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Market Report Romania Romania Market Brief The Current Defense and Security Market in Eastern Europe Monica Eremia, Commercial Specialist U.S. Department of Commerce U.S. Embassy Bucharest U.S. Department of Commerce | International Trade Administration Romania’s Growing Economic Role in Central and Eastern Europe Country Population GDP GDP/capita (Million) (Billion USD) (USD) Romania 19.3 250 32,297 Bulgaria 6.9 68 24,561 Croatia 4.1 61 30,246 Hungary 9.7 161 33,979 Poland 37.97 592 34,217 U.S. Department of Commerce | International Trade Administration Current Security Market in Romania National Security / Law Enforcement State Owned Companies Private Industry • Ministry of Interior: • Ministry of Economy, Energy and 1.800 Private Security Companies Gendarmerie, Business enterprises – owns shares operate in Romania Police in 47 companies Fire Department Defense Industry – 25 2019 Industry turnover - 1.1 billion General Inspectorate for Mineral Resources – 15 USD Emergency Situations Other industries - 7 • Ministry of Defense: Land Forces, • Ministry of Transportation, Naval Forces, Air Forces Infrastructure and Communications – owns shares in 27 companies • 3 National Intelligence Agencies • 319 Local Police Entities Subordinate to City Halls U.S. Department of Commerce | International Trade Administration Political & Business Context Romanian Government focus on: • Enabling services and innovation through • Local Elections – September 2020 5G capabilities Mayors • Cybersecurity and digital development County Council Presidents strategies post Covid-19 • Defense industry – multiple USDOD & NATO • Parliamentarian Elections – December 2020 projects in progress Chamber of Deputies • Extending critical national infrastructure by including medical equipment and Senate supplies U.S. Department of Commerce | International Trade Administration Public Procurement in Romania The Romanian MOD and MOI are advertising tenders and contract opportunities valued over RON 1,000 (or approximately $200), on the Electronic System of Public Procurement (http://e-licitatie.ro/pub) (SEAP), the Electronic Tendering portal. Access and registration on SEAP is free of charge. For sub-contracting opportunities it is suggested to engage directly with the local contractor listed in the contract award. Some of the opportunities can also be seen on https://ted.europa.eu/. U.S. Department of Commerce | International Trade Administration Challenges on the Romanian Security Market • Political instability is expected in Romania until the Parliamentarian Elections – Dec. 2020. Thus, political decisions are to be expected only after January 2021 on large public tenders • Possible delays in some of the ongoing or scheduled 2020 programs. Funding was re- allocated to fight the economic impact of the Covid-19 pandemic • Romania is seeking to re-energize its own defense industry through international partnerships; International companies may be asked to contribute to this goal through offset obligations. Note: the Romanian Parliament must approve national security/defense acquisitions in excess of €100 million (approx. $110 million) • Romanian MOD is considering the FMS cases as the first option for the acquisition procedures. International firms may be asked to contribute to this goal on volunteer base under FMS cases or under the offset law for all commercial contracts over €2 million ($2.2 million). U.S. Department of Commerce | International Trade Administration Opportunities on the Security Market • The budget allocated to the MOD in 2020 is USD 5.3 billion. Of these, USD 1.9 billion goes to the acquisition of military equipment. • Current RO defense procurement priorities: Tracked and Wheeled-Armored Vehicles; Artillery systems; Missiles systems and rockets; Fighter aircraft; Helicopters medium and heavy; Unmanned Aerial Systems; C4ISTAR systems; Satellite communication and surveillance services. • NATO, USDOD and RO MOD projects in progress or in planning process in multiple cities of Romania. (e.g. Campia Turzii Air Base (USD 130 mil.) and Mihail Kogalniceanu Air Base (up to USD 3.3 billion for the next 20 years) • The Romanian Police and Border Police launched in 2020 tenders for new 9x19 mm. pistols and ammunition • MOI/DSU ongoing tender for medium and heavy helicopters U.S. Department of Commerce | International Trade Administration Opportunities on the Security Market • Critical infrastructure of State Owned Companies, some with budgets exceeding 1 billion USD/year, are outdated or need improvement • Ro. Gov is undergoing a modernization process on National Road, Rail and Aviation Infrastructure; technical security is needed • All local companies are required by law to conduct mandatory risk analysis on each business premise and secure them with perimeter security equipment (CCTV, motion sensors) • The projects for two new maximum-security prisons expected to begin in 2020 or 2021 • Tenders for border control upgrade projects expected to be launched in 2020 and 2021 • Body worn cameras tenders organized by the Romanian Police, Border Police and local police units across Romania • Safe city tenders organized by big and small city halls across Romania. U.S. Department of Commerce | International Trade Administration Romania Welcomes US Security Companies • Romania is a “steadfast ally” of the USA. American Security companies have already found welcoming environment to do business • US Security companies are present in the following sub-sectors in Romania: Airport Security, Customs and Border Control Port Security Cash security transportation & ATM security Mission Critical Communication Systems Safe Cities technologies Security, Protection and Guard Services. U.S. Department of Commerce | International Trade Administration Questions Monica Eremia Commercial Specialist U.S. Embassy Bucharest [email protected] www.export.gov/romania U.S. Department of Commerce | International Trade Administration.
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