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The New Romanian Law on Public Private Partnerships

Romanian Parliament approved in late June 2010 the new law of partnerships between private and state. Promulgation by the President of Romania is expected for its entry into force.

New law regulates how to make a public-private partnership (PPP) project that aims at design, financing, construction, rehabilitation, modernization, operation, maintenance, development and transfer of a public property or public service.

Key aspects of the law:

• It establishes five types of partnerships, for a period not exceeding 49 years.
• The investor will assume the design and construction. The investor may charge fees to ensure maintenance costs and a reasonable profit.
• Very important: contracts may be awarded without an auction. The auction was replaced by a process of selection and negotiation. It is hoped that this way to be hurried major national infrastructure projects, as well as those of local interest.
• Funding will only be done by the private partner, while the public authority will contribute assets (buildings, land, etc).
• Field of application: infrastructure projects in transport, energy, postal services.
• The procedure for concluding a contract of public-private partnership:
• Initiation of PPP project by publishing the announcement of intent by the public partner;
• Preliminary analysis and selection of private investors by public partner;
• Negotiation between public authority and selected private investors related to contract terms, investment value and period of the contract;
• Signing of the PPP contract.

NBB National Business Brokers Romania pays special attention to PPP infrastructure projects in transport and energy. NBB is ready to assist private investors during all the stages of PPP projects in Romania, including initiation stage, negotiation and conclusion of the contracts. NBB’s expertise was also required by some local Romanian authorities seeking private investors for infrastructure projects.

Few interesting opportunities in the area can be found on this website in our Businesses For Sale database Contact NBB Romania directly for details on romania@nbbrokers.com.