FOLLOWING THE VISIT OF FORMER PRIME MINISTER EMIL BOC IN CHINA ANDREEA PAUL VASS: 2012 - the year for private public investments

• Last year, Emil Boc announced several investments in association with China

• The question is whether his resignation could threaten their implementation

This year will be dedicated to projects initiated in the public-private partnership system, where each party - the public and the private one alike knows what it has to do, said Andrea Paul Vass, state advisor to the former prime minister. According to her, the law on public-private partnerships will facilitate the implementation of major investment projects, "some which were launched a long time ago, and others which have been needed for a long time". The question that arises now is whether the resignation of Emil Boc will affect the progress of the projects announced by the former government.

Last year, China expressed its interest in developing several projects in Romania, according to the announcements made by former PM Emil Boc, in the summer of 2011: "The People's Republic of China expressed its full interest and availability to participate in the five major projects which the Romanian party presented to them and which can be developed using the public-private partnership system". However, that interest has not yet yielded any concrete results, Andreea Paul Vass said.

In August 2011, former PM Emil Boc visited China, in order to negotiate several economic projects, accompanied by other representatives of the government, and by the ministers of the Economy, Transports and Foreign Affairs.

Prior to his departure, Emil Boc had stated that his visit would focus heavily on the economic part, and that several major investment projects to be developed together with concrete involvement from China would be discussed, especially in infrastructure, energy and agriculture.

According to the former PM, the five major investment projects presented by the Romanian government to the Chinese were the reactors 3 and 4 of Cernavodă, the Danube-Bucharest canal, the Siret-Bărăgan canal, the Bucharest ring road and the plant of Tarniţa - projects which may be developed using a public-private partnership. According to Emil Boc, the officials established that the ministers would immediately start working on "the concrete technical methods for implementing these projects, in compliance with the Romanian, European and Chinese legislation".

At the time, Boc said that the reunion of the joint commissions which are working on establishing the contacts and the implementation of the common business projects would take place in October, and mentioned that those projects were concrete, rather than mere promises.

• The publication of the international announcement for the call for tenders for the Tarniţa-Lăpuşteşti project to come soon

The Tarniţa Lăpuşteşti project involves an investment of over 1.1 billion Euros, VAT excluded, said Mrs. Vass. The consulting contract for the selection of investors and the creation of the company which will develop the project were signed in autumn. The drafting of the documentation for the selection of investors has already taken place.

She also said that on December 31st, the strategy to attract investors and the documentation to participate in the call for tenders was approved by the negotiation commission. The strategy to attract investors and the documentation to participate in the call for tenders was approved by the inter-ministry group in the month of January.

The next step will be the publication of the international announcement for the call for tenders by March 2012 at the latest, the former state advisor said. Private investors would have four months to submit the binding offers, following which the private partner would be selected within one month,.

Following the participation of the Romanian mission led by Mr. Ion Ariton, the Minister of the Economy, Trade and Business Environment, in the 21st session of the Mixed intergovernmental Romanian Chinese Commission for Economic Cooperation of October, the representatives of Chinese firm China Gezhouba and Sinohydro Corporation have expressed their interest in the Tarniţa project, according to Mrs. Vass.

• The selection of the investors for the units 3 and 4 of Cernavodă - extended until March 15th

The project concerning Reactors 3 and 4 of Cernavodă intends to double Romania's output of energy generated from nuclear sources, and has an estimated value of 4.2 billion euros, according to the same source.

The quoted source has also said that the project is at an advanced stage, and that the trade representative of the Canadian Embassy in Bucharest, of the Korean Consortium BKB CO., Ltd. and of Candu Energy have received the documentation for the filing of binding offers, and have presented the Confidentiality Agreement.

Moreover, following the participation in Beijing in the 21st session of the Mixed intergovernmental Romanian Chinese Commission for Economic Cooperation, China Guangdong Nuclear Power Group has received the documentation for the submission of a binding offer, and the project is currently in the investor selection stage, which has been extended until March 15th, Mrs. Andreea Paul Vass said.

• 1 million lei this year for the preservation of the works on the Siret-Bărăgan Canal

The construction of the Siret - Bărăgan canal is a priority, in order to deal with irrigation problems and with the dependency on weather conditions, the former government advisor said. She mentioned that the canal will require an investment of 744.5 million lei, and in 2012 1 million lei will be spent on the preservation of the works already achieved, which will be continued using a public-private partnership.

The pre-feasibility study and the documentation for the awarding of the public-private partnership agreement will be drawn up by the Ministry of Agriculture and Rural Development in order to identify potential partners. The Ministry of the Environment and Forestry proposes the publication of the requirements of the government and of the announcement for the selection of the private partners by Mid-February, and the evaluation of the letters of intent for the selection of the private investors by the end of April, Mrs. Vass said.

• 2,5 million Euros - the cost of the works for the Danube - Bucharest canal

The construction of the navigable Danube-Bucharest Canal using a public-private partnership involves an estimated investment of 2.588 million Euro, according to Mrs. Andrea Paul Vass. The project is currently at the stage where the feasibility study is being drafted, and after the completion and the approval of the technical and economic documentation, the stages for the implementation of the projects will be established.

• The Northern and Southern ring roads of Bucharest - more investments which could be developed using a Public Private Partnership

As for the Ring Road of Bucharest, the project provides the construction of the Northern (53 km) and of the Southern ring road of Bucharest (48 km). The two projects which will be built using a public-private partnership system will cost 1.87 million Euros. Both projects are currently in the consultant selection stage, and the stages for the implementation of the project will be determined.

The promises of Emil Boc seem to have remained just that, as some of the stages of the projects seemed to have been delayed. No binding offers have been made for most of them yet, and the projects that have seen such binding offers, have not yet been implemented.

It remains to be seen whether the announced projects will be completed successfully, considering that Emil Boc yesterday handed in his resignation and 2012 is an electoral year.