starlightoffersexactlywhatguestswant.”

89-98GrigoreAlexandrescuSt.Bucharest

Tel:+40212113413reservations.buc@starlighthotels.com

www.starlighthotels.com

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Hertz

Global Car Hire Leader Focuses on Personalised ServicesGlobal car hire leader Hertz has been active in Romania since 1975 and has been represented by AAA Autorent since 1995. Jean-Alain Grumbach, Administrator, explains, “I make sure that the image of Hertz Romania matches the image of Hertz worldwide, and that we have a global vision of the brand.”

Competitiveedge:highstandards,innovation

Besides Hertz Romania being in apositiontooffercarrentalsanywherein the world through the globalHertznetwork,itdifferentiatesitselffrom other car hire companies inRomania through its commitmenttoprovidingonly vehiclesofhighlyreputed brands complyingwith thetoughest safety standards pairedwithimpeccableservices.Jean-AlainGrumbachsays,“Wehaveintroducedthe highest international standardstotheRomaniancarhiresector.”Ifabookinghasbeenconfirmed,HertzRomania’s services include guaran-teed availability of a rental vehiclewithanautomaticfreeupgradeifnocar is available in the category theclientselects.Forthepeaceofmindof the clients, all vehicles in theHertzfleetarecarefullycheckedon19 separatepoints, 12ofwhich aresecurityfeatures,evenifthepreviousrentalwasfor24hoursonly.

Hertz is regularly the first to launchnewcarhireservicesinRomania.Theywere the first to include winter tyres,safetychecks,vehicledeliveryandpickup,andspecialequipment likeafirstaid kit and a fire extinguisher evenbeforethesewererequired.NowHertzRomania is implementing a cuttingedge ‘infection protection’ system inwhich a vehicle’s steeringwheel, gearshift lever and handles are sanitisedbeforeaclientusesthecar.Jean-AlainGrumbachsays,“Wecouldnotfindanyother car hire firm in theworld thathasimplementedthissystem.PotentialcustomersinRomaniashouldnotsettleforless.TheyshouldcometoHertz.”

No.3,NatiunileUniteBlvd,Bl.109050121Bucharest

Tel:+40213357528/29/30contact@hertz.com.rowww.hertz.com.ro

Tourism

Since inbound tourism is still in itsbeginnings, Hertz Romania mainlyservesabusinessclientele,includingexecutive travellers and local repre-sentativesofinternationalcompaniesaswellascorporateclients,embassies,international organisations, govern-ment and governmental agenciesandarmedforcesofficialsandmore.HertzRomaniafocusesonestablish-ing long term agreements with itscustomers, andpersonalised serviceisthecompany’sspeciality.“Wetailormakeeachoffertofitthecustomer’sneeds. For a long term agreementyoureallyneedtoknowyourpartner”Jean-AlainGrumbachpointsout.

Hertz Romania plays a key role inRomania’s business sector and isa member of many local businessorganisations, including theAmerican Chamber of CommerceandtheFrenchRomanianChamberofCommerce.Jean-AlainGrumbachexplains, “We closely monitor alleconomicdevelopmentsinRomaniaandwe knowwhich companies areexpandingtheiroperationshere,sowegetintouchwiththemtofindouthowwecanworktogether.”