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Bucharest Sector 1 Development Report

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Bucharest Romania Sector 1 Development Report September 2006 This report is produced by FRD Center Romania – www.frdcenter.ro - a privately owned market entry consulting firm based in Romania. For the last 6 years, FRD Center has been the Trade Consultant of the Irish governmental agency Enterprise Ireland ( www.enterprise-ireland.com ) in Romania. EI is the Irish state development agency focused on transforming Irish industry by accelerating the development of world-class Irish companies and assisting them achieve strong positions in global markets resulting in increased national and regional prosperity. FRD Center is a honorary founding partner of ADER – Romanian Spanish Business Development Association ( www.romaniaspain.com ) which offers market entry services to Spanish companies interested to enter the Romanian market as exporters, consultants, investors or joint-ventures. Contributors to this report are: - Sector 1 City Hall: www.primariasector1.ro - Real estate companies in Romania - CBRE: www.cbre.ro - Regatta: www.regatta.ro - Metrorex: www.metrorex.ro - Apa Nova: www.apabucur.ro - RATB: www.ratb.ro - Electrica Sud: www.electrica.ro Report produced by FRD Center Romania – www.frdcenter.ro 1 Introduction Geographical and historical location Bucharest is the capital of Romania. According to the 2002 census, Bucharest has a population of 1,921,751 inhabitants in the city proper. There are approximately 2.3 million inhabitants in the greater metropolitan area. Economically, the city is by far the most prosperous in Romania and is one of the main industrial centres and transportation hubs of the region. The city is administratively known as the Municipality of Bucharest (Municipiul Bucureşti), and has the same administrative level as a county, being further subdivided into six sectors. The six sectors are numbered from one to six and are disposed radially so that each one has under its administration an area of the city center. They are numbered clockwise and are further divided into districts without any form of administration ( cartiere ). With a total surface of 67.5 square km and a population of about 238,217 inhabitants, Sector 1 is located in the North-west area of Bucharest. Some districts in Sector 1 are Baneasa, Pipera, Floreasca, Herastrau. Sector 1 is the wealthiest sector in Bucharest. It consists mainly of residential districts, large boulevards which get connected in generous squares, high office towers with important tenants, shopping galleries, exclusive restaurants, parks and lakes. According to Sector 1 City Hall, in August 2006 there are 101,517 households covering the largest surface in the North area of Bucharest and the Vlasiei plain in Ilfov county, to metropolitan localities such as Otopeni, Snagov, Mogosoaia, Buftea, Chitila. Neighbours of Sector 1: - North: Otopeni commune, Odaile village, Tunari forest - 5.6 km. The north delimitation is: the Odaile Road and the Urziceni railway line; - East: Sector 2 of Bucharest; - South-east: Sector 3 of Bucharest from Piata Universitatii to Calea Victoriei, 0.5 km; - South: Sector 5 of Bucharest, from Calea Victoriei - Bulevardul Regina Elisabeta – Dambovita river, to Mircea Vulcanescu street, 2.2 km; Report produced by FRD Center Romania – www.frdcenter.ro 2 - South-west, from Calea Plevnei - Soseaua Giulesti to the railway station Chiajna (Rudeni) , with sector 6 of Bucharest, 8.5 km; - North-west: Chitila and Mogosoaia communes in Ilfov county, from the railway station Chiajna to Odaile village, 7.8 km. Geographic environment of Sector 1: Rivers and lakes: Sector 1 is crossed from west to east by the Colentina river, on a length of 14.3 km. The Colentina river has a width of 7 - 15 m and a depth of 1 - 3 m. The river speed is of 3 m/s. On the inferior course of the Colentina river, in the sector centre, there is a network of lakes as follows: Straulesti Lake has the surface of 33 ha, the volume of 700,000 m³, the debit of 2.5 m/s, the length of 2.3 km, the width of 100 - 300 m and the depth of 1 - 5 m; Grivita Lake has the surface of 53 ha, the volume of 1,000,000 m³ , the debit of 2.5 m/s, the length of 3.8 km, the width of 50 - 500 m and the depth of 1 - 4 m; Baneasa Lake has the surface of 40 ha, the volume of 600,000 m³, the debit of 2.5 m/s, the length of 3 km, the width of 50 - 400 m and the depth of 1 - 3 m; Herastrau Lake has the surface of 77 ha, the volume of 2,300,000 m³, the debit of 2.5 m/s, the length of 2.8 km, the width of 50 – 1,000 m and the depth of 1 - 5 m; Floreasca Lake