Review of the sectors transport, infrastructure and communications in romania
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Methodology and ApproachDesk researchThe project team has identified and listed Dutch companies active in the transport sectors per Country (Bulgaria, Romania and Ukraine). This information has been obtained from, among others: The Associations for transport (in the Netherlands and the three countries) and their publications. The Chambers of Commerce in the Netherlands and the three countries. The Departments of International Co-operation in the three countries, responsible for the co-ordination of bilateral or multilateral co-operation or investment programmes. Ministry of Transport, Public Works and Water Management and Ministry of Economic Affairs. Senter. The Dutch Embassies in the three countries. The Embassies of Bulgaria, Romania and Ukraine in the Netherlands. Individual companies, active in the transport sectors. The NCH (Nederlands Centrum voor Handelsbevordering). The EVD. The Association of Dutch Exporters: Fenedex. Also, an inventory and analysis on the transport sector data available for the 3 countries have been carried out. Information has been drawn from studies performed by NEA as well as from reports produced and published by the Ministries and International Finance Institutions.
Field researchIn each country a field research programme has been carried out, assisted by local experts. Interviews and discussions with key persons and staff of the Ministry of Transport, identifying relevant transport policy lines and measures per sector, priorities, constraints and opportunities have been carried out. In this context the presence and effectiveness of the institutional framework relevant to the sub sectors has been assessed. The Dutch Embassy has been an important source of information for identification of possible general opportunities in the transport market, for the assessment of the local transport policies in relation to Dutch interests and the identification/contacting of key persons in the different sub sectors. Many private and publicly owned enterprises have been interviewed, which are leading in or representative for the sub sector. Foreign owned or subsidiary companies deliberately been included. The output from these interviews has been used to draw conclusions on segment attractiveness for investments. Opportunities, spin-off and synergies have thus become visible. Organisation of a seminarA seminar has been organised in the Netherlands to present the results of the study to a wider audience of interested Dutch companies active in the studied sub sectors. Project TeamThe project did consist of four experts: René Meeuws - Team Leader Hans Houtsma Arthur Gleijm Jan-Coen van Elburg Extensive use has been made of local experts, facilitators and interpreters in Ukraine, Romania and Bulgaria. General dAta on romaniaThe economy of Romania is historically depending on agriculture and oil and gas sectors. After the Second World War more emphasis was put on developing heavy manufacturing industry as shipbuilding and machine tools. Since 1989 also focus has been put on developing the light industry (textiles, clothing and furniture). Prior to 1989, the economy was rigidly planned and centralised, with emphasis on maximising exports and minimising imports. The process of reorganising state enterprises into commercial enterprises is still underway and not finished yet. Currently, Romania is working to overcome the difficulties faced ever since the events of December 1989. Romania’s economy in the 1980’s was affected by economic policies under which resources were misdirected and maintenance was delayed and deferred. Romania managed to settle its external debt, but the burden that fell on the nation was tremendous. Today, economy is moving towards a market economy. Some of the key elements of the reform process have been: liberalisation of prices; liberalisation of foreign trade; development of the private economic sector; restructuring and privatisation of state-owned enterprises; development of a free-market finance and banking system; and modernisation of the tax system. Foreign investmentForeign investment has been considered a key economic factor since 1990 when the Romanian economy started the change towards a market economy because this supplements the domestic capital, brings modern management and technology, and provides access to international markets. The major comparative advantages of Romania from the point of view of a potential foreign investor include: A large domestic market (almost 23 million consumers), the second largest in Central Europe; An good location at the cross-roads of traditional commercial routes, allowing access to over 200 million consumers in a 1000 kilometre radius; Romania is also located at the junction of three prospective European transportation corridors: - Berlin - Prague – Budapest – Arad – Bucharest – Constanta – Istanbul / Salonic (corridor 4) for motor vehicles and railways; - Constanta – Basarabi – Danube – Main – Rhine (corridor 7), river corridor; - Helsinki – Moscow / Kiev – Odessa – Bucharest / Constanta – Alexandroupolis (corridor 9 – project) for motor vehicles and railways.
