EBRD Supports Modernisation of Romanian Postal Service

The EBRD is providing Posta Romana with a 50 million EUR loan to finance the construction in Bucharest of the country"s first fully automated sorting centre and the modernisation of an existing sorting centre in Cluj. Up to 20 million EUR of the loan will be syndicated to commercial banks. Posta Romana will also contribute to this project with 10 million EUR of its own cash flow. The construction of an automated sorting centre is a key element in the modernisation of Posta Romana, which is facing increasing competition following the liberalisation of the market in line with EU regulations.

The state-owned company was established, in its current form, in 1991, when post and telecoms activities were separated in Romania. Today, Posta Romana handles 2.2 million letters and over 50,000 parcels daily through its 7,100 offices and outlets. Up until the end of 2008, the company has exclusive rights to handle items up to a maximum weight of 50g. In return, it is obliged to serve all destinations in the country at the same price and quality. In other areas, such as express mail services, Posta Romana is already facing private competition.

The modernisation and restructuring of the company, currently underway with the assistance of specialised consultants, is fully supported by EBRD. The Bank also supported Posta Romana to develop its first long-term business plan and provided the company with guidance on international public procurement rules. Posta Romana"s development strategy is focused on three main objectives: compliance with EU standards for service quality; increased operational efficiency; and the development of additional services.