VASILE BLAGA, MINISTER OF DEVELOPMENT: "After our accession to the EU, we did not spend one single leu of the European funds made available to Romania"

The budget of the Ministry for Regional Development and Homes for the year 2009 is 3.703 billion lei, which represents 0,64% of the GDP or 1,81% of the entire state budget. The minister Vasile Blaga announced on Friday, during a press conference, that this amount will be supplemented by another 950 million in committed loans. Over 90% of the money will be spent on co-financing the projects funded with post- and pre-accession European funds, concerning the thermal remodeling programs, construction of new homes, but also the development of local and regional infrastructure.

A major goal of the Ministry is to increase the absorption rate of European funds, through a proactive attitude of all the departments which are tasked with the implementation of the post-accession programs and through the stimulation of the local public authorities. Vasile Blaga said: "The absorption of the funds is our absolute priority, especially in a year of crisis. Unfortunately, by this date, we did not use one single leu of the post-accession funding which was made available to us for investments. We are not talking here about the funds offered as technical assistance. One of the reasons is the fact that the appraisal of the programs took a very long time".

Mr. Blaga claims that upon his taking over the Ministry, he found its debt was ten times higher than in the beginning of 2008, with unpaid bills amounting to over 137 million lei. According to Minister Blaga, former Minister Laszlo Borbely could have paid off the debts of the Ministry, had its available funds not been reduced by some 160 million lei, at the last budget adjustment of 2008.

• In 2009, the Ministry of Development hopes to conclude contracts worth 696 million Euros through the Regional Operational Program (POR)

Vasile Blaga claims that on December 31st 2008, 40 contracts worth 339.61 million Euros had been concluded through the Regional Operational Program (POR), and on January 19th 2009, 15 contracts with a total value of 106.96 million Euros were waiting internal approval within the Ministry. Mr. Blaga expects 539 contracts to be signed in 2009 worth some 696,14 million Euros, and the estimated payments are some 325,524,000 Euros, of which 225 million Euros represent European grants.

Concerning the European Territorial Cooperation Programs, Vasile Blaga estimates payments worth 27.420.000 Euros, of which 13 million Euros from European funds. Mr. Blaga has specified that for the pre-accession programs Phare CES and Phare CBC, 2009 will see a surge in payouts, up to 244 million Euros, of which 165 million Euros are European funds.

The procedures for the appraisal and the verification of the projects submitted for financing by the Regional Operational Program have been simplified and shortened by 90 days "on average", starting January 5th, by taking away the appraisal licenses of the CRESC and the consolidation of several stages of appraisal and verification. Minister Blaga promised that he would also simplify the law of public acquisitions, for quick auctioning of the works.

• 22.000 apartments up for thermal remodeling

Vasile Blaga also stated: "We will continue all the programs we have initiated, by focusing on the improvement of the living standard of citizens by building homes, working on the thermal remodeling of buildings and on the local and regional infrastructure, on one hand, and on the other hand, by creating new jobs. We want to execute thermal remodeling of over 22000 thousand apartments, given that the budget allocated for this year is 160 million lei, eight times higher than last year. Apart from these funds there are another 300 million lei in commitment appropriations, an amount which will allow us to remodel up to 60000 apartments".

• Almost 6000 apartments must be completed in 2009

Concerning the programs for the construction of homes, during 2001 - 2008 26000 apartments were built using public funds, of which 22500 through the National Housing Agency (ANL). This year, the Ministry of Development, has 685 million lei available, an amount which will allow the construction of 18700 apartments. The Minister of Development promised that 5985 apartments will be finalized in 2009, of which 3200 through the National Housing Agency. For 2010, Mr. Blaga hopes another 10000 apartments will be completed.

Vasile Blaga has also announced legislative amendments when it comes to the execution of the program for the thermal remodeling of buildings, which aims to change the funding allocation rate. Thus, 50% of the expenses will be borne by the state budget, 30% by the local budgets and 20% by home owners associations. Moreover, if home owners associations don"t have enough funds available, the local administrations may optionally fund the remaining 20%.