Well located to offer competitive prices for goods transiting between the Caspian Sea, the Black Sea and the Western Europe; Available facilities offered by the Free Zones of Constanta-South Basarabi, by those located along the Danube River (Galati, Braila, Sulina, Giurgiu) and by the new one Arad - Curtici; Extensive maritime and river navigation facilities (Constanta is the largest port on the Black Sea and the completion of the Rhine-Main-Danube canal provides uninterrupted water access from the Black Sea to the North Sea); Facilities available in the Romanian shipyards for repairing, docking and building ships of any type and capacity; International airports in Bucharest, Constanta, Timisoara, Arad, Suceava; Networks of mobile telecommunications in GSM and NMT/LEMS systems; A developed industrial infrastructure, including oil and petrochemicals; A skilled, relatively cheap labour force, well trained particularly in technology and engineering; A wide range of natural resources, including fertile agricultural land, oil and gas and a significant tourist potential; A liberal investment legislation, based on free, non-discriminatory access to markets and economic sectors; The presence of branch offices and representatives of various well-known international banks: City Bank, ABN-AMRO, ING Bank, Chemical Bank, Kreditanstalt, etc; Diplomatic relations with 176 countries; Member of the UN and of numerous international organisations (associate member in EU, CEFTA, BSEC, etc). From 1991 to 2000 in Romania operated the Romanian Development Agency (RTA) a specialised institution for attracting foreign direct investment. The RDA provided consulting services to both potential foreign investors and Romanian investors looking for foreign partners and acted as an interface between the foreign investors and the Romanian institutions. In May 2000, the Romanian Development Agency, the National Agency for Small and Medium Sized Enterprises and the National Agency for Regional Development have been merged, by Government Decision No.382/2000. In this respect, the new National Agency for Regional Development has been reorganised as a public institution, co-ordinated by Romania's Prime Minister, undertaking the main responsibilities of the three above mentioned institutions. During December 1990 - 31 October 2000, foreign investment in Romania accounted for over US$4.94 billion. The following table shows the top ten of foreign investments in Romania: Table Top 10 Foreign Investments in Romania
Source: In Review, March-April 2001; data approved by National Trade Registry The Netherlands is among the top five investors in Romania. The following table shows the top 14 Dutch investors in Romania: Table Top 14 Dutch Investors in Romania
Source: In Review, March-April 2001; data approved by National Trade Registry The most significant laws providing the general framework for foreign investments are as follows: Company Law No.31/1990 as republished and subsequently amended by the Law no. 99/1999; Trade Registry Law No. 26/1990 as subsequently amended by Law No.12/1998; Government Emergency Ordinance no. 92/1997 on direct investment incentives, as amended by the Law no. 241/1998; Government Ordinance No. 70/1994 on Corporate Tax with subsequent amendments; Government Ordinance No. 88/1997 regarding privatisation, amended by Law no. 99/1999 regarding the acceleration of the economic reform; Accountancy Law No. 82/1991 as republished and subsequently amended; Law No. 84/1992 on Free Trade Zones; Bankruptcy Law No. 64/1995 with subsequent amendments; Bank Privatisation Law No. 83/1997 with subsequent amendments; Emergency Government Ordinance no. 67/1998 on development of economic activities; Emergency Government Ordinance no. 24/1998 as republished; Government Ordinance no. 73/1999 regarding the individual income tax, subsequently amended; Law no. 133/1999 on stimulation of small and medium sized enterprises; Government Ordinance no. 66/1997 on portfolio investments through the purchase of state bonds, amended by Government Ordinance no. 131/1998;ഊ— Securities and exchange market Law no. 52/1994 as amended by Emergency Government Ordinance no. 229/2000; Concession Law no.219/1998. Since 1991, different conditions, as well as different tax incentives to foreign investment have been provided by the Romanian legislation. The regime of foreign investment has been governed by a continuously changing legislation. Presently, Government Emergency Ordinance no. 92/1997, as subsequently amended, establishes the general regime of guarantees granted to direct investors, defining direct investment as either: (i) the participation in the setting up or in the development of a company, (ii) the acquisition of shares (except for portfolio investments), or (iii) the setting up or the development of a branch by a foreign company through: Cash contribution in local or foreign currency; In-kind contribution, consisting in either immovable or movable goods (tangible or intangible); Contribution to the increase of a company’s assets by any legal financing means. Subject to the legislation in force, investment is allowed in almost all economic sectors, including natural resources, agriculture, manufacturing, telecommunications, construction, scientific research, trade, tourism, banking and insurance. However, restrictions are applicable to investments, which could: Fail to comply with environmental protection requirements; Affect Romania’s national security and defence interests; or Impair the public order, health or morals. Certain areas, including electric, thermal and nuclear energy, natural gas, oil processing, telecommunications, and railways are declared as strategic areas. According to Privatisation Law No.88/1997, with subsequent amendments, these areas, administrated by the so-called “national companies” will probably be gradually privatised and opened to competition. A step forward was made through the enforcement of Concession Law no. 219/1998, according to which public activities and services such as: public transportation, public roads, post-office services, telecommunications, distribution of water, electricity or thermal energy and of natural gas, the exploitation of mineral resources, etc, can be conceded to investors, irrespective of their nationality, through a government decision or a decision of the local council. Directory: ECA -> Transport.nsf -> ExtECADocByUnid ECA -> Phonetics and phonology ECA -> Brightspace Platform Requirements 1 Document Change History 1 Brightspace Platform Requirements 2 Brightspace Apps 5 About D2L 9 ECA -> Microservices in the Brightspace Cloud ECA -> Brightspace Assignment Grader for Android 6 ECA -> - ECA -> Brightspace Platform Requirements 1 Brightspace Apps 4 About D2L 9 ECA -> My Course series objective ExtECADocByUnid -> Armenian Railways: Five Year Business Plan ExtECADocByUnid -> Review of sector transport, infrastructure and communications in bulgaria Download 390.56 Kb. Share with your friends:
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