has the surface of 70 ha, the volume of 1,600,000 m³ , the debit of 2.5 m/s, the length of 3 km, the width of 100 - 800 m and the depth of 1 - 5 m; Cismigiu Lake has the surface of 29,500 m², the length of 1.3 km, the width of 50 m and the depth of 1 - 2 m. Forests in Sector 1 are: Baneasa Forest and Tunari Forest. The total surface of the forests is of 31.5 km². Parks: Bazilescu Park - Bd. Bucurestii Noi, has a surface of 125,400 m²; Sf. Maria Park - Street Karol Knappe, has a surface of 19,350 m²; Copilului Park - Street Siret, has a surface of 975 m²; Tineretului Park and Stadium - Bd. Marasti, has a surface of 1,350 m²; Herastrau Park - Sos. Kiseleff, has a surface of 1,295,000 m²; Cismigiu Park – Bd. Regina Elisabeta, has a surface of 139,000 m²; Kiseleff Park - Sos. Kiseleff , has a surface of 31,690 m²; Bordei Park - Bd. Aviatorilor, has a surface of 12,260 m²; Garii de Nord Park - Garii de Nord Square, has a surface of 18,940 m²; The total surface of the parks is of 1,649 km². Report produced by FRD Center Romania – www.frdcenter.ro 3 Infrastructure and Utilities in Sector 1 Roads and railroads: Bucharest is the hub of Romania's national railway network, run by the Romanian Railroad National Company. The main railway station in Romania is Gara de Nord, or North Station, which provides connections to all major cities in Romania as well as international destinations. Gara de Nord is situated in Sector 1 and it is linked by metro, buses, trolley buses and tram lines to the rest of the town. Bucharest is also a major intersection of Romania's national road network. It is the origin of most of the country's national roads and expressways, which link the city to all of Romania's major cities as well as to neighbouring countries. Sector 1 is crossed by the main road which leads into National Road number 1 (DN1), passing through Baneasa village, Otopeni village and reaching Ploiesti (60 kms from Bucharest). This road is already part of an European network and is undergoing enlargement to three lanes per way. It will be part of the Bucharest – Bors expressway after Brasov – Bors expressway is finalised. The Autostrada Transilvania Project is a four-lane, 415-kilometer highway, stretching northwest from Brasov in central Romania to Oradea on the country's border with Hungary. The motorway will connect the cities of Brasov, Fagaras, Sighisoara, Targu Mures, Cluj Napoca, and Oradea, skirting the Carpathian Mountains on a high plateau, some 1,000-meters above sea level. This 2.2 billion construction project will be completed by 2012. During the period May - June 2006, the Sector 1 City Hall finalised the rehabilitation and modernisation of the road infrastructure on 21 streets in Sector 1. Also, at the present, there are in progress the works to lay new road surface on other 78 streets. The investment program of the Sector 1 City Hall for the period May 2006 - May 2007 includes the rehabilitation and modernisation of the road infrastructure on 300 streets, sidewalks and alleys located between the blocks. Regarding the modernisation of Vatra Noua and Straulesti areas, there is a program developed by the Sector 1 City Hall and the Bucharest City Hall, with World Bank financing. The works will start during the next period of time, after the finalising of the procedures related to the designing, authorisation and international tender. The program includes the water supply, the sewerage and the modernisation of road system in these areas. According to the Sector 1 Mayor’s officials, this is one of the most important investment programs developed in the Sector 1 in the last years. During this year, the majority of the Report produced by FRD Center Romania – www.frdcenter.ro 4 funds available at the local budget were used for the works to enlarge, repair and upgrade the road infrastructure and to provide the sewerage and the water supply. The City Hall target is that until the end of 2007 to reduce significantly the number of streets without asphalt, water supply and sewerage. During 2006 there were finalised the works of repair and modernisation of Aurel Vlaicu Farmers Market, the total investment reaching the amount of 700,000 RON, the funds being obtained from the local budget. Also, there are in progress the works to build a new hall located in Matache Farmers Market, works that will be finalised until the end of 2006. The total investment is of 1 million Euro, the funds being obtained through a credit from a commercial bank. During the next period of time there will start the procedure to lease the Mures Farmers Market, market which was modernised last year.